Poverty

Issues ››› Poverty
  • New Research Debunks Right-Wing Media Myths About Effects Of Paid Leave

    Research Suggests Paid Sick Leave Improves Public Health

    ››› ››› ALEX MORASH

    Several media outlets highlighted new research that found workers that had access to paid sick leave are less likely to come to work when contagious -- thus slowing the spread of diseases and improving overall public health. While this may seem like an obvious conclusion, right-wing media have criticized paid sick time and other forms of earned leave as unnecessary “giveaways” for low-wage workers.

  • STUDY: Brexit Crisis Forces Cable And Broadcast News To Host Economists

    Economists Made Up More Than 7 Percent Of Guests In The Second Quarter Of 2016

    ››› ››› CRAIG HARRINGTON & ALEX MORASH

    Economic news in the second quarter of 2016 bore striking similarities to trends established in the first quarter, as the presidential candidates’ economic platforms increasingly shaped the news. Coverage of inequality slipped from a high point last quarter, but the unprecedented economic crisis created by the United Kingdom’s so-called “Brexit” referendum did boost participation from economists to the highest point ever recorded by Media Matters.

  • Journalists Ridicule Lack Of Economic Policy During Trump’s “Make America Work Again” Convention Night

    Day Two Of The Republican National Convention Focused On Emails, Benghazi, And Clinton-Bashing

    ››› ››› CRAIG HARRINGTON

    The second day of the Republican National Convention (RNC) was billed as an opportunity to highlight Republican presidential nominee Donald Trump’s proposals to boost job creation and economic growth. Journalists blasted the RNC and Trump campaign after the speakers ignored the economy and instead attacked Hillary Clinton over issues like the Benghazi attacks and her use of a private email server.

  • CNN Lets Paul Ryan Push Discredited "Welfare Cliff" Myth During Town Hall Event

    Ryan Hypes Right-Wing Media Fiction About “Benefit Cliffs” As “The Core” Of His Anti-Poverty Agenda

    Blog ››› ››› CRAIG HARRINGTON

    CNN allowed Speaker of the House Paul Ryan (R-WI) to use a town hall event to promote his widely criticized “Better Way” poverty reform agenda unchallenged, including the discredited “welfare cliff” myth long promoted by right-wing media.

    A member of the audience -- a Catholic priest and registered Republican -- asked Ryan what plans he had “to meet the basic human needs of the poor in this country, even if they’re here illegally,” during a July 12 town hall hosted by CNN’s Jake Tapper. The questioner juxtaposed the moral imperative to serve individuals “as human beings” without asking them “for their documentation” with presumptive Republican presidential nominee Donald Trump’s “inhumane” stance on immigration.

    Ryan’s initial response was littered with right-wing media talking points about President Obama’s supposed unwillingness to “secure the border” in order to fix the country’s “broken immigration system.” Ryan’s response then shifted to a supposed solution to poverty, which was also focused on myths frequently trumpeted by right-wing media, including how welfare “benefit cliffs” trap recipients in poverty. Ryan incorrectly claimed that the government’s “current approach” to poverty actually “perpetuates” it, and suggested that a “single mom with two kids” earning roughly $24,000 per year (barely above the federal poverty threshold) would rather live in poverty than get a raise “because of all the benefits she [would lose]” (emphasis added):

    PAUL RYAN: Let me get to the poverty point you mentioned. Please take a look at our agenda. This is one of the most important reforms that I think we’re offering. Which is a better way to solve poverty -- “A Better Way To Fight Poverty.” Go to better.gop -- better.gop is where we’ve released our agenda. I spent the last four years going around this country visiting with poor communities, learning about the poor, and the suffering, and better ideas for fighting poverty. We’ve put in a very aggressive plan to go at the root causes of poverty, to try and break the cycle of poverty, and I would argue our current approach at the government of fighting poverty treats symptoms of poverty, which perpetuates poverty.

