Our reader is a retired union worker who follows economic and political news closely. He lives on long Island in New York. He wrote this comment in response to Jonathan V. Last’s article about the media’s insistence on saying that good economic news is “bad for Biden.” His response: “It’s about time!”
Joel wrote:
What we call MSM is owned by very wealthy people whose interests will not be hurt by a Trump re-election. Tax cuts for the wealthy don’t trickle down and never have, but they go into his and their pockets . But even a more benign explanation is that Trump is good for the business of the Washington Post , the New York Times , CNN… All with increased readership and thus advertising sales. Generated by the buffoon.
The jobs report was released on Friday the 5th showing a remarkable stretch of below 4% unemployment not seen since ” we partied like it was 1965″ . Showing millions of more Jobs created on top of all the Jobs recovered since the Covid recession. Jobs recovered in record time for any recovery. After a recession business close employees who were employed have moved on it took from 2010 till 2017 to just recover the Jobs lost in the great recession.
The US has a higher growth rate and lower inflation than almost the entire G20. We have been told by the MSM (not just Right Wing Media ) that the 10s and 10s of millions who either went to work or changed jobs during the recovery, don’t really care about easily getting a Job and changing Jobs for better paying Jobs. Don’t care that the real (inflation adjusted) median wage actually exceeded inflation by a few dollars a week. That most of those raises went to non-supervisory workers. In other words the working class. Not the upper middle class and the wealthy. What they care about we were told was inflation that subsided almost as quickly as it arose. Inflation that was due to supply shortages of Labor and Materials generated by Covid shut downs at home and overseas. By autocrats overseas manipulating oil prices to see an autocrat elected in America. Not due to the typical wage price spirals of the past. Inflation that saw corporations because of the hysteria generated in the media feel free to boost profits by raising prices far and beyond any increase in Labor or material costs.
Laughing in many Corporate Board Rooms that the people have been duped to expect inflation and we are going to give it to them as corporate profits rose to record levels not seen since WW2 and profits still are near record highs. I thought I could sleep after Biden was elected. Garland dispelled that hope quickly. So on Sunday the 7th two days after the employment report , I am up at 4AM. I tuned to CNN . They ran a story I thought was about the fantastic employment report that quickly turned to “but this may not be good for Biden”. And then for the next 8 minutes of perhaps a 10 minute segment diverted to the”oh but inflation”story.
I will say this again !!!! when Reagan declared morning in America inflation was 4.3% not 3.5% as now. Un-employment was still at 7.8% not 3.8% as now . Mortgage rates were at 13% not 7%. Biden compared to the Reagan administration should be declared the second coming by the media.
But it gets worse. As I pointed out by November of 2021 and several times since on this Blog and elsewhere. The media was hyping inflation beyond any reality. The National price of Gas before Putin was $3.21 a gallon as people went back to living their lives after Vaccinations and Oil fields had not fully opened!!!!!. Yet the NY Times , CNN and PBS found people who used a 1000 gallons of milk or Gas a week to highlight the impacts of inflation . Worse the Picture in the NY Times on line was of a station that had to be in the Pacific off the Coast of California with gas at $5.99. As their own writer Niel Irwin pointed out the price of Gas was CHEAPER than it was for 4 whole years from 2011 till 2014 when the Euro crisis tanked oil prices. Pointed out that workers were working significantly fewer hours to fill that tank than in 2011-14 when the National Average never went below $3.60 and went as high as $3.90.
So imagine me waking up two Sundays ago to see the picture on that CNN segment with gas prices at $5.39 a gallon . The National Price was $3.50 . I had paid $303 a gallon in Trumplandia Long Island (Commack ) on the Friday before. I had paid $3.13 a gallon in Hicksville LI to fill my wife’s car the day before the Employment report . I rewound the TV and paused the TV to snap a picture of the $5.39 cent gas on my cell phone. The following Thursday I filled up in Elmont Long Island at an Exxon station cash or credit $3.15. Long Island is not Texas it has new Wind Mills going up , not oil wells and refineries. The inflation report that rattled Wall Street last week was a whopping 3.5% up 2/10ths from its recent lows in December of 2023 . Not exactly historically high and food inflation was 1.2% year over year .
But again the other day Niel Irwin now writing for Axios (?) came to the rescue with an interesting tidbit. This gets a little nerdy. As Krugman points out rents are responsible for 1/3 of the Consumer price index. The US Labor Department computes rents with a factor no or few other Foriegn Economies do “Owner Equivalent Rent”. Something that does not exist in the real world and no body ever actually pays. It is what you would have to pay to rent your own home. If you had to rent it. But I don’t rent my own house I own it (and the mortgage is free and clear ). Neil Irwin pointed out that back in January the BLS changed the way it computes this fictional cost. It added 5% more single family homes and thus 5% fewer less expensive multi family homes and condos to the mix. As detailed in an Email from the Bureau of Labor Statistics that soon got deleted. Now this may be a perfectly legitimate statistical change from their view point . But it is like declaring Ketchup a vegetable . Forcing you to compare apples to oranges.
Rent increases across the Nation have moderated significantly . “BLS data on rents for new tenants out today(4/17) show they rose just 0.4% over the last four quarters, marking the slowest pace of advance since 2010. The largest and most important component of the consumer price index is likely soon to follow them lower.” Dean Baker WELL MORE BAD NEWS FOR BIDEN