Archive for the ‘Economy’ Category

Meet the Press Turns to Billionaire Mayor as 'Independent Voice'

Monday, February 6th, 2012

On the one hand, NBC's Meet the Press gives us Republican Indiana Gov. Mitch Daniels (2/5/12):

DAVID GREGORY: Governor Daniels, one of the things you hear from the campaign trail, Mitt Romney said it just the other day, is that the recovery should have been so much stronger. You know, it's very difficult to prove something like that, just like it's difficult for the president to prove the economy would've been weaker if not for his particular policies. How could it have been stronger had a Republican been in president, in your judgment? Been in the White House, I should say.

DANIELS: Well, for one thing, for one thing, national policy wouldn't have been so relentlessly anti-enterprise as it's been. If you'd assembled a team of Nobel economists and said design us a policy to stifle and strangle investments and small business growth and innovation in this economy, you couldn't have done better than what's happened the last three years. The mindless piling on of new regulations, every one of them very expensive, and in the aggregate extraordinarily so, that's all drained away dollars that could've been used to hire someone. New taxes and the threat of more, all the uncertainty that's come with that. What we know is this, David, I don't have--no one can prove what might have happened, but this is the weakest recovery, by far, from a deep recession that we have in--since the records have been kept, and I don't think that's an accident.

Wow--anti-enterprise tax-hiking regulatory excess!

Instead of the reporter in the room quizzing his guest on what he's talking about, let's get another guest to weigh in.

Like, say, a billionaire mayor:

GREGORY: Mayor Bloomberg, as an independent voice in all of this, is that your judgment as well, that that's a fair criticism?

MICHAEL BLOOMBERG: I think I agree with most of what Mitch said. I think if you want to have growth, number one, you have to have the financial industry be strong and willing to take risks. And this relentless criticism and investigation of them, whether--regardless of the facts in the past, if we want to have a future, we have to have people have confidence.

'Bard of the 1 Percent' Sings the Same Tune

Thursday, February 2nd, 2012

New York Times columnist David Brooks, who's been called the "bard of the 1 percent" for his writings in defense of the economic elite, is at it again--telling people not to worry about the concentration of wealth at the very top of the income scale. Brooks writes in his January 31 column that the claim that "America is threatened by the financial elite, who hog society’s resources" is a "distraction." Brooks argues:

The real social gap is between the top 20 percent and the lower 30 percent. The liberal members of the upper tribe latch onto this top 1 percent narrative because it excuses them from the central role they themselves are playing in driving inequality and unfairness.

Brooks' claim, then, is that inequality is really a matter of the top one-fifth, not the 1 percent. Well, that's not what the Congressional Budget Office (10/11) says.

It's true that what you might call the upper middle class has done better than the middle class and poor over the past three decades or so--their income has grown by 65 percent, vs. 40 percent for the middle class and only 18 percent for the poor. But over the same time period, the income of the richest 1 percent has soared--by 275 percent. That's close to quadrupling.

So while the share of income claimed by the upper middle class has stayed about the same since 1979, the poor and middle class have gotten substantially less while the piece of the pie taken by the 1 percent has more than doubled in size. As it turns out, the real driver of inequality and unfairness--is the financial elite who hog society resources.

Score one for Occupy Wall Street--zero for David Brooks.

NYT and GOP's Keystone Talking Points

Thursday, February 2nd, 2012

New York Times reporter Jennifer Steinhauer (2/2/12) accurately reports how Republicans want to frame the disputed over the Keystone XL pipeline. But she does almost nothing to challenge that framing.

Under the headline, "For GOP, Pipeline Is Central to Agenda," Steinhauer explains:

Republicans are framing Keystone as an urgent jobs and energy project at a time of high unemployment and creeping gasoline prices, and trying to portray Mr. Obama as giving in to hard-left environmentalists in an election year at the expense of addressing both.

