We published several tidbits here on The Wire during last night’s presidential debate. Our full article contains a few more misleading statements and falsehoods that we needed a little more time to research. Check it out on our main site:
FactChecking Debate No. 2
October 8, 2008
Nonsense in Nashville
Oversimplifying the Fiscal Crisis
It’s finger-pointing time again, with each candidates blaming the other for the financial crisis. McCain called Fannie Mae and Freddie Mac the “catalyst” for the crisis and blamed Obama for failing to sign on to a bill to rein in the FMs. Obama countered that it’s a culture of deregulation and lack of oversight that caused the problem.
We’ve been here before. Both candidates have a point: Democrats really have fought regulation of the FMs and McCain has in fact been in favor of deregulation.
Big Spender?
McCain once again attacked Obama for proposing new spending, putting the figure at more than $860 billion. But at the same time, McCain himself began the debate by proposing a new spending program, to buy up troubled mortgages directly from homeowners and replace them with 30-year loans guaranteed by the government. McCain’s campaign e-mailed reporters with the following cost estimate:
McCain press release: The direct cost of this plan would be roughly $300 billion because the purchase of mortgages would relieve homeowners of “negative equity”
More on that $860 billion
McCain said that Obama has proposed $860 billion in new spending. That’s based on a McCain campaign estimate of how much Obama’s new proposals will cost, without figuring in any savings or reductions in spending. Any increase in funding and any created program counts as “new spending” in this estimate, whether or not it is offset by decreases in spending elsewhere. A more traditional, and arguably more useful, measure of spending is how much a given candidate’s proposals will increase the federal deficit.
Health Care Fines for Small Businesses?
McCain said that Obama’s health care plan would mandate that “small businesses” provide coverage for their employees and would fine them if they failed to do so. Actually, Obama’s health care plan, posted on his Web site, says: “Small businesses will be exempt from this requirement.” McCain previously used this charge in his acceptance speech at the Republican National Convention.
Obama 68 Million Acre Boast
Obama was off the mark when he said that oil companies have “68 million acres that they’re not using.”
As we’ve pointed out previously, those 68 million acres of land are not producing oil, but they are not necessarily untouched. In fact, in 2006, the last year for which figures are available, there were a total of more than 15,000 holes that were being proposed, started or finished. These acres of land that these holes sit on are not counted as being “producing,”
Dubious Health Savings Claim
Obama said that his health care plan would cut costs, saving $2,500 a year per family. When we asked health care experts about this claim earlier this year, they were quite skeptical. M.I.T.’s Jonathan Gruber told us, “I know zero credible evidence to support that conclusion.” Obama has also said on the campaign trail that more than half of the savings would come from the use of electronic health records, a major part of his plan to cut health costs.
Counting Errors
McCain said that Obama had voted 94 times for higher taxes or against tax cuts. He’s getting warmer — the first time we dinged him for this one, he said Obama voted 94 times to increase taxes, which is way off. This is still misleading, though. The real breakdown includes: 23 votes against tax cuts (which would have produced no increase in taxes); seven votes that would have lowered taxes for most people, but increased taxes on a few;
McCain’s $6.8 Billion Boast
McCain repeated a questionable boast when he said, “I saved the taxpayers $6.8 billion” by reining in a defense contract.
As we mentioned in our analysis of the first debate, there is more to the story. McCain certainly did lead a fight to kill the contract, and the effort ended in prison sentences for defense contractors. The contract is still up in the air, however, and questions have been raised about the role McCain played in helping a Boeing rival secure the new contract.
Earmark Numbers
Obama’s right about earmark amounts. According to the budget watchdog group, Taxpayers for Common Sense, earmarks totaled just $18.3 billion in 2008. Citizens Against Government Waste came in with a slightly smaller number of $17.2 billion, and the Office of Management and Budget smaller still at $16.9 billion.