Data on consumer spending show that spending on health insurance surged 42 percent from 2007 to 2013, according to analysis by the Wall Street Journal. The rise reflects the increasing cost of health insurance and the Affordable Care Act’s requirement that everyone buy extensive health insurance.
The American middle class has absorbed a steep increase in the cost of health care and other necessities as incomes have stagnated over the past half decade, a squeeze that has forced families to cut back.
Another feature shown by the data is the movement away from home ownership and associated costs. Families are more likely to rent than in 2007, so mortgage spending is down and rent spending is up. Some of the other categories where spending fell – appliances and furniture – are complements to home-owning.
Spending increases are not the same as cost increases. Home internet and mobile phones are the fastest growing expenditure categories because new services are available, not because of rising costs on old services. It’s a good thing when increased spending comes from more people choosing to buy better services.
As any Black Friday shopper can tell you, consumers are happy when they get more goods for lower unit costs. Congress can augment buying power by repealing policies that raise costs, such as trade barriers, the fuel ethanol mandate, and of course Obamacare. Reducing the cost of food, gasoline and health insurance would give American consumers more choice and extra disposable income. (DS WSJ)
Naturally, the Leftist (say at the Daily Kos) when on a rant about this study and railed against an “economy based on consumerism” and how pay inequity and low pay were the real problem.
The Agenda is the Agenda and don’t let the truth hit you in the face because you can’t see it.
The recent decrease in gasoline was by the Saudi’s to drive the fracking in the US out of business. You also notice the fossil fuel hating Left has been silent about this economic gain for the consumer.
Nope, it the greediness of Corporate America the Left will preach.
And Then the Feds are getting more tax money than ever before…
Party like its 1929, S&P hits 49th closing high.
We are From The Government and we are here to help you..:)