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How the Wall Street Journal Misleads About Federal Jobs

Posted: 01/14/12 12:23 PM ET

The editorial board of Rupert Murdoch's Wall Street Journal has a simple game. They want to cut taxes for the rich and government services for the rest, and end regulations of banks and the environment. They support taxpayer-financed bailouts of Wall Street when needed. They will twist any facts in the service of these goals.

Today's lead editorial, with its graph of "Obama's Growing Payroll," is a perfect example of how the WSJ misleads rather than informs. The gist of the editorial is that Obama is presiding over a massive increase of government, exemplified by the surge of civilian employees. The graph shows a striking rise of federal employment from around 1.875 million in 2008 to 2.1 million in 2011. (I reproduce this as Figure 1 below).

The Journal neglects the fact that today's 2.1 million workers is actually identical to the number of Federal employees in 1981 at the start of the Reagan Administration, 1989 at the end of the Reagan Administration, and 1993 at the end of the Bush Sr. Administration. The numbers went down slightly after that (by around 200,000-300,000 workers as of the late 1990s) with a decline in Defense Department civilian employees, a decline that was probably offset by the rise of private defense contractors (not included in the OMB tables). There is no long-term trend at all. (I show this as Figure 2 below).

The Journal endlessly tries to portray the "growth of government" as a social welfare system run amok. The editorial implies that President Obama is repeating LBJ's Great Society by building up giant welfare and regulatory programs reflected in the "boom" of federal employment. But where did this so-called "boom" (actually a tiny boomlet) actually appear? In Great Society programs? In entitlements?

No, the increase in employment is mainly in national-security-related employment: the military, homeland security, and justice (including prisons, FBI, drug enforcement, and the like). Welfare and entitlements programs little to do with. If we parse the increase of 225,000 federal jobs between 2008 and 2011, three-fourths came in the Defense Department (+84,000), Homeland Security (+28,000), Justice (+13,000), and Veteran's Affairs (+45,000).

Of course the Journal's entire argument is absurd, a red herring, since the increase of 225,000 jobs represents all of 0.0017 of U.S. non-farm employment of 131 million workers. The entire federal civilian workforce is a mere 1.6 percent of the total non-farm employment. The Journal is taking tiny fluctuations and making them into a federal case, so to speak, for its propagandistic purposes.

The actual fact of relevance is that the federal government has been declining as a share of national non-farm employment, from 2.3 percent in 1981 to 1.6 percent in 2011. (I show this in Figure 3 below). Partly this is because services that government should be providing have instead been outsourced to political cronies (especially among defense and security contractors). Partly its because of the true shrinkage, not expansion, of the federal government's programs relative to GDP in non-security activities such as the environment, job training, community development -- the matters that benefit poor and working class households, who don't, incidentally, read the Wall Street Journal.

The big lie of our time is that the federal government is expanding out of control. Yes, there is undoubted waste, especially in military outlays and in outlays for over-priced private health services. The Journal is a promoter of that variety of waste, the kind that benefits the 1 percent represented by powerful lobbyists, and that hurts the rest of society. For government services that count for the 99 percent, the federal government is shrinking, alas, no matter which phony figures the Wall Street Journal throws our way.

2012-01-14-fedemploy.jpg
Figure 1. Federal Employment 2001-2012, Source: OMB

2012-01-14-fedemploy1981_2011.jpg
Figure 2. Federal Employment, 1981 to 2011, Source: OMB

2012-01-14-fedemploy3.jpg
Figure 3. Federal Employment as a Percent of Non-Farm Employment,
Source: OMB and Bureau of Labor Statistics

 
 
 

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The editorial board of Rupert Murdoch's Wall Street Journal has a simple game. They want to cut taxes for the rich and government services for the rest, and end regulations of banks and the environme...
The editorial board of Rupert Murdoch's Wall Street Journal has a simple game. They want to cut taxes for the rich and government services for the rest, and end regulations of banks and the environme...
 
 
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02:11 PM on 01/22/2012
Adios ! American and Western Political Economy. Govt in emerging economys should craft a startegy which is away from Wall Street Strategy- Market driven by greed!!!!!!!!!!!!!!!!
10:44 PM on 01/16/2012
Actually, what the Wall Street Journal stated is even more of a falsehood than Jeff realized. The best source of consistent data is that prepared by the Bureau of Labor Statistics of the US Department of Labor. I posted a blog on my own web site (AnEconomicSense.com) that showed that Federal Government employment during Obama's tenure has been largely flat, and in fact fell slightly for government employees other than those in the Defense Department. And Federal employment rose under Bush. See http://aneconomicsense.com/2011/12/07/non-defense-federal-government-employment-has-fallen-under-obama-and-grew-under-bush/. The posting was in early December, and the data then available was through October, 2011. But since then Federal Government employment has fallen by a further 8,000.
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HUFFPOST SUPER USER
freedomny
99% = TBTF
10:03 PM on 01/16/2012
We don't have objective media in this country. Because all of the newspapers and tv stations are owned by those who want to further "their" own agendas.

Best to get your news from the internet...until the government tries to shut that down with their own messages. Coming shortly to a computer near you...

Banker
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humanbeing-rick
Born in the USA 1947
05:53 PM on 01/16/2012
The American people are like mushrooms to the CEO's and uber-rich,
they keep us in the dark and feed us lots of bull sh#t...
America - the mushroom farm of the elite!
04:34 PM on 01/16/2012
We were expecting something else from Murdoch and company?
02:16 PM on 01/16/2012
What are you talking about?

Chart 1: the rise begins in 2008 (Bush), spikes up and holds in the 2009 and 2010 (Obama).
Chart 2: declines during 90's (Clinton), moderate rise in 2008 (Bush), spikes up in 2009 (Obama).
Chart 3: declines under Reagan, holds under Bush I, declines under Clinton, holds under Bush II, then Obama erases half of Clinton's progress.

Read, folks. You're just assuming that if it's on HuffPost it must be bad for Republicans. Usually true, but in this case their own data refutes the claims!
05:32 PM on 01/16/2012
Defense,Homeland Security, Justice and Veterans affairs. No republican is going to cut any of those jobs except for Justice.
This user has chosen to opt out of the Badges program
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booker52
avid reader
10:57 AM on 01/16/2012
When Murdock purchased the WSJ a great paper, he turned it into a lying rag loaded up with his lying talking points.
05:18 PM on 01/16/2012
Needed to balance out the NYTimes, WaPost, and the rest of the lib rag newspapers.
HUFFPOST SUPER USER
Kim Hayes
07:01 PM on 01/16/2012
Too factual?
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HUFFPOST SUPER USER
spinotter11
Spinning through life and trying to understand it.
10:08 AM on 01/16/2012
The federal government is too large and too intrusive. And unfortunately this situation will only grow and become more pronounced in the future. The United States was meant to be a federation of states with much more autonomy than they now have.
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HUFFPOST SUPER USER
cornel
wuf wuf
11:57 AM on 01/16/2012
Sure, drug testing unemployment beneficiary is not big Government, right ? And it's been done at the State level, right ?
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HUFFPOST SUPER USER
spinotter11
Spinning through life and trying to understand it.
12:30 PM on 01/16/2012
Some states would choose to do so and it would be tested against their own state's constitution, which also can be amended. I'm saying the role of federal government is too massive and this was not the federation in the Founders' minds.
bonatay
I gambled and lost
10:38 PM on 01/16/2012
Who told you that?
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guveqzero
Inventor and Innovator
10:07 AM on 01/16/2012
The facts don't mean anything. It's a principle to them. Smaller government means more money in their pockets by thieving.
09:43 AM on 01/16/2012
Finally, an article that explains in terms that, hopefully, even the 1% will understand. Only Faux Noise, et. al., would insist that the government is growing when, in fact, it isn't.
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HUFFPOST SUPER USER
Gurinder Dhillon
Republicans thrive on false equivalencies.
08:12 AM on 01/16/2012
Jeffrey Sachs makes excellent points, but I saw him on Morning Joe earlier today and when he was trying to make his point he let Joe Scarborough walk and talk all over him with all of his bombast. Sachs seems to be one of only a handful of economists that the mainstream media can get on tv that actually know what they're talking about, Robert Reich is another one, but if he's not willing to speak up for what is right why even go on the show?
bonatay
I gambled and lost
10:42 PM on 01/16/2012
Joe does almost all the talking. All you hear is Joe. when he starts to hear something he doesn't like...... bombast away.
02:17 AM on 01/16/2012
Republicans have garnered success with the "small gov" strategy mainly because it taps into the general disdain that conservatives have with secularism. After prayer was taken out of classrooms and after Roe vs. Wade, the government was no longer a servant of the public in the eyes of conservatives. Instead it was suddenly an intrusive, almost anti-Christian body of fascist imperialism set on a course to destroy good old-fashioned American values.

"Small gov" isn't about lowering taxes and freeing up resources for businesses. The fact is that conservatives would gladly levy a 100% tax on every American including even the wealthy job creators if that revenue was used to implement a theocratic agenda.
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HUFFPOST SUPER USER
spinotter11
Spinning through life and trying to understand it.
10:16 AM on 01/16/2012
Not true - do you imagine Ron Paul would establish a theocratic regime? There are many kinds of conservatives, and although I call myself a progressive, I still believe that the federal government is too big and has usurped many functions that should have been left to the lower levels of government and to the private individual.
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HUFFPOST SUPER USER
littleolwinemakerme
Put A Cork In It!
04:17 PM on 01/16/2012
Ron Paul is a bad example as he is not a true Republican, more like a Randite.
01:51 AM on 01/16/2012
Well it is called the Wall Street Journal and owned by Rupert Murdoch so what would you expect. Rich people are allowed to own newspapers that promote their vested interests. This doesn't mean that anyone has to be stupid enough to read them or pay any attention to anything they say. The easiest way for people to hurt Rupe is just not buy his paper. He isn't going to make much money only selling it to the 1%.
07:35 PM on 01/15/2012
excellent article, long overdue....
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HUFFPOST SUPER USER
J T K
Quis custodiet ipsos custodes?
07:08 PM on 01/15/2012
What would make the most sense to keep government growth in check and to limit spending to a reasonable level would be to cap government spending as percentage of GDP. That way if the economy grows the government can grow and if the economy shrinks the government shrinks to fit it, that would prevent the government from getting too big and bring spending per citizen in the US under control.
HUFFPOST SUPER USER
Joe Padilla
Ever hear of a credit union crisis?
11:16 PM on 01/15/2012
Might make sense but there is no evidence either party is going to do that. So the answer is to raise taxes until people actually have to sacrifce to pay for it. This idea of low taxes and big government is going to wreck us just like California. And once we are wrecked there is no other country that will ever replace us.

The new Republican party led by the baby boomers propagating this ideology is highly selfish and dangerous.
02:06 AM on 01/16/2012
California got wrecked by 8 years of real estate speculation and that's basically it. Public works expense in that state are not out of line with the norm for other states.
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HUFFPOST SUPER USER
sobaytransplant
Obama 2012! Accept no substitute!!
02:17 AM on 01/16/2012
I take offense to the idea that California is "wrecked," though. We were badly damaged, but are making a slow recovery. Then again, we didn't fall for the Tea Party sweep in 2010. We elected all Democrats.