Americans are generous, and most of us want to expand healthcare coverage — a noble goal. But the question is how to balance costs and benefits, and whether expanding government healthcare instead of private insurance is the way to go.
On balance, societies that offer more private insurance have greater medical innovation. And new evidence suggests that expanding government insurance results in fewer people working. This isn’t good for America’s future economic trajectory.
As noted by economist Tyler Cowen (via Ben Southwood), Thomas Wind, a graduate student at Georgetown University reported from his thesis:
I find a significant negative relationship between Medicaid expansion and labor force participation, in which expanding Medicaid is associated with 1.5 to 3 percentage point drop in labor force participation.
Americans are generally dissatisfied with the Affordable Care Act (I personally lost my doctor when I moved to an exchange plan), and this new study suggests that beyond the hassle of rising premiums it also has a bad effect on jobs, too.
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Carrie Sheffield is the founder of Bold. She is passionate about storytelling to empower and connect others. A founding POLITICO reporter, Carrie contributed on political economy at Forbes and wrote editorials for The Washington Times. After earning a master’s in public policy from Harvard University, she managed credit risk at Goldman Sachs and researched for Edward Conard, Bain Capital founding partner and American Enterprise Institute scholar. She earned a B.A. in communications at Brigham Young University and completed a Fulbright fellowship in Berlin.