As part of a campaign to pressure CNBC to improve its climate change coverage, mobile billboards are circulating the financial districts of New York City and Chicago on Thursday and Friday. However, rather than airing accurate information on how prominent business leaders use climate science to optimize their risk management strategies, CNBC has continued to air people denying climate change entirely.
The campaign by Media Matters, Forecast the Facts, and Environmental Action was hosted on fuel-efficient trucks to highlight Media Matters' studies finding that the majority of CNBC's relevant coverage casts doubt on the basic scientific consensus that climate change is real and manmade. So far, CNBC has not shown any signs of improvement -- even after a 45,000-signature petition called on CNBC to improve its coverage.
Most recently, CNBC hosted Joe Bastardi, whose arguments for climate change denial have been called "utter nonsense," "very odd" and "simply ignorant" by scientists, to discuss Super Typhoon Haiyan. When another meteorologist noted that rising sea levels have worsened the damage from storms such as Haiyan, Bastardi -- who has claimed contrary to basic physics that carbon dioxide "literally cannot cause global warming" -- predictably dismissed the greenhouse gas connection:
CNBC analyst Michelle Caruso-Cabrera incorrectly argued that there is "next to zero" threat of default at the debt ceiling deadline, accusing White House press secretary Jay Carney of "fear mongering" on the issue.
On the October 1 edition of MSNBC's Morning Joe, Caruso-Cabrera joined a panel discussion of the government shutdown to provide an outlook on its projected effects on financial markets and the greater economy. After downplaying the impact of the shutdown, Caruso-Cabrera addressed comments made by Carney concerning the October 17 debt ceiling deadline. Caruso-Cabrera disregarded the administration's concerns that failing to raise the debt ceiling presented a threat to the American and global financial system, stating:
CARUSO-CABRERA: There is a strong school of thought out there that says if we hit the debt ceiling, that it's not Armageddon, that we don't see skyrocketing interest rates. They keep saying "default on our debt," we just heard Jay Carney say that. The chances of that happening are next to zero because you can prioritize your payments. Defaulting on debt means the U.S. government would not make an interest payment [to] the U.S. Treasury. Highly unlikely, and the other thing is, if you pay that late, if it were even to happen, that is not default. And for investors to suddenly sell U.S. treasuries, because there's going to be a three-day payment late? Highly unlikely, because there aren't many other choices in the world.
Caruso-Cabrera closed the segment by accusing Carney of "fear mongering."
CNBC's Joe Kernen reacted to news from the Indian central bank by forwarding a number of racial stereotypes against Indian-Americans.
On September 20, India's central bank unexpectedly raised interest rates by a quarter percentage point to address concerns over inflation.
Reacting to the news and its effect on exchange rates on the September 20 edition of CNBC's Squawk Box, co-hosts Joe Kernen, Becky Quick, and Andrew Ross Sorkin turned the discussion to the rupee. After Quick noted that she still had rupees left from a recent trip to India, Kernen repeatedly stated the name "Gandhi" -- whose likeness appears on the rupee -- in a stereotypical Indian accent and later asked, "Are they good at 7-11?"
After Quick told Kernen his comments were insulting, Kernen apologized, saying, "I'm sorry, I take it back. I apologize, before I have to."
Here's a full transcript of the exchange:
QUICK: I think I have rupees in my wallet right now.
KERNEN: From your trip?
QUICK: No, I think I honestly do from the last time I was in India.
QUICK: Yeah, I think I might. Hold on.
KERNEN: You got a rupee in your wallet?
QUICK: I think I do.
SORKIN: That sounds a little, um.
KERNEN: You've got to be kidding. There is the rupee chart, just in case you were wondering where the rupee is. The dollar had been soaring, look what happened when we said we were going to keep pumping.
QUICK: I do.
KERNEN: Becky's got a rupee.
SORKIN: A rupee!
QUICK: Here's a fifty and a ten.
SORKIN: How much are those worth, do we know?
QUICK: I don't remember.
SORKIN: Look at Gandhi.
KERNEN: Well, ones worth ten and one's worth fifty, what do you mean?
SORKIN: Gandhi's on the rupee. Look at that.
KERNEN: Gandhi. Gandhi. Now. No, I can't make any jokes about that, I mean do they take -
KERNEN: No I can't do it. I was going to say something.
QUICK: Please don't.
KERNEN: I really can't?
QUICK: No, you can't.
KERNEN: Are they good at 7-11?
KERNEN: Alright, alright, I won't. Let's look at the - people say that all the time. Right? Oh, you're nervous.
SORKIN: They do. They do say that all the time.
KERNEN: They do. They say it all the time.
QUICK: It's insulting.
SORKIN: I've heard that.
