Side Effects and Complications
The Economic Consequences of Health-Care Reform
Looking specifically at the labor market, Mulligan reveals how the costs of health care under the ACA actually create implicit taxes on individuals, and how increased costs to employers will be passed on to their employees. Mulligan shows how, as a result, millions of workers will find themselves in a situation in which full-time work, adjusted for the expense of health care, will actually pay less than part-time work or even not working at all. Analyzing the incentives—or lack thereof—for people to earn more by working more, Mulligan offers projections on how many hours people will work and how productively they will work, as well as how much they will spend in general. Using the powerful tools of economics, he then illustrates the detrimental consequences on overall employment in the near future.
Drawing on extensive knowledge of the labor market and the economic theories at its foundation, Side Effects and Complications offers a crucial wake-up call about the risks the ACA poses for the economy. Plainly laying out the true costs of the ACA, Mulligan’s grounded and thorough predictions are something that workers and policy makers cannot afford to ignore.
1 The Paradox of Affordability
2 Too Good to Be True: The Health Reform’s Hidden Taxes
3 Some Unpleasant Penalty Arithmetic
4 Some Unpleasant Subsidy Arithmetic
5 Exchange Subsidies and Their Implicit Income Taxes
6 Consequences for Employee Work Schedules
7 Adam Smith’s Equalizing Differences: More Hidden Taxes and More Health Coverage
8 The ACA’s Productivity Distortions
9 Other Significant Causes of Economic Change, 2007–2017
10 Romneycare Times Eleven