Economy

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  • TV News Coverage Of Trump’s Policies Overwhelmed By His Wiretapping Lie

    Blog ››› ››› ALEX MORASH

    Broadcast and cable news coverage of ruinous economic policies rolled out by the White House last week was overwhelmed by the president’s false accusation that his predecessor illegally wiretapped Trump Tower during the 2016 election.

    On March 13, the Congressional Budget Office (CBO) reported that up to 24 million Americans would lose access to health insurance over the next 10 years if the Republican plan to repeal and replace Obamacare goes into effect. On that same day, the Trump administration unveiled an overlooked executive order that encourages cabinet secretaries and agency directors to create a plan to completely reshape a federal bureaucracy of over 2.8 million employees. And on March 16, the Trump administration unveiled its budget outline for the 2018 fiscal year, featuring proposed “massive cuts” to nondefense spending. The proposed cuts, which would offset an increase in spending on military programs and a border wall, would hit almost every facet of the federal government, but they would come down particularly hard on funding for small programs including Meals on Wheels, the Corporation for Public Broadcasting, and PBS.

    Yet according to Media Matters research, from March 13 to 17, President Donald Trump’s false wiretap claim dominated TV news coverage, overshadowing discussion of these important policy moves. While Trump’s lie certainly merits extensive media coverage, it’s also crucial to share details of his policymaking with the public.

    Trump ignited a media firestorm in early March when he repeatedly accused former President Barack Obama of illegally wiretapping him in the midst of last year's election. Right-wing media, led by Fox News, sprang to his defense even though the president offered no evidence to support his claim. Meanwhile, legitimate reporters exposed the bizarre accusation’s source as “the right-wing fever swamps” of fringe media and reported that it was pushed by a Russian state-sponsored news network. During March 20 testimony before the House Intelligence Committee, FBI Director James Comey put Trump’s wiretapping lie to rest, telling the committee, “I have no information that supports those tweets.”

    Yet nearly two weeks after Trump initially made the claim, his smear of Obama still had such an influence on television news coverage that it overshadowed every other discussion about Trump’s policy agenda last week. Media Matters identified 226 segments from March 13 through 17 that focused on Trump during evening programming on CNN, Fox News, and MSNBC and major news programs on ABC, CBS, NBC, and PBS. Of those segments, 64 focused on Trump’s wiretapping allegations -- a figure that dwarfed every other major issue Media Matters identified. Coverage of Trump’s health care plan came in a distant second place, with 37 segments, and stories related to the portion of Trump’s 2005 tax returns obtained by Rachel Maddow ranked third (26 segments). Trump’s proposed budget outline was discussed in just 14 segments, and his executive order to reshape the federal workforce registered just four mentions.

    With television news forced to dissect and debunk Trump’s outrageous claims, coverage of pressing economic issues was eclipsed. Coverage of the efforts to repeal the Affordable Care Act -- which health care experts have said would be particularly harmful to low-income Americans, seniors, and people dealing with illnesses -- could not overtake that of Trump’s wiretapping tweet, even with the Trump administration attempting to smear the CBO numbers in the press. The executive order, which was described by CNN reporter Stephen Collinson as part of Trump’s larger goal to “dismember government one dollar at a time,” barely registered in news coverage at all. And Trump’s budget cuts, which would decimate social safety net programs, were discussed 14 times during evening news coverage on March 16 and 17, while Trump’s lie about wiretapping was discussed 35 times on those two days.

    Trump’s promotion of a discredited lie accusing his predecessor of illegal conduct while in office merits extensive media coverage, but the policies he has enacted or plans to enact can be just as destructive as the misinformation he spreads. Media cannot afford to let Trump's misleading claims dominate the news cycle, drowning out crucial coverage of the pain his policies may cause the United States.

