Whether you are a Starbucks patron or not, no doubt you've heard that the Seattle-based coffee chain plans to close 600 "underperforming" stores and cut about seven percent of its workforce.
Job loss is certainly not something to cheer about, yet Reuters found a unique story to tell on July 6, 2008. No, this wasn't the sad tale of roughly 12,000 soon-to-be unemployed baristas. It was a morbid report about coffee snobs who take "grim delight in Starbucks woes."
Reuters' unbalanced report quoted eight critics of the global coffee seller, including those who are "happy" about the store closures.
"I'm so happy. I'm so not a Starbucks person,' said Melinda Vegliotti, sipping iced coffee at the Irving Farm Coffee House in New York. 'I believe in supporting small businesses. Starbucks, bye-bye,'" she told Reuters.
Only one "defender" of Starbucks was included in that story, and the meager praise he offered was that it is "convenient."
Dan Gainor, Vice President for the Business & Media Institute, blamed part of people's gloomy perception of the economy on the "constant drumbeat" of negativity coming from the news media. Gainor appeared on Fox Business Network's "Cavuto" May 20.
"Almost 23 million people watch evening news every night. That has an affect and that's almost 1/10 of the American population. Those are people who are shoppers, who are buyers. It affects people and just the constant drumbeat of negativity here from the mainstream media affects people even at high incomes," said Gainor.
The show's host Neil Cavuto seemed to agree, "If this continues and this perception becomes reality, we've got hell to pay to here."
When it comes to the economy, "it's not good. Not good," according to Jon Stewart. "But don't take my word for it. Seriously, I'm actually doing very well."
On May 1, "The Daily Show" host was introducing a segment that made light of doom-and-gloom economic reporting on network and cable news. His mash-up highlighted CBS's own "Grim Reaper," Anthony Mason, ABC's Betsy Stark, NBC's Brian Williams and CNN's senior business correspondent Ali Velshi.
Stewart poked hardest at Velshi, whom he called that "Hairless Prophet of Doom."
"Who is that hairless prophet of doom and how can we appease his anger, please?" Stewart pleaded, "If we give you our hair will you give us back our money? Will you do it, sir? I beg of you - Velshi!"
Robert F. Kennedy Jr. wants to ‘abolish’ carbon usage and sees a direct comparison to the end of slavery.
According to Kennedy, “industry and government warnings” about avoiding “economic ruin” should not be heeded because abolishing slavery did not cripple the British economy as was predicted “Instead of collapsing, as slavery’s proponents had predicted, Britain’s economy accelerated,” he argued. Here's how he put it:
CNN's senior business correspondent Ali Velshi had an interesting question for viewers this morning.
Before telling viewers that consumer confidence is at the lowest level in two years, Velshi asked if the media have anything to do with it.
"Do you think we're feeding this thing? Do you think we're fueling this sort of misery?" asked Velshi on "American Morning" November 28.
A question for Newsbusters readers: How would you answer Velshi's question?
The Business & Media Institute has found that the media certainly don't reinforce the soundness of the economy when things are going well. BMI's "Bad News Bears" study that looked at one year of reporting, found that 62 percent of network (ABC, CBS, NBC) economic stories focused on negative news. Those stories were also given more airtime.
Other BMI research has shown that the media have emphasized the possibility of recession since the economic recovery began in August 2003.
In order to make food choices for her constituents, Perry wants to ban new fast-food restaurants from opening in the South L.A. district for at least a year.
CNN's Dr. Sanjay Gupta ate up the plan for regulatory meddling saying on "American Morning" November 16, "[A]lthough obesity may not be eliminated entirely, studies show zoning laws are a good first step to fighting the problem."
Christmas is still nearly seven weeks away, and already the media are offering a “Bah, Humbug” for retail sales and the U.S. economy.
CNN shoveled coal at the positive economic news on November 2 and immediately moved into full Grinch mode.
“You know, just earlier this week the broadest measure of the economy, Kyra, the GDP, came in at 3.9 percent, stronger than expected. What’s working against it, though, the financials, concerns that we’re going to have a lot more carnage coming from that very important sector, consumer spending …” said “Newsroom” correspondent Susan Lisovicz.
On September 24 of this year, Alexis Christoforous of “CBS Morning News” warned, “It could be a blue Christmas for many of the nation’s retailers.”
Well, viewers are in for a treat on NBC this coming week. Okay, maybe not.
NBC is taking a “green” gamble to boost sagging ratings as sweeps month begins, by weaving environmental plotlines throughout its programming lineup including many primetime shows throughout “Green Week,” November 4-9.
Eco-programming will kickoff, literally, as “Football Night in America” goes dark for the final minute on November 4. Yes, because turning off those studio lights for one minute will somehow remedy the stadium lights that will burn brightly over the Dallas Cowboys and Philadelphia Eagles game for the next three hours.
Like the latest runway trend, "green is the new black" according to the media. At least where business is concerned. But it turns out that companies are finding "going green" is an easy way to put themselves in the red.
Back in 2003 FedEx announced it would begin switching to hybrid trucks and won an award from the Environmental Protection Agency, but at $70,000 more per truck the costs got in the way. Four years later, the company has fewer than 100 hybrid trucks, according to the October 29 BusinessWeek.
Other companies like PepsiCo and Caterpillar could face problems with the bottom line because of their support for more government regulation, said Steve Milloy on CNBC's "Street Signs" October 12.
This week marks the unhappy milestone of Black Monday for Wall Street, which had some journalists warning “it could” happen again. Even if it doesn’t, the media hammered home the prospect of a possible recession.
The Dow Jones Industrial Average nosedived Oct. 19, 1987, when panicked selling cost investors 22.6 percent in one day of panicked selling. But do investors in 2007 need to be worried about another crash?
According to the media's parade of children who need government assistance for insurance, President Bush must really just hate children. After all, he vetoed a bill today that would have expanded the State Children's Health Insurance Program (SCHIP).
Leading up to the October 3 veto, the media couldn’t resist scripting it as a vote against children.
What’s at stake, though, included a proposed $35-billion expansion of taxpayer-funded insurance made possible by a huge tax increase on tobacco users many of whom are poor -- burdening the same families the program is designed to help.
"Good Morning America" asked "What is going on?" with the stock market on August 16. Anchor Chris Cuomo asked Bianna Golodryga if the market drop is a correction or a recession.
"There seem to be two schools of thought here, those involved in all this sophisticated mortgage lending are saying this is the beginning of the end. But stock analysts are saying it is just a correction. Where are people's heads down there today?" said Cuomo
An on-screen graphic read, "Very Nervy Wall Street Correction Or Recession?"
CNBC’s Jim Cramer went on an impassioned rant August 6 calling for the Fed to reduce interest rates.
“Bernanke needs to open the discount window. That is how bad things are out there … in the fixed income markets we have Armageddon,” said Cramer on “Stop Trading!” Following Cramers’ rant, NBC brought him on “Today” to analyze the economy August 10.
NBC’s Meredith Vieira asked “Are the markets about to crash?” on the August 10 “Today” show.
“Crashing” stock market? “Legalized gambling”? ABC’s “Good Morning America” berated the stock market for trampling on a supposed individual right to a mortgage.
Chris Cuomo’s August 13 story on a couple who had their mortgage pulled due the recent “drama on Wall Street” started like this:
“To a certain extent the stock market has always been a form of legalized gambling, where Wall Street tries to cash in on bets made on the right companies. But for many financial institutions, the chips were the mortgages of hard-working American families, in danger of losing their homes, or now never getting a chance to live the American dream.”
Sen. Edward Kennedy (D-Mass.) earned the scorn of "The Daily Show" on August 7. Show reporter Jason Jones mocked the senator's opposition to a wind farm off Nantucket Sound.
With typical "Daily Show" sarcasm and melodrama Jones remarked:
"It looked bad for the native population, until one man stood up ... Yes. Ted Kennedy – noted man from Nantucket and co-sponsor of dozens of renewable energy bills – took a stand—against the wind farms."
Okay, we’ve all heard that hybrid vehicles are better for the environment. But how do they measure up when it comes to the green in your wallet?
Even starlet Paris Hilton has boarded the hybrid bandwagon, as reported by BPM Magazine.
“I came in a hybrid car because I think that’s the way to go – to save energy and to save our earth from all this – you know pollution so I think if everyone just takes the steps to do it will make a difference,” said Hilton.
However, Hilton probably wouldn’t be as concerned about the cost of owning one of these hybrids as average people. But you wouldn’t be aware of any higher costs after reading Chris Woodyard’s August 8 USA Today story.
“It’s not just good public relations,” wrote Woodyard. “Since the Supreme Court ruled earlier this year that the EPA can regulate greenhouse gases, General Motors, Ford Motor and Chrysler have joined the U.S. Climate Action Partnership, a coalition of corporate executives calling for CO2 restrictions.”
It would be even better public relations if hybrids made economic sense, but they don’t. It turns out hybrids cost more to maintain than regular cars.
Inflation? Forget about it. Let the economists and policy wonks worry about it.
The Federal Reserve’s decision not to drop interest rates drew the ire of “CBS Evening News” correspondent Kelly Wallace on August 7. Wallace’s story about the “credit crunch” centered on Amanda Michalko, a 26-year old Michigan resident, who would not benefit from lower monthly payments on her pending mortgage because of the Fed.
As six miners are trapped in a collapsed coal mine ABC “World News Tonight with Charles Gibson” took it the opportunity to kick the coal industry while it was down – but this time in the name of global warming.
“The criticism of coal is that it’s a dirty energy source. Although many of the pollutants are being scrubbed out – it’s still high in carbon, the greenhouse gas blamed for global warming. The industry is promising some new expensive technology to remove that carbon.” said ABC correspondent David Kerley on August 8
Diane Sawyer kicked "Good Morning America" off this morning with economic worries about Wall Street, the "credit crunch" and "record" foreclosures.
“We do begin with the week on Wall Street, where the Dow took another huge hit, plunging 280 points in just two hours. The cause of the worst credit crunch in almost quarter a century and you’ve seen it in the neighborhoods – a record number of foreclosures,” said Sawyer.
But according to the Mortgage Bankers Association (MBAA), foreclosures are not at a record when viewed by percentage. GMA’s one-sided talk of a “record number of foreclosures” misled viewers. Foreclosures are up compared to 2006, but so are the number of home loans.
Robin Hood would be proud of the Washington Post’s perverted view of capital gains taxation. If the newspaper has its way, he wouldn’t have to steal from the rich to give to the poor. The government would be doing it for him.
Calling it the “most controversial tax break on Wall Street,” the Post promoted the idea of wrongdoing:
“[It] is not authorized by any law and was never approved by Congress,” wrote the Post.
Our TV network media personalities really want you to believe they can relate to the average American. After all, when you’re a high-minded soldier fighting on the side of the proletariat, it’s important to be a victim of the economic injustices you bring to light, right?
Not so fast. It turns out some of the most prominent journalists are doing quite well, according to the July 26 TV Guide. Early this year, a Business & Media Institute report exposed the “income inequality” talking points of the news media. Some journalists continue to attack the wealthy and complain about the downtrodden “middle-class” despite their own $3, $8 and $15 million salaries.
“NBC Nightly News” anchor Brian Williams has been highly critical of CEO compensation, referencing “stratospheric sums some CEOs make” and complaining about “golden parachute[s].”
Good thing “Nightly News” is focusing on global warming solutions or the network might even try to pin that on the housing market.
“Even Toyota sales fell and blamed a weak housing market for a plunge in light truck sales,” said “Nightly News” anchor Brian Williams on August 1. Williams also managed to mention that the DJIA finished up 150 points “despite the fact that the housing and mortgage market are showing even more signs of weakness now.”
According to CNN business reporter Ali Velshi, the relationship between oil and gas prices is difficult to grasp.
"A lot of folks are saying, 'Why have my gas prices come down 17 or 18 cents in the last couple weeks when oil prices are going up?'" said Velshi on the August 1 "American Morning."
Trust me Ali, that's not what I've heard at the pump.
"Well, I hope we've all figured out there's no way, there's no mathematician in the world who can figure out the relationship between gas and oil prices, but you can expect with oil up at 78 bucks a barrel, gas prices will soon follow and that takes things—that takes money out of the pockets of consumers who keep this economy going," he continued.
But Velshi, has not always had such a tough time making sense out of oil and gas economics.
You'd think it was the news media that "got a raise" last week for all the cheering. The federal minimum wage was increased on July 24 by 70 cents to $5.85 an hour and will go up by the same amount in 2008 and 2009.
CNN's Ali Velshi gleefully greeted the change on "American Morning" July 24. He called it "unmitigated good news."
ABC's Claire Shipman also called it "good news for thousands of low-paid workers," on "Good Morning America" the same day.
“News that gasoline prices are falling usually comes with a warning – don’t get used to it,” said “CBS Evening News” anchor Katie Couric. “So consider yourself warned as we tell you gas has fallen 17 cents the past two weeks to a nationwide average tonight of $2.88 a gallon. That is the lowest price in three months.”
That’s right, Katie. When it comes to gasoline prices and the CBS “Evening News,” they’re either high or probably going to get higher.
"Evening News" ignored the initial drop in gasoline prices last week.
It seems the media know why the stock market declined recent. Some journalists are blaming this recent correction in the stock market on widespread credit problems and point to troubles in the housing market as evidence.
“[B]ut nothing is likely to unsettle the markets as much as more credit woes,” said NBC News correspondent Pat Dawson on the July 29 “NBC Nightly News.” “Any additional problems with mortgage defaults or companies trying to borrow and coming up short is likely to send investors running for the exits again.”