Author Topic: What happened to the "It's the economy, stupid"?  (Read 8004 times)

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sirs

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What happened to the "It's the economy, stupid"?
« on: October 11, 2006, 09:45:39 PM »
Oh yea, it's a Republican that's President currently
"The worst form of inequality is to try to make unequal things equal." -- Aristotle

sirs

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Re: What happened to the "It's the economy, stupid"?
« Reply #1 on: October 11, 2006, 09:53:28 PM »
Partisan bias in newspapers? A study of headlines says yes

By Kevin A. Hassett and John R. Lott, Jr.

Economists have been puzzled this year by the persistence with which perceptions about the economy have lagged the economic data. For the most recent 12-month period for which we have data, for example, the economy grew almost exactly as fast as it did during the best 12-month period during President Clinton's two terms. But the economic mood of the country has been much different.

It isn't just the economy that influences people's perceptions. In research we just released, we find that media coverage is also an important determinant. We found that newspaper headlines reporting economic news on unemployment, gross domestic product (GDP), retail sales, and durable goods tended to be much more frequently negative when a Republican was in the White House. And this was true even after accounting for the economic numbers on which the stories were based and how those numbers were changing over time.

We also found that positive headlines explained whether people thought that the economy was getting better more than the economic variables themselves. Newspapers are indeed important.

There have, of course, been numerous anecdotal claims of media bias. What has been lacking has been a rigorous scientific study of media bias, and our new paper is an attempt to provide just that.

If we limit ourselves to news coverage of economic data, it is possible to get an objective measure of the news behind the stories. Our research team first collected a list of days that important economic news was released for most papers since 1991 and for four major papers and the Associated Presssince 1985. We then used Nexis, a computer database of news stories that contains information on 389 newspapers, to gather all of the 12,620 headlines that ran in America's newspapers covering economic news stories. We excluded follow-up and feature stories because we wanted to be able to link the headlines directly with the numbers on which they were based.

Headlines are relatively easy to classify since they say things are getting better, worse or mixed. For example, on Jan. 31, the government reported that the real GDP had grown 4 percent in the fourth quarter of 2003. The New York Times covered this, appropriately, as good news, writing the headline, "Economy remained strong in 4th quarter, U.S. reports." At the same time, the Chicago Tribune wrote that "GDP growth disappoints; job worries linger." Headlines are so divergent, it's sometimes hard to believe they are referring to the same event.

Actual economic data explains much about the headlines - but far from everything. We found that the incidence of positive coverage during Republican presidencies was fairly steady - but economic news under President Clinton received by far the most positive coverage. This partisan gap or bias (the difference in positive headlines between Republicans and Democrats for the same underlying economic news) consistently implied that Democrats got between 10 and 20 percentage points more positive headlines.

We also examined individual newspapers. Among the top 10 papers, we found strong evidence that the Associated Press, the Chicago Tribune, the New York Times, and the Washington Post were much more likely to have positive headlines for Democrats even with the same economic news. The New York Post showed no statistically significant difference. The Los Angeles Times did not tend to treat Republicans and Democrats significantly differently.

Even including the Los Angeles Times, Ronald Reagan, a president who presided over one of the most vigorous economies in our history, still received seven percent fewerpositive news stories than Clinton after accounting for the different economic conditions.

What motivates newspapers and their copy editors to pick the headlines that they do is not a question we tried to answer. Whether these motivations are conscious or not, a partisan gap exists, and it helps explain one of this year's biggest economic puzzles. Unfortunately, the recent charges of political bias at CBS may only be a small part of the problem with the news.


http://johnrlott.tripod.com/op-eds/PhillyInqMediaBias.html

"The worst form of inequality is to try to make unequal things equal." -- Aristotle

Plane

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Re: What happened to the "It's the economy, stupid"?
« Reply #2 on: October 11, 2006, 10:01:59 PM »
   Life is loaded with illusions .

