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If It Wasn't For Obamacare, Q1 GDP Would Be Negative
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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Finally....something positive about Oboogercare. /sarc
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.
so obozo care is what passes for productivity these days? what a fuckfest.
If it wasn't for poor education, we would be a healthy country that wouldn't need obamacare.
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
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.
"If It Wasn't For Obamacare, Q1 GDP Would Be Negative"
A tax becomes GDP
Uh, "broken window fallacy" anyone?
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.
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.
notbot has it right
what we need is more sick people
chronically ill
more-chronically-iller people
So a temporary increase
Layoff list
http://www.dailyjobcuts.com
A false-positive.
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
GDP = C + I + G + (Ex - Im) + Theft
Ok got it.
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.
Did Kafka and Orwell have a baby?
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.
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?
Fascism came from Socialism.
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.
"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.
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.
Couldn't be more correct.
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?
Obviously... somebody forgot to throw in the $10 billion imaginary value of the Captain America film ...
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.
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;-)
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.
long live the Kenyan (not to be confused with Keynesian) Multiplier
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.
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.
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.
Right, DF. But, what of the other 98.9%? We'd be negative but for various parts of that as well.
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.
And how does the billions in QE fit into this +1%? What a shit-show.
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......
Or the piss running down your leg as you realize your entire world is being inverted.
"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...
"Obamacare: Was the ACA a planned legislative disaster?"
Yes.
After all this time and all the evidence, you are just now axing the question?
Explains the white flag being waved from the Red Team.
You said a mouthful there, man.
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.
Neither a Republican nor Democrat be.
Join the Arsonist Party. Our platform is Arsonism. We don't have planks, just targets.
genius
See the oven installations for the death panels is a job creator.
And they chose Pine Bluff, Arkansas to build as FEMA camp.
Not a fan of FEMA; but if I were going to build a FEMA camp, I'd put it in Pine Bluff. Most of the inhabitants of that town... well, nevermind.
I can actually say I was born there....and your analysis is spot on.
I vote for Stockton, CA
Will having to dig your own spot in a mass grave be considered a shovel-ready job?
But nemployment is 6.5%... wait at minute... blue screen of death of economy.
So this proves that Communism works? lol
Fantastic. The insurance companies, who don't invest or produce or do anything to grow the economy, just took more of our money. HEALTH INSURANCE LOBBYISTS ARE WINNING!
their Numbers are LIES.. Guess what? there is NO RECOVERY!!!!
If the captain and crew are to successfully manage to escape into the few life boats before before the ship slips beneath the waves, it is very very important to maintain a sense of calm and reassurance amongst the passengers. We wouldn't want a panic, now would we? No, no, we are not sinking, the on board waterpark has simply sprung a leak, which explains your wet feet you see. All is well, go about your business knowing professionals are at the helm.
For best results lock and barricade yourself in your own cabin*1 and float on the beautiful music from the on-deck orchestra.*2
1-mind
2-sports/circuses
consumption is production /orwellian
Gross Domestic Production is truly Gross Domestic Consumption. A rather poor indicator of overall economic well-being.
Here's an article that hits the nail on the head: http://bawerk.net/?p=54
A lot of it was Utilities too...bigger energy bills....this next quarter will be food bills....
Quarter after that, the car bill, followed by the health care bill. It's like wanting to grow the economy in tornado alley because it will create jobs in the new climate change environment.
If y'all are counting on Mayflower Arkansas to be the engine of this country then we are in serious trouble.
... or Vilonia.
I have some relatives who were pretty close to that tonado's path. Felt the powder burns from that one. A mile wide - good grief.
weather related or fundemental flaws? I choose number 2
Half your military spending, problems solved....oh wait.
They don't want to bring all those trained soldiers back home when there ain't no jobs for them.
THANK YOU OBAMA!! SAVED BY DUMBO!
Do I hear aeroplanes?
no... it sounds more like a humming sound that keeps getting louder and louder...
Drones?
GDP would have been higher if 0-care hadn,t cut costs. :-)
If they hadn't changed the GDP calculation recently, it would also be negative.
Forgot about that already - haven't we?
You know it's really FUBAR when this is all they have left to generate a barely positive print.
If a nation collectively spent money on healthcare to improve the health of its workforce so it could be more productive that would be one thing.
What this nation spends on healthcare for is people that have made bad dietary and other lifestyle choices so we can extend their worthless lives.
Don't be ridiculous. Obamacare solved a problem that didn't exist. We don't have a "workforce" because the oligarchs sold the manufacturing to 'China. Wake up.
GDP isn't meaningless - but it's in the same ZIP code.
Winning the war against the middle class!
Isn't 'bad weather' one of the excuses you can use to sign up 'late' for Obamacare?
I've never before been so disapointedby a Zerohedge story. A short-term bump in GDP due to increased Government spending does not reprsent a a sustainable increase in the productive capacity of the US economy. It is just pulling more future consmption forward at the cost of more debt, and in this case, the dismantling and socializaion of 1/6th of the US economy. If such a strateg was viable why not double gov spending?
no doubt in plans... just give them time.
Dude, your sarc meter's batteries must be dead..
Did you at least pretend to read the post?
Wow!
Did Tyler just make someone his prison bitch?
Thumbs up for pointing out the obvious, but it's really not so obvious to a huge majority of our population who believe more spending equals good. And if we'd only get the government to do "_____", why, we'd be doing a lot better.
Sorry - hit it twice by accident. Double post.
Oops. Should have read the whole article. Sorry.
Reading Challenged. Get a helper to Read for you.
"Obamacare, which according to poll after poll is loathed by a majority of the US population,"- then why did it pass? why hasnt it been repealed? lol
Because both sides of the statist parties want it. They know where the money is flowing as the boomers age. Next up for .gov take over is mandatory long term care for nursing homes. There is no opposition party that represents the people.
"You see, Congressman, unless you play ball, these photos will be released."
"Hey, dumbass, this is stuff on Barney Frank."
"Not after we get through fixing it. It will belong to YOU."
"OK, where do I sign?"
Control... Naked... Merciless... Control.
point im making is that yet again, the clowns on the L and R act upon their own agendas and americans get the shaft. This is typical washington and americans HAVE NO representation. It is fucking madness.
The point you are making is FALSE, Ronney promised to repeal Obamacare; why didn't you make it your job to work for his election? Because you're lazy and irresponsible, of course. And your cover story is "it doesn't matter who gets elected"; an obvious piece of nonsense.
During his first campaign, O'bomb-a promised to repeal the "Patriot Act". His first order of business after the selection was to renew it. They're all fucking liars. BTW, I wrote in Ron Paul in '08 and '12.
Refer to the Senate vote on the NDAA; 93 out of 100 decided to label citizens terryrists if the citizens dare to be belligerent.
For comfort and ignorant bliss, our soul has been sold to the very Devil.
Well for starters the only people who can repeal are the only people who aren't subjected to it.
Funny how it worked out that way.
"Let me be clear: After enough people drop dead from my shitty fake healthcare scam, there will be moar jobs available! Forward, Comrades!"
Why is it the consensus opinion on Zero Hedge that it doesn't matter who you elect ? Does anyone actually think a Republican would have jammed this obscene monstrosity of legislation thru Congress? Is anyone crazy enough to believe this? And yet, when I try to explain to people here that they need to vote, I'm met with a shit storm of denial; "it doesn't make any difference"; well, if it doesn't make any difference, then what are you complaining about?
It's a big club...and you're not in it. RIP Carlin.
Easy. Because repeal wouldn't pass both House and Senate, and even if it does Half Black Cracker will veto it.
Nice to know Oblowhardcare got that cost curve under control.
Government, which produces nothing, is now responsible for what little growth we have.
edit > .gov runaway deficit spending is now responsible for what little growth we have.
Agree, but in theory the money they spend is taken from us, and thus would seem to be a net loss. In reality the money they are spending is created out of whole cloth (imaginary debt) and therfore cannot be considered "growth" at all.
Hey, we don't give a damn about production. Consumption is the only thing that matters and we can do that forever on fake and borrowed money, right? How many people actually produce anything now? Of those who have jobs, how many actually design, make or distribute anything versus marketing, finance, paper shuffling, human resources, multitudes of middlemen sales people selling the same shit from one level to another. Just imagine a world where everyone is doing something actually productive. Now that's a fucking Utopia my friends. Just imagine a world where people concentrate their efforts providing goods and services that people actually truly wanted and needed rather than the endless crap that we must be SOLD, convinced that we need and can't live without. How much of the price of anything is the actual material and labor costs to produce, without the marketing and overhead costs that come with it?
But we really don't want to talk about that now do we. We just want to know how to make a fast buck without having to do much of anything.
Another example of US government padding ObamaCare taxpayer revenue inflows to justify the solvency of government balance sheet. In the old days, it was called extortion. By today's standards, Federal Reserve prints to offset the difference.
Obama destroyed the economy. Now he is coming for our lives.
Impeach Washington D.C.
just give me a little notice to get outta here before, mmmmmmmk?
