Poverty

Issues ››› Poverty
  • Myths & Facts: A Debate Guide To Donald Trump’s Most Common Lies About The Economy

    ››› ››› ALEX MORASH

    Republican presidential nominee Donald Trump’s penchant for promoting right-wing media myths and other misleading claims presents a unique challenge heading into the first presidential debate of the general election. If the September 26 debate is anything like the opening debates of 2008 and 2012, it will focus heavily on issues relating to the American economy, and both moderator and audience should be prepared for a torrent of misinformation from the GOP standard-bearer.

  • Wash. Post Berates GOP-Led States Still “Irrationally Holding Out” On Medicaid Expansion

    Latest Census Data Reveal Lingering Impact Of Right-Wing Media’s Obstructionist Campaign Against Obamacare

    Blog ››› ››› ALEX MORASH

    The Washington Post editorial board used the latest Census data showing that the rate of U.S. residents without health insurance continues to drop as proof that the Affordable Care Act (ACA) -- commonly referred to as Obamacare -- is working. The paper also argued that Obamacare would help millions more Americans if Republican-led states accepted federal subsidies to expand Medicaid. Right-wing media outlets have spent years encouraging the ongoing obstruction of this key provision of health care reform.

    In a September 17 editorial, the Post highlighted the U.S. Census Bureau’s annual report on health insurance coverage, which showed that the percentage of people with health insurance had risen to 90.9 percent nationwide in 2015. The editorial board noted that the same report showed room for even more improvement in expanded health insurance coverage if the law were fully implemented at the state level. According to the Census data, the uninsured rate in states that did not accept Medicaid expansion under the ACA is still 12.3 percent, far above the national average and even further still from the 7.2 percent uninsured rate in states that have accepted the law’s allocation of funds for low-income Americans. In the Post’s view, the 19 states that continue to refuse Medicaid expansion are “irrationally holding out,” not only because their refusal of “huge amounts of federal money” has denied 4 to 5 million more Americans access to health care, but also because studies have shown that each state would receive vastly more money from the government than it would spend on expansion. From The Washington Post:

    But the overall number could be cut much lower, and quickly, if Obamacare were working as it was meant to. We are not referring to the recent, much-discussed exit of some major health insurers from the marketplaces the law created. We are talking about Obamacare’s expansion of Medicaid, the state-federal health plan for the poor and near-poor. The Supreme Court in 2012 made the expansion optional for states, and a large chunk, including Virginia, have refused. The Census Bureau found that the uninsured rate was 7.2 percent in expansion states last year and 12.3 percent in non-expansion states. Five states have expanded since, but that still leaves 19, representing 4 million to 5 million people who would otherwise get coverage, irrationally holding out.

    Why irrationally? In their effort to hobble Obamacare, state Republican leaders have left huge amounts of federal money on the table. The federal government has offered to pay nearly the whole cost of the expansion, forever. Though states must pitch in a bit, they get a much lower uninsured rate, lower uncompensated care costs and other savings in return. The Urban Institute found last month that the 19 holdout states would get an average of $7.48 from the federal government for every dollar they spent on Medicaid expansion. Even those costs, meanwhile, would likely be further offset by savings elsewhere. States that have already expanded, in fact, have generally seen net revenue gains.

    The Post dinged “state Republican leaders” for “their effort to hobble Obamacare,” but continued obstruction to the law remains a feature of right-wing media coverage as well. For years, Fox News fueled obstructionist politicians by promoting myths that expanding Medicaid was costly for states; in reality, states that expanded Medicaid saw slower health care cost increases than non-expansion states, and August 2016 research from the Urban Institute shows that the remaining holdouts stand to benefit enormously from Medicaid expansion. After discouraging states from taking part in the law, Fox absolved itself (and Republicans) of responsibility for the resulting coverage gap, which it framed as as “another problem growing out of Obamacare.”

    Right-wing media have smeared Obamacare for years with baseless catastrophic predictions and falsehoods, and while their fearmongering has been stunningly wrong, it has continued unabated. Positive news about Obamacare -- like its role in reducing medical debt and increasing public health, or the record low uninsured rates driven by the law -- goes unmentioned by conservative outlets while they hype isolated program stumbles as the onset of a looming “death spiral” that will destroy the health care system.

