Mitt Romney’s Lies: “It’s Almost As If He Can’t Control Himself”
As his briefly front-running campaign sunk in the polls under relentless punishment from Mitt Romney’s “super PAC” allies in the days before the Iowa caucuses, former House Speaker Newt Gingrich caused a brief stir by matter-of-factly telling a TV interviewer that Romney is a “liar.”
“Why are you saying he’s a liar?” his apparently shocked interlocutor pressed. The notion that Mitt Romney routinely makes statements lacking a factual basis should not come as a surprise to anyone who has followed the campaign. On the left, Paul Krugman has marveled that no other candidate has ever “lied so freely, with so little compunction.” On the right, The American Conservative‘s Daniel Larison wondered about why he lies, concluding that the former Massachusetts governor is “so contemptuous of the people he tells lies to that he never thinks he will be found out.”
With Romney sweeping Iowa and New Hampshire and leading in the polls in South Carolina, this is a good time to catalogue some of Romney’s greatest hits thus far.
“100,000 new jobs.” Romney has repeatedly claimed that during his tenure at Bain Capital, “net-net, we created over 100,000 jobs.” His campaign defends the figure by tallying the current employment totals of some companies Bain aided. That’s a stretch in and of itself, but it’s also not a net figure. It lacks the balancing context of how many jobs were destroyed by Bain. As the Los Angeles Times reported in December, while Bain helped some companies grow, “Romney and his team also maximized returns by firing workers, seeking government subsidies, and flipping companies quickly for large profits. Sometimes Bain investors gained even when companies slid into bankruptcy.”
Indeed, the Wall Street Journal looked closely at Bain’s record under Romney and found that 22 percent “either filed for bankruptcy or closed their doors by the end of the eighth year after Bain first invested, sometimes with substantial job losses.” Which is not really terribly surprising: Bain’s raison d’etre is not job creation but wealth creation for its investors. As Washington Post fact checker Glenn Kessler noted in an article Monday calling Romney’s “100,000 jobs” figure “untenable,” Romney and Bain “never could have raised money from investors if the prospectus seeking $1-million investments from the super wealthy had said it would focus on creating jobs.”
As a corollary, when Romney’s record has been criticized, he has dismissed criticisms as an attempt to “put free enterprise on trial.” It’s not an attack on free enterprise. It’s an attack on Romney’s strained attempt to spin his successful record of wealth-creation into one of job-creation. It’s also a recognition that while a net good, the free market has its destructive side—and it’s a fair question to ask, whether voters consider experience in that sort of vulture capitalism as a good qualification for the presidency. Do they want government to be run more like that kind of business?
Obama’s jobs record. By Romney’s own logic (touting jobs created but ignoring jobs lost), his attacks on President Obama’s economic record are nonsensical. He told Time that Obama “has not created any new jobs,” and he told Fox News last week that Obama has “lost” 2 million jobs as president. This is indeed a net figure, but also a misleading one. When Obama took office, the economy was shedding jobs at a rate of nearly 1 million jobs per month, losing roughly 3 million during the first four months of 2009. But presidential policies don’t take effect as soon as the incoming chief takes his oath. Once Obama’s policies started to take effect, the trend turned. The country had added 3.2 million private sector jobs over the course of 22 straight months of private sector growth. By Romney’s definition, the president has created more than 3 million jobs—not enough, but also not none.
In fact the biggest drag on job growth is the 600,000 public sector jobs that have disappeared under the auspices of budget austerity. As my colleague Danielle Kurtzleben reported in September, “government jobs are being shed by the tens of thousands almost every month, hindering an already weak recovery.”
“Entitlement society.” Romney has argued that Obama “is replacing our merit-based, opportunity society with an entitlement society,” where “everyone is handed the same rewards, regardless of education, effort, and willingness to take risk.” As New York‘s Jonathan Chait has observed, “This accusation is approximately as accurate as claiming that the Republican Party wants to pass laws forbidding poor people from making more money.” The idea that President Obama (or any Democrat) advocates for equality of outcomes simply lacks a basis in fact.
It’s an important fabrication, because it marks a turning point in Romney’s attacks on Obama. Previously the president was characterized as ineffectual, but not a socialist. Forced to battle to win the GOP primaries, Romney has adopted the Tea Party’s extremist rhetoric. It won’t play with swing voters, even delivered in his polished drone.
Defense cuts. In an October speech on national security, Romney promised to “reverse President Obama’s massive defense cuts.” One problem: Pentagon spending has gone up under Obama, from $594 billion in 2008 to $666 billion. The 2011 request was for $739 billion. As Rick Perry would say, “Oops.”
No apologies. Romney has said that Obama “went around the world and apologized for America.” This is part of the conservative, dog-whistle meme that Obama is un-American (and possibly even a foreigner!). While the notion of an international apology tour is a staple of the conservative case against Obama, it is also fictitious. The Washington Post’s fact-checker concluded that “the claim that Obama repeatedly has apologized for the United States is not borne out by the facts, especially if his full quotes are viewed in context.” Don’t hold your breath waiting for an apology from Romney on this one.
“Mitt.” It’s a small one, but might be my favorite. During a debate in November, when moderator Wolf Blitzer introduced himself by saying that “Wolf” is really his first name, Romney greeted the audience by saying, “I’m Mitt Romney, and yes, Wolf, that’s also my first name.” In fact, Willard is his first name. It’s a lie notable for being so mundane: Why would someone fudge their name? It’s almost as if he can’t control himself.
Robert Schlesinger, U. S. News and World Report, January 12, 2012
“It’s All About Bucks,The Rest is Conversation”: Mitt Romney And ‘Envy’ Versus ‘Greed’
The 2012 presidential race is shaping up as a battle not just between candidates, but over which of the Seven Deadly Sins is most offensive to voters.
On the one side, we have envy, which GOP front-runner former Gov. Mitt Romney identified as a distasteful by-product of income inequality—or, Republicans argue, the “class warfare” provoked by Democrats. The United States “already has a leader who divides us by the bitter politics of envy,” Romney said after winning the New Hampshire primary. The line was obviously meant to undermine Obama’s 2008 pledge to bring people together, as well as to cast restless middle-class and poor people as possessing un-mannerly envy.
On the other side, however, we have greed, and that is a Deadly Sin that may haunt the eventual Republican nominee. The Occupy Wall Street movement may be dismissed (unfairly) by some as a bunch of Starbucks-sucking, whiny kids who won’t look for jobs, but it is undeniably true that a broad swath of Americans is getting more than a little resentful at the fact that the very wealthy have come through the recession quite profitably, while the low-and-middle income workers are still struggling. Many of those who managed to keep their jobs are working at lower pay and reduced benefits, further aggravating the situation.
According to a recent Pew Research Center poll, about two-thirds of the public now believes there are strong conflicts between the rich and poor. The percentage has grown by 19 points since 2009, suggesting that voters are growing far more aware of the economic division as the election approaches. The Pew report notes, even more notably:
…in the public’s evaluations of divisions within American society, conflicts between rich and poor now rank ahead of three other potential sources of group tension — between immigrants and the native born; between blacks and whites; and between young and old. Back in 2009, more survey respondents said there were strong conflicts between immigrants and the native born than said the same about the rich and the poor.
How much political capital can a candidate gain by dismissing the unemployed malcontents as immorally envious? It’s a risk, especially this year.
We all feel envious sometimes, and most of us are not proud of it (which is a good thing, since pride is another one of the Seven Deadly Sins). But that sort of envy comes from feeling ungraciously jealous when a friend gets a promotion or a new car or a charming boyfriend. Feeling resentful of Wall Street investors and bankers who made terrible economic decisions that affected the entire national economy—then continued to be extremely well compensated despite the failures—is not jealousy. It’s a reaction to what many Americans see as a basic question of fairness.
Americans are aspirational; this is why even those who will never in their lives amass $1 million still oppose the estate tax. And there is a strong sense in this country, among liberals and conservatives alike, that enterprise and creativity should be rewarded, financially and otherwise. What gets missed in the silly verbal jousting, in which President Obama has been declared a “socialist” and enemy of free enterprise, is that Wall Street itself wasn’t willing to submit to the uncertainty of capitalism. They wanted to privatize the profits. But they wanted to socialize the risk. And it was 401K holders and middle-class workers who bore the brunt of that bad risk.
