Covering the Economy: Readings for February 7, 2006
Douglas Holz-Eakin Lectures the Politicians

Who Does Reuters Write For?

Matthew Yglesias thinks he detects overclass media bias:

TPMCafe || Overclass Media Bias : Reuters: "Average hourly earnings rose to $16.41 in January from $16.34 in December. In the 12 months through January, earnings have risen by 3.3 percent, the largest for any 12-month period in nearly three years, since February 2003." I can think of a few things one might want to follow that up with. Perhaps one would observe that this will boost the Republican Party's contention that after some troubles the economy is back on track. Or maybe one would observe that despite this bit of good news, wage growth throughout this recovery has been pathetic by historical standards notwithstanding strong profit growth.

Or maybe a quick and easy "hooray!" would be in order.

But no: "The wage data is likely to fan concerns that steady job growth is pushing up demands for wage rises and that could help foster broader inflation." If your wages had been slowly dropping for years and just recently started inching back up, I doubt this would be your primary worry.

Ah. You see, Reuters writes for bond traders. When the Fed raises interest rates, the value of the bonds they hold go down. So anything, anything at all that threatens to raise inflation and so induce the Fed to raise interest rates will be reported as bad news.