Skip to comments.High GDP Numbers for Q3? We Can Thank Obamacare and Forced Consumer Spending
Posted on 12/25/2014 7:39:51 AM PST by Son House
The revision which helped create last quarters incredible growth was the forced mandatory costs incurred by the American people from the Affordable Care Act (Obamacare), which accounted for two-thirds of the entire boost in consumer spending. Consumer spending, as opposed to the recording of revenues from actual production and industry which used to be the primary components of economic growth in America, on average accounts for more than 70% of the entire Gross Domestic Product. And if you took out payments made by the American people towards mandatory government healthcare, GDP may have been in negative growth for last quarter, just as an Obamacare revision changed the first quarter's number from a negative to plus 4%.
Using a myriad of messages, such as telling citizens they will be stuck paying massive fines for not registering for nationalized healthcare, many Americans used large portions of their discretionary spending and savings to pay for services and insurance that on average is much higher than what they paid for prior to Obamacare's passage in Congress.
To prop up artificially created GDP numbers, government agencies are now using just about anything to assure that the public and the markets do not realize the true state of the economy.
And in the U.S., the BEA is doing the same, only instead of counting and reporting the actual components of America's Gross Domestic Product, they are simply waiting until all numbers are in and then revising those numbers higher using new additions that were not previously counted, such as the doubling down of insurance sales which have been forced unto the public at a time when the real economy is screaming a deep recession.
(Excerpt) Read more at examiner.com ...
Graph can be seen at link.
To me, being FORCED to purchase something (at the expense of other legitimate discretionary items) is not evidence of growth. It takes work and money already received (and part of what one would think is GDP) and forces a choice not wanted. Seems like double dipping fudging on the numbers to me.
Just like unemployment.
Libs think that there are more jobs now than when Bush was President; fact is, there are over 4 million fewer jobs in America today than when Obama won his first election in 2008.
Inflation is another big lie. They have taken everything that inflates out of the inflation index. Maybe now they'll put energy back in since oil prices have collapsed.
Go do some food shopping and you'll see inflation. Smaller packages, generic packages, higher prices...
The Affordable Care Extortion Act
Add to that the Gen X who can’t make a house payment, can’t buy a car, even can’t pay for a technical college education until they pay their forced dues to an unaffordable Health Care law. Thank the Democratic Party!
We have been Grubbered again. I heard the spending news this week and thought, wow! I don’t understand it, but great!
Now, I know the truth.
“To me, being FORCED to purchase something”
An old Soviet saying
They pretend to pay me and I pretend to work
Glad you added that, as the Democrat hack media and their contributors will be glowing over the fraud numbers.
On top of that, the Fed has pumped trillions of newly minted dollars into the economy with all its quantitative easing. In my opinion, all this new money creates a potential inflation threat if it ever gets into circulation. I think inflation is higher than what the government has been reporting, and that would mute some of these 'wonderful' GDP numbers.
“An old Soviet saying: They pretend to pay me and I pretend to work”
I’ve always loved that, how true it was (is). The best humor is based on real truth.
To your point, to which we can now add:
“And I pretend to buy something, and they pretend to count it as economic activity”.
The entire economy is propped up via quantitative easing and artificial interest rates.
Incredible growth + Incredible debt = Subzero Gain
Add the government revised how they do GDP Calculations, and you just knew something isn’t right with that number.
Not to mention ‘job growth’. The full-time jobs are lost about 1 full-time job loss = 2 part-time job gain, in every recent monthly job report.
Yep, someone is going to pay back the government's line of credit (debt).
quantitative easing = the measure of which the Fed is propping up the economic picture...
As long as the world’s elite and their bankers accept the manna from the Fed, it does not matter, those who do the actual work be damned of course.
And we can thank the DoPS (the Department of Phony Statistics) and the Goebbels-like media who are stupid enough to think that we believe this crap.
An old Soviet saying: They pretend to pay me and I pretend to work
That old reality based saying, stemming from the great Russian sense of humor, is one I’ve always loved.
When it comes to American government “workers”, it should be modified to say “They ACTUALLY pay me and I pretend to work and MY PRETEND WORK IS ADDED TO THE GROSS NATIONAL PRODUCT”. Ain’t life grand for the government and its cronies!