The US economy added 223,000 net new jobs in June, the Labor Department said Thursday in a mixed report on the jobs market. The unemployment rate fell to 5.3 percent, the lowest level since April 2008, but job creation numbers for the previous two months were revised significantly lower, and there w… WAIT, THERE’S MORE…
Serie A sleeping giants have agreed to pay the striker’s buyout clause in full. WAIT, THERE’S MORE…
Back in 2010, I described the “Butterfield Effect,” which is a term used to mock clueless journalists for being blind to the real story.
A former reporter for the New York Times, Fox Butterfield, became a bit of a laughingstock in the 1990s for publishing a series of articles addressing the supposed quandary of how crime rates could be falling during periods when prison populations were expanding. A number of critics sarcastically explained that crimes rates were falling because bad guys were behind bars and invented the term “Butterfield Effect” to describe the failure of leftists to put 2 + 2 together.
Here are some of my favorite examples, all of which presumably are caused by some combination of media bias and economic ignorance.
- A newspaper article that was so blind to the Laffer Curve that it actually included a passage saying, “receipts are falling dramatically short of targets, even though taxes have increased.”
- Another article was entitled, “Few Places to Hide as Taxes Trend Higher Worldwide,” because the reporter apparently was clueless that tax havens were attacked precisely so governments could raise tax burdens.
- In another example of laughable Laffer Curve ignorance, the Washington Post had a story about tax revenues dropping in Detroit “despite some of the highest tax rates in the state.”
- Likewise, another news report had a surprised tone when reporting on the fully predictable news that rich people reported more taxable income when their tax rates were lower.
Now we have a new example for our collection.
Here are some passages from a very strange economics report in the New York Times.
There are some problems that not even $10 trillion can solve. That gargantuan sum of money is what central banks around the world have spent in recent years as they have tried to stimulate their economies and fight financial crises. …But it has not been able to do away with days like Monday, when fear again coursed through global financial markets.
I’m tempted to immediately ask why the reporter assumed any problem might be solved by having governments spend $10 trillion, but let’s instead ask a more specific question. Why is there unease in financial markets?
The story actually provides the answer, but the reporter apparently isn’t aware that debt is part of the problem instead of the solution.
Stifling debt loads, for instance, continue to weigh on governments around the world. …high borrowing…by…governments…is also bogging down the globally significant economies of Brazil, Turkey, Italy and China.
So if borrowing and spending doesn’t solve anything, is an easy-money policy the right approach?
…central banks like the Federal Reserve and the European Central Bank have printed trillions of dollars and euros… Central banks can make debt less expensive by pushing down interest rates.
The story once again sort of provides the answer about the efficacy of monetary easing and artificially low interest rates.
…they cannot slash debt levels… In fact, lower interest rates can persuade some borrowers to take on more debt. “Rather than just reflecting the current weakness, low rates may in part have contributed to it by fueling costly financial booms and busts,” the Bank for International Settlements, an organization whose members are the world’s central banks, wrote in a recent analysis of the global economy.
This is remarkable. The reporter seems puzzled that deficit spending and easy money don’t help produce growth, even though the story includes information on how such policies retard growth. It must take willful blindness not to make this connection.
Indeed, the story in the New York Times originally was entitled, “Trillions Spent, but Crises like Greece’s Persist.”
Wow, what an example of upside-down analysis. A better title would have been “Crises like Greece’s Persist Because Trillions Spent.”
The reporter/editor/headline writer definitely deserve the Fox Butterfield prize.
Here’s another example from the story that reveals this intellectual inconsistency.
Debt in China has soared since the financial crisis of 2008, in part the result of government stimulus efforts. Yet the Chinese economy is growing much more slowly than it was, say, 10 years ago.
Hmmm…, maybe the Chinese economy is growing slower because of the so-called stimulus schemes.
At some point one might think people would make the connection between economic stagnation and bad policy. But journalists seem remarkably impervious to insight.