  • Census Report On Median Income, Poverty Gives Broadcast News A Chance To Prove Itself

    Generally Strong Coverage Of Census Data Shows TV News Outlets Can Still Cover The Economy Well When They Try

    Blog ››› ››› CRAIG HARRINGTON

    The major broadcast evening news programs each provided great examples of how network news can still be a source of concise and informative coverage on the economy this week when they covered new data releases from the Census Bureau.

    On September 13, the U.S. Census Bureau released annual updates to its ongoing reports on income and poverty and health insurance coverage in the United States. The reports revealed stunning positive news about the state of the American economy: a record-setting 5.2 percent increase in median household income from 2014 to 2015, median income at its highest point since before the Great Recession, a drop in the official poverty rate of 1.2 percentage points, more than 3.5 million Americans lifted out of poverty, a 1.3 percentage point drop in the uninsured rate, and roughly 4 million fewer uninsured Americans. In response to the data, Robert Greenstein of the Center on Budget and Policy Priorities (CBPP) noted that 2015 marked just the second year since 1988 “that brought simultaneous progress on poverty, median income, and health insurance.”

    Print and online coverage of the Census data was overwhelmingly positive, with CNNMoney writer Tami Luhby and Washington Post contributor Paul Waldman both noting that the data undermine a key (albeit, “false”) talking point frequently used by Republicans: that there has been wage stagnation, and President Obama is to blame.

    Just as importantly, the positive coverage continued during the September 13 editions of major nightly broadcast news programs on ABC, CBS, NBC, and PBS, which collectively draw more than 20 million daily viewers. Only ABC failed to note all three of the key Census data findings -- the increase in median income, the drop in poverty, and the drop in the uninsured rate -- during its reporting.

    As is often the case, PBS NewsHour offered the most in-depth and detailed discussion of the Census reports. Correspondent Lisa Desjardins spent just under three minutes detailing the data and discussing its possible political ramifications and effect on the upcoming election. The segment even included some cautionary notes, including reasons that some Americans have not seen a boost in take-home pay despite the surge in median earnings and some potential problems faced by customers on the private insurance market.

    Next in terms of quality of coverage were CBS Evening News and NBC Nightly News, both of which discussed all of the key takeaways from the data. CBS anchor Scott Pelley said the Census reports were “great news” and stood as proof that “more Americans are cashing in on the recovery.” NBC anchor Lester Holt added that “middle class incomes had their fastest rate of growth ever recorded” and “incomes increased across all racial groups.”

    ABC’s World News spent the least amount of time on the topic, mentioning the Census data as just part of a discussion about the stock market, but anchor David Muir still noted that the 5.2 percent median income increase was “the largest rise in nearly 50 years.”

    The individual segments might not seem like cause for celebration, but, according to recent Media Matters analyses of broadcast news coverage, each segment should serve as an example of how these programs can adequately discuss the economy.

    Overall coverage of the economy fell considerably from the first to second quarter of 2016, as the major networks focused more of their limited time on horse-race political coverage detached from the economic issues that actually drive voter behavior. Coverage of economic inequality and poverty also decreased from the first to second quarter of the year overall -- only ABC and CBS focused more attention on those crucial subjects from April through June than they had in the first three months of the year:

    Unfortunately, throughout the first half of the year, major news outlets have been focusing less and less attention on the economy, creating a void that can easily be filled with misinformation. As broadcast and cable outlets retreated from covering the economy, misleading and biased stories emanating from Fox News and Republican presidential nominee Donald Trump accounted for a higher proportion of coverage.

    Broadcast evening news shows face considerable challenges in trimming segments down to fit abbreviated commercial schedules, but their coverage on September 13 demonstrated that the flagship programs can still balance brevity and substance when they try.

