Executive Order on Health Care?
October 10, 2017
Trump indicates he may use executive order on health care; Working class Americans face growing debt burden; IMF raises worldwide economic outlook.
- Trump indicates he may use executive order on health care. In a tweet Tuesday morning, the President indicated he’d use the “power of the pen” to “give great HealthCare to many people – FAST,” in the wake of GOP congressional leaders’ inability to repeal the Affordable Care Act. Republicans like Senator Rand Paul have championed introducing association health plans, which would provide a cheaper alternative than the current lowest tier plan for young healthy people, but could upset the delicate balance that is the ACA risk pool. The President is reportedly also considering allowing people to purchase health insurance across state lines. [Politico]
Economic Indicators & News
- Working class Americans face growing debt burden. A Moody’s report based on the Fed’s data on consumer finances indicated that working class households are spending a larger portion of their income servicing debts. While debt burdens are actually low for the last three decades, this data shows the first increase in debt burdens since 2010 and might contribute to increasing default rates and economic hiccups to come. These increased debt burdens may be in part due to rising household incomes, which rose 5% for working class families and 10% for families overall. That income growth runs up against rising rents and higher healthcare costs, which may compound default problems. Overall, US families have “very manageable” amounts of debt, according to Moody’s analysts. [Bloomberg]
- IMF raises worldwide economic outlook. According to the IMF’s World Economic Outlook, the global economy is set to grow 3.6% this year, and 3.7% next year, revised from previous estimates of 3.5% and 3.6% respectively. Almost all major economies are experiencing economic expansion, at rates unimaginable during the global financial crisis. 2017 will likely be the biggest acceleration year since 2014, which was a peak year for financial crisis recovery. The only economy left out of the growth picture was the UK, weighed down by Brexit and a falling pound. [WSJ]