There was a time when Americans could chuckle good-naturedly at the line in the movie Wall Street that “Greed is good,” and even agree with it, somewhat. But that was when envy was about who had the bigger car. The enviers now are the ones who have no health insurance and are losing their houses to foreclosure. And they vote.
Mitt Romney Contradicts Own Spokesman On 100k Jobs Claim
Mitt Romney doubled down in Saturday night’s debate on his claim that he created a 100,000 jobs while in the private sector and in the process contradicted recent remarks on the subject from his own campaign spokesperson.
Under persistent questioning from debate moderators, Romney denied that the 100,000 figure can only be reached if one does not count layoffs and other job losses he was responsible for during his time at the corporate management company, Bain Capital.
The talking point, a regular on the campaign trail for Romney, has been well-dissected in recent days. As Brian Beutler wrote last week,
Romney makes two different, but implicitly entwined claims: That while working in corporate management he created over 100,000 jobs and that — by comparison — Obama his presided over millions of job losses.This is a false juxtaposition, based on two false claims. And so far, precious few reporters have pressed Romney or his campaign about it.
That changed big time Saturday when debate moderator George Stephanopolous asked Romney to justify the claim early in the debate. Here’s the question:
There have been questions about that caluclation of the 100,000 jobs, so if you could explain a little more, I’ve read some analysts who look at it and say that you’re counting the jobs that were created, but not the jobs that were taken away. Is that accurate?
Here’s where things get a little complicated. Last week, Romney advisor Eric Ferhnstrom told the Washington Post Romney’s claim that he created 100,000 jobs “stems from the growth in jobs from three companies that Romney helped to start or grow while at Bain Capital: Staples (a gain of 89,000 jobs), The Sports Authority (15,000 jobs), and Domino’s (7,900 jobs).”
“This tally obviously does not include job losses from other companies with which Bain Capital was involved — and are based on current employment figures, not the period when Romney worked at Bain,” the Post wrote.
On the debate stage tonight, Romney said something totally different:
It includes the net of both. I’m a good enough numbers guy to make sure I got both sides of that. The simple ones, some of the biggest, for instance, there’s a steel company called Steel Dynamics in Indiana. Thousands of jobs there. Bright Horizons Childrens Centers, Sports Authority, about 15,000 jobs there. Staples alone, 90,000 employees. That’s a business we helped start from the ground up.
So Romney’s adviser told the Post the the number comes from the jobs that exist at the companies now, not the jobs that were created specifically while he was at Bain, and that they didn’t take into account the other side of the ledger. But on stage Romney said the opposite: that he actually did create 100,000 net jobs in total while at Bain, even factoring in Bain’s layoffs.
Democrats noticed the difference. While the debate was still underway, the DNC pushed out a release to reporters under the subject line, “Romney’s so-called job creation record at Bain continues to evolve.” Separately, the Associated Press went up with a fact-check article moments after the debate concluded.
So this one is going to stick around.
Update: TPM asked Romney spokesman Eric Fehrnstrom about the seeming contradiction between his and Romney’s assessment of the 100k jobs figure. He said that it holds up regardless of whether it includes layoffs at other companies.
“The Bain record has been scrutinized extensively going back to 1994 when Mitt Romney first ran for office,” he said. “You just look at Bain’s startups like Staples, Sports Authority, Bright Horizons, you come up with a jobs figure in excess of 100,000. Now there’s about five or six companies that get written about endlessly that experienced layoffs. Go ahead and deduct those from the number, you still come up with over 100,000 jobs.”
Asked whether the campaign would provide revised numbers that demonstrate that net job gains were in excess of 100,000 even with layoffs included, Fehrnstrom responded, “I just gave you my analysis.”
By: Benjy Sarlin and Evan McMorris-Santoro, Talking Points Memo, January 7, 2012
The Champion Of The Already Powerful: Mitt Romney’s Brand Of Extremism
Mitt Romney’s close call at the Iowa caucuses Tuesday will doubtless contribute to speculation that he is too “moderate” to appeal to Republican primary voters. While Romney has a complicated relationship with his new party-line stances on social issues, I’d argue that his new positions and his Olympian flip flops that he had to make to get there are only part of his problem. Romney isn’t too moderate for Republican voters — at this time in our country he’s simply the wrong kind of extreme.
The 2012 election will ultimately be a referendum on the kind of economic policies Americans want — ones that work for working people or ones that are designed by and for a privileged few. The Bush-instigated recession has compounded the unprecedented disparity between the richest few Americans and the millions who are struggling just to get by. President Obama’s efforts to put Americans back to work have been met at every turn by a Republican Congress unwilling to stimulate the nation’s economy and stabilize the nation’s finances, inexplicably eager to give a tax hike to working families but unwilling to let Bush’s damaging tax cuts for the wealthy expire. All the Republican frontrunners are offering similar reprises of Bush’s disastrous economic policies. But only one comes across immediately and undeniably as an extreme corporatist.
Former Arkansas governor Mike Huckabee hit Romney’s extremism problem on the head when he said the candidate “looks like the guy who fired you.” Most didn’t get to see his face at the time, but Mitt Romney has plenty of experience firing people from a distance, sending thousands of jobs overseas while raking in fat paychecks at Bain Capital that continue today years after his retirement. No wonder he hasn’t been able to shake the image of himself as a corporate fat-cat: he doesn’t just want to give corporations and the wealthy major tax cuts, he openly states that he thinks “corporations are people.”
And Romney’s out-of-touch image and pro-corporate extremism aren’t just turn-offs to progressives. A poll by The Hill this fall found that “55 percent of conservatives and 81 percent of centrists” see income inequality in America as a problem. A Bloomberg–Washington Post poll found that a majority of Republicans think the wealthiest Americans should pay more in taxes to help bring down the budget deficit. Corporate extremism at odds with the priorities of the base is the norm among the GOP presidential candidates — but only Romney embodies it.
Unfortunately, Romney’s near-miss with Santorum will help him frame himself a mainstream, electable candidate just conservative enough to make it through the Republican primary gauntlet. Santorum is the perfect foil: a right-wing ideologue so extreme he thinks states should be able to outlaw contraception, that homosexuality is akin to bestiality, that high obesity rates are an argument against food stamps, and that all married same-sex couples should have their unions annulled. But when it comes to policy, Romney’s positions on social issues are nearly indistinguishable from those of his crusading opponent. Romney has endorsed radical anti-choice “personhood amendments.” He rejects marriage equality and says he wouldn’t support a federal-level Employment Non-Discrimination Act. He opposes the DREAM Act. He’s even getting his legal policy advice from Robert Bork, a right-wing crusader so extreme the Senate wouldn’t confirm him to the Supreme Court.
Romney and Santorum would each be disastrous to America on both social and economic issues. But their near-tie in Iowa exposes a fault line that will be visible through the general election. So what’s the difference? While there is still a solid evangelical base that embraces the kind of social extremism offered by Santorum, American voters across the political spectrum are wary of the government-by-the-few embraced by the GOP and embodied by Romney.
Santorum is no less of an economic extremist than Romney, just as Romney is hardly less of a social extremist than Santorum. Every Republican candidate has called for trillions of dollars of tax breaks for corporations and the wealthy, for ending Medicare as we know it, and for a return to George W. Bush’s disastrous economic policies. But Romney — through his biography, demeanor and tin ear — has, with good reason, become personally associated with these policies that cater to the wealthy and privileged and ignore the middle class.
The 2012 election will come down to a very basic choice. Do we want a champion of the middle class in the White House or the champion of those who are already powerful? Do you want to hire the guy who fired you? Iowa Republicans this week started answering that question.
By: Michael B. Keegan, The Huffington Post, January 5, 2012
Bank Of America Cuts Off Credit To Some Small Businesses
Bank of America Corp., under pressure to raise capital and cut risks, is severing lines of credit to some small-business owners who have used them to stay afloat.
The Charlotte, N.C., bank is demanding that these customers pay off their credit line balances all at once instead of making monthly payments. If they can’t pay in full, they are being offered new repayment plans for as long as five years, but with far higher interest rates than their original credit lines had.
Business owners complain that BofA’s credit squeeze is abrupt and could strain their small companies and even put them out of business. The credit cutoff is coming at a time when the California economy can’t seem to catch a break, and bucks what the financial industry says is a new trend of easing standards on business loans.
One such customer, Babak Zahabizadeh, was told in a letter that the $96,000 debt carried by his Burbank messenger service must be repaid Jan. 25. A loan officer offered multiple alternatives over the phone that Zahabizadeh called unaffordable, including paying off the debt at 12% interest over two years. That’s about $4,500 a month, nearly 10 times his current interest-only payment.
Zahabizadeh, known as Bobby Zahabi to his customers, said he has cut the staff of his Messengers & Distribution Inc. to 80 from 200 to nurse his business through tough times.
“I was like, ‘Dude, you’re calling a guy who’s barely surviving!’ ” he said. “My final word was that I can double my payment — but not triple or quadruple it. I told them if they apply too much pressure they’re going to push me into bankruptcy.”
The capped credit lines stem from a corporate overhaul launched by Brian Moynihan, who became Bank of America’s chief executive in 2010. He promised to address losses caused by loose lending and rapid expansion by reining in risks and shedding investments deemed non-core.
BofA spokesman Jefferson George said a “very small percentage” of small-business customers have been affected by the changes. He would not provide exact numbers except to say it wasn’t in the hundreds of thousands. Some of the affected businesses had been customers of other banks that Bank of America acquired, but most were BofA customers from the start, George said.
“These changes were explained in letters to customers, and they were necessary for Bank of America to continue prudent lending to viable businesses across the U.S.,” he said.
The bank still has 3.5 million non-mortgage loans to small businesses on its books. The affected business owners were notified a year in advance that their credit lines were being called, George said, although Zahabi and several others said they had not received the early warnings.
The changes also include added annual reviews of borrowers and annual fees, and often reductions in the maximum amount of credit. George said the aim was to reduce Bank of America’s risks and to bring the loan terms in line with more stringent standards imposed after the 2007 mortgage meltdown and 2008 credit crisis.
Scott Hauge, president of the advocacy group Small Business California, called the credit cuts “a tragedy” for longtime BofA clients left vulnerable by years of struggle in a sour economy.
“If small businesses are going to lead the way out of the economic doldrums we now face in this country, they must have access to capital, not only to hire more people but to protect the jobs they are currently providing,” Hauge said.
Bank of America was a leader in the banking industry’s abortive attempt to impose debit card fees. But it appears to be a laggard in tightening business lending standards. Most other banks, having tightened lending standards in the aftermath of the financial crisis, had eased credit last year as competition for small-business customers heats up, bank analysts say.
“Everyone … is targeting commercial and particularly small-business lending as the real focus area for growth,” said Joe Morford, an analyst in San Francisco for RBC Capital Markets.
While Bank of America is advertising its own commitment to small businesses, it needs to send another message to its government supervisors because it has less of a capital cushion against losses than major rivals, said FBR Capital Markets bank analyst Paul Miller.
Restricting credit lines “is a way to show the regulators they are serious about addressing risks,” Miller said. “Bank of America is under great pressure, especially with another round of [Federal Reserve] bank stress tests coming up, as the regulators say: ‘We want you to tighten up.’ ”
The analysts said all banks monitor business customers and restrict credit on a case-by-case basis. But they said they were unaware of any other large bank systematically capping credit at this time.
Customers interviewed by The Times said they could understand how the turbulent economy might result in some restrictions. But they complained that the credit cutoffs threatened to undo businesses they shepherded through the downturn by slashing costs, hoping to expand when brighter days return.
Several small-business owners indicated that they had nearly used up all the available credit on their Bank of America lines. However, George said maxing out the lines wasn’t a major factor in the bank’s reevaluation of the credit terms.
Kathleen Caid’s Antique Artistry Studio in Glendale sells elaborately beaded, Victorian-style shades that she makes for lamps, chandeliers and sconces. She said she had understood that her $85,000 credit line would remain in place “as long as I wasn’t in default,” and she hadn’t missed any payments.
Caid and her husband, Tim Melchior, a video producer with a Burbank media company, insist they are not in serious financial trouble despite having laid off her eight full-time employees and downsized her business space by two-thirds during the recession.
Yet Bank of America says that her credit-line debt, totaling $80,000, is due in May.
“I wouldn’t have run it up if I knew what was in store,” she said, adding that she would be speaking to an attorney and other banks about her options.
By: E. Scott Reckard, Los Angeles Times, Jamuary 3, 2012
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