The Wall Street Journal touted Ohio Gov. John Kasich's so-called success when it comes to creating jobs, dismissing data that shows the state is lagging in private sector job creation and that added jobs are often low-wage positions.
From the August 14 article profiling Kasich, who "boasts about his state's financial outlook":
Job growth is up. The Republican governor just signed what he calls "the biggest tax cut in the country" after converting a looming $7.7 billion budget deficit into a $2.5 billion surplus. Such success, he says, "would probably get a global CEO a giant bonus."
In fact, Ohio ranks ranks 47th in private sector job creation according to a Pew Research survey, and over the past year, the state has shown almost no job growth at all. Further, most of those created jobs have been in low-paying positions, with wages less than $15 an hour. Kasich, who made millions working for the doomed Wall Street titan Lehman Brothers, is no stranger to giant corporate bonuses, but in this case self-congratulation is premature.
It is unclear whether Kasich's policies have had a demonstrable effect on positive employment trends that developed long before he took office in January 2011. The auto bailout orchestrated by the Obama administration in 2009 is largely credited with delivering the state to the president in the 2012 election. Kasich opposed the auto bailout at the time, stating on the December 19, 2008, edition of The O'Reilly Factor that "Americans will say we don't mind helping them if they're going to be viable. If they're not going to be viable, we shouldn't throw good money after bad."
Even if credit is given to Kasich for his stewardship over the past two years, the Journal completely misses the mark in reporting his budget policies.
Kasich has seen a budget deficit return to surplus, but only through draconian cuts to state and local government operations -- including severe decreases in funding for education and women's health. Rather than gearing the state's budget surplus toward stimulative policies that would help put Ohioans back to work, Kasich's plan will favor tax cuts for the wealthy while shifting more of the burden onto Ohio families and consumers.
The Journal also quickly glosses over what it calls "new abortion restrictions that drew sharp criticism from Democrats," which are actually among the harshest in the country. In its rush to promote a Kasich "prescription" for the Republican Party going forward, and promote the governor's own ambitions for higher office in 2016, The Wall Street Journal failed miserably to tell the true story.
President Obama has given three high-profile speeches in July and August outlining an economic policy agenda for his remaining term in office as part of the White House's attempts to refocus the national media on pressing economic issues. An analysis of live coverage found that these speeches received unbalanced coverage across cable news outlets, with Fox News devoting by far the least amount of time.
After dedicating his opening segment to attacking the alleged dependency culture of younger generations, Fox News' Eric Bolling waded into an error-filled tirade against food assistance.
On the August 8 edition of Fox News' Your World, Bolling, who was filling in for host Neil Cavuto, was joined for a panel discussion of "food stamps" (officially known as the Supplement Nutrition Assistance Program, or SNAP). Fox contributors Jedediah Bila and Julie Roginsky debated the merits of the food assistance program, with Bila often making wildly inaccurate claims in her attempt to smear recipients and chastise alleged waste.
Bolling and Bila parroted numerous demonstrably false claims over the course of just a few minutes. First, Bolling falsely claimed that the budget for food assistance is $80-100 billion. In fact, the SNAP budget for fiscal year 2012 was $74.6 billion.
The cost of the program has increased significantly since the onset of a catastrophic recession in December 2007, but official data from the Department of Agriculture's Food and Nutrition Service reveal that the growth is due to increased participation driven by economic factors. From the Department of Agriculture:
SNAP participants declined steadily through 2000 but began to rise in 2001 and increased each year through 2011, except for a slight dip in 2007. The increase was substantial from fiscal year 2010 to fiscal year 2011. Average monthly participation increased from 17.2 million individuals in fiscal year 2000 to 40.3 million in fiscal year 2010, and to 44.7 million in fiscal year 2011. Fluctuations in the number of SNAP participants in the last 16 years have broadly tracked major economic indicators
When challenged to do as others have and take the SNAP Challenge for a week, Bolling deflected the subject. Previously, Fox News' Andrea Tantaros referred to the prospect of living on just over $130 each month as a diet plan.
It is not out of the ordinary for right-wing media figures to bemoan the growth of SNAP registers as some form of vote buying, dependency culture, or expansionist nanny state. Food assistance is a common and easy target for the right-wing media, which need not provide evidence to support baseless claims. Bolling in particular is not shy about attacking those in dire need of adequate nutrition.
However, the Fox host leapt into "trutherism" territory during the following exchange:
BILA: We wasted $2.2 billion just in waste, in fraud
ROGINSKY: According to their auditor, 1 percent fraud.
BOLLING: One percent? Julie, you and I go way back, we're very good friends, right? Where in the world is there 1 percent waste and fraud?
When challenged to provide a statistic to back up his claim that food stamps are wrought with corruption and waste, with recipients using assistance to buy alcohol and drugs, Bolling contended the following:
BOLLING: I'm going to have to push back on your "one percent".... I'll throw something out there. I'll bet you it's closer to 50 percent than 1 percent.
According to the Department of Agriculture's Food and Nutrition Service, the fraud and waste rate is roughly 1 percent. Bolling's claim is not just wrong, it is wrong by a factor of 50, or nearly 5,000 percent.
Fox News is alone in casting a negative light on the latest weekly jobless claims update from the Department of Labor, continuing its false narrative that positive labor market developments are somehow linked to workforce dropouts amidst a weak recovery. In doing so, the network completely ignored that the average number of new unemployment claims is at its lowest point in nearly six years.
On August 8, the Department of Labor released its weekly jobless claims report. The data show a marginal week-to-week increase on jobless claims, increasing 5,000 from the previous week to 333,000 for the week ending August 3. This slight increase, less than two percent, is less than many economists had anticipated. Just one week after the weekly unemployment claims figure hit a five-year low, the rolling average for the past four weeks is at its lowest level since November 2007.
From Maddow Blog:
Other news outlets highlighted that despite a slight uptick the single week jobless figures remained near the five-year low reached last week. Most highlighted that the continued, steady decline in unemployment claims put the rolling average at its lowest point since before the recession. On the August 8 edition of MSNBC's Morning Joe, CNBC correspondent Kelly Evans called the news "a big beautiful report" and stated that the jobless report showed that "the pace of layoffs has slowed."
Fox opted instead to portray the latest Department of Labor report as yet another indication that the weak economy is driving discouraged workers out of the workforce. On the August 8 edition of Fox News' Fox & Friends, Fox Business contributor Nicole Petallides recognized that jobless claims have "been in the right direction overall," but failed to recognize landmark achievements of the past few weeks before launching into an unsubstantiated claim about workforce participation, particularly that the labor force is "dwindling":
Fox has a long history of downplaying positive economic news while focusing on negative spin. Completely ignoring positive employment trends is standard for the network. Just last week, Fox entirely failed to cover the Department of Labor claims report that established a new five-year low.
Fox Business host Stuart Varney falsely claimed that policies outlined in President Obama's housing speech will inflate a new housing bubble by "coercing" private banks to provide low interest rates and easy money to unfit borrowers, ultimately setting the stage for another financial collapse.
On the August 7 edition of Fox News' America's Newsroom, Varney argued that the president's call to wind down government involvement in Fannie Mae and Freddie Mac, perhaps dissolving the two mortgage giants altogether, was in fact a ploy to over-regulate private industry. According to Varney, Obama eventually planned to force other banks to lend to the "poor credit borrowers" currently served by Fannie and Freddie. Varney and Fox host Heather Childers agreed that it was a policy of lending to so-called "poor credit borrowers" that caused the financial collapse more than five years ago. They went on to state that the president's proposal would set the precedent for another crash.
Varney continued his attack on the president's housing initiatives on the August 7 edition of Fox Business' Varney & Co. with senior legal analyst Andrew Napolitano who agreed that the president "wants to transform them [Fannie Mae and Freddie Mac] ... into something more sinister" through federal regulation of the banking industry for his own political gain.
Fox is once again attacking the president for policies he does not actually support. Furthermore, they are once again blaming the financial collapse on bad borrowers who were extended loose credit through government regulation, even though economists conclude otherwise.