  • Fox Business Cherry-Picks Economic Data To Accuse Obama Of "Cherry-Picking" Economic Data​

    Panelists Ignore The Entire Bush Administration And Great Recession

    Blog ››› ››› CRAIG HARRINGTON

    A Fox Business panel attempting to downplay the latest round of positive economic indicators devolved into self-parody. The host and guests misleadingly framed median income data to omit the economic calamities of the Bush administration while accusing President Obama of “cherry-picking the time frame” and “playing with the numbers” related to other examples of economic improvement.

    On the September 14 edition of Fox Business’ Varney & Co., host Stuart Varney and guests Elizabeth MacDonald and Tammy Bruce slammed President Obama for defending his economic legacy during a campaign stop in Pennsylvania. The segment began with Varney and MacDonald lamenting that new median household income data released yesterday by the Census Bureau is “still below the peak back in 1999,” with MacDonald mockingly adding, “You’re nearly [as] rich as you were 17 years ago.”

    Varney complained that Obama was “cherry-picking” data to claim his administration has created nearly 15 million net new jobs, and MacDonald added, “He’s not factoring in 2009, … so he’s playing with the numbers.” MacDonald further claimed that a “majority of net new jobs” during the Obama administration have been in “low-paying fast-food or health sector” industries. Bruce concluded the segment by lamenting the administration’s so-called “spin” and “theater” while citing evidence from outside sources that she claimed contradicts the significant increase in median household income from 2014 to 2015.

    The complaint that Obama is “not factoring in 2009” is particularly telling, given that the segment began with Varney and MacDonald ignoring all of the reasons that median incomes remained lower in 2015 than at their 1999 peak. What happened between 1999 and 2015 to cause this income stagnation? The answer is simple: two recessions, both of which occurred during the Bush administration and neither of which was Obama’s fault. From the Census report:

    Contrary to Varney’s claim, President Obama was not “cherry-picking” data to prop up his economic legacy. Even Fox’s complaint about shifting the “time frame” on net job creation carries little weight. CNNMoney explained last January that the president is basing his calculation on net jobs created since the low point of his presidency. He does not include 2009, because the economy the president inherited that year was rocked by recession and “it took time for the administration’s policies to take effect.” According to the Bureau of Labor Statistics (BLS), the Obama administration has overseen the creation of 15.1 million private sector jobs since that indicator bottomed out in February 2010 and 10.9 million private sector jobs overall since he took office in January 2009.

    The Census report showed major improvements in the poverty rate and the health care insurance rate and revealed broadly shared income gains across all racial and ethnic groups and by workers at every level of income. The gender wage gap narrowed slightly, with women earning roughly 80 percent as much as men in 2015, up from 79 percent the year before. The Census deemed that increase not to be “statistically significant,” and more work remains to be done to achieve equal pay, but the latest data still reveal the narrowest pay gap in history. Meanwhile, the year-to-year median income increase of 5.2 percent represented “the largest single-year increase since record-keeping began in 1967,” according to The New York Times.

    Fox News and Fox Business have a long history of cherry-picking data to frame the Obama administration and progressive economic policies in the worst possible light. The economy continues to improve despite their protests.

    View the full segment from Varney & Co. here:

  • Two New Reports On LGBT Poverty Shatter Media Myth Of LGBT Affluence

    Blog ››› ››› ALEX MORASH

    Contrary to media misperceptions of lesbian, gay, bisexual and transgender (LGBT) affluence, two new reports by the Williams Institute and Center for American Progress show the LGBT community continues to face higher rates of poverty, low wages, and economic insecurity than non-LGBT people.

    The Williams Institute, an LGBT think tank at the University of California, Los Angeles (UCLA), released its findings “that poverty remains a significant problem for LGBT people” in a report on September 13. The study found that raising the minimum wage to $15 per hour would dramatically cut the poverty rate for same-sex couples -- a 46 percent drop for lesbian couples and a 35 percent decline for gay male couples. The author, economist M.V. Lee Badgett, noted that the study showed that the notion that the entire LGBT community is wealthy is nothing more than “a misleading stereotype” and that “raising the minimum wage would help everybody.” From the Williams Institute:

