Employment: Employment And General Effects On Employment

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General effects on employment

Employment is the total numbers of people who are willing and able to work. As mentioned above, the healthcare inflation rate is fallen, which has positive effect to employment rate. Baicker and Chandra (2006) has done an experiment on the effects of changes in medical malpractice cost over time to companies that provide high health insurance premiums, and they found out 10 percent fall in health insurance premiums would increase 1.2 percent employment. It reflects that a slow growth in health insurance would have a substantial positive effect to the employment rate.

In addition, in the long run period, a reduction in government deficit would leads to a fall in taxation, which allows businesses and individuals to generate more finance for further investment. It is also suggested by the Federal Reserve Chairman Ban Bernanke, as falling deficit would not only enhance economic performance in the long period, but could benefit the near-term by leading to lower interest rates and boost the confidences of
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According to the 2014 CBO report on jobs, number of full time employees would decline around 2 million workers in 2017 and 2.5 millions in 2024. It occurs because employers tends to control the cost as low as possible, it can be done by cutting the working hours and transfer the full time worker to part time worker, in order to avoid the payment of employer mandate. Besides, the government has raised taxes by almost $500 billion over ten years(Obamacare: A Budget-Busting, Job-Killing Health Care Law, John Boehner, 2011), it affects the future growth of the business, due to the increase in expenses, especially to small businesses, their capital would fall and potential expansion are more likely to be delayed. As a result, these factors would lead to restriction of the long term economy
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