Recession

Nonsense 'Survey' Says Americans 'Struggling in Life'

By Warner Todd Huston | May 13, 2008 - 02:23 ET

How about I ask you if you "feel" like you make enough money each year? Let's say you make $48,000 a year, OK? (That's the median household income in the US) You'll likely tell me, then that you "feel" you need more. Now, from this, can I conclude that you are "struggling in life" as a citizen of the USA? Not if you use actual data instead of "feelings" to determine what "struggling" means and not if you then try to add context to what we all have compared to what others in the world have, of course. But, this is exactly the sort of nonsensical "survey" that Reuters gravely warned us about this week. Without bothering with any statistics or context, Reuters excitedly reported that "Many Americans struggling in life, survey finds", and decided that everyone is downtrodden and filled with "suffering" in the United States today.

But this is just another so-called survey that is reported backwards. It turns out that, even by their unscientific criteria, 49 percent of the Americans they surveyed said that they were "thriving, with few health or money worries." So, why is this reported as if the preponderance of our fellow citizens is claiming to be "struggling"?

Jon Stewart Mocks CNN's Ali Velshi and 'Doom and Gloom' Reporting

By Julia A. Seymour | May 5, 2008 - 10:35 ET

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!"

Velshi responded to Stewart's charge on CNN Friday and in a column on CNN.com.

Bozell Blames Media for Public’s Economic Misconceptions

By Nathan Burchfiel | May 5, 2008 - 09:31 ET

The network news broadcasts are to blame for the American people's widely held misconception that the U.S. economy is in a recession, according to Media Research Center founder and President L. Brent Bozell III.

"How in the world is it that 81 percent of the American people believe that we're in a recession?" Bozell asked on CNBC's "Kudlow and Company" May 2. "Maybe it's because the national networks this year, and we've counted it, have talked about a recession over 500 times."

Dire NBC: Seniors Forced to Live in Van as Golden Years 'Tarnished'

By Brent Baker | May 2, 2008 - 21:09 ET

On the day the government reported a tenth of a point drop in the unemployment rate and two days after news of a second straight quarter of 0.6 percent GDP growth proved the nation is not in a recession, Friday's NBC Nightly News delivered a ridiculously shallow story, based on two anecdotes and a couple of advocates, to prove rising prices are forcing the elderly out of their homes and into vans and soup kitchens. Anchor Brian Williams promised “an interesting look...at the toll that rising prices, of things like gas and food, is taking on Americans living on fixed incomes.” [audio available here]

Chris Jansing [that's her by the van] traveled to Northridge, California, just north of Los Angeles, where she found 82-year-old Betty Weinstein, stunned by a water bill, turning to a second reverse mortgage to stay in her home. But she at least still has a home. Jansing then highlighted an even sadder case:

Rising rents forced Scott and Kate Bishop to move out of this blue house and into their van, sleeping on a mattress in the back.
But it got worse: “And now high food costs have meant, for first time in their lives, the Bishops have gone hungry.” Jansing cited no source for her claims as she asserted: “Soup kitchens and food banks are seeing record numbers of seniors asking for help for the first time in their lives,” but “now donations here are down as middle class donors struggle to feed their own families.

Oops: Employment Numbers Better Than Expected, Unemployment Drops

By Noel Sheppard | May 2, 2008 - 09:20 ET

Despite all the gloom and doom, the employment picture in April was much better than economists had expected, and, maybe more important, quite different than the Hooveresque, Depression Era picture media members have been painting for months.

Makes you wonder if in press rooms all around America, as well as in Democrat campaign headquarters across the fruited plain, there was a huge sigh of disappointment at 8:30 AM EDT when the Labor Department released the data.

Critical updates at end of post including FAR better-than-expected factory orders report!

As such, without further ado, here's the news most people in the nation actually hoping for a good economy will be glad to hear:

Liberal Perception Equals Reality to American Urban Radio's April Ryan

By Ken Shepherd | May 1, 2008 - 15:30 ET

Perception is everything, facts are trivial to April Ryan, judging from two recent comments from American Urban Radio Network's White House correspondent. [audio available here]

At the April 29 Rose Garden press conference, Ryan asked President Bush the following question about the economy:

I talked to [Rep.] James Clyburn [D-S.C.] before this press conference. He said, "As a man thinketh, so are we." And Americans believe we are in a recession. What will it take for you to say those words, that we are in a recession?

Of course the following day, data from the federal government show the U.S. economy in slow economic growth, but far from the six months of negative growth needed for a recession. No matter to Ryan, who today went from applying the "as a man thinketh" logic to a 5-year old liberal media meme about the war in Iraq. Appearing shortly after 11:30 a.m. EDT on MSNBC to discuss the 2008 presidential race, Ryan parroted liberal talking points on the Iraq war:

AP Disgrace: 'Bruised Economy Grows by Only 0.6 Percent'

By Noel Sheppard | April 30, 2008 - 09:47 ET

The Associated Press's Jeannine Aversa really should change her writing focus, because economics is clearly not her specialty.

