Dangerfield Economy Gets No Respect
By Mark J. Perry
Sunday, July 2, 2006
No matter how good the
The media have consistently downplayed the turbo-charged
With the same unemployment rates of about 6 percent, it's a "jobless
recovery" according to the
Another example of the media's downplaying of the U.S. economy is its neglect of the history-making news that nine states have set record-low unemployment rates so far in 2006; an additional 15 states are within a percent of their historical low jobless rates. Almost half of all states are at or near their lowest jobless rates in history. We hear nothing about it from the media.
Even though a national unemployment rate of 4.6 percent gets no respect from
the media here, almost any country in
It's been more than a quarter century since
Where are the stories about the more than 5.2 million
And what about the dire warnings of the "2003 tax cuts for the rich" that the media trumpeted so loudly several years ago? Where are the reports today about the explosion in tax revenues generated by the strongest economy in a decade and the increasing share of taxes paid by "the rich?"
In the first eight months of the current fiscal year, federal tax receipts have increased by 13 percent, the second-highest rate of growth for that eight-month period in the last 25 years, surpassed only by last year's increase of 15 percent.
Further, the share of taxes paid by the wealthiest 10 percent has increased in each year since the 2003 tax cut, rising from less than 50 percent of all income taxes paid in 2003 to almost 60 percent in 2005.
In other words, the media spin about "tax cuts for the rich" never materialized -- tax revenues have increased significantly and the rich are paying more in taxes. Where are the news stories now about the "tax hike for the rich"?
Even in its worst recession, the
Mark J. Perry is an associate
professor of finance and economics at the