Showing posts with label Rex Nutting. Show all posts
Showing posts with label Rex Nutting. Show all posts

Saturday, September 6, 2014

PolitiFact Wisconsin serves up more baloney on Obama cutting the deficit in half

PolitiFact defines its "True" rating as "The statement is accurate and there’s nothing significant missing."

Thus we greet with derisive laughter PolitiFact's Sept. 5, 2014 bestowal of a "True" rating on President Obama's declaration "We cut our deficits by more than half."

Curious about what "we" cut the deficits? PolitiFact Wisconsin is here to help:

"We" is "he": Obama (image from PolitiFact.com)
"We" is "he." Obama did it. Obama cut the national deficit in half. The statement is accurate and there's nothing significant missing. Right?

Well, no. It's a load of hooey that PolitiFact has consistently helped Obama sell.

Here are some insignificant things PolitiFact Wisconsin found:
  1. "When you use Obama's methodology to compare the deficit Obama inherited -- the 2009 result minus the stimulus package to that in 2013 --  the drop in the deficit is slightly under half, at 48%."
  2.  "'The economic recovery, wind-down of stimulus, reversal of TARP/Fannie transactions, and lower interest rates are really what has caused our deficit to fall so much,' Goldwein told us. He mentioned cuts in discretionary spending as well."
  3.  "(Ellis) and Goldwein emphasized that while the deficit has been halved, it’s been halved from a skyscraping peak."
The second point is significant because TARP and other bailout spending was heavily focused on FY2009. As that money is repaid, it counts as lower spending ("negative spending"). The government has turned a profit on the TARP bailouts, so a fair bit of the "skyscraping peak" came right back to the government, making its later spending appear lower.

Here are some insignificant missing things PolitiFact Wisconsin didn't bother to mention:
  1. PolitiFact claims it takes credit and blame into account. But Obama carries little (if any) personal responsibility for reducing the deficit by half.
  2. Remember those obstructionist Republicans who block the Democrats' every attempt to pass jobs bills and keep critically important entitlement benefits flowing?
  3. PolitiFact's expert, Goldwein, mentioned cuts in discretionary spending. Way to go, Obama! Oh, wait, that was largely a result of the sequestration that the president blames on Republicans.
So, yeah, the deficit was cut in half. But given the nature of the FY2009 deficit spike, cutting the deficit in half by the end of Obama's first term in office should have been a layup. It wasn't a layup because the economy stayed bad. Democrats would have continued spending investing in jobs and education if Republicans hadn't gained control of the House of Representatives in 2010.

Obama tries to take this set of circumstances largely beyond his control to fashion a feather for his own cap.

To PolitiFact Wisconsin, none of that is significant. What a joke.


Afters

For more on Obama's effect on the deficit and debt, see the following Zebra Fact Check articles:

FactCheck.org says federal spending has increased ‘far more slowly’ under Obama than under Bush

Is the federal deficit ‘falling at fastest rate in 60 years’?


Edit 11/08/2014 - Added link to original PFW article in second paragraph - Jeff

Sunday, June 3, 2012

Cover your PolitifArse! PolitiFact goes shameless

PolitiFact has egg on its face worthy of the Great Elephant Bird of Madagascar.

On May 23, PolitiFact published an embarrassingly shallow and flawed fact check of two related claims from a viral Facebook post.  One of the claims held false a claim from Mitt Romney that President Obama has presided over an acceleration of government spending unprecedented in recent history.  The second claim, quoted from Rex Nutting of MarketWatch, held that "Government spending under Obama, including his signature stimulus bill, is rising at a 1.4 percent annualized pace — slower than at any time in nearly 60 years." 

PolitiFact issued a "Mostly True" rating to these claims, claiming their math confirmed select portions of Nutting's math. The Associated Press and Glenn Kessler of the Washington Post, among others, gave Nutting's calculations very unfavorable reviews.

PolitiFact responded with an article titled "Lots of heat and some light," quoting some of the criticisms without comment other than to insist that they did not justify any change in the original "Mostly True" rating.  PolitiFact claimed its rating was defensible since it only incorporated part of Nutting's article.
(O)ur item was not actually a fact-check of Nutting's entire column. Instead, we rated two elements of the Facebook post together -- one statement drawn from Nutting’s column, and the quote from Romney.
I noted at that point that we could look forward to the day when PolitiFact would have to reveal its confusion in future treatments of the claim.

