Video: Meet ObamaCare’s unintended consequences

posted at 9:41 pm on February 3, 2014 by Mary Katharine Ham

This is really one in a series. A very long, sad series.

First, let’s crunch some numbers. Byron York flags the Brookings Institution’s conclusions on what Obamacare will do to wages. Brookings, as you may know, is no conservative outfit, but its research shows damage to wages for people in very modest income brackets and into the middle class.

A new study finds that Obamacare’s redistribution will be stunningly lopsided. Scholars at the liberal Brookings Institution have discovered that Obamacare will increase the income of Americans in the lowest 20 percent of the income scale, and especially in the lowest ten percent. But all other income groups — even people who make very modest incomes in the $25,000 to $30,000 range, as well as all income brackets above that — will experience a decline in income because of Obamacare.

In other words, Obamacare is going to cost some of the very people it was designed to help.

Brookings scholars Henry Aaron and Gary Burtless sought to determine the law’s impact on income in 2016, when almost all of Obamacare will be in effect. To do so, they adopted a broad definition of income — not just a person’s wages, but also pension income, employer health coverage, government cash transfers, food stamps, other benefits, and now, subsidies from Obamacare…

Aaron and Burtless’ first finding is no surprise: Obamacare will mean more for the lowest-income Americans. It will increase income by 9.2 percent for the lowest bracket — households making below about $21,000 a year — for those in their working years, age 25 to 64.

Then the surprise. Obamacare will reduce, by an estimated 0.9 percent, the incomes of working-age Americans in the next-lowest income bracket, households making between about $21,000 and $40,000 a year. And in the next income group, households making between about $40,000 and $65,000 a year — Obamacare will reduce their income, too, also by 0.9 percent.

A 1 percent reduction in income is relatively small. But it is still a reduction — and not at all what President Obama and Democrats in Congress promised. When the president pledged that Obamacare would make the health care system “better for everybody,” it’s doubtful Americans interpreted that as meaning it would reduce their income.

The full study is here.

This is yet another instance wherein Obamacare doesn’t just break a promise but its outcome is the opposite of the promise. This law was supposed to help everyone get lower premiums by $2,500 (oops, higher), people were supposed to be able to keep their plans if they liked them (oops, the thing outlawed millions of plans and incentivized businesses to drop many others), and it was supposed to benefit the middle class, but the middle class is being hit hardest by premium hikes because they’re often not eligible for subsidies, and now we find out their wages are going to drop off.

At what point do all the good intentions stop mattering when this is the result?

And, now to the video. This is fast-food fry cook Darnell Summers, who has been working with his union to get higher wages. He’s clearly pushing for a minimum wage raise, here, and President Obama is happy to talk about that. What he’s not happy to address is the part of the question where Summers notes he’s been knocked down to part time work because his employers are trying to avoid the expense of Obamacare. These are real people, who were promised far better than this, being hurt by a law that was supposed to help them. They are not figments of Fox’s imagination. They are not Republicans obstructing anything. They’re the people Obamacare has failed to serve.

Click to watch:

Darnell Summers


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We knew this would happen…

OmahaConservative on February 3, 2014 at 9:44 PM

What doesn’t Darnell Summers understand?

He’s supposed to get laid off, receive 99 thousand weeks of unemployment, and apply for food stamps till the cows come home.

Viva, America!!!

Bitter Clinger on February 3, 2014 at 9:48 PM

“Unintended?”

Murphy9 on February 3, 2014 at 9:48 PM

According to plan.

Buck_Nekkid on February 3, 2014 at 9:49 PM

At what point do all the good intentions stop mattering when this is the result?

What good intentions? There were no good intentions with ObamaCare. Only lies to gain power. At the Congressional level there are not any Dems who act from altruistic motivations.

INC on February 3, 2014 at 9:49 PM

Nothing is Obama’s fault. Because he said so.

22044 on February 3, 2014 at 9:52 PM

Their power-hungry intentions still matter. Their words are what has stopped mattering.

INC on February 3, 2014 at 9:52 PM

Mark Knoller ‏@markknoller 1h

Pres Obama also deniess he’s an advocate of the “nanny state.” He said “welfare is actually worth less now that it was under Ronald Reagan.”

canopfor on February 3, 2014 at 9:54 PM

These are real people, who were promised far better than this, being hurt by a law that was supposed to help them. They are not figments of Fox’s imagination. They are not Republicans obstructing anything. They’re the people Obamacare has failed to serve.

