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Wednesday, June 10, 2009

Perfect record for Bloomberg journalists getting it wrong again!



This time it's Caroline Baum. Check out the piece she wrote entitled, ‘Legacy of Debt’ Gives Fiscal Stimulus Bad Name.

This is the email I sent her:

Are the current generation of Americans poorer than the generation who ran up the debt to fight WWII? That debt was far larger in proportion than the current debt, yet we are NOT poorer. Moreover, the top tax rate from 1946 to 1964 was 91%, then it dropped to 77%, which is still more than twice the current rate, yet the economy grew faster than it did following the Reagan tax cuts of the 1980s.

What you don't seem to understand is, to the extent that government spending adds to output and employment that leads to the creation of the real assets that will be used by future generations. That is known as wealth! This is precisely why our grandparents' "legacy of debt" did not bring us down to a lower standard of living.

Yours is just another example of misinformed journalism, which serves only to propagate economic myth and fallacy. That is the real danger to our heirs.

-Mike Norman
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6 comments:

  1. STFJune 10, 2009 at 9:56 AM

    Well said. Let us know if you get a response.

    Scott

    ReplyDelete
  2. mike normanJune 10, 2009 at 10:28 AM

    I doubt it, but if I do, you just know it will be some arrogant flip-off.

    ReplyDelete
  3. Matt FrankoJune 10, 2009 at 12:03 PM

    Mike

    Here's another beauty, this time from J. Grant this AM.
    I guess he's still not understanding Warren Mosler's Emails!

    Resp,

    ReplyDelete
  4. mike normanJune 10, 2009 at 7:14 PM

    I can't stand Grant. He's an arrogant idiot, but Wall Street reveres him.

    ReplyDelete
  5. Matt FrankoJune 10, 2009 at 11:28 PM

    Mike,
    From your knowledge of the industry, do you think Grant would have to pay CNBC to get on TV like this, with the anchors mentioning his newsletter on air as a form of advertising, or do you think he gets invited on as a well known economic commentator for free programming/content value to CNBC?

    Matt

    ReplyDelete
  6. MortgageAngelJune 11, 2009 at 3:18 AM

    Oh my gosh, this kind of talk used to make me so mad because I believed it was true. And that's when I found this group I'm so glad I'm not like them anymore, thank you, Mike!

    Matt, It's not likely Grant is the one flipping the bill for the exposure. But his rhetoric supports a deep pocketed agenda.

    ReplyDelete