    Exceptions are few.

    What we are told first .

    Colors what we see.

Plane

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Re: What happened to the "It's the economy, stupid"?
« Reply #3 on: October 11, 2006, 10:06:47 PM »
WASHINGTON - The federal budget deficit, helped by a gusher of tax revenues, fell to $247.7 billion in 2006, the smallest amount of red ink in four years.

The deficit for the budget year that ended Sept. 30 was 22.3 percent lower than the $318.7 billion imbalance for 2005, handing President Bush an economic bragging point as Republicans go into the final four weeks of a battle for control of Congress.


http://www.msnbc.msn.com/id/15220076/

sirs

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Re: What happened to the "It's the economy, stupid"?
« Reply #4 on: October 11, 2006, 10:32:52 PM »
 
WASHINGTON - The federal budget deficit, helped by a gusher of tax revenues, fell to $247.7 billion in 2006, the smallest amount of red ink in four years.  The deficit for the budget year that ended Sept. 30 was 22.3 percent lower than the $318.7 billion imbalance for 2005, handing President Bush an economic bragging point as Republicans go into the final four weeks of a battle for control of Congress.
http://www.msnbc.msn.com/id/15220076/

Damn Bush and those tax cuts.  And can you believe Unemployment dropped again, now I think it's at 4.6, and that employee wages have gone UP, under his Presidency??  He needs to be run out of town, ruining our economy like that
"The worst form of inequality is to try to make unequal things equal." -- Aristotle

The_Professor

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Re: What happened to the "It's the economy, stupid"?
« Reply #5 on: October 11, 2006, 11:46:00 PM »
The economy is moving right along. Too bad about the whole Iraq debacle. Otherwise, it would be rosy all around.

sirs

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Re: What happened to the "It's the economy, stupid"?
« Reply #6 on: October 12, 2006, 02:07:28 AM »
The economy is moving right along. Too bad about the whole Iraq debacle. Otherwise, it would be rosy all around.

Well, you can't have everything.  Where would you put it?      ;)
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_JS

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Re: What happened to the "It's the economy, stupid"?
« Reply #7 on: October 12, 2006, 09:50:20 AM »
The lowest deficit in four years? Remind me again who was in charge in 2002?

The problem is that the economy is not booming and for most average people it is not going very well at all. See, the problem is with perception as you two indicate. The perception problem is that while some indicators show positive trends, the typical American family sees the economy in a negative light. You all blame the media or some such thing, but that isn't why the poorer and middle classes see the economy in a negative light.

According to a recent USA Today/CNN Poll 55% of Americans with the President's handling of the economy. The thing is that people don't look at national indicators (unless they are truly dismal or remarkable), voters generally look at their own personal economics and there are studies to prove this. So beyond unemployment rate, one has to consider what type of jobs are being created? How has wage inflation kept up with overall inflation? How are retirement plans like 401K's keeping up with overall inflation? Are more retirees having to work now than before?

The deficit has lowered? That has long-term effect and honestly is debatable. The truth is that much of the cost for the prescription drug plan, Afghanistan, and Iraq have yet to be factored in, so I'm certain that you'll see that number adjusted. Even if it isn't, it doesn't really matter to the typical voter because they aren't significantly impacted by the deficit...yet.
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sirs

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Re: What happened to the "It's the economy, stupid"?
« Reply #8 on: October 12, 2006, 11:19:49 AM »
The thing is that people don't look at national indicators (unless they are truly dismal or remarkable), voters generally look at their own personal economics and there are studies to prove this

And the other thing is, I've seen story after story of folks polled who say "they're doing fine", but believe that their neighbor is not.  Which again reinforces the power of the mainscream media, and their ability to push their version of perceptions

The deficit has lowered?

Yes, in half the time that it was predicted by the WH, due in large part to the once again demonstrated tax cuts facilitating increased Fed revenues

Afghanistan, and Iraq have yet to be factored in, so I'm certain that you'll see that number adjusted.