Bath House: "My work is almost done!"
"Where are my minions?"
Lindsay and John: "Here we are, Master!"
"Go forth and wreak havoc!"
Adjust just about any economic metric by CPI (or shadow stats inflation rates) and see what's REAL "growth" (hint: think shrinkage).
"If It Wasn't For Obamacare, Q1 GDP Would Be Negative"
"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%!"
Real GDP was negative as debt was greater than output.
Real GDP was negative as debt was greater than output.
shushie. Noboby wants to hear that.
If each person in the US licked someone else's ass and charged $20, that would also boost GDP...
I suppose they should start at the top and lead by example
They already are. Just tune in to any session of Congress on C-SPAN and you'll see an orgy of ass licking going on in both chambers, lead of course by the top ass licker over in the offal office.
Except, if Obamacare didnt exist, the economy may be on a whole different track. Meisleading headline anc conclusion.
But, Obamacare does exist, so the headline and conclustion are apropos.
There is no economy anymore. It's been gutted and is all in Asia. ACA was designed to empty the final coins out of Amerikans pockets before they drop. Another zio-sham from the orc Emmanuel family.
That's the way it looks to me.
nonsense. what whole different track? you're goofy.
US Q1 GDP of $16 trillion? WINNING
Sure. "Broken windows" can initially boost the economy. It's the long term, unintended consequences that are a bitch.
If it wasn't for the new rigging of the gdp calculation this past year it would be negative as well.
That's why it was so important to push it thru when they did, duh...
since when does stealing money from people and giving it to insurance companies, banks, and stuffing it in the pockets of politicians and lobyists become GDP???
What is produced by this? What benefit to GDP could possibly be calculated by causing an artificial massive rate and/or tax hike on half the population while the other half sucks it up or it gets stolen by corporations and the government?
This is taking from income that was already earned and taxed and then redistributed to many of those who are not working and who are already taking more from other entitlement programs which again are also suplemented by taking/stealing from those who are working.
Not to mention a massive chunk O-FUCK-YOU-CARE is also funded by borrowing money from China and other nations or printing this shit out of thin fucking air.
Am I fucking missing something here, or is Paul Fucking Krugman now ghost-writing for ZeroHedge????????
What the fuck???
You're missing something....reread the article.
Ha....you're right, I guess I did. My brain fucking blew up in .00023285 seconds as soon as I began to read the title of the article! LOL
Just gets me so pissed off and my eyes start to shoot blood!
thanks
no worries, in the fight club we all have each other's backs. when we're not fighting.
Its called Sarcastic Irony.
Sheesh!
You're overthinking this. You're a slave and what you earn and own belongs to your masters.
Comrades! Thanks to centralized control of the economy, our Queen has managed to save the GDP from negative territory!
Bullshit.
If it was not for Obamacare, companies would not be figuring out how to reduce headcount to be the system.
Obamacare rewards those who keep their businesses smaller, and resist expanding.
So your conclusion is total bullshit.
Paper shuffling up 20000000% in Q1
sooooo...if we give all our money to the insurance companies we will look even better?
I heart Amurika...let's all do this thang thats got to be done. Lets make a pledge and keep the lie alive.
btw welcome to the Greatest Depression, Year 6...FTW!!!
"Your raycistststs. evrywun now it recoverree sumner five"
Al Sharpton April 2014
We just got a letter from my wife's employer stating that our cost are going up $190 a month. That's money right out of our pocket. Plus, the deductible goes from $2000 to $4000! So, our health care costs just went up almost $4300 a year on top of what we already pay in payroll deductions, copay's, rx's and deductibles. So much for the Affordable Heath Care Act!
But....it added to precious GDP! Aren't you so excited that once again the ass hat crooks running the show got another free pass due to your further hardship? Yay!
The Tea Party said that would happen 4 years ago but they were "raycisstststs" for not supporting Obama's visions for America.
Funny how the Socialist Semite Democrat Media treats the two parties so differently, since "both parties are the same".......
Boycott the bankster run ACA. Check out Libery Health Share and other such entities. Feck zio-banking cabal!
Listen you fucker. You should be grateful the Great God Obama has deemed you worthy enough to partake in his most honorable scheme to fleece your pockets.
So, take it like a man and the next time you're getting ass raped by The Messiah and his cronies in D.C. ask if you can supply your own lube to help prevent chaffing.
Shut your mouth and get back to work.
If you complain about your situation again we'll put you up against the wall.
Need an audit? I thought so.
Of course, the "get back to work" only applies if your white.
White workers, the new slaves on the Federal tax plantation.