– Thanks Obamacare: This Is What Americans Spent The Most Money On In Q4 (ZeroHedge, Jan 30, 2015):
If readers need clarification on what was the primary source of spending-based “growth” for the US economy in the fourth quarter, the same source that bumped up final Q3 GDP from 3.9% to 5.0%, please ping us: we will gladly explain the chart below. And just in case it is still unclear what Americans are spending their “gas sasvings” on, here it is one more time.
And just in case the fading impact of Obamacare is not already priced in, here is what Q4 inventories did: rising by $113.1 billion in Q4, this was the second highest quarterly increase in the 21st century, second only to September 2010. It’s all GDP-crushing liquidations from here.
So big in fact that even the most upbeat permabull has no choice but to admit the truth:
A $113B inventory build in Q42014 means we could see less production and hence #GDP in the current quarter.
— Joseph A. LaVorgna (@Lavorgnanomics) January 30, 2015
Health care has been the biggest cost for years, I would need to see the statistics from the last ten years…….Obama made it a give away to greedy gut corporations once again….but I don’t know if it raised the costs that dramatically.
Health care has been through the roof for years, going up 35-40% a year. At least the bastards cannot refuse care on previous conditions………..I am one dying of spinal cancer because I could get no coverage at any price for my back. Had I some insurance, I could have afforded the scans and the other research tools that would have explained why my back kept breaking, and my clothes stopped fitting regardless I have had the same weight for 40 years…..my pant legs got too long, and I had to have them tailored. By the time they were able to provide the condition in English, they were afraid to speak the diagnosis.
I got the data, I researched the condition, saw it is rare, there is no cure, the only people who even knew about it were at the Mayo Clinic. For me, it is too late……..I am dying. I went to my doctor, told him my condition, what would happen……he sat and wept while nodding in agreement while I told him. What kind of system do we have where doctors are not allowed to speak the truth? Where people have to do their own research…..good thing I come from a medical family and know the drill.
Now, all medical data has to be online. So, when I see the one doctor I will tolerate, they sit in front of a computer screen and type while I speak. As a result, I say very little because I don’t trust where it could go. I am sure this is adding to the expense that we don’t need, and it completely removes any connection between doctor and patient. It is the most dehumanizing thing I have ever seen, but the doctors have no choice. It sucks. I hate it. Save the preexisting condition BS that was stopped, it has gotten more bureaucratic and worse.
Now, the IRS does the collections for insurance companies….the taxpayer even foots that cost. What a scam, and I read over 6 million people will owe fines to the IRS because they cannot afford the insurance…….sickening. Note that the cost of insurance is #3 on that list, and Medicare for all would have fixed it without extra costs.
I am fortunate in that I have Medicare. I am too young, but my illness is such they chose to give it to me early as I won’t be here to collect it by the age of 67. Sweet of them……….
Housing is #2, and millions of Americans are homeless, and nothing is done to help them. Billions for greedy guts, nothing in the way of jobs so people can have decent homes once again.
When I was growing up, homelessness was rare. Now, it is everywhere.
Food and beverages are in the red because the price of food has skyrocketed, and more Americans eat at home, or pack a lunch. $4.50 for a latte is no longer easily spent, and the food outlets are feeling the pinch. When people cannot afford to eat out, they spend their money on groceries for the home (assuming they have one). I don’t eat out much because I can eat a very few items……….and my illness makes eating out a problem for me. It is too easy to get sick, so I eat very little.
Over 20% of Americans go hungry each month, and hunger will generate rage like no other. The idiots in charge better realize people will rise up if they are hungry, and not all the mercenary soldiers or militarized police can stop it. They can revolt in a very simple way…………..stop spending. Buy nothing…..it is already happening.
Gas prices have been high for so long, Americans have changed their habits. They shop in planned cycles, and a short term cheap gas situation won’t change their habits. They no longer trust things are getting better, the truth is that it is getting worse.
The Wall Street fantasy market can no longer ignore the real economy. It was down in triple digits four days out of five this week. It went up yesterday because Visa split four to one…..but that is dilution, not profit.
Maybe the real economy is finally affecting the false one.
We can hope.