NBC’s David Gregory Notes It’s Rough When Politicians Speak The Truth
NBC’s David Gregory: “I think in the case of Biden, I think, he certainly knew what the President’s views were and he knew certainly what his views were. He was asked a direct question and he gave a direct answer and, I think, in the process of giving that answer he went farther than he intended to. I certainly don’t think it was a plant in that respect or something he intended to do. And I think with Cory Booker, look, I think Booker, yes he‘s supportive of the President but I think he’s also positioning himself as a more centrist, pragmatic leader and wants to take on some of the excesses in this advertising. He said exactly what he meant. I think what’s, and I think Joe made this point over the course of the week, what always is, I think, more hurtful to these figures is if they, you know, really try to walk this stuff back, as if they were in some sort of daze when they originally said it. I mean, Cory Booker was passionate. He was very clear, declarative. He knew what he believed on that.” (MSNBC’s “Morning Joe,” 5/25/12)
Jon Meacham: “Here’s the political problem, is if these were two, if this were an open seat, Obama could make this case. But, Obama’s got a record, and so – ”
Jeffrey Sachs: “I think that’s what makes it hard.”
Meacham: “It makes it really hard to argue -”
MSNBC’s Mika Brzezinski: “Somewhat convoluted.”
Meacham: “Yeah, because don’t look at what I’ve done in the last four years, look at what he might do. That’s a very complicated balance.”
MSNBC’s Joe Scarborough: “Because, Josh, at the end of the day, a reelection of a president is about whether you want to rehire this guy or fire him.
Josh Green: “Right. And I think the strategy on Bain is to shift from that question and make it, and put the spotlight more on Romney because there isn’t a morning in America type of economy, type of campaign for Obama to run.”
Scarborough: “You know, that may make sense in focus groups, but at a very gut level, when people walk into a voting booth. And I’ve seen it, I was talking about my dad and my mom, whenever they walk into a voting booth, and they close that curtain, it was like ‘Ok, how did this guy do over the past four years? Do we want to rehire him or should I give that other guy a chance?’” (MSNBC’s “Morning Joe,” 5/25/12)
Moving The Goalposts: Iowa Edition
President Obama In May 2012: “It’s Going To Take Some Time For The Economy To Fully Recover. More Time Than Any Of Us Would Like.” OBAMA: “We all know how difficult these past few years have been for this country. After the worst recession of our lifetimes, it’s going to take some time for the economy to fully recover. More time than any of us would like.” (Barack Obama, Prepared Remarks, Newton, IA, 5/24/12)
President Obama, In Early 2009: “If I Don’t Have This Done In Three Years, Then There’s Going To Be A One-Term Proposition.” (NBC’s “Today,” 2/2/09)
Corzine’s Risky Bet
Obama’s “Wall Street Guy” Lobbied Regulators For Rules That Pleased Him, Leaving MF Global Customers To Face The Consequences
OBAMA LAUDED JON CORZINE AS HIS “WALL STREET GUY” WHO HELPED CRAFT THE STIMULUS
Obama: Corzine Is “Our Wall Street Guy.” “The rollout also provided a showcase for Corzine, the former Goldman Sachs CEO whom Obama referred to as ‘our Wall Street guy’ at a meeting of Democratic governors in Chicago on Friday.” (Claire Heininger, “Corzine Profile Rises In Obama Camp,” The Star-Ledger (NJ),6/23/08)
Obama: Corzine “Was An Ally With The Obama Administration In Helping Us Develop A National Recovery Plan.” OBAMA: “Jon Corzine wasn’t just the first governor to pass an economic recovery plan for his state; he was an ally with the Obama administration in helping us develop a national recovery plan.” (President Obama, Remarks By The President At New Jersey Rally For Governor Jon Corzine, Holmdel, NJ, 7/16/09)
