Crossroads GPS Targets 8 Congressmen With The Same Deceptive Ad
The Rove-associated Crossroads GPS and its anonymous funders are at it again with an attack ad that misleads voters and disparages Democratic-supported economic policies. This time, however, GPS targets not one, but eight Congressmen — Reps. Jim Oberstar (MN), Russ Carnahan (MO), Joe Donnelly (IN), Earl Pomeroy (ND), Lincoln Davis (TN), John Boccieri (OH), Ciro Rodriguez (TX), and Jim Costa (CA) — associating them with Nancy Pelosi and her "failed agenda." The ad specifically targets these members' support of the Recovery Act, repeating the oft-cited claim that the bill was "wasteful" and also suggesting that it included "sweetheart deals" for special interests. In fact, the Recovery Act created millions of jobs and staved off higher unemployment, while also providing billions of dollars worth of tax cuts and limiting bonuses for executives of companies receiving TARP money — so much for those "handouts to special interests."
Crossroads GPS: "Boondoggle"
You can view the other seven identical versions of the ad at the Crossroads GPS YouTube channel.
[Minnesota's/Missouri's/Indiana's/North Dakota's/Tennessee's/Ohio's/our/California's] economy is reeling, and Congressman [Jim Oberstar/Russ Carnahan/Joe Donnelly/Earl Pomeroy/Lincoln Davis/John Boccieri/Ciro Rodriguez/Jim Costa] is making it worse. While he should be helping us, he's supporting Nancy Pelosi and her failed agenda, voting for billions in new debt and reckless spending - including Pelosi's $800 billion stimulus boondoggle filled with sweetheart deals and handouts to special interests. Reckless spending, massive debt, helping Pelosi, not us. [Jim Oberstar/Russ Carnahan/Joe Donnelly/Earl Pomeroy/Lincoln Davis/John Boccieri/Jim Costa]: Wrong for [Minnesota/Missouri/Indiana/North Dakota/Tennessee/Ohio/Texas/California]. Crossroads GPS is responsible for the content of this advertising.
Crossroads GPS Misleads About The State Of The Economy In 6 Different States
President Obama's Policies Did Not Affect The Economy Until July 2009. According to economist Robert J. Shapiro: "From December 2007 to July 2009 - the last year of the Bush second term and the first six months of the Obama presidency, before his policies could affect the economy - private sector employment crashed from 115,574,000 jobs to 107,778,000 jobs." [Sonecon.com, 8/10/10]
Minnesota's Unemployment Rate Has Dropped
Minnesota's Unemployment Rate Has DECREASED By 1.3 Percent Since July 2009. According to the Bureau of Labor Statistics, Minnesota's seasonally adjusted unemployment rate in July 2009 was 8.3 percent. In September 2010, the latest data available, the preliminary unemployment rate was 7.0 percent. [Bureau of Labor Statistics, accessed 10/29/10]
Missouri's Unemployment Rate Has Decreased
Missouri's Unemployment Rate Is Down Since July 2009. The Bureau of Labor Statistics' data states that Missouri's seasonally adjusted unemployment rate fell from 9.7 percent to 9.3 percent between July 2009 and September 2010. [Bureau of Labor Statistics, accessed 10/29/10]
Indiana's Unemployment Rate Has Fallen
Indiana's Unemployment Rate Has DECREASED By 0.3 Percent Since July 2009. According to the Bureau of Labor Statistics, Indiana's seasonally adjusted unemployment rate in July 2009 was 10.4 percent. In September 2010, the latest data available, the preliminary unemployment rate was 10.1 percent. [Bureau of Labor Statistics, accessed 10/29/10]
North Dakota Has The Lowest Rate Of Unemployment In The U.S.
