Multiple Rupert Murdoch-owned media outlets, including the New York Post, Fox News, and The Wall Street Journal, have launched false attacks against New York City Mayor Bill de Blasio's record on charter schools to paint him as waging a "war on children" and "poor kids," all while ignoring the benefits of de Blasio's push for universal pre-K in the city.
The attacks on de Blasio from Murdoch's media came in response to the announcement on February 27 that he blocked three New York City charter schools from using public school space rent-free. News Corp. head Rupert Murdoch himself kicked off the attacks with two incendiary tweets on February 27, asking how "de Blasio [can] do this" the same day President Obama unveiled his initiative for young boys and men of color, and falsely claiming that de Blasio's move "hurts poor families who only want a better school for their kids."
On Fox News, On The Record host Greta Van Susteren claimed the next day that "New York City democratic Mayor Bill de Blasio, he just declared war on children," calling him "selfish, really selfish" and accusing him of "picking on the poor kids," asking, "Who could be that rotten?" On the March 3 edition of Fox & Friends, Fox correspondent Charles Gasparino accused "comrade Bill" of wanting "essentially to end charter schools." Later that day, The Real Story host Gretchen Carlson said that de Blasio "ax[ed] three planned charter schools," asking one of her guests, "Why is this an outrage in your mind that Mayor de Blasio is going to strip kids from going to charter schools?"
In print, the New York Post likened de Blasio's charter school move to New Jersey Governor Chris Christie's Bridgegate scandal (in which the governor's office engaged in political retribution), calling it "Chartergate" and writing that "de Blasio is taking good schools away from disadvantaged minority children to get back at his enemy." The Wall Street Journal editorial board called for Education Secretary Arne Duncan to defend the closed schools, claiming, "National Democrats are silent as Bill de Blasio kills charter schools."
But the facts tell a different story. According to The New York Times, de Blasio said "he would block three charter schools from using space inside New York City public school buildings." The Times explained that "[i]n reviewing 49 proposals to share school space approved under [former New York City Mayor] Mr. Bloomberg, he left untouched a majority of plans affecting charter schools." He did not "end" them or "kill" them or wage "war," as Murdoch and his media outlets claim. Furthermore, city officials told the Times that some of the plans, which were approved by Bloomberg, "would have required elementary school students to attend class inside high school buildings, and others would have required cutting programs for students with disabilities."
What right-wing media conveniently ignore in characterizations of de Blasio as picking on "poor kids" is his push for universal pre-K in New York City, which would mean greater early education access for every child regardless of their income status. The New York Times reported last week that de Blasio estimated "up to 29,000 [pre-K] seats could be opened at schools and so-called community based organizations" using his plan to fund pre-K through a higher state income tax. And as Washington Post columnist Katrina vanden Heuvel pointed out in January, de Blasio's plan "reflects growing evidence ... that high-quality, universal access to pre-K can make a significant difference in the lives of children, especially those from low-income families."
Don't expect to get the facts from Rupert Murdoch's media outlets any time soon -- their history of inflated rhetoric about de Blasio ensures his education plans will continue getting the fact-free right-wing treatment.
Wall Street Journal columnist Peggy Noonan pointed to the fight against measures that would allow businesses to discriminate against gay and lesbian customers as further evidence of "the politicization of everything," ignoring the fact that conservative media and legislators spearheaded the push to allow individuals and businesses to deny services to the LGBT community.
In a February 27 screed lamenting the decline of "the nation's morale," Noonan launched a wide-ranging attack on "the aggressive left" and its alleged responsibility for sowing the seeds of "national division." Obamacare, the IRS, the EPA, the NSA, and Nancy Pelosi all featured in Noonan's list of terribles, as did Senate Majority Leader Harry Reid (D-NV), whom she compared to Vladimir Lenin because Obamacare. Noonan also expressed concern about "the eroding end of the idea that religious scruples and beliefs have a high place" (emphasis added):
We are suffering in great part from the politicization of everything and the spread of government not in a useful way but a destructive one. Everyone wants to help the poor, the old and the sick; the safety net exists because we want it. But voters and taxpayers feel bullied, burdened and jerked around, which again is not new but feels more intense every day. Common sense and native wit tell them America is losing the most vital part of itself in the continuing shift of power from private to public. Rules, regulations, many of them stupid, from all the agencies--local, state, federal--on the building of a house, or the starting of a business. You can only employ so many before the new insurance rules kick in so don't employ too many, don't take a chance! Which means: Don't grow. It takes the utmost commitment to start a school or improve an existing one because you'll come up against the unions, which own the politicians.
It's all part of the malaise, the sclerosis. So is the eroding end of the idea that religious scruples and beliefs have a high place that must culturally and politically be respected. The political-media complex is bravely coming down on florists with unfashionable views. On twitter Thursday the freedom-fighter who tweets as @FriedrichHayek asked: "Can the government compel a Jewish baker to deliver a wedding cake on a Saturday? If not why not." Why not indeed. Because the truly tolerant give each other a little space? On an optimistic note, the Little Sisters of the Poor haven't been put out of business and patiently await their day in court.
While Noonan lamented the implications of a world in which being LGBT isn't sufficient reason for a business owner to deny someone a service, her survey of the "politicization of everything" excluded a look at the role of conservative media outlets like Fox News in crafting the narrative that LGBT equality poses a dire threat to religious freedom - the very narrative that led legislators across the country to begin proposing bills that would make LGBT customers legitimate targets of discrimination.
Fox contributor Karl Rove deceitfully shuffled the words of former U.N. ambassador Susan Rice in an effort to accuse her of pushing a "contemptible falsehood" about the 2012 Benghazi attacks and claiming that she was part of an "endless Benghazi coverup."
In a February 26 op-ed for the Wall Street Journal "The Endless Benghazi Coverup," Rove took Rice's comments about the violent protests that were then erupting across the Middle East out of context, falsely representing them as a specific reference to the attacks on a U.S. diplomatic facility in Benghazi, Libya. According to Rove, Rice said the Benghazi attack was "absolutely" the result of the protests against a "'very hateful, very offensive video that has offended many people around the world":
The worst part of National Security Adviser Susan Rice's comments on Sunday's "Meet The Press" was that she expressed no regret for saying that the Sept. 11, 2012, attacks on U.S. outposts in Benghazi were "absolutely" the result of protests against a "very hateful, very offensive video that has offended many people around the world."
This is an egregious mischaracterization of the ambassador's words. In context, Rice's comment clearly referred to the protests that had broken out throughout the Middle East and not specifically to Benghazi.
Rove was referencing Rice's September 16 interview on Fox News' Fox News Sunday, which focused at different points on the anti-American protests that had broken out across the Middle East as well as the attack in Benghazi.
Wallace led with a question about the protests that were occurring "in two dozen countries across the Islamic world," and asked whether Rice agreed with White House press secretary Jay Carney's assessment that the protests came in "response to a video that is offensive" and had "nothing to do with the president's policies." The quote Rove cited was pulled from that response, and was not at all focused on the Benghazi attack (emphasis added on the portions quoted by Rove):
WALLACE: This week, there have been anti-American protests in two dozen countries across the Islamic world. The White House says it has nothing to do with the president's policies.
Let's watch. [...] You don't really believe that.
RICE: Chris, absolutely I believe that. In fact, it is the case. We had the evolution of the Arab spring over the last many months. But what sparked the recent violence was the airing on the Internet of a very hateful very offensive video that has offended many people around the world.
Beyond his misrepresentation of Rice's comments, Rove failed to add any new information to the increasingly stale media conversation about the Benghazi attack. The rest of his piece devolved into a dissection of whether or not "she was merely sharing 'the best information that we had at the time'" - something that Rove called "a contemptible falsehood." But there too, the evidence is on Rice's side.
Rove and other Fox figures have repeatedly pushed the smear that Rice deceptively attributed the Benghazi attack to the anti-Muslim video for political reasons, but even this unusually creative distortion doesn't change the facts.
