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View Diary: Anybody else read that CBO report? (9 comments)

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  •  The CBO puts a major disclaimer on that. (2+ / 0-)
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    Liberal Protestant, cyclinger

    They basically refuse in Appendix C to break out what percentage of that is due to Labor demand destruction, while acknowledging it is a factor.

    •  They were (1+ / 0-)
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      cyclinger

      pretty non-committal on demand for labor, but your "disclaimer" indicated that they didn't see a compelling argument one way or the other. The did point out, however, that

      The net increase in demand for goods and services will in turn boost demand for labor over the next few years, CBO estimates. Those effects on labor demand tend to be especially strong under conditions such as those now prevailing in the United States, where output is so far below its maximum sustainable level that the Federal Reserve has kept short-term interest rates near zero for several years and probably would not adjust those rates offset the effects of changes in federal spending and taxes. Over time, however, those effects are expected to dissipate as overall economic output moves back toward its maximum sustainable level.
      I read that to say that they think the short-term effect of ACA on labor demand will be positive, and the long-term effect will be neutral.  

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