June 1, 2004

#158: Hardly worth mentioning...

P. Krugman

Things are becoming desperate over at Paul Krugman Headquarters. In Dooh Nibor (06/01/04) he takes a week old "leak" from the Office of Management and Budget (OMB) and spins it into yet another "tax cuts for the rich" tirade. The trouble is this memo has already been batted around between the Kerry Campaign and the OMB for days now. It's old news to anybody who has been paying attention. Furthermore, the memo itself turns out to be just a mechanical projection that serves as a starting point for budget analysis. It is not a decision document. Here's how the OMB's J.T. Young put it to Reuters in response to Democratic claims of massive spending cuts.

"This memo is a process document only. It is a routine, normal part of the budget process. It merely allows us to begin the process of putting together a budget... It is not a decision document. While we intend to hold the line on spending and cut the deficit in half over the next five years, it doesn't mean we can't adequately fund our priorities as is done in the president's current budget as well as in his past budgets."
This is the end of the story. There was no story. Only Krugman could get away with column on the cheap like this because his editors at the Times aren't paying attention either.

[The Truth Squad is a group of economists who have long marveled at the writings of Paul Krugman. The Squad Reports are synopses of their discussions. ]

[Me, I'm in favor of "tax cuts for the rich." My campaign slogan will be, "The more you earn, the lower your tax rate!" ]

Posted by John Weidner at June 1, 2004 10:40 AM
Weblog by John Weidner