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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From the May 22 edition of Fox News' Your World with Neil Cavuto:
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Fox News accused jobseekers of "laziness," hyping a survey showing more unemployed American workers becoming detached from the labor force while complaining that unemployment insurance has removed the motivation to take low-paying jobs.
On the May 22 edition of Fox News' Outnumbered, co-host Sandra Smith claimed that "part of the problem" with lingering unemployment in the United States is "laziness" on the part of unemployed workers. Smith claimed that choosing to collect unemployment insurance was evidence that potential jobseekers are "not incentivized" to accept positions that might they might refuse otherwise:
Smith used a survey from Express Employment Professionals as evidence of her claim that unemployment benefits breed "laziness," but her statements distort the actual survey findings. While 47 percent of respondents did agree with the statement "I've completely given up on looking for a job," they often cited the lack of available work as the reason for giving up hope. According to the survey results, "46 percent say there are no available jobs," and one respondent even stated, "After searching for four years and being unsuccessful, I am tired of trying."
A new GOP push to dramatically cut federal spending for summer school lunch programs comes after years of right-wing media misinformation about and attacks against funding for school lunch programs.
On May 19, House Republicans proposed an agriculture budget that would cut the summer lunch program for low-income schoolchildren in urban areas and would require the Agriculture Department to "establish a waiver process for local school districts who have found it too costly to comply with tougher nutrition standards for school lunch and breakfast programs," according to Politico (emphasis added):
In the case of nutrition programs, the House bill seeks to open the door for starchy, white potatoes to be added to the list of qualified vegetables under the WIC supplemental feeding program for pregnant women and their young children. The Agriculture Department would also be required to establish a waiver process for local school districts which have found it too costly to comply with tougher nutrition standards for school lunch and breakfast programs.
And in a surprising twist, the bill language specifies that only rural areas are to benefit in the future from funding requested by the administration this year to continue a modest summer demonstration program to help children from low-income households -- both urban and rural -- during those months when school meals are not available.
These proposed cuts echo years of right-wing media attacking the need for summer lunch programs, and school lunch programs in general. As far back as 2010, radio host Rush Limbaugh challenged the Summer Food Service programs, suggesting hungry children from low-income families can "dumpster dive" for food (emphasis added):
LIMBAUGH: I think, you know what we're going to do here, we're going to start a feature on this program: "Where to find food." For young demographics, where to find food. Now that school is out, where to find food. We can have a daily feature on this. And this will take us all the way through the summer. Where to find food. And, of course, the first will be: "Try your house." It's a thing called the refrigerator. You probably already know about it. Try looking there. There are also things in what's called the kitchen of your house called cupboards. And in those cupboards, most likely you're going to find Ding-Dongs, Twinkies, Lays ridgy potato chips, all kinds of dip and maybe a can of corn that you don't want, but it will be there. If that doesn't work, try a Happy Meal at McDonald's. You know where McDonald's is. There's the Dollar Menu at McDonald's and if they don't have Chicken McNuggets, dial 911 and ask for Obama.
There's another place if none of these options work to find food; there's always the neighborhood dumpster. Now, you might find competition with homeless people there, but there are videos that have been produced to show you how to healthfully dine and how to dumpster dive and survive until school kicks back up in August. Can you imagine the benefit we would provide people?
Fox News has also voiced opposition to the summer lunch program and attempted to gin up controversy about the program by baselessly speculating that it was a "come one, come all" invitation for taxpayer-funded meals that ineligible children would exploit. Last year, Fox's Stuart Varney criticized summer lunch programs, ignoring the fact that such programs play an instrumental role in reducing child hunger.
The right-wing media's campaign against school lunches extends beyond summer. Fox and others have previously asked if children should work for school meals and claimed free school meal programs hurt low-income kids, yet ignored their usual lunch stance when it involved students who usually pay for their lunch.
Food insecurity affects millions of children -- 10 percent of households by USDA data-- and reports hold that hunger is on the rise in many U.S. cities. Studies show that child hunger impairs their academic achievement, facts that right-wing media overlook in coverage that provides public cover for harsh GOP cuts.
