If It Wasn't For Obamacare, Q1 GDP Would Be Negative

Tyler Durden's picture




 

Here is a shocker: for all the damnation Obamacare, which according to poll after poll is loathed by a majority of the US population, has gotten if it wasn't for the (government-mandated) spending surge resulting from Obamacare, which resulted in the biggest jump in Healthcare Services spending in the past quarter in history and added 1.1% to GDP ...

... real Q1 GDP (in chained 2009 dollars), which rose only $4.3 billion sequentially to $15,947 billion, would have been a negative 1.0%!

 

It's curious how the weather impacted (or rather is used as an excuse to explain) everything but government-mandated healthcare spending in the first quarter.

And of course, for all those who correctly point out that mandatory spending on healthcare, also known as malinvestment, took away from spending on every other discretionary item possible, well... you are right.

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Wed, 04/30/2014 - 09:14 | 4711519 Occams_Chainsaw
Occams_Chainsaw's picture

Finally....something positive about Oboogercare.  /sarc

Wed, 04/30/2014 - 09:19 | 4711538 DeadFred
DeadFred's picture

Or maybe if we hadn't had to spend our limited resource on extra healthcare costs we could of used it on something else? Still near zero growth but we could have had more widgets to play with.

Wed, 04/30/2014 - 09:20 | 4711556 john39
john39's picture

so obozo care is what passes for productivity these days? what a fuckfest.

Wed, 04/30/2014 - 09:26 | 4711583 knukles
knukles's picture

Aaaaarrragh

Just think of all that money not being spent on Real Health Care, but bureaucratic Bull-Shit

      I'm going to a meeting ... this is the crazy train

Intangibles... Don't forget the new Imaginary Intangibles

Wed, 04/30/2014 - 09:27 | 4711597 LetThemEatRand
LetThemEatRand's picture

Obamacare has always been about lining the pockets of insurance companies by forcing people to buy private insurance.   Pure fascism disguised as socialism.  Here's proof.   People are right to hate it, but most hate it for the wrong reasons.

Wed, 04/30/2014 - 09:40 | 4711647 Ignatius
Ignatius's picture

"If It Wasn't For Obamacare, Q1 GDP Would Be Negative"

A tax becomes GDP

Wed, 04/30/2014 - 09:45 | 4711685 notbot
notbot's picture

Uh, "broken window fallacy" anyone?

Wed, 04/30/2014 - 09:50 | 4711716 SWRichmond
SWRichmond's picture

Deficit spending has always been about making GDP growth positive.  Deficit numbers are chosen based on this, not on any perceived social need.

An examination of deficit spending trends versus recessions and GDP will show this.  Look at various debt charts on FREDGRAPH.  It is blatantly obvious.

Wed, 04/30/2014 - 09:51 | 4711723 Mark Carney
Mark Carney's picture

A sign of things to come.

 

Gold price shock will come soon enough when the bigs start taking hits.........LIKE NOW!

Barrick Gold Corp (ABX.TO:Quote) reported a dramatic drop in first-quarter earnings on Wednesday 

 

First-quarter profit at Barrick Gold shrank 90 per cent, underscoring the tough environment for world’s largest gold producer following the end of merger talkswith its closest rival.

Wed, 04/30/2014 - 09:59 | 4711773 SafelyGraze
SafelyGraze's picture

notbot has it right

what we need is more sick people

chronically ill

more-chronically-iller people

 

Wed, 04/30/2014 - 10:06 | 4711805 Shocker
Shocker's picture

So a temporary increase

Layoff list
http://www.dailyjobcuts.com

Wed, 04/30/2014 - 10:51 | 4711992 dontgoforit
dontgoforit's picture

A false-positive.

Wed, 04/30/2014 - 10:59 | 4712033 pods
pods's picture

So are we now going to count items in people's online carts for GDP?
Damn, just fixed the economy.  Bollinger time!

(or in my case, maybe some cheap tequila)

pods 

Wed, 04/30/2014 - 11:04 | 4712078 Richard Chesler
Richard Chesler's picture

GDP = C + I + G + (Ex - Im) + Theft


Ok got it.


Wed, 04/30/2014 - 09:59 | 4711774 Manthong
Manthong's picture

I don’t care about government spending anymore because these idiots are going to spend us into oblivion anyway..  it’s the shackle’s and chains that come with crap like Obamacare that I care about.