    The Williams study follows a September 8 report from the Center for American Progress (CAP) that focused on the significant barriers that LGBT people face in accessing middle-class economic security. The study analyzes how anti-LGBT discrimination in employment and housing creates major hurdles for economic security, contributing to wage gaps faced by the LGBT community. CAP reported that up to 28 percent of lesbian, gay, and bisexual Americans have been fired, not hired, or passed over for a promotion as a result of their orientation. As many as 47 percent of transgender Americans have experienced an adverse job outcome, such as “being fired, not hired, or denied a promotion” because of their gender identity, according to the report. CAP also noted that “LGBT people often struggle to find stable, affordable housing” and experience disparately higher out-of-pocket health care costs, which compounds the impact of economic insecurity experienced by LGBT people and their families.

    Media frequently focus on the buying power and affluence of the LGBT community, and on companies that eagerly court the “pink dollar.” On July 20, when one marking firm -- Witeck Communications -- published its findings that LGBT American buying power reached $917 billion in 2015, it was picked up by Bloomberg, The Huffington Post, CNBC, and USA Today. While another study quoted by Business Insider claimed LGBT Americans take “16% more shopping trips” and have more disposable income than their straight counterparts -- claims echoed by a Nielsen study published in the National Journal in 2015.

    Gary Gates of the Williams Institute told The Atlantic in 2014 that the downside of this media-created perception “is that those marketing studies looked at the LGBT community as a consumer market” and may only be seeing LGBT Americans who are in an economically secure enough situation to come out. Marketing studies don’t show that LGBT individuals face higher rates of poverty than their non-LGBT counterparts, or that 29 percent of LGBT Americans have experienced food insecurity in the last year. Right-wing media use the myth of LGBT affluence to dismiss LGBT discrimination and claim laws protecting the LGBT community are not needed. Currently, there is no federal law that protects people from being fired because of their sexual orientation or gender identity. CAP concluded its reporting by noting that the best way to address LGBT economic insecurity would be the passage of a broad-based federal nondiscrimination law called The Equality Act -- which would prohibit discrimination based on sexual orientation and gender identity in public accommodations, employment, and housing.

  • STUDY: Networks Focus Less On Poverty As Coverage Of Inequality Drops

    PBS Sets Itself Apart From Broadcast Outlets On Inequality And Poverty, Fox News Remains Major Source Of Misleading Coverage

    ››› ››› CRAIG HARRINGTON

    In the second quarter of 2016, prime-time and evening weekday news programs on the largest broadcast and cable outlets dedicated significantly less time to economic inequality and poverty than they had in the first quarter of the year. The weekday drop-off was led by CNN and MSNBC, which dramatically reduced their programming on inequality. PBS remained the gold standard among broadcast outlets in terms of covering inequality and poverty, while Fox News remained a prevalent source of misinformation on the same topics.

  • New Research Debunks Right-Wing Media Myths About Effects Of Paid Leave

    Research Suggests Paid Sick Leave Improves Public Health

    ››› ››› ALEX MORASH

    Several media outlets highlighted new research that found workers that had access to paid sick leave are less likely to come to work when contagious -- thus slowing the spread of diseases and improving overall public health. While this may seem like an obvious conclusion, right-wing media have criticized paid sick time and other forms of earned leave as unnecessary “giveaways” for low-wage workers.

  • STUDY: Brexit Crisis Forces Cable And Broadcast News To Host Economists

    Economists Made Up More Than 7 Percent Of Guests In The Second Quarter Of 2016

    ››› ››› CRAIG HARRINGTON & ALEX MORASH

    Economic news in the second quarter of 2016 bore striking similarities to trends established in the first quarter, as the presidential candidates’ economic platforms increasingly shaped the news. Coverage of inequality slipped from a high point last quarter, but the unprecedented economic crisis created by the United Kingdom’s so-called “Brexit” referendum did boost participation from economists to the highest point ever recorded by Media Matters.

  • Journalists Ridicule Lack Of Economic Policy During Trump’s “Make America Work Again” Convention Night

    Day Two Of The Republican National Convention Focused On Emails, Benghazi, And Clinton-Bashing

    ››› ››› CRAIG HARRINGTON

    The second day of the Republican National Convention (RNC) was billed as an opportunity to highlight Republican presidential nominee Donald Trump’s proposals to boost job creation and economic growth. Journalists blasted the RNC and Trump campaign after the speakers ignored the economy and instead attacked Hillary Clinton over issues like the Benghazi attacks and her use of a private email server.

