Side Effects and Complications

The Affordable Care Act will have a dangerous effect on the American economy. That may sound like a political stance, but it's actually a simple financial fact borne out by economic forecasts. In "Side Effects and Complications," preeminent labor economist Casey B. Mulligan brings to light the dire economic realities that have been lost in the ideological debate over the ACA, and he offers an eye-opening and accessible look at the costs that American citizens will pay because of it. Looking specifically at the labor market, Mulligan reveals how the costs of health care under the ACA actually create implicit taxes on individuals, as the increased costs to employers will be passed on to their employees. Mulligan shows how, as a result, millions of workers will find themselves in a situation in which full-time work, adjusted for the expense of health care, will actually pay less than part-time work or even not working at all. Analyzing the incentives--or lack thereof--for people to earn more by working more, Mulligan offers projections on how many hours people will work and how productively they will work, as well as how much they will spend in general. Using the powerful tools of economic forecasting, he then illustrates the detrimental consequences this will have on overall unemployment in the next several years. Drawing on extensive knowledge of the labor market and the economic theories at its foundation, "Side Effects"" and Complications "offers a crucial wake-up call about the risks posed by the ACA for the economy. Plainly laying out the true costs of the ACA, Mulligan's grounded and thorough predictions are something that workers and policy makers cannot afford to ignore.