KERNEN: It is. Alright, I'm sorry, I take it back. I apologize, before I have to.
UPDATE: In a statement to Mail Online shortly after Media Matters reported on his initial comments, Kernen apologized:
In a comment to Mail Online, Kernen said: 'Last Friday, I made an inappropriate and insensitive remark on Squawk Box. I apologize for any offense it caused.'
In the first half of 2013, a little more than half of CNBC's climate change coverage cast doubt on the consensus position that it exists and is manmade. In the three months since, little has changed -- in a disservice to its viewers, who will need to factor climate change into their long-term business planning, CNBC has continued to deny the science.
Economist Mark Zandi debunked the myth that the Affordable Care Act (ACA) has been responsible for a shift away from full-time jobs to part-time work. Zandi's analysis flies in the face of the popular right-wing talking point that the ACA has been responsible for a rise in part-time employment at the expense of full-time jobs.
Fox has consistently ignored data to make the false claim that the ACA has caused a shift from full-time work toward part-time work, often using dishonest anecdotes and analysis from the likes of Karl Rove to make its point.
On CNBC's Squawk Box, Zandi, the chief economist at Moody's Analytics, pushed back on the panel's speculation that the ACA has been responsible for a rise in part-time employment. When asked if Rove was correct in claiming that ACA has led to a rise in part-time employment, Zandi responded with a "no." Zandi later said of the part-time work claim: "I don't see it in the data."
As more data come in, the law's impact can't be seen in hiring statistics, says Mark Zandi, chief economist of Moody's Analytics.
"I was expecting to see it. I was looking for it, and it's not there,'' says Zandi, whose firm manages ADP's surveys of overall private-sector job creation. If the Affordable Care Act "were causing a drop, you would see meaningful slowing.
Zandi is joined by other economists in his analysis. Economists Jared Bernstein and Paul Van de Water of the Center on Budget and Policy Priorities noted that the share of involuntary part-time workers "is down about one percentage point off of its peak." Helene Jorgensen and Dean Baker of the Center for Economic and Policy Research found that the number of workers working below the 30 hour cutoff in the range of 26-29 hours per week is actually lower in 2013 than in 2012, and concluded: "This suggests that employers do not appear to be changing hours in large numbers in response to the sanctions in the ACA."
The evidence is overwhelming that the Affordable Care Act has had little to no impact on full-time versus part-time job growth, and as Fox News personalities continue to push the myth, they find themselves in direct contradiction with analysis put forth by actual economists.
Environmental activists, spurred in part by a Media Matters study that found CNBC was misleading on climate change, held a protest in front of CNBC's headquarters Tuesday and submitted more than 42,000 signatures in support of a petition urging the cable network to improve its coverage of that issue.
Members of Environmental Action and Forecast the Facts gathered in front of the business network's offices in Englewood Cliffs, N.J., for a 20-minute event. Their protest highlighted the damage done to New Jersey during last year's Hurricane Sandy and pointed out that CNBC's poor climate change coverage does a disservice to its audience, whose companies can reduce risk and increase profits with accurate information on how climate change is impacting their industries.
"There is this growing evidence of the economic impact of climate change," said Jesse Bacon, field organizer for Environmental Action. "It is crucial and we hope to see an improvement in their climate coverage. CNBC has a reputation as a journalistic outlet so people take them seriously."
The protest is, in part, a response to findings by Media Matters in June that the majority of CNBC's climate coverage cast doubt on the validity of the situation.
At the end of Tuesday's event, Bacon and other organizers presented the petition with what they said were more than 42,000 signatures to CNBC spokesman Brian Steel.
The petition states:
To CNBC Chief Executive Officer and President Mark Hoffman:
Tell Joe Kernen and your other on-air personalities and guests to stop denying climate science and start reporting the facts on the economic risks of fossil-fueled climate change.
Media Matters identified Kernen, the co-anchor of Squawk Box, as "the most vocal CNBC figures on climate change in 2013, frequently pointing to cold weather to suggest that global warming is not occurring."
Bacon said more than 42,000 signatures was "a very high number of people for us. This really resonated. People do care what's on television and what's being covered."
Steel met the group in the parking lot of CNBC and said he "will commit to read these. We always appreciate the feedback, we love viewer feedback."
CNBC host Larry Kudlow believes the Keystone XL pipeline will be good for wildlife because animals will "snuggle" underneath it for warmth, even though the Interior Department found Keystone XL would have "permanent impacts" on wildlife, including threats to several endangered species.
As fossil fuel advocates become increasingly worried that President Barack Obama won't approve Keystone XL, they are resorting to fallacious arguments to purport benefits of the pipeline. On Monday night's The Kudlow Report, Larry Kudlow declared that wildlife will benefit from Keystone XL, dismissing a letter from the Interior Department warning of the dangers it would pose to wildlife. Despite the threats to several endangered species, Kudlow believes that animals would "like to snuggle under the pipeline" for "warmth." Rayola Dougher, senior economic advisor for the American Petroleum Institute, agreed, claiming "animals like the Alaskan crude oil pipeline quite a bit."
Strangely, "animals cuddling for warmth" is absent from the Interior Department's review of the pipeline's wildlife impacts. The Department outlined many ways the pipeline would "wreak havoc" on plants and animals around the prospective route, including "wildlife collisions and electrocutions with power lines." The agency reported that Keystone XL would cause habitat loss and species displacements, resulting in "permanent impacts" on wildlife.
CNBC has rolled out a week of climate change programming. The special coverage comes after a Media Matters report finding that the majority of CNBC's climate reporting in the first half of 2013 was misleading, leading over 28,000 people to call for improved coverage in a petition organized by the advocacy groups Forecast the Facts and Environmental Action.
On Monday, CNBC host Carolin Roth reported on "CNBC's special week of climate coverage" on her daily news show Worldwide Exchange. Tuesday, Roth again mentioned the "special week on climate change" during a segment on shale gas. On the show, Emily Wurth from Food and Water Watch asserted that "we know that all climate scientists tell us that we need to keep fossil fuels in the ground and we can't drill for every last drop of oil and gas."
However, this special programming has so far been limited to Worldwide Exchange, while CNBC's worst offenders are still misleading their audience on climate change.
A CNBC reporter is under fire for using the phrase "chink in the armor" during a Tuesday discussion of Wendi Deng's pending divorce from News Corp and 21st Century Fox CEO Rupert Murdoch.
The comments by CNBC's Robert Frank drew a critical response from the Asian American Journalists Association, which condemned the statements as "offensive" and "inappropriate."
Discussing whether Deng's new lawyer might be able to gain her a share of the Murdoch family trusts during the divorce case, Frank stated on CNBC's Power Lunch: "I wonder, you know, Peter, what do you think the chink in the armor here might be? That's what [Deng's lawyer] is so good at, is finding a chink in the pre-nups and all these trusts. What do you think they may be looking for to get more out of this divorce?"
Deng is a Chinese-born American citizen. She and Rubert Murdoch married in 1999 and have two children together. In June, Rupert Murdoch filed for divorce.
Contacted by Media Matters, Bobby Caina Calvan, media watch chair for the Asian American Journalists Association, said after reviewing the video that Frank used "an unfortunate phrasing and people should know better in this day and age that a phrase like that, that I'm not going to repeat, is offensive to many of us."
Acknowledging that the statement may have been "spoken innocently" and could have been part of an "off-the-cuff question," Calvan nonetheless added that "we would like CNBC and Mr. Frank to realize that the words uttered on air today about an Asian-American in the news were inappropriate in any context." He further stated that the "phrase shouldn't have been used, it is a no-brainer."
Reached for comment, a CNBC spokesman said any offensive connotation was "totally unintentional," declining to offer any additional explanation.
Calvan said AAJA has reached out to CNBC and was willing to help the network identify "words that many of us feel are offensive."
Climate change deniers should not be given a place in business coverage at a time when industries from agriculture to insurance are making real financial decisions dealing with its impact, according to some of the nation's top business journalists.
Last month Media Matters reported that more than half of the climate change segments on CNBC this year cast doubt on man-made climate change. That network's coverage drew criticism from top business journalists who said such coverage does not serve their viewers.
"It doesn't seem to me at this point to be a point of serious controversy within the corporate establishment," said Paul Barrett a Bloomberg BusinessWeek reporter (Bloomberg BusinessWeek's sister company Bloomberg News is a CNBC competitor). "The insurance industry, which is a key barometer of these things, has reached the conclusion that whatever your politics are on this, the costs of extreme weather are so great and the patterns over the last couple of decades are so distinct that the corporate establishment absolutely must recognize these risks."
Barrett added, "It's past the point of letting ideology shape the dollars-and-cents calculations that businesses are already making, it is not a question of whether business should do this, business is doing this."
Michael Hiltzik, a veteran Los Angeles Times business columnist, agreed.
"I accept the evidence of climate change," he said. "I don't think I've ever run into a legitimate business leader or business owner in the course of my reporting who doesn't. I think, for the most part, it is settled science and the debate is really over what to do about it."
Hiltzik and others stressed that in business reporting, information is so vital to those running large and small companies that facts have to be on point and disregard political calculations.
"There is no percentage in denying it, there's no point. You can't hold back the tide," Hiltzik said. "It seems to me that denial is basically a political position, it's not a practical position, especially for a business that is in an industry that is going to be impacted by climate change."
With climate scientists in agreement that climate change is occurring and being triggered by human activity, major companies are acknowledging and evaluating the impact of that change on their businesses. Top consulting groups have pointed out that climate change is a major risk to insurance companies, and a 2011 survey found that most investors now consider climate change consequences across their organization's entire investment portfolio.
In spite of this emerging consensus among business leaders that climate change is a real concern for their companies, Media Matters found that 24 of the 47 substantial mentions or segments on climate change in 2013 on CNBC, or about 51 percent, cast doubt on whether man-made climate change even existed. Prominent CNBC figures have claimed that climate change is simple "a scam analysis" by "high priests." More than 14,000 people have signed Forecast The Facts' petition calling urging CNBC's executives to stop their network from promoting climate change denial.
Climate change is "just kind of a scam analysis" by "high priests," according to some at CNBC. Rhetoric such as this is not uncommon at the cable business channel, as a new Media Matters report finds that the majority of its coverage of climate change casts doubt on the science behind it.
Watch as CNBC hosts and contributors attempt to counter 97 percent of climate scientists:
So who are these CNBC figures?
Joe Kernen, the co-anchor of Squawk Box, was the most vocal CNBC figure on climate change in 2013, frequently pointing to cold weather to suggest that global warming is not occurring. Kernen has long pushed climate science misinformation. In a 2007 segment, he cited the "The Great Global Warming Swindle," a movie that promoted discredited claims, to criticize singer Sheryl Crow and "An Inconvenient Truth" producer Laurie David for speaking to college students about climate change. In 2011, Kernen co-authored a book titled Your Teacher Said What?!: Trying To Raise a Fifth Grade Capitalist in Obama's America that compared climate scientists to "high priests" whose work should not be trusted.
The majority of CNBC's coverage in the first half of 2013 cast doubt on whether manmade climate change exists. However, denial is not prudent for the business professionals viewing CNBC, who can reduce risk and increase profits by analyzing how climate change is impacting their industries.
The research consistently cited by media figures to support cutting government spending has recently been invalidated, raising questions about how mainstream coverage of economic policy promoted incorrect data.
In January 2010, economists Carmen Reinhart and Ken Rogoff released a study that suggested when countries reach debt levels of 90 percent relative to GDP, economic growth would be compromised. Conservatives in politics and media alike repeatedly cited the figure in discussions about the economy.
A study released on April 16, however, found that the conclusions reached by Reinhart and Rogoff were based on data that was riddled with errors. Reinhart and Rogoff's response to the critique -- in which they maintain they never implied that rising debt caused lower growth, just that the two were associated -- shows that media's handling of the figure was wrong all along.
These new developments show that media consistently used an apparently incorrect figure for the past few years to call for austerity measures. Here's a look back at how major cable networks cited the figure in its coverage of the budget and economic policy:
Video by Alan Pyke.
In light of news that the economy declined in the fourth quarter of 2012, media outlets have a responsibility to refocus their coverage of the economy, which has largely ignored the issue of economic growth and instead highlighted secondary concerns.
A January 30 report by the Bureau of Economic Analysis highlighted a grim reality - in the fourth quarter of 2012, the economy contracted by 0.1 percent. Media outlets have been rightfully promoting the figure, which is in stark contrast to their recent approach in covering the problem of stagnant economic growth.
A Media Matters report analyzing television news coverage of the debt ceiling found that the topic of economic growth was largely absent from discussions. In fact, of the 273 segments analyzed, only 33 even mentioned that growth should be a priority of any fiscal policy.
Economists, however, have strongly promoted growth as a means of reducing the deficit. Throughout the debt ceiling debate, many attempted to argue that economic expansion was far more important than worrying about short-term deficit reduction. Since the media ignored the topic of growth and rarely hosted economists as part of discussions, their voices went largely unheard.
In light of this economic contraction, economists are taking the opportunity to re-inject growth and jobs back into public debate. The Economic Policy Institute released the following statement:
The Bureau of Economic Analysis reported today that the U.S. economy contracted at a 0.1 percent annualized rate in the last quarter of 2012. While this quarter's contraction likely does not signal a return to recession (it was driven by decelerating inventory investments and a very large reduction in defense spending, which are not likely to be repeated in coming quarters), the economy had grown at an average rate of just 2.1 percent for the first three quarters of 2012, which is not fast enough to lead to rapid improvements in the nation's job situation. Today's data emphasizes the need to reorient the policy debate back to growth and jobs and away from rapid fiscal contraction.
Economists have long realized that growth is far more important than what the media has been focusing on, namely deficit and debt reduction. With this clear indication that economic growth is in fact a pressing concern, will the media shift its focus to acknowledge this reality?