  • CNN Lets Paul Ryan Push Discredited "Welfare Cliff" Myth During Town Hall Event

    Ryan Hypes Right-Wing Media Fiction About “Benefit Cliffs” As “The Core” Of His Anti-Poverty Agenda

    Blog ››› ››› CRAIG HARRINGTON

    CNN allowed Speaker of the House Paul Ryan (R-WI) to use a town hall event to promote his widely criticized “Better Way” poverty reform agenda unchallenged, including the discredited “welfare cliff” myth long promoted by right-wing media.

    A member of the audience -- a Catholic priest and registered Republican -- asked Ryan what plans he had “to meet the basic human needs of the poor in this country, even if they’re here illegally,” during a July 12 town hall hosted by CNN’s Jake Tapper. The questioner juxtaposed the moral imperative to serve individuals “as human beings” without asking them “for their documentation” with presumptive Republican presidential nominee Donald Trump’s “inhumane” stance on immigration.

    Ryan’s initial response was littered with right-wing media talking points about President Obama’s supposed unwillingness to “secure the border” in order to fix the country’s “broken immigration system.” Ryan’s response then shifted to a supposed solution to poverty, which was also focused on myths frequently trumpeted by right-wing media, including how welfare “benefit cliffs” trap recipients in poverty. Ryan incorrectly claimed that the government’s “current approach” to poverty actually “perpetuates” it, and suggested that a “single mom with two kids” earning roughly $24,000 per year (barely above the federal poverty threshold) would rather live in poverty than get a raise “because of all the benefits she [would lose]” (emphasis added):

    PAUL RYAN: Let me get to the poverty point you mentioned. Please take a look at our agenda. This is one of the most important reforms that I think we’re offering. Which is a better way to solve poverty -- “A Better Way To Fight Poverty.” Go to better.gop -- better.gop is where we’ve released our agenda. I spent the last four years going around this country visiting with poor communities, learning about the poor, and the suffering, and better ideas for fighting poverty. We’ve put in a very aggressive plan to go at the root causes of poverty, to try and break the cycle of poverty, and I would argue our current approach at the government of fighting poverty treats symptoms of poverty, which perpetuates poverty.

    Our welfare system replaces work. It doesn't incentivize work. And as a result, we are trapping people in poverty. It's not working. So we think that there's a better way of reigniting what I call upward mobility, the American idea, and getting people out of poverty. Please take a look at these ideas. We have lots of them. I’d love to get into it if you give me time. But this is one of the things that we are talking about. Engaging with our fellow citizens, especially those who have slipped through the cracks, especially those that have no hope, that we have better ideas for helping them get back on their feet and converting our welfare system not into a poverty trap, but a place to get people from welfare to work.

    JAKE TAPPER (HOST): Give me one idea. One poverty idea.

    RYAN: Benefit cliffs. Right now, you stack all these welfare programs on top of each other and it basically pays people not to work. So you know who the highest tax rate payer (sic)? It’s not Anderson Cooper or Jake Tapper; it is the single mom with two kids making maybe -- earning $24,000, who will lose 80 cents on the dollar by taking a job or getting a raise because of all the benefits she loses. So, what happens is, we disincentivize work. We need to taper those benefits cliffs, customize welfare benefits to a person’s particular needs, and encourage work. So, you’ve got so much time to get these benefits, you have to have work requirements or job training requirements. Customize benefits to help a person with their problem. Whether it's addiction, whether it's education, or transportation.

    Catholic Charities, by the way, is the model that I'm talking about. This is basically the Catholic Charities model. Customize support to a person and always make work pay. Make sure that you take the principles that we’ve used for welfare reform in the '90s, which are no longer really working or in place these days, to get people from welfare to work. And that's the core of what we are proposing.