    Our welfare system replaces work. It doesn't incentivize work. And as a result, we are trapping people in poverty. It's not working. So we think that there's a better way of reigniting what I call upward mobility, the American idea, and getting people out of poverty. Please take a look at these ideas. We have lots of them. I’d love to get into it if you give me time. But this is one of the things that we are talking about. Engaging with our fellow citizens, especially those who have slipped through the cracks, especially those that have no hope, that we have better ideas for helping them get back on their feet and converting our welfare system not into a poverty trap, but a place to get people from welfare to work.

    JAKE TAPPER (HOST): Give me one idea. One poverty idea.

    RYAN: Benefit cliffs. Right now, you stack all these welfare programs on top of each other and it basically pays people not to work. So you know who the highest tax rate payer (sic)? It’s not Anderson Cooper or Jake Tapper; it is the single mom with two kids making maybe -- earning $24,000, who will lose 80 cents on the dollar by taking a job or getting a raise because of all the benefits she loses. So, what happens is, we disincentivize work. We need to taper those benefits cliffs, customize welfare benefits to a person’s particular needs, and encourage work. So, you’ve got so much time to get these benefits, you have to have work requirements or job training requirements. Customize benefits to help a person with their problem. Whether it's addiction, whether it's education, or transportation.

    Catholic Charities, by the way, is the model that I'm talking about. This is basically the Catholic Charities model. Customize support to a person and always make work pay. Make sure that you take the principles that we’ve used for welfare reform in the '90s, which are no longer really working or in place these days, to get people from welfare to work. And that's the core of what we are proposing.

    The term "welfare cliff" was popularized by Pennsylvania's Republican-appointed Secretary of Public Welfare in a July 2012 report, which claimed a "single mom" could nearly double her net income by taking full advantage of nine distinct anti-poverty programs. But the concept of a trade-off between welfare and work dates back to a flawed Cato Institute study from 1995. One thing these studies have in common is the base calculation of benefits available to a hypothetical "single mom" with children. Most American workers aren't single mothers, most recipients of government benefits don't enroll in every single available program, and the value of federal benefit programs like welfare is less now than it was in years past -- facts that are not acknowledged in right-wing media discussions of anti-poverty programs.

    Right-wing media outlets have repeatedly promoted the fantasy that low-income Americans would rather live in poverty than risk losing supposedly generous government benefits, and Paul Ryan is known for loyally parroting right-wing talking points about poverty. In fact, Ryan’s entire “Better Way” anti-poverty agenda for 2016 is built on right-wing media myths, including the so-called “benefit cliff” talking point. Journalists and experts slammed Ryan’s poverty plan, calling it a “seriously flawed” approach “based on faulty assumptions,” and concluding it is seemingly “designed to make it much harder for people in need” to access poverty alleviation programs. The same was true of his much-heralded 2014 anti-poverty plan. Ryan is right that there is a better way to fight poverty, but research by actual economists points to a reform agenda more like the factually based plan put forward by the Center for American Progress than the rehashing of right-wing myths endorsed by Ryan.

    View the full exchange on poverty and immigration from CNN’s House Speaker Paul Ryan Town Hall:

  • New York Times Op-Ed Ignores High Cost Of Low Wages In Calling To Expand Tax Credit

    Manhattan Institute Scholar Peddles Right-Wing Media Myths In Call To Increase Taxpayer Subsidies Of Poverty Wages

    Blog ››› ››› ALEX MORASH

    A New York Times op-ed by a senior fellow at the Manhattan Institute pushed the debunked claim that raising the minimum wage would hurt business and American workers and promoted the expansion of tax credits for workers struggling with poverty. The op-ed failed to mention the high public cost of pushing more of the burden on taxpayers while letting businesses off the hook from paying workers a living wage.

    Manhattan Institute senior fellow Peter Salins claimed that raising the minimum wage constitutes “playing a kind of economic Russian roulette” in a July 6 op-ed in The New York Times, suggesting that instead of raising wages, policymakers should ask taxpayers to foot the bill for increased subsidies for poverty wages. Salins’ proposal, which is a common refrain among conservatives, would shield employers from paying a living wage to their full-time workers by expanding the Earned Income Tax Credit (EITC). Salins claimed that advocates for raising the minimum wage “fail to acknowledge” that low-wage workers have access to the EITC.