We didn't have to wait too long.

On May 31, last Thursday, PolitiFact gave us an addendum to its original story.  It's an embarrassment.

PolitiFact gives some background for the criticisms it received over its rating.  There's plenty to criticize there, but let's focus on the central issue:  Was PolitiFact's "Mostly True" ruling defensible?  Does this defense succeed?

The biggest reason this CYA fails

PolitiFact keeps excusing its rating by claiming it focuses on the Facebook post by "Groobiecat", rather than Nutting's article, and only fact checks the one line from Nutting included in the Facebook graphic.

Here's the line again:
Government spending under Obama, including his signature stimulus bill, is rising at a 1.4 percent annualized pace — slower than at any time in nearly 60 years.
This claim figured prominently in the AP and Washington Post fact checks mentioned above.  The rating for the other half of the Facebook post (on Romney's claim) relies on this one.

PolitiFact tries to tell us, in essence, that Nutting was right on this point despite other flaws in his argument (such as the erroneous 1.4 percent figure embedded right in the middle), at least sufficiently to show that Romney was wrong.

A fact check of the Facebook graphic should have looked at Obama's spending from the time he took office until Romney spoke.  CBO projections should have nothing to do with it.  The fact check should attempt to pin down the term "recent history" without arbitrarily deciding its meaning. 

The two claims should have received their own fact checks without combining them into a confused and misleading whole.  In any case, PolitiFact flubbed the fact check as well as the follow up.

Spanners in the works

As noted above, PolitiFact simply ignores most of the criticisms Nutting received.  Let's follow along with the excuses.

PolitiFact:
Using and slightly tweaking Nutting’s methodology, we recalculated spending increases under each president back to Dwight Eisenhower and produced tables ranking the presidents from highest spenders to lowest spenders. By contrast, both the Fact Checker and the AP zeroed in on one narrower (and admittedly crucial) data point -- how to divide the responsibility between George W. Bush and Obama for the spending that occurred in fiscal year 2009, when spending rose fastest.
Stay on the lookout for specifics about the "tweaking."

Graphic image from Groobiecat.blogspot.com

I'm still wondering why PolitiFact ignored the poor foundation for the 1.4 percent average annual increase figure the graphic quotes from Nutting.  But no matter.  Even if we let PolitiFact ignore it in favor of  "slower than at any time in nearly 60 years" the explanation for their rating is doomed.

PolitiFact:
(C)ombining the fiscal 2009 costs for programs that are either clearly or arguably Obama’s -- the stimulus, the CHIP expansion, the incremental increase in appropriations over Bush’s level and TARP -- produces a shift from Bush to Obama of between $307 billion and $456 billion, based on the most reasonable estimates we’ve seen critics offer.
The fiscal year 2009 spending figure from the Office of Management and Budget was $3,517,677,000,000.  That means that $307 billion (there's a tweak!) is 8.7 percent of the 2009 total spending.  And it means before Obama even starts getting blamed for any spending he increased spending in FY 2009 over the 2008 baseline more than President Bush did.  I still don't find it clear where PolitiFact puts that spending on Obama's account.
(B)y our calculations, it would only raise Obama’s average annual spending increase from 1.4 percent to somewhere between 3.4 percent and 4.9 percent. That would place Obama either second from the bottom or third from the bottom out of the 10 presidents we rated, rather than last.
PolitiFact appears to say its calculations suggest that accepting the critics' points makes little difference.  We'll see that isn't the case while also discovering a key criticism of the "annual spending increase" metric.

Reviewing PolitiFact's calculations from earlier in its original story, we see that PolitiFact averages Obama's spending using fiscal years 2010 through 2013.  However, in this update PolitiFact apparently does not consider another key criticism of Nutting's method:  He cherry picked future projections.  Subtract $307 billion from the FY 2009 spending and the increase in FY 2010 ends up at 7.98 percent.  And where then do we credit the $307 billion?

