Economy

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  • Television News Praises Trump’s “Symbolic Coup” In Carrier Jobs Announcement

    Indiana-Based Company Convinces Trump To Give It Taxpayer Money, Still Moves Many Of Its Jobs To Mexico

    ››› ››› CRAIG HARRINGTON

    Broadcast and cable news personalities rushed to credit President-elect Donald Trump for closing a deal with the Indiana-based manufacturer Carrier that provides the for-profit company with millions of taxpayer dollars while allowing it to still outsource hundreds of jobs to Mexico. Journalists and reporters framed the agreement as a “symbolic coup” and “unadulterated win” for Trump’s incoming administration even as they acknowledged that supporting a relatively small number of jobs at taxpayer expense is an unsustainable manufacturing policy.

  • Fox News Cheers Trump Over 1,000 Carrier Jobs; Denounced Obama For Saving 1.5 Million Auto Industry Jobs

    Blog ››› ››› ERIC BOEHLERT

    Fox News and much of the conservative media slipped into messiah mode coverage this week when news broke that Carrier, the air conditioner giant, has decided to not move approximately 1,000 manufacturing jobs from Indiana to Mexico as the company had previously planned. President-elect Donald Trump took credit for having negotiated the respite.

    Cheering Trump’s hands-on approach and his commitment to the working class, Fox talkers portrayed the Republican’s maneuver in relentlessly glowing terms. “A Big Win For Donald Trump,” announced Bill O’Reilly’s show last night.

    Fox’s Stuart Varney claimed Trump had played hardball with Carrier and won: “He strong-armed them. What’s wrong with that?” (According to reports, it was likely the lure of additional tax incentives that convinced Carrier to keep the jobs in Indiana, not being “strong-armed” by Trump.)

    Trump’s cheerleader-in-chief Sean Hannity was just gobsmacked by the whole thing, saying on his radio program that he "can't think of a time in my lifetime where a president-elect or a president ever" did this. 

    Hannity loved the fact that Trump reached out to corporate America, which is fascinating because you know what Hannity didn’t love in 2009? He didn’t love when newly elected President Obama reached out to Detroit’s auto industry in the form of an $80 billion-dollar bailout. Back then, an unhinged Hannity called Obama every name in the book as conservative pundits accused the president of trying to destroy democracy and capitalism.

    Fox News and the entire right-wing noise machine relentlessly denounced Obama as he tried to rescue American manufacturing jobs, which the federal bailout eventually did. One independent study estimated the aggressive government move saved 1.5 million jobs. “This peacetime intervention in the private sector by the U.S. government will be viewed as one of the most successful interventions in U.S. economic history," the study’s author wrote.

    Lots of people might forget, especially in light of the bailout’s stunning success, but Obama’s push to help the Detroit industry once served as a defining line of GOP attack. The bailout symbolized the dangers of Obama's alleged socialist/gangster leanings. This, despite the fact it was actually President George W. Bush who unveiled the first phase of the bailout plan during the final weeks of his presidency, in order to "avoid a collapse of the U.S. auto industry."

    Nonetheless, the topic soon became a cornerstone of the Tea Party and its overheated attacks on Obama, amplified by Fox News.

    Remember how Varney this week toasted Trump for having “strong-armed” Carrier? Back in 2009, the host was furious that Obama was allegedly trying strong arm the public into buying American cars: “[N]ow you're in the position where the government somehow has to coerce or force us all into buying the small cars that it insists Detroit puts out." (Varney routinely whined that Obama was a “bully” to business.) 

    Meanwhile, Glenn Beck, then with Fox News, claimed the bailout reminded him of "the early days of Adolf Hitler." Fox favorite Michelle Malkin compared the auto deal to a "crap sandwich," and a "lemon" the U.S. taxpayers would be stuck with "for life."

    Hannity himself berated Obama for engaging in what he called a "mission to hijack capitalism." And in the infamous words of Rush Limbaugh, it was as if General Motors and Chrysler "bent over and grabbed the ankles." (Limbaugh loves Trump’s Carrier deal, by the way.)

    Question: Why would conservatives be so upset about saving American manufacturing jobs? Seems bizarre, right? But they were furious. So wrapped up in hatred for the new Democratic president, conservative pundits despised the government’s attempt to save GM and Chrysler from bankruptcies. They also seemed to despise the companies’ union workers, suggesting they were wildly overpaid. (Pundits even lied about how much the Detroit autoworkers made.)

    Republican politicians were also angry. Mitt Romney, who’s reportedly being considered for a cabinet position in Trump’s administration, derided the auto bailout as a "sweetheart deal disguised as a rescue plan," and guaranteed that if Detroit companies accepted the aid, you could "kiss the American automotive industry goodbye." 

