Dean Baker: The New York Times Wants the Government to Increase the Unemployment Rate

[flpoljunkie]

The New York Times Wants to the Government to Increase the Unemployment Rate

That is presumably the meaning of the statement about the "federal government’s deepening fiscal difficulties." The New York Times may not like the current level of government spending or deficit, but that is the view of the reporter or the editor. It is not an objective fact that the government has "deepening fiscal difficulties."

In fact, the government can borrow long-term money at far lower cost than at any point in the last 50 years. The financial markets obviously do not agree with the NYT's assessment of the government's fiscal situation.

The most obvious effect of reducing the budget deficit right now would be to raise the unemployment rate, slow economic growth, and lower investment, thereby leaving a less productive economy for our children and grandchildren. While some deficit reduction cults may view this as a positive economic path, there are not many economists who would agree with this position.

--Dean Baker

http://prospect.org/csnc/blogs/beat_the_press_archive?month=03&year=2009&base_name=the_new_york_times_wants_to_th

[babylonsister]

1. So people like Sanford and Perry can ignore it? Great thinking. nt

[BeFree]

2. Idiots

If there are more unemployed then there are less tax payers paying taxes.

And more money going out to pay unemployment insurance. Which, btw, is the best way to keep today's economy from flat lining - more money spread around keeps the economy pumping.