Column of the Day: Thomas Sowell On Media Biz-Econ Bias

One has to marvel at the effectiveness of biased business and economic reporting by the WORMs (Worn-Out Reactionary Media, known to most as The Mainstream Media). The economy grew at an annualized rate of 5.3% in the first quarter (pending final revision in late June), unemployment is down to 4.6%, impressive productivity gains continue, and manufacturing is on a historic tear (more on that later this morning at about 11:00).

The only “weak” number is the growth in new jobs, which came in at 75,000 (net 38,000 after adjustments to previous months) in May. I have “weak” in quotes because of the reduction in the unemployment rate.

I’m (temporarily) at a loss for words to express my frustration that in the face of all of the above, 32% of people still said that we’re in a recession a couple of weeks ago, a statement that is objectively false.

So I’ll bring in Thomas Sowell, the nation’s foremost intellectual, to help me out. Sowell notes that the WORMs have done a very effective job at distorting economic reality, and explains why doing that is so important to them (HT NewsBusters):

Conservatives who point out the declining audience for the big television network newscasts, and declining public trust of the media in general, often under-estimate how much clout the liberal media still have.

For example, while the economy has had near-record highs in growth rates and in the stock market, with near-record lows in unemployment and inflation, polls show that the public thinks the economy is in big trouble. A steady diet of gloom-and-doom spin in the liberal media has worked. The death of media influence has been greatly exaggerated.

More is involved than partisan attempts to undermine the Bush administration. For decades, the liberal media and the intelligentsia have had to struggle mightily against good economic news. Their whole vision of the world — and of themselves — is at stake.

It’s not easy. Even Americans in the bottom 20 percent in income have higher real incomes than in the past and such staples of middle class life as microwave ovens and motor vehicles are now common among “the poor.”

What can the liberal-left do? They can keep pointing out how the bottom 20 percent’s share of the national income is declining.

….. Nor is there anything mysterious or sinister in the fact that the percentage share of the national income going to the bottom 20 percent has declined.

How do most people get income? They work for it. What happens when pay for work goes up? The gap between those who are working and those who are not widens. Most of the people in the bottom 20 percent are not full-time, year-around workers.

There are, in fact, more heads of household who are full-time, year-around workers in the top 5 percent than in the bottom 20 percent.

Given Sowell’s final fact, it’s a miracle that the percentage of income received by the bottom 20% isn’t LOWER. Well, not a miracle; it only shows that despite another tired nostrum of the Left, namely that the economic safety net is being shredded, nothing could be further from the truth. Despite another favorite leftist claim to the contrary, we are a compassionate people. Given the relative weights pulled by those in the top 5%, both in output and in taxes paid, one has to wonder whether the limits to compassion should be nudged just a bit more towards self-reliance.