An honest accounting requires finding a proper representation of Obama's share of FY 2009 spending.  Nutting provides no such accounting:
If we attribute that $140 billion in stimulus to Obama and not to Bush, we find that spending under Obama grew by about $200 billion over four years, amounting to a 1.4% annualized increase.
Neither does PolitiFact:
(C)ombining the fiscal 2009 costs for programs that are either clearly or arguably Obama’s -- the stimulus, the CHIP expansion, the incremental increase in appropriations over Bush’s level and TARP -- produces a shift from Bush to Obama of between $307 billion and $456 billion, based on the most reasonable estimates we’ve seen critics offer.

That’s quite a bit larger than Nutting’s $140 billion, but by our calculations, it would only raise Obama’s average annual spending increase from 1.4 percent to somewhere between 3.4 percent and 4.9 percent.
But where does the spending go once it is shifted? Obama's 2010?  It makes a difference.

"Lies, damned lies, and statistics":  PolitiFact, Nutting and the improper metric

Click image for larger view
The graphic embedded to the right helps illustrate the distortion one can create using the average increase in spending as a key statistic.  Nutting probably sought this type of distortion deliberately, and it's shameful for PolitiFact to overlook it.

Using an annual average for spending allows one to make much higher spending not look so bad.  Have a look at the graphic to the right just to see what it's about, then come back and pick up the reading.  We'll wait.

Boost spending 80 percent in your first year (A) and keep it steady thereafter and you'll average 20 percent over four years. Alternatively, boost spending 80 percent just in your final year (B) and you'll also average 20 percent per year. But in the first case you'll have spent far more money--$2,400 more over the course of four years.

It's very easy to obscure the amount of money spent by using a four-year average.  In case A spending increased by a total of $3,200 over the baseline total.  That's almost $800 more than the total derived from simply increasing spending 20 percent each year (C).

Note that in the chart each scenario features the same initial baseline (green bar), the same yearly average increase (red star), and widely differing total spending over the baseline (blue triangle).

Some of Nutting's conservative critics used combined spending over four-year periods to help refute his point.  Given the potential distortion from using the average annual increase it's very easy to understand why.  Comparing the averages for the four year total smooths out the misleading effects highlighted in the graphic.

We have no evidence that PolitiFact noted any of this potential for distorting the picture.  The average percentage increase should work just fine, and it's simply coincidence that identical total increases in spending look considerably lower when the largest increase happens at the beginning (example A) than when it happens at the end (example B).

Shenanigan review:
  • Yearly average change metric masks early increases in spending
  • No mention of the effects of TARP negative spending
  • Improperly considers Obama's spending using future projections
  • Future projections were cherry-picked
The shift of FY 2009 spending from TARP, the stimulus and other initiatives may also belong on the above list, depending on where PolitiFact put the spending.

I have yet to finish my own evaluation of the spending comparisons, but what I have completed so far makes it appear that Romney may well be right about Obama accelerating spending faster than any president in recent history (at least back through Reagan).  Looking just at percentages on a year-by-year basis instead of averaging them shows Obama's first two years allow him to challenge Reagan or George W. Bush as the biggest accelerator of federal spending in recent history.  And that's using PolitiFact's $307 billion figure instead of the higher $456 billion one.

So much for PolitiFact helping us find the truth in politics.

Note:

I have a spreadsheet on which I am performing calculations to help clarify the issues surrounding federal spending and the Nutting/PolitiFact interpretations.  I hope to produce an explanatory graphic or two in the near future based on the eventual numbers.  Don't expect all the embedded comments on the sheet to make sense until I finalize it (taking down the "work in progress" portion of the title).



Jeff adds:

It's not often PolitiFact admits to the subjective nature of their system, but here we have a clear case of editorial judgement influencing the outcome of the "fact" check:
Our extensive consultations with budget analysts since our item was published convinces us that there’s no single "correct" way to divvy up fiscal 2009 spending, only a variety of plausible calculations.
This tells us that PolitiFact arbitrarily chose the "plausible calculation" that was very favorable to Obama in its original version of the story. By using other equally plausible methods, the rating would have gone down. By presenting this interpretation of the calculations as objective fact, PolitiFact misleads their readers into believing the debate is settled.

