Wednesday, March 02, 2005

Bury the Good News

Larry Kudlow comments how, when preliminary data for the fourth quarter GDP was a disappointing 3.1%, the New York Times featured it on the front page of the business section with its own dateline. When GDP growth was revised to 3.8%, they buried the story on B4, with a Reuters dateline.
I’m still wondering why the New York Times relegated this good news to the back pages of its business section. After all, on the Friday the report hit, the stock market rallied smartly on word of a stronger-than-expected economy.

But really -- why should I wonder? A big economic gain in 2004 suggests nothing less than a bona fide Bush boom. Not only that, the boom is being propelled in considerable part by the supply-side tax cuts that President Bush and Congress put in place in mid-2003. Since that time the economic recovery rate has roughly doubled. Unemployment has fallen. Stocks have risen. Inflation remains tame. Interest rates remain low. And family wealth is at a record high.

Let me guess: The Bush-bashing New York Times just won’t get honest about America’s economic health and the merits of the Bush policies that have led to such strong economic performance. Even more, the Paul Krugman-influenced Times refuses to concede the economic growth power of lower marginal tax-rate incentives.

It is just like during the Reagan years. As the economy boomed ahead, the MSM kept featuring economic horror stories. Every month when the employment figures were released, and unemployment dropped again, TV news would hunt around to find one of the remaining unemployed and feature the difficulties faced by that family. Every small bit of bad economic news, and every bad interpretation of good news got top billing. Every report on good economic news was followed by "but".

The reason is the same. Lower marginal tax rates, always opposed by the Left, brought about a boom in the Reagan years and are pushing a boom today.


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