Wages & Prices

ABC Adds to Parade of Hapless Economic Victims, Now No Electricity

By Brent Baker | May 6, 2008 - 22:31 ET

Four days after NBC centered a story around an elderly couple forced to move “into their van, sleeping on a mattress in the back” while “high food costs have meant” they've “gone hungry,” ABC's World News caught up Tuesday night with a nearly as silly anecdotal report on how families in Minnesota can no longer afford electricity. In the first of two families she showcased, reporter Gigi Stone relayed Julie Tkachuk's plight: “After paying for more expensive gas and groceries, Julie had no money for the heating bills left over from the winter.” Then Stone described the predicament of a family whose father “says business at his moving company is down 35 percent this year. There just wasn't enough money for the power bill.”

Referring to the Low-Income Home Energy Assistance Program (LIHEAP), Stone acknowledged that “there's federal assistance for people who can't afford their utility bills,” but she ominously intoned, “the number of applicants reached the highest point in 16 years.” ABC then aired a soundbite from Mark Wolfe of the National Energy Assistance Director's Association, an advocacy group for LIHEAP spending. The group's April 25 press release (PDF) hyping “the number of households receiving LIHEAP funds this year is the highest in 16 years” also, however, disclosed a fact ABC didn't mention -- that increase is merely 3.8 percent over fiscal year 2007 with the number of households on the dole in Minnesota rising from 120,765 to 126,500, hardly a huge jump.

MRC's 'Worst of the Week': Feeling Barack Obama's Pain

By NB Staff | May 6, 2008 - 14:46 ET

For the rest of the campaign, the Media Research Center will each Tuesday announce its picks for the “Worst of the Week,” meaning the most egregious, horrendous and stupefying liberal bias of Campaign 2008. This week, the spotlight shines on those journalists who rushed to the side of Barack Obama after his minister’s radical comments, and NBC’s ridiculous effort to hype bad economic news [audio/video links below fold]:

Feeling Obama’s Pain. After Barack Obama’s former pastor’s radical remarks at the National Press Club, liberal journalists rallied around the Democratic candidate. Hours after Jeremiah Wright spoke on April 28, NBC’s Brian Williams emphasized those who deemed it a "circus" and a "sideshow," as his NBC Nightly News highlighted the Washington Post’s Jonathan Capehart: "Unfortunately, the victim in all of this is going to be Senator Obama’s campaign."

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.

'Evening News' Distorts Severity of Food Inflation by Reporting Only Highest of Increases

By Jeff Poor | May 2, 2008 - 16:45 ET

Although the economy is showing only a slow rate of growth, consumer spending actually showed an increase for the month of March. But, don't be fooled - that's a bad sign, according to "CBS Evening News" anchor Katie Couric.

"[T]he government reported today that consumer spending in March shot up twice as much as economists were expecting, and it's not because we're buying more - it's because the prices are so much higher, especially food," Couric said on the May 1 broadcast.

However, crediting consumer spending growth, up 0.4 percent according to the Commerce Department, to food inflation is not accurate, according to economist Dr. John Lott.

'World News' Gives One-Sided Anti-Gas Tax Holiday Report

By Jeff Poor | May 1, 2008 - 16:38 ET

It might not the best solution in the world, but any tax break is certainly worthy of consideration - just not according to ABC's April 30 "World News with Charles Gibson."

"The idea is to cut taxes and gas prices during in the summer vacation months, when demand is highest," ABC News correspondent David Wright said. "Great politics, but apparently terrible economics."

ABC opposed the proposal, supported by both presidential contenders Sens. John McCain (R-Ariz.) and Hillary Clinton (D-N.Y.) on the grounds it would increase demand and cause harm to the environment.

CBS Morning Show: Middle Class 'Facing Hunger'

By Paul Detrick | April 28, 2008 - 16:06 ET

High food prices may be affecting middle-income families, but an anecdotal report on CBS's "The Early Show" April 28 made the situation seem as if one family's use of a food bank was "the new face of hunger."