Instead of challenging that narrative, the Times bolstered it, alluding to what Republican presidential candidates are saying about Keystone and quoting from Keystone-supporting Democrats.

"This week, Democrats moved to blunt the Keystone attacks," the Times went on--which merely set up more quotes from potentially Keystone-friendly Democrats like Senator Harry Reid, who wants the project to keep the oil in the U.S.

The Times then went back to Republican PR:

For Republicans, the pipeline is a political trifecta. It unites most of their party and divides the Democrats. It is also fairly easy to explain to voters, and it hits on the key concerns of many Americans: jobs, energy independence and fear of economic competition with China, which Republicans have said will be the recipient of the Canadian oil without the Keystone plan.

You can challenge that "trifecta," but the Times mostly passed on that option. The only hint of skepticism comes late in the article:

The number of jobs that could be created by the Keystone expansion--supporters say 20,000--is disputed. But many companies and labor unions around the country were counting on the expansion and had already made materials or hired workers to gear up.

The numbers are disputed. How so?

As we've talked about before, this is arguably the key issue here. An outside estimate from Cornell says 2,500-4,000 jobs. The State Department says 5 or 6 thousand.

It's not difficult to cite these numbers, or to ask Keystone proponents to explain where they're getting their much higher estimates (hint: from the company). This is especially important in a piece about how this issue will be an important part of the Republican presidential campaign strategy.

The Times notes near the end:

A wild card is whether workers invested in the project will serve as an echo chamber for the Republicans' criticism.

Today the  New York Times certainly served that function.

David Gregory's House of Pain

Monday, January 30th, 2012

At a time when millions of Americans are are experiencing massive unemployment, a painfully slow economic recovery, wage stagnation and the after-effects of the bursting of a multi-trillion dollar housing bubble, isn't  it time someone demanded that they suffer a little bit?

Of course not, you might say. But that's why you don't work in the media big leagues.

Here's NBC Meet the Press host David Gregory yesterday (1/29/12), speaking to Obama adviser David Axlerod:

But if you look at how dire the fiscal situation is in the country, we just came off a debt debacle this past summer. Alan Simpson, responding to the State of the Union, said: Where's the guts? Where's the hard stuff? Where's the beef? Where are the hard choices that Americans are going to have to make? What are Americans going to have to do with less of if this president gets re-elected?

Axelrod, to his credit, noted that plenty of people are actually hurting. But that didn't seem to impress Gregory:

GREGORY: But we're not dealing with the big drivers of the debt, as you know. The debt commission that the president convened is not advice that he acted on. And the reality is that the fiscal situation is dire. If we're not dealing with entitlements--what, you talk about shared sacrifice, would the president...

AXELROD: Listen, the...

GREGORY: Wait a second. He--there was a stimulus plan. There was a new healthcare entitlement, but there was nothing dealing with the big drivers of the day.

It's hard to overstate just how committed elite media are to the concept of government austerity as the fix to our current economic problems. Economists like Paul Krugman and Dean Baker might disagree, and the public would seem to think the "hard stuff" could be spending less on, say, the military. But that doesn't seem to register with people like David Gregory, who demand that politicians must be brave enough to cut Social Security--a program he's falsely declared to be one of the "big drivers" of the debt.

When Experts' Bitter Medicine Is Really Snake Oil

Friday, January 27th, 2012

Niall Ferguson is undoubtedly an expert. As the bio on his Newsweek column points out, he's "a professor of history at Harvard University. He is also a senior research fellow at Jesus College, Oxford University, and a senior fellow at the Hoover Institution." His latest column (1/23/12) is about the need to sell the public on the policies recommended by experts:

To the kind of people who spend their careers inside elite institutions, the technocratic turn is welcome. Decisions about economic policy, they reason, are too difficult to be entrusted to the people's elected representatives.... But there's a catch. The sacrifices we need to make are bound to be painful: just look what Greece and Italy are going through now. Yet people can tolerate job losses, spending cuts and tax hikes if they believe that a payoff will come in the foreseeable future. How to persuade them of that? The only way is through political leadership.

