Analysis: Obama Campaign Ad Featuring President Clinton Misleading

09.03.2012

Analysis: Obama Campaign Ad Featuring President Clinton Misleading

original article written by Net Advisor™

Washington DC. The Obama Campaign released a late August 2012 campaign ad featuring former President Bill Clinton in what is titled, “clear choice.” The only problem with the ad is that it is grossly misleading. I have broken down the advertisement from the Obama video (below) and have analyzed the statements here.

Obama Campaign Advertisement:

President Clinton said in the above Obama Campaign ad:

“This election to me is about which candidate is more likely to return us to full employment.”

[1] Unemployment Data

The future can always be debated, but what cannot be debated is history. What has the current Administration done over the last 3 years with regard to creating a business environment toward “full (or just more) employment?”

Results: Unemployment has gone up, NOT down since President Obama took office.

FACT: (Official) Unemployment Rate When Mr. Obama Took Office: 7.3%

— Source: MS-NBC (based on Obama’s inauguration date)

FACT: (Official) Unemployment Rate as of August 3, 2012: 8.3%

— Source: BLS.gov PDF

[2] Quick Analysis of the Unemployment Data

Analysis on MS-NBC data: Based on MS-NBC’s July 10, 2011 unemployment calculation, the unemployment rate still went up 13.69% since President Obama took office. [MATH: Using the CURRENT unemployment rate of 8.3% then subtract 7.3% (unemployment rate at Obama’s Inauguration date) would = 1%; then 1% divided into 7.3% = 13.6986% (rounded would be 13.7% increase in the unemployment rate based on MS-NBC’s data).]

Analysis on Fox News data: Based on the Fox News graphic (top of this page) dated September 2, 2012, the unemployment rate still went up 6.4% since President Obama took office. [MATH: Using the CURRENT unemployment rate of 8.3% then subtract 7.8% (Fox News unemployment rate start date for Obama) would = 0.5%; then 0.5% divided into 7.8% = 6.41% increase in the unemployment rate based on Fox News’ data.] Fox News gives Obama a better unemployment number than MS-NBC.

Government’s official data: Based on the Bureau of Labor Statistics’ data, the unemployment rate for the month of January 2009 was 7.6% (30 page PDF/ link only). Since technically Obama wasn’t officially in office until January 20, 2009, we can still use the February 2009 unemployment data which places the unemployment rate at 8.1% (30 page PDF/ link only).

Based on the Bureau of Labor Statistics’ data, the unemployment rate for the month of August 2012 was 8.3% (3 page PDF/ link only). So it seems that both MS-NBC and Fox News unemployment start dates for Obama seem to be within a marginal range of the BLS numbers at time of their posting.

Analysis on government’s data: Now, I have argued for the last two-and-a-half years that the government’s own unemployment data is misleading. Even though CBS 60 Minuets virtually mirrored the basis for my argument, we’ll just drink some of the Kool-Aid and play along with the government’s data for now.

Whichever calculation one uses for the unemployment numbers, after 3 years of Obama, more people are out of work since his Administration began.

— Net Advisor™ (Data Source: Using the unemployment numbers above)

Next, we explore President Clinton’s statements on taxes, deregulation and what got us here in the first place:

 “This is a clear choice. The Republican plan is to cut more taxes on upper income people and go back to deregulation. That’s what got us in trouble in the first place.”

— President Clinton said in the Obama 2012 Campaign Ad (video above)

[3] Clinton on Taxes:

FACT: There is no “Republican plan” to “cut more taxes on upper income people.” The argument of Republicans and lower tax advocates is to maintain the 2002 so called “Bush Tax Cuts” (Public Law 107-16). The Bush tax cuts gave EVERYONE – who? EVERYONE, just the rich right? NO, EVERYONE got a tax cut. Please see our article (Debunking The Bush Tax Cuts) which explains all of this.

 FACT: President Obama supported and signed into law an extension of the “Bush Tax Cuts” through the end of 2012.

— Source: CBS News

Coincidentally, after the “Bush Tax Cut” law was passed, the economy came out of recession and had a net increase in jobs growth (Source: Heritage.org Graphic also below).

FACT: The “Bush Tax Cuts” shifted the tax burden toward the wealthy.

— Source: NetAdvisor.org Article with 3rd party graphic mid-page.

FACT: The top 50% of Americans pay 97% of all taxes, and the bottom 50% owe or pay zero to 2.25% of all federal income taxes.