    Echoing a myth frequently promoted by right-wing media, Salins alleged that workers would be “priced out of the labor market by an unrealistically high minimum wage” and that the victories advocates for raising the minimum wage have already won may cause “grievous harm.” A $15 per hour minimum wage, in Salins’ estimation, could “reduce the total number of jobs nationally by three million to five million.” From The New York Times:

    In this campaign season, politicians across the country (including the presumptive Democratic presidential candidate and perhaps even the Republican one) have called for raising the minimum wage. Not just marginally, as in the past, but all the way to $15 an hour, more than double the current national level of $7.25. Even elected officials and candidates in states with higher minimum wages like New York have jumped on the $15 an hour bandwagon. Their justification: “You can’t support a family on the current minimum wage.”

    What the advocates fail to acknowledge is that minimum-wage workers with families to support are already eligible to receive a financial boost under a national program called the earned-income tax credit. This program, instituted in 1975 and expanded since then, paid benefits to 27.5 million low-income workers in 2014. (That same year, only three million workers fell at or below the federal minimum wage, so the credit also helped millions of other low-wage workers.) Technically, such payments are classified as “refundable tax credits,” paid to qualifying workers when they file their annual income tax returns.

    [...]

    That is the beauty of the tax credit; it helps low-skilled workers in proportion to their household need, taking pressure off the minimum wage as the only guarantor of a “living wage.” The credit thus performs a crucial function in a national labor market where one size most definitely does not fit all, a labor market that is enormously varied by region, by employers’ needs, by workers’ skills and by the potential for jobs to be replaced by technology. By allowing wages to reflect local economic and industry conditions, the earned-income tax credit makes it possible for all unskilled workers to have jobs — including those not eligible for the credit, like teenagers, single young adults or semiretired older people, who would otherwise be priced out of the labor market by an unrealistically high minimum wage.

    Salins advocated for policies similar to those recently endorsed by Speaker of the House Paul Ryan (R-WI) and identified Ryan in the op-ed as a supporter of expanding the EITC (Ryan’s proposals also ignore the possibility of raising wages or strengthening worker rights). Salins suggested that a hypothetical working mom in a minimum-wage job with multiple dependent children already stands to benefit from the EITC, even though those income supports combined with her low wages would still leave her entire family in poverty. Salins did not mention that progressive groups such as the Center For American Progress (CAP) support raising the minimum wage and expanding the EITC along with other tax credits targeted at low-income families. The EITC has been shown to assist families in poverty, but it alone does not solve the problem of poverty, which is why CAP supports a multipronged approach to assisting low-income families: expanding EITC, raising the minimum wage, increasing educational opportunities, and strengthening worker protections.

    While the EITC program can correctly be called “the most progressive” part of the tax code, expanding the credit would not be free -- and the federal government already spends $68 billion per year on the program. Whereas expanding the EITC would cost taxpayers money, simply raising the minimum wage would actually save money and shift the responsibility of paying a living wage onto businesses. According to a June 2016 report jointly produced by Oxfam America and the Economic Policy Institute (EPI), raising the federal minimum wage to $12 per hour would reduce federal spending on anti-poverty programs like the EITC by $17 billion.

    Low-wage industries create burdens on taxpayers; the notoriously low-wage fast food industry alone costs taxpayers nearly $7 billion annually. Salins’ claim that the American economy would lose millions of jobs from a $15 per hour wage is also suspect because he based his numbers off a model that did not predict jobs losses, but rather the potential for a slightly lower rate of job growth. Right-wing media have a long history of pushing the same unsubstantiated arguments that Salins parroted in the Times -- claiming raising the minimum wage will kill jobs, hurt low-wage workers, and harm the economy -- all of which economists have repeatedly debunked.

  • 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.

