Tag: recession

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ideological culture national politics & policies social media

Receding From the Facts

fact check, media, truth, lie

Thesis: we’re entering recession, but the Biden administration disagrees.

For political reasons.

May we discuss?

Sure, here in Common Sense. (We’ve yet to censor or flag ourselves.) Big Tech social media is a different story.

Loath to preside over an officially designated recession, the Biden administration suggests that when you look at all the data in just the right light, it’s “unlikely that the decline in GDP in the first quarter of this year — even if followed by another GDP decline in the second quarter — indicates a recession.”

Others disagree, saying the familiar definition cannot be so summarily dispatched. On Instagram, poster Graham Allen cheekily asked Siri how we know it’s a recession. Her reply: “two consecutive quarters of negative growth.”

Not a sacrosanct indicator, but standard.

Enter the Guardians of Discourse. 

Meta (which owns Facebook and Instagram) has flagged Allen’s post as “false information” and in some cases prevented viewers from seeing it.

The “independent” fact checker on duty was Politifact, which warned Web surfers it just ain’t so that “the White House is now trying to protect Joe Biden by changing the definition of the word recession.”

This is where we’re at. Discussion of political motives at the White House has become so hazardous that the People of the Fact Check must rush to repudiate any intimation that any assiduous politics is going on. It’s all just assiduous data comparison.

Well, reality check: “fact checks” can be biased too.

This is Common Sense. I’m Paul Jacob.

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Accountability folly free trade & free markets general freedom government transparency local leaders moral hazard nannyism porkbarrel politics responsibility too much government

Bailing on Mass Transit

mass transit, metro, cars. low income, recession

Around the country, our major metropolitan transit systems have hit the skids. “Between 2016 and 2017, ridership fell in each of the seven largest transit markets,” the Washington Post informs.

You might guess that the reason for declines in ridership might have something to do with bad planning and poor service. Washington, D.C.’s Metro system, with which I am all-too familiar, is a horror . . . run by people I wouldn’t trust to sweep your driveway much less mine, and certainly not to manage how I get between those (or any other) two locations.

But the Post quotes an urban planning scholar who attributes the decline (in part) “to increased car ownership, particularly among low-income and immigrant populations, who were in a better position to afford cars following the Great Recession.”

This puts planners in a pickle since, he explains, if “low-income people are doing better, getting the ability to move around like everyone else, it’s hard to say that what we should do is get them to remove themselves from their cars and back on trains and buses.”

Shockingly sensible — especially coming from a planning specialist. “Transit systems should deliver quality service to low-income people,” he insists. “But low-income people do not owe us a transit system.”

Well, maybe that’s the problem, this notion that governments “owe” this service to “low-income people.”

After all, web-based services like Uber and Lyft have shown how market innovations provide the best ways to move millions.

This is Common Sense. I’m Paul Jacob.

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Accountability folly free trade & free markets ideological culture media and media people national politics & policies

Next Bubble to Pop?

bubble, Paul Krugman, recession, student loans, debt, folly, David Stockman

There was a great and wondrous moment, a decade and a half ago, when economist Paul Krugman, Nobel Laureate and New York Times’s unregistered shill for the Democratic Party, suggested that what the economy really needed was another housing bubble.

What he wrote, specifically, was this: “To fight this recession, the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do that, as Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble.”

Krugman later reinterpreted that statement in a clever (if not convincingly honest) way. After the subprime loan industry collapsed in 2008, he attributed that bust to financial market malfeasance, not the Fed-inflated bubble we got . . . and that he had previously called for.

Now we are looking at several ready-to-burst bubbles:

  • The student loan debt problem seems scary.
  • The sovereign debt problem is undoubtedly more dangerous and far larger, but is perhaps still able to take on more fake money — all the world’s 1s and 0s have to go somewhere!
  • So the current bets seem to be on a huge auto loan industry bubble, about to pop.

Loan terms have increased in duration, and the average amount new car buyers are financing has jumped over 17 percent in five years. The idea has been “to continually lower monthly payments,” says David Stockman, “so people can get behind the wheels of vehicles they can’t really afford.”*

Which bubble does Krugman favor? I don’t have the stomach to check.

But, be certain, as we play pop goes the bubble, he’ll play pop goes the weasel.

This is Common Sense. I’m Paul Jacob.

 

* Stockman seems to be echoing warnings made by Eric Peters, of Eric Peters Autos.

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too much government

Where the Jobs Are

Sixteen days. The federal government went into shutdown mode for that long, if a soft shutdown, with most services carrying on — and some government bureaus going into overkill mode to stick it to citizens.

But during those 16 axial rotations, some of the things that carried on “business as usual”-wise might surprise you.

Federal job applications, for instance.

“The government is still aggressively hiring,” informs Lily Whiteman. In a fascinating Washington Post article, Annys Shin quotes this author of How to Land a Top-Paying Federal Job to help explain the weird fact that, during the shutdown, the government was bombarded with job applications, and was even advertising a few positions. But, as Whiteman stated, it’s hardly inexplicable. Government is “where the jobs are.”

And, as Shin’s reportage makes clear, this popularity of federal work

reflects the continued weakness of the job market, four years out from the end of the Great Recession, federal hiring experts said. As much as the public sector has been buffeted by turmoil in recent months, it is still seen as a haven from something even more uncertain: the private sector.

The federal government is alive and well and siphoning wealth in large gulps. The best way to spark a sputtering private-sector job recovery isn’t more government, but for Congress to go into a long, long repeal session, and jettison our most burdensome programs, taxes, spending, regulations, and unfulfillable promises.

It’s no wonder the Great Recession is still going on. After all, Big Government is still going on and on and on and on . . .

This is Common Sense. I’m Paul Jacob.