Budget

CNN correspondent Carol Costello aired a fair report on Friday’s American Morning about the several states which passed resolutions that asserted their rights under the Tenth Amendment to the U.S. Constitution, and asked for viewer responses on the issue, but later stated that her “favorite [viewer] comment so far...‘asking for states’ rights is asking, you know, the children to be the parents’” [audio clips from the report are available here].

Costello began her report,  which aired just before the bottom of the 6 am Eastern hour, with the question, “should states’ rights trump the fed?” She also highlighted the premise that “the concept of states’ rights is as old as America.”

The CNN correspondent used three sound bites from Texas Governor Rick Perry’s speech to a tea party in April 2009, which was widely circulated around the Internet. She also featured clips from an Republican state legislator from Oklahoma and a constitutional law professor.

Newsweek magazine had yesterday a web exclusive entitled "What Green Jobs?" 

Subtitled:  "Washington is spending $60 billion to create the careers of the future, but not a single green job yet exists. Obama's 'green czar' explains."

The Leftist publication deserves some plaudits for exploring this $60 billion gaping hole in the $787 billion "stimulus" package President Barack Obama signed into law in February.  But there are many points in the article where they could have done better. 

It would have been nice, for instance, if Newsweek had exhibited some of the scrutiny they show here in advance of the massive plan's passage. They begin with an interesting realization:

On Tuesday's Glenn Beck Program on FNC, host Beck picked up on P.J. Gladnick's recent NewsBusters posting which helped bring attention to President Obama's double standard in charging that Congress was "rushed" by the Bush administration into passing budgets and anti-terrorism measures with little time for debate -- in a 2004 interview with Randi Rhodes on the left-wing Air America -- even though as President he has pressed Congress to act quickly on a number of major spending proposals since taking office.

Beck also ran a clip of Congressman John Conyers as the Michigan Democrat scoffed at suggestions members of Congress should read and understand bills before voting for them. Conyers: "To get up and say, 'Read the bill.' What good is reading the bill if it's 1,000 pages and you don't have two days and two lawyers to find out what it means after you read the bill?"

During the show's regular "Hot List" segment, Beck recounted: "The Web site NewsBusters.org posting a November 2004 interview with Air America's Randi Rhodes, where Senator-elect Obama complains about the Bush administration."

Then an audio clip of Obama from the 2004 interview ran:

In late April, the Associated Press's Calvin Woodward, in a "Fact Check" report ("Obama disowns deficit he helped shape"), hit President Barack Obama's claims that he and his party don't deserve much of the blame for the size of this year's deficit pretty hard. It was such a surprise that I wondered who had put truth serum in his coffee.

Well, you might have guessed it would be Calvin Woodard doing the primary honors in an AP Fact Check that again takes aim at the President, this time over his health care bill. With the co-bylined help of Jim Kuhnhenn and contributions from Ricardo Alonso-Zaldivar, Woodward and his team went after several claims made by Obama at his Wednesday press conference that don't stand up to scrutiny.

Here are excerpts relating to each:

ABC anchor Chris Cuomo played the liberal emotion card and asked California Governor Arnold Schwarzenegger during an interview on Wednesday’s Good Morning America if Republicans were “playing politics” with President Obama’s health care “reform” proposal, and whether this was turning into a “little bit of a reckless situation” on the part of the GOP. [audio available here]

Cuomo first put the health care issue in the context of California’s budget woes, and started out of the gate with his plea to people’s emotions in his first question to the governor: “Your state is somewhat of a window into the reality of health care. You’ve been pictured at your desk with a big knife, having to cut the budget- over $1 billion in health care cuts. It’s going to affect low-income families. It’s going to affect the coverage that children get. Is this absolutely necessary?”

After Schwarzenegger’s answer, the ABC anchor then turned to the president’s proposal for health care “reform,” and asked the liberal Republican governor why he supported it. The former actor clarified that he didn’t 100% support Obama’s plan, “because I don’t know exactly what is in that bill. It changes all the time, as you know.” Cuomo followed up by asking if he was leaning towards supporting it. Schwarzenegger again didn’t give a solid answer.

It's one of the few times one can wish the reporting by NBC News was right and CNBC was wrong.

A segment on the July 21 "NBC Nightly News" pointed out some of the key points of a budget deal reached between California Gov. Arnold Schwarzenegger and leaders of the state legislature. The deal means some service cuts - but also includes the possibility of exploration and drilling for oil off the California coast.

"California is our biggest state in terms of population and it long ago ran out of money," "Nightly News" anchor Brian Williams said. "They got nothing to pay the vendors they owe and now they have struck a deal for more cuts, and these are going to hurt. They're going to allow offshore drilling for the money it will bring in. The LA Times reports tens of thousands of seniors and children would lose access to health care. Prisoners will spend less time in prison. And the governor is going to sell cars and furniture and office supplies and autograph some of it, he says, to raise more money. It's an unbelievable turn of events."

Noel Sheppard mentioned this Associated Press story by Tom Raum yesterday at NewsBusters (Raum is tagged as the writer at this version of the report).

Noel characterized Raum's report as suggesting that "the White House's delay in releasing an update about the budget might be tied to the administration's desire to get controversial bills on healthcare reform and cap and trade passed before Congress and Americans know just how large the deficit really is." That's because the delayed report would more than likely tell the nation that this year's deficit is expected to be even bigger than expected (using proper cash-flow reporting, which I'll get to), and future years' projected deficits are even more likely to be unsustainably high.

Two important things were missing from Raum's report. First, there was a total dearth of detail about how badly the current fiscal year that began on October 1 of last year has gone -- most especially the last quarter. Second, Raum saved until near the end of his report a prediction by one of the wire service's go-to "experts" -- the first such prediction I've seen -- that Gross Domestic Product will contract yet again in the third quarter.

Spreading the Word Media Research Center President and NewsBusters.org Publisher Brent Bozell today responded to a poll conducted by the University of Texas Health Science Center at Houston and Zogby International that finds that 84 percent of Americans, including 46 percent of Americans without health insurance, are "very satisfied" or "satisfied" with the health care they currently receive.

Released on Wednesday, the poll was glaringly absent from most news reports late last week and over the weekend.

Bozell today called on the media to stop reporting on the American health care system as a "crisis" situation, as the facts simply belie the claim.

Mr. Bozell:

The Associated Press Monday suggested that the White House's delay in releasing an update about the budget might be tied to the administration's desire to get controversial bills on healthcare reform and cap and trade passed before Congress and Americans know just how large the deficit really is.

With this currently a featured link at the Drudge Report, and it coming from the leading wire service in the world, one has to wonder how Obama-loving media -- who all seem behind healthcare reform as well as cap and tax! -- will cover this revelation.

After all, imagine how these same press outlets would be reporting this if George W. Bush was still in office and was proposing tax cuts to get the economy going while delaying such a budget update:

Today Joe Biden was in Alexandria, VA, and said, as reported by CNS News:

People look at me and say, "What are you talking about, Joe? You're telling me we've got to go spend money to keep from going bankrupt?" The answer is "Yes,"I'm tellin' ya.

Matt Drudge thinks this is news (link is to his time-stamped archive, which won't change); it is his top headline. Allah at Hot Air thinks it's news, as do many other center-right bloggers.

So did Sean Hannity tonight.

Anyone with a fifth-grade sense of journalism would know that Biden's statement is newsworthy.

The Associated Press reported on Biden's Alexandria appearance. Here are the first three paragraphs of the wire service's unbylined story:

You know when a liberal has lost any capability to understand the common American when they completely miss the pain that liberal tax hikers cause the average citizen in this country. Charlie Cook recently showed this elitist attitude in a National Journal column on the outrageous costs of the Cap and Trade bill – better called the Cap and Tax bill. Of course, to him, the tax hike on the average American is not a big deal and he doesn’t understand how anyone could be upset over it all.

Cook is perplexed why Washington pols were “getting an earful” from constituents over the energy tax hikes that the Cap and Trade bill will force on the nation. He just couldn’t figure why adding “only” an additional $175 a year to the average citizen’s electric bill was such a big deal.

In a report meant to cover Uncle Sam's release of June's Monthly Treasury Statement, Associated Press reporter Martin Crutsinger went well beyond the wire service's normally lazy, slanted reporting in this area.