Coverage of Social Security in three major national print outlets relied on reporting figures in raw numbers devoid of relevant context -- such as previous years' figures -- that could provide a more accurate picture of the program's finances. These findings, calculated since July 2013, are consistent with a previous Media Matters analysis of print media's coverage of Social Security.
The Wall Street Journal published an op-ed by Phil Gramm and Mike Solon pushing "pro-growth tax reform" and criticizing "regulatory burden" and "antibusiness bias." The Journal did not disclose that the authors are partners of an anti-regulation lobbying firm, and that Solon is frequent business lobbyist.
Gramm is a former Republican Senator, and Solon worked as a Gramm Senate staffer for over a decade. They run Gramm Partners, a D.C. lobbying firm. The firm's website states that it works "on the issues that matter most to financial companies" and has "a track record of delivering major accomplishments -- and stopping bad deals in their tracks." The two also run US Policy Metrics, "an economic and public policy research firm serving asset managers, hedge funds and the investor community."
According to 2013 data (the most recent available), Solon has lobbied for a variety of clients including the "lobby giant" Akin Gump, Fidelity, American Express, Mortgage Insurance Companies of America, Exxon Mobil, and US Chamber of Commerce. In addition to heading a lobbying firm, Gramm gained notoriety during the 2008 campaign because he co-chaired Sen. John McCain's presidential campaign and was also a "lobbyist for a Swiss bank at the center of the housing credit crisis." Gramm does not appear to have registered as a lobbyist since 2007. Gramm Partners' lobbyist registration form states it is lobbying on behalf of Akin Gump on issues that include budget and taxes.
The Journal's identification of Gramm and Solon simply states: "Mr. Gramm, a former chairman of the Senate Banking Committee, is senior partner of US Policy Metrics and a visiting scholar at the American Enterprise Institute. Mr. Solon was a policy adviser to Senate Republican Leader Mitch McConnell and is a partner at US Policy Metrics."
Gramm and Solon's op-ed complains that Democrats won't lower tax rates and have a "misplaced perception of the importance of the inequality debate." They added: "A pro-growth tax reform will not undo this administration's doubling of the federal debt held by the public, its tax increases, increased regulatory burden or antibusiness bias. But it would be a major movement in the right direction."
Media Matters has documented how the Journal has repeatedly failed to disclose relevant ties about writers in its editorial page.
A Wall Street Journal article omitted the positive economic news in recent Congressional Budget Office (CBO) reports, misleadingly framing the reports as having challenged and "chipped away" at White House economic policies.
In a February 19 post, the Wall Street Journal characterized two recent reports from the CBO on the economic effects of the Affordable Care Act (ACA) and a proposal to raise the minimum wage as the "biggest challenges to the Obama administration's economic policy in the past month," which the Journal claimed "chipped away at two pillars of President Barack Obama's economic policy." The Journal failed to report the positive aspects of the CBO findings or describe the reports' many nuances, and made no move to identify the CBO's "complex and layered projections" that supported its thesis beyond this general line:
The budget office calculated earlier this month that the health law would lead some people to leave their jobs or ratchet back their work hours, and it said this week that raising the federal minimum wage to $10.10 an hour from $7.25 could lead 500,000 people to lose their jobs.
Yet the Journal's framing of the reports as 'chipping away' at Obama's economic policies is undermined by the CBO's actual determinations, which contained positive economic news.
In its study released this week on the effects of a minimum wage increase, the CBO determined that such an increase would lift 900,000 Americans out of poverty, 16.5 million workers would see their wages increased, and notably, "Once the increases and decreases in income for all workers are taken into account, overall real income would rise by $2 billion." The New York Times offers some perspective:
Tuesday's report from the budget office, a federal nonpartisan agency, was almost entirely positive about the benefits of raising the minimum wage to $10.10 by 2016, as President Obama and Congressional Democrats have proposed.
More than 16 million low-wage workers, now making as little as $7.25 an hour, would directly benefit from the increase, the report said. Another eight million workers making slightly more than the minimum would probably also get raises, because of the upward "ripple effect" of an increase. That would add $31 billion to the paychecks of families ranging from poverty level to the middle class, significantly increasing their spending power and raising the nation's economic output and overall income.
In fact, the report said, 900,000 people would be lifted from poverty with a wage increase. The income of those below the poverty line would increase by a total of $5 billion, or 3 percent, at no cost to the federal budget.
And in its Budget and Economic Outlook for 2014-2024, the CBO found that the ACA could free 2.5 million workers from being forced to keep their current jobs because of a need to maintain employer-sponsored health coverage. While the Journal attempts to portray this as a negative, the Economic Policy Institute (EPI) called it "an unambiguously good thing":
Not surprisingly, the CBO finds that, all else equal, people are less likely to work and will work fewer hours under the ACA. They find, and I quote, "The estimated reduction stems almost entirely from a net decline in the amount of labor that workers choose to supply, rather than from a net drop in business' demand for labor" (page 117).
These are purely voluntary labor supply decisions, not people being laid off from jobs they'd rather keep, or people looking for work and being unable to find it. Working-age adults can now choose, without regard to their need to secure health insurance, whether they wish to supply labor and how much labor they wish to supply to the labor market. This is unabashedly a good thing for them.
Opponents of the ACA will try to paint these CBO estimates as evidence that the ACA has "killed jobs" or something like it. That's flat wrong. What the ACA has done is expand the menu of options available to Americans about how to obtain decent health insurance without having their income fall to poverty levels. That menu used to include one option--"go to work for a large employer." The fact that it's broader now is an unambiguously good thing.
What's more, the report suggested that the ACA could increase job opportunities for currently unemployed workers. The CBO pointed out that "[i]f changes in incentives lead some workers to reduce the amount of hours they want to work or to leave the labor force altogether, many unemployed workers will be available to take those jobs," and reported that the law will have the stimulative effect of "raising overall demand in the economy." In a congressional testimony following the report's release, CBO director Douglas Elmendorf noted that the ACA "would reduce unemployment over the next few years."
The New York Times improved its standards for budget reporting over the past four months, providing readers with more adequate context to understand the size and scope of federal programs, budget deficits, and policy proposals.
On October 18, 2013, New York Times public editor Margaret Sullivan issued a statement affirming the paper's commitment to improving its numbers-based reporting. Sullivan's comments came in response to mounting criticism over how print media's reliance on reporting large numbers devoid of context often confuses and unintentionally misleads readers.
Ongoing Media Matters analysis of print media budget reporting standards confirms that the Times has begun to address these concerns, and now leads two other prominent print outlets -- The Washington Post and The Wall Street Journal -- in providing context when reporting numbers.
The Times was less likely than other selected outlets to rely on raw numbers for budget reporting from October 19, 2013 -- the day after Sullivan's statement -- to February 14, 2014. The paper was also more likely than the other newspapers analyzed to provide relevant context. Furthermore, the Times was the most likely to present figures in percentage terms relative to the size of the budget or the size of the economy.*
These results show a deviation from past practices. Media Matters research through the first half of 2013 revealed that the Times relied on out-of-context raw numbers for nearly 67 percent of its reporting concerning the federal budget, the debt and deficit, and spending programs. This reflected roughly the average style of reporting among the three outlets examined.
Despite recent improvement, the paper still relies on out-of-context figures for a majority of its coverage. Sullivan acknowledged in her October 18 statement that "[i]t won't be easy to make these changes happen consistently" across the newspaper's entire staff, but that change is coming "and the sooner, the better."
Hopefully other major outlets follow suit.
Image via Flickr user Frank Sheehan using a Creative Commons License.
Three major national print outlets were more likely to report economic figures in terms of raw numbers devoid of relevant and necessary context, such as previous years' numbers or monthly figures that would give readers an accurate depiction of the economy. These findings, calculated since halfway through 2013, are consistent with a previous Media Matters analysis of print media.
In the years since President Obama signed the American Recovery and Reinvestment Act -- commonly referred to as the stimulus -- right-wing media outlets have engaged in a steady campaign of misinformation to claim that it didn't help the economy.
February 17 marked the five-year anniversary of the implementation of the American Recovery and Reinvestment Act of 2009, a multi-billion economic stimulus package designed to spur economic growth and job creation during the Great Recession. The legislation increased infrastructure investments and implemented a variety of tax cuts for individuals and businesses, totaling approximately $831 billion over the 2009-2019 period.
Ever since the stimulus was signed into law, right-wing media figures have repeatedly pushed misinformation about its structure and alleged ill-effects. From forwarding false claims about the bill providing tax breaks for undocumented workers to baselessly linking it to Operation Fast and Furious, no myth has been too outrageous in the campaign to disparage the stimulus and President Obama.
The most frequently pushed myth about the stimulus, of course, is that it failed to increase economic growth or create jobs. The erroneous notion that the stimulus"failed" has appeared repeatedly in the right-wing media over the past five years, often being brought up to stymie any potential increases in government spending and investment.
The idea that increased government spending in the stimulus did not help the economy is patently false, and easily disproved by economists.
A 2010 Wall Street Journal poll of economists revealed that a majority of economists agree that the stimulus boosted growth, and according to a May 2012 Congressional Budget Office report, the stimulus created the equivalent of between 900,000 and 4.7 million jobs in 2010 and between 600,000 and 3.6 million jobs in 2011. Furthermore, a February 2013 report from the Center on Budget and Policy Priorities illustrates how GDP growth would have been slower had the stimulus not been enacted:
Despite the facts, multiple outlets -- including Fox News and the Wall Street Journal -- are using the five-year anniversary of the stimulus' implementation to push the same tired myths. On February 18, one Fox host even went so far as to wonder whether or not it caused a recession, ignoring the fact that the economy has been growing steadily since the stimulus was implemented.
If recent history is any indication, right-wing media are unlikely to stop their campaign of misinformation around the bill, particularly if additional spending measures -- a policy recommended by economists -- are implemented.
Wall Street Journal editor James Taranto claimed that cases of "'sexual assault' on campus" that involve alcohol are really victimless crimes in which both parties are equally guilty.
In his February 10 WSJ column, Taranto baselessly argued that men are often unfairly accused in sexual assault cases on college campuses, particularly when both men and women involved in the case were drinking (emphasis added):
What is called the problem of "sexual assault" on campus is in large part a problem of reckless alcohol consumption, by men and women alike.
If two drunk drivers are in a collision, one doesn't determine fault on the basis of demographic details such as each driver's sex. But when two drunken college students "collide," the male one is almost always presumed to be at fault. His diminished capacity owing to alcohol is not a mitigating factor, but her diminished capacity is an aggravating factor for him.
As the Foundation for Individual Rights in Education notes, at some campuses the accuser's having had one drink is sufficient to establish the defendant's guilt ... In theory that means, as FIRE notes, that "if both parties are intoxicated during sex, they are both technically guilty of sexually assaulting each other." In practice it means that women, but not men, are absolved of responsibility by virtue of having consumed alcohol.
While it is true that reckless alcohol consumption can play a role in encouraging damaging behavior, and that male and female college students (particularly underage students) could probably benefit from learning to moderate their drinking for a variety of reasons, Taranto's accusation that women who drink -- and then are forced to have sex against their will -- are not only equally at fault for their assault but are guilty of an equivalent crime takes victim blaming to a new and dangerous low.
Taranto's victim-blaming approach furthers his attempts to disingenuously redefine the problem of sexual assault as a problem of alcohol. The problem of sexual assault on college campuses, as elsewhere, is entirely a problem of sexual assault, in which a victim does not consent to sexual relations with the aggressor. Studies have shown that alcohol consumption doesn't cause sexual assault, nor does it serve as a defense. According to a literature review from the National Institutes of Health:
The fact that alcohol consumption and sexual assault frequently co-occur does not demonstrate that alcohol causes sexual assault.
[M]en are legally and morally responsible for acts of sexual assault they commit, regardless of whether or not they were intoxicated or felt that the woman had led them on previously. The fact that a woman's alcohol consumption may increase their likelihood of experiencing sexual assault does not make them responsible for the man's behavior, although such information may empower women when used in prevention programs.
The right-wing bubble seems impervious to both experts and fact-checkers when it comes to economic truth and the Affordable Care Act.
