From The Washington Post -- September 8, 2011:
In an award-winning journalism career spanning nearly three decades, Glenn Kessler has covered foreign policy, economic policy, the White House, Congress, politics, airline safety and Wall Street. He was The Washington Post’s chief State Department reporter for nine years, traveling around the world with three different Secretaries of State. Before that, he covered tax and budget policy for The Washington Post and also served as the newspaper’s national business editor.
Fact checking the GOP debate at the Reagan library
By Glenn Kessler
That was a rip-roaring Republican debate Wednesday night at the Reagan library. As is our practice, we will quickly assess a number of claims and then perhaps come back later with a deeper look at some issues.
The debate started with a back and forth between former Massachusetts governor Mitt Romney and Texas Gov. Rick Perry over job creation during their tenures. This in many ways is a silly discussion — governors and even presidents are very much at the mercy of the economic situation they inherited — and Romney actually framed it well:
“The states are different. Texas is a great state. Texas has zero income tax. Texas has a right-to-work state, a Republican legislature, a Republican Supreme Court. Texas has a lot of oil and gas in the ground. Those are wonderful things. But Governor Perry doesn’t believe that he created those things. If he tried to say that, why, it would be like Al Gore saying he invented the Internet.”
(Gore actually did not put it quite that way, but nevermind.)
So, for the moment, we are going to set aside the job discussion, stipulating that each man has his claims and counterclaims, and focus on other issues.
“It is a monstrous lie. It is a Ponzi scheme to tell our kids that are 25 or 30 years today you’re paying into a program that’s going to be there.”
— Gov. Perry
Perhaps the governor does not know the dictionary definition of a Ponzi scheme. Here’s what Merriam-Webster says: “An investment swindle in which some early investors are paid off with money put up by later ones in order to encourage more and bigger risks.”
This is a frequent mistake politicians make when talking about Social Security. It is not an investment vehicle; it is intended to provide income security as well disability and life insurance. Just more than 60 percent of the 54 million beneficiaries are retired workers; the rest are disabled workers, dependents or survivors.
Social Security is a pay-as-you-go system, which means that payments collected today are immediately used to pay benefits. Until recently, more payments were collected than were needed for benefits. So Social Security loaned the money to the U.S. government, which used it for other things. In exchange, Social Security received interest-bearing Treasury securities. The value of those bonds is now about $2.6 trillion. (We have written about this at length.)
In any case, Perry is wrong to label Social Security a Ponzi scheme. Ponzi schemes ultimately go bust and everyone generally loses their money. Social Security faces a long-term funding issue, but one that most experts say is manageable. After all, the Social Security actuary says that Social Security’s shortfall is 0.7 percent of the gross domestic product over the next 75 years.
“Obamacare is killing jobs. We know that from the nonpartisan Congressional Budget Office.”
— Rep. Michele Bachmann (Minn.)
Bachmann won’t give up on this factoid, even though we debunked it seven months ago and said it was worth three Pinocchios. It’s just not correct, and remains a perfect example of how politicians twist the facts.
The Congressional Budget Office in August 2010 estimated that the new health care law over the next decade would reduce the number of overall workers in the United States by one-half of 1 percent, which translates into 800,000 people. But that’s not the same as saying it would “kill” that many jobs.
In dry economic language, the CBO essentially said that some people who are now in the workforce because they need health insurance would decide to stop working because the health care law guaranteed they would have access to health care. (As an example, think of someone who is 63, a couple of years before retirement, who is still in a job only because he or she is waiting to get on Medicare at age 65.)
These jobs would disappear, not to be replaced, so there is an intellectually defensible argument one could make that this is bad for the economy; others, however, might argue that this is a small price worth paying for universal health care.
But in any case, the CBO did not say the health law was killing jobs.
“We’ve had requested for years at the Health and Human Services agencies to have that type of flexibility, where we could have menus, where we could have co-pays. And the federal government refuses to give us that flexibility.”
— Perry
Perry gives a misleading account of this application for a waiver on Medicaid rules. The George W. Bush administration rejected the application in 2008, saying it was incomplete and riddled with problems. As far as we can tell, the state has not resubmitted the waiver.
“Obamacare took over one-sixth of the American economy… . If we fail to repeal Obamacare in 2012, it will be with us forever and it will be socialized medicine.”
— Bachmann
“In our state, our plan covered 8 percent of the people, the uninsured. His plan has taken over a 100 percent of the people.”
— Romney
It is simply not true, no matter how often candidates say that the Obama health care law represents socialized medicine or took over one-sixth of the economy. Socialized medicine is a single-payer system, in which the government pays the bills and controls costs (much like Medicare.)
Obama’s law was modeled closely on the law passed by Romney when he was governor of Massachusetts — an inconvenient fact that Romney tries hard to run away from. His comparison here is misleading, since both plans try to deal with the problem of the uninsured by requiring an individual mandate.
“For the president of the United States to go to El Paso, Texas, and say that the border is safer than its ever been, either he has some of the poorest intel of a president in the history of this country, or he was an abject liar to the American people. It is not safe on that border.”
— Perry
Perry is referring to a speech that Obama gave May 10, in which he did some boasting that earned the president a Pinocchio. Obama did not put it quite as bluntly as Perry suggests, and calling the president an “abject liar” seems over the top for the politically tinged comments Obama actually made.
“He only went along with the Libyan mission because the United Nations told him to.”
— Former Sen. Rick Santorum (Pa.)
Actually, Santorum has it backwards. The United States requested the U.N. resolution to gain international backing for the NATO-led intervention in the Libyan uprising.
“The idea that we would put Americans’ economy in jeopardy based on scientific theory that’s not settled yet to me is just — is nonsense. I mean, it — I mean, and I told somebody, I said, just because you have a group of scientists that have stood up and said, here is the fact — Galileo got outvoted for a spell.”
— Perry
We previously awarded Perry Four Pinocchios for his comments suggesting scientists were increasingly saying climate change was a fiction. We will note he repeatedly did not answer the question at the debate about whether he could name a scientists he thought was credible on the issue.
“As a matter of fact, what he’s done is, he’s said in fact to Israel that they need to shrink back to their indefensible 1967 borders.”
— Bachmann
Obama never said this. The president in May did give a controversial speech, in which he said the de facto border of 1967 should be a starting point for negotiations between the Israelis and Palestinians, with agreed swaps of territory. A few days later, he further clarified his comments to make clear he was not saying the lines should be Israel’s border, to the point that he was thanked by the Israeli prime minister in a speech to Congress.
We’ve given Bachmann Four Pinocchios for making a similar claim in the past.
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7 comments:
About Rick Perry speech that he signed executions of 234 people and was not bothered by it. The audience was quite pleased and applauded frantically. All of them must have no conscience and will sleep soundly at nite. Those are the ones that claim to be Christians. Must be all in favor of shariah law even though some of these on death row may not have been guilty.
Therefore I assume that Perry probably signs these death sentences while in the process of having a large Texan meal. *barf*
Just gimme ONE name of a GOP who doesn't lie.
Bachmann saying that the earthquake and Irene were an act of God, but NOT saying that the drought and fires in Texas must then also be an act of the same God. Or must that be Allah who sent punishment to Texas huh?
The jobs that Texas has created are all menial jobs that pay minimum wage. Hooray for Perry!!
Perry's Texas: http://www.truth-out.org/hunger-rate-spikes-rick-perrys-texas-even-national-rate-holds-steady/1315590361
Hunger Rate Spikes in Rick Perry’s Texas, Even as National Rate Holds Steady
Excerpts:
"The number of people on food stamps in Texas rose 2.8 percent between 2009 and 2010, and is now a staggering 15.6 percent of the state’s population. The increase was one of the highest in the nation."
Ironically, Perry has recently been highly critical of the very food stamp program that would have helped his state’s poorest residents get enough to eat. At a campaign stop last month, Perry called the size of the food stamp program a “testament to widespread misery” — instead of an essential aid that’s keeping Texan families alive.
"Austin Food Bank’s John Turner says it’s no coincidence that Texas and Mississippi also lead the country in low-wage jobs. For many hard-working Texans, minimum wage jobs just don’t pay enough to stave off hunger. “The vast majority of the 48,000 central Texans this food bank serves every week are employed, hard-working men and women who are just not earning a living wage,” he writes."
AHA!!
How to Create More Jobs By Lowering Wages: Texas and America
http://robertreich.org/ Excerpt:
If governors try hard enough, though, they can create lots of lousy jobs. They can drive out unions, attract low-wage immigrants, and turn a blind eye to businesses that fail to protect worker health and safety.
Rick Perry seems to have done exactly this. While Texas leads the nation in job growth, a majority of Texas’s workforce is paid hourly wages rather than salaries. And the median hourly wage there was $11.20, compared to the national median of $12.50 an hour.
Texas has also been specializing in minimum-wage jobs. From 2007 to 2010, the number of minimum wage workers there rose from 221,000 to 550,000 – that’s an increase of nearly 150 percent. And 9.5 percent of Texas workers earn the minimum wage or below – compared to about 6 percent for the rest of the nation, according to the Bureau of Labor Statistics. The state also has the lowest percentage of workers without health insurance. Texas schools rank 44th in the nation in per-pupil spending.
The Perry model of creating more jobs through low wages seems to be catching on around America.
According to a report out today from the Commerce Department, the median income of U.S. households fell 2.3 percent last year – to the lowest level in fifteen years (adjusted for inflation). That’s the third straight year of declining household incomes. Part of this is loss of jobs. Part is loss of earnings.
More and more Americans are retaining their jobs by settling for lower wages and benefits, or going without cost-of-living increases. Or they’ve lost a higher-paying job and have taken one that pays less. Or they’ve joined the great army of contingent workers, self-employed “consultants,” temps, and contract workers – without healthcare benefits, without pensions, without job security, without decent wages.
It’s no great feat to create lots of lousy jobs. A few years ago Michele Bachmann remarked that if the minimum wage were repealed “we could potentially virtually wipe out unemployment completely because we would be able to offer jobs at whatever level.”
I keep on hearing conservative economists say Americans have priced themselves out of the global high-tech labor market. That’s baloney. The productivity of American workers continues to soar. The problem is fewer and fewer Americans are sharing the gains. The ratio of corporate profits to wages is the highest it’s been since before the Great Depression.
Besides, how can lower incomes possibly be an answer to America’s economic problem? Lower incomes mean less overall demand for goods and services — which translates into even fewer jobs and even lower wages.
In short, the Perry (and Bachmann) model of job growth condemns Americans to lower and lower living standards. That’s nothing to crow about.
BTW: The previous article written by Robert Reich is dated: Tuesday, September 13, 2011
No additional comments needed. Read it all!!
http://motherjones.com/politics/2011/09/hey-gop-2012ers-you-lie
"Let's cut to the chase: The GOP presidential field is a pack of liars."
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