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Home Publications Blogs Beat the Press The Washington Post (a.k.a. Fox on 15th) Has Not Heard About the Recession

The Washington Post (a.k.a. Fox on 15th) Has Not Heard About the Recession

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Saturday, 09 April 2011 07:27

That is what readers of its analysis of the budget deal would conclude. It told readers:

"Once in the battle, Obama and his party felt pressure to show they heard the message that many Americans believe the government spends too much and that deficits are unsustainable. As a result, the president and congressional Democrats were forced to agree to much larger spending cuts than they had wanted, rather than appear resistant to popular will."

Actually, almost all of the polling data on the election showed that jobs were by far the most important issue as people went to vote. The deficit trailed by a large margin.

According to analysis from Moody's Analytics and Goldman Sachs, the original package of $61 billion in cuts put forward by the Republicans would lead to a loss of over 700,000 jobs. (The logic is simple. There is less spending, therefore fewer people are employed. Even a Washington Post reporter should be able to get that one.) Since the final package includes roughly two-thirds of these cuts, it is reasonable to infer that it will lead to a loss of close to 500,000 jobs.

Remarkably the Post's analysis says nothing, nada, zero about the jobs impact of this bill. When it comes to ignoring the message expressed in the election last fall it would be difficult to think of a better example.

Comments (4)Add Comment
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written by izzatzo, April 09, 2011 8:05
According to analysis from Moody's Analytics and Goldman Sachs, the original package of $61 billion in cuts put forward by the Republicans would lead to a loss of over 700,000 jobs.


We're all Keynesians now. No wait ... they're all Keynesians now. One more time. We're all dead in the long run except for the upper one percent. There, got it.
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written by AndyfromTucson, April 09, 2011 8:17
I don't know what Obama and the Democrats are thinking. This deal increases the chances that the economy will continue to be weak (or possibly in a double-dip recession) in the 2012 election season. Since Obama is on record as saying Federal budget cuts are a good and necessary thing, the Democrats will not be able to blame the Republicans for the weak economy and the voters will blame Obama.
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written by joe, April 09, 2011 4:54
They brought the deficit "under control" by adding 900 billion to the national debt with a Dec 2010 tax cut and then cutting 38 billion in spending in April.
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written by urban legend, April 09, 2011 6:22
Would it have been so impossible for Obama to give the people what they want, and say that the deficit vultures -- formerly known as "hawks" -- had it backwards, were putting the cart before the horse, etc.? That the deficit and national debt are long-term issues, and we have successfully dealt with bigger ones before? That Job One must be jobs, and good jobs, and you should not let scare tactics by the deficit vultures -- vultures because they keep picking at the bones of programs that actually help real Americans -- get in the way of our No. 1 priority? That until we get America back to work again, earning incomes and paying taxes (and asking the wealthy to pay their fair share of taxes as they did in 2000 when we ran a surplus and the economy was strong), we are only going to make the deficit worse anyway? That what the deficit vultures want to do is worse for Americans now, and will only make worse for the future what they claim to be solving?

Too complicated to understand, or simply intuitive to people who care about defining a strong economy based on how many jobs it creates?

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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.

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