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“Yes, Romney’s A Liar”: But More Than Just Creepy, This Is Getting Ridiculous

It is no secret that political candidates are capable of doing awful things when they are reach the desperate final days of an election campaign.

But trying to scare American workers into believing that a government initiative that saved their industry was some sort of secret scheme to shutter major plants and offshore jobs is more than just creepy. It’s economic fear-mongering of a sort that is destructive to the spirit of communities and to the very future of the republic as an industrial force.

George Romney, who led the remarkable American Motors Company project that would eventually produce the Jeep, never in a political career that saw him win election as governor of Michigan and seek the Republican nomination for president would have engaged in such calumny.

But George Romney’s ne’re-do-well son, a very different sort of businessman who devoted his career to taking apart American companies and offshoring jobs, is trying to resurrect his presidential candidacy with a big lie.

And the lie is about Jeeps.

Jeeps are made in Toledo, Ohio, where the iconic American vehicle has been produced since 1941, and Romney needs to win Toledo and the rest of northwest Ohio if he is to stand a chance of winning the battleground state that is key to the presidency.

Last week, Romney went to the region and shocked voters by suggesting that: “I saw a story today that one of the great manufacturers in this state, Jeep, now owned by the Italians, is thinking of moving all production to China.”

The story, an October 22 report by Bloomberg News, which specifically stated that: “Chrysler currently builds all Jeep SUV models at plants in Michigan, Illinois and Ohio. [Fiat/Chrysler executive Mike] Manley referred to adding Jeep production sites rather than shifting output from North America to China.”

Yet, Romney spoke of the company that manufactures Jeeps “moving all production to China.

The statement stirred fundamental fears in a regional that has been battered by plant closings. So much so that Jeep’s parent company, Chrysler, rushed to clarify that Romney was completely, totally, incredibly wrong. “Let’s set the record straight: Jeep has no intention of shifting production of its Jeep models out of North America to China,” announced Chrysler.

Company spokesman Gaulberto Ranieri said that Romney had remade the facts so aggressively that: “It is a leap that would be difficult even for professional circus acrobats.”

What was Romney’s response to being caught in a lie.

He lied bigger.

Much bigger.

The Romney campaign is now airing an ad in Ohio that claims President Obama, with the auto bailout that saved domestic vehicle production, “sold Chrysler to Italians who are going to build Jeeps in China.”

The ad concludes that Romney—whose Bain Capital enterprise identified as “a pioneer of outsourcing”—“will fight for every American job.”

Kathleen Hall Jamieson, the director of the Annenberg Public Policy Center at the University of Pennsylvania, and one of the nation’s top experts on political advertising reviewed the ad and dismissed it as “inferentially false.”

They are inviting a false inference,” Hall said of the Romney campaign’s attempt to suggest that Obama had engineered a change in Jeep’s status that would see the Toledo plant shuttered and its more than 3,500 workers idled.

The Washington Post “Fact Checker” site reviewed Romney’s ad and declared: “the overall message of the ad is clearly misleading—especially since it appears to have been designed to piggyback off of Romney’s gross misstatement that Chrysler was moving Ohio factory jobs to China.”

The pushback from Obama’s backers and his campaign has been aggressive.

Former President Bill Clinton flew to Ohio and decried Romney’s claim as “the biggest load of bull in the world.”

Vice President Joe Biden said: “I have never seen anything like that. It’s an absolutely, patently false assertion. It’s such an outrageous assertion that, one of the few times in my memory, a major American corporation, Chrysler, has felt obliged to go public and say, there is no truth.”

An Obama campaign ad announced that “now, after Romney’s false claim of Jeep outsourcing to China, Chrysler itself has refuted Romney’s lie.”

What was Romney’s response.

Up the ad buy.

Expand the big lie so that it is now enormous.

The deception has become such a serious issue that, on Tuesday, Chrysler CEO Sergio Marchionne felt compelled to clarify what is becoming an international controversy.

“Chrysler Group’s production plans for the Jeep brand have become the focus of public debate. I feel obliged to unambiguously restate our position: Jeep production will not be moved from the United States to China,” wrote Marchionne, who added:

North American production is critical to achieving our goal of selling 800,000 Jeep vehicles by 2014. In fact, U.S. production of our Jeep models has nearly tripled (it is expected to be up 185 percent) since 2009 in order to keep up with global demand…

With the increase in demand for our vehicles, especially Jeep branded vehicles, we have added more than 11,200 U.S. jobs since 2009. Plants producing Jeep branded vehicles alone have seen the number of people invested in the success of the Jeep brand grow to more than 9,300 hourly jobs from 4,700. This will increase by an additional 1,100 as the Liberty successor, which will be produced in Toledo, is introduced for global distribution in the second quarter of 2013.

There was nothing unambiguous about that statement. Yet Marchionne continued: “Jeep is one of our truly global brands with uniquely American roots. This will never change. So much so that we committed that the iconic Wrangler nameplate, currently produced in our Toledo, Ohio, plant, will never see full production outside the United States.”

“Jeep assembly lines will remain in operation in the United States and will constitute the backbone of the brand,” confirmed Marchionne. “It is inaccurate to suggest anything different.”

That’s a rare commitment by a manufacturer—far more clear and unequivocal than the commitment Bain Capital made to the companies it bought up, tore apart and outsourced.

Yet, Mitt Romney’s campaign is still running the ad.

Still lying.

That’s made United Auto Workers union president Bob King furious:

It is especially hypocritical of Mr. Romney’s statements and new ad is Bain Capital’s closing of profitable U.S. facilities and shifting work to China to make even higher profits like what is happening today in closing a profitable Sensata plant in Freeport, IL, to move the work to China. Romney says in the ad that he will fight for every American job, so why isn’t he fighting for the American jobs at Sensata? And why isn’t he intervening with his own Bain Capital to keep these jobs in the U.S. rather than outsourcing them to China? We just wish that Mr. Romney was as committed to investing in the U.S. as Chrysler CEO Sergio Marchionne is.

Americans will remember that President Obama stood behind American working families and American communities in rescuing the U.S. auto industry and that Mr. Romney opposed the rescue and now attacks Chrysler with misinformation. In putting out this misinformation, Romney is recklessly undermining Chrysler’s reputation and threatening good American jobs.

Imagine if Mitt Romney were to be elected president of the United States.

Imagine if he had to go into negotiations with Marchionne, or another CEO of another industrial giant, about protecting US jobs. Or expanding US manufacturing.

Would the executive trust Romney?

Or would the executive remember Romney as the politician who lied and then lied bigger in order to get what he wanted?

That’s a question that American voters who want their country to have a future as a country that makes cars and trucks and Jeeps would be wise to ponder as November 6 approaches.

 

By; John Nichols, The Nation, October 30, 2012

October 31, 2012 Posted by | Election 2012 | , , , , , , , , | 1 Comment

“Trying To Rewrite History”: Mitt Romney’s Views On The Detroit Bailout

Over the weekend, a top GOP aide said President Obama got the idea from Romney. A look at his past positions shows that’s not true.

Over the weekend, top Romney adviser Eric Fehrnstrom made an audacious claim:

“[Romney’s] position on the bailout was exactly what President Obama followed. I know it infuriates them to hear that…. The only economic success that President Obama has had is because he followed Mitt Romney’s advice.”

As Fehrnstrom predicted, liberals are reacting with irritation and incredulity. They point out — not for the first time — that Romney published a New York Times op-ed in November 2008, even before Obama had taken office, headlined, “Let Detroit Go Bankrupt.”

The case is actually a little more complex than that, although Fehnstrom’s claim is still hard to take seriously. To understand how we got here, here’s a brief history of Romney’s statements on the car industry.

During the 2008 primary campaign, Romney won Michigan, a victory that was in part attributed to his promises to save the Motor City’s main industry. “If I am president, I will not rest until Michigan is back,” he said. “Michigan can once again lead the world’s automotive industry.” His campaign contrasted that with John McCain, who said, “I’ve gotta look you in the eye and tell you that some of those jobs aren’t coming back.” Romney’s main policy prescription was a series of federal spending for retraining and green tech, to be doled out in $20 billion chunks over five years. The McCain campaign derided thisas a “$100 billion bailout of the auto industry.”