Ferguson's column concludes:

American voters want competent government. But they also need to be convinced to swallow the bitter medicine that competent government sometimes prescribes. In austerity-stricken Europe, too, the populists are waiting in the wings, ready to deliver rabble-rousing rants. Perhaps 2012 will turn out to be their year after all.

The problem with all this is that "painful" austerity policies are not actually "the sacrifices we need to make"; the decision to make people in Europe "swallow the bitter medicine" has actually made the situation there worse--as an IMF report acknowledged the day after Ferguson's column appeared (Economist, 1/24/12). The "bitter medicine" prescribed by the Conservative-led government in Ferguson's native Britain has recently succeeded in making the economic crisis there worse than the Great Depression--no small achievement.

That's the problem with technocratic government--you have to be careful which experts you listen to.

Pentagon Budgets and Fuzzy Math

Friday, January 27th, 2012

By the tone of  some of the media coverage, you might have thought Defense Secretary Leon Panetta announced a plan to slash military spending yesterday.  On the front page of USA Today (1/27/12), under the headline "Panetta Backs Far Leaner Military," readers learn in the first paragraph:

The Pentagon's new plan to cut Defense spending means a reduction of 100,000 troops, the retiring of ships and planes and closing of bases--moves that the Defense secretary said would not compromise security.

The piece quotes critics of the cuts like Sen. Joe Lieberman and an analyst at the right-wing American Enterprise Institute. And the article talks about the most commonly cited figure of $487 billion in cuts over 10 years. As economist Dean Baker writes about such coverage--"Military Budget Cuts: Denominator Please"--there is no way people can assess the significance of what sounds like a lot of money if they don't know how much the Pentagon is planning to spend over the same 1o-year period--roughly $8 trillion.

The PBS NewsHour did little to clarify the issue. The broadcast began with Jeffrey Brown announcing, "The Pentagon today outlined almost half a trillion dollars in budget cuts that would shrink the size of the U.S. military by trimming ground forces, retiring ships and planes, and delaying some new weapons." PBS aired clips from Republicans Mitt Romney and Newt Gingrich denouncing the budget cuts, and then interviewed a Pentagon official.

Even coverage of the Pentagon's new "austerity" that managed to include some helpful context didn't make things very clear. "The Pentagon took the first major step toward shrinking its budget after a decade of war" was how a New York Times story by Elisabeth Bumiller (1/27/12) begins. In the fourth paragraph, readers found this:

Even though the Defense Department has been called on to find $259 billion in cuts in the next five years--and $487 billion over the decade--its base budget (not counting the costs of Afghanistan or other wars) will rise to $567 billion by 2017. But when adjusted for inflation, the increases are small enough that they will amount to a slight cut of 1.6 percent of the Pentagon's base budget over the next five years.

So the "first major step" in cutting the military budget... isn't really a cut?

A Washington Post piece by Craig Whitlock (1/27/12) had a more accurate lead--"The Pentagon budget will shrink slightly next year"-- but later tries to make a 1 percent cut sound more significant: "While the difference may sound small, it represents a new era of austerity for the Defense Department."

To make matters even more confusing, the Post points out later that

Although the defense budget will decline next year, to $525 billion from this year's $531 billion, under Obama's current projections it will inch upward in constant dollars between 1 percent and 2 percent annually thereafter.

Kudos to Nancy Yousef of McClatchy for writing a piece (1/26/12) that took a different tack. Under the headline "Defense Budget Plan Doesn't Cut as Deeply as Pentagon Says," Yousef led with this:

Pentagon officials on Thursday announced the outlines of what they called a pared-down defense budget, but their request would increase baseline spending beyond the projected end of the war in Afghanistan, even as they plan to reduce ground forces.

