And The Biggest Contributor To U.S. Growth in 2015 Was...

Zero Hedge ^ | 01/29/2016 | Tyler Durden

[SeekAndFind]

By now, not even CNBC's cheerleading permabulls can deny that the US is in a manufacturing recession: in fact, it is so bad that even the staunchest defenders of Keynesian dogma admit what we said in late 2014, namely that crashing oil is bad for the economy.

And yet, the "services" part of the US economy continues to hum right along, leading to such surprising outcomes as a stronger than expected print in Personal Consumption Expenditures. How can this be?

Simple: one look at the chart below should explain not only how the "services" half of the US economy continues to grow, but just which tax, because that is how the Supreme Court defined Obamacare, is responsible for healthcare "spending" amounting to a quarter of the growth in US personal consumption expenditures, almost 100% higher than the second highest spending category which was... Recreational goods and vehicles?

 

And that, ladies and gentlemen, is how you convert a tax into a source of economic progress.

[MarchonDC09122009]

Talk about a picture that’s worth a thousand words...
Thanks for this excellent post.
It needs to be rubbed in the nose of Every dem, liberal and individual that let Obola occupy the Whitehouse.

RE: “US Spending - Obolacare dominates spending growth”

[LibertarianLiz]

Amazing, but, not totally surprising. So, is Obamacare what is keeping the economy from growing? I think we have the answer in this chart.

[caver]

Spending on healthcare is considered growth?

[DonaldC]

“Spending on healthcare is considered growth?”

That sector is probably not complaining.

[Grams A]

We live south of Houston and the entire 288 corridor is full of new hospitals and medical treatment centers. Seems like every square inch of available property is now seeing building of 24 hour medical centers and doctor’s offices. Not sure who they think is going to pay for everything. Houston’s medical area also continues to grow. It is truly a Good Grief situation.

[BitWielder1]

“Spending on healthcare is considered growth?”
That sector is probably not complaining.

They are complaining, because most of that spending goes to bureaucracy and not to treating patients, which is what they signed up to do.

But this is a snapshot if how politicians think in Washington, they genuinely believe that more money to the government is good for the country.
Never mind that it was taken from those who worked to earn it.

[caver]

True

[midlander]

“... how politicians think in Washington, they genuinely believe that more money to the government is good for the country.
Never mind that it was taken from those who worked to earn it.”

____________________________________________________________

It works over and over, the workers are raped of their production ... again and again. And the government wastes much of it. MO

[Ouderkirk]

The bottom line....The economy has gone into recession if you were to take out the Obamacare aspect.

So the data is all a lie....the economy has fallen every year since Onambla has been in office.

[headstamp 2]

Then there is the cratering of the energy sector.

[arthurus]

Crashing oil is not bad for the economy. It is bad for those who produce the oil. Crashing oil is because the economy is bad. It was inevitable that the oil price would decline as the technology ratcheted production of oil up over a whole staircase of steps. That is how the free market works. That it happened as the already sluggish economy started to slip and fall just steepened the decline. Arabia and perhaps Russia will eventually reduce production. Tthe price will begin to rise. Technology will still be galloping ahead and oil fields will open up again, this time at cheaper production rates than before. The possible ceiling for oil if the Saudis limit production and Iran does notlive up to expectations is maybe $60 which is where the fracking is generally profitable again but then that must decline unless America takes off most of the business regulations and taxes believably by also abolishing the Agencies. If that happens then oil may just rise on up as demand for it skyrockets but the prosperity will make that a minor consideration.