No More Excuses on Jobs

Friday, March 12, 2004
By Paul Krugman

New York Times Op-Ed Columnist

In short, things aren't as bad as they seem; they're worse. But should we blame the Bush administration? Yes — because it refuses to learn from experience. Franklin Roosevelt, in his efforts to combat economic woes, was famously willing to try anything until he found something that worked. George Bush, by contrast, seems determined to try the same thing, over and over again.

NYT
As job growth continues to elude the U.S. economy, we're hearing two main excuses from the Bush administration and its supporters: that the real situation is much better than you're hearing, and that to the extent employment is lagging, it's the result of factors outside the administration's control. But after three years of extravagant promises and dismal results, the time for excuses has passed.

Let's start with the real job situation. A number of readers have asked me about what Marc Racicot, who heads the Bush re-election effort, told Don Imus the other day. He claimed that those miserable job numbers are misleading, and that another survey presents both a more accurate and a much happier story. You can find the same claim all over the right-wing media. But it just isn't so.

It's true that there are two employment surveys, which have been diverging lately. The establishment survey, which asks businesses how many workers they employ, says that 2.4 million jobs have vanished in the last three years. The household survey, which asks individuals whether they have jobs, says that employment has actually risen by 450,000. The administration's supporters, understandably, prefer the second number.

But the experts disagree. According to Alan Greenspan: "I wish I could say the household survey were the more accurate. Everything we've looked at suggests that it's the payroll data which are the series which you have to follow." You may have heard that the establishment survey doesn't count jobs created by new businesses; not so. The bureau knows what it's doing — conservative commentators are raising objections only because they don't like the facts.

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Dan