Taxes

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  • The Daily Caller Used The White House Press Briefing To Advocate Gutting The CFPB

    Right-Wing Media Complain About CFPB Salaries As An Excuse To Destroy Financial Oversight

    Blog ››› ››› CRAIG HARRINGTON & ALEX MORASH

    Daily Caller reporter Kaitlan Collins recycled tired right-wing media complaints about employee salaries at the Consumer Financial Protection Bureau (CFPB) as an excuse to float the prospect of gutting the agency during today’s White House press briefing, neglecting to mention that the financial industry watchdog is not funded by taxpayers. The CFPB has long been a target of right-wing media misinformation campaigns aimed at undermining support for objective oversight of Republican-aligned special interests on Wall Street.

    During the February 9 press briefing, Collins asked White House press secretary Sean Spicer if President Donald Trump has “plans to revamp” the CFPB in light of recent reports that some of its employees stand to earn higher salaries in 2017 than Vice President Mike Pence. Collins further begged the question of whether or not Trump believes “he should be able to fire the head of the agency,” Richard Cordray, who has been under fire from congressional Republicans since assuming his position as director of the CFPB in January 2012. Spicer responded by saying “one of the things that you are going to continue to see from this president is a respect for taxpayers’ dollars, the money they spend and how they’re spent” and that federal employees should be paid “a fair wage for their service to this country.” From MSNBC Live:

    As part of a broader hit piece on the CFPB, The Daily Caller reported on February 7 that the agency pays 39 employees more than $230,000 -- the current annual salary for the sitting vice president of the United States. Other right-wing outlets -- RedState and the Washington Free Beacon -- joined in condemning the CFPB both for its higher salaries and for its supposed operation outside “normal government oversight,” obscuring the purpose behind the agency’s structure.

    While Spicer’s expressed concern for demonstrating “respect for taxpayers’ dollars” is welcome, the CFPB is not funded by tax dollars. The CFPB is funded entirely by the Federal Reserve System, which is also not taxpayer funded and actually serves as a source of additional revenue for the Treasury (emphasis added):

    The Federal Reserve does not receive funding through the congressional budgetary process. The Fed's income comes primarily from the interest on government securities that it has acquired through open market operations. Other sources of income are the interest on foreign currency investments held by the Federal Reserve System; fees received for services provided to depository institutions, such as check clearing, funds transfers, and automated clearinghouse operations; and interest on loans to depository institutions. After paying its expenses, the Federal Reserve turns the rest of its earnings over to the U.S. Treasury.

    Right-wing media have been complaining about CFPB salaries for years, but those complaints will carry extra weight if congressional Republicans find a willing accomplice in the White House to sign legislation cutting CFPB pay. A December 22 report from Bloomberg Law outlined how Republican-backed legislation would cut pay to CFPB employees by “as much as 25 percent” while pointing to October 2013 congressional testimony from AFL-CIO lawyer Daniel Silvers explaining the importance of the CFPB payscale:

    “Congressman, all the bank regulators have this ability,” Silvers said. “It’s impossible to be an effective banking regulator without the ability to hire competitively in the banking sector.” Congress has exempted the CFPB, the Fed, the Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency and some other financial regulators from the GS system, resulting in generally higher scales at those agencies.

    Today’s anti-CFPB talking points follow a Wall Street Journal editorial calling for CFPB head Cordray’s termination based on bogus charges of cost overruns in building renovations and discrimination on the part of his management team. The symbiotic, years-long campaign by right-wing media and their GOP allies to gut the consumer watchdog agency has been well-documented, and they make perfect sense given that the agency remains as “one of the few adversaries of Wall Street” left in government after Trump’s election victory.

  • 10 Facts Reporters Should Include In Stories About Efforts To Repeal Obamacare

    Blog ››› ››› CAT DUFFY

    The press failed to accurately convey the implications of a potential repeal of the Affordable Care Act (ACA) in the lead-up to the election. Now that Donald Trump is the president-elect, media must improve their health care coverage by contextualizing their stories about a potential ACA repeal and explaining the impact it would have on millions of Americans and the health care system as a whole.

