While President Obama has been busy working to win the future by out-educating, out-building and out-innovating the rest of the world, U.S. Senator John Thune’s speech today at the Conservative Political Action Conference was an effort at re-litigating the past with debunked RNC talking points and re-writing (Romney style?) his own record as a supporter of TARP and for the Auto Company bailout and as a serial earmarker.
FACT CHECK OF THUNE’S CPAC SPEECH
RETORIC: “If the State of the Union is any indication, 2011 is shaping up to be more of the same. It’s disappointing, but it’s not surprising. After all, these are the folks who took over auto companies, insurance companies, and banks.”
REALITY: THUNE VOTED FOR AND PROMOTED TARP
2008: Thune Voted For TARP. Thune voted Yea on a bill that would allow the Treasury to use up to $700 billion, in installments, to buy certain mortgage assets. The bill would require the Treasury to create a program to insure mortgage assets, would provide for congressional oversight and would limit compensation for executives whose troubled assets are purchased. It would call on Treasury to implement a plan to reduce foreclosures and encourage servicers of mortgages to modify mortgage terms. The bill would allow the department to immediately use $250 billion in authority to buy assets, with an additional $100 billion if the president certifies such an expansion. The president would have to provide a written request for the remaining $350 billion, which would be subject to congressional disapproval and subsequent veto override. It would temporarily expand federal deposit insurance to $250,000 per bank account. It also would extend dozens of expired or expiring tax provisions, including several energy tax provisions. It would provide a one-year adjustment to exempt roughly 22 million taxpayers from paying the alternative minimum tax on 2008 income and require private insurance plans to put mental health benefits on par with other medical benefits. [HR 1424, Vote 213, 10/1/08; Passed 74-25, D 39-9, R 34-15, I 1-1].
Thune Said TARP Was For The People On Main Street Not The “Fat Cats On Wall Street” Adding That TARP Needed To Pass To “Bring Some Stability To Our Financial System.” In an interview with John Thune, David Gregory asked about the financial collapse. Thune said, “This was very poorly communicated, I think, as you know, David, in the initial stages. It was perceived by a lot of people as a bailout for fat cats on Wall Street. I think what people are coming to grips with is this is affecting Main Street. We`ve reached out to a lot of constituencies in South Dakota, farm organizations, bankers, of course, Chamber of Commerce, South Dakota Investment Council, car dealers. And everybody is convinced that if we don`t take steps to shore up our financial markets right now that we`re going to see this credit freeze continue to impact more and more. There is a ripple effect. I think what you`re hearing in states like mine across this country, and you have farm who obviously need to have access to credit. You have people, as you said, who want to buy homes or get auto loans, who need to have access to credit, student loans. There are a lot of implications to this that I think are going to be very widespread. And like I said, this is not someplace I want to be. I think a lot of people have that same view. But most of us believe we don`t have really any choice at this point but to move forward with a plan that we think will bring some stability to our financial system.” [Race For The White House, MSNBC, 10/1/08]
Thune Said “There Was A Tremendous, Broad Support In South Dakota” For TARP “We Took The Steps Necessary To Prevent The Economy From A Complete Meltdown.” In an interview with John Thune, David Weigel asked, “You're not facing opposition in South Dakota. How have you finessed this issue -- how do Republicans explain why they voted for TARP?” Thune, “There was a tremendous, broad support in South Dakota among the small business community, the financial community, the South Dakota pension funds, the governor -- there was a tremendous amount of support at the time for taking the steps that we took. I think a lot of people would dispute or take issue with how it was used. But people felt like, even though many disagreed with it, we took the steps necessary to prevent the economy from a complete meltdown.” [Washington Post, 5/11/10]
REALITY: THUNE VOTED FOR GOVERNMENT AID TO AUTO COMPANIES
Thune Voted To Provide Automakers $25 Billion In Taxpayer-Subsidized Loans. Thune voted for HR 2638. According to Huffington Post’s write-up of the bill, “Automakers gained $25 billion in taxpayer-subsidized loans and oil companies won elimination of a long-standing ban on drilling off the Atlantic and Pacific coasts as the Senate passed a sprawling spending bill Saturday. The 78-12 vote sent the $634 billion measure to President Bush, who was expected to sign it even though it spends more money and contains more pet projects than he would have liked.” [Huffington Post, 9/29/08; HR 2638, Vote #208, Passed 78-12, 9/27/08]