Your compassion, MKH, is palpable, as it was back when you and all of us were warning the world, and Mr. Summers, about this abomination. These ARE real people with real lives and real problems. The last matters of interest to Obama or his minions.

TXUS on February 3, 2014 at 9:55 PM

Same answer,

Got to get people working,
Got to get jobs
More training,

yada yada yada!!

canopfor on February 3, 2014 at 9:56 PM

The SOTU STHU is 6 days old.

22044 on February 3, 2014 at 9:58 PM

What doesn’t Darnell Summers understand?

He’s supposed to get laid off, receive 99 thousand weeks of unemployment, and apply for food stamps till the cows come home.

Viva, America!!!

Bitter Clinger on February 3, 2014 at 9:48 PM

Hmmm, let’s see – 29.5 hours per week – even if minimum wage raised to $10 per hour = $295.00 per week with no hope of overtime. Even if the guy got laid off he might get $150 per week????

People don’t want that – they want to work 50-60 hours a week to get OT.
In my first job I worked at least 50 a week and sometimes 70, while going to school….
Without that OT pay I would not have made it….

What the hell are people supposed to do? Get three jobs???

redguy on February 3, 2014 at 9:58 PM

Mark Knoller ‏@markknoller 1h

Pres Obama also deniess he’s an advocate of the “nanny state.” He said “welfare is actually worth less now that it was under Ronald Reagan.”

canopfor on February 3, 2014 at 9:54 PM

Well yeah and now the Presidency is actually worth less now that it was with Ronald Reagan.

redguy on February 3, 2014 at 10:00 PM

Obama views every question as an opportunity to promote himself and bash Republicans.
Or to obfuscate and lie.
He is a worthless POS.

Did you vote Mr. Summers?
For whom did you vote?
Who are you going to vote for in the next election?

justltl on February 3, 2014 at 10:00 PM

Hey! What’s not to like? The guy will work LESS hours for MORE money.

Then he’ll get fired! Fun-employment! Isn’t King Barack the Magnificent WONDERFUL?

GarandFan on February 3, 2014 at 10:01 PM

Back in the day I was working a low wage job and putting in some unapproved overtime each week. There was plenty of work to justify the extra hours.

I ended up needing all the extra money I had earned & saved when I lost my old Toyota Corolla in an accident later that year and ended up upgrading my ride significantly.

22044 on February 3, 2014 at 10:02 PM

We go back to the Campaign trail of 09:

“So you will have access to healthCare”

Julio Osequeda Asks Obama Final Question–McDonalds Employee

Uploaded on Feb 15, 2009

This supporter of Obama had one chance to ask a question of the President of the United States. Like others, he joined to ask for some type of handout.
****************

http://www.youtube.com/watch?v=5w-FjtdChXE

canopfor on February 3, 2014 at 10:03 PM

Then he’ll get fired! Fun-employment! Isn’t King Barack the Magnificent WONDERFUL?

GarandFan on February 3, 2014 at 10:01 PM

GarandFan:Boinking OutStanding:0

canopfor on February 3, 2014 at 10:05 PM

If Fox would just stop talking about it………

d1carter on February 3, 2014 at 10:08 PM

Mark Knoller ‏@markknoller 1h

Pres Obama also deniess he’s an advocate of the “nanny state.” He said “welfare is actually worth less now that it was under Ronald Reagan.”
canopfor on February 3, 2014 at 9:54 PM

And in other news at the top of the hour, water is still wet.

GrannyDee on February 3, 2014 at 10:08 PM

canopfor on February 3, 2014 at 9:54 PM

Well yeah and now the Presidency is actually worth less now that it was with Ronald Reagan.

redguy on February 3, 2014 at 10:00 PM

redguy: Yup:)

canopfor on February 3, 2014 at 10:10 PM

Mark Knoller ‏@markknoller 1h

Pres Obama doubts he’s the most liberal pres ever. He cites Nixon’s establishment of the EPA and other regulatory agencies. Also LBJ & FDR.

https://twitter.com/markknoller

canopfor on February 3, 2014 at 10:12 PM

canopfor on February 3, 2014 at 9:54 PM

And in other news at the top of the hour, water is still wet.

