John F. Stossel was born on March 6, 1947, in Chicago Heights, Illinois, the younger of two sons, to Jewish parents who left Germany before Hitler rose to power. They joined a Congregationalist church in the U.S., and Stossel was raised Protestant. He grew up on Chicago's affluent North Shore and graduated from New Trier High School. Stossel characterizes his older brother, Tom, as "the superstar of the family", commenting, "While I partied and played poker, he studied hard, got top grades, and went to Harvard Medical School."

Progressive organizations such as Fairness and Accuracy In Reporting (FAIR) and Media Matters for America (MMfA) have criticized Stossel's work, for what they perceived as a lack of balance of coverage and distortion of facts. For example, Stossel was criticized for a segment on his October 11, 1999, show during which he argued that AIDS research has received too much funding, "25 times more than on Parkinson's, which kills more people." FAIR responded that AIDS had killed more people in the United States in 1999, but Stossel was speaking in more broad terms than a single country over a single year.  In a February 2000 Salon.com feature on Stossel entitled "Prime-time propagandist", David Mastio wrote that Stossel has a conflict of interest in donating profits from his public speaking engagements to, among others, a non-profit called "Stossel in the Classroom" which includes material for use in schools, some of which uses material made by Stossel.  University of Texas economist James K. Galbraith has alleged that Stossel, in his September 1999 special Is America #1?, used an out-of-context clip of Galbraith to convey the notion that Galbraith advocated the adoption by Europe of the free market economics practiced by the United States, when in fact Galbraith actually advocated that Europe adopt some of the United States' social benefit transfer mechanisms such as Social Security, which is the economically opposite view. Stossel denied any misrepresentation of Galbraith's views and stated that it was not his intention to convey that Galbraith agreed with all of the special's ideas. However, he re-edited that portion of the program for its September 2000 repeat, in which Stossel paraphrased, "Even economists who like Europe's policies, like James Galbraith, now acknowledge America's success."

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