Economy

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  • Wash. Post Slams Paul Ryan’s “Flimsy” Health Care Reform Plan

    Editorial Board Concludes Ryan’s “Better Way” Could Lead To “Much Higher Costs” For Many, Allow States “With The Skimpiest Regulations” To “Set The National Standard”

    Blog ››› ››› ALEX MORASH

    The Washington Post blasted Speaker of the House Paul Ryan’s (R-WI) outline for replacing Obamacare, which could cut health care for millions of Americans and might lead to more rapidly rising insurance costs for an inferior product.

    Ryan released a health care reform plan on June 22 under the “Better Way” brand that he hopes will become a fixture for Republican policy making in the next Congress. The plan seeks to repeal the Affordable Care Act (ACA) -- commonly referred to as Obamacare -- and replace it with a series of tax credits for Americans to purchase private insurance. The Post picked apart Ryan’s health care agenda in a June 26 editorial, saying the plan would be “hard on the poor, old and sick” and adding that “those in late middle age could face much higher costs.” The editorial board also derided the plan, which offers no cost projections or estimates for the number of Americans who could lose their ACA-compliant insurance, for being yet another vague proposal from a Republican Party that “has no excuse for blank spaces” after so many years of fruitless opposition to the health care law.

    The Post noted that “the rate of uninsured Americans has plummeted to a historic low” since Obamacare was enacted, and Ryan’s plan does not appear capable of maintaining the same low rate. Instead, the plan would create tax credits that increase as Americans age, but it would also let insurers “raise premiums with age much more than the ACA currently allows.” Since “the proposal gives no sense that the two will come close to matching up,” it is possible that the tax credits proposed in the Ryan plan could be much smaller than the actual cost of insurance, making the reform agenda costlier for millions of middle-aged Americans currently benefitting from Obamacare. From The Washington Post (emphasis added):

    House Speaker Paul D. Ryan (R-Wis.) seemed to promise better when he announced that he would roll out an ambitious policy agenda this summer. Instead, last week he released an Obamacare alternative that is less detailed in a variety of crucial ways than previous conservative health reform proposals. The outlines that the speaker did provide suggest that it would be hard on the poor, old and sick.

    Mr. Ryan’s plan would replace Obamacare with a tax credit available to people buying insurance plans in markets regulated by the states, not the federal government.

    [...]

    The proposal hints that the credit would be sufficient to cover the cost of plans that existed before the ACA. This is not reassuring: Pre-ACA, individual-market insurance plans were often thin, with limited benefits, extensive cost-sharing and other elements designed to deter anyone who might actually need care. Without strong coverage requirements, insurers would have limited incentive to offer plans that appealed to people who may be — or may become — sick. States would be hampered in responding to these issues: The proposal would allow insurers to sell plans across state lines, so the state with the skimpiest regulations would likely set the national standard.

    People with money to put into health savings accounts (which the proposal would expand), could cover gaps in thin insurance coverage with tax-advantaged out-of-pocket spending — but this would not be a realistic option for low-income people. As for the old, the plan would scale up the tax credits with age, but it would also permit insurers to raise premiums with age much more than the ACA currently allows. The proposal gives no sense that the two will come close to matching up; as in other conservative plans, those in late middle age could face much higher costs. For the sick, meanwhile, Mr. Ryan’s plan would offer an ultimate backstop by funding high-risk insurance pools. But health-care experts caution that this approach would cost a massive amount of federal money — a fact that has caused Republican lawmakers to balk at policies like it when fleshed out.

    This harsh treatment of Ryan’s health care reform agenda mirrors the tone of criticism he drew from various quarters for each of his recent attempts to rebrand misleading Republican economic talking points as a “Better Way” forward. Ryan’s “Better Way” anti-poverty reform agenda, which was based almost entirely on right-wing media myths rather than professional economic research, was slammed by critics as being “doomed to fail” and “based on faulty assumptions.” His health care reform agenda seems to be drawn from the same right-wing media perspective, which considers the full repeal of the ACA to be of paramount importance despite the law’s continued success and the failure of every right-wing prediction of its demise to come to fruition.

  • Fox News Praises Trump’s Widely Panned Brexit Response Because He Was “In The Right Place”

    Blog ››› ››› ANDREW LAWRENCE

    Fox News’ John Roberts praised Donald Trump’s widely mocked response to the United Kingdom’s vote to exit the European Union, known as “Brexit,” claiming that Trump was “at exactly the right place, at the right time, on the right side of the issue.”

    Following the UK vote which caused worldwide economic turmoil, Trump gave a “bizarre” speech that focused on his new golf course in Scotland instead of the Brexit results. When Trump finally spoke on the referendum after being pressed by reporters, he praised the vote and welcomed the historic crash of the British currency for potentially having a positive financial effect on his Scottish golf course:

    Visiting the golf course he owns in Scotland, he praised the referendum vote, saying the British had chosen to “take their country back,” but only after he touted the sprinkler system, the drains and the luxury suites at his Turnberry resort.

    Even as his campaign sent out a fundraising email hailing the British vote as a “brave stand for freedom and independence,” he seemed at one point to welcome the crash of the British currency that threatened to undermine financial markets, noting that he might gain from it.

    “When the pound goes down, more people are coming to Turnberry,” he said.

    Trump’s response was immediately panned throughout the media. MSNBC’s Nicolle Wallace said she was “gobsmacked” at Trump’s response, noting that it highlighted the way Trump has been using his presidential bid to further his business interests. CNN’s John Avalon described Trump’s response as “completely insane,” and The Washington Post called it “a widely broadcast infomercial.”

    But on the June 26 edition of Fox News’ Special Report, Fox’s senior national correspondent John Roberts had a different view of Trump’s speech, claiming that the referendum offered Trump “the opportunity to say he has his finger on the pulse of national populism” and praised Trump for being “at exactly the right place, at the right time, on the right side of the issue”:

     

    CHRIS WALLACE: Donald Trump seemed to be at the right place at the right time, but some say HRC’s response could have been sharper.

    [...]

    JOHN ROBERTS: Donald Trump’s trip to Scotland was supposed to be all about business, but it quickly became all about politics in a way that may give him a boost back home. It was a trip that was giving Republican leaders fits, ill-timed and unnecessary, they said. Yet in true fashion, Trump found himself at exactly the right place, at the right time, on the right side of the issue.

  • Myths & Facts: The Minimum Wage

    ››› ››› ALEX MORASH

    On June 25, 1938, President Franklin Roosevelt signed the Fair Labor Standards Act (FLSA) into law and established the first nationwide minimum hourly wage. The relative value of the minimum wage has fluctuated considerably over time, but it has steadily eroded since reaching an inflation-adjusted peak in 1968 -- the $1.60 per hour wage that year would be worth roughly $11.05 today. For several years, in the face of a growing movement to lift local, state, and federal minimum wages to a livable standard, right-wing media opponents have frequently promoted a number of misleading and discredited myths about the minimum wage’s economic effects.

  • Amid Economic Turmoil, Right-Wing Media Spin Brexit As Good For Trump

    ››› ››› NICK FERNANDEZ & NINA MAST

    Right-wing media are reacting to the U.K. referendum to leave the European Union -- commonly referred to as Brexit -- by labeling the result a “very, very ominous sign for Democrats in the United States,” saying Donald Trump “looked like a genius” for saying the U.K. should leave the European Union, and claiming that “Hillary [Clinton] lost and Trump won.” Meanwhile, mainstream media warn of economic ramifications from the vote.

  • James O’Keefe Is Still Not a Journalist

    ››› ››› PAM VOGEL

    Since 2009, self-described “guerilla journalist” James O’Keefe has repeatedly embarrassed himself while attempting to launch undercover stings targeting government agencies, media outlets, and  liberal organizations and institutions.

  • A “Better Way” To Fight Poverty Based On Research, Instead Of Right-Wing Media Myths

    ››› ››› ALEX MORASH & CRAIG HARRINGTON

    Speaker of the House Paul Ryan’s (R-WI) new series of proposals -- released June 7 in a report commissioned by House Republicans titled “A Better Way to Fight Poverty” -- aims to restructure federal anti-poverty programs, but they heavily rely on myths commonly promoted by right-wing media outlets that mislead about poverty and shame the poor. On June 6, the Center for American Progress (CAP) released its own plan to reform and restructure anti-poverty programs in the United States, offering an example of what serious proposals look like when informed by serious economic research, rather than by right-wing media myths.

  • Journalists, Experts Slam Paul Ryan’s “Better Way” On Poverty

    ››› ››› CRAIG HARRINGTON

    In the week since Speaker of the House Paul Ryan (R-WI) and the Republican-led Task Force on Poverty, Opportunity, and Upward Mobility released their so-called anti-poverty agenda, titled “A Better Way to Fight Poverty,” journalists and experts heavily criticized the plan for rehashing “the same, stale, far-right ideas” pushed by Republicans in the past, and for ignoring basic facts about the inefficacy of these reforms.

  • Fox News Blasts Obama On Household Income, Fails To Mention Incomes Are Going Up

    Blog ››› ››› ALEX MORASH

    Fox & Friends co-hosts Steve Doocy and Brian Kilmeade cherry-picked new economic data to attack President Obama over the difference in median household income between now and the year 2000, but they failed to mention that median household income is still going up since it crashed after the Great Recession.

    Doocy and Kilmeade blasted Obama on the economy over new median household income data on the June 10 edition of Fox News’ Fox & Friends, but they failed to mention that recent incomes have risen year to year. Seizing on pre-recession data, Kilmeade noted that median household income is down from 2000, when the annual household median income was $57,342 in 2016 dollars. Although Fox & Friends pointed out that this is $79 more than 2016’s median household income of $57,263, the co-hosts did not note that the 2016 figure is still an increase of $2,409 from last year, continuing the post-recession upward trajectory.

    Doocy also criticized the president for not getting gross domestic product growth up to 3 percent during his tenure, falsely claiming, “President Obama has been historic … because no U.S. president has ever not had 3 percent growth in a single year.” Doocy’s bizarre claim is wrong: Republican President Herbert Hoover not only never hit 3 percent growth, but he failed to hit zero percent growth, according to data from the Bureau of Economic Analysis (BEA).

    The bureau has consistent annual data from 1930 to the present. Because of the Great Depression, the economy contracted at a rate of 8.5 percent in 1930, 6.4 percent in 1931, a staggering 12.9 percent in 1932, and 1.3 percent in 1933. The contraction in 1933 may have been even greater, had Franklin Delano Roosevelt not replaced Hoover in the White House in March of that year, and chosen to initiate the substantial government stimulus projects known as the New Deal. Hoover is also not the only example that disproves Doocy’s claim -- reliable GDP estimates prior to 1930 are difficult to find, but available data show four consecutive presidents overseeing economic growth of less than 2 percent from 1871 to 1885.

    Fox & Friends has pushed conservative misinformation on the economy before, sticking to a right-wing script reported on in an April 28 blog post by Washington Post columnist Paul Waldman. Waldman explained how Republicans mislead the American public about the health of the economy by ignoring positive economic trends. The focus of Waldman’s comparison was the “objective reality” of progress and areas for improvement specified by Democratic presidential candidate Hillary Clinton and the “laughable fantasy” of “an absolute [economic] nightmare” outlined by Republican front-runner Donald Trump, but it could have just as easily been any of the personalities at Fox News. The June 10 Fox & Friends segment that misled on median household income is just another example of right-wing media sticking to the script.