"The Buried Lede In The CBO Report: Obamacare Will Raise Wages"

[applegrove]

The Buried Lede In The CBO Report: Obamacare Will Raise Wages

by Josh Barro at Business Insider


http://www.businessinsider.com/the-buried-lede-in-the-cbo-report-obamacare-will-raise-wages-2014-2

"SNIP...................................



The price of labor, like any good or service, is determined by supply and demand. If producers of labor (workers) become less inclined to sell it, but consumers of labor (firms) are unchanged in their interest in buying, then the price of labor has to rise in order to bring the quantity supplied and the quantity demanded into line.

....

This helps explain why so many business owners have been apoplectic about the law.

The usual warning about Obamacare from the right has been that it will "kill jobs" by making firms less inclined to hire. While this warning tends to come from (or on behalf of) business owners, the phenomenon it describes would mostly have negative effects on workers, by increasing unemployment and reducing their ability to command wage increases.

If (as CBO predicts) the decline in work is driven almost entirely by a decline in labor supply, the upshot will be very different. Employers will be left holding the bag economically. Workers will choose to work fewer hours; since firms won't be any less interested in hiring, they'll have to pay more per hour to get those workers in the door.



...................................SNIP"

[elleng]

1. Lots of stuff buried,

has taken a while to be clarified, but obviously won't assuage those who don't want to be.

[Squinch]

2. It will also reduce the unemployment among the twenty-somethings.

Those second jobs we are all working tend to be the one that requires less training, something we just picked up for the extra needed cash. If we give those up, the unemployed young can pick them up, and begin to train in what it is like to work for a living. Which means we won't have the "lost job experience generation" that we were previously looking at.

Obamacare does not go as far as I wanted it to, and we still need single payer, but still, it changes everything.

[ananda]

3. I wonder why lead was changed to lede?

It does conform more to its OE root, I suppose.

[WestCoasterDude]

4. 'The Full Cillizza' defined .....

Just submitted this definition to the Urban Dictionary:

'The Full Cillizza'

That thing where you acknowledge that facts exist, but insist that "perceptions" are more important to understanding the world. And then you go on to literally denigrate the work of those who attempt to trade in facts, and insist that the very notion of a media that trades in truth as hopelessly stupid and not even worth attempting.

From the article posted at http://www.huffingtonpost.com/2014/02/09/cbo-media-fail_n_4748590.html by Jason Linkins (great read by the way.)