Stephen Moore (Heritage, of Course) Can't Even Cherry-Pick Data Right: Live from the Roasterie CCXXVII: July 28, 2014
Ken Thomas: Middle Class Political Economist: Stephen Moore (Heritage, of course) can't even get his cherry-picked data right: "If you have had the stomach to read the malarkey that the Heritage Foundation puts out...
...you have no doubt noticed that many of their publications are, well, fact-challenged.... Today, I turn from Obamacare godfather Stuart Butler to the new Heritage chief economist, Stephen Moore.... SantaFeMarie sums up the sordid story of Moore's July 7 column in the Kansas City Star where, trying to defend himself and Arthur Laffer from the well-deserved ire of Paul Krugman, he claims that 0/low-tax states have seen better job growth than high-tax states. In the original article, he wrote:
No-income-tax Texas gained 1 million jobs over the last five years, California, with its 13 percent tax rate, managed to lose jobs. Oops. Florida gained hundreds of thousands of jobs while New York lost jobs. Oops.
I hope you're sitting down.
Although this article was written in July 2014 (and the original version, in Investors Business Daily, appeared July 2), the "last five years" Moore is referring to are: December 2007, the first month of the recession, to December 2012.... He didn't use that 16 or 17 months' worth of data.... As Star editorial writer Yael T. Abouhalkah (who has long covered everything from fiscal policy to tax increment financing) points out, since Moore's ending date of December 2012, California has added 541,000 jobs, while Texas has an additional 523,400. "So, high taxes are good?" he quipped.... Within Moore's chosen "last five years," he still managed to misstate job performance by over 1.2 million jobs. #2: Texas did not gain "1 million jobs," but only 497,400 (off by 502,600). #3: Florida did not gain "hundreds of thousands of jobs," but lost 461,500, just 30,000 less than the much large California economy (off by at least 661,000). #4: And New York did not lose jobs at all, but added 75,900 (off by 75,900, being generous).
On July 24, the Star published a corrected version of Moore's article which, according to Abouhalkah, Moore signed off on. Moore does not acknowledge that the corrections destroy his argument. On Friday afternoon, July 25, I sent a contact form to the editors at Investors Business Daily asking if we could expect a similar correction there. I'll keep you posted.