Fox Business host Charles Payne tried to put a negative spin on the news that the unemployment rate fell in June, tweeting that it might be "too good for the stock market."
Economists and business reporters praised the numbers from the July 3 Bureau of Labor Statistics jobs report. That report found an increase in total nonfarm payroll employment of 288,000 in June, with unemployment decreasing to 6.1 percent, the lowest rate since September 2008.
Payne immediately attempted to negatively spin the report, asking in a tweet "is the jobs number too good for the stock market?"
Is the jobs number too good for the stock market...equity futures are drifting lower not sure how to react-- Charles V Payne (@cvpayne) July 3, 2014
The Dow Jones Industrial Average is currently near 17,000. When President Obama took office on January 20, 2009, it was at 8,279.63.
Refusing to act on climate change will be bad for business, according to a major recent report assessing the alarming risks of unchecked global warming on the U.S. economy. But while some top business media outlets recognize global warming as a serious issue for their audience, others are still stuck in denial.
On June 23, the Risky Business Project released a comprehensive analysis of the economic impacts of climate change in the United States. The study found that the current path of "business as usual" -- emitting carbon dioxide and other greenhouse gases responsible for driving catastrophic climate change without restrictions -- will reduce labor productivity of outdoor workers by up to three percent, reduce agricultural yields by up to 70 percent in some regions, and cost up to $507 billion in property damages from sea level rise by 2100. The co-chairs are calling for business to rein in their greenhouse gas emissions to prevent an economic crash on the scale of the 2008 financial crisis or worse.
However, some top U.S. business media outlets are denying that climate change is a problem worth addressing -- a disservice to their business viewers, who have a lot to lose. Here are the good, the bad, and the ugly cases of business media covering Risky Business:
In covering the study's findings, Bloomberg Television, a cable and satellite business news channel, featured an interview with former Treasury Secretary Henry Paulson, one of the report's co-chairs and a Republican. Bloomberg's Erik Schatzer began the interview by stating that "the research [on man-made climate change] is overwhelmingly conclusive," and went on to have a rational discussion about solutions to global warming that businesses can take today. Schatzer noted that Bloomberg Television is a child company of the media organization founded by Michael Bloomberg, another co-chair of Risky Business. Paulson suggested that businesses fully disclose their climate change risks, that they invest in "resilience," and that the nation "take out a national insurance policy" to respond to the impacts of climate change, adding that businesses must advocate for government policies that would allow the nation to "avoid the most adverse outcomes."
Paulson elaborated on "the cost of inaction" alongside former Treasury Secretary under President Bill Clinton, Robert Rubin, in a well-done interview on the June 29 edition of CNN's Fareed Zakaria GPS:
Fox Business's coverage of the Risky Business report ridiculed the impacts of climate change and brushed aside the findings as "scare tactics." On the June 24 edition of Cavuto, Fox Business contributor Lauren Simonetti asserted that the organization is using "scare tactics," going on to entirely dismiss the idea of increasing heat-related mortality, saying "what does that mean -- mortality?"
From the June 27 edition of CNN's Erin Burnett OutFront:
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From the June 26 edition of Fox News' Special Report With Bret Baier:
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New evidence revealing the full context of Hillary Clinton's comment about the "truly well off" suggests that she was not trying to contrast herself from the ranks of the wealthy, as many in the media previously suggested.
On June 21, The Guardian reported pieces of an interview they had conducted with Clinton during the roll-out of her new memoir, Hard Choices:
America's glaring income inequality is certain to be a central bone of contention in the 2016 presidential election. But with her huge personal wealth, how could Clinton possibly hope to be credible on this issue when people see her as part of the problem, not its solution?
"But they don't see me as part of the problem," she protests, "because we pay ordinary income tax, unlike a lot of people who are truly well off, not to name names; and we've done it through dint of hard work," she says, letting off another burst of laughter.
Numerous media outlets jumped on Clinton's comments, suggesting that in her statement "unlike a lot of people who are truly well off" Clinton was saying that she and President Clinton are not "truly well off." At times, media outlets even altered the quote to fit that impression, falsely reporting that Clinton had said they were "not truly well off." For example:
Business Insider: Hillary Clinton Says She Isn't 'Truly Well Off'
Washington Post: Hillary Clinton says she's unlike the 'truly well off'
Fox News: Clinton: I'm not 'truly well off'
As Media Matters' Eric Boehlert noted at the time, while Clinton's comments were somewhat unclear, "at least as good an interpretation of the quote is that Clinton included herself and her husband among the 'truly well off,' but was saying that unlike many of them, they pay ordinary income tax."
Indeed, the full transcript of Clinton's response supports this interpretation. Clinton immediately followed up the comment by noting, "We know how blessed we are." She went on to explain that the Clintons did not grow up rich and that her goal is to "create a level playing field" to ensure opportunity for all. Here's the transcript, posted by The Hill on June 26 (emphasis added):
QUESTION: Domestically, as you mentioned towards the end of the book, one of the key issues is inequality.
QUESTION: Presumably whoever runs in 2016 will be talking a lot about that. It's come up already, but I did want to - it's such a polar - another polarized issue. Can you be the right person, were you to decide to run, to raise an issue like that when - with your own huge personal wealth, which is something that people have already started sniping about? Is it possible to talk about that subject --
QUESTION: -- when people perceive you as part of the problem, not the solution?
CLINTON: But they don't see me as part of the problem because we pay ordinary income tax, unlike a lot of people who are truly well off, not to name names, and we have done it through dint of hard work. We know how blessed we are. We were neither of us raised with these kinds of opportunities, and we worked really hard for them. But all one has to do is look at my record going back to my time in college and law school to know not only where my heart is, but where my efforts have been. I want to create a level playing field so that once again, you can look a child in the eye and you can tell them the truth, whether they're born in a wealthy suburb or an inner city or a poor country community; you can point out the realistic possibility that they will have a better life. But here's what they must do: It's that wonderful combination of individual effort, but social support, mobility and opportunity on the other side of the equation. So I'm willing to have that debate with anybody.
Fox News hosts read directly from Walmart's official corporate script to defend the company against a critical New York Times op-ed that indicated the retailer's role in perpetuating the need for government assistance programs.
On June 19, The New York Times published an op-ed calling Walmart "a big part of the problem" of rising economic inequality in the United States. Citing data from multiple sources, opinion columnist Timothy Egan noted that the average "associate" at Walmart makes between $8.81 and $11 per hour, frequently relying on government anti-poverty relief to fill income gaps. Egan noted that Walmart claims its average employee makes "at least $12 per hour," but that "these numbers are skewed by higher pay for management." Egan cited a recent exposé by Fortune senior editor Stephen Gandel detailing how the company could easily give a 50 percent raise to more than one million employees without hurting its stock value or profitability:
No matter the exact figure, there's no dispute that Walmart's business model forces thousands of hard-working people to look for outside help just to get by.
And under that model, Walmart has made a fortune -- $17 billion in profits last year, executive compensation for one man at the top in excess of $20 million a year, and a windfall making the six heirs of the founding Walton family worth at least $150 billion.
Walmart could make life easier for its 1.4 million workers, without diminishing its stock value. Writing in Fortune.com, Stephen Gandel concluded that Walmart could give workers a 50 percent raise without hurting shareholder value.
On the June 23 edition of Fox News' Fox & Friends, co-host Steve Doocy and Fox Business anchor Stuart Varney dedicated a segment to supposedly fact-checking the Times, pulling pushback directly from Walmart's officially sanctioned corporate response.
Varney called the Times op-ed "utter nonsense," and an attempt to "demonize Walmart." Ignoring that Egan acknowledged the dispute over Walmart's average hourly wage in the op-ed, Varney stated that the author "got it wrong" as he recited Walmart's more palatable average wage claim. Doocy and Varney uncritically agreed that the data supplied by Walmart was "all true" before pivoting to place blame for economic inequality at the feet of the Obama administration:
Despite Fox's unabashed foray into corporate public relations, Timothy Egan's statement holds true: "No matter the exact figure, there's no dispute that Walmart's business model forces thousands of hard-working people to look for outside help just to get by."
Fox News exploited the violent turmoil in Iraq to baselessly lay blame for increasing gasoline and oil prices at the feet of President Obama. Fox hosts cited Obama's alleged "policy mistakes" in Iraq as the impetus for the rising cost of petroleum products, continuing a long pattern of attacking Obama over the price of gasoline while ignoring the fact that global market trends are largely out of the president's control.
