Previous Post: Part 1 -- Evaluating EPI's "Stagnant Wage" Claims

__________________________________________

The first sentence of CNN/Money's Labor Day report entitled "GDP Growth Not Reaching Paychecks" certainly had entertainment value (bold is mine):

The economic expansion that began six years ago has failed to benefit most workers, according to a report from the nonpartisan Economic Policy Institute, released Monday.

Clearly, CNN/Money blindly accepted at face value this description found at EPI's "About" page:

The Economic Policy Institute is a nonprofit, nonpartisan think tank that seeks to broaden the public debate about strategies to achieve a prosperous and fair economy.

Interesting. I can call myself "the world's fastest human," but that doesn't make me that person.

Last week's economic report couldn't have been much rosier. The economy grew at a faster-than-expected rate, faster than any time in over a year. But far from sparking runaway prices, inflation actually moderated.

But that didn't stop the Axis of Gloom, AKA the New York Times and its Beantown subsidiary the Boston Globe from publishing op-ed items this morning finding the cloud on the silver lining. A lugubrious Times editorial laments:

By the end of last week, any lingering hope that the housing downturn would be contained had vanished. As this week begins, signs of contagion seem to be everywhere . . . The fallout of housing-related turmoil is also likely to extend beyond financial markets.

The editorial ends with a call for closer monitoring of hedge funds.

Over at the Globe, liberal economist Robert Kuttner [pictured here] emits a sky-is-falling column "The crash that could come."