    A recent Media Matters study found that in the weeks leading up to the election, television journalists overwhelmingly failed to ask any substantive questions about Trump’s health care policies or the consequences of repealing the ACA. In the two weeks before Election Day, there were only four instances of broadcast or cable news hosts or reporters bringing up a substantive question about Trump’s supposed Obamacare replacement amid 77 segments ostensibly focused on health care. This was not the first time media failed to inform the public about the Republican Party’s extremist health care policy agenda. Another Media Matters study found that evening news shows virtually ignored Speaker of the House Paul Ryan’s resurrection of his Medicare privatization scheme, a proposal that could have dangerous consequences for a program relied on by more than 55 million Americans.

    During the campaign, media outlets also lauded Trump for giving a so-called “policy” speech on health care, ignoring that the actual speech contained little to no policy specifics. This lack of attention to detail reflects a broader theme in election coverage, as studies found media overwhelmingly avoided substantive discussion of policy, focusing instead on “scandals” plaguing the Republican and Democratic nominees.

    While cable and broadcast news tended to avoid robust discussions of the impact of health care policy, right-wing media filled the void with rampant misinformation. Since the ACA passed in 2010, conservative news outlets have consistently attacked the health law with complete fictions, claiming it will explode the budget, create death panels, bankrupt Medicare, end in adeath spiral,” and facilitate a government takeover of the health care system.

    Today, media outlets regularly provide Trump surrogates with free airtime to push misinformation and avoid substantive discussion. In a series of January 3 interviews, Trump senior adviser Kellyanne Conway was given a free pass on health care policy by ABC’s Good Morning America, which neglected to even bring up the looming repeal of Obamacare. NBC’s Today and CNBC’s Squawk Box failed to push Conway with follow-up questions about how exactly the incoming administration plans to maintain popular health care reforms while repealing the law that created them. On MSNBC’s Morning Joe, Conway was allowed to push vague proposals for creating health savings accounts and allowing insurers to sell across state lines (both proposals have been highly criticized). When asked if the replacement plan is “ready to go,” Conway deflected by suggesting that planning could not start until Trump’s nominee for secretary of health and human services, Tom Price, is confirmed. The Morning Joe hosts failed to raise questions about the potential impact of the policies she promoted and allowed her to deflect from questions about the replacement plan to the irrelevant question of cabinet nominations.

    Trump and congressional Republicans pledged to make repeal of the ACA one of their top priorities, which means the press must immediately rethink its strategy when covering health care policy and focus on specifics. Media outlets must contextualize the impact of repealing Obamacare in terms of the gains that have already been achieved and how those improvements will be affected or reversed by Republican policies. Health care policy is inherently complex and confusing -- it’s the media’s job to break down the complexity and explain how repealing Obamacare will impact the lives of every American.

    1. Passage Of The ACA Has Resulted In The Lowest Uninsured Rate In Recent History

    The implementation of the ACA resulted in a record low number of uninsured Americans -- 8.6 percent in September 2016, down from 16 percent in 2010. According to estimates from the Department of Health and Human Services, more than 20 million Americans have gained health care coverage as a result of the law.

    These gains would be reversed and the uninsured rate would surpass 2010 levels if the ACA is repealed.

    2. The ACA Medicaid Expansion Provided Health Care Access For Millions Of The Most Vulnerable Americans

    The ACA’s expansion of Medicaid extended health care coverage to more than 14 million low-income Americans. Studies of the expansion showed that it helped to combat income- and race-based coverage disparities in the insurance market, improved access to coverage for people with disabilities, and significantly improved state budgets in states that accepted federal funds for the expansion.

    Conversely, proposals to repeal the expansion or reform Medicaid into block grants would gut coverage for at-risk populations and strip insurance coverage from millions of Americans.

    3. The ACA Tangibly Improved Women’s Health Care Coverage

    The implementation of the ACA significantly improved the condition of women’s health care coverage in the U.S. The ACA’s preventive services provision greatly improved access to birth control by eliminating copays -- expanding coverage to millions of women and dramatically reducing out-of-pocket costs. The ACA banned sex discrimination in health care, and put a stop to the widespread practice of “gender rating” in which health insurance companies charged women higher rates for comparable plans made available to men. The law also improved access to maternity care by classifying it as an essential service.

    Repeal of the ACA would permit the return of discriminatory practices like gender rating, reducing overall access to health care and significantly increasing out-of-pocket health care costs for women.

    4. The ACA Helped America Take Huge Steps Toward LGBTQ Equality

    The ACA helped the fight in achieving LGBTQ equality by dramatically improving access to health care for LGBTQ patients often targeted by discriminatory practices (like dropping individuals with pre-existing conditions), prohibiting sex discrimination, and guaranteeing protections to married same-sex couples regardless of the state in which they reside. Studies have shown that the ACA has reduced the number of uninsured LGBTQ people and decreased health disparities in the LGBTQ community. The law provided marketplace insurance subsidies to nearly 732,000 individuals, and its expansion of Medicaid was particularly beneficial to LGBTQ youth, who are disproportionately likely to experience poverty and homelessness.

    Repeal of the ACA would allow insurance companies to discriminate on the basis of gender, strip coverage for transgender people and transition-related care, and increase the number of uninsured people by repealing the marketplace subsidies and Medicaid expansion.

    5. Contrary To Popular Belief, The ACA Extended The Solvency Of Medicare By Over 10 Years

    The ACA has extended the solvency of Medicare by over 10 years, despite false claims to the contrary from right-wing opponents of the program. Discussions of Medicare’s budget outlook typically refer to Medicare’s Hospital Insurance program -- which covers hospital visits, nursing care, and other medical costs. Studies have shown that the ACA has extended the full budgetary solvency of the Hospital Insurance program through 2028, after which “payroll taxes and other revenue will still cover 87 percent of Medicare hospital insurance costs.” In addition to enhancing Medicare’s budget outlook, the ACA improved senior care by reducing prescription costs and extending coverage to key services.

    Medicare spending will increase by $350 billion over the next decade if Congress repeals the ACA, accelerating the program’s insolvency. Potential plans to privatize Medicare will gut access to care and cause skyrocketing health care costs for the elderly.

    6. The ACA Reduced The Budget Deficit, Reined In Medical Costs, And Reduced Economic Inequality

    Implementation of the ACA has reduced the budget deficit even more than was originally predicted by the Congressional Budget Office. Studies have shown that since the implementation of the ACA, while premiums have increased steadily, the number of individuals struggling to pay medical bills has steadily declined. While costs overall increase, they have increased by a much smaller margin than they would have if the ACA had not been enacted. Additionally, the ACA helps to combat economic inequality in the U.S., as it increases incomes in low-income households by reducing health care costs through mechanisms like the Medicaid expansion.

    Repeal of the ACA will remove vital checks on health care costs and explode the budget, adding billions of dollars to the national debt over the next 10 years.

    7. The ACA Improved Health Care Access For Minority Communities.

    The ACA helps to fight the significant health disparities among Americans, expanding minority access to free preventive care, improving the overall quality of care in minority communities, and reducing the number of uninsured persons of color. The ACA invested in community health centers, whose patients are primarily minorities. The ACA provided the foundation for other efforts to combat inequities in the health care system for communities of color, including the HHS Action Plan to Reduce Racial and Ethnic Health Disparities.

    Repeal of the ACA would significantly increase the number of uninsured people in minority communities and undo the gains made in reducing health disparities thus far.

    8. The ACA Banned Discrimination Against Those With Pre-Existing Conditions

    The ACA banned health insurance companies from engaging in medical underwriting, most commonly known as discriminating against individuals for pre-existing conditions. If the ACA were repealed, an estimated 50 to 129 million individuals -- or between 19 and 50 percent of non-elderly Americans -- could be denied access to affordable health care coverage for a pre-existing condition. This fundamental reform protects millions of Americans from being needlessly priced out of the insurance market or denied coverage for common conditions like acne or cataracts.

