NJ: ObamaCare is totally “creating jobs — yes, really”

posted at 6:01 pm on September 27, 2013 by Erika Johnsen

I felt the need to highlight this piece, not only because Democrats have been hailing and will undoubtedly continue to hail ObamaCare as a “job creator,” but because the very misleading notion that the federal government is always a necessarily effective “job creator” ranks among my biggest pet peeves of all time. On a very technical and superficial level, sure — this is all perfectly true. From the National Journal:

Cottage industries always crop up after the passage of major legislation, and the 2010 Affordable Care Act is no exception, notwithstanding GOP predictions that it will be a job-killer. Businesses are hiring lawyers to interpret new rules, consultants to advise them on how to adapt to new regulations, and even dinosaurs to tromp around drugstores. …

The cottage industries are part of the “on the other hand” narrative. They fall into three general buckets:

-The coverage-oriented category, which includes call centers set up to answer questions about the law and in-person navigators and “assisters” who will help sign people up for insurance coverage. (The law requires all states to have navigators; assisters are required only in the seven states that are running exchanges in partnership with the federal government. Both are government-sanctioned helpers tasked with spreading awareness of the law and helping people enroll for coverage; they perform basically the same tasks, although states have some flexibility to define the roles and required training for each.)

-The technology jobs needed to launch insurance exchanges, manage the federal data hub, and provide better digital performance measures for health care providers.

-The typical cottage industries that follow any major piece of legislation: the lawyers, consultants, and former administration and congressional staffers who are now advising companies on how to deal with the new rules and regulations.

“On the other hand,” nothing. Claiming that ObamaCare is causing the same sort of productive job-destruction and job-creation that goes on in the private sector is like saying we should keep our tax code convoluted so that we’ll all need to enlist accountants with dedicated tax expertise into our employ in order that their jobs be preserved. If that were the case, why not just purposefully make the tax code more complex while we’re at it instead of less, and then “create” even more tax-accountant jobs? Hell, if we really want to get some job creation going, let’s just muster up every miniscule regulation we can think of to such a degree that dealing with all the red tape requires new cottage industries with necessarily specific proficiencies for everything! Great idea, right?

Wrong. We could enact new programs and regulations to beget cottage industries and inspire entrepreneurs and appoint more public-sector workers ad infinitum, but that wouldn’t do much to contribute to a truly robust employment scenario, would it? Making needless toil for ourselves and calling it “job creation” is getting into “the broken window fallacy” territory all over again: That which is seen, and that which is not seen.

There are opportunity costs to the expenditure of any resource, and just because ObamaCare is consuming resources does not mean that they are being used in the most productive and efficient ways possible. What would/could/should all of these thousands of workers/companies/local governments being doing with their time/money/assets if they weren’t devoting it all to coordinating ObamaCare? More productive and useful activities that contribute to a more muscular prosperity replete with more and better-paying jobs, rather than meeting artificial market signals injected by the federal government from the top down? Maybe? (And please do not try to argue that, in this time of bleak employment, we need whatever types of jobs we can cook up — seeing as how overbearing and centrally-planned programs and policies from the administration, like ObamaCare, are exactly what’s weighing the economy down and encumbering the growth of our net prosperity.)


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IRS enforcers & Death Panel members, oh my!

22044 on September 27, 2013 at 6:04 PM

This is why the naive crowd who thinks it will collapse on its own and the country will be fine are fooling themselves. The Left and Obama Enablers Lie and it never gets questioned.

txmomof6 on September 27, 2013 at 6:05 PM

Used unicorns salesman? I mean come on, ya gotta know somebody to get one of those dealerships.

onomo on September 27, 2013 at 6:08 PM

Healthcare for Menedez’s underage hookers?
STDs are hard to treat.

RovesChins on September 27, 2013 at 6:09 PM

You can NEVER have enough paper pushers!

WryTrvllr on September 27, 2013 at 6:09 PM

Hmmm, nothing like this in my macro economics course that I can remember.

major dad on September 27, 2013 at 6:10 PM

Clearly the way to solve our employment problems is by passing more giant, stupid, ludicrously complex laws with tens of thousands of pages of accompanying federal regulations.

Once we have all these new laws in place, we can give every unemployed American a job. They could each be assigned a page to explain to the rest of the country. It’s genius!

AZCoyote on September 27, 2013 at 6:11 PM

__________________is a liar.

I type you fill in the blank.

PappyD61 on September 27, 2013 at 6:16 PM

Businesses are hiring lawyers to interpret new rules

Every wonder why the vast majority of lawyers vote for Leftists? There ya go.

But remember, the Dem party is fighting for the little guy!

visions on September 27, 2013 at 6:18 PM

Hell, if we really want to get some job creation going, let’s just muster up every miniscule regulation we can think of to such a degree that dealing with all the red tape requires new cottage industries with necessarily specific proficiencies for everything!

