The Wall Street Journal

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  • The Worst Economist In The World Says Trump's Tax Cuts Will Do The Impossible

    Why Does CNN Even Give Stephen Moore A Platform?

    Blog ››› ››› ALEX MORASH

    In response to reports that President Donald Trump would unveil a plan to reduce the corporate income tax rate from 35 to 15 percent, discredited economic pundit Stephen Moore rushed to praise the budget busting corporate giveaway while misleadingly claiming that the tax cuts will help pay for themselves by boosting economic activity.

    On April 24, The Wall Street Journal reported that Trump would release a tax plan on Wednesday focused on cutting the maximum statutory corporate tax rate from 35 to 15 percent -- a 20 percent cut the White House is demanding regardless of the implications it would have for the federal budget deficit. The Journal also reported that Treasury Secretary Steve Mnuchin made the unfounded claim that the tax cut will “pay for itself with economic growth.”

    Economist Jared Bernstein, a senior fellow at the Center on Budget and Policy Priorities and who served as economic adviser to former Vice President Joe Biden, called the assertion that Trump’s tax cut would pay for itself “empirically phony” and argued that there is no correlation between cutting taxes and boosting economic growth. Nobel Prize-winning economist and New York Times columnist Paul Krugman derisively referred to Trump’s trickle-down economic agenda as “voodoo economics” and laid out examples of tax cuts failing to generate growth under previous administrations. Krugman also noted that former presidents Bill Clinton and Barack Obama both raised taxes in order to generate sustainable new tax revenues without undermining the growing economy. He concluded by saying that the extreme cuts Trump would propose is the same “voodoo” Republicans have promoted for decades “with extra bad math.”

    On April 25, the conservative-leaning Tax Foundation posted an analysis of the Trump administration’s claims that the tax cut would pay for itself, concluding that the economy could not grow enough to offset the losses in revenue. According to the Tax Foundation’s charitable analysis, cutting corporate tax rates to just 15 percent would stoke economic growth by less than half as much as would be needed to make up for lost revenue and result in long-term deficit increase of at least hundreds of billions of dollars. Those conclusions follow an earlier analysis of Trump’s corporate tax proposal by the nonpartisan Tax Policy Center, which on October 18 found that Trump’s corporate tax agenda alone would reduce federal revenue by $207.6 billion in 2018 and by roughly $2.4 trillion over ten years.

    The idea that tax cuts pay for themselves has been thoroughly debunked by years of research. Yet Moore heaped praise on Trump’s plan while parroting unfounded claims that it would grow the economy and benefit all Americans. On the April 25 edition of CNN’s New Day, Moore pushed Trump’s tax plan claiming it would create a “feedback effect” leading to growth. Moore also published an op-ed in The Wall Street Journal that day promoting the plan while claiming Trump’s tax agenda would help the American economy reach the arbitrary and unrealistic 3 percent annual growth target so-cherished by conservative pundits. On the April 26 edition of New Day, Moore continued his push for the tax cuts only to be debunked by economist and former Obama economic adviser Jason Furman, who reminded Moore that “this plan would actually hurt our economic growth” by adding trillions of dollars to the federal debt reducing long-term economic growth:

    Ever since CNN hired Moore, he has harmed the network’s credibility by spewing lies about the economy while peddling whatever policies are being pushed by the Trump administration. He routinely peddles partisan economic misinformation while being debunked by more reliable experts and his only purpose at the network seems to be recycling right-wing media talking points.

  • Will Bret Stephens' Climate Denial Threaten The Integrity Of The NYT Opinion Section?

    The NY Times’ Climate Denial-Free Opinion Section Is Unique Among Major Newspapers, But Bret Stephens Could Change That

    Blog ››› ››› KEVIN KALHOEFER

    A Media Matters study conducted last year found that over a year-and-a-half period, The New York Times was the only one of four top U.S. newspapers that did not publish climate science denial and misinformation about climate change in its opinion pages. But the paper’s recent hire of Wall Street Journal columnist and climate denier Bret Stephens may tarnish the Times’ otherwise stellar record when it comes to covering climate change.

    On April 12, the Times announced that it was hiring Stephens as its newest columnist. The paper’s editorial page editor defended the decision, saying characterizations of Stephens as a climate denialist were “unfair” because “millions of people” agree with him (an argument that has rightly been criticized for presenting a false equivalency on the reality of climate change). In a statement to The Huffington Post regarding his hiring, Stephens described himself as “climate agnostic,” adding that it “seems to be the case” that “man-made carbon emissions” are “probably largely” causing the earth to warm (an understatement given that the overwhelming majority of climate scientists say human activity is the primary cause of global warming).

    But Stephens’ attempt to cast himself as occupying some sort of middle ground on climate change belies his lengthy record of outright climate denial in The Wall Street Journal, where he often made extreme comments about climate change, calling it a “sick-souled religion,” comparing those who accept and are concerned about global warming to “closet Stalinists,” and declaring in 2010 that “global warming is dead.” Stephens has also promoted the myth that climate scientists predicted global cooling in the 1970s and cited fiction writer Michael Crichton to discount the scientific consensus on global warming. And as recently as 2015, Stephens dismissed climate change as an “imaginary enemy.”

    Stephens’ hiring is especially worrying considering that a Media Matters study examining the opinion pages of four national newspapers -- the Times, the Journal, The Washington Post, and USA Today -- found that the Times was the only one that avoided publishing climate science denial in its opinion pages. Notably, for the newspaper with the next-lowest amount of climate science denial, The Washington Post, all three instances of denial came from a single columnist: George Will.

    In addition to tarring the Times’ opinion pages, the paper’s hiring of Stephens could also mar the The New York Times’ stellar climate coverage. The Times has provided readers with explainers on the position of 2016 presidential candidates and current administration and elected officials on climate change, employed visual storytelling to detail on-the-ground climate impacts, chronicled local responses to climate change, and conducted an in-depth investigation of the troubled Kemper project in Mississippi to build a first-of-its-kind “clean coal” power plant.

    Just this week, the New York Times magazine devoted an issue to climate change that covered topics such as geoengineering, climate change-induced migration in regions around the world, the threat rising sea levels pose for coastal properties, and an increase in “the potential for viruses like Zika” due to climate change.

    And at a time where broadcast network coverage of climate change is seeing a drastic decline, the Times has been expanding its climate team. While announcing that Hannah Fairfield was joining the paper as the new climate editor in January, Times editors wrote, “No topic is more vital than climate change. … With Hannah’s appointment, we aim to build on what has already been dominant coverage of climate change and to establish The Times as a guide to readers on this most important issue.”

    Let’s just hope that Bret Stephens’ “agnosticism” doesn’t misguide those very same readers. 

  • From The Iraq War To Climate Change To Sexual Assault, NY Times' New Op-Ed Columnist, Bret Stephens, Is A Serial Misinformer

    ››› ››› MEDIA MATTERS STAFF

    The New York Times hired Wall Street Journal deputy editor Bret Stephens as its newest opinion columnist, claiming he “will bring a new perspective to bear on the news.” Stephens has a long history of promoting misinformation, including on climate science, foreign policy, and sexual assault.

  • Journalists, Experts Agree Trump's Tax Reform Agenda Will Be Even Harder Than Repealing Obamacare

    ››› ››› ALEX MORASH & CRAIG HARRINGTON

    After President Donald Trump and Speaker of the House Paul Ryan (R-WI) failed to garner enough support to pass legislation that would repeal and replace the Affordable Care Act (ACA), Trump declared he had moved on to refocus his legislative priorities on tax reform. In light of Trump’s inability to get the Republican-led Congress to vote with him on health care changes, which had been a major campaign promise of virtually every elected GOP official, journalists and experts are beginning to question if Trump is capable of wrangling his caucus to tackle substantive conservative tax reform proposals that have been stagnant for decades.