Vice President Biden: “Jon Corzine Helped Craft The Recovery Act.”BIDEN: “It’s not coincidental that that’s what the Recovery Act is. Jon Corzine helped craft the Recovery Act. It’s not coincidental that the things he did here turned out to be the exact same things the recovery act has because way back in the transition period before we were sworn in, when Barack Obama and I were literally sitting at a desk in a high rise in Chicago beginning to plan how we would try to get this economy out of a ditch, literally the first guy I called was Jon Corzine. Not a joke. Not a joke. Because first of all, he’s the smartest guy I know in terms of the economy and on finance.” (Vice President Joe Biden, Remarks, NJ, 5/7/11)
In The Early Days Of The Obama Administration, Biden “Literally” Called Jon Corzine For Advice On The Economy Because “He Knew About The Economy … And We Trusted His Judgment.” “‘I literally picked up the phone and called Jon Corzine and said Jon, what do you think we should do,’ Biden said. ‘The reason we called Jon is that we knew that he knew about the economy, about world markets, how we had to respond, unlike almost anyone we knew. It was because he had been in the pit — because he had been in the furnace. And we trusted his judgment.’” (Conor Friedersdorf, “Obama’s Team Relied On Jon Corzine For Economic Advice,” The Atlantic, 11/14/11)
Corzine Was The Obama Campaign’s Wall Street Liaison
Corzine Played A “Central Role” In Obama’s Wall Street Fundraising Efforts. “His new legal troubles, sparked by the bankruptcy filing of his investment firm, MF Global, could complicate the president’s efforts to raise money from the financial community given Corzine’s central role in those efforts.” (Michael Isikoff, “Corzine, Top Obama Fundraiser, Under FBI Investigation,” MSNBC, 11/2/11)
Corzine Bundled Over $500,000 For Obama’s Reelection Campaign. (Center For Responsive Politics, Open Secrets, Accessed 5/22/12)
- The Obama Campaign Has Not Returned The Bundled Money. “Corzine was one of 41 donors who bundled more than $500,000 this year for Obama’s re-election effort, according to documents released by the campaign Oct. 14. The campaign doesn’t plan to return those bundled donations and will evaluate other contributions from MF Global employees on a case-by-case basis, according to the Democratic official.” (Hans Nichols, “Obama Returns $70,000 In Corzine Donations,” Bloomberg, 12/23/11)
CORZINE PERSONALLY LOBBIED REGULATORS SO HE COULD CONTINUE HIS RISKY BETS AT MF GLOBAL
While At MF Global, Corzine Borrowed Money From Other Accounts To Fund Firm Trading, A Practice Known As “Internal Repo.” “At MF Global, his strategy was simple: ‘We are transforming from sort of an old-like brokerage firm into an investment bank’ Corzine told CNBC’s Maria Bartiromo. Key to his plan was a massive bet on European government bonds – a bet that would swell to more than $6 billion, and ultimately lead to MF Global’s collapse. Corzine’s bet could not have occurred without a finance strategy known as ‘internal repo.’ In essence, MF Global was borrowing money from customer accounts and using it to fund trading in another part of the firm. During the summer of 2011, however, just months before MF Global filed for bankruptcy, internal repo was a strategy regulators were hoping to do away with.” (Jason Breslow, “How Corzine Steered Regulators To Protect Fatal MF Global Bet,” PBS, 5/22/12)
Reality Calling
Vice President Biden Claims The Obama Presidency Produced “Progress You Can See” But American Families Aren’t Feeling It
Vice-President Joe Biden: “We’ve made important progress, but there’s much more to do. But progress you can measure, just look at the chart. Progress that cannot be denied. Progress you can see. Progress people know are occurring.” (Vice President Joseph Biden, Remarks At A Campaign Event, Keene, NH, 5/22/12)
NOT BETTER OFF: Americans Are Taking Home Smaller Paychecks
According To Sentier Research “Real Median Household Income In March Was Down $4,300 Since Obama Took Office In January 2009 … “As a candidate in 2008, Obama blamed the reversals largely on the policies of Bush and other Republicans. He cited census figures showing that median income for working-age households — those headed by someone younger than 65 — had dropped more than $2,000 after inflation during the first seven years of Bush’s time in office. Yet real median household income in March was down $4,300 since Obama took office in January 2009 and down $2,900 since the June 2009 start of the economic recovery, according to an analysis of census data by Sentier Research, an economic- consulting firm in Annapolis, Maryland.” (Mike Dorning, “Obama Fails To Stem Middle-Class Slide He Blamed On Bush,” Bloomberg, 4/30/12)
- “In The Past Year, Most Americans Have Barely Seen a Bump In Earnings.” “Americans’ take-home pay - one of the critical economic benchmarks for presidents seeking reelection - declined in January and February. Research shows that the amount of money Americans earn after taxes and inflation is one of the most reliable predictors of a president’s November chances - more so than the unemployment rate. In the past year, most Americans have barely seen a bump in earnings, according to the Bureau of Economic Analysis.” (Josh Boak, “Shrinking Paychecks May Hurt Obama,” Politico, 4/3/12)
NOT BETTER OFF: Obama’s Middle Class Jobs Haven’t Shown Up
The Recovery Has Failed To Produce The Middle Class Jobs Obama Campaigned On. “Barack Obama campaigned four years ago assailing President George W. Bush for wage losses suffered by the middle class. More than three years into Obama’s own presidency, those declines have only deepened. The rebound from the worst recession since the 1930s has generated relatively few of the moderately skilled jobs that once supported the middle class, tightening the financial squeeze on many Americans, even those who are employed.” (Mike Dorning, “Obama Fails To Stem Middle-Class Slide He Blamed On Bush,” Bloomberg, 4/30/12)
- “A President Who Attacked Bush’s Policies For Favoring The Rich Has Overseen A Recovery In Which The Wealthiest 1 Percent Captured 93 Percent Of Per-Capita Real Income Gains In 2010.” “A president who attacked Bush’s policies for favoring the rich has overseen a recovery in which the wealthiest 1 percent captured 93 percent of per-capita real income gains in 2010, according to an analysis of tax data by Emmanuel Saez, an economics professor at the University of California at Berkeley. On average, families in the top 1 percent saw their inflation-adjusted incomes rise by $105,637 that year from 2009, according to Saez.” (Mike Dorning, “Obama Fails To Stem Middle-Class Slide He Blamed On Bush,” Bloomberg, 4/30/12)
NOT BETTER OFF: The Middle Class Is Shrinking
97.3 Million Americans Now Qualify As Low-Income And Another 49.1 Million Are In Poverty; 48 Percent Of The Population. “About 97.3 million Americans fall into a low-income category, commonly defined as those earning between 100 and 199 percent of the poverty level, based on a new supplemental measure by the Census Bureau that is designed to provide a fuller picture of poverty. Together with the 49.1 million who fall below the poverty line and are counted as poor, they number 146.4 million, or 48 percent of the U.S. population. That’s up by 4 million from 2009, the earliest numbers for the newly developed poverty measure.” (Hope Yen, “Census Shows 1 In 2 People Are Poor Or Low-Income,” The Associated Press, 12/15/11)
- The Middle Class Is Shrinking And Millions Of Families Are Hurting. “The latest census data depict a middle class that’s shrinking as unemployment stays high and the government’s safety net frays. The new numbers follow years of stagnating wages for the middle class that have hurt millions of workers and families.” (Hope Yen, “Census Shows 1 In 2 People Are Poor Or Low-Income,” The Associated Press, 12/15/11)
- “Many Of The ‘New Poor’ Are The Former Middle Class.” “‘Many of the ‘new poor’ are the former middle class,’ broadcaster Tavis Smiley, who requested the study, said in a statement.” (Mary Wisniewski, “Poverty To Keep Rising Due To Slow Recovery: Study,” Reuters, 1/11/12)
NOT BETTER OFF: Americans Are Struggling To Stay In Their Homes
“Meanwhile, 2.5 Million Homes Have Been Lost To Foreclosure Since 2009 …” “Meanwhile, 2.5 million homes have been lost to foreclosure since 2009, an additional 4 million are in the foreclosure process or seriously delinquent, and home prices are still falling in much of the U.S., shrinking household wealth for millions of Americans.” (Julie Schmit, “What Went Wrong With Foreclosure Aid Programs,” USA Today, 12/12/11)
Obama Has Helped Only 1.7 Million Avoid Foreclosure Of The 9 Million Homeowners He Promised. “President Obama pledged at the beginning of his term to boost the nation’s crippled housing market and help as many as 9 million homeowners avoid losing their homes to foreclosure. Nearly three years later, it hasn’t worked out. Obama has spent just $2.4 billion of the $50 billion he promised. The initiatives he announced have helped 1.7 million people.” (Zachary A. Goldfarb, “Obama’s Efforts To Aid Homeowners, Boost Housing Market Fall Far Short Of Goals,” The Washington Post , 10/23/11)
As Of March 2012, Over 5,591,000 Million Mortgages Are Either In Foreclosure Or 30 Or More Days Delinquent. (Press Release, “LPS ‘First Look’ Mortgage Report,” Lender Processing Services, 4/24/12)
- The Administration’s Foreclosure Prevention Programs “Have Had Little Impact On The Overall Housing Sector.” “The administration is already using taxpayer funds from its $700 billion bank bailout program to help prevent foreclosures and give struggling Americans a reprieve on their mortgage payments. But the programs have had little impact on the overall housing sector.” (“White House Says Needs To Deal With Housing Problems,” Reuters, 6/5/11)
- “To Date, Administration Programs Have Permanently Reduced The Debt Of Just One Tenth Of 1 Percent Of Underwater Borrowers.” (Zachary A. Goldfarb, “Obama’s Efforts To Aid Homeowners, Boost Housing Market Fall Far Short Of Goals,” The Washington Post, 10/23/11)
NOT BETTER OFF: Millions More Rely On Food Stamps To Put Dinner On The Table
Since President Obama Took Office, The Number Of Americans Receiving Food Stamps Has Increased From 31.9 Million To A Record 46.3 Million, A 45Percent Increase. (Department Of Agriculture, 5/1/12)
45 Million People Received Food Stamps In 2011, A 70 Percent Increase From 2007, And Will Continue Growing Until 2014. “The Congressional Budget Office said Thursday that 45 million people in 2011 received Supplemental Nutrition Assistance Program benefits, a 70% increase from 2007. It said the number of people receiving the benefits, commonly known as food stamps, would continue growing until 2014.” (Damian Paletta, “Food Stamp Rolls To Grow Through 2014,” The Wall Street Journal’s “Real Time Economics,” 4/19/12)
- “Some 11.2 Million More People Have Joined The Rolls From 2009 Through 2011, Including 4.4 Million Last Year During What Was Ostensibly An Economic Recovery.” “But Mr. Obama is now outstripping that dubious achievement, and in only three years rather than eight. The 2009 stimulus bill increased maximum benefits and authorized more money for states to administer the program. Some 11.2 million more people have joined the rolls from 2009 through 2011, including 4.4 million last year during what was ostensibly an economic recovery.” (Editorial, “Food Stamps Nation,” The Wall Street Journal, 1/19/12)
More Debt As He Dithers
The Obama Administration Has Rolled Out A New Website To Teach Kids About Financial Literacy But The President Could Take A Few Lessons On The Topic Himself
A FEW OF THE LESSONS FROM OBAMA’S MONEY AS YOU GROW
Lesson 1: YOU NEED MONEY To Buy Things
Activities To Help President Obama Reach This Milestone
· Discuss Who Will Pay For Obama’s Record Trillion Dollar Deficits
President Obama Has Racked Up The Three Largest Deficits In U.S. History. “The U.S budget deficit for fiscal year 2011 is $1.299 trillion, the second largest shortfall in history. The nation only ran a larger deficit for the 2009 fiscal year, which included the dramatic collapse of financial markets and a huge bailout effort by the government.”(Erik Wasson, “Treasury Announces 2011 Deficit Is Second Highest In History,” The Hill’s “On The Money”, 10/14/11)
- FY2009: The Federal Budget Deficit Was $1.413 Trillion, The Highest In U.S. History. (“Monthly Budget Review: November 2011,” Congressional Budget Office, 11/7/11)
- FY2011: The Federal Budget Deficit Was $1.299 Trillion, The Second Highest In U.S. History. (“Monthly Budget Review: November 2011,” Congressional Budget Office, 11/7/11)
- FY2010: The Federal Budget Deficit Was $1.294 Trillion, The Third Highest In U.S. History. (“Monthly Budget Review: November 2011,” Congressional Budget Office, 11/7/11)
The CBO Projects The Deficit At The End Of Obama’s First Term Will Be $1.253 Trillion, Obama’s Fourth Straight Trillion Deficit. (“An Anlysis Of The President’s 2013 Budget,” Congressional Budget Office, 3/16/12)
Lesson 4: There’s A Difference Between THINGS YOU WANT And Things You Need
Activities To Help President Obama Reach This Milestone
· Explain Why Obama Spent His Time Pursuing His Liberal Wish List Rather Than Concentrating On The Economy
Obama Has “A Scattershot Record (At Best) Of Focusing On The Main Concern Of Main Street: Joblessness.” “Obama arrives at his reelection campaign not merely with a weak performance on Wall Street crime enforcement and reform but also with a scattershot record (at best) of focusing on the main concern of Main Street: joblessness.” (Frank Rich, “Obama’s Original Sin,” New York Magazine, 7/3/11)
- After The Stimulus, Obama “Pivoted Too Quickly” Away From The Economy. “And second, as soon as the stimulus package was completed, they pivoted too quickly to addressing climate change and health care.” (Charlie Cook, “Owning It Democrats Are In A Corner On Their Ownership Of The Economy And What They Can Do To Help Turn It Around,” National Journal, 6/6/11)
- Obama Insisted On Pursuing Health Care Reform Despite Warnings From Advisors “That Such An Initiative Would Distract Attention From The Urgent Need To Focus On The Economy And Jobs.” “When it comes to Mr. Obama himself Mr. Scheiber draws a portrait of a president with a messianic streak, whose ‘determination to change the course of history’ made him reluctant to accept Mr. Geithner’s suggestion that his signature achievement would be preventing another Great Depression. Instead the president insisted on pursuing his vision of health care reform in his first year in office even though many of his advisers were warning that such an initiative would distract attention from the urgent need to focus on the economy and jobs.” (Michiko Kakutani, “Obama’s Economists, Not Stimulating Enough,” The New York Times, 2/27/12)
Lesson 5: You Need To MAKE CHOICES About How To Spend You Money
Activities To Help President Obama Reach This Milestone
· Explain Why The Senate Has Failed To Pass A Budget For Over Three Years
· Discuss Why The President’s Budget Has Not Received A Single Vote
President Obama “Has Been All-Too-Willing To Avoid Making Tough Decisions.” “One of President Obama’s political weaknesses in his first term has been that he’s all-too-willing to avoid making tough decisions, hesitant to expend political capital for potential long-term gain. Throughout his first term in office, he’s had a cautious governing style, and has avoided taking on some of his party’s core constituencies.” (Josh Kraushaar, “Obama Trying To Have It Both Ways,” National Journal, 11/30/11)
Senate Democrats Have Not Passed A Budget For 1,120 Days, Since April 29, 2009. (S. Con. Res. 13, Roll Call 173; D 53-3, R 0-40, I 2-0, 4/29/09)
- Sen. Harry Reid (D-NV) Said Last Year That “It Would Be Foolish For Us To Do A Budget At This Stage.” “Senate Majority Leader Harry Reid said it would be ‘foolish’ for Democrats to propose their own federal budget for 2012, despite continued attacks from Republicans that the party is ducking its responsibility to put forward a solution to the nation’s deficit problems. ‘There’s no need to have a Democratic budget in my opinion,’ Reid said in an interview Thursday. ‘It would be foolish for us to do a budget at this stage.’” (Lisa Mascaro, “Harry Reid: ‘Follish’ For Democrats To Offer Budget Plan,” Los Angeles Times, 5/20/11)
White House Press Secretary Jay Carney Says The White House Has “No Opinion” On Whether The Senate Should Pass A Budget. ABC NEWS’ JAKE TAPPER: “The White House has no opinion about whether or not the Senate should pass a budget? The president’s going to introduce one. The Fed chair says not having one is bad for growth. But the White House has no opinion about whether - ” JAY CARNEY: “I have no opinion - the White House has no opinion on Chairman Bernanke’s assessment of how the Senate ought to do its business.” (White House Press Briefing, 2/8/12)
“President Obama’s Budget Suffered A Second Embarrassing Defeat Wednesday, When Senators Voted 99-0 To Reject It.” (Stephan Dinan, “Obama Budget Defeated 99-0 In Senate,” The Washington Times , 5/16/12)
- “Coupled With The House’s Rejection In March, 414-0, That Means Mr. Obama’s Budget Has Failed To Win A Single Vote In Support This Year.” (Stephan Dinan, “Obama Budget Defeated 99-0 In Senate,” The Washington Times , 5/16/12)
Lesson 8: Putting Your Money In A Savings Account Will PROTECT It And Pay You Interest
Activities To Help President Obama Reach This Milestone
· Discuss How The President Has No Plan To Save The Entitlement Programs That Americans Depend On
“Medicare And Social Security Are On A Fast Track To Deep Fiscal Problems, Trustees For The Two Programs Warned Monday.” (Sam Baker, “Medicare, Social Security Funds Running Out Quickly, Trustees Say,” The Hill , 4/23/12)
- Social Security And Medicare Trustees: Social Security Is Predicted To “Run Dry” By 2033, Three Years Earlier Than Last Year’s Projection. “The trustees who oversee Social Security say the program’s trust funds will now run dry in 2033. Medicare’s finances have stabilized but the program’s hospital insurance fund is still projected to run out of money in 2024.” (Stephen Ohlemacher, “Poor Economy Worsens Social Security’s Finances,” The Associated Press , 4/23/12)
Los Angeles Times : Obama “Offers No Real Solution To The United State’s Long-Term Fiscal Problems.” “The day after the Greek Parliament approved another round of deep spending cuts in the face of violent protests, President Obama released a budget proposal for the coming fiscal year that offers no real solution to the United States’ long-term fiscal problems.” (Editorial, “What About The U.S. Debt?” Los Angeles Times, 2/14/12)
- The Washington Post: “The Final Budget Of His First Term Does Not Reflect The Leadership On Issues Of Debt And Deficit That Mr. Obama Once Vowed.” (Editorial, “Obama’s Budget Falls Short, But It Beats Many Alternatives,”The Washington Post, 2/13/12)
Lesson 9: You Should SAVE AT LEAST A DIME For Every Dollar You Receive
Activities To Help President Obama Reach This Milestone
· If It Is A Good Idea To Save A Dime For Every Dollar, Why Is Obama Borrowing 34 Cents For Every Dollar He Spends?
The Federal Government Will Borrow $1.25 Trillion Dollars To Pay For Obama’s $3.65 Trillion In Spending; 34 Cents For Every Dollar Spent. (“Updated Budget Projections: Fiscal Years 2012 To 2022,” Congressional Budget Office, 3/13/12)
Lesson 12: A CREDIT CARD IS LIKE A LOAN; If You Don’t Pay Your Bill In Full Every Month, You’ll Be Charged Interest And Owe More Than You Originally Spent
Activities To Help President Obama Reach This Milestone
· Discuss How Obama’s Massive Debt Will Cost Future Generation Hundreds Of Billions Of Dollars In Interest Every Year
In FY2012, The United States Will Pay $224 Billion In Interest On Its $15.7 Trillion Debt. (“Updated Budget Projections: Fiscal Years 2012 To 2022,” Congressional Budget Office, 3/13/12)
- Through 2022, Taxpayers Will Pay Over $4.7 Trillion In Interest To Finance Obama’s Binge Spending. (“An Analysis Of The President’s 2013 Budget,” Congressional Budget Office, 3/16/12)
Lesson 15: Your First Paycheck May Seem Smaller Than Expected Since MONEY IS TAKEN OUT FOR TAXES
Activities To Help President Obama Reach This Milestone
· Obama Is “Intrigued” By The Idea Of Making Your Paycheck Even Smaller, Discuss How This Will Effect You?
