Essay --

Econ 157 Health Economics Aram Cherkezyan Analytical Policy Write-Up Assignment 1 Affordable Health Care (ACA) In last few decades Health care sector many times helped to drag the economy from recession. However in last two years health care spending grew more slowly than the economy, and most probably it will repeat this year. Ongoing debates during last week continued about the pros and cons of Affordable Care Act and whether it will help the economy or not. Affordable Health Care plays a huge and a very important role in current US economy and particularly on employment, that is why I decided to focus my writing on Affected Health care and its consequences on US labor economy. The opponents of Affordable Care Act (ACA) claim that the Act will significantly worsen an economic condition in the country. However, in this write-up I’m going to focus on the advantages of Affordable Health Care and write only positive aspects of it. Congressional Budget Office (CBO) presents six ways that the ACA is helping the labor market, laying the foundation for future economic growth, and improving families’ financial security and well-being. I am going to provide an explanation for the most important points. First of all, preventing the growth of health care costs will decrease unemployment in near future. Currently United States has an unprecedented slowdown in the growth of healthcare (the lowest growth in the history during last three years), thus it will reduce the insurance premium costs for employers. Furthermore, employers will be able to hire more workers as soon as health care premium costs going to be smaller. Slower growth in health care costs reduces the growth of the health insurance premiums paid by employers, which has i... ...ty. Fifth and last point is the reduction in the long-term deficit and the foundation for future growth. ACA will reduce the deficit by about $10o billion and the ACA’s deficit-reducing effects will increase over time. CBO guesses that over the next two decades, the ACA will reduce the deficit by an average of 0.5 percent of GDP each year, thus reducing approximately $1.6 between 2022 and 2032. The decrease in long-term deficit will increase national savings, reducing foreign borrowing thus increasing national income. These factors will improve standards of living in the future. Relaying on these five major points I believe that Affordable Healthcare Act may shave a positive effect on US economy, improve health condition of low-income families, increase demand for goods and services, reduce foreign borrowing and decrease an unemployment rate in the United States. Essay -- Econ 157 Health Economics Aram Cherkezyan Analytical Policy Write-Up Assignment 1 Affordable Health Care (ACA) In last few decades Health care sector many times helped to drag the economy from recession. However in last two years health care spending grew more slowly than the economy, and most probably it will repeat this year. Ongoing debates during last week continued about the pros and cons of Affordable Care Act and whether it will help the economy or not. Affordable Health Care plays a huge and a very important role in current US economy and particularly on employment, that is why I decided to focus my writing on Affected Health care and its consequences on US labor economy. The opponents of Affordable Care Act (ACA) claim that the Act will significantly worsen an economic condition in the country. However, in this write-up I’m going to focus on the advantages of Affordable Health Care and write only positive aspects of it. Congressional Budget Office (CBO) presents six ways that the ACA is helping the labor market, laying the foundation for future economic growth, and improving families’ financial security and well-being. I am going to provide an explanation for the most important points. First of all, preventing the growth of health care costs will decrease unemployment in near future. Currently United States has an unprecedented slowdown in the growth of healthcare (the lowest growth in the history during last three years), thus it will reduce the insurance premium costs for employers. Furthermore, employers will be able to hire more workers as soon as health care premium costs going to be smaller. Slower growth in health care costs reduces the growth of the health insurance premiums paid by employers, which has i... ...ty. Fifth and last point is the reduction in the long-term deficit and the foundation for future growth. ACA will reduce the deficit by about $10o billion and the ACA’s deficit-reducing effects will increase over time. CBO guesses that over the next two decades, the ACA will reduce the deficit by an average of 0.5 percent of GDP each year, thus reducing approximately $1.6 between 2022 and 2032. The decrease in long-term deficit will increase national savings, reducing foreign borrowing thus increasing national income. These factors will improve standards of living in the future. Relaying on these five major points I believe that Affordable Healthcare Act may shave a positive effect on US economy, improve health condition of low-income families, increase demand for goods and services, reduce foreign borrowing and decrease an unemployment rate in the United States.