We now have 7 full years of economic data since President Obama signed the Affordable Care Act (ACA or “Obamacare”). So, as Republicans in Washington continue their relentless assault on the ACA, it’s a good time to take stock of how America actually fared in the Obamacare Economy.
Before turning to the facts, a reminder of the narrative that the GOP has been pushing about the ACA for so long:
“It will bankrupt our nation, and it will ruin our economy! … This health care law … is already destroying jobs in our country.” — John Boehner, 2011
“We now know that Obamacare has been one of the single biggest drags on job creation since early 2010.” — Mitch McConnell, 2012
“[T]his is going to blow a hole through the deficit even more than we had already thought.” — Paul Ryan, 2012
“Obamacare is directly responsible for destroying jobs and lowering wages for workers” — Senate Republican Policy Committee, 2014
“It is the biggest job-killer in this country.” — Ted Cruz, 2016
“Obamacare is devastating businesses." — Donald Trump, 2016
“Obamacare … this disastrous policy that's been killing jobs." — Mike Pence, 2016
Let’s tackle these false “job-killing, wage-reducing, deficit-busting” myths one by one:
False Myth #1: Obamacare is a job killer.
Fact Check: American businesses have created more than 16 million jobs since President Obama signed the Affordable Care Act into law.
False Myth #2: Obamacare is forcing people into lower-paid, part-time jobs.
Fact Check: Middle-class households have seen real (inflation-adjusted) income rise by more than $3,300 since Obamacare became law; the vast majority of jobs created in the Obamacare economy have been full time; and the number of people stuck in part-time instead of full-time jobs has dropped by 3.7 million.
False Myth #3: The dramatic reduction in the official unemployment rate (U3) under Obamacare (from 9.9 percent to 4.5 percent) doesn’t matter because “real” unemployment (U6) is higher.
Fact Check: The U6 rate, which includes both unemployed and underemployed workers, has also fallen dramatically, from 17.1 percent the month Obamacare passed down to 8.9 percent today.
False Myth #4: Obamacare will blow up the deficit.
Fact Check: The annual budget deficit has dropped by two-thirds since Obamacare became law.
False Myth #5: Obamacare is causing premiums to skyrocket for businesses and workers.
Fact Check: Premium inflation has actually slowed for employment-based coverage, which is how the vast majority of American families get their coverage.
False Myth #6: Obamacare is holding back GDP.
Fact Check: GDP growth has strengthened in the Obamacare economy.
Bottom Line: After the middle class endured a lost economic decade under President Bush’s trickle-down policies, the sound investments made in the Obamacare Economy delivered more jobs, rising incomes, and expanded coverage over the past seven years.
The Republican assault on Obamacare is a threat to that progress. It is a threat to American workers and to the entire American economy. That’s the critical message in the battle over Reckless Republican Repeal.
Of course, just as they did in the Bush years, Republicans are insisting that their trickle-down, deregulatory policies will be better for job growth than the Democratic investments they want to gut. A reminder of how well that turned out last time:
For too long, Democrats have shied away from aggressively engaging the core economic argument over Obamacare, letting the GOP's "job killing," "wage reducing," and "deficit busting" myths gain far too much currency.
With 7 years of economic evidence now available to show that every Republican prediction about the Obamacare Economy was dead wrong, Democrats should not be shy about using the debate over Reckless Republican Repeal to tell the true story of America’s economic comeback under the Affordable Care Act.
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Note: It is possible that the Obamacare Economy will continue beyond these first 7 years, as the Trump GOP still hasn’t passed any major legislation, and President Trump could come to realize that it’s in his best interests to strengthen the ACA rather than sabotage it. But whatever the future holds, the legacy of the Obamacare Economy is clear: More Jobs, Rising Incomes, Lower Deficits