This update also contradicts PolitiFact's reasons for the "Mostly True" rating:
So the second portion of the Facebook claim -- that Obama’s spending has risen "slower than at any time in nearly 60 years" -- strikes us as Half True. Meanwhile, we would’ve given a True rating to the Facebook claim that Romney is wrong to say that spending under Obama has "accelerated at a pace without precedent in recent history." Even using the higher of the alternative measurements, at seven presidents had a higher average annual increases in spending. That balances out to our final rating of Mostly True.
In the update, they're telling readers a portion of the Facebook post is Half-True, while the other portion is True, which balances out to the final Mostly True rating. But that's not what they said in the first rating (bold emphasis added):
The only significant shortcoming of the graphic is that it fails to note that some of the restraint in spending was fueled by demands from congressional Republicans. On balance, we rate the claim Mostly True.
In the first rating, it's knocked down because it doesn't give enough credit to the GOP for restraining Obama. In the updated version of the "facts", it's knocked down because of a "balance" between two portions that are Half-True and completely True. There's no mention of how the GOP's efforts affected the rating in the update.

Their attempts to distance themselves from Nutting's widely debunked article are also comically dishonest:
The Facebook post does rely partly on Nutting’s work, and our item addresses that, but we did not simply give our seal of approval to everything Nutting wrote.
That's what PolitiFact is saying now. But in the original article PolitiFact was much more approving:
The math simultaneously backs up Nutting’s calculations and demolishes Romney’s contention.
 And finally, we still have no explanation for the grossly misleading headline graphic, first pointed out by Andrew Stiles:

Image clipped from PolitiFact.com
Neither Nutting or the original Groobiecat post claim Obama had the "lowest spending record". Both focused on the growth rate of spending. This spending record claim is PolitiFact's invention, one the fact check does not address. But it sure looks nice right next to the "Mostly True" graphic, doesn't it? Sorting out the truth, indeed.

The bottom line is PolitiFact's CYA is hopelessly flawed, and offensive to anyone that is sincerely concerned with the truth. A fact checker's job is to illuminate the facts. PolitiFact's efforts here only obfuscate them.


Bryan adds:

Great points by Jeff across the board.  The original fact check was indefensible and the other fact checks of Nutting by the mainstream media probably did not go far enough in calling Nutting onto the carpet.  PolitiFact's attempts to glamorize this pig are deeply shameful.


Update:  Added background color to embedded chart to improve visibility with enlarged view.



Correction 6/4/2012:  Corrected one instance in which PolitiFact's $307 billion figure was incorrectly given as $317 billion.  Also changed the wording in a couple of spots to eliminate redundancy and improve clarity, respectively.

Sunday, May 27, 2012

Nutting doing: PolitiFact's inadequate excuse

Crossposted from Sublime Bloviations


This week many liberals jumped on the meme that President Obama has the lowest spending record of any recent president.

Fortunately for all of us, PolitiFact was there to help us find out the truth in politics.

Actually, PolitiFact completely flubbed the related fact check.  And that's not particularly unusual.  Instead, it was the Washington Post's Glenn Kessler and an Associated Press fact check that helped people find the truth in politics.

PolitiFact isn't backing down so far, however.  On Friday PolitiFact offered the following response to the initial wave of criticism (bold emphasis added):
(O)ur item was not actually a fact-check of Nutting's entire column. Instead, we rated two elements of the Facebook post together -- one statement drawn from Nutting’s column, and the quote from Romney.

We haven't seen anything that justifies changing our rating of the Facebook post. But people can have legitimate differences about how to assign the spending, so we wanted to pass along some of the comments.

PolitiFact also made the distinction on Twitter:

(Image captured by Jeff Dyberg;
 click image for enlarged view)
There's a big problem with the attempt to distinguish between checking Nutting's claims and those from the Facebook post:  The Facebook post argues implicitly solely on the basis of Nutting's work.  PolitiFact likewise based its eventual ruling squarely on its rating of the Nutting graphic.

PolitiFact (bold emphasis added): 
The Facebook post says Mitt Romney is wrong to claim that spending under Obama has "accelerated at a pace without precedent in recent history," because it's actually risen "slower than at any time in nearly 60 years."

Obama has indeed presided over the slowest growth in spending of any president using raw dollars, and it was the second-slowest if you adjust for inflation. The math simultaneously backs up Nutting’s calculations and demolishes Romney’s contention.
Credit PolitiFact with accurately representing the logic of the implicit argument.  Without the fact check on Nutting's work there is no fact check of Romney's claim.  Making matters worse, PolitiFact emphasized the claim that Obama "has the lowest spending record" right next to its "Mostly True" Truth-O-Meter graphic.  The excuse that PolitiFact was fact checking the Facebook post completely fails to address that point.  Andrew Stiles is probably still laughing.

