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Archive for Tuesday, January 24, 2012

Fact check: Obama pushes plans that flopped before

January 24, 2012

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WASHINGTON — It was a wish list, not a to-do list.

President Barack Obama’s array of plans in his State of the Union speech was light on a key piece of context — namely, that his hands are so tied until after the election that it is doubtful many if any of them can be done in the remainder of his term. There can be little more than wishful thinking behind his call to end oil industry subsidies — something he could not get through a Democratic Congress, much less today’s divided Congress, much less in this election year.

And there was more recycling, in an even more forbidding climate than when the ideas were new: He pushed for an immigration overhaul that he couldn’t get past Democrats, permanent college tuition tax credits that he asked for a year ago, and familiar discouragements for companies that move overseas.

A look at Obama’s rhetoric Tuesday night and how it fits with the facts and political realities of the day:

OBAMA: “We have subsidized oil companies for a century. That’s long enough. It’s time to end the taxpayer giveaways to an industry that’s rarely been more profitable, and double-down on a clean energy industry that’s never been more promising.”

THE FACTS: This is at least Obama’s third run at stripping subsidies from the oil industry. Back when fellow Democrats formed the House and Senate majorities, he sought $36.5 billion in tax increases on oil and gas companies over the next decade, but Congress largely ignored the request. He called again to end such tax breaks in last year’s State of the Union speech. And he’s now doing it again, despite facing a wall of opposition from Republicans who want to spur domestic oil and gas production and oppose tax increases generally.


OBAMA: “Our health care law relies on a reformed private market, not a government program.”

THE FACTS: That’s only half true. About half of the more than 30 million uninsured Americans expected to gain coverage through the health care law will be enrolled in a government program. Medicaid, the federal-state program for low-income people, will be expanded starting in 2014 to cover childless adults living near the poverty line.

The other half will be enrolled in private health plans through new state-based insurance markets. But many of them will be receiving federal subsidies to make their premiums more affordable. And that’s a government program, too.

Starting in 2014 most Americans will be required to carry health coverage, either through an employer, by buying their own plan, or through a government program.


OBAMA, asking Congress to pay for construction projects: “Take the money we’re no longer spending at war, use half of it to pay down our debt, and use the rest to do some nation-building right here at home.”

THE FACTS: The idea of taking war “savings” to pay for other programs is budgetary sleight of hand. For one thing, the wars in Iraq and Afghanistan have been largely financed through borrowing, so stopping the wars doesn’t create a pool of ready cash, just less debt. And the savings appear to be based at least in part on inflated war spending estimates for future years.


OBAMA: “Tonight, I want to speak about how we move forward, and lay out a blueprint for an economy that’s built to last - an economy built on American manufacturing, American energy, skills for American workers, and a renewal of American values.”

THE FACTS: Economists do see manufacturing growth as a necessary component of any U.S. recovery. U.S. manufacturing output climbed 0.9 percent in December, the biggest gain since December 2010. Yet Obama’s apparent vision of a nation once again propelled by manufacturing — a vision shared by many Republicans — may already have slipped into the past.

Over generations, the economy has become ever more driven by services; not since 1975 has the U.S. had a surplus in merchandise trade, which covers trade in goods, including manufactured and farm goods. About 90 percent of American workers are employed in the service sector, a profound shift in the nature of the workforce over many decades.

The overall trade deficit through the first 11 months of 2011 ran at an annual rate of nearly $600 billion, up almost 12 percent from the year before.


OBAMA: “The Taliban’s momentum has been broken, and some troops in Afghanistan have begun to come home.”

THE FACTS: Obama is more sanguine about progress in Afghanistan than his own intelligence apparatus. The latest National Intelligence Estimate on Afghanistan warns that the Taliban will grow stronger, using fledgling talks with the U.S. to gain credibility and stall until U.S. troops leave, while continuing to fight for more territory. The classified assessment, described to The Associated Press by officials who have seen it, says the Afghan government hasn’t been able to establish credibility with its people, and predicts the Taliban and warlords will largely control the countryside.


OBAMA: “On the day I took office, our auto industry was on the verge of collapse. Some even said we should let it die. With a million jobs at stake, I refused to let that happen. In exchange for help, we demanded responsibility. We got workers and automakers to settle their differences. We got the industry to retool and restructure. Today, General Motors is back on top as the world’s number one automaker. Chrysler has grown faster in the U.S. than any major car company. Ford is investing billions in U.S. plants and factories. And together, the entire industry added nearly 160,000 jobs.”

THE FACTS: He left out some key details. The bailout of General Motors and Chrysler began under Republican President George W. Bush. Obama picked up the ball, earmarked more money, and finished the job. But Ford, which Obama mentions as well, never asked for a federal bailout and never got one. It’s managed to get along on its own. Also, as part of its restructuring, Chrysler is not really a U.S. automaker anymore. Italian automaker Fiat now owns a 30 percent share, and it will eventually go to 51 percent under terms of the U.S. bailout and its bankruptcy restructuring.


OBAMA: “We can also spur energy innovation with new incentives. The differences in this chamber may be too deep right now to pass a comprehensive plan to fight climate change. But there’s no reason why Congress shouldn’t at least set a clean energy standard that creates a market for innovation.”

THE FACTS: With this statement, Obama was renewing a call he made last year to require 80 percent of the nation’s electricity to come from clean energy sources by 2035, including nuclear, natural gas and so-called clean coal. He did not put that percentage in his speech but White House background papers show that it remains his goal.

But this Congress has yet to introduce a bill to make that goal a reality, and while legislation may be introduced this year, it is unlikely to become law with a Republican-controlled House that loathes mandates.


OBAMA: “Anyone who tells you that America is in decline or that our influence has waned doesn’t know what they’re talking about ... That’s not how people feel from Tokyo to Berlin; from Cape Town to Rio; where opinions of America are higher than they’ve been in years.”

THE FACTS: Obama left out Arab and Muslim nations, where popular opinion of the U.S. appears to have gone downhill or remained unchanged after the spring 2011 reformist uprisings in the Middle East. A Pew Research Center survey in May found that in predominantly Muslim countries such as Turkey, Jordan and Pakistan, views of the U.S. were worse than a year earlier. In Pakistan, a major recipient of U.S. foreign aid that went unmentioned in Obama’s speech, just 11 percent of respondents said they held a positive view of the United States.

Associated Press writers Tom Raum, Anne Gearan, Ricardo Alonso-Zaldivar, Martin Crutsinger, Jim Drinkard, Dina Cappiello, Erica Werner and Andrew Taylor contributed to this report.

Comments

Phoenixman 2 years, 2 months ago

I was impressed with the teleprompter. It was positioned and working perfectly. I don't know why the Poser even needs to show up. Just turn the teleprompter toward the camera and we'd have gotten the same message and he could have gotten in another round of golf.

I.H.O.

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FalseHopeNoChange 2 years, 2 months ago

Dan Ferris e-mailed his comments on the situation earlier today…

When people are really scared, they buy cash, not gold. People sell gold for cash all the time. When I go to the coin store to buy Krugerrands, there's always a line of people with their arms full of gold jewelry and coins. They're all selling.

It's like Reverend Jim Jones and the People's Temple of Jonestown, Guyana – the original "drink the Kool-Aid" moment. Everything is wonderful… you're in an exotic land, learning from your charismatic leader about the paradise you and your family will soon inhabit.

Then one day, you wake up, and he's convinced you to force your kids to drink cyanide. And you've allowed him to brainwash you into drinking it, too. Before the day is over, everyone is dead. Any sane, rational person could have seen the whole affair would lead to no good, but few would have guessed it would have killed everyone involved.

It's the same way with paper money. Everything is wonderful… You're in the richest country on Earth, enjoying the highest standard of living (even if you're described as "poor"). Your charismatic leader tells you taking more from rich people and putting 45 million people on foodstamps will make the country stronger. You believe him because it's the easy, lazy thing to do. Or maybe you don't, but after all, what can you do?

Then one day, you wake up, and the government is $15 trillion in debt, with tens of trillions of dollars more in present value of future liabilities. You're scared, so you do what they tell you. You drink the Kool-Aid and buy Treasurys. That's the fatal mistake… It won't be long now… Say adios to all you've worked for. It's on its way to money heaven.

(from a source)

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catfishturkeyhunter 2 years, 2 months ago

Well, now we see where the LJ World Stands on politics.

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FalseHopeNoChange 2 years, 2 months ago

Obama may have missed the "hope and changy" part, but he got the "transformation" part correct. The New America should have Obama for life if they play their cards right. Obama told the nation last night he is taking command with a new "Consolidation Act" to coordinate all activities of business aquisitions, dealings, regulations and taxing. This in his words, is to make his commands quicker acting. Commands of his will now be as quick as commands given by leaders in China and Russia.

The New America desperately needs Obama for life.

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cmmcphee 2 years, 2 months ago

Too much attention and worry about who is going to be president. I worry that we have constantly put the same people back in congress term after term. I will be voting for replacements no matter the party. Real change can only come by making changes in the legislative branch, they are supposed to make the law.

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just_another_bozo_on_this_bus 2 years, 2 months ago

This was largely a campaign speech-- Obama knows that he isn't going to get anything out of an obstructionist Republican congress whose only goal is to make Obama look as bad as possible, with the hope that that will help them in the elections this fall.

Clearly, Obama intends to make sure that voters are aware of this agenda, in the hopes that voters will remember it come election time, even though it's unlikely that any of the agenda he laid out last night will go anywhere.

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its_just_math 2 years, 2 months ago

I fell asleep about 15-20 minutes into the speech. Wife said my snore was rattling the windows. Same ol' same ol' from The Anointed One. Nothing to see here. Just please god let him be relieved of command in ten months.

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Phillbert 2 years, 2 months ago

Yes, if you propose something and the other party says no then you should just give up and never mention it ever again.

After reading "analysis" like this I can't imagine why the mainstream media is dying....

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janoc 2 years, 2 months ago

This is an editorial NOT a news story. Why is it not on the opinion page?

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commuter 2 years, 2 months ago

No. He had a Democratic Congress for the first two years. Yes the R's could have used the fillibuster in the Senate but why make them use it, instead of being afraid.

If he can't get his own party to do his bidding, then how are his chances with other parties?

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just_another_bozo_on_this_bus 2 years, 2 months ago

That danged "liberal" media, giving Obama a free pass again.

Oh, wait, this is mostly critical of Obama. Surely the heads of certain usual suspects will explode.

Oh, wait, no, that would mean they'd have recovered from their cognitive dissonance, and if they lose they, they ain't got nothin'.

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Armstrong 2 years, 2 months ago

At least the address didn't take long to write. Half of the speech was exactly the same as last year and while running for election the previous year. Demonstrates how little we have progressed in 3 years.

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Lawrence Morgan 2 years, 2 months ago

There is no community college in Lawrence. There are few examples of programs for adults, especially at KU. KU doesn't offer lots of courses at night. KU doesn't cooperate with other schools of higher learning - it's all US, OURS, not to speak of the tremendous amount of money paid for football games. I would rather not, but suspect otherwise, think that many KU staff and professors don't care much about the overall picture.

If they do, then it's time to have interviews of each professor in the Journal World and see what they are doing for young people and adults who need education, work, and are in the prime time of life.

And there is no effort to bring in other young people, those who may not have advanced degrees but KNOW WHAT THEY ARE TALKING ABOUT.

And it doesn't mean tearing down beautiful old houses, or the downtown either

Until this changes - and I wonder if the current City Council can ever think this way - not much will be different in Lawrence.

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