This week the Congressional Budget Office (CBO) released its updated economic forecast for the years 2014 to 2024. Right-wing media quickly pounced on its projection that the supply of labor would voluntarily decline by about 2 million workers over the next three years due to the ACA, twisting the findings to accuse the ACA of destroying 2 million jobs. Such misinformation from the conservative bubble was predictable, as the Economic Policy Institute (EPI) put it on February 4:
Opponents of the ACA will try to paint these CBO estimates as evidence that the ACA has "killed jobs" or something like it. That's flat wrong. What the ACA has done is expand the menu of options available to Americans about how to obtain decent health insurance without having their income fall to poverty levels. That menu used to include one option--"go to work for a large employer."
Indeed, subsequent fact-checkers and experts discredited the right-wing media's spin -- As The Washington Post's FactChecker plainly said, "No, CBO did not say Obamacare will kill 2 million jobs," echoing Chairman of the Council of Economic Advisors Jason Furman who explained that "CBO's analysis itself is about the choices that workers are making in the face of new options afforded to them by the Affordable Care Act, not something about firms destroying jobs."
But it appears it will take more than facts and experts to penetrate the right-wing echo chamber.
Fox News doubled down on its misinformation on the February 6 edition of Fox & Friends, with an on-air graphic that framed the increased worker flexibility as "Obamacare to cut 2M jobs":
The Wall Street Journal editorial board claimed to "pars[e] this supply-of-labor reasoning" in a February 5 editorial by refusing to acknowledge the distinction between labor supply and job availability:
For years liberals have lamented the jobs crisis and underemployment to castigate Republicans as mean-spirited for opposing more "stimulus" and more weeks of unemployment benefits. But if pervasive joblessness is an economic and social scourge, why celebrate a program that is creating more of it?
Liberals are also trying to spin the CBO report as an endorsement of ObamaCare's alleged health security. Mr. Furman cited the phenomenon known as "job lock," in which people don't switch employers or start their own business to preserve fringe benefits. But job lock is really about employment flexibility, rather than the government extending subsidies so people don't need or want jobs.
A National Review editorial on February 6 characterized the fact-checks as "hilarious," claiming that the ACA was "taking a blowtorch to the work force" and creating a "crater" of lost economic value while mocking the administration:
But the administration still does not seem to be able to get its collective head around the fact that American workers are not just hungry mouths that have to be filled with paychecks: They are people who provide economically valuable goods and services. Those 2.5 million out of the work force may be happier at their leisure, but the economy as a whole will be substantially worse off without their contributions. We could, in theory, simply have the federal government deliver checks to every household and allow each and every one to follow his bliss as he sees fit, but the shelves of the grocery stores soon would be empty. The depth of the Obamacare crater in the labor force isn't some abstract unemployment rate, but the lost value of the work those Americans would have done.
Plugging their ears on the CBO's determination also blinded right-wing media to the CBO's suggestion that the projected changes in the labor supply would increase opportunity for unemployed workers:
If changes in incentives lead some workers to reduce the amount of hours they want to work or to leave the labor force altogether, many unemployed workers will be available to take those jobs--so the effect on overall employment of reductions in labor supply will be greatly dampened.
Right-wing media outlets are falsely claiming that workers voluntarily reducing hours due to provisions of the Affordable Care Act (ACA) is evidence that the law is harmful to the economy, ignoring economists' opinions about its role in reducing economic insecurity.
Right-wing media figures are baselessly stoking fears about calls to reduce inequality and expand opportunity to low-income Americans, claiming that these efforts are evidence of persecution of the rich and class warfare.
The Wall Street Journal endorsed billionaire venture capitalist Tom Perkins' inflammatory suggestion that a "[p]rogressive Kristallnacht" may be soon be directed against the rich and dubbed subsequent criticism of the Nazi comparison "Perkinsnacht."
In a January 24 letter to the editor, Perkins hyped a supposed "progressive war on the American one percent" and compared it to Nazi Germany's Kristallnacht, asking: "Kristallnacht was unthinkable in 1930; is its descendant 'progressive' radicalism unthinkable now?" In the following days, Perkins' letter received widespread criticism.
