Fox News dismissed the economic benefits of long-term unemployment insurance, erroneously characterizing the program as a "crutch" holding back economic growth.
On December 6, the Bureau of Labor Statistics released its unemployment report for the month of November. The national unemployment rate edged down from 7.3 to 7 percent, while the economy added a total of 203,000 jobs month-to-month, beating economists' expectations.
On the December 6 edition of Fox News' Your World, host Neil Cavuto and Fox Business contributor Charles Payne used the better than expected report to cast doubt on Rep. Nancy Pelosi's (D-CA) recent call to extend long-term unemployment benefits set to expire at the end of the year. Cavuto claimed that Pelosi was misguided for "talking up the need for extending jobless benefits and all of that in the face of more jobs" before Payne launched an all-out attack on social safety net programs:
PAYNE: Yeah, you know, it's really interesting as people, as we get more and more people coming off these jobless benefits, what are they doing? They're going back into the job market. What's happening? More jobs are being created. It's the exact opposite of what they're preaching in Washington which is the defeatist attitude. They don't believe in the American economic system. You know, it doesn't need all these crutches, it doesn't need all these aids. Let people come back into the job market, that's a sign of confidence; confidence is what this is all about. That's what will spark a real recovery. Unlimited unemployment benefits, 50 million people on food stamps, that's nutty stuff, you can do the math, you can talk about multiplier effects all you want, that's not what America was built on. This stock market wants people to get off these unemployment benefits after three years and look for a job, because they will eventually find a job and that's better for all of us.
Cavuto and Payne's claim that the strong jobs report indicates that unemployment insurance doesn't have to be extended -- in addition to claiming that allowing the program to expire would help the economy -- is at odds with reality.
Despite recent months of relatively strong job growth, the long-term unemployed -- the same people who are facing benefit cuts when the Emergency Unemployment Compensation (EUC) program expires later this month -- have seen little gain. According to economist Chad Stone of the Center on Budget and Policy Priorities, long-term unemployment currently "equals the highest rate achieved in any previous recession since the end of World War II." Stone also noted that when previous emergency unemployment insurance programs expired, the long-term unemployment rate was at far lower levels.
Fox News cited a study by a lobbying group with ties to the fast food industry to push debunked myths on the effects of raising the minimum wage, ignoring a wealth of economic evidence showing that increasing the minimum wage has little to no effect on employment.
On December 5, fast food workers went on strike across the nation to protest for higher pay. The December 5 edition of Fox News' Your World with Neil Cavuto ran a segment covering the protests, with reporter David Lee Miller claiming that "according to one university study, hiking the minimum wage - the federal minimum wage - would cost nearly half a million jobs."
Fox News' Neil Cavuto refused to hear arguments in favor of expanded infrastructure investments, instead claiming that revenue for necessary improvements will be lost to fraud or waste. Cavuto has repeatedly argued against and downplayed the necessity of infrastructure spending, revealing his misunderstanding of the the federal budgeting process and the current state of American infrastructure.
On the December 3 edition of Fox News' Your World with Neil Cavuto, Cavuto engaged in a contentious interview with Rep. Earl Blumenauer (D-OR) regarding the congressman's proposal to increase the federal gas tax as a means of financing necessary investments in roads, bridges, and other forms of public infrastructure around the country.
On the December 4 edition of Your World, Cavuto returned to the previous night's argument in his opening segment. He was joined in his heated criticism of infrastructure investments by libertarian pundit Matt Welch, editor-in-chief of Reason magazine. Both Cavuto and Welch continually claimed that they do not know where all of the infrastructure and transportation revenue has gone; maintaining only that it must not be going to the places where it is needed:
CAVUTO: To make the point here, that we're not following the moneys we're already spending that, I think, are not exactly in a 'lock box' just meant for this sort of thing.
WELCH: Yeah, I mean if you look at people who advocate for big government, they actually don't spend a lot of time extolling the virtues of big government, because that is an awkward conversation and because it requires them to do what you were asking earlier, is just document what you've already spent.
