And The Biggest Contributor To U.S. Growth in 2015 Was...

Tyler Durden's picture

By now, not even CNBC's cheerleading permabulls can deny that the US is in a manufacturing recession: in fact, it is so bad that even the staunchest defenders of Keynesian dogma admit what we said in late 2014, namely that crashing oil is bad for the economy.

And yet, the "services" part of the US economy continues to hum right along, leading to such surprising outcomes as a stronger than expected print in Personal Consumption Expenditures. How can this be?

Simple: one look at the chart below should explain not only how the "services" half of the US economy continues to grow, but just which tax, because that is how the Supreme Court defined Obamacare, is responsible for healthcare "spending" amounting to a quarter of the growth in US personal consumption expenditures, almost 100% higher than the second highest spending category which was... Recreational goods and vehicles?


And that, ladies and gentlemen, is how you convert a tax into a source of economic progress.

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LawsofPhysics's picture

Yes, "Sickcare" solves at least two problems (overpopulation and revenues for a major sector of the eCONomy)...

hedge accordingly.

Looney's picture

All CNBC's cheerleading permabulls are Fedophiles!  ;-)


duo's picture

Liesman said this morning that money spent on Obamacare goes to pay someone, so it's still counts for GDP.  Yay!

Kayman's picture

You steal a dollar out of someone's pocket and give that dollar to your pal and the economy grows? No wonder politicians are hated.

EscapeKey's picture

if you and your friend instead sell the same $1 cup of lemonade between you 1 billion times, GDP just grew by that billion.

BurningFuld's picture

This is what Canada needs. A grossly inefficient medical system to stimulate our economy. 

Evil Peanut's picture

In other news - World Health Organization and Media pushing Zika virus story to coverup TDAP Vaccine disaster in South America

Manthong's picture

 Crud.. does this mean that 60% of my income that went to the dollar store was not invested properly?

SumTing Wong's picture

Medical care is costing us a lot more, so this is not entirely surprising. We are 357 days away from getting rid of Obama. But what is Fuhrer Hillary going to be like?

Took Red Pill's picture

Meet the new boss, same as the old boss

NoDebt's picture

Mandated spending is best spending.  You can make your growth whatever you want it to be.

MillionDollarBonus_'s picture

This is the biggest investment in our healthcare system from any president in history, and you right-wing morons are upset about it? This investment is going to get people the medical care they need to be fully productive and really take our economy to the next level. Many down-trodden groups in America such as minorities are uninsured and unable to fully contribute to the economy because of this. The ACA will ensure that these people get the healthcare they need so that they can be more successful in the marketplace. This ACA isn't there simply to insure the uninsured - it's also part of Obama's long term strategy to make our economy stronger and more robust.

new game's picture

biggest contributor-drugs, and in related news:

A Barrett .50 caliber M82-series semiautomatic anti-materiel rifle, transferred to criminal elements through the BATFE’s Operation Fast & Furious, found its way into the hands of notorious Sinaloa drug cartel lead Joaquín “El Chapo” Guzmán, report news outlets during the week of SHOT Show. The large-caliber rifle, erroneously described as being designed to “shoot down helicopters”, is nonetheless an extremely capable weapon which can defeat a large number of lightly armored vehicles and virtually all personal body armor. Fox News reports:

A .50-caliber rifle found at Joaquin “El Chapo” Guzman’s hideout in Mexico was funneled through the gun-smuggling investigation known as Fast and Furious, sources confirmed Tuesday to Fox News.

A .50-caliber is a massive rifle that can stop a car or, as it was intended, take down a helicopter.

After the raid on Jan. 8 in the city of Los Mochis that killed five of his men and wounded one Mexican marine, officials found a number of weapons inside the house where Guzman was staying, including the rifle, officials said.

When agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives checked serial numbers of the eight weapons found in his possession, they found one of the two .50-caliber weapons traced back to the ATF program, sources said.

Federal officials told Fox News they are not sure how many of the weapons seized from Guzman’s house actually originated in the U.S. and where they were purchased, but are investigating.

Out of the roughly 2,000 weapons sold through Fast and Furious, 34 were .50-caliber rifles that can take down a helicopter, according to officials.

Federal law enforcement sources told Fox News that ‘El Chapo’ would put his guardsmen on hilltops to be on guard for Mexican police helicopters that would fly through valleys conducting raids. The sole purpose of the guardsmen would be to shoot down those helicopters, sources said.

The Fast and Furious operation involved federal agents allowing criminals to buy guns with the intention of tracking them.

Instead, agents from the ATF lost track of 1,400 of the 2,000 guns involved in the sting operation.

The operation allowed criminals to buy guns in Phoenix-area shops with the intention of tracking them once they made their way into Mexico.

While the idea of .50 caliber anti-materiel rifles being used by guardsmen to shoot down snooping helicopters is not terribly far-fetched, as Hognose points out in this article, the Barretts don’t seem to have actually seen much use. Instead, the Mexican drug lords probably had more banal motives for acquiring the rifles: They just wanted them, and they typically get what they want.

A screencap of some of the weapons discovered during the raid. Image source:

sorry, image didn't come thru...

Mr. Cynic's picture


I wouldn't replyl to your drivel but I down voted you so I felt obligated.

You are obviously as mis-guided as it gets.  There is so much wrong with your post that finding someplace to start is like looking for the beginning of a circle.

The ACA has nothing (let me repeat that NOTHING) to do with affordable health care. It does nothing (let me repeat that, NOTHING) to reduce health care costs, it simply spreads the burden by taxing (penalizing) those who choose to pay for their own shit.

I'll leave out all the other stuff I'd really like to say for brevity's sake.

Utah_Get_Me_2's picture

You must be new here and aren't yet familiar with MDB's schtick..

Okienomics's picture

You'd think a Cynic wouldn't be so gullible.  GO MDB!

Au_Ag_CuPbCu's picture

The problem is that "MDB's schtick" isn't funny any more.  I long for the days when MDB gave me a good laugh.

Utah_Get_Me_2's picture

I agree.. MDB is getting a little lazy.. you used to have to decide whether he was being serious or not.. now it's very obvious.. no one that stupid would bother reading ZH, let alone create a profile. 

Son of Loki's picture

Obamacare disaster is simply moar proof of the failure in DC leadership and destruction of America's middle class.

ceilidh_trail's picture

I wonder what size trolling motor  MDB uses?

Utah_Get_Me_2's picture

17 weeks.. I was correct. In the future do not respond to MDB's posts.. his brand of satire is well documented on ZH.. you are just spinning your wheels for no reason. Save your energy for actual dipshits like Eirik Magnus Larsson and Bangin7gramrocks.. 

Okienomics's picture

Come on Utah, the outraged reactions are half the fun!

cheech_wizard's picture

Outraged over Obamacare - absolutely. There is a special place in hell for the people that foisted this streaming pile of fetid excrement upon their fellow citizens. They are torn apart limb by limb and stiched back together again on a daily basis with rusty needles and barbed wire for all eternity. They contract every known disease and plague ever known. They shit out their mouths and talk out their anal cavities. I could go on and on.

Outraged over MDB - his schtick is getting old.

hongdo's picture

You were entertaining until it got serious.

Syrin's picture

Hey MDB, how much do they pay you gov't disinformation f'heads these days?   Do you defer the cash payment in lieu of anal protein deposits?

CoastalCowboy's picture

Yes, MDB you are so right.

Take my uninsured friend who was helped by the ACA, for example. 

He bragged about how he was paying $20 a month for a silver plan.  Fast forward until the next tax year, and he made just a smidgen too much for the subsidy so he gets hit with a $7500 dollar clawback.  To even add more to his humor factor, he goes for some super checkup where the sickcare profit center charges him $8000 to tell him he was perfectly healthy.  He then learns his insurance was cancelled two months prior. 

He owes $15,500 and makes jack shit for income.  The ACA is AWESOME!!!! He loves his Obamacare!

Save_America1st's picture

@Evil Peanut

thanks for those links.  From the vids I got links to the original site here in case anyone wants to read everything posted there about this Zika virus hoax.  Sounds like this has actually been caused by a mandatory vaccine called TDAP that the Brazillian government mandated at the beginning of 2015 and now all these babies are being born with shrunken heads.



both are the same.

Then scroll through and look for the updates posts about TDAP virus in Mexico and Brazil.

ceilidh_trail's picture

Tetanus, Diptheria and Pertussis vaccine. These have been around forever up here.

zero_wedge's picture

So much for the 2016 olympic games.

strangeglove's picture

CNBC just had a $59 lease on a VW. My how we have fallen. There avg viewer can't afford the Lexus anymore. Meanwhile in my world eggs dropped another .20/doz to $1.79.

all-priced-in's picture

"if you and your friend instead sell the same $1 cup of lemonade between you 1 billion times, GDP just grew by that billion."



But make sure you get all the business licenses and required permits to open that lemonade stand or you will be in big trouble.


I am sure the FDA will help you with the food safety requirements - the USDA may need to check over your source of lemons - OSHA will need its pound of flesh to make sure no gets lemon juice squirted in their eye - EEOC will need to weigh in - making sure you didn't discriminate against any protected classes of people (are you diverse enough?) - and the EPA will demand a plan from you on your recycling of the cup and lemon peels -  you also need a business ID number from the IRS.


Fuck it - not worth the trouble to start a business.





Jack's Raging Bile Duct's picture

They'll make up all of that regulatory capture for when they collateralize that cup of lemonade against loans acquired from the FED's discount window. After rehypothecating the lemonade, they can use it as a security for backing derivatives on a third party's property of which they have no legal interest. If their gambit fails then they can mimic Chicken Little to get Congress to buy them a new cup of lemonade as well as reimbursing their losses on the loans.

Cause we have a free market economy.

Ayn-UK's picture

You forgot the multiplier effect; you steal a dollar out of someone's pocket and give it to your pal, it becomes three dollars.

TheAntiProgressive's picture

If you deposit it, it then becomes 9.  Cool huh?

Sam Clemons's picture

Broken window fallacy FTW

Okienomics's picture

This fallacy has legs, Sam.  The template is established.  This is our collective future as long as power is flowing through the capital...  


This is just the beginning.

Ward cleaver's picture

3 cheers for judge roberts who was intimidated by MSM instead of sticking to principles. He truly represents the lack of character of top officials in this shitshow

FreedomGuy's picture

I attribute his vote to "naked photos". His reasoning was so lame and opposite his usual rational process that you have to believe he was blackmailed. I am pretty sure that is also how Obamacare got passed. The DNC had enough dirt on enough members to make them vote for the tax bill, budget bill, or whatever it's official illegal title was.

BTW, after SCOTUS redfined it as a tax it made the bill illegal. All tax and funding bills must start in the House, not the Senate as this one did. This whole thing is legal swiss cheese.

Winston Churchill's picture

Rumor has it the adoption of his kids was"irregular".Love thos euphenisms for illegal.

That would be multiple Federal felonies.

A very powerffull axe to hang over someone.

True Blue's picture

Maybe Steven Breyer was a warning to the rest; vote 'right' or we send men armed with machetes to your multi-million dollar vacation palace in the Bahamas.

How does a 'public servant' even get a beachfront estate in the Bahamas anyway?

Corrupt, corrupt, corrupt.

In any case, I agree, the whole thing is illegal in so many ways. Just on its very face; if you gave power of attorney to someone to 'represent' you, and they signed and obligated you to a contract that it can be proven they did not even read; such a person could be held liable, probably sued, and if an attorney, disbarred.

They say 'ignorance of the law is no excuse' -yet they don't even know what 'laws' they are voting for. Tyranny of design, meet tyranny of ignorance.

JRobby's picture

Euthanize Liesman

This is in reply to duo, comment 7113297

Irrelevant Jump Ins intolerable today

Kirk2NCC1701's picture

duo (1/29 09:48 | 7113297): "Liesman said this morning that money spent on Obamacare goes to pay someone, so it's still counts for GDP.  Yay!"

Comrade duo, when it gets Redistributed, it's called GDR (Gross Domestic Redistribution).  Yes, the Redistribution is quite gross.  Even obscene, some would say.

FYI... Note also the coincidence that GDR was also the name of the old communist East Germany: German Democratic Republic (they called it DDR - Deutsche Demokratische Republik).  Except that it was neither 'democratic', nor a 'republic'.

JRobby's picture

So? Can we still euthanize Liesman?


Peak Finance's picture

LOLZ I am BULLISH on "Recreational goods and vehicles"

It's what half the population will be living in after the next wipeout. 

Burr's 2nd Shot's picture

Does that category include guns?  

Secret Weapon's picture

I am wondering what percent of the growth in recreational goods was due to gun sales? 


Burr - you beat me to it.  Cheers!