    The term "welfare cliff" was popularized by Pennsylvania's Republican-appointed Secretary of Public Welfare in a July 2012 report, which claimed a "single mom" could nearly double her net income by taking full advantage of nine distinct anti-poverty programs. But the concept of a trade-off between welfare and work dates back to a flawed Cato Institute study from 1995. One thing these studies have in common is the base calculation of benefits available to a hypothetical "single mom" with children. Most American workers aren't single mothers, most recipients of government benefits don't enroll in every single available program, and the value of federal benefit programs like welfare is less now than it was in years past -- facts that are not acknowledged in right-wing media discussions of anti-poverty programs.

    Right-wing media outlets have repeatedly promoted the fantasy that low-income Americans would rather live in poverty than risk losing supposedly generous government benefits, and Paul Ryan is known for loyally parroting right-wing talking points about poverty. In fact, Ryan’s entire “Better Way” anti-poverty agenda for 2016 is built on right-wing media myths, including the so-called “benefit cliff” talking point. Journalists and experts slammed Ryan’s poverty plan, calling it a “seriously flawed” approach “based on faulty assumptions,” and concluding it is seemingly “designed to make it much harder for people in need” to access poverty alleviation programs. The same was true of his much-heralded 2014 anti-poverty plan. Ryan is right that there is a better way to fight poverty, but research by actual economists points to a reform agenda more like the factually based plan put forward by the Center for American Progress than the rehashing of right-wing myths endorsed by Ryan.

    View the full exchange on poverty and immigration from CNN’s House Speaker Paul Ryan Town Hall:

  • New York Times Op-Ed Ignores High Cost Of Low Wages In Calling To Expand Tax Credit

    Manhattan Institute Scholar Peddles Right-Wing Media Myths In Call To Increase Taxpayer Subsidies Of Poverty Wages

    Blog ››› ››› ALEX MORASH

    A New York Times op-ed by a senior fellow at the Manhattan Institute pushed the debunked claim that raising the minimum wage would hurt business and American workers and promoted the expansion of tax credits for workers struggling with poverty. The op-ed failed to mention the high public cost of pushing more of the burden on taxpayers while letting businesses off the hook from paying workers a living wage.

    Manhattan Institute senior fellow Peter Salins claimed that raising the minimum wage constitutes “playing a kind of economic Russian roulette” in a July 6 op-ed in The New York Times, suggesting that instead of raising wages, policymakers should ask taxpayers to foot the bill for increased subsidies for poverty wages. Salins’ proposal, which is a common refrain among conservatives, would shield employers from paying a living wage to their full-time workers by expanding the Earned Income Tax Credit (EITC). Salins claimed that advocates for raising the minimum wage “fail to acknowledge” that low-wage workers have access to the EITC.

    Echoing a myth frequently promoted by right-wing media, Salins alleged that workers would be “priced out of the labor market by an unrealistically high minimum wage” and that the victories advocates for raising the minimum wage have already won may cause “grievous harm.” A $15 per hour minimum wage, in Salins’ estimation, could “reduce the total number of jobs nationally by three million to five million.” From The New York Times:

    In this campaign season, politicians across the country (including the presumptive Democratic presidential candidate and perhaps even the Republican one) have called for raising the minimum wage. Not just marginally, as in the past, but all the way to $15 an hour, more than double the current national level of $7.25. Even elected officials and candidates in states with higher minimum wages like New York have jumped on the $15 an hour bandwagon. Their justification: “You can’t support a family on the current minimum wage.”

    What the advocates fail to acknowledge is that minimum-wage workers with families to support are already eligible to receive a financial boost under a national program called the earned-income tax credit. This program, instituted in 1975 and expanded since then, paid benefits to 27.5 million low-income workers in 2014. (That same year, only three million workers fell at or below the federal minimum wage, so the credit also helped millions of other low-wage workers.) Technically, such payments are classified as “refundable tax credits,” paid to qualifying workers when they file their annual income tax returns.

    [...]