Thune Advocated For A Quick Infusion For $25 Billion To Help American Car Companies. “General Motors Corp. has said it needs a commitment from the government before the end of the year to avoid bankruptcy. Analysts say GM could run out of cash by January, and Ford Motor Co. and Chrysler LLC also need immediate government help…And while Republican Sen. John Thune supported the rescue package, he is siding with President George W. Bush and Senate Republican leaders, who say they would rather Congress speed up allocation of $25 billion in loan money Congress approved in September to help American car companies retool their plants to make more fuel efficient vehicles. Those loans, however, were designed to be made over a 12-year period and can only be used for a narrow range of costs and would not help car companies weather their current economic crisis, which was sparked by the meltdown in the credit markets and a steep decline in sales.” [Argus Leader, 11/17/08]
Thune Encouraged Congress To Swiftly Allocate $25 Billion In Loan Money For Americans Car Companies To Retool Their Plants And Avoid Bankruptcy. “The nation's corn ethanol producers could lose an increasingly important part of their market if the three Detroit automakers don't survive their financial troubles… GM has said it needs a commitment from the government before the end of the year to avoid bankruptcy. Analysts say GM could run out of cash by January, and Ford and Chrysler also need immediate government help. South Dakota lawmakers are skeptical of the proposal. Republican Sen. John Thune said he would support speeding up allocation of $25 billion in loan money that Congress approved in September to help American car companies retool their plants to make more fuel efficient vehicles. Thune said it would set a bad precedent to use taxpayer money for yet another loan to the auto industry. ‘When the government starts picking winners and losers and does this on a selected basis, who's next?’ Thune asked. ‘We have companies in our state who are experiencing very difficult financial times right now who have approached us with similar type requests. The question is, where do you draw the line?’” [Gannett News, 11/20/08]
RETORIC: “Let’s make elections about how much money we can save, not how much money we can spend… And if American families are making tough choices to live within their means, then the federal government should show some fiscal discipline and balance its books as well.”
REALITY: THUNE WAS GIVEN THE TITLE PORKER OF THE MONTH TWICE
2006: Thune Earned The Title Of “Porker Of The Month” From Citizens Against Government Waste For Securing $2.3 Billion For DM&E, A Company That Had Paid Thune $220,000 To Lobby On Their Behalf. “Citizens Against Government Waste calls itself ‘the nation’s largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.’ The group also wants lower taxes — especially marginal and capital gains rates — and less government regulation. South Dakota’s own Republican Sen. John Thune was named Porker of the Month for November. The citation reads, in part: ‘Washington, D.C. Citizens Against Government Waste (CAGW) today named Sen. John Thune (R-S.D.) Porker of the Month for helping to secure a record $2.3 billion federal loan for a railroad company. The loan guarantee from the Federal Railroad Administration (FRA) would allow the Dakota, Minnesota, and Eastern Railroad (DM&E) to expand and improve a rail line that is used primarily to transport coal from Wyoming to Minnesota. In apparent anticipation of the loan, Sen. Thune was instrumental in increasing the FRA loan guarantee authority from $3.5 billion to $35 billion in the 2005 Safe, Accountable, Flexible, and Efficient Transportation Equity Act. DM&E paid Thune $220,000 in 2003 and 2004 to lobby for the loan before his election to the Senate.’” [Rapid City Journal, 11/17/06]
2005: Thune Earned The Title Of “Porker Of The Month” From Citizens Against Government Waste For Derailing The Base Realignment And Closure Process Indefinitely To Avoid Closure Of Ellsworth Air Force Base. “The last time Thune earned his honor was in June 2005, when the citiation read: ‘Washington, D.C.) Citizens Against Government Waste (CAGW) today named freshman Senator John Thune (R-S.D.) Porker of the Month for doing everything short of writing to Santa Claus to derail the Base Realignment and Closure (BRAC) process. Sen. Thune introduced legislation to delay BRAC indefinitely, threatened litigation against the Department of Defense (DOD), and may change his position on unrelated votes to punish the Bush administration. South Dakota Ellsworth Air Force Base is on the DOD list of closings under review by the BRAC Commission.’” [Rapid City Journal, 11/17/06]
Thune Asked For 30 Pet Projects For South Dakota In 2011 Spending Bills. “[Thune] has backed similar [earmark] moratoriums in the past but the proposed 2011 spending bills Congress will consider in the coming weeks include almost 30 Thune-requested projects, such as money for highway projects, water systems and safety programs on Indian reservations.” [Argus Leader, 11/16/10]
RETORIC: “When this administration talks about making an “investment,” I think a lot of us know by now what kind of “return” we can expect: more government and more debt, fewer jobs and less freedom. If the State of the Union is any indication, 2011 is shaping up to be more of the same.”
REALITY: PRIVATE SECTOR EMPLOYERS ADDED 1.1 MILLION JOBS IN 2010
Bureau Of Labor Statistics: Private Employers Added 1.1 Million Jobs In 2010, The Strongest Private Sector Job Growth Since 2006. “Today’s employment report shows that the unemployment rate fell sharply to 9.0 percent and private sector payrolls increased by 50,000 in January. Revisions to private sector payroll data show that 1.1 million jobs were added during 2010, the strongest private sector job growth since 2006.” [White House Council of Economic Advisers blog, 2/4/11]
REALITY: THE RECOVERY ACT CREATED UP TO 3.3 MILLION JOBS
Washington Post: “Report Gives Stimulus Package High Marks.” “The massive economic stimulus package President Obama pushed through Congress last year is coming in on time and under budget - and with strikingly few claims of fraud or abuse - according to a White House report to be released Friday. Coming barely a month before November's midterm elections, which will determine whether Democrats retain control of Congress, the report challenges public perceptions of the stimulus aid as slow-moving and wasteful - an image that has fueled voter anger with the dominant party. Even some former skeptics who predicted that the money would lead to rampant abuse now acknowledge that the program could serve as a model for improving efficiency in government. By the end of September, the administration had spent 70 percent of the act's original $787 billion, which met a White House goal of quickly pumping money into the nation's ravaged economy, the report says. The administration also met nearly a dozen deadlines set by Congress for getting money out the door.” [Washington Post, 10/1/10]
Bloomberg: “Obama's Economic Stimulus Program Created Or Saved Up to 3.3 Million Jobs, CBO Says”: President Barack Obama’s stimulus package may have created or saved as many as 3.3 million jobs last quarter and lowered the unemployment rate by as much as 1.8 percentage points, the Congressional Budget Office said. The $814 billion program, known as the American Recovery and Reinvestment Act, or ARRA, probably added between 1.7 percent and 4.5 percent to gross domestic product for the three months through June, the nonpartisan agency said in a report issued yesterday.” [Bloomberg, 8/24/10]
CEA: The Stimulus Package Saved Or Created Up To 3.6 Million Jobs. “As of the second quarter of 2010, the Recovery Act has raised employment by between 2.5 and 3.6 million jobs. This puts us well on track to reach the 3.5 million jobs benchmark by the end of this year.” [Council of Economic Advisors, 7/14/10]
RETORIC: “They jammed through Obamacare – a 2-and-a-half-trillion-dollar entitlement that we don’t want and can’t afford.”
REALITY: Health Reform Will Reduce The Deficit
Claim That Senate Bill Would Cost $2.5 Trillion Was Generated By Senate Budget Committee Republicans. Fox News reported that, “Republicans have countered the CBO estimate with a figure of their own: $2.5 trillion, an estimate that comes out of the Senate Budget Committee minority's analysis of Reid's plan.” [Fox News, 11/19/09]
CBO: Health Care Reform Will Reduce The Deficit By $230B Over The Next Ten Years. “As a result of changes in direct spending and revenues, CBO expects that enacting H.R. 2 would probably increase federal budget deficits over the 2012–2019 period by a total of roughly $145 billion (on the basis of the original estimate), plus or minus the effects of technical and economic changes that CBO and JCT will include in the forthcoming estimate. Adding two more years (through 2021) brings the projected increase in deficits to something in the vicinity of $230 billion, plus or minus the effects of technical and economic changes.” [CBO blog, 1/6/11]