From the February 27 edition of Fox News' The O'Reilly Factor:
Loading the player reg...
Fox News is stoking fears that in "Obama's America," Supplemental Nutrition Assistance Program (SNAP) benefits (food stamps) may be used for lap dances and liquor, a shameless misrepresentation given that under USDA regulation, benefits may not be redeemed for cash or used for non-food items.
On the February 25 edition of The Five, co-host Eric Bolling cited an interview with surfing freeloader Jason Greenslate that aired on The O'Reilly Factor the night before. Like Fox's first profile of Greenslate during the August 2013 special titled "The Great Food Stamp Binge," wherein the network attempted to make the "blissfully jobless California surfer" the face of SNAP benefits, Bolling used Greenslate to suggest that the program is rife with fraud, suggesting that food stamps may be used in "strip clubs, liquor stores, [and] pot dispensaries":
BOLLING:He's playing the system, he's stretching the rules to their limits. But what would you expect with a $105 billion dollar program that's almost tripled under Obamanomics? That's what you would expect, right there, take a look at it. But what's next? Strip clubs, liquor stores, pot dispensaries? Oh, that's already going on, folks. Welcome to Obama's America.
Bolling went on to claim that Greenslate is "representative of literally millions of Americans," before concluding: "The SNAP program, it's not called food stamps anymore, it's called SNAP. Supplemental -- what, N -- Nutrition. Right. What about liquor, lap dances, and pot is nutritional?"
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.
From the February 13 edition of Fox News' The Five:
Loading the player reg...
From the February 10 edition of Fox News' America's Newsroom:
Loading the player reg...
Right-wing media figures are baselessly stoking fears about calls to reduce inequality and expand opportunity to low-income Americans, claiming that these efforts are evidence of persecution of the rich and class warfare.
The media has extensively reported on the Republican National Committee's decision to boycott MSNBC following an offensive tweet for which the network subsequently apologized. But they've spent far less attention on the fact that the RNC denounced MSNBC while on Fox News -- a network that has frequently aired offensive and derogatory comments.
From the January 30 edition of Fox News' The O'Reilly Factor:
Loading the player reg...
From the January 28 edition of Fox News' Special Report with Bret Baier:
Loading the player reg...
As the dilemma of growing income inequality has become the object of increasingly intense public scrutiny, Fox News has consistently resisted engaging in the subject with facts.
What Fox's viewers miss is real discussion of a problem that has been building for decades and undermines America's economic stability and growth. According to Nobel Prize-winning economist Joseph Stigliz, income inequality "reinforces itself by corroding our political system and our democratic governance." And economists have found that income inequality has been "the most important" determinant of poverty in the past several decades.
Experts say that inequality is damaging, but preventable. They highlight policies like increasing the minimum wage, larger tax credits for low-wage workers, government-subsidized childcare, renewed investment in schools, universal health insurance, and expanded union rights as opportunities to reduce inequality -- policies that Fox has routinely helped to smear.
At Fox News, President Obama's push to increase the federal minimum wage for millions of American workers through legislative and executive action is merely a "symbolic" gesture.
On January 28, the White House announced that President Obama had authorized an executive order raising the minimum pay for federal workers to $10.10 per hour, a regulation that will be effective for all employees signing a new federal contract. According to the White House's official press release, the president hopes that this move will encourage Congress to take action on a proposal by Representative George Miller (D-CA) and Senator Tom Harkin (D-IA) to increase the federal minimum wage to $10.10 for all American workers.
On the January 28 edition of Fox News' America's Newsroom, co-host Bill Hemmer called the move a "shot across the bow" for congressional Republicans resisting an increase to the minimum wage. Fox Business' Stuart Varney questioned the White House's motivation, claiming that it was a "symbolic" move motivated by political circumstances and concluding that an executive order lifting wages for all federal employees was simply "not a big deal":
Varney's disregard for the impact of executive action on the minimum wage mirrors comments from other Fox News personalities. On the January 27 edition of The Real Story, contributor Charles Payne scoffed at the notion that lifting the minimum wage is an important goal, noting, "higher minimum wage is not the cure, we're talking about something that impacts less than 3 percent of real workers."