    In the end, the bailout that Obama championed saved more than one million jobs, and Fox News still hated it.

    If only Obama had saved 1,000 Carrier jobs instead.

  • Evening News Virtually Ignores Paul Ryan’s Medicare Privatization Plan

    MSNBC Only Outlet To Vet Ryan's Scheme To Gut The Social Safety Net

    Blog ››› ››› CRAIG HARRINGTON

    Weekday evening programming on the largest cable and broadcast news outlets almost completely ignored a long-standing Medicare privatization scheme favored by Speaker of the House Paul Ryan (R-WI) in the days since he first resurrected the idea of radically reshaping the American health care system toward for-profit interests.

    During a November 10 interview with Fox News host Bret Baier, Ryan misleadingly claimed that due to mounting “fiscal pressures” created by the Affordable Care Act, the Republican-led Congress would be forced to engage with what Baier called “entitlement reform” sometime next year. Ryan falsely claimed that “because of Obamacare, Medicare is going broke” and that the popular health insurance system for American seniors will have to be changed as part of any legislation to “repeal and replace” President Obama’s health care reform legacy. From Special Report with Bret Baier:

    According to a Media Matters analysis of broadcast and cable evening news coverage from November 10 to November 27, Ryan’s plan to privatize the nationwide, single-payer health care coverage currently enjoyed by millions of seniors has gone unmentioned on ABC, CBS, NBC, CNN, and Fox News. Ryan’s so-called “premium support” plan was briefly mentioned on the November 22 edition of PBS NewsHour when co-host Judy Woodruff pressed President-elect Donald Trump's former campaign manager, Kellyanne Conway, as to whether Trump would accept Ryan’s privatization proposal. By comparison, during the same time period, MSNBC ran six prime-time segments exposing Ryan’s privatization agenda:

    According to a July 19 issue brief from the Kaiser Family Foundation, conservative lawmakers are likely to pursue “a proposal to gradually transform Medicare into a system of premium supports, building on proposals” adopted by Ryan when he served as chairman of the House Budget Committee. These so-called “premium supports” would provide each Medicare beneficiary with a “voucher” that can be used for the purchase of private health insurance; they represent “a significant change from the current system” that pays health care providers directly for services rendered.

    In essence, Ryan’s plan would privatize Medicare and redirect hundreds of billions of tax dollars that currently go to doctors, hospitals, and other medical service providers through the costly private health insurance market.

    This startling scheme bears similarities to a failed 2005 attempt by the Bush administration to partially privatize Social Security. Democratic members of Congress are already aligning themselves against Ryan’s throwback plan to gut Medicare, and it’s not actually clear if Trump is supportive of the initiative, which he refused to fully endorse on the campaign trail.

    As the Center on Budget and Policy Priorities (CBPP) pointed out last July, claims that Medicare is “nearing ‘bankruptcy’ are highly misleading,” and Ryan’s specific charge that Medicare is “broke” because of the ACA is completely wrong. President Obama’s health care reform law greatly improved Medicare’s long-term finances and extended the hospital insurance trust fund’s solvency by 11 years.

    The looming fight over the future of Medicare, which serves over 55 million beneficiaries and accounted for 15 percent of the entire federal budget in 2015, has been well-documented, but it has garnered almost no attention on major television news programs.

    Millions of Americans who rely on broadcast and cable evening news are completely unaware of the stakes in this health care policy fight. They are also unaware that Ryan’s privatization scheme would leave millions of retirees at the whims of the same private insurance market that right-wing media are currently attacking because of increased rates.

    Methodology

    Media Matters conducted a Nexis search of transcripts of weekday network broadcast evening news programs on ABC, CBS, NBC, and PBS and weekday prime-time news programming (defined as 8 p.m. through 11 p.m.) on CNN, Fox News, and MSNBC from November 10, 2016, through November 27, 2016. We identified and reviewed all segments that included any mention of “Medicare.”

  • Fox News Peddles Misleading Deficit Hysteria To Undercut Obama’s Economic Record

    Confused Fox & Friends Host Claims Trump Is Not Inheriting “A Healthy Economy” From President Obama

    Blog ››› ››› CRAIG HARRINGTON

    Fox & Friends misinterpreted a nuanced statement about long-term federal budget deficits from the president of the Committee for a Responsible Federal Budget (CRFB) while falsely claiming that President-elect Donald Trump “is inheriting the worst economy since Truman.” The comments demonstrate the continued right-wing media effort to diminish the economic successes of the Obama administration.

