We are posting this article verbatim- just as it appeared in the Washington Post (a conservative newspaper), that is doing fact-checking on BOTH political parties. Everyone should read it, not just Democrats. - Rob
Fact checking the GOP convention’s second night
WASHINGTON POST Posted by Glenn Kessler
at 06:02 AM ET, 08/30/2012
(Win McNamee/GETTY IMAGES)
The highlight of the second night of the Republican National
Convention was Rep. Paul Ryan’s speech accepting the vice presidential
nomination. (As
a longtime Condoleezza Rice watcher,
The Fact Checker was also fascinated by the enthusiastic response to
her prime-time speech.) We will devote most of this column to analyzing
claims in Ryan’s speech, but at the end we will also assess a few other
interesting claims made by other speakers.
“Right there at that plant, candidate Obama said: ‘I believe
that if our government is there to support you … this plant will be here
for another hundred years.’ That’s what he said in 2008. Well, as it
turned out, that plant didn’t last another year. It is locked up and
empty to this day.”
In his acceptance speech, GOP vice presidential nominee
Paul Ryan appeared to suggest that President Obama was responsible for
the closing of a GM plant in Ryan’s home town of Janesville, Wis.
Obama
gave his speech in February 2008, and he did say those words. But
Ryan’s phrasing, referring to the fact the plant did not last another
year, certainly suggests it was shut down in 2009, when Obama was
president.
Ryan, in fact, issued
a news release in June 2008, urging GM to keep the plant open after the automaker announced it would close it.
The
plant was largely closed in December 2008 when production of General
Motors SUVs ceased — before Obama was sworn in. A small crew of about
100 workers
completed a contract for production of medium-duty trucks for Isuzu Motors, a contract that ended in April 2009.
Note
that Ryan called the plant “locked up” rather than “shut down.” That’s
because the plant has not been completely shut down; it remains on
“standby” and could reopen if GM production reaches the right level,
according to
the Milwaukee Journal Sentinel.
“The
plant in Janesville remains in ‘standby’ status waiting for the
recovery – and jobs – President Obama said would come with his bailout
of the auto industry,” said Ryan spokesman Brendan Buck. “When the
president picked his winners and losers, Janesville lost.”
Buck
also pointed to a campaign statement by Obama in late 2008, when it was
announced production would end, that he would “lead an effort to retool
plants like the GM facility in Janesville.”
“What did the taxpayers get out of the Obama stimulus? More
debt. That money wasn’t just spent and wasted — it was borrowed, spent,
and wasted. It went to companies like Solyndra, with their gold-plated
connections, subsidized jobs, and make-believe markets. The stimulus was
a case of political patronage, corporate welfare, and cronyism at their
worst. You, the working men and women of this country, were cut out of
the deal.”
There is a lot to unpack in this paragraph. First of all, people will forever debate whether the stimulus was effective, but
a survey of 15 studies by our colleagues at Wonkblog
found that most studies (12 out of 15) concluded that it did have a
positive effect, while only two definitively concluded it did not. So
Ryan’s statement is much too sweeping to be very credible.
Ryan,
who as a congressman requested stimulus funding for his state, gets a
bit closer to the mark when he raises the specific case of Solyndra, a
failed solar-panel manufacturer that received $535 million as part of
the president’s $80 billion clean-energy initiative, which was part of
the 2009 stimulus.
As we wrote in
a lengthy look at Solyndra,
“overall, the facts of the Solyndra matter represent a strong case for
Romney’s claims of crony capitalism, but they don’t provide conclusive
evidence.” But
some other charges of crony capitalism
are overblown, and it is a stretch to portray the whole stimulus bill
(which was about one-third tax cuts) as a political payoff scheme.
“After all that work, and in a bad economy, it sure doesn’t help
[businesses] to hear from their president that government gets the
credit. What they deserve to hear is the truth: Yes, you did build
that.”
This old saw again.
As we have previously noted,
Republicans have repeatedly mischaracterized Obama’s rhetorical point.
He certainly did not say the “government gets the credit” for business
success. He was arguing that society, including taxpayer-funded
education and infrastructure spending, plays a role in every person’s
success.
“They needed hundreds of billions more. So, they just took it
all away from Medicare. Seven hundred and sixteen billion dollars,
funneled out of Medicare by President Obama. An obligation we have to
our parents and grandparents is being sacrificed, all to pay for a new
entitlement [Obamacare] we didn’t even ask for.”
Ryan, as House Budget Committee chairman, probably knows
he’s playing a rhetorical game here. Federal budget accounting is so
complex that it is easy to mislead ordinary Americans — a tactic used by
both parties.
Ryan is correct that in the health-care bill, the
anticipated savings from Medicare were used to help offset some of the
anticipated costs of expanding health care for all Americans. But all
government money is fungible.
Under the concept of the unified
budget, money that is collected by the federal government for whatever
purpose (such as Medicare and Social Security payroll taxes) is spent on
whatever bills are coming due at that time. Social Security and
Medicare will get a credit for taxes collected that are not immediately
spent on Social Security, but those taxes are quickly devoted to other
federal spending.
Under the health-care law, spending does not
decrease in Medicare year after year; the reduction is from anticipated
levels of spending in future years.
Moreover, the “cuts” did not come at
the expense of seniors. The savings mostly are wrung from health-care
providers, not Medicare beneficiaries — who, as a result of the
health-care law, ended up with new benefits for preventive care and
prescription drugs.
The House Republican budget plan crafted by
Ryan retains virtually all of the Medicare “cuts” contained in the
health-care law, but diverts them instead to his Medicare overhaul.
Republicans argue that that is a more effective use of the savings.
“He created a bipartisan debt commission. They came back with an
urgent report. He thanked them, sent them on their way, and then did
exactly nothing.”
Ryan is referring to
the Simpson-Bowles Commission,
and he is correct that Obama did not act on its report. But Ryan left
out the fact that he served on the commission and voted against the
final “urgent” report, largely because
he believed it did not do enough to overhaul health-care entitlements such as Medicare.
David Brooks, a New York Times columnist sympathetic to Republicans,
recently labeled Ryan’s “no” vote
as “Ryan’s biggest mistake,” because he gave up “significant debt
progress for a political fantasy” — that a Republican victory in 2012
would allow for real reforms without Democratic support.
Ryan
spokesman Buck said that “Paul Ryan worked in a bipartisan manner in the
commission and has worked tirelessly since then to solve these big
challenges.”
***
“The big-government bureaucrats of the Obama administration have
set their sights on our way of life. Instead of preserving family farms
and ranches, President Obama’s policies are effectively regulating them
out of business. His administration even proposed banning farm kids
from doing basic chores!”
— Sen. John Thune (R-S.D.)
It’s a striking charge, but an exaggeration that,
when we first looked at the issue, earned a Republican lawmaker Two Pinocchios. But Thune ups the ante even more with his rhetoric.
What happened?
Last year, the Department of Labor proposed revisions
to child labor rules that apply to the agricultural sector. Among the
most significant changes: banning children under age 16 from operating
power-driven equipment such as tractors and prohibiting people under the
age of 18 from working in grain silos, feed lots and stockyards.
The
Labor Department tried to avoid controversy by emphasizing that
children working on their parents’ farms would be excluded from the
proposals. That exemption is actually a matter of federal statute under
the Fair Labor Standards Act of 1938. The Labor Department lacked the
authority to change it.
Indeed, a Labor Department summary of the
proposed changes stated clearly that the parental exemption “allows the
child of a farmer to perform any task, even hazardous tasks, at any age
on a farm owned or operated by the parent.”
Nevertheless, the
Labor Department announced in April that it was abandoning its proposals
altogether. A press release from the department said, “to be clear,
this regulation will not be pursued for the duration of the Obama
administration.”
“Then you have Barack Obama, who never started a business — never even worked in business.”
— Sen. Rob Portman of Ohio
“For four years, we’ve given a chance to a man with very limited
experience in governing, no experience in business whatsoever and since
taking office, mostly interested in campaigning, blaming and aiming
excuses at his predecessor, the Republicans and people in business.”
— Former Arkansas governor Mike Huckabee
We are not sure why Republicans would emphasize Obama’s lack of
business experience on a night when they nominate a vice presidential
running mate (Ryan) who has worked in government his entire life.
But
it’s going too far to say Obama never worked in business. He worked
briefly at Business International Corp. in New York after college, and
then also was an associate and a partner at a law firm for 11 years.
That’s not a lot of private sector experience, but it’s more than none
whatsoever.
***
ETON'S INTERESTING HISTORY
