A few years ago when Obamacare was just going into effect, a friend who worked at a local supermarket told me how he was looking for a second job because his hours were cut. The reason being that the chain was mandated by the law to provide health insurance to all full-time employees, which on their margins would’ve been impossible – so hours were cut instead.
Now every employee still had no health insurance, and less working hours to boot.
Knowing my interest in economics and politics, he asked me if Obamacare was an elaborate jobs creation scheme, aiming to replace every full-time job with two part-time jobs. While that was by no means the law’s intent, the rise in part-time work has been a very real unintended consequence of the law.
And everyone is acknowledging that – even Hillary Clinton.
As video obtained by the Daily Caller shows, when Hillary was asked about the rise in part-time work as the result of the Family and Medical Leave Act at a recent event, she was quick to blame Obamacare as part of the problem as well:QUESTIONER: “Hi, I just want to know why there is discrimination against the part-time workers when so many companies are going to part-time when it comes to FMLA [Family and Medical Leave Act]?”
HILLARY CLINTON: “Well, that’s why they are going to part-time. That, and also, the Affordable Care Act. You know, we got to change that because we have built in some unfortunate incentives that discourage full-time employment. A lot of employers believe if you don’t work 40-hours a week you don’t get benefits and that includes; you don’t get health care benefits; that might include you’re not eligible for the family medical leave; you’re not eligible for paid sick days. So, there is a disincentive in our system that we need to deal with and I really worry about it because there is trend to try and move more and more people into part-time work; and how many of you are part-time workers? And sometimes you want to work part-time, it fits into your family, it fits into your life obligations but sometimes you want to work full-time but you can’t get a full-time job. So, I want to look at all the employment rules.
Clinton acknowledges that mandating health coverage to employees who work 40 hours a week will lead to employers cutting hours, but she herself has supported a health plan that suffers from similar flaws. Back when she ran against Obama in 2008, she supported a health care mandate for businesses that employ more than 25 workers. Had that gone into effect, we shouldn’t be surprised when we see the frequency of 24 person businesses spiking.
It’s at least refreshing to see liberals acknowledge the mistakes of their policies. It’s a shame they don’t learn anything from it.
[Note: This article was written by The Analytical Economist]