— Source: National Taxpayers Union (PDF / HTML) (full article).

Thus, Mr. Clinton’s statement that the “Republican plan is to cut more taxes on upper income people” is not accurate. The plan is to keep taxes reasonably low for all people, not exempt a particular group who pay the majority of income taxes anyway.

[4] Clinton On Deregulation:

FACT: The Obama Administration admits it has added about 8,000 new regulations a year.

— Source: Regulations.gov PDF (article)

If more control and regulations are supposed to help us how come the unemployment rate has been climbing over the last three years, and why is the economy slowing over the last three years? (Source: Please see chart). Clearly, something is not working.

Government can’t sign a piece of paper (write a law) that will prevent a crisis from happening.

It would be a misrepresentation to argue that the “Republican plan” is to just deregulate everything, (insinuating) living in a lawless society. Some basic regulations are necessary, but 8,000 new regulations a year? Are we really better off with all of them? Does anyone know exactly what they all are, and what exactly are they supposed to do for us?

All these new regulations have not created one single net new job or stimulated ongoing growth in the economy. Real job growth is when new jobs are added that exceed job losses. One can argue ‘they created’ let’s say 4 million new jobs, when 5 million other people lost their job. That’s not job growth. Clearly, something is not working.

 Continuing: President Clinton said, (regarding deregulation) “… That’s what got us in trouble in the first place.’

FACT: What President Clinton omitted is that it was Mr. Clinton’s Administration who approved the end of Depression era laws of Glass Steagall in 1999 that recreated the same environment that helped cause the Great Depression.

One of the contributing causes (not THE cause, but part of the cause puzzle) during the Great Depression was that banks were allowed to act like investment banks. Banks could underwrite securities (such as home mortgages) and sell them to the public via the stock market. The Glass–Steagall Act (also known as the Banking Act of 1933) basically said a bank can either be a bank or an investment bank but not both.

During the Great Depression some 5,000 banks failed, and the apparent thinking by the late 1990’s in the Clinton Administration was that we could never have massive bank failures again. Oops.

I recall in the late 1990’s when working at a top Wall Street firm, I told clients and co-workers that I thought ending Glass-Steagall was a bad idea. I said back then, (paraphrase) ‘there is a reason why this post Depression law existed. Because the lack of this regulation is what helped contribute the to the Great Depression and massive bank failures.’

FACT: It only took 7 (seven) years for the entire banking industry and the economy to begin to fall apart (2006), then come to near collapse (by 2008) after ending 66 years of Glass-Steagall.

FACT: The end of Glass-Steagall was supported by a majority in both political parties and signed by then President Clinton.

[5] Political Scare Tactics

President Clinton tries to paint a cautionary tale about Mitt Romney about some unknown future deregulation. Clinton does not give any specifies because that would be easier to debate. Clinton just makes unsubstantiated blanket statement(s) and acts as if they were true. This seems to be the theme to the Obama Campaign.

Keep in mind that history shows the facts. It was the Clinton Administration who approved the biggest deregulation of the banking laws since the Great Depression. President Bush did not take office until two years AFTER Clinton deregulated the financial industry, so one can’t blame Bush for this one. Sorry.

[6] Who Deregulated What Mr. President?

How President Clinton Helped Export American Jobs.

President Clinton didn’t just deregulate the banking laws; he also helped export American – even union – jobs and factories out of the U.S. and into Canada and Mexico.

In 1993, President Clinton signed into law NAFTA that basically allowed U.S. companies to export American jobs to Canada and Mexico, using cheaper labor then ship back the finished products such as automobiles and other items back to the USA tariff free (PDF).

President Clinton can argue that the idea was from a prior Administration, but Clinton could have vetoed NAFTA during HIS administration. That wasn’t the case; it was Clinton’s personal lobbying, Vice President Al Gore’s tie-breaking vote and Clinton’s signature approving the law that made NAFTA happen.

 

“The United States had a $1.6 billion trade surplus with Mexico that supported nearly 30,000 U.S.  jobs.” As of May 3, 2011 “682,900 U.S. jobs have been lost or displaced since the North American Free Trade Agreement (NAFTA) took effect in 1994, a new Economic Policy Institute (EPI) study finds.”

— Source: Economic Policy Institute (PDF), 05-03-2011

[7] How Clinton Influenced Politicians to Pass NAFTA

In order to get NAFTA passed, President Clinton influenced undecided politicians with a quid pro quo – handing out special favors and using taxpayer money in exchange for their votes for NAFTA.

“The (Clinton) Administration offered a wide range of giveaways which included “traditional” horse-trading for votes with promises of federal funding for bridges, freeways, and pet projects in Members districts.”

— Source: Public Citizen.org (PDF)

FACT: NAFTA barely passed with Vice President Al Gore casting the deciding vote.

Apparently, according to American Federation of State, County & Municipal Employees Union (AFSCME) president Gerry McEntee stated in 2008 that Hillary Clinton was “against” NAFTA from the start (Source: CBS News (story link gone)). Read more on NAFTA and job losses here (about 3/4 down the page).

[8] “What Really Got Us Here in the First Place”

What really “got us here in the first place” (in brief) Mr. President was government creating an environment since President’s Carter’s (D-GA) Community Resource Act of 1977. CRA expanded under President Clinton (link to 52 page pdf) and was allowed to continue under President Bush. Former HUD director, Henry Cisneros under President Clinton was also part of this problem. There was also massive fraud within Fannie Mae.

CRA created an environment in government with pressure from housing advocacy groups to force banks to lower credit standards for people who could not afford traditional credit home financing.

Government would insure (guarantee) home loans through FHA, HUD or other taxpayer funded programs. Now free from Glass-Steagall regulations, banks and other lenders would also take portfolios of mortgages, underwrite and sell them as securities to the public financial markets just like they did during the Great Depression (article explains the “Housing Crisis”).

[Additional article: How the Democrats Created the Financial Crisis (PDF) (highlight added) – See key players who got campaign money from Fannie and Freddie: Barack Obama, Hillary Clinton and then Senate Banking Committee Chairman, Chris Dodd (Bloomberg, 09-22-2008).]

Despite the late 2000’s Housing Crash the federal government still guarantees loans to those who can’t qualify for traditional home loan (PDF). Now you know how we got here in the first place.

[9] Stronger Middle Class? Clinton Left Out Obama’s Middle-Class Tax Hikes

President Clinton continues (in the Obama campaign ad (video above):

“President Obama has a plan to rebuild America from the ground up, investing in innovation, education, and job training. It only works if there is a strong middle class.”

We can always debate the future, but what we need to look at is the record.

FACT: The Obama Administration had 3 years to try to improve the economy. The Administration controlled the House, the Senate and the White House for two years and had free reign to implement whatever polices they wanted.

— Source: uspolitics.about.com (Who Controlled Congress)

FACT: The results of President Obama’s policies have been more jobs loses, slowing economic growth, and a deficit that has exceeds 8 years of Bush’s deficit, but in just half-the time.

— Source: NetAdvisor Report

FACT: Not even a single Democrat has supported Obama’s federal budget plans for fiscal year 2012 or 2013.

— Source: NetAdvisor Report, Point #15

President Clinton says we need a strong middle-class and we do. The Obama Administration gave the middle-class a little something special in the Obama Health Care law.

FACT: “Buried in Nancy Pelosi’s health-care bill is a provision that will partially repeal tax indexing for inflation, meaning that as their earnings rise over a lifetime these youngsters can look forward to paying higher rates even if their income gains aren’t real…”

“…This is a sneaky way for politicians to pry more money out of workers every year without having to legislate tax increases.”

— Source: Wall Street Journal (PDF), 11-6-2009 (read more)

So the middle-class and everyone else can look forward to higher taxes in the future thanks to Nanci Pelosi and Obama Care, unless all of this is repealed.

[10] Clinton Censored. Told What to Think and Say by the Obama Team

FACT: President Clinton came out and said that he supports an extension of the “Bush Tax Cuts.” In the same article, House Minority Leader Nancy Pelosi (D-CA) called the notion “fairly stupid.”

— Source: Los Angeles Times, 06-05-2012

After the Obama Campaign got word that millionaire Mr. Clinton supports the 2002 Bush Tax Cuts. Clinton then withdrew his support and apologized for speaking his mind (Source: Politico PDF). Bill Clinton’s own aids said he “screwed up.” The White House and the Obama Campaign team quickly told the former U.S. President how to think and what to say.

“…his own team, and eventually Clinton himself, agreed there was no choice but to issue embarrassing what-the-former-president-meant-to-say clarifications, which were crafted in close consultation with senior Obama aides at the White House and campaign headquarters in Chicago, according to people involved in the negotiations.”