    Despite some claims that a Republican-sponsored replacement package could maintain the pre-existing conditions ban, existing potential plans significantly weaken consumer protections and fail to maintain the same level of coverage provided by the ACA.

    9. The ACA Provided Crucial Insurance To Young Adults

    The ACA substantially increased the number of insured young adults -- by 5.5 million individuals -- by allowing them to remain on their parent’s health insurance plan until the age of 26. Given the high unemployment rate for people ages 18-29, this provision provides a crucial lifeline to that demographic.

    While this rule is one of the most popular parts of the ACA, proponents of repeal have yet to explain how they could keep this provision while getting rid of the other parts (like the insurance mandate) that help pay for it.

    10. The ACA Resulted In The Biggest Expansion Of Mental Health Care Services In Decades

    The ACA greatly expanded coverage of mental health care services by requiring that most plans -- including all plans sold in the HealthCare.gov insurance marketplaces -- cover mental health services, classifying them as essential services. By eliminating medical underwriting and requiring parity between mental and physical health services, the ACA extended coverage to those who were previously refused on the basis of their mental health issues.

    While the mental health coverage in the ACA is far from perfect, repeal will undercut the law’s achievements, gut coverage for tens of millions of people with mental illnesses, and roll back other positive gains in related mental health legislation.

  • Trump Reportedly Considering Non-Economist CNBC Pundit To Head Council Of Economic Advisors

    Media Explain Trump’s Decision: “Kudlow Isn’t An Economist, But He Plays One On TV”

    Blog ››› ››› CRAIG HARRINGTON

    President-elect Donald Trump is reportedly considering CNBC financial pundit and conservative political commentator Larry Kudlow to replace economist Jason Furman as the chairman of the Council of Economic Advisors (CEA). Kudlow built his career in conservative media as an advocate of failed trickle-down economic policies, and he is notorious for making faulty predictions and sharing misleading analyses. He may soon be rewarded for those efforts with one of the most prestigious economic jobs in the United States.

    According to a December 15 report from The Detroit News, discredited right-wing economic pundit and Trump adviser Stephen Moore told the Lansing Regional Chamber of Commerce that the president-elect planned to name Kudlow as the chairman of the CEA before the end of the week. Moore later told the paper that he “misspoke” and that Kudlow is “on the short list” for a CEA appointment, but it is not “a done deal.”

    As The Washington Post pointed out, Kudlow’s rumored consideration for a key White House appointment is “another unorthodox pick” for the incoming administration because Kudlow “lacks a graduate or undergraduate degree in economics and has not written scholarly papers on the subject.” As has been the case with more than a dozen Trump appointees and rumored selections, Kudlow’s primary qualification for serving as the president’s chief economist is that “he plays one on TV,” as David Dayen explained in The Nation:

    The overriding quality necessary for landing a position in Donald Trump’s administration is that Trump has to know you from TV. Most of his cabinet selections have logged plenty of time in cable-news green rooms.

    [...]

    So in that context, floating Larry Kudlow to run the Council of Economic Advisers is perfectly apt. Kudlow isn’t an economist, but he plays one on TV. And more important, he confidently (and usually wrongly) favors what has to be seen as the dominant economic gospel of the Trump administration: tax cuts.

    Over the course of his long career as a right-wing media personality, Kudlow has become synonymous with the failed trickle-down economic agenda favored by conservative politicians. He has also established a track record of being “usually wrong and frequently absurd” with faulty predictions and analysis that could undermine the economic security of hardworking Americans. As outlined by The Huffington Post, Kudlow’s “spectacular record of wrongness” may be what makes him a “perfect” adviser for Trump.

    Kudlow Totally Missed The Financial Crisis, Refused To Acknowledge Recession

    According to the National Bureau of Economic Research (NBER), an award-winning nonprofit research organization that is perhaps best-known for determining a chronology of American business cycles and recessions, the Great Recession began in December 2007. Yet Kudlow published blogs on December 5, 6, and 7 of that year titled “The Recession Debate Is Over,” “There Ain’t No Recession,” and “Bush Boom Continues,” in the conservative National Review. By July 2008, as the unemployment rate continued to balloon in the seventh month of recession, Kudlow was still arguing in National Review that there was no recession or housing crisis. In May 2016, having finally come to terms with reality of the housing crash, Kudlow co-authored an op-ed in the right-wing Washington Times blaming Bill and Hillary Clinton because of a legislative initiative in the 1990s that made lines of credit more accessible to low-income families.

    Kudlow Is A Notorious Poor-Shamer

    During a March 2016 appearance at the Conservative Political Action Conference (CPAC), Kudlow participated in a panel discussion where he lectured single parents in low-income families about poverty despite professing to have “virtually no knowledge in this field.” He bragged that he is "ignorant" of many issues facing such families, but said he felt he could speak to them because "there's enough documentation for ignorant people" to talk effectively about the supposed cause-effect relationship between poverty and single parenting. In November 2014, Kudlow spoke on the same subject at the Calvin Coolidge Memorial Foundation. Kudlow also used his National Review blog to promote a column by right-winger Cal Thomas that praised his misleading remarks. Kudlow’s position that marriage is a silver bullet solution to poverty is common among right-wing media personalities and conservative politicians, but the idea has been completely discredited by experts.

    Kudlow Thought War In The Middle East Might Boost The Stock Market

    In a June 2002 column, Kudlow lamented that “the economy is doing fine but the stock market is slumping” and argued that “decisive shock therapy to revive the American spirit would surely come with a U.S. invasion of Iraq.” Kudlow apparently hoped newfound wartime confidence and a surge of military spending would inflate the economy, but as economist Dean Baker of the Center for Economic and Policy Research (CEPR) concluded in a May 2007 report on the economic impact of the Iraq War, “Military spending drains resources from the productive economy.” Kudlow’s views Middle Eastern warfare and the stock market were not isolated in Iraq, in an August 2006 column, he claimed that “global investors are cheering Israel’s advance” in a war against Lebanese fighters that left thousands of soldiers and civilians killed or injured.

    Kudlow Is A Climate Science Denier

    Media Matters conducted a study of CNBC’s coverage of climate change in 2013, finding that several CNBC figures, including Kudlow, denied the science of man-made climate change altogether. Kudlow attempted to further muddy the waters on climate science in an October 2014 blog by hyping a deeply flawed op-ed published by the conservative Wall Street Journal that misleadingly claimed “Climate Science Is Not Settled.” Kudlow’s continued aversion to the scientific consensus on climate change presents problems for U.S. economic stability, as dozens of business and industry leaders have already begun taking climatic shifts into account in their long-term planning.

    Kudlow Actually Disagrees With Trump On Trade

    One of the few economic policies at the core of Donald Trump’s presidential campaign was his opposition to major international trade deals. He spent months attacking his opponents for their support of free trade agreements like the Trans-Pacific Partnership (TPP) and promised to immediately withdraw from the deal after taking office. Kudlow has been a major TPP supporter and wrote in a May 1, 2015, column for National Review that “Obama deserves credit” for trying to get the deal signed and ratified. In a March 11 column for CNBC, in which he responded to severe criticism from fellow conservatives, Kudlow stated, “I continue to oppose Donald Trump’s trade policies.”

  • 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.

  • 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.

  • 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:

  • Experts Fear Trump Policies May Cause Economic Slowdown

    ››› ››› ALEX MORASH

    After Donald Trump's election, media and experts are predicting the president-elect’s stated policies will harm the economy if implemented in 2017 and beyond. According to expert analyses, working-class Americans will face the greatest economic disruptions as a result of Trump’s policies.

