February 17, 2011
It’s called the “interest rate.” The NYT should have made a reference to interest rates in an article that reported House Speaker John Boehner’s claim that government borrowing is pulling away money from the private sector, thereby curtailing investment.
The data do not support Mr. Boehner’s claim. Interest rates are at historically low levels. For example, the interest rate on Baa bonds, which would be paid by large reasonably creditworthy companies, is lower in both nominal and real terms than it was in the late 90s when the government was running a budget surplus.
If the article had discussed the interest rate, readers would have the ability to assess whether Mr. Boehner’s claim is accurate. Instead, the article is essentially just a he said/she said piece.
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