Minimum Wage | Media Matters for America

Minimum Wage

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  • Fox’s Steve Doocy cites out-of-date study to argue against federal minimum wage increase

    Blog ››› ››› MEDIA MATTERS STAFF

    Fox & Friends co-host Steve Doocy cited an out-of-date study to attack the idea of an increase to the federal minimum wage. In a segment about potential presidential contender Sen. Bernie Sanders (I-VT) tweeting in support of a federal minimum wage increase, Doocy said that when “Seattle experimented” with increasing the local minimum wage to $15 per hour, “a study came out that showed that people wound up with less money in their pockets because employers cut employees’ hours because the wage was so high.”

    The 2017 study that Doocy appears to be referencing “estimates [that] the average low-wage worker in the city lost $125 a month because of the hike in the minimum" wage. As The Washington Post reported, "The paper's conclusions contradict years of research on the minimum wage." Sure enough, within months, other papers were published that “underscored the limitations of the Seattle study.” More significantly, Doocy failed to mention that the authors of that 2017 study actually published new research a year later that "found that the increase added about $10 per week on average to the earnings of low-income workers through 2016, even while reducing weekly hours slightly." According to CNN, the findings also showed that “employee turnover decreased, which the authors believe suggests that employers tried harder to retain their most productive staff members as wages went up.” While there have been critics of the study, it did overall find more positive results than its predecessor, which Doocy ignored.

    From the January 16 edition of Fox News’ Fox & Friends:

    STEVE DOOCY (CO-HOST): I remember Seattle experimented with this and they jacked up the federal -- the local minimum wage, and, I believe, a study came out that showed that people wound up with less money in their pockets because employers cut employees' hours because the wage was so high.

  • In honor of Labor Day, Fox & Friends let an obscure acupuncturist lie about raising the minimum wage

    Blog ››› ››› ALEX MORASH

    Fox News used an unqualified crank to push discredited right-wing media myths about the economic costs of raising the minimum wage in response to Fight for $15 rallies held across the country on Labor Day.

    On the September 5 edition of Fox News’ Fox & Friends, co-host Steve Doocy hosted Kevin McNamee, an obscure chiropractor and acupuncturist, to discuss rallies held in Boston, Chicago, Milwaukee, and Oakland where demonstrators called for raising the minimum wage. McNamee claimed raising minimum wages takes profits away from business owners and hurts the economy. He further claimed that Seattle, WA, -- a frequent target of anti-minimum wage attacks -- had seen companies in the hospitality sector go out of business, which in turn led to job losses, as a result of the city’s minimum wage increase, concluding “it’s not rocket science here.”

    McNamee’s only prior experience with economic policy arguments relating to the minimum wage appears to be a letter to the editor that appeared in The New York Times in May 2015, which serial minimum wage misinformer Mark Perry mentioned in an American Enterprise Institute blog post. In the letter, McNamee bizarrely declared his acupuncture business was “not a charity” and that he did not wish reduce his personal profit by paying his employees living wages.

    Counter to McNamee and Fox News’ assertions, actual economic research has found raising the hourly minimum wage neither hurt small businesses nor lead to job loss. Looking at minimum wage increases over a 20-year period, researchers at Cornell University found that raising the regular and tipped minimum wage for workers in the restaurant and hospitality industries has "not had large or reliable effects" on the number of people working in those industries. Furthermore, since Seattle started phasing in increases to the city’s minimum wage in April 2015, the metro area has continued to grow and add jobs. From the Federal Reserve Bank of St. Louis:

    Fox has repeatedly pushed myths that raising the minimum wage kills jobs and hurts the economy, and has given business owners a platform to bemoan paying workers a living wage. Despite Fox’s years-long misinformation campaign, a majority of Americans support raising the federal minimum wage and states and municipalities have continued to increase their minimum wages.