By November 2008, shortly after Obama’s election, the economy was in free-fall. Here’s an excerpt from Romney’s now-infamous column:

If General Motors, Ford and Chrysler get the bailout that their chief executives asked for yesterday, you can kiss the American automotive industry goodbye. It won’t go overnight, but its demise will be virtually guaranteed. Without that bailout, Detroit will need to drastically restructure itself …. Detroit needs a turnaround, not a check.

Romney called for a “managed bankruptcy,” in which company’s executives would be replaced and union contracts would be renegotiated with more favorable terms. Reversing his position during the Republican primary, he said shedding excess workers was now essential. He wanted the government to oversee the bankruptcy but for it be paid for with private-sector funding. But as former Obama administration “car czar” Steven Rattner and others have pointed out, there did not appear to be any private money on the sidelines. Markets were in disarray and credit was drying up fast — and so, they argue, the federal government’s coffers were the only thing standing between GM and the company’s total demise.

In May 2009, Romney appeared on Fox News Sunday with Chris Wallace, who pressed him on the issue:

WALLACE: Wouldn’t that, at a time when we were in the depths of the recession, when we were really right in the midst of what looked like a financial crisis — wouldn’t that have been disastrous for the economy?

ROMNEY: It’d have been precisely the right thing to do for the economy. To help General Motors at that point, before it had received tens of billions of dollars from the government, go through a structured process either in court or out of court to rid itself of its excessive union contract obligations, would have been the right course, and at that point the government could have helped with warranty guarantees and so forth, with debtor possession financing …. We wouldn’t have closed the business down or liquidated it, we instead would have helped it restructure. It was the right course to take, it’s being taken now, too late unfortunately, and as a result the government ends up with more than 70 percent of GM.

Already, we can see Romney struggling with the issue. But the gist of his main answer is already in place: The government funding was wrong, but the restructuring was right.

In June 2011, he reprised this point on the CBS Early Show: “When I wrote that the auto industry was asking for a bailout, we are unwise to send billions of dollars [to companies], instead — finally — the president recognized I was right, and finally took the company, in the case at General Motors, the company finally went through bankruptcy and went through a managed bankruptcy, came out of bankruptcy and is now recovering.”

With the Michigan primary looming in late February 2012, and his numbers sagging as Rick Santorum surged, Romney was again on the defensive. On February 14, he wrote an op-ed in the Detroit News (now paywalled online), writing, “The president tells us that without his intervention things in Detroit would be worse. I believe that without his intervention things there would be better.” He appeared with Wallace a few days later, and the host again pressed him. Romney once again insisted that GM could have gone through a managed bankruptcy without federal bailout funds.

That brings us to the present day, and Fehrnstrom’s comments. There have been two important shifts in Romney’s position. The first is from pre-recession, 2008 campaign Romney, who supported a $100 billion government investment in maintaining Detroit jobs, to recession-era Romney, who adopted the idea that the automakers needed pain — including potentially significant job loss — to survive. The major questions here are (1) whether it was feasible for the companies to find private financing to restructure and (2) whether the associated job loss and economic ripple effects would have been acceptable. While Romney is correct that the restructuring was what he suggested, his idea at the time was hardly unique; there was a consensus that the companies needed to be significantly reshaped. The question was how to do it, and he said the answer was without federal funds.

The second shift is from the the stance Romney has taken since his op-ed to Fehrstrom’s comments on Sunday. Fehrnstrom is overreaching in claiming that Obama adopted “exactly” what Romney recommended, given his longstanding opposition to the bailouts. It’s understandable that Romney would want to align himself with the successful rescue of the auto industry: While the bailouts are still unpopular with Americans overall, a plurality agree that they helped the economy. Moreover, the move is comparatively popular in Rust Belt states and among working-class white voters with whom Obama is otherwise weak.

Romney’s position on how to handle the carmakers may not have been realistic, but it was far less cartoonish than his liberal critics have suggested. Trying to rewrite history, however, won’t answer their attack.