To Yousef, the Pentagon was " employing a definition of the term 'reduction' that may be popular in Washington but is unconventional anywhere else."

And activist/writer David Swanson pointed out that the first question at Panetta's briefing got right at this question of whether the cuts are really cut. From the transcript:

Mr. Secretary, you talked a little bit on this, but over the next 10 years, do you see any other year than this year where the actual spending will go down from year to year? And just to the American public more broadly, how do you sort of explain what appears to be contradictory, as you talk about, repeatedly, this $500 billion in cuts in a Defense Department budget that is actually going to be increasing over time?

Panetta's answer:

Yeah, I think the simplest way to say this is that under the budget that was submitted in the past, we had a projected growth level for the Defense budget. And that growth would've provided for almost $500 billion in growth. And we had obviously dedicated that to a number of plans and projects that we would have. That's gotta be cut, and that's a real cut in terms of what our projected growth would be.

See the new release from the Institute for Public Accuracy for more of the context largely missing from the Pentagon budget coverage.

USA Today: Keystone Job Cops

Wednesday, January 25th, 2012

With New York Times public editor Arthur Brisbane continuing to puzzle over whether (or how) the Paper of Record should factcheck politicians, one might wonder whether other newspapers worry about the same thing.

Take USA Today (please!). Yesterday the paper reported on the very contentious matter of the Keystone XL pipeline and jobs--a favorite issue for Republicans. The paper (1/24/12) told readers:

Obama hasn't been willing to ignore politics, says Bruce Josten, an executive vice president of the U.S. Chamber of Commerce. He cites several instances--from the failure to reach a deficit-reduction deal with Republicans last year to the rejection Tuesday of a jobs-producing oil pipeline--as examples of Obama's refusal to compromise.

Calling something "jobs-producing" suggests that this would be a major component of the policy in question.

Today the paper gets a little more specific in its report (1/25/12) on the State of the Union response from Republican Indiana governor Mitch Daniels:

He derided what he called "the extremism that stifles the development of homegrown energy, or cancels a perfectly safe pipeline that would employ tens of thousands."

That was a reference to Obama's decision against allowing the Keystone XL oil pipeline to be built from Canada to the Gulf Coast.

No, it's a reference to a myth Republicans and the oil industry are spreading about the jobs that would result from constructing the Keystone pipeline.

Last week USA Today counted 20,000 such jobs in a headline. I suppose the fact that some politicians like to claim that the pipeline would create hundreds of thousands of jobs makes the 20,000 number seem like a safe middle ground.

But that number is nonetheless dubious. Curtis Brainard has a pretty thorough rundown at CJR.org (1/24/12), explaining that the 20,000 figure comes from one estimate provided by TransCanada. Outside evaluations of the likely job numbers look different; the State Department's estimate is 5,000-6,000, and as Brainard explains:

In September, researchers at Cornell University's Global Labor Institute used the information in the EIS to come up with an estimate that was even more modest. Factoring in the various durations of employment, it calculated that "on-site construction and inspection creates only 5,060-9,250 person-years of employment (1 person-year = 1 person working full time for 1 year). This is equivalent to 2,500-4,650 jobs per year over two years."

The Republican Party wants the Keystone story to be about jobs, jobs and jobs. This is much easier to do when media outlets will print whatever they say without questioning it.

Joe Klein Notices Newt Stole His Kid Janitor Idea

Friday, January 20th, 2012

Time columnist Joe Klein jumped to Newt Gingrich's defense (12/19/11) when the Republican presidential candidate floated the idea that poor school children should work as janitors at their schools. Klein's endorsement (FAIR Blog, 12/9/11) earned him a coveted P.U. Litzer Prize. But apparently there's more to it.

As Klein explains in this week's issue of Time (in an article that bears a title "Racial Slant Aside, Newt's Poverty Plan Could Work"), "When you strip away the racial appeals, though, Gingrich proposes some very creative ways to address poverty and dependency."