  • Fox pushes absurd claim that Trump’s election boosted economy by $4 trillion

    Stuart Varney: Ignore Trump’s political failures, praise “MAGAnomics”

    Blog ››› ››› CRAIG HARRINGTON & ALEX MORASH

    Fox Business host Stuart Varney celebrated the first six months of the Trump administration by ridiculously claiming that the election and inauguration of President Donald Trump are responsible for adding trillions of dollars to the economy and lifting wages for low-income workers around the country. Varney’s claims are the latest in a long-running right-wing media fantasy that the Republican Party’s economic agenda will unleash the American economy, which conveniently ignores more than six years of steady economic progress under the Obama administration.

    On July 20, Trump celebrated the six-month anniversary of his inauguration as president of the United States. By any objective measure, Trump’s presidency has already been one of the strangest and most chaotic in living memory. The Trump administration is consumed by scandals of its own making, and, according to a Washington Post report published on Trump’s six-month anniversary, the president is beginning to ask his political and legal advisers “about his power to pardon aides, family members and even himself.”

    Despite these facts, the team at Fox News and Fox Business attempted to find a silver lining for the Trump presidency by falsely crediting his administration for the continued overall health of the American economy. In a July 20 op-ed published by FoxNews.com and a corresponding segment on Varney & Co., host Stuart Varney credited Trump with “add[ing] $4.1 trillion to the nation’s wealth” thanks to a post-election stock market rally. Varney also preposterously claimed that “during [Trump’s] presidency,” long-established American tech giants “Apple, Amazon, Alphabet, Microsoft and Facebook” have “emerged as global technology leaders.” Varney’s ridiculous claims were promoted by the network’s social media accounts and parroted again from the Trump-friendly confines of Fox & Friends during a segment in which Varney also credited Trump for wage growth witnessed by low-income workers. From the July 21 segment:

    Fox’s claim that Trump is responsible for low-income wage increases stems from a July 20 Wall Street Journal article, which said that “full-time earners at the lowest 10th percentile of the wage scale” witnessed a 3.4 percent year-to-year wage increase in the second quarter of 2017, according to data from the Department of Labor. Contrary to Fox’s argument that Trump deserves credit for the increase, the Journal pointed to consistently low unemployment rates and minimum wage increases enacted by states and municipalities across the country as primary drivers of the uptick, which continued an accelerating wage trend for low-wage workers dating back to 2015. Minimum wage increases have been found to correlate with significant gains to low-income earnings, as the Massachusetts Budget and Policy Center (MassBudget) reported on September 5, and 19 states increased their minimum wages at the beginning of the year:

    In addition to falsely crediting Trump for years-long wage growth trends, the team at Fox News also claimed that Trump is responsible for a $4.1 trillion increase in stock market capitalization since Election Day, citing the Wilshire 5000 composite index. It is true that American stock markets have gained value since November, but as CNN business correspondent Christine Romans pointed out last month, stocks had been gaining value for years before Trump’s election. Indeed, the Wilshire 5000 index, like other major stock indices, has been consistently climbing since bottoming out in March 2009 in the midst of the Great Recession and financial crisis.

    Fox’s promotion of Trump’s supposed economic success was not lost on the network’s number one fan, as the president posted a video of Varney’s celebratory July 20 segment on Twitter just this morning:

    Fox has repeatedly pushed misleading economic data to hype Trump since the start of his administration, and the network has even fought against increased minimum wages, which are partly responsible for the wage growth its hosts now celebrate. Fox’s sycophantic devotion to Trump runs so deep that Varney even once admitted his unwillingness to criticize the president, a complete reversal from the tone of his coverage during the Obama administration.

  • CNN Just Hired The Worst Economist In The World

    The Network Is Doubling Down On Its Failed Strategy Of Hosting Right-Wing Stooges In Place Of Actual Experts

    Blog ››› ››› CRAIG HARRINGTON

    CNN has reportedly poached discredited right-wing economic pundit Stephen Moore from Fox News. Moore spent years at Fox routinely spreading misinformation about the economy during the Obama administration and spent much of 2016 promoting Donald Trump's failed trickle-down policies while serving as his senior economic adviser. The decision to hire the notoriously incompetent Moore shows that the network remains invested in its failed strategy of giving airtime to partisan hacks instead of qualified experts.

    According to a January 30 report from Business Insider, Moore described leaving Fox News as “a hard decision” but said that “CNN made a really good offer.” The report noted that Moore joins “other right-leaning journalists and contributors” recently hired by the network, which has been adding new conservative voices since Election Day. The decision to add Moore to its roster reveals CNN to be on a troubling trajectory because, even among professional political hacks and conservative pundits, Moore has distinguished himself for his particularly shoddy work.

    Media Matters has extensively detailed Moore’s terrible track record as an economic analyst for over a decade. Moore has falsely claimed for years that the Affordable Care Act (ACA) forces workers into part-time jobs, he attempted to blame the housing crisis on Bill and Hillary Clinton, he promoted the lie that members of Congress and their staff are “exempt” from the ACA, he supported draconian budget cuts that hurt the economy, and he endorsed Republican attempts to block vital infrastructure spending.

    During his tenure as the “chief economist” at the Heritage Foundation, Moore once exaggerated the actual cost estimate of providing unaccompanied minors with access to American public schools by an absurd 63 percent, claiming it would cost $1 billion a year. During a July 2014 dispute with Nobel Prize-winning economist and New York Times columnist Paul Krugman, Moore was caught cherry-picking statistics for an op-ed published by The Kansas City Star to intentionally mislead readers about the relationship between tax cuts and job creation. (The newspaper eventually vowed to stop publishing Moore’s work, which had to be corrected by other outlets as well.)

    The examples of Moore being clueless about even the basics of economic policy are legion. For instance, there was the February 19, 2014, interview with CNN in which host Carol Costello stopped Moore’s anti-minimum wage spin dead in its tracks:

    Moore is so widely discredited that New York magazine columnist Jonathan Chait once mocked him for being unable to “find a single true fact” to back up his support for repealing the ACA. Economist Jared Bernstein of the Center on Budget and Policy Priorities chided Moore in a March 2015 column for his “fact-free” endorsement of anti-union “right-to-work” laws, and Krugman once speculated that Moore’s “incompetence is actually desirable” in conservative circles, because “a smart hack might turn honest.”

    It is one thing for CNN to add a conservative perspective to its news coverage, but it is another thing entirely to grant more airtime to an incompetent serial misinformer like Steve Moore. CNN viewers are already forced to endure Trump sycophant Jeffrey Lord’s ignorant and bigoted commentary. Adding Moore to the network’s roster proves once again that CNN boss Jeff Zucker learned nothing from his organization’s humiliating relationship with irreconcilable Trump apologist Corey Lewandowski. Viewers deserve to hear analysis from qualified experts, not hacks who will eschew the facts to toe a predictable party line on every issue.

  • Wall Street Journal Virtually Alone In Defending Trump’s Pick For Labor Secretary

    Even Breitbart Opposes Fast-Food CEO Andy Puzder Running The Department Of Labor

    Blog ››› ››› ALEX MORASH

    The Wall Street Journal editorial board stands virtually alone in defense of President-elect Donald Trump’s pick for secretary of labor, Andy Puzder, a notoriously anti-worker fast-food CEO and frequent right-wing op-ed contributor to the Journal.

    The Journal’s editorial board published a defense of Puzder on December 8, praising his opposition to raising the federal minimum wage, expanding Obamacare, and strengthening overtime protections for workers. The editorial board continued that they hoped Puzder would roll back other progressive advances for working-class Americans, including reversing an executive order mandating paid sick leave for federal contractors and undoing the Labor Department’s fiduciary rule requiring investment brokers to act in a client's best interests. From the Journal:

    Donald Trump’s selection of CKE CEO Andy Puzder to lead his Labor Department has incited a tantrum on the left, which is a good sign. The burger maven once told us that he often picked up litter around his restaurants, and departing chief Tom Perez is leaving plenty to clean up.