After telling readers in March that "Dangerous cracks in the nation's job market" are "ominous signs that the country is falling toward a recession or has already toppled into one," Aversa had the gall to report Wednesday, "The bruised economy limped through the first quarter of this year at a six-tenths of a percentage point growth rate as housing and credit problems forced people and businesses alike to hunker down."

Are you joking? You, your wire service, and virtually every media outlet in the nation have been telling Americans that we're already in a recession. A government report comes out saying that we're not, and this is how you begin your article covering the surprising announcement?

How disgraceful. Sadly, that was just the beginning (emphasis added, h/t NB reader PunditDotCom):

LiveBlog: Bush Press Conference on the Economy

By Ken Shepherd | April 29, 2008 - 10:31 ET

President Bush is holding a press conference on the U.S. economy. I'll be blogging the questions to the president below.

Video of Bush/Raddatz clash here (audio available here).

Video of Stolberg and Ryan on recession here (audio here)

My bottom line analysis (11:25): The two R's of bias from this Rose Garden presser: Martha Raddatz on Syria and numerous reporters on the dreaded R-word, recession. Of course a recession is two consecutive quarters of NEGATIVE economic growth, and we've yet to see one quarter of negative growth, much less two. But all the same, NY Times's Stolberg made it sound like Q1 numbers on GDP tomorrow will show a recession.

The questions below will be posted in reverse chronological order:

AP: States Having Budget Problems, Therefore They're In Recession

By Tom Blumer | April 27, 2008 - 11:11 ET

Many in the press seem to have difficulty distinguishing between the economy as a whole and individual governments' fiscal situations. Because of that, they seem to be believe that if a state government is having difficulty balancing its budget, there must be a recession in the whole state's economy.

That's what you would think if you read Andrew Welsh-Huggins's Associated Press report on Friday morning:

Many states appear to be in recession

The finances of many states have deteriorated so badly that they appear to be in a recession, regardless of whether that's true for the nation as a whole, a survey of all 50 state fiscal directors concludes.

The situation looks even worse for the fiscal year that begins July 1 in most states.

Will Media Question False Economic Statistics in DNC Ad Bashing McCain?

By Noel Sheppard | April 20, 2008 - 13:15 ET

For months, NewsBusters has been warning readers of the likelihood that media will adopt the 1992 Clinton playbook of regularly depicting the economy as being far worse than it really is.

On Sunday, the Democratic National Committee released a new television advertisement attacking GOP presidential candidate John McCain with economic statistics that don't measure up to even the slightest scrutiny.

With this in mind, will press outlets this campaign season investigate the economic claims being made by the candidates and their supporters, or allow inaccuracies present in this ad (embedded video to the right), and likely others in the months to come, to go completely unchallenged?

Consider the following written statement in this ad supposedly answering the question "Are Americans better off than they were 8 years ago?":

Harry Smith Says Tax Refunds Are 'Too Much'

By Paul Detrick | April 11, 2008 - 16:50 ET

The average American will receive a $2,500 tax refund this year, a statistic that left CBS “The Early Show” host Harry Smith “stunned” on the April 11 broadcast.

“I am stunned to know what the average refund is,” Smith said. “$2,200 [in 2007], that’s too much, right?”

“It is too much,” said Money magazine senior writer Janice Revell.

She explained that the checks actually represent an interest-free loan between the government and taxpayers.

“When you get your refund it feels like this big windfall, you’ve won the lottery, but in essence what you’ve done is you’ve loaned your money, interest-free, to Uncle Sam for the year,” Revell said. “It just makes no sense.”

Gainor in IBD: Journalists Contribute to Economic Pessimism

By Nathan Burchfiel | April 7, 2008 - 13:52 ET

The news media contribute to the American public's pessimism about the economy, Business & Media Institute Vice President Dan Gainor wrote in Investor's Business Daily April 4.

"Major downturns aren't just caused by economic circumstances anymore. The news media will have done their best to help it along with years of negativity," Gainor wrote. "They've succeeded in part already. The March 18 USA Today reported a Gallup poll showing that 59 percent of Americans thinking a depression ‘lasting several years' is ‘likely, and 79 percent are worried about the possibility.'"

The three broadcast network news shows compared current economic conditions to the Great Depression more than two dozen times since the beginning of 2008. "Gallup simply heard people parrot what they were told," Gainor said.

He compared media coverage of the economy to advertising's effect on the public's buying habits and called out a Washington Post columnist who went so far as to say 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."

CBS ‘Early Show’ Asks ‘Is America Broken?’