And how are you so certain that it wasn't?  Anything to change the facts of the current economic #'s, right Js?
"The worst form of inequality is to try to make unequal things equal." -- Aristotle

_JS

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Re: What happened to the "It's the economy, stupid"?
« Reply #9 on: October 12, 2006, 11:35:46 AM »
Quote
I've seen story after story of folks polled who say "they're doing fine", but believe that their neighbor is not.

Example?

Quote
And how are you so certain that it wasn't?  Anything to change the facts of the current economic #'s, right Js?

No, because this has been government policy to adjust deficit numbers in mid-year. The federal fiscal year only began on October 1. They don't even have all the reports compiled for last fiscal year. If you know anything about accounting you'll know that not all expenses against last year have even been finalized.

Geez Sirs, not everything is partisan hackery.
I smell something burning, hope it's just my brains.
They're only dropping peppermints and daisy-chains
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   Coat my eyes with butter
   Fill my ears with silver
   Stick my legs in plaster
   Tell me lies about Vietnam.

Amianthus

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Re: What happened to the "It's the economy, stupid"?
« Reply #10 on: October 12, 2006, 12:09:43 PM »
If you know anything about accounting you'll know that not all expenses against last year have even been finalized.

And not all income against last year has been finalized yet, either.
Do not anticipate trouble, or worry about what may never happen. Keep in the sunlight. (Benjamin Franklin)

_JS

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Re: What happened to the "It's the economy, stupid"?
« Reply #11 on: October 12, 2006, 12:38:28 PM »
Quote
And not all income against last year has been finalized yet, either.

True. And note that expenses and revenue can go either up or down before they are finalized.

I'm not exactly sure of the timetable for the Federal Government, but preliminary reports probably haven't run yet for last fiscal year. It will be quite some time before final reports have run.

Any projections for the current year are only rudimentary and based on the budget. Keep in mind that a budget is based on theoretical money (not real money). Making projections is good, but the further out one is from year-end, then the less-accurate it is.

Also, early projections from this administration have historically underestimated the deficit and have not counted the supplementary funding of the conflicts in Afghanistan and Iraq.
I smell something burning, hope it's just my brains.
They're only dropping peppermints and daisy-chains
   So stuff my nose with garlic
   Coat my eyes with butter
   Fill my ears with silver
   Stick my legs in plaster
   Tell me lies about Vietnam.

Amianthus

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Re: What happened to the "It's the economy, stupid"?
« Reply #12 on: October 12, 2006, 01:11:30 PM »
Also, early projections from this administration have historically underestimated the deficit and have not counted the supplementary funding of the conflicts in Afghanistan and Iraq.

And the CBO has historically overestimated the deficit.
Do not anticipate trouble, or worry about what may never happen. Keep in the sunlight. (Benjamin Franklin)

_JS

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Re: What happened to the "It's the economy, stupid"?
« Reply #13 on: October 12, 2006, 01:24:58 PM »
Regardless, I don't think people who vote on economics are going to be overly concerned with budget deficit projections.
I smell something burning, hope it's just my brains.
They're only dropping peppermints and daisy-chains
   So stuff my nose with garlic
   Coat my eyes with butter
   Fill my ears with silver
   Stick my legs in plaster
   Tell me lies about Vietnam.

sirs

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Re: What happened to the "It's the economy, stupid"?
« Reply #14 on: October 12, 2006, 01:31:35 PM »
Regardless, I don't think people who vote on economics are going to be overly concerned with budget deficit projections.

Unless the perception being pushed is that of out of control deficits, as far as the eye can see, and, what was that Senator Kerry, Senator Clinton?, "Worst economy since Herbert Hoover"?  All provied with zip correction or follow-up responses by the media in demonstrating the postive economic #'s under this GOP President
"The worst form of inequality is to try to make unequal things equal." -- Aristotle