GrannyDee on February 3, 2014 at 10:08 PM

GrannyDee:Exactly:)

canopfor on February 3, 2014 at 10:13 PM

GrannyDee on February 3, 2014 at 10:08 PM

Great to see ya’ darlin’

OmahaConservative on February 3, 2014 at 10:14 PM

“It will increase income by 9.2 percent for the lowest bracket — households making below about $21,000 a year — for those in their working years, age 25 to 64.”

I would not be surprised if this number…is low..
millions of Americans had their hours cut to 28 or 29…
and at 28 hours no OT…(my friends 19yr old is seeing this now)

when I was young 50-60hrs a week was the norm
just to keep my bills paid…work hard and get ahead…
and the thought of a second 20 some hour job to the young today
is like garlic to a vampire…

when you work hard to get ahead under BHO…
he clubs you like a harp seal on a ice berg…
how dare you want to do better for yourself.. you must be punished..

going2mars on February 3, 2014 at 10:16 PM

OmahaConservative on February 3, 2014 at 10:14 PM

Howdy, Omaha!

GrannyDee on February 3, 2014 at 10:18 PM

Behold the genius comments on this Buzzfeed post:

Dom Pandolfo · Top Commenter · Oak Park, Illinois
This argument kinda confuses me. Why are you getting mad at the ACA bc your boss is am a$$hole? The blame seems to be put on the wrong person.
Reply · 6 · Like · Follow Post · February 1 at 7:23pm

Wayne Addair · Baileysville High School, Baileysville, WV
Perhaps you didn’t understand that his hours were cut DUE TO OBAMACARE
Reply · 4 · Like · February 1 at 7:30pm

Dom Pandolfo · Top Commenter · Oak Park, Illinois
Perhaps you dont understand that Obamacare is not cutting the hours. The boss is cutting the hours to avoid giving his employees healthcare.
Reply · 7 · Like · February 1 at 7:43pm

Yv La Lemonfairy · Top Commenter · Personal Assistant at Stark Industries
I’m with Dom. I really don’t understand how the blame is put on healthcare istead of cheap a$$hats. Don’t tell me, that corporates like Subway or Walmart can’t afford it.

msmveritas on February 3, 2014 at 10:18 PM

Let me try my hand at writing an AP style Hot Air blog post title, here.

Too bad to check: Did Russian spies help write Obamacare software?

U.S. intelligence agencies last week urged the Obama administration to check its new healthcare network for malicious software after learning that developers linked to the Belarus government helped produce the website, raising fresh concerns that private data posted by millions of Americans will be compromised.

Doomberg on February 3, 2014 at 10:19 PM

belated happy birthday OC…!!!
sorry im late..

going2mars on February 3, 2014 at 10:20 PM

OmahaConservative on February 3, 2014 at 9:44 PM

Happy birthday, Omaha Conservative! Wishing you a happy, healthy and productive year.

PatriotGal2257 on February 3, 2014 at 10:22 PM

Happy Birthday OC, hope it’s a blessed year for you.

22044 on February 3, 2014 at 10:23 PM

PatriotGal2257 on February 3, 2014 at 10:22 PM

glad I am not the only one late and sitting in the corner..
tell you what…i’ll wear the dunce hat this time.. ok?

going2mars on February 3, 2014 at 10:23 PM

Great to see ya’ darlin’

OmahaConservative on February 3, 2014 at 10:14 PM

OmahaConservative: Hope your hav’n a great BirthDay OC:0

canopfor on February 3, 2014 at 10:24 PM

Behold the genius comments on this Buzzfeed post:

Dom Pandolfo · Top Commenter · Oak Park, Illinois
This argument kinda confuses me. Why are you getting mad at the ACA bc your boss is am a$$hole? The blame seems to be put on the wrong person.
Reply · 6 · Like · Follow Post · February 1 at 7:23pm

Wayne Addair · Baileysville High School, Baileysville, WV
Perhaps you didn’t understand that his hours were cut DUE TO OBAMACARE
Reply · 4 · Like · February 1 at 7:30pm

Dom Pandolfo · Top Commenter · Oak Park, Illinois
Perhaps you dont understand that Obamacare is not cutting the hours. The boss is cutting the hours to avoid giving his employees healthcare.
Reply · 7 · Like · February 1 at 7:43pm

Yv La Lemonfairy · Top Commenter · Personal Assistant at Stark Industries
I’m with Dom. I really don’t understand how the blame is put on healthcare istead of cheap a$$hats. Don’t tell me, that corporates like Subway or Walmart can’t afford it.

msmveritas on February 3, 2014 at 10:18 PM

There’s no cure for willful ignorance.

None.

Whatsoever.

GrannyDee on February 3, 2014 at 10:24 PM

msmveritas on February 3, 2014 at 10:18 PM

Hmmm. Who would Dom and Yv La be?
I’m going to say Grow Fins and HAL!

22044 on February 3, 2014 at 10:26 PM

Don’t tell me, that corporates like Subway or Walmart can’t afford it.

What’s a corporate? Stark Industries should fire you STAT.

22044 on February 3, 2014 at 10:26 PM

Dom Pandolfo · Top Commenter · Oak Park, Illinois
Perhaps you dont understand that Obamacare is not cutting the hours. The boss is cutting the hours to avoid giving his employees healthcare.
Reply · 7 · Like · February 1 at 7:43pm

msmveritas on February 3, 2014 at 10:18 PM

msmveritas:Ugh,..need a tune for this!:)
========================================

Jethro Tull – Thick As A Brick

http://www.youtube.com/watch?v=u9bk2MrMGaA

canopfor on February 3, 2014 at 10:26 PM

What’s a corporate? Stark Industries should fire you STAT.

22044 on February 3, 2014 at 10:26 PM

22044:Ya,….and,..and Iron Man should do it personally!!
(snark)

canopfor on February 3, 2014 at 10:29 PM

Don’t tell me, that corporates like Subway or Walmart can’t afford it.

What’s a corporate? Stark Industries should fire you STAT.

22044 on February 3, 2014 at 10:26 PM

Amazing that this dolt even has a job.

GrannyDee on February 3, 2014 at 10:30 PM

Scholars at the liberal Brookings Institution have discovered that Obamacare will increase the income of Americans in the lowest 20 percent of the income scale, and especially in the lowest ten percent. But all other income groups — even people who make very modest incomes in the $25,000 to $30,000 range, as well as all income brackets above that — will experience a decline in income because of Obamacare.

Bullocks. If the other, higher, income grops see a loss that effect will carry over to the lower class in indirect ways. Everyone will be a net loser.

PackerBronco on February 3, 2014 at 10:31 PM

What part of Barky and freak Revrum Wrong creating Zimbawe West wasn’t predictable in 2008?

viking01 on February 3, 2014 at 10:34 PM

Amazing that this dolt even has a job.

GrannyDee on February 3, 2014 at 10:30 PM

I just realized, maybe the joke’s on us because Stark Industries is a fictional company.

22044 on February 3, 2014 at 10:36 PM

Fry cook asks Obama about getting cut back to part time b/c of Obamacare, Obama tells him Congress needs to pass a minimum wage increase

— BuzzFeed Benny (@bennyjohnson) January 31, 2014

Great comment on this from someone at Weasel Zippers:

robert anthony
• 13 minutes ago

“Ahhh…so the solution to a fire on your first floor is to build a third floor? Genius!”

GrannyDee on February 3, 2014 at 10:36 PM

Thanks for all the Birthday wishes. My HA family rocks, love you all…

OmahaConservative on February 3, 2014 at 10:38 PM

Bullocks. If the other, higher, income grops see a loss that effect will carry over to the lower class in indirect ways. Everyone will be a net loser.

PackerBronco on February 3, 2014 at 10:31 PM

Who are these “scholars”?
I’d give them an F- if I was Del D.

22044 on February 3, 2014 at 10:38 PM

22044:Ya,….and,..and Iron Man should do it personally!!
(snark)

canopfor on February 3, 2014 at 10:29 PM

Happy Monday Canada. :)
IM’s too good for her…

22044 on February 3, 2014 at 10:40 PM

Stop saying any of this is “unintended”!

SouthernGent on February 3, 2014 at 10:42 PM

going2mars on February 3, 2014 at 10:23 PM

Heh … haven’t had much time these past several months to do much more than lurk. Don’t think that makes either of us qualify for a dunce cap. :)

PatriotGal2257 on February 3, 2014 at 10:51 PM

What doesn’t Darnell Summers understand?

He’s supposed to get laid off, receive 99 thousand weeks of unemployment, and apply for food stamps till the cows come home.

Viva, America!!!

Bitter Clinger on February 3, 2014 at 9:48 PM

You forgot to add: “Marque el numero dos para Inglese”.

bofh on February 3, 2014 at 11:17 PM

Hey, Darnell, baby! Who did you vote for in the last two elections? Yeah? And how’s that working for ya?