In his report's apparent final incarnation early Tuesday morning, the AP writer:

• Told us the amount of June's deficit ($94.3 billion), but didn't disclose the figures for June's receipts ($215.4 billion) or "outlays" ($309.7 billion), or how they compared to June of last year. In doing so, he "succeeded" in concealing the accelerating decline in tax collections.
• Didn't tell us that the past month's deficit is by far the worst June ever.
• "Forgot," as he did in May, to tell readers that the deficit would be hundreds of billions of dollars higher if it weren't for an "accounting change" retroactively put into place by Treasury in April that changed the definition of "outlays."
• Cited the Iraq and Afghanistan wars as contributors to the deficit situation, while not identifying several other expenditure categories that have been worse offenders by far.
• Found an economist, without dissent, to support the claim that what the Obama administration has done had to be done.

And that doesn't even count Crutsinger's Krugmanesque rewrites of the history of the 1930s Depression era and 1990s Japan, or the apparatchik-like tone present in a few of his paragraphs.

He's Got It
Is this what Time magazine meant with their July 6th cover, What Barack Obama Can Learn From FDR?

Not one to let "a serious crisis to go to waste," Franklin Delano Roosevelt used the onset of the Great Depression as an excuse to immediately begin delivering New Deal dollars in unprecedented amounts - with laser-like political precision to electorally important parts of the country.  He sailed to landslide reelection in 1936 on a federally-funded tailwind.

The New Deal is now an old one - as direct mail guru Richard Viguerie describes it, "We've got money, you've got votes, let's talk." If this is what Time had in mind for Obama to learn, he has proven to be an apt pupil. 

And USA Today seems to have picked up on it. 

We at the Media Research Center always love to give journalistic credit when and where it is due. And the USA Today today deserves serious credit for Brad Heath's look into how:

"Billions of dollars in federal aid delivered directly to the local level to help revive the economy have gone overwhelmingly to places that supported President Obama in last year's presidential election."

That quote is in fact the first sentence of the article.  No burying the lede or mincing of words here. 

A little later, Mr. Heath offers:

Why is CNBC's Rick Santelli one of the few press members willing to point out when the emperor isn't wearing any clothes?

As you ponder that important question, consider how Santelli on Tuesday morning recognized how absurd Vice President Joe Biden's Sunday comments were concerning the Obama administration misreading how bad the economy was.

After all, as Santelli marvelously asked: "How many hundreds of times has the current administration talked about the worst recession in history? The worst time since the Depression?" 

Exactly, but that wasn't all: 

As we near the end of June, which is supposed to be one of the four biggest months for federal tax collections (January, April, and September are the others), it is clear that the serious receipts shortfalls are not only continuing, but have caused the March 20 projections of the administration and the Congressional Budget Office (CBO) to be outdated.

Media coverage of the ongoing receipts dive has been minimal at best. A Google News search on "federal receipts" (typed in quotes) returns on seven items, two of them originating from yours truly.

Here is where things stand as of the last Friday of June in both 2009 and 2008, per Uncle Sam's related Daily Treasury Statements:

ABC's online "The Note" describes itself as "Washington's Original and Most Influential Tipsheet." ABC News's Senior Political Reporter Richard Klein is its current content creator.

We'll see how influential "The Note" really is if what Klein writes about the machinations behind the attempt to make us forget that the Obama stimulus plan was supposedly going to be making some kind of difference at this point gets out anywhere else. Color me skeptical.

No doubt, Klein gets in some pretty strong, accurate, and long-overdue rips (links are in original):

For Time Magazine, Kevin O'Leary has decided that he's figured out why California is in such a budget mess. Is it because the state indulges over generous social programs, or always has some of the highest taxes in the nation, or because the denizens of its capitol in Sacramento are paragons of waste, fraud and theft? Nope. It's because California has Proposition 13, a measure that prevents state government from too easily raising taxes. Yep, O'Leary thinks California is in a mess because it doesn't have high enough taxes. And it's all Reagan's fault.

With some of the highest taxes in America, California is a hard place to make a living. According to the Tax Foundation, on average it takes a citizen 110 working days to earn enough money to pay his yearly tax bill. That is the fourth worst in the country. California consistently ranks in or near the top 10 worst states for its tax burdens from property taxes, to corporate taxes, to individual taxes and fees of all sorts. So, how can O'Leary imagine that taxes aren't high enough in California?

Maybe reporters Brian Faler or Nicholas Johnston at Bloomberg asked Barack Obama some really challenging questions when they had a chance to interview the President at the White House. Maybe they even did some basic fact-checking. If so, there's precious little evidence of either in their June 16 report.

They allowed the president to blame most of the current year's deficit on George W. Bush. They let him speak of "robust" growth when the best guesstimates they quoted for the second half of this calendar year and all of next year are anemic -- at least as the press benchmarked growth during the Bush 43 years.

The Bloomberg pair also ignored the alarming deterioration in federal receipts from economic activity that has continued into June, one of the four biggest collections months of the year.

Here are key paragraphs from Faler and Johnston's failed filing (bolds are mine):

A calm Sunday breakfast might have been ruined after a glance at The Washington Post’s front page on June 14. A chart below the fold explained that under Obama’s federal spending proposals, the United States would be required to borrow $9 trillion during the next decade. That’s $9,000,000,000,000. The Post compared that, in today’s dollars, to the financial burden of World War II: $3.6 trillion. That’s not all of Obama’s spending plan. That’s only the part that’s in the red.

Is it any wonder that a recent Gallup poll found more people disapprove rather than approve of Obama’s handling of the deficit? But we’ve only just begun. Now President Obama wants to add another enormous chunk of government health-care spending. The Congressional Budget Office projects that the latest Democratic bill in the Senate would add another one trillion dollars to the budget over the next decade, and they suggest that’s only a partial estimate.

In John Harwood's Sunday Week in Review piece, "Rethinking The Reagan Mystique," he claimed Republicans are rejecting Ronald Reagan as a political inspiration and urging their party to look forward. He probably overstates the case. However, Harwood does come up with a novel insult of Reagan: The man the media labeled a heartless budget-cutter was actually a runaway spender in disguise!

For a liberal Democrat, President Obama has offered generous praise for the most celebrated of his recent Republican predecessors.

Mr. Obama has credited Ronald Reagan with having "changed the trajectory of America" in ways Bill Clinton didn't. "President Reagan helped as much as any president to restore a sense of optimism in our country, a spirit that transcended politics," Mr. Obama said earlier this month while signing the Ronald Reagan Centennial Commission Act in the presence of Nancy Reagan.

It's not surprising that Mr. Obama has embraced Mr. Reagan's achievement since it seems akin to his own aspirations and might also ingratiate him with conservatives. What is surprising is the increasingly ambiguous position Mr. Reagan holds on the right.

A fabulous 1934 Chicago Tribune cartoon that has recently been making the rounds in the blogosphere as an example of history sadly repeating itself was marvelously rerun at the paper's website on June 10.

In it, members of Franklin Delano Roosevelt's administration are seen shoveling money out of a wagon with a billboard on the side declaring, "Depleting the resources of the soundest government in the world."

On Wednesday, the Trib reprinted the cartoon with the caption "This is a 1934 Chicago Tribune political cartoon that many say rings true in today's political and economic climate. What do you think?" (full, largely legible print below the fold along with an explanation of the characters uncovered by The Federal Observer, h/t NBer Gary Hall):

It's pretty hard to dress up a disaster as something less than that, but the Associated Press's Martin Crutsinger gave it his best shot in his report yesterdayabout Uncle Sam's the May Monthly Treasury Statement, in effect understating the amount and significance of federal government's rapidly deteriorating financial situation.

With the help of dubious handling of last year's stimulus payments in May 2008's Treasury Statement, Crutsinger ignored serious declines in tax receipts from economic activity (over 30% in each of the past three months) that are, if anything, accelerating. I covered that problem in Part 1.

Additionally, after only briefly mentioning it last month (noted at the time at NewsBusters and at BizzyBlog), Crutsinger grievously erred in his explanation of how a convenient "accounting change" Treasury implemented in April relating to accounting for its Troubled Assets Relief Program (TARP) has affected the reported year-to-date deficit. He claims that it contributed to it, while in reality the accounting change reduced it by about $180 billion. That is the subject of this post.

Here are key background and accounting change-related paragraphs from Crutsinger's report:

It's pretty hard to dress up a disaster as something less than that, but the Associated Press's Martin Crutsinger gave it his best shot in his report yesterday about Uncle Sam's the May Monthly Treasury Statement, in effect understating the amount and significance of federal government's rapidly deteriorating financial situation.

With the help of dubious handling of last year's stimulus payments in May 2008's Treasury Statement, Crutsinger ignored serious declines in tax receipts from economic activity that are, if anything, accelerating. I'll cover that problem in this post.