Wed, 04/30/2014 - 09:46 | 4711690 I am more equal...
I am more equal than others's picture

 

 

 

Did Kafka and Orwell have a baby?

Wed, 04/30/2014 - 11:05 | 4712085 WordSmith2013
Wed, 04/30/2014 - 10:18 | 4711849 Kayman
Kayman's picture

Gross Deceitful Product

You take a handful of change out of one pocket, spill a bunch on the ground, put the rest back into the other pocket, and GDP increases. Insanity and we live it every day.

Wed, 04/30/2014 - 10:55 | 4712012 oldmanofthesee
oldmanofthesee's picture

So, the blackmailed Chief Justice Roberts, rewites Obozocare to be able to declare it a tax. All tax legislation must originate in the House. This abomination originated in the Senate. How is the blackmailed Chief Justice Roberts goingto  handle this sweet conundrum, now before the SCOTUS?

Wed, 04/30/2014 - 09:41 | 4711660 NidStyles
NidStyles's picture

Fascism came from Socialism. 

Wed, 04/30/2014 - 10:19 | 4711847 LetThemEatRand
LetThemEatRand's picture

Don't forget the other "isms" in play, including crony capitalism, militarism, and authoritarianism.  They all had a seat at the table.   We've never had true socialism in America (ownership of the means of production by the people).   We could debate until the end of time on this point, but as many posters here have observed recently, most human beings want a leader and that's why societies always fall into the Lord/Serf model.  All of the isms are just attempts to put names on the tools in the tool sheds of the oligarchs.

Wed, 04/30/2014 - 11:09 | 4712105 Harbanger
Harbanger's picture

"We've never had true socialism in America (ownership of the means of production by the people)."
We've been a socialist centrally planned economy since the creation of the Fed by your progressive Hero, Pres. Wilson. Yes. So you want to abolish private property by giving ownership to the state(ownership of the means of production , land, by the people) Every diehard leftist like yourself still believes that Communism was never truly implemented or given a chance to work, but it would if it were done right.

Wed, 04/30/2014 - 14:28 | 4713071 malek
malek's picture

How clear-sighted you seem to be on reasons for fascism (most human beings want a leader)

while willfully ignoring the even stronger "most humans want something for nothing" which drives us towards socialism.

Wed, 04/30/2014 - 10:42 | 4711958 SAT 800
SAT 800's picture

Couldn't be more correct.

Wed, 04/30/2014 - 13:21 | 4712744 AndrewJacksonsGhost
AndrewJacksonsGhost's picture

It is a combination of fascism and socialism. Do you think all the subsidies are not a form of socialism? How bout those that have to pay nothing and everyone else has to pay for them?

Wed, 04/30/2014 - 09:31 | 4711602 Rainman
Rainman's picture

Obviously... somebody forgot to throw in the $10 billion imaginary value of the Captain America film ...

Wed, 04/30/2014 - 09:29 | 4711573 ArkansasAngie
ArkansasAngie's picture

Malinvestment!!!!!

WTF

The malinvestments need to be divested (unfunded).  And yes it will take a reset.  And yes ... it's going to hurt.  But ... by golly ... it is necessary.

This crap can't be allowed to continue.

Talking about national interests.

Wed, 04/30/2014 - 10:48 | 4711974 Miffed Microbio...
Miffed Microbiologist's picture

This spending will have terrible ripple effects. Our lab is 500k over budget this year primarily due to supply costs. My box of sterile plastic pipets went from $50/box to $150/box last year. This will cripple small hospitals unable to purchase in high volumes. With reduced reimbursements, I am unable to see how this can be solved by simple cost cutting measures. Massive structural change must come about...perhaps the plan all along. Layoffs are in the future.

Miffed;-)

Wed, 04/30/2014 - 10:02 | 4711788 SAT 800
SAT 800's picture

Indeed. And don't forget the wholesale Amnesty for Illegal Aliens that's on the agenda to make sure there are no wage rises. A very pretty picture indeed.

Wed, 04/30/2014 - 10:28 | 4711889 VD
VD's picture

long live the Kenyan (not to be confused with Keynesian) Multiplier

Wed, 04/30/2014 - 09:22 | 4711563 NoDebt
NoDebt's picture

Not to pick nits, but it's not even as good as -1%.  Factor in the perennially understated "GDP Deflator" and we just printed -3% EASY.

