The U.S. economy is kind of like an onion.
The more layers you peel back, the more it makes you cry.
Never was this more evident than during the President’s first State of the Union address last night.
Despite his recent political setbacks, the President was in a feisty mood, especially when it came to the economy and the deep hole in which the government finds itself. Mixed in with the expected themes of liberty, unity, hearth and home were dozens of references to our financial turmoil.
According to the University of California’s American Presidency Project, during his 69-minute speech before a joint session of Congress, Mr. Obama said the word jobs 29 times. He made 18 references to business and 15 nods to the economy. The President also mentioned taxes 21 times while fretting over deficit, the budget and spending a total of 25 times.
Stating the obvious, the President lamented that “We have just finished a difficult year.” The President, however, defended his decision to support taxpayer bailouts to save companies like Citigroup, Inc. and General Motors even as he vowed to fight for the middle class and not bank executives.
While Mr. Obama pledged to push for the broad programs, his new proposals were smaller in scale; a recognition of the more than $1 trillion he said his administration spent to stanch the financial crisis.
Mr. Obama proposed tax credits for small businesses and called on Congress to eliminate capital gains levies on small business investment. He also offered proposals to tackle the federal budget deficit, forecast to be $1.35 trillion this year.
It Was Time to Reach to Foes
Although the President admitted to his failure at being a better salesman for his version of healthcare reform, he was unapologetic for his relentless pursuit of this goal.
There is no question that this President has made dozens of rookie mistakes. No one disputes that overhauling healthcare is a laudable goal. But given the dreadful state of our economy, it’s an agenda item that should have waited.
Unfortunately, the President may have learned this lesson too late.
Recognizing that good governance radiates from the center, the President made a concerted effort to reach out to moderates on both sides of the political aisle. Mr. Obama also sought to appeal to independents and Republicans, emphasizing tax cuts, the budget freeze and opening the door to offshore oil drilling.
President Obama struck chords of economic nationalism, reiterating the need for “a new foundation for long-term economic growth” and warning