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No Policy Here

15 Feb 2008 01:44 pm

I know this blog has gotten pretty horseracy as this race keeps on going, but I've still got a lot to learn if I want to be a bigtime media player. Yesterday, for example, Peter Slevin and Shailagh Murray did an article for The Washington Post on Barack Obama's economic plan. Well, it was sort of an article about Obama's economic plan. The headline was "Obama's Economic Plan Is A Pitch to the Working Class". Basically, it referred to Obama's economic plan, but didn't say anything about it. "Obama's Economic Plan Calls for Infrastructure Bank"? No. "Obama's Economic Plan Calls for Credit Card Reform?" No.

But that's just the headline. Journalists don't write our own headlines. Maybe if you decide to scan the article you can a taste of what sort of measures were included in Obama's plan. Here's the lede:

Sen. Barack Obama offered a detailed prescription for the ailing U.S. economy Wednesday, answering skeptics who contend he has not matched his inspirational talk with a mastery of policy and targeting voters in crucial primaries in Wisconsin, Ohio and Texas.

Up until the comma, we're doing well here. We learn that Obama offered a detailed plan. But after the comma, we don't learn any of the details. The next six grafs are all about the political context -- Obama's momentum, the looming primaries, Obama's need to expand his appeal to working class voters. In graf eight, John McCain accuses Obama of offering "platitudes." In grafs nine and ten, Obama fires back accusing McCain of flip-flopping on taxes. In graf eleven, Clinton echoes McCain's attacks. In graf twelve, the fact that Obama delivered a speech on the economy gets re-iterated. In graf thirteen, we learn that Obama says he'll pay for the plan by ending the war in Iraq and rolling back tax cuts. In graf fourteen, the Clinton campaign quotes a McCain advisor as calling the plan "plagiarism." Finally, in the fifteenth graf of an article about Obama's economic plan we get something resembling a description of the content of the plan:

The newest element of his proposal was the establishment of a National Infrastructure Reinvestment Bank, which would spend $60 billion over a decade to rebuild deteriorating roads, bridges and waterways. Obama said the spending would generate 2 million new jobs, many of them in a construction industry that has been hard hit by the housing market downturn.

I don't know whether Obama's campaign was helped or hindered by this strange way of covering the plan. Maybe his efforts to make inroads are being stymied since the ideas he was hoping to help him make them are being muffled by focus on the political context. Or maybe his efforts are being boosted, because the details wouldn't really sway people but random chatter about Obama doing detailed, working class stuff is sends the right message. My guess is probably the latter; this is more helpful to Obama than a straightforward description of the infrastructure bank proposals (it would allow the government to account for infrastructure spending as a kind of investment rather than an expense on continuing operations; it's the kind of distinction companies usually make between capital spending and operating expenses) but it's really no good for the country.

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Comments (19)

I think for now Obama is getting generally quite favorable media coverage, so his best option is just to ride out the wave until he knocks Hillary out of the race.

Once things ramp up against McCain, however, he will certainly need to talk about policy as never before. Which is fine, because sooner or later the media will have to come around and realize that he's been offering some very specific and detailed plans all along (as have other Democratic candidates, to their credit) and McCain has just been stuttering and stammering through this thing with seemingly no "strategery" whatsoever.

it would allow the government to account for infrastructure spending as a kind of investment rather than an expense on continuing operations; it's the kind of distinction companies usually make between capital spending and operating expenses

That doesn't make any sense. The main reason companies have to split capex and opex is for tax purposes, and the government doesn't pay taxes (obviously).

Other than a promise to spend more on infrastructure --which is all well and good--I'm not sure what this new entity would amount to.

Shailagh "The Devil" Murray writing a fact free article? Say it ain't so!!!! Very shocked, I am!

Matthew writes "I don't know whether Obama's campaign was helped or hindered by this strange way of covering the plan."

Why would it hurt him? If you want to look in detail at his economic plan, you can look at his website. There is no need for the reporters to give every bitty detail of his economic plan because it's already on his website.

Read Martin Schramm's "The Great American Video Game". This sort of coverage has passed for political coverage for more than 20 years now.

Which type of article do you think captures more eyeballs:

"Obama Offers New Economic Plan"

"Clinton Breaks Down in Tears"

You'll never see good policy analysis when the policy is being debated. However, I have seen some really good policy analysis in the past after the policy has been passed. I can't remember how many times I've seen articles like "______ Passed, Now What?" that dig in deep to all the various ramifications of the new bill or proposition.

So the newspapers obviously have the ability to write these kinds of articles, but for some reason refuse to do so until it is too late for anyone to do anything about it.

Why would it hurt him? If you want to look in detail at his economic plan, you can look at his website. There is no need for the reporters to give every bitty detail of his economic plan because it's already on his website.

