Nobel Prize-winning economist Paul Krugman called out the media's disastrous reporting on the employment impact of Obamacare.
On February 4, the nonpartisan Congressional Budget Office (CBO) released its 10-year economic projections, including an estimate of how the Affordable Care Act will impact the job market, an estimate that set off a storm of reaction. The CBO projected that the Affordable Care Act will allow workers to choose to work less hours because they will be able to maintain health insurance coverage outside of employment. Instead of reporting on the CBO's actual findings, media outlets seized on this information to falsely claim that the ACA would cost the economy millions of lost jobs.
Appearing on Comedy Central's The Colbert Report, economist Paul Krugman called the misleading reporting "media malpractice":
In a February 6 New York Times column, Krugman explained that the misreporting of the CBO's projections is part of a "campaign against health reform" that has "grabbed hold of any and every argument it could find against insuring the uninsured, with truth and logic never entering into the matter":
Why was this unhelpful? Because politicians and, I'm sorry to say, all too many news organizations immediately seized on the 2 million number and utterly misrepresented its meaning. For example, Representative Eric Cantor, the House majority leader, quickly posted this on his Twitter account: "Under Obamacare, millions of hardworking Americans will lose their jobs and those who keep them will see their hours and wages reduced."
So was Mr. Cantor being dishonest? Or was he just ignorant of the policy basics and unwilling to actually read the report before trumpeting his misrepresentation of what it said? It doesn't matter -- because even if it was ignorance, it was willful ignorance. Remember, the campaign against health reform has, at every stage, grabbed hold of any and every argument it could find against insuring the uninsured, with truth and logic never entering into the matter.
Think about it. We had the nonexistent death panels. We had false claims that the Affordable Care Act will cause the deficit to balloon. We had supposed horror stories about ordinary Americans facing huge rate increases, stories that collapsed under scrutiny. And now we have a fairly innocuous technical estimate misrepresented as a tale of massive economic damage.
Meanwhile, the reality is that American health reform -- flawed and incomplete though it is -- is making steady progress. No, millions of Americans won't lose their jobs, but tens of millions will gain the security of knowing that they can get and afford the health care they need.
Fox News' Greta Van Susteren pushed the right-wing talking point that regulation is "strangling" small businesses on Sunday, ignoring reports that have repeatedly debunked her theory.
On ABC's This Week with George Stephanopoulos, Van Susteren got into a debate with Nobel Prize-winning economist Paul Krugman over the effect that government regulation has on small businesses and the American job market. Though Krugman pointed out that Van Susteren's assertion is not backed up by the data, Van Susteren refused to give his explanation credence.
VAN SUSTEREN: We're strangling small businesses. I mean, you know everyone -- no one's paying much attention to these small businesses. The regulations that are strangling them, some of them are laughable and silly, but they have a profound impact on the job creators, those who are making jobs. They can't afford to hire people.
KRUGMAN: There's been tons, there's been tons of work on this. And what's holding small business back is not regulations, it's just the fact that they don't have sales.
VAN SUSTEREN: It's not all, it's some of it, some of it.
KRUGMAN: It's not. There's no correlation, looking across, you know which parts of the economy do small businesses complain about regulations and which don't they. There's no correlation between that and actual job creation.
GEORGE STEPHANOPOULOS: Is there one exception perhaps, on the health care, where, firms that are greater than 50 people, have to pay more and that don't you see some firms cutting off at 49?
KRUGMAN: You really -- there might be. but you can't see that in the numbers. The overwhelming fact of the matter--
VAN SUSTEREN: Well If you talk to them, instead of looking at just the numbers, why don't you sit down and talk to these people, lot of them are struggling with this. They don't understand a lot of those things that happen. They don't understand a lot of the things that are happening in Washington. They're very cautious because they see a real dismal economy out there. And that doesn't --
KRUGMAN: If you actually talk to them, that's not what they say.
Despite Van Susteren's claims, Krugman's position has a strong foundation in official economic data as well as less formal anecdotes and survey responses from business owners.
Investment data refutes Susteren's claim that high regulatory environments tend to suppress growth. An Economic Policy Institute (EPI) analysis of the past four economic recoveries found that the slowest growth actually occurred during the deregulatory Bush administration:
The bogus story that New York Times columnist Paul Krugman had filed for bankruptcy appeared on Boston.com, the sister website of The Boston Globe, through a third-party content provider that posts content without editorial approval and provides such content to more than 200 web outlets.
