A flagship report found that acting on climate change and improving the economy go hand in hand, which was reported by business media outlets across the globe. But three prominent outliers left their audiences in the dark: CNBC, Fox Business, and The Wall Street Journal.*
On September 16, many major business media outlets from Fortune Magazine to BusinessWeek reported on a recent analysis finding that the next 15 years are essential for acting on climate change, and that it is possible to do so while simultaneously growing the global economy. The report, titled "The New Climate Economy" and carried out by the Global Commission on the Economy and Climate, refutes the "false dilemma" between economic growth and climate change mitigation -- an important finding for businesses that want to thrive in the decades ahead. From Reuters:
Investments to help fight climate change can also spur economic growth, rather than slow it as widely feared, but time is running short for a trillion-dollar shift to transform cities and energy use, an international report said on Tuesday.
Yet the report was ignored by three prominent business media outlets -- a disservice to their business audiences who deserve to know the economic risks of global warming. The outlets that ignored the findings of the "New Climate Economy" report may not come as a surprise: CNBC, Fox Business, and The Wall Street Journal all have a sordid history with reporting on climate change.
When the "Risky Business" report was released earlier this year -- another report detailing the economic costs of climate change inaction -- CNBC was caught soliciting a writer to talk about "global warming being a hoax" to rebut the report's findings. The network's on-air coverage of "Risky Business" featured Squawk Box co-host Joe Kernen criticizing the acceptance of global warming as "Orwellian groupthink." Media Matters analyses found that CNBC misled their audience on global warming in the majority of their reporting on the topic in 2013.
Fox Business also regularly offers demonstrably false reporting on global warming. Co-hosts have often claimed that global warming is over, or even that we are in a period of global cooling. When the Risky Business report was released, Fox Business mocked its findings of heat-related mortalities and dismissed the report entirely as using "scare tactics."
Similarly, Wall Street Journal dismissed the findings of the Risky Business report, with its editorial board calling one of its authors' suggestions for a carbon tax as economically harmful as the 2008 financial crisis. The Journal has downplayed and dismissed the impacts of climate change and other environmental threats for decades, and gives a frequent platform to "skeptics" that urge inaction on climate change and dismiss the basic science behind the consensus.
The New Climate Economy was heralded by political leaders around the world advocating a transformation in the global economy. By ignoring it, these outlets are showing that their priorities are at odds with businesses that want to prosper in a changing climate.
*Based on a search of internal video archives from September 15 to 12 p.m. September 17 for "climate" for Fox Business and CNBC, and a Factiva search for "climate" for Wall Street Journal.
When BP's Deepwater Horizon oil rig exploded in 2010, Fox News pundits rushed to the corporation's defense with excuses ranging from pitiful to conspiratorial. But now the ruling is out, exposing the falsities of Fox's defense: BP was to blame for the worst oil spill in U.S. history.
Fox News pundits pulled out all the stops to deflect blame from BP when the Deepwater Horizon oil rig in the Gulf of Mexico exploded in 2010, killing 11 workers and causing devastating environmental impacts. They accused environmentalists and the government for "forcing" the company to drill further from shore and touted conspiracy theories. The network berated the Obama administration for "villainiz[ing]" and "demonizing" the corporation and compared Congressional hearings on the disaster to "Soviet-style" trials and "Inca ritual slaughter":
A federal court, however, ruled on September 4 that BP was largely responsible for the disaster -- not the scapegoats that Fox News tried to pin the blame on.
Watch the difference between Fox News' spurious defense and the facts:
A federal judge assigned 67 percent of the blame to BP, concluding that the corporation acted in "gross negligence" and "willful misconduct." The Wall Street Journal reported on several instances where the court found that BP forewent safety measures in the name of profit:
Struggling with a dangerously unstable oil well in April 2010, BP chose to drill an additional 100 feet into a fragile rock formation thousands of feet beneath the Gulf of Mexico.
That decision set in motion a series of failures that led to the deadly Deepwater Horizon catastrophe and the worst offshore oil spill in U.S. history, a federal judge ruled Thursday.
