Saturday, August 11, 2018

Selective attention to fact

Political bias and perception often are based on our selective attention to factual information rather to actual "fake news." Today (August 11, 2018) I noticed that several of my right-leaning friends on Facebook were sharing the first of the two stories below, while my left-leaning friends were sharing the second story. Both stories are accurate and factual, both were reported in more than one media source although here I chose to use two stories from one source. There was little bias in the mainstream media, only factual reporting on data reported by government agencies responsible for tracking economic trends. The first story pre-dates the second by 10 days because of differences in the release of data by different government agencies.

Headline: U.S. Workers Get Biggest Pay Increase in Nearly a Decade.
Basic information: Employment cost index, which measures wages and benefits, grew 2.8% in the 12 months to last month June 30, 2018. Reported on July 31, 2018.
https://www.wsj.com/articles/u-s-employment-costs-rose-in-the-second-quarter-1533040473
Headline: Rising U.S. Consumer Prices Are Eroding Wage Gains.
Basic information: Inflation is at 2.9% over the past 12 months ending June 30, 2018, a gain that was last exceeded in late 2011. Reported August 10, 2018.
https://www.wsj.com/articles/u-s-consumer-prices-rose-0-2-in-july-1533904402

Both articles share important pieces of information: 1) wage increases were higher in the last year than in the previous decade and 2) those wage increases were more than offset by increases inflation that was higher than in the previous decade - so people's standards of living did not increase.

Sociology courses can be an important vehicle for educating people about data sources, how to access them directly, what information those sources include and do not include, and how to evaluate them.

For example, the Employment Cost Index reported by the Bureau of Labor Statistics looks at what employers have to pay in both cash wages and in benefits costs.  It is entirely possible (and has happened quite a few times), that much of the increase in the Employment Cost Index comes from employers having to pay more for benefits such as health insurance or retirement payments, than because they are putting more cash in employees pockets through wages. That was not the case in the year ending in June 2018 - both direct wages and employers costs for benefits increased by 2.8%. But this distinction between the cost to employers and the wages received by employees is important for people looking at this type of data to understand and look at how the data source breaks down the Employment Cost Index into its component parts.

Another lesson to learn about data sources is that many types of data including both the Employment Cost Index and the Consumer Price Index (the measure of inflation also provided by the Bureau of Labor Statistics) lump together information from millions of sources into a single index number.  With the Employment Cost Index wage and benefit, data is collected from thousands of employers covering millions of workers, and is an average of all the data collected. That means that some workers may have had wage increase far exceeding 2.8% and other workers had no wage increase or may have even taken wage cuts. A rise of 2.9% in the consumer price index does not mean that everyone across the nation saw all of their costs rise by 2.9%.  Some costs (such as higher education tuition and books) rose by more than 2.9%, other costs rose very little and even some products (such as some electronics) may have come down in cost. Moreover, prices for many things (such as rent and mortgage) vary considerably from one geographic area to another. Some elements of the consumer price index like food prices affect everyone, but others like prices of automobiles only affect those who are purchasing an auto.

Helping people understand the data that affects their lives is an important role sociology can and should play.

Wednesday, June 20, 2018

Family not Business

Republicans and conservatives are always talking about how we need to run our country like a business; they also talk a lot about family values but never link the two together.

We would be far better served if we decided to run our country like a family - a good family not a dysfunctional one. Good families put their frailest and most vulnerable members first, making them a priority. Families sacrifice for their children and their elderly, giving their time, energy and resources to those who can least go out into the economy and world and fend for themselves. The adults in good families know they are protecting the future -- of themselves, their families, and society -- when they put their children first, and that they are acknowledging the sacrifices of their parents when they put their elderly first.  Good families do not abandon or kill their children and elderly when money gets tight, they look for new resources, a second job, government assistance, even illegal sources of income (not condoning the latter, just observing).

Businesses on the other hand, when money gets tight, put stockholders and top executives first and throw away the most vulnerable of their workers, forcing retirement on older workers, laying off workers, abandoning the very people who make the business work.

Our present government leadership (both Houses of Congress and the Presidency) are taking a business rather than a family approach to running the country, cutting off the vulnerable (cutting programs), rather than expanding resources (returning taxes to previous levels before the huge tax cut giveaway of 2018):
House GOP plan would cut Medicare, Medicaid to balance budget https://www.msn.com/en-us/news/politics/house-gop-plan-would-cut-medicare-medicaid-to-balance-budget/ar-AAySglD?li=BBnb7Kz
This Congress has already cut the programs that care for children (food stamps, welfare, education, and many others), and now it's taking aim at our elderly. All to give those who already have enormous resources, more than they could possibly spend in their lifetime, even more. Let's start thinking of our society as a family and not a business.