According to CNN’s Bill Schneider, Americans, hungry for change, have no problem with tax increasing Democrats. During Tuesday’s "Situation Room," the veteran reporter described a new poll that, according to him, demonstrated the confidence Americans have for the new Democratic majority. In the segment, he dismissed one of President Bush’s warnings this way:

Bill Schneider: "Despite President Bush's dire warnings, people don't think congressional Democrats will do anything to weaken national security. President Bush also warned-"

George Bush: "The Democrats are going to raise your taxes. No, I know they don't want you to know it."

Schneider: "Guess what? People know it but they voted for the Democrats anyway. Which means they must really want change. In the ‘USA Today’/Gallup poll, the number of Americans who call themselves Republicans is sharply down. But the number of Democrats hardly changed. More people are calling themselves independents. They're waiting to see what the Democrats deliver."



Item from Bloomberg:

Rubin Urges Democrats to Raise Taxes to Reverse Budget Deficit



So this week’s Time magazine has declared an end to Ronald Reagan’s conservative revolution? It wouldn’t be the first time — the fortune tellers at Time also saw the end of the “bankrupt” Reagan era back in 1993, after novice President Bill Clinton pleased Time’s writing staff by passing a budget that raised personal income tax rates and increased the tax on gasoline.


Thanks, Bob Kuttner. You might doubt my sincerity. But really, I mean it. With Nancy AWOL, and Charley Rangel coyly claiming at his age he doesn't buy green bananas let alone speculate what he would do as Way & Means Chairman, perhaps Americans have lost sight of what the Dems have up their sleeve if they get back the majority. So in all sincerity, thanks for telling it like it is.



"American Morning" reporter Ali Velshi insinuated on Tuesday’s show that corporations favor the GOP partly because "Republicans have kept hourly wages" low:



I looked around when I heard someone crying, and there was Pollyanna bawling her eyes out. That's how depressing was the one-two punch of pessimism in Paul Krugman's and Bob Herbert's New York Times pay-to-peruse columns of today.

Just in time for the elections, the pair paint a picture of America so dreary you half-expected the Google logarithm to place Prozac ads on the page. Krugman tries to talk down the economy, while Herbert sees a more deep-seated malaise. Annotated excerpts:

Krugman: "Bursting Bubble Blues"

  • "The housing boom became a bubble . . . the question now is how much pain the bursting bubble will inflict." Guessing Krugman's answer: a lot.
  • "Some say the worst is already over . . . So maybe this is as bad as it gets. But I think the pessimists have a stronger case." Told you so!


The New Republic’s senior editor Jonathan Chait wrote an interesting op-ed on Sunday determined to prove that President Bush’s tax cuts in 2001 and 2003 haven’t resulted in increased tax revenues (hat tip to Dave Pierre), while also attempting to make the case that tax hikes are better fiscal policy. The article’s title was “Bush’s Silly Budget Logic,” which is quite apropos given the fuzzy math and distorted recollection of history employed by the author: “There's no dispute among economists. Conservative, moderate or liberal, every credentialed economist agrees that the Bush tax cuts caused revenues to drop.”

Really? Well, let’s look at some of the facts first, shall we? For instance, according to the historical tables supplied by the Office of Management and Budget, tax receipts in FY 2003 were $1.783 trillion. The most recent estimate for FY 2006 is $2.402 trillion, a 35 percent increase. Simple, right?

Unfortunately, not for Chait who chose to represent an incomplete and misleading picture to his readers:



Those of us that study the economy and how it is reported by the drive-by media are constantly amazed by how those covering financial issues continually misrepresent statistics to advance their agenda. No finer recent example has occurred than on “The Chris Matthews Show” Sunday when the host bemoaned new highs set by the Dow Jones Industrial Average last week as not accurately reflecting what is going on in the economy.

In his final segment, Matthews actually had the nerve to state, “Eighty percent of the workforce finds their paycheck barely keeping up with inflation.” In reality, nothing could be further from the truth, as the Bureau of Labor Statistics just this past Wednesday released data indicating that the average American's real wage after adjusting for inflation has risen by 2.2 percent since September 2005 as reported by NewsBusters.

Matthews also referenced a recent Wall Street Journal poll suggesting:



In his “New Rules” segment on Friday night’s “Real Time”, host Bill Maher strongly attacked some of America’s leading conservatives, as well as right-wing think tanks for having been so wrong in their predictions about the Iraq war.



Shades of Jimmy Carter! 



I was dutifully working my way through Robert Kuttner's Boston Globe column of this morning, Cleaning Up the Mess, on the lookout for some outrageous MSM morsel with which to arouse NewsBusters readers.