A Plea to Journalists, Pundits and Pols: Correct and Clarify Economic Errors Quickly

When  statements are made that contradict economic facts,  arithmetic, or basic principles, rapid response is needed to help the reader.   

Recent examples of objectively false or economically incoherent statements include:

  • Interest rates should be cut because the economy is hot: This reverses the fundamentals of monetary policy. In a heated economy, central banks typically raise rates to prevent overheating and inflation.
  • Exporting countries pay for import tariffs: This claim is not only misleading—it’s false. Tariffs are paid by the importing country’s businesses and consumers, not foreign governments.
  • Conflating price levels with inflation: Inflation refers to the rate of change over time, not static prices. Equating the two confuses readers and misrepresents economic conditions.
  • Gasoline was under $2 per gallon  in 2020: A reminder is needed that prices plummeted during an unprecedented global recession driven by COVID-19—a situation not reflective of ordinary market dynamics.
  • “Inflation is under control at 3%”: No—it’s not. Do the math. The Federal Reserve’s target is 2%, and 3% is 50% higher than that benchmark. While 3% may feel modest compared to recent spikes, it still represents a persistent erosion of purchasing power and a failure to meet policy goals.

  When voters are polled, they put affordability -- aka Kitchen Table issues -- at the top of their list of concerns.  They deserve straight talk and accurate statements.


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