New York Times columnist Paul Krugman addressed the cult of balance in the debt debate Friday when he wrote:
News reports portray the parties as equally intransigent; pundits fantasize about some kind of ‘centrist’ uprising as if the problem was too much partisanship on both sides. Some of us have long complained about the cult of ‘balance,’ the insistence on portraying both parties as equally wrong and equally at fault on any issue, never mind the facts. I joked long ago that if one party declared that the earth was flat, the headlines would read “Views Differ on Shape of Planet.”
You can put Campaign Desk in the camp of complainers. We have long argued that the kind of oh-too-typical “he said, she said—differing views on an issue” story has served audiences poorly. It has left them either uninformed about what they should or need to know or unable to sort out the divergent views presented as balance. Is the earth really flat, or is it round, to carry on Krugman’s analogy? The coverage of health care was an example, but so has been coverage of Medicare, Social Security, and Medicaid, and their role—or non-role—in the deficit mess.
Krugman asserts that the cult’s role in what the public sees and hears is no laughing matter. “The cult of balance has played an important role in bringing us to the edge of disaster,” he wrote. I am not going to comment on whether a disaster befalls us now, in the future, or ever. That’s for economists like Krugman to sort out. The press questions he raises are a different matter. Krugman could have carried his balance cult theory one step further. One kind of balance—and a necessary one—has been almost entirely missing from the coverage of these issues. That’s the balance provided by ordinary people affected by changes in Social Security, Medicare, Medicaid, food programs, and whatever else is cutable that the pols have in mind.
CJR continues to point out that the voices of ordinary people have been missing—those who will get smaller COLA increases on their Social Security benefits, or who will have to tough it out until they reach age sixty-seven to get Medicare, or will find their Medigap policy doesn’t cover what it used to. Some in the media have started to report poll results indicating people don’t want these programs cut—not because as a group they are about ruining America, as Robert Samuelson asserts in his Washington Post column headlined “Why are we in this debt fix? It’s the elderly, stupid,” but because they need those programs. A good many are struggling as it is. Even some Tea Partiers aren’t thrilled
by those cuts (pdf).
Perhaps, though, we shouldn’t be worrying about the “he said, she said” balance we all know and don’t love, but the absence of any balance at all. That is, those journos who simply assert what they believe is true with barely a nod to the “he said, she said” stuff. That’s what MSNBC.com senior producer John Schoen produced. “No matter what plan emerges from the debt talks in Washington, future Social Security benefits will be trimmed back,” he wrote. “There’s widespread agreement that the program needs fixing.” And the story went on from there without noting that there are wide differences of opinion on this point.
So there you have it: the flat earth balancers versus those with a pipeline to God. In either case, journalism is the loser.
These journalists/pundits are well paid, well secured, and well connected. They only hear from the like, which is why voices other than these are omitted from the discussion.
They also recognize that the people who will protect their wealth and can challenge their job security are conservatives. Therefore they will protect themselves from saying negative things about conservatives as much as possible, in service to balance, while not observing the same rules for democrats or liberals (which are not the same thing).
The thing I noticed is not talked about often is that the debt is largely a result of falling tax revenues - much of that due to tax cuts:
http://www.mcclatchydc.com/2011/05/05/113759/this-fact-may-not-sit-well-americans.html
And that this situation is paralleled in the states:
http://www.mcclatchydc.com/2011/03/28/111161/states-broke-maybe-they-cut-taxes.html
But the states have two major differences from the federal government.
1) According to wikipedia, every state, except Vermont, has a balanced budget amendment which prevent states from borrowing or getting into debt.
2) Many states have a super majority requirement in order to raise taxes.
Which means every time they pass a tax cut, they have to cut social services because they can't rely on borrowing and they can't raise taxes with 44% of the legislature tea party.
Without federal government transfers and help, the states have to liquify.
Which is why the federal government cuts are going to hit much harder than people expect, they are knocking the federal government IV out of State governments and economies in critical condition. pt 2 to come
#1 Posted by Thimbles, CJR on Mon 1 Aug 2011 at 02:06 PM
But that isn't the important thing, relatively speaking. The important thing is what the tea party, motivated by the Kochs and Norquist and all the little conservative scumbags who write policy papers (don't think we don't see you, American Legislative Exchange Council :
http://www.heartland.org/custom/semod_policybot/pdf/6290.pdf
) are trying to pull.
The last valve to protect social services from mad tax cutters is the federal government's ability to borrow. When these guys close that valve, they will be able to pare down federal government programs - that have been legislated into law - by cutting federal revenues, making it functionally impossible to raise taxes, and sitting back as the programs wither unfunded.
They want to take the state blueprint for government dysfunction and make it national. No one is explaining how these amendments and laws are forcing states to cut services, sell off assets.