Demos' Heather McGhee hailed the Obama administration for lifting federal pay through executive order, noting that the decision "adds momentum to the fight for a federal minimum wage increase." According to research from the Economic Policy Institute, adopting a $10.10 minimum wage nationwide, which would require congressional legislative action, would positively impact the wages of more than 27 million workers while boosting overall economic growth by $22 billion and creating enough economic demand to support 85,000 new jobs.
Increasing the federal minimum wage to $10.10 nationwide also has the support of hundreds of economists around the country, including numerous Nobel Laureates.
In an economy as large as the United States, while it may be easy for right-wing media voices to shrug off the implications of minimum wage policies, the fact is that, according to the Bureau of Labor Statistics, roughly 3.6 million American workers currently work at or below the federal minimum wage of $7.25 per hour. After adjusting for inflation, the federal minimum wage is lower than at any point from the 1950s to the early 1980s.
Right-wing media's opposition to raising the minimum wage has grown as public sentiment has turned in favor of it. Varney's pattern of deriding both policies to lift wages and low-wage workers themselves appears to be par for the course.
New research reveals that the Affordable Care Act has a relatively strong effect on reducing income inequality and economic insecurity for low-income Americans. However, given past coverage of the law, this fact is likely to go underreported in media.
A new study from the non-partisan Brookings Institution projects the Affordable Care Act (ACA, or "Obamacare") to positively impact low-income Americans. The research, performed by economists Henry Aaron and Gary Burtless, reviews a comprehensive income measure combining wages, the value of employer-provided health insurance, and the value of government-subsidized coverage. The authors project that the ACA will increase incomes in the bottom-fifth of the population by almost 6 percent, while increasing incomes in the bottom-tenth of the population by more than 7 percent.
Additionally, the authors found that positive "benefits of the ACA to low-income families would have been greater if the enacted version of the law had been put into effect." According to the study, the Supreme Court's landmark 2012 decision upholding the law, but allowing states to opt-out of expanding Medicaid to low-income residents, has dampened the effectiveness of health care reform -- preventing nearly 6 percent of the American population in the lowest 20 percent of income earners from accessing free health coverage through Medicaid. If not for the Supreme Court's decision, and corresponding "state inaction," the relatively strong impact of the ACA in reducing inequality for low-income Americans would have been greater.
The study concludes that, while the ACA does not positively impact the income of all Americans, the "small proportional drops in income" correspond with "larger proportional gains" for the poorest quarter of the working population. The graph below shows the average expected impact of the ACA on after-tax adjusted incomes for each tenth of the wage spectrum. The results show that corresponding positive impacts at the bottom of the income bracket more than make up for marginal decreases at higher income levels.
Previous Media Matters research has exposed how the media almost never mentions the positive impact of health insurance access on reducing economic inequality and strengthening economic security. Instead, media outlets opted to focus on the difficult rollout of Obamacare health care exchanges -- notably Healthcare.gov. The lack of discussion regarding the positive impact of the ACA on reducing economic inequality is particularly pervasive among right-wing media, where policy proposals aimed at reducing inequality are treated as trivial and unimportant.
Image via southerntabitha using a creative commons license
Fox News is misleadingly touting the results of a recent poll to falsely claim that a majority of Americans don't care about inequality and believe that government should do nothing to reduce it.
On the January 23 edition of Fox & Friends, hosts Brian Kilmeade, Steve Doocy, and Elisabeth Hasselbeck discussed the recent policy pivot by Republicans and Democrats toward addressing income inequality. During the segment, the results of Fox News poll in which respondents were asked to prioritize pressing economic issues were displayed on screen:
Doocy used the results of the poll to claim that Americans are unconcerned about rising income inequality:
DOOCY: This is what you're concerned about. Forty percent of you are worried most about jobs and unemployment. About the same number worried about the deficit and how much the government spends. Meanwhile, you wind up with "income inequality" at only 12 percent.
Later that day on America's Newsroom, co-host Martha MacCallum and Fox News contributor Monica Crowley returned to the poll, claiming that the results also showed most Americans do not want the government to take action to reduce income inequality. During the segment, the following graphic ran on the screen:
Fox, and the poll they cite, are creating a false choice between reducing income inequality, creating jobs, and addressing the deficit.
Numerous economists, including Jared Bernstein, former Labor Secretary Robert Reich, and Nobel Laureate Paul Krugman have argued that rising inequality is bad for the economy and creates a drag on economic growth. Furthermore, in their recent book, "Getting Back to Full Employment," Bernstein and economist Dean Baker outlined proposals that could create jobs while lifting wages and reducing reliance on government safety net programs, thereby positively impacting job creation while reducing some pressure from the federal budget. In the view of many prominent economists, Americans do not have to choose between jobs, deficit reduction, or reducing economic inequality; sensible policies can be implemented to address each issue.
Additionally, while MacCallum suggested that few Americans want government action to reduce inequality, the actual poll shows that participants were never asked about inequality. Instead of being asked "How do you feel about income inequality" as Fox showed on air, the actual question in the poll was "How do you feel about the fact that some people make a lot more money than others?"
Differences in individual earnings, which the poll asked about, and structural inequality -- the idea that a small share of earners at the top capture nearly all income gains -- are not the same thing.
When Americans are asked directly about whether or not government should do anything to mitigate income inequality, the results are quite different from what Fox claims. According to a January 23 poll conducted by the Pew Research Center and USA Today, 69 percent of Americans believe that government should do "a lot" or "some" to reduce inequality.
Furthermore, a majority of respondents -- 54 percent -- support raising taxes on the wealthy and expanding programs for the poor in order to help close the income gap.
Media Matters research shows that Fox, along with other right-wing media outlets, consistently misrepresents the issue of economic inequality. These skewed poll results are just the latest in a long line of examples.
From the January 22 edition of Fox News' The O'Reilly Factor:
Loading the player reg...
A new right-wing media narrative is brandishing out-of-context statistics on inherited wealth to argue that lower-income Americans are disproportionately benefiting from inherited wealth transfers, unlike the wealthiest Americans who earn their wealth with hard work.
As a national dialogue heats up over the problem of global and domestic income inequality, Fox News, Rush Limbaugh, and others are rushing to the defense of the wealthiest Americans by claiming that low-income Americans simply don't work as hard as their wealthy peers. As evidence, the conservative outlets are pointing to a Bureau of Labor Statistics (BLS) study showing top income brackets inherit a smaller percentage of their wealth than do lower income Americans, a finding that, according to National Review's Kevin Williamson, proves that rich Americans "work more -- a lot more."
The January 22 edition of Fox News' Fox & Friends hosted Williamson to discuss his theory, and co-host Elisabeth Hasselbeck introduced his segment by saying, "It's easy to assume that the rich inherit their money without earning it. But in reality, under 15 percent of top income earners inherit their wealth, while more than 40 percent of lower income earners inherit theirs." Fellow co-host Brian Kilmeade added, "So how does the rich really make their money? ... By hard work! That's the conclusion. Wealthy households tend to have four times the amount of full-time workers than poorer households."
Rush Limbaugh read from the National Review post on the January 21 edition of his radio show, stating that "The middle class and the poor, a greater percentage of their assets come from inheritance than from working, rich Americans. The country would be far better off if more people actually lived the way the top 20 percent do. If they actually worked like the top 20 percent do."
Ignoring the fact that Limbaugh, Friends, and National Review are attacking a straw man -- they never identify anyone who is arguing that wealthy Americans don't work hard -- their argument omits an important statistic from the BLS study they cite: The average value of "wealth transfers" (of which inheritances are a large percentage) to low-income Americans versus those to wealthier Americans.
BLS did indeed find that among the households in the highest income brackets, transfers accounted for only 12.6 percent of net worth. What Fox and the like omit is the fact that the average value of wealth transfers received by the top 1 percent of U.S. households was a whopping $1,045,200 in 2007. That's twenty-five times the average value of inheritances for households in the lowest income bracket, whose average inheritance was $42,000 the same year. For lower-income earners, 42 grand is a large chunk of their total wealth. But the average wealth of households in the top 1 percent isaround $16,439,400 -- so a million dollar inheritance is not as impactful.