Fox Business provided a platform for a corporate lobbyist with clients in the fast food industry to dismiss striking workers' demands for higher wages without disclosing his industry ties.
Labor organizers in seven cities across the U.S. planned the largest employee walk out of the year for July 29. Thousands of employees in Kansas City, St. Louis, Chicago, Milwaukee, Flint, Detroit, and New York City will take part in what is potentially the largest fast food worker mobilization in history demanding better wages and stronger benefits from some of the country's largest and most profitable corporations.
On the July 29 edition of Fox Business' Varney & Co., host Stuart Varney interviewed Richard Berman of the Employment Policies Institute to provide a critical analysis of the walk outs. Berman dismissed the idea of raising fast food employee wages, claiming that the hike in pay would result in lower employment:
BERMAN: At $15 an hour many, I won't say a majority but many fast food restaurants are out of business, the business model just does not support those kind of wages. If people are feeling that they are not being paid adequately, then they have got to find a job someplace else
Berman, a corporate lobbyist, was allowed to provide this input without disclosing his organization's ties to the fast food industry. According to Citizens for Responsibility and Ethics in Washington, the Employment Policies Institute is one of many front groups associated with Berman which provide political cover for clients in the restaurant, hospitality, alcohol, and tobacco industries. Berman specializes in a so-called "aggressive media outreach" approach intended to "change the debate" in favor of major clients.
Leading up to his interview with Berman, Varney also promoted an advertisement by MinimumWage.com, an Employment Policies Institute subsidiary, which falsely claims that the federal minimum wage kills jobs and replaces workers with machine automation. Fox and other right-wing media outlets have a long history of championing false attacks on living wages. In April, Fox News used similar tactics to criticize a previous fast food worker strike in New York City.
Right-wing media outlets are promoting the fallacious premise that any attempts at tax reform must be revenue neutral, an idea that tax policy experts wholly reject.
On July 25, The Hill reported that Senate Majority Leader Harry Reid (D-NV) would not be involved in the tax reform process set up by Sens. Max Baucus (D-MT) and Orrin Hatch (R-UT). According to the report, Reid suggested that, while he would not be personally involved in the process, "raising nearly $1 trillion in revenue should be the starting point for any tax reform negotiations."
Responding to Reid's call for additional revenue from tax reform, The Wall Street Journal ran an editorial that suggested true tax reform must be revenue neutral:
Democrats swear they support something they call "tax reform," but until the Obama Presidency that has always meant trading lower rates for fewer loopholes.
The Journal's premise that any attempts at tax reform must inherently be revenue neutral was quickly parroted on Fox News. On the July 26 edition of Fox & Friends, Fox Business host Stuart Varney said Reid has "destroyed tax reform" and claimed "tax reform has always meant lower rates, fewer deductions."
Varney returned to this false "tax reform" narrative on Fox Business' Varney & Co. In an interview with right-wing tax opponent Grover Norquist, president of Americans for Tax Reform, Norquist stated, "as long as Harry Reid is the leader of the Senate there will be no tax reform. He wants a tax increase, instead of tax reform."
Conservative media's notion that tax reform must be revenue neutral is directly contradicted by experts.
From the June 26 edition of Fox Business' Varney & Company:
From the June 19 edition of Fox Business' Varney & Co.:
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Fox Business host Stuart Varney baselessly suggested non-citizens will now be compelled to vote as the "end result" of the Supreme Court's decision that Arizona cannot trump federal election law and make it harder for its citizens to register to vote.
In its 7-2 decision in Arizona v. Inter Tribal Council, the Supreme Court rejected Arizona's argument that its state registration law is immune to the federal National Voter Registration Act (NVRA) of 1993, an "open and shut" decision authored by conservative Justice Antonin Scalia that was handed down only three months after oral arguments.
Varney, however, responded to the breaking news that the Court had struck down yet another unconstitutional Arizona law by claiming the decision would not only allow non-citizens to vote, they will now go forth and do so. His guest, Fox News senior legal analyst Andrew Napolitano, while admitting Arizona has a terrible record at enacting constitutional legislation, added to the misinformation by incorrectly asserting "the states decide what the standards are for voting." From the June 17 edition of Varney & Company:
After months of struggling with how to report on good economic news, Fox News finally found a new strategy to attack consistently positive labor market gains: move the bar to an unreasonable height. While downplaying the May 2013 jobs report that was better than expected, Fox misleadingly cited employment growth during the Reagan administration and proposed a new standard for growth so unreasonably high that it has only been met three times in the past 30 years.
