and National Media Professions
Responsible to Educate on Important Economic Questions?
Measurement and Bias Variable Measurements
Politicians, Media... use
quickly available data when it suits their purpose,
otherwise, they often chose inappropriate data.
Problems With Economic Measurements Over Time. 5
Kevin Hassett, chair
of the Council of Economic Advisers
believes if you deflated average hourly earnings by the
PCE rather than the CPI,
earnings look a lot better over the last year.
1. Deflating average hourly earnings (AHE)
personal consumption expenditures (PCE)
rather than the consumer price index (CPI)
provides a more appropriate view.
2. Employment Cost Index (ECRI) Shows
Benefits Feeling the Pinch
3. Quintiles 2 and 3 React Poorly to
Lowest Quintile 1 Having Big Gains
Top Quintile Did OK Except for the Very Top.
Need More Data to Judge Effect of 1%.
Many economists are interested in selling their opinion
politicians recently blamed economic journals
for the inability
for economists to community truth.
Publishing and Promotion in Economics: The Tyranny of
the Top Five
Good News on Two
1. A few weeks back,
economist Robert Samulson
wrote about a new study
from the Congressional Budget Office (CBO) that
convinced him, though rising slowly,
over long periods, that income increases are significant.
Average inflation-adjusted household incomes
for the middle fifth rose from $56,400 in 2000 to
$64,700 in 2015, a 15% gain.
An Urban Institute
report by economist Stephen
reaches a similar conclusion.
2. Some Economist
are Acting Responsibly. Are you listening:
Few in Media
Understand the Basic Economics of Political Issues
Distributing Income and