"BP's decision to drill the final 100 feet was the initial link in a chain that concluded with the blowout, explosion and oil spill," Judge Carl Barbier wrote. The decision "was dangerous," he added, and "motivated by profit."
Video created by Coleman Lowndes.
In The Wall Street Journal, Rep. Paul Ryan (R-WI) disavowed the offensive narrative pushed by conservative media which labels needy Americans as "takers" versus more economically-prosperous "makers." However, Ryan's proposed anti-poverty policies still rely on the right-wing media myth that blames poverty on poor individuals' personal life choices.
Fox News pundits questioned President Obama's engagement in world affairs following a press conference in which the president announced historic investments in Africa and took questions from journalists on a wide range of pressing international and domestic issues.
From the August 6 edition of Fox Business' Lou Dobbs Tonight:
Loading the player reg...
Fox News and Fox Business have continued to host former CIA officer and CBS News analyst Michael Scheuer after he endorsed the assassination of President Obama. Scheuer's latest appearance on the August 1 edition of Fox & Friends suggests his profile on the networks may have escalated in recent months.
Scheuer has a long history of extreme rhetoric and arguably reached his most fevered pitch when he gave his stamp of approval to the idea that Obama, as well as British Prime Minister David Cameron, should be assassinated. Scheuer concluded a December 2013 column with advice for the constituents of Cameron and Obama (emphasis added):
As they head further down the road of losing wars and wrecking Anglo-American liberties, Messrs Obama and Cameron and their supporters in all parties would do well to read the words of the great 17th century English republican Algernon Sidney, a man who was revered on both sides of the Atlantic, who greatly influenced America's founders, and who was executed by the British Crown for what it described as sedition. "There must therefore be a right," Sidney wrote,
"of proceeding judicially or extra-judicially against all persons who transgress the laws; or else those laws, and the societies that should subsist by them, cannot stand; and the ends for which governments are constituted, together with the governments themselves, must be overthrown. ... If he [a political leader] be justly accounted an enemy of all, who injures all; he above all must be the publick enemy of a nation, who by usurping power over them, does the greatest and most publick injury that a people can suffer. For which reason, by an established law among the most virtuous nations, every man might kill a tyrant; and no names are recorded in history with more honor, than of those who did it."
Just 10 days after the column was published, Scheuer appeared on Fox Business' Lou Dobbs Tonight to accuse Hillary Clinton of "effectively murdering" the Americans who died during the 2012 attacks on U.S. diplomatic facilities in Benghazi, Libya. According to a Media Matters search, Scheuer has appeared on Fox Business at least twice since, on Lou Dobbs Tonight June 9 and on Money July 18.
Fox News Channel -- which hosted Scheuer dozens of times before his validation of attempts to assassinate the president -- has continued to invite Scheuer on in recent months. Fox & Friends Sunday invited the former CIA officer on in June, and after having appeared on the weekday edition of Fox & Friends in February, the show invited him back August 1.
Fox Business host Charles Payne tried to put a negative spin on the news that the unemployment rate fell in June, tweeting that it might be "too good for the stock market."
Economists and business reporters praised the numbers from the July 3 Bureau of Labor Statistics jobs report. That report found an increase in total nonfarm payroll employment of 288,000 in June, with unemployment decreasing to 6.1 percent, the lowest rate since September 2008.
Payne immediately attempted to negatively spin the report, asking in a tweet "is the jobs number too good for the stock market?"
Is the jobs number too good for the stock market...equity futures are drifting lower not sure how to react-- Charles V Payne (@cvpayne) July 3, 2014
The Dow Jones Industrial Average is currently near 17,000. When President Obama took office on January 20, 2009, it was at 8,279.63.
Refusing to act on climate change will be bad for business, according to a major recent report assessing the alarming risks of unchecked global warming on the U.S. economy. But while some top business media outlets recognize global warming as a serious issue for their audience, others are still stuck in denial.
