#CBO: Obamacare Report

On Tuesday, the bipartisan Congressional Budget Office issued a report outlining the budget outlook regarding the Affordable Care Act.  Many, and Republicans especially, have interpreted the report as more evidence of a flawed law, explaining that the CBO estimates that Obamacare will reduce employment by as much as 2.5 million jobs over the next ten years.  

To counter this, Democrats, including Representative Chris Van Hollen, cited the report's findings on Obamacare's impact on labor demand, rather than supply.  On page 124, the report estimates that the ACA will "boost overall demand for goods and services over the next few years because the people who will benefit from the expansion of Medicaid and from access to the exchange subsidies are predominantly in lower-income households and thus are likely to spend a considerable fraction of their additional resources on goods and services."  This, the report says, "will in turn boost demand for labor over the next few years."  This will eventually lower  the unemployment rate, according to the CBO director, Douglas Elmendorf.      

 

 

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