Krugman: Traders chanted, "Kerry," but Bush policy "frantically" spun

[DeepModem Mom]

OP-ED COLUMNIST
Spin the Payrolls
By PAUL KRUGMAN

Published: August 10, 2004

When Friday's dismal job report was released, traders in the Chicago pit began chanting, "Kerry, Kerry." But apologists for President Bush's economic policies are frantically spinning the bad news. Here's a guide to their techniques.

First, they talk about recent increases in the number of jobs, not the fact that payroll employment is still far below its previous peak, and even further below anything one could call full employment. Because job growth has finally turned positive, some economists (who probably know better) claim that prosperity has returned - and some partisans have even claimed that we have the best economy in 20 years....

***

Second, the apologists give numbers without context. President Bush boasts about 1.5 million new jobs over the past 11 months. Yet this was barely enough to keep up with population growth, and it's worse than any 11-month stretch during the Clinton years.

Third, they cherry-pick any good numbers they can find....

***

Fourth, apologists try to shift the blame. Officials often claim, falsely, that the 2001 recession began under Bill Clinton, or at least that it was somehow his fault....Finally, many apologists have returned to that old standby: the claim that presidents don't control the economy. But that's not what the administration said when selling its tax policies. Last year's tax cut was officially named the Jobs and Growth Tax Relief Reconciliation Act of 2003 - and administration economists provided a glowing projection of the job growth that would follow the bill's passage. That projection has, needless to say, proved to be wildly overoptimistic.

What we've just seen is as clear a test of trickledown economics as we're ever likely to get. Twice, in 2001 and in 2003, the administration insisted that a tax cut heavily tilted toward the affluent was just what the economy needed. Officials brushed aside pleas to give relief instead to lower- and middle-income families, who would be more likely to spend the money, and to cash-strapped state and local governments. Given the actual results - huge deficits, but minimal job growth - don't you wish the administration had listened to that advice?

Oh, and on a nonpolitical note: even before Friday's grim report on jobs, I was puzzled by Mr. Greenspan's eagerness to start raising interest rates. Now I don't understand his policy at all.

http://www.nytimes.com/2004/08/10/opinion/10krugman.html?hp

[xchrom]

1. of all the orwellian language used since 00

the propaganda used by the right wing to describe the economy is perhaps the most alarming.
why? because i think they honestly believe their own hype.
i think they belive that driving the middle class down in this country is good, i think they believe that american's selling themselves to the company store through ''ownership'' is good, i think they believe that continued growth in outsourcing is good{that just means lack of economic diversity}, etc.
and 9-11 is a perfect example of what conservative fanatics are capable of. and yes -- i think free market extremists are dangerous.
with bushco setting new high water marks for how deluded these people can be.

[NukeProf]

2. Repugs are unprincipled liars

I don't believe that the Repugs or their thugs believe any of the economic crap they spew. I think far too often we on the left attempt to reason with these thieves. The Repugs, the conscienceless rich, want all they can get. Period. End of story. Fini. They don't give a rat's ass about the country. Talking with these people about economics is like talking to a creationist about evolution.

[DeepModem Mom]

3. True words, NukeProf -- welcome to DU!

[Jokinomx]

5. I agree...

And welcome to the D.U.... I look forward to reading more of your opinions....:toast:

[NewJeffCT]

7. good post - welcome to DU

Unfortunately, the RepubliCONs do a much better job at framing the language than we do...'liberal' is now considered a dirty word, any vote against a tax cut is a tax increase, etc, etc.

[w4rma]

13. They own the media. Its easy when one controls the microphone. (nt)

[trof]

4. Interesting CNN segment.

Friday, during one of CNN's cuts to the trading floor, the in-studio anchor said something like "I hear the traders were chanting something after the job numbers came out."

The woman reporting from the floor laughed and said something like "Yes, they're a rowdy outspoken bunch down here."

At the time I wondered WHAT they were chanting. Really aroused my curiosity. Sounds like that would be the real punchline to the story, but CNN NEVER TOLD US WHAT WAS BEING CHANTED.

CNN=FAUX LITE

[DeepModem Mom]

6. I don't think ANYBODY told us what they chanted, which is why...

they're called, pardon the term, "mediawhores."

[KharmaTrain]

8. The Market Is Tanking, The Housing Market Is Flat...

Dr. Krugman spells it out in black & white, and I can amplify what he says from what I'm seeing. I've never seen an economy as stagnant as this one. No one's investing or looking at any big expenditures until the election, if not beyond.

Right now the 70 million dollar Repugnican PR blitz is papering over this mess and the paid attack dogs are out. But calling black white is hurting this regime as you can't hide the fact that more and more people have seen their jobs and savings vanish with no indication things will improve anytime soon. This is especially a stark contrast to where these people were 5 years ago.

Greenspan isn't anxious to raise interest rates, he's being forced to. Inflation is starting to really kick in (look at all the prices that have gone up recently, thanks to our "oil policy") and Greenspan knows keeping interest rates artificially low will not meet the rising costs. I'm certain Al's doing his best to help this regime, but their wreckless spending is starting to really pile up.

The regime hopes few notice how bad things are until after the election and then tough nut. That is, unless you're rich and can move your money around...just like Bunnypant's base...and find a way to make money while others are losing. The rich get richer, the poor pay more of the bills. How sad it is when I hear those who I know don't understand how this regime is screwing them spewing Limbaughisms without thinking about how this affects them.

[DeepModem Mom]

10. One of the saddest things about the rise of these new "Republicans"...

is the vast number of Americans who have been taken in by them, and vote for them against their own, very basic interests.

[KharmaTrain]

12. I'm baffled...but I'm convinced it's frustration

There's a common thread in a lot of the Repugnicans I know. They're beaten people. While some are successful as far as a nice income and home, they sold their identity and dreams to make the almighty buck. The measure of their success isn't in what things they do to help others, but in their net worth and personal property.

Many of these people have lived in decades of self satisfaction fueled by corporations that profit from hanging those dreams out there with a price tag attached to it. Eventually the materialism means more than any other human emotion and when they can't have all the goodies they want, they get frustrated.

Many in my generation feel we haven't been better off than our parents and have developed a cynical view of ideals. Everything now is short-term since the frustration returns quickly. It's sad to see.

These people hear "tax cut" and equate it to the amount that is taken from their paycheck or what they have to pay on April 15th but don't realize how they benefit from it. They feel entitled to garbage pick-up and rut-free roads, but don't realize it actually costs money for these services. Then when services are cut that affect them, they get frustrated and go blame the messenger. These people are in a bad case of denial...a generation split by its own excesses.

Cheers!

[gpandas]

16. most americans are materialistic fools. n/t

[NewJeffCT]

15. we need to get the word out...

People still believe that RepubliCONs are better for business and are better with managing the finances. Obviously, after Red Ink Reagan and Borrow & Spend Bush sandwiching fiscally responsible Clinton, it has started to change... but, "tax & spend" liberal has been a Right Wing meme for so long, it will be tough to change.

[Gman]

9. I'm not sure Greenspan's not trying to stifle the economy

by raising interest rates thereby making it easier for Kerry.

He was accused of not doing enough during the recession in '92 for Bush I. One of his chief accusers was this fool in the WH now.

[DemBones DemBones]

11. Revenge is a dish best served cold. . .

perhaps Dubya was his usual charming self to Greenspan (kinda like he was to AlHunt) and Greenspan has waited all this time to slap him down?

[Gman]

18. KAHN!!!

[John_H]

14. Email whores: "How many times have u had P.K. on comapred to

Peggy Noonan, Bob Novak, or any other wingnut columnist? Why?"

[xchrom]

17. kick