Dean Baker's Blog, page 488

"Right to Work" Means the Government Redistributes from Union Supporters to Non-Supporters

The NYT began an article discussing a "right to work" measure in Minnesota by describing it as a "measure ... that would allow workers to avoid paying fees to unions they choose not to join." It would have been helpful to remind readers that under federal law a union is legally obligated to represent all the workers in a bargaining unit regardless of whether or not they choose to join the union.

This rule means that workers who do not join the union not only gain from whatever wage and...

It is a Fact that Charter Schools Don't on Average Improve Performance, Not Just Something that the Teachers' Union President Says

The NYT had a bad case of he said/she said reporting this morning in an article that reported on a panel's recommendations for improving the nation's education system. The article noted the panel's recommendation for increased the choice of schools available for parents to select among. It then cited comments from Randi Weingarten, the President of the American Federation of Teachers, saying:

"school choice options like vouchers and charters, which use public funds but are run by a third...

More Mind Reading at the Post

The Washington Post is quickly becoming an employment service for psychics. An article on the Republicans' latest budget and tax proposals, which will reduce tax rates on corporations and the wealthy, tells readers that Republicans believe that their plan "will spur economic growth and provide them with a politically potent election-year message."

Reporters know that politicians do not always say what they believe. This is why real newspapers only report what politicians say. Only psychics...

The Value of the Dollar and Manufacturing: Does the Post Know Any Experts Familiar With Arithmetic?

Readers of the front page WAPO piece on manufacturing productivity will assume that neither the Post nor any of the economic experts it consults have heard of arithmetic. The piece points to research showing that manufacturing productivity has been overstated. While it is good to see that the Post has finally noticed research that many of us have talked about for years, the Post grossly misrepresents the issues concerning manufacturing productivity and employment.

The Post presents the...

Healthcare Costs and Household Income: Median versus Average

The Post's Wonkblog had an interesting post about a new study showing that the cost of health insurance for a typical family will be equal to the median family income by 2037, if current trends continue. Unfortunately, the post inaccurately reported that the comparison was with average family income.

Given the growth of inequality in the last three decades this makes a big difference. According to the Census Bureau, median household income in 2010 was 49,445, whereas average income was...

What's This "We " Jazz, White Man? Robert Samuelson Edition

Robert Samuelson uses his column today to complain that:

"Four years after the onset of the financial crisis — in March 2008 Bear Stearns was rescued from failure — we still lack a clear understanding of the underlying causes."

Wow, it sure doesn't seem very hard to me. The Reagan-Volcker policies of the early 80s broke the link between productivity growth and wage growth for ordinary workers. This meant that demand growth did not necessarily keep pace with output potential as had been true e...

Another Exercise in Mind Reading from the Washington Post

Politicians don't always say what they are thinking. Most of us know this fact. Unfortunately, the folks at the Washington Post don't. In a major front page article on the budget negotiations last summer between President Obama and the Republican leadership the Post told readers:

"Another key caveat: Much of the $800 billion would have to come from overhauling the tax code — not from higher tax rates. The Republicans believed lower rates and a simpler code would generate new revenue by...

The Washington Post Keeps Up the NAFTA Cheerleading

Developing countries are supposed to grow more rapidly than rich countries. For example, China has maintained a growth rate of close to 10 percent annually for three decade. India has recently approached this range. Argentina's growth averaged almost 7 percent over the last decade.

By contrast, Mexico's per capita GDP growth has actually trailed that of the United States. This naturally leads the Post to run a front page piece today telling readers that "Mexico's middle class is becoming its ...

Post Reports Secret Debt Crisis in France

Those who have been following the problems of the euro zone indebtedness have no doubt heard about the problems of debt crises in Greece, Ireland, Italy, Portugal, and Spain. But apparently France has also had a debt crisis. At least that is what the Post told readers.

An article that told readers that Europe is already so highly taxed that it can only look to cut spending referred to:

"the colossal French government debt that helped push Europe into a dangerous yearlong financial crisis

Does the Washington Post Believe in the Tooth Fairy? Bowles-Simpson Rides Again!

The Washington Post once again jumped over the line separating the news section from the editorial section and fiction from reality. It ran a tribute to North Dakota Senator Kent Conrad on the front page of the business section.

Conrad, the chair of the Senate Budget Committee and perhaps the biggest deficit hawk in the senate, is retiring at the end of the year. His views on the deficit closely parallel the views of the Post editorial page, hence the tribute.

In praising Conrad the article r...