That provider, meanwhile, took the story from an Austrian-based blog without any editorial review or fact-checking of its own, a practice that is becoming more and more common in the Internet content sharing world. The blog has since deleted its post and all posts from the author appear to have been removed from Boston.com.
The false story, which had its roots in a satire by the website Daily Currant, was subsequently picked up by the conservative site Breitbart.com, a move later criticized by Krugman himself and numerous news outlets from The Atlantic to Politico. Breitbart.com has deleted the post, with its author blaming Boston.com, which he says he "trusted" for the story.
But according to Boston.com, they played no role in the creation of that post, an editorial mechanism which troubles some observers.
He said he reached out to financialcontent.com at roughly 9 a.m. EDT today to have the item removed. It was removed at 11:34 a.m. EDT.
"The reason why we partner with them is to provide stock data," Agrella explained Monday, just hours after the item was taken down. "That is why we contract with them. The stories are additional content provided on the side. We have partnered with them for 10 or 12 years."
Financialcontent.com had picked up the item from an Austria-based business blog, Prudent Investor, without any editorial review of its own, according to financialcontent.com CEO Wing Yu.
"We are a technology company, we don't have an editorial desk," Yu explained. "There is an RSS feed that we parse from each content provider. We have categorized [Prudent Investor] as a business content provider and the content is syndicated along with the byline."
YU said Prudent Investor is one of more than 400 content providers that financialcontent.com draws on for news and data, which it then forwards to some 200 news outlets such as Boston.com, as well as others owned by McClatchy, Media News Group and AOL.
The Prudent Investor website is based in Vienna, Austria, and run by Toni Straka, who describes himself on the blog as "an INDEPENDENT Certified Financial Analyst who worked as a financial journalist for 15+ years and now evaluate global market trends."
MSNBC host Joe Scarborough and Nobel-Prize winning economist Paul Krugman will appear on PBS' Charlie Rose on March 4, following weeks of their high-profile dispute over the proper policy response to two competing problems: historically high unemployment and historically high public debt.
After Scarborough hosted Krugman on the January 28 edition of Morning Joe, he wrote an op-ed for Politico that characterized Krugman as a solitary dovish voice on near-term debt. Over the ensuing weeks, the two sniped at one another, with Scarborough continuing his effort to marginalize Krugman, misrepresenting Krugman's colleagues in the process.
Both economic data and the consensus among economists support Krugman's side of the debate. Still, Scarborough has labeled the economist a 'debt denier,' and deflected fact-based criticism with jokes about "bloggers eating Cheetos" and "skewed graphs liberals make up on their mom's PowerPoint." Given that their debate has at times produced more heat than light, here are five things that host Charlie Rose must take care to include in his show tonight:
1. Debt Levels Are Stable For The Coming Decade.
The Congressional Budget Office says that the ratio of public debt to GDP will hold steady through the coming ten years, even without changes to current law:
The stable near-term debt outlook undermines the common claim of a "debt crisis" that requires immediate austerity.
2. Austerity Is Already Placing An Enormous Drag On Economic Growth.
Government consumption and investment has decreased nearly 5 percent over the past two years. Cuts have shrunk the public sector by a net 712,000 jobs not since the recession began, but since it ended in mid-2009. And the macroeconomic data are clear: the government's declining consumption is a drag on GDP growth.
3. A Wide Range Of Economists Agree With Krugman That Short-Term Deficits Are Not A Priority With Economic Output Lagging.
Scarborough's January op-ed in Politico claimed that "almost all mainstream economists" disagree with Krugman; this is not true, and an accurate representation of expert opinion would improve the conversation.
As Media Matters has shown, it is not just center and center-left economists like Richard Koo, Mark Thoma, Brad DeLong, Jared Bernstein, Dean Baker, Henry Aaron, Alan Blinder and Larry Summers who agree with Krugman that short-term deficit reduction is a bad idea with economic output so far behind its potential. It's also John Makin of the conservative American Enterprise Institute, The Wall Street Journal's Rex Nutting, former Reagan budget adviser Bruce Bartlett, and others who Scarborough might count as natural allies. Makin's prescription for how we ought to run large deficits is anathema to progressives, of course, but economists across the spectrum agree that we can and should float just a few more years of large deficits, in order to grow the economy.
4. Economists Say The Best Way To Solve Long-Term Debt Issues Is To Invest In Growth Now, While Borrowing Is Cheap.
Economic growth is the key to managing the debt. It is unusually cheap for the government to borrow money right now to finance such growth -- in some cases interest rates are negative, meaning the markets are basically paying us to borrow from them. The CBO finds economic output is $1 trillion behind what it should be, which is why so many economists take Krugman's side in calling for fiscal stimulus. The first CBO report to account for the "fiscal cliff" tax deal reinforced this position, as Nutting wrote in The Wall Street Journal's MarketWatch: "the CBO gently hinted that the government should run higher deficits for the next four years to boost economic growth and job creation, and then start reducing the deficit in earnest in 2017 when the economy is fully healed." Any conversation about fiscal policy that fails to note these facts is inherently misrepresentative.
5. President Obama And Congress Have Already Enacted $2.4 Trillion In Deficit Reduction Since The Start Of FY2011.
Although Scarborough blamed "a Keynesian spending spree" for a slowdown in economic growth late last year, the reality is that the President and Congress have passed laws that reduce deficits by approximately $2,400,000,000,000 over the 10-year budget window.
The media frequently fail to acknowledge existing deficit reduction, but it is real and it is important to the ongoing conversation about fiscal policy.
Media outlets have focused heavily on the topics of deficits and debt, while largely ignoring economic growth during their coverage of the debt ceiling debate. However, experts agree that the need for growth is more pressing than problems of debt, and that growth itself can be a deficit reduction tactic.
A Media Matters study of television coverage over the past three weeks found that while pundits and guests focused heavily on discussing the debt ceiling, the topic of economic growth was sorely lacking. Of the total 273 segments analyzed, only 33 mentioned economic growth.
Instead of touching upon economic growth, Media Matters found that guests and hosts spent most of their discussions focusing on other issues, such as the role of entitlement spending and political leverage in negotiations between parties.
While the debt ceiling issue is certainly important - and failing to raise it would have a negative impact on the overall economy - many economists have eschewed the focus on debt, arguing instead that economic growth should be the primary concern.
Nobel Prize-winning economist Paul Krugman has long argued that the media and political focus on debt is misguided, and that recent increases in debt were necessary to prevent the economy from entering another recession. Jared Bernstein, senior fellow at the Center on Budget and Policy Priorities, further argues that the focus on deficits and debt distracts policymakers from the very real problem of sustained high unemployment and a weak economy.
In fact, Krugman echoed Bernstein's point on the January 28 edition of MSNBC's Morning Joe:
From the October 7 edition of ABC's This Week:
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From the October 7 edition of ABC's This Week With George Stephanopoulos:
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Fox News is distorting President Obama's economic agenda by pushing the straw-man argument that taxing the entirety of millionaires' incomes would fund the government for less than three months. In fact, Obama has proposed no such thing, and this Republican talking point obscures the billions in revenue that would be generated from letting the Bush tax cuts expire for wealthy households.
Fox has attacked the economic recovery under President Obama by claiming that if Obama just adopted the policies of former President Ronald Reagan, there would be a stronger recovery. But as economists have pointed out, the Reagan recession ended not because of Reagan's fiscal policies but because the Federal Reserve drastically cut interest rates. Because interest rates are already at zero, such a rate cut is not a possible option now.
Nobel-prize winning economist Paul Krugman rebutted the right-wing talking point claiming the U.S. has the highest corporate tax rate in the world. He's right: Studies have concluded that U.S. rates are similar to other countries, and the Congressional Research Service has found that a reduction in corporate taxes would have a limited impact on growth.
From the April 3 edition of ABC's This Week:
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From the January 23 edition of ABC News' This Week:
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New York Times columnist and Nobel Prize-winning economist Paul Krugman takes the media to the woodshed:
I see that the Washington Post editorial board is shocked, shocked to discover that the incoming Republicans aren't serious about deficit reduction. Who could have suspected?
I was going to be snarky all the way here, but actually let's be serious: the gullibility of much of the media establishment on all this amounts to journalistic malpractice.
Republicans have, after all, been the party of fiscal irresponsibility since 1980; the GW Bush administration confirmed, if anyone was in doubt, that unfunded tax cuts are now in the party's DNA.
Why the blindness? I suspect a lot of it had to do with the desire to seem balanced. Journalists felt that they had to find Republican fiscal heroes, just to show how even-handed and open-minded they were. To say that the whole deficit thing was a political ploy, with no substance behind it, sounded shrill.
The truth often does.
Another problem, of course, is that many reporters simply believe conservatives who claim to care about deficits without assessing whether their policy positions are consistent with those claims. It's easier and fits into absurd -- and, as Krugman notes, false -- stereotypes.
Krugman makes another point worth highlighting in desperate hope that his fellow journalists start paying attention:
Then along comes a Democratic president who presides over all of two years of deficits in the immediate aftermath of a severe financial crisis – which is a time when you're actually supposed to run deficits. Republicans begin inveighing against the evils of red ink – and, incredibly, get taken at face value.
In his column in today's New York Times, Nobel Laureate Paul Krugman says that Fox News "no longer feels the need to make any effort to keep up appearances" that the network is "fair and balanced."
Krugman discusses Fox's employment of "every major contender for the 2012 Republican presidential nomination who isn't currently holding office and isn't named Mitt Romney"; the network's $1 million donations to the Republican Governors Association and the U.S. Chamber of Commerce; how the network is "anointing" conservative Republican candidates like Christine O'Donnell; how "the Tea Party movement owes much of its rise to enthusiastic Fox coverage"; and the consequences of conservative criticism of Fox.
From Krugman's column:
As Politico recently pointed out, every major contender for the 2012 Republican presidential nomination who isn't currently holding office and isn't named Mitt Romney is now a paid contributor to Fox News. Now, media moguls have often promoted the careers and campaigns of politicians they believe will serve their interests. But directly cutting checks to political favorites takes it to a whole new level of blatancy.
Nobody who was paying attention has ever doubted that Fox is, in reality, a part of the Republican political machine; but the network -- with its Orwellian slogan, "fair and balanced" -- has always denied the obvious. Officially, it still does. But by hiring those G.O.P. candidates, while at the same time making million-dollar contributions to the Republican Governors Association and the rabidly anti-Obama United States Chamber of Commerce, Rupert Murdoch's News Corporation, which owns Fox, is signaling that it no longer feels the need to make any effort to keep up appearances.
Something else has changed, too: increasingly, Fox News has gone from merely supporting Republican candidates to anointing them. Christine O'Donnell, the upset winner of the G.O.P. Senate primary in Delaware, is often described as the Tea Party candidate, but given the publicity the network gave her, she could equally well be described as the Fox News candidate. Anyway, there's not much difference: the Tea Party movement owes much of its rise to enthusiastic Fox coverage.
As the Republican political analyst David Frum put it, "Republicans originally thought that Fox worked for us, and now we are discovering we work for Fox" -- literally, in the case of all those non-Mitt-Romney presidential hopefuls. It was days later, by the way, that Mr. Frum was fired by the American Enterprise Institute. Conservatives criticize Fox at their peril.
Washington Post media critic Howard Kurtz profiles New York Times columnist and Nobel Prize-winning economist Paul Krugman, but manages to overlook what should probably be the central focus of such a profile: Why haven't Krugman's views, particularly on economic issues, been reflected more in major media coverage of public policy debates?
Krugman is, after all, a New York Times columnist, bestselling author, Princeton professor, and Nobel Prize winner in economics. And, as Kurtz notes, Krugman has not been bashful about criticizing the Obama administration. And yet Krugman's view that, for example, last year's economic stimulus package was far too small was largely ignored by the news media.
A hint of this shows up in Kurtz's profile -- but only a hint:
"I felt like a really lonely voice," says Paul Krugman, an unknotted blue tie draped around his neck. "It's been really frustrating." But he keeps hammering away, demanding action in one New York Times column after another, hoping "to establish a counter-narrative against what everyone else is saying."
The 57-year-old commentator feels vindicated after predicting that the economy would skid into the gutter unless the president pushed through a far bigger stimulus package.
Unfortunately, Kurtz doesn't attempt to assess why Krugman is a "lonely voice" -- or what it says about the news media that the views of this Nobel-winning economist/New York Times columnist (and the many other economists who agree with him) are largely absent from coverage of public policy debates.