As required by the Constitution, a sitting president is required to inform Congress of the state of our union once per year during his term(s). Today, we'll be fact checking Obama's speech from beginning to end.
One that didn't make the cut in this article was an obscure mention, a claim that our deficits have been "cut in half." Here is the statement in context:
OBAMA: Here are the results of your efforts: The lowest unemployment rate in over five years. A rebounding housing market. A manufacturing sector that’s adding jobs for the first time since the 1990s. More oil produced at home than we buy from the rest of the world – the first time that’s happened in nearly twenty years. Our deficits – cut by more than half. And for the first time in over a decade, business leaders around the world have declared that China is no longer the world’s number one place to invest; America is."
THE FACTS: First, the unemployment rate has not gone down for lack of unemployment, but for retiring baby boomers and disoriented job seekers simply leaving the labor force. As recently as December of last year, 917,000 Americans left the workforce.
Second, America does indeed possess more oil reserves than the Middle East and the world combined, but what he fails to mention is that it sits under federally owned land. Attempts to take advantage of that supply via the Keystone XL pipeline have been rebuffed by the his Administration. It is true we produce more oil than we buy, but gas prices have not translated, which cost an average of $3.26 a gallon.
Thirdly and most importantly, Obama claims our deficits have been cut in half. In fact, that is a rather bold lie. In his 5 years so far, he ran 4 consecutive $1 trillion budget deficits, with last year dipping into the $900 billion range. Obama made a $3.8 trillion budget proposal to congress last April, suggesting that any "cuts" would be minimal. It may look good on paper, but the bill would almost cancel out any reductions put in place as it proposes. Don't let the $734 billion budget deficit fool you this year, since roughly $2 dollars more will spent per every $1 dollar cut from the deficit.
Lastly Obama has done little to remedy the flow of jobs leaving America for countries overseas. Five years ago, he promised revamp the tax code to make hiring less hostile to American corporations. So far none of that has happened. It is debatable when he says that "business leaders around the world have declared that China is no longer the world’s number one place to invest." In two years spanning 2008 through 2010, trade with China cost America roughly 450,000 jobs.
According to a study by the U.S. Bureau of Economic Analysis, large American companies in 2010 barely added any workers in the United States, increasing their numbers by 0.1 percent, while they expanded their foreign workforce by 1.5 percent. That was business as usual — between 2004 and 2010, the bureau reported, foreign affiliates hired 2 million workers while 600,000 were added by the companies at home.
WASHINGTON (AP) — President Barack Obama promised to clear red tape away from highway projects that actually are stalled because there's no money for them, not because rules are in the way. He's ordering a higher minimum wage for a sliver of the workforce, which affects no one now and not many later.
Going it alone — without Congress making a law — just doesn't go as far as Obama made it sound at times Tuesday night in his State of the Union speech.
And when he talked about his health care law — a source of Obama misstatements in the past — he hit another fact bump.
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OBAMA: "More than 9 million Americans have signed up for private health insurance or Medicaid coverage."
THE FACTS: That's not to say 9 million more Americans have gained insurance under the law.
The administration says about 6 million people have been determined to be eligible for Medicaid since Oct. 1 and an additional 3 million roughly have signed up for private health insurance through the new markets created by the health care law. That's where Obama's number of 9 million comes from. But it's unclear how many in the Medicaid group were already eligible for the program or renewing existing coverage.
Likewise, it's not known how many of those who signed up for private coverage were previously insured. A large survey released last week suggests the numbers of uninsured gaining coverage may be smaller. The Gallup-Healthways Well-Being Index found that the uninsured rate for U.S. adults dropped by 1.2 percentage points in January, to 16.1 percent. That would translate to roughly 2 million to 3 million newly insured people since the law's coverage expansion started Jan. 1.
FACT CHECK: Obama and Medicare premiums