Welcome to the Unaffordable Careless Act

Small businesses won't grow, and more employees will work fewer hours. That's just for starters.

Harvard (and later Columbia) sociologist Robert K. Merton wrote in 1936 about the "unanticipated consequences of purposive social action." Pity that Barack Obama, an alumnus of both universities, either never read or took to heart Merton's warnings. It would have saved Americans a lot of misery.

The president certainly did not promote the Affordable Care Act by promising it would mean more part-time and fewer full-time jobs. Yet that is one of its unanticipated consequences.

A major provision of ObamaCare requires companies to provide health insurance to any employee who works more than 30 hours a week or pay a $2,000 per-person fine. Not surprisingly, the number of hourly employees working 30-34 hours a week dropped by an average of 146,500 a month over the past year, according to the Bureau of Labor Statistics. The number working 25-29 hours rose by 119,000 a month.

Consider individual workers such as single working mothers who need at least 35 hours waiting tables plus tips to make ends meet. If they are cut to under 30 hours, they will have to look for second jobs. If these moms can find a second job, they'll still have to juggle schedules, child care and transportation. Overall, even if 1% of the workforce is thus affected by this squeeze, that's nearly 1.4 million Americans.

Then there are younger workers, many of whom will start their careers by stringing together several part-time jobs, perhaps for years. Their predicament may delay when they start families, buy homes, pay off student loans and become independent.

The president's health law also unintentionally operates to prevent the smallest companies from growing. Owners have a strong incentive to stay below the law's 50-employee threshold at which they are required to provide health insurance.

Here the U.S. is following in the footsteps of France and other countries with sclerotic economies. Earlier this year, the National Bureau of Economic Research published a study of the French regulatory burden on businesses with more than 50 employees.

Via: Karl Rove

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