The White House (And Its Faithful) Scramble To Refute CBO Report On Obamacare Job Losses

Tyler Durden's picture

Earlier we reported how, in the CBO's own words, Obamacare would result in (at least) 2.5 million (soon to be revised much higher) workers departing the labor force over the next decade, that would stay there were it not for the skewed incentives provided by this latest welfare Ponzi scheme. Sure enough, it took the White House mere moments to share its canned retort seeking to control the major fallout this report generated as it goes, once again, against all of Obama's promises. From Reuters: "The White House on Tuesday refuted arguments that Obamacare reforms will hurt jobs, and said a new report from the Congressional Budget Office finds the reforms will spur hiring during the 2014-2016 period. "Claims that the Affordable Care Act hurts jobs are simply belied by the facts in the CBO report," the White House said in a statement about the report, contradicting assessments that said the CBO showed reforms will result in a cut to hours." So job losses after 2016, but before then the surge in hiring - of part-time workers - offset by mass layoffs of full-time workers as employers seek to game Obamacare. Just say that then.

Of course, the White House scrambling to contain the damage is expected. However, nothing compares to the "explanation" provided by The Bezos Post's internal "fact checker."  The "explanation" there why "No, CBO did not say Obamacare will kill 2 million jobs" (which it did) is truly an example of a Goebbelsian work of art when it comes slaying any facts that do not fit the "glorious leader" narrative.

The so-called "facts" according to the "fact-checker":

First, this is not about jobs. It’s about workers — and the choices they make.


One big issue are the health insurance subsidies in the law. That’s a substantial benefit that decreases as people earn more money, so at a certain point, a person has to choose between earning more money or getting less help with health insurance payments. In other words, they might work longer and harder, but actually earn no more, or earn even less, money. That is a disincentive to work. (The same thing happens when people qualify for food stamps or other social services.)


Thus, someone might decide to work part-time, not full time, in order to keep getting health care subsidies. Thus, they are reducing their supply of labor to the market.




The CBO did look at the effect on demand for labor (i.e., jobs) but said that the effects are mostly on the margins or are not measurable. In fact, in contrast to a common GOP talking point, the CBO declares that “there is no compelling evidence that part-time employment has increased as a result of the ACA.”


Finally, we should note that the figures (2 million, etc.) are shorthand for full-time equivalent workers—a combination of two conclusions: fewer people looking for work and some people choosing to work fewer hours. The CBO added those two things and produced a hard number, but it actually does not mean 2 million fewer workers.

So, as a result of skewed incentives courtesy of Obamacare, there will be 2.5 million workers (or, by some forced logic 5 million part-time workers and so on) in the labor force over the next decade. In other words precisely what all those articles that the WaPo supposedly is refuting are saying?

Of course, by that "logic", Americans can't wait to earn less so they fall into that sweetspot where the government "welfare cliff", i.e., free handouts, is the highest, as we reported over a year ago:

And this is what passes for "refuting" a fact in our day and age? May at least have added a few kittens and a slideshow to at least generate some ad revenue for Jeff Bezos.

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Iriestx's picture


Syrin's picture

Welcome to the Reichland

pods's picture

Obama lied and the economy died.


knukles's picture

"I'm seeing through you"

Pegasus Muse's picture

Nobody hides the truth and dishes out the like the Obama. 

Here's your award, Barry; you earned it:   

texas sandman's picture

So, who ya gonna believe, Dear Leader MaoBama or your lying eyes and ears.....hmmmmm?

Colonel Klink's picture

MaoBama?  Because I'm allergic to FEMA trailers and he's now got his private army he told us about, the D  H   S.  (said in my best Hans Gruber voice)

Chuck Walla's picture

Eins volk
Eins Reich
Eins fuehrer

XenoFrog's picture

It'll be fun seeing all the Obamunists jump across the fence on their opinions of the CBO.

pods's picture

The CBO is like Al-CIA-Duh.  We like them when it suits us, and bomb them when we don't.

Empires crumbling is easy pickings for editorials.  Yet all we get is "Don't worry, be happy."



Jena's picture

At the White House Press Briefing, the phrase 'workers may choose to spend more time with their families' was uttered to explain why fewer of them would be putting in full time hours.

They're just so cute in their adorable-ness.

Meat Hammer's picture

Funny, I seem to recall countless statists claiming that social programs do not incentivize people to work less, that they are a stepping stone to greatness.  And now these statists say that these programs do discourage hard work.  It's almost like they twist the narrative to fit their agenda.  

Blano's picture

I didn't watch the Half Black Cracker give the SOTU address, but wasn't he recently pimping how good CBO's numbers are because they're "nonpartisan?"

