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  • Fox Business Guest Completely Dismantles Any Economic Case For Trump’s Presidency

    Robert Powell: “The Reality Is Money Doesn’t Grow On Trees”

    Blog ››› ››› CRAIG HARRINGTON

    During an appearance on Fox Business, former Economist editor Robert Powell dispelled claims from Republican presidential nominee Donald Trump's campaign that the candidate’s tax and economic policy proposals would generate at least five consecutive years of economic growth in excess of 4 percent annually.

    Powell, who is now the global risk briefing manager for the Economist Intelligence Unit, a forecasting and advisory business operated by The Economist, was interviewed on the August 24 edition of Fox Business’ Varney & Co. Host Stuart Varney opened the segment by asking for a response to Trump economic adviser Stephen Moore’s guarantee earlier this week that the massive tax cuts proposed by the Republican nominee would generate sustained economic growth far outpacing anything witnessed in the United States since 1966. Along the way, Powell poked holes in the arguments in favor of the budget-busting supply-side tax cuts Trump and other Republicans have advocated for years as a silver bullet solution to economic malaise.

    Powell mocked Moore’s guarantee, noting that “the reality is money doesn’t grow on trees,” and slammed Trump’s tax plan for promising to add trillions of dollars to the debt -- far more than Democratic nominee Hillary Clinton’s proposal might. He undermined Varney’s unsubstantiated claim that cutting taxes will kickstart economic expansion, and reminded the Fox Business audience that President Reagan actually had to raise taxes to regain revenue lost to early tax cuts. Powell noted that to make up for built-in revenue losses, the rate of economic expansion would actually have to hit 10 percent or more -- which is not a “feasible” rate of growth. Most importantly, he questioned why Varney and his Fox Business cohort are gripped with so much economic anxiety when “unemployment is 4.9 percent” and the American economy is doing “relatively well” and is “a star performer” when compared with other developed countries around the world. From Varney & Co.:

    Powell mentioned during the interview that The Economist does not believe either Trump’s or Clinton’s plan can meet Moore’s arbitrary growth threshold, stating that “we’re perfectly reasonable, and we don’t think Hillary Clinton will deliver 4 percent growth either.” But Powell did argue that Trump’s position on taxes and economic policy is “less responsible” than his Democratic opponent’s.

    Trump’s inherent lack of responsibility is why the Economist Intelligence Unit’s global risk forecast for September 2016 ranks Trump being elected president as a threat to the global economy that is as big as “the rising threat of jihadi terrorism” and “a clash of arms in the South China Sea,” the site of a territorial dispute between China and other neighboring countries, including U.S.-allied Taiwan:

    One of the things that went unsaid during the interview was how absurd it was for Varney to accept Trump’s 4 percent growth target in the first place. According to data from the Bureau of Economic Analysis (BEA), the United States has not witnessed five consecutive years of growth in excess of 4 percent in five decades. When failed Republican candidate Jeb Bush first promoted the target in June 2015, experts slammed it as “impossible” and “nonsense.” Since then, arbitrary targets of 4 or 5 percent growth have been adopted by other GOP hopefuls, including Sen. Ted Cruz (R-TX) and now Trump. For its part, Fox News has consistently fixated on setting arbitrary growth targets for the American economy in excess of 3 percent, which it claims is proof of a failed economic recovery under President Obama.

  • Fox’s Ralph Peters: Trump’s NATO Position Is “Destructive And Idiotic”

    Blog ››› ››› NICK FERNANDEZ

    Following comments Donald Trump made to The New York Times raising the possibility that as president he would not honor the United States’ NATO obligations, Fox News national security analyst Ralph Peters called Trump’s position “the most destructive and idiotic statement on foreign policy” by a presidential candidate in his lifetime.

    In a July 20 interview with the Times, Trump “called into question whether, as president, he would automatically extend the security guarantees that give the 28 members of NATO the assurance that the full force of the United States military has their back.” Trump suggested that, as president, he would assist Baltic NATO member states “only after reviewing whether those nations ‘have fulfilled their obligations to us.’”