    Methodology

    Media Matters conducted a Nexis search of transcripts of evening news programming (defined as 6 p.m. through 11 p.m.) on CNN, Fox News, and MSNBC, as well as the major news programs on ABC, CBS, NBC and PBS, from March 13, 2017, through March 17, 2017. We identified and reviewed all segments that included any of the following keywords: Trump or executive order or federal government or federal employ! or federal worker or federal workers or civil service or government workers or government worker or federal government or budget.

    The following programs were included in the data: ABC's World News Tonight, CBS' Evening News, NBC's Nightly News, and PBS' NewsHour, as well as CNN's The Situation Room, Erin Burnett OutFront, Anderson Cooper 360, and CNN Tonight, Fox News' Special Report, The First 100 Days, Tucker Carlson Tonight, The O'Reilly Factor, and Hannity, and MSNBC's For The Record, Hardball, All In with Chris Hayes, The Rachel Maddow Show, and The Last Word With Lawrence O'Donnell. For shows that air reruns, only the first airing was included in data retrieval. This survey includes CNN’s second live hour of Anderson Cooper 360 during the 9 p.m. to 10 p.m. time slot.

    For this study, Media Matters included only those segments that contained substantial discussions of Donald Trump. We defined a "substantial discussion" as any segment where a host dedicates a monologue, or portion of a monologue, to Trump, his activities, or the policies he is pursuing as president of the United States, or any segment where two or more guests discuss Trump, his activities, or the policies he is pursuing as president of the United States. We did not include teasers or clips of news events, or rebroadcasts of news packages that were already counted when they first aired in the 6 p.m. to 11 p.m. survey window.

  • The Economy Created 2.1 Million Jobs In 2016, But The News Talked About Only 700 Of Them

    Trump’s Misleading Carrier Deal Was A Dominant Narrative During 2016 Coverage Of The Job Market

    Blog ››› ››› ALEX MORASH

    Media Matters research for the fourth quarter of the year found that broadcast evening news fixated on then President-elect Donald Trump’s misleading announcement that he was responsible for saving hundreds of jobs at an American manufacturer while largely ignoring the roughly 2.1 million jobs gained by the U.S. economy in 2016.

    Television news fawned over Trump’s late-November participation in negotiations between state authorities and Indiana-based appliance manufacturer Carrier in which the company decided to move only half of its jobs to Mexico in exchange for tax subsidies. The same outlets continued to fall head over heels for Trump when he misleadingly declared on December 6 that he had brokered a deal with Japanese technology giant SoftBank to create “50,000 new jobs” in the United States. Some journalists were quick to point out that the media may be getting “bamboozled by these announcements,” and the Carrier deal was blasted as nothing more than “crony capitalism” -- a concept that even Sarah Palin understood. ​

    New research from Media Matters revealed that overall coverage of the economy during the fourth quarter of the year spiked after Election Day, in large part driven not by consistently positive economic indicators or discussions of the future of health care reform, but by Trump’s self-serving boasts about his alleged role as a job creator. Of the 275 qualifying economic news segments aired by cable and broadcast programs from October through December, 56 featured a significant discussion of Trump’s supposed deal making with Carrier and Softbank. The media obsession with Trump’s Carrier and Softbank announcements accounted for an absurd 47 percent of evening news segments on the economy for the final 32 days of 2016.

    Television news obsessed over Trump’s claims of saving 700 jobs at one plant and practically ignored the roughly 2.1 million jobs that had been created in 2016 as part the longest stretch of job growth on record. Media Matters identified 119 segments on the economy -- some discussing more than one issue -- from November 30 through December 31; of those, 56 discussed deals supposedly brokered by Trump to save or create jobs via Carrier and Softbank. Broadcast and cable evening news coverage of these deals eclipsed all other economic reporting during this time frame: 41 segments discussed tax policy, 30 segments discussed all other news surrounding economic growth or job creation, 26 segments focused on health care policy, 18 segments explored minimum wage policies, and 16 segments discussed economic inequality.

