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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Occams_Chainsaw's picture

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

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.

john39's picture

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

knukles's picture


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

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.

Ignatius's picture

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

A tax becomes GDP

notbot's picture

Uh, "broken window fallacy" anyone?

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.

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.

SafelyGraze's picture

notbot has it right

what we need is more sick people

chronically ill

more-chronically-iller people


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)


Richard Chesler's picture

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

Ok got it.

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.

I am more equal than others's picture




Did Kafka and Orwell have a baby?

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.

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?

NidStyles's picture

Fascism came from Socialism. 

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.

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.

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.

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?

Rainman's picture

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

ArkansasAngie's picture



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.

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.


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.

VD's picture

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

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.

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.

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.

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.

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.  

dontgoforit's picture

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

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......

dontgoforit's picture

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

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%."


Xibalba's picture

Explains the white flag being waved from the Red Team. 

NoDebt's picture

You said a mouthful there, man.

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.

ArkansasAngie's picture

Neither a Republican nor Democrat be.


Kobe Beef's picture

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

1stepcloser's picture

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