Tim Geithner Didn't Write the Headline, but He Still Wrote the Column

More
Thumbnail image for 500 waffle breakfast.jpg

Yesterday I used the word "pathetic" to describe Sec. Tim Geithner's New York Times op-ed "Welcome to the Recovery." That was a little harsh. My most visceral objection was to the blithe and tone-deaf headline, and it turns out the administration not only didn't pick it, but also they hated it as much as I did. Fair enough.

But my principle objection stands. This economy is a tough sell. Passing more stimulus while the deficit balloons is also a tough sell. But the administration is much better, or seems more interested, in tying a pretty ribbon on the weak recovery than at tying a pretty ribbon on the argument for more stimulus. It's self-defeating. The more time you spend beautifying the ugly economy, the harder you're making it on yourself to sell more stimulus to make it better.

One quick example. Geithner praises business profits as an indicator that the economy is getting better. Are business profits good for the economy? Yes. But the reason businesses are turning big profits is they started this recession with mass layoffs and have kept costs down by not hiring. Look at today's news. Private payroll gains are anemic. Large business still aren't hiring, but many are also turning a profit. Rather than present this news as Exhibit A in The People v. the White House PR Department, the administration should explain why corporate profits are deceptive and why the recovery we've seen in the stock market hasn't trickled down to the Sunday market (or some other neat parallelism).

That's my piece. In other news, people who name oil leak procedures should name everything. Here's your Business Breakfast.

1. AND THEN THERE WAS ONE
Sen. Collins is the only thing standing between $26 billion in new state aid and nothing [Politico]

2. NOT HIRING
Private payroll gains increased by 42,000 -- better than estimates but still bad -- and large business aren't adding workers [WSJ]

3. ... BUT TURNING A PROFIT
Toyota posts $2.2 billion earnings, much thanks to about $500 million in cost-cutting over the last year [NYT]

4. SMARTERPHONES
The new BlackBerry -- 30 percent taller and with a touchscreen -- is but also sort of wonderful. [Gizmodo]

5. NO, MACONDO LEAK. I EXPECT YOU TO DIE.
'Static kill,' the latest in a line of complicated leak-plugging procedures that would make great James Bond movie titles, is working [WaPo]



Jump to comments

Derek Thompson is a senior editor at The Atlantic, where he oversees business coverage for TheAtlantic.com. More

Thompson has written for Slate, BusinessWeek, and the Daily Beast. He has also appeared as a guest on radio and television networks, including NPR, the BBC, CNBC, and MSNBC.

Get Today's Top Stories in Your Inbox (preview)

Video

More Video
Here's What Happens When You Light a Fire in Space


Elsewhere on the web

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register. blog comments powered by Disqus

Video

Miami: The Next Big Start-Up City?

How the city became a center for innovation

Video

Video

A Brief History of Romantic Comedies

From The Atlantic's Chris Orr

Video

Life in 'the New Arctic'

A moving portrait of a fading landscape

Video

Video

The Rise of New York City

A fascinating look at Manhattan in the 1940s

Video

What Is Methane Hydrate?

"Flaming ice" is a vast natural energy source

Video

NASA's Time-Lapse of the Sun

Now with epic dubstep music

Video

Shaken Not Tuned: Cocktail Experiments

Can a tuning fork improve a cocktail?

Video

Video

Is He Cheating? A 1950s Guide

'That little blonde secretary from the office?’

Video

New Yorkers: Vintage Vacuum-Tube Amps

Risking electric shock to restore old amplifiers

Video

The DIY Piano-Bicycle

Everybody needs a hobby

Video

What Does It Take to Make Real Craft Gin?

Tour the Green Hat Gin distillery

Video

What Straights Can Learn From Same-Sex Couples

New insight from decades of research

Video

The End of the Mall Rat

A tribute to that pillar of teen culture

Video

The Wonderful World of Capitalism

An adorable 1950s cartoon

Video

New Yorkers: Miss New York USA

An unconventional beauty queen.

Writers

Up
Down

More in Business

In Focus

Early Monsoon Rains Flood Northern India

Just In