On the June 7 edition of Fox News' America's Newsroom, contributor Charles Payne downplayed the May 2013 jobs report -- a report that was better than expected -- saying, "You know, in the grand scheme of things, none of us should really like the number." He then compared the number to the September 1983 jobs report when the economy added 1.1 million jobs. Later, Payne guest hosted Fox Business' Varney & Co. where contributor Monica Crowley claimed, "At this point in the recovery, you should be generating 300 -- 500,000 jobs a month." She also brought up the September 1983 report.
PAYNE: You know what, all things considered, what you just laid out: it's better than expected. But you know, in the grand scheme of things, none of us should really like the number. It's extraordinarily mediocre with what we've gotten in the past. You know, the way we've come out of recessions in the past, we've had some amazing, robust times. I mean, going all the way back to Reagan where one month we actually had one million jobs created in a single month. For us to still be well under 200,000 is really disheartening. But you know, the good news is, a lot of people thought it could have been worse.
MACCALLUM: Wow, that's an - I just want to go back to what you just said. So during the Reagan recovery there was a single month period where we added a million jobs?
PAYNE: One single month. A million - by the way, we had a whole lot less people too.
But Payne and Crowley ignored the context of the 1983 report. While Payne portrayed it as just one example of the so-called "Reagan recovery," according to The Wall Street Journal's Market Watch blog, it was actually an outlier. Market Watch also pointed out that about 640,000 of the 1.1 million jobs can be attributed to striking AT&T employees returning to work. In reality, the average monthly job growth during the Reagan administration was 168,000.
Crowley's assertion that the economy "should be generating 300 -- 500,000 jobs a month," is also unreasonable. When Market Watch evaluated a similar claim by Gov. Mitt Romney, it found that job growth had only surpassed the 500,000 mark three times in the past 30 years. From Market Watch:
How rare is it for 500,000 jobs to be created in a month? The last time was in May 2010 -- when the U.S. hired thousands of workers to conduct the Census. (The next month, payrolls shrunk by 167,000.)
Lest Romneyites think that only President Barack Obama struggled to make that grade, neither President Bush, older or younger, saw job creation that strong. President Clinton had one-plus 500,000 month, when in September, 1997, 507,000 positions were created. (Aided by the return of striking UPS workers.) President Reagan enjoyed a spectacular 1.11 million-job month in September 1983, but that was the only plus-500K mark and was boosted by roughly 640,000 AT&T workers returning from a strike.
Payne and Crowley's claims represent a new line of attack, but this isn't the first time Fox News has reset the bar on how it characterizes economic news. As the economy has consistently improved, Fox News has repeatedly struggled to portray good news in a negative light. In some cases, it has even cut its economic coverage in half.
Still in search of ways to attack the federal government's investments in green technology, Fox Business baselessly claimed that the battery for the all-electric Tesla Model S "conks out after about 16 miles." In fact, the car is noted for its 200-mile battery range, which is superior to that of other electric vehicles on the market.
Positive developments about Tesla Motors' fortunes have been selectively covered by media of late, and the increasing likelihood that the company will be a long-term success has led some outlets to seek ever more inventive ways of criticizing the Department of Energy loan that it received (or pretend it never got a government boost at all). On Thursday's edition of Varney & Company, Fox Business reporter Elizabeth MacDonald aptly illustrated this phenomenon, claiming that Tesla Motors and Space X founder Elon Musk "has got to fix the Tesla [Model S] battery ... which conks out after 16 miles or about a half-hour of usage."
However, the Model S has actually been touted as a potential "game-changer" for its stated range of either 206 or 265 miles when fully charged (depending on which of the two batteries owners choose). At a consistent 55 mph clip, the larger battery can exceed a 300-mile range. Actual numbers may vary, as Tesla points out, according to "driving conditions and how you drive and maintain your vehicle," but the company's online tool shows a range of just over 150 miles for the smaller battery even at 65 mph, at freezing-point temperatures, with heat and headlights turned on and windows rolled down (i.e. less-than-favorable mileage conditions). The notoriously tough car reviewers at Consumer Reports, which earlier gave the Model S a near-perfect rating, cautioned that the car's actual range may not always align with the stated range, but reported nothing close to what MacDonald claims.
