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Dean Baker

Dean Baker

Posted: January 4, 2010 02:18 PM

The Washington Post: R.I.P.

What's Your Reaction:

The Washington Post is a paper with a proud legacy. It has done much important reporting over the years, most notably its coverage of the Watergate scandal that resulted in the resignation of President Nixon. Unfortunately, it seems to have abandoned its journalistic standards. In its last issue of the decade, it published as a news story an article by the Peter Peterson Foundation funded "Fiscal Times." This compromised the Post's journalistic integrity to the extent that readers can no longer take it seriously.

Peter Peterson is a Wall Street billionaire and Nixon administration cabinet member who has been trying to gut Social Security and Medicare for at least the last quarter century. He has written several books that warn of a demographic disaster when the baby boomers retire. These books often include nonsense arguments to make his case.

For example, in one of the books making his pitch for cutting Social Security as matter of generational equity, Peterson proposes reducing the annual cost of living adjustment. Peterson justified this cut by arguing that the price index overstated the true rate of inflation, therefore the annual cost of living adjustment was overcompensating retirees.

The problem with Peterson's logic is that if the price index really overstated inflation, then the country has been getting wealthier much faster than the standard data show. This means that the young people who he was so worried about would be far richer than anyone could have imagined. It would also mean that the most of the retirees whose benefits he wanted to cut grew up in poverty.

These conclusions logically followed from Peterson's claim that the price index overstated inflation. But Peterson didn't care about the logic, he wanted to cut Social Security and he was prepared to say anything to advance this agenda.

Of course, what Peterson says matters because he uses his billions to make sure that his voice gets heard. In the case of his books, he would take out full-page ads in major newspapers to ensure that these otherwise very forgettable tracts got taken seriously.

And he started organizations. First, he had the Concord Coalition and more recently the Peter G. Peterson Foundation, and now its offspring, the Fiscal Times. Interestingly, the Fiscal Times' premier piece in the Post managed to reference both of Peter Peterson's earlier creations.

The piece also included the standard and inaccurate Peterson refrain about "skyrocketing spending on Medicare, Medicaid and Social Security." Spending on Social Security is not "skyrocketing" in the normal usage of the term. Measured as a share of GDP it will increase by approximately 1.8 percentage points over the next two decades, an increase that is fully funded by the designated Social Security tax.

While spending on Medicare and Medicaid is increasing rapidly, this is primarily the result of exploding private sector health care costs. As every serious budget analysts knows, private sector health care costs have been growing at a rate that threatens to devastate the economy. If the private health care sector is not fixed, we face an economic disaster regardless of what happens with Medicare and Medicaid. If it is fixed, then the problems facing the public sector programs will be manageable.

This is not the first time that the Post has been prepared to compromise its integrity to rescue its finances. Earlier last year the Post's top management planned a series of dinners where they had intended to sell lobbyists the opportunity to meet with the Post's reporters in an informal setting. This plan was nixed after it was leaked to Politico and the idea developed into a scandal.

While selling access to reporters is a certainly a high crime for a serious newspaper, handing over a portion of the news section to an advocacy group is arguably a worse sin. The Fiscal Times piece is indistinguishable in its appearance from any other news story in the Post. Only those careful to read the byline or the note at the bottom would realize that the article was not a regular Post news story. Nowhere is the Fiscal Times identified as being affiliated with the Peter Peterson Foundation.

If the Fiscal Times becomes a regular source of news articles at the Post we can probably soon expect to see pieces from National Rifle Association's "Firearms Gazette" and the Tobacco Industry's "Smoking Today." It is unfortunate that technological changes may have made the traditional newspaper economically unviable, but it would have been much better if the Washington Post could have had a dignified death.

 
 
 
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SamEllison
I feel so clean!
01:50 AM on 01/07/2010
Dean we really need to rethink Watergate.
Woodward was a plant by the #2 man at the FBI.
It wasn't journalism and not much has changed.
07:10 AM on 01/06/2010
It's really sad that greedy billionaires can form fake grassroots groups like "the concord coalition" and then flood the media with lies which are taken as fact by the uneducated republican hillbillies.
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dfranz
With Liberty and Justice for all
08:32 PM on 01/05/2010
As far as I am concerned WP sold it's soul in the run up to the Iraq war. It's been a zombie Republonews organization since then.
If we want to know what the Republicans think, we'll watch Fox news.....gag,, did I just write that?
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Bailey Reynolds
Gulf War vet, Recovering Republican
07:53 PM on 01/05/2010
The Washington Post's current "leadership" is puh-thetic. 'Nuff said.
06:32 PM on 01/05/2010
"technological changes may have made the traditional newspaper economically unviable"

i think it's the fact that all our newspapers are now owned by the same pro-corporate free market predators.....

garbage in - garbage out.....

who wants to spend money on a deficient product.... THAT is the main problem of the newspaper industry....