  • Trump’s Tax Returns Eclipse Coverage Of The Economy

    Media Emphasis On Tax Returns Overshadows Outrageous Tax Policies

    Blog ››› ››› ALEX MORASH

    According to Media Matters’ ongoing quarterly analyses of prime-time weekday cable news coverage of the economy, cable outlets more frequently discussed Republican nominee Donald Trump’s refusal to release his tax returns than any economic topic from July through September. Amid the flurry of coverage focused on Trump’s tax secrecy, the major cable networks missed an opportunity to also thoroughly discuss how Trump’s unworkable tax policy proposals would adversely affect the American public.

    With just one day left before Election Day, Trump has yet to release his tax returns during his run for president of the United States. According to The Huffington Post, “the writing has been on the wall for months now” that Trump would not release his tax returns before November 8. Trump’s refusal to disclose his tax returns makes him the first major party nominee to do so since 1976. Media have floated many theories for why Trump has refused to release his tax information: He may be hiding the fact that he has not paid federal income taxes; he could be covering up the news that he makes less money than he claims; or he might be trying to disguise the fact that he improperly used funds from his nonprofit foundation for personal expenses.

    In the third quarter of the year, evening cable news shows featured 63 segments dedicated to Trump’s tax returns -- more than the number of segments on actual tax policy (49) or any other economic subject. Media Matters tracked the number of segments each of the three major cable news networks -- CNN, Fox News, and MSNBC -- committed to Trump’s tax returns. Then we compared those figures to the other economic topics tracked as part of our quarterly report on coverage of the economy -- economic inequality, economic growth, tax policy, the federal deficit and national debt, health care, and the minimum wage:

    Fox News: Least Coverage, Most Spin

    Fox News spent much of the third quarter ignoring Trump’s tax returns while promoting his embrace of failed trickle-down economic policies. Fox aired the fewest segments discussing Trump’s tax returns (11) -- fewer segments than the network spent on economic inequality (38), economic growth (33), taxes (29), the debt and deficit (15) -- and the same number as network devoted to health care (11). The only economic topic Fox News had fewer segments on was the minimum wage (5).

    Fox’s economic coverage largely pushed economic claims aligned with Trump’s policies. Of the 76 segments Fox aired discussing the economy, almost one-third (24) specifically discussed the supposed benefits of cutting taxes -- a major part of Trump’s tax plan. Fox’s Hannity frequently used persistent economic inequality as a foil against Trump’s political opponents to claim progressive economic policies under President Obama had failed.

    Despite airing the fewest segments about Trump’s tax returns, the majority of Fox’s segments actually attempted to defend Trump’s decision not to release his tax returns -- and Fox was the only network that attempted to defend Trump. Out of 11 segments, Media Matters identified seven that were either attempts by the host to defend Trump’s actions or were appearances by Trump where he defended not releasing his tax returns. Five of these seven segments were on Fox News’ The O’Reilly Factor.

    MSNBC Covered Trump’s Tax Returns More Than All Economic Issues Combined

    Coverage of Trump’s tax returns on MSNBC eclipsed all other economic coverage. Much of MSNBC’s relentless drumbeat for transparency came from The Last Word with Lawrence O’Donnell, which accounted for over half of all coverage at the network, with 17 segments, followed by All In with Chris Hayes (10), and The Rachel Maddow Show (3). In total, the network discussed Trump’s tax returns in 30 segments, more than all economic segments combined (25).

    While MSNBC dedicated more coverage in the third quarter to Trump’s failure to release his tax returns than any other network, it also provided the least amount of coverage on the economy (25 segments) compared to CNN (35) and Fox News (76). MSNBC did discuss tax policy in relation to Trump's tax returns once and was the only network to do so. As was the case with CNN and Fox, MSNBC could have used more of its segments on Trump’s tax returns to provide more context on how Trump’s actual tax policy plans would increase the deficit and neglect the middle class while giving the largest tax reductions to high-income individuals. Unfortunately, MSNBC covered tax policy only 12 times:

    CNN’s Anderson Cooper 360 Pressed Trump Campaign To Disclose Tax Returns

    CNN featured twice as many segments discussing Trump’s tax returns (22) as Fox News (11). CNN also discussed the economy (35) more than MSNBC (25). Yet, while CNN did have more economic coverage than MSNBC, the network did not produce as many segments discussing tax policy (8) as MSNBC (12). And while none of MSNBC’s coverage on tax policy pushed debunked trickle-down economics, CNN did have three segments promoting the supposed benefits of tax cuts.

    CNN covered Trump’s taxes more than any single economic topic: economic inequality (16), economic growth (17), tax policy (8), the debt and deficit (4), the minimum wage (5), and health care (5). Slightly over half of the segments on Trump’s tax returns were from Anderson Cooper 360 (12). In one exchange with Trump senior adviser Sarah Huckabee Sanders, Sanders claimed Trump could not release his tax returns because he is being audited, and host Anderson Cooper answered that “what you are saying doesn't make sense.” From the September 9 edition of Anderson Cooper 360:

    Trump’s Tax Returns Outshine Trump’s Economic Agenda

    Scrutiny of Trump's missing tax returns was necessary given the possible reasons for his unprecedented breach of political norms. Trump has tried to falsely claim that he cannot release his tax returns while under audit by the IRS, but even President Richard Nixon released his tax returns during his re-election campaign in 1972, when he was under audit by the IRS.

    Trump’s tax returns are just one aspect of the concerns media and experts have had with his extreme and unconventional campaign. Trump’s economic plan has been blasted as “pie in the sky” and “magical thinking” by experts on both sides of the aisle. The conservative-leaning Tax Foundation found Trump’s proposed tax cuts will explode the deficit by $2.6 to $3.9 trillion. Media Matters identified 19 economic myths Trump has spread during this election cycle. Trump’s actions even moved 370 economists, including eight Nobel laureates, to sign a letter denouncing his repeated lies about the economy.

    Methodology

    Media Matters conducted a Nexis search of transcripts of network broadcast news and cable prime-time (defined as 8 p.m. through 11 p.m.) weekday programs on CNN, Fox News, and MSNBC from July 1, 2016, through September 30, 2016. We identified and reviewed all segments that included any of the following keywords: econom! or jobs or growth or debt or deficit or minimum wage or inequality or taxes or poverty or low income or low-income or obamacare or aca or affordable care act or health care.

  • 370 Economists Debunk Trump's Right-Wing Media Myths On The Economy

    Blog ››› ››› ALEX MORASH

    Hundreds of economists, including eight Nobel laureates, signed a letter denouncing Republican presidential nominee Donald Trump’s repeated lies about job growth, trade, immigration, the federal debt, and the state of the American economy. The misinformation the economists identified is not Trump’s alone, but the product of a right-wing media echo chamber that specializes in spreading myths about the economy to serve its partisan agenda.

    The Wall Street Journal published a letter from 370 economists on November 1 denouncing Trump’s economic policies and the distortions upon which they are built. The Journal reported that the letter was “less partisan or ideological” than similar letters aimed at political candidates and instead focused on “Trump’s history of promoting debunked falsehoods” and “conspiracy theories” instead of “engag[ing] with reality.” The economists took specific issue with Trump’s false claims that the unemployment rate is higher than the federal government reports, that increasing tariffs would lead to more U.S. manufacturing jobs, that immigration has hurt the U.S. economy, and that his proposed tax cuts will decrease the deficit. From the letter:

    • He degrades trust in vital public institutions that collect and disseminate information about the economy, such as the Bureau of Labor Statistics, by spreading disinformation about the integrity of their work.
    • He has misled voters in states like Ohio and Michigan by asserting that the renegotiation of NAFTA or the imposition of tariffs on China would substantially increase employment in manufacturing. In fact, manufacturing’s share of employment has been declining since the 1970s and is mostly related to automation, not trade.
    • He claims to champion former manufacturing workers, but has no plan to assist their transition to well-compensated service sector positions. Instead, he has diverted the policy discussion to options that ignore both the reality of technological progress and the benefits of international trade
    • He has misled the public by asserting that U.S. manufacturing has declined. The location and product composition of manufacturing has changed, but the level of output has more than doubled in the U.S. since the 1980s.

