McCain Saves ACA as Economy Continues to Grow
July 28, 2017
John McCain (R-Ariz.) cast the deciding vote against the Senate Obamacare repeal, which would not have been possible without Senators Susan Collins (R-Maine) and Lisa Murkowski (R-Alaska). The U.S. economy has entered its 9th year of expansion, the third longest period of growth since WWII. Unemployment continues to hover near record lows while wages are increasing.
- Sen. John McCain (R-Ariz.) casts a crucial vote that killed the Senate Republicans’ last-resort ObamaCare repeal bill. McCain, who returned to the Senate on Tuesday after being diagnosed with brain cancer, joined Republican Senators Susan Collins (ME) and Lisa Murkowski (Alaska) and all Democrats in opposing the repeal. McCain did vote with the Republicans to start debate on Tuesday, but voiced his opposition to the current version of the repeal bill. He also made a statement on Thursday that he did not want this version of the bill to become law and asked Speaker Paul Ryan (R-Wis.) for assurance of a conference and that the House would not just simply pass the bill. This, however, was not enough to keep McCain’s vote. [The Hill]
Economic Indicators & News
- The U.S. economy entered its ninth year of expansion, the third longest but also the slowest since World War II. The Commerce Department reported that the gross domestic product rose at a 2.6% annual rate during the period from April to June. This indicates a slight rebound after an extremely slow start to the year, when the GDP only grew at 1.2%. The GDP report also showed that consumer spending increased at a 2.8% pace, which improved from first quarter’s 1.9% rate. With that increase and the consumer confidence index rising in July to the second-highest level in 16 years, there seems to be a broadly positive outlook since the election in November. Corporate spending also climbed at a 5.2% pace but is still down from last quarter’s 7.2%. There are also indications of an improving global economy with U.S exports growing faster than imports. Increase in consumption and investment continues to signal a modest growth path. [WSJ]
- Despite a tight labor market, U.S. decelerated in the second quarter of 2017. The Labor Department stated on Friday that in the second quarter, the employment-cost index for civilian workers increased by a seasonally adjusted 0.5%. Wages and salaries rose 0.5% from the previous quarter, while benefits increased 0.6%. Total compensation rose 2.4% from a year earlier and the unemployment rate of 4.4% last month is almost the lowest in a decade. Although labor supply is decreasing, wages are not rising as much as expected, and are advancing more slowly than the average pace shown in the last couple of years. [WSJ]