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The Good, the Bad & the Ugly
Ramsey calls stimulus plan
one more 'step toward Socialism'; NBC misses mark with $4 gas
prediction; CNN exploits NIU tragedy to go after gun Web sites.
February 20, 2008
The Good
Radio talk show host and Fox Business anchor Dave Ramsey gave
viewers a good dose of reality regarding the economic stimulus plan
signed into law by President George W. Bush on February 13.
Ramsey
appeared on Fox Business Network’s “Money for Breakfast” show on
February 18 and said the stimulus isn’t likely enough to make a
difference and people shouldn’t expect the government to play that
role.
“[W]e’ve
got candidates on both sides of the aisle running on what they can
do for us,” Ramsey said. “Truthfully, there’s not much they can do
for us. If they’d leave us alone, we’d be better off and tax us
less. But honestly, 600 bucks, most of the times doesn’t change
people lives – 1200 bucks doesn’t change their lives. They go change
their lives – they have to get up, leave the cave, kill something
and drag it home.”
Ramsey
explained the stimulus plan ultimately won’t help the economy in
itself, but that its best shot is to change the negative perception
of the economy.
“It’s a
faux process,” Ramsey said. “I mean again, if it helps people’s
attitudes and that stimulates the economy and that keeps the stock
market from continuing to throw a hissy-fit, then that’s just fine
with me. I’ve got no issue with that. The biggest problem is – is
that it is redistribution of wealth. It is taking money from people
who pay taxes, giving it to people who did not pay taxes and so it
is one more creeping incremental step toward socialism with our tax
programs.”
Ramsey
explained that government doesn’t have the solution for every
problem that confronts Americans. It’s ultimately up to the
individual.
“And, it’s
reissued this lie – that somehow all of our answers come out of
Washington, when most of the time, the best ideas come from the
individual out here in the field who’s starting a small business,
who’s got a great idea and is starting the next Microsoft in their
garage this week.”The
Bad
Early last
month, when oil prices flirted with inflation-adjusted record highs,
fears of sky-high gas prices were filtered through the media.
CNBC's
Erin Burnett gave viewers a frightening prediction of $4-a-gallon
gasoline during a January 2 appearance on the NBC "Nightly News."
The "Street Signs" anchor cited John Kilduff, the vice president of
risk management at the MF Global Ltd. Brokerage, as the source of
this predicted high-water mark for gasoline.
"And John
Kilduff, who I know you speak with often, as well, Brian, he says we
could see prices at the pump as high as $4 a gallon," Burnett said.
"And that could be by the middle of February. So it could be anytime
in the next six weeks. So that's going to be an increase, and we've
seen it across the board, Brian. Commodity prices are going up, and
that is causing worry for stocks."
But the
prediction hasn’t come true so far. Oil briefly went up to $100 a
barrel early in January, but has since gone down to as low as $87 a
barrel before rallying to over $98 a barrel on February 19. Gas
prices never came close and have risen to $3.05 as of February 20,
nearly $1 below the target.
In January,
Burnett explained her prediction would take time because of the time
lag between oil prices and gas prices.
"Well,
Brian you said it right there," Burnett said. "There is a lag time.
It could take two weeks, it could take four weeks, but usually what
happens to oil prices eventually happens to gasoline prices. And you
can see right there, a year ago prices were trading at $2.32 a
gallon. Now you're going to pay $3.05."
According
to the
Oil Price Information Service, on February 20, the national
average for gas was $3.05 a gallon. However, a refinery fire in Big
Spring, Texas caused gasoline
to spike slightly on February 18 according to Bloomberg.
The Ugly
Every event
is a
chance for the media to spin. That’s what happened when CNN
twisted the latest college shooting to blame it on business, instead
of a crazed killer.
On the
February 17 "American Morning," Veronica De La Cruz showed how two
Web sites, operated by "the same owner," sold products to the
shooters in both the Virginia Tech and Northern Illinois University
tragedies. She said it was "pretty shocking to figure this out."
Anchor Kiran Chetry agreed, calling it an "eerie connection."
But De La
Cruz was just getting started. She was even upset at the sympathy
banners on the site because they were near banners that still
advertised the company's business. "I want to show you the strange
juxtaposition if you move down the page. Here's the NIU shooting and
then ‘Save big on rifles and handguns' right underneath. You know,
something that kind of turns your stomach, if you will," she added.
De La Cruz
didn't bother to explain that there were actually two banners on the
site. The first, "Tragedy at NIU," included a statement from TGSCOM
Inc. President Eric Thompson that she never mentioned.
"For now,
the most important thing we can all do is send our thoughts and
prayers to the families and friends of the victims of this heinous
act. I'd also suggest making a contribution to the NIU Memorial
Fund," wrote Thompson.
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.
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