    During the November 20 edition of CBS’ Face the Nation, an all-conservative panel lamented the supposed failure of President Obama to rein in the federal budget deficit. CRFB president Maya MacGuineas -- whom Nobel Prize-winning economist Paul Krugman has labeled “the queen of the deficit scolds” -- argued that the incoming Trump administration will inherit “the worst fiscal situation of any president” since Truman, “as judged by the debt relative to the economy.” MacGuineas’ point about the so-called “debt-to-GDP ratio” was part of a larger argument highlighting that the tax and economic policy proposals put forward by Trump and his GOP counterparts during the campaign are entirely at odds with their promises to reduce the federal budget deficit and national debt. From Face the Nation:

    As MacGuineas pointed out, Trump’s proposals would add “over $5 trillion to the national debt,” on top of $9 trillion that was already projected to accumulate over the next decade. CRFB says Trump’s proposals are significantly more expensive than those that were put forward by Democratic presidential nominee Hillary Clinton based on an analysis that assumes his proposed tax cuts generate economic growth. In fact, decades of evidence show no stimulative effects from tax cuts.

    It is true that the debt-to-GDP ratio is currently at its highest point since the end of World War II, but there is no reason to believe the current national debt is untenable. MacGuineas clarified her point later on Twitter, reiterating that Trump actually promises to make the “fiscal situation” worse and conceding that Obama actually inherited “one of the worst economic situations” in history:

    MacGuineas’ nuanced, but probably not very useful, argument about “fiscal situations” and Trump’s irresponsible approach to the federal budget was entirely lost on the crew of Fox & Friends, which misinterpreted her remark while falsely claiming that the overall economy is in poor health.

    During a November 21 interview with former Trump campaign manager Kellyanne Conway, co-host Brian Kilmeade butchered MacGuineas’ argument, stating, “This president-elect is inheriting the worst economy since Truman,” and, “It is not a healthy economy.” Conway agreed with Kilmeade’s hollow argument, slamming the Obama administration for the pace of debt accumulation over the past eight years while neglecting to mention that even the most favorable estimates concede that debt accumulation under Trump will far exceed Obama. From Fox & Friends:

    This is not the first time that Fox & Friends has lamented the supposed fiscal shortfalls of Democratic politicians while completely ignoring the reality that Trump’s plans are demonstrably worse by the same standards.

    Deficit hysteria used to be a cause célèbre of conservative media figures, who routinely slammed Obama’s alleged negligence with the nation’s finances. In 2010, an error-filled paper from two conservative Harvard economists, which falsely claimed that debt-to-GDP ratios exceeding 90 percent immediately result in domestic economic stagnation, generated unceasing criticism of the Obama administration. For years, deficit-obsessed right-wing outlets promoted the absurd claim that the national debt was pushing the United States to the verge of collapse, and right-wing politicians who are now aligned with Trump unfavorably compared the U.S. to crisis-stricken European countries.

    It remains to be seen how sincere conservative media personalities are about the need to balance the budget and reduce the debt -- but we’ll find out the answer if Trump has the opportunity to enact budget-busting tax cuts for the wealthiest and most powerful individuals and corporations in the world.

  • Media Falsely Give Trump Credit For A Ford Plant Not Moving To Mexico

    ››› ››› JULIE ALDERMAN

    Media are uncritically hyping President-elect Donald Trump’s false claim that he should be credited for Ford Motor Co.’s decision not to relocate a plant from Kentucky to Mexico, despite the fact that the plant was never going to close and no jobs were going to be lost. While right-wing media hyped Trump’s claim on its face as proof of his political success, mainstream media echoed that pro-Trump spin in a series of misleading headlines, which critics have called out for being out of context and “completely wrong.”

  • What You Need To Know About Rumored Trump Labor Secretary Andy Puzder

    Trump Reportedly Leaning Toward Prolific Right-Wing Op-Ed Writer And Fast Food CEO To Head Department Of Labor

    Blog ››› ››› ALEX MORASH

    Media outlets have reported that President-elect Donald Trump is considering Andy Puzder, a right-wing commentator and fast food CEO, for secretary of labor. Puzder is known for writing op-eds denouncing worker rights and the minimum wage, and his company is infamous for its “supermodel-centric marketing strategy” designed to offend viewers and stoke sales.

    According to a November 15 article in Politico, Puzder, the CEO of CKE Restaurants, which operates burger chains Carl’s Jr. and Hardee’s, was on the short list to replace Tom Perez as the secretary of labor in the incoming Trump administration. The same day, The Atlantic also reported on Trump’s possible choice of Puzder, noting the CEO’s history of fundraising for Trump and his staunch opposition to Obamacare and raising the minimum wage.

