AP: 'Good Economic News Something of a Mirage'

Photo of Noel Sheppard.
By Noel Sheppard | May 10, 2008 - 16:57 ET

In the past several months, NewsBusters has seriously questioned the reporting of the Associated Press's Jeannine Aversa given her proclivity to misrepresent economic data.

On Saturday, Aversa wrote an opinion piece that fully explained why she sees gloom and doom in every government statistic regardless of whether or not it's warranted.

Here's how Aversa began her analysis entitled "Good Economic News Something of a Mirage" (h/t NB reader R Anthony, emphasis added throughout):

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The unemployment rate drops. Productivity grows. The trade deficit shrinks. Sounds great, right? Not so fast.

Borrowing radio broadcaster Paul Harvey's signature saying: let's hear the rest of the story.

Let's hear the rest of the story?

Jeannine, for the most part, all you ever tell your readers is "the rest of the story." As such, borrowing from the Passover Hagaddah, why should this day be different from all other days?

Some seemingly good economic numbers can be something of a mirage masking weaknesses in the national economy.

Let's take the unemployment rate, which dipped to 5 percent in April, from 5.1 percent in March. .A closer look reveals that the decline in unemployment is not as good as it looks at first blush. The drop came as the number of people holding part-time jobs for economic reasons swelled to 5.2 million in April, up sharply from 4.4 million a year earlier.

The dip in the unemployment rate also occurred as employers cut jobs for the fourth month in a row, pushing up total losses beyond the quarter-million mark — to 260,000. Wages barely grew and workers' hours were trimmed. Taken altogether, these things point to a tepid picture of employment conditions nationwide.

There's a lot here that needs to be addressed. First of all, nobody took last Friday's unemployment announcement as a sign that the economy was doing well. Instead, it was an indication that things might not be as bad as some had thought.

With that as pretext, this "part-time jobs for economic reasons" statistic in my view is a bit of a red herring. After all, don't most people work for economic reasons?

To me, the more important statistic concerning part-time employees that relates to economic strength is the number of such workers that want a full-time job, but have to settle for less. The thinking here is that in a tough labor market, people will have to take part-time jobs because there aren't enough full-time ones to go around.

With that in mind, this number actually decreased last month, and is only 85,000 greater than last year at this time. This hardly suggests a bad labor market.

Another related statistic Aversa conveniently ignored is the number of multiple-job holders which typically increases as the economy worsens. This number stands 216,000 below where it was a year ago.

Speaking of comparing year over year numbers, while Aversa felt it was important to do such with this part-time employees stat, she chose not to with the non-farm payrolls data she referenced by only sharing what's happened the past four months. For some reason, she chose not to inform readers that despite the recent declines, there are still 462,000 more people employed than last year at this time.

Furthermore, as it pertains to the Household Survey, from which the unemployment rate is actually determined, the number of people considered employed rose to an all-time high of 154 million in April, and stands 1.4 million above where it was last year at this time.

As such, Aversa was cherry-picking data from the May 2 Labor Department report in order to present her case that the good economic news is a mirage.

That said, are we out of the woods? Are the good times about to roll?

It's probably way too soon to say that. However, as the recent data has indeed been better than what the gloomy Guses in the media have been predicting, it would be nice if Joyless Jeannine would turn her frown upside down.

Don't hold your breath.

—Noel Sheppard is the Associate Editor of NewsBusters.

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Don't worry Noel, all will change

Right after the November elections. Dem's will point out a sudden new found confidence in the economy due to their candidate being elected.

During this time with political correctness at its zenith, I reserve the right to let you know you're an idiot.

No joy for you

It is important in understanding Joyless (too funny) Jeannine's funk by exploring the lib definition of a mirage;  Mirage - Not seeing the forest for the trees.

Grand Theft Auto IV sells

Grand Theft Auto IV sells $310 Million in two days.

Of course we're in a recession! That's why people have so much free money to spend on stupid video games. /Sarcasm Off

And go to theme parks.

And go to theme parks. Disney profits up way more than expected last quarter.

___________________________________ 

If you can read this, thank a teacher. If it is in English, thank a Soldier. - My barber

economic news

I'm sorry, but ever since President Bush has been in office, the media has been reluctant to report any good news when it comes to the economy.  Any good news is followed by 10 stories of lousy reports.  And it's always anecdotal, some drip who ran up credit card debt because he had to have the latest and greatest.  No one is responsible for his or her actions anymore, the economy just happens to you and you've got to take it in the rear - and it's always "Bush's fault!"  Now, sectors in the economy are having recessions rather than the whole economy having a recession.  I'm blown away with the irresponsiblity of the media.

Great post and excellent

Great post and excellent point.  The media's representation of the economy for most of the past six or seven years has been horrible.  Most of these people have been falling out of their chairs trying to find bad news wherever they can.  Now that it appears the economy is struggling in many ways, not awful mind you just struggling, the media is in a state of euphoria over it.  The economy of the 2000's as been amazingly resilient considering the unprecedented events which have occured this decade--9/11, Katrina, corporate malfeasance (Enron, WolrdCom, etc.).  Why does the media not point out this fact?

Speaking of credit cards...

I know a few people who have full-time jobs and supplement that with a part-time job. Every single one of these people is taking the entire paycheck from their 2nd job to pay off credit cards. The credit cards were run up to create an illusionary lifestyle that they could not support with their current incomes. It caught up to them. They all admit that they were fiscally irresponsible earlier. They have decided to take responsibility for their finances, live within their means and pay off their debt. No more keeping up with the Joneses.  

Ecclesiastes 10:2 - "The heart of the wise inclines to the right, but the heart of the fool to the left."

This is just another example

This is just another example of Newspeak, as practiced by the leftie MSM. Good economic news=bad economic news. Nothing new here.

Appears to me that

Appears to me that Good News = Bad News for Democrats. It appears that success is not good for Democrats, whether it has to do with the War on Terror or on the Economic Health of the US or the world.

Debbie Downer's at it again

Debbie Downer's at it again Noel.

Her momentary clarity of thought one week ago has been purged, possibly assisted by fellow Leftists outraged she would report anything resembling non-DNC talking points.

So much for complimenting her for doing her job in actually reporting almost unbiased news once.

Goes to show, a skink never changes its strips.

RRAM Tough! 

When election is job one.

The media has an important job to do and they're taking it very seriously. No, not informing the public, that's secondary to, what many in the media feel, is their most important job, electing Democrats to Congress and the White House. 

If the Bush economy looks too good, people might question the wisdom of electing Democrats who have vowed to change the whole system around.  If they can paint the economy as bad then, when they get worse because of their policies, they'll continue to blame Bush and telling us it's going to take time to straighten out what they've painted as 8 years of bad economic decisions.   

Democrats: Stuck on Stupid since 2000.

Shame on you Newsbusters

  How are we going to get a socialist elected if we can't lie?

Economic Reporting

Watched the CNN hit piece,"Mortgage Meltdown." Near the end of the program, the host asked,"are we in a recession?" All of the guests stated their pet phrases but not one of the "experts" answered the question!

Jeannine Aversa

Congrats.  It's about time the author of biased reportage is called out by name along with the damning evidence.  Keep it up.