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Home Publications Blogs Beat the Press Partying at the NYT Over Increased Unemployment and Slower Growth

Partying at the NYT Over Increased Unemployment and Slower Growth

Monday, 08 July 2013 14:22

The NYT tells us that it is good news that we are seeing higher unemployment and slower growth than would otherwise be the case as a result of partisan gridlock in Congress. Of course it did not put it in quite those terms, but an article on Congressional gridlock told readers:

"The upside of inaction is its impact on deficit spending. Total discretionary spending in the fiscal year that ends Sept. 30 will be about $70 billion below the previous year’s — the first such drop since fiscal 1996, another year of sharply divided government. In June, the federal government shed 5,000 jobs, according to jobs data released on Friday."

According to the Congressional Budget Office and most independent analysts the impact of this deficit reduction has been slow the economy in 2013 by more than a percentage point which would translate in somewhere around 700,000 fewer jobs. Of course the NYT may think this is good news, but that sort of comment is usually put in an editorial not a news story.

Thanks to Josh Greenstein for calling this one to my attention.

Comments (1)Add Comment
party like its 1999
written by pete, July 08, 2013 11:45
ha ha, this is the problem eh...everybody says the low deficits and high growth rates of the clinton years were due to higher taxes. Of course it was the effluence of the Fed. Much like the early 2000s, eh. So now where are we is the question. Is it the 90s, with asset values skyrocketing again? Real estate is about where it was when the Baker/Shiller crowd declared a bubble in 2002. (And Herr Krugman jokingly asked Sir Paul for a housing bubble.) Uh oh. Sounds like deja vu all over again. Yet another false expansion, more transfer of wealth to the upper crust. Face it, the dual mandate is a curse.

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About Beat the Press

Dean Baker is co-director of the Center for Economic and Policy Research in Washington, D.C. He is the author of several books, his latest being The End of Loser Liberalism: Making Markets Progressive. Read more about Dean.