North Dakota Has The Lowest Unemployment Rate In The Country. According to the Bureau of Labor Statistics, as of September 2010, North Dakota has the lowest unemployment rate — 3.7 percent — in the country. [Bureau of Labor Statistics, accessed 10/29/10]
North Dakota's Unemployment Rate Has DECREASED By About 0.7 Percentage Points Since July 2009. According to the Bureau of Labor Statistics, North Dakota's seasonally adjusted unemployment rate in July 2009 was 4.4 percent. In September 2010, the latest data available, the preliminary unemployment rate was 3.7 percent. [Bureau of Labor Statistics, accessed 10/29/10]
Unemployment In Tennessee Has Decreased
Tennessee's Unemployment Rate Has DECREASED By 1.5 Percent Since July 2009. According to the Bureau of Labor Statistics, Tennessee's seasonally adjusted unemployment rate in July 2009 was 10.9 percent. In September 2010, the latest data available, the preliminary unemployment rate was 9.4 percent. [Bureau of Labor Statistics, accessed 10/29/10]
Unemployment In Tennessee Has DROPPED By 12 Percent Since July 2009. According to the Bureau of Labor Statistics, Tennessee had seasonally-adjusted unemployment of 328,808 in July 2009, and a preliminary number of 287,861 in September 2010, approximately a 12 percent drop. [Bureau of Labor Statistics, accessed 10/29/10]
Ohio's Unemployment Rate Has Dropped
Ohio Unemployment Has FALLEN By 7 Percent Since July 2009. According to the Bureau of Labor Statistics, Ohio had seasonally-adjusted unemployment of 635,765 in July 2009, and a preliminary number of 590,809 in September 2010, approximately a 7 percent drop. [Bureau of Labor Statistics, accessed 10/29/10]
Ohio's Unemployment Rate Has DECREASED By About 0.6 Percentage Points Since July 2009. According to the Bureau of Labor Statistics, Ohio's seasonally adjusted unemployment rate in July 2009 was 10.6 percent. In September 2010, the latest data available, the preliminary unemployment rate was 10.0 percent. [Bureau of Labor Statistics, accessed 10/29/10]
"Reckless Spending?" The Recovery Act Created Millions Of Jobs And Boosted The Economy
The Economy Shed Almost 8 Million Jobs Under Republican Policies Before The Recovery Act Could Affect The Economy. According to economist Robert J. Shapiro:
From December 2007 to July 2009 - the last year of the Bush second term and the first six months of the Obama presidency, before his policies could affect the economy - private sector employment crashed from 115,574,000 jobs to 107,778,000 jobs. Employment continued to fall, however, for the next six months, reaching a low of 107,107,000 jobs in December of 2009. So, out of 8,467,000 private sector jobs lost in this dismal cycle, 7,796,000 of those jobs or 92 percent were lost on the Republicans' watch or under the sway of their policies. Some 671,000 additional jobs were lost as the stimulus and other moves by the administration kicked in, but 630,000 jobs then came back in the following six months. The tally, to date: Mr. Obama can be held accountable for the net loss of 41,000 jobs (671,000 - 630,000), while the Republicans should be held responsible for the net losses of 7,796,000 jobs. [Sonecon.com, 8/10/10, emphasis added]
Based on Shapiro's research, the Washington Post's Ezra Klein created the following chart showing net job losses before and after the Recovery Act was enacted:
[Washington Post, 8/12/10]
CBO: The Recovery Act Created Jobs, Lowered Unemployment, And Boosted GDP. According to the nonpartisan Congressional Budget Office, through the second quarter of 2010, the American Recovery and Reinvestment Act:
- Raised the level of real (inflation-adjusted) gross domestic product (GDP) by between 1.7 percent and 4.5 percent,
- Lowered the unemployment rate by between 0.7 percentage points and 1.8 percentage points,
- Increased the number of people employed by between 1.4 million and 3.3 million, and
- Increased the number of full-time-equivalent (FTE) jobs by 2.0 million to 4.8 million compared with what those amounts would have been otherwise.
Reuters: The Recovery Act May Have "Prevented The Sluggish Economy From Contracting" Between April And June. According to Reuters:
The massive U.S. stimulus package put millions of people to work and boosted national output by hundreds of billions of dollars in the second quarter, the nonpartisan Congressional Budget Office said on Tuesday.
CBO's latest estimate indicates that the stimulus effort, which remains a political hot potato ahead of the November congressional elections, may have prevented the sluggish U.S. economy from contracting between April and June.
CBO said President Barack Obama's stimulus boosted real GDP in the quarter by between 1.7 percent and 4.5 percent, adding at least $200 billion in economic activity. [Reuters via ABC News, 8/24/10]
Job Statistics Trend Shows Recovery Act Is Working. Below is a graph prepared by the Speaker's office showing net private sector job gains or losses per month since December 2007.
[Bureau of Labor Statistics via The Gavel, 10/8/10]
Princeton, Moody's Economists Say "Highly Effective" Government Response To Crisis Saved 8.5 Million Jobs. According to the New York Times: "Like a mantra, officials from both the Bush and Obama administrations have trumpeted how the government's sweeping interventions to prop up the economy since 2008 helped avert a second Depression. Now, two leading economists wielding complex quantitative models say that assertion can be empirically proved. In a new paper, the economists argue that without the Wall Street bailout, the bank stress tests, the emergency lending and asset purchases by the Federal Reserve, and the Obama administration's fiscal stimulus program, the nation's gross domestic product would be about 6.5 percent lower this year. In addition, there would be about 8.5 million fewer jobs, on top of the more than 8 million already lost; and the economy would be experiencing deflation, instead of low inflation. The paper, by Alan S. Blinder, a Princeton professor and former vice chairman of the Fed, and Mark Zandi, chief economist at Moody's Analytics, represents a first stab at comprehensively estimating the effects of the economic policy responses of the last few years. 'While the effectiveness of any individual element certainly can be debated, there is little doubt that in total, the policy response was highly effective,' they write." [New York Times, 7/27/10, emphasis added]
"Sweetheart Deals" And "Handouts?" The Recovery Act Included Billions In Tax Relief For Middle-Class Families...
PolitiFact: "Nearly A Third" Of Recovery Act Is "Tax Breaks To Individuals And Businesses." According to PolitiFact.com: "Nearly a third of the cost of the stimulus, $288 billion, comes via tax breaks to individuals and businesses. The tax cuts include a refundable credit of up to $400 per individual and $800 for married couples; a temporary increase of the earned income tax credit for disadvantaged families; and an extension of a program that allows businesses to recover the costs of capital expenditures faster than usual. The tax cuts aren't so much spending as money the government won't get -- so it can stay in the economy. Of that $288 billion, the stimulus has resulted in $119 billion worth of tax breaks so far." [PolitiFact.com, 2/17/10]
...And Placed "Strict Limits" On CEOs Of Companies Receiving TARP Money
The Recovery Act Included A Provision Which Placed "Strict Limits" On Executive Bonuses. According to CBS News: "Over the objections of the Obama Administration, Senate Banking Chairman Chris Dodd slipped in a little noticed provision that puts strict limits on those massive year end bonuses for top executives at troubled banks. ... The rules apply to the companies which have already received or will get future payments of at least $250 million in bailout money. For example, Miller reports, a top-level manager making a million dollars a year could only receive bonus of $500,000. And if he or she gets stock options, they can't cash them in until the company pays the government back." [CBSNews.com, 2/14/09]
The Exploding Debt And Deficit Are The Result Of Bush-Era Policies And The Recession
Before Obama Took Office, The FY 2009 Deficit Was Projected At $1.2 Trillion. As reported by the Washington Times: "The Congressional Budget Office announced a projected fiscal 2009 deficit of $1.2 trillion even if Congress doesn't enact any new programs. [...] About the only person who was silent on the deficit projection was Mr. Bush, who took office facing a surplus but who saw spending balloon and the country notch the highest deficits on record." [Washington Times, 1/8/09, emphasis added]
CBPP: Deficit Grew By $3 TRILLION Because Of Policies Passed From 2001 To 2007. According to the Center on Budget and Policy Priorities: "Congressional Budget Office data show that the tax cuts have been the single largest contributor to the reemergence of substantial budget deficits in recent years. Legislation enacted since 2001 added about $3.0 trillion to deficits between 2001 and 2007, with nearly half of this deterioration in the budget due to the tax cuts (about a third was due to increases in security spending, and about a sixth to increases in domestic spending)." [CBPP.org, accessed 1/31/10, parentheses original]
The Bush Tax Cuts Are The Primary Driver Of Federal Budget Deficits Over The Next Decade. Below is a chart from CBPP showing the deficit impacts of war spending, financial recovery spending, the recession itself, and the Bush tax cuts:
Public And Foreign-Held Debt Skyrocketed While Bush Was In Office. Below are two graphs prepared by the Speaker's office showing the increase of publicly and foreign-held debt during the years Bush was in office:
[U.S. Treasury via The Gavel, 6/11/10]