The worst possible 'solution' to the high cost of gasoline would be price controls, since they would simultaneously discourage production while driving up demand. But running a close second and third in the bad-idea sweepstakes would be a windfall-profits tax on oil companies and a cap on the amount oil companies can pay their executives.



Anyone with a working TV set knows that the broadcast networks have hyped the high gas price story (“Pain at the Pump”) to ridiculous levels. A new MRC study of the ABC, CBS and NBC morning and evening news shows found a whopping 183 stories in just three weeks, an avalanche of TV coverage that (helpfully to Democrats planning their midterm election strategy) has buried far more important good economic news, like robust economic growth, low unemployment and a booming stock market.

One device the networks have used to maintain an outraged tone in all of their coverage has been to plant themselves next to gas pumps and find motorists who aren’t embarrassed about whining on camera. The MRC analysts who went through all of the coverage — Geoff Dickens, Brian Boyd, Mike Rule and Scott Whitlock — counted 151 sound bites from gas buyers during the period we studied, April 12 to May 2.


ABC seems to love the story of Rush Limbaugh's "drug deal." The same story that led the Friday edition of ABC’s World News Tonight was also mentioned at the top of this morning’s Good Morning America, even though there's nothing new to say.



All three network morning shows played the envy card Thursday morning, as they hyped the “record high profits” and “corporate greed” of American oil companies. High on their agenda: ExxonMobil’s announcement of $8.4 billion in profits, which the networks implied was scandalous given the high price of oil.

But unstated in the network coverage was the fact that the U.S. government took in more than $7 billion from ExxonMobil during the first quarter of 2006, a jump of more than $2 billion from the same time period in 2005. And that doesn’t count the more than $7.6 billion in excise taxes — the gas tax — that ExxonMobil collected for the government during the same quarter. Plus another $11 billion in "other taxes" and ExxonMobil sent the government more than $25 billion in the first quarter of 2006 -- three times more than the amount network reporters seem to feel is obscene.

Big Government is making more off of high gas prices than Big Oil.


The media has recently put on quite a show about high oil prices. On Good Morning America reporter Ron Claiborne is spending the week on the road and hunting down motorists who want to "talk back to the oil companies". Today he was live from a gas station in Cleveland, Ohio.



Networks focus on ‘staggering’ pay and pensions for Exxon and other corporate CEOs, even as media companies fight SEC rule on disclosing high salaries.

Free Market Project

Gas price rage has blended with executive pay rage recently, since the media have been bashing ExxonMobil’s departing CEO, Lee Raymond, for his pay and pension package.

“Runaway pay,” said NBC’s Brian Williams on April 20, calling executive salaries and benefits “stratospheric” and “staggering.” CBS’s Bob Schieffer compared Raymond’s “golden” retirement to the “average American” on April 13. “How much is too much?” asked NBC’s Matt Lauer on April 11. And ABC’s “Good Morning America” said, “You Must Be Kidding!” referring to Raymond’s package as “stunning” on April 14.

Criticizing highly-paid executives has been in vogue at the news networks lately, but there’s something the anchors aren’t telling you: their colleagues’ top wages could soon be disclosed to the world, and Big Media are fighting it.

Large media companies have been doing everything within their power to hide the compensation plans of their own highest-paid employees from public disclosure. As reported by the Associated Press on April 11:



All three broadcast morning shows this morning noted President Bush’s choice of Tony Snow as new White House press secretary, but only ABC’s Good Morning America saw the need to parrot from the thin list of anti-Bush quotes from Snow’s columns being passed around by the liberal Center for American Progress (although reporter Jessica Yellin presented the quotes as if they were the result of her own research, hiding the fact they came from Democratic partisans).

MRC news analyst Brian Boyd caught Yellin’s piece on Snow, which aired at about 7:05 EDT this morning (Wednesday), with the snarky headline "SNOW JOB" on the screen: “Snow knows both politics and the media. He was the director of speechwriting for George Bush, Sr., and has clocked a decade as a conservative commentator for Fox News,” Yellin began.

Snow has been a conservative commentator for Fox News, of course. But after Joe Lockhart became Bill Clinton’s White House press secretary in 1998, no one at ABC described him as a “former liberal producer for ABC News.”


Have a look at the two screen captures from this morning's shows. Same issue, different takes. Good Morning America is apparently sure that gas price gouging exists, and wants to stop it. 'Today' is agnostic, simply posing the question whether gouging is going on.

But when you turn to the substance of the two segments, there was one consistency: neither show adduced any evidence of gouging. Not a scintilla to show that oil companies are in fact colluding. And without collusion there can be no sustained gouging, since any company that pushed prices higher than market levels would immediately lose its sales to competitors.

Over at GMA, the guest was Senate Majority Leader Bill Frist, for all the world looking like a politician wanting to give the appearance of doing something about a problem over which he in fact has little control.

Sawyer opened by raising the gouging issue: "You are targeting gouging, which is the guy at the pump, the middle guy. How is this going to help and how soon, specifically, the person paying $2.91 on average right now?"

A seemingly sympathetic Frist replied:"Diane, you're exactly right. This $2.91, over $3 in some areas right now, cannot be sustained by the person driving their kids to school or filling up their tractor with fuel."



On the heels of MSM outrage at the retirement package granted to Exxon/Mobil CEO Lee Raymond [see Brent Baker's report here], Good Morning America was back at the class-warfare ramparts this morning with a new target in its sights, Dr. William McGuire, head of UnitedHealth Group. As the result of share prices that have increased over 7,000 percent, stock options granted McGuire are currently worth in excess of $1 billion.



Good Morning America will use even the smallest excuse to give Jane Fonda a microphone. This morning Fonda was invited on the program to talk about the newly released paperback version of her autobiography, "My Life So Far".


Hard-left anti-war reporter Seymour Hersh, who tried so hard in 2004 to get President Bush defeated with the Abu Ghraib scandal, and was given many media opportunities to make his case, had another great week in the media this week with his New Yorker article suggesting Bush wanted to drop bunker-busting nukes on Iranian nuclear sites. As usual, the article was larded with anonymous sources that no one can check or evaluate for political motives.



MRC's Brian Boyd found this morning that like NBC, ABC's Good Morning America also leaped on the chance to interview Rumsfeld-bashing Gen. John Batiste. Co-host Diane Sawyer said in the show's first secondsRevolt of the generals. As of this morning, six retired generals call for Defense Secretary Rumsfeld to resign. One of them, a top battlefield commander, joins us live."