— Source: Politico PDF

Sorry Mr. President, but you know the Obama Administration obviously isn’t interested in free speech, you are only allowed to think, act, or say what the Obama Team says you can. It’s not too late to save the 1st Amendment Mr. President.

[11] Why is Former President Clinton Doing these Commercials for Obama?

Giving him credit, Mr. Clinton a very smart and charismatic guy. He earned the named “Teflon Bill” (PDF) after all the scandals that plagued his Administration and by his staffers. Marc Perkel at the Chicago Tribune said the scandals were “fake”. Perkel’s article is about as true as ice cream on the sun.

Let’s set aside that can of scandal worms, and just recall President Clinton was also formally impeached (PDF Link to 450 pages) on December 19, 1998 for perjury and obstruction (Source: Washington Post).

Motive. When Hillary Clinton ran for president against Barack Obama she apparently still owed $245,000 (Source: Business Week PDF, highlight added).

According to the New York Post, Mr. Clinton isn’t helping president Obama for free.

“Clinton’s sudden appearances at Obama campaign events, including three in New York, where he dutifully bashed Mitt Romney, are paid performances.

Instead of cash, payment comes in the form of Obama donors being squeezed to help Hillary Rodham Clinton pay down her 2008 campaign debt.

“Bill Clinton never walks away empty-handed,” said an Obama donor who confirmed the arrangement. “There’s always something in it for him.”

— Source: New York Post (PDF)

The Re-Elect Obama Campaign confirms the soliciting of President Clinton’s help (another quid pro quo) in exchange for helping to pay off Hillary Clinton’s 2008 campaign debts.

“Obama campaign officials have asked the president’s elite donors and fund-raisers to donate to Mrs. Clinton’s defunct presidential campaign committee, with the goal of retiring $245,000 in debt left over (story link gone) from her 2008 White House bid.”

“We are helping to retire the remainder of the debt from the Clinton campaign in 2008…”

— Said Matthew Barzun, Obama Campaign’s National Finance Chairman
— Source: New York Post (PDF highlight added)

According to ABC News, Hillary for President 2008 Campaign has reduced this debt from $25 Million to about $100,000 as of June 2012.

[12] Summary

Obama’s Track Record. President Clinton said there is a clear choice in the 2012 election of who will get us to full employment. The Obama Administration has a track record of more jobs being lost than created; economic growth in decline for 3 straight years, and achieving record deficits.

Deregulation. President Clinton discussed that if we elect the other guy (Romney), that we would have massive deregulation that ‘got us into trouble in the first place.’ The fact is, the Clinton Administration signed for the deregulation of 66 years of Depression era laws (Glass-Steagall, 1933) that helped contribute the recent Housing Crisis.

What Middle-Class “Support?” Mr. Clinton says we need a stronger middle-class. Clinton supported the middle-class by exporting American jobs under NAFTA. Obama supports the middle-class by sneaking in new taxes into ObamaCare.

Tax Cuts & Class Warfare. President Clinton said the ‘Republican plan’ is to ‘cut taxes for upper income people.’ As stated in point [3] above, we now know that is not accurate. Obama supported an extension of the Bush Tax Cuts until millionaire Harvard educated lawyer & activist Obama decided to launch a campaign strategy of class warfare against millionaire Harvard educated lawyer & businessman Romney.

How to Think & Talk in Public. President Clinton supported the “Bush Tax Cuts” up until the point the Obama re-election campaign told Mr. Clinton how to think, and what to say.

Clinton then reversed his position on the Bush Tax Cuts. The Obama Campaign is now paying down Hillary Clinton’s 2008 presidential campaign debt.

“How We Got Here in the First Place.” The foundation began with the CRA in 1977. CRA was heavily expanded under Clinton in 1992. We had FHA, and HUD‘s risky loans and low credit standards. We had lots of government-related scandals; and even more scandals.

We had massive fraud committed by government agencies. We had massive banking deregulation by the Clinton Administration. We had (or still have) conflicts of interest with financial ties to Barack Obama. The government had their fingerprints all over this one, and ALLthese major policy events happened BEFORE the Bush Administration. Yet, Clinton tries to blame Bush for policies that Clinton’s himself signed off on.

Choice.  The question is, are we going to live in a world of higher unemployment, more taxes, more deficits, and uncontrolled government spending and blame other people for their own policies? Or are we going to get real change this time around?

If a new Administration and a supporting House and Senate doesn’t work, voters can change it up and keep cleaning up Washington until we have got people in place who actually represent the People’s interest, and not their own.