July 08, 2013
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