In recent months, conservative media figures have undermined efforts by labor groups to organize across the United States, demonizing labor unions in the process. These anti-union attacks are largely reliant on myths alleging negative side-effects of union participation.
Fox News is providing ample, uncritical airtime to hype Representative Paul Ryan's (R-WI) report on the alleged ineffectiveness of government anti-poverty programs, despite condemnation from numerous economists that the report is misleading and inaccurate.
Fox News attacked Vice President Joe Biden for accurately explaining how the Affordable Care Act (ACA) helps free women from job lock and grants them greater independence and choice.
On the February 26 edition of Fox News' Fox & Friends, co-host Elisabeth Hasselbeck and guest Crystal Wright from ConservativeBlackChick.com launched a scathing attack on Biden, calling his remarks on the ACA and women "ridiculous" and "demeaning." Wright argued that Biden "put women in stereotypes," while claiming that Republicans "give women a choice ... you can be a career woman, you can be a stay-at-home mom."
But even the clip of Biden's statement made on the February 25 edition of ABC's The View played during the Fox & Friends segment accurately demonstrated that his remarks referred to women's increased ability to choose their employment status because the ACA will reduce job lock. Biden noted that this will give women the ability, if they choose, to leave their jobs for other opportunities because they will not be dependent on the health care provided by that job:
BIDEN: This is about freedom. How many of you are single women, with children, in a dead-end job, you're there because of your health insurance? You would rather have the opportunity to spend the next couple years with your child until they get -- if that was your choice -- until they get into primary school. You're now trapped in that job because if you leave, you lose your health insurance. Now, you'll be able to do -- make an independent choice. Do you want to stay in that job and still have health insurance? Or do you want to stay in that job even though you can get health insurance absent that job? And it gives women a great deal more freedom.
The New York Times explains that job lock occurs "when people stay in jobs they dislike, or don't want, solely to keep their health coverage. A Harvard Business School study in 2008 estimated that 11 million workers are affected by this dilemma. Other studies show that when people don't have to worry about health insurance, they are up to 25 percent more likely to change jobs."
Though Hasselbeck contended that women don't "just work for the free health insurance," this ignores the 11 million workers who do, in fact, face this dilemma. The reduction in job lock enabled by the health care law will allow greater freedom and choice not only for women but for everyone in the labor force.
While Fox has repeatedly derided the reduction of job lock due to the ACA, economists praise the benefits; as The New York Times noted, the labor force can now "allocate itself more efficiently," and reducing job lock will help spur entrepreneurship. The Congressional Budget Office also reported that the reduction of job lock will increase short-term opportunity for the unemployed, and will help stimulate economic growth.
From the February 25 edition of Fox News' The Five:
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A Wall Street Journal article omitted the positive economic news in recent Congressional Budget Office (CBO) reports, misleadingly framing the reports as having challenged and "chipped away" at White House economic policies.
In a February 19 post, the Wall Street Journal characterized two recent reports from the CBO on the economic effects of the Affordable Care Act (ACA) and a proposal to raise the minimum wage as the "biggest challenges to the Obama administration's economic policy in the past month," which the Journal claimed "chipped away at two pillars of President Barack Obama's economic policy." The Journal failed to report the positive aspects of the CBO findings or describe the reports' many nuances, and made no move to identify the CBO's "complex and layered projections" that supported its thesis beyond this general line:
The budget office calculated earlier this month that the health law would lead some people to leave their jobs or ratchet back their work hours, and it said this week that raising the federal minimum wage to $10.10 an hour from $7.25 could lead 500,000 people to lose their jobs.
Yet the Journal's framing of the reports as 'chipping away' at Obama's economic policies is undermined by the CBO's actual determinations, which contained positive economic news.
In its study released this week on the effects of a minimum wage increase, the CBO determined that such an increase would lift 900,000 Americans out of poverty, 16.5 million workers would see their wages increased, and notably, "Once the increases and decreases in income for all workers are taken into account, overall real income would rise by $2 billion." The New York Times offers some perspective:
Tuesday's report from the budget office, a federal nonpartisan agency, was almost entirely positive about the benefits of raising the minimum wage to $10.10 by 2016, as President Obama and Congressional Democrats have proposed.
More than 16 million low-wage workers, now making as little as $7.25 an hour, would directly benefit from the increase, the report said. Another eight million workers making slightly more than the minimum would probably also get raises, because of the upward "ripple effect" of an increase. That would add $31 billion to the paychecks of families ranging from poverty level to the middle class, significantly increasing their spending power and raising the nation's economic output and overall income.