(Except for a couple of guys like this:
http://www.rollingstone.com/politics/news/exclusive-excerpt-america-on-sale-from-matt-taibbis-griftopia-20101018
pt 3 in a bit
#2 Posted by Thimbles, CJR on Mon 1 Aug 2011 at 02:19 PM
You want to know how dysfunctional and petty the press is?
Twitter / @markknoller: Deficit deal also has added benefit of further irritating Paul Krugman.
...
This is a professional White House reporter for CBS who sent this appalling tweet. Just what does this say about professional journalism? That these people in the White House briefing room are petty, vacuous dumbasses who are carrying GOP water at every opportunity?
So I certainly don't expect them to get any better at what they do anytime soon. You think Mark Knoller gives a crap about people's Social Security or Medicare, or what cuts to those programs mean for people outside his narrow little world? He doesn't; none of them do. As long as it pissed Krugman off, it's all good! And funny!
#3 Posted by James, CJR on Mon 1 Aug 2011 at 02:27 PM
and the ridiculous Niall Ferguson
http://www.thedailybeast.com/newsweek/2011/02/20/sale-of-the-century.html
)
Nobody is looking at the parallels to other countries which have been pushed into austerity by neo-liberal idiots. Nobody's talking about th further sell off of state assets which will be required now that the Federal government has become contractionary as the states' liabilities expand?
http://www.huffingtonpost.com/2011/07/31/debt-ceiling-deal-_n_914433.html
People are talking about cuts, but they aren't talking about what the cuts will mean to finances that are already shot.
And they sure aren't talking about revenues.
And they aren't talking about the conservative strategy to hobble the federal government like they have the states.
Basically, when it comes to questions of basic economics the heads of many journalists, the political press especially, act as receptacles for air and little more.
#4 Posted by Thimbles, CJR on Mon 1 Aug 2011 at 02:52 PM
"Paul Krugman on Journalistic balance"? What's next, Michael Vick on dog training?
#5 Posted by JLD, CJR on Mon 1 Aug 2011 at 10:39 PM
LOL..
Yeah.. Or maybe Casey Anthony on child care.
Krugman's Nobel Prize award is a perfect example of why communism/liberalism is doomed.
He took his prize money and spent way too much (admittedly) on a new condo in Manhattan that he knew was overpriced... He made it clear that he expected the value of the condo to fall, but that he didn't mind spending too much because it wasn't really his money - he hadn't really earned it. So what the Hell....
Thus, the distinction between market forces in a free economy and market forces in an entitlement economy. Replace "Nobel money" with "gubmint money" and you quickly see most of what's wrong with our economy.
#6 Posted by padikiller, CJR on Tue 2 Aug 2011 at 10:19 AM
"He took his prize money and spent way too much (admittedly) on a new condo in Manhattan that he knew was overpriced... He made it clear that he expected the value of the condo to fall, but that he didn't mind spending too much because it wasn't really his money - he hadn't really earned it. So what the Hell....
Thus, the distinction between market forces in a free economy and market forces in an entitlement economy. "
Sorry but what's the difference between your description of the "communist" economist and a wall street banker again?
Other than that one doesn't use other people's bankruptcy and suffering for personal benefit and the other you seem to have a personal affection for (sociopaths of a feather?), I don't see it.
PS. Matt Taibbi on the "socialists" and the bankers they love:
http://www.rollingstone.com/politics/blogs/taibblog/debt-ceiling-deal-the-democrats-take-a-dive-20110801
#7 Posted by Thimbles, CJR on Tue 2 Aug 2011 at 12:01 PM
Thimbles blithered: "Sorry but what's the difference between your description of the "communist" economist and a wall street banker again?"
padikiller responds: The difference is the big gun the government uses to snatch property in a communist economy, Thimbles.
Communism comes at gunpoint - involuntary wealth transfer through force of law - enforced with violence.
In contrast, profits come through freedom - voluntary payments made by willing participants in a free market transaction.
See? No gun. Better. PERIOD.
Force v. Freedom. Opportunity v. Oppression. Choice v. Constraint.
The difference between the two cases is an important, but entirely uncomplicated distinction. Learn it, live it, love it, pass it on to your underinformed commie/liberal brethren, and the world will be a much better place!
#8 Posted by padikiller, CJR on Tue 2 Aug 2011 at 12:28 PM
See I thought Krugman was spending money which he won as a result of his economics work, I didn't realize that he pulled a gun on Oslo. My bad.
And banks use government guns as much and any communist in America these days, and certainly more than most economists. Guns are just a tool of coercion and with all the hostage taking by bank sponsored political parties and injustices carried out by banks holding badly written contracts and docs in front of a bought off legal system, what was the difference again?
#9 Posted by Thimbles, CJR on Tue 2 Aug 2011 at 03:00 PM
Thimbles blithers off into Liberal La La Land: "And banks use government guns as much and any communist in America these days, and certainly more than most economists"
padikiller responds: Sure they do, Thimbo!..
