Monday, November 12, 2012

Unintended Consequences

Most people who work prefer full-time jobs to part-time jobs. This is particularly true since full-time jobs normally come with benefits that part-time jobs lack.

Obamacare requires all employers of 50 or more employees to provide health care to those working 30 or more hours a week. See this Chicago Sun-Times article for more. Hat tip to for the link.

Talk about a disincentive to large-scale, full-time employment. Many smallish companies which would otherwise have 55 or 65 employees, will instead have 49 or fewer. Such firms will also assign to outside contractors work which might otherwise be done by their own employees.

ACA also creates a serious incentive for firms to use wholesale volumes of part-time employees as the retail and fast food industries now do. Imagine a future in which many people hold down 2-4 part time jobs in order to create enough income to live while having few or no benefits from any of them. In which the only full-time employees are managers.