He added:

And yes, as Newt suggested, that last idea did come from me--although I put a slightly different twist on it.

I first made the suggestion in 1991, after the New York City janitors negotiated a gaudy contract that required them to mop the cafeteria floor only once a week.

The difference, apparently, is that Klein wanted to see "students and their parents help keep the schools clean," and "not just poor students--all students, even those attending the city's elite high schools. It was a form of public service, intended to build a sense of responsibility and community in students of every income level."

Well, at least Gingrich was going to pay the kids.

How about expanding the idea further, though: Why not let high school students take turns writing a column for a national news magazine? It'd be a nice form of public service. And consider the benefit to Time readers.

Dubious Pipeline Assertions Become USA Today Headlines

Thursday, January 19th, 2012

Today's front page of USA Today:

Obama Rejects Keystone Pipeline: Business leaders, GOP say decision kills 20,000 new jobs

The paper adds that "Obama was putting politics ahead of jobs and the nation's energy security by rejecting the pipeline now, Republicans and oil industry leaders said." It closes with this:

Business leaders and Republicans say approving the project now would create as many as 20,000 jobs for an ailing U.S. economy and lessen dependence on foreign oil.

"This political decision offers hard evidence that creating jobs is not a high priority for this administration," said Tom Donohue, the president of the U.S. Chamber of Commerce.

If the argument in favor of this pipeline is that it creates jobs, then reporters should look into the claims about job creation. USA Today doesn't do that, but others have. A piece by CBS reporter Alain Sherter (1/18/12) explained that the 20,000 figure, while lower than some estimates, still has some problems:

But subsequent analysis suggests that Keystone's job-creating potential is more modest. The U.S. State Department calculated last year that the underground pipeline would add 5,000 to 6,000 U.S. jobs. One independent review of Keystone puts that number even lower, with the Cornell University Global Labor Institute finding that the pipeline would add only 500 to 1,400 temporary construction jobs. The authors of the September report also said that much of the new employment stemming from Keystone would be outside the U.S.

Transcanada itself cast doubt on its employment forecast when a vice president for the company told CNN last fall that the 20,000 jobs Keystone would create were temporary and that the project would likely yield only "hundreds" of permanent positions.

Another reason for the discrepancy appears to stem from what that 20,000 figure really means. As Transcanada has conceded, its estimate counted up "job years" spent on the project, not jobs. In other words, the company was counting a single construction worker who worked for two years on Keystone as two jobs, lending fuel to critics who said advocates of the pipeline were overstating its benefits.

The inflated claims will continue to fly, though--especially when reporters don't push back.

NYT, SOPA and Internet Factchecking

Thursday, January 19th, 2012

Remember last week's uproar about the New York Times and factchecking? In today's paper, we see a great example of how this works.

Former Democratic Sen. Chris Dodd's new job is as a lobbyist for the Motion Picture Association of America, which means he's leading the charge in support of SOPA, the bill that big media companies believe will stop online "piracy." Opponents see it as a potentially devastating blow to free speech on the Internet, and they seem to have had great success in turning the tide of the debate. This is not good news for people like Dodd, the Times reports:

Mr. Dodd said Internet companies might well change Washington, but not necessarily for the better with their ability to spread their message globally, without regulation or factchecking.

"It's a new day," he added. "Brace yourselves."

That's right, people--through the magic of the Internet, misinformation will spread without being checked. Not like the old days, when newspapers stepped in to stop this stuff from spreading. Just two paragraphs later, the Times reports this claim from the MPAA:

The Motion Picture Association of America says its industry brings back more export income than aerospace, automobiles or agriculture, and that piracy costs the country as many as 100,000 jobs.

Do the MPAA's jobs claims add up? They've been challenged on their research throughout this debate; is there any reason to believe these figures are any more reliable? It's something readers can check for themselves on the Internet. But that's where nothing is ever factchecked.

