Posts Tagged ‘Wall Street Journal’

WSJ OPINION: THE COST OF DISASTER

Special mention

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Corporate duplicity, it seems, knows no bounds.

First, ExxonMobil misled the public about climate change for years, even as its research echoed the growing scientific consensus that global warming is real and caused by human activity. Then, while various states attorneys-general launched investigations of whether Exxon deceived shareholders and the public to protect its profits, the Wall Street Journal published 21 opinion pieces about current or potential Exxon investigations, all of which were critical of government entities investigating Exxon.

We now know, thanks to a study by two Harvard University researchers, Geoffrey Supran and Naomi Oreskes, that Exxon acknowledged that climate change is real and human-caused in 83 percent of peer-reviewed papers and 80 percent of internal documents. Yet, 81 percent of editorial-style advertisements it placed in the New York Times from 1989 to 2004 expressed considerable doubt.

Their conclusion?

Available documents show a discrepancy between what ExxonMobil’s scientists and executives discussed about climate change privately and in academic circles and what it presented to the general public. The company’s peer-reviewed, non-peer-reviewed, and internal communications consistently tracked evolving climate science: broadly acknowledging that AGW is real, human-caused, serious, and solvable, while identifying reasonable uncertainties that most climate scientists readily acknowledged at that time. In contrast, ExxonMobil’s advertorials in the NYT overwhelmingly emphasized only the uncertainties, promoting a narrative inconsistent with the views of most climate scientists, including ExxonMobil’s own. This is characteristic of what Freudenberg et al term the Scientific Certainty Argumentation Method (SCAM)—a tactic for undermining public understanding of scientific knowledge. Likewise, the company’s peer-reviewed, non-peer-reviewed, and internal documents acknowledge the risks of stranded assets, whereas their advertorials do not. In light of these findings, we judge that ExxonMobil’s AGW communications were misleading. (references omitted)

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And according to Media Matters (in a study of opinion pieces published between October 2015 and August 2016), the Wall Street Journal

has yet to publish a single editorial, column, or op-ed in support of investigating Exxon’s behavior, and many of its pro-Exxon opinion pieces contain blatant falsehoods about the nature and scope of the ongoing investigations being conducted by state attorneys general.

By comparison, the Washington Post published six opinion pieces about government investigations (4 in favor of Exxon, 2 against), USA Today published three (1 for, 2 against), and the New York Times published one (against)

Clearly, in the case of climate change, both ExxonMobil and the Wall Street Journal have been engaged in pretty slick maneuvers in order to protect their profits.

sanders

For the Wall Street Journal (and Harvard’s Gregory Mankiw), presidential candidate Bernie Sanders is proposing to spend a really big amount of money! $18 trillion! “The largest peacetime expansion of government in modern American history”!

However, as James Kwak explains, that spending figure is meaningless on its own.

Most of that money—$15 trillion—is the expansion of Medicare to cover all Americans. Yes, that’s a lot of money. But we are already spending a ton of money on  health care—with embarrassingly poor results. In 2013, total premiums for private health insurance cost Americans $962 billion, individuals and families paid $339 billion out of their own pockets and “other private revenues” accounted for another $121 billion of health care (data here). That’s $1.4 trillion of health care spending, paid for by families and businesses, most of which would be replaced by Sanders’s plan. Project that out for ten years, add health care inflation, and you’re talking about a lot more than $15 trillion.

At the end of the day, what matters isn’t the amount of money that the federal government spends for health care. What matters is the amount of money that the American people spend for health care. The government is just a device that we use to provide certain services that are better handled collectively than individually. If the government can provide equivalent service at lower prices, then the gross dollar amount involved doesn’t matter.

And, as the folks at the Center for Economy Policy Research add,

This still leaves $3 trillion for us to get frightened over, and this still looks like a really big number. As a point of reference, GDP over the next decade is projected at roughly $240 trillion. This makes the cost of the rest of Sanders’ plans equal to less than 1.3 percent of GDP.

Should we worry about that? The increase in annual military spending from 2000 to the peaks of Iraq/Afghanistan wars was roughly 1.8 percent of GDP. This was also the size of military buildup that took place under President Reagan. Jeb Bush is proposing to cut taxes by roughly this amount if he gets elected.

In short, the additional spending that Senator Sanders has proposed is not trivial, but we have seen comparable increases in the past for other purposes. We can clearly afford the tab, the question is whether free college, rebuilding the infrastructure, early childhood education and the other items on the list are worth the price.

Let’s see, then: $18 trillion over ten years to get decent, affordable healthcare for all, plus fully funded Social Security, improved infrastructure, more affordable college education, paid family and medical leave, strengthening workers’ pensions, jobs for unemployed young people, and better child care.

Sounds like a pretty good deal to me.

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Neil King, Jr., for the Wall Street Journal, is perplexed:

It is in many ways both the ultimate economic puzzle and the great political challenge: Why have American incomes remained so flat, for so long, and what can be done to change that?

Uh, well. Maybe it’s this, maybe it’s that. King just can’t be bothered to figure it out.

So, let’s help him out: American incomes are flat precisely because of the anti-union, free-trade, decrease-taxes, cut-social-programs, don’t-raise-the-minimum-wage policies his newspaper has been promoting for the past three decades.

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The Wall Street Journal notes that rising inequality may pose a problem—because of issues like fairness, political dysfunction, and financial instability.

But doing something about it may be even more of a problem:

One reason U.S. corporate profit margins are at records is the share of revenue going to wages is so low. Another is companies are paying a smaller share of profits on taxes. An economy where income and wealth disparities are smaller might be healthier. It would also leave less money flowing to the bottom line, something that will grab fund managers’ attention.

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The Wall Street Journal, it seems, can’t get enough of Chilean dictator General Augusto Pinochet.

Just last week, the editorial board published a statement in which they argued Egyptians would be fortunate if their newly installed military government behaved like Pinochet’s.

As it turns out, they expressed their admiration for Pinochet in an earlier opinion piece, published in 2010 [ht: mfa] arguing that Chile had survived its earthquake better than Haiti had because of the years of Pinochet dictatorship:

One reason is luck, as the quake hit offshore and away from populated areas, save for the city of Concepción. But even in that city of one million, the death toll might have been worse. That it wasn’t is due in part to Chile’s stricter building codes, which have been developed over long experience with quakes along the Eastern Pacific fault line. Chileans have prepared well for the big one.

But such preparation is also the luxury of a prosperous country, in contrast to destitute and ill-governed Haiti. Chile has benefited enormously in recent decades from the free-market reforms it passed in the 1970s under dictator Augusto Pinochet. While Chileans still disagree about Pinochet’s political actions, they have not repealed most of that era’s economic opening to the world. In the 2010 Index of Economic Freedom, compiled by the Heritage Foundation and this newspaper, Chile is the world’s 10th freest economy. Haiti ranks 141st.

There is, of course, no mention of the brutality of the dictatorship itself—or, for that matter, of the fact that Chile currently has one of the most unequal distributions of income in all of Latin America, which is a legacy of the way the economy was restructured (with the help of Milton Friedman and the Chicago Boys) under Pinochet. As for Haiti, the fact is the country was unprepared precisely because of the legacy of a pair of U.S.-backed dictators and of the successful implementation of “free-market” reforms.

But facts certainly won’t stand in the way of the Wall Street Journal‘s sympathy for the dictator Pinochet.

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On Friday, the Wall Street Journal published an editorial titled “After the Coup in Cairo.” Its final paragraph contained these words:

Egyptians would be lucky if their new ruling generals turn out to be in the mold of Chile’s Augusto Pinochet, who took power amid chaos but hired free-market reformers and midwifed a transition to democracy.

Presumably, this means that those who speak for the Wall Street Journal—the editorial was unsigned—think Egyptians will be fortunate if the new ruling generals preside over a long period of terror.*

Only in America can the editorial board of a major newspaper blithely make such a suggestion.

*That period—which included political repression, mass incarcerations, thousands of political prisoners who were killed, and widespread human rights violations—lasted 17 years in the case of Pinochet.