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:
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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:
Fox News often promotes myths about student loan debt in the United States, misinforming about everything from the lack of protections borrowers receive, to the unsubtantiated claim that student loans drive up college costs, to the myth that struggling borrowers are taking a government handout. As the two-year anniversary of student debt surpassing $1 trillion takes place this week, here is a sample of the network's past student loan misinformation.
The oil-industry funded front group for Koch Industries, Americans for Prosperity, has a Buzzfeed list featuring animated gifs of the "Top 10 Ways To Celebrate Earth Day: For Conservatives." Media Matters has gathered all the ways that anti-conservation "conservatives" have truly decided to celebrate Earth Day this year:
Fox News celebrated Earth Day by hosting Fox Business' John Stossel who is "cheering for fossil fuels" that were responsible for dozens of disasters last year. Forbes contributor and oil and gas industry consultant David Blackmon caught on to the trend, writing an op-ed glorifying the fossil fuel industry titled "Be Thankful On Earth Day For Oil & Gas."
Earth Day happens to lie on the same day as Vladimir Lenin's birthday, so it must be a communist plot, according to conservative blogger Erick Erickson. Erickson filled in for Rush Limbaugh on his radio show on Earth Day by ranting about the connections between environmentalism and communism.
The United States (and globe) has been warming since the first Earth Day -- but that didn't prevent snow-trollers from emerging once again to cast doubt on global warming. On April 22, climate "skeptic" favorite Ryan Maue tweeted at conservative blogger Erick Erickson: "Remind folks on Earth Day... to not put away their snow shovels until July 4th." Erickson later fulfilled Maue's request as a guest host for on The Rush Limbaugh Show.
Jim Treacher, a reporter for the conservative news site Daily Caller, joked that he would celebrate Earth Day by burning "dangerous tires before they can pollute the planet," mocking NASA's Twitter campaign asking the public to take a "#GlobalSelfie" for Earth Day.
Fox News frequent Marc Morano hyped a piece by Roy Spencer that equated climate science to a "religion" -- one of the most prominent ways conservatives erode trust in scientists according to a study by the Yale Project on Climate Communications. Spencer wrote, in honor of Earth Day:
As in other religions, most Earth worshipers are more or less hypocritical. Spend a day being "good", spend the rest of the year failing.
I mostly find Earth Day just plain annoying for the rank hypocrisy on display. A state-sponsored religious day of worship, along with all of the 1st Amendment-violating regulations to codify it.
Fox Business host Lou Dobbs and an all-white panel used proposed changes to federal sentencing guidelines to accuse President Obama of trying to "accentuate the idea that America is a racist society."
The panelists were discussing new rules proposed by Attorney General Eric Holder that would allow more non-violent offenders convicted of drug laws -- which disproportionately sent black offenders to prison for long sentences -- eligible for presidential clemency. The panel suggested that the administration's acknowledgement of racial disparities proved the "race industry's" success in making the country look racist.
In 2010, Congress passed and President Obama signed into law the Fair Sentencing Act of 2010 to reduce the federal mandatory minimum sentencing disparities between those convicted of powdered cocaine possession versus crack cocaine possession. As the Washington Post noted, prior to the law's passage, "those arrested for crack offenses -- mostly young, African American men--faced far harsher penalties than the white and Hispanic suspects most often caught with powder cocaine." In 2013, President Obama commuted sentences for eight individuals who were convicted of non-violent crack cocaine offenses under the old sentencing guidelines.
On April 21, Holder announced that Obama "wants to consider additional clemency applications, to restore a degree of justice, fairness, and proportionality for deserving individuals who do not pose a threat to public safety." The new effort would focus on prisoners serving longer sentences than they would if they were arrested under current law.
Dobbs' panel of experts on the whether Obama and Holder were accentuating racial tensions included National Review columnist John Fund and City Journal contributing editor Heather Mac Donald, a roundtable with a history of racially-charged remarks. In March, Mac Donald dismissed research finding black students were more harshly punished than their white counterparts by claiming it "common sense that black students are more likely to be disruptive" than whites. Earlier this month, Mac Donald doubled down on her remarks, explaining that disproportionate school suspensions for black students stemmed from their "lack of self-discipline." Dobbs himself has accused Obama of "fomenting unrest" to incite racism and accused the Department of Justice of doing the same in the George Zimmerman case.
Climate "skeptics" have latched on to a myth that scientists predicted global cooling in the 1970s. However, as even a Fox News anchor pointed out in 2006, there was never a consensus on cooling in the 1970s the same way there currently is on global warming -- in fact, the majority of the scientific literature at the time was predicting warming. Yet that hasn't stopped Fox from regurgitating this myth ad nauseum:
While some on Fox News have claimed that "global cooling was the consensus" in the 1970s to dismiss the current climate science consensus in its entirety, a realistic examination of the scientific literature shows the opposite is true. In 2006, the American Meteorological Society (AMS) took a look at published papers from the 1970s and found that a consensus around global warming -- not cooling -- was beginning to emerge. Of 71 peer reviewed studies on climate change from 1965 to 1979, only seven articles predicted global cooling -- less than ten percent -- while well over half (44 studies) predicted global warming. Even 40 years ago, predictions of global cooling were only on the fringe of climate science.
There were indeed a couple of magazine articles published in that era that overhyped theories of "global cooling," but they were cherry-picking the science. For instance, Newsweek ran a nine-paragraph, back-page article titled "The Cooling World" in 1975 and Time magazine ran an article titled "Another Ice Age?" in 1974. Despite these magazine articles' infamy among climate "skeptics," they never made the cover as Fox News or internet hoaxes would have you believe.