The Economist has a story that also starts with the assumption that Keynesian policies are good. It doesn’t explicitly acknowledge the downsides of debt and easy money, but it implicitly shows the shortcomings of that approach because the story focuses on how governments have less “fiscal space” to engage in another 2008-style orgy of Keynesian monetary and fiscal policy
The analysis is misguided, but the accompanying chart is useful since it shows which nations are probably most vulnerable to a fiscal crisis.
If you’re at the top of the chart, because you have oil like Norway, or because you’re semi-sensible like South Korea, Australia, and Switzerland, that’s a good sign. But if you’re a nation like Japan, Italy, Greece, and Portugal, it’s probably just a matter of time before the chickens of excessive spending come home to roost.
P.S. Related to the Fox Butterfield effect, I’ve also suggested that there should be “some sort of “Wrong Way Corrigan” Award for people like Drum who inadvertently help the cause of economic liberty.”
P.P.S. And in the same spirit, I’ve proposed an “own-goal effect” for “accidentally helping the other side.”
“He’s a better shot.”
At first, former CNN Headline News anchor Lynne Russell says, she didn’t think she or her husband Chuck de Caro would need to use the handguns they routinely carry for self-protection from the robber they encountered at a Motel 6 in Albuquerque. Her husband had come out of the shower when the armed robber pushed […]
From Caliph Ibrahim Baghdadi to the ginger jihadist Omar al-Shishani: IS bureaucratic organisation revealed. WAIT, THERE’S MORE…
World powers negotiating a deal with Iran to curb its nuclear ambitions were grappling for a breakthrough as last-ditch talks dragged into a sixth day Thursday. With the diplomatic drive playing out both in Vienna and Tehran, ministers held a flurry of meetings as the clock ticked down to a new July… WAIT, THERE’S MORE…
On Christmas morning, Nanna Skovmand and her boyfriend were subjected to an unprovoked attack by Muslims who kicked and beat them with bottles and iron chains in the face. As has happened so often before, the sentence they have received is ridiculously short. The attackers are already out of prison as you read this – […] WAIT, THERE’S MORE…
With nearly every traditional symbol of our nation and faith heritage currently under assault, we need a theme song to give us hope and even more, the courage to make a stand and defend the land we love. This is it.
If you’ve never heard Madison Rising’s version of the National Anthem, you are in for one heckuva treat. If you have heard it before, you deserve a little break to enjoy it and get FIRED UP. And please make sure you share it with all your fellow patriots.
Again? Nearly two years after Aaron Alexis killed twelve people before getting killed by police, the US Navy has locked down the Washington Navy Yard in DC with an active-shooter warning: #BREAKING: @NavalDistWashington Navy Yard on lockdown/shelter in place. No incident can be confirmed as of yet. More to follow. — U.S. Navy (@USNavy) July […]
Android 5.0 for Verizon Galaxy Note Edge users is available via OTA and on initiating manual searches. WAIT, THERE’S MORE…
U.S. HEALTH AUTHORITIES CONCEALING NUMBER OF SUSPECTED EBOLA VICTIMS FROM PUBLIC. CNN’s Dr. Sanjay Gupta: At least 6 tested for Ebola in NYC http://www.infowars.com/u-s-health-authorities-concealing-number-of-suspected-ebola-victims-from-public/
25 CRITICAL FACTS ABOUT THE EBOLA OUTBREAK THAT EVERY AMERICAN SHOULD KNOW [Each item has a link in order to see where they got their information Forewarned is forearmed. This is not the first time our government has had something to do with Ebola.] http://www.americasfreedomfighters.com/2014/08/03/25-critical-facts-about-the-ebola-outbreak-that-every-american-should-know/
Have house will travel: Inside the Tiny House Movement where more and more Americans have rejected tradition for a simpler – and cheaper – lifestyle. [Well, doesn’t this fit right in to the UN’s idea of having humans take up less and less of our land on Earth? Great job, Obama!]