    [...]

    He is also the rare executive who promotes free markets rather than merely his narrow business interests. Mr. Puzder has expounded in these pages on the unintended consequences of ObamaCare’s mandates and a $15 minimum wage. He’s also detailed how the Obama Administration has contributed to the shrinking labor force and large number of underemployed workers.

    The Journal was one of the few voices to speak in support of Puzder’s nomination for secretary of labor. During a December 9 segment on Fox Business, host Stuart Varney used the controversy surrounding the nomination as “an excuse to run those racy ads” objectifying women, which Puzder’s company has become known for.

    One of the only other defenders of Puzder is Stephen Moore -- a discredited economist, Trump economic adviser, and a former Journal editorial board member -- who, while defending his boss’ pick, attacked Media Matters and “the big unions” for what he called “a loud and libelous campaign” to damage Puzder’s nomination.

    Controversy has been mounting over Puzder’s nomination after initial reporting failed to note the many right-wing media myths he has pushed to support his anti-worker agenda. The New York Times blasted Puzder in an editorial on December 8 titled “Andrew Puzder Is The Wrong Choice For Labor Secretary” for his stances on worker rights, and for Puzder’s companies' -- Carl's Jr. and Hardee’s -- record of labor law violations. From The New York Times:

    Here is the record at those restaurants. When the Obama Labor Department looked at thousands of complaints involving fast-food workers, it found labor law violations in 60 percent of the investigations at Carl’s Jr. and Hardee’s, usually for failure to pay the minimum wage or time and a half for overtime.

    MSNBC’s Morning Joe mocked Puzder on December 9 for his statement to Business Insider that machines are preferable to workers, and co-host Mika Brzezinski reported that opposition to Puzder came from both the left and from the alt-right website Breitbart News, which had been instrumental in helping Trump get elected.

    Puzder has a history supporting anti-worker policies and had claimed that replacing people with machines would be preferable because machines “never take a vacation” or complain when discriminated against. Puzder opposes new overtime rules proposed by the Department of Labor that would extend guaranteed overtime pay to millions of American workers. Puzder has also misleadingly claimed that stronger wages and benefits actually hurt workers, frequently attacking the push to raise the minimum wage, and Obamacare’s health insurance expansion.

    Finally, as Gary Legum pointed out in a column published by Salon, if Puzder is confirmed, he may be the “least qualified labor secretary” since the early 1980s, when the Reagan administration appointed construction magnate Raymond Donovan to the same post.

  • Major Newspapers Fail To Grasp Severity Of Putting Andy Puzder In Charge Of Labor Department

    Blog ››› ››› CRAIG HARRINGTON

    Initial reporting on the president-elect’s selection of fast-food CEO Andy Puzder to replace Tom Perez as the next secretary of labor depicted Puzder as a “vocal” critic of Obama administration policies while failing to note the conservative media-fueled inaccuracies that inform the incoming secretary’s anti-worker views.

    On December 8, The Wall Street Journal was first to report that President-elect Donald Trump planned to name Puzder -- the CEO of CKE Restaurants, which owns the Carl’s Jr. and Hardee’s burger chains -- as the incoming labor secretary in his administration. The Journal’s report, and subsequent reporting from The New York Times, Los Angeles Times, and USA Today, focused mostly on Puzder’s opposition to specific economic initiatives from the Obama administration -- raising the minimum wage, expanding overtime protections, and extending the scope of the Affordable Care Act (ACA) -- while failing to mention that Puzder’s arguments against each have been widely discredited:

    • The Journal reported that Puzder is a “vocal advocate for cutting back regulations,” which he claims “have stifled growth in the restaurant industry,” and concluded with the acknowledgment that Puzder has used the Journal’s own opinion pages to discuss “topics such as the negative effects of President Obama’s health-care law and of broad increase in minimum wage.”
    • The Times noted that Puzder believes “large minimum wage increases hurt small business and lead to job loss among low-skilled workers,” adding that he believes the ACA created a so-called “restaurant recession” by reducing disposable incomes that American workers would otherwise “spend dining out.”
    • The LA Times claimed that Puzder opposes raising the federal minimum wage to $15 per hour “because he thinks that would cost many low-wage workers their jobs,” and quoted a Forbes op-ed published by Puzder on May 18 that alleged the Obama administration had created an “extensive regulatory maze” with overtime and health care reforms that drive up labor costs and “reduced opportunities, bonuses, benefits, perks and promotions” for workers.
    • USA Today’s synopsis was much less extensive, merely labeling Puzder as “a major critic of what he calls unnecessary federal regulations, including a proposed hike in the federal minimum wage” before moving on to other rumored Trump appointments.

    Despite amplifying Puzder’s criticism of progressive economic policies, none of the outlets saw fit to mention that his arguments are wrong.

    First, Obama-era regulations have not “stifled growth in the restaurant industry” or created a “restaurant recession.” According to data from the Bureau of Labor Statistics (BLS), employment in the restaurant industry is up more than 20 percent since Obama took office in January 2009:

    Second, while it is true that Puzder is an ardent opponent of increased minimum wages -- he once argued that modest wage increases actually encourage low-wage workers to game the system so they can stay in poverty -- it is important to note that his arguments are unfounded. Puzder and other right-wing media personalities have waged a campaign of misinformation against raising the minimum wage, claiming that it hurts businesses and kills jobs. In reality, reliable professional studies of the minimum wage consistently find a negligible relationship between the minimum wage and employment activity.

    As is the case with Puzder’s opposition to living wages, the incoming labor secretary’s antagonism toward the ACA is also not based in facts. Right-wing media outlets and allied politicians have spent years claiming that President Obama’s signature health care reform law is hurting the economy and stymieing the job market despite all evidence to the contrary. In reality, Obamacare has reduced the uninsured rate to historic lows, has reduced medical debt and benefited public health outcomes while strengthening the economic security of low-income families.

    Finally, Puzder’s opposition to expanded overtime protections amounts to little more than retooled talking points generated by right-wing media. Conservative media outlets opposed President Obama’s proposed overtime expansion before they even knew the details, claiming it threatened to undermine American work ethic and turn the country into Greece. Puzder’s claim that a “regulatory maze,” which includes overtime expansion, has “reduced opportunities, bonuses, benefits, perks and promotions” ignores the obvious economic benefits of paying millions of American workers for the hours they actually work and that the overtime threshold “has the advantage of simplicity” that makes it efficient for employers to implement.

    Media Matters outlined the many ways media should approach his troubled relationship with the truth. If coverage today is any indication, major outlets still have a lot to learn.

  • What You Need To Know About Rumored Trump Labor Secretary Andy Puzder

    Trump Reportedly Leaning Toward Prolific Right-Wing Op-Ed Writer And Fast Food CEO To Head Department Of Labor

    Blog ››› ››› ALEX MORASH

    **UPDATE: Several news outlets reported on December 8 that the president-elect is expected to choose Puzder to serve as the country’s 27th secretary of labor. The New York Times noted that Puzder “will arguably have less experience in government than any labor secretary since the early 1980s.”

    Media outlets have reported that President-elect Donald Trump is considering Andy Puzder, a right-wing commentator and fast food CEO, for secretary of labor. Puzder is known for writing op-eds denouncing worker rights and the minimum wage, and his company is infamous for its “supermodel-centric marketing strategy” designed to offend viewers and stoke sales.

