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The Harsh Winter Actually Boosted The US Economy In Q1, As Did Obamacare
Even as the rest of the US economy was a major disaster with the clear exception of inventory accumulation, which at some point will have to be sold unleashing the next deflationary wave and forcing the Fed's helicopter to finally take off, another question is what happened to the US consumer: after all, in the US one can use Amazon in the comfort of one's snowed in home, and while the crash in oil turned out to be unambiguously bad (just as we warned) for CapEx, some 70% of the US economy was and is in the hands of the relentless spending habits of Joe Sixpack.
Which is why a quick look at what said Joe spent in the harsh winter reveals something stunning: no, not that the most consumed "service" was again healthcare - mandatory spending on Obamacare will be with us for a long, long time, "boosting" the US economy by this mandatory spending item.
No, what surprised even us is that far from subtracting from GDP growth, the harsh winter actually boosted consumption, in the form of Utility (i.e., heating) spending, which made up the second largest increase in personal consumption in the first quarter. Because, to every economist's cries of horror, freezing weather while perhaps reducing discretionary spending actually boosts spending on such mundane, if very expensive, tasks as utilities which, to the same economists, also translates into growth.
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Demo'ing Coal Generators and crappy health insurance. Winning!
Most healthcare is merely paper shuffling and insurance costs.
Not a huge wealth creator there. More like wealth crater if you happen to need their services.
pods
Since Obamacare is a tax, it does not contribute to GDP. I pretty sure demand for healthcare services is down as deductables and premiums have risen. I see lots of layoffs at hospitals and clinics.
i wouldn't call it a boost.... more like extortion
You got that right, pods....a form of "anti-equity" that destroys real wealth on contact.
Or if you happen to hold a job in their protected monopoly.
Retail Spending down down down....yet 'consumption' somehow up....Here, open wide for moar shit to consume, muppets!
So if they mandate food and beverage spending we will be ok. Economics is easy!
Miffed
Exactly right. You nailed it.
Now coming from you, THAT is a real compliment. (And very bad pun...)
They have been mandating food and beverages like nazis!
Where have u been?
Michele Obama's school food program is about to get an overhaul. All kids will be required to drink a case of coke and 40 happy meals at lunch every day. Uncle Warren needs a portfolio boost. If successful, later we can force them to drink oil and eat Ipads.
will we be required to purchase case of frozen white castle burgers?... that will also help the toilet paper industry or at hand soap industry for those that are comfortable with that
"Because, to every economist's cries of horror, freezing weather while perhaps reducing discretionary spending actually boosts spending on such mundane, if very expensive, tasks as utilities which, to the same economists, also translates into growth."
That's exactly right. It's also why the government is forcing madatory spending on us with things like Obamacare. That way they can mandate more spending any time they want.
See? And you didn't think central planning was a good thing. We should all thank our betters for saving us from ourselves. A .308 caliber "thank you" would be about right.
How nice how Obama care doesn't pay for health care but for insurance and outrageous catastrophic deductibles! Ironic it is called healthcare as it isn't like ur allowed to go to the doctor one needs to even get the attention one needs!
Don't forget that it was Romneycare before Obamacare.
Fundamentally, no differences between the two.
That's why they spend billions to make you believe there is a difference come election day.
She cannae take any more, Captain. She’s gonna blow!
MSM buying the weather story for "paltry GDP". So.............
So, Weather or not, Obamacare, APPL, GS, JPM, the MIC, Microsoft, Monsanto are the cornerstones of the 'Market'?
USSA! USSA! USSA!
In other news:
War is peace.
Freedom is slavery.
Ignorance is strength.
I paid my "shared responsibility payment" this year and saved 6000 in insurance payments+a 2000 deductible. I figure I'm 7600 to the good. Using surplus fiat to buy gold and silver instead of air.
Winning.
You lost me at "Obamacare boosts economy"
Is that like
"Smoking crack helps with weight loss"
"Meth makes it easier to remove stubborn teeth"
"Prison rape improves anal flexibility"?
Ride the Snake!
http://www.dailymotion.com/video/xczm9g_ride-the-snake_fun
"...the most consumed "service" was again healthcare..."
No freaking kidding. My BCBS health insurance policy premium will be going up 12.45% starting July 1, 2015. I have seen (on average) a double-digit percentage increase in the premium each of the last 3 years, and I have no known conditions and I haven't filed a single damn claim since I purchased the policy 5+ years ago.
ObamacareFUBAR.
Only 12.45%? Mine was 101%
Did you get your plan via the exchange? My existing plan was deemed acceptable when Obamacare was first enacted, and I didn't have to use the exchange to get a new plan. My plan's premiums go up and up and up without me ever even using it.
This was via my employer. Basically a bendover and take it... Deemed to be competive in the future, we have to fuck you now..
I've been saying it for at least 2 years. Just wait till 0zer0care is fully implemented in 1Q2015, and watch the economy implode. Hell, it's even worse because of 0zer0's stupid EPA regulations which are driving up utility costs. So it really is all weather related... the Perfect Storm courtesy of 0zer0.
0zer0care + Moronics = 0bamanomics
Maybe we should be rooting for a major earthquake or a catastropic hurricane. They usually spur on construction spending thereafter.
Two real areas of economic growth:
a) Firearms,
b) Ammunition
Get yours before they're all gone.
Mmmm.... not really. More like price growth from increased demand with no supply growth thanks to TPTB.
http://en.wikipedia.org/wiki/Operation_Choke_Point
no need to overdo it...just move to the red areas
http://www.washingtonpost.com/blogs/wonkblog/wp/2015/04/28/the-most-raci...
true
not to mention all that accumulated inventory wll reduce domestic manufacturing and imports from China in future quarters.
Wait till they discover some of the components that comprise the GDP actually decrease production.
I recently examined a Financial Report of the US Government (frusg).
It was like reading a fairy tale. What, for example, is a “present value” dollar… a “primary deficit (surplus, gap)? The frusg makes use of the Gross Domestic Product (GDP); which supposedly measures gross production of the nation for a year; and is comprised of ten components. At least two of those components represent a decrease of production, and are added to the level of production. Government accountants make financial projections over the next 75 years, as if the government didn't have to pay interest on its debt; ‘Are they realistic… or pure nonsense?’
The frusg gives us a real example of the Queen, who believes at least six impossible things before breakfast.
As we make sense of the Report, we come up against the question, ‘Are all these confusions part of some kind of training exercise for a planned major shock to the financial system… on a global scale?’
How can an index, comprised of a soup of contradictions and wishful thinking, be employed by men to measure anything? And, why has it taken 85 years for someone to discover that it is little more than a collection of economic fairy tales? (Please read more)
Actually, Obamacare is not about health care.
It would be more accurate to title it, “death care.”
All government “healthcares” provide subsidies for “prescription drugs” and related services.
All prescription drugs contain substances that are harmful or poisonous to the human system. This is why they all contain a list of negative side effects; with this list purveyors of these poisons avoid legal liability. Before a company can have its concoction examined by the FDA, it must provide a so-called form LD-50; Lethal Dosage 50%. This form details what dosage will kill 50% of those who take it.
I have a better alternative: a health regimen that has REDUCED – not SLOWED – my biological age more than 50 years. My proof of this is rather irrefutable: see my video and webpage – each leads to the other.
If I explained what I can do with mere printed words, I don’t think anyone would believe me; but a video is much more convincing.