    [...]

    • He has lowered the seriousness of the national dialogue by suggesting that the elimination of the Environmental Protection Agency or the Department of Education would significantly reduce the fiscal deficit. A credible solution will require an increase in tax revenue and/or a reduction in spending on Social Security, Medicare, Medicaid, or Defense
    • He claims he will eliminate the fiscal deficit, but has proposed a plan that would decrease tax revenue by $2.6 to $5.9 trillion over the next decade according to the non-partisan Tax Foundation.

    [...]

    • He uses immigration as a red herring to mislead voters about issues of economic importance, such as the stagnation of wages for households with low levels of education. Several forces are responsible for this, but immigration appears to play only a modest role. Focusing the dialogue on this channel, rather than more substantive channels, such as automation, diverts the public debate to unproductive policy options.

    The falsehoods the economists denounce have been well-documented -- Media Matters identified 19 economic myths Trump has spread during this election cycle. The economists took issue with Trump falsely claiming the unemployment rate could be as high as 42 percent, a wildly exaggerated figure that has been repeatedly debunked after being popularized by right-wing radio host Rush Limbaugh and Fox News.

    The economists denounced Trump’s attacks on immigrants and immigration reform, which have been enabled by Fox hosts Sean Hannity, Bill O’Reilly, and others at the network. According to Vice, Trump learned his anti-immigrant rhetoric from right-wing commentator Ann Coulter, who has attacked immigrants for years. Yet, as FiveThirtyEight chief economics writer Ben Casselman pointed out, immigration has “important economic advantages” for the United States, including stoking economic growth by imbuing the population with younger and more economically productive workers and consumers.

    The economists pointed out that Trump’s proposed tax cuts will explode the deficit by $2.6 to $3.9 trillion. Media Matters has pointed out that Trump’s tax policy agenda has been discredited as “pie in the sky” and “magical thinking” by experts on both sides of the aisle, but it has nevertheless found repeated defenders in Fox News, which falsely claims huge tax cuts for the wealthiest of Americans is “how we grow the economy.” The Wall Street Journal’s editorial board has also defended Trump’s tax plan, lauding it for reducing taxes on the wealthy.

    Even conservative Washington Post columnist Jennifer Rubin -- no stranger to pushing absurd and unrealistic right-wing media narratives when it suits her -- slammed Trump’s “know-nothingism” on the economy. Conservative Chicago Tribune columnist Steve Chapman had also previously hit the GOP nominee for perpetuating “a scam, skillfully pitched to fool the gullible” with his fact-free economic populism.

    But criticism from a few conservative writers does not change the fact that conservative media outlets enabled Trump’s lies, paved the way for his presidential campaign, and built the political infrastructure he needed to conquer the Republican Party. As Media Matters and others have repeatedly pointed out, Trump is a creation of the right-wing media. His willingness to echo any number of right-wing media economic myths is further proof of that.

  • STUDY: Cable And Broadcast Coverage Of The Economy Stumbles In Election Season

    Economists Made Up Roughly 8 Percent Of Guests In Third Quarter Of 2016 Amid Rampant Misinformation From Trump Campaign

    ››› ››› CRAIG HARRINGTON & ALEX MORASH

    Cable and broadcast news outlets dedicated considerably less airtime to the economy in the third quarter of 2016 compared to the previous three-month period, as media focused increasingly on the presidential horserace. The proportion of economic news segments touching on economic inequality increased relative to the previous quarter, but the tone of coverage revealed problematic trends toward misinformation as Fox News assumed an even more prominent role in shaping the dialogue. The relative proportion of economists featured as guests during qualifying segments reached an all-time high during the third quarter as outlets struggled to keep up with Republican presidential nominee Donald Trump’s shifting and often-contradictory tax and economic policy proposals.