Here’s what ObamaCare has done to the US economy in the last month and it’s certainly is not healthy for growth.
- There’s no benefit rise for Social Security recipients because there is no inflation, although Medicare rates and co-pays are jumping 15% for those under Affordable Care coverage.
- Coverage for working families is expected to cost 8% more as lower cost companies closed up during the year on big losses. Industry-wide losses are projected to be $2.5B.
- All the additional health-care spending by consumers added 30% to the Q3 GDP, which is a tax and should not be included in the survey.
Under these conditions, US consumers will be constrained with their spending next year to afford health coverage. Not an ideal position for an economy looking raise rates.
If the consumer is 68% of the US economy, then picking their pocket further to allow greater coverage will not help discretionary spending.
A new study shows what Americans are doing with their gas cost savings.
While more well-off consumers spent the money at restaurants and on groceries, lower middle-class consumers actually put the savings in their tank. Instead of buying $5 in gas, they were more likely to fill it up.
Since there is no interest inducement to bank the savings and therefore have the cash available to pay down debt, consumers are spending it.
The idea of improving the economy on the back of oil-price decline is really superficial, since spending is not growing, just shifting from the Mobil station, to McDonald’s.
That’s fuel for thought.