Media distortion of GDP report

First, if you haven’t read my GDP post below, do that first then come back here.

The media are taking the 5.7% GDP growth figure and running with it. For example, CNN is saying, “Best economic growth in years.” Huh? Meanwhile the Wall Street Journal says, “The economy surged at the end of 2009…” Double huh? The New York Times business section is saying, “U.S. Economy Grew at Fastest Pace in 6 Years Last Quarter.” Triple huh? The Financial Times of London says, “U.S. GDP growth fastest in six years.” Quadruple huh? The Washington Post says, “U.S. economy soars in fourth quarter of 2009.” Quintuple huh? And the L.A. Times says, “GDP leaps 5.7%; 4th quarter growth is fastest in 6 years.” Sextuple huh?

Such propaganda is dangerous and misleading and frankly, a little disgraceful. I think a better headline is: “5.7% GDP best in 6 years, likely one-time result.” That at least lets folks know that there is a reason why that “fastest growth in 6 years” does quite feel so special.

Jason

PS – The WSJ has a funny typo in its GDP headline that says, “…a bigger-than-expected gain driven more by slower inventory liquidation than consumers.” Sounds like consumers were liquidated, doesn’t it?