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Economy

Fox News’ John Stossel Blasts Federal Flood Insurance Program, Plans To Collect His Money Anyway

Fox News’ John Stossel railed against the National Flood Insurance Program during an appearance on Fox & Friends on Thursday, blaming the government for encouraging people to build homes in high-risk areas and arguing that private companies should take over the practice.

During the segment, Stossel showed pictures of his own beach front property and explained that while he supported repealing program, he did purchase its coverage and planned to collect its benefits. The contradictory position stumped conservative guest host Peter Johnson Jr,. who couldn’t understand why the longtime libertarian would voluntarily benefit from a governemnt program he opposes:

PETER JOHNSON JR: Wait a second. That are not on the beach that, are not on river fronts that are blocks in that never anticipated that the ocean would come, that the bay would come. They paid their premiums. They’re not rich people like you were. If you’re so rich, why don’t you give the money back? [...]

STOSSEL: Why was the federal government selling it? I blame the politicians. We don’t have special car insurance for Lindsay Lohan. … I paid the premium. I’m going to take the money. Of course you’re going to take the money. [...]

STEVE DOOCY (HOST): You know John, I know you collected three times from the federal government, it was an absolutely great deal…

Watch it:

The federal government established the National Flood Insurance Program in 1968, after private insurers deemed the peril of flood “uninsurable.” The NFIP provides direct coverage for properties and contracts with some 90 private insurers, who mostly service insured properties but bear no insurance risk.

Private insurers were always reluctant to cover floods, noting that they couldn’t possibly “earn excess premiums to cover their cost of capital (they have to pre-fund losses), whereas the U.S. government can easily borrow money to cover catastrophic flood events after they occur.” Unlike private companies, the government can also require homeowners in flood hazard areas to purchase insurance, thus mitigating the problem of adverse selection, wherein only high-risk homeowners buy coverage.

The program has failed to discourage construction in storm-vulnerable areas — it had required county and local governments “to enact zoning and building rules to reduce construction in flood-prone areas” — and in some cases even “paid to have some homes rebuilt multiple times.” Stossel’s beach front house has been rebuilt at least three times– much of it using the federal dollars that he is paid to oppose on television.

Media

Fox News John Stossel: Young People ‘Are Dumb Or Don’t Pay Attention, And They Shouldn’t Vote’

Last night on Fox’s Your World with Neil Cavuto, fellow Fox host John Stossel waxed scientific on the counter-intuitive nature of human intuition. Noting that “we’re alive because our ancestors had the instinct to avoid the tigers and know when to harvest things,” Stossel says that “in a modern economy,” our instincts “are not good.”

His chief example of this theory? “Our instincts say that everybody should vote, but some people are dumb or don’t pay attention, and they shouldn’t vote,” he said. A naturally concerned Cavuto asked him who exactly qualified as “dumb,” to which Stossell replied, essentially, “kids.” Thus, he prescribed that we end the Get Out The Vote campaign because kids don’t pay attention so they don’t deserve to vote:

STOSSEL: I’m not saying we should have a test or something. But this endless cheerleading — let’s go to the rock concerts and register the kids. And the kids aren’t paying attention. And it’s important in a democracy, it’s important to vote. And these are important issues. The people who participate ought to be the ones who pay attention…I’m just saying we shouldn’t have these “Get Out The Vote” campaigns and make these statements: “Everyone has to vote. It’s your patriotic duty!” Well if you’re not paying attention, I think it’s your patriotic duty not to vote.

Watch it via Media Matters:

Stossel apparently likes to time his antipathy for democratic participation with the election cycle. In 2008, he insisted that “some people” — specifically young Americans — should just stay home. In 2010, he believed young people should just “stay in the mall.” After all, “Brain surgery, we don’t want everyone doing brain surgery. And voting is difficult and important too.”

Of course, young voters were very informed on salient issues that matter to them in 2008. And, according to seven separate polls, Fox News viewers — whose average age is in the mid-60s — appear perpetually misinformed. So unless he’s advocating for his own audience stay away from the polls, perhaps it’s Stossel who should just stay away from democracy entirely.

Security

Fox Host: Material Support To Terror Groups Is Okay If You ‘Believe’ In Their Cause

This week on Fox News, anchors Bill O’Reilly and John Stossel discussed former Democratic presidential candidate Howard Dean’s advocacy for the Mujahedeen-e Khalq (MEK), an exiled Iranian opposition group designated as a “foreign terror organization” by the State Department. The leadership of the group is based in Paris, while more than 3,000 former fighters linger in Camp Ashraf — a base set up outside Baghdad in the 1980s when the group allied with Saddam Hussein against Iran — where they face violent harassment by the Iraqi authorities.

O’Reilly and Stossel went through some background about the group and Dean’s history of paid speeches advocating for their removal from the terror rolls and U.S. recognition of the group’s leader, Maryam Rajavi, as the president of Iran.

Their history is shoddy. For example, Stossel blames the group’s U.S. designation solely on acts committed in the 1970s, which he says were carried out by a “nasty fringe” and occurred “30, 40 years ago.” But the MEK only renounced violence in 2001 and fighters were separated from their tanks in Camp Ashraf only in 2003. The U.S. government actually directly accuses the MEK of carrying out terrorist acts as recently as the late 1990s.

But the really staggering ignorance on the part of Stossel is his misunderstanding of the statutes that criminalize material support for groups designated as terrorists. Stossel compares Dean’s paid speeches advocating for the MEK to speeches on behalf of medical industry groups and Stossel’s own paid speeches. O’Reilly, to his credit, pushes back:

O’REILLY: He’s lobbying, and he’s getting paid by this group, Dean, to…

STOSSEL: We don’t know that he’s lobbying for them. He’s made speeches for them, but so has Rudy Giuliani.

O’REILLY: Come on. Why would these guys do that unless they were getting paid?

STOSSEL: Because they say, “Oh, we have Howard Dean speaking here in Belgium. Come over and meet Howard Dean.”

O’REILLY: That’s right. And Dean wouldn’t do that unless they were greasing him.

STOSSEL: Right. They’re greasing him.

O’REILLY: Yes, so he’s getting money from these people.

STOSSEL: So? I make speeches for money.

O’REILLY: Yes.

STOSSEL: If he checked them out and he believes…

O’REILLY: You do the chamber of commerce in Toledo. Not the Muhajadeen.

STOSSEL: If I believed in their cause, as he says he does.

O’REILLY: Oh, yes, he believes in their cause. Socialized medicine people? That’s what he believes in.

STOSSEL: He’s also taken money to change the patent rules for pharmaceutical companies. I don’t blame him for doing that.

O’REILLY: Dean is a lobbyist now, that’s what he does. And he gets paid by MSNBC.

Watch the whole exchange:

Stossel’s defense closely mirrors that of Rudy Giuliani, Tom Ridge, and Fran Townsend (a paid CNN contributor), who argued after they were accused of material support for terrorism that they didn’t consider the MEK to be a terror group.

That Dean was paid by the group — or more accurately, American supporters of the group (if that’s indeed the case) — is less important than whether or not he made what is considered speech that was “coordinated” with the group. Having spoken to actual MEK rallies in Europe alongside Rajavi, that is a difficult defense for Dean and other paid or unpaid advocates to make. (This is not to say one shouldn’t be able to speak in favor of delisting the MEK, or that they do not deserve today to be delisted, but simply that until they are delisted, the laws on the matter are clear.)

But one does not simply get to choose which laws they follow and which designations they recognize. In a nation where the rule of law matters, it needs to be applied equally to all violators, irrespective of what they or others feel about it. That’s why the false comparison between the MEK and the Toledo Chamber of Commerce is so staggering.

Media

Fox’s First Mention Of Paul’s Civil Rights Controversy Is An Interview With Paul Defender John Stossel

As ThinkProgress noted last night, Kentucky GOP Senate candidate Rand Paul criticized a section of the Civil Rights Act of 1964 in an interview with the Louisville Courier-Journal because he doesn’t “like the idea of telling private business owners” that they can’t discriminate. Paul defended his position in subsequent interviews with MSNBC and NPR, admitting that there are sections of the bill he doesn’t “favor.” “When you support nine out of 10 things in a good piece of legislation, do you vote for it or against it?” Paul said to Rachel Maddow. “And I think, sometimes, those are difficult situations.

The conservative media largely stayed silent on Paul’s incendiary position until after he backtracked in a statement declaring that he “will not support any efforts to repeal the Civil Rights Act of 1964″ and an interview with Laura Ingraham in which he said that he would have voted for the law. Fox News, which hosted Paul at least 21 times since last May, didn’t feature a segment on the controversy until this afternoon when Megyn Kelly hosted libertarian John Stossel, who said that he’s “in total agreement” with Paul:

KELLY: He is getting excoriated for suggesting that the Civil Rights Act — what he said was, look, it’s got ten parts essentially. I favor nine. It’s the last part that mandated no discrimination in places of public accommodation that I have a problem with because you should let businesses decide for themselves, you know, whether they’re going to be racist or not racist because once the government gets involved it’s a slippery slope. Do you agree that?

STOSSEL: Totally. I’m in total agreement with Rand Paul. You can call it public accommodation, and it is, but it’s a private business and if a private business wants to say we don’t want any blonde anchorwomen or mustached guys, it ought to be their right.

To her credit, Kelly challenged Stossel aggressively, saying that it was “necessary” to bar private businesses from discriminating in order to guarantee equal rights. But Stossel persisted, saying that he would repeal the section of the Civil Rights Act that covers private businesses:

STOSSEL: And I would go further than he was willing to go, as he just issued the statement and say it’s time now to repeal that part of the law.

KELLY: What?

STOSSEL: Because private businesses ought to get to discriminate. And I won’t ever go to a place that’s racist. And I will tell everybody else not to and I’ll speak against them, but it should be there right to be racist.

Watch it:

As The American Prospect’s Adam Serwer points out, Paul and Stossel’s “free market fundamentalism is being expressed after decades of social transformation that the Civil Rights Act helped create, and so the hell of segregation is but a mere abstraction, difficult to remember and easy to dismiss as belonging only to its time.” “It’s much easier now to say that ‘the market would handle it.’ But it didn’t, and it wouldn’t,” writes Serwer.

Paul’s campaign has backtracked even more now, with spokesman Jesse Benton issuing a statement that Paul “supports” the power of the federal government “to ensure that private businesses don’t discriminate based on race.” Page One Kentucky notes, however, that in 2002, Paul wrote a letter to the Bowling Green Daily News in opposition to the Federal Fair Housing Act because it prohibited discrimination on private property. “Decisions concerning private property and associations should in a free society be unhindered. As a consequence, some associations will discriminate,” wrote Paul.

Update

Bruce Bartlett writes, “as we know from history, the free market did not lead to a breakdown of segregation. … Thus we have a perfect test of the libertarian philosophy and an indisputable conclusion: it didn’t work. Freedom did not lead to a decline in racism; it only got worse.”

Media

Lou Dobbs Slams ‘Vile Stupidity And Ignorance’ Of ‘Annoying’ Geraldo Rivera

This afternoon, Lou Dobbs attacked Fox News host Geraldo Rivera for stating that Dobbs himself is “almost single-handedly responsible for creating, for being the architect of the young-Latino-as-scapegoat for everything that ails this country.” While Rivera accuses Dobbs of defaming an entire race of people, Dobbs insists that he loves immigrants and Latinos and claims that his accusations are nothing but a reflection of Rivera’s “stupidity” and the company of “ethnocentric left-wing activists” that he keeps:

DOBBS: I’m just still fuming over something that Geraldo Rivera said. I shouldn’t let — This guy is nothing but a fiction of his own imagination and a figment of whatever he sees in the mirror. But, I gotta tell you — the guy is so annoying. I should not let people get to me like this, but you know what? I’m starting to get short of patience with them. [...]

Geraldo Rivera wouldn’t know a fact if it hit him in the rear end — and that would probably be an appropriate place if you wanted him to absorb the information. … This is the kind of vile stupidity and ignorance that he spews everywhere he goes.

Listen here:

“Over the years, Lou Dobbs has consistently used his CNN platform to spread hatred and fear,” states Drop Dobbs, one of three campaigns aimed at pressuring CNN to hold Dobbs to journalistic standards or drop him altogether. News Corp. is reportedly “keen” on luring Dobbs over to the Fox Business Channel. However if CNN does drop Dobbs, it doesn’t look like he’ll have too many friends over at Fox. Last week, Dobbs ripped Fox Business News anchor John Stossel as a “self-important ass” with his “own brand of myopic idiocy” after Stossel told Fox News’ “rodeo clown” Glenn Beck that he does not support “the Lou Dobbs-kind of rants about immigrants wrecking America.” Rivera says that one of his Fox News bosses assured him that Dobbs “is not coming to Fox News.”

Politics

John Stossel: ‘I Don’t Subscribe To Lou Dobbs-Kind Of Rants About Immigrants Wrecking America’

102109jsLatino and pro-immigrant activists have launched two campaigns, Drop Dobbs and Basta Dobbs, which are aimed at pressuring CNN to “hold Mr. Dobbs to journalistic standards” or dump him altogether. Perhaps sensing an opportunity, Fox News’ senior vice president for programming, Bill Shine, is trying to court Dobbs over to Fox’s business channel.

However, it seems not everyone at Fox News will be welcoming Dobbs with open arms. The network’s newest addition, John Stossel, issued some scathing criticisms of Dobbs in a radio interview today with fellow Fox colleague Glenn Beck. Stossel indicated that he doesn’t support conservatives like Dobbs who rail on immigrants. Beck asked Stossel whether he is willing to “throw his vote away” and not vote for a Republican. Stossel firmly held that if “conservative means stop all immigration and some other things that conservatives say,” then he will not vote Republican:

STOSSEL: If it means the Lou Dobbs-kind of rants about immigrants wrecking America, I don’t subscribe to that. I think immigrants by and large do good things for America.

BECK: I think immigrants I think we need more immigrants, ones that want to be Americans because those immigrants are the only ones that are reminding us that we better get off our ass, we’ve got liberty here and we forget about it all the time.

Listen:

Lou Dobbs’ rants include promoting the “Aztlan” conspiracy theory about Mexican immigrants trying to reconquer portions of the American southwest, falsely claiming that immigrants are bringing leprosy to the US, and musing about whether President Obama himself is an “undocumented” immigrant.

Politics

Global warming skeptic John Stossel to join Fox News.

TVNewser reports that ABC News’ John Stossel, a libertarian reporter, “is leaving ABC to join Fox News Channel and Fox Business Network.” Stossel, a climate change skeptic who recently gave the keynote speech at an Americans for Prosperity rally, “will host a weekly, one-hour program for the 2-year-old business channel” as well as “four, hour-long specials on Fox News, much like the business/consumer specials he’d hosted for years on ABC.” Stossel has regularly appeared on Fox to promote his work over the years.

Yglesias

John Stossel’s Tall Tales About Middle Class Income

abc_stossel_070420_mn.jpg

For reasons that have long escaped me, ABC News thinks it’s a good idea to have a fanatical libertarian pundit on their payroll and presented as a newscaster. They don’t balance him with any social conservatives. They don’t balance him with any liberals. They don’t even balance him with any opinionated moderates. Instead, ABC News puts out a product that’s mostly banal TV news and sometimes 100-proof “we should let corporations do whatever they want,” often riddled with errors. Apparently the pundit in question, John Stossel, has a special coming out later today and he’s been hyping it on various conservative media. Hence this exchange on the Bill O’Reilly show:

O’REILLY: Do you believe the middle class in 2009 is worse off than it was 20 years ago in this country?

STOSSEL: No, I think the middle class is much better.

O’REILLY: Because that’s the liberal line. The liberal line is the middle class get pounded and they need my money and your money. You make an enormous amount of money, Stossel. The middle class needs our money because they just can’t keep up. But what about the middle class?

STOSSEL: The middle class has gone from something like $25,000 average income in today’s dollars to $75,000 today.

The basic liberal line is that middle class wages have stagnated for decades while the rich have gotten richer. I think you can make a credible counterargument that since the CPI doesn’t properly account for “new goods” (nobody had an iPhone or a DVD player in 1988, etc.) that this factoid is unduly bleak and actually there have been modest improvements in living standards due to the improvements in available gadgets. Alternatively, you could argue that this is offset by things like the increase in commute times, the decrease in air travel quality, and other elements of quality of life that have been on the decline. What you can’t really argue with is this chart that shows that something’s gone amiss:

medianwage.jpg

I got that chart from Heather Boushey, one of our economists here at CAP. The other salient point here, of course, is that it’s hard to understand where Stossel got this $75,000 figure. One assumes that the median American household has a middle class income. And the median American household has an income of about $50,000 a year. That’s a lot less than Stossel’s number. Heather and I both immediately thought of some work Third Way’s done that’s probably the source of Stossel’s “finding.” In particular, Third Way (a valued progressive ally!) points out that “in 2006, the median income of working-age husband-wife couples (ages 25-59) was $73,765.” By this standard, Stossel is only being a little inaccurate about the current level of middle class income, though nobody can say where this trend information comes from. On the other hand, it’s not clear why you would redefine “middle class” from meaning “similar to the typical American” to meaning “married couples aged 25-59.” It’s interesting that married couples ages 25-59 have an average income that’s a lot higher than the income of the median American, but it’s not clear what this tells us about middle class well-being.