    Media all but ignored the big picture by staying so focused on Trump’s pronouncements, falling prey to what ThinkProgress editor-in-chief Judd Legum described as Trump’s “formula for manipulating the public.” News outlets have repeatedly learned the hard way not to trust Trump’s proclamations and “nonsense” supply-side economic proposals. Yet television news still gives Trump an exhaustive amount of attention -- the same type of attention that research found played a role in Trump’s political rise. Now, it could influence public perception of his presidency.

  • STUDY: Cable And Broadcast Coverage Of The Economy Spiked After The Election

    Representation Of Economists Remained High In Fourth Quarter As Surprising Election Result Forced Outlets To Scramble For Explanations

    ››› ››› ALEX MORASH & CRAIG HARRINGTON

    The final quarter of 2016 saw an increase in cable and broadcast news coverage of the economy from the prior three-month period. Yet the proportion of economic coverage that focused on economic inequality decreased sharply as attacks on progressive economic policies rose. Fox News led the charge in attacking progressive policies and health care reform throughout the fourth quarter of the year, while the leading defender of progressive initiatives, MSNBC, aired most of its economic coverage after Election Day. The relative proportion of economists booked as guests during economic news segments remained higher than in years past but dropped as a percentage from the third to fourth quarters of 2016. The proportional representation of women in cable and broadcast evening news discussions of the economy reached a record, but dispiriting, high in the fourth quarter at a mere 30 percent of all guests.

  • Wall Street Journal Columnist Praises Trump’s $100 Billion Gift To Wall Street

    The Journal’s Greg Ip Calls Trump’s Watering Down Of Consumer Protections “Regulatory Relief”

    Blog ››› ››› ALEX MORASH

    The Wall Street Journal’s top financial columnist praised President Donald Trump for issuing executive orders aimed to scale back consumer protections in the financial industry because the rollbacks would boost profits for big banks, ignoring the reality that the rules were put in place to protect the public, not the banking industry.

    The Journal’s chief economics commentator, Greg Ip, hailed recent actions by Trump to curb government oversight of big banks in a February 8 column, claiming this would provide “regulatory relief” by addressing “a serious flaw” in banking regulations that focused merely on “financial stability and consumer protection” and “largely ignored the [regulatory] costs.” Ip noted that consumer advocate Sen. Elizabeth Warren (D-MA) and European Central Bank president Mario Draghi took issue with letting banks have more leeway, but he dismissed their concerns, stating, “The worriers should relax.” From The Wall Street Journal:

    The worriers should relax. In the 10 years since the financial crisis began, the regulatory pendulum has moved relentlessly in the direction of tougher restrictions on finance. Mr. Trump’s order reverses the direction of the pendulum but there is little sign his administration wants it back to where it was in 2007.

    His order does, however, address a serious flaw in the post-crisis regulatory crackdown: In pursuit of financial stability and consumer protection, it largely ignored the costs of forgone lending, economic growth and consumer choice. Mr. Trump has signaled those costs must now be taken into account. He has asked his Treasury Secretary (now awaiting confirmation) to report back in 120 days on how well current regulations promote growth, efficiency and competitiveness. Over time, that could generate a better balanced supply of credit to a wider range of companies and households without making the financial system much riskier.

    Ip continued that the consumer protections built into the Dodd-Frank Act, the CARD Act, and the Department of Labor’s fiduciary rule, which requires financial advisers to work in their clients’ best interests, “have carved into banks’ profitability” since their pre-recession peak. Ip concluded that the rules enacted after the 2008 financial crisis do little to prevent another financial crisis, except for rules that increased the amount of hard money a bank must hold in reserve relative to its debt risks. But Ip claimed the Trump administration “doesn’t appear to plan on rolling [capital requirements] back much.”

    The executive orders that Ip praised directed departments to account for the regulatory costs of consumer protections when deciding which rules to roll back, which the Journal’s own reporting has concluded could create a $100 billion windfall for investors by loosening capital requirements at banks. These capital requirements are the same ones that Ip argued stand “the best chance of preventing another financial crisis.”

