Obamacare Blamed For High US Unemployment Rate, Slow Wage Growth
Obamacare is being blamed for the continuing high US unemployment rate by some economists.
As previously reported by The Inquisitr, Obamacare and the May jobs report on the US unemployment rate are being discussed by economists. The US labor market is said to be weak and the US unemployment rate is 7.6 percent.
Back in 2009, President Obama and Congress passed a $800 billion stimulus that promised to have the US unemployment rate at 5.1 percent by the end of 2013. The percentage of the employed American adult population is at 58.6 percent, which used to be at 63.4 percent before the recession. Many of the newly created jobs are summer jobs taken by teenagers.
If you include the underemployment rate, which means part-timers who want full-time jobs, then the unemployment rate in the US is actually at 13.8 percent. Many businesses are blaming Obamacare for their decision to cut employees down to part-time from full-time. That way, businesses avoid paying the Obamacare fees nor are they forced to provide employee health insurance benefits. Some doctors are refusing Obamacare health insurance so they can cut costs. Even local government are cutting back the hours of public workers to 25 or 27 hours in order to save money they no longer have due to the housing market crash (many local governments rely on housing taxes).
The unemployment rate for blacks increased from 13.2 percent to 13.5 percent in May, and Obamacare is being blamed by black Americans.
“The president hasn’t really shown any seriousness or sincerity with changing the situation,” says Derryck Green of Project 21, the black leadership network. “I think people have gotten used to low expectations as it pertains to the economy. [Businesses are not hiring and expanding] because they cannot afford the financial penalty that’s going to come with providing all of their employees with company paid-for healthcare.”
Even wage growth is slowing. Economists are blaming Obamacare, automation, and weak labor demand.
What do you think President Obama should do about Obamacare considering what impact economists are saying it has on the US unemployment rate?