On June 23, the Risky Business Project released a comprehensive analysis of the economic impacts of climate change in the United States. The study found that the current path of "business as usual" -- emitting carbon dioxide and other greenhouse gases responsible for driving catastrophic climate change without restrictions -- will reduce labor productivity of outdoor workers by up to three percent, reduce agricultural yields by up to 70 percent in some regions, and cost up to $507 billion in property damages from sea level rise by 2100. The co-chairs are calling for business to rein in their greenhouse gas emissions to prevent an economic crash on the scale of the 2008 financial crisis or worse.
However, some top U.S. business media outlets are denying that climate change is a problem worth addressing -- a disservice to their business viewers, who have a lot to lose. Here are the good, the bad, and the ugly cases of business media covering Risky Business:
In covering the study's findings, Bloomberg Television, a cable and satellite business news channel, featured an interview with former Treasury Secretary Henry Paulson, one of the report's co-chairs and a Republican. Bloomberg's Erik Schatzer began the interview by stating that "the research [on man-made climate change] is overwhelmingly conclusive," and went on to have a rational discussion about solutions to global warming that businesses can take today. Schatzer noted that Bloomberg Television is a child company of the media organization founded by Michael Bloomberg, another co-chair of Risky Business. Paulson suggested that businesses fully disclose their climate change risks, that they invest in "resilience," and that the nation "take out a national insurance policy" to respond to the impacts of climate change, adding that businesses must advocate for government policies that would allow the nation to "avoid the most adverse outcomes."
Paulson elaborated on "the cost of inaction" alongside former Treasury Secretary under President Bill Clinton, Robert Rubin, in a well-done interview on the June 29 edition of CNN's Fareed Zakaria GPS:
Fox Business's coverage of the Risky Business report ridiculed the impacts of climate change and brushed aside the findings as "scare tactics." On the June 24 edition of Cavuto, Fox Business contributor Lauren Simonetti asserted that the organization is using "scare tactics," going on to entirely dismiss the idea of increasing heat-related mortality, saying "what does that mean -- mortality?"
Conservative media are calling the Environmental Protection Agency's clarification of the Clean Water Act an "unprecedented land grab" that will regulate "nearly every drop of water." However, the proposed revision, which will help protect the drinking water of 117 million Americans, will not add any new categories of waters but will clarify that upstream sources will be protected from pollution.
Business media have been spreading the myth that the Environmental Protection Agency's plan to rein in carbon pollution will harm the American manufacturing industry by increasing electricity prices. But a new report by a group of business leaders found that the manufacturing industry is at far greater economic risk from the extreme weather events that the EPA's clean power plan would help prevent.
When the EPA proposed standards for the carbon pollution driving climate change for existing power plants, several top U.S. business media outlets promoted claims that the rules would harm manufacturers. Reuters published two articles that uncritically repeated utility industry lobbyists' claims that the rules will "destroy jobs" at "manufacturing plants." The Wall Street Journal cited a steel industry spokesman that claimed the rules will "impede the post-recession growth of American manufacturing" without criticism, and the newspaper's editorial board suggested that the rules will "punish" regions that rely on manufacturing. Fox Business' Lou Dobbs Tonight hosted Steve Milloy, a policy director at coal giant Murray Energy, who lambasted the rules, stating: "if you work in manufacturing, do you want to see your job exported to China?"
However, an analysis by Business Forward -- an association of American business leaders focused on sound public policy -- found that extreme weather events will have severe economic impacts on the automotive manufacturing industry in the United States, while any increase in electricity prices as a result of turning to clean power will have minimal costs for the manufacturing industries. The analysis has not been covered* by the prominent business media outlets that promoted claims that the standards would harm manufacturers.
For example, automakers, who represent the nation's largest industrial sector, are extremely vulnerable to disruptions in the global supply chain caused by extreme weather events. The study found that extreme weather events -- many of which are happening more frequently -- can cause an auto assembly plant to shut down at immense costs of $1.25 million or more per hour. Business Forward explained that even when extreme weather events happen on the other side of the globe, they impact manufacturers:
Because supply chains are global, disruptions on the other side of the planet can slow down or shut down an American factory. For example, in October 2011, severe floods in Thailand affected more than 1,000 industrial facilities. Production by consumer electronics manufacturers in the U.S. dropped by one-third.
