Economic Ignorance at the Times

This from today's NY Times:

More recently, Bain helped lead the private equity purchase of Clear Channel Communications, the nation’s largest radio station operator, which resulted in the loss of 2,500 jobs. 

Here is a prime example of how economic ignorance passes for journalism. 2500 people may have lost their jobs at Clear Channel, but this did not result in 2500 fewer people being employed. The resources that were tied up employing people in an inefficiently run business were freed up to be employed in other businesses -- including some of Bain's other investments like Staples, Gymboree, Guitar Center and others. That's what capital markets do. They shift resources from less productive uses to more productive uses. That's how the economy grows and produces more jobs in total.

Next up: The Times writes a scathing piece criticizing itself for installing computerized type setting, which resulted in the loss of thousands of jobs at their printing plants.