Federal Reserve Says Obamacare is Screwing Up Economy

The “Beige Book,” is  published 8x year by the federal reserve. Each Federal Reserve Bank gathers anecdotal information on current economic conditions in its District through reports from Bank and Branch directors and interviews with key business contacts, economists, market experts, and other sources.'

The latest "Beige Book" was issued on Wednesday and it warns about Obamacare doing bad things to the economy including higher costs for employees and slowing down hiring.

Instead Of Handing Out Raises Due To Savings Under ObamaCare, Employers Have Had To Pass Higher Health Care Costs To Employees

• In 2010, Obama Promised That ObamaCare Would Provide “Cost-Savings” To Employers That Could Result In Raises For Their Employees. OBAMA: “Americans who get their insurance through the workplace, cost-savings could be as much as $3,000 less per employer than if we do nothing. Now, think about that. That’s $3,000 your employer doesn’t have to pay, which means maybe she can afford to give you a raise.”

• According to today's report,  While Employers Are Passing On Higher Health Care Costs To Employees. “Contacts in Chicago indicated that higher health care premiums increased non-wage labor costs, while a growing number of employers in Cleveland reported passing through rising health care costs to their employees.”

• Merchants Noted That Increasing Health Care Premiums “Were Having A Negative Impact.” “Merchants reported a slow start to the year with sales growth declining. Many contacts noted that the drop in sales growth was partially attributed to the unusual winter weather experienced in parts of the region. Others indicated that increased health care premiums were having a negative impact.”

The Federal Reserve: “Reports Of Rising Costs Related To Health Care Were Widespread.”

• Small Builders Are Concerned That Employees May Lose Their Health Care. “There is concern among small builders that employees may lose their employer-paid insurance. One report indicated that a growing number of builders are offering employees a lump sum payment to purchase their own health insurance rather than offering it as a benefit.”

Obama Once Touted That ObamaCare Was Needed For Job CreationBut ObamaCare Is Forcing Employers To Remain Reluctant About Hiring

• In 2009, Obama Said That ObamaCare Was Necessary For Job Creation. OBAMA:“If we want to create jobs and rebuild our economy and get our Federal budget under control, then we have to address the crushing cost of health care this year, in this administration. Making investments in reform now, investments that will dramatically lower costs, won’t add to our budget deficits in the long term.”

• Today's report: Employers Cited That ObamaCare Is Causing Concern Over “General Macroeconomic Conditions.” “Contacts remain concerned about general macroeconomic conditions and uncertainty surrounding health care reform.”

• Businesses “Show Reluctance In Large-Scale Hiring Due To” ObamaCare. “Some employers continued to show reluctance in large-scale hiring due to concerns about health care reform.”

The Federal Reserve: Concerns Over ObamaCare Continue Throughout The Staffing Industry.

• “Looking forward, staffing contacts are optimistic that growth will accelerate as weather conditions improve, expecting mid-single-digit revenue growth through the next few months. Several contacts express concerns about continued uncertainty regarding how health care reform will affect the staffing industry.”