#PresidentTump #economy #growth #jobs #virus #ACA
Economists who support the economic policies of Messrs Hussein Obama/Biden point out that there were nearly 1.5-M jobs created during the last 3 yrs of the administration than there were during the 1st 3 yrs of The Trump Administration. Factually that is correct but a close look reveals the poor quality of the jobs Hussein Obama/Biden created.
In Y 2010, Congress passed the Barack Obamacare (ACA). The main goals of the act were to provide health insurance for about 15% of the population( 50-M) who were uninsured and to control the cost of health care.
Instead of the promised $2,500/yr cost reduction, health insurance costs rose at a similar rate than before the ACA was passed. This was very upsetting to the American public as less than 50% of Americans approved of the ACA in the early years.
And the costs did not come down, which upset many Americans. Prior to the ACA the 85% of Americans with health insurance were generally pleased with their coverage and with the quality of care they were receiving. Their only complaint was the cost.
The other promise that was broken was the claim that if an American liked their doctor before the ACA, they could keep their doctor after the ACA. That turned out not to be true for millions of Americans who were forced to end sometimes life-long relationships with their doctor because of the ACA’s provisions.
The ACA also failed to significantly reduce the number of uninsured. At it is best, the ACA provided health insurance for a total of 91% of the population. That means about 20-M uninsured Americans were now covered because of the ACA. That’s only 40% of the total 50-M uninsured prior to the ACA.
The bottom line was the ACA helped 6% of the population, 20-M Americans, while it was costlier and provided lower quality service for the other 285-M Americans who were insured prior to the ACA.
A Key provision in the ACA was designed to force employers to pay for health insurance for all full-time employees. The provision was phased in gradually, but by Y 2015 it became fully engaged.
That provision said that every employer with at least 50 employees must provide health insurance to every worker or pay a $3,000 fine. To try to include as many workers as possible, the ACA defined a full-time worker as any employee working at least 30 hrs per week.
In Y 2016, the employers, who were still trying to fully recover from the devastating Y 2008/2009 Great Recession, and the slowest economic recovery since the Great Depression, simply could not afford this. It would drive up labor cost, reduce profit and slow business growth. Most firms found it impossible to pass the increased cost along to consumers.
Their response was to reduce the number of employees working at least 30 hrs and hire more part-time workers to make up the difference.
Since the published unemployment rate counts part-time workers as being employed, the employment numbers showed an increase. But the new jobs were mostly part-time and low paying with no benefits.
In other words, suppose a firm had 5 workers employed for 40 hrs per week prior to the ACA. After Y 2015, to avoid paying health insurance costs, the firm reduced the number of hours for the 5 workers to 25 and then hired 3 more workers for 25 hrs. They ended up with 8 employees working 25 hours or 200 hrs in total. Prior to the ACA they had 5 employees working 40 hrs, again 200 hrs in total.
So, they added 3 more part-time employees. But the 5 original workers lost hours, forcing many to look for a 2nd part-time job. That is how more jobs were created in the last 3 yrs of the Hussein Obama/Biden administration.
The number of jobs President Trump added was truly remarkable. When he entered office, the unemployment rate was 4.7%. Nearly all economists would say that was a full employment level meaning reducing that number would be extremely difficult, Hussein Obama said imposible.
In spite of that President Trump added more than 7-M jobs in his 1st 3 yrs and prior to the virus chaos instant recession. In addition, workers wages were rising at the fastest rate in decades. The no growth Hussein Obama/Biden recovery, was transformed into The Trump Expansion.
It is not just the quantity of jobs created but the quality.
President Trump improved the economy and vastly improved the job market. And now he is already leading the economy into the fasted recovery from recession ever, as May, June, July and August saw nearly 11-M workers returning to full-time employment.
So, let us stay the course and re-elect Donald J. Trump in November.
Making and Keeping America Great!
Have a healthy day, Keep the Faith!
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