How The Media As Well As Politicians Dumb Downward Economics

I’m all for economists improving their communications skills, in addition to at that topographic point are or therefore practiced initiatives currently around. But all that is every bit goose egg when politicians in addition to the media maintain promoting bad economics.

One of the most obvious is the focus on jobs rather than output. There are or therefore circumstances were this makes sense. The most obvious is a recession, where unemployment is high in addition to the focus of policy should endure getting unemployment down. Another is when thinking well-nigh the geographical distribution of employment. But at times when unemployment is low, the focus on jobs rather than output tin endure really misleading for i uncomplicated reason. We tin easily create jobs past times having technological regress.

What has happened inward the Great Britain since a twelvemonth afterward austerity was imposed is that productivity, measured inward price of output per hr worked or output per worker, has hardly increased. Productivity unremarkably rises inward a recovery, in addition to it began to until the middle of 2011, simply nosotros convey seen almost no growth since then. That is terrible news, because it agency that at that topographic point has been no increment inward average living standards: add together inward the Brexit depreciation in addition to existent reward convey fallen substantially.

Yet politicians in addition to newspapers expire along to speak upwardly occupation growth every bit if it was a huge achievement. Here is the Mail from a few days ago.

So many times I convey heard authorities ministers counter criticisms over output growth surgical operation past times talking upwardly occupation growth, in addition to I do non cry upwardly a unmarried occasion where they convey been pulled upwardly amongst the obvious retort ‘so y'all are happy amongst stagnant productivity in addition to falling existent reward then’. [1] Because potent occupation growth coupled amongst weak output growth agency something is really incorrect amongst productivity, in addition to nosotros cannot convey sustained growth inward existent reward in addition to living standards without productivity growth.

You powerfulness facial expression politicians to test in addition to larn away amongst nonsense economic science if they can, in addition to y'all would sure enough facial expression correct fly papers to plough reality upside downward inward an endeavour to protect their precious Brexit. That is why it is therefore of import that political journalists working for the broadcast media know or therefore basic economics, in addition to are prepared to piece of work it to telephone telephone out the distortion of or therefore politicians. Until they do, basic misunderstandings well-nigh uncomplicated economical relationships volition persist.

[1] H5N1 BBC journalist did test once, in addition to got into problem every bit a result, every bit I relate here.