By Kyle Drennen | April 4, 2008 - 12:07 ET

NewsBusters.org - Media Research CenterTouting a new CBS News/New York Times poll on Friday’s CBS "Early Show," co-host Maggie Rodriguez teased an upcoming segment on the poll’s findings: "Is America broken? In a new CBS News poll, 81% of Americans believe this country's on the wrong track. Never has that number been so high."

Co-host Harry Smith later introduced the segment by declaring: "A new CBS News/New York Times poll shows 81% of Americans say the country is headed in the wrong direction. The 14% who think we're on the right track is all -- an all-time low in the 25 years that CBS News has been asking the question." Conveniently, as Smith pointed out, CBS News began asking that question in 1983, during the Reagan Administration, and never asked the poll question during the Carter Administration. If they had, one might suspect that quite a few Americans thought the country was "headed in the wrong direction" at the time.

Smith then highlighted a restaurant owner in New Jersey, Marianne Cuneo-Powell, who "is cutting costs any way she can." Smith went to show how Powell’s situation reflected the poll numbers: "She is among the 78% of Americans who believe the economy is in bad condition... Like Marianne, two-thirds of Americans believe the U.S. economy is already in a recession. And they are not encouraged by their leaders in Washington...Only 21% of Americans approve of President Bush's handling of the economy." Of course a recession is defined as two consecutive quarters of negative economic growth, not based on what the latest poll numbers say.

Media Divide Wall Street and 'Main Street'

By Jeff Poor | April 3, 2008 - 16:22 ET

As economic issues move to the front of the on-going presidential campaign, the mainstream media have given an increased amount of coverage to what is happening on Wall Street. However, they have portrayed Wall Street as something completely alien to what happens on "Main Street."

"Now to Wall Street, which, as you know, doesn't always like what Main Street likes, and by the end of the trading day, it was up," NBC "Nightly News" anchor Brian Williams said on Oct. 31, 2007.

But something positive on Wall Street and something positive for Main Street are not mutually exclusive.

NYT, CBS & The Independent All Mislead on Record Food Stamp Use

By Brent Baker | April 2, 2008 - 22:12 ET

Many media outlets have hyped projected 2008 food stamp usage as a “record high,” but as FNC's Brit Hume pointed out Wednesday night in showcasing a particularly misleading take in The Independent in London, a higher percent of Americans were on food stamps “back in the Clinton years.” Hume showcased the London paper's Tuesday front page headline, “United States of America 2008: The Great Depression,” which asserted that 28 million on food stamps in the U.S. represents “the highest level since the program was introduced in the 1960's.” Hume noted:

But critics suggest, however, that that number is misleading since 28 million people would be just 9.2 percent of all Americans. Back in the Clinton years, food stamp distribution reached at an all-time high of almost 10 and a half percent in 1993 and 1994 and 10 percent in 1995.

The Independent matched Monday's front page New York Times article, “As Jobs Vanish and Prices Rise, Food Stamp Use Nears Record,” in which Erik Eckholm asserted “the number of Americans receiving food stamps is projected to reach 28 million in the coming year, the highest level since the aid program began in the 1960s...” Lifting that story, on Monday's CBS Evening News reporter Bill Whitaker ominously intoned: “With jobs declining and prices for basics -- food, fuel, medicine -- on the rise, more Americans are expected to turn to food stamps in the next year than at any time since the program began in the 1960s.

BMI/NB's Menefee Hits Media for Recession Fear-mongering on 'Fox & Friends'

By Genevieve Ebel | April 2, 2008 - 11:47 ET

Business & Media Institute Managing Editor Amy Menefee appeared on "Fox & Friends" on April 2 to discuss the media's involvement in sparking recession fears.

Rescuing viewers from "solid recession talk," Menefee said that specifically network news reports already "have gone far beyond recession, they are already concerned about a depression."

"They're not tell-they're not allowing people on the networks to say ‘Hey, let's get this in perspective right now,' as you said we haven't had a quarter of negative growth yet."

Fox News: “Media ‘Talking Down’ the Economy to Get a Dem Elected?”

By Noel Sheppard | March 29, 2008 - 11:55 ET

Just how obvious is it that the media's economic and business coverage is so negatively skewed that it has to be part of a political agenda in an election year?

Obvious enough for the folks at Fox News to do an entire segment Saturday morning asking the extraordinary question: "Media ‘Talking Down' the Economy to Get a Dem Elected?"

Despite my surprise seeing "Cavuto on Business" begin with such a question framed at the bottom of the screen, I was almost enraptured by the comments from Neil's guests which not only included regular assertions that this is clearly about getting a Democrat in the White House, but also that media are "committing a crime against the general public" by creating a self-fulfilling prophecy that will end up costing people their jobs in the long run.

More importantly, "if we have a serious recession, a great deal will lie at the media's feet."

Cavuto marvelously began the segment: