Monday, March 28, 2016

Wonder why consumers have no money from lower oil prices? Thank Obamacare!

If you spend any time watching the business channels on cable you find that the litany of analysts they parade across the screen cite the false narrative that consumers (American people) will be the catalyst for economic recovery because they will have more money to spend thanks to lower oil prices that have occurred over the past 18 months.  But despite this fallacy that didn’t come to pass, and was validated yesterday in a 1.4% Q4 GDP revision, there is another reason why Americans have not been able to participate wholeheartedly in the economy, and that reason is Obamacare.
The increase in healthcare spending and the Obamacare tax was by far the number one spending item by consumers in 2015, and nearly double the second place item which was new vehicle purchases.
2015 consumer spending

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