THE AMERICAN PRESS CORPS IS WROSE THAN HILTER!!!11!!

Not really. But the media death spiral watch continues, led by the Politico.

You remember Paul Krugman's joke--that if Bush said the world was flat, reporters would write "opinions on shape of earth differ"?

Now we have Mike Allen and Jonathan Martin of the Politico encountering McCain saying "the earth is flat." And what do they do? They agree:

Exclusive: McCain to unveil more economic policies - Mike Allen and Jonathan Martin: As part of a plan to reinvigorate his flagging campaign, Sen. John McCain (R-Ariz.) is considering additional economic measures aimed directly at the middle class that are likely to be rolled out this week, campaign officials said. Among the measures being considered are tax cuts – perhaps temporary – for capital gains and dividends, the officials said...

Capital gains and dividend tax cuts are simply not "economic measures aimed directly at the middle class": the middle class doesn't collect capital gains, or dividends, in any material amount. Indeed, that's what makes you middle class--that even though you have a fair or a good income you work for it.

But there is not even a token "some Democrats say that dividend and capital gains tax cuts have no direct effect on the middle class" in ths story. McCain says the earth is flat--and the reporters swallow it whole.

Why oh why can't we have a better press corps?

Comments

[christofay]

Actually, we had that discussion. Greenspan said the world was flat, the press reported it conclusively, our American elite cheered the declaration, and we have lived by the Greenspan rule that the world is flat.

Differing but correct opinions were thoroughly rejected.

Now we have a flat world as the finance system has collapsed.

Rather than blog about the failure of another professional guild, first remove the trunk from the eye of the professional, but clotured, economist class.

[christofay]

The bond vigilantes are back.

Finally in the closing days of the president of the party that wrecked America, the bond vigilantes are back.

They voted down the Paulson plan for papering over the i-banks collapse. They demand something else.

Market averages are still going to go down. Interest rates are going up.

[Daily Shocker]

Don't worry. Justice on this will be witnessed when 60% of the country goes "what the f*** is a capital gains tax?"

I saw the article; read it; re-read it because I thought it was a joke. It's as if John McCain has a disdain for the actual middle class.

And remember, Politico's sole purpose is to present itself as a news organization a cut above the rest. They believe they can achieve this through wild speculation and propaganda induced controversy.

I'm surprised Marc Ambinder doesn't blog there.

[pgl]

But I know one middle class couple that owns stock. So a reduction in the capital gains tax rate must benefit that couple - right? Oh wait, there is that silly long-run government budget constraint that says that this tax cut which also benefits Bill Gates and Warren Buffet must be paid for by raising things like employment taxes. But let's not bother the masses with such silly details when we can listen to that hockey mom from Alaska say 'you betcha'.

[Invigilator]

Do these people forget that Communism had strong appeal for a reason -- lots of reasons? If this doesn't wake them up, there will be a great future for the right young people in neo-Marxism -- yes, in America! (They will call it something else, of course.)

[JoeKool]

Whoa. Remember, John McCain's definition of middle class includes those who make less than $5 million a year. So yes, by that definition, the middle class will be getting a tax cut.

[liberal]

christofay wrote, "Interest rates are going up."

I was just checking out bond fund yields at Vanguard. Their intermediate-term investment-grade fund, which historically has focused on corporate bonds, is yielding 6.85%. WOW. Not sure if the market is pricing in a substantially increased default risk or whether it's just lack of demand. (Vanguard high-yield corporate is yielding 11.44%.)

[Rich]

More erratic, out of touch behavior from McCain.

[Church-lady]

Maybe McCain *really does* think the middle class ends at $4,999,999.00

[rootless-e]

Brad, you liberal types don't understand that tax breaks for the rich cause them to tip more generously and also be inclined to make the investments that are the engine, the axle, the powertrain, and the gasoline of all creative force and innovation in the economy. Without tax breaks for the rich, the Hummer of our Economy stalls out on the roadside, leaving the poor and middle class who run behind hoping to catch discarded Lutèce take out crumbs, disconsolate and directionless. Stop whining and be happy and channel Phil Gramm like the other zombies.

[CarP]

I looked at the Politico report and the top lines were about McCain cutting capital gains and dividends with no analysis about whether or not they were really effective. But, I think the authors were really talking about how this fits in with McCain trying anything to stay in the race. The important lines for me, and for conservatives who will yell about liberal bias, is this.

The McCain team is trying to stave off panic at a time of trouble for
the nation - and for the campaign. He's doing this with an issue that
has tormented him, as he has taken a patchwork approach to addressing
the top issue on voters’ minds.

McCain has careened from stance to stance on the economy, starting
with saying the fundamentals are sound, focusing on earmarks,
applauding new powers for the Treasury Department, then advocating a
bailout for homeowners.

In a matter of weeks, McCain has gone from being a conventional
tax-cutting conservative to a big-government interventionist.

[chimp hater]

McCain and republicans think that the middle class is people that earn between 100 and 250k.

[JMOHR]

Brad:

You Communist Pigs and Socialists just fail to understand the way in which God designed the world.

1. God favors those who accumulate wealth. All others are simply inferior beings who are lazy and fail to pull their own weight.

2. You give more money to the winners. They will further increase their wealth and they will follow the example of the lords and ladies of ancient days by providing the scraps from their dinners to the poor.

3. McCain has the right idea. Do you not understand the theory of "tinkle down" economics?

[Kent]

Reducing the capital gains tax?

Yep. The capital gains tax has definitely been on the minds of all those middle class voters who've been watching their stock portfolios and real estate investments skyrocket over the past few months.

[esther clark]

They bring out the argument that the middle class has billions and billions of dollars invested in the stock market.

Of course they fail to mention that we don't pay taxes on it because its all tied up in IRAs, 401ks, and 403b so we will not benefit from capital gains and dividend tax cuts in any way, shape or form.

[Radio Hussein Head]

Actually it's likely that Allen and Martin (sounds like a comedy team) didn't catch it because they don't understand anything about economics. Nor do most reporters understand much about many of the issues they are spoon-fed by campaigns. They repeat talking points precisely because they have no body of knowledge to counter the spin AND their editors (or, in the case of Politico, lack of editing), don't require them to provide context, just content. Ergo stenography not journalism.

[ThresherK]

McCain has careened from stance to stance on the economy

The Politico got the story and buried the lede on what Ol' Steady Hand At The Tiller says about the economy. Today.

[MrTimbo]

Actually, it could be true that the tax cuts are aimed at the middle class, it's just that the person doing the aiming would have to be really, really stupid.

[Joe Klein's conscience]

Radio Hussein Head:
You do realize that Politico, or as I call it Drudgico, is owned and financed by the far right Albritton family? Look it up. They give a lot of money to Republican Party officials and causes. They are no better than the Moonie Times or the editorial page of the WSJ.

[joewxman]

Actually thanks to the markets there are no capital gains to tax.

[Rick B]

Liberal,

Corporate bonds yielding 6.85% may be factoring in the fact that inflation this year is already running between 5% and 6%. That means corporations at that rate are borrowing essentially for free.

[joewxman]

Actually thanks to the markets there are no capital gains to tax.

[Rick B]

JMOHR,

Have you ever been to New Orleans for the Mardis Gras parades? There is this tradition that the "royalty" riding the floats throw fake jewelry to the masses who line the streets as they roll along.

McCain - from U.S. Naval Royalty - is just keeping the tradition going.

[Mooser]

professional, but clotured, economist class.

At least they follow parlimentary procedure, and never filibuster.

[Rick B]

JMOHR,

Have you ever been to New Orleans for the Mardis Gras parades? There is this tradition that the "royalty" riding the floats throw fake jewelry to the masses who line the streets as they roll along.

McCain - from U.S. Naval Royalty - is just keeping the tradition going.

[Ron Thompson]

Radio Hussein Head and Joe Klein's Conscience,
The lack of knowledge about economics is especially true of Politico, because they made the decision to separate themselves from all the other areas of expertise one normally expects in a news operation, and concentrate exclusively on horserace politics. So they have no one in house with any knowledge about economics, finance, foreign policy, or the law, and can only act as stenographers when campaigns discuss those subjects. Don't blame them for being stupid; blame them for thinking that anyone should take them seriously.

[jimvj]

From the article: "Officials could not say what the package might include because more than 30 ideas have been put in front of McCain during the current crisis, and they said he has to choose what to unveil and when."

Just for laughs, imagine McCain's input to the decision process.
For much bigger laughs, imagine Palin's input.

[Walt]

I was going to write a comment similar to rootless-e's, but less funny. Damn you, rootless-e!

[rootless-e]

I was just checking out bond fund yields at Vanguard. Their intermediate-term investment-grade fund, which historically has focused on corporate bonds, is yielding 6.85%. WOW. Not sure if the market is pricing in a substantially increased default risk or whether it's just lack of demand. (Vanguard high-yield corporate is yielding 11.44%.)

Posted by: liberal | October 12, 2008 at 08:13 AM

their biggest holdings are in financials. if you want to consider GMfinance, citi and morgan "investment grade", please enjoy yourself.