Federal Reserve Chairman Ban Bernanke Essay

Federal Reserve Chairman Ban Bernanke Essay

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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 business and individual.

Employer Sponsored Health Insurance

The Employer Shared Responsibility Provision, unofficially calls “Employer mandate”, begins in 2014, and has implemented since 2015, it requires business which employs more than 50 full-time employees(FTE) would need to provide health insurance to at least 95% of them, otherwise, employer would be fined; For business that employs less than 25 FTE, the government would offer tax breaks and credits through Small Business Health Options Program(SHOP), so that to provide health benefits to small business employees.

The changes in employer sponsored health insurance has cause a significant decline in full time employment in the A...

... middle of paper ...

... growth. On the other hand, Global competitiveness might risen due to the imposition of taxes on health insurance, because it promotes innovative reimbursement and comparative effectiveness among businesses, so the increase in productivity is expected. For instance, as the expenses increase, directors and managers would be discussing the ways to cut expenses without distracting the operation.

Apart from businesses’s dynamic efficiency, CBO and JCT estimate that there would be a rise in capital stock if the ACA is repealed. As several taxes are removed, people has greater incentive to invest or save their earnings. It then gradually uplift the amount of capital stock, lastly, economic growth would be promoted.

For instance, the budget office has estimated that the ACA would causes a 2.5 millions job loose owing to the change to labour’s incentives to work.

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