Reporters are supposed to provide analysis of policy for people who don't have time to weed through long policy proposals or who want more context than what is provided on a campaign's website. If said reporters aren't qualified to analyze policy - and most of them aren't - then they should consult economists and wonks who *are* qualified to analyze it.

And no, calling a McCain aide for comment doesn't qualify as providing outside analysis.

I think this critique is missing a step. Did the Washington Post publish anything which does mention the policy details? I couldn't find it on a quick check of their site, but the claim can't be that all articles about a new policy must present the actual policy, it has to be that the information should be available somewhere in the paper. It looks to me like you're correct and it's not, but I'm not sure.

Hm, I think Obama should demand that Shaleigh Murray be suspended... after all, this unfairly perpetuates the meme that he's a lightweight on policy...:)

As a longstanding member of the MSM, let me share the dirty little secret of why this type of abysmal coverage continues: The people who cover campaigns are political reporters. What they know, and more importantly, what interests them, is politics. They know very little about policy, and care even less. It would be nice to have an economics reporter write the story on Obama's economic plan, or a health reporter compare the candidates' healthcare plans. It would be smart, too. But that's not the way it works. And so, since the people who cover the candidates see everything in political terms, that's how the stories are written.

One consequence that you didn't mention, but is equally pernicious, is this cynical idea that every idea is politically motivated. Someone doesn't vote for a bill because he actually thinks it's a good bill; he votes for it because he's reaching out to a certain demographic group. Maybe it's that overhwelming sense of cynicism that makes people want to believe that Obama can change the Washington mindset.

Anyone who uses the word "ebullient" when gushing over an Obama speech has no use for policy.

If The Atlantic really wants to discuss policy, they can do so by putting on debates about the issues featuring people from across the spectrum quizzing the contenders or proxies for the contenders.

So, why haven't they?

To #2, that's not actually correct. Tax depreciation and GAAP depreciation are usually on different schedules, which is one of the reasons you see deferred taxes on balance sheets. In fact, you could depreciate capital spending for tax purposes while recording it as expensed for GAAP purposes, and use the same deferred accounts to reconcile the difference.

The idea of distinguishing between current expenses and capital spending is to reflect the expense across the periods for which the spending provides utility. It's largely an accounting and bureaucratic shift, and it's the increased spending itself that would actually make a practical difference, but it would be logical and would conceivably have an impact on how Congress evaluates infrastructure spending. Most importantly, it may encourage appropriate levels of spending. To compare with business - would a manufacturing company be more or less likely to spend $200 million on a new factory if they had to expense the cost in one period? Probably less so. But building that factory is probably good for the long term health of the business. Viewing infrastructure spending in this way is probably a positive.

People use separate capital and operating budgets for very good reasons, and even non-taxable entities use them. So I agree with TH.

The problem is that you don't want to cherry-pick when you use sound accounting principles and when you don't. As has been noted many times, there are some pretty large accrued deficits associated with Social Security and Medicare, but we include their surpluses in the operating budget numbers. I suspect that taking that out of the operating budget would swamp any effect of moving capital spending into a capital budget.

I would be in favor of people working on a proper accounting system for the Federal government, but it would be hard (the government has many complicated revenue streams and obligations) and probably wouldn't make very many other people happy.

I guess I'm coming to the point where I think that the people who actually want to know what's in Obama's proposals know they won't find out in the Washington Post, and know where they can go to find out.

What's tougher for most people is finding an objective source about whether his proposals are actually sensible or not. It would be kinda nice if the Post would help out there. That's the kind of job you might like a newspaper to do, even in this day and age. But I suppose it can't be helped. Heaven knows I wouldn't trust Shaleigh Murray to tell me.

The one thing they actually mention--the Infrastructure Bank--was both proposed in Congress -- not by him-- a while ago, and by Clinton months ago. I notice most of his proposals are either put forward last, or repeats of things that actually are other people's ideas.

Media coverage of this entire thing is appalling.

After reading Sen. Obama's economic plan on his website it doesn't appear as if there's much more detail available to the public than what's described in the Post. That is, $60B over 10 years into infrastructure, creating 2 million jobs.

As a lobbyist (and Obama voter) who focuses on infrastructure I'm exceedingly interested in finding out more about the plan. Has the campaign offered more detail anywhere?

If Congress came up with the idea of the Infrastructure Bank then neither Clinton nor Obama can lay claim to it.

How can anyone consider Obama's economic "plan" without reconciling ourselves with the following:

(Quote)
"Obama's (economic) plan is the most shameless piece of potential plagiarism that I have ever seen. He basically took Clinton's words and Clinton's policies and called them his own. If I were a professor I'd give him an F and try to get him kicked out of school," said Kevin Hassett, Sen. John McCain's economic advisor and the Director of Economic Policy Studies at the American Enterprise Institute.


Comments closed February 29, 2008.

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