Obamacare is good for the economy? That’s what one venerable Wall Street brokerage is saying.
Alec Phillips, economic researcher at Goldman Sachs, said in a note issued late last week to clients that subsidies from the Affordable Care Act boosted gross domestic product during the first quarter and are likely to do the same during the second quarter. Phillips says that he now has a more optimistic view of the second quarter’s GDP growth, with a gain of 3.9% now estimated, and 4.5% annualized growth in real personal consumption.
“While we were initially skeptical of the large estimated effect of the new subsidies on personal income, these now look more reasonable to us in light of revisions, greater enrollment than expected several months ago, and the fact that states are likely contributing to the subsidies on top of the well-known estimates of federal costs,” Phillips said.