    According to a November 15 article in Politico, Puzder, the CEO of CKE Restaurants, which operates burger chains Carl’s Jr. and Hardee’s, was on the short list to replace Tom Perez as the secretary of labor in the incoming Trump administration. The same day, The Atlantic also reported on Trump’s possible choice of Puzder, noting the CEO’s history of fundraising for Trump and his staunch opposition to Obamacare and raising the minimum wage.

    In his op-eds and media appearances, Puzder frequently peddles right-wing misinformation advocating policies that hurt American workers. Puzder has praised the job destruction that comes with workplace automation, boasting in a March 16 interview with Business Insider that he wanted to automate more of his restaurants to avoid paying worker salaries and benefits. Puzder claimed that replacing people with machines would be preferable because machines “never take a vacation” or complain when discriminated against. From Business Insider:

    "They're always polite, they always upsell, they never take a vacation, they never show up late, there's never a slip-and-fall, or an age, sex, or race discrimination case," says Puzder of swapping employees for machines.

    Puzder opposes new overtime rules proposed by the Department of Labor that would extend guaranteed overtime pay to qualified salaried workers making less than $47,476 a year. Puzder defended his position by claiming that having a salaried position -- and thus no overtime pay -- is an “opportunity” that confers “prestige” and “an increased sense of ownership” to overworked and underpaid managers. Puzder has also frequently attacked the push to raise the minimum wage and Obamacare’s health insurance expansion, misleadingly claiming that stronger wages and benefits actually hurt workers.

    Puzder even attacked working-class Americans during an appearance on Fox & Friends, claiming that low-income workers might be wary of higher paying jobs if the salary increase results in a loss of government benefits. Puzder wrote in an op-ed in The Hill of a so-called "Welfare Cliff," where employees turn down promotions that could lead to $80,000 salaries because they "don't want to lose the free stuff from the government." Yet, by Puzder's own admission, the company he runs does not pay anywhere near the $80,000 annual salary that his employees were supposedly passing up so as to qualify for anti-poverty assistance.

    In addition to being an outspoken media advocate of poverty wages in the fast food industry and an opponent of policies aimed at helping American workers, Puzder also runs a company that boosts its sales via a “supermodel-centric marketing strategy” catered to exploiting his customers’ base impulses. Puzder told Entrepreneur magazine that complaints that his ads are sexist “aren't necessarily bad” for the company and that he thinks his company’s “sales go up” amid public outcry over ads that degrade women. The fast food chain has been running these ads for years, and Jezebel compiled “a history of disgusting Carl's Jr. ads” from 2005 to 2013. Puzder’s stance on objectifying women for commercial gain is eerily reminiscent of Donald Trump’s own history of degrading remarks about women.

    As the president-elect begins the transfer of power, media need to inform Americans of Trump’s potential cabinet picks, the potential policies these cabinet members may support, and how those policies will affect American workers. Experts have already started to express fear that Trump’s proposals for the economy -- budget-busting tax cuts for the rich and unfunded deficit spending -- may create a short-term “sugar high” followed by an economic crash. The next labor secretary could exacerbate those economic worries if he or she promotes policies that undermine the livelihoods of millions of Americans.

  • Right-Wing Media Attempt Last-Ditch Effort To Smear Raising The Minimum Wage In Four States

    Blog ››› ››› ALEX MORASH

    As four states appear poised to pass ballot initiatives to raise their minimum wages, right-wing media are launching an eleventh hour smear campaign falsely claiming that a wage increase will kill jobs and hurt workers.

    On November 8, voters will decide in four states -- Arizona, Colorado, Maine, and Washington -- whether or not to raise their state’s minimum wages. While none of the states go as high as $15 per hour, three are pushing for $12 per hour with Washington proposing a $13.50 hourly wage by 2020. If all four states raise their minimum wages it would boost pay for over 2 million workers. As Thinkprogress reported, recent polling shows all four states are on track to approve these initiatives, with Arizona seeing 58.4 percent support, Colorado 55 percent, Maine 57 percent, and Washington 58 percent.

    In an attempt to dissuade voters from approving these popular initiatives, Michael Saltsman, the research director of the business front group Employment Policies Institute, attempted to push false claims about the minimum wage in The Wall Street Journal on November 3. Saltsman cherry-picked from a Congressional Budget Office (CBO) report to claim a proposed federal minimum wage increase “would cost the country a half-million jobs” and he pointed to a study by researchers at the University of Washington on Seattle’s phase-in of a $15 per-hour wage to claim the city had seen a loss of employment.

    Saltsman failed to mention that the CBO report also found a federal minimum wage increase to $10.10 per hour in 2016 would have boosted net income by $2 billion, raised wages for more than 16 million workers, and lifted 900,000 Americans out of poverty. Furthermore, the CBO’s director at the time, Douglas Elmendorf, made clear in testimony before Congress in March of 2014 that while the CBO considers a wide range of effects on employment, it did not analyze potential job growth from the greater consumer demand created by higher incomes as a result of raising the minimum wage.

    Saltsman also did not mention that the study by researchers at the University of Washington ultimately found the Seattle economy saw a “boom in job growth” over the 18 months studied. And when researchers attempted to predict what potential job growth might look like for Seattle without raising wages, researchers found the city created 99 percent as many new jobs with a wage increase than it might have without.

    The last minute campaign against raising the minimum wage was also pushed on Fox Business’ Varney & Co. on November 4. Fox host Stuart Varney proclaimed the far-right view that “I just don’t think you should legislate wages period” and guest Anthony Scaramucci claimed raising wages is “a real problem for the youth and this is the reason why you've got [a] 60 percent increase in African-American unemployment in the inner cities.” Scaramucci’s opposition to the minimum wage matches the stance once espoused by Republican presidential nominee Donald Trump, for whom he serves as a prominent fundraiser. Trump claimed during the GOP primary that “wages [are] too high” when asked to offer his opinion on raising the minimum wage.

    This last-ditch effort follows an October 28 report from the conservative American Action Forum (AAF) that claimed raising wages in these four states would cost 290,000 jobs. The AAF claim was picked up by both the The Washington Examiner and The Washington Free Beacon. But AAF based its models on a 2015 study by economists Jonathan Meer and Jeremy West that did not actually predict hard job losses. According to the August 2015 study by Meer and West, raising the minimum wage could lead to a reduction in potential job growth but would not lead to "an immediate drop in relative employment levels."

    Counter to right-wing media claims that raising the minimum wage hurts workers, researchers at the Massachusetts Budget and Policy Center found states that raised the minimum wage saw stronger low-wage earnings gains than states that did not raise wages. The right-wing media myth that raising the minimum wage kills jobs has been debunked by studies that found increasing the minimum wage to have a negligible effect on low-wage employment. Researchers at Cornell University found that over the past 20 years, raising the regular and tipped minimum wage for workers in the restaurant and hospitality industries has "not had large or reliable effects" on the number of people working in those industries. Researchers at the University of California, in a March 2015 report for Los Angeles on how a $15.25 minimum wage would affect that metro area, actually found “employment changes" would be "quite small when compared to projected job growth of 2.5 percent a year in the city," and it estimated that the cumulative effect would be an increase of “5,262 jobs by 2019 at the county level.”

    Right-wing media have a history of attacking the minimum wage, giving business executives a platform to push myths about the minimum wage and bemoan the labor victories of workers. Despite the onslaught of misinformation about minimum wages, a majority of Americans support raising the minimum wage and appear to be rejecting right-wing media myths.

  • What Media Need To Know About Mike Pence’s Economic Record

    ››› ››› ALEX MORASH

    Republican vice presidential nominee Gov. Mike Pence and Democratic vice presidential nominee Sen. Tim Kaine (D-VA) will face off on October 4 in a debate at Longwood University in Farmville, VA. As media outlets prepare for the only vice presidential debate of the 2016 election, they should have all facts about how Indiana really fared during Pence’s governorship.

  • Two New Reports On LGBT Poverty Shatter Media Myth Of LGBT Affluence

    Blog ››› ››› ALEX MORASH

    Contrary to media misperceptions of lesbian, gay, bisexual and transgender (LGBT) affluence, two new reports by the Williams Institute and Center for American Progress show the LGBT community continues to face higher rates of poverty, low wages, and economic insecurity than non-LGBT people.

    The Williams Institute, an LGBT think tank at the University of California, Los Angeles (UCLA), released its findings “that poverty remains a significant problem for LGBT people” in a report on September 13. The study found that raising the minimum wage to $15 per hour would dramatically cut the poverty rate for same-sex couples -- a 46 percent drop for lesbian couples and a 35 percent decline for gay male couples. The author, economist M.V. Lee Badgett, noted that the study showed that the notion that the entire LGBT community is wealthy is nothing more than “a misleading stereotype” and that “raising the minimum wage would help everybody.” From the Williams Institute:

    The Williams study follows a September 8 report from the Center for American Progress (CAP) that focused on the significant barriers that LGBT people face in accessing middle-class economic security. The study analyzes how anti-LGBT discrimination in employment and housing creates major hurdles for economic security, contributing to wage gaps faced by the LGBT community. CAP reported that up to 28 percent of lesbian, gay, and bisexual Americans have been fired, not hired, or passed over for a promotion as a result of their orientation. As many as 47 percent of transgender Americans have experienced an adverse job outcome, such as “being fired, not hired, or denied a promotion” because of their gender identity, according to the report. CAP also noted that “LGBT people often struggle to find stable, affordable housing” and experience disparately higher out-of-pocket health care costs, which compounds the impact of economic insecurity experienced by LGBT people and their families.

    Media frequently focus on the buying power and affluence of the LGBT community, and on companies that eagerly court the “pink dollar.” On July 20, when one marking firm -- Witeck Communications -- published its findings that LGBT American buying power reached $917 billion in 2015, it was picked up by Bloomberg, The Huffington Post, CNBC, and USA Today. While another study quoted by Business Insider claimed LGBT Americans take “16% more shopping trips” and have more disposable income than their straight counterparts -- claims echoed by a Nielsen study published in the National Journal in 2015.

    Gary Gates of the Williams Institute told The Atlantic in 2014 that the downside of this media-created perception “is that those marketing studies looked at the LGBT community as a consumer market” and may only be seeing LGBT Americans who are in an economically secure enough situation to come out. Marketing studies don’t show that LGBT individuals face higher rates of poverty than their non-LGBT counterparts, or that 29 percent of LGBT Americans have experienced food insecurity in the last year. Right-wing media use the myth of LGBT affluence to dismiss LGBT discrimination and claim laws protecting the LGBT community are not needed. Currently, there is no federal law that protects people from being fired because of their sexual orientation or gender identity. CAP concluded its reporting by noting that the best way to address LGBT economic insecurity would be the passage of a broad-based federal nondiscrimination law called The Equality Act -- which would prohibit discrimination based on sexual orientation and gender identity in public accommodations, employment, and housing.

  • STUDY: Networks Focus Less On Poverty As Coverage Of Inequality Drops

    PBS Sets Itself Apart From Broadcast Outlets On Inequality And Poverty, Fox News Remains Major Source Of Misleading Coverage

    ››› ››› CRAIG HARRINGTON

    In the second quarter of 2016, prime-time and evening weekday news programs on the largest broadcast and cable outlets dedicated significantly less time to economic inequality and poverty than they had in the first quarter of the year. The weekday drop-off was led by CNN and MSNBC, which dramatically reduced their programming on inequality. PBS remained the gold standard among broadcast outlets in terms of covering inequality and poverty, while Fox News remained a prevalent source of misinformation on the same topics.