Elizabeth MacDonald | Media Matters for America

Elizabeth MacDonald

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  • Fox Business panel highlights increase in credit card rejections and delinquencies, fails to mention Trump administration’s gutting of consumer watchdog

    Trump administration has worked overtime to overturn consumer protections around credit

    Blog ››› ››› MEDIA MATTERS STAFF

    Fox Business hosts Stuart Varney and Elizabeth MacDonald recently highlighted a report from the New York Federal Reserve which detailed an upswing in credit card rejection rates and involuntary account closures, calling the report “bad news for the economy,” but failed to mention the Trump administration’s systematic effort to dismantle consumer protections around credit.

    Since President Donald Trump took office in January 2017, the administration has engaged in an ongoing and methodical effort, through the gutting of the Consumer Financial Protection Bureau (CFPB), to scale back regulatory oversight of financial institutions, including credit card companies. That effort includes, for example, the rollback of a CFPB regulation “that would have made it easier for credit card and bank account users to sue companies for issues like overcharging,” as “most consumers would find it too expensive to pursue grievances against financial firms in court.”

    Even though objective observers note that the report “most likely signals that card companies issued debt too freely and to less-trustworthy borrowers,” MacDonald wrote the report off as “another weird kind of non sequitur of a thing popping out in the data.” From the December 6 edition of Fox Business’ Varney & Co.:

    STUART VARNEY (HOST): A red flag on the economy, maybe another one, what's going on with credit cards, Liz? Now's your chance.

    ELIZABETH MACDONALD (FOX BUSINESS HOST): So, yeah, sorry, forgive me, I was working another story. We're going to tell you about that in a second. Rejection rates for card applicants came in very high, according to the New York Fed. Also, involuntary bank account closures because of problems with credit card payments, also at five-year highs. So, are lenders bracing for -- another negative for the economy, is it that the lenders are bracing for a slowdown? I mean, interest rates are relatively low, so, for this to be happening, another weird kind of non sequitur of a thing popping out in the data.

    VARNEY: But the credit card stuff is bad news for the economy.

    MACDONALD: Yeah, the credit card thing, it's bad news. People not paying their cards, and they're getting their bank accounts shut down.

    VARNEY: That hurts.

  • Fox’s Legendary Hypocrisy Is On Full Display With Today’s Underwhelming GDP Report

    Meager Growth Under Obama Meant We Were “Sliding Toward Recession”; For Trump, Fox Predicts A “Bounce Back”

    Blog ››› ››› CRAIG HARRINGTON

    The latest report from the Commerce Department found American economic growth in the first quarter of 2017 fell just short of most economists’ expectations. A virtually identical report one year ago was met with a chorus of outrage and hyperbole from the professional antagonists at Fox News, but their doomsaying has mellowed completely with President Donald Trump occupying the Oval Office.

    On April 28, the Bureau of Economic Analysis (BEA) released a report detailing the rate of change in real gross domestic product (GDP) during the first quarter of the year. The report showed GDP had increased just 0.7 percent during the time frame, which was both below expectations and the “weakest growth in three years.” According to The New York Times, the indicator “upset expectations for a Trump bump at the start of 2017,” while The Washington Post added that underwhelming economic performance “highlights the challenge this administration … will face trying to meet its target rate of 3 percent economic growth.” During a segment on CNN’s New Day, chief business correspondent Christine Romans noted that “the main culprit” holding back economic growth is “some nervousness among consumers,” whose spending accounts for more than half of the economy:

    At Fox News, however, the GDP report was met with muted reactions and renewed criticism of the supposedly weak economy Trump inherited from President Obama. Fox Business host Stuart Varney admitted at the outset of the April 28 edition of Varney & Co., that the report was “very, very weak” before predicting “the Left [will blame] President Trump” for sluggish first-quarter growth while guest John Lonski surmised that the economy would “bounce back” in the second quarter of the year. Later in the program, after a guest complained about the economy settling into a cycle of slow growth, Fox Business anchor Ashley Webster pleaded, “It’s just the first three months, give it time,” before predicting higher rates of growth over the next three months stemming from deregulation. Fox Business contributor Elizabeth MacDonald added that “this is an overhang … of the Obama years” while complaining that “this is what the president has inherited.” From Varney & Co.:

    The measured response from Fox’s cast of characters is a far cry from how they responded to a virtually identical GDP report published by the BEA on April 28, 2016. Varney falsely characterized first-quarter GDP growth of last year -- which at 0.5 percent also missed expectations before being upwardly revised -- as proof that the economy was “sliding toward recession” and ignored other indicators showing the economy was improving. One day later, Varney continued lambasting Obama during an appearance on Fox & Friends in which he pushed the unsubstantiated claim that the post-recession recovery was a historic failure.

