In a CNNMoney report on slow economic growth, CNN argues that “lawmakers’ bickering about the debt ceiling” are part of a “series of events” that have hit the recovery. The effects of the President’s stimulus or the Federal Reserve’s Quantitative Easing are not mentioned even as having been “unexpectedly weak.”
CNNMoney asserts that since “consumers pulled back in February…growth began to slow for the next three months.” CNNMoney blames high gas prices for the slowdown. CNN quotes an analyst who states, “[Consumers are] still very much mired in that mind set of paying down debt, rather than taking on debt.”
CNNMoney then moves to jobs, asserting that in June “hiring hit a snag.” Potential causes of the “snag” are unexplored.
The report also blames the Japanese tsunami for the ongoing manufacturing slowdown, although they claim that “economists also say it appears lower demand is also taking its toll.”
CNNMoney also highlights “strong corporate balance sheets” quoting an economist saying, “Companies have been piling up cash.” CNNMoney also asserts without exploration that businesses’ strong cash positions “have yet to translate into meaningful job growth for average Americans.”
CNNMoney reports facts about the state of the economy, but fails to explain why the economy is in its present state. Indeed, although “lawmakers’ bickering” is presented as an explanation for weak recovery, the President’s pro-union labor policies and costly healthcare regulations are not even assessed.