HiJack on February 4, 2014 at 12:00 AM

A new study finds that Obamacare’s redistribution will be stunningly lopsided. Scholars at the liberal Brookings Institution have discovered that Obamacare will increase the income of Americans in the lowest 20 percent of the income scale, and especially in the lowest ten percent. But all other income groups — even people who make very modest incomes in the $25,000 to $30,000 range, as well as all income brackets above that — will experience a decline in income because of Obamacare.

In other words, Obamacare is going to cost some of the very people it was designed to help.

The typical pattern is that people entering the workforce get paid the least, and as they gain experience and credibility, their income goes up.

So Obamacare will have the perverse effect of helping slightly at the very bottom, then depressing their gains as they start to move up.

The Big Government War-on-Poverty types always act like they’re helping the poor at the expense of the very wealthy. But in fact, they’re only slightly helping the very poor at the expense of everyone else. And the biggest irony is, the “very poor” that they’re helping and the “everyone else” that they’re hurting are usually the exact same groups of people — at different times in their lives.

There Goes the Neighborhood on February 4, 2014 at 12:11 AM

I think those numbers assume if you never get sick during the year. The explosion of deductibles, copays, and prescriptions under Obamacare mean that the impact will be even more if you actually do get sick.

crosspatch on February 4, 2014 at 12:20 AM

People don’t want that – they want to work 50-60 hours a week to get OT.
In my first job I worked at least 50 a week and sometimes 70, while going to school….
Without that OT pay I would not have made it….

What the hell are people supposed to do? Get three jobs???

redguy on February 3, 2014 at 9:58 PM

This is a great point. It’s very hard to get overtime when you’re only working 29 hours a week.

Years ago, I was moved from an hourly position to a salaried position about 4 months into the year. The move brought a nice little hourly increase. I thought I was gaining something, because it was very hard to get overtime in the hourly position. It was only rarely authorized.

After 8 months at a higher rate — but with absolutely no overtime, instead of very little — I compared my year’s salary to the previous year’s salary as an hourly employee, and found … I made more as an hourly employee, even with a smaller hourly rate and just a little bit of overtime.

Overtime can really make a difference for those at the lower end of the pay scale. And Obamacare is forcing so many people into part-time work, and preventing them from getting any overtime at all.

There Goes the Neighborhood on February 4, 2014 at 12:21 AM

Hey, Darnell, baby! Who did you vote for in the last two elections? Yeah? And how’s that working for ya?

HiJack on February 4, 2014 at 12:00 AM

Exactly what I was thinking. Did I understand that right, he’s been on strike 4 times at a fast food job? Hummm, there is a whole lot that he doesn’t understand. Who the F*** convinced him that striking, a fast food joint, was a reasonable idea? That’s is the clown who should be in jail.

whbates on February 4, 2014 at 12:22 AM

Sorry if I missed this but did HA miss this?

Shy Guy on February 4, 2014 at 1:42 AM

Not mentioned in this post is the fact that subsides cost money. Taxes and/or debt will go up.

burt on February 4, 2014 at 6:24 AM

Bet in 2014 & 2016 Darnell votes for the Democratic candidates.

albill on February 4, 2014 at 6:37 AM

Yv La Lemonfairy · Top Commenter · Personal Assistant at Stark Industries
I’m with Dom. I really don’t understand how the blame is put on healthcare istead of cheap a$$hats. Don’t tell me, that corporates like Subway or Walmart can’t afford it.

 
msmveritas on February 3, 2014 at 10:18 PM

 
The funny/scary/sad part is that, even when they are shown directly and even acknowledge it, they don’t care. Forward, comrade:
 

I stand corrected and that *is* a heavy burden on that income (depending where they live in California of course). I *still* think though that its a doable expense.
 
libfreeordie on October 27, 2013 at 6:25 PM

rogerb on February 4, 2014 at 7:10 AM

Why doesn’t he who’s heart is in the right place fix this with an EO? He must not be able to find his pen.

Kissmygrits on February 4, 2014 at 8:59 AM

“Does Obama Know of this?”
Darnell Summers

jukin3 on February 4, 2014 at 10:45 AM

I’m voting for Botox Pelosi. She said I could quit my job and she would pay for my health insurance and she would give me STUFF. I want STUFF.

tmgrant on February 4, 2014 at 3:28 PM