Dean Baker

The NYT had an article on how the U.S. is likely to wane as a global power, without ever once mentioning the trade deficit. It even quoted Larry Summers, the head of President Obama’s National Economic Council saying: ““How long can the world’s biggest borrower remain the world’s biggest power?” without mentioning the trade deficit. […]

The headline of a WSJ article on the deficit told readers that: “deficit to hit all-time high.” This is not true in any meaningful way. Measured in nominal dollars, the $1.6 trillion deficit is an all-time high, but measured as a share of GDP (the only meaningful measure) the deficit is about 11 percent of […]

Many developing countries have deliberately maintained over-valued currencies. This make imports cheaper for their elites. It also makes military goods cheaper, allowing belligerent leaders the opportunity to be more powerful. The problem with over-valued currencies is that they are not sustainable. They make imports cheaper, pricing domestically produced goods out of the market. They also […]

The country is currently suffering through the worst downturn since the Great Depression, with 15 million people unemployed. That might seem a strange time to introduce a tax credit, on provision of which, would give companies an incentive to hire fewer workers, but that is apparently what President Obama proposes, according to the NYT, although […]

USA Today told readers that spending for the Obama administration’s new jobs tax credit would come from unspent TARP money. Actually, the spending will add to the deficit just like any other spending. The TARP money is budgeted as being returned to the Treasury. It makes no difference whatsoever whether the money is said to […]

The headline of a Post article on the decision to raise the debt ceiling told readers that the new limit was a “record.” Of course every increase in the debt limit is a record. That is why the debt limit is raised, the debt is rising above its prior level. The first sentence continues the […]

Alan Blinder tells NYT readers this morning that thanks to Bernanke’s adept handling of the crisis, the economy recovered much more rapidly than anyone anticipated: “The economy was nearly in free fall during the last quarter of 2008 and the first quarter of 2009, dropping by 5.4 percent and 6.4 percent in real terms, respectively. […]

The Post began an article on Treasury Secretary Timothy Geithner’s political troubles by telling readers that: “When Timothy F. Geithner emerged as the leading candidate for Treasury secretary in late 2008, he privately urged Barack Obama to think twice about whether to hire him. Geithner had been a key architect of the government’s bailout of […]

North Dakota Senator Kent Conrad is threatening to hold up a vote on raising the debt ceiling if the rest of the Senate doesn’t agree to form a deficit commission that goes around normal congressional procedure (and give him a lollipop). If he manages to obstruct the increase in the debt ceiling then the United […]

The NYT had an article discussing President Obama’s plan to set up a commission to propose recommendations for reducing the deficit. At one point the article refers to the debate: “over the nation’s rising debt and its causes and solutions.” There really is not much basis for debate over the cause of the debt. The […]