  • Ryan's "Better Way" Poverty Plan Is Based On Myths From Right-Wing Media

    ››› ››› ALEX MORASH

    Speaker of the House Paul Ryan (R-WI) and the Republican-led Task Force on Poverty, Opportunity, and Upward Mobility released the GOP’s latest policy plan to cut government anti-poverty assistance programs. Many of the arguments in favor of Ryan’s proposed reforms are based on easily debunked right-wing media myths and poor-shaming. Ryan’s rhetoric in this poverty “reform” agenda -- titled “A Better Way to Fight Poverty” -- is gentler than in his previous policy proposals. But his plans are still based on myths, and his solutions once again are focused on gutting vital programs designed to assist Americans struggling to make ends meet and families in need.

  • Paul Ryan Parrots Right-Wing Media Talking Points To Smear DC’s Minimum Wage Increase

    Ryan’s Agenda To Lift Americans Out Of Poverty Skips Over Raising Sub-Poverty Minimum Wages

    Blog ››› ››› CRAIG HARRINGTON

    Speaker of the House Paul Ryan (R-WI) concluded a June 7 press conference meant to highlight his recent proposals to reform federal anti-poverty programs by confirming that he remains opposed to initiatives aimed at raising local, state, and federal minimum wages. Ryan’s stated opposition to the minimum wage recycles easily debunked right-wing media myths about the supposed negative side-effects of living wages.

    On June 7, the speaker released a report from the Task Force on Poverty, Opportunity, and Upward Mobility. The plan outlines a number of standard conservative proposals to “reform” anti-poverty programs in the United States, but one thing it almost completely ignores is the minimum wage. In fact, the lone mention of the word “minimum wage” appears as part of an argument pushing the debunked “Welfare Cliff” myth, the claim that low-income, single moms are so heavily subsidized by government benefits that they have no incentive to pursue professional advancement.

    At the conclusion of his press conference, Ryan was asked by two reporters to comment on a plan in Washington, D.C. to raise the municipal minimum wage to $15 per hour by 2020 and then index it to inflation. In just over a minute, Ryan proceeded to parrot numerous debunked charges commonly leveled against the minimum wage by right-wing antagonists. From CNN Newsroom:

    Ryan’s anti-minimum wage talking points are either misleading, or outright false. Ryan also missed basic facts of D.C.’s minimum wage initiative, which the Economic Policy Institute (EPI) estimates will result in increased wages for one-fifth of the city’s private sector workers.

    Increasing The Minimum Wage Does Not Hurt Entry-Level Workers

    Ryan claimed that raising the minimum wage “prices entry-level jobs away from people” before engaging in the common right-wing media tactic of reciting a story of his own youthful experiences working in the fast-food industry.

    Right-wing media frequently claim that minimum wage positions are meant to be entry-level jobs (usually just for teenagers), but the fact is that the majority of minimum wage workers are adults over the age of 25 and less than one-quarter of minimum wage workers are aged 16 to 19. Women make up a disproportionate number of minimum wage workers, and according to July 2015 research from EPI, stand to benefit considerably from an increased minimum wage.

    Fast-Food Jobs Were Never The First Rung On A Ladder Of Upward Mobility

    Ryan claimed that working at McDonald’s was “a great way to learn skills,” a wage and job mobility myth about fast food workers frequently parroted by right-wing media. But according to a July 2013 report by the National Employment Law Project (NELP), the fast-food industry is particularly bad at providing actual opportunities for advancement to low-wage workers. Entry-level workers account for 89 percent of fast food industry workers, and only a tiny fraction move on to management or ownership positions.

    Economic Growth And Job Creation Is Not Enough To Curb Poverty

    Ryan concluded his remarks by saying that he does not want to “cap” wages, he wants to “unleash[]” them, and institute policies that create “the kind of economy, and economic growth … that help get people better jobs, in a better economy, that has a more promising future for them.” Those claims echo a common right-wing media myth, that economic growth can indirectly lift millions of Americans out of poverty without the need for targeted programs.

    But the budget, economic, and tax proposals Ryan and his fellow Republicans repeatedly support do not generate the economic growth they promise. The trickle-down economic principles he has spent a career endorsing are a proven failure.

