The Denver Post

Fact checking the Trump speech

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WASHINGTON» The Associated Press fact checked remarks from President Donald Trump’s State of the Union speech Tuesday night. Here is a look at some of the claims we examined:

On trade, Trump said: “Our new U.S.-Mexico-Canada Agreement — or USMCA — will replace NAFTA and deliver for American workers: bringing back our manufactur­ing jobs, expanding American agricultur­e, protecting intellectu­al property and ensuring that more cars are proudly stamped with the four beautiful words: MADE IN THE USA.”

The facts: It’s unlikely to do all those things, because the new agreement largely preserves the structure and substance of NAFTA.

In one new feature, the deal requires that 40 percent of cars’ contents even-

tually be made in countries that pay autoworker­s at least $16 an hour — that is, in the United States or Canada, but not in Mexico. It also requires Mexico to pursue an overhaul of labor law to encourage independen­t unions that will bargain for higher wages and better working conditions for Mexicans.

Still, just before the agreement was signed, General Motors announced that it would lay off 14,000 workers and close five plants in the U.S. and Canada.

Philip Levy, senior fellow at the Chicago Council on Global Affairs and a trade official in Republican President George W. Bush’s White House, said: “President Trump has seriously overhyped this agreement.”

Drug pricing

Trump: “Already, as a result of my administra­tion’s efforts, in 2018 drug prices experience­d their single largest decline in 46 years.”

The facts: Trump is selectivel­y citing statistics to exaggerate what seems to be a slowdown in prices. A broader look at the data shows that drug prices are still rising, but more moderately. Some independen­t experts say criticism from Trump and congressio­nal Democrats may be causing pharmaceut­ical companies to show restraint.

The Consumer Price Index for prescripti­on drugs shows a 0.6 percent reduction in prices in December 2018 when compared with December 2017, the biggest drop in nearly 50 years. The government index tracks a set of medication­s including brand drugs and generics.

However, that same index showed a 1.6 percent increase when comparing the full 12 months of 2018 with the entire previous year.

“The annualized number gives you a better picture,” said economist Paul Hughes-Cromwick of Altarum, a nonprofit research organizati­on. “It could be that something quirky happened in December.”

Separately, an analysis of brand-name drug prices by The Associated Press shows there were 2,712 price increases in the first half of this January, as compared with 3,327 increases during the same period last year.

Wages

Trump: “Wages are rising at the fastest pace in decades, and growing for bluecollar workers, who I promised to fight for, they’re growing faster than anyone else thought possible.”

The facts: This is an unsupporte­d statement because the data on hourly wages for private workers only go back to 2006, not decades. But data on wages for production workers date back to 1939 — and Trump’s claim appears to be unfounded.

Average hourly earnings for production and nonsupervi­sory workers are up 3.4 percent over the past year, according to the Labor Department. Those wage gains were higher as recently as early 2009. And they were averaging roughly 4 percent before the start of the Great Recession in late 2007.

Minority unemployme­nt

Trump: “African-American, Hispanic-American and Asian-American unemployme­nt have all reached their lowest levels ever recorded.”

The facts: What he’s not saying is that the unemployme­nt rates for all three groups have gone up since reaching record low levels.

Black unemployme­nt reached a record low, 5.9 percent, in May but rose to 6.8 percent in January.

Latino unemployme­nt fell to 4.4 percent, its lowest ever, last October, and Asian unemployme­nt fell to a record low of 2.2 percent in May. But Latino and Asian unemployme­nt also have increased, in part because of the government shutdown, which elevated unemployme­nt last month.

The African-American rate is still nearly double the jobless rate for whites, at 3.5 percent.

Human traffickin­g

Trump: “Human trafficker­s and sex trafficker­s take advantage of the wide open areas between our ports of entry to smuggle thousands of young girls and women into the United States and to sell them into prostituti­on and modern-day slavery.”

The facts: His administra­tion has not supplied evidence that women and girls are smuggled by the “thousands” across remote areas of the border for these purposes. What has been establishe­d is nearly 80 percent of internatio­nal traffickin­g victims cross through legal ports of entry, a flow that would not be stopped by a border wall.

Economy

Trump: “In just over two years since the election, we have launched an unpreceden­ted economic boom — a boom that has rarely been seen before. There’s been nothing like it . ... An economic miracle is taking place in the United States.”

The facts: The president is vastly exaggerati­ng what has been a mild improvemen­t in growth and hiring. The economy is healthy but not nearly one of the best in U.S. history.

The economy expanded at an annual rate of 3.8 percent last spring and summer, a solid pace. But it was just the fastest in four years. In the late 1990s, growth topped 4 percent for four straight years, a level it has not yet reached under Trump. And growth even reached 7.2 percent in 1984.

 ?? Mandel Ngan, AFP/Getty Images ?? Several female Democratic lawmakers wear white Tuesday night in a nod to the suffragett­e movement.
Mandel Ngan, AFP/Getty Images Several female Democratic lawmakers wear white Tuesday night in a nod to the suffragett­e movement.

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