Right on, Erika!
Preach it sister.

bazil9 on September 27, 2013 at 6:19 PM

Prohibition created a whole business!

rob verdi on September 27, 2013 at 6:20 PM

Broken window theory… grab a rock and let’s create some jobs.

mjbrooks3 on September 27, 2013 at 6:24 PM

the very misleading notion that the federal government is always a necessarily effective “job creator”

Unless they’re digging stuff out of the ground, growing stuff, making stuff, or distributing stuff they’re not creating jobs. To use the word ‘effective’ is itself misleading. The government is not an effective job creator, because it’s not a job creator at all. It is always a leech. Unless you’re living the socialist dream.

Fenris on September 27, 2013 at 6:25 PM

There are some 200 new federal agencies created by Obamacare. It’s almost like they’re trying to get us all to work for Uncle Sugar.

txhsmom on September 27, 2013 at 6:25 PM

Morticians, we’re gonna need more morticians.

antipc on September 27, 2013 at 6:25 PM

Hell, if we really want to get some job creation going, let’s just muster up every miniscule regulation we can think of to such a degree that dealing with all the red tape requires new cottage industries with necessarily specific proficiencies for everything!

That is how the Left thinks; otherwise I would have inserted a </sarcasm> tag.

Steve Eggleston on September 27, 2013 at 6:30 PM

Navigators–leading the Sheeple to the govt trough.

hillsoftx on September 27, 2013 at 6:30 PM

Doctors Leaving New Jersey

Resist We Much on September 27, 2013 at 6:30 PM

Alternate headline: Doctor Shortage Creating Jobs in New Jersey.

davidk on September 27, 2013 at 6:41 PM

The 23 Gutless Republicans That Voted To Fund Obamacare

Resist We Much on September 27, 2013 at 6:28 PM

Look at the bright side, 19 voted against it.

That means the Tea Party only needs to primary 3 Senators next year to have a majority of Republicans in the Senate.

Insurrection

MichaelGabriel on September 27, 2013 at 6:50 PM

Resist We Much on September 27, 2013 at 6:30 PM
There’s a couple of useless doctor Senators that we don’t need. Maybe we can ship them to NJ to do some work that might actually benefit a few people.

txmomof6 on September 27, 2013 at 6:51 PM

MichaelGabriel on September 27, 2013 at 6:50 PM
Actually that number is not quite accurate according to subsequent votes.

txmomof6 on September 27, 2013 at 6:52 PM

Report: Obamacare To Subsidize Up To 111,500 Abortions Each Year…

Increase the debt & kill off more taxpayers!

@LibLogic

Resist We Much on September 27, 2013 at 6:58 PM

MichaelGabriel on September 27, 2013 at 6:50 PM
Actually that number is not quite accurate according to subsequent votes.

txmomof6 on September 27, 2013 at 6:52 PM

I confess, I don’t know the actual numbers, but the stronger the Tea Party gets, the more the MSM, the Democrats and the Republican establishment freaks out.

And that is a good thing.

MichaelGabriel on September 27, 2013 at 6:59 PM

Broken window theory… grab a rock and let’s create some jobs.
 
mjbrooks3 on September 27, 2013 at 6:24 PM

 
Why are you bringing up housing and building materials? And what makes you think stone facades can impact our service economy that much?
 
- HA’s resident (D)s

rogerb on September 27, 2013 at 7:02 PM

The National Journal actually underestimated the jobs created by Obamacare by limiting themselves to navigators and other people required to administer it. They neglected the thousands of new jobs for undertakers, hearse drivers, and crematory technicians needed to bury and cremate all the people who will die due to not receiving the medical care they need.

Kathleen Sebelius could make a killing in the funeral industry!

Steve Z on September 27, 2013 at 7:02 PM

Unnecessary jobs that those of us who work for a living will now pay for.

With ATM cards for welfare, food stamps, SNAP..etc..government supplements for housing anywhere now..free phones, no taxes (a credit back for some that don’t even work) it only makes sense to include free healthcare with the best doctors available instead of making deadbeats go to the local clinic.

And when you somehow get an appointment with your physician – plan on waiting a very long time since the above mentioned don’t have to work and they can schedule their Obamacare visit anytime, regardless of the pesky annoyances like having a job the rest of us footing the bill have to deal with.

celt on September 27, 2013 at 7:02 PM

I would make concession: get rid of ObamaCare in exchange for putting his mug on Mount Rushmore. He’d probably jump at the chance, and we could later get rid of the rock more easily than we could get rid of the law.

Colony14 on September 27, 2013 at 7:04 PM

Erika Johnsen nailed it. It’s all about opportunity cost.

Sometimes I argue that an economically dumb decision can have fortunate results. If you raise the cost of labor without thinking what you are doing, that can push people to automate. And so on.

The Affordable Care Act isn’t like that. You can’t get lucky with it. It forces people to spend a lot of time and resources in very unproductive ways. That means it’s an economic drag, and an employment-stifling mess, end of story.

