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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6 Comments
Anonymous
Anonymous
January 29, 2016 10:13 am

Think how bad it would be without Obamacare to drive the largest segment of the economy to new highs.

TJF
TJF
January 29, 2016 10:34 am

So, about $85B in increased taxes. Divide that by about 315M people. That comes out to an increase of about $270 for every person annually or $22/month/person. If only that were true. How many people are paying nothing?

So, I guess the take away for TPTB is to just raise taxes if the economy needs a boost. It makes me sad that the people of this country, as a whole, are such total and complete idiots.

robert h siddell jr
robert h siddell jr
January 29, 2016 11:00 am

The real goal of TPTB is to steal Americans blind using the Useful Idiots votes.

IndenturedServant
IndenturedServant
January 29, 2016 6:40 pm

It’s sort of ironic that the chart also depicts the lack of preparedness most ‘Muricans have for the coming collapse. Sad!