Earlier this month both the New York and Philadelphia Federal Reserves published the results of a survey they conducted asking business owners how the Affordable Care Act has changed how they operate.
Bear in mind, healthcare reform was sold on the basis that it would be good for the American people and good for the US economy.
Their economic reasoning was that the amount of money currently being spent on medical care in the US would be reduced. And that spending would shift to more productive areas of the economy.
But then, earlier this year, it turned out that the exact opposite happened.
Healthcare spending as a proportion of GDP had actually gone UP rather than down after the introduction of Obamacare.
So then the government flipped the message around. Suddenly the healthcare spending increase wasn’t a sign of failure, it was a sign of success!
That extra 0.1% of GDP that came from increased government spending in the last quarter of 2013 was all that kept the US from slumping back in to recession. Thus, Obamacare had saved the economy!
Now the Fed is chiming in with its own data showing that, in general, Obamacare has had a negative impact on the labor market.
This post was published at Sovereign Man on September 30, 2014.