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Reaganomics v. "Hugo Chaves Economics"

Reported by Melanie - November 20, 2008 -

The guests on Your World today (November 20, 2008) included the likes of Karl Rove, Craig Smith (who wrote a letter in defense of Michael Savage), Peter Ferrara (a privatize Social Security guy), as well as endless editorializing by Cavuto himself. In the face of an 800+ point drop in the Dow over the last two days and a nearly 50% drop since its all time high in October of 2007, they all pushed essentially the same feeble-minded theme, best encapsulated by Ferrara. I'm sure in this regard they're happy as hell that the Democrats won in November. I can only imaging how they'd be spinning this economic mess if McCain was measuring the White House drapes.

Here's Ferrara:

"What's feasible in this political climate is, to say, 'cause, the, Obama's got nine or ten refundable tax credits which he focuses on the middle class. A lot of that money, or most of that money, ah, it's going to cost $1.3 billion, trillion dollars over ten years, ah, much of the money is going to go to people who don't pay income tax."

[...]

The stimulus that they're throwing around is just government spending. It doesn't change incentives and that's what we need."

As for Fannie and Freddie deciding to suspend foreclosures until January, '09: "Well, I think that they're stopping the markets from working. If people can't afford the mortgages" - they're just propping them up - "that's how they made the great depression last ten years because the government kept, if you go back and read the history you'll see they kept doing things like that. Which is they stopped the market from working and it just froze until, you know, they could get it to work."

What we need is a good dose of Reaganomics. Washington is focused, unfortunately, on Hugo Chavez economics and that's what has the markets so spooked."

Comment: No real specifics but clever use of words like "Depression," "froze," "Reaganomics," "get it to work" and "Hugo Chavez economics." No depth. A lack of honest historical perspective. Extraordinarily simplistic. Frequent use of the word "they" (meaning Democrats) even though Republicans are still in the White House, at the Commerce Department and at Treasury. This would be the tenor of the discussion about the economic crisis on Fox's "premiere business news" show. It's shameful but of course Cavuto has no shame so he doesn't care. Who suffers? The viewers. The nation.