It seems that Congress has become obsessed with our budget deficit. We all can agree that in the long-term, US debt is indeed a very serious issue. What we can’t all agree on is what to do to reduce it, and more important, WHEN to take steps to reduce the deficit. All the economists I trust are insistent that reducing the deficit during a Recession will only prolong it and may turn it into a Depression. Robert Reich in particular has proven to me that there is no way to simultaneously reduce the deficit AND create jobs. Two things reduce deficits– income (through taxes), and less spending (cut programs).
What creates income? Jobs and exports. What creates jobs and doesn’t increase the deficit? Nothing. Geithner and Bernanke BOTH said deficits are less urgent than job creation.
And the public seems to get that:
Job creation trumps deficit reduction in poll (Reuters)
61 percent say tax the rich to fix budget deficit
http://www.rawstory.com/rs/2011/01/tax-rich-fix-budget-deficit/
So I am wondering how this obsession with immediate deficit reduction became so omnipresent. It is obviously a Right-wing talking point and issue, and I assumed that the corporate press had a hand in ginning up this issue. Deficits are more important than jobs if you are a corporation. Businesses like the recession—They can hire fewer workers for less salary and work them longer, making bigger and bigger profits. Businesses don’t like deficits because their dollars are deflated = lower profits. So the corporate media keeps pressing deficit reduction. Or does it?
Just for the heck of it, I took a completely unscientific study today and looked at the major news outlets— ones most people see and read. I omitted radio, internet and blog news sites, and all cable news except for Fox. The following are stories that are about the deficit or related to it from the last few months only:
TELEVISION NEWS:
ABC News
Tea Party to Washington: ‘Pain Should Be Shared by Everyone’
World News 12/01: Deficit Commission’s Plan
World News: Overhauling the Tax System
CBS News
America’s Crumbling Roads and Bridges
NBC News
Pentagon anticipates $78B in budget cuts
[Their site is too hard to navigate to see all stories on Nightly News.]
Fox “News”
1554 videos alone!
Newspapers:
Arizona
President Obama likely to focus on deficit
Social Security, mortgage breaks ideas for slashing U.S. deficit
Barack Obama’s deficit panel not able to pass plan
Deficit plan eases stance on taxes, Social Security
New deficit plan still eyes Social Security trims
Tough fixes on the table for taming U.S. deficit
Obama freezing federal worker pay to cut deficit
Cutting U.S. deficit will hurt, panel warns
Q&A: What you should know about budget deficit
Gates plans to cut $78B from Pentagon budget
CBO: Health care repeal would increase deficit
Dems say GOP exempting $1 trillion from deficit
House cuts its own budget by 5 percent
House GOP to Obama: Join us in cutting spending
California
Pentagon plans to freeze ballooning budget, forcing military to shrink the Army, Marines
Challenging Obama, Speaker Boehner says spending cuts must accompany any debt limit increase
Cost of health care repeal put at $230 billion
Democrats accuse House Republicans of rules that exempt $1 trillion from deficit calculations
Treasury secretary warns Congress that failure to raise $14.3 trillion debt could affect jobs
PROMISES, PROMISES: A few Republican pledges meet reality at dawn of House control
Democrats accuse House Republicans of rules that exempt $1 trillion from deficit calculations
Colorado
Editorial: Pressure grows as boomers age
Dems say GOP exempting $1 trillion from deficit
CBO: Health care repeal would increase deficit
House cuts its own budget by 5 percent
Dems say GOP exempting $1 trillion from deficit
| PROMISES, PROMISES: GOP drops some out of the gate |
Congress unlikely to extend hand to ailing states
Florida
Dems say GOP exempting $1 trillion from deficit
Spending showdowns will test new Congress leaders
Supreme Court to cut costs to fight deficit
Defense Secretary Robert Gates to cut $78 billion from the Pentagon budget in next 5 years
Challenging Obama, Speaker Boehner says spending cuts must accompany any debt limit increase
Congress’ budget experts say health care repeal would add to deficit; GOP disagrees
Democrats accuse House Republicans of rules that exempt $1 trillion from deficit calculations
Treasury secretary warns Congress that failure to raise $14.3 trillion debt could affect jobs
PROMISES, PROMISES: A few Republican pledges meet reality at dawn of House control
GOP takeover in Congress means states will have to count on less federal help with deficits
Gates seeks to shift Pentagon spending and avoid cuts, as Tea Party activists arrive on Hill
Roads don’t pay for themselves, study says
Georgia
Bush’s deficits vs. Obama’s deficits, in one graph | Kyle Wingfield
House Republicans challenge Obama on debt limit
CBO: Health care repeal would increase deficit
Dems say GOP exempting $1 trillion from deficit
The profoundly unconservative, Big Government GOP
GOP House has already abandoned its new rules
