image_pdfimage_print

So, You Want a Swiss Healthcare System?

If you fail to comply with the mandate, the Swiss government will garnishee your wages and charge you a penalty equivalent to the cost of the premiums plus up to 50 percent, and, if you persist, the government will sign you up for an insurance policy and allow the provider to sue you for back premiums covering the period during which you were uninsured. Continue Reading →

A Labor Force Participation Rate Update

I wish I could say there is good news in this report. But the best I can offer is that some trends seem to have leveled off. At this point, however, it’s safe to say the U.S. economy has lost a substantial number of young potential workers who will never make up the ground they have lost.

In some of my other research I’m exploring the possibility that these younger people may actually be working in the “informal sector” (also called the underground economy or hidden economy). It’s possible that the growth of this sector has absorbed some young people, meaning that the reported LFPR’s are lower than the actual participation rate. … Consider the Affordable Care Act. This plan fundamentally requires young people to subsidize health insurance for older people. One way to avoid this tax is to not report any income (and therefore not file any tax returns). Working off the books for cash probably looks like a pretty good deal to some of these folks. Continue Reading →

“Freeing Workers From the Insurance Trap”

The Times editorial board has now officially become a propaganda wing of the Obama administration. Updated Feb. 6 to include a video clip showing CBO Director Dr. Douglas Elmendorf replying to questions from Rep. Paul Ryan (R-Wisconsin). Dr. Elmendorf confirms that the reduction in labor supply directly leads to the CBO forecast of lower economic growth. Continue Reading →

The Impact of the ACA Medical Device Tax Corrected Version

I predict a surge in hospitals and clinics just south of the U.S. – Mexico border. These places will house very expensive medical devices. Medical tourism will expand a great deal, at least among those who can afford it. (This won’t happen in Canada because in that country it’s illegal for individuals to pay for healthcare.) Continue Reading →

President Obama Has a Solution to a Problem Created by the ACA

The President’s solution? Increase the minimum wage! That’s a great idea — instead of just getting hours cut, some of those employees will find themselves with their work hours reduced to zero. These are the employees who lost their jobs du to the minimum wage hike. Continue Reading →

The Times Has Discovered That Costs Matter in Obamacare

“The Chapmans acknowledge that they are better off than many people, but they represent a little-understood reality of the Affordable Care Act.” … Perhaps this was “little-understood” by the geniuses who run the New York Times. But many economists, including me, pointed out that costs and prices would inevitably rise given the mandates and rules included in Obamacare. Continue Reading →

The Other Cliff — Regulations

To summarize, there is more to fiscal policy than G, TA, and TR (government spending, taxes, and transfer payments for those a little rusty on their macroeconomics). Government regulations also have a significant impact on the economy. Continue Reading →