To: Kenneth E. Phillipps who wrote (152732 ) 2/13/2013 5:04:04 PM From: TideGlider 1 Recommendation Read Replies (1) | Respond to Fact-checking Obama's State of the Union his 2013 State of the Union address The president claimed that "both parties have worked together to reduce the deficit by more than $2.5 trillion." But that's only an estimate of deficit reduction through fiscal year 2022, and it would be lower if the White House used a different starting point. Obama touted the growth of 500,000 manufacturing jobs over the past three years, but there has been a net loss of 600,000 manufacturing jobs since he took office. The recent growth also has stalled since July 2012. He claimed that "we have doubled the distance our cars will go on a gallon of gas." Actual mileage is improving, but Obama's "doubled" claim refers to a desired miles-per-gallon average for model year 2025. Obama said the Affordable Care Act "is helping to slow the growth of health care costs." It may be helping, but the slower growth for health care spending began in 2009, before the law was enacted, and is due at least partly to the down economy. The president also made an exaggerated claim of bipartisanship. He said that Republican presidential candidate Mitt Romney agreed with him that the minimum wage should be tied to the cost of living. But Romney backed off that view during the campaign. Analysis State of the Union address Deficit Reduction Obama: Over the last few years, both parties have worked together to reduce the deficit by more than $2.5 trillion — mostly through spending cuts, but also by raising tax rates on the wealthiest 1 percent of Americans. As a result, we are more than halfway towards the goal of $4 trillion in deficit reduction that economists say we need to stabilize our finances. a Jan. 14 news conference Budget Control Act of 2011 American Taxpayer Relief Act of 2012 challenge In a recent report CRFB, Feb. 11 : Although $2.7 trillion is a very reasonable estimate of enacted savings, it is by no means the only way to measure past savings. It is worth noting that the discretionary savings in this number are in fact calculated from the high point of discretionary spending. Measuring either from a year later or from a year earlier would result in a smaller savings number because base discretionary spending (excluding the effects of the stimulus) actually increased between 2009 and 2010 due to larger-than-projected appropriations. As we have written once before figures says CRFB, Feb. 11 : Declaring victory with an additional $1.5 trillion would be dangerous, however, since it would leave no margin for error, would result in slower economic growth, would leave little fiscal flexibility, and would have little chance of stabilizing the debt beyond the ten-year window. For these reasons, we believe the debt must be not only stable, but on a clear downward path by the end of the decade.