Criticisms of Nutting make clear that the accounting of bailout loans substantially skews the numbers in Obama's favor. Using the AP's estimates of 9.7 percent for 2009 (substantially attributable to Obama) and 7.8 percent in 2010, Obama's record while working with a cooperative Democrat-controlled Congress looks like it would challenge the high spending of any of his recent predecessors.  The leader from the Facebook graphic, President Reagan, tops out at 8.7 percent without any adjustment for inflation.  PolitiFact's fact check was utterly superficial and did not properly address the issue.

There is a silver lining.  The Obama administration has so aggressively seized on this issue that PolitiFact will certainly feel pressure to fact check different permutations of Nutting's claims.

I can't wait to see the contortions as PolitiFact tries to reconcile this rating with subsequent attempts.



*Many thanks to Mickey Kaus of the Daily Caller for linking this story.

Thursday, May 24, 2012

Power Line: "Barack Obama, Fiscal Conservative!"

The latest smackdown of PolitiFact's unbelievably inept attempt to present Obama as a budget miser comes from John Hinderaker over at Power Line.

Hinderacker first delves into the problems with Rex Nutting's flawed analysis that started this meme off in the first place:
It started with the ridiculous column by one Rex Nutting that I dismantled last night. Nutting claims that the “Obama spending binge never happened.” He says Obama has presided over the slowest growth in federal spending in modern history. Nutting achieves this counter-intuitive feat by simply omitting the first year of the Obama administration, FY 2009, when federal spending jumped $535 billion, a massive increase that has been sustained and built upon in the succeeding years. Nutting blithely attributes this FY 2009 spending to President Bush, even though 1) Obama was president for more than two-thirds of FY 2009; 2) the Democratic Congress never submitted a budget to President Bush for FY 2009, instead waiting until after Obama was inaugurated; 3) Obama signed the FY 2009 budget in March of that year; 4) Obama and the Democratic Congress spent more than $400 billion more in FY 2009 than Bush had requested in his budget proposal, which was submitted in early 2008; and 5) the stimulus bill, which ballooned FY 2009 spending, was, as we all know, enacted by the Democratic Congress and signed into law by President Obama. So for Nutting to use FY 2010 as the first year of the Obama administration for fiscal purposes was absurd.
Hinderaker goes on to list several of Obama's big spending, deficit-boosting credentials before getting to PolitiFact. Hinderaker has some choice words for PolitiFact's determination that Obama is St. Skinflint, but more importantly notes a discrepancy with a past fact check:
PolitiFact arrived at this conclusion by swallowing the claim that President Bush is somehow responsible for the spending that Obama and the Democrats did in 2009 after he left office. This is doubly amusing because it contradicts the approach PolitiFact took when the shoe was on the other foot. In January 2010, PolitiFact purported to evaluate David Axelrod’s claim that “The day the Bush administration took over from President Bill Clinton in 2001, America enjoyed a $236 billion budget surplus….” PolitiFact found that claim to be true by referring to the FY 2000 budget:
When we asked for his sources, the White House pointed us to several documents. The first was a 2002 report from the Congressional Budget Office, an independent agency, that reported the 2000 federal budget ended with a $236 billion surplus. So Axelrod was right on that point.
So at that time, PolitiFact was clear: the Clinton administration’s responsibility ended in FY 2000, the year before President Bush took office. But, now that the partisan position is reversed, PolitiFact says the opposite. Obama isn’t responsible for anything until he had been in office for eight-plus months, even though, in that time, he had signed nine spending bills plus the stimulus.
PolitiFact's assertion that "Obama has indeed presided over the slowest growth in spending of any president" is absurd. The sheer level of incompetence demanded for a rating like this makes it easy to believe that PolitiFact overlooked the problems deliberately. It's simply implausible that PolitiFact overlooked such obvious flaws accidentally.

It takes a special kind of hubris to call yourself non-partisan when dispensing this type of deceitful gimmickry.

Hinderaker's article goes into more detail pointing out the problems from Nutting and PolitiFact.  Do visit Power Line and read the whole thing.