Now, since the 1st quarter for every year in recent memory has been a disaster I want all of your to go out there, open a margin account and BUY FREAKING STAWKS. As many as you can get your hands on, doesn't matter which ones.  Right now.  Or you'll miss the huge run-up.

Wed, 04/30/2014 - 09:47 | 4711692 ArkansasAngie
ArkansasAngie's picture

Can they get away with untapering the untaper?

One more time ... lack of liquidity is NOT the same as insolvency.  If you are solvent and need liquidity, somebody will loan you the money.  If you are insolvent only your buds at the Fed will lend you the money.  Of course you do have to be annointed TBTF or play golf with the Obumster.

Wed, 04/30/2014 - 10:31 | 4711903 Drifter
Drifter's picture

If GDP excluded financial sector spending (stocks, bonds, etc), just included true economic activity, it would be negative 5% - 8% every year since 2008.

Only thing growing is financial sector thanks to $50 billion pumped into it every month since 2008.

And federal govt of course, thanks to $50 billion pumped into it every month since 2008.

Financial sector and federal govt. Only things growing these days. Every other sector of the economy is shrinking.

This can't go on forever, and it's not intended to go on forever, just till financial sector and federal govt asset-strip rest of the country.

Which has been the plan all along.

Wed, 04/30/2014 - 09:24 | 4711580 Payable on Death
Payable on Death's picture

Right, DF. But, what of the other 98.9%? We'd be negative but for various parts of that as well.

Wed, 04/30/2014 - 09:26 | 4711595 NoDebt
NoDebt's picture

Nah, nah, nah.  Doesn't work like that.  RoboCare is a government spend.  It's paid for with money poofed out of thin air.  There is no trade-off against other spending.  

Wed, 04/30/2014 - 09:55 | 4711747 dontgoforit
dontgoforit's picture

And how does the billions in QE fit into this +1%?  What a shit-show.

Wed, 04/30/2014 - 09:29 | 4711600 Stoploss
Stoploss's picture

Everyone does realize this has to double next Q to maintain.

Then it gets interesting.  You know, where that warm fuzzy feeling ends up being the hair standing up on the back of your neck......

Wed, 04/30/2014 - 09:56 | 4711755 dontgoforit
dontgoforit's picture

Or the piss running down your leg as you realize your entire world is being inverted.

Wed, 04/30/2014 - 09:53 | 4711736 Max Cynical
Max Cynical's picture

"The cost of federal regulations is now bigger than the entire economies of all but nine countries in the world."

"The "regulation tax" imposed on the economy now tops $1.86 trillion."

 "On a per-household basis, federal regulatory costs average $14,974"

"When regulatory costs are combined with federal spending, Washington's share of the economy rises to an eye-popping 31%."

http://news.investors.com/042914-698787-regulatory-economy-booms-under-p...


Wed, 04/30/2014 - 09:43 | 4711673 moneybots
Wed, 04/30/2014 - 10:09 | 4711816 lakecity55
lakecity55's picture

After all this time and all the evidence, you are just now axing the question?

Wed, 04/30/2014 - 09:14 | 4711521 Xibalba
Xibalba's picture

Explains the white flag being waved from the Red Team. 

Wed, 04/30/2014 - 09:19 | 4711547 NoDebt
NoDebt's picture

You said a mouthful there, man.

Wed, 04/30/2014 - 09:22 | 4711567 john39
john39's picture

that and the fact that most idiot politicians take their orders from the same place... big money and behind the scenes handlers...   current system no longer even pretends to be legitimate.  more like a freak show.

Wed, 04/30/2014 - 09:49 | 4711710 ArkansasAngie
ArkansasAngie's picture

Neither a Republican nor Democrat be.

 

Wed, 04/30/2014 - 15:00 | 4713273 Kobe Beef
Kobe Beef's picture

Join the Arsonist Party. Our platform is Arsonism. We don't have planks, just targets.

Wed, 04/30/2014 - 09:14 | 4711523 Occident Mortal
Occident Mortal's picture

genius

Wed, 04/30/2014 - 09:16 | 4711534 1stepcloser
1stepcloser's picture

See the oven installations for the death panels is a job creator.

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