President Donald Trump’s first State of the Union address was filled
with several repeat claims about the economy, tax cuts and immigration
that we’ve fact-checked before, as well as new false and misleading
statements on auto plants, judicial appointments and development aid.
Trump claimed credit for creating 561,000 jobs that actually were added before he took office, and for starting a rise in wages that began years earlier.
As he has done numerous times recently, Trump boasted about record-low unemployment rates for black and Hispanic Americans. That’s accurate, but unemployment rates for African American and Hispanic Americans — as well as for all Americans — have been in steady decline for about the last seven years.
When Trump took office in January 2017, the black unemployment rate was 7.8 percent, the lowest it had been in nearly 10 years, according to the Bureau of Labor Statistics. Under Trump, it dropped a full percentage point to 6.8 percent in December. That’s the lowest rate since the bureau began regularly breaking out unemployment rates by race in 1972.
A similar drop of 1 percentage point was recorded during the same 11-month period in 2016. But even larger drops were recorded in each of the three years before that. The rate fell 1.9 percentage points in 2015, 1.5 percentage points in 2014 and 1.8 percentage points in 2013.
The gap between white and black unemployment remains largely unchanged under Trump. While black unemployment fell to 6.8 percent in December, the white unemployment rate that month was 3.7 percent. So the white rate is 46 percent lower than the black rate, about the same as the gap in December 2016.
The Hispanic unemployment rate dipped to 4.8 percent in June, October and November, matching a record low recorded in October 2006. The rate dropped by a full percentage point under Trump, from 5.9 percent in January 2017 to 4.9 percent in December. But again, despite remaining constant during 2016, the rate has been declining for years, going from 12.9 percent in December 2010 to 6.2 percent in December 2015.
Trump made a series of misstatements in talking about the auto industry.
The Center for Automotive Research, a government-funded research group based in Michigan, tracks auto manufacturing investments in the U.S. Kristin Dziczek, the center’s director of the industry, labor & economics group, told us that most investments in recent years have been for “expansion and retooling of existing facilities.” But, she said, two new auto assembly plants were announced in the nine years before Trump took office.
For example, Volkswagen chose Chattanooga, Tennessee, as the hub of its U.S. manufacturing operations in 2008. Volvo announced its first U.S. plant in 2015, and BMW expanded its South Carolina facility as recently as 2016.
Trump was also wrong when he said, “Chrysler is moving a major plant from Mexico to Michigan.” In early January, Fiat Chrysler announced plans to move production of its heavy-duty trucks from Mexico to the United States, but the Mexico plant is expected to continue its operations and switch to a new vehicle line.
The president has gotten the facts wrong about Fiat Chrysler before, including in a recent tweet where he claimed Chrysler “is leaving Mexico and coming back to the USA.”
Trump is right that Toyota and Mazda have announced the construction of a joint auto assembly plant in Alabama. But it’s not clear how much credit Trump can claim.
In a press release announcing the new plant, Toyota said it has been negotiating a joint venture with Mazda for two years — ever since the two companies entered an agreement in May 2015 to partner on business ventures.
The $1.6 billion investment is part of a commitment that Toyota made in January 2017 before Trump took office to invest $10 billion in the U.S. over five years. At the time, Toyota President Akio Toyoda told reporters, “We’re always considering ways to increase production in the United States, regardless of the political situation.”
Read more of the detailed facts here: FactChecking Trump's State of the Union - FactCheck.org
- Trump claimed credit for 2.4 million new jobs “since the election,” when more than a half a million of those jobs were created under then-President Obama.
- He claimed that wages are “finally” going up, when they’ve been on a generally upward trend since the 1990s.
- Trump boasted that the African American unemployment rate was the “lowest rate ever recorded” and that Hispanic unemployment was at the “lowest levels in history.” True, but both rates have been in steady decline for about seven years. And the recent Hispanic rate matches the record low in October 2006.
- Trump falsely said car companies have not built or expanded plants in the U.S. “for decades.” Two new assembly plants were announced and others expanded in the last nine years.
- The president said he had appointed “more circuit court judges than any new administration” in history. True, but appointments by Presidents Nixon and Kennedy had a greater impact since there were far fewer appellate court seats back then.
- Trump said the U.S. does “more than any other country … to help the needy, the struggling, and the underprivileged all over the world.” In raw dollars of development aid, it’s true. But as a proportion of gross national income, the U.S. ranked 22nd in 2016.
- The president wrongly said that the U.S. is “an exporter of energy to the world.” The Energy Information Administration estimates the U.S. won’t be a net exporter of energy until 2026.
- Trump again wrongly said that “we enacted the biggest tax cuts and reforms in American history.” There have been larger cuts as a percentage of gross domestic product and in inflation-adjusted dollars
- The president said the new tax law gives “tremendous relief for the middle class.” The middle quintile in terms of income gets an average tax cut of $930 in 2018, but the top quintile gets a little more than 65 percent of the tax cut benefits.
- Trump said cutting the corporate tax rate will “increase average family income by more than $4,000.” This is a rosy, long-term estimate from White House economic advisers based on questionable assumptions.
- Trump wrongly said the Diversity Immigrant Visa Program “hands out green cards without any regard for skill … or the safety of the American people.” There are both education or work experience requirements, and a background check for all who are selected.
- Trump said that “America has also finally turned the page on decades of unfair trade deals.” But the trade deficit that he promised to reduce has grown larger during his presidency.
- Trump said the U.S. is “restoring our … standing abroad.” But a recent Gallup Poll found “approval of U.S. leadership across 134 countries and areas stands at a new low.”
Trump claimed credit for creating 561,000 jobs that actually were added before he took office, and for starting a rise in wages that began years earlier.
Trump said: "Since the election, we have created 2.4 million new jobs, including 200,000 new jobs in manufacturing alone. Tremendous number. After years and years of wage stagnation, we are finally seeing rising wages".Trump claimed credit for creating 561,000 jobs that actually were added before he took office, and for starting a rise in wages that began years earlier.
Trump: Since the election, we have created 2.4 million new jobs, including 200,000 new jobs in manufacturing alone. Tremendous number. After years and years of wage stagnation, we are finally seeing rising wages.
As he has done numerous times recently, Trump boasted about record-low unemployment rates for black and Hispanic Americans. That’s accurate, but unemployment rates for African American and Hispanic Americans — as well as for all Americans — have been in steady decline for about the last seven years.
Trump said: "And something I am very proud of, African American unemployment stands at the lowest rate ever recorded. And Hispanic American unemployment has also reached the lowest levels in history"As we noted when Trump recently claimed the black unemployment rate is the lowest in recorded history “because of my policies,” the years-long downward trend in unemployment rates has continued under Trump, but at a slower pace than in recent years.
When Trump took office in January 2017, the black unemployment rate was 7.8 percent, the lowest it had been in nearly 10 years, according to the Bureau of Labor Statistics. Under Trump, it dropped a full percentage point to 6.8 percent in December. That’s the lowest rate since the bureau began regularly breaking out unemployment rates by race in 1972.
A similar drop of 1 percentage point was recorded during the same 11-month period in 2016. But even larger drops were recorded in each of the three years before that. The rate fell 1.9 percentage points in 2015, 1.5 percentage points in 2014 and 1.8 percentage points in 2013.
The gap between white and black unemployment remains largely unchanged under Trump. While black unemployment fell to 6.8 percent in December, the white unemployment rate that month was 3.7 percent. So the white rate is 46 percent lower than the black rate, about the same as the gap in December 2016.
The Hispanic unemployment rate dipped to 4.8 percent in June, October and November, matching a record low recorded in October 2006. The rate dropped by a full percentage point under Trump, from 5.9 percent in January 2017 to 4.9 percent in December. But again, despite remaining constant during 2016, the rate has been declining for years, going from 12.9 percent in December 2010 to 6.2 percent in December 2015.
Trump made a series of misstatements in talking about the auto industry.
Trump said: "Many car companies are now building and expanding plants in the United States — something we haven’t seen for decades. Chrysler is moving a major plant from Mexico to Michigan. Toyota and Mazda are opening up a plant in Alabama — a big one. And we haven’t seen this in a long time. It’s all coming back".There is a lot to unpack here, but let’s start with the fact that the president is wrong when he says the U.S. has not seen the construction of new auto plants and expansion of existing ones “for decades.”
The Center for Automotive Research, a government-funded research group based in Michigan, tracks auto manufacturing investments in the U.S. Kristin Dziczek, the center’s director of the industry, labor & economics group, told us that most investments in recent years have been for “expansion and retooling of existing facilities.” But, she said, two new auto assembly plants were announced in the nine years before Trump took office.
For example, Volkswagen chose Chattanooga, Tennessee, as the hub of its U.S. manufacturing operations in 2008. Volvo announced its first U.S. plant in 2015, and BMW expanded its South Carolina facility as recently as 2016.
Trump was also wrong when he said, “Chrysler is moving a major plant from Mexico to Michigan.” In early January, Fiat Chrysler announced plans to move production of its heavy-duty trucks from Mexico to the United States, but the Mexico plant is expected to continue its operations and switch to a new vehicle line.
The president has gotten the facts wrong about Fiat Chrysler before, including in a recent tweet where he claimed Chrysler “is leaving Mexico and coming back to the USA.”
Trump is right that Toyota and Mazda have announced the construction of a joint auto assembly plant in Alabama. But it’s not clear how much credit Trump can claim.
In a press release announcing the new plant, Toyota said it has been negotiating a joint venture with Mazda for two years — ever since the two companies entered an agreement in May 2015 to partner on business ventures.
The $1.6 billion investment is part of a commitment that Toyota made in January 2017 before Trump took office to invest $10 billion in the U.S. over five years. At the time, Toyota President Akio Toyoda told reporters, “We’re always considering ways to increase production in the United States, regardless of the political situation.”
Read more of the detailed facts here: FactChecking Trump's State of the Union - FactCheck.org
