Essay on A Wall Street Journal Column

737 Words Apr 17th, 2015 3 Pages
ESSAY 1: In a Wall Street Journal column by Joseph Rago (dated Sat/Sun—Feb. 8/9, 2014), respected economist Casey Mulligan is quoted as predicting Obama Care will lead to large numbers of Americans leaving the workforce. Comment on Mulligan’s logic, whether you agree or not, and whether this reduction in workforce size is good or bad for the country.
The health insurance and the employment is directly related to each other in America. During World War II many insurance companies used the tool of insurance to threaten workers. Today many companies offer insurance to their employees which are usually not taxed. The workers have to consider it because the alternative of not accepting the insurance is extremely bad. In the marketplace, the insurance companies charge excessively high rates. This kind of arrangement has some serious effects on the labor market. Employees continue to follow the same jobs, even if they are bad, because of the fear that they will lose their insurance. With the rise in insurance costs, the wages of employees lowered down. These rising health cost has also affected the process of hiring. From data gathered in a study, it was found that between 1987 to 2005 the growth of jobs were slow in industries where the health insurance was provided compared to those that did not. After the Obama care it was an obligation on every citizen to get insured or pay the fine. As Obama shook the whole healthcare market there was no choice left for the employers. Some…

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