    If economic growth alone was the key to solving poverty and reducing economic inequality, both would have been wiped out decades ago. According to a January 29 report from the Brookings Institution, the relationship between economic growth and improved economic inclusion is “relatively weak” across the United States. The Brookings research seems to support a hypothesis endorsed by economists Jared Bernstein of the Center on Budget and Policy Priorities (CBPP) and Elise Gould of the EPI, who argue that economic growth alone is not enough to reduce economic insecurity in the face of persistent inequality.

  • Are Paul Ryan’s Poverty Reforms Still Trump-Endorsed?

    Media Should Question The Speaker And Presumptive GOP Nominee About The Compatibility Of Their Poverty Proposals

    Blog ››› ››› CRAIG HARRINGTON

    Presumptive Republican nominee Donald Trump and Speaker of the House Paul Ryan (R-WI) have engaged in a war of words regarding Trump’s racist attack on the federal judge presiding over two class action lawsuits against Trump University. Despite the recent infighting, Trump and Ryan seem to agree in principle on the latter’s vision for a complete overhaul of federal anti-poverty programs. Reporters need to ask the Republican nominee, and the speaker, if the Ryan reform agenda is truly Trump-endorsed.

    During an appearance on the June 5 edition of CBS’ Face the Nation, host John Dickerson asked Trump to comment on Ryan’s June 2 endorsement of his presidential candidacy. Trump responded that he found Ryan “appealing” because “he’s a good man” who “wants good things for the country.” Trump said that he expected to “agree on many things” with the highest-ranking elected Republican in the country, specifically citing Ryan’s positions on poverty:

    Trump’s decision to bring up Ryan’s supposed zeal to “take people out of poverty” was no accident, as it had been widely reported that the speaker planned to roll out his renewed poverty reform agenda in the coming days. On June 7, Ryan released a report from the so-called Task Force on Poverty, Opportunity, and Upward Mobility.

    The report was nothing new for Ryan, closely echoing the positions espoused during the speaker’s sham poverty forum in January and his appearance at the Conservative Political Action Conference (CPAC) in March. It struck a softer tone than the overt poor-shaming Ryan has promoted in the past, but it still pushed the same kinds of policies that MSNBC’s Steve Benen previously slammed as “brutal” for the poor.

    During Ryan’s June 7 press conference announcing the proposed poverty program reforms, he repeatedly stated that his plan would have “a better likelihood of passing” if Trump were president of the United States. From the June 7 edition of CNN Newsroom:

    Media outlets are notorious for stumbling into the role of Ryan’s public relations outfit, frequently portraying his budget, economic, and tax reform policies as serious proposals rather than right-wing agenda items. The instinct to treat Ryan as a voice of reason has been particularly pronounced since the speaker decided to zero in on poverty.

    Ryan has now formally endorsed Trump for president, and Trump has tacitly endorsed Ryan’s proposed reforms. Now that the final plan has been made public, reporters need to ask Trump if he actually endorses Ryan’s plan. And they should ask Ryan if he can accept the endorsement of a man whom he just accused of engaging in “the textbook definition of a racist comment” with his attacks on a Hispanic federal judge.

  • Will The Media Fall For Paul Ryan’s Sham Poverty Proposals Again?

    ››› ››› ALEX MORASH

    With Republican House Speaker Paul Ryan slated to release a new proposal to “reform” American anti-poverty programs on June 7, media should be aware of his long history of promoting “far-right” and “backward-looking” policies that would enact draconian cuts to vital programs for families in need and actually "exacerbate poverty, inequality, and wage stagnation."

  • Conservatives Spark Attack On Latino Civil Rights Organization For Helping Hispanic Homeowners

    Right-Wing Media Falsely Claim That Settlement Payments From Institutions Responsible For The Financial Crisis Create “Liberal Slush Fund” For Progressive Groups

    ››› ››› CRAIG HARRINGTON

    Right-wing media have spent years attacking the Department of Justice’s handling of multi-billion dollar settlements from financial institutions partly responsible for the housing and financial crisis in 2008 and 2009. Conservative outlets falsely allege that the DOJ used settlement payments to create a “liberal slush fund” to disburse millions of dollars to nonprofit organizations like the nonpartisan National Council of La Raza (NCLR), even though these groups are certified housing counseling agencies.

