Only in this fucked up country we call the USA can the president boast about soaring GDP numbers as proof of his brilliance as a leader, when the single biggest boost to GDP is Americans having to spend outrageous amounts of money on their healthcare. Meanwhile, we pretend inflation is only 1% to further boost the fake number. But this is nothing compared to the BLS bullshit, where 40% of the working age population isn’t working, but the unemployment rate is 4%. Carry on.
One month ago, when the BEA released its first estimate of the hurricane-impacted economy during the third quarter (which came in at a stronger than expected 3.0%) we were surprised to report that according to the Department of Commerce, in the third quarter the biggest driver of marginal spending was car sales (technically Motor Vehicles and Parts), which increased by $15.6 billion to $463.5 billion. Which, as we said at the time and considering recent US and global automakers data, was paradoxical in light of the ongoing decline in overall sales in the second half of 2017, and it was far too early to expect the post-hurricane spending spree. It was also surprising because as Americans splurged on cars, they pulled back on gasoline purchases, which was the single biggest detractor to spending, subtracting a marginal $3.5 billion in PCE, to $283.6 billion.
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In any case, we concluded by saying that “we now await for the revisions to this initial estimate over the coming two months, because something tells us that the auto spending spree will be thoroughly revised well lower.”
One month later, when the BEA released its second Q3 GDP estimate, it appears we were right: the contribution from motor vehicles was indeed revised lower, but not nearly as dramatically as we expected, only from a marginal increase of $15.6 million to $13.5 million.
And yet, many other line items did see a downward revision, which means that something had to increase sharply to compensate for the downward revisions among other spending components. Sure enough, something did: the old faithful “plug” which has saved the US economy every quarter for the past 4 years: Healthcare, or as it is better known, Obamacare, because with Trump failing to repeal Obama’s signature health law, it means that Healthcare will merrily “contribute to GDP” for years to come, by being the single biggest marginal spending item for the foreseeable future.
Finally, for a comparison of how dramatically the contribution of “Healthcare” was revised higher, here is a chart showing side by side the change in spending among all key line items. One can almost hear the orders “from above” to make GDP 3% or higher at any cost when looking at this chart.
If it werent for the healthcare racket we would have no GDP growth. At the center of the healthcare racket is a multitrillion dollar death mill involving the ADA (American Diabetes Association) and countless other criminal organizations. What we’re witnessing is a real holocaust, it is no different than loading people into cattle cars and shipping them off to concentration camps to be gassed. The only difference is that they are killed more slowly in order to maximize the corporate profit that can be extracted from their intentionally poisoned carcasses. It is truly disgusting how many of these slaughter mills are operating throughout the economy, and perhaps the only reason they arent shut down is because they are the only source of growth.
That’s a rather extreme view, Iconoclast, though I won’t argue with it.
Except to say that the medical establishment does harbor a few righteous doctors, nurses, and orderlies and don’t deserve to be thrown out the window with the others.
One thing we can be happy with, we happy few, is that the ‘tards are paying up for their insurance while feeling all teary that life is difficult and that the homeless have to get out of Malibu after the city council demanded a church there in that misty land stop feeding them. The horror, the horror.
Thank for for playin ‘murica’. Would you like some more tokens?
That is criminal! Healthcare, education, Wall Street, government, and the MIC have not surprisingly been the only sectors in the last 8 years that hasd made any progress in personal income gains.
The healthcare and education gains are also the reason for the illusion of ANY recovery which primarily benefited women.
If you can’t beat them, boycott them!
The United Puppets of Global Bankers, Israel, and Saudi Arabia – Andrea Iravani
The Israeli Deal Has Only Given America Body Bags, Bloodshed, National Debt, and International Disgrace – Andrea Iravani
In the third quarter my biggest expenditure was extinguishing debt. In the fourth quarter (so far) it has been new carpet, new furniture and MOAR firearms!
The best post/point of the day (with an introductory emphasis from Admin), only gets 6 comments?? Very sad. Even the readers of TBP are being dumbed-down. I guess that, eventually, we’ll all just mow Llpoh’s lawn for minimum-wage and accept our fate.