When Joe Dumbass went into the bank and took out a $500,000 no-money-down ARM on an end unit townhouse.. It was only because he had a gun pointed at his head, right?
Bernie Madoff pulled a gun on Kevin Bacon and emptied his pockets, right?
Geez! These guys will type the silliest things!
And while nobody pointed a gun a Krugman's head to coerce him into spending too much money on his home, the analogy I made had nothing to do with force - only with the difference in they way people treat money that is earned vs. money that if given to them. People are less responsible with money they don't earn - witness Krugman's own admission and behavior.
#10 Posted by padikiller, CJR on Tue 2 Aug 2011 at 03:19 PM
"When Joe Dumbass went into the bank and took out a $500,000 no-money-down ARM on an end unit townhouse.. It was only because he had a gun pointed at his head, right?"
Excuse me, but in this story, the banker gave Mr. Dumbass a whack of money without checking his personal info and likely helping him to falsify it. Then the banker sold the mortgage, or lost the papers, or didn't bother getting Dumbass's Johnny Hancock on the docs, or a dozen other stupid, common place, mistakes during the bubble.
http://theweek.com/article/index/200795/repossession-hell-6-extremely-wrongful-foreclosures
So who is the Dumbass? Oh, it's the guy with the government funded bonus money he got from tanking the global economy! Unearned Income! A rent in economic terms. Prize money.
The kind of stuff we used to tax to fund roads and bridges and the jobs that went with them.
http://michael-hudson.com/2011/01/why-america-had-a-90-income-tax/
But now is more awesome. Nobody funds anything. Sure beats communism.
#11 Posted by Thimbles, CJR on Tue 2 Aug 2011 at 05:08 PM
So where do the bankers with guns come into the picture in your latest fantasy, Thimbo?
Communism = oppression
Capitalism = freedom
It isn't hard.
#12 Posted by padikiller, CJR on Tue 2 Aug 2011 at 07:17 PM
Thimbles and padikiller. Makes you wonder. The strangest routine running on the Internet. Instructive, I am sure.
Commenting all day long will not give you any time to think. Also, you are setting the standards so low that others might get the idea that cjr.org is about little more than this style of talk. But there is no point in saying anything about it, is there?
#13 Posted by Clayton Burns, CJR on Tue 2 Aug 2011 at 08:13 PM
Clay, before I started posting it was padi and the breitbart gang all by themselves bashing cjr without any counter view, without any support.
Whether I'm here or not won't change the amount he contributes, and at least I try to contribute constructively on topics when he's not around.
This is a place for discussion and, unfortunately, the type of discussions he engenders are hostile ones. If you can have the civil discussion with him, by all means cut in.
Absent an exorcism, I don't see your means to success.
#14 Posted by Thimbles, CJR on Wed 3 Aug 2011 at 01:23 AM
Clayton, in the absence of anyone else posting, I am glad to see this rational argument between Thimbles and paidkiller (misspelling intentional), especially since Thimbles wins it hands down. So qwicherbeefing.
#15 Posted by Diane, CJR on Wed 3 Aug 2011 at 09:29 AM
Look Thimbles..
I'm not going easy on the banker who wrote the stupid loan to Joe Dumbass..
But most of the lenders took care of themselves, at taxpayer expense. They issued government-backed loans and they securitized and dumped the bulk of the bad loans as fast as they could. And any of these guys who committed fraud ought to be punished, no question about it. And the stupid ones who wrote loans that weren't backed are every bit as stupid as Joe was.
But where's the gun? Who put a gun to Joe's head to get the deal done?
You made the rather ridiculous claim that there was a gun involved in this transaction somewhere, and all I'm asking you to do is to substantiate this claim.
#16 Posted by padikiller, CJR on Wed 3 Aug 2011 at 11:48 AM
The guns are those the banks call upon to enforce their fraudulent claims. They can be the police or people in the repo industry but the fact of the matter is that the banks are calling the guns out on property that isn't theirs (the home has no mortgage but the bank forecloses anyways), that isn't in default (but the banks claim to have misplaced the paperwork or the payment to claim default), or that was in the process of being renegotiated in good faith by the borrowers before the bank decided it would be better to kick people out and torch the houses.
http://www.bloomberg.com/news/2011-07-27/bank-of-america-donates-then-demolishes-houses-to-get-rid-of-foreclosures.html
If this is freedom, why does it feel so much like slavery.
#17 Posted by Thimbles, CJR on Wed 3 Aug 2011 at 01:45 PM
Absent the monopoly force of govt behind it, a business can not legally commit force or fraud. The Federal Reserve would never get away with its monetary alchemy, or its other force and fraud, without the endorsement and partnership of the U.S. govt. That is corporatism, crony-capitalism, oligopoly, etc., and not free-market capitalism.
#18 Posted by Dan A., CJR on Wed 3 Aug 2011 at 02:45 PM