David Blue on September 27, 2013 at 7:04 PM

If we had a totally closed society, in theory the argument would hold some water. We would just continue to spin dollars around within the country…no net gain in the country’s wealth of course and then other factors like loss of metals (rust)/energy (emmissions) to the atmosphere would be a slow drain on our little micro world.

But we don’t have that. We have what is called “leakage” to countries that can build it cheaper and/or better. Even with leakage, the “multiplier effect” is much more effective in the private sector where we can suck some money from other countries.

teejk on September 27, 2013 at 7:07 PM


Resist We Much on September 27, 2013

…did I say I like it when you are feeling better…and get on a roll?

KOOLAID2 on September 27, 2013 at 7:32 PM

I remember back in the early 00′s (?) when Sarbanes-Oxley passed, the online job boards were choked with ads for financial types with S/O knowledge.

Lots of jobs created, not a single one productive or creating any wealth. You’d almost think it was meant as government stimulus.

slickwillie2001 on September 27, 2013 at 7:34 PM

I would make concession: get rid of ObamaCare in exchange for putting his mug on Mount Rushmore. He’d probably jump at the chance, and we could later get rid of the rock more easily than we could get rid of the law.

Colony14 on September 27, 2013 at 7:04 PM

Under one condition: the size of the bust to be proportional to accomplishments, so the REB would fit inside Lincoln’s left nostril.

slickwillie2001 on September 27, 2013 at 7:36 PM

Those “new” jobs don’t PRODUCE anything that you can sell to someone else.

GarandFan on September 27, 2013 at 7:38 PM

…I know where JugEars can put that thumb!

KOOLAID2 on September 27, 2013 at 7:38 PM

Just like Krugman’s “the government should pay people to dig holes and fill them in in order to stimulate the economy”. Obamanomics at its finest.

talkingpoints on September 27, 2013 at 7:42 PM

Thanks SOOOOO much you commie rat b@st@rd.
I just got a notice from my company in the mail today that my health insurance premiums will be increasing 68% next year – thanks to obumblescare. Luckily my company pays a decent share of the total premiums, but they are not taking the whole increase. That 68% jump is my share.
All I can think of right now is a quote from Sling Blade…..

dentarthurdent on September 27, 2013 at 8:06 PM

There is a great anecdote from when William F. Buckley was in India, and he observed a whole mass of workers building a road with primitive picks, rakes and shovels only.

He asked, “Where is all the heavy Earth-moving equipment?”

The response was, “This is a public works project, so we are trying to create as many jobs as possible.”

Buckley replied, “Why not have them use spoons?”

JohnD13 on September 27, 2013 at 8:54 PM

Prohibition created a whole business!

rob verdi on September 27, 2013 at 6:20 PM

Some of my relatives had Prohibition-related small businesses. Sadly, they didn’t make out as well as Joe Kennedy or else my siblings and cousins and I would have lucrative little niches carved out for us in “public service.”

obladioblada on September 27, 2013 at 9:38 PM

Watch for an Obamacare workers lifetime achievement award ceremony next year.

southsideironworks on September 27, 2013 at 10:10 PM

Obama is such an idiot he can’t even get people who disagree with him to comment. He is that stupid. LOL

pat on September 28, 2013 at 3:00 AM

The key fallacy — and it is the Marxist fallacy that the entire dialogue has fallen into — is that what’s important is not “creating jobs,” but creating WEALTH. When a business creates “wealth” (broadly defined), jobs follow. Doing a policy to “create jobs” has frankly no value. It’s like saying we feed more people by giving everyone smaller portions.

At some point, the pie is too cut up and everyone starves. That’s where we are heading.

FiveG on September 28, 2013 at 7:56 AM

Unless they’re digging stuff out of the ground, growing stuff, making stuff, or distributing stuff they’re not creating jobs. To use the word ‘effective’ is itself misleading. The government is not an effective job creator, because it’s not a job creator at all. It is always a leech. Unless you’re living the socialist dream.

Fenris on September 27, 2013 at 6:25 PM

When the government tries to do what the private sector already does, it does it badly, and destroys/prevents more wealth than it creates.
That said, there is something the government can do to promote job creation: enforce the rule of law. This includes police to protect personal and property rights, some amount of regulation to prevent fraud (addictive drugs and other scams), and a strong military to protect trade and prevent bad action by foreign parties.

Count to 10 on September 28, 2013 at 9:44 AM


ObamaCare Employer Mandate: A list of job cuts due to ObamaCare

http://news.investors.com/politics-obamacare/092513-669013-obamacare-employer-mandate-a-list-of-cuts-to-work-hours-jobs.htm?fromcampaign=1

mountainaires on September 28, 2013 at 10:00 AM

the lawyers, consultants, and former administration and congressional staffers who are now advising companies on how to deal with the new rules and regulations.

Essentials to making any product more expensive — build expensive rules for making the product, and you’ve increased productivity because the product now costs more to those who must purchase it.

unclesmrgol on September 28, 2013 at 6:59 PM

Show me a non government job please that our taxes do not support. Yeah, I thought so.

mixplix on September 28, 2013 at 7:53 PM