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Weekly Report

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Jul 22 2013

Wicker Troubled by Obama’s Part-Time Economy

Health-Care Law Seen as Major Culprit in Slow Job Growth

Three years ago, the Obama Administration welcomed the “Summer of Economic Recovery.”  Supporters of the President’s massive $1 trillion stimulus promised the economy was on the upswing.  Americans were told they would soon see lower unemployment and greater economic growth.  The Administration predicted joblessness would be roughly 5 percent by 2013.

The latest jobs report is a glaring reminder that these promises have yet to bear much fruit. Unemployment has stalled at a disappointing 7.6 percent nationally and is still above 9 percent in Mississippi.  Add to that the number of workers who are underemployed, and the national rate nearly doubles – encompassing some 20 million Americans.

Instead of a full recovery, the President’s misguided policies have fueled a part-time economy, forcing millions to work fewer hours and take home less pay because they cannot find a full-time job.  In June, part-time work drastically eclipsed the number of new jobs, rising by 322,000 in just one month.  The numbers indicate full-time employment is on the decline – hardly the sign of positive growth.  When testifying before Congress earlier this month, Federal Reserve Chairman Ben Bernanke at least conceded the country’s job situation is “far from satisfactory.”

‘Nightmare Scenarios’

There is a growing consensus that the President’s health-care law is a major contributor to the weak job creation.  A new survey released by the U.S. Chamber of Commerce revealed 74 percent of small businesses will cut hours or reduce their workforce to avoid the law’s onerous requirements.  A number of companies have already done so.

Of particular concern is the controversial employer mandate, which forces employers with 50 or more full-time employees to provide health insurance or pay a penalty.  In an admission that the provision is flawed and harmful, the Administration recently delayed its implementation for one year.  I am an original co-sponsor of Senate legislation to repeal it entirely.

Even the law’s onetime supporters have recognized the mandate as a deterrent to full-time work.  Leaders from three major U.S. unions recently wrote to Democratic leaders that it will lead to “nightmare scenarios,” including the destruction of the “40-hour workweek that is the backbone of the American middle class.”

Costly Implementation

Worries about the costly implementation of Obamacare are not isolated to the employer mandate.  Families fear soaring insurance premiums and new taxes.  Only 19 percent of Americans believe they will be better off with the law than without it.  All Americans deserve the relief that the Administration has granted to businesses.

Every Republican senator has called on President Obama to delay not just the employer mandate but the entire health-care law indefinitely.  The House of Representatives was successful in passing two measures to postpone the law’s employer mandate and its requirement for every American to purchase health insurance.  Unfortunately, similar legislation is unlikely to receive a vote in the Democrat-controlled Senate.

Reality Check

Democratic leaders can continue to exaggerate the law’s implementation as “fabulous” and “wonderful,” but their assessment falls far short of reality.  The fact that the Administration has suspended a major component of the law underscores the need for better reform.

Americans deserve health care that is effective and economical, and they should not have to suffer from the law’s harsh economic consequences. Until we can secure a full repeal, more costs are on the horizon – and hopes for a full-time recovery will continue to dwindle.

Permalink: https://www.wicker.senate.gov/public/index.cfm/2013/7/wicker-troubled-by-obama-s-part-time-economy

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