In the wake of a new Congressional Budget Office report indicating that more than two million Americans might work fewer hours or stop looking for work because they can get affordable health care through Obamacare exchanges, a new political debate over the dangers of the healthcare law to our economy seems to be brewing already.
But a negative interpretation of the CBO report is inaccurate and unwarranted. The logical and sensible way of looking at it is to recognize that the law is projected to achieve exactly what it was meant to -- to free Americans from all walks of life from the restraints of ballooning healthcare costs so that they can conduct their lives and their business based on motivations other than the fear of falling sick.
The American economy was born of entrepreneurship and thrives because of it. However, one of the biggest hurdles to entrepreneurship in the modern age is the unaffordability of good health care since even some of our most talented (and potentially trailblazing) citizens are forced to seek employment with existing companies in order to obtain health insurance. This obstacle to risk-taking has the potential to stifle innovation, make American industry less competitive on the world stage, and hurt our economy in the long run.
Another reason why the CBO report cannot be taken at face value is that people do not only work to obtain health care. They work to make a living, and even if they can suddenly afford health insurance does not mean that they require nothing else for their sustenance. If anything, it means that those who might accept jobs which are a bad fit for them will now be able to choose more carefully and base their choice on factors other than merely a health plan. This will also benefit employers, since unmotivated workers who only take jobs out of desperation hurt productivity and profits.
For both these reasons, the fact that Obamacare might lead to a shift in the labor force could actually strengthen our economy. There may be other drawbacks to the healthcare law and that is a separate debate, but this is not one of them.
Sanjay Sanghoee is a political and business commentator. He has worked at investment banks Lazard Freres and Dresdner. He has appeared on CNBC's Closing Bell, MSNBC's The Cycle, TheStreet.com, and HuffPost Live on business topics. He is also the author of two thriller novels.
But a negative interpretation of the CBO report is inaccurate and unwarranted. The logical and sensible way of looking at it is to recognize that the law is projected to achieve exactly what it was meant to -- to free Americans from all walks of life from the restraints of ballooning healthcare costs so that they can conduct their lives and their business based on motivations other than the fear of falling sick.
The American economy was born of entrepreneurship and thrives because of it. However, one of the biggest hurdles to entrepreneurship in the modern age is the unaffordability of good health care since even some of our most talented (and potentially trailblazing) citizens are forced to seek employment with existing companies in order to obtain health insurance. This obstacle to risk-taking has the potential to stifle innovation, make American industry less competitive on the world stage, and hurt our economy in the long run.
Another reason why the CBO report cannot be taken at face value is that people do not only work to obtain health care. They work to make a living, and even if they can suddenly afford health insurance does not mean that they require nothing else for their sustenance. If anything, it means that those who might accept jobs which are a bad fit for them will now be able to choose more carefully and base their choice on factors other than merely a health plan. This will also benefit employers, since unmotivated workers who only take jobs out of desperation hurt productivity and profits.
For both these reasons, the fact that Obamacare might lead to a shift in the labor force could actually strengthen our economy. There may be other drawbacks to the healthcare law and that is a separate debate, but this is not one of them.
Sanjay Sanghoee is a political and business commentator. He has worked at investment banks Lazard Freres and Dresdner. He has appeared on CNBC's Closing Bell, MSNBC's The Cycle, TheStreet.com, and HuffPost Live on business topics. He is also the author of two thriller novels.