Fake News In 3…2…1

I understand completely why that recent poll about “trust in the media” came out so abysmally bad. Basically nobody trusts the media to tell the truth. You are wise to question everything they say.

The narrative in the media of course is anti-Republican. One of the Republican “talking points,” or theories if you will, is that the reason there is a labor shortage in the country is due to the overly generous and continuing federal unemployment benefits passed in the CARES Act. Take those away they propose and people will need to go back to work.

The states that have done away with expanded benefits have only been at it for a short time, but the media was quick to jump in and say “see, we told you it wouldn’t work!” Well, except their own article pretty much belies that. This little gem from our friends at Reuters was particularly hilarious:

https://www.yahoo.com/finance/news/u-states-ending-federal-unemployment-184409657.html

Let’s start with the headline: “US States ending federal unemployment benefit saw no clear job gains.”

So we are fake right off the bat – it isn’t about job GAINS, it’s about existing jobs being filled. There are plenty of jobs, it’s the people to fill them that we need.

Then, they admit in the very first sentence that well, maybe this did work: “U.S. states putting an early end to federal unemployment benefits saw a larger jump in local labor supply in June than those planning to maintain the $300 weekly supplement until early September.”

But then they are clear to point out that there is “no clear sign it led to significantly more hiring.” Of course there was no “clear sign” that it didn’t either. Just admit it – people who are no longer on the government handout needed to get a job. And the supply of labor grew.

They continue, however, to downplay any gain in labor supply: “We find only a marginal effect” of the benefit reductions on labor supply and employment, wrote Gregory Daco, chief U.S. economist at Oxford Economics. “As such, benefits discontinuation may end up doing more bad on the personal income ledger than good on the employment ledger of the economy.” Really? Taking money away from people will hurt their “personal income ledger?” No shit. Then one paragraph later, they contradict that statement:

“Continuing claims for unemployment insurance are dropping faster in the states ending benefits, a sign that people may be moving into jobs.” Yeah. May be.

Are the generous government handouts the only reason we have a labor shortage? Of course not. Is it a big part of the problem – of course it is. Just admit it and let’s get back to work.