The carbon standards, by contrast, would cost the automotive industry far less because electricity is a "comparatively small portion" of their total costs. The report found that if electricity costs increased by 6.2 percent by 2020, it would add less than $7 to the cost of producing car that sells on average for $30,000. Overall, this would cost the average auto assembly plant about $1.1 million, or the equivalent of less than an hour of assembly line downtime at a single auto plant each year. The EPA estimates that electricity prices will increase slightly as a result of the standards, but efficiency improvements will lower electric bills by 2025.
Conservatives have responded to the release of Sgt. Bowe Bergdahl by attacking his father, questioning President Obama's sanity and patriotism, and calling for impeachment.
From the June 3 edition of Fox Business' Lou Dobbs Tonight:
Loading the player reg...
One year ago, New York City launched its bike share program to the chagrin of a Wall Street Journal editorial board member who claimed it was a "totalitarian" instrument of "aesthetic torture" that has "appalled" New Yorkers. However, the program has survived conservative attacks on it and proven immensely popular, with nearly 9 million rides in its first year.
Dorothy Rabinowitz, a member of Wall Street Journal's editorial board, made waves last year by railing against the launch of Citi Bike, New York City's bike share program. In a video op-ed on WSJ Live, Rabinowitz derided the "totalitarian"-backed program that has "begrimed" NYC neighborhoods, saying the city is "helpless" to the wishes of its "autocratic" mayor and the bike lobby.
Even after Rabinowitz' argument was mocked on both the Colbert Report and The Daily Show, Rabinowitz stuck to her vendetta, dubbing the bike racks "instruments of aesthetic torture," and her colleagues defended her. She is not alone among conservatives for displaying an irrational hatred of bicyclists. Soon afterward, Fox Business' Melissa Francis called the Citi Bike racks a "nuisance" and an "eyesore," putting it frankly: "I hate these bikes." But they have proven to be the exception rather than the rule.
Rabinowitz claimed that she represented "the majority of [NYC] citizens" who are equally "appalled" by the bike share program, but polling has shown the opposite with even the Wall Street Journal itself dubbing the bike share "popular." Before the program was launched, polls from Quinnipiac University's Polling Institute found that 74 percent of New Yorkers polled agreed the bike rental program was a "good idea." One month after its launch, the same institute found that only 20 percent were opposed to the program, with the majority of every "age, income party, gender and educational group" supporting the program:
Financial analyst and Fox Business contributor Charles Payne, who has been fined by the Securities and Exchange Commission (SEC), been paid to promote now virtually worthless penny stocks, and smeared the poor as "indebted servants" to the government who are too "comfortable" living in poverty, is being rewarded with his own show, the network announced today.
Fox Business said the show, Making Money with Charles Payne, will debut on June 2 in the evening. FBN executive vice president Kevin Magee praised Payne as having "an incredible talent for identifying growth sectors in the markets and we're excited to launch a new show dedicated to helping viewers spot these emerging investment prospects."
That Payne has a talent for identifying growth may be a surprise to someone who followed some of Payne's previous stock advice. After joining Fox in 2007, Payne was compensated to push the prospects of three stocks, as Media Matters documented in July 2013. Payne used his Fox credentials in promotional materials to assure skeptical investors that his advice was trustworthy. The stock of those companies are now virtually worthless:
The practice of compensated stock endorsements is currently prohibited by Fox rules, and resulted in the contract termination of contributor Tobin Smith. Payne responded to inquiries from Media Matters by ducking questions and scrubbing his corporate website of information.
Payne and his company, Wall Street Strategies, have a problematic history related to the proper disclosure of stock recommendations. In 1999, the SEC announced that while not "admitting or denying" wrongdoings, Payne "agreed to pay a civil penalty of $25,000." The SEC alleged of Payne: