The Fact Checker: rungrid1107

Mitt Romney’s ‘new math’ for jobs plan doesn’t add up

“Let me tell you how I will create 12 million jobs when President Obama couldn't. First, my energy independence policy means more than 3 million new jobs, many of them in manufacturing. My tax reform plan to lower rates for the middle class and for small business creates 7 million more. And expanding trade, cracking down on China and improving job training takes us to over 12 million new jobs.”

— Mitt Romney, “in his own words,” in a campaign television ad

Romney’s 12-million-jobs promise has garnered a lot of attention. We became interested in this ad after a reader asked whether the campaign had provided much detail on how he would reach this total. This television ad is also prominently featured on the Romney campaign’s “Jobs Plan” Web page.

 The math here appears pretty simple: 7 plus 3 plus 2 equals 12. But this is campaign math, which means it is mostly made of gossamer. Let’s take a look.

 

The Facts

 As we have noted before, the 12 million figure is not a bad bet by Romney. Moody’s Analytics, in an August forecast, predicts 12 million jobs will be created by 2016, no matter who is president. And Macroeconomic Advisors in April also predicted a gain of 12.3 million jobs.

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Spin and counterspin in the welfare debate

“Under Obama’s plan, you wouldn’t have to work and you wouldn’t have to train for a job. They just send you your welfare check.”

— Mitt Romney campaign ad released Aug. 7, 2012

“This is a common sense reform to give governors — including some of Romney’s supporters — flexibility to live up to the goals of the welfare reform law. Romney should know: He used to support these kinds of waivers. In 2005, he joined other Republican governors in a letter to Senator Frist, urging the Senate to move quickly on ‘increased waiver authority’ for the welfare program.”

— Obama campaign defense on its Web site

When Bill Clinton signed the bill overhauling welfare 16 years ago, the 42nd president declared: “After I sign my name to this bill, welfare will no longer be a political issue. The two parties cannot attack each other over it. Politicians cannot attack poor people over it. There are no encrusted habits, systems, and failures that can be laid at the foot of someone else.”

Oops, guess he was wrong about that.

In an effort to reopen the welfare war, Mitt Romney this week began airing a tough ad that accuses President Obama of wanting to do away with the work requirements embedded in the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. In effect, Romney is trying to suggest that Obama is such a left-winger that he would undo a central achievement of a Democratic icon.

People forget that Clinton’s signing of the bill — a few months before the 1996 presidential election — was highly controversial. Clinton, in his signing speech, spent almost as much time talking about the things he disliked in the GOP-crafted bill as he did about the parts he liked. Key members of his administration resigned in protest. And a young state senator in Illinois named Barack Obama also expressed his opposition.

This is a complex issue, and highly technical, which makes it ripe for spin and counterspin. Neither side necessarily conducts itself with glory here.

The Facts

Temporary Assistance for Needy Families (TANF), the centerpiece of the 1996 legislation, established work requirements and time-limited benefits for recipients. Last month, the Department of Health and Human Services, without much fanfare, issued a memorandum saying that it was encouraging “states to consider new, more effective ways to meet the goals of TANF, particularly helping parents successfully prepare for, find, and retain employment.” As part of that, the HHS secretary would consider issuing waivers to states concerning worker participation targets.

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Four Pinocchios for ‘King of Bain’

“This is a story of greed, of playing the system for a quick buck, a group of corporate raiders led by Mitt Romney more ruthless than Wall Street. For tens of thousands of Americans, the suffering began when Mitt Romney came to town.”

— Voice-over from “King of Bain” video promoted by a pro-Newt Gingrich super PAC, “Winning Our Future.”

Newt Gingrich, meet Michael Moore!

 The 29-minute video “King of Bain” is such an over-the-top assault on former Massachusetts governor Mitt Romney that it is hard to know where to begin. It uses evocative footage from distraught middle-class Americans who allege that Romney’s deal-making is responsible for their woes. It mixes images of closed factories and shuttered shops with video clips of Romney making him look foolish, vain or greedy. And it has a sneering voice-over that seeks to push every anti-Wall Street button possible.

 Here’s just a sampling of what Romney and Bain Capital, which he once headed, is accused of: “Stripping American businesses of assets, selling everything to the highest bidder and often killing jobs for big financial rewards . . . high disdain for American businesses and workers . . . upended the company and dismantled the work force; now they were able to make a handsome profit . . . cash rampage . . . contributing to the greatest American job loss since World War II . . . turn the misfortune of others into their own enormous financial gain.”

 The video ends with a crescendo of images of despair, with voices of the victims adding emotional punch: “A lot of lives were ruined . . . he took away our livelihoods . . . he took away our future . . . he destroyed a lot of homes . . . it all gets back to greed.” (Irritatingly, few of these ordinary citizens are identified.)

 The video is reminiscent of the devastating series of attack ads released by then-Sen. Ted Kennedy (D-Mass.) that derailed Romney’s Senate campaign in 1994. In fact, we’d swear some of the people interviewed for “King of Bain,” who are identified as working for Ampad in Marion, Ind., are the same as those interviewed for the Kennedy ads at SCM, which Ampad acquired. They just look two decades older. (We have embedded a collection of the Kennedy ads at the end of this column.)

 Let’s take a look at some of the claims in “King of Bain.” The video clip above is from a 60-second commercial aired by “Winning Our Future.” The full video can be found here. As we will demonstrate, at least some of the interviews of ordinary citizens appear to have been conducted under misleading pretenses and have been selectively edited to leave a false impression.

The Facts

 First of all, it is a stretch to portray Romney as some sort of corporate raider, akin to Carl Icahn (whose image is briefly seen).  Bain Capital initially was in the business of providing venture capital — seed money — for start-ups, such as Staples. Then it moved to the more lucrative business of private equity, in which Bain won control of firms, reorganized them and then sold them for profit. (Our colleague Suzy Khimm earlier this week did an excellent job of explaining the two sides of Bain Capital.)  

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