From the August 21 edition of Fox News' Your World with Neil Cavuto:
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Fox News turned to misleading statistics and sensational rhetoric in a renewed attack on government anti-poverty relief programs, federal workers, and public pensions.
On the August 21 edition of Fox News' Happening Now, co-host Jon Scott invited Fox Business contributor Charles Gasparino to discuss concerns regarding the scope and sustainability of government benefit programs. The two falsely portrayed government employment as a "growth industry" and made a confusing comparison between the total number of Americans receiving so-called "welfare" and the population of Russia. Gasparino lamented that more "stigma" is not attached to receiving federal aid or "living in a housing project," before falsely concluding that public pensions face a "huge looming crisis" and are, in essence, "Ponzi schemes":
GASPARINO: I don't think Americans are against handing people a check if they really need it, if they're starving, if they need welfare, if they need a helping hand. But we have a cultural situation in this country where it is more than that, where it is almost acceptable. The stigma is gone about accepting that check.
GASPARINO: We've become the old Soviet Union! If you threw in the state numbers, it would even be bigger. The pension issue that I brought up is one of the huge looming crisis out there. It's essentially a Ponzi scheme.
Scott's initial claim that "nearly 110 million Americans live in households on welfare," is misleading. According to the United States Census Bureau, in the fourth quarter of 2012 roughly 109.6 million Americans resided in a household receiving "one or more means-tested programs." These include housing assistance, disability and survivor benefits, numerous nutritional assistance programs, Medicaid, and forms of "cash assistance." Only 5.4 million individuals lived in homes receiving from the benefit program Temporary Assistance for Needy Families (TANF), commonly referred to as "welfare."
The portrayal of government employment as a "growth industry" is also false. According to the Federal Reserve Bank of St. Louis, total government employment across local, state, and federal agencies has declined significantly during the Obama administration and over the past seven years. Total government employment was roughly 22.6 million when President Obama took office in 2009, declining to 21.9 million today:
Gasparino's final claim that public employee pensions are "a Ponzi scheme," is incorrect. A February 2011 report by economist Dean Baker of the Center for Economic and Policy Research (CEPR) demonstrated that most of the long-term funding shortfall in public pensions is a result of the 2007-2009 economic crisis and the accompanying stock market downturn. Baker concluded that the debate on pensions had been "seriously misrepresented" and that most public pensions appeared "easily manageable" over the long term.
Fox News and Gasparino have a long history of misappropriating terms like "welfare" and relying on sensational comparisons of pensions to "Ponzi schemes," in addition to unsubstantiated correlations between the number of recipients of a government program with completely unrelated population statistics.
From the June 28 edition of Fox News' Cavuto on Business:
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Multiple Rupert Murdoch-owned media outlets, including the New York Post, Fox News, and The Wall Street Journal, have launched false attacks against New York City Mayor Bill de Blasio's record on charter schools to paint him as waging a "war on children" and "poor kids," all while ignoring the benefits of de Blasio's push for universal pre-K in the city.
The attacks on de Blasio from Murdoch's media came in response to the announcement on February 27 that he blocked three New York City charter schools from using public school space rent-free. News Corp. head Rupert Murdoch himself kicked off the attacks with two incendiary tweets on February 27, asking how "de Blasio [can] do this" the same day President Obama unveiled his initiative for young boys and men of color, and falsely claiming that de Blasio's move "hurts poor families who only want a better school for their kids."
On Fox News, On The Record host Greta Van Susteren claimed the next day that "New York City democratic Mayor Bill de Blasio, he just declared war on children," calling him "selfish, really selfish" and accusing him of "picking on the poor kids," asking, "Who could be that rotten?" On the March 3 edition of Fox & Friends, Fox correspondent Charles Gasparino accused "comrade Bill" of wanting "essentially to end charter schools." Later that day, The Real Story host Gretchen Carlson said that de Blasio "ax[ed] three planned charter schools," asking one of her guests, "Why is this an outrage in your mind that Mayor de Blasio is going to strip kids from going to charter schools?"
In print, the New York Post likened de Blasio's charter school move to New Jersey Governor Chris Christie's Bridgegate scandal (in which the governor's office engaged in political retribution), calling it "Chartergate" and writing that "de Blasio is taking good schools away from disadvantaged minority children to get back at his enemy." The Wall Street Journal editorial board called for Education Secretary Arne Duncan to defend the closed schools, claiming, "National Democrats are silent as Bill de Blasio kills charter schools."
But the facts tell a different story. According to The New York Times, de Blasio said "he would block three charter schools from using space inside New York City public school buildings." The Times explained that "[i]n reviewing 49 proposals to share school space approved under [former New York City Mayor] Mr. Bloomberg, he left untouched a majority of plans affecting charter schools." He did not "end" them or "kill" them or wage "war," as Murdoch and his media outlets claim. Furthermore, city officials told the Times that some of the plans, which were approved by Bloomberg, "would have required elementary school students to attend class inside high school buildings, and others would have required cutting programs for students with disabilities."
What right-wing media conveniently ignore in characterizations of de Blasio as picking on "poor kids" is his push for universal pre-K in New York City, which would mean greater early education access for every child regardless of their income status. The New York Times reported last week that de Blasio estimated "up to 29,000 [pre-K] seats could be opened at schools and so-called community based organizations" using his plan to fund pre-K through a higher state income tax. And as Washington Post columnist Katrina vanden Heuvel pointed out in January, de Blasio's plan "reflects growing evidence ... that high-quality, universal access to pre-K can make a significant difference in the lives of children, especially those from low-income families."
Don't expect to get the facts from Rupert Murdoch's media outlets any time soon -- their history of inflated rhetoric about de Blasio ensures his education plans will continue getting the fact-free right-wing treatment.
Fox News is helping promote Sen. Tom Coburn's misleading report on health care spending, which attacked the Affordable Care Act by cherry-picking data on the rise of spending in health care systems.
The Oklahoma Republican released a report this week titled "The History of Federal Health Care Spending," which attempted to rebut projections that the ACA will reduce the deficit and lower health care costs by presenting data on the cost growth of other federal programs like Medicaid and Medicare. The report argued that that "the government's spending on health care programs usually outpaces economic growth" and that "compared with initial government estimates and outlays, most programs have experienced exponential growth."
On Fox News' America's Newsroom, co-host Bill Hemmer said the report revealed "stunning numbers," while Fox contributor Charles Gasparino endorsed the report's suggestion that the growth in government health care programs contradicted positive projections of the ACA's impact, claiming "when government is this much enmeshed in a program like this, it always leads to disaster":
But Fox's hype ignores the crucial flaw in Coburn's report -- it omits crucial context about why the programs' costs have increased and how they perform at controlling costs when compared to private health insurance.
While it's true that spending on programs such as Medicaid and Medicare have increased over the last 50 years, the cause of those rising costs are not a result of government involvement, but due to the fact that overall spending on health care has increased exponentially. A 2010 report in Health Affairs which tracked Medicare spending over roughly 20 years found that much of the growth "is attributable to rising spending on chronic conditions -- specifically diabetes and hypertension, both of which rose considerably in treated prevalence over the past two decades."
Notably, the Kaiser Family Foundation found that "Since Medicare's inception, however, growth in annual spending per beneficiary has been approximately one percentage point lower than private health insurance spending":
From the October 21 edition of Fox News' America's News HQ:
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Fox News is using the struggles of electric automaker Fisker to smear the stimulus, even though the company received its loan from a completely separate Bush-era program, and both have created jobs.
On Thursday's Fox & Friends, Fox Business correspondent Charles Gasparino incorrectly claimed that Fisker received stimulus money, adding "when you use stimulus money, you're supposed to create jobs":
However, the Department of Energy's Advanced Technology Vehicles Manufacturing (ATVM) program is separate from the 2009 stimulus package signed into law by President Obama. Rather, it was enacted with broad bipartisan support in 2007 to award loans encouraging "meaningful improvements in fuel economy performance." More than half of that money went to improve the technology of conventional gasoline-fueled vehicles, but some went to support pioneering hybrid and electric cars. Since then, some of the latter, like the Tesla Model S and Nissan Leaf, have been successful.
While the primary focus of ATVM was different than that of the stimulus, the program has still supported more than 35,000 jobs.
From the March 2 edition of Fox News' Cavuto on Business:
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From the January 26 edition of Fox News' Cavuto on Business:
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The Republican-majority Michigan legislature today approved a so-called "right-to-work" law that would significantly reduce the power of organized labor in that state. The legislation prohibits unions from collecting dues from nonunion employees.
Fox has been aggressively defending this "right-to-work" law, falsely claiming it will benefit workers and the state economy and touting it as a "victory for capitalism." The network continues to defend this type of legislation despite the fact that "right-to-work" laws have had a significant and negative effect on state economies, employment, and employee compensation.
Here, Media Matters looks at some of the worst anti-union rhetoric from Fox.
Fox News tried to undermine President Obama's tax plan by pushing six debunked tax myths in advance of negotiations on how to avoid a series of automatic tax increases and spending cuts. In reality, Obama's proposal to let tax cuts for wealthy Americans expire will grow the economy and is supported by a majority of Americans.
From the November 15 edition of America's Newsroom:
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Fox News is seizing on high gas prices in California to push for opening up new areas, including the California coast, to drilling, ignoring the real factors driving up prices at the pump. But experts say increasing U.S. production will have no impact on gas prices, and that the only way to protect against price spikes is to reduce consumption.
Gas prices in California hit near-record highs this week as a result of supply disruptions at several key refineries in the state as well as the shutdown of a contaminated pipeline. Fox & Friends devoted an entire segment to the California price spike this morning without once mentioning these factors. Instead, Fox's Charles Gasparino blamed President Obama for implementing "policies that discourage drilling." While Gasparino acknowledged that "some of this is out of [Obama's] control," he said the President should know that "we could have lower gas prices, lower oil prices if you start drilling."
Later on Varney & Co., Fox Business' Charles Payne blamed California policies, saying: "They won't take advantage of natural resources, they won't allow drilling, it's just economic suicide."
Local media are misrepresenting the solutions to the price spike as well. An OC Register editorial claimed that drilling off the coast of California would drive down prices:
Gasoline prices in reached a record high in California this week, making us wonder if it might be time to revisit energy policies in the state. Determining what causes the rise and fall of gas prices isn't easy - there are whole industries devoted to it. However, there are a few things that certainly don't help and ought to be corrected.
Let's begin with supply. California artificially constricts fuel supplies by banning oil drilling along the coast. The Federal Energy Information Administration estimated in June 2011 that there were some 15.4 billion barrels in the Monterey Formation off the coast of California. "If the EIA estimate is reasonably close to the mark, the Monterey Formation would be in a class with oil fields in Saudi Arabia," wrote Tom Gray for City Journal. To put that in perspective, that's roughly quadruple the estimated reserves in North Dakota's Bakken shale formation. By Gray's count, those barrels would be worth about $1.5 trillion in today's prices, and prices are expected to rise.
But because the price of oil is dictated by the global market, expanding U.S. production would not protect against price spikes. A recent analysis by the Associated Press found "[n]o statistical correlation between how much oil comes out of U.S. wells and the price at the pump."
Fox Business News correspondent Charles Gasparino attacked the government's role with General Motors by comparing it to the 2009 stimulus, also known as the American Recovery and Reinvestment Act, which he falsely described as an "utter failure."
During today's edition of Fox News' Fox & Friends, Gasparino suggested that GM wants the government to sell its stocks because the Obama administration is "particularly bad at central planning" and has made GM "not a great company now, no matter what they say." Gasparino continued, "I mean, you've seen what they did with the stimulus package -- complete, utter failure."
History tells a different story about the government-sponsored auto bailouts. Starting in December 2008 and ending in June 2009, the federal government loaned the auto industry $85 billion. Shortly after the money was loaned, the auto industry began its recovery and steadily added more jobs; sales of the Big Three automakers (GM, Ford, and Chrysler) are now, reportedly, "surging." Specifically, General Motors business was up 10 percent this month including all four brands posting higher total and retail sales compared with a year ago. From the September 4 GM sales report:
These sales in turn have resulted in more jobs for American workers. The Toledo Blade reported:
In the wake of a $2 billion trading loss sustained by the bank JPMorgan Chase, many economists have advocated for the strengthening of financial reform to prevent against reckless behavior. Not Fox, however, which has argued that the problem is too much regulation of Wall Street banks.