WELCH: Spending money on the federal level is an inefficient way to deal with local, and state, and city roads.
CAVUTO: If you were to add it all up. Let's say now -- being devil's advocate here -- let's take the stimulus money, the shovel-ready projects a lot of them were infrastructure-targeted, at around $800 billion and average it out over the last five years and throw in the $60 billion or so you're supposed to get from the oil companies, a lot of taxes, and they were going to tap that for infrastructure. You're looking at $250-300 billion a year that would be presumably allocated to just this sort of thing. We're asking for more?
Cavuto's central argument is that the federal government must not be spending money on infrastructure if our infrastructure is in a state of disrepair. Cavuto repeated a popular Fox News thesis, claiming that the government is wasting, misallocating or stealing tax dollars instead of putting them to good use.
In fact, the government's infrastructure budget is simply woefully underfunded.
As the Detroit bankruptcy moves forward, Fox News personalities have been quick to blame worker unions and political corruption for the city's unfunded pension liabilities. This discourse ignores the forces actually undermining Detroit's financial solvency: the dramatic reduction of the city's population and taxbase since its post-war peak.
Fox News host Neil Cavuto refused to listen to the facts about the nation's desperate need for more infrastructure spending, instead repeatedly shouting that prior funding must have been "stolen" because some infrastructure "still sucks."
This week Rep. Earl Blumenauer (D-OR) is expected to introduce a bill raising the federal gas tax, which supports the Highway Trust Fund used to build transportation infrastructure, by $0.15 per gallon. On December 3, Blumenauer appeared on Fox's Your World with Neil Cavuto to explain his proposal. But rather than allowing a discussion on the reasoning behind the bill, Cavuto shouted over the congressman for more than nine minutes.
Over and over again, Cavuto demanded to know why additional revenue is needed for transit infrastructure, repeatedly interrupting Blumenauer to ask, "what's happened to all the money we've already allocated?" Cavuto indicated that additional spending would be wasteful, because, according to him, the nation's "infrastructure still sucks" despite present funds.
Cavuto even pushed the conspiracy theory that funds previously allocated for transit infrastructure were "stolen," as revenues from the gas tax would be. He shouted:
CAVUTO: Congressman, do you honestly believe -- working with the folks that you do -- that the money that you might get from this gas tax is going to be used exclusively and only for repairing roads and bridges and fixing our highways? Do you think that's really going to be the case? Does the history with the people you work with indicate that that will ever be the case? Really?
BLUMENAUER: Why do you say that? Where do you think it's gone? How did the --
CAVUTO: I don't know. Because our roads and bridges are for crap and this is after we've committed tens of millions of dollars each and every year through a variety of sources and they're still falling apart. So you're saying, maybe the difference - maybe the answer is more money, but the fact of the matter is, the money we've already spent we can't account for
BLUMENAUER: Where do you get that, you can't account for it? That's goofy --
CAVUTO: Can you account for $42 billion? Can you spell out for me, congressman, where that $42 billion has gone?
CAVUTO: If the goal was to fix roads and bridges and they're still -- accurately, to your point, falling apart -- methinks someone has stolen it, someone has taken it.
As the nation mourns the 50th anniversary of the assassination of President John F. Kennedy, conservative media figures have attempted to appropriate his legacy and attribute to the beloved former president their conservative ideas and positions. This effort runs counter to Kennedy's stated positions, speeches, and other historical facts surrounding his presidency.
Fox host Neil Cavuto pretended that the Affordable Care Act's (ACA) ban on gender discrimination, which requires all policies to include maternity care coverage, was never "telegraphed" to the American people when the law was first discussed -- Cavuto is right, if you ignore repeated remarks made by President Obama, Health and Human Services Secretary Kathleen Sebelius, and multiple media outlets prior to the bill's passage.
Under the ACA, all insurance plans are now required to cover maternity and newborn care, one of the law's 10 categories of 'essential health benefits' that every policy must include. The maternity care requirement puts an end to the systemic discrimination against women that pervaded the insurance industry. Previously, many companies charged women higher rates than men for the same plans and denied coverage or increased premiums for women who become pregnant, actions which the law prohibits.
Fox host Neil Cavuto referenced this requirement on the November 15 edition of Your World while discussing the ACA with MIT economist Jonathan Gruber. After Gruber explained the impetus behind the rule, Cavuto claimed that it "was never, ever" explained to the country until now:
GRUBER: The key thing is, if you want to end discrimination, for example by gender, if you want to say that women should not have to pay more than men for health insurance, then that means that everyone has to share the cost of maternity coverage. Now if you don't think that's right, that's a totally legitimate position to take --
CAVUTO: But that was never telegraphed. When all of this started, Jonathan -- that's fine, if you want to say that now though -- none of that was telegraphed, as was the fact that many people would lose their plans and many more would pay a lot more for plans. None of that was this Utopian view that you would do better by doing some good, maybe paying more, but in the net positive the country would benefit. That was never -- that was never ever said.
What Cavuto claims was "never, ever said" was said, repeatedly -- by the media, the president, and the Health and Human Services (HHS) cabinet secretary, all before Congress passed the ACA on March 23, 2010.
In yet another attempt to craft and promote victims of the Affordable Care Act (ACA), Fox News piggybacked on NBC's misleading coverage of two individuals whose current insurance plans are being cancelled. However, Fox ignored that their alleged victims could spend less on plans that dwarf their current coverage should they opt to use the state exchanges.
The October 29 edition of Your World with Neil Cavuto featured two "victims" of the ACA who had previously appeared in a misleading NBC report on the sticker shock of the health care law. Host Neil Cavuto spoke first with Deborah Cavallaro, a Los Angeles resident highlighted repeatedly by NBC, who received a notice saying her current plan would be replaced by a plan with higher premiums.
Fox News dismissed a survey of 41 economists who indicated that they are less optimistic about growth after the Republican-led government shutdown, saying their concern "is much ado about nothing." But numerous reports show that the shutdown had wide-ranging negative effects on the economy.
Right-wing media figures have repeatedly criticized Obama administration officials for claiming that the U.S. will default if the debt ceiling is not raised by October 17, instead claiming the U.S. could prioritize payments to bondholders as a way to avoid default. But economists note that the threat of default is real and that the prioritization alternative proposed by Republicans is not a long-term solution.
After reviewing the latest evidence from a major climate change report -- released in full on Monday -- the prominent consulting group PricewaterhouseCoopers concluded that climate change is the "mother of all risks." But while many businesses recognize climate risks, the media often cloud these risks by framing climate change in terms of "uncertainty," according to a recent study. This can lead to a disconnect between scientific understanding and public perception, and a misguided contentment with inaction.
"What 95% Certainty Means To Scientists"
The lead author of the University of Oxford study on media framing clarified, "the general public finds scientific uncertainty difficult to understand and confuses it with ignorance." In fact, as Associated Press reporter Seth Borenstein explained on Tuesday, in an article headlined "What 95% Certainty Means To Scientists," the United Nations Intergovernmental Panel on Climate Change (IPCC) report's finding that scientists are 95 percent certain about manmade global warming reflects a certainty analogous to scientific fact:
Top scientists from a variety of fields say they are about as certain that global warming is a real, man-made threat as they are that cigarettes kill.
They are as sure about climate change as they are about the age of the universe. They say they are more certain about climate change than they are that vitamins make you healthy or that dioxin in Superfund sites is dangerous.
They'll even put a number on how certain they are about climate change. But that number isn't 100 percent. It's 95 percent.
And for some non-scientists, that's just not good enough.
But in science, 95 percent certainty is often considered the gold standard for certainty.
"Uncertainty is inherent in every scientific judgment," said Johns Hopkins University epidemiologist Thomas Burke.