On the June 13 edition of Fox News' Fox & Friends, co-host Brian Kilmeade and Fox Business anchor Stuart Varney discussed the impact of the recent turmoil in Iraq on the global oil market. Varney used the opportunity to attack President Obama for the withdrawal of American combat troops from Iraq from 2009 through 2011:
VARNEY: Let me make this very clear, we are all paying for the president's policy mistakes. The retreat in Iraq, the chaos in Iraq, will be paid for by us at the pump.
The withdrawal of American troops from Iraq was completed on December 18, 2011. According to data from the United States Energy Information Agency (EIA), the market prices of crude oil and refined gasoline have fluctuated since that time, but the withdrawal itself spurred no appreciable price corrections. Data from the Federal Reserve Bank of St. Louis, overlaying the prices for West Texas Intermediate (WTI) crude oil with inflation adjusted prices for gasoline, confirm that the withdrawal had no lasting impact on market prices:
Reputable market analysts agree that the outbreak of violence in Iraq -- the world's eighth largest oil producer -- is driving market speculation and investment in petroleum futures. This in turn has resulted in a slight, but noticeable increase in global crude oil market prices during the past several days. Varney is correct in noting that instability in Iraq is impacting global oil prices, but his analysis veered into well-worn Fox News paranoia when he used that fact to pin the blame for rising prices on President Obama.
Fox has a storied history of blaming this president for rising oil and gasoline prices.
Business media have been spreading the myth that the Environmental Protection Agency's plan to rein in carbon pollution will harm the American manufacturing industry by increasing electricity prices. But a new report by a group of business leaders found that the manufacturing industry is at far greater economic risk from the extreme weather events that the EPA's clean power plan would help prevent.
When the EPA proposed standards for the carbon pollution driving climate change for existing power plants, several top U.S. business media outlets promoted claims that the rules would harm manufacturers. Reuters published two articles that uncritically repeated utility industry lobbyists' claims that the rules will "destroy jobs" at "manufacturing plants." The Wall Street Journal cited a steel industry spokesman that claimed the rules will "impede the post-recession growth of American manufacturing" without criticism, and the newspaper's editorial board suggested that the rules will "punish" regions that rely on manufacturing. Fox Business' Lou Dobbs Tonight hosted Steve Milloy, a policy director at coal giant Murray Energy, who lambasted the rules, stating: "if you work in manufacturing, do you want to see your job exported to China?"
However, an analysis by Business Forward -- an association of American business leaders focused on sound public policy -- found that extreme weather events will have severe economic impacts on the automotive manufacturing industry in the United States, while any increase in electricity prices as a result of turning to clean power will have minimal costs for the manufacturing industries. The analysis has not been covered* by the prominent business media outlets that promoted claims that the standards would harm manufacturers.
For example, automakers, who represent the nation's largest industrial sector, are extremely vulnerable to disruptions in the global supply chain caused by extreme weather events. The study found that extreme weather events -- many of which are happening more frequently -- can cause an auto assembly plant to shut down at immense costs of $1.25 million or more per hour. Business Forward explained that even when extreme weather events happen on the other side of the globe, they impact manufacturers:
Because supply chains are global, disruptions on the other side of the planet can slow down or shut down an American factory. For example, in October 2011, severe floods in Thailand affected more than 1,000 industrial facilities. Production by consumer electronics manufacturers in the U.S. dropped by one-third.
The carbon standards, by contrast, would cost the automotive industry far less because electricity is a "comparatively small portion" of their total costs. The report found that if electricity costs increased by 6.2 percent by 2020, it would add less than $7 to the cost of producing car that sells on average for $30,000. Overall, this would cost the average auto assembly plant about $1.1 million, or the equivalent of less than an hour of assembly line downtime at a single auto plant each year. The EPA estimates that electricity prices will increase slightly as a result of the standards, but efficiency improvements will lower electric bills by 2025.
A Wall Street Journal editorial dismissed the student loan relief plan outlined by President Obama as a distraction from the so-called Bowe Bergdahl "scandal," even though conservative media had previously declared Bergdahl's release a distraction from other alleged "scandals."