Additionally, after only briefly mentioning it last month (noted at the time at NewsBusters and at BizzyBlog), Crutsinger grievously erred in his explanation of how a convenient "accounting change" Treasury implemented in April relating to accounting for its Troubled Assets Relief Program (TARP) has affected the reported year-to-date deficit. That is the subject of Part 2.

Here are key background and receipts-related paragraphs from Crutsinger's report:

Actor Jon Voight, who recently spoke critically of President Obama at a Republican fundraiser, appeared on Tuesday's The O'Reilly Factor to reiterate his problems with Obama. After recounting that America was "warned" by Hillary Clinton and Joe Biden during the Democratic primary season that Obama "had no experience" and was a "novice," the conservative actor reminded FNC viewers of the unheeded warnings about Obama's connections to questionable figures like Bill Ayers and the Reverend Jeremiah Wright:

Look, he was a fellow who was associated with all the wrong people. The signs were up. His associations with Bill Ayers, Alinsky, with ACORN, with Pfleger, with Wright. But no one seemed to take the warnings. And his inexperience was quite evident.

Ed Frank created an interesting little video that serves as a stark reminder of how harsh the Old Media was on Bush's "faltering" economy in comparison to today's hearts and flowers style of reporting during the age of Obama, even though the stats are far, far worse under Obama than they ever were under Bush.

Frank's video is shocking for its revelation of how Bush was slapped around and how every economic indicator during his tenure in the White House was deemed as obvious proof of the supposed though times we then faced. Yet now, every dismal indicator is celebrated as if recovery just around the corner. Under Bush the Old Media was sure the economy was a wreck, now the wreck proves we will surely be saved by Summer!

Every time voters face a ballot initiative of some sort that would raise their taxes, proponents of such measures will trot out any of the following components to champion the cause - school children, policemen, firemen or the release of criminals from jails.

But this time, the June 3 "NBC Nightly News" waited until after California voters denied passage of initiatives that would raise their taxes to say, "I told you so." NBC correspondent George Lewis followed up a dire, one-sided June 3 "Today Show" report with a "Nightly News" segment that blamed the budget cuts for one supposed hardship story - a California school district forced to cancel summer school, which in turn made it impossible for one child's mother to look for a job.

In a time when fiscal responsibility from politicians seems to be a thing of the past, NBC’s “Today Show”  and ABC’s “World News with Charles Gibson” criticized California Governor Arnold Schwarzenegger for his proposed budget cuts in his effort to save California from reaching total financial ruin.

The June 3rd “Today Show” featured numerous opponents of Schwarzenegger’s budget cuts, but nobody supporting or defending them.

The segment began with a clip of the governor stating: “Our wallet is empty. Our bank is closed, and our credit is dried up,” a fact that does not seem to bother NBC, as they mourn the proposed solution to this problem: the cutting of what they deemed “essential services.”

Roll Call is reporting that during the typical Friday afternoon document dump -- a practice used to hide actions that might prove somewhat embarrassing to the White House -- the administration quietly announced that some of the former restrictions on lobbying ballyhooed about during the late campaign have been lifted. And now, we have to wonder: will the media notice this sudden change? I mean, a whole day has gone by and so far only Roll Call has mentioned it.

In any case, let special interests ring, baby!

Here's a CNN e-mail alert I just received a couple of hours ago:

So how did the Associated Press's Jeannine Aversa report the above raw news? As you would expect an Obama apparatchik to do it (reproduced in full as it existed at 3:15 p.m.; bold after title is mine):

Fed sees hopeful signs but downgrades '09 forecast

WASHINGTON (AP) — The Federal Reserve expects the economy to improve in coming months, even as policymakers have downgraded their outlook for all of 2009.

Wow. Just wow. If this New York Times headline isn't an act of advocacy for higher taxes in California, what is? With its May 20 coverage of the vote for California's tax hiking ballot measures, the Times plainly scolds fed-up voters for rejecting them with a headline that pointedly says: "Calif. Voters Reject Measures to Keep State Solvent."

Really? The Times thinks California's voters want a state headed into bankruptcy, that they voted for insolvency? The paper is strangely furious that voters rejected tax hikes, but I hate to break this to the New York rag: voters did not "reject measures" to keep the state "solvent." What voters did was reject wild tax hikes that would only lead to more corruption and profligate spending. The voters weren't fooled and knew that these measures would not lead to any long-term solution to the state's budget woes. If the state house in Sacramento had done its job properly and proposed a sensible budget in the first place, Californians would be happy to vote for it I am sure.