OK so it is not exactly Austrian but the AP’s fact check of President Obama’s speech proves interesting.
Finally someone other than the Austrians is beginning to question Obama’s economics.
The following is the first part of the AP’s article.
WASHINGTON – President Barack Obama’s plea for patience in the economic turmoil Tuesday fits with the view of most economists that a turnaround will take some time. It doesn’t fit quite so neatly with his bullish budget. The president’s spending plans and deficit projections rest on the assumption that the economy will post solid growth next year after a mild, further decline this year. Many economists think that’s too rosy.
Obama was more cautious than that in his prime-time news conference — possibly to the point of having it both ways.
A look at some of his statements and how they square with the facts:
The claim: “We will recover from this recession. But it will take time, it will take patience, and it will take an understanding that when we all work together, when each of us looks beyond our own short-term interests to the wider set of obligations we have to each other, that’s when we succeed.”
The facts: No one really knows when the recession will end. But Obama’s own budget forecasts the recession will continue through this year but with a relatively shallow 1.2 percent decline in the gross domestic product.
Then, the budget predicts solid 3.2 percent growth for 2010, followed by three years of more than 4 percent growth each year.
Christina Romer, head of the White House Council of Economic Advisers, said this week she was “incredibly confident” the U.S. economy will recover within a year.
Congressional Republicans and some Democratic budget hawks have suggested the Obama budget projections are unduly optimistic to make the math to pay for the president’s programs work. The higher the GDP growth, the more tax revenues come in.
Meanwhile, the nonpartisan Congressional Budget Office last week predicted that the Obama budget would produce deficits averaging nearly $1 trillion over the next decade.
Obama: “In this budget, we have made the tough choices necessary to cut our deficit in half by the end of my first term even under the most pessimistic estimates.”
The facts: Not all credible estimates foresee a deficit halved in that time.
Obama’s budget forecast a deficit of $530 billion by the end of 2013. That would cut by half the deficit he inherited at the start of his term. To succeed, Obama is counting on a recovered economy, a tax boost for the rich and success in easing foreign entanglements. But his assertion that he can accomplish that “even under the most pessimistic estimates” flies in the face of an answer he gave moments later.
The nonpartisan Congressional Budget Office forecasts that Obama’s spending plan would leave a deficit of $672 billion by the end of 2013. Explaining the differences between his projections and CBO’s, Obama said: “They’re assuming a growth rate of 2.2 (percent), we’re assuming a growth rate of 2.6.”