CBS reporter Priya David highlighted Pablo and Ada Melecio, a couple who recently lost their jobs and have elected to use a food bank to make ends meet. Ada Melecio said their "mortgage payments started falling behind and all the interest on that plus all the credit cards" were making their situation even worse.

Huffington Concedes Her Lifestyle is 'Contradiction' to Global Warming Agenda

By Brad Wilmouth | April 26, 2008 - 16:13 ET

Friday's 20/20 aired a piece on liberal columnist Arianna Huffington in which ABC host John Stossel got to challenge Huffington's views on issues like welfare, OSHA regulations, and the "lunatic fringe" of the Republican party. When Stossel took her to task for living in a $7 million home that is "burning more carbon than 100 people in the Third World" even while she is part of the "war on global warming," Huffington responded: "There is no question that the fact that I'm living in a big house, I occasionally travel on private planes, all those things are a contradiction. I'm not setting myself up as some paragon who only goes around on a bicycle and lives by candlelight." (Transcript follows)

Gore Ducks Questions About Food Crisis, Ethanol and Climate Alarmism

By Noel Sheppard | April 25, 2008 - 10:28 ET

A remarkable thing happened Thursday: a press member wanted to ask Nobel Laureate Al Gore about the growing international food crisis and how it relates to ethanol and global warming hysteria.

Not surprisingly, the man who cast the tie-breaking vote in the Senate fourteen years ago mandating the use of ethanol wasn't available, and a spokesman for his hysteria-driving Alliance for Climate Protection declined to comment.

Isn't that convenient?

Regardless, the good news is that press outlets continue to recognize this unholy connection, and that someone, even at the conservative New York Sun, would deign to report it (emphasis added throughout):

Nightline’s Fuzzy Math: Anchor Commits Error in Bush Attack

By Jeff Poor | April 22, 2008 - 15:23 ET

President George W. Bush’s days in the White House may be numbered, but that isn’t stopping the media from taking a few cheap shots on the way out. ABC’s April 21 “Nightline” reported on the increased cost of gasoline, but did so in terms of the Bush presidency.

“Tonight, $3.51 – that’s the average price nationwide of a single gallon of regular unleaded gasoline. That means a 15-gallon tank now costs more than $50 to fill. As a little reference point, the week George W. Bush was sworn in as president, the price of a gallon of gas was $1.47.”

Update at end of post: did ABC get these numbers from the DNC?

She didn’t stop there.

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?":

Someone Please Get NBC's Vieira an Econ 101 Crash Course

By Jeff Poor | April 15, 2008 - 17:13 ET

Understanding every nuance of economics, especially as it pertains to the airline industry, can be a daunting task.

However, you would think that NBC's "Today" co-host Meredith Vieira - who has elevated herself to the point where she's worth $10 million a year, according to Parade magazine - would have risen to the task at this point in her career.

In an interview with Delta Air Lines (NYSE:DAL) CEO Richard Anderson on the April 15 "Today," Vieira asked a question that showed she didn't quite get it.

"I was just going to ask if you could guarantee your consumers that you would not reduce their service or raise their fares?" Vieira asked.

Obama's Windmill-Based War on Poverty

By Mark Finkelstein | April 14, 2008 - 06:49 ET

Do we all get free wooden shoes? Barack Obama didn't say. But he does have an Impossible Dream to cut poverty that would make Don Quixote proud. Put people to work . . . building windmills. His idea came in response to a question at last night's Compassion Forum on CNN from Jim Wallis, a leading member of the religious left whose focus is "social justice." Wallis wanted Obama to commit to a new War on Poverty.

View video here.

JIM WALLIS: As you reminded us a week or two ago, when Dr. Martin Luther King, Jr. was killed 40 years ago, he wasn't just speaking about civil rights. He was fighting for economic justice. Was about to launch a poor people's campaign. Yet, four decades after the anniversary of his death, the poverty rate in America is virtually unchanged and 1 in 6 of our children are poor in the richest nation in the world. So in the faith community, we are wanting a new commitment around a measurable goal, something like cutting poverty in half in ten years. Would you commit -- would you at this historic compassion forum, commit to such a goal tonight and if elected, tell us how you would mobilize the nation, mobilize us to achieve that goal?

Surely, you'd think, the candidate wouldn't fall into that big-government trap. Think again . . .

Bartiromo Defends Bernanke; Ties Current Woes to Events During Greenspan’s Tenure

By Jeff Poor | March 24, 2008 - 17:02 ET

It's not Ben Bernanke's fault, according to CNBC's Maria Bartiromo.

Bartiromo appeared on NBC's March 23 "Meet the Press" with CNBC's "Street Signs" host Erin Burnett as the program's featured guests.

"Meet the Press" host Tim Russert asked Bartiromo and CNBC's Erin Burnett if Bernanke was "up to the task" to take on problems with the U.S. economy. Bartiromo didn't blame the Fed chief for the current economic environment, but defended Bernanke and said the foundation of the housing problems was in place prior to his tenure.

"I really don't think you can blame Ben Bernanke for this, Tim," Bartiromo said. "You know, I think that he is, as Erin said, throwing the kitchen sink, doing a lot at this point. And remember, he's a new chairman. You know, so what was put in place before he was actually in this role has set us up for this."

Mika Bemoans Blue-Collar Whites Who 'Can't Hear' Obama's Message

By Mark Finkelstein | March 19, 2008 - 14:03 ET

There's a new entry next to Mika Brzezinski's name in the annals of MSM elitism. The Morning Joe panelist today lamented blue-collar whites who "can't hear" the message Barack Obama propounded. Poor benighted souls. Joe Scarborough called Mika on it.

Brzezinski's comment came in response to Scarborough's exposition of why he didn't think Obama's speech would work with many blue-collar whites.

View video here.

ABC Hints Rich CEO 'Deeply Tanned' from Sunbathing, But May Be Italian Complexion?

By Brad Wilmouth | March 7, 2008 - 22:41 ET

During a story suggesting that Angelo Mozilo, the former CEO of the mortgage company Countrywide, is unworthy of his millions of dollars and perhaps enjoys too much time lying in the sun, ABC's Dan Harris, possibly not picking up on the former CEO's Italian ethnicity which could be the source of his skin's dark complexion, remarked that Mozilo's "deeply tanned face" could become the "face of the mortgage mess." The story ran on Friday's World News with Charles Gibson, substitute hosted by George Stephanopoulos, with Harris beginning his report: "This may well become the deeply tanned face of the mortgage mess. The face belongs to Angelo Mozilo, the once-celebrated CEO of Countrywide, now facing allegations of predatory lending and rapacious greed." Harris also ended the report seeming to lament that Mozilo is not facing foreclosure on any of his homes: "If the sale [of Countrywide] goes through, Mozilo will walk away with about $40 million. And with not one of his homes in foreclosure." (Transcript follows)

NBC Warns Federal Govt Intervention Needed for Student Loan Shortages

By Jeff Poor | March 7, 2008 - 12:45 ET

"NBC Nightly News" has found yet another hardship story caused by the credit crunch - prospective college students seeking student loans.

The March 6 "Nightly News" aired a segment about how a lack of funding for student lenders will cause some students not to be able to attend their first choice of college.

"More than a dozen lenders have pulled out of the federal student loan program, unable to raise enough money to make loans," NBC correspondent Tom Costello said. "Now - Pennsylvania, Missouri, Michigan, New Hampshire and Iowa have suspended parts or all of their student loan programs - unprecedented."

Media Finally Getting It: Ethanol Mandates a Dumb Idea

By Jeff Poor | February 28, 2008 - 14:51 ET

They're starting to get it. The media are figuring out government meddling in U.S. energy policy is taking a toll on the American economy.

On February 20, the Labor Department reported that the Consumer Price Index (CPI), a key inflation reading, rose 0.4 percent in January, matching December's rise. Why? Increased food costs because corn is being used for ethanol.

"Farmers are replacing wheat fields with corn to meet the demand for alternative fuel, but that means higher flour prices - and in one Pennsylvania pizza shop, more expensive pies," NBC News correspondent Chris Jansing said on the February 27 "NBC Nightly News."