Is it ever possible for the News Media to Report "Good" economic news without a "But"? At least not when there is a Republican administration

From Reuters

The unemployment rate fell in October to 4.4 percent from 4.6 percent in September. It was the lowest unemployment rate since 4.3 percent in May 2001 and was likely to fan concerns that labor markets are growing tight and could contribute to inflation pressures. . . . .

From the AP via Foxnews:

Workers' average hourly earnings climbed to $16.91 in October, a sizable 0.4 percent increase from September. That increase was bigger than the 0.3 percent rise economists were expecting. Over the last 12 months, wages grew by 3.9 percent.

Growth in wages is good for workers, but a rapid and sustained advance makes economists fret about inflation flaring up. That's not good for the economy or workers' pocketbooks, ultimately, because inflation can eat into everybody's buying power. . . . .

Have any of these guys ever heard about the monetarism? If the money supply and output are constant constant and some prices are rising, other prices will be going down and the overall price level will be unchanged. In this case wages are probably rising since productivity is rising, so if the money supply was constant, prices would fall. Obviously the money supply is rising, but it is the increase in the money supply (not the increased productivity of labor) that is causing prices to rise.

We must really be in the election silly season. From the New York TImes (this is so biased):

Jobs Statistics Report Offer Fuel for Both Sides

Published: November 3, 2006
Businesses reported adding just 92,000 workers to their payrolls in October, a sign that job growth is starting to slow, the Labor Department reported today. But the department also reported, based on its monthly survey of households, that the unemployment rate fell to 4.4 percent, a five-year low.

The pace of job creation fell short even of the 138,000-a-month average pace of the last six months, the statistics show. Economists say that at least 150,000 new jobs are needed every month just to keep up with population growth.. . . .

Of course the New York Times failed to emphasize this (from AP):

Employers added 148,000 jobs in September, versus the 51,000 first reported. Payrolls grew by a robust 230,000 in August, stronger than the 188,000 slots previously recorded. . . . .

I guess that it would undercut their story line.


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