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“War Against Reality”: Neutron Jack Welch And The Jobless Numbers Conspiracy

Opening yet another front in their endless war against reality, right-wing conspiracy-mongers have moved on from polling data to federal unemployment statistics, apparently because – like the political polls they’ve disputed in recent weeks — the latest jobless number is not sufficiently damaging to President Obama.

Shortly after the Bureau of Labor Statistics released its September unemployment numbers on Friday morning, showing that the jobless rate fell last month from 8.1 percent to 7.8 percent, outraged expressions of doubt began to appear on the Internet.

Nobody cited any substantive evidence to support allegations that the BLS had suddenly “cooked” its data to promote the president’s re-election, of course. Evidence isn’t required or expected in Fox Nation.

What sustained at least momentary interest in this new “truther” flurry, however, was a Twitter effusion from Jack Welch, the former General Electric chairman, who described the BLS number as “unbelievable” and complained that “these Chicago guys will do anything” because Obama “can’t debate.” (He later admitted to Chris Matthews on MSNBC’s Hardball, “I have no evidence to prove that [the White House influenced the BLS], ” adding disingenuously that “I just raised the question.”)

Although Welch is superficially a credible figure — indeed, still an idol in certain quarters of American business — he is also a particularly enthusiastic and volatile Romney surrogate. “Neutron Jack,” as he used to be known, admires Romney deeply, perhaps because both have become symbols of “corporate greed, arrogance, and contempt for workers.” His tweet about the BLS was a political expression, not an expert assessment, and invites skepticism. But Welch certainly is familiar with dubious numbers and political manipulation.

Several years after he retired from General Electric in 2001 — where his legendary managerial successes brought him accolades as the “CEO of the century” in the business press — the Securities and Exchange Commission opened an investigation of the company’s accounting practices. What the SEC eventually uncovered were long-running schemes to inflate earnings, reminiscent of Enron.

While nobody held Welch personally accountable, the violations that cost the conglomerate $50 million in fines occurred on the watch of the chief financial officer he had appointed in 1998. Other accounts of questionable business practices at GE date back much further.

More pertinent than GE’s accounting misadventures is Welch’s controversial role in the 2000 election, when he became known as an outspoken supporter of George W. Bush. (Considering the dismal history of the Bush presidency, voters might think twice before taking Welch’s political advice this year.) At the time, GE owned NBC and its cable networks CNBC and MSNBC, and Welch was known to make his presence felt in the studios and newsrooms. Nobody at 30 Rock had the slightest doubt about Welch’s hatred toward President Clinton and the Clinton administration, or about his desire to see Clinton replaced by Bush.

On Election Night, as witnesses later told Rep. Henry Waxman, Welch came into the NBC newsroom while the network’s political staff tried to determine who had won the historically-close contest between Bush and Vice President Al Gore. In what news executives later acknowledged was a serious mistake, they called the election for Bush, following a trend started by Fox News, where a Bush cousin was running election coverage under the watchful eye of former Bush consultant and Fox boss Roger Ailes.

According to Waxman’s findings, Welch blatantly tried to influence the decision by NBC election producers to name Bush the winner, based on Florida numbers that were too preliminary and too close to support that call.

Witnesses said that Welch personally examined the raw election data and told the NBC director of election coverage, Sheldon Gawiser, that he believed Bush had won. When Fox called the election for Bush, Welch could be overheard asking Gawiser why NBC had not yet done the same. Not long after that alleged conversation, NBC announced that Bush had won.

NBC News strongly disputed Waxman’s stated concerns over undue influence by Welch. But an internal evaluation later “recommended that the network [should] sequester the election decision desk and protect its election analysts from “unnecessary interruptions.”

Welch himself dismissed the Waxman investigation as “pure crazy” — which is pretty much how economists and government experts are describing his BLS tweet.

But whatever Welch’s present attitude and past behavior, is there any real reason why he should doubt the BLS jobs data — compiled by a corps of dedicated civil servants (not political appointees), many of whom are Republicans, month after month and decade after decade?

The short answer is no.

But before closing this pointless episode, there is another bit of sordid irony involving a different Romney associate. There was once a White House that sought to manipulate BLS statistics for its own partisan purposes. Before the Watergate scandal toppled him from power, Richard Nixon was constantly frustrated by his inability to exercise political control over the agency’s professional civil servants. In his paranoia, Nixon blamed this “problem” on “the Jews” that he believed were running BLS and their animosity toward him – so he and Charles Colson instructed Fred Malek, one of their political stooges, to ferret out the Jews and get rid of them.

Their anti-Semitic plot failed, Nixon resigned to escape criminal prosecution, Colson went to prison for Watergate offenses, and Malek languished in disgrace. Eventually he recovered his reputation, got rich working for Marriott, and buddied up to the Romneys. Last April, he and his wife hosted a “birthday party” fundraiser in Washington for Ann Romney, at $1,000 a head.

So the Republican accusations about gaming the BLS statistics may simply be another case of projection. Perhaps they think Obama is doing it because they always wanted to.

 

By: Joe Conason, The National Memo, October 5, 2012

October 6, 2012 Posted by | Election 2012 | , , , , , , , , | 1 Comment

“Moderate Mitt” Isn’t Back”: He Suddenly Talks Like One But Is Only Embracing The Rhetorical Strategy Of George W. Bush

The news overnight was that Mitt Romney had decided to do a mea culpa for the secretly recorded “47 percent” remarks that rocked his campaign a few weeks ago, calling them “just completely wrong” in an interview with Sean Hannity.

This came 24 hours after a debate in which Romney labored to present himself as more of a pragmatist than an ideologue, objecting insistently when President Obama tried to link him to conservative economic ideas that would threaten the safety net. And it came a little over a week after Romney invoked his own Massachusetts healthcare law – a law that served as the blueprint for Obamacare and that Romney ignored as much as possible during the Republican primaries — as proof of his commitment to aiding poor and middle-class Americans.

These developments are leading the press to declare that Romney is moving to the center – and some pundits to celebrate the supposed return of Mitt the Massachusetts Moderate. But this is a complete misreading of what Romney’s actually up to.

Yes, it’s true, he’s been striking a more moderate tone of late. And for good reason. In the Obama era, the Republican Party has moved far to the right, reflexively opposing every major Obama initiative (even those grounded in traditionally Republican principles) and imposing stringent purity tests on its own candidates. The result is that the GOP never bothered these past four years to formulate a coherent and marketable policy blueprint. To the masses, the GOP’s main selling point has been – and continues to be – this simple message: We’re not Obama. To the extent the party has spelled out affirmative policy ideas, it’s mainly created headaches for Republican candidates running in competitive general election contests.

Romney has long been aware that he can’t actually run on the ideas that his party has generated these past few years, but he’s been further constrained by the right’s deep suspicion of his own ideological credentials. Thus, Romney has spent most of the general election campaign awkwardly switching between vague, broad-stroke pronouncements aimed at swing voters and gestures that mesh with the radicalized, Obama-phobic spirit of today’s GOP base.

What’s changed in the last week or so is the balance: Romney is now primarily pitching his message at non-GOP base voters – people who are likely to recoil at the implications of the policy ideas that the national Republican Party has embraced – and skipping the red meat.

His debate exchange with Obama over taxes is a perfect example. Romney is clearly vulnerable on the issue; the plan he’s presented would slash tax rates in a way that disproportionately benefits the wealthy, and would either explode the deficit or require the elimination of popular, widely used tax deductions. This reflects the actual priorities of the Republican Party, but it’s also at odds with what most Americans (who consistently tell pollsters they don’t like deficits and want taxes on the wealthy raised, and who are fond of their tax deductions) want. Romney’s solution: Insist during the debate that the rich won’t get a tax break and that the deficit won’t explode and avoid specifying any deductions that might be on the chopping block. Given his strong delivery (and Obama’s inability to force him off his script), Romney probably succeeded in sounding reasonable and moderate to most casual viewers.

He played the same game on other sensitive subjects that came up during the debate, like healthcare and education, and his decision to repudiate his own “47 percent” remarks – something he refused to do when the tape was first released a few weeks ago – marks another step toward the rhetorical middle.

Comparisons between Romney now and George W. Bush in 2000 are becoming popular, since Bush employed the same basic strategy in his campaign that Romney used in the debate. There’s an important difference, though: Bush’s platform actually included some nods to moderation. With Romney, it’s only his words.

For instance, Bush called for an expanded federal role in education, which translated into No Child Left Behind, and for federal action to make prescription drugs more affordable for seniors, which led to the creation of Medicare Part D during his presidency. You can certainly take issue with how these laws were crafted and implemented, but Bush’s willingness to pursue them at all represented a break from conservative dogma.

