European austerity weirdly contradicts conservative values

Eurozone austerity

Eurozone austerity

“If we tighten our belts it will lead to growth,” Rand Paul has said. “Reducing the deficit always makes economies boom,” Paul Ryan has said. So why is this graph showing otherwise?

Of course we have not just heard this from our conservative hero, Rand Paul Ryan. We have also heard this from great intellectuals like Rush Limbaugh and Sean Hannity.  They all tell us the same thing: deep cuts in spending will balance the budget and instantly lead to an enormous explosion in hiring, productivity, GDP, puppies, rainbows, and oral sex.  In other words: it will solve all problems in the world.

Weirdly, the above graph shows that in European countries, there is a negative relationship between the degree of austerity they implemented, and their GDP growth.  More specifically: across Europe, the more dedicated a country was to cuts and austerity, the more their GDP dropped.

WHAT IS WRONG WITH YOU, STUPID GRAPH? DIDN’T YOU GET THE MEMO?

When statistics like these dare to contradict the talking points of our great lord and leader, Rand Paul Ryan, there is only one conclusion we can come to:  the statistics must have a liberal bias!!!

 

graph data source: IMF, World Economic Outlook Database
graph found via: Paul Krugman, New York Times

related article: European unemployment weirdly contradicts conservative values

GDP Wars: Liberals vs Conservatives

A Tale of Two Graphs

A Tale of Two GraphsThese two graphs that present exactly the same data. Yet it should be easy to see that one of these shows the Enlightened Truth, and the other one has Liberal Bias.

Both of these graphs show changes in Real GDP over time from the early 1990’s  through 2012. The only difference is that the left graph groups the data by Presidential Term of office, and the right graph shows each year’s data separately.

Notice that the left graph, which shows fewer data points by grouping things according to presidential term, very clearly highlights the Conservative Truth that Obama is a terrible anti-American socialist who is destroying America.

The right graph, which shows more data points, just muddies up this conclusion. In fact, the right graph makes it seem like Obama’s term opened with a deep recession that began at the end of Bush’s last term, and that for most of Obama’s term the GDP growth was at the same levels that it was throughout most of Bush’s time in office. This graph does not adequately illustrate that Obama is a socialist Muslim who hates America.

Ladies and gentlemen, the lesson to be learned here is clear: When in doubt, give people less information.

Giving people too much detail is just plain old confusing, and can lead to all sorts of liberal bias!!!

 

graph data source: Bureau of Economic Analysis
graph 1 source
: investors.com
graph 2 source: Eye On Housing

Breitbart.com has liberal bias!

Breitbart.com loves taxes!

Breitbart.com loves taxes!
Breitbart.com needs to get their act together. While all other respectable and unbiased news agencies are reporting that there is no recovery, everything is terrible, and Obama is to blame, Breitbart.com is straying from the path and reporting good economic news.

Look at these disgusting socialist-sounding headlines recently appearing on Breitbart.com:

And check out some of these quotes from the articles:

Two key drivers of growth improved last quarter: Consumer spending increased at a faster pace. And businesses invested more in equipment and software.

In addition, homebuilders are stepping up construction to meet rising demand. That could generate more construction jobs.

And home prices are rising steadily. That tends to make Americans feel wealthier and more likely to spend. Housing could add as much as 1 percentage point to economic growth this year, some economists estimate.

Auto sales reached their highest level in five years in 2012 and are expected to keep growing this year. That’s boosting production and hiring at U.S. automakers and their suppliers.

Some recent signs suggest that the job market is holding steady and may even improve a bit. The average number of people seeking unemployment aid each week in the past month is near a four-year low.

WHAT THE HELL IS WRONG WITH YOU, BREITBART.COM??

 

Breitbart.com is LIBERAL BIASWhat originally started as a good, solid, Jesus-loving, xenophobic, union-bashing organization has clearly become infiltrated with some kind of liberal conspiracy or plot or disease or something.

So, just in case you have been tainted by reading their misleading headlines, let me cleanse your brain with a reminder of the cuddly and comforting conservative truth.

Bill O’Reilly, who is always right about everything, was doing an interview with some left-wing lunatic. Here you can hear O’Reilly explaining calmly and rationally all of the facts: the economy is not improving, it is bad, there is no recovery, it is all the president’s fault, and the 60% of people who like the president are therefore obviously morons and left-wing loons:

How can Breitbart.com disagree with this obvious wisdom? It is clear that, despite their occasionally racist headlines, Breitbart.com must be LIBERAL!!!!

We have added the appropriate speech bubble to indicate this fact.

Liberal statistics predict no effect of tax cuts on economic growth

Top tax rates and average growth

Earlier this week, we reported that liberal statistics were refusing to show that tax hikes destroy the stock market. Well, they are at it again: this time, statistics are maliciously showing that cutting taxes does not lead to economic growth!

This graph shows countries that have implemented policies of cutting the top marginal tax rates over the 30 or so years.  It compares the amount of the tax cut with the percentage of of GDP growth arising after the tax cut.

Now, any good conservative knows that more tax cuts for the rich always, always, always lead to more economic growth no matter what.  That’s just intuitively obvious, and we hear it on Fox News over and over again, therefore it cannot be wrong.

SO WHAT’S WRONG WITH THESE DUMB COMMUNIST STATISTICS?

Somehow, this graph is showing that there is no relationship between the size of the tax cut on the top income earners, and the amount of GDP growth that follows!

One of two things is possible: either tax cuts on top income earners really don’t have much of an effect on economic growth compared to the wide variety of other things that can impact a country’s economy…… or, these statistics are simply skewed by some kind of mysterious liberal bias!!!

 

graph data source: Piketty, Thomas, Emmanuel Saez, and Stefanie Stantcheva (2011), “Optimal Taxation of Top Labor Incomes: A Tale of Three Elasticities“, CEPR Discussion Paper 8675, December.
graph found via: voxeu.org