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Cavuto ignores reality in claiming "not a one" economist "credits that stimulus"

August 14, 2009 12:34 pm ET — 18 Comments

Neil Cavuto falsely claimed that "not a one, not a one" economist in the Bloomberg survey of economists "credits that stimulus" with helping the economy begin to recover. But in presenting the survey findings, Bloomberg in fact reported that Kenneth Goldstein, an economist at the Conference Board in New York, stated, "We've averted the worst, and there are clear signs the stimulus is working." Additionally, several independent economists have concluded that the stimulus has already played a significant role in helping the economy begin to recover.

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From the August 13 edition of Fox News' Your World with Neil Cavuto:

REP. CHAKA FATTAH (D-PA): If you look at the Bloomberg survey of economists, right? You see that there's a general consensus now that we're headed in the right direction.

CAVUTO: Right.

FATTAH: We are not going to pull back. We're going to go forward, and we'll be held accountable.

CAVUTO: And you also know -- no wait --

FATTAH: And let the Democratic Party be held accountable --

CAVUTO: -- you also know from that survey, not -- not a one, not a one credits that stimulus. Right?

Bloomberg quoted economist's assessment: "We've averted the worst, and there are clear signs the stimulus is working"

Economist Kenneth Goldstein: "We've averted the worst, and there are clear signs the stimulus is working." In presenting its survey of economists, Bloomberg reported in an article headlined, "U.S. Enters Recovery as Stimulus Refutes Skeptics": "Recovery from the worst recession since the 1930s has begun as President Barack Obama's fiscal stimulus -- derided as insufficient and budget-busting months ago -- takes effect, a survey of economists indicated." Bloomberg further reported, " 'We've averted the worst, and there are clear signs the stimulus is working,' said Kenneth Goldstein, an economist at the Conference Board in New York." [Bloomberg News, 8/12/09]

Independent economists say stimulus has helped economy begin to recover

Independent economists say the stimulus bill has helped the economy begin to recover. In addition to saying that it is too early for the stimulus package to have fully taken effect, many economists have also concluded that the stimulus has already played a significant role in helping the economy begin to recover:

  • Dean Baker: "The stimulus worked and we need much more." Center for Economic and Policy Research co-director Dean Baker stated, "The stimulus worked and we need much more. ... The second quarter GDP data showed clear evidence of the impact of the stimulus." [Politico, 8/2/09]
  • Robert Greenstein: Without the stimulus, "the economy and the job prospects for millions of Americans would be worse." Center on Budget and Policy Priorities executive director Robert Greenstein wrote that "the stimulus is working pretty much as policymakers intended. Without it, the economy and the job prospects for millions of Americans would be worse." [The Washington Times, 7/28/09]
  • Mark Zandi: No accident "that the recession's coming to an end now, because this is when the current stimulus package is providing its maximum benefit to the economy." During an interview with Mark Zandi, chief economist at Moody's Economy.com, CNBC's Maria Bartiromo asked Zandi, "Is the stimulus working, and do we need a second one?" Zandi replied: "You know, Maria, I think it's premature to know. I mean, I'm very encouraged by what the stimulus has done so far. I mean, I really don't think it's any accident that the recession's coming to an end now, because this is when the current stimulus package is providing its maximum benefit to the economy. But we'll have to wait until the end of the year, I think, to gauge whether it's enough, whether the economy is on sound ground, whether the recovery is gaining traction." [CNBC's The Wall Street Journal Report, 7/31/09]

From the August 13 edition of Fox News' Your World with Neil Cavuto:

CAVUTO: But you know things go in cycles, right? The average recession in this country lasts 18 months; this one a little more than 20 months. So maybe we are just cycling out of this, and -- no offense to the president or anyone else -- this is just, you know, a cycle event. It has nothing to do with your stimulus or the money it's going toward unemployment compensation, none of that.

FATTAH: Hey, look, all I can tell you is that, if you were listening to business shows like your own five months ago, or in September, when this thing -- the bottom fell out, the world was coming to an end, you saw what was going on in our markets, right? You saw the banking collapse.

This was -- these were needed help, and we are going to follow through on this program.

CAVUTO: Well, you know, Congressman --

FATTAH: And Democrats will be glad --

CAVUTO: -- I'll tell you what -- I will tell you what, my friend.

FATTAH: Democrats will be glad --

CAVUTO: I'll tell you what. If you are -- you know what?

FATTAH: -- to take all the credit or all the blame at the end of the day.

CAVUTO: You are a very -- Congressman, you are a very smart, patriotic American, so I take it at your word that if you were watching this show five or six months ago, you would hear that we were saying then that very little of this stimulus would get out, and that we would probably cycle out of this recession.

And if you were listening to this show six months prior to that, at the start of the financial crisis, when we had a different president in office, and he was bailing out and rescuing banks and later auto companies, we said then, as we later said under this president, that it would be a mistake.

So, if you had been listening then and even before then, you would have realized that we would have trusted the markets and the economic cycle to get out of this mess, and not the government, right?

FATTAH: Well, look. If you look at the Bloomberg survey of economists, right? You see that there's a general consensus now that we're headed in the right direction.

