This just in — Obamacare has made you richer:
Glenn Beck once said Obamacare would mean “the end of prosperity in America forever.” But so far, it turns out President Obama’s 2010 health law is actually putting money in Americans’ wallets.
To be exact, President Obama’s 2010 health law was responsible for about three-quarters of a surprising January rise in U.S. consumer spending and American income growth, according to calculations by the Wall Street Journal.
Exactly how does government spending put more money in your wallets? How does an increase in the cost of health insurance make you better off?
So what exactly did the Obamacare rollout do to cause such a rise? For one, it expanded the Medicaid program, a critical and highly controversial aspect of the law, by adding 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, according to the BEA.
Together the two changes have freed up many Americans to spend money that would have gone towards health care premiums on goods and services instead.
Waitaminute. People who didn’t have health insurance signed up for Obamacare and now have health insurance and tax credits? What a country!!!!!
And all this has caused GDP to increase, so therefore we are all better off.
Yeah, right. This is the problem with Keynesian economics and the Expenditure Method of calculating GDP. Any increase in spending results in a higher level of GDP/national income, which is interpreted to mean that citizens are better off. Except when they aren’t. I covered the fraud that is Keynesian economics in the links below.
And let’s not forget that Keynes didn’t understand economics anyway.
Geez, that coffee mug I used to have was right. I am surrounded by idiots…