A January 29 Journal editorial -- headlined "Perkinsnacht" -- dismissed criticism of Perkins' Nazi reference as "unfortunate, albeit provocative," and claimed that Perkins' critics had proved his point: "the vituperation is making our friend's point about liberal intolerance -- maybe better than he did."
The Wall Street Journal isn't the first right-wing media source to throw support behind Perkins. On January 29, conservative columnist Michelle Malkin characterized the reaction to Perkin's letter as evidence of a "bullying epidemic" and "wealth-shaming" by "the grievance industry." Fox Business contributor Charles Payne went further, arguing that Perkins "may be a couple of years ahead of the curve."
The Wall Street Journal misleadingly attacked President Obama's decision to boost the minimum wage for federally contracted workers as an "ostentatious display of President Obama's intention to end run lawmakers and even the law," ignoring the fact that previous presidents set precedent for this type of action.
In his January 28 State of the Union address, President Obama announced plans to issue an executive order that would require "federal contractors to pay their federally-funded employees a fair wage of at least $10.10 an hour." As he said, "if you cook our troops' meals or wash their dishes, you should not have to live in poverty."
The Wall Street Journal's editorial board responded to the president's announcement with the suggestion that Obama was acting like a "king" who "seems to think is a [sic] Democracy of One, or shall we say The One." The editorial attacked the president's plan as "the latest ostentatious display of President Obama's intention to end run lawmakers and even the law" and went on to deny the fact that increases in the minimum wage carry economic benefits or have any bearing on the "economy and efficiency" of the federal contracting process.
But the Journal ignored the fact that Obama isn't the first president to issue this type of order. Presidents John F. Kennedy and Lyndon B. Johnson took similar action to increase equal opportunity and nondiscrimination standards for federal workers. As The New York Times Taking Note blog reported:
Other presidents have used executive orders to upgrade labor standards for employees of federal contractors, including President Kennedy, who required federal contractors to have companywide equal employment opportunity plans, and President Johnson, who prohibited racial discrimination and other bias in hiring by federal contractors.
The non-partisan research center Demos has pointed to executive orders that "have mandated that companies working on behalf of the American people are upholding high standards of employment practices" and further detailed presidential precedent:
From the 1931 Davis-Bacon Act to Executive Order 11246 of 1965, and a host of other laws and executive actions, our laws have mandated that companies working on behalf of the American people are upholding high standards of employment practices. Yet as the nature and prevalence of federal contracting, lending and grant-making have changed, and some laws have been weakened, working people have fallen through the cracks.
In the past, presidents have used their authority to improve job opportunities for Americans working or seeking to work for federal contractors. For example, starting in 1941, successive administrations issued executive orders to fight employment discrimination in the contracting workforce. This effort culminated with President Lyndon Johnson's signing of Executive Order 11246, mandating equal employment opportunity and affirmative action for all individuals working for federal contractors. An executive order to raise and enforce workplace standards for contractors, grantees, and other private companies that do business with the federal government would follow this powerful and effective precedent.
Furthermore, the Journal's claim that a minimum wage increase would hurt businesses and doesn't affect the "economy and efficiency" of federal contracting flies in the face of the hundreds of economists around the country, including numerous Nobel Laureates, who have come out in support of such a plan.
Increases in the minimum wage have not been shown to significantly damage the job market. In fact, businesses that have chosen to boost employee wages have reaped economic benefits. As the Harvard Business Review found, "[i]n return for its generous wages and benefits, Costco gets one of the most loyal and productive workforces in all of retailing, and, probably not coincidentally, the lowest shrinkage (employee theft) figures in the industry [...] Costco's stable, productive workforce more than offsets its higher costs." According to the Economic Policies Institute:
[T]he weight of evidence now showing that increases in the minimum wage have had little or no negative effect on the employment of minimum-wage workers, even during times of weakness in the labor market. Research suggests that a minimum-wage increase could have a small stimulative effect on the economy as low-wage workers spend their additional earnings, raising demand and job growth, and providing some help on the jobs front.