Research Briefing

Obama Really Wants To Put You Behind The Wheel Of His Supposed Success Story, But First, Let’s Kick The Tires On This Clunker

Watch The White House’s Shifting Story On The Bailouts Here 

“[P]resident Obama Friday Will Tour Chrysler's Toledo Assembly Complex To Tout The Success That The 2009 Bailouts Have Spawned.” (Tom Troy, “President To Visit Jeep In North Toledo,” The Toledo Blade, 6/2/11)

THE GLOSSY RHETORIC FROM OBAMA AND HIS ALLIES
DOESN’T FIT WITH THE FACTS

PROMISE: In 2010, President Obama Said “American Taxpayers Are Now Positioned To Recover More Than My Administration Invested In GM.” “General Motors relaunched itself as a public company, cutting the government’s stake in the company by nearly half.  What’s more, American taxpayers are now positioned to recover more than my administration invested in GM.” (President Barack Obama, Remarks On The United States Auto Industry, WhiteHouse.gov, 11/18/10)

RESULT: The Value Of GM’s Stock Would Have To “Greatly Exceed Levels It Had Traded At Before The Company’s Bankruptcy … For Taxpayers To Make A Profit.” “‘Even if GM goes public again, the value of its stock would have to greatly exceed levels it had traded at before the company's bankruptcy in order for the stock to be worth enough for taxpayers to make a profit.” (Chris Isidore, “GM CEO Promises Profit For Taxpayers,” CNN Money, 1/11/10)

• “Separately, The U.S. Government Has Recovered $23.1 Billion Of Its Bailout Of GM. If It Sold Its Remaining 500 Million Shares, It Would Lose About $10.7 Billion At Current Trading Prices.” (David Shepardson, “Feds: Auto Bailout Losses Will Be Less Than $16B,” The Detroit News, 6/1/11)

PROMISE: President Obama Said, "We Are Going To Get Back All The Money That We Invested In Those Car Companies." (ABC’s, “The View,” 7/28/10)

RESULT: White House Manufacturing Policy Advisor Ron Bloom Admits The CBO Expects A $14 Billion Loss On The Bailouts. “The latest number from the CBO I think was a $14 billion loss, and that reflects market prices at the time they did it.  The final number will be the final number.” (Press Briefing By Press Secretary Jay Carney And Assistant To The President For Manufacturing Policy Ron Bloom, WhiteHouse.gov, 6/1/11)

• “In The End, Uncle Sam Will Probably Lose Several Billion Dollars On Its Stake In GM And Will Have Bits Of Chrysler And Ally Financial, GM’s Former Financing Arm, Left To Unload.” (Ben White, “Obama Sees Auto Rescue As '12 Plank,” Politico, 5/23/11)

PROMISE: Treasury Secretary Tim Geithner “The Choice To Stop The American Automobile Industry From Unraveling Was The Right One.” “What happens next for Chrysler and GM is up to their executives, managers and workers — just as with any other company. We cannot guarantee their success, and at some point they may stumble. But we’ve given them a better shot. The choice to stop the American automobile industry from unraveling was the right one.” (Timothy Geithner, Op-Ed, “A Rescue Worth Fueling,” The Washington Post, 5/31/11)

RESULT: The Congressional Oversight Panel Wrote That Treasury’s “Differing And Conflicting Goals” Call Into Question Whether The “Interventions In The Auto Industry Should Be Called Successful.”  “These differing and potentially conflicting goals make it difficult to determine whether the TARP’s interventions in the auto industry should be judged to be successful. Instead, the articulation of multiple goals, without specification of their priority, allows Treasury to claim success if the program achieves any one of these goals.” (“The Final Report Of The Congressional Oversight Panel,” Congressional Oversight Panel, 3/16/11)

WHILE OBAMA TAKES A CAMPAIGN VICTORY LAP, OHIOANS ARE STILL STRUGGLING WITH THE LEMON OBAMA SOLD THEM

Obama’s Failed Economic Policies Have Not Delivered For Ohio

Since President Obama Took Office, Ohio Has Lost 108,800 Jobs And The Unemployment Rate Has Remained At 8.6 Percent. (Bureau Of Labor Statistics, BLS.gov, Accessed 6/2/11)

• And Since Obama Took Office The State Has Lost 27,500 Construction Jobs And 46,900 Manufacturing Jobs. (Bureau Of Labor Statistics, BLS.gov, Accessed 6/2/11)

In April, There Were 7,962 Foreclosure Filings In Ohio, One For Every 640 Homes. (“Stats & Trends: Ohio,” RealtyTrac, Accessed 6/2/11)

Since Taking Office, The Average Price Of Gasoline In Ohio’s Region Has Increased From $1.87 A Gallon To $3.78 A Gallon. (Energy Information Administration, “Retail Gasoline Historical Prices; Midwest,” EIA.gov, Accessed 5/28/11)

President Obama’s Binge Spending Will Add Another $38,871 To Every Ohioan’s Debt Burden

Politifact: Barack Obama Is “The Undisputed Debt King Of The Last Five Presidents.” “So by this measurement -- potentially a more important one -- Obama is the undisputed debt king of the last five presidents, rather than the guy who added a piddling amount to the debt, as Pelosi’s chart suggested.” (“Nancy Pelosi Post Questionable Chart On Debt Accumulation By Barack Obama, Predecessors,” Politifact, 5/19/11)

Since Taking Office President Obama Has Added $3.7 Trillion To The National Debt. (“Debt To The Penny,” TreasuryDirect.gov, Accessed 6/2/11)

Ohio’s Share Of The National Debt Has Increased $138.9 Billion Under Obama, Adding $12,035 To Every Ohioan’s Debt Burden. (U.S. Census Bureau, “2010 Census Results,” 2010.Census.gov, Accessed 6/2/11; “Debt To The Penny,” TreasuryDirect.gov, Accessed 6/2/11)

• President Obama’s FY2012 Budget Would Add Another $448.5 Billion To Ohio’s Debt Burden By 2021, An Additional $38,871 For Every Ohioan. (Office Of Management & Budget, “Fiscal Year 2012 Budget Of The U.S. Government,” Budget.gov, 2/14/11; U.S. Census Bureau, “2010 Census Results,” 2010.Census.gov, Accessed 6/2/11)
• 2.9 Million Ohians Are Over 55; President Obama’s Lack Of A Plan On The Debt Means They Will See Their Medicare Benefits Cut By 10% In 2024, And 25% By 2045. (U.S. Census Bureau, “ACS Demographic And Housing Estimates: 2005-2009,” Factfinder.Census.gov, Accessed 6/2/11; “The 2011 Annual Report,” The Trustees Of Social Security & Medicare, 5/10/11)