In fact, the report said, 900,000 people would be lifted from poverty with a wage increase. The income of those below the poverty line would increase by a total of $5 billion, or 3 percent, at no cost to the federal budget.
And in its Budget and Economic Outlook for 2014-2024, the CBO found that the ACA could free 2.5 million workers from being forced to keep their current jobs because of a need to maintain employer-sponsored health coverage. While the Journal attempts to portray this as a negative, the Economic Policy Institute (EPI) called it "an unambiguously good thing":
Not surprisingly, the CBO finds that, all else equal, people are less likely to work and will work fewer hours under the ACA. They find, and I quote, "The estimated reduction stems almost entirely from a net decline in the amount of labor that workers choose to supply, rather than from a net drop in business' demand for labor" (page 117).
These are purely voluntary labor supply decisions, not people being laid off from jobs they'd rather keep, or people looking for work and being unable to find it. Working-age adults can now choose, without regard to their need to secure health insurance, whether they wish to supply labor and how much labor they wish to supply to the labor market. This is unabashedly a good thing for them.
Opponents of the ACA will try to paint these CBO estimates as evidence that the ACA has "killed jobs" or something like it. That's flat wrong. What the ACA has done is expand the menu of options available to Americans about how to obtain decent health insurance without having their income fall to poverty levels. That menu used to include one option--"go to work for a large employer." The fact that it's broader now is an unambiguously good thing.
What's more, the report suggested that the ACA could increase job opportunities for currently unemployed workers. The CBO pointed out that "[i]f changes in incentives lead some workers to reduce the amount of hours they want to work or to leave the labor force altogether, many unemployed workers will be available to take those jobs," and reported that the law will have the stimulative effect of "raising overall demand in the economy." In a congressional testimony following the report's release, CBO director Douglas Elmendorf noted that the ACA "would reduce unemployment over the next few years."
From the February 19 edition of Fox News Channel's The Five:
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Fox News gave Sen. Bob Corker (R-TN) an uncritical platform to continue pushing anti-labor falsehoods about a recent attempt to unionize a Volkswagen (VW) plant in Chattanooga, TN.
On February 14, the VW plant in Chattanooga voted against joining the United Auto Workers (UAW) union by a vote of 712-626. Prior to the vote, Corker and third party anti-labor groups like Grover Norquist's Center for Worker Freedom (CWF) waged an anti-UAW publicity campaign that threatened workers with claims that unionizing would hurt jobs and the economy of Tennessee. Days after stating that he believed it was not "appropriate" to make public statements about the unionizing effort, Corker issued one anyhow, telling workers that if they rejected the union, VW would reward the plant with a new product line:
I've had conversations today and based on those am assured that should the workers vote against the UAW, Volkswagen will announce in the coming weeks that it will manufacture its new mid-size SUV here in Chattanooga.
But VW AG rebuffed statement, saying "There is no connection between our Chattanooga employees' decision about whether to be represented by a union and the decision about where to build a new product for the U.S. market."
On the February 19 edition of Fox News' America's Newsroom, co-host Bill Hemmer interviewed Corker, who repeated the claim that the vote to unionize was tied to decisions about new product lines for the plant. Remarkably, Hemmer failed to push Corker on this point or even note that VW directly rejected his accusations.
CNN's Carol Costello shot down conservative talking points disparaging the minimum wage, correctly noting that raising it would increase incomes and decrease poverty.
On February 18, the non-partisan Congressional Budget Office (CBO) released estimates of the economic impacts of proposals to lift the minimum wage to $9.00 and $10.10, respectively. Among the report's summary conclusions was the revelation that the $10.10 option would raise the wages of 16.5 million workers while lifting up to 900,000 Americans out of poverty. Ignoring these positive side-effects, conservative media have focused heavily on estimates that increasing the minimum wage to such levels could reduce full-time employment by approximately 0.3 percent, the equivalent of roughly 500,000 positions.
On the February 19 edition of CNN Newsroom, host Costello was joined by Wall Street Journal editorial board member and Heritage Foundation chief economist Stephen Moore to discuss the CBO report. Moore, a prominent right-wing media figure, rehearsed standard talking points about the alleged disastrous impacts of increasing the minimum wage for low-skilled and entry-level workers.
Despite Moore's efforts, Costello checked his spin at every turn, continually pointing to the positive impacts of increasing the minimum wage.