The Tiny House Movement is a growing group of people who are happy to downsize the space that they live in and enjoy simplified lives as a result
While the average American home is around 2600 square feet, the typical small or tiny house is around 100-400 square feet
Buyers can be anyone from millennials and newlyweds who want to avoid the 30-year mortgage path to retirees who are downsizing http://www.dailymail.co.uk/news/article-2716297/Have-house-travel-Inside-Tiny-House-Movement-growing-number-Americans-rejecting-traditional-idea-home-living-simpler-cheaper-lives-result.html
If California’s Drought Weren’t Scary Enough, Now It May Trigger Earthquakes. Scientists believe the risk of quakes is growing as the state drains groundwater reserves near the San Andreas Fault. http://www.takepart.com/article/2014/08/04/california-drought-may-cause-earthquakes
MIGRANTS CLASH IN FRANCE AS CAMP TENSIONS SOAR. Migrants flowing into Europe in unprecedented numbers are causing a tense summer in France, as clashes break out among asylum-seekers in overcrowded camps and police fire tear gas to quell the chaos.
Sudanese and Eritreans battled in the heat in France’s port city of Calais, frustrations rising as the Africans jockey for space while trying to sneak into Britain – the dream destination some 30 kilometers (20 miles) away. Migrants fleeing poverty and war in Africa and the Middle East arrive in Calais with hopes of crossing the channel on a ferry or on trucks laden with cargo. http://hosted.ap.org/dynamic/stories/E/EU_FRANCE_MIGRANTS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2014-08-05-16-37-53
U.S. government seeking to test Ebola vaccine on humans: reports [Will this be mandatory?] http://www.reuters.com/article/2014/07/31/us-usa-ebola-vaccine-idUSKBN0G02T320140731
Schools Getting $377 Million More For Retiree Benefits But Officials Still Complaining About ‘Cuts’ Time for district officials to get serious about fixing teacher pension system. School district officials are wrong on two counts when they complain about education “cuts.” Not only will they get increases in state funding, but they also will receive close to $400 million more to pay for employee pensions. http://www.michigancapitolconfidential.com/20221
Originally posted 2014-08-06 08:46:06.
San Diegans unable to name who America declared its independence from or when it happened With Americans set to celebrate Independence Day this weekend, Mark Dice illustrated that many beachgoers in San Diego don’t even know when the Declaration of … Continue reading →
The post VIDEO: Brain-Dead Americans Have No Clue Why We Celebrate the 4th of July appeared first on .
Defense Secretary Ash Carter, with Joint Chiefs Chairman Gen. Martin Dempsey, at the Pentagon.
The Defense Department is the latest in a list of federal entities warning America to be on high alert this Fourth of July – terrorists could very well take advantage.
The Department of Homeland Security and the FBI just issued similar warnings.
“Those who seek to harm this nation take no holiday,” said Defense Secretary Ash Carter, during a Pentagon briefing with Joint Chiefs Chairman Gen. Martin Dempsey.
Dempsey confirmed military bases around the nation have been ordered to high alert. And Carter added, Military.com reported: “Some of our service members will be hard at work” this holiday weekend to deter threats.
Still, no specific threat has been received, the federal agencies said. ISIS, however, did publish a map in recent days that shows all the FBI command centers that have been set up around the nation.
The terror group tweeted out the map with this text: “#FBI sets up command centers at (56) field offices all over US, in fear of an #IS attack(s).”
New York City police have responded to the warnings with a massive counter-terrorism roll-out, the likes of which authorities say hasn’t before been seen.
“[We’ve put in place] enhanced counter-terrorism and security measures” that are higher intensity than in years past, said Rep. Peter King, who represents parts of New York.
Here is a comprehensive guide that details how to use Apple Music for an extended period for free even after its trial ends. WAIT, THERE’S MORE…
Android 5.1 will be available for Moto X 2014 users via automatic OTA notifications. WAIT, THERE’S MORE…
Lance Whitmore has one month to appeal against the sentence, says his lawyer. WAIT, THERE’S MORE…
Jon Stewart ridiculed Chris Christie’s presidential ambitions on Wednesday’s Daily Show, saying that the New Jersey governor had not only done the unthinkable within his party, but lost his place as the GOP’s resident self-proclaimed “truth-teller.” “How far must … WAIT, THERE’S MORE…