But Romney’s actual platform contains no moderate planks. For instance, he tried to assuage middle-of-the-road voters on healthcare by insisting during the debate that he would repeal Obamacare without sacrificing its popular features, like a ban on the denial of coverage based on preexisting conditions. “No. 1,” Romney said, “preexisting conditions are covered under my plan.” It’s essential for any candidate trying to appeal to general election swing voters to say this, but the actual policy Romney has proposed would not have the effect he described.

Education is another example, with Romney asserting that, “I love great schools. And the key to great schools, great teachers. So I reject the idea that I don’t believe in great teachers or more teachers.” Again, this is tonally in line with what middle-of-the-road voters want to hear, but where is the policy to back it up? As president, Obama presided over a stimulus program that saved hundreds of thousands of teachers’ jobs, and he proposed further action through the American Jobs Act last fall. Romney has railed against both of those programs and not offered any blueprint for hiring more teachers.

This is probably why conservative opinion-leaders seem so unbothered by Romney’s shift to the middle. They recognize that it makes him sound more agreeable to swing voters and that it could help in how he’s portrayed through the media. And they also realize that no matter how much he talks like one, there’s absolutely no reason to believe that a President Romney would govern like a moderate.

 

By: Steve Kornacki, Salon, October 5, 2012

October 6, 2012 Posted by | Election 2012 | , , , , , , , , | 1 Comment

“Jobs Report Truthers Return”: Anytime There Are Positive Jobs Numbers, Conservatives Cry Conspiracy

Today’s jobs report, showing the unemployment rate dropped below 8 percent for the first time in over 40 moths, will have Democrats gleeful and Republicans (deep in their hearts) despondent. But what if the numbers are actually just a part of a plot to get President Obama reelected? It’s a stupid question, but the immediate reaction of many conservative media figures has been not only to ask it, but to answer it as well.

On Fox News, which completely ignored the numbers for the first 30 minutes they were out in favor of stories about (what else?) gold and a live performance by 12-year-old Jackie Evancho, host Bill Hemer darkly warned, as he summarized the report, “a lot of questions remain about those numbers.” Co-host Martha MacCallum agreed that the report “raises a lot questions.” Finally, they brought on Fox Business analyst Stuart Varney to give it to us straight: “There is widespread mistrust of this report and these numbers, because there are clear contradictions.” Varney explained that many of the jobs created are part-time, and that there were discrepancies between the two surveys that make up the report (one looks at jobs added and the other calculates the unemployment rate).

“Oh how convenient that the rate drops below 8 percent for the first time in 43 months five weeks before an election! That’s why there’s some mistrust of these numbers,” Varney continued. And while questioning the numbers produced by the economists at the Bureau of Labor Statistics, Varney approvingly cited statistics from Mitt Romney’s stump speech, saying the 23 million underemployed figure Romney often invokes shows the jobs situation is “grim.”

Just a month ago, Varney didn’t question the validity of the previous jobs report. “OK, I say this is a flat-out bad report on the state of the economy. America simply is not at work,” Varney said in one of two quotes that landed on a GOP tipsheet. But in his defense, that report did show bad news for Obama while the new one is likely good news for the president, so he’s just doing his job.

And Varney wasn’t alone. As Salon’s Andrew Leonard noted this morning, former GE CEO and frequent Obama critic Jack Welch was quick on the draw too, tweeting, “Unbelievable jobs numbers .. these Chicago guys will do anything .. can’t debate so change numbers.” There were other theories too. Conn Carroll, a senior writer at the conservative Washington Examiner, thinks the conspiracy goes far beyond the BLS. “I don’t think BLS cooked numbers. I think a bunch of Dems lied about getting jobs. That would have same effect,” he tweeted. Eric Bolling, another Fox News host, tweeted, “WOW Obama Labor Dept (7.8%) smarter than all 25 of Americas top Economists (8.2%est).. or something far more insideous [sic].” Bob Metcalfe, a conservative academic, added, “Who’da thought Obama’s Labor Department, as their October Surprise, would report the highest one-month ‘employment’ jump in 29 years?” Sonny Bunch, the managing editor of the Washington Free Beacon, tweeted — we assume facetiously — “THEORY: George Soros hired 500k part-time hole-diggers/hole-filler-inners to artificially depress unemployment rate.”

All this fits into a long, dark tradition of questioning BLS data. President Nixon even sent a top aide to make a list of all the people he suspected were Jews in the agencies because he believed they were tweaking economics forecasts to make the president look bad.

 

By: Alex Seitz-Wald, Salon, October 5, 2012

October 6, 2012 Posted by | Election 2012 | , , , , , , , , | 1 Comment

“A Gigantic House Of Cards”: Mitt Romney Gets Away With It, For Now

So other than the fading echoes of Republican celebration and Democratic angst from last night’s presidential debate, and the wait we will now have to endure to see if it made any tangible difference in the contest, what should we actually carry away from the event?

I’ve already confessed myself a non-expert on the “visuals,” and on the “energy level” of the candidates, because I honestly don’t give a damn about any of that. What Mitt Romney needed to do last night, however, was relatively clear: reintroduce himself to swing voters as someone other than a distant plutocrat, and fill in the gaping holes (of omission and commission) in his policy agenda. With quite a bit of help from Barack Obama, he achieved both of those goals, at least temporarily, and in that respect he “won.”

But it came at a price. Jonathan Bernstein summed it up nicely last night at WaPo:

Romney’s policy positions are even more of a shambles now than they were previously. Romney’s position, over and over again, is to simply bluff it on policy. His tax plan continues to be the most obvious one, but it really happens across the board. Romney insisted tonight more than once that his tax plan will keep taxes the same for the wealthy, cut them for everyone else, and not add to the deficit. Forget about the Tax Policy Center; just that much is obviously incoherent and impossible. And, more to the point, it’s clear he’s going to keep on insisting that it adds up, no matter how clearly it doesn’t. But it’s not just that; on every policy, he’s just going to insist that the consequences of his plans that anyone might not like simply don’t exist, so that he’s for sweeping spending cuts but insists that no particular program that anyone brings up might lose any funding, or that he’s for repealing Obamacare but those with pre-existing conditions will magically be protected.

In other words, Mitt Romney lied a lot, and his lies extended beyond his own policies to those of the president (particularly in health care and “green jobs”). His self-representation, moreover, as a deeply caring moderate who shares the president’s goals but is far more eager to reach across the aisle, must have caused some bitter laughter behind the scenes in conservative circles. But because the president, presumably quite deliberately, chose not to depict Romney as a liar and a phony, Mitt largely got away with it, at least for the moment.

Jon Chait believes that Romney has finally pulled off his “etch-a-sketch” moment, reinventing himself as the moderate Republican he once seemed to be in Massachusetts, at a moment when conservatives were too terrified of defeat to object, as they certainly would have earlier in the year if he had hedged on his tax cut plan, let his heart bleed all over the stage for the unemployed and suffering, and begged for a chance to work with Democrats.

But atmospherics aside, what did Mitt actually change last night? He’s long claimed his tax plan wouldn’t increase the deficit, and wouldn’t reduce the relative tax burden on high earners. Last night he said he wouldn’t pursue it if his plan violated either of those principles. But since he’s denied repeatedly there’s any risk of that, why should anybody believe he’d somehow sacrifice the crown jewel of Republican policy–tax cuts for the wealthy–when he’s in office, surrounded by Republicans clamoring for it? But you’d best believe a lot of assurances were going out last night from Team Mitt to conservative opinion leaders denying anything had changed other than how Romney chose to frame and defend his tax plan.

Had Obama more effectively counterpunched last night (or had Jim Lehrer not provided the most passive moderation of a debate in memory), Mitt might not have been able to pull off this feat of prestidigitation. After all, when you think about it, Romney is now saying the high-end tax cuts that Republicans want more than life itself just won’t happen unless he can come up with revenue offsets that don’t change the tax burden, and also get through spending reductions that he’s consistently refused to identify (yea, promised to oppose when it came to most popular spending categories). It’s all a gigantic house of cards. And even if you buy the ludicrous assumption that Romney was sincere in his desire not to upset anyone with his policies, his party won’t for a moment let him actually “move to the center.” Hell, they spent the entire primary season roping him in, and even if they let him posture and maneuver a bit right now, the rope’s still around his neck and their brand is on his posterior.

Obama continually talked around the central problem, attacking the vagueness of Romney’s policies and near the end, finally just coming right out and saying Mitt’s hiding something. But he could not bring himself to say out loud that Mitt’s a serial dissembler who owes his political soul to extremist ideologues and depends strictly on a hidden-hand presentation of his record and agenda. I guess it wouldn’t have been “presidential.”

 

By: Ed Kilgore, Contributing Writer, Washington Monthly Political Animal, October 4, 2012

October 5, 2012 Posted by | Election 2012 | , , , , , , , , | Leave a comment

“Let Me Count The Ways”: Would A Republican Candidate Lie About Taxes?

The United States faces a gigantic economic choice next year, and last night’s debate centered largely around what Mitt Romney would do about it. Romney’s plan is to lock the Bush tax cuts into place, reduce the long-term deficit entirely through spending cuts, enact an additional 20 percent tax rate cut that would disproportionately benefit the rich and cover the cost through unspecified closings of tax deductions. But Romney labored tirelessly, and with evident success, to portray himself in a far more egalitarian light. Every time President Obama described the cost of his tax rate cost, Romney dismissed it as untrue, pledged that his plan would not reduce the current tax burden on the rich, and even implied that he would make the rich pay higher taxes by closing their loopholes.

It was a virtuoso performance. But what does it tell us about how Romney would govern if elected? Here he was making promises about how he would govern that flatly contrasted with his plans. Which promises should we believe? Ross Douthat argues that Romney’s soothing moderate rhetoric shows that he is likely to govern as the moderate he presented himself as.

It’s worth considering a similar — in many ways, identical — episode that took place a dozen years before. During the 2000 election, the growth of a budget surplus offered the country a major choice. Al Gore proposed to use most of the surplus to retire the national debt and the balance for public investment. George W. Bush proposed a large, regressive income tax that Gore warned would exacerbate inequality and jeopardize the soundness of the budget.

Then, as now, the Republican simply denied over and over that his plan would do what the Democrats said it would. Bush portrayed his plan as devoting just a small fraction of the surplus to tax cuts and described his tax cut itself as benefitting the poor far more than the rich. And you certainly could find circumstantial evidence to suggest that Bush might govern the way he portrayed himself, rather than the way his plan read. He had governed in a bipartisan way in Texas, he had explicitly denounced the conservative wing of the Congressional GOP, and he had surrounded himself with moderate advisers like Michael Gerson and Karen Hughes.

But Bush in fact followed through on what his plan actually did, which happened to be what Gore described it as, and not what Bush described it as. His promises to maintain the budget surplus and direct most of the tax cuts to lower-earners fell by the wayside. What mattered was the party, and the Republican Party was committed to a policy of regressive tax cuts.

The Bush-Gore debates centered primarily around Gore’s endless, frustrating attempts to pin down Bush’s priorities. I compiled pieces of Bush denying he would pursue what turned out to be the centerpiece of his administration’s economic agenda.

Here’s Bush in the first presidential debate:

I want to take one-half of the surplus and dedicate it to Social Security. One-quarter of the surplus for important projects …

tonight we’re going to hear some phony numbers about what I think and what we ought to do. …

this is a man who has great numbers. He talks about numbers. I’m beginning to think not only did he invent the Internet, but he invented the calculator. It’s fuzzy math. It’s a scaring — he’s trying to scare people in the voting booth. Under my tax plan that he continues to criticize, I set one-third. The federal government should take no more than a third of anybody’s check. But I also dropped the bottom rate from 15% to 10%. Because by far the vast majority of the help goes to people at the bottom end of the economic ladder. …

After my plan is in place, the wealthiest Americans will pay a higher percentage of taxes then they do today…

Let me tell you what the facts are. The facts are after my plan, the wealthiest of Americans pay more taxes of the percentage of the whole than they do today.

The second presidential debate:

First of all, that’s simply not true what he just said, of course. And secondly, I repeat to you —

MODERATOR: What is not true, Governor?

That we spent — the top 1% receive 223 as opposed to 445 billion in new spending. The top — let’s talk about my tax plan. The top 1% will pay one-third of all the federal income taxes. And in return, get one-fifth of the benefits, because most of the tax reductions go to the people at the bottom end of the economic ladder. …

GORE: I think that what — I think the point of that is that anybody would have a hard time trying to make a tax cut plan that is so large, that would put us into such big deficits, that gives almost half the benefits to the wealthiest of the wealthy. I think anybody would have a hard time explaining that clearly in a way that makes sense to the average person.

BUSH: That’s the kind of exaggeration I was just talking about. (LAUGHTER)

The third presidential debate:

But the top 1% will end up paying one-third of the taxes in America and they get one-fifth of the benefits.

Under my plan, if you make — the top — the wealthy people pay 62% of the taxes today. Afterwards they pay 64%. This is a fair plan. You know why? Because the tax code is unfair for people at the bottom end of the economic ladder. If you’re a single mother making $22,000 a year today and you’re trying to raise two children, for every additional dollar you earn you pay a higher marginal rate on that dollar than someone making $200,000, and that’s not right. So I want to do something about that.

 

By: Jonathan Chait, Daily Intel, October 4, 2012

October 5, 2012 Posted by | Election 2012 | , , , , , , , , | 1 Comment