O'Reilly's Comes to Romney's Aid on Taxes--Armed with Inaccuracies

Thursday, January 19th, 2012

Mitt Romney might need some help defending his considerable wealth or controversial career in private equity. But he doesn't need the kind of help Bill O'Reilly is offering.

Mitt Romney's declaration that he pays about a 15 percent tax rate on his income has generated plenty of chatter, in part because it confirms that much of the Republican candidate's yearly income is taxed at a rate appropriate for capital gains and dividend income--much lower than if Romney were actually working for a living.

But enter into the picture Fox host Bill O'Reilly, who apparently thought he should rescue Romney by making an argument that even the candidate himself isn't making--that Romney is being taxed twice. On a segment last night (1/18/12) with two progressive guests (an exceedingly rare sight on Fox), O'Reilly explained things to Heather McGhee of the think tank Demos:

O'REILLY: Do you know what the 15 percent rate is all about. Do you understand that?

McGHEE: Yes, absolutely it's about his capital gains.

O'REILLY: OK, so ordinary income in Romney's tax bracket taxed at 35 percent, right.

McGHEE: Yes.

O'REILLY: OK, so he already got taxed 35 percent on his investment money. It's already been paid. So then he invests it, all right, and he gets more money from the investment in which he pays another 15 percent on top of the 35 percent of anything that he makes.... So isn't it misleading to tell the public, as Warren Buffett has done, that Romney's whole resume is a 15 percent deal? Isn't that misleading?

This would be slightly more convincing if it were accurate. As Pat Garofalo pointed out at Think Progress (1/17/12):

One of the reasons Romney is able to drive his tax rate down so low is that he is still earning money from his private equity firm, Bain Capital, that is likely subject to a pernicious tax loophole. This loophole lets wealthy money mangers like Romney pay the capital gains tax rate on profits they make investing other people's money, turning the justification for having a lower capital gains tax rate completely on its head.

The other guest on O'Reilly's show--Public Citizen's David Arkush-- tried to point this out:

O'REILLY: But Mr. Arkush, do you see my point here about Mitt Romney? He paid his fair share, 35 percent on the money he made when he was in the work force. He got out of the work force and he's living on his investments and paying another 15 percent on top of the 35. One percent, and I'm in that 1 percent, pay 37 percent of the income, and you're going to sit there and tell me I'm not paying my fair share? Come on.

ARKUSH: Well, I actually think you're mistaken about Mitt Romney. One of the things that's going on here is he's actually exploiting a tax loophole in paying only 15 percent. He didn't pay 35 percent on his original income. He got to treat ordinary income, which most people would pay a regular tax rate on, as capital gains.

It was at this point that O'Reilly interrupted:

Did he do anything illegal? Did he do anything illegal, Mr. Arkush?

Of course, that's entirely missing the point, which is that  a perfectly legal tax loophole allows Romney to earn millions of dollars and pay little in income taxes. If Romney were really being taxed twice, as O'Reilly seems to think is the case, you'd think he might make that argument himself.

O'Reilly closed the segment by telling his guests, "We're going to continue the discussion; I think you're both good guests." Let's hope it corrects his misinformation.

When the Campaign Moves Back to the 'Center'

Thursday, January 12th, 2012

The presidential campaign is breaking down along familiar ideological lines, according to New York Times reporter John Harwood (1/12/12):

American voters loathe both major symbols of the forces squeezing their pocketbooks and life savings.

President Obama will seek re-election vowing to rein in one of them: Wall Street. Mitt Romney will focus on the other: Washington.

There are some complications (Republicans attacking Mitt Romney's "vulture" capitalism for starters), but Harwood assures readers that soon enough the candidates will be back to the sensible middle.

But what's the center?