Fox News' Stuart Varney dishonestly hyped new data on the number of Americans receiving Social Security Disability Insurance (SSDI) to accuse beneficiaries of committing fraud to avoid finding a job. But experts agree that fraud in the SSDI program is low and there is no evidence Americans are faking their disabilities.
A May 21 Drudge Report headline proclaimed a "Record 10,999,447 On Disability and linked to a CNSnews.com article announcing that the total number of disability beneficiaries in the U.S rose in April "setting a new all-time record":
On Fox's America's Newsroom, Fox Business host Stuart Varney claimed the "explosion" in disability beneficiaries showed "America is becoming increasingly a welfare state. " Varney accused SSDI beneficiaries of committing fraud by taking the "disability option" supposedly where able-bodied individuals who can't find a job use SSDI "almost as an insurance policy against no income or no job":
VARNEY: During the Obama years we've gone from eight million people, just about eight million people claiming Social Security disability payments all the way up to nearly 11 million. That is a huge explosion in disability payments. Now a lot of people are taking what's called the disability option. They can't find a job. So they take -- they treat disability almost as an insurance policy against no income or no job. So you have got this explosion in disability payments. And Martha, we can't afford it.
Two points, number one, if we go on like this the Social Security disability trust fund, totally runs out of money by the end of 2016. That is not that far away. Number two, there's been an expansion in who qualifies for disability payments. Mental disorder is now acceptable. Mood disorder, or back pain. Now, that kind of opens the door to fraud because you can't really prove a lot of that. And plus, once you get disability, you're on it for a very long time because the virtually very little inspection process to figure out who is off the disability, who has recovered. So pretty much payment for life. We can't afford this
Conservative media hyped a misleading chart attempting to show that the number of Americans receiving federal disability benefits has reached unsustainable highs, comparing the figure of recipients to the population of random countries around the world. Accurate charts putting the figure in reasonable context, however, show that the number of needy Americans in this safety net program is astonishingly low.
On May 21 Fox News and the Drudge Report hyped the findings of conservative news site CNS which pushed the false idea that too many Americans are currently receiving Social Security Disability Insurance, stating that the number has reached "a new all-time record" and featuring a graph blasting the fact that more people get disability benefits than live in Greece and Tunisia:
There are also more people in the state of Ohio than Greece or Tunisia, but that isn't cause for alarm. A more accurate graph showing the number of Americans who receive this necessary benefit shows that compared to the total number of Americans who have disabilities, and the total population of the U.S., relatively few individuals are on this government program:
Financial analyst and Fox Business contributor Charles Payne, who has been fined by the Securities and Exchange Commission (SEC), been paid to promote now virtually worthless penny stocks, and smeared the poor as "indebted servants" to the government who are too "comfortable" living in poverty, is being rewarded with his own show, the network announced today.
Fox Business said the show, Making Money with Charles Payne, will debut on June 2 in the evening. FBN executive vice president Kevin Magee praised Payne as having "an incredible talent for identifying growth sectors in the markets and we're excited to launch a new show dedicated to helping viewers spot these emerging investment prospects."
That Payne has a talent for identifying growth may be a surprise to someone who followed some of Payne's previous stock advice. After joining Fox in 2007, Payne was compensated to push the prospects of three stocks, as Media Matters documented in July 2013. Payne used his Fox credentials in promotional materials to assure skeptical investors that his advice was trustworthy. The stock of those companies are now virtually worthless:
The practice of compensated stock endorsements is currently prohibited by Fox rules, and resulted in the contract termination of contributor Tobin Smith. Payne responded to inquiries from Media Matters by ducking questions and scrubbing his corporate website of information.
Payne and his company, Wall Street Strategies, have a problematic history related to the proper disclosure of stock recommendations. In 1999, the SEC announced that while not "admitting or denying" wrongdoings, Payne "agreed to pay a civil penalty of $25,000." The SEC alleged of Payne:
From the May 15 edition of Fox News' The Five:
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