Obama's Major Economic Address Filled With Falsehoods

[Geee]

Investors Business Daily:

I had high hopes for President Obama's speech on the economy. But instead of going to Ohio on Thursday with a compelling plan for the future, the president gave Americans a falsehood wrapped in a fallacy.

The falsehood is that he has been serious about cutting government spending. The fallacy is that this election will be some sort of referendum that will break the logjam in Washington.

Fallacy first. "Both parties have laid out their policies on the table for all to see," Obama said. "What's holding us back is a stalemate in Washington between two fundamentally different views of which direction America should take. And this election is your chance to break that stalemate."

He's right about the stalemate. But he's absolutely wrong that November offers an opportunity to break it.

No scenario shows either party with a chance of amassing a solid governing majority of the sort Obama had when he took office. The way to break the stalemate is through compromise, not conquest.

And that leads to the falsehood. Despite his claim that "both parties have laid out their policies on the table," Obama has made no serious proposal to fix the runaway entitlement programs that threaten to swamp the government's finances.

"My own deficit plan would strengthen Medicare and Medicaid for the long haul by slowing the growth of health care costs — not shifting them to seniors and vulnerable families," Obama said. "And my plan would reduce our yearly domestic spending to its lowest level as a share of the economy in nearly 60 years."

That's incorrect. As Politifact has pointed out, Obama's claim that he would reduce annual domestic spending to a percentage of gross domestic product not seen in 60 years is true only if you don't count the enormous spending on programs such as Medicare.

Of more concern is Obama's nonsensical claim that he has a deficit plan that would strengthen Medicare for the long haul.

He has called for doubling Medicare spending over the next 10 years, to nearly $1 trillion in 2022. His cuts in the rate of growth amount to just a few percentage points.

Limping To Re-election

As the Washington Post's Lori Montgomery has reported, the president's 2013 budget marked "the second year in a row Obama has ignored calls to restructure Social Security and Medicare entitlement programs."

Nothing in Obama's speech came close to a proposal to fix the debt problem; he dealt with that only at the end of the speech — largely by complaining about Republicans' refusal to consider higher taxes on the wealthy.