The Obama Administration has announced its intention to delay the implementation of the employer mandate in Obamacare for one year. This policy would have fined large firms $2,000 for every full-time employee they didn’t provide with health insurance.
The idea was to save taxpayers money by reducing the number if workers who get federally subsidized health insurance outside their jobs. But the mandate was also likely to discourage companies from hiring low-skill workers.
Delaying the mandate should improve next year’s job growth picture, but without a permanent repeal, firms may still be reluctant to hire full-time workers.
Reihan Salam and I discuss why the mandate had to be delayed, why it will be hard for both parties to agree on a permanent fix, and why Washington politicians are drawn to policies that emphasise budget savings instead of growing the economy.
Produced by Justin Gmoser
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