• Puerto Rican Reforms (The Money Hole @8PM ET)

      The media spent so much time covering union protests in Wisconsin, that I mostly missed a much bigger protest over much bigger (17,000 government workers fired!) cuts in Puerto Rico.

      When Luis Fortuno became governor in 2009, Puerto Rico's economy was a mess.

      Or, as he told me:

      "Not just a mess. We didn't have enough money to meet our first payroll."

      But he avoided bankruptcy by getting an emergency loan, and immediately cutting Puerto Rico's government. For once, government shrank. Fortuno and the conservative legislature:

      •Laid off 17,000 government workers

      •Froze all salaries in government

      •Cut government spending by 20%

      The changes were more sweeping than any state's, so it's no surprise that the protests were also more ferocious. Demonstrators clashed with the police in front of the governor's mansion. Some carried signs calling him a fascist and a Nazi. One poll shows that if an election were held today, Fortuno would lose, 47 to 25%.

      But the benefits of Fortuno's small government policies are only starting to be realized. It wasn't until this Janurary that Fortuno used the savings from his cuts to reduce corporate taxes from 35 to 25%. He also cut state income taxes in half (a change that will be phased in until 2014.)

      600 construction permits were issued in last few months. Wal-Mart, CostCo, Coca-Cola, and pharmaceutical companies are moving to or expanding in Puerto Rico. Soon, they will provide thousands of new jobs.

      Once people notice that, Fortuno may become popular again. Ronald Reagan, Gov. John Engler of Michigan, and Gov. Gary Johnson of New Mexico all suffered drops in public support when they pushed for small government - but won re-election when people realized that the cuts helped the economy.

      Many of those government workers who were laid off in Puerto Rico now do productive things. In my special, Mayra Gonzalez says she's now GLAD she was laid off because it got her to start her own company. She named it "Law 7" - after the law that fired her.

      Good things happen when the government gets out of people's lives.

      The Money Hole airs Sunday at 8pm EST. It repeats at 11pm.

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      Spending
      The Money Hole
  • This Week's Show -- July 10, 2014

    MEDIA BIAS: When I began my career as a consumer reporter, I had an obvious agenda: Businesses cheat consumers! Government must regulate them! But when I wised up about the problems with government, my bosses resisted, and I stopped receiving Emmy Awards. Emmys reward liberal reporting.

    CENSORSHIP AT CBS: Investigative reporter Sharyl Attkisson has a similar story. She explains why she left CBS after it became "harder and harder to get stories on television" that criticized this government and "any powers that be."

    IS STOSSEL BIASED?: Years ago, journalist Howard Kurtz criticized me for not being objective. I said it's impossible for any journalist to be completely objective. Now that Howard Kurtz is on Fox, we debate again.

    THE OBJECTIVITY MYTH: Andrew Kirell of Mediaite.com says, "every journalist has a point of view and they don't just magically check it the minute they walk in the newsroom door."

    NEW MEDIA: Reason TV's Remy Munasifi uses music videos and parodies to complain about things like politicians' spending. One of his latest parodies highlights the scandal surrounding the VA hospitals. Munasifi discusses his videos, which have gone viral on YouTube.

    RETRO REPORT: It's great there's a new media organization called Retro Report, which reveals media hype of the past ("crack babies," America's landfill "crisis," the "superpredator," etc.) and corrects stories everyone in the media got wrong. I discuss the new show with its executive producer, Kyra Darnton.

    REAL OR FAKE?: Sometimes people in the media say things that are so bizarre, you'd think they were made up. Kennedy of The Independents quizzes FoxBusiness.com's Kate Rogers, Fox Business host Charles Payne and me to see if any of us can tell which quotes are real, and which were made up by my staff.

    MY TAKE: I used to report on lots of scares. CBS even ran an ad for me where someone called me a "guardian angel."

    That's bunk. The only guardian angel is a free and open society. That's what allows innovation, gives people longer lives, and lifts billions out of poverty. But these gradual improvements aren't newsworthy. Scares and disaster make the news.

    News is broken not just because we're biased but because most good and important news happens slowly.

    9PM ET on Fox Business Network