  • Trump's Economic Policy Team Spreads Right-Wing Media Lie Tying Clintons To Housing Crisis

    Larry Kudlow And Stephen Moore Attempt To Distract Media Scrutiny Of Trump’s Statement On Housing Crisis By Attacking Clintons

    Blog ››› ››› ALEX MORASH

    Right-wing economic pundits Larry Kudlow and Stephen Moore claimed that Bill and Hillary Clinton are partly to blame for the housing crisis that rocked the economy during the Bush administration because of their support of the Community Reinvestment Act (CRA), a program intended to expand American home ownership. Kudlow and Moore, who both have served as economic policy advisers to presumptive Republican presidential nominee Donald Trump, pushed this repeatedly debunked myth while attempting to deflect attention from Trump's 2006 statement relishing the potential profits he could reap during a housing and financial crisis.

    Kudlow and Moore falsely claimed Hillary Clinton was partly responsible for the housing crash in a May 29 op-ed in The Washington Times, adding that she has no right to lambast Trump for stating in 2006 that he had hoped the housing market crashes so he could buy properties cheaply. Trump has faced continued scrutiny over this statement. New York magazine even called it “a new, lurid reason why he should never be president” and media interest only grew after Sen. Elizabeth Warren (D-MA) called the GOP front-runner “a small insecure money grubber who doesn’t care who gets hurt so long as he makes money off it.” From Kudlow and Moore’s Washington Times piece:

    It turns out that Donald Trump has been very good at buying low and selling high, and it helps account for his amazing business success.

    Now Hillary Clinton seems to think it’s a crime. Campaigning in California last week she’s wailed that Mr. Trump “actually said he was hoping for the crash that caused hard working families in California and across America to lose their homes, all because he thought he could take advantage of it to make some money for himself.” She’s assailing Mr. Trump for being a good businessman — something she would know almost nothing about because she’s never actually run a business, though she did miraculously turn $1,000 into $1 million in the cattle futures market many years ago.

    [...]

    What is so hypocritical about the Clinton attacks is that it wasn’t Trump, but Hillary, her husband, and many of her biggest supporters who were the real culprits here.

    Kudlow and Moore’s anti-Clinton attack is based on their claim that expanding access to mortgages to help low-income Americans buy homes was part of the catalyst for the housing crisis. The two also claimed that then-Sen. Hillary Clinton “went to bat for the housing industry” -- ignoring that Clinton actually pushed for tougher regulations on the financial industry in 2007.

    Top economists reject the idea that President Clinton and his policies are to blame for the financial crisis -- including the current and former Federal Reserve chairs from Republican and Democratic administrations. Former Fed chairman Ben Bernanke disputed this myth in a November 2008 statement demonstrating that after studying the CRA for over 30 years the Federal Reserve's findings “runs counter to the charge that CRA was at the root of ... current mortgage difficulties." Current Federal Reserve chairwoman Janet Yellen found that the CRA did not cause problems but instead the CRA increased “responsible lending” in a March 2008 speech when she was the president and CEO of the Federal Reserve Bank of San Francisco.

    Kudlow and Moore have 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." Kudlow has made many statements berating Americans and even lectured single parents about poverty at an appearance at the Conservative Political Action Conference (CPAC) -- even though he admitted to having "virtually no knowledge in this field."

  • STUDY: Sunday Shows Less Likely Than Weekday Competitors To Discuss Poverty

    Fox News Talks A Lot About Inequality And Poverty, But Promotes Policies That Would Make The Problems Worse

    ››› ››› CRAIG HARRINGTON

    In the first quarter of 2016, prime-time and evening weekday news programs on the largest cable and broadcast outlets mentioned poverty during roughly 55 percent of their discussions of economic inequality in the United States. During the same time period, Sunday political talk shows mentioned poverty in only 33 percent of discussions of economic inequality.