Obama’s FY2013 Budget Would Raise Taxes On 27 Percent Of U.S. Households According To A Study By The Tax Policy Center. “President Barack Obama’s 2013 budget plan would raise taxes for 27 percent of U.S. households in 2013, far more than the administration estimates, according to a nonpartisan study. The study released today comes from the Tax Policy Center, a research group in Washington that analyzes proposals from presidential candidates in both parties. Obama focuses the tax increases in his 2013 budget on corporations and the top 2 percent of individual taxpayers. The result in the center’s study stems from the fact that taxpayers in all income brackets own parts of corporations.” (Richard Rubin, “Obama Budget Raises Taxes For 27% Of Households, Report Says,” Bloomberg, 3/21/12)
Obama Has Said He Is “Agnostic” On Raising Taxes On Those Making Less Than $250,000 As Part Of A Plan To Reduce The Deficit. “President Barack Obama said he is ‘agnostic’ about raising taxes on households making less than $250,000 as part of a broad effort to rein in the budget deficit. Obama, in a Feb. 9 Oval Office interview, said that a presidential commission on the budget needs to consider all options for reducing the deficit, including tax increases and cuts in spending on entitlement programs such as Social Security and Medicare.” (Rich Miller, “Obama ‘Agnostic’ On Deficit Cuts, Won’t Prejudge Tax Increases,” Bloomberg, 2/11/10)
- President Obama Was “Intrigued By [The] Elegance” Of Allowing All Of The Bush Tax Cuts To Expire In Order To Cut The Deficit. “In November 2009, Orszag would tout an idea that divided the economic team and inspired contempt in the political shop: extending for one or two years George W. Bush’s middle class cuts, which were scheduled to expire in 2011, then letting them lapse unless Congress found a way to offset their costs. During a meeting with Obama in the Oval Office, he casually outlined the proposal. The obvious defect was that it would be likely to break the president’s campaign pledge to oppose tax increases on the middle class. Nevertheless, Obama was intrigued by its elegance as a deficit-cutting maneuver, according to two people in the room. He also liked the idea of forcing Republicans to grapple with the costs of Bush’s policies. Only later did the politicos revolt-the vice president, for one, was apoplectic-and the president lost interest.” (Noam Scheiber, The Escape Artists, 2012, p. 154-155)
Lesson 20: Always Consider Two Factors Before Investing: THE RISKS AND THE ANNUAL EXPENSES
Activities To Help President Obama Reach This Milestone
· Discuss How Obama’s Energy Department Ignored Warnings About Its Risky Investments And Cost Taxpayers Millions Of Dollars
Obama’s Clean Energy Investments Are “A Case Study Of What Can Go Wrong When A Rigid Government Bureaucracy Tries To Play Venture Capitalist.” “The Obama administration’s vaunted initiative to catalyze the U.S. clean-energy industry - under attack for betting half a billion dollars on the solar-panel manufacturer Solyndra, which closed last month - has become a case study of what can go wrong when a rigid government bureaucracy tries to play venture capitalist and jump-start a nascent, fast-changing market.” (Steven Mufson And Carol D. Leonning, “Some Clean-Energy Firms Found US Loan-Guarantee Program A Bad Bet,” The Washington Post , 9/26/11)
- The Washington Post: “The Problem Is That Bureaucrats Are More Likely To Bet Wrong Because They Are Generally Not Full-Time Investment Experts And Have No Skin In The Game Themselves.” (Editorial, “Solyndra: A Bad Bet Obama Should Regret,” The Washington Post , 10/6/11)
