Fox News obscured the fact that Republican lawmakers are holding renewal of a terrorism insurance program hostage in order to continue chipping away at financial regulatory reform.
The Terrorism Risk Insurance Act (TRIA), first passed after 9/11 and subsequently renewed by Congress, allows the federal government to aid insurance companies in providing terrorism insurance to businesses. One of the biggest beneficiaries of TRIA are professional sports organizations like the NFL.
If TRIA is not renewed, these organizations could lose terrorism insurance coverage. Thus on the December 15 edition of Fox & Friends First, Fox Business contributor Lauren Simonetti claimed that the Super Bowl may be in danger of cancelation. According to Simonetti, "The reason is Congress," adding "unless this act is reauthorized by the end of the year," the Super Bowl could be canceled:
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?"
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.
A Fox Business correspondent claimed that it was better to forgo nearly $3 million in additional prize money than to pay the roughly $400,000 in taxes due on it, representing a continuation of the baseless Fox News narrative that the rich have unduly high tax burdens.
Professional golfer Phil Mickelson placed second at June's U.S. Open golf tournament. Fox Business correspondent Lauren Simonetti argued on June 19's edition of Fox & Friends First that it may have been better for Mickelson to have lost the tournament and place second, for he would avoid paying nearly $400,000 in additional taxes.
She explained that had Mickelson won the tournament -- and won the $1.44 million first prize -- he would have had to pay an additional $76,000 more in taxes than he paid by placing second and receiving $700,000. Mickelson would have also had to pay an additional $300,000 in taxes on $2.5 million in bonuses paid to him by his sponsors, had he won. She concluded it's better to avoid paying roughly $400,000 in taxes than to win nearly $3 million in after-tax income. Simonetti said this made Mickelson "$400,000 richer."
This conclusion may stem from Fox's zealotry against additional taxes for the rich: the rich, because of their supposed onerous tax burden, need lower taxes in order to continue amassing wealth, or else they may stop working.
The idea that the wealthiest Americans have a disproportionately high tax burden is a fabrication Fox has pushed for years. However, a February 15 New York Times article reported that incomes for top earners rose more than 11 percent during the recovery from the most recent recession, while the rest saw their incomes decline slightly. As Nobel Prize-winning economist Joseph Stiglitz noted in an April 14 New York Times Opinionator blog post, "as the top 1 percent has grown extremely rich, the effective tax rates they pay have markedly decreased." The Center for Tax Justice (CTJ) found that the effective tax rate -- a rate including all federal, state and local taxes paid -- for the wealthiest Americans is not much higher than the effective tax rate for middle class Americans:
In the same report the CTJ found that the precentage of all taxes paid by the wealthy is near the amount of all national income captured by the wealthy.
From this fabrication, Fox has argued that the supposedly high tax burden will make the rich not work or might seek lower taxes in different states. In September 2011, Fox News host Bill O'Reilly equated earnings to achievement and claimed that "if you tax achievement, some of the achievers are going to pack it in." And in September 2010, Fox & Friends co-host Brian Kilmeade argued that high levels of taxation, to the wealthy, "robs you of your ambition and your push and your drive."
However, the rich have not been doing this. As Reuters reported, millionaires in high tax states, such as Mickelson's home state of California, have not left the state for low-tax alternatives. Mickelson himself suggested in January he may quit golf due to California's income taxes, walking back the statement a day later. If the 2013 U.S. Open results are any indication, Mickelson is still playing golf, presumably because after taxes he still earns millions and because he doesn't take financial advice from Fox.
Fox News and Fox Business previously portrayed electric carmaker Tesla Motors as another "failure" of the Obama administration's green energy investments. But since it is now clear that the company is doing well, both networks have developed amnesia about its federal loan, with Tucker Carlson claiming that "they don't take any government subsidies at all."
Tesla recently reiterated its plans to repay a loan granted through the Department of Energy's Advanced Technology Vehicle Manufacturing program ahead of schedule. This followed a series of positive developments, including the company's first quarterly profits and a shining review of the Model S sedan by Consumer Reports. Financial services firm Morgan Stanley recently told Raw Story that "Many funds approach an investment opportunity by first asking: does the company do something better or cheaper than anybody else? Tesla is beginning to convince the market it may do both."
But no matter how Tesla fares in the coming years, it seems likely that Fox News will change its reporting to follow suit. In 2012, Fox News' claim that Tesla was a "failed" company was eventually adopted by the campaign of then-presidential candidate Mitt Romney. Later, Fox News admitted Tesla was a "success", eventually forgetting its federal loan in the process.
Video created by Max Greenberg and John Kerr.
The success of Tesla Motors complicates Fox News' narrative about green energy investments, but the network has a strategy: simply ignore the fact that the company received a federal loan.
Tesla, a leading electric automaker, received a $465 million loan guarantee from the Department of Energy's Advanced Technology Vehicles Manufacturing (ATVM) program in 2010. The company has since become a fixture in car magazines and one of the most conspicuous successes of the Obama administration's green energy policies, recently announcing that it intends to pay back the loan five years ahead of schedule and reporting its first quarterly profits. On the heels of the latter news came word that the notably tough reviewers at Consumer Reports had given the Tesla Model S sedan a 99 out of 100 rating, proclaiming "we've never seen anything quite like the Model S. This car performs better than anything we've ever tested before."
On Friday, Fox News reported the quarter one profits -- "encouraging" -- and the positive review, pronouncing the automaker a "huge success."
One major problem: somehow, Fox News neglected to mention the federal loan guarantee program that helped Tesla obtain vital capital to develop the Model S. By contrast, Fox News has repeatedly used a negative Consumer Reports review of Fisker's hybrid electric Karma sedan as a hook to attack the Obama administration's green loans, without mentioning successes like Tesla or the money that Congress set aside to cover losses, knowing that not every company would succeed.
From the December 14 edition of Fox News' Fox & Friends First:
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Fox News revealed its closing argument against President Obama, which consisted of a falsehood-laden attack on the president's record.
Fox News and The Daily Caller are promoting the baseless charge that the Obama administration illegally ended a pension plan for workers at Delphi, an auto parts maker, because the workers weren't union members.
The Daily Caller alleges that emails it has obtained show that the Obama Treasury Department was the "driving force" behind the decision to end the Delphi pension plan, instead of the independent federal agency that insures pensions, called the Pension Benefit Guaranty Corp. (PBGC). And Fox News has made the same charge. But the emails show nothing of the sort.
The email exchanges come from PBGC employees in 2009, when the government-led rescue of the auto industry was being carried out.
In reality, the emails are so far removed from their context that it's impossible to draw definitive conclusions about them, but the Daily Caller does its best to fill in the blanks by doctoring quotes and ignoring inconvenient information.
Only one of the 16 emails comes from a Treasury Department employee, and it doesn't show pressure to terminate the Delphi pension. In fact, unions aren't mentioned at all in the emails.
Fox has devoted several segments to hyping the cooked-up story. For instance, today, Fox's Lauren Simonetti appeared on Fox & Friends First and claimed that "all along, Treasury and White House officials have claimed that the pension decisions were made by the independent Pension Benefit Guaranty Corporation. Key officials even testified to that under oath. The emails recently obtained by The Daily Caller show that's not the case."
Previously, the Daily Caller reporter who wrote the story, Matthew Boyle, appeared on the August 7 edition of America Live to claim the emails "prove beyond a shadow of a doubt" that the "Obama administration political officials were the ones who ultimately made the decision, coercing the PBGC officials into terminating the pensions of these non-union workers."