    That is the beauty of the tax credit; it helps low-skilled workers in proportion to their household need, taking pressure off the minimum wage as the only guarantor of a “living wage.” The credit thus performs a crucial function in a national labor market where one size most definitely does not fit all, a labor market that is enormously varied by region, by employers’ needs, by workers’ skills and by the potential for jobs to be replaced by technology. By allowing wages to reflect local economic and industry conditions, the earned-income tax credit makes it possible for all unskilled workers to have jobs — including those not eligible for the credit, like teenagers, single young adults or semiretired older people, who would otherwise be priced out of the labor market by an unrealistically high minimum wage.

    Salins advocated for policies similar to those recently endorsed by Speaker of the House Paul Ryan (R-WI) and identified Ryan in the op-ed as a supporter of expanding the EITC (Ryan’s proposals also ignore the possibility of raising wages or strengthening worker rights). Salins suggested that a hypothetical working mom in a minimum-wage job with multiple dependent children already stands to benefit from the EITC, even though those income supports combined with her low wages would still leave her entire family in poverty. Salins did not mention that progressive groups such as the Center For American Progress (CAP) support raising the minimum wage and expanding the EITC along with other tax credits targeted at low-income families. The EITC has been shown to assist families in poverty, but it alone does not solve the problem of poverty, which is why CAP supports a multipronged approach to assisting low-income families: expanding EITC, raising the minimum wage, increasing educational opportunities, and strengthening worker protections.

    While the EITC program can correctly be called “the most progressive” part of the tax code, expanding the credit would not be free -- and the federal government already spends $68 billion per year on the program. Whereas expanding the EITC would cost taxpayers money, simply raising the minimum wage would actually save money and shift the responsibility of paying a living wage onto businesses. According to a June 2016 report jointly produced by Oxfam America and the Economic Policy Institute (EPI), raising the federal minimum wage to $12 per hour would reduce federal spending on anti-poverty programs like the EITC by $17 billion.

    Low-wage industries create burdens on taxpayers; the notoriously low-wage fast food industry alone costs taxpayers nearly $7 billion annually. Salins’ claim that the American economy would lose millions of jobs from a $15 per hour wage is also suspect because he based his numbers off a model that did not predict jobs losses, but rather the potential for a slightly lower rate of job growth. Right-wing media have a long history of pushing the same unsubstantiated arguments that Salins parroted in the Times -- claiming raising the minimum wage will kill jobs, hurt low-wage workers, and harm the economy -- all of which economists have repeatedly debunked.

  • A “Better Way” To Fight Poverty Based On Research, Instead Of Right-Wing Media Myths

    ››› ››› ALEX MORASH & CRAIG HARRINGTON

    Speaker of the House Paul Ryan’s (R-WI) new series of proposals -- released June 7 in a report commissioned by House Republicans titled “A Better Way to Fight Poverty” -- aims to restructure federal anti-poverty programs, but they heavily rely on myths commonly promoted by right-wing media outlets that mislead about poverty and shame the poor. On June 6, the Center for American Progress (CAP) released its own plan to reform and restructure anti-poverty programs in the United States, offering an example of what serious proposals look like when informed by serious economic research, rather than by right-wing media myths.

  • Journalists, Experts Slam Paul Ryan’s “Better Way” On Poverty

    ››› ››› CRAIG HARRINGTON

    In the week since Speaker of the House Paul Ryan (R-WI) and the Republican-led Task Force on Poverty, Opportunity, and Upward Mobility released their so-called anti-poverty agenda, titled “A Better Way to Fight Poverty,” journalists and experts heavily criticized the plan for rehashing “the same, stale, far-right ideas” pushed by Republicans in the past, and for ignoring basic facts about the inefficacy of these reforms.

  • Ryan's "Better Way" Poverty Plan Is Based On Myths From Right-Wing Media

    ››› ››› ALEX MORASH

    Speaker of the House Paul Ryan (R-WI) and the Republican-led Task Force on Poverty, Opportunity, and Upward Mobility released the GOP’s latest policy plan to cut government anti-poverty assistance programs. Many of the arguments in favor of Ryan’s proposed reforms are based on easily debunked right-wing media myths and poor-shaming. Ryan’s rhetoric in this poverty “reform” agenda -- titled “A Better Way to Fight Poverty” -- is gentler than in his previous policy proposals. But his plans are still based on myths, and his solutions once again are focused on gutting vital programs designed to assist Americans struggling to make ends meet and families in need.

  • Paul Ryan Parrots Right-Wing Media Talking Points To Smear DC’s Minimum Wage Increase

    Ryan’s Agenda To Lift Americans Out Of Poverty Skips Over Raising Sub-Poverty Minimum Wages

    Blog ››› ››› CRAIG HARRINGTON

    Speaker of the House Paul Ryan (R-WI) concluded a June 7 press conference meant to highlight his recent proposals to reform federal anti-poverty programs by confirming that he remains opposed to initiatives aimed at raising local, state, and federal minimum wages. Ryan’s stated opposition to the minimum wage recycles easily debunked right-wing media myths about the supposed negative side-effects of living wages.

    On June 7, the speaker released a report from the Task Force on Poverty, Opportunity, and Upward Mobility. The plan outlines a number of standard conservative proposals to “reform” anti-poverty programs in the United States, but one thing it almost completely ignores is the minimum wage. In fact, the lone mention of the word “minimum wage” appears as part of an argument pushing the debunked “Welfare Cliff” myth, the claim that low-income, single moms are so heavily subsidized by government benefits that they have no incentive to pursue professional advancement.

    At the conclusion of his press conference, Ryan was asked by two reporters to comment on a plan in Washington, D.C. to raise the municipal minimum wage to $15 per hour by 2020 and then index it to inflation. In just over a minute, Ryan proceeded to parrot numerous debunked charges commonly leveled against the minimum wage by right-wing antagonists. From CNN Newsroom:

    Ryan’s anti-minimum wage talking points are either misleading, or outright false. Ryan also missed basic facts of D.C.’s minimum wage initiative, which the Economic Policy Institute (EPI) estimates will result in increased wages for one-fifth of the city’s private sector workers.

    Increasing The Minimum Wage Does Not Hurt Entry-Level Workers

    Ryan claimed that raising the minimum wage “prices entry-level jobs away from people” before engaging in the common right-wing media tactic of reciting a story of his own youthful experiences working in the fast-food industry.

    Right-wing media frequently claim that minimum wage positions are meant to be entry-level jobs (usually just for teenagers), but the fact is that the majority of minimum wage workers are adults over the age of 25 and less than one-quarter of minimum wage workers are aged 16 to 19. Women make up a disproportionate number of minimum wage workers, and according to July 2015 research from EPI, stand to benefit considerably from an increased minimum wage.

    Fast-Food Jobs Were Never The First Rung On A Ladder Of Upward Mobility

    Ryan claimed that working at McDonald’s was “a great way to learn skills,” a wage and job mobility myth about fast food workers frequently parroted by right-wing media. But according to a July 2013 report by the National Employment Law Project (NELP), the fast-food industry is particularly bad at providing actual opportunities for advancement to low-wage workers. Entry-level workers account for 89 percent of fast food industry workers, and only a tiny fraction move on to management or ownership positions.

    Economic Growth And Job Creation Is Not Enough To Curb Poverty

    Ryan concluded his remarks by saying that he does not want to “cap” wages, he wants to “unleash[]” them, and institute policies that create “the kind of economy, and economic growth … that help get people better jobs, in a better economy, that has a more promising future for them.” Those claims echo a common right-wing media myth, that economic growth can indirectly lift millions of Americans out of poverty without the need for targeted programs.

    But the budget, economic, and tax proposals Ryan and his fellow Republicans repeatedly support do not generate the economic growth they promise. The trickle-down economic principles he has spent a career endorsing are a proven failure.

    If economic growth alone was the key to solving poverty and reducing economic inequality, both would have been wiped out decades ago. According to a January 29 report from the Brookings Institution, the relationship between economic growth and improved economic inclusion is “relatively weak” across the United States. The Brookings research seems to support a hypothesis endorsed by economists Jared Bernstein of the Center on Budget and Policy Priorities (CBPP) and Elise Gould of the EPI, who argue that economic growth alone is not enough to reduce economic insecurity in the face of persistent inequality.