U.S. GDP Grew 0.1% only because of Obamacare

I looked and didn't see this posted. It looks as though the U.S. economy only grew 0.1% in the first quarter of 2014. Many are blaming the weather, and I've been hearing that so long that I simply don't believe it.


Forbes article

From the article:

Berger noted that the surprisingly strong growth in consumer spending reflected growth in household and utility services spending and health care spending. The first, he wrote, likely reflects “heating costs due to the frigid winter weather east of the Rocky Mountains – which added 0.7 percentage points to real GDP growth. In all likelihood, this factor will reverse in Q2 as the weather normalizes (i.e. utilities could be a drag on growth).

If anything, it looks like the cold weather might have helped add a good bit to the economy, and those numbers will crash as the weather evens out, as the article states.

What's interesting, though, is that without the massive increase in health spending that occurred from Obamacare coming in full force, the economy actually would've shrunk.

Zero Hedge article

if it wasn't for the (government-mandated) spending surge resulting from Obamacare, which resulted in the biggest jump in Healthcare Services spending in the past quarter in history and added 1.1% to GDP

I find this very interesting. From my own perspective, I find this troubling in that I've heard that the Great Depression was actually 2 recessions with massive stagnation in between. I'm wondering if we're not seeing the repeat to history that plenty of folks have been saying that we would see for several years now.

a reply to: AnIntellectualRedneck
Yes, I caught that on talk radio today, I believe it was Rush as I was driving around today. I believe this alternate article from Zero-Hedge adds alot to your thread as it contends that these types of measures are actually band-aids used by the ruling class to attempt to perpetuate status quo.

www.zerohedge.com...
blurb: 1. Rather than add taxes to fund more social welfare--in effect, placing a Band-Aid over the tumor--let's start by removing the source of rising inequality: the Federal Reserve. I laid out in detail how the Fed's policies have enriched the top .1% at the expense of everyone else in Want to Reduce Income/Wealth Inequality? Abolish the Engine of Inequality, the Federal Reserve (January 28, 2014)

in what alternate reality do we live in where only .1% is a good thing? people should be looking at why in the hell it isnt higher....

Just my two cents....

If it took all that to get a crumby result for economic growth, something else is obviously very wrong.

This could trigger a collapse.

Government interference often does that.

I wonder what will happen to "healthcare" when the next crash comes this way?