Costello's strong reporting highlights the important role of media in sifting through misinformation to present unbiased results. While the median estimate of a $10.10 per hour minimum wage was decreased full-time employment, the CBO's projection also concludes that job loss could be "very slight" -- a fact highlighted by Costello. She also noted the positive income effects of increasing the federal minimum wage -- effects that are being ignored in media coverage of the CBO report -- and argued that many Americans would accept marginal job loss in exchange for lifting hundreds of thousands more out of poverty.
Costello's coverage of the minimum wage hopefully reflects a mainstream media trend of actually analyzing policy news, rather than allowing right-wing media to spin the narrative.
Media coverage of a new Congressional Budget Office (CBO) report on the economic effects of raising the minimum wage has largely missed the finding that a $10.10 minimum wage would generate net income gains of $2 billion, Ezra Klein pointed out.
This month President Obama signed an executive order raising the hourly minimum wage to $10.10 for federal contract workers. According to a CBO study released February 18, the increase could reduce total employment by about 500,000 workers, but would also raise wages for 16.5 million workers and raise 900,000 people out of poverty. The report concluded: "Once the increases and decreases in income for all workers are taken into account, overall real income would rise by $2 billion."
MSNBC political analyst Ezra Klein explained how this significant finding -- $2 billion in net income gains as a result of the minimum wage increase -- has been "mostly missed" amidst the media's focus on job losses during an appearance on Morning Joe:
KLEIN: There's a headline number in this report that I think is getting mostly missed, which is $2 billion. Which is, after you account for everything -- any jobs you think you might lose, all the income gains you think you might have -- you have a net real income gain to workers of 2 billion. So the net result here is positive.
In the years since President Obama signed the American Recovery and Reinvestment Act -- commonly referred to as the stimulus -- right-wing media outlets have engaged in a steady campaign of misinformation to claim that it didn't help the economy.
February 17 marked the five-year anniversary of the implementation of the American Recovery and Reinvestment Act of 2009, a multi-billion economic stimulus package designed to spur economic growth and job creation during the Great Recession. The legislation increased infrastructure investments and implemented a variety of tax cuts for individuals and businesses, totaling approximately $831 billion over the 2009-2019 period.
Ever since the stimulus was signed into law, right-wing media figures have repeatedly pushed misinformation about its structure and alleged ill-effects. From forwarding false claims about the bill providing tax breaks for undocumented workers to baselessly linking it to Operation Fast and Furious, no myth has been too outrageous in the campaign to disparage the stimulus and President Obama.
The most frequently pushed myth about the stimulus, of course, is that it failed to increase economic growth or create jobs. The erroneous notion that the stimulus"failed" has appeared repeatedly in the right-wing media over the past five years, often being brought up to stymie any potential increases in government spending and investment.
The idea that increased government spending in the stimulus did not help the economy is patently false, and easily disproved by economists.
A 2010 Wall Street Journal poll of economists revealed that a majority of economists agree that the stimulus boosted growth, and according to a May 2012 Congressional Budget Office report, the stimulus created the equivalent of between 900,000 and 4.7 million jobs in 2010 and between 600,000 and 3.6 million jobs in 2011. Furthermore, a February 2013 report from the Center on Budget and Policy Priorities illustrates how GDP growth would have been slower had the stimulus not been enacted:
Despite the facts, multiple outlets -- including Fox News and the Wall Street Journal -- are using the five-year anniversary of the stimulus' implementation to push the same tired myths. On February 18, one Fox host even went so far as to wonder whether or not it caused a recession, ignoring the fact that the economy has been growing steadily since the stimulus was implemented.
If recent history is any indication, right-wing media are unlikely to stop their campaign of misinformation around the bill, particularly if additional spending measures -- a policy recommended by economists -- are implemented.
Fox wants to know whether the stimulus package signed by President Obama caused a recession.
In recognition of the five-year anniversary of the American Recovery and Reinvestment Act of 2009 -- commonly known as the stimulus -- Fox Business' Varney & Co. framed a segment around the question of whether it caused a recession.
Fox is just asking, and here is the answer in one simple chart. The most recent recession started in December 2007, over a year before the stimulus bill was signed into law. Since its passage in February 2009, the American economy experienced an immediate positive turn, culminating in more than four years of steady, gradual economic growth.
Fox's disregard for facts in its frantic push to disparage the president and his policies is nothing new, but the basic failure to understand that the economy has been recovering for the past five years marks a new low.
Fox News cropped and distorted President Obama's remarks on rising income inequality to falsely claim the president supports equal incomes for all Americans.