In a June 9 editorial, the Journal's editorial board attacked Obama's plan to extend income-contingent loan repayment options to all recipients of federal student loans. The Journal chided Obama's decision to extend through executive action reduced payment options to 5 million previously unqualified borrowers who had taken out loans before October 2007. The Journal also invoked myths that college loans are driving up attendance costs and represent taxpayer handouts to college graduates.
The Journal concluded its anti-loan relief tirade by claiming that the president's announcement, along with Sen. Elizabeth Warren's (D-Mass.) proposal to lower student loan interest rates, amount to little more than "attempts to change the subject" from alleged "scandals" and "government failures." From the editorial:
The Warren bill has no chance to pass the House, as Democrats know. The Warren bill and the Obama debt-forgiveness-by-fiat are attempts to change the subject from the cascading examples of government failure -- the VA scandal (see nearby), the Taliban prisoner swap, the rising cost of health insurance under ObamaCare. In the Obama era, government failure is never a failure. It's another political opportunity to call for more of the same.
The Journal's claim that proposals to relieve millions of student loan borrowers buried under more than $1 trillion in outstanding debt are a distraction from "the Taliban prisoner swap" is just the latest in a series of right-wing media outlets obsessing over the notion that each policy proposal or news development from the White House is a "distraction" from something else:
The Journal's decision to force the "distraction" talking point into the student loan debate proves that no news item is safe from being uncritically dismissed by right-wing media outlets bent on turning every issue into a political scandal.
Fox News is ignoring economists' warnings that record student debt is a drag on the economy and attacking President Obama's plan to provide an avenue for student debt relief as a "distraction" that Fox claims will leave taxpayers "footing the bill."
A Media Matters analysis of Fox News coverage of the Environmental Protection Agency's proposed carbon pollution standards finds that long after a report from the Chamber of Commerce was discredited, Fox News continued to cite it. In addition, Fox News only hosted politicians who opposed EPA standards and who have altogether received over $1.6 million in contributions from fossil fuel industries in 2014.
From the June 2 edition of Fox News' Hannity:
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From the May 28 edition of Premiere Radio Networks' The Rush Limbaugh Show:
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Fox News host Sean Hannity's attempt to blame oil spills from deepwater drilling on environmentalists rather than under-regulated oil companies was debunked by a news service that largely serves energy industry clients.
On May 22, Hannity spoke at the Williston Basin Petroleum Conference in North Dakota, a state that has recently experienced a boom in oil and gas production. Platts, an industry journal that specializes in covering the oil industry for those employed in relevant industries, reported in coverage of the conference that "Hannity did not know some important details about the drilling industry" including falsely claiming that oil companies were drilling in deepwater because environmentalists forced them out of shallower waters.
In the aftermath of the BP oil spill in 2010, Sean Hannity and other Fox News figures repeatedly claimed that BP was only drilling in dangerous deepwater because environmentalists had "pushed us out there." However, as Media Matters pointed out at the time and Platts is now reporting, companies were actually drilling in deepwater due to discoveries of large, potentially lucrative reserves there.
Platts also pointed out that a reporter challenged Hannity on his portrayal of the fossil fuel industry as a panacea for unemployment, noting that some states "such as Vermont, Georgia or Idaho, which have no oil production" while North Dakota has "naturally abundant resources" (North Dakota also has a very small population, making the impact of the boom on the unemployment rate unusual compared to the rest of the country). Hannity, who has been hosting fossil fuel companies on his radio show as part of a "Get America Back to Work campaign," reportedly replied that increasing oil production in some states would trickle down to other areas.
The Associated Press summarized Hannity's speech as arguing that "government needs to get out of the way" of the oil industry. However, investigative reporter David Cay Johnston argued instead that the government needs to get involved in North Dakota, where worker fatalities have soared because "preventing accidents costs much more than paying off the families of dead workers." An AFL-CIO study found that North Dakota has more workers dying on the job than any other state -- with a worker fatality rate "more than five times the national average" and "one of the highest state job fatality rates ever reported for any state." The study noted that "the oil and gas industry in North Dakota has been a major source of these fatalities" and that North Dakota's fatality rate has "more than doubled" since 2007, around the time that North Dakota's oil boom took off.
From the May 24 edition of Fox News' Cavuto On Business:
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