Cavuto ignores reality in claiming “not a one” economist “credits that stimulus”
Posted in Main Blog (All Posts) on August 15th, 2009 4:43 am by HL
Cavuto ignores reality in claiming “not a one” economist “credits that stimulus”
Neil Cavuto falsely claimed that “not a one, not a one” economist in the Bloomberg survey of economists “credits that stimulus” with helping the economy begin to recover. But in presenting the survey findings, Bloomberg in fact reported that Kenneth Goldstein, an economist at the Conference Board in New York, stated, “We’ve averted the worst, and there are clear signs the stimulus is working.” Additionally, several independent economists have concluded that the stimulus has already played a significant role in helping the economy begin to recover.
From the August 13 edition of Fox News’ Your World with Neil Cavuto:
REP. CHAKA FATTAH (D-PA): If you look at the Bloomberg survey of economists, right? You see that there’s a general consensus now that we’re headed in the right direction.
CAVUTO: Right.
FATTAH: We are not going to pull back. We’re going to go forward, and we’ll be held accountable.
CAVUTO: And you also know — no wait —
FATTAH: And let the Democratic Party be held accountable —
CAVUTO: — you also know from that survey, not — not a one, not a one credits that stimulus. Right?
Bloomberg quoted economist’s assessment: “We’ve averted the worst, and there are clear signs the stimulus is working”
Economist Kenneth Goldstein: “We’ve averted the worst, and there are clear signs the stimulus is working.” In presenting its survey of economists, Bloomberg reported in an article headlined, “U.S. Enters Recovery as Stimulus Refutes Skeptics“: “Recovery from the worst recession since the 1930s has begun as President Barack Obama’s fiscal stimulus — derided as insufficient and budget-busting months ago — takes effect, a survey of economists indicated.” Bloomberg further reported, ” ‘We’ve averted the worst, and there are clear signs the stimulus is working,’ said Kenneth Goldstein, an economist at the Conference Board in New York.” [Bloomberg News, 8/12/09]
Independent economists say stimulus has helped economy begin to recover
Independent economists say the stimulus bill has helped the economy begin to recover. In addition to saying that it is too early for the stimulus package to have fully taken effect, many economists have also concluded that the stimulus has already played a significant role in helping the economy begin to recover:
- Dean Baker: “The stimulus worked and we need much more.” Center for Economic and Policy Research co-director Dean Baker stated, “The stimulus worked and we need much more. … The second quarter GDP data showed clear evidence of the impact of the stimulus.” [Politico, 8/2/09]
- Robert Greenstein: Without the stimulus, “the economy and the job prospects for millions of Americans would be worse.” Center on Budget and Policy Priorities executive director Robert Greenstein wrote that “the stimulus is working pretty much as policymakers intended. Without it, the economy and the job prospects for millions of Americans would be worse.” [The Washington Times, 7/28/09]
- Mark Zandi: No accident “that the recession’s coming to an end now, because this is when the current stimulus package is providing its maximum benefit to the economy.” During an interview with Mark Zandi, chief economist at Moody’s Economy.com, CNBC’s Maria Bartiromo asked Zandi, “Is the stimulus working, and do we need a second one?” Zandi replied: “You know, Maria, I think it’s premature to know. I mean, I’m very encouraged by what the stimulus has done so far. I mean, I really don’t think it’s any accident that the recession’s coming to an end now, because this is when the current stimulus package is providing its maximum benefit to the economy. But we’ll have to wait until the end of the year, I think, to gauge whether it’s enough, whether the economy is on sound ground, whether the recovery is gaining traction.” [CNBC’s The Wall Street Journal Report, 7/31/09]
From the August 13 edition of Fox News’ Your World with Neil Cavuto:
CAVUTO: But you know things go in cycles, right? The average recession in this country lasts 18 months; this one a little more than 20 months. So maybe we are just cycling out of this, and — no offense to the president or anyone else — this is just, you know, a cycle event. It has nothing to do with your stimulus or the money it’s going toward unemployment compensation, none of that.
FATTAH: Hey, look, all I can tell you is that, if you were listening to business shows like your own five months ago, or in September, when this thing — the bottom fell out, the world was coming to an end, you saw what was going on in our markets, right? You saw the banking collapse.
This was — these were needed help, and we are going to follow through on this program.
CAVUTO: Well, you know, Congressman —
FATTAH: And Democrats will be glad —
CAVUTO: — I’ll tell you what — I will tell you what, my friend.
FATTAH: Democrats will be glad —
CAVUTO: I’ll tell you what. If you are — you know what?
FATTAH: — to take all the credit or all the blame at the end of the day.
CAVUTO: You are a very — Congressman, you are a very smart, patriotic American, so I take it at your word that if you were watching this show five or six months ago, you would hear that we were saying then that very little of this stimulus would get out, and that we would probably cycle out of this recession.
And if you were listening to this show six months prior to that, at the start of the financial crisis, when we had a different president in office, and he was bailing out and rescuing banks and later auto companies, we said then, as we later said under this president, that it would be a mistake.
So, if you had been listening then and even before then, you would have realized that we would have trusted the markets and the economic cycle to get out of this mess, and not the government, right?
FATTAH: Well, look. If you look at the Bloomberg survey of economists, right? You see that there’s a general consensus now that we’re headed in the right direction.
CAVUTO: Right.
FATTAH: We are not going to pull back. We’re going to go forward, and we’ll be held accountable.
CAVUTO: And you also know — no wait —
FATTAH: And let the Democratic Party be held accountable —
CAVUTO: — you also know from that survey, not — not a one — not a one credits that stimulus. Right?
FATTAH: — for our stewardship of the economy.
CAVUTO: OK.
FATTAH: Look at — let —
CAVUTO: All right.
FATTAH: Let the Republicans be held accountable for the Bush economy.
CAVUTO: You are right.
FATTAH: We will be glad to be held accountable —
CAVUTO: You are right, Congressman.
FATTAH: — as we recover and move forward —
CAVUTO: A blame on both sides.
FATTAH: — under the Obama administration.
CAVUTO: All right.
