Liz Peek

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  • 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:

  • financial columnist claims "Chavez Handshake May Cost U.S. Billions," because it signifies Obama will "buy Chavez' friendship"

    Blog ››› ››› MEDIA MATTERS STAFF

    Chavez Handshake May Cost U.S. Billions

    By Liz Peek
    Financial Columnist

    How much will President Obama's handshake with Venezuela's Hugo Chavez cost the U.S.? Despite Chavez' bombastic rhetoric about his socialist revolution, the reality is that Venezuela is going broke. While the president's overtures to Chavez at the recent Summit of the Americas have been greeted ecstatically by many in the media, there has been little attention as to why Chavez may so desperately crave rapprochement. (And guess what? It appears to have nothing to do with Obama's politics.)


    These days Chavez has a problem. Sinking oil revenues have left him saddled with whopping budget deficit (estimated by the Economist Intelligence Unit at 5.2% of GDP). Denied access to overseas borrowings, Chavez will likely have to increase domestic borrowing by as much as $16 billion, according to The Economist magazine. He may also be forced to cut spending, in real terms, by over one third. Recently, the government has hiked the VAT to 12% - up from 9% - but other revenues will also be needed. Monies that were purportedly saved for a rainy day, some $57 billion in a National Development Fund, appear to have vanished.

    Failing economic policies, such as nationalizing industries, subsidizing price controls on gasoline (which costs locally just $0.17 per gallon) and artificially supporting currency levels have led to inflation of better than 30% and declining growth rates. A recent 20% hike in minimum wage will only add to the economic disaster that looms, though it should also protect Chavez' popularity among his loyalists. Desperate measures earlier this year included expropriating food companies to mandate higher levels of (unprofitable, price-controlled production).

    Short of a miraculous recovery in oil prices, Chavez is facing a crisis. Without surpluses quieting his opponents and funding his popularity campaign, he may not survive. His out? Befriend the new president of the United States, who is so desperate to distinguish himself from his predecessor that he will doubtless jump at the chance to buy Chavez' friendship. What will be the price of that handshake? $16 billion?