Romney's right-wing rhetoric about Obama's fondness for Big Government and European socialism is a staple of his campaign. But the evidence of Obama's leftward anti-Wall Street message is a little harder to come by. This is where Harwood sees it:

He called for a 21st-century version of Theodore Roosevelt’s progressive movement that would raise taxes on the wealthy to finance job-creating improvements in infrastructure, education and scientific research. Mr. Obama's view draws strength from voters' antipathy toward a Wall Street culture that prospered while Main Street struggled--and then received a taxpayer bailout.

Harwood  tells readers not to much worry about what they're hearing, since they'll be back to The Middle soon enough:

Dramatic oratory aside, Messrs. Romney and Obama are seeking ways to position themselves as reasonable centrists in a general election. Mr. Obama on Wednesday announced that he will offer new business tax breaks for companies that return jobs to the United States. Mr. Romney has defended Social Security against Mr. Perry's ideas for transforming it, and criticized Mr. Gingrich for suggesting a weakening of child labor laws.

The implication, of course, is that neither of them is being particularly reasonable now. In the case of Mitt Romney, perhaps that means he doesn't really mean Obama is seeking "to put free enterprise on trial." To Harwood, Romney's centrism is that he supports child labor law and doesn't believe Social Security is a Ponzi scheme. That doesn't tell us much.

But as the Christian Science Monitor reported, Romney's actual Social Security plan would "gradually raise the retirement age to reflect increases in longevity."  That's not a particularly popular idea, but it's the kind of thing corporate media tend to support.

As for Obama,  is it really reasonable centrism to call for corporate tax breaks? Harwood seems to think so, especially when set against the left-wing Obama who calls for tax hikes on the wealthy to finance jobs programs. But those unreasonably progressive policies would seem to be fairly popular, even by the Times' own polling.

As is often the case, when media say "center," they don't mean policies that most people support. They mean policies that seem sensible to them. The two are not the same thing.

'Opinions Differ' Should Be the Start of PolitiFact's Job

Tuesday, January 10th, 2012

There are two ways to approach being evenhanded: You can try to actually be evenhanded, which could mean that you find that one side is right and the other is wrong. Or you can strive for the appearance of being evenhanded, which means that you decide in advance that you're going to find that there's truth on both sides.

PolitiFact, a political factchecking project based in St. Petersburg, Florida, has been criticized for taking the latter approach. An item it posted yesterday (1/9/12) is further evidence of its preference for the appearance of evenhandedness over its reality.

The item addressed Rick Santorum's assertion in a January 4 town meeting that as a result of the 1996 welfare law, "Poverty levels went down to the lowest level ever for...one of the areas that had the highest level of poverty historically, which is African-American children." PolitiFact concluded that the statement was "Half True," since "Santorum is right that poverty rates declined after the reform’s passage. But opinions differ on the primary cause."

As evidence that "opinions differ," the factcheckers turned to Robert Rector of the Heritage Foundation, best known for his argument that the poor aren't really poor because they have microwave ovens and the like. Unsurprisingly, since he works for a group set up explicitly to promote conservative ideas, he does indeed have the opinion that the 1996 welfare law caused a drop in child poverty. But does this opinion have any basis in fact?

PolitiFact allows him to make his case at length, but the gist of it is this: "Since welfare reform, the poverty rate among black children has fallen at an unprecedented rate from 41.5 percent in 1995 to 32.9 percent in 2004." And PolitiFact helpfully gives you a link to a U.S. Census chart that shows that those numbers are almost accurate. But looking at the numbers for yourself, you see that there's no indication that the 1996 law had anything to do with them: Poverty among black children peaked in 1992, at 46.3 percent, and declined steadily from then until 2001, when it hit a low of 30.0 before moving upward.  1996 does not seem to have impacted the poverty trajectory at all; a naive reading of the numbers would indicate that black child poverty goes up when someone named "Bush" is in the White House.

