Economy

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  • Conservative Opposition To Overtime Pay Brought To You By The National Retail Federation

    NRF Claims Overtime Expansion Will “Demote” Working Americans “To Clock-Punchers”

    Blog ››› ››› ALEX MORASH

    Right-wing media and Republican politicians blasted the Labor Department’s decision to update and expand overtime protections, clearly taking their cues from the National Retail Federation (NRF) -- a business association known for spreading falsehoods on worker rights. The NRF and its allies are portraying overtime expansion as something that will hurt workers and the economy, ignoring the association’s own report, which found that the change would likely result in new jobs and fewer unpaid hours for retail workers.

    The Department of Labor released an update to overtime rules for salaried employees on May 17, raising the minimum annual salary threshold to qualify for guaranteed overtime pay from $23,660 to $47,476 -- an announcement that was denounced by right-wing media. Conservative outlets claimed the rule was “interfering” with businesses and would result in less flexibility and possibly lower pay, citing the NRF’s 2016 report “Rethinking Overtime” as proof, but they failed to acknowledge that the NRF has consistently opposed better pay for workers, fair scheduling, and collective bargaining rights. Contrary to claims that the expanded overtime will harm the economy, the NRF’s own report found the overtime rule would lead to over 117,100 new part-time jobs.

    The Wall Street Journal decried the updated overtime rule in a May 18 editorial, claiming employers will lower salaries as a result. The Journal cited the NRF study, which found that businesses will “shift about a third of salaried retail and restaurant workers to hourly status” and bizarrely pointed to the study’s finding that one in 10 workers on salary will work fewer hours (which are already unpaid) as proof that the rule is not in the best interests of employers or workers. Townhall also pushed the narrative that salaried workers working fewer unpaid hours is a negative, citing NRF’s report.

    During NRF’s campaign against overtime expansion, the lobbying group has claimed the new rule is “outrageous” and will force employers “to demote their middle management professionals to clock-punchers.” On the May 18 edition of Fox News’ Special Report, NRF senior vice president David French called the rule “a massive overreach.” Earlier that day on Fox’s America’s Newsroom, correspondent Kevin Corke said the rule will mean “more red tape and fewer advancement opportunities” and falsely claimed that “most of the people impacted by this change will not see any additional pay.” Sen. Tim Scott (R-SC) echoed NRF’s statement on the May 19 edition of Fox Business’ Varney & Co., claiming the overtime rule imposes “more red tape on job creators, which translates into fewer opportunities for people.” In statements released May 18, Senate Majority Leader Mitch McConnell (R-KY) referred to the overtime rule as “more red tape” while House Speaker Paul Ryan (R-WI) claimed it was an “absolute disaster” that will end up “hurt[ing] the very people it alleges to help.”

    Despite the coordinated condemnation from conservative media outlets and politicians, overtime expansion is vitally important in a country where 50 percent of full-time workers already work more than 40 hours per week. In an April 21 op-ed in The New York Times, economist and former Labor Secretary Robert Reich argued that many Americans are unaware that overtime protections have eroded over generations, and he noted that working unpaid overtime limits worker productivity and hiring. Reich also pointed out that the proliferation of unpaid overtime contributes to soaring corporate profits.

    The Economic Policy Institute (EPI) found that overtime expansion will “reduce excessive hours of unpaid work” while adding at least 120,000 jobs in the retail sector -- the very one the NRF claims to represent. The rule change is also expected to change employer behavior; some employers will hire more workers, while other employers will become more efficient. Employees in many instances work unnecessary hours because company cultures value “how much people work (or seem to)” instead of “the quality of their output,” according to an article by professors Erin Reid and Lakshmi Ramarajan in the June 2016 edition of the Harvard Business Review.

    The NRF has a history of pushing a right-wing, anti-worker agenda. The group opposes collective bargaining and fair scheduling, and was an outspoken opponent of increasing the federal minimum wage to $10.10 per hour when the debate first gained prominence in 2014.

  • Right-Wing Media Assail Expansion Of Overtime Pay Protections To Millions Of Workers

    ››› ››› CRAIG HARRINGTON & ALEX MORASH

    Right-wing media assailed new overtime rules released by the Department of Labor (DOL) on May 17, which expand overtime pay protections to 4.2 million American workers previously exempt from compensation under outdated provisions of the Fair Labor Standards Act (FLSA). The new rule updates the minimum salary threshold to qualify for guaranteed overtime pay from $23,660 per year to $47,476 per year, and pegs the threshold to inflation going forward.

  • Fox Business Mocks Clinton's Voice In KY Speech, Ignores Her $30 Billion Plan For Coal Country

    Right-Wing Media Have Spent Years Attacking Hillary Clinton For The Sound Of Her Voice

    Blog ››› ››› ALEX MORASH

    Fox Business completely ignored the economic details of policy proposals outlined by Democratic presidential candidate Hillary Clinton during a recent speech in Bowling Green, Kentucky, including a $30 billion plan to revitalize coal country, opting instead to mock the sound of her voice.

