Media Malpractice on Debt Ceiling

Media Malpractice on Debt Ceiling
Five ways media misreported deficit debate


8/1/11

There are specific patterns in corporate media coverage of political debates: Progressive ideas are generally marginalized. "Compromise" between the major parties is encouraged. Democrats should "move to the center," which in practical terms actually means moving to the right.

All of these tendencies have driven the discussion over the federal debt and the debt ceiling. In the end, the political process has produced an agreement that can be cheered by pundits and analysts for adhering to media's built-in bias for center-right economics and bogus ideas about centrism and political compromise.

Of the criticisms one can make of the media's coverage of this discussion--and there are plenty--here are five areas where media mangled the debt discussion.

--Why Is the Debt Ceiling Being Raised?

While some coverage correctly pointed out that raising the debt ceiling has always been a routine political maneuver, Republican rhetoric and right-wing commentary portrayed the current round as a consequence of Barack Obama's "big government" spending philosophy.

What was rarely explained is the fact that raising the debt ceiling is a consequence of previous budget decisions made by Congress (New York Times, 7/28/11)--like a massive tax cut tilted towards the wealthy, two major wars and, most of all, the effects of a major recession.

As economist Dean Baker (Al Jazeera English, 7/27/11) pointed out, the debt "crisis" has very little to do with out-of-control spending:

At the beginning of 2008 the Congressional Budget Office (CBO), the country's most respected official forecasting agency, projected that the budget deficit in 2009 would be just 1.4 percent of GDP. The reason that the deficit exploded from 1.4 percent of GDP to 10.0 percent had nothing to do with wild new spending programs or excessive tax cuts. This enormous increase in the size of the deficit was entirely the result of the fallout from the housing bubble.

--'Balance' Bias

Many writers have noted the partisan negotiations were presented through a distorted "both sides must compromise" lens. As economist Paul Krugman wrote (New York Times blog, 6/26/11):

So what do most news reports say? They portray it as a situation in which both sides are equally partisan, equally intransigent--because news reports always do that.

The failure to secure a deal was thus a failure of both sides to work together. In a subsequent column (7/29/11), Krugman pointed to an Associated Press headline (7/12/11): "Obama, Republicans Trapped by Inflexible Rhetoric."

Time magazine (7/14/11; FAIR Blog, 7/15/11) responded to the breakdown in talks between Obama and Republican House Speaker John Boehner with a pox-on-both-houses attack on each party's failure to compromise:

The Republican refusal to consider any new revenues, including making easy fixes to the tax code to close loopholes for businesses and other groups that don't need public subsidies, is as recklessly absolutist as Democrats' insistence that bloated entitlement programs are untouchable.

On NBC Nightly News (7/19/11; FAIR Blog, 7/21/11), Chuck Todd declared that "any sort of deal is putting pressure on the bases of both parties." His evidence? A new poll that found support for raising taxes--anathema to Republicans--while a majority opposed cuts to Social Security and Medicare. The findings were inexplicably summarized by Todd as "a mixed political bag for both parties."

The media's aversion to pointing out when one side is more prone to obstruction or exaggeration than the other makes it difficult for voters to understand what is happening--and does little to dissuade lawmakers from engaging in similar behavior in the future.

--Debate Way Off to the Right

Often lost amidst all the talk about rancor and compromise is the fact that the entire debate between party leaders and the White House has shifted well to the right. As Jamelle Bouie summed it up at the American Prospect's blog (Tapped, 7/27/11):

Back in May, House Speaker John Boehner went before the Economic Club of New York to offer the GOP's opening bid on debt-ceiling negotiations. His demands were straightforward: Republicans would only support raising the debt limit if it came with cuts that would exceed the increase in borrowing power. In his own words: "Cuts should be greater than the accompanying increase in debt authority the president is given. We should be talking about cuts of trillions, not just billions. They should be actual cuts and program reforms, not broad deficit or debt targets that punt the tough questions to the future."

