The Good, the Bad & the Ugly
ABC showcases the boom in Texas, a place not plagued by economic downturn; Matthews uses high price of gold to bash Bush on economy; Networks cheer: 'The check is in the mail,' 'Cash is on the way.'

January 30 2008

The Good

     Even though you might think the entire country is in dire straits, that’s not entirely true. The local economy is really what drives prosperity.

     The January 27 “NBC Nightly News” showcased a Texas community where no one is having to “recession-proof” his job like the media keep saying.

     "The reason? One word: Oil,” NBC correspondent Don Teague said from Andrews, Texas. “With the price per barrel hovering near $90, exploration companies are scouring every drop from oil fields once thought unprofitable. And roughneckers, the people who do the dirty work, are cashing in.”

     “Nightly News” showed one man who was able to pay off his house and his bills. Another man is preparing for the bust in this oil rush by saving a quarter of every paycheck.

     “Still, with skyrocketing global demand, no one here expects this boom to bust any time soon,” Teague said.

The Bad

     Can you remember where you were at any point during the four years of the Jimmy Carter presidency?

     Most people who remember don't look favorably on the economic situation during those years. But MSNBC "Hardball" host Chris Matthews, who was gainfully employed as a member of the Carter administration, might look back a little fondly.

     When he criticized President George W. Bush about the economy following the State of the Union address on January 28, Matthews may have just neglected to remember what the economy was like back then. That didn't stop him from taking a shot at the Republican president.

     "I think a lot of people expected the president to at least engage for a couple of minutes tonight on what's going on in the world economically and why we should worry and why we should have confidence that we do a couple things right," Matthews said.

     But what did Matthews base his assessment of the economy on? It wasn’t any of the stuff that plagued the economy while his former boss, Jimmy Carter, was president. It was the price of gold.

     "So, why are people buying gold right now?" Matthews asked. "Because it's a smart move and that's the scariest thing you can say – that gold bullion is a better investment than the American economy right now. And that's a very interesting standard of why we're in trouble."

     According to Benchmark Financial Network Chief Economist Jerry Bowyer, the pressures on the price of gold are not solely driven by a downturn in the American economy, but other factors including a spike in demand and changes in technology.

     "This is taking Bush bashing and blaming America first to new levels of absurdity," Bowyer said to the Business & Media Institute. "Oh, and by the way, if Chris really feels this way, why didn't he say so back when he was working for Jimmy Carter? Under Carter, gold outperformed the stock market far more dramatically than it has recently."

The Ugly

     Nothing like going on the air and reporting the government is going to give you a check for x dollars – depending on your income – to please your viewers. But reporting about it as if there were no strings attached isn't straightforward.

     However, the glowing reception the $150-billion taxpayer-funded stimulus plan got from each of the network newscasts gave that impression.

     "Cash is on the way," ABC's "World News" anchor Charles Gibson said. "The check is in the mail, or it will be to 117 million Americans. The president and congressional leaders reached agreement on a $150-billion economic stimulus package today. When passed by Congress, the package will result in the distribution of $100 billion to individuals and families. And it will mean businesses will get $50 billion in tax breaks."

     All that sounds great, except that some people who pay taxes won't get a rebate, and many of those who don't pay taxes at all will get a rebate.

     This money given to non-taxpayers has to come from somewhere – and as many economists have pointed out, that wealth-redistribution characteristic is a reason why this package isn't a good "stimulus."

     "A stimulus bill is not the place to expand government interference in the economy, bail out banks that make bad loans, or pile on unrelated new spending," wrote Rea S. Hederman, Jr., assistant director and senior policy analyst in the Center for Data Analysis at The Heritage Foundation. "While a tax rebate may be inevitable at this point, the public should recognize that this rebate is poorly targeted and would not have a significant effect on the economy."

The Good, the Bad & the Ugly tracks the best and worst media coverage of business and economics. Readers are invited to submit suggestions or news tips to Staff Writer Jeff Poor at jpoor@mediaresearch.org.