    Ip argued that “a serious flaw” in the current slate of consumer protections is that they focus on protecting consumers and “in theory” could “reduce growth,” but in reality the three biggest banks reported strong fourth quarter earnings last year and CNBC reported that banks enjoyed record profits in the second quarter of 2016. These reports coincide with a February 2016 report from the Government Accountability Office (GAO), which found that the regulatory structure created after Dodd-Frank “has contributed to the overall growth and stability in the U.S. economy.”

    Ip’s emphasis on bank profits fails to recognize that Dodd-Frank, the CARD Act, and the fiduciary rule are designed to minimize exploitation, not maximize profit. Dodd-Frank was enacted to protect the economy by empowering the Federal Reserve System with broader banking oversight and created new protections for consumers through the Consumer Financial Protection Bureau (CFPB). The CARD Act created even more protections for consumers, including limiting interest rate hikes on credit cards. The fiduciary rule ensures consumers receive financial advice catered to their best interests rather than their adviser’s bottom line, something that Ross Eisenbrey of the Economic Policy Institute (EPI) characterized as a“no-brainer” given that the investment advice industry “makes billions of dollars from conflicted advice.”

    If Ip really wants the Trump administration to focus on increasing bank profits, heaping praise on executive orders that will weaken the economy and undermine an already profitable financial industry is a bizarre place to start. Jeff Spross of The Week put it bluntly in a February 6 column blasting Trump’s regulatory rollback: “Who on Earth would view deregulating the financial industry as a good idea?” Writing for The Guardian, Nils Pratley didn’t mince words either, characterizing the concept that banks are over-regulated as a “half-baked idea” and “nonsense” while adding that there is little evidence of consumer protections standing in the way of the industry’s growth.

    Ip’s decision to defend Trump’s attempts to deregulate the financial sector may lend credence to reports that the Journal is intentionally taking a softer tone with the president and pressuring reporters “to reflect pro-Trump viewpoints” in articles. The Journal’s behavior is not surprising, as its right-wing editorial board has led a years-long campaign against consumer protections.

  • This Is What Happens When You Hire A Trump Adviser To Give Economic Analysis

    Great Job With That Stephen Moore Hire, CNN

    Blog ››› ››› CRAIG HARRINGTON

    Discredited right-wing economic pundit Stephen Moore used his first appearance on CNN since joining the network as its “senior economics analyst” to put a negative spin on the Obama-era economic recovery while squirming out of questions about lies that President Donald Trump, whom he advised during the campaign, turned into routine campaign talking points.

    During the February 3 edition of CNN’s Wolf, host Wolf Blitzer invited Moore to offer his perspective on Trump’s sudden acceptance of job creation and unemployment data from the Bureau of Labor Statistics (BLS), which Trump had labeled “one of the biggest hoaxes in modern politics” just six months ago. Blitzer argued that the jobs data released in the morning show Trump “inheriting a strong and healthy U.S. economy,” and he aired a clip of Trump saying the January numbers were something to be “very happy about” that will likely “continue, big league.”

    Blitzer noted that the president has adopted “a very different tone” since taking office with regard to BLS data -- which he regularly blasted as “phony” during the campaign. When Blitzer pushed Moore, who served as Trump’s senior economic adviser, to answer for Trump’s sudden change of perspective, Moore pivoted to recycled complaints about the supposedly lackluster state of the economy under Obama. When Blitzer listed indicators that speak to the overall health of the economy, Moore reverted to his misleading claim that America is suffering through “the weakest recovery since the Great Depression.” Moore also set a seemingly impossible standard of success for job creation, claiming that the economy “should be getting 300-, 400-, or even 500,000 jobs a month to make up for the jobs lost from the recession.” See the full segment from Wolf here:

    In five minutes of back-and-forth, Blitzer never got Moore to own up to Trump’s sudden about-face on the monthly jobs report, but CNN viewers were exposed to the same tired criticism of President Obama that you expect to see at Fox News. This fruitless segment is sure to be a sign of things to come now that Moore -- arguably the world’s worst economist -- is serving as CNN’s “chief economics analyst.”

    CNN was as culpable as any other network in promoting Trump’s rise, but its economic team usually stood up to the Republican candidate’s falsehoods. Last year, global economic analyst Rana Foroohar left a mark on the campaign by blasting Trump’s trade policy agenda as “either a bad idea or impossible,” and ridiculing his proposal to pay off the national debt as “absolute fabulism.” Over the summer, correspondent Cristina Alesci and then-analyst Ali Velshi torched Trump’s economic fairness agenda, agreeing it seemed to be “designed for higher-income, more affluent families” rather than, as Trump had promised, middle-income Americans.

    On the jobs front, just this morning chief business correspondent Christine Romans -- who makes her living calling out Trump’s lies about the economy -- mocked Trump for accepting the jobs data, saying, “There’s no conspiracy in the numbers when they belong to him.” In fact, less than an hour before Moore took Blitzer to the spin room, CNN viewers were treated to White House correspondent Jim Acosta calling out the Trump administration for “embracing” data that it “repeatedly raised doubts about” during the campaign. Contributor Nia-Malika Henderson added that Trump should “send President Obama some flowers” to thank him for leaving behind such a healthy economy.

    Moore doesn't do anything to bolster CNN’s economic reporting; in fact, his “troubled relationship with the facts” diminishes the network. All he brings to CNN is his deft capacity to recycle right-wing media talking points that portray Obama in the harshest possible light.

  • Cable News Reports On DACA Ignored Its Economic Benefits

    Blog ››› ››› DINA RADTKE

    After President-elect Donald Trump pledged during his presidential run to rescind an executive action on immigration that protects from deportation thousands of undocumented immigrants brought to the U.S. as minors, cable news outlets routinely discussed the program as a political tool without explaining how it benefits Americans and the American economy.

    The 2012 executive action known as Deferred Action for Childhood Arrivals, or DACA, allows almost 800,000 people to study, work, and live their lives in the United States without fear of deportation. As a result of not being forced to live in the shadows, DACA recipients have generated more government revenue in the form of sales and property taxes, and created new jobs through increased consumer spending and boosted wages. The program has benefited the entire economy, but cable news coverage of DACA depicts the program as if it impacts only those who it protects from deportation.

    Media Matters reviewed how evening news programs on Fox News, CNN, and MSNBC covered DACA from August 31 -- when Trump announced he would put an end to the program -- to December 15. Of the 20 qualifying segments on DACA during that time period, its economic impact was mentioned only once. Even then, the discussion failed to provide many facts on the scope of the program’s benefits.

    Meanwhile, new reports investigating the effect of rescinding DACA conclude that doing so would do more harm than good for all Americans, not just the thousands of undocumented immigrants protected by the program. On December 13, Univision reported on a study from the Immigrant Legal Resource Center, which found that ending DACA would reduce contributions to Social Security and Medicare by $19.9 billion and $4.6 billion, respectively, over 10 years. On December 15, Telemundo reported that if approximately 3.4 million undocumented immigrant homeowners, many of whom are protected under DACA, lost protections from deportation, the resulting mass deportation “could hit the housing market, causing losses of up to $9.3 billion.” Additionally, a November 18 report by the Center for American Progress estimated that “ending DACA would wipe away at least $433.4 billion from the U.S. gross domestic product” over the next 10 years.

    Cable news networks’ failure to connect the dots on how anti-immigration policies would negatively affect the economy is a disservice to voters whose decisions at the polls were guided by a desire for a strong economy.

    Methodology

    Media Matters conducted a Nexis search of transcripts from Fox News, CNN, and MSNBC using the search terms "allcap(DACA) or dreamer or Deferred Action for Childhood Arrivals" for programs airing between 5 p.m. and 11 p.m. from August 31 through December 15. We reviewed the transcripts for segments discussing the economic impact of DACA. This included reports from correspondents and guest panels and excluded brief mentions of DACA that did not generate meaningful discussion between hosts or guests.