It's an extraordinarily clever claim. It gets your attention. It's misleading. And of course, Old Media isn't questioning it.
I am referring to the following statement made by Barack Obama in radio ads currently running in Ohio and Texas:
Some CEOs make more in 10 minutes than some American workers make in a year.
In the full context of the ad, I believe that what Obama wants listeners to take away is that "Quite a few CEOs typically, year after year, make more in 10 minutes than some American workers make in a year."
But let's limit things to the literal wording. Start with a full-time minimum-wage worker who earns (rounded) $12,000 annually ($5.85 per hour times 2,080 hours is a bit more than that). How much would a CEO have to make in a year to be earning over $12,000 every 10 minutes?
During the four weeks preceding February 20, New York Times Company stock had been staging a nice comeback.
Lord only knows that the company's long-suffering shareholders, who before then had seen the share price drop more than 70% since June 2002, a point in time that roughly coincides with the onset of the Old Gray Lady's seemingly intractable case of Bush Derangement Syndrome, welcomed any kind of reversal of fortune.
For a while, they had it. From a intra-day low of $14.01 on January 23, the stock rose over 50%, closing at $21.07 last Wednesday.
But on Thursday and Friday, that climb was halted abruptly, and partially reversed. While the Dow Jones Industrial Average lost 0.4% in those two days, and the S&P 500 dipped 0.5%, NYT stock dove almost 9.7%, closing Friday at $19.03.
Steven Pearlstein, a one-time reporter for the Post who now pens a column for the newspaper, wrote February 20 that “the best thing that could happen to our economy is for a dozen high-profile hedge funds to collapse; for investment banking to enter a long, deep freeze; for a major bank to fail; and for the price of a typical Park Avenue duplex to fall by 30 percent.”
“For only then,” Pearlstein wrote, “might we finally stop genuflecting before the altar of unregulated financial markets and insist that Wall Street serve the interest of Main Street, rather than the other way around.”
He didn’t explain how hedge funds collapsing or banks failing would help Americans. Instead, he opted to cheer for a situation that would see millions of people suffer, admitting his was a “harsh and vengeful solution, and there will be lots of collateral damage.”
"But airline mergers have traditionally meant job losses, especially in the airlines' hub cities, as well as fewer flight options for passengers in smaller cities and higher ticket prices," NBC correspondent Tom Costello said. "In Atlanta, we found frequent travelers fearing that's exactly what could happen."
Yesterday, the Associated Press, in its ongoing campaign to make sure that readers get and stay downbeat about the economy, made sure that its story on January's retail sales had can't-miss gloom and doom in it:
Retail sales posted a surprising rebound in January following a dismal December, although much of the strength reflected rising gasoline prices. Economists saw the increase as a temporary blip rather than a sustained recovery.
..... The Commerce Department reported Wednesday that retail sales rose by 0.3 percent last month after having fallen by 0.4 percent in December.
What does Sen. Barack Obama (D-Ill.) and the February 12 "Potomac Primary" have to do with a BlackBerry outage? Beats me, but apparently Reuters writer Wojtek Dabrowski found a way to work the presidential candidate's campaign staff into his Toronto-datelined February 12 story, "RIM reports 'critical' BlackBerry outage.'
RIM's worldwide subscriber base reached about 12 million people by late last year, mainly executives, politicians, lawyers and other professionals who rely on the BlackBerry to send secure e-mails. Sleeker new models are also catching on with students and others outside professional circles.
Jen Psaki, a spokeswoman for Democratic presidential hopeful Barack Obama, said, "While the outage did confirm our widespread addiction to BlackBerry service, fortunately it did not cause more than a temporary inconvenience."
In an appearance on the Fox Business Network February 8, Business & Media Institute Vice President Dan Gainor criticized the media's refusal to fully report the costs associated with campaign promises being made by presidential candidates.
"You would actually think the media had talked about how much it's going to cost," Gainor said of the hundreds of billions of dollars in new spending promised by the candidates. "And in fact it's quite the opposite."
Aside from some coverage of Sen. Hillary Clinton's massive universal health care coverage proposal, much of her $217 billion in promises has gone unreported. The same goes for Sen. Barack Obama, who leads all candidates with $287 billion in new proposals, according to estimates from the National Taxpayers Union Foundation.
"[T]here's a system out there where basically what happens is the government makes some assumptions about how many jobs are created or lost every month," Burnett explained. "How many businesses are created - they can't check it every single month, so they have to make some assumptions. It turns out if you look out over history they always do the ‘businesses dying estimate' in the month of January - as a matter of fact, always in the month of January."