Government Accountability Office: “The Administration Didn’t Do Its Due Diligence” When Celebrating The $535 Million In Stimulus Funds For Solyndra. “It’s not his statements the administration will regret; it’s the loan guarantees. The President was celebrating $535 million in federal promises from the Department of Energy to the solar startup. The administration didn’t do its due diligence, says the Government Accountability Office. ‘There’s a consequence if you don’t follow a rigorous process that’s transparent,’ Franklin Rusco of GAO told the website iWatch News.”(Scott McGrew, “Solyndra Filing A Disaster For Obama,” NBC Bay Area News, 8/31/11)
- Solyndra Was One Of Five Companies The Energy Department Failed To Properly Assess, Leaving The GAO “Greatly Concerned.” “Government auditors are questioning whether the administration may have made other bad bets on clean energy. Frank Rusco, a Government Accountability Office director who helped lead a review of the Solyndra loan and the Energy Department’s loan guarantee program, said GAO remains ‘greatly concerned’ by its 2010 finding that the agency agreed to back with loans five companies without properly assessing their failure risks. The companies were not identified in the report, but the agency has since acknowledged that Solyndra was one.” (Carol Leonnig, “After Solyndra Failure, Auditors Wonder What Other Bad Bets Obama Officials Made, The Washington Post , 9/1/11)
Empty Promises: College Costs Still Rising
Democrats Disagree With Obama’s Attacks On Private Sector
FORMER CONGRESSMAN HAROLD FORD JR. (D-TN) DISAGREES WITH OBAMA’S ATTACKS
Former Congressman Harold Ford Jr. Said He Would Not Have Backed Off Mayor Booker’s Comments About Private Equity And Called Private Equity A “Good Thing In Many, Many Instances.” FORMER REP. HAROLD FORD JR. (D-TN): “I would not have backed off the comments if I were Mayor Booker. I understand him wanting to make the point that legitimate questions can be raised about whether or not at Bain they made bad decisions about certain -overall, I agree with the substance - the substance of his comments on Meet The Press, I agree with, the core of it, I would not have backed them out. Having said that, I understand as a surrogate for the campaign, you have to have one of your key and most eloquent and most effective surrogates at least clarify or bring some context to his statements. But I agree with him, private equity is not a bad thing. Matter of fact, private equity is a good thing in many, many instances.” (MSNBC’s “Morning Joe,” 5/21/12)
OBAMA SURROGATE MAYOR CORY BOOKER SAYS HE’S “VERY UNCOMFORTABLE” WITH OBAMA’S LINE OF ATTACK
Mayor Cory Booker (D-Newark, NJ): “I have to say from a very personal level I’m not about to sit here and indict private equity. To me, it’s just, we’re getting to a ridiculous point in America. Especially, I know, I live in a state where pension funds, unions and other people are investing in companies like Bain Capital. If you look at the totality of Bain Capital’s record, they’ve done a lot to support businesses, to grow businesses, and this to me, I’m very uncomfortable with.” (NBC’s “Meet The Press,” 5/20/12)
FORMER OBAMA ECON ADVISER STEVEN RATTNER CALLED OBAMA’S AD “UNFAIR”
Former Obama Economic Adviser Steven Rattner: “I Think The Ad Is Unfair… I Don’t Think There’s Anything Bain Capital Did That They Need To Be Embarrassed About.” “Former Obama administration auto czar Steven Rattner said Monday that the Obama campaign’s renewed attack on Mitt Romney’s time in private equity was ‘unfair.’ ‘I think the ad is unfair.’ Rattner said. ‘Mitt Romney made a mistake ever talking about the fact that he created 100,000 jobs.’…’Bain Capital’s responsibility was not to create 100,000 jobs or some other number. It was to create profits for its investors,’ Rattner said. ‘It did it superbly well, acting within the rules, acting very responsibly,’ Rattner said. ‘This is part of capitalism, this is part of life. I don’t think there’s anything Bain Capital did that they need to be embarrassed about.’” (Byron Tau, “Ex-Obama Adviser: Latest Anti-Romney Ad Is ‘Unfair’,” Politico , 5/14/12)