Offthebeach's picture

Drone CBO building in 7...6...5...4

Colonel Klink's picture

It'll be an "accidental" implosion disguised to look like a drone/plane strike.

yogibear's picture

Dictator Obama has spoken.

max2205's picture

Heads will roll on this one

jcaz's picture

Fuck you, Barry-  can't keep the truth hidden for long these days....

Professor Fate's picture

Barry Soetoro...the master of ObamaThink: "The power of advancing two contradictory beliefs simultaneously, and convincing the butt sniffing masses to accept both of them.”

Fate the Magnificent
"Push the Button, Max"

stant's picture

who has the worst credibilty?

NoWayJose's picture

Problem solved!  Obamacare will result in the loss of 2.5 million FULL time jobs, but as those workers are cut back to part-time status, they will seek second jobs.  Thus there is no loss of any jobs, and Obama can double-count them as 'new jobs' when they obtain part-time employment with a second job!  Victory!

Syrin's picture

Yep, they can work in the morning digging holes, then in their second job in the evening, they fill the holes they dug in the mornimg.   Repeat for a few decades and WEALTH FOR ALL !!

AGuy's picture

"Problem solved! Obamacare will result in the loss of 2.5 million FULL time jobs, but as those workers are cut back to part-time status, they will seek second jobs. Thus there is no loss of any jobs, and Obama can double-count them as 'new jobs' when they obtain part-time employment with a second job! Victory!"

Not exactly, since 1+ Million will be laid off healthcare workers as demand for medical services decline. At best these people will need to go back to school to learn skills for a new occupation.



Dr. Venkman's picture

Ahh. So the headline should read: ObamaCare to add 2 million more subjects to the list of those whose earning potential is effectively capped due to poorly conceived welfare system.

That's much sexier. Unfortunately it won't fit above the fold.

Nice try, kiddos.

Iriestx's picture

The bullshit the Obama administration produces is the only shovel-ready job so far.

overexposed's picture

With the "intellectual" leadership in this country (in the Government-Entertainment-Media orgy) being as braindead as it is, it's pretty clear that the USA has absolutely no future under the form of government we have today.

Either it goes full-on Ingsoc and we all get to learn the joys of living under full-on Soviet central planning,

Or some state with access to a large portion of the military says "F**k it" and starts the secession ball rolling.

I don't see it happening any other way, which is pretty depressing. (At least there will always be Switzerland!)

LawsofPhysics's picture

The world will get by either way.  As the debt became unbearable in the Soviet Union, many states seceded and the "Union" ceased to exist.  The good news is that when they ceased to exist, much of their debt disappeared as well.

El Vaquero's picture

It'll get worse first.  Then we'll actually have to deal with that pesky calorie problem, especially as it relates to pumping water and growing food. 

HyBrasilian's picture

You didn't lose that job

tarsubil's picture

Obama eats 3 million jobs that he shits for breakfast.

slightlyskeptical's picture

3:30 Dump

3:30 Bump

What's it going to be?

Spastica Rex's picture

Will no-one think of the insurance companies?

Then they came for the insurance adjusters and I did not speak out, for I was not an insurance adjuster.

replaceme's picture

how does that play out? you lose a fulltime job, get a couple part time, sign up for obamacare and get it for the low, low cost of free?  Honestly, the whole admin is a disincentive to work.  Get yourself a dollar house and a big dog, get a part time job where you can smoke hoopy doopy, and laugh at the last of the workers as they come home for dinner.  Stoned to the bone.

Spastica Rex's picture

Think of all the fruit that could have been picked, but will now rot on the ground. Washington State apples are going to cost $12.00/lb.  Think of all the hotel rooms that won't be vacuumed, and all the lawns that will never be mowed again, their brown, dry tops waving softly in an August breeze.

Blano's picture

Amnesty is gonna fix that.

_SILENCER's picture

It's designed to brankrupt you, drown you in useless red tape, restrictions and chaos, and still manage to make you become dependent.

29.5 hours's picture



What a lie the CBO report is. The entire onus for loss of labor force is put on working people. Supposedly, in our millions, we will voluntarily elect to leave the labor force or work fewer hours.

Yes, ObamaCare will have a bad effect on the work force--partly caused by that act's encouragement to employers to cut hours to avoid federal bureaucracy.

The CBO report turns the victim into the criminal.




esum's picture

grandpa .... what's a full time job ?


ncdirtdigger's picture

Filling out govco forms to get your cheese is a full time job Billy.

James-Morrison's picture

Well little esum, we used to carry large mechanical timepieces and it was quite an effort to keep them wound tight and running. Grandma used to call it, my full time job.

What was the question again?

replaceme's picture

Grandma, what's a pa? 

Sudden Debt's picture

a uncle that doesn't leave after 1 week