The IUSB Vision Weblog

The way to crush the middle class is to grind them between the millstones of taxation and inflation. – Vladimir Lenin

Elite Press Still Spinning Bad Economy for Obama – “Unexpected Growth in Job Loss” – Oh Really?

Posted by iusbvision on January 26, 2010

Black Friday, the biggest shopping day of the year, spending was down 8.6%, November retail sails fall, December home resales are down 17%, consumer spending is down again, ….

…so with numbers like that, would someone care to explain how a rise in unemployment can be described as “unexpected”?  This was the spin from much of the elite media to the newly released jobless numbers:

Labor Department Reports Unexpected Rise In New Jobless Claims

Unemployment figures for those newly seeking jobs continue to bounce around, as the latest Labor Department figures show an unexpected rise. While the trend has been downward, this week’s numbers rose unexpectedly to 482,000.

While many say the economy has exited recession, to those seeking jobs, the economy is still in bad shape. Layoffs have slowed, but new hires have not picked up at the pace that many would expect. The unemployment rate overall remains at 10 percent.

The Labor Department said Thursday that initial claims for unemployment insurance rose by 36,000. Wall Street economists surveyed by Thomson Reuters had expected a small drop.

Drops in consumer spending means more unemployment; or as a teenager might say, “No Duhhhh”.

If Bush were president would this be reported as “unexpected”, or would they list what I have and say “See….”?

This is another of the countless examples of a simple truth, most economists are good at applying flawed Keynesian theory, but do not genuinely understand economics, and most economists are either political “whores” or creatures of ideology, using their education to push a political agenda because they are paid to or because they have ideological and/or emotional hangups.

Partisan economist’s like Teresa Ghilarducci can write great papers on 401K reform and talk about how they need to have more diversity of investment to help prefund people’s retirement, and at the same time say that Social Security should not prefund people’s retirements at all as President Bush proposed. I am convinced if Obama had said the same thing Ghilarducci would be all for it.

Obama Chief Economist Christina Romer is a good economist, as some of her papers are required reading for many economics students, and now that she is in the White House she makes statements as if she had forgotten much of what she had written previously.

Some people claim that the NYT writer Paul Krugman is a good economist, yet I am amazed at the amount of basic economics he has to forget to write much of the nonsense he does every week.

UPDATE – Ed Morrissey at went back and looked up the “unexpectedly” use in the elite media and they apply it to almost every piece of economic bad news in recent months – LINK.

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