    On May 16, Clinton gave a 31 minute speech outlining economic policy goals she intends to achieve as president, according to The Courier-Journal. These goals included “reducing college debt, raising wages of workers, giving equal pay for equal work and improving the Affordable Care Act,” as well as her “$30 billion plan to revitalize coal country.” Clinton’s coal country revitalization plan creates protections for coal miners’ pensions, ensures adequate funding for local public schools, and provides job training and small business assistance for places once dominated by coal -- an industry that has seen economic forces lead to its decline.

    Fox Business host Stuart Varney asked Gov. Phil Bryant (R-MS) to listen to Clinton’s voice during the speech and critique it during an interview on the May 17 edition of Fox Business’ Varney & Co. Varney thought “she used a Southern accent.” Bryant joked that Clinton could join the Blue Collar Comedy Tour if not elected president, and claimed that her supposed “pandering to the crowd” was “a little insulting.” At no point during the discussion did either man reference the policies Clinton actually outlined in her speech.

    Right-wing media have repeatedly attacked Clinton’s voice for nearly a decade while ignoring the substance of her remarks. Attacks against Clinton’s voice by right-wing media ranged from her volume, to her allegedly offensive Southern accent, and her supposed use of “a blackface voice” when addressing an African-American audience. A Fox contributor once suggested that Clinton would “speak with a lisp” if she attended an event hosted by the lesbian, gay, bisexual and transgender community. These sexist attacks on Clinton’s voice are well documented and attempt to distract from the content of the candidate's positions.

    Watch the full exchange from the May 17 edition of Fox Business’ Varney & Co.:

    STUART VARNEY (HOST): One more thing for you, governor. Hillary Clinton was campaigning in Kentucky, and I think she used a Southern accent, and I want you to listen to it and critique it for a second. Roll tape.

    PHIL BRYANT: Do I have to?

    [...]

    VARNEY: Alright, governor, I do have an accent myself. Would you care to critique the accent you just heard?

    BRYANT: You know, if she doesn't get elected president, there may be an opening on the Blue Collar Comedy Tour for her with that accent. We'd have to get her a little better jokes, but of course it's a little insulting to hear that type of thing happen. But, she’s pandering to the crowd, Stuart. Some politicians do it, I won't hold that against her too much, and she needs to work a bit on it and maybe throw a “y'all” in there. But what we want to hear is what she is going to do about appointing Supreme Court judges [sic]. She’s been silent on that issue so far, and I’d like to hear if it’s going to be a Bernie Sanders, or who some of her Supreme Court nominees may be when she gets to be president of the United States.

  • Conservative Media Keep Relying On Shoddy Research From This Anti-Immigrant Group To Push Xenophobic Agenda

    Blog ››› ››› CRISTINA LOPEZ

    Fox News and numerous other conservative media outlets uncritically presented the misleading conclusions of a May 2016 report by the anti-immigrant Center for Immigration Studies (CIS), which claimed that immigrant-headed households consume more welfare than households headed by native-born people. Right-wing media have ignored criticism from experts pointing out the report’s methodological flaws and exaggerations in order to present immigrants as a fiscal burden.

    Right-wing outlets including Breitbart, Newsmax, and The Daily Caller hyped the May 9 CIS report claiming that immigrant-headed households receive more welfare than households headed by native-borns. On May 12, Fox correspondent Eric Shawn presented the study’s claims uncritically during the “Truth Serum” segment of Fox’s The O’Reilly Factor. Host Bill O’Reilly introduced the segment by announcing the story was about “tax money going to support illegal aliens”:

    Experts have already leveled criticism at the report. Immigration policy analyst Alex Nowrasteh wrote that “The CIS headline result … lacks any kind of reasonable statistical controls” and that “CIS’ buried results undermine their own headline findings.” The American Immigration Council called the report “fundamentally flawed” and criticized its methodology as “creative accounting”:

    The biggest shortcoming of both reports is that they count the public benefits utilized by U.S.-born children as costs incurred by the “immigrant-headed households” of which they are a part—at least until those children turn 18, that is, at which point they are counted as “natives.”

    The problem with this kind of creative accounting is that all children are “costly” when they are young because they consume educational and health services without contributing any tax revenue. However, that situation reverses when they are working-age adults who, in a sense, “pay back” in taxes what they consumed as children. So it is disingenuous to count them as a “cost of immigration” one minute, and then as native-born taxpayers the next minute.

    According to the Southern Poverty Law Center (SPLC), CIS has ties to hate groups in the nativist lobby and “has never found any aspect of immigration that it liked, and it has frequently manipulated data to achieve the results it seeks.” CIS has repeatedly been criticized for publishing shoddy research work that includes the “misinterpretation and manipulation of data” and methodologies that are “deeply flawed.”

    These criticisms of the new report received no mention on right-wing media reports on the study. Previous equally flawed CIS studies have been similarly promoted by conservative media, indicating a pattern: CIS publishes a study with anti-immigrant conclusions, and right-wing media ignore facts to report it uncritically, despite expert criticisms pointing to methodological flaws, nuances, or controls that undermine the study’s conclusion. This cycle joins other dishonest strategies from the immigrant smearing playbook that have been repeatedly employed by right-wing media.

  • Right-Wing Economist Steve Moore Pushes Trump Tax Plan In Hypocritical USA Today Op-Ed

    Blog ››› ››› ALEX MORASH

    Conservative economist Stephen Moore lambasted President Obama’s performance on the economy -- claiming the Obama administration accumulated too much debt and generated too little economic growth -- in an op-ed championing Donald Trump’s plan to cut taxes for the wealthy and corporations, which will drive up even more debt and is virtually guaranteed not to grow the economy.

    Moore claimed in a May 10 op-ed published by USA Today that Donald Trump's tax plan is "designed to supercharge growth" and break with years of supposedly lackluster "Obamanomics." He chided Obama for presiding over "the weakest economic recovery in 75 years" and accumulating "almost $8 trillion" in national debt, even though the annual deficit has actually been decreasing since 2011, the unemployment rate has been cut in half since the president’s first year in office, and the economy has created 14.2 million jobs since the labor market bottomed out in early 2010. From USA Today:

    It’s no mystery why. Obamanomics has given us the weakest economic recovery in 75 years. Wages are flat or falling for all but those in the top 10%. And our national debt has risen by almost $8 trillion in seven years.

    [...]

    The Trump tax plan is designed to supercharge growth, much like President Kennedy did in the 1960s and President Reagan did in the boom years of the 1980s with their tax reductions.

    [...]

    The biggest deficit we need to urgently fix is our growth deficit. We must pump up our GDP growth from the anemic 1% rate of Obama’s past six months up to a sustained 4% under Trump. Just 2% faster growth reduces our budget deficit over a decade by more than $5 trillion.

    Liberal economists pout that this growth is impossible for America, but that’s what people said in the miserable 1970s. Reagan (and JFK before him) proved that with the right policy incentives that get government off the back of business, a new era of prosperity is just around the corner.

    Moore advocated for Trump’s tax plan as an alternative to Obama’s economic record, a plan that even the most generous estimates show will produce larger budget deficits and greater debt accumulation than witnessed during the Obama administration. The nonpartisan Tax Policy Center (TPC) and the conservative Tax Foundation each scored Trump’s tax plan and found that it would explode the deficit by $9 to $12 trillion over the next decade, on top of $9.4 trillion in projected deficits at current spending levels. The Tax Foundation’s analysis further claimed that Trump’s tax plan would boost investment and wage growth while creating up to 5.3 million new jobs, but those figures come from a so-called “dynamic” scoring model that has been criticized for overestimating the stimulative value of tax cuts.

    Moore’s claim that Trump’s tax plan would create 4 percent economic growth is reminiscent of claims by failed Republican presidential candidate Jeb Bush, which experts quickly dismissed as “nonsense” and “wizardry.” According to a September 2014 report from the Brookings Institution, tax cuts do not necessarily create economic growth and they can even discourage growth by undermining economic incentives to invest. A September 2012 report from the Congressional Research Service (CRS), which was suppressed by Senate Republicans, similarly found no correlation between tax cuts and economic growth, but it did caution that tax cuts for high-income individuals “appear to be associated” with rising inequality.

    Moore has a long and well-documented history of distorting facts on the economy. Nobel Prize-winning economist and New York Times columnist Paul Krugman, who has spent years documenting Moore's repeated failures in economic policy, recently slammed the right-wing commentator’s "impressive lack of even minimal technical competence."

  • An Extensive Guide To The Fact Checks, Debunks, And Criticisms Of Trump’s Various Problematic Policy Proposals

    ››› ››› TYLER CHERRY & JARED HOLT

    Over the course of the 2016 presidential primary, presumptive Republican presidential nominee Donald Trump has laid forth a series of problematic policy proposals and statements -- ranging from his plan to ban Muslims from entering the United States to his suggestion that the United States default on debt -- that media have warned to be “dangerous,” “fact-free,” “unconstitutional,” “contradictory,” “racist,” and “xenophobic.” Media Matters compiled an extensive list of Trump’s widely panned policy plans thus far along with the debunks and criticism from media figures, experts and fact-checkers that go along with them.

  • What Media Need To Know About Trump Economic Policy Advisers Steve Moore And Larry Kudlow

    ››› ››› CRAIG HARRINGTON & ALEX MORASH

    Politico reported that Donald Trump is tapping conservative economic pundits Stephen Moore and Larry Kudlow to assist in remaking the presumptive Republican nominee’s tax plan, which has been lambasted as a budget-busting giveaway to high-income earners and corporations. Media should be aware that both Moore and Kudlow have long histories of playing fast and loose with the facts while making outlandish and incorrect claims about the economy.