What 95% Certainty Means To Businesses
The disconnect between how the public and scientists view uncertainty may lead some people to come to the misguided conclusion that we should wait to act until the science is "certain." Fox News host Neil Cavuto, for instance, once said that "whether there is or not [a consensus among scientists on climate change], you want to make 100% sure before you plunk down trillions on something." But for a purported business expert, Cavuto seems to have little concept of risk management. As PricewaterhouseCooper's Will Day explained, hedging against catastrophic climate change now is only sensible:
From the September 28 edition of Fox News' Cavuto On Business:
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From the September 27 edition of Fox News' Your World with Neil Cavuto:
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From the September 26 edition of Fox News' Your World with Neil Cavuto:
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Fox News downplayed the immediacy of the upcoming debt ceiling deadline, giving credence to congressional Republicans' plan to use the threat of default as a means of gutting the Affordable Care Act (ACA).
On September 25, Treasury Secretary Jack Lew sent a letter to congressional leadership in the House and Senate regarding the state of government finances. Lew specifically emphasized the consequences of failing to lift the federal debt limit by October 17. From the letter:
Treasury now estimates that extraordinary measures will be exhausted no later than October 17. We estimate that, at that point, Treasury would have only approximately $30 billion to meet our country's commitments. This amount would be far short of net expenditures on certain days, which can be as high as $60 billion. If we have insufficient cash on hand, it would be impossible for the United States of America to meet all of its obligations for the first time in our history.
On the September 25 edition of Fox News' Happening Now, host Jenna Lee and Fox Business host Neil Cavuto discussed the upcoming October 17 deadline to raise the debt limit. Cavuto recognized the fact that a failure to lift the debt ceiling would have far more dramatic consequences than a simple government shutdown, but also specifically rebuffed the nature of a firm deadline, claiming:
CAVUTO: Never believe those figures, Jenna, because every Treasury Secretary, be it a Republican or Democratic administration, has always cried panic and always attached a date that is really just made up.
Cavuto outlined the means by which congressional Republicans could use the threat of breaching the debt limit to extract concessions on the ACA, commonly known as Obamacare, which could range from delaying to defunding key initiatives of the law. In fact, The Hill reported that Republicans in the House of Representatives plan on tying any increase of the debt limit to a one-year delay of Obamacare. From The Hill:
Moving to the debt ceiling fight, which Republican leaders have long seen as stronger ground, could be a way to convince rank-and-file Republicans to fight their spending and healthcare battles there rather than on a government funding bill.
Cavuto's caution that listeners should "never believe" Treasury Department deadlines, and the claim that these deadlines are "really just made up," directly contradicts the facts presented by Lew.
According to Treasury estimates, the United States government will have merely $30 billion in liquid assets on hand by October 17. By Lew's own admission, this sum, equivalent to roughly 0.75 percent of annual federal outlays, would be insufficient to meet the obligated expenses of certain individual days. Contrary to Cavuto's claims that the government could use flexible accounting to sustain itself for months without a debt limit increase, those so-called "extraordinary measures" have been in place since May 17 and are now at their limit.
If the debt ceiling is not lifted by October 17, the United States government will be unable to finance the payment of its pre-existing expenses through the continued sale of Treasury bonds. This would have all of the effects of a government shutdown -- outlays to certain program beneficiaries, employees, the military, etc. would cease or be delayed -- while also initiating a global financial crisis among corporate and sovereign wealth funds that own or purchase American debt.
According to The New York Times, the Treasury makes more than 80 million individual payments each month, and would miss nearly one-third of those regular payments every day until the debt ceiling was lifted. A $12 billion Social Security payment is due on October 23 and a $6 billion interest payment on public debt is due October 31. These alone would virtually exhaust the Treasury's remaining resources if Congress fails to act.
The notion that Republicans might be able to string a debt limit increase along for months as they negotiate attacks against Obamacare ignores both the economic consequences of a debt default and the political reality in Washington. The last legitimate Republican threat to breach the debt ceiling resulted in the first ever downgrade of the United States Department of Treasury bond rating -- from AAA to AA+. This downgrade marginally increased the cost of future American borrowing and, according to the Bipartisan Policy Center, will cost taxpayers an additional $18.9 billion over the coming decade.
Increasing the debt limit does not increase the national debt, but manufacturing a crisis by using the debt limit to leverage political concessions has already cost taxpayers.