Wednesday, March 5, 2014
Obamacare Is Putting Money Into Our Pockets And Into America's Economy
One of the Republicans mantra's on Obamacare has been that "it will destroy the economy"!!! As it turns out, not so much.
So far The Affordable Care Act passed in 2010 is, believe it or not, putting money in Americans' wallets!
According to calculations by the Wall Street Journal President Obama's health law was responsible for about three-quarters of a surprising January rise in U.S. consumer spending and American income growth.
This comes out to a 0.4 percent rise in consumer spending ($45.2 billion) and a 0.3 percent rise in personal incomes (up $43.9 billion), according to new figures released by the Bureau of Economic Analysis. The growth came in spite of the Republican pushed expiration of unemployment benefits for the long-term unemployed and horrible winter weather. Then add that to the fact that in January both consumer spending and personal incomes had their worst month in years after the battle Republicans put up in Congress over the "fiscal cliff" ended causing payroll taxes to shoot up across the board.
Extraordinary economic growth if you measure in the Republican roadblocks thrown in the ACA's path.
While these numbers may be considered insignificant by some on the right it is a 180 degree turnaround from what they were predicting.
So how exactly did Obamacare cause such a surprise of riches? For one, it expanded the Medicaid program, a critical and highly controversial aspect of the law, which added up to a $19 billion in benefits in January. On top of that, health care enrollees additionally received another near $15 billion in the form of tax credits as a result of the rollout.
Together the two changes put more money into the hands of Americans instead of spending it on health care premiums. The more money put into the hands of Americans mean they will spend it on goods and services. The more goods and services needed will eventually translate into more jobs for American workers. It's simple Keynesian economics.
So in closing...
According to the Tax Policy Center that tax hike resulted in an $700 per worker tax increase on average...
Thank you "economy killing" Obamacare!