 

By: David A. Graham, Associate Editor, The Atlantic, April 30, 2012

May 1, 2012 Posted by | Election 2012 | , , , , , , , , | Leave a comment

Tone Deaf Mitt Romney Lacks The Common Touch

As is the case with many politicians,  Mitt Romney’s greatest  strength is also his biggest weakness. His experience as a corporate executive  should make him a good presidential candidate in a year when the economy is  bad. However, while the former liberal and former governor of  Massachusetts can speak fluently about the economic big picture he is completely tone deaf when he tries to relate to the middle class families  who are hurting so badly.

Romney can’t even relate to the average race fan. Yesterday, at the Daytona 500 track, a reporter asked him if he followed NASCAR. Romney said he didn’t follow the sport “as closely as some ardent fans, but I have some friends who are NASCAR team owners.” That’s Romney’s problem in a nutshell. He knows the owners of most corporations but doesn’t know any of the employees.

Friday, speaking in Detroit, which is the poorest city  in  America, Romney told voters that his wife “drives a couple of Cadillacs,   actually.”  Romney could promise to put  two Cadillacs in every garage  but it wouldn’t have the same ring as Herbert  Hoover pledging to put  a single chicken in every pot.

Last June, Romney told voters, “I’m also unemployed.” It’s  easier  for Romney to be unemployed than other people since he has stashed   millions of dollars in bank accounts in Switzerland and the Cayman  Islands. If he  keeps talking like that he’ll still be unemployed next  year.

Last August he told an Iowan, “Corporations are people,  my  friend.” If corporations are people, why isn’t the investment firm   Goldman Sachs doing a long stretch in a federal pen for defrauding  thousands of  investors?

Instead of sympathy from the former Bain capitalist,  voters get a 59  point economic plan and power point presentations. Then,  of course, he  asked Texas Gov. Rick Perry to agree to a casual $10,000 bet. I could go on  and  on, but I don’t have the space here to chronicle every misstep  Romney has made when he tries to relate to working families.

Romney’s platform betrays his background as much as his  personality.

Mitt supported the Wall Street bailout for bankers and  billionaires  but opposed the GM bailout that saved the jobs of thousands of  auto  workers.

Mitt supports the Rep. Paul Ryan’s budget which decreases federal   spending for financial assistance for seniors who can’t afford to heat  their  homes but preserves the federal freebies to big oil to the tune  of $4 billion a  year.

Romney, like many other prominent politicians, is of the manor  born.  But Mitt, unlike the others, never developed the common touch. Franklin  Delano Roosevelt came  from the same privileged background as Romney,  but he could talk to an assembly  line worker or a farmer without  sounding patronizing. When Bill Clinton told  Americans in 1992 that “I  feel your pain,” he meant it because he had felt the  pain as a boy  growing up in a poor town in Arkansas. In contrast Clinton’s opponent, the patrician president George H. W. Bush didn’t even know what a super market scanner was.

You can take Mitt out of the manor but you can’t take the  manor out of Mitt.

 

By: Brad Bannon, U. S. News and World Report, February 27, 2012

February 28, 2012 Posted by | Election 2012 | , , , , , , , , | 1 Comment

“Wealth-Tainted Asides”: Mitt, Michigan And A Couple Of Cadillacs

Mitt Romney just can’t stop wealth allusions from creeping into the conversation.

He did it again on Friday. At the end of a speech about his economic plan before the Detroit Economic Club, when it felt as though he was just winging it, he said: “I love this country. I actually love this state. This feels good being back in Michigan. Um, you know the trees are the right height. The, uh, the streets are just right. I like the fact that most of the cars I see are Detroit-made automobiles. I drive a Mustang and a Chevy pickup truck. Ann drives a couple of Cadillacs, actually.”

Two Cadillacs?

That’s rich, literally.

That’s not what you want to say when you are in Detroit, which, as I pointed out last week, has the highest poverty rate of any big city in America.

That’s not what you want to say in a city where Megan Owens of the Detroit-based advocacy organization Transportation Riders United said on Friday that roughly half of its bus service has been eliminated in the past five or so years.

That’s not what you want to say when discussing a tax-cut plan that, according to models prepared by the Tax Policy Center, would heavily weight the benefits toward the top of the income spectrum.

That’s not what you want to say when, as David Cay Johnston of Reuters pointed out this week, Romney’s plan would:

“Raise taxes on poor families with children at home and those going to college. Romney does this by reducing benefits from the child tax credit and the earned income tax credit and by ending the American Opportunity tax credit for college education.”