I wrote at the time that this was an "extraordinarily radical" proposal that would cost thousands of jobs and deprive millions of needed benefits while preserving huge tax cuts for the wealthiest Americans. Now, after nearly three months of Republican intransigence, that radical proposal is the template for the Democratic offer on the debt limit.

Given this obvious fact, media chatter about "compromise" seems downright absurd (Political Animal, 8/1/11).

The New York Times July 31 headline "In Debt Limit Showdown, Obama Edges to the Right" accurately captured this political dynamic, which had been on display for weeks. The article nonetheless asserted that

Mr. Obama, seeking to appeal to the broad swath of independent voters, has adopted the Republicans' language and in some cases their policies, while signaling a willingness to break with liberals on some issues.

The assumption, then, is that "independents" really just want Republican budget ideas. There is no evidence that this is the case.

--Finding the 'Center'

There is a long-established pattern of corporate media advising Democrats to move to the "middle," which in practice means shifting to the right. This has been a constant presence throughout this debate. With a very Republican-friendly solution perhaps at hand, some accounts are portraying this as a deft move to the middle by Obama. The fact that liberals are opposed to Obama's proposals only serves to demonstrate that he is on the right track. The Washington Post reported (8/1/11):

Liberals were furious as the terms of the agreement came into focus Sunday, and yet another capitulation by Obama on economic policy threatened to further dampen enthusiasm among the core Democratic voters he will need to win reelection next year.

But for a White House eager to improve its standing with centrist independents who have been fleeing Obama, even a losing deal can be a winning strategy.

The Post's Chris Cilizza (8/1/11) declared Obama a "winner" based on the same logic:

The president needed a deal of some sort to prove that he was capable of making the government work--even if it took until the 11th (and a half) hour to strike the compromise. Liberals are likely to be deeply unhappy about the nature of the deal, which includes no increases in taxes or revenue. But remember that Obama's target constituency in 2012 is not his base but rather independent and moderate voters. And those fence-sitters love compromise in almost any form.

Earlier Obama offers that sought cuts in Medicare and Social Security were portrayed similarly. A July 25 Washington Post story "Obama 'Big Deal' on Debt a Gamble to Win the Center" (FAIR Blog, 7/25/11) discussed the White House offer of "trillions of dollars in cuts, including to Medicare and Social Security" in exchange for small tax increases.

Most polling on budget options shows little enthusiasm for cuts to Social Security and Medicare, and more support for an approach that includes tax increases and other options for increasing revenue (FAIR Blog, 1/21/11). And polls also show more concern over jobs than deficit reduction (FAIR Blog, 9/17/10).

The White House and Democratic leaders are cheered for abandoning those goals, while the press explains that this is what "centrists" and "independents" really want.

--Were There Budget Alternatives?

If this debate was really about dealing with the nation's long-term debt/deficit issues, then the press would seriously examine a range of ideas for addressing these problems. But the most serious progressive alternative, the People's Budget, was never given significant attention in the corporate media--in contrast to Republican Rep. Paul Ryan's budget plan, which, contrary to the rhetoric, failed to meaningfully reduce the deficit at all (Extra!, 6/11).

The corporate media's abject failure to seriously examine a budget proposal that is more in line with majority public opinion suggests that serious dysfunction is not limited to Beltway political leaders.

http://www.fair.org/index.p hp?page=4370


< TYT YouTube Clip Playlist - 8/2 Show | Petition to Draft Howard Dean to run in a primary against Obama. >
 Display:

I see that you are a closet idealist under all the cynicism and sarcasm.  :-)  You were expecting accurate coverage of an economic issue from the media?

I present, 5 reasons never to have expected competent news coverage:

 1.) The mainstream media (i.e. the general news outlets) cover economic topics with journalists.  Journalists who were most likely Journalism majors or poly sci majors.  BTW, in today's world of info-tainment news, a journalism degree pretty much is a degree in Entertainment.  Chuck Todd, Richard Wolffe, Andrea Mitchell, etc. are truly comical when they chip in to opine on economics.