PROMISES, PROMISES: GOP drops some out of the gate
Your Medicare taxes won’t cover what you’ll cost
The defining struggle of 2011 will be within the GOP
In fixing budget, be unfair to boomers
Illinois
New Congress must face deficit
White House Official: Obama to freeze pay for fed workers
Republicans about to show true colors
Spending cuts, tax reform necessary
Belt-tightening now, to spend more later
Indiana
Cutting deficit may spread pain around
Forget naysayers and attack deficit
Time to commit to deficit reduction
Unemployment vs. deficit: mountains vs. molehills
Where were tea partiers during Bush deficit spending
No howling yet over Obama’s deficits
Bayh and McCain offer idea to attack deficit
Iowa
Repeal health reform law? Preposterous
Politicians have set wrong priorities
U.S. must control federal spending
Branstad budget briefing: We need ‘shared sacrifice
Guest column: Don’t be fooled into weakening Social Security
Money woes threaten food safety bill
Americans to blame for the deficit denial
Social Security made a promise to seniors
Blame Republicans for the national debt
Massachusetts
Dems say GOP exempting $1 trillion from deficit
Growing deficits have states looking to curb labor unions’ power
GOP takes control of the House, overhauls the rules
Michigan
Dems say GOP exempting $1 trillion from deficit
Fed’s tax deal based on myths by Republicans and Democrats
Deficit plan by White House would cut deep
Deficit commission can’t agree on how to solve problem
Congress can’t lecture on frugality
Government: Taxpayers make $12B on Citigroup bailout
Deficit panel lays out bold ideas
Minnesota
Congress’ budget experts say health care repeal would add to deficit; GOP disagrees
Democrats accuse House Republicans of rules that exempt $1 trillion from deficit calculations
GOP takeover in Congress means states will have to count on less federal help with deficits
Koch: A ‘laser focus’ on deficit
Obama to focus on nation’s debt, deficit in January State of the Union address
SPIN METER: Pain-free tax cut deal doesn’t foretell Obama, GOP cooperation on cutting deficit
Paul Krugman: Let’s unfold Paul Ryan’s map, see where it really leads
Ohio
Obama urges bipartisan effort on soaring deficits
Proposal calls for cutting deficits by raising retirement age and …
Obama unveils $3.83 trillion budget with massive deficits …
Obama warns against G-20 pledge to cut deficits
Comments on Proposal calls for cutting deficits by raising …
President’s upcoming tax-cut decisions made more complicated by …November federal budget deficit highest on record
Pennsylvania
Dems say GOP exempting $1 trillion from deficit | AP | 01/06 …
Deficit cutters take aim at the tax break for health insurance …
Back Channels: Paul Ryan’s map deserves a look …
Stu Bykofsky: Yo, lefty Dems: Tax deal helps everyone …
Inquirer Editorial: Toward a more perfect union | Philadelphia …
Chasing bogeymen | Say What? | 01/03/2011
House Republicans get right to work
Dan Simpson: No basket of cheer
David Brooks: The best essays of 2010
Texas
November federal budget deficit highest on record
Victor Davis Hanson: In defense of defense
White House panel’s budget plan voted down but may be fodder for …
THE NATIONAL COMMISSION ON FISCAL RESPONSIBILITY AND REFORM
John Cornyn: Wisdom of a balanced budget amendment
Austin Democrat says GOP leaders use ‘trickery’ to patch over …
Robert Kuttner: Losing sight of the big economic picture
Balance of Opinion: What now for GOP?
House GOP takeover will affect how issues vital to Texans are …
CONCLUSION:
It seems a chicken/egg situation: The news outlets report on Congress, and Congress (as well as the White House) talks a lot about the deficit. And Congress reacts to news stories, so I can’t tell how the deficits got more play than jobs creation. But it did.
All in all, I have to say I was surprised at the relatively balanced discussion of deficits in the newspapers. I noticed that the Midwestern papers appeared to have more concern about the federal deficit than the Coasts, but I didn’t really check all the Plains papers. I was going more for the papers in highly populated areas. That could make a significant difference.
One thing that I found worrisome was the reliance on AP in most of the major outlets; almost all used wire stories. I think that could be a problem.
What I really learned from this experience: I watch too much cable!
Related articles
- Deficit Busting Health Repeal (blogs.cqrollcall.com)
- Raise debt limit to avoid national catastrophe, Geithner warns Congress – Washington Post (news.google.com)
- Deficit cutting shouldn’t be main U.S goal – poll (money.cnn.com)
Cher, I hope you realize what a valuable piece of research this is! This must have consumed a lot of time, but — wow — what a resource for the rest of us. Thank you!
Amazing, isn’t it, how the deficit is now getting so much notice? How many of us, during the Dubya administration, raised the issue over and over again of the folly of fighting a(n) (unlawful) war, with the funding being declared “off the books? In the MSM, what did we see/hear? Nada.
Thanks, kes. Shucks– t’weren’t nuthin! Actually, it was pretty easy. The Newseum has a site of ALL the US newspapers’ front pages. Then, I just went to the newspapers’ sites, entered the search term “deficits” and saw all their coverage. Took a few hours, but actually easy-peasy.
Interesting story, Cher. It’s amazing that the deficit did dominate the discussion (over jobs). I do wonder about AP — especially now that so many news sites are just aggregators. Inspired me to look them up for the first time:
Who owns The Associated Press?
The Associated Press is a not-for-profit cooperative, which means it is owned by its 1,500 U.S. daily newspaper members. They elect a board of directors that directs the cooperative.
E’cat, my biggest issue with AP is that its stories are not vetted but are widely distributed. I have seen quite a few that were slanted towards the Right, and some even slated Left. They shouldn’t be. They should be plain facts and without biased wording. I can’t find them now, but I have called AP out for their twisted language more than once. One example recently was their characterization of the tax extensions as “Obama’s tax cuts for the rich.”
Many of the same AP stories.
Washington:
Budget deficit looms largest
http://seattletimes.nwsource.com/html/politics/2008597590_legislature07.html
Dems say GOP exempting $1 trillion from deficit
http://seattletimes.nwsource.com/html/nationworld/2013860775_apusnewcongressdeficits.html
Evaluating pay and benefits for public employees: the big picture
http://seattletimes.nwsource.com/html/opinion/2013865906_cepeda07.html
CBO: Health care repeal would increase deficit
http://tdn.com/news/national/govt-and-politics/article_b696044d-def3-5fcf-b20b-a5f193f2c5fc.html
House Republicans challenge Obama on debt limit
http://tdn.com/news/national/article_ac65e148-ad63-54b4-b5b6-d74c81c61eda.html
Pentagon anticipates $78B in budget cut
http://www.columbian.com/news/2011/jan/06/pentagon-anticipates-78b-in-budget-cut/
House cuts its own budget by 5 percent
http://www.columbian.com/news/2011/jan/06/house-cuts-its-own-budget-by-5-percent/
Pentagon announces plans to rein in spending
http://tdn.com/news/national/article_19a25346-6e11-595d-9d76-d5226163f81d.html
Fed boss likely to sound more hopeful on economy
http://www.bellinghamherald.com/2011/01/06/1804126/fed-boss-likely-to-sound-more.html#ixzz1AKInaGk0
GOP to Obama: Join us to cut federal spending, more
http://www.spokesman.com/stories/2011/jan/05/gop-to-obama-join-us/
Pentagon announces plans to rein in spending
http://www.thenewstribune.com/apheadlines/nationandworld/index-p2.html
House cuts its own budget by 5 percent
http://www.thenewstribune.com/2011/01/06/1491301/house-cuts-its-own-budget-by-5.html#ixzz1AKLH3yiY
Oregon:
House Republicans challenge Obama on debt limit
http://www.oregonlive.com/newsflash/index.ssf/story/house-republicans-challenge-obama-on-debt-limit/f47cd7e282c74c529f6192e9965545b1
CBO: Health care repeal would increase deficit
http://www.oregonlive.com/newsflash/index.ssf/story/cbo-health-care-repeal-would-increase-deficit/11d4205fb1614b71ac5231d4ceeed5f1
Pentagon plans to rein in spending
http://www.oregonlive.com/newsflash/index.ssf/story/pentagon-plans-to-rein-in-spending/12d6ddf40ddb485ab0bc059ed3133137
And it just gets really redundant and would add little to do more wire stories, just that I found a couple headlines more interesting when they were tweaked.
No need for me to continue. I’m not as good at this as you Cher. And not much luck on finding local columnists talking about national debt, when it generally centered more on city/state debt, naturally.
But, seems as if a point is being pounded away.
[img]http://media.oregonlive.com/ohman_impact/photo/ohman010611jpg-9b77a90fbd5a4aa3.jpg[/img]
What a wonderful post and resource, Cher! Well done!
Bito shared this link here previously, The NY Times’ interactive “You Fix the Budget” page which allows you to try your hand at solving the deficit.
First, if you’re interested, go there and try it yourself:
http://www.nytimes.com/interactive/2010/11/13/weekinreview/deficits-graphic.html
I did solve the deficit but had to make a couple of tough calls, my solution is primarily to cut defense and raise taxes on the wealthy, here was my solution: http://www.nytimes.com/interactive/2010/11/13/weekinreview/deficits-graphic.html?choices=23x005qv
By doing this, it would seem that we could still protect the recovery while eliminating the deficit since having the wealthy pay more taxes has never negatively impacted the economy.
Both could be done if not for the control that the MIC, banks and the wealthy have in Congress.