PolitiFact Trashes Lamar Smith: Says His Claims About Economic Impact Of Piracy Are Flat Out False
from the fact-checking dept
We've pointed out before that Lamar Smith based his entire argument for why SOPA was needed on misleading or simply incorrect claims -- but who are we to say that? Thankfully, it appears that the professional fact checkers are in agreement that Smith's argument for SOPA isn't based in reality. The famed PolitiFact fact checking operation has completely dismantled Smith's claim that "illegal counterfeiting and piracy costs the US economy $100 billion every year."It turns out (as we've pointed out) there's nothing true about that statement. PolitiFact tracks down the key points on which Smith bases this claim, noting that it's a Chamber of Commerce report that says, "the U.S. consumption-based share of counterfeit and pirated goods is between $66 billion and $100 billion." Smith, obviously, just takes that higher number (already a questionable move), and insists that's the "harm." But, as PolitiFact points out, that's not what the report actually says.
In fact, the report flat out states that it "has not attempted to estimate business losses associated with counterfeiting and piracy." So to pretend that's what the report says is, well, lying.
PolitiFact checks in with a number of experts -- including someone from the Chamber of Commerce who produced the report -- who admits that it's simply not true to say that $100 billion is the cost to the economy. Add everything up, and PolitiFact says that Smith is being anything but truthful in his claims:
Smith’s statement draws on a high-end estimate also based on flawed assumptions for the U.S. "consumption-based share of counterfeit and pirated goods" in 2008. The cited $100 billion figure doesn’t reflect the costs to the economy, contrary to Smith’s claim; the 2011 study did not assess such costs, which are understandably slippery.Unfortunately, there still doesn't appear to be any punishment for trying to pass a really bad bill by using misleading stats, other than public ridicule.
Maybe there is no solid estimate of the cost to the economy. Smith’s CNN.com statement rates False.
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Filed Under: fact checking, facts, lamar smith, piracy, sopa
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There is no cost to the economy
Even if consumers spent the reported $100B on counterfeit goods, that is still what the consumers spent. That went into the economy.
Now, if consumers spent less than $100B, including down to $0, they still would have spent that on something else.
No net difference TO THE ECONOMY.
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Re: Re: There is no cost to the economy
What did Shrek ever do to you? Ogres have layers, you know!
Anyway, I think it's time to invoke the Black Sacrament on Lamar Smith and friends. The Dark Brotherhood needs to pay them a visit.
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They'll love it!
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Re: Re: Re: Re: There is no cost to the economy
Do you have any idea how much money vegetable pirating costs the US economy every year?
No? Funny... neither do I.
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Re: There is no cost to the economy
Not necessarily true. I buy something from a reputable shop and part of that money goes into the economy through taxes, rent, wages, buying the product, etc.
If I buy something from the man-on-the-corner, he takes all that money and none of it needs to be seen within the wider economy - he might buy a Rolls Royce and so allow someone else to pay taxes, etc. or he might just ship the money abroad. Either way, I suspect that he doesn't see a social responsibility in sharing his wealth.
If the counterfeit goods are sold in reputable shops then, again, some of that money does make it into the economy through the taxes, etc. but the majority for the product will just disappear.
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The right never did (something about facts having a liberal bias?) but since the "Lie of the Year" and their State of the Union thought-lie, neither does the left.
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I want to be governed by people who respect intelligence, not "Joe Sixpack".
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I think you'll find she did that all by herself.
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It doesn't matter which, in the end. The problem isn't anywhere near as bad as how he and SOPA supporters presented it to be.
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But that sort-of begs the question "how much money does the problem have to represent before we're bothered?".
Even if the problem were only a tenth of that quoted, $10billion, that still sounds like a lot of money to me.
(Not that I agree with the SOPA approach)
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rated funny
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Perjurer
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Re: Perjurer
But then Congress would be a lonely quiet place...
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Facts
Facts remain facts even if you choose to ignore them.
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Not losses, just good business that never happened.
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The reason why the person bought the $20 counterfeit handbag in the first place is because they weren't prepared to spend $200 on the authentic one.
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The reason why the person bought the $20 counterfeit handbag in the first place is because they weren't prepared to spend $200 on the authentic one.
How about the guy who bought the counterfeit medication?
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WalMart's entire housewares section, however...
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The only reason people buy the $20 one is because they can.
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The only reason people buy the $20 one is because they can."
Yeah, saving up so you can buy those $2000 medicines is the right thing to do. I'm sure that painful, debilitating and/or lethal illness you have will wait for you to get the money.
Of course, being in pain, debilitated and/or dead your salary might not be too peachy. But never you fear, you are doing the Right Thing(tm).
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Yes, and by extension they cannot buy the real thing. If you think that every $20 handbag represents a $200 sale that absolutely would have been made if the counterfeit didn't exist, you're a drooling idiot.
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I like the way you just pulled $100B out of your butt. Wouldn't it be neat if the real-world economy worked that way.
"Not losses, just good business that never happened."
Most of which would never have happened anyway, and some of which will encourage more business in the future.
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huh?
So Lamar Smith wants us to believe that revenues for these companies would double if we eradicate piracy ? If you do adjusted dollars for all the industries impacted by piracy for 1992, will we find that the revenue is double what it is now?
$100 billion loss to the economy??? So all of the money would have to leave the US and not be processed by US financial institutions. Kim Dotcom must be rolling in cash.
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Why stories about Lamar and not about issues that directly touch copyright? Could it be that perhaps you don't want to discuss the negative issues, the widespread realization by those in the piracy community that perhaps they can't hide out from the law, etc?
It would seem to me that two items bullshitting about Lamar is overkill, compared to what is happening in the real world.
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When he posts about torrents, you claim he's a piracy apologist. When he posts about law, you claim he's a poor journalist. When he posts about politicians, you claim he's a lobbyist.
He's never going to satisfy your twisted inconsistencies, and you know it.
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You mean like piracy continuing unabated?
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Not harm, but savings
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Well, I object to Smith's analysis because he is *in favor* of the 'anti-online-piracy act'. If he is in favor of it then he "cannot provide an objective or unbiased analysis."
Total and utter logic fail.
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That and the fact that he's received 100s of thousands of dollars from Hollywood to pass these laws. Like his views are in any way "objective or unbiased".
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A country is made up of people. No people, no country. The government is supposed to be by the people, for the people. If you intentionally mislead the public and government in attempts to pass laws that would negatively impact the public and therefor the country... doesn't that make it a kind of treason?
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Ooo! I know!
How about:
"Rep Lamar Smith is an avid consumer of Hitler-themed seal clubbing videos which he watches stoned while sitting on a burning American flag."
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Fine, fine....
Who let this guy graduate college again?
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Re: Fine, fine....
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Piratey things
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the music industry is a mess
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the music industry is a mess
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Well, of course they do. And, artists go to the recording companies because the companies care only about money.
Artists who go to recording companies usually have an interest in getting their music out in the world, for the bucks or for other reasons. When a rec company works hard in order to earn bigbucks off of someone's music, that usually means they're striving to sell as many copies as possible.
Thus, both sides are working towards a common goal - building and satisfying huge quantities of demand - even though success might be measured and accented differently between them. For most artists, running their own free music site isn't going to get them nearly the distribution that even a small rec company campaign can build. If an artist is giving away millions of free downloads, you can usually bet the artist is already a big seller - usually because of past rec company efforts.
Don't get me wrong - I'm not arguing your basic points about IP clamps. I'm speaking only to your sort of contemptuous dismissal of the value of a free market in maximizing everyone's satisfaction of their wants, needs, and desires.
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Let me start by saying, I'm on your side here - SOPA was just another instance in which the entrenched government mandarins give magnificent gifts to their friends that they'd just stole from us for that purpose. And that was the best, highest aspect of it.
My point is, Politifact has whored itself out too obviously and too dishonestly, too many times. Even when they call it 100% correctly, as I think they did here, their rep drags you down when you cite to them.
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