    Peters blasted Trump’s comments during a July 21 interview on Fox Business, saying that “there’s no excuse for what Trump said, and what he did was invite Vladimir Putin to invade the Baltics,” adding that “Trump’s throwing [the Baltic NATO member states] to the wolves” and “knows nothing about” NATO:

  • Fox Business' GOP Convention Coverage Promotes 5 Big Coal Myths In 7 Minutes

    Blog ››› ››› DENISE ROBBINS & ANDREW SEIFTER

    During Fox Business’ July 20 coverage of the Republican National Convention, host Maria Bartiromo and coal industry executive Robert Murray peddled industry-friendly myths while attacking clean energy with falsehoods. Murray also said he is thus far “elated” with the GOP convention, which is aligned with a radical anti-environmental platform, and he repeatedly declared that the energy policies of the Obama administration and presumptive Democratic presidential nominee Hillary Clinton are “evil.”

    Here are five Big Coal myths that Bartiromo and Murray espoused during the segment:

    Myth #1: Obama regulations are to blame for the coal industry’s decline. Bartiromo aired a clip of Clinton that has repeatedly been distorted by conservative media to claim she wants to harm coal miners, and then Bartiromo claimed that “the policies in place have already put [coal industry employees] out of work.” Murray declared that “there’s hundreds of thousands of people” at the Environmental Protection Agency and other government agencies “writing rules against we who are trying to maintain jobs,” and added: “The coal industry is virtually destroyed … we had 200,000 miners before Obama. We now have 60,000.” But industry experts say market forces, including technological advances and competition from natural gas and renewables, are the primary cause of the coal industry’s decline -- not policies from the Obama administration.

    Myth #2: Murray “cares” about coal miners. As he was attacking environmental protections, Murray stated: “I’ve been forced to lay off 3,300 coal miners this year. It just kills me because I am a coal miner. I care about these people.” Bartiromo might have pointed out in response that Murray has pressured employees to support his favored political candidates, allegedly fired employees to influence the 2012 presidential election, and has repeatedly fought against health benefits, safety protections, and labor rights for coal miners.

    Myth #3: Coal energy is cheaper than wind energy. During the segment, Murray claimed that wind energy is highly subsidized and far more expensive than coal, which he said provides “low-cost reliable electricity.” However, according to both the U.S. Energy Information Agency and the investment banking firm Lazard, the unsubsidized cost of wind energy is substantially lower than that of coal.

    Myth #4: It’s not possible to retrain coal miners for jobs in the clean energy economy. Bartiromo baselessly dismissed the concept of retraining coal miners for clean energy industry jobs, declaring: “The other thing is the skill sets and the training. What does a coal miner know about windmills? How do they know about solar panels? There’s no training." However, according to a recent study by researchers at Oregon State University and Michigan Technological University, “a relatively minor investment in retraining would allow the vast majority of coal workers to switch to [solar photovoltaic]-related positions even in the event of the elimination of the coal industry.”

    Myth #5: There is a “war on coal.” The “war on coal” is a favorite talking point of the coal industry and the Republican party, most recently adopted in the GOP’s 2016 energy platform. Fox Business endorsed it with on-screen text:

    The “war on coal” was manufactured by the GOP and the coal industry to attack Democrats during the 2012 election -- as Greenpeace has pointed out, then-presidential candidate Mitt Romney released an ad claiming President Obama was “ruining” the coal industry around the same time that House Republicans pushed a “Stop the War on Coal Act.” Associated Press reporter Vicki Smith succinctly explained the misleading nature of the phrase at the time:

    The war on coal is a sound bite and a headline, perpetuated by pundits, power companies and public relations consultants who have crafted a neat label for a complex set of realities, one that compels people to choose sides.

    It's easier to call the geologic, market and environmental forces reshaping coal — cheap natural gas, harder-to-mine coal seams, slowing economies — some kind of political or cultural "war" than to acknowledge the world is changing, and leaving some people behind.

    The full video, from the July 20 edition of Fox Business’ Mornings with Maria:

  • GOP Lawmakers Latch Onto Fox’s Unsubstantiated Claims About A Clinton Foundation Investigation

    ››› ››› MEDIA MATTERS STAFF

    GOP lawmakers reportedly circulated a letter requesting several federal agencies investigate the Clinton Foundation, parroting “unresolved media reports” to allege that the nonprofit was a “lawless ‘pay to play’ enterprise.” This latest move echoes months of unsubstantiated assertions from Fox News that the foundation was already under investigation for supposed abuses during Hillary Clinton’s tenure as secretary of state.