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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