“The Media-Lobbying Complex”
This Nation article from last month chronicles the pervasive contamination of television news by lobbyists and other parties with interests that are not disclosed to viewers:
President Obama spent most of December 4 touring Allentown, Pennsylvania, meeting with local workers and discussing the economic crisis. A few hours later, the state’s former governor, Tom Ridge, was on MSNBC’s Hardball With Chris Matthews, offering up his own recovery plan. . . . The first step, Ridge explained, was to “create nuclear power plants.” Combined with some waste coal and natural gas extraction, you would have an “innovation setter” that would “create jobs, create exports.”
As Ridge counseled the administration to “put that package together,” he sure seemed like an objective commentator. But what viewers weren’t told was that since 2005, Ridge has pocketed $530,659 in executive compensation for serving on the board of Exelon, the nation’s largest nuclear power company. As of March 2009, he also held an estimated $248,299 in Exelon stock, according to SEC filings.
Moments earlier, retired general and “NBC Military Analyst” Barry McCaffrey told viewers that the war in Afghanistan would require an additional “three- to ten-year effort” and “a lot of money.” Unmentioned was the fact that DynCorp paid McCaffrey $182,309 in 2009 alone. The government had just granted DynCorp a five-year deal worth an estimated $5.9 billion to aid American forces in Afghanistan. The first year is locked in at $644 million, but the additional four options are subject to renewal, contingent on military needs and political realities. . . .
In 2003 The Nation exposed McCaffrey’s financial ties to military contractors he had promoted on-air on several cable networks; in 2008 David Barstow wrote a Pulitzer Prize-winning series for the New York Times about the Pentagon’s use of former military officers–many lobbying or consulting for military contractors–to get their talking points on television in exchange for access to decision-makers; and in 2009 bloggers uncovered how ex-Newsweek writer Richard Wolffe had guest-hosted Countdown With Keith Olbermann while working at a large PR firm specializing in “strategies for managing corporate reputation.” . . .
Since 2007 at least seventy-five registered lobbyists, public relations representatives and corporate officials–people paid by companies and trade groups to manage their public image and promote their financial and political interests–have appeared on MSNBC, Fox News, CNN, CNBC and Fox Business Network with no disclosure of the corporate interests that had paid them. Many have been regulars on more than one of the cable networks, turning in dozens–and in some cases hundreds–of appearances. . . .
As the recession slammed the country in late 2008 and government bailouts followed, lobbyists and PR flacks took to the air with troubling regularity, advocating on behalf of clients and their interests while masquerading as neutral analysts. One was Bernard Whitman, president of Whitman Insight Strategies. . .
According to its website, Whitman Insight Strategies has worked for AIG to “develop, test, launch, and enhance their consumer brand,” and continues to assist the insurance giant “as it responds to ongoing marketplace developments.” . . . During a September 18, 2008, Fox News appearance to discuss Sarah Palin, Whitman proceeded to lambaste John McCain for proposing to “let AIG fail,” saying that this demonstrated “just how little he understands the global economy today.”
On March 25, 2009, in the midst of a scandal over AIG’s executive bonuses, Whitman appeared on Fox News again. “The American people were understandably outraged about AIG,” he began. “Having said that, we need to move beyond anger, frustration and hysteria to really get down to the brass tacks of solving this economy,” he advised the public. In neither instance was Whitman’s ongoing work for AIG mentioned.
Another person with AIG ties is Ron Christie, now at the helm of his own consultancy. While working at Republican-leaning firm DC Navigators, now Navigators Global, from 2006 through September 2008, Christie was registered to lobby on behalf of the insurance giant, lobbying filings show. During that period, AIG shelled out $590,000 to DC Navigators.
On September 18, 2008, Christie went on Hardball to discuss the government’s response to AIG’s near implosion days earlier. He was introduced only as a Republican strategist. As Chris Matthews mocked a presidential press conference on the financial crisis held earlier that day, Christie interrupted to say President Bush was “smart to have gotten a former person from Goldman Sachs who is a very bright man, who understands the markets and liquidity.” Christie was referring to Treasury Secretary Henry Paulson, who had once been the chair and CEO of Goldman Sachs and who played a pivotal role in the AIG bailout. “This is not a political sideshow. This is putting the right person in his administration to deal with this crisis,” Christie said.
Bigger players were on AIG’s payroll, too: shortly after receiving its first bailout, in 2008, AIG hired PR mega-firm Burson-Marsteller to handle “controversial issues.” In April 2009, B-M hired former White House press secretary Dana Perino, already an established TV pundit. A month later she was picked up as a contributor to Fox News, where she has had occasion to discuss the economic meltdown.
This past July, for example, Perino joined a roundtable on Fox Business Network’s Money for Breakfast, which briefly noted her affiliation with B-M but neglected to mention its link to AIG. When a fellow guest commented that AIG had been “highly regulated” before the crash, Perino pounced, suggesting that current financial reform efforts demonstrate how “Washington has a tendency to overreact in a crisis.” When Gary Kalman of USPIRG suggested that regulations had, in fact, been rolled back for decades, Perino scoffed, “I don’t think there are many business people who would actually agree with that.” . . .
Terry Holt, once a spokesman for the Republican National Committee and for House minority leader John Boehner, has also been, on and off since 2003, a lobbyist for the health insurance trade group America’s Health Insurance Plans. . . .
On March 5, 2009, Holt, introduced simply as a Republican, told MSNBC anchor David Shuster that the Obama administration was “going to, you know, cut Medicare benefits for something like 11 million seniors to start this big healthcare reform project.” By October AHIP [Holt's client] was running ads in several states against the health reform bill that asked, “Is it right to ask 10 million seniors on Medicare Advantage for more than their fair share?”
Holt also made several appearances to discuss healthcare policy on CNN, where his affiliation with insurers was cited on several occasions, starting in September, though not during a September 14 appearance on The Situation Room, when Holt discussed healthcare reform efforts. The network subsequently experienced a small scandal in October when blogger Greg Sargent revealed that political analyst Alex Castellanos, a frequent commentator on CNN, had been helping craft attack ads for AHIP–including the one that referred to the “10 million seniors” losing Medicare benefits–while discussing healthcare policy on air, identified only as a Republican strategist. . . .
On September 24, 2009, Dick Gephardt appeared on MSNBC’s Morning Meeting, where he labeled the public option “not essential.” Gephardt was asked by host Dylan Ratigan to discuss healthcare reform in light of his experience as a Congressman during the Clinton effort in 1993 and now simply as “an observer through this process.” There was no mention of his work advising insurance and pharmaceutical interests through his lobbying firm Gephardt Government Affairs, nor any mention that Gephardt is a lobbyist for NBC/Universal.
Likewise, Tom Daschle dropped by MSNBC on May 12 and July 2, 2009, and NBC’s Meet the Press on August 16, 2009. At each appearance he discussed healthcare reform with no mention of his work on behalf of lobbying firm Alston & Bird, which advises insurer UnitedHealth Group. . . . [O]n January 11, the former Senate majority leader returned to MSNBC to discuss healthcare with Andrea Mitchell. In the nearly ten-minute interview, his insurance work went unmentioned. . . .
At times, it begins to seem as though the problem is beyond fixing, an unfortunate but unavoidable reality of our media and political landscape, in which the lines between public service and corporate advancement are so blurred. It is clear that the pressure applied on the networks so far has not resulted in systemic change. Even in the aftermath of increasing scrutiny–particularly after David Barstow’s Pulitzer Prize-winning exposés in the Times–General McCaffrey continues to appear on television without any caveats about his work for military contractors. As Salon blogger Glenn Greenwald has observed, none of the networks involved in the scandal have ever bothered to address Barstow’s findings on air, and they noticeably omitted Barstow’s name from coverage of the 2009 Pulitzers. “It’s almost like a mysterious black hole that this issue, which is enormous, is getting no attention from the offenders themselves,” the Society for Professional Journalists’ ethics committee chair Andy Schotz told me recently.
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