According to Business Insider, America is on the fastest pace of growth since the 3rd Quarter in 2003. That’s right and Dow Jones hit another all time high last Friday crossing the 18,000 mark. Party time. Happy days are here again. Woo-who!
So why was this past holiday season spending so pathetic? Black Friday weekend sales (which started early and extended in many cases an entire week later) were 11% less year over year than last year which was dismal and craftily blamed on the ‘polar vortex’. But UPS is happily predicting a 15% surge in post holiday business with a heavy expectation on return of Christmas gifts which won’t be good for retailers.
U.S. Oil and shale producers are still sucking wind and hoping for a turnaround that is not likely to come with the cost of their debt service much higher than their production costs (think failing junk bonds). Yes, gas is cheaper but people aren’t spending that savings on consumer goods, they are catching up on bills!
Okay, so back to the headline. Third Qrt GDP revised up from estimates. Our friends at Zero Hedge asks the question.
“So what did Americans supposedly spend so much more on compared to the previous revision released one month ago? Was it cars? Furnishings? Housing and Utilities? Recreational Goods and RVs? Or maybe nondurable goods and financial services?”
And they also give us the answer: healthcare spending!
Obamacare was going to save us money (an average of $2,500 per family) and reduce the deficit and not cost us even a dime more in healthcare expenses? Well guess what? It was just another whopper from the Obama Administration! This is spending that enriches the insurance companies, NOT healthcare. Another big chunk goes to paperwork and the govt collecting data on ‘We the People’. Economic growth? Hardly.
Aloha, Mikie ~just a blogger (fightin’ like a girl)
~Psst, tired of politics? Check out Travel in the Categories drop down menu (right side panel) for my blogs posted from interesting locations during my travel adventures.