ok and props to craigslist!
dtlewis
No micro-bio for you!
05:49 PM on 01/05/2010
The core issue remains whether or not John Q. Public can become reasonably well informed without having to personally conduct one's own thorough investigations to get at the truth. This is why our founding fathers so strongly emphasized the independence and protection of a free press, not a corporate front for a propaganda campaign intended to sway public opinion in favor of the wishes of the financial elite. In the absence of a vigorous and credible press i.e. media, to ferret out the facts and present the information objectively to the public and being readily available to all, THE PEOPLE haven't a snowball's chance of understanding the ramifications of public policy. Presently, I find it damn difficult to differentiate between fact and the fiction being deliberately foisted on a largely naiive and unsuspecting public by the existing body of media and I consider myself pretty well prepared to process fairly sizable quantities of information objectively. The corporate kleptocracy presently in power has gone to great lengths to assure reality remains obscured from the public.
05:45 PM on 01/05/2010
The Pete Peterson fan club is growing almost as fast as the Tiger Woods fan club is shrinking. Along with WAPO, count our Federal Reserve chief, Bernanke, who, in his confirmation hearings, reminded Congress that they have the power to end Social Security and Medicare. Ah, yes: shred the safety nets. Now where have we heard that before? Oh, that's right: in Naomi Klein's "Shock Therapy: The Rise of Disaster Capitalism." The big players tried it in Latin America, South Africa, Poland, and Russia; but in the end, of course, it failed - because when you take everything the population depends on for their survival, they will eventually take to the streets. It's the old "nothing left to lose" syndrome that has toppled many a plutocracy - and has many more to go.
05:31 PM on 01/05/2010
We should all be glad that Dean Baker is keeping an eye on the Social Security destroyers like Walker and Peterson.

The average person deserves a retirement too.
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Adartist777
Overqualified
05:11 PM on 01/05/2010
If the SS system is in trouble, blame Congress for dangerous adventurism by creating corporate wars to fund armament and weapons systems manufacturers.

Congress has proven itself to be poor trustees for SS. If a trustee mismanaged funds in the private sector, that trustee would be facing a prison term.

Then take into account the war on the middle class by Congress and corporations with the reduction of private sector jobs causing a reduction in SS contributions.

If there is no SS for the Baby Boomers when more of them begin to retire, you'll see seniors fighting in the streets with their walking canes and walkers.
04:43 PM on 01/05/2010
Can't condone what the Post did but this guy totally mis-represents Pete Peterson. Mr. Peterson has rightly argued for several decades now that social security payments should be means tested and that he, with his level of assets, and others similarly situated, have no business receiving a social security check paid for by payroll deductions from working families. Yet everytime he suggests some rational reform he gets attacked by writers like this who clearly don't understand the difference between the actuarial numbers and the cash requirements. They always quote the actuarial numbers to say there is no problem. That would be true except all the money in the "trust fund" doesn't exist. We spent it largely on tax cuts and wars. So the only thing that matters going forward is the cash in cash out and on that score we are in a lot of trouble as we shall all see fairly shortly as even before the meltdown by 2013 the system goes cash negative if it hasn;t already.
07:06 PM on 01/05/2010
I am so glad someone gets it. Not everyone in here does. This has been an issue for 30 years and I have never heard any administration or responsible congressman say it isnt. It is going to be on the back of our kids and grandkids to pay our bills. The numbers simply dont add up. The Trust Fund has IOUs that can be paid off only with deficits or from the operating budget. After 2017 the revenue from SS no longer is a much as the benefits paid out each year. That is when the rest of the budget has to subsidize SS payments, Why some dont see that is beyond me
03:44 PM on 01/05/2010
If you ask me, the Washington Post was finished when they started letting an amateur like Sarah Palin write opinion pieces.
madame48
NO..it's a gop Cookbook !Tempus edax,homo edacior
03:00 PM on 01/05/2010
This is the same Peterson who gets to pay only 15% tax on his financial deal megawages...while his head janitor pays at more than double that rate. yeah, we should really take his advice..buzz off Pete
02:48 PM on 01/05/2010
The Washington Post and the New York Times have become rediculous in their attempts to pander to the right.

I never bother with them anymore. Same for CNN. They made themselves irrelevant.
03:36 PM on 01/05/2010
Interesting that you should mention these three news services, as, these all reported as ''fact'' the 2006 Tyre ''Massacre'' by the IDF during that years ''Summer War'' against HEZBOLLAH in Lebanon, and all three in succession, printed or reported ''facts'' regarding then-Alaska Gov. Sarah Palin, that proved to be false. [ in order: Wasilla Library ''book bannings'', while Mayor, ''cutting funding for special needs social programs'' and the ''ending of the distribution of ''rape kits'']. You may view the roundup here:

The Urban Legends Reference Pages www.snopes.com
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Adartist777
Overqualified
05:24 PM on 01/05/2010
The newspaper industry has become desperate and irrelevant. The only reason people buy newspapers is to clip the coupons in the Sunday paper and to see who's passed away. Maybe their kid made a touchdown at the local high school football game.

I worked for various newspapers over the years as a graphic artist and became familiar with day to day operations.

Publishers were printing newspapers and throwing them in the dumpster to account for their fake circulation numbers to justify their expensive advertising rates. When ideas to diversify came up, those suggestions were ignored. Salespeople were pressured then fired. Good employees were shown the door once they reached the peaks of their careers.

Now, the newspapers are getting their comeuppance and the Post has now sacrificed it's integrity as one of the best newspapers in the nation and is getting its just reward.
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1dogs2
11:52 AM on 01/05/2010
Katherine Graham must be spinning in her grave.
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Bailey Reynolds
Gulf War vet, Recovering Republican
07:56 PM on 01/05/2010
Especially since its her granddaughter who's running it into the ground.
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11:51 AM on 01/05/2010
WaPo is a Neocon rag, a far cry from the days of Katherine Graham.

http://www.consortiumnews.com/2009/031509.html