What is the disastrous Obamacare rollout doing to the economy? Over at Financial Acceleration, they had this to say last week:
Most likely, Obamacare is going to depress retail sales during the holiday season about to commence. First, we have all those people getting hit with premium increases for their insurance. The increases will suck the cash out of consumers' wallets and stifle sales. More important, however, will be the effect of increased uncertainty. There are millions of consumers who have heard about the higher premiums that will be hitting them soon, but since they cannot get on the Obamacare exchange website to obtain actual prices for health insurance, they are most likely holding more money aside to pay for the premiums than will actually be necessary. Next, add to this the people who will not get raises or year end bonuses as a result of business uncertainty over the increased cost of healthcare brought on by Obamacare. The net effect is that there will be fewer dollars available to spend this year on holiday purchases.
I happen to think that this analysis is 100% correct. Of course, that is because I wrote it (Financial Acceleration is the stock market/economy site for which I also write. Here's a link to the site homepage) It is hard to imagine that a botched website could send the economy back into recession, but we actually may soon see just that, particularly if nothing is done to reduce both high premium costs and high uncertainty soon.
Most likely, Obamacare is going to depress retail sales during the holiday season about to commence. First, we have all those people getting hit with premium increases for their insurance. The increases will suck the cash out of consumers' wallets and stifle sales. More important, however, will be the effect of increased uncertainty. There are millions of consumers who have heard about the higher premiums that will be hitting them soon, but since they cannot get on the Obamacare exchange website to obtain actual prices for health insurance, they are most likely holding more money aside to pay for the premiums than will actually be necessary. Next, add to this the people who will not get raises or year end bonuses as a result of business uncertainty over the increased cost of healthcare brought on by Obamacare. The net effect is that there will be fewer dollars available to spend this year on holiday purchases.
I happen to think that this analysis is 100% correct. Of course, that is because I wrote it (Financial Acceleration is the stock market/economy site for which I also write. Here's a link to the site homepage) It is hard to imagine that a botched website could send the economy back into recession, but we actually may soon see just that, particularly if nothing is done to reduce both high premium costs and high uncertainty soon.
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