August 26, 2005

#189: But we have the stats


Summer of Our Discontent (08/26/05) is another egregious example of Paul Krugman’s hell-bent partisanship and disregard for facts. His mantra for the last few years has been that economic growth in the U.S. is disappointing and that post-recovery job growth has been slow. But he has been totally wrong about GDP growth and now that jobs are growing nicely also, he has switched to wages:

“American families don't care about G.D.P. They care about whether jobs are available, how much those jobs pay and how that pay compares with the cost of living. And recent G.D.P. growth has failed to produce exceptional gains in employment, while wages for most workers haven't kept up with inflation."

Oops. Wrong again. As the following Bureau of Labor Statistics table makes clear, wages are more than keeping up with inflation in all sectors of the economy as of the 1st quarter of 2005. The only possibilities for explaining Krugman’s column are that he doesn’t know any of this (incompetence) or that he is a flat out liar. We vote for the former. He is too ideologically hidebound to bother with facts anymore.

BLS Wages Chart

[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. ]

Posted by John Weidner at August 26, 2005 7:56 AM
Weblog by John Weidner