Not to pick on one person, but Mrs. Alan Greenspan (aka Andrea Mitchell) presumably acquires most of HER economic insights from her husband.  Nuff said?

 2.) Like most managers, the producers of news shows do what they are paid to do.  What they are paid to do is get ratings, with perhaps some other minor concerns on the side.  Accurately informing the public about economic issues (or anything else) is not likely to be one of their performance metrics.

3.) Journalists do what their managers tell them to do.  And that's not likely to include any big emphasis on accurately informing the public. (See above)

4.) Detailed and accurate reporting would distract from coverage of the Horse Race aspects (which side has the advantage) or the human interest aspects (who's winning?) of the story.  These DO generate ratings.

 5.) Nuanced and insightful reporting would most likely just confuse and discourage the audience (they're not used to that kind of thing), which might then switch stations in search of some Bonus Coverage of the Casey Anthony trial.

by Gordon Shumway on 08/02/2011 02:56:17 PM EST

The rich and corporations have had a tax holiday for the past thirty years.  That's why we have a $15 trillion national debt.

Capital gains tax rates of only 15%?  Highest marginal tax rates of 33%?  Tax subsidies for big oil, corporate jets, hedge funds, et al?

Repatriation of corporate monies at 2% or 3% instead of 35 or 38%?  Estate taxes at 35% instead of 55%?  No estate taxes on the first $5 or $10 million?

The middle class has believed the establishment's propaganda that if we do not tax the rich, that manna will fall from heaven and give us jobs and money.  What nonsense.

We give all these big subsidies to big corporations.  And then give defense contractors huge enormous contracts, resulting in fraud and waste.

And these large corporations escape taxes by setting up corporate offices on the 19th floor of a building located on the Cayman Islands.

How do the rich and corporations get away with this?  With their lobbyists and campaign contributions to politicians who care more about their contributions than the citizens they are supposed to represent.

When will the American people wake up from their catatonic state, if ever?

The Barefoot Accountant

by Barefoot Accountant on 08/02/2011 05:09:11 PM EST

There are very few journalist or economist that know anything about economics. For 30 years they were told that cutting taxes increases tax revenues and they bought it. They simply could not understand the basic math concept that subtraction does not equal addition. Hence the phrase vodoo economics....it's magic.

That said, the left is as wrong as the right on supply side vs demand side. Both have replaced the basic economic principal of "return on investment" with philisophical BS that does not hold water. There is no diference in blind spending and the blind tax cuts that both parties cling to as economic policy. The right confuses speculation with investment and the left clings to this myth of spending and stimulus. 

"Stimulus" indicates a solution to a temporary problem, just like stimulants have a temporary effect. We have structural problems in trade, healthcare and the tax code.

We have been handing out stimulus supply side tax cuts since the 1980's, including the Bush stimulus checks and ARRA. Is it working? No. I like to refer to it as trying to fix a hole in a dam by adding more water. Or filling a bathtub with the stopper out. It ain't going to happen.

The right rewrote the history of the Great Depression and the New Deal. The left has taken the wrong lessons as well.  We did not spend our way out, we invested in the countries infastructure, housing and agricultural lands. The work done as part of the new deal is still providing ROI today.

Obama chose to let housing fall and only sprinkle money on green tech. Instead he made it his priority to inflate wall street, and pass a healthcare billl that fails to address the underlying structural problem that helathcare cost create in our long term debt, job creation and the balance sheet of the states with medicaid.

To top it off he extened the Bush tax cuts that rewarded the most destructive speculative behavior of hedge funds and money houses like Goldman Sachs. The current tax code, and lack of financial regulations, allow wall street to extract wealth 30 or 40 years in advance, in the form of mortgages and pension plan fraud. Trapping states and conusumers in an endless cycle of debt in the process, as well as sucking money out of the system that is needed to create real wealth and long term ROI.

sorry to be long winded





by sisco66 on 08/03/2011 05:55:02 AM EST

 Display: