This entire report debunks the most common economic canards of the left.
For example:
Media myth: All the manufacturing jobs have been shipped overseas, and the only ones left are in the almost empty plants of the Big Three automakers.
Even though the Lou Dobbs and John Edwards doom and gloom protectionist class warriors would like you to believe this it is not true.
Truth: American auto manufacturing is alive and well, with Honda and Toyota opening new plants in the United States. The Associated Press explained on May 28 that Hondaâ??s new 1,500-job plant slated for the Midwest is just one part of a â??$1.18 billion global expansion,â? and should boost North American â??production capacity from 1.4 million to 1.6 million vehicles a year.â?Â
In addition to plant jobs, suppliers and support services gain business from the automakersâ?? expansion. Millions of investors benefit from holding stock in these companies â?? another angle left out of many stories.
Besides leaving out the good news, journalists often fail to explain part of the bad â?? why old Detroit is in bad shape. A bit of the history of union contracts could explain why the companies are more worried about paying health care costs and pensions than making cars. Most stories about company benefits portrayed the companies as leaving their workers high and dry, instead of explaining how the powerful unions put workers in their tough spot.
Here is my other personal favorite:
Media myth: Workers are getting left behind in economic growth.
Nope. Sorry. That was is not true either.
Truth: Wages and benefits have risen at the fastest pace since early 2004. Hourly compensation in non-farm businesses increased 7.7 percent from last year, according to a September 6 report from the Bureau of Labor Statistics. Economist Brian Wesbury also said recent revisions to income figures had found â??$160 billion of personal income that was previously uncounted.â? He explained that the commonly used payroll survey, the â??major source for both average hourly earnings and wage and salary estimates,â? had underestimated the amount.
Compensation includes benefits, which have been a huge growth area. Workers are paying a lower share of their health benefits than they did in the past â?? something journalists didnâ??t factor into the overall earnings picture.
Read the rest of the Top 10 Economic Myths of 2006 Here.
We will be discussing many of them with our guest Grover Norquist, President of Americans for Tax Reform tomorrow night on our show at 8 p.m. EST.