CAVUTO: Right.

FATTAH: We are not going to pull back. We're going to go forward, and we'll be held accountable.

CAVUTO: And you also know -- no wait --

FATTAH: And let the Democratic Party be held accountable --

CAVUTO: -- you also know from that survey, not -- not a one -- not a one credits that stimulus. Right?

FATTAH: -- for our stewardship of the economy.

CAVUTO: OK.

FATTAH: Look at -- let --

CAVUTO: All right.

FATTAH: Let the Republicans be held accountable for the Bush economy.

CAVUTO: You are right.

FATTAH: We will be glad to be held accountable --

CAVUTO: You are right, Congressman.

FATTAH: -- as we recover and move forward --

CAVUTO: A blame on both sides.

FATTAH: -- under the Obama administration.

CAVUTO: All right.

— J.H.
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    • Author by BillJ-MN (August 14, 2009 12:36 pm ET)
      5  
      It was a given from the beginning that when the recovery began that the right-wing echo chamber would insist that it was in spite of any economic stimulus.
      Report Abuse
    • Author by NiceguyEddie (August 14, 2009 1:12 pm ET)
      4  
      Cue the usual fools that will inevitably come in and just dismiss all those economists as just being a "bunch of Obama-loving liberals."

      Report Abuse
    • Author by NewBee (August 14, 2009 1:18 pm ET)
      4  
      He's right. "Not one" credited the stimulus....several did.
      Report Abuse
    • Author by shaggles (August 14, 2009 1:20 pm ET)
      6  
      Of course not. And there is no concensus in the scientific community that global warming is largely caused by man. Actually I think he asked economists about global warming so he's probably asking climatologists about the stimulus.
      Report Abuse
    • Author by ufleirx (August 14, 2009 1:24 pm ET)
      4  
      Even Krugman -- can we say Noble prize -- who has been very critical of Obama's approach has said there has been a positive effect.
      Report Abuse
      • Author by shaggles (August 14, 2009 1:45 pm ET)
        3  
        I think Krugman's main criticism was that the stimulus was too small.
        Report Abuse
        • Author by ufleirx (August 14, 2009 5:56 pm ET)
             
          You are absolutely correct, however, he was still banging the it is not going to work gong just for a different reason. Again, an opposing viewpoint has given away to what the facts seem to dictate. But the right wing would not admit it if we all were spending money like lotto winners. It is the same wrap they gave Clinton too liberal, health care socialism, and he would destory business. I remember the 90's my stocks -- in comparison to the money I have involved in them now -- were worth a lot more when adjusted than they are now or they wer under Reagan and Bush I. It is the typical corporatist/absolute free market govenment ruins everything and creates nothing crap.
          Report Abuse
    • Author by mk3872 (August 14, 2009 1:35 pm ET)
      3  
      I guess that means that Mark Zandi and Paul Krugman don't count?

      Geez, these guys have been saying for months that it is working, and probably not even enough.

      But when facts or opinions don't match your intended conservative agenda, all you have to do is ignore them.

      This is ridiculous.

      Report Abuse
    • Author by Indy (August 14, 2009 2:13 pm ET)
      2  
      FOX is already setting the dialog up to counter any positive gains by saying that this is all a natural cycle recovery. Deflating any credit the Democrats may have pulling us out of this ditch. So any gains equals natural recovery. Of course if the market crashes it will be all the Dems fault. Wow. And by the way if you would have invested in the market just under 6 months ago you might have tripled your money by now. I don't think the FOX FEAR and LOATHING channel would want to highlight that of course.
      Report Abuse
    • Author by dexteritas0071418 (August 14, 2009 3:11 pm ET)
      1  
      Cavuto is wrong.

      Claiming Dean Baker as "independent" and unbiased is like claiming Americans to be one of the fitter, skinnier populaces on the planet.
      Report Abuse
    • Author by smarshall1432997 (August 14, 2009 5:00 pm ET)
      1  
      Neil Cavuto admitted that he was "WRONG" with what he said yesterday about this with the Representative today on his Show at FoxNews. What? LOL
      Report Abuse
    • Author by Marx is Dead (August 14, 2009 11:43 pm ET)
         
      Why can't these "reputable" reporters give credit where credit is due?
      Report Abuse
    • Author by mikehuck1976 (August 15, 2009 1:15 pm ET)
         
      I would love to hear the right-wing explanations / excuses for the signs of turnaround. Let us not forget that the arguments on these threads and all over Fox News was not only that the stimulus would do no good, but that it would, in fact, make the economy worse. I understand these financial talking heads like Cavuto have already lost any shred of credibility they ever had and are never held accountable for ALWAYS being wrong. But, I would love some of the right-wing apologists to come on here and explain to me how they were not wrong when they consistently told us that the stimulus would only keep the turnaround from happening and make the economy worse. MarkB? T-Bone? Hi? Where are you guys?
      Report Abuse
    • Author by Fedup22 (August 15, 2009 1:42 pm ET)
         
      John Irons and Ethan Pollack of EPI also believe the stimulus is helping: The recovery package in action
      Report Abuse

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