Here’s another chart:

incomeshares.jpg

One thing you could say on behalf of the Stossel/ThirdWay approach is that the ideal of a married household ages 25-59 encompasses the very essence of middleclassitude and everyone else doesn’t really count. Thus it turns out that the average middle class family makes about $75 grand a year. But all that follows from this, if you look at the chart above, is the conclusion that the United States doesn’t qualify as a “middle class” society. Instead, perhaps, we’re a country like Pakistan or Brazil (SEE CORRECTION BELOW) where there’s a tiny hyper-wealthy elite such that one percent of the population monopolizes 20 percent of the income, then there’s a larger middle class, and then a broad majority of the population that has a sub-middle class standard of living.

That, however, isn’t the standard way of thinking about a developed world democracy, and I don’t see any particular reason we should adopt it. Instead, the typical American family is a middle class family, and it’s quite a bit poorer than Stossel suggests and has been suffering from a long period of wage stagnation. I would also note that the aforementioned Third Way report was from a little while back and includes the claim that progressives are wrong to worry about rising indebtedness because those debts have been paired with rising asset values. Joke’s on them. Or the American people.

Update

CORRECTION: Reader S.A. observes that Pakistan’s Gini Coefficient is .330, about the same as Canada’s 0.331 and way lower than Brazil’s 0.6. I apologize for the error. Tales of Pakistani social dysfunction are very much in the air, which led to a lazy mistake that only re-enforces America’s hazy understanding of that country.

Climate Progress

Larry King Live Panders To Big Oil ‘Heroes’

David O’Reilly, Chevron CEOCNN’s Larry King Live offered a cavalcade of oil, coal, and nuclear industry apologists last night, telling watchers that “all of us” are to blame for high gas prices, oil companies are “heroes,” and that we should convert coal to gasoline, drill for oil in the North Pole, and build more nuclear plants. Not once was global warming mentioned, or how the policies advocated by the guests would lead us on a path to climate catastrophe.

Chevron’s CEO, David O’Reilly, sat with King throughout the show, defending his company’s record profits and deflecting questions about how much he personally makes. When asked by King if he feels any guilt for Chevron’s $18 billion profit last year, O’Reilly blamed “all of us” for being “too complacent about energy.” O’Reilly also pushed for lifting the offshore drilling moratorium, saying drilling in protected areas “can be done safely” but “will take some time.” He continued:

But, the reality is it can be done. It’s urgent enough that if we don’t start today, my kids and my grandkids will suffer because of it.

Unlike the O’Reilly clan, most “kids and grandkids” today do not have oil executives for grandparents to pass down their obscene profits — in the past five years, O’Reilly has pulled in $82.51 million. It’s certainly possible that the O’Reilly inheritance might “suffer” a bit if Chevron’s oil lust is kept in check.

However, all children today will suffer as they try to survive on the radically changed and deteriorated planet if fossil fuel use, as O’Reilly advocates, continues unabated for decades to come.

King’s guests also included the notorious global warming denier John Stossel, who pushed the climate-killing coal-to-liquids technology, then sucked up to O’Reilly with this spiel:

I think these oil companies are heroes. Think what it takes to bring this stuff to us, across an ocean, refine it into three types of gasoline, put it in trucks that cost 100,000 dollars each, ship that to gasoline stations that have to have this expensive equipment so we don’t blow ourselves up pumping our own gas.

O’Reilly’s response? “That’s nice to hear someone on our side.”

Watch it:

Stossel wasn’t the only one. In opposition to O’Reilly’s promotion of offshore drilling, Gov. Brian Schweitzer (D-MT) advocated drilling in his state of Montana. Larry King’s listeners also heard from Nancy Pfotenhauer, a McCain spokeswoman who repeated her claim — despite all evidence — that “Senator McCain’s plan has provisions to immediately offer some relief.” She somehow failed to mention that she is also a career hack for Koch Industries, the $90 billion right-wing pollution-industry giant. King joined in the fun by asking when Chevron would start drilling for oil in the North Pole — seemingly anxious for when global warming will have eliminated the ice that has been there since the dawn of the human race.

CNN’s other friends to their fossil-industry sponsors include Ali Velshi, a dedicated coal-industry supporter, and Glenn Beck, a global warming denier who recently told Americans, “Be thankful for big oil.”

Digg it!

UPDATE: Media Matters reports that NBC and MSNBC have aired multiple reports on offshore drilling — including segments reported live from a Chevron oil rig — without explaining “environmental concerns” or disclosing GE’s drilling connection.

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