♪♫ ♪ Say, say, one, nine, three, zero, party over, oops, out of time! So tonight I'm gonna party like it's 1929! ♪♫ ♪
It's the kind of rhetoric legislators in Congress were probably hearing following the economic downturn that occurred in 1929, which instigated the infamous Smoot-Hawley Tariff Act of 1930 that sent U.S. tariff rates sky high. That is, the February 11 issue of BusinessWeek, showing all the disadvantages of free trade for the United States and ignoring the advantages.
An article, "Economists Rethink Free Trade," by BusinessWeek Washington Bureau Chief Jane Sasseen ignored the benefits of free trade and the consequences of enacting anti-free trade policies.
Business & Media Institute Director Dan Gainor appeared on the Fox Business Network January 31 to discuss reasons why The New York Times Company (NYSE: NYT) revenue numbers decreased recently - saying that its product is the problem.
"People have lost confidence in the media according to most studies...Most Americans understand that the...mainstream media are overwhelmingly liberal, overwhelming out of touch with a lot of their issues," Gainor said.
Gainor cited an instance where the Times was ran a story about veterans being more violent when they come back to the United States - turning "anecdotes into a loosely connected story and when you do that you alienate readers. They're the people that the Times work for. Journalists forget that."
On January 18, Cramer appeared on MSNBC's "Hardball with Chris Matthews" and warned if the government didn't intervene and prevent the failure of two large insurance companies, Ambac and MBIA, the Dow Jones Industrial Average would drop 2,000 points in the upcoming weeks. Cramer isn't talking about that sort of collapse anymore.
"For months I was worried about [MBIA CFO] Chuck Chaplin and MBIA (NYSE:MBI) and ABK [Ambac Financial Group, Inc.] (NYSE:ABK)," Cramer said on the January 31 "Street Signs." "Everyone's worried about it now? Why should I be worried about it? When you have a problem on your hands and everyone's worried knows about it, [New York State Superintendent of Insurance] Eric Dinallo to [President of the Federal Reserve Bank of New York] Tim Geithner, it's done. It's done."
It was supposed to be a bad day in the American stock markets according to CBS's "The Early Show." Guess what - they were wrong.
"Hong Kong's Hang Seng market was down more than 4 percent," Julie Chen said on the January 28 "The Early Show." "Tokyo's Nikkei index off about 4 percent. Wall Street may have a rough morning in advance of President Bush's final State of the Union address tonight. We'll be watching the markets throughout the morning."
Assuming American markets will follow the lead of any other international markets is an iffy proposition, as indicated by the performance on Wall Street today. After the gloomy forecast from "The Early Show" for the day, the Dow Jones Industrial Average (DJIA) finished in positive territory on January 28 - at the highs of the day, up more than 176 points. The NASDAQ and S&P 500 also finished in positive territory, both up more than 23 points.
In a class-warfare driven media, where the "haves" are often pitted against "have-nots," you would think an outgoing CEO giving up $37.5 million in pay would be celebrated.
Not quite. CNN's "American Morning" didn't think it was quite good enough when Countrywide Financial's Angelo Mozilo forfeited $37.5 million in severance pay because he said he felt it was the "right thing to do."
I have referred to Mr. Wesbury's work frequently. That's because he has been, as he is today, a sober voice standing up to Old Media-driven economic hysteria with those stubborn things known as facts.
Wesbury first caught my attention when he expressed alarm in late 2005 that 43% of the country thought we were in a recession -- not about to go into one, actually in one. That same poll metric reads 35% today.
Here are some snips from his Wall Street Journal column today, making a number of points about the current economy, and reminding us that inflation has not been relegated to irrelevancy. He doesn't extensively call out Old Media's gloomy economic coverage, but I don't doubt for a minute that he considers it a major negative factor (bolds are mine):
It is hard to imagine any time in history when such rampant pessimism about the economy has existed with so little evidence of serious trouble.
For personal and professional reasons, it gives me absolutely no pleasure to say that I saw this coming, and that it came sooner than I thought it would.
Here's the news, assembled from wire reports by the Cincinnati Enquirer, in an article that should be entitled "Ford to Workers: Go Away" (bolds are mine throughout) --
Ford Motor Co. will offer buyout and early retirement packages to 54,000 U.S. hourly workers, or 93 percent of its hourly work force, in an effort to cut costs and replace those leaving with lower-paid workers. Thursday's announcement came as Ford said it narrowed its losses in 2007 but warned that the outlook for U.S. sales in 2008 remains grim.
When The Washington Post puts a business closing on the front page, the reader might assume it’s a long-running D.C. chain. But on the front page Thursday, black reporters Hamil Harris and Lonnae O’Neal Parker lamented the demise of the small black bookstore chain Karibu Books, founded in Maryland with a pushcart...in 1993. (The story was headlined "Black Readers Are Jolted By A Chain's Demise.") But the Post reporters didn’t go beyond the black reader reaction. Apparently, the first store to close was in Pentagon City right after Christmas. I wandered into that store out of curiosity during Christmas shopping – and was a little bit shocked. Karibu was stocking anti-white hate.
It's really frightening to imagine that people who get the bulk of their news from Comedy Central's "The Daily Show with Jon Stewart" will be making what they probably think are educated decisions at the ballot box come Election Day.
Stewart, who is now a self-proclaimed economist, said on his January 23 show, "Our economy is tanking." And now you can add financial media critic to Stewart's list of titles.
"For insight, I turned to the two major financial networks to find out what is going on, or as they're known around here, ‘hot ladies talk economy with bald dudes,'" Stewart said.
In a verbal tussle with Fox Business Network host Liz Claman January 24, Business & Media Institute Managing Editor Amy Menefee explained that conservatives are just looking for some balance from the media.
"You get upset when the media is skeptical about certain things and you say that that's un-American," Claman said. "Yet when we're not skeptical you're saying now, ‘Why aren't you skeptical?' Which is it?"
"Well from our perspective ... we just want to hear all the economic sides that are out there which means economists who are talking about, you know, other opportunities, other options," Menefee said about the media coverage of the economic stimulus package. "And there are plenty of economists out there right now who are saying this is not going to do much good."
It remains the Times's most e-mailed story as of Thursday afternoon, so it's no doubt an issue near and dear to the heart of Manhattan's liberal elite gourmands -- who might be just a little less sophisticated (at least in matters of science) than they think they are.
It's quite a sight to behold when media "has-beens" start drinking the doom and gloom Kool-Aid offered up in the media.
Sam Donaldson, who covered the Reagan White House for ABC and who now is a contributor to the network's "This Week with George Stephanopoulos," last night told a gathering in Georgetown that the U.S. economy is going "in the dumper" and criticized the Democratic presidential candidates for not capitalizing on it.
Billionaire investor George Soros called for more government monitoring and involvement in markets in an interview on CNBC January 23.
"Now we really have to reconsider the whole policy, which has been in my opinion misplaced, of relying on the markets to police themselves," Soros told Maria Bartiromo in Davos, Switzerland, "to recognize the risks. And there are risks which it is the job of the authorities to control, and the authorities have abdicated their responsibilities. So did the rating agencies."
Soros slammed the government for "not taking the right steps in dealing with" what he called upset financial markets. "[T]he authorities ought to move into the market makers, look at the books and make sure that the bad risks are recognized and reassure the markets that the main actors, the banks that are too big to fail, will not fail, that they will in fact be bailed out the same way as Northern Rock was bailed out even if that means wiping out the shareholders or greatly reducing their benefits."
It's no longer enough to say the economy is heading into or already is in a recession. Invoking the memory of the Great Depression has become the latest way to dramatize the economic turmoil caused by the credit markets.
Zuckerman told viewers we're heading into uncharted territory with this current credit freeze-up.
"You have the entire banking system now that is virtually frozen. And there are, not just this subprime mortgage thing, there are other things called credit default swaps where they will lose as much money, $250 billion on. The banks are frozen. They are not making loans because they have such huge debts that they have to take on to their balance sheets and nobody knows how to deal with that," he continued.
Of course, Cramer is a regular on NBC's "Today" and "Nightly News" as an expert on the economy. On December 19, Cramer appeared on "Today" and was very critical of Fed Chairman Ben Bernanke for not cutting interest rates more than a quarter point. In another "Today" appearance on January 17, he declared the economy was in a recession, a 180-degree change from his comments earlier in the month when he declared "sunny skies" were ahead for the economy.
American capitalism - it's so great even the Chinese Communist government loves it!
That's sounds like it ought to be a bumper sticker, but the January 16 "NBC Nightly News" advised it is something we should be cautious of.
Foreign investors have been on a buying spree in the U.S. stock markets - as stock prices have fallen with all the skittishness in the wake of the credit crunch.
"So far foreigners buying chunks of Wall Street has not triggered the same political uproar as a Dubai company's ill-fated effort to take over operations of U.S. ports, perhaps because politicians know the alternative could be painful," NBC correspondent Lisa Myers said.
The headline "The Economy Sucks" might be something you'd expect to see in Rolling Stone or on Slate.com, but certainly not in a reputable news magazine, right?
Yet, the January 21 issue of Newsweek defied expectations by using that for part of a headline for a one-sided, pro-Bill Clinton view of the economy. The article recalled the 1992 "It's the economy, stupid!" campaign as it tore down the current economy.
So, why does the economy "suck" according to Newsweek? It isn't that there's a depression looming or that we're in recessionary times, we're just "perilously close to sliding into a recession."
"Today, the nation is perilously close to sliding into a recession; in '92, the economy had already started growing, though a jobless recovery doomed George H.W. Bush's re-election bid anyway," Gross wrote. "The lesson? Voters' perceptions matter more than whether the economy is technically expanding or contracting."