If there was a global cooling "scare," it was more of a media wrongdoing than a failure of scientists.
Time's Bryan Walsh accurately summarized the situation:
The reality is that scientists in the 1970s were just beginning to understand how climate change and aerosol pollution might impact global temperatures. Add in the media-hype cycle -- which was true then as it is now -- and you have some coverage that turned out to be wrong. But thanks to the Internet, those stories stay undead, recycled by notorious climate skeptics like George Will. Pay no attention to the Photoshop. It's the science we should heed -- and the science says man-made climate change is real and very, very worrying.
The video in this report was created by Coleman Lowndes and John Kerr with voiceover by Todd Gregory.
Fox Business personalities seized on reports of an oil spill in the Gulf of Mexico to push for approval of Keystone XL, ignoring the fact that the pipeline could lead to increased risk of spills near the Gulf Coast.
On March 23, Reuters reported that cleanup crews had quarantined a portion of the heavily trafficked Houston Ship Channel in response to a significant oil spill. The spill, estimated to be roughly 4,000 barrels (or 168,000 gallons), began after a tanker vessel carrying heavy fuel oil collided with a cargo ship in Galveston Bay, an estuary connected to the Gulf of Mexico.
On the March 24 edition of Fox Business' Varney & Co., guest host Charles Payne and contributor Tracy Byrnes discussed the impact that the oil spill would have as "an impediment to growing out our fossil fuel industry" by providing ammunition for environmentalists. Byrnes then pivoted, claiming that the Galveston Bay oil spill was an example of why the Keystone XL oil pipeline project should be approved.
PAYNE: Anytime we hear these kind of things, it feels like another impediment to growing out our fossil fuel industry, another thing for environmentalists to rally around, although we know accidents are bound to happen.
BYRNES: You and Sandra [Smith] said it last hour, just do the Keystone Pipeline already, create all these jobs. Enough of the nonsense, these are all distractions, that's all they are.
Neither personality addressed the fact that the Keystone XL pipeline is specifically designed to transport heavy crude to refineries and export-bound oil tankers on the Gulf Coast, precisely the scenario that could lead to more spills like the one unfolding in Galveston Bay. The problem of increased water traffic is not unknown for oil sands pipelines. In December 2013, the Associated Press reported that a planned pipeline transporting Alberta oil sands to Vancouver, British Columbia would increase local tanker traffic "nearly sevenfold."
Furthermore, Payne and Byrnes' argument in favor of building the pipeline relied on debunked claims of job creation stemming from the Keystone XL project.
Fox News has shown before that it will use any and all opportunities to promote its fossil fuel agenda and the Keystone XL proposal. The network's latest advocacy for fossil fuels comes on the 25th anniversary of the Exxon Valdez oil spill, the most environmentally devastating oil tanker spill in American history.
In recent months, conservative media figures have undermined efforts by labor groups to organize across the United States, demonizing labor unions in the process. These anti-union attacks are largely reliant on myths alleging negative side-effects of union participation.
Fox News hosts are attacking Apple for defending its green energy measures against right-wing activists. However, Apple is simply the latest business to realize the strategic value of sustainability -- a list that includes Fox's own parent company.
On Friday, the right-wing National Center for Public Policy Research urged Apple CEO Tim Cook at a shareholder meeting to pledge to end all environmental initiatives that didn't lead to a return on investment (ROI), complaining that Apple was concerned with the "chimera" of "so-called climate change." Cook responded that Apple's environmental efforts make economic sense, and that those who want Apple to blindly pursue profit regardless of societal impact should "[g]et out of this stock." Cook added, "When we work on making our devices accessibleby the blind, I don't consider the bloody ROI."
Cook's righteous indignation didn't sit well with Fox News and its sister network Fox Business, which accused him of putting "politics before profits" and "ideology ahead of the shareholders." Fox News host Sean Hannity even announced that he's going to drop his stock after Cook's announcement.
Hannity's bizarro version of the fossil fuel divestment movement would have to extend to Fox News' parent company 21st Century Fox as well. Chairman Rupert Murdoch has trumpeted FOX's efforts to "become carbon neutral" and the corporation touts sustainability efforts at Fox News and Fox Business.
Sustainability is not only smart public relations, but also key in long-term planning for businesses according to business leaders such as McKinsey and Co. A recent report by the investor group Ceres found that clean energy investments must reach $1 trillion a year (a "Clean Trillion") in order to have an 80 percent chance of avoiding global warming of more than two degrees Celsius (3.6 degrees Fahrenheit) -- a measure deemed necessary by international governments at the Copenhagen climate conference to avoid the most catastrophic impacts of climate change. However, without greater commitments to addressing climate change, we face the potential of 4 degrees Celsius (7.2 degrees Fahrenheit) warming, which would severely disrupt global supply chains including food stocks. That is one reason why companies such as Apple are recognizing the risks climate change poses to their businesses and turning toward cleaner sources of energy.
This is not the first time Fox News has politicized voluntary corporate social responsibility measures. Earlier this month, Fox News criticized CVS for announcing it would stop selling cigarettes, asking if it was potentially illegal for the pharmacy chain to do so.
Conservative media are latching on to the climate change denial of Patrick Moore, who has masqueraded as a co-founder of Greenpeace. But Moore has been a spokesman for nuclear power and fossil fuel-intensive industries for more than 20 years, and his denial of climate change -- without any expertise in the matter -- is nothing new.