Sun, Oct 07, 2012 - Page 13 News List

Ex-GE chief’s comments cause uproar

The APPRENTICE:The comments from the former General Electric chairman have been widely mocked, with many comparing Welch to verbose tycoon Donald Trump

Reuters, BOSTON

Former General Electric chairman Jack Welch speaks at the “World Business Forum” in Frankfurt, Germany, in 2005. Welch sparked outrage in Washington on Friday for insinuating the US government manipulated job data.

Photo: AFP

Jack Welch, the former chairman of General Electric Co (GE), provoked cries of outrage in Washington on Friday when he suggested that the White House manipulated September job figures for political gains.

White House officials dismissed as “ludicrous” a tweet Welch sent to his more than 1.3 million followers that gave the impression US President Barack Obama’s administration may have rigged the data as a way of recovering from a poor showing at Wednesday night’s debate with Mitt Romney, his Republican challenger for the White House.

“Unbelievable jobs numbers..these Chicago guys will do anything..can’t debate so change numbers,” Welch said in a posting on Twitter.

Obama formerly served as a senator from Illinois.

The tweet was repeated more than 2,000 times, with many mocking posts comparing Welch to New York real estate tycoon Donald Trump, who during his failed bid for the presidency loudly argued that Obama was not born in the US, and Clint Eastwood, who gave a widely panned speech at the Republican National Convention in August.

Welch, who with his wife, Suzy Welch, writes a column for Reuters, said he is not “accusing anyone of anything.” However, he stood by his tweet.

“These numbers just don’t go with the economic activity.” Welch said. “You draw your own conclusions.”

Officials in Washington quickly dismissed the idea that the Labor Department report — which showed unemployment falling to a near four-year low of 7.8 percent — could be rigged.

“That’s a ludicrous comment. No serious person believes that the Bureau of Labor Statistics manipulates its statistics,” said Alan Krueger, chairman of the White House Council of Economic Advisers.

“The jobs report and all of their other statistics are prepared by career employees. They use the same process every month. They use the same process for Republican and Democratic administrations,” he added.

Later, Welch told reporters: “I have no evidence to prove [the BLS numbers were manipulated]. I just raised the question.”

However, he said: “You don’t think it’s coincidental that we’ve had the biggest job surge since 1983? These numbers defy logic.”

The tweet was by no means Welch’s first criticism of Obama on his Twitter feed, where he has regularly spoken out in favor of Romney.

During the presidential debate in Denver, Colorado, on Wednesday night, Welch tweeted: “HOW can anyone vote for Obama after this performance. He has demonstrated his incompetence.”

“This guy is the guy that’s telling me the books are cooked? That’s hilarious,” said Barry Ritholtz, CEO and director of equity research at Fusion IQ in New York, which manages about US$300 million in assets.

Ritholtz, one of the first to respond to Welch’s tweet, was referring to the allegation that during his tenure at General Electric, Welch sometimes used the General Electric Capital finance unit to sell quickly assets, such as real estate and ensure that the largest US conglomerate regularly beat Wall Street profit estimates. Other tweets agreed with Welch’s assertion.

“In regards to today’s jobs report — I agree with former General Electric CEO Jack Welch, Chicago style politics is at work here,” Florida Representative Allen West, a Republican, said on Twitter.

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