The myth that Obama is the candidate of “the people” was never credible. He has always been a protector of big corporations because that is what big government does: provide special favors and monopolies and protections for huge and inefficient corporations so that they don’t need to face the realities of a free market. Big corporations respond by giving politicians campaign cash and other benefits.
So it should come as no surprise that J. P. Morgan is going to bizarre lengths to figure out ways to boost Obama’s reputation and convince us all that the economy is getting better. So we get ludicrous headlines like, “How the iPhone 5 could help re-elect Obama,” followed by even more ludicrous content:
If the iPhone 5 boosts the GDP as much as this JP Morgan analyst says it will, Barack Obama might not have to worry about the economy crippling his chances against Mitt Romney. The new phone, which Apple will announce this week and release shortly thereafter, could add between a quarter and a half of a percentage point, J.P Morgan’s chief U.S. economist Michael Feroli told The Wall Street Journal’s Sudeep Reddy. Election modeling using the current GDP and inflation data has found that Obama will either find himself in a close election or in “serious trouble,” as The New York Times’s Jeff Sommer explains. “The low inflation rate is a plus for the president, while the mediocre G.D.P. growth rate is a problem,” he wrote. We won’t have the actual GDP figure until after the election, which some might argue means the iPhone came out too late. But, if Apple has a bonanza blow-out sales of 8 million phones, as Feroli predicts, the spillover effect of this stimulus will happen much sooner. Retail sales will pick up, the economy will perk up, people will feel better. Voters might now know the exact GDP figure in our heads, but they will know in their hearts.
Seriously? Yet the claims of J. P. Morgan’s Michael Feorli are being treated seriously in many places in the mainstream media. Businessweek, for example, ran this headline: “How iPhone 5 sales could prop up entire US economy.”
Other JP Morgan analysts are making similar statements, if not specifically about the iPhone 5. One headline: “J P Morgan’s Tom Lee makes a monster case for a market “melt up” between now and the election.” He claims, “We see a ‘melt-up’ into Election Day,” writes Lee on the cover of the report. “S&P 500 to EXCEED 1,495 short-term…market’s base case is Obama victory.” By calling it a “base case” Lee is allowing that the market will feel better about an Obama victory, but the whole idea of a supposed impending uptick in the GDP is being used by the media to support an Obama re-election.
Since we won’t have any hard numbers until after the election, the media will be free to use this supposition as an excuse for pushing anecdotal stories about how people feel better about the economy. Get ready for it.