  • Five Things Media Figures Demanded Obama Attorneys General Resign Over That Are Less Serious Than Lying Under Oath

    And Trump’s Chief Of Staff Twice Called For Eric Holder’s Resignation

    ››› ››› ZACHARY PLEAT

    Lawmakers began calling for Attorney General Jeff Sessions’ resignation after news reports published on March 1 revealed that he had spoken to Russia’s ambassador to the United States during the 2016 election, when he was serving as a campaign surrogate for then-candidate Donald Trump. The reports contradict sworn testimony Sessions provided during his confirmation hearing, when he said he “did not have communications with the Russians.” During the Obama administration, conservative media figures and Republicans demanded that his attorneys general resign or be fired for supposed outrages far less damaging than lying to Congress, none of which were criminal in nature, and were in many cases completely phony.

  • Media Respond To White House’s Blacklist; Calls To Join AP, Time, And USA Today

    "The Society Of Professional Journalists Stands By Those News Organizations That Chose Not To Participate In The Briefing"

    ››› ››› MEDIA MATTERS STAFF

    Media are criticizing as "unacceptable" the Trump administration’s blacklisting of outlets from a White House briefing and some are considering joining the boycott of AP, Time Magazine, and USA Today immediately. Unlike those outlets, ABC, CBS, NBC, and Fox News accepted the invitation to join the briefing and attended. 

  • 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.

  • Mainstream Media Echoes Pro-Trump Fringe, Credit Trump For New GM Jobs That Were “Planned For Months”

    ››› ››› BOBBY LEWIS

    General Motors (GM) announced a $1 billion investment in US jobs and factories that it stressed at the time was “part of the normal process” and had “been planned for months.” Nonetheless, several major media outlets gave credit to Trump in either their headlines or first few paragraphs, downplaying that the decision was previously planned. Many pro-Trump outlets earlier did the same or framed the decision entirely as a Trump-influenced effort, some by referencing a tweet Trump wrote in early January in which he threatened a “big border tax” if GM sells Mexican-made cars in the United States.

  • Wall Street Journal Invents Reasons For Trump To Gut Consumer Financial Protection Bureau

    Will Right-Wing Media’s Campaign To Destroy The Consumer Watchdog Succeed Under Trump?

    Blog ››› ››› ALEX MORASH

    The Wall Street Journal’s editorial board joined Republican senators in urging the president-elect to fire the director of the Consumer Financial Protection Bureau (CFPB), Richard Cordray, for “a menu of reasons” ranging from the agency’s crackdown on racial prejudice in auto loans to the cost of building renovations.

    The CFPB was set up in the wake of the financial crisis as part of a new regulatory network constructed by the Dodd-Frank Act and has been a target of conservative media misinformation ever since, most of which has focused on the agency’s supposed overreach in protecting American consumers from predatory corporate behavior. The Journal’s editorial on January 9 calling on Donald Trump to fire Cordray “for cause” after Trump assumes the presidency followed calls for Cordray’s termination by Republican Sens. Mike Lee (R-UT) and Ben Sasse (R-NE). Among the reasons the Journal claimed as justification for Cordray’s termination was the CFPB’s allegedly poor handling of anti-discrimination regulations, its supposed failure to comply with Freedom of Information Act (FOIA) requests, and reports of racial and gender discrimination from CFPB employees. From The Wall Street Journal:

    Meantime, Mr. Trump should fire Mr. Cordray for cause, and the President-elect has a menu of reasons. Take a CFPB auto-loan campaign, which involved guessing the race of a borrower by his last name, and then suing banks that seemed to offer better deals to people the government assumed are white. A House Financial Services Committee report detailed how Mr. Cordray and senior officers knew their statistical method was “prone to significant error” but hid that reality from the public.

    Mr. Cordray’s bureau routinely fails to show the reasoning behind its rules. In December the Cause of Action Institute filed a lawsuit against CFPB for refusing to produce more than 1,800 pages of documents on how the agency came up with a regulation on arbitration. Such disclosures are required by the Freedom of Information Act.

    [...]

    An investigation of CFPB employment practices by the Government Accountability Office found that a quarter of black, Asian and female respondents reported that they had been discriminated against. About 10% claimed to have personally observed retaliation against another employee. The bureau neglected to fulfill seven Inspector General recommendations in this area. Mr. Cordray also stood by while a CFPB office renovation notched more than $100 million in cost overruns.

    The Journal’s supposed evidence that the CFPB is a “lawless and unprofessional agency [that] deserves a dose of political accountability” does not hold up to scrutiny.

    The Journal has attacked the CFPB before for standing up to discrimination in auto lending after the agency drafted new guidance on interest rate markups and facilitated compensation for American consumers who had been the targets of discrimination. In November 2015, the Center for Responsible Lending concluded that the CFPB’s regulatory changes had the added benefit of saving all consumers money. The Journal's complaint that CFPB is not forthcoming enough with FOIA requests specifically cites a lawsuit from Cause of Action, a Koch-funded front group. The editorial’s allegation of rampant discrimination at the agency also ignored that it was the CFPB that initiated a self-assessment of its employee evaluations, as part of the “standards for equal employment opportunity” mandated by Dodd-Frank, and the Government Accountability Office (GAO) report alluded to by the Journal actually found that the agency “has worked to strengthen personnel management practices and enhance its diversity and inclusion efforts.” Even the Journal’s accusation of mismanagement and cost overruns in the agency’s office renovation falls flat: The Federal Reserve Inspector General found that “construction costs appear reasonable” and that the agency’s building “costs are below the amount previously budgeted.”

    While the editorial attacked the CFPB, and Cordray, for problems that the agency took steps to fix years ago, it completely ignored the agency’s successes. According to a December 2, 2015, article in The New York Times, the CFPB has “seized upon its mission” to rein in abuses in financial services under Cordray, including cracking down on predatory for-profit colleges, arranging forgiveness of $480 million of student loans, and ordering the reimbursement of nearly $700 million to Citigroup customers swindled by illegal credit charges. Since its inception, the agency had “provided for $11 billion in relief for over 25 million customers,” according to the Times.

    The demands for Cordray’s termination mark the culmination of a years-long conservative campaign to undermine the agency. As New York magazine pointed out in a December 29 article, Cordray will be “one of the few adversaries of Wall Street” left after Republicans assume control of the federal government, and for conservatives, “Cordray’s success at enacting new regulations is a bug, not a feature.”

  • The Media Keep Failing To Publish Accurate Headlines About Trump: An Updated List

    ››› ››› MEDIA MATTERS STAFF

    Before and since the election, media outlets have repeatedly failed to write headlines that adequately contextualize President Donald Trump’s lies. Simply echoing his statements normalizes his behavior and can spread disinformation, particularly given the high proportion of people who read only headlines. Below is an ongoing list documenting the media’s failure to contextualize Trump’s actions in headlines and sometimes on social media. Some of the initial versions were subsequently altered (and these are marked with an asterisk), but many of the updates still failed to adequately contextualize Trump’s remarks.

  • Trump Administration Echoes Right-Wing Media Claims That Intelligence Agencies Are Politicized

    ››› ››› MEDIA MATTERS STAFF

    The Wall Street Journal reported Donald Trump plans to “restructure and pare back” the Office of the Director of National Intelligence due to his belief it has become “bloated and politicized.” Trump’s belief that the DNI has become politicized echoes right-wing media conspiracies attempting to delegitimize intelligence reports that found Russian government directed compromises of emails during the 2016 election cycle.

  • Headlines Tout Trump’s False Claim That Intel Briefing “Was Delayed,” Omitting Intelligence Community’s Pushback

    ››› ››› NICK FERNANDEZ

    Multiple outlets pushed President-elect Donald Trump’s false claim on Tuesday, January 3, that an intelligence briefing had been “delayed until Friday” because officials “needed” extra time “to build a case” regarding Russian meddling in the 2016 election. While some outlets noted in their headlines that intelligence officials have said that there was never a briefing scheduled for January 3, many others simply framed their headlines around Trump’s false claim that the briefing had been “delayed.”