NEW! CalculatedRisk Newsletter on Real Estate (Ad Free) Read it here.

Wednesday, July 27, 2005

Bernanke's Bunkum

by Calculated Risk on 7/27/2005 06:02:00 PM

Dr. Thoma excerpts from Bernanke's commentary in the WSJ. Clearly Bernanke has been drinking the Bush Administration Kool-Aid.

How can anyone claim the Bush Administration has been pursuing "good economic policies" with respect to the budget deficit? That is outlandish.

And on jobs, I've cut the Bush Administration slack. But there is a difference between "cutting them slack" and giving them credit - The Bush Administration deserves no credit on jobs! Since Bush has taken office there have been a total of 161 thousand non-farm private sector jobs created. That is the worst net job creation performance in over 70 years.

The entire commentary is bunkum. But instead of correcting each of Bernanke's false assertions, I've found the template for his talking points:

No Congress of the United States ever assembled, on surveying the state of the Union, has met with a more pleasing prospect than that which appears at the present time. In the domestic field there is tranquillity and contentment, harmonious relations between management and wage earner, freedom from industrial strife, and the highest record of years of prosperity.
Calvin Coolidge, State of the Union Address, December 4, 1928

Bernanke is now channeling Coolidge's monument to economic shortsightedness.