On August 6, President Obama spoke at Desert Vista High School in Phoenix, Arizona, on the merits of "responsible homeownership." The president outlined a vision to build upon stable growth in the housing market without burdening American taxpayers with the failures of risky borrowers and lenders. From the speech:
We've got to give more hardworking Americans the chance to buy their first home. We have to help more responsible homeowners refinance their mortgages, because a lot of them still have a spread between the rates they're paying right now on their mortgage and what they could be getting if they were able to refinance.
And we've got to turn the page on this kind of bubble-and-bust mentality that helped to create this mess in the first place. We got to build a housing system that is durable and fair and rewards responsibility for generations to come. That's what we've got to do.
The president specified that his plan will not bail out risky lenders and borrowers at the expense of the public, and that it would take steps to curtail some of the rampant market speculation that helped drive the housing bubble before the 2008-09 crash. The president indicated support for winding down the two government-backed mortgage giants; meanwhile, legislation to gradually dissolve Fannie and Freddie over the course of five years is already proceeding through the House and Senate.
President Obama also outlined a multi-step program that would allow borrowers to refinance at today's low rates, make more credit available to well-qualified borrowers, rebuild hard hit communities, and ensure affordable rent to families who opt not to buy a home.
The president also commented on the prospect of immigration reform providing a boost to the housing industry. According to The New York Times, a study by the National Association of Hispanic Real Estate Professionals estimates that the Senate's bipartisan immigration reform bill could generate up to $500 billion in mortgage lending to new citizens and documented legal residents.
Contrary to Varney's continued accusations, economists argue that loose private sector lending, rather than government-sponsored loans to "poor credit borrowers," precipitated the housing market's collapse. While Government-Sponsored Enterprises (GSEs) including Fannie Mae and Freddie Mac did contribute to the market's overall instability, a Brookings report finds that "Fannie and Freddie did not catalyze the market for subprime MBS [Mortgage Backed Securities]; rather, they started to hold such mortgages in the pools they purchased, perhaps because of shareholder pressure or to regain market share."
According to Brookings senior fellow Alice Rivlin, it was the private sector's "extraordinary decline in lending standards" that caused the crisis, and GSEs do not deserve the blame. Dean Baker of the Center for Economic and Policy Research notes that GSEs began buying junk bonds "late in the game" as a response to pressure from private market, citing a Moody's investor document. Data comparing GSE lending to the private sector indicates that GSEs took fewer risks than the private sector.
In an effort to downplay the necessity of increasing the minimum wage, right-wing media figures have forwarded the notion that minimum wage jobs are primarily for teenagers and are a "stepping stone" to higher paying future employment. However, the prospects for upward mobility among minimum wage workers remain grim.
Rush Limbaugh accused the Obama administration of "cooking the books" to show increased economic growth during the last five years, a claim that completely ignores the facts and rationale behind GDP revisions.
On July 31, the Bureau of Economic Analysis (BEA) released its report on U.S. gross domestic product, which showed the economy growing at 1.7 percent for the second quarter of 2013. In its report, the BEA noted that a "comprehensive revision" in calculating GDP was implemented "for improving and modernizing its accounts to keep pace with the ever-changing U.S. economy." The revisions generally resulted in upward estimates for national GDP, in addition to higher than previously estimated annual growth rates.
Reacting to the report and revisions on his radio show, Limbaugh forwarded the notion that the Obama administration was "cooking the books," claiming that the revisions were only implemented to paint a rosier picture of the economy under Obama.
Limbaugh's suggestion has no basis in reality.
While Limbaugh claimed that upward revisions were only applied for years during the Obama administration, the BEA clearly notes in its report that GDP figures dating back to 1929 were also recalculated:
For 1929-2012, the average annual growth rate of real GDP was 3.3 percent, 0.1 percentage point higher than in the previously published estimates. For the more recent period, 2002-2012, the growth rate was 1.8 percent, 0.2 percentage point higher than in the previously published estimates.
Additional revisions were made to the most recent five years of data to reflect new and better data sources that have emerged since initial estimates. But while Limbaugh falsely suggests this was done solely to improve the numbers for the Obama administration, revisions applied to 2007 through 2012, including two full years prior to Obama's first inauguration.
Beyond Limbaugh's blatant disregard for the facts about the timeline of the revisions, he also failed to realize that revising the formula for calculating GDP is a routine procedure intended to help the government more accurately track economic development over time. According to the BEA, "comprehensive revisions" are "carried out about every 5 years" to more accurately reflect the economy. And in an interview with Bloomberg News, Brent Moulton, associate director for national economic accounts at the Bureau of Economic Analysis, stated, "Despite the conceptual changes, we have not rewritten economic history."
Furthermore, the BEA has maintained a high degree of media transparency regarding the revisions. In an April 26 Wall Street Journal article, BEA Director Steve Landefeld was forthright with his agency's upcoming analytical revisions. From the Journal:
At the end of July, when the bureau issues its first cut at second-quarter GDP, it also will be completing a sweeping benchmark revision of GDP estimates going back to 1929. Mr. Landefeld has presided over a number of benchmark revisions, which happen every four to five years. He said the 2013 changes, which will introduce the capitalization of business and government spending on research and development, are up there in significance with the 1999 revisions, when computer software first was included in GDP.
Right-wing media often engage in trutherism over positive economic reports, consistently arguing that the Obama administration is attempting to mislead on the state of the economy. Limbaugh only adds another chapter to this series.
Fox News declined to air President Obama's economic speech, despite offering a pre-rebuttal of his agenda.
On July 30, President Obama was scheduled to address his agenda for sustainable economic growth and recovery at an Amazon shipping facility in Chattanooga, Tennessee.
On the July 30 edition of Fox News' America Live, host Shannon Bream and guest Dana Perino chastised the president's previous economic proposals as a preview to his upcoming speech. Perino stated that the Obama administration's "speeches end up being like cotton candy, you know what, melts on contact? So I give them a C minus when it comes to the content of their speeches."
Shortly thereafter, Bream informed viewers that those interested in the speech could follow it on Foxnews.com.
As the speech started, rather than airing the president's remarks, Fox brought on guest Chris Stirewalt to continue the network's general attack on his policy proposals without any context from the actual speech. Stirewalt explained that the speech offered little pragmatic solutions, and was solely based around the president's alleged desire to show he is willing to compromise.
Earlier in the day, Bream questioned on Twitter whether anyone was "still listening" to the president on the economy.
Fox Business provided a platform for a corporate lobbyist with clients in the fast food industry to dismiss striking workers' demands for higher wages without disclosing his industry ties.
Labor organizers in seven cities across the U.S. planned the largest employee walk out of the year for July 29. Thousands of employees in Kansas City, St. Louis, Chicago, Milwaukee, Flint, Detroit, and New York City will take part in what is potentially the largest fast food worker mobilization in history demanding better wages and stronger benefits from some of the country's largest and most profitable corporations.
On the July 29 edition of Fox Business' Varney & Co., host Stuart Varney interviewed Richard Berman of the Employment Policies Institute to provide a critical analysis of the walk outs. Berman dismissed the idea of raising fast food employee wages, claiming that the hike in pay would result in lower employment:
BERMAN: At $15 an hour many, I won't say a majority but many fast food restaurants are out of business, the business model just does not support those kind of wages. If people are feeling that they are not being paid adequately, then they have got to find a job someplace else
Berman, a corporate lobbyist, was allowed to provide this input without disclosing his organization's ties to the fast food industry. According to Citizens for Responsibility and Ethics in Washington, the Employment Policies Institute is one of many front groups associated with Berman which provide political cover for clients in the restaurant, hospitality, alcohol, and tobacco industries. Berman specializes in a so-called "aggressive media outreach" approach intended to "change the debate" in favor of major clients.
Leading up to his interview with Berman, Varney also promoted an advertisement by MinimumWage.com, an Employment Policies Institute subsidiary, which falsely claims that the federal minimum wage kills jobs and replaces workers with machine automation. Fox and other right-wing media outlets have a long history of championing false attacks on living wages. In April, Fox News used similar tactics to criticize a previous fast food worker strike in New York City.
In the wake of President Obama's economic policy speech, conservative media have refocused their attention to an outlandish comparison of Supplemental Nutrition Assistance Program (SNAP) participation and job creation during the Obama administration, ignoring the fact that most SNAP participants are either children or are employed and that the program is considered an effective form of economic stimulus that can help create jobs and alleviate poverty.