Here's a graph of child poverty by race from Mother Jones (9/29/11--by raw numbers, not percentages) that illustrates the utter unremarkability of 1996 for black child poverty:

PolitiFact goes on to give equal space, and equal rhetorical weight, to sources who say economic growth is actually what drove child poverty down in the '90s: "While Rector maintains that the economy played only a secondary role in reducing poverty, other groups says it’s the main driver." But none of these sources directly rebut Rector's arguments, or point out how dubious it is to give a 1996 law credit for a decline that began four years earlier.

So it's true that "opinions differ" on whether the 1996 welfare lowered poverty for black children. A real factchecker would point out that the advocate for that opinion offers selective and misleading figures to back it up. But then, if you did point that out, you might look like you weren't being evenhanded.

(Thanks to Neil deMause for bringing PolitiFact's report to my attention.)

Grading George Will on Student Loan Debt

Tuesday, January 3rd, 2012

George Will's January 1 column in the Washington Post was a laundry list of familiar criticisms of progressives and Democrats--they worry too much about climate change, for instance.

Another non-problem, in Will's world, is student loan debt:

Political logic suggests that this year Obama will try to rekindle the love of young voters with some forgiveness of student debts. But one-third of students do not borrow to pay college tuition. The average debt for those who do borrow to attend a four-year public institution is $22,000, and the average difference between the per-year earnings of college graduates and those with only a high school diploma is . . . $22,000.

I guess one lesson is that 2/3 of college students should either get themselves full scholarships or wealthier parents. But in the event that this isn't possible, never fear--you'll make enough money in a hurry to pay off your debt.

The more important question might be how this level of debt has changed over time. According to this item from the Wall Street Journal's Real Time Economics blog (8/15/11), "There was $550 billion in student debt outstanding in the second quarter, up 25 percent from $440 billion in the third quarter of 2008."

And as the Project on Student Debt reports, the average debt load doubled from 1996 to 2008:

ABC's Bogus Big Government Debate

Wednesday, December 21st, 2011

On Sunday (12/18/11), ABC's This Week presented an installment of what it's calling "The Great American Debates." What it really was, though, was a perfect example of how corporate media adopt right-wing assumptions when framing a discussion.

In this case, it was a debate over Big Government. The show's opening sounded like a Tea Party rally:

CHRISTIANE AMANPOUR: This week, a special program on the defining issue of 2012. Has Uncle Sam become too big, too powerful? A bailout bonanza, a welfare state? A tax-and-spend Goliath crushing the entrepreneurial spirit when America can't afford to fall behind? That's the rallying cry of the Tea Party, the mantra of Republican candidates everywhere.

GOV. RICK PERRY, R-TEXAS: Washington doesn't need a new coat of paint. It needs a complete overall.

AMANPOUR: At the heart of Ronald Reagan's famous declaration.

RONALD REAGAN: The government is not the solution to our problem, government is the problem.

AMANPOUR: Today, ABC News and the Miller Center of the University of Virginia present The Great American Debate. Facing off here in Washington, the intellectual heavyweights of both parties. For the right, Congressman Paul Ryan and ABC's own George Will. And from the left, Congressman Barney Frank and former Clinton Labor Secretary Robert Reich.

About all you can say about this is that it's relatively balanced in terms of  ideology.

But all the rhetoric about a "welfare state" and a "tax-and-spend Goliath" are staples of right-wing talk radio. Has the government gone on a spending binge in the Obama years? Not really, as Paul Krugman has explained a few times. Government spending as a share of GDP has gone up, but there are reasonable explanations--a massive recession, the cost of unemployment insurance--that have nothing to do with enterpreneur-crushing Big Government.

Reich tried to point out the flaws in the framing of this discussion at least once: "The idea of big government as a framing device in terms of a debate such as this inevitably sets it up kind of in favor of the side that doesn't want big government."

To suggest this is the "defining issue" of 2012 is rather remarkable. Most people think there's a jobs crisis, and understand that government spending might be the most efficient way to fix the problem. But I don't expect ABC to convene a "Great Debate" that is premised on a question like, "Why isn't the government spending enough money to create jobs?"