Last week, I observed that while consumers are spending less of their budgets on gasoline, they are spending more on health care. The latest data through January show that the percentage of current-dollar consumption for gasoline plunged from last year’s high of 3.2% to 2.1% in January. Consumers saved $133 billion (saar) on gasoline over this period.
On the other hand, the percentage of their outlays for health care goods and services rose from last year’s low of 20.0% during March to 20.6% during January. I received lots of inquiries about this topic. Most readers want to know if this is attributable to Obamacare, which seems to have raised health insurance premiums, deductibles, and copays. I think so, but I don’t have the data to corroborate this conjecture.
Health care consumption includes spending paid for by both insurance and government programs, as well as out-of-pocket costs. Presumably and anecdotally, the latter have risen sharply. However, that wouldn’t necessarily bloat overall spending, though more out-of-pocket outlays would depress spending on other goods and services.
Today's Morning Briefing: Purchasing Power. (1) American consumers on dopamine. (2) Investors shopping for shoppers. (3) Few bargains left among Consumer Discretionary stocks. (4) Real wages and salaries and inflation-adjusted retail sales at new highs. (5) Rent inflation is a problem, but only for renters. (6) Did Obamacare boost health care spending at the expense of sales of other goods and services? (7) Out-of-pocket costs hard to measure. (8) Texans aren’t as depressed as they should be. (More for subscribers.)
On the other hand, the percentage of their outlays for health care goods and services rose from last year’s low of 20.0% during March to 20.6% during January. I received lots of inquiries about this topic. Most readers want to know if this is attributable to Obamacare, which seems to have raised health insurance premiums, deductibles, and copays. I think so, but I don’t have the data to corroborate this conjecture.
Health care consumption includes spending paid for by both insurance and government programs, as well as out-of-pocket costs. Presumably and anecdotally, the latter have risen sharply. However, that wouldn’t necessarily bloat overall spending, though more out-of-pocket outlays would depress spending on other goods and services.
Today's Morning Briefing: Purchasing Power. (1) American consumers on dopamine. (2) Investors shopping for shoppers. (3) Few bargains left among Consumer Discretionary stocks. (4) Real wages and salaries and inflation-adjusted retail sales at new highs. (5) Rent inflation is a problem, but only for renters. (6) Did Obamacare boost health care spending at the expense of sales of other goods and services? (7) Out-of-pocket costs hard to measure. (8) Texans aren’t as depressed as they should be. (More for subscribers.)
No comments:
Post a Comment