Univision Fails To Disclose Conflicts Of Interest In Misleading, Anti-Minimum Wage Op-Ed

Univision Noticias failed to adequately disclose for readers the financial ties between an op-ed contributor and organizations aligned against raising the federal minimum wage, allowing the author to misleadingly claim that increasing the baseline hourly wage would actually hurt minority workers and destroy jobs.

In a July 6 Spanish-language op-ed published by Univision.com, Daniel Garza of the far-right Libre Initiative claimed that the “inconvenient reality” of a minimum wage hike is that it would hurt “the most vulnerable” by increasing labor costs and reducing demand for workers. Garza cited a February 2014 report from the Congressional Budget Office (CBO) as apparent proof that raising the minimum wage would bring dire consequences to “the most vulnerable” among the population, and blamed a 2009 minimum wage increase for destroying hundreds of thousands of jobs -- completely ignoring the actual culprit for job loss that year, the recession. Translated from Univision.com:

The Congressional Budget Office (CBO) predicted a loss of approximately 500,000 jobs. When Congress raised the minimum wage by 10.6 percent in 2009, more than 600,000 youths lost their jobs. Currently, the minimum wage contributes significantly to the fiscal disaster by running through Puerto Rico, where the law has contributed to a high level of unemployment, according to The Washington Post.

Univision failed to disclose the extensive financial ties between Daniel Garza, the Libre Initiative, and the network of anti-minimum wage advocates funded by conservative billionaires Charles and David Koch, which was recently documented by Media Matters. Univision.com has been providing a platform for Garza and the Libre Initiative without disclosing their Koch-backed agenda since at least March 18, 2015.

Other media outlets, like MSNBC, have done a better job in disclosing Garza's financial backers, putting the bias in his opinion columns in context:

“It's not a positive development to have someone like Trump disparage the contribution of immigrants to the conservative brand, especially the Republican brand,” Daniel Garza - executive director of the LIBRE Initiative, a group backed by the Koch brothers' donor network devoted to selling Latinos on conservatism - told msnbc in an interview.

Garza's entire anti-minimum wage argument is based on his misinterpretation of a 2014 CBO study. The CBO did not predict “a loss of approximately 500,000 jobs,” as Garza claims. It predicted 500,000 fewer net new jobs created from 2014 through 2016 as a result of increasing the minimum wage to $10.10 per hour.  The same study also predicted that a $10.10 federal minimum wage would increase the hourly earnings of 16.5 million American workers, while lifting 900,000 Americans out of poverty and injecting billions of dollars into the economy. Garza's mistake isn't surprising, according to the Center for American Progress, the CBO study has been widely misinterpreted:

First of all, CBO does not project that job opportunities for low-wage workers will decline over the next three years if the minimum wage were raised from the current $7.25 to $10.10 per hour, as so many have reported. Only a few weeks ago, CBO published its economic and budget outlook for 2014 to 2024, which estimated that U.S. employment will grow by 7 million jobs between now and 2018. Of course, that projection is based on a number of assumptions about the future that are little more than educated guesses.

February 2013 study by the Center for Economic and Policy Research (CEPR) showed that decades of minimum wage research reveal no “discernible effect on employment”  resulting from incremental increases. There is no evidence that raising the minimum wage affects employment levels, but there is considerable research showing the positive impacts of increasing the minimum wage for low-wage workers  -- specifically women and people of color