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Healthcare Spending and First Quarter GDP

Well, it happens that there’s a country just north of us that had about as bad a winter as the U.S. That’s Canada, where first quarter GDP grew 2.2%. This growth occurred despite a contraction in gross investment (-1.6%) and a huge drawdown in business inventories of -$495 million (Canadian dollars, of course). Somehow, even faced with harsh winter conditions, those intrepid Canadian consumers managed to increase spending by 2.6%. Perhaps Amazon.com and Google shopping are easier to use north of the border. Continue Reading →

“Freeing Workers From the Insurance Trap”

The Times editorial board has now officially become a propaganda wing of the Obama administration. Updated Feb. 6 to include a video clip showing CBO Director Dr. Douglas Elmendorf replying to questions from Rep. Paul Ryan (R-Wisconsin). Dr. Elmendorf confirms that the reduction in labor supply directly leads to the CBO forecast of lower economic growth. Continue Reading →

Where the Vanishing Students Are Going

My guess is that these students have entered the informal sector (formerly known as the underground economy). They get paid in cash (actual currency), do not file income taxes and (important) remain invisible to Obamacare. Since many of the Obamacare taxes and restrictions will be implemented by the Internal Revenue Service, not filing a tax return is an excellent way to avoid the whole train wreck. Continue Reading →