That’s probably not the thing to say in Detroit after arguing in a now-famous New York Times Op-Ed article against the auto bailouts, saying: “If General Motors, Ford and Chrysler get the bailout that their chief executives asked for yesterday, you can kiss the American automotive industry goodbye.”

That was probably not the thing to say on the day after Steven Rattner, the lead adviser on the Obama administration’s auto task force in 2009, smacked you down in a New York Times Op-Ed article for suggesting that the government “should have stayed on the sidelines” and allowed the companies to go through “ ‘managed bankruptcies’ financed by private capital.”

As Rattner put it:

“That sounds like a wonderfully sensible approach — except that it’s utter fantasy. In late 2008 and early 2009, when G.M. and Chrysler had exhausted their liquidity, every scrap of private capital had fled to the sidelines. I know this because the administration’s auto task force, for which I was the lead adviser, spoke diligently to all conceivable providers of funds, and not one had the slightest interest in financing those companies on any terms. If Mr. Romney disagrees, he should come forward with specific names of willing investors in place of empty rhetoric. I predict that he won’t be able to, because there aren’t any.”

Ouch. I need to catch my breath after that one.

O.K., carrying on.

The “couple of Cadillacs” comment probably wasn’t the thing to say the day after the Pew Research Center found that most Americans now support the bailouts, with 56 percent saying “the loans the government made to G.M. and Chrysler were mostly good for the economy.”

That probably wasn’t the thing to say in a city where you published an op-ed in The Detroit News on Valentine’s Day continuing to argue against the bailout, saying:

“This was crony capitalism on a grand scale. The president tells us that without his intervention things in Detroit would be worse. I believe that without his intervention things there would be better.”

That probably wasn’t the thing to say the week that your campaign felt the need to remove this lovely little passage from The Detroit News’s endorsement of you before sending it to reporters:

“We disagree with Romney on a point vital to Michigan — his opposition to the bailout of the domestic automobile industry. Romney advocated for a more traditional bankruptcy process, while we believe the bridge loans provided by the federal government in the fall of 2008 were absolutely essential to the survival of General Motors Corp. and Chrysler Corp. The issue isn’t a differentiator in the G.O.P. primary, since the entire field opposed the rescue effort.”

The Detroit Free Press’s endorsement this week echoed the complaint about Romney’s opposition on the bailouts, calling him “dead wrong” and saying that in the past year he has been “refashioning himself as something other than what his record suggests. He has made gestures toward economic and social radicalism, and eschewed the common sense of cooperative governing that made him a success in Massachusetts.”

But what is likely more telling about Romney’s ineloquence and continued wealth-tainted asides that draw attention away from his message onto his wallet is this gem from his Friday endorsement by The Arizona Republic:

“There are better orators in American politics. Indeed, the Democrats appear to have one. And certainly there are Republicans who better project the passion for the office they seek. Steady, unflappable Romney would not a ‘passion president’ make.”

So, poor oratory, anemic passion, possessed of “utter fantasy,” and gestures toward radicalism while cruising in a couple of Caddies: That’s probably not the image you want going into a make-or-break primary.

By: Charles Blow, Op-Ed Columnist, The New York Times, February 24, 2012

February 25, 2012 Posted by | Auto Industry, Election 2012 | , , , , , , | Leave a comment

“Not As Radical But Just As Ridiculous”: Mitt Romney’s Tax-Plan Flim-Flam

Well, it was about perfect, wasn’t it, that Mitt Romney gave his big economic speech before about 1,200 supporters in a 65,000-seat football stadium? Whether the stadium or the speech was emptier is the obvious question of the moment. Pathetic as the pictures of the event were, I’d have to hand the trophy to the speech. Some of Romney’s specifics weren’t as far out there as those of his opponents. His proposed individual marginal tax rates, for example, are radical, but not as radical as those announced by the remaining three other Republican candidates. But his plan is even worse than theirs are in a way that we’ve come to know as typically Romneyesque. He is desperately eager to please the right wing and also to try to seem like the responsible one, but there is no way to do both of things without lying.

First, though, let’s discuss that venue. So a hotel ballroom was oversubscribed. Okay, I know Detroit has been down on its luck for the better part of 40 years, but even so I find it pretty difficult to believe that there is not a venue in the whole metropolitan area that has a capacity somewhere in between the Westin Book Cadillac ballroom’s 1,000 or whatever and Ford Field’s 65,000 (for football; 80,000 for wrestling). The University of Detroit’s basketball teams, for example, must play somewhere. Reports indicate that the Economic Club of Detroit, not the campaign, made the switch. But someone at the campaign said, “Gee, okay!” It’s not a catastrophe, but it is staggeringly stupid. Imagine the field day the right-wing agitprop machine would have had in 2008 with Barack Obama doing something like that. Indeed remember the sport they made of the mere fact of Obama giving a speech in a football stadium, even after he did in fact fill it.

But the deception involved in trying to make 1,200 supporters seem like 80,000 is nothing next to the deception of the plan itself. Romney would lower all six current individual tax brackets by 20 percent. That’s not as drastic as his opponents’ plans. Newt Gingrich, for example, would let any taxpayer choose between paying under the current regime or just paying a 15 percent flat tax. Rick Santorum would have most taxpayers paying just 10 percent. So this is the Romney-the-Reasonable part of the plan. Sticking with six brackets is supposedly meant to signal that he believes in a little stability and is not a loon.

Reducing those rates, of course—along with the reduction of the corporate rate from 35 percent to 25 percent; along with massively increasing Pentagon spending—will reduce revenue. And here’s the catch, via The Wall Street Journal’s write-up. Romney “said Wednesday that as president, he would direct Congress to make up lost revenue from the rate cuts by limiting deductions, mostly for wealthier Americans. Mr. Romney and his aides didn’t say which deductions would be targeted.”

Ah! There it is. Deductions? We’ll figure those out later. Listen, I have a new fiscal plan for the Tomasky household that I am announcing today. I’m going to go half-time at the Beast and quit doing all my other work, thereby reducing my income by well more than half. But circumstances dictate that I also need to buy a new car, and a nice car, a Lexus, because this household needs a husband/father who isn’t ashamed to be a Tomasky and is prepared for the future because the roads can get awfully dangerous out there in Montgomery County. How will I pay for it, you ask? Well, first of all, you’re a freedom-hater for even asking the question, and second, I’ll simply cut all other household spending to the bone. I’ll end up revenue neutral, I swear.

Romney’s plan is literally about that serious. He won’t announce which  deductions because it’s really hard to go after deductions, and because  there is probably not enough money there anyway to make up for the lost  revenue. But trust him, it’ll all work out.

And here’s a curious thing. Romney commits a grave error, from the right-wing point of view, in even acknowledging that there is lost revenue. If he’d gone to the Mitch McConnell School of Economics he’d know that cutting tax rates increases revenue. So the really interesting question here is: Why does Romney even bother to acknowledge that there will be lost revenue that will need to be made up?

He acknowledges it because some small but quickly vaporizing part of the man still retains some attenuated grasp of fiscal reality. So rather than tell the balls-out, red-meat lie that reduced rates will raise more revenue, he tells the squishy and weasely lie that he’ll take care of the imbalance at a future unspecified date in some future unspecified way. And that, my friends, is Romney to the core. He thinks he can finesse everything, that he’s much cleverer than he is, that somehow people won’t notice. But no one’s buying his line about the bailout. It’s patent nonsense, and Steve Rattner just demolished it on the Times op-ed page today. Romney also looks a little graceless, by the way, saying that he drives the Mustang and the GM pickup, while his wife drives the Cadillacs, plural. The way he added that after a pause, it reminded me of John McCain not remembering how many houses he owned. But Romney remembers. He just thinks he can bluff it.

He makes me really wonder about the private sector in this country. Did he earn all those millions behaving this way, telling people what they wanted to hear, then maybe doing something else entirely, then saying to them that that was his plan all along, then jovially throwing a colleague under the bus? Don’t answer that question.

 

By: Michael Tomasky, The Daily Beast, February 25, 2012

 

February 25, 2012 Posted by | Election 2012, GOP Presidential Candidates | , , , , , , , | Leave a comment