    In his op-eds and media appearances, Puzder frequently peddles right-wing misinformation advocating policies that hurt American workers. Puzder has praised the job destruction that comes with workplace automation, boasting in a March 16 interview with Business Insider that he wanted to automate more of his restaurants to avoid paying worker salaries and benefits. Puzder claimed that replacing people with machines would be preferable because machines “never take a vacation” or complain when discriminated against. From Business Insider:

    "They're always polite, they always upsell, they never take a vacation, they never show up late, there's never a slip-and-fall, or an age, sex, or race discrimination case," says Puzder of swapping employees for machines.

    Puzder opposes new overtime rules proposed by the Department of Labor that would extend guaranteed overtime pay to qualified salaried workers making less than $47,476 a year. Puzder defended his position by claiming that having a salaried position -- and thus no overtime pay -- is an “opportunity” that confers “prestige” and “an increased sense of ownership” to overworked and underpaid managers. Puzder has also frequently attacked the push to raise the minimum wage and Obamacare’s health insurance expansion, misleadingly claiming that stronger wages and benefits actually hurt workers.

    Puzder even attacked working-class Americans during an appearance on Fox & Friends, claiming that low-income workers might be wary of higher paying jobs if the salary increase results in a loss of government benefits. Puzder wrote in an op-ed in The Hill of a so-called "Welfare Cliff," where employees turn down promotions that could lead to $80,000 salaries because they "don't want to lose the free stuff from the government." Yet, by Puzder's own admission, the company he runs does not pay anywhere near the $80,000 annual salary that his employees were supposedly passing up so as to qualify for anti-poverty assistance.

    In addition to being an outspoken media advocate of poverty wages in the fast food industry and an opponent of policies aimed at helping American workers, Puzder also runs a company that boosts its sales via a “supermodel-centric marketing strategy” catered to exploiting his customers’ base impulses. Puzder told Entrepreneur magazine that complaints that his ads are sexist “aren't necessarily bad” for the company and that he thinks his company’s “sales go up” amid public outcry over ads that degrade women. The fast food chain has been running these ads for years, and Jezebel compiled “a history of disgusting Carl's Jr. ads” from 2005 to 2013. Puzder’s stance on objectifying women for commercial gain is eerily reminiscent of Donald Trump’s own history of degrading remarks about women.

    As the president-elect begins the transfer of power, media need to inform Americans of Trump’s potential cabinet picks, the potential policies these cabinet members may support, and how those policies will affect American workers. Experts have already started to express fear that Trump’s proposals for the economy -- budget-busting tax cuts for the rich and unfunded deficit spending -- may create a short-term “sugar high” followed by an economic crash. The next labor secretary could exacerbate those economic worries if he or she promotes policies that undermine the livelihoods of millions of Americans.

  • Fox Business Spins Gallup Consumer Confidence Poll To Push “Trumponomics”

    Report Fails To Mention Only Group With A More Positive Outlook Since The Election Is Republicans

    Blog ››› ››› ALEX MORASH

    Fox Business spun the first post-election consumer confidence report to misleadingly claim economic confidence “increased sharply” after Donald Trump’s election, failing to note the confidence numbers swung based on party affiliation.

    During the November 16 edition of Fox Business’ Varney & Co., guest host Ashley Webster used the latest consumer confidence report from Gallup to push so-called “Trumponomics” as “a winning formula” for the American economy. Conservative columnist Liz Peek added that she thought the Gallup numbers showed Americans were “cheered up by the idea that Republicans have [control of all three branches of government]”:

    In reality the Gallup poll found the only Americans who are “cheered up” by Republicans having complete control of the federal government are other Republicans. Gallup concluded that Donald Trump becoming the president-elect of the United States “transformed the way Republicans and Democrats view the economy” but it was “too early to say” if these numbers will hold.

    Republicans, who had been unduly pessimistic about the economy under President Obama, substantially lifted their outlook on the economy after the election. According to Gallup, Republican opinions of whether or not the economy was getting better or worse went from -65 points before the election to +5 points after, while Democratic opinions on the same topic shifted from +26 points before the election to -1 point after. At the same time, Republican opinions of the current state of the economy also improved markedly after Election Day, with GOP opinions improving from -21 points to -5 points, while Democratic opinions sagged from +26 points to +17 points.

    Republican economic optimism may be short-lived after Trump takes office, as experts have expressed fear that his proposals for budget-busting tax cuts for the rich and unfunded deficit spending may create a short term “sugar high” followed by an economic crash. Trump’s proposals to severely restrict immigration and international commerce could create the conditions for another recession in the United States and his proposed monetary policies could imperil the financial system. The spending cuts and restrictions to vital anti-poverty programs proposed by Trump and congressional Republicans would push millions of working-class Americans into poverty, while his anti-trade policies could cost 4 million jobs.

    From the November 9-13 Gallup U.S. Daily Survey: