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Class Warfare
Washington Post columnist looks out the
window and sees soup kitchens
By
Charles Simpson
Free Market Project
Nov. 15, 2005
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In his November 14 Washington Post column, Sebastian Mallaby
released what must have been hours of pent up frustration about
everything from “inequality” in the United States to legislators
planning “to cut Medicaid, food stamps, free school lunches, and
child-care subsidies.” He detailed dismal number after number to
make some startling, yet erroneous, claims. Mallaby could have at
least citied authorities or studies that could back up his rant.
Instead, he simply tossed one-liners onto the wall and hoped they
would stick.
    Here are a few snippets from Mallaby’s diatribe:
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In response to President Bush’s speech in New Orleans, Mallaby
quipped the president “was joking, obviously” about lifting
people out of poverty. Mallaby then incorrectly claimed that
“the president’s congressional allies now propose to cut
Medicaid, food stamps, free school lunches and child care
subsidies.” Congress does not plan cuts, but reductions in the
rate of growth. As a matter of fact, according to the
Congressional Budget Office, these reductions in the rate of
growth constitute a 2% nick in Medicaid and a 0.6% cut in food
stamp growth. Of course, Mallaby calls this paltry change a
“scandal.”
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Mallaby then carped that Congress does “not propose to save
money by undoing the tax cuts that have handed an average of
$103,000 a year to people making over $1 million.” Mallaby
ignored the big picture behind tax cuts because it would have
undermined his point. The most recent round of tax cuts has
narrowed the federal deficit as revenue growth has outpaced
spending. Government receipts increased 9.2% as spending only
grew 1.9% over FY2005. His column didn’t even mention the
economic or job growth from the tax cut regimen.
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Evoking phrases like “the gilded age” and painting a picture
of a new “class bound society,” Mallaby made a bold claim with
no sourcing whatsoever (not to mention grasping for unnamed
studies from the 1970s). He wrote, “Inequality in the United
States is now more pronounced than in any other advanced
country.” He also claimed that “in 1980, the top fifth of
families earned 7.7 times as much as the bottom fifth; by 2001
that ratio had risen to 11.4” Instead of offering documented
facts and statistics, Mallaby omitted myriad positive
indicators for the American economy and American families,
even despite a summer of devastating hurricanes. Among which,
an average of 179,000 jobs per month were produced by the
economy over the past 12 months. GDP growth has been robust at
3.6% over the last fiscal year. In addition, the Free Market
Project has documented how the media consistently misreport
poverty figures.
    A May 19, 2005 editorial by Cato’s Alan
Reynolds in the Wall Street Journal clarified some of the myths that
Mallaby passed off as dismal fact. As Reynolds stated, “it helps to
focus on a few reasons why some people earn more than others – they
work harder, and have more experience and/or more schooling.”
Reynolds also noted that such inequality studies make a dubious
comparison because “Only the top group has no income ceiling, and
the lower income limit defining membership in that top group rises
whenever incomes are rising.”
    Experience and schooling are especially important for
lower income Americans trying to climb the economic ladder. If
Mallaby were truly interested in curbing a “morally intolerable and
economically wasteful” condition, he’d explore a solution to two
problems that bar the poor from experience and schooling: a minimum
wage law that restricts job supply and pushes unskilled workers out
of the market, and inadequate public schools insulated from market
competition. Repealing the minimum wage and implementing school
voucher programs would go a long way toward achieving these ends:
much further than class warfare rhetoric from the Post.
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