On The February 15 edition of Fox News' Cashin' In, Fox host Eric Bolling played a clip of President Obama's December 4, 2013, speech on rising income inequality and contrasted it with recent comments made by New Jersey Governor Chris Christie. Bolling used the contrast to claim that Obama's solution to the problem of inequality was to make all incomes equal, whereas Christie supported equality of opportunity. Later in the segment, Bolling used his distorted depiction of Obama's stance to ask "isn't that what Communism is all about?":
Bolling's characterization of President Obama's comments is wildly distorted. Nowhere in the speech that Fox aired does Obama advocate equal incomes. In fact, in a portion of the speech that Fox did not air, Obama explained that "we don't promise equal outcomes" but have "strived to deliver equal opportunity." The transcript of Obama's speech is below with the small portion Fox chose to air in bold:
They may not follow the constant back-and-forth in Washington or all the policy details, but they experience, in a very personal way, the relentless decades long trend that I want to spend some time talking about today, and that is a dangerous and growing inequality and lack of upward mobility that has jeopardized middle-class America's basic bargain that if you work hard, you have a chance to get ahead. I believe this is the defining challenge of our time: making sure our economy works for every working American. That's why I ran for president. It was the center of last year's campaign. It drives everything I do in this office.
Now, the premise that we're all created equal is the opening line in the American story. And while we don't promise equal outcomes, we've strived to deliver equal opportunity -- the idea that success doesn't depend on being born into wealth or privilege, it depends on effort and merit. And with every chapter we've added to that story, we've worked hard to put those words into practice.
Fox News figures covered up controversial tactics by Sen. Bob Corker (R-TN), who falsely promised that Volkswagen would reward workers at a Chattanooga plant with a new SUV production if they voted against unionizing.
On February 14, the Volkswagen AG plant in Chattanooga, TN voted against joining the United Auto Workers union by a vote of 712 - 626. Fox News' America's News HQ reacted to the vote by calling it a "major win for Republicans like Senator Bob Corker of Tennessee who say unions just would push away auto manufacturers." Fox then aired comments from Corker who claimed, "How many companies from South Korea or Japan or Germany, how many of them do you think make a stop in Detroit to look at locating there? None. Not a one. And it's because of the culture that the UAW's largely contributed":
But what Fox omitted from its report is that Corker is at the center of controversy for this advocacy against the union. On February 13, the day before the vote was scheduled to take place, Corker claimed that if the workers of the Chattanooga plant rejected the union, Volkswagen would "reward the plant with a new product to build":
Corker has long been an opponent of the union which he says hurts economic and job growth in Tennessee, a charge that UAW officials say is untrue.
"I've had conversations today and based on those am assured that should the workers vote against the UAW, Volkswagen will announce in the coming weeks that it will manufacture its new mid-size SUV here in Chattanooga," said Corker, without saying with whom he had the conversations.
But Corker's claim was immediately rebuffed by Volkswagen, who had remained neutral and even "tacitly endorsed the union." In a statement released following Corker's comments, the company stressed that unionization would have no impact on its decision about where to build the new product, saying "There is no connection between our Chattanooga employees' decision about whether to be represented by a union and the decision about where to build a new product for the U.S. market." None of this information was presented in Fox's report.
From the February 13 edition of Fox News' The Five:
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Fox News pushed aside economic reality and Volkswagen's stated position surrounding unionization effort at a Tennessee plant, instead warning that a unionization push may generate too many benefits for workers and hurt the carmaker.
Workers at a Volkswagen AG plant in Chattanooga, Tennessee are voting this week on whether to unionize with the United Auto Workers (UAW). A final vote on the move is scheduled to take place by February 14, and in advance of the decision, outside conservative activist groups have mobilized a campaign to halt the unionization effort, succeeding in skewing local coverage of the issue.
Now Fox News is joining the union opposition effort. The February 13 edition of Fox & Friends stoked fears that unionization could hurt the U.S. economy and make manufacturing prohibitively expensive, something that Fox Business host Stuart Varney called "a very big issue":
PETER JOHNSON, JR.: What does this sound in terms of the economy, in terms of right to work, in terms of our ability in this country to manufacture in a way that's not too expensive?
VARNEY: Oh, it's a very big issue.
JOHNSON: Yeah. Tell us about that.
VARNEY: A very, very big issue. Foreign carmakers have, I think, 11 plants in more than a dozen states in America. They're nonunion, very successful automobile producers. Now, if the union comes into Volkswagen, do they now have union rules, work rules? Which really hurts the ability of a carmaker to move quickly with a new product. What about wage levels? What about benefits? Do those always go up because of unionization?
Varney purports to be concerned with economic growth and employer's rights, but it is at the expense of the facts.
The reality is that Volkswagen is not opposing the unionization effort in Tennessee.