In 2011, MacDonald also appeared to pull a figure out of thin air to attack green energy investments, claiming that Evergreen Solar received "$43 million in federal money," when the bankrupt company had actually not received any federal money, according to The New York Times.
UPDATE (5/31/13): Elizabeth MacDonald acknowledged Friday on Varney & Company that she "gave incomplete information" on the battery range of the Model S, noting that one hour of charging using a mobile connector will add 31 miles to the car's range, while the fully-charged 85 kw battery has a range of 300 miles.
Fox News' Stuart Varney portrayed a natural gas automaker as a "green energy failure," even though he pushed the federal government to make transit agencies buy vehicles from the same company only a few months prior.
Vehicle Production Group (VPG), a Michigan-based company that makes wheelchair-accessible vans, recently ceased operations and closed its offices. The company, which had drawn attention for designing the first vehicle specifically for people with disabilities, was awarded a $50 million conditional loan commitment in 2010 to develop vans with natural gas engines as part of the Department of Energy's Advanced Technology Vehicles Manufacturing (ATVM) program.
On Wednesday, Varney depicted the company as "the latest embarrassment for the [Obama administration's] green energy policy" on Fox & Friends:
But Varney did not mention that VPG received its loan under a program that President George W. Bush signed into law, or that the natural gas vehicles it was intended to subsidize are a component of T. Boone Pickens' energy plan, which Fox News personalities have previously supported. Pickens funded and advocated for VPG himself.
A trio of Fox Business commentators attacked Sen. Elizabeth Warren's (D-MA) advocacy for an increased federal minimum wage by wildly mischaracterizing comments she made during a Senate committee hearing. In addition to incorrectly implying that Warren is advocating for a $22 per hour minimum wage, the panelists dismissed the need for any increase in the minimum at all by relying on misinformation and distorted arguments.
At a March 14 hearing on the ties between economic growth and the federal minimum wage, Warren said that if minimum wage had been pegged to productivity as it had increased from 1960 until now, "the minimum wage today would be about $22 an hour."
On the March 19 edition of Varney & Co., host Stuart Varney and two guests, Fox Business contributor Charles Payne and Fox Business reporter Sandra Smith, mischaracterized Warren's statement to claim she was advocating for raising the minimum wage to $22 per hour. For instance, Smith claimed that Warren is "fighting for you to make $22 an hour."
Payne also misleadingly suggested Warren's numbers were incorrect by comparing the $22 figure -- which is tied to worker productivity -- to the unrelated metric of inflation.
In fact, as the Huffington Post noted, Warren was not making the case for raising the minimum wage to $22, but was in fact referring to a study by the Center for Economic and Policy Research (CEPR) that supports her position that an increase in the minimum wage is overdue. According to the CEPR study, "Between the end of World War II and 1968, the minimum wage tracked average productivity growth fairly closely. Since 1968, however, productivity growth has far outpaced the minimum wage. If the minimum wage had continued to move with average productivity after 1968, it would have reached $21.72 per hour in 2012 - a rate well above the average production worker wage."
Payne also claimed that the minimum wage is not meant to support a family and is usually earned by teenagers, saying: "This is a stepping stone. This is not something that -- it was never designed for people to live on, per say." But according to the Bureau of Labor Statistics, just over half of all workers receiving the federal minimum wage in 2011 were aged 25 and above For her part, Smith also repeated the myth that raising the minimum wage will kill jobs, but numerous studies show that's not true.
National Rifle Association executive vice president Wayne LaPierre appeared on Fox Business' Varney & Company to falsely claim that a legislative proposal to require a criminal background check on almost every gun sale would create a national gun owner registry and possibly lead to firearm confiscation.
LAPIERRE: It is a huge waste of money. It's going to be selectively enforced. It's going to be abused. And the worst thing, you're creating a registry of all the law-abiding people in the country that own firearms. I know the politicians say, "Hey, we'll never use that list to confiscate." That's a pretty darn tall order to believe a promise from people in this town right now.
The list that LaPierre referenced does not exist and would not be created under a proposal to strengthen the background check system.
