The American Human: Is Obamacare Crashing Our Economy (in a Good Way)?

Wednesday, June 25, 2014

Is Obamacare Crashing Our Economy (in a Good Way)?

(Updated below)

Someone at Business Insider seems to think so:

The revision [downward in GDP] largely boils down to one thing: healthcare spending.

"Two thirds of the revision is in consumption, cut to +1.0% from +3.1%," said Pantheon Macroeconomics Ian Shepherdson. "Almost of all this huge hit is in the healthcare services component, cut to -1.4% from +9.1%."

According to the BEA, healthcare spending went from adding 1.01 percentage points to subtracting 0.16 from the headline GDP growth number.

"So much for the BEA's initial view that the start of Obamacare triggered a surge in spending on healthcare," said Shepherdon. "The press release offers no detail on what triggered this massive revision."

More people insured for less. Imagine that.

Update. TPM weighs in with a more nuanced report. Still good, but measured.

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About the American Human

The American Human is written by Calvin Ross, a retired teacher who at various points in life has been a musician, woodworker, restaurateur, narrator, English teacher in Japan, novelist, technology journalist, and private tutor to Japanese children here in the U.S.

Happily residing in the wine country of Sonoma County north of San Francisco, Calvin has lived in the Philippines, the Netherlands, and the aforementioned Japan, as well as in Chicago, Colorado, Georgia, and many different towns in California, including, of all places, the Mojave Desert.

Calvin, you may note quickly, is a liberal progressive who doesn't think being called a socialist is all that bad, especially since he sort of would like living in Denmark if it weren't so cold. He blogs because he can.