ilene

Obamacare replacement looks all but dead in the Senate.

If by some magic it passes the Senate, it will still have to meet House approval.

On top of it all, there are budget reconciliation procedures that have to be met. Let’s investigate the key hurdles.

Ron Johnson, a Republican senator from Wisconsin, blasted Obamacare in a New York Times Op-Ed Where the Senate Health Care Bill Fails

The primary goals of any health care reform should be to restrain (if not lower) costs while improving quality, access and innovation. This is exactly what consumer-driven, free-market competition does in other areas of our economy. Look no further than how laser eye surgery went from exotic to affordable during the years it was not covered by most insurance.

Washington believes that the solution to every problem is more money. But throwing more money at insurers won’t fix the lack of consumer-driven competition, combined with government mandates that artificially drive up the cost of care and insurance.

Obamacare imposes enormous taxes and plans to spend nearly $2 trillion over the next 10 years to decrease the number of uninsured, mostly through Medicaid but also through taxpayer-subsidized exchanges. In doing so, Obamacare has largely destroyed an already struggling individual health insurance marketplace. It does this by mandating high-cost provisions as standard for every insurance policy, then forcing a small percentage of the population to shoulder the cost.

Senate Adds Penalty

Please consider Senate adds penalty for going uninsured to healthcare bill.

Senate Republicans on Monday released a revised version of their healthcare reform bill that adds a provision requiring consumers with a break in coverage to wait six months before buying insurance.

The Senate bill would make those who had a lapse in coverage for 63 days or more wait six months before obtaining insurance. Read the bill here.

The addition of the six-month waiting period could make it more difficult to pass the legislation if the Senate parliamentarian rules the provision violates the complex budget reconciliation rules. Republican leadership was working over the weekend to make sure the provision complies with the rules and can be included.

It’s unclear whether Senate Republicans will have the votes to pass the bill, with at least five Senate Republicans on record as opposing the bill

Reuters reports GM Lowers Outlook for U.S. 2017 New Vehicle Sales, but not by enough in my estimation.

General Motors Co now expects U.S. new vehicle sales in 2017 will be in the “low 17 million” unit range, reflecting a widespread expectation that the industry is headed for a moderate downturn, a top executive said on Monday.

“The market is definitely slowing … it’s something we are going to monitor month to month,” Chief Financial Officer Chuck Stevens told analysts on a conference call. “Pricing is more challenging.”

U.S. new vehicle sales hit a record of 17.55 million units in 2016 after a boom that began in 2010. A glut of nearly-new used vehicles is expected to undermine sales this year. Major automakers have reported sales declines for the past three months.

GM had previously announced it expected 2017 new vehicle sales in the “mid-17 million” unit range. Stevens told analysts that sales could fall by 200,000 to 300,000 units this year but that the automaker had “somewhat insulated” itself from a downturn by reducing fleet sales, which lower vehicles’ residual values.

“We are going to remain disciplined from a go-to market perspective,” Stevens said.

He reiterated the company’s target to bring U.S. inventories of its vehicles down to 70 days’ supply by December from 110 days in June.

Reduced Consumer Sales, Reduced Fleet Sales, Reduced Inventories

If sales are down, then reducing inventory-to-sales ratios will require even less production. Durable goods reports do not show that happening.

Questionable Details

This morning I posted Durable Goods: Another Bad Report, Diving Into Questionable Details.

Shipments were supposedly up a total of 1.8% in April-May period. New Orders were supposedly up 1.7% in the same timeframe.

Let’s match this up with auto sales.

This morning I asked: “Are the auto manufacturers planning a big June and July? If so, why? Revisions anyone?”

Global series: Globalisation Under Pressure

Is China the potential driver of a new wave of globalisation?

Two Swedish economists foresaw the backlash against globalisation – here's how to mitigate it

Inherent inequality

These three firms own corporate America

Democratising the market?

Brexit and weak government: a drama lesson from the Greek economy

Industry and property

Cash is falling out of fashion – will it disappear forever?

The cost of cash

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