387 How the media sees productivity gains

Over at Tech Central Station, Arnold Kling, on July 12 comments on rising productivity, noting that President Bush hasn’t taken the credit, nor should he, because it takes years for trends and policies to shake out.

“The most likely explanation for the faster productivity growth of recent years is the gradual diffusion and exploitation of computer technology . . . And [It is not usually news because] it takes years for changes in productivity trends to manifest themselves, one quarter's data release is not terribly significant.” And he makes a referral to Virginia Postrel who has written on "operations research."

The news is also ignored because it is positive, he concludes. “The media always prefer economic stories which show America going to hell in a handbasket. In the 1970's, we were supposedly running out of oil. In the 1980's, we were being beaten by Japan. More recently, the media have tried to make the outsourcing phenomenon carry the narrative for the story of gloom and despair. . . the current Administration is unpopular with the media. As much as the media is averse to reporting good news, I think that productivity would receive greater coverage if the big gains were taking place on a Democratic President's watch. The upbeat productivity data would "fit" the story of competent Democratic stewardship of the economy. But it would spoil the narrative of the Bush Administration as bumbling and Hoover-esque to point out that the most fundamental measure of our economic strength is shooting through the roof.”

The only two ads for Kerry I see here in Lakeside are on outsourcing jobs. Neither makes much sense, but they have a lot of appeal for blaming Bush for things he probably has no control over. Especially the ABB crowd.