In fact, federal law prohibits the creation of a gun owner registry and the proposal to expand background checks would not subject gun buyers to any record-keeping requirements that do not already exist for transactions conducted at a gun store. As gun advocate Dave Kopel explains on the NRA's website, "the Firearms Owners' Protection Act of 1986 (FOPA) ... prohibited the creation of a registry of gun owners."
The FBI, which administers the National Instant Criminal Background Check System (NICS), destroys identifying information about gun owners within 24 hours in order to comply with this law.
Under current law, licensed firearm dealers are required retain a copy of the ATF Form 4473, the form used to complete the background check, as a sales receipt. Under legislation proposed to improve the background check system, a federally licensed firearms dealer would oversee firearms transactions between private individuals by running a background check on the purchaser. The 4473 form used in that transaction would be kept in the dealer's records, just as records are kept for individuals who buy from the licensed dealer directly. The current legislative proposal would exempt transfers between immediate family members and temporary transfers for hunting or self-defense from the background check requirement.
Conservative media voices have insisted that an increase of the federal minimum hourly wage from $7.25 to $9 would harm the economy. However, a wealth of economic evidence disputes the claims that minimum wage hikes are job killers, that the minimum wage is already high, and that it only applies to jobs held by relatively young workers.
Multiple Fox News personalities have suggested the Justice Department's lawsuit against Standard & Poor's is 'political retribution,' either papering over or outright ignoring the facts behind the suit. However, the S&P investigation began well before U.S. credit was downgraded, and a raft of internal emails suggest the company may have knowingly inflated securities ratings.
After ignoring reports that 2012 was the hottest year on record in the U.S., Rush Limbaugh and Fox Business host Stuart Varney tried to push back against well-established evidence of climate change by citing instances of cold weather.
On the January 11 edition of his radio show, Limbaugh said, "Twenty-seven degrees outside San Diego right now, 27 degrees, and they're talking about global warming" :
Similarly, Varney cited examples of "snow in Jerusalem" and "a deep freeze in China and in Europe," then said that "the green is demanding a carbon tax to prevent global warming." Varney added, "Climate's always changing, isn't it?"
Fox Business figures complained that an increased number of children receiving food assistance is evidence that they are part of an "entitlement culture" and attacked President Obama for allowing the food stamp program to expand in order to accommodate more children.
Fox Business' Varney & Co. devoted several segments to reports that one-quarter of children are now enrolled in the Supplemental Nutrition Assistance Program (SNAP). Fox Business anchor Nicole Petallides claimed that while children should receive meals at public school, "we are raising a group of entitlement nation children. I know as a parent, I go out of my way to teach our children how they have to earn each dollar." Fox News anchor John Stossell agreed, saying that expanding SNAP "encourage[s] the handouts" because "once you give away free stuff, people always want more."
In a later segment, Fox Business contributor Jedediah Bila claimed more children on SNAP is an indication that America "is becoming an entitlement culture" and warned that children receiving food assistance are "going to be entering a job market and in their mind are going to have this sense of entitlement coming along with them." Fox Business contributor Charles Payne agreed, saying people could "grow up and never even tap some of the potential that they have" because "if you make poverty too comfortable, people can't escape it."
Fox News is reporting that gun owners are rushing to buy firearms in light of President Obama's reelection at the same time it promotes the very conspiracies about the president's gun policies triggering those sales.
A December 6 FoxNews.com article on the firearms "buying spree" reports that to gun owners, "Obama's re-election, and the apocalypse -- amount to the same thing" while also credulously quoting the unfounded claim of NRA president David Keene that, "Obama is coming right at us" and his second term will be "an all-out assault on the Second Amendment."
The simultaneous reporting of an uptick in gun sales and promotion of wild-eyed conspiracy theories about Obama's gun policies is commonplace at Fox News, despite the fact that President Obama expanded, rather than restricted, where a gun can be carried during his first term.
On the December 3 edition of Hannity on Fox News, WorldNetDaily columnist Erik Rush discussed the murder-suicide involving NFL player Jovan Belcher, alleging, "Whenever there is a high-profile gun crime the fearmongering begins, the histrionics begin, and all of this stuff really has its genesis in the political left, and particularly the big government political leftists, who want to disarm the public."