    This is not the first time a Fox personality has backtracked on mischaracterizations of the economy in order to hype or defend the Trump administration. The network has completely reversed its tone toward the monthly jobs reports since Trump took office, giving him credit for jobs he didn’t create, fawning over job creation that had become routine under Obama, and heaping praise on economic indicators identical to those they had once excoriated.

  • Will Fox News Finally Take The Debt Ceiling Seriously?

    Fox Spent Years Urging Republicans To Default On The National Debt To Hurt President Obama

    ››› ››› CRAIG HARRINGTON & ALEX MORASH

    Since Republicans took control of the House of Representatives in 2011, Fox News personalities have urged them to use the threat of defaulting on the sovereign debt obligations of the United States government as a means of winning political concessions. With Republicans now in full control of Congress, will the talking heads at Fox finally come to terms with this monumental threat to the global economy and urge the GOP to raise the debt ceiling?

  • Fox Business Cherry-Picks Economic Data To Accuse Obama Of "Cherry-Picking" Economic Data​

    Panelists Ignore The Entire Bush Administration And Great Recession

    Blog ››› ››› CRAIG HARRINGTON

    A Fox Business panel attempting to downplay the latest round of positive economic indicators devolved into self-parody. The host and guests misleadingly framed median income data to omit the economic calamities of the Bush administration while accusing President Obama of “cherry-picking the time frame” and “playing with the numbers” related to other examples of economic improvement.

    On the September 14 edition of Fox Business’ Varney & Co., host Stuart Varney and guests Elizabeth MacDonald and Tammy Bruce slammed President Obama for defending his economic legacy during a campaign stop in Pennsylvania. The segment began with Varney and MacDonald lamenting that new median household income data released yesterday by the Census Bureau is “still below the peak back in 1999,” with MacDonald mockingly adding, “You’re nearly [as] rich as you were 17 years ago.”

    Varney complained that Obama was “cherry-picking” data to claim his administration has created nearly 15 million net new jobs, and MacDonald added, “He’s not factoring in 2009, … so he’s playing with the numbers.” MacDonald further claimed that a “majority of net new jobs” during the Obama administration have been in “low-paying fast-food or health sector” industries. Bruce concluded the segment by lamenting the administration’s so-called “spin” and “theater” while citing evidence from outside sources that she claimed contradicts the significant increase in median household income from 2014 to 2015.

    The complaint that Obama is “not factoring in 2009” is particularly telling, given that the segment began with Varney and MacDonald ignoring all of the reasons that median incomes remained lower in 2015 than at their 1999 peak. What happened between 1999 and 2015 to cause this income stagnation? The answer is simple: two recessions, both of which occurred during the Bush administration and neither of which was Obama’s fault. From the Census report:

    Contrary to Varney’s claim, President Obama was not “cherry-picking” data to prop up his economic legacy. Even Fox’s complaint about shifting the “time frame” on net job creation carries little weight. CNNMoney explained last January that the president is basing his calculation on net jobs created since the low point of his presidency. He does not include 2009, because the economy the president inherited that year was rocked by recession and “it took time for the administration’s policies to take effect.” According to the Bureau of Labor Statistics (BLS), the Obama administration has overseen the creation of 15.1 million private sector jobs since that indicator bottomed out in February 2010 and 10.9 million private sector jobs overall since he took office in January 2009.

    The Census report showed major improvements in the poverty rate and the health care insurance rate and revealed broadly shared income gains across all racial and ethnic groups and by workers at every level of income. The gender wage gap narrowed slightly, with women earning roughly 80 percent as much as men in 2015, up from 79 percent the year before. The Census deemed that increase not to be “statistically significant,” and more work remains to be done to achieve equal pay, but the latest data still reveal the narrowest pay gap in history. Meanwhile, the year-to-year median income increase of 5.2 percent represented “the largest single-year increase since record-keeping began in 1967,” according to The New York Times.

    Fox News and Fox Business have a long history of cherry-picking data to frame the Obama administration and progressive economic policies in the worst possible light. The economy continues to improve despite their protests.

    View the full segment from Varney & Co. here: