To the surprise of many economists, Thursday's Supreme Court decision on the Affordable Care Act doesn’t further confuse what’s going to happen next. That clarity might help businesses finally make some personnel and other moves, giving the economy a much-needed kick and President Obama one more thing to brag about, economists say.
“There is a perspective on the economy which is argued that laws of regulation have imposed a lot of uncertainty on businesses,” said Gerry Wedig, an economist with the University of Rochester’s Simon School of Business. “Now, there is a lot more certainty about what the rules are going to be. That might allow firms to move forward with their plans.”
That includes hiring healthcare personnel to meet the increase in demand sure to come with increased preventive care, said Dan Seiver, an economist at San Diego State University. And jobs are the one thing Obama needs right now, given the economy’s lackluster performance -- something that was underscored by Thursday morning’s report that the nation’s first-quarter GDP growth was slow, as expected. The decision will also increase demand for schools providing healthcare worker training, he said.
“There’s going to be a huge increase in demand for all kinds of medical services,” Seiver said. “That’s a good thing and a bad thing. A lot more people are going to get preventive care, but there will be costs.”