Obamacare Boosts Personal Income and Spending
Posted at 6:40 a.m. on March 4, 2014
The Wall Street Journal reports that a “big chunk” of January’s increase in consumer spending (0.4%) and personal income (0.3%) can be attributed to Obamacare.
“On the incomes side, the law’s expanded coverage boosted Medicaid benefits by an estimated $19.2 billion, according to Commerce’s Bureau of Economic Analysis. The ACA also offered several refundable tax credits, including health insurance premium subsidies, which added up to $14.7 billion.”
“Taken together, the Obamacare provisions are responsible for about three-quarters of January’s overall rise in Americans’ incomes.”
“On the spending side, the BEA is assuming Obamacare is responsible for a $29 billion increase in health-care services.”