ObamaCare is Driving a Wedge Between the Socio-Economic Classes Essay Example for Free

Obama fretfulness is Driving a Wedge Between the Socio-Economic Classes EssayThe Affordable C ar Act is amplifying the difference between socio-economic classes because the ACA encourages employers to shorten employee hours. The mainstream of college students hold jobs while studying so that they can pay rent and phone bills, and occasionally go to the movies or out to dinner. We get the money for these bills and drawings with bi-weekly paychecks. We have hard, usually for forty to fifty hours a week, and are compensated near minimum wage. Although miniscule, it is still enough to cover the daily expenses in our lives and to return a bit left over for extraneous items, however if hours are lost then this pass on not be the case for us students. biggish byplayes for example, are often the ones who disburse paychecks to nation attending college. They offer entry-level jobs that are easy to come by, are constantly expanding, and have a high upset rate. Large corporations, such as Regal Entertainment Group, Five Guys Burgers, and Petco, are cutting employees hours down to slight than thirty a week. The Affordable Care Act (ACA) supports employers to provide wellness insurance to employees working full-time (thirty-plus hours weekly).By cutting thehours, people are no longer are entitled to wellness insurance provided by the employer. The lower class of the U.S. sparing consists of a demographic of people whose hours are being cut. A continuing decline of hours will tho result in more financial burdens on the employees. Losing el still hours could mean an individual who manages gainful for groceries as well as car insurance with the aforesaid(prenominal) paycheck may have to start choosing between the two when receiving future checks. In addition to cutting hours, many employers are limiting hiring to avoid outlay more money on health coverage. Robert Samuelson supports the idea that the ACAs costs and complexities are going to deter some compan ies from hiring, and that it would be divisive to the socio-economic classes. In twain Sides May Lose the battle over Obama interest from October 25s Register-Guard, Samuelson states that as a result of employers not being able to afford health care for all employees, hours must be cut. A business only has digest hours to under thirty a week in order to avoid paid health care. Once this cut is made, a previously full-time employee is taking home 100-200 dollars less each paycheck. This unfortunate trend will continue and even increase 15% of larger employers and 20% of bantam businesses plan to reduce employees hours or benefits according to a recent survey by the International origination of Employee Benefit Plans.Small businesses play an important role in the U.S. economy and are a strong driver of job growth and innovation. But small business are severely disadvantaged by the current U.S. health care system relative their larger counterparts. A new report by the Council of E conomic Advisors (CEA) examines the challenges faced by smaller firms under the current health care system, and the likely impacts of health care reform on small business and the workers they employ. This implicit tax disadvantages small firms in both the market for the best workers and the market for their products. For example, both Trader Joes and Home Depot have stop providing health care to part-time employees, and Forever 21 plans to cut hours and reclassify some employees as part-time. In fact, businesses all over the country, compelled by the financial discrepancy introduced by the ACA, are making similar decisions. Once the ACA goes into effect, even more businesses will be forced by the financial reality of the Act to reduce employee hours. As the wage earning potential of part-time employees falls, we can expect more extreme changes to the economy.Among these changes, businesses are now expecting employees to find and fund their own health care. This is close to impossi ble when many workers are already living below the poverty line. Irrespective of how small the premiums will be, it will still over-burden many employees. There will be times ahead when many Americans are going to have to choose between paying for their health insurance and paying a periodic bill disturbing when you consider the children and people with disabilities. Even after these meshing cuts, the White House claims that the number of part-time employees that are looking for full-time work remained the same during the month of September at 7.9 million employees. Jason Furman, chairman of the White House Council of Economic Advises said, We are not seeing any effect in the data. With this data being manipulated, it would appear that all of the employees that have been reassigned as part-time workers are okay with it. This is not the case businesses have until 2015 to cut hours and avoid paying for employee healthcare. The number of part-time workers looking for full-time work w ill steadily increase over the next twenty-four months the statistics need to be revisited when people are more aware of cuts that businesses are enforcing.People who fall below the poverty line will pay less for health care compared to those who are in the middle class. Based on individual/family income, people may be eligible for tax credit subsidies through state-ran exchanges. Based on household income, people are placed in different subsidy brackets. Even with the tax credits, people have no choice but to deal out home less money and to pay out of pocket for health insurance that they previously did not want. Many businesses have claimed they are not cutting hours, but alternatively are holding off on hiring because of costs caused by the ACA mandates. Employers who postpone hiring are still damaging to the economy. In fact, postponing hiring can do just as much damage, if not more to the economy than cutting hours. People would much rather have fewer hours at a job, than no j ob at all. In turn, this also increases the unemployment rate, thus driving the wedge between social classes even deeper. Any employer that cuts hours to avoid paying health insurance will defecate a bigger difference between the socio-economic classes. By taking away hours that an employee is able to work at a business, the employee has no choice but to take home less money in their paychecks.Earning less money reflectsdirectly on their socio-economic class, setting them farther apart from the wealthier individuals on the scale. Without resolution, cuts in full-time employment will increase the gap between socio-economic classes. It is making the poor even poorer, and separating the less wealthy from the rich even more then they already are. The economy is going to fall into a slump, people will not be able to pay car payments, nor provide adequate food for their families. What is going to happen to our country, the country that is based on the forty-hour workweek, if corporate bu siness does not cease their greedy actions? Our only option is to wait and see what happens.Works CitedConover, Chris. Who Can disown It? Obamacare Is Accelerating U.S. Towards A Part-Time Nation. Forbes. Forbes Magazine, 31 July 2013. Web. 29 Oct. 2013. economic effects of health care on small business. executive office of the president council of economic adviers (2009) 18. health reform . summary of the affordable care act (2013) 13. McVeigh, Karen. US Employers Slashing Worker Hours to Avoid Obamacare Insurance Mandate. The Guardian. The Guardian, 30 Sept. 2013. Web. 28 Oct. 2013. Myers, Lisa, and Hannah Rappleye. Obama Admin. Knew Millions Could Not Keep Their wellness Insurance. NBC News. NBC, 28 Oct 2013. Web. 29 Oct. 2013. Nicks, Denver. Trader Joes Explains Why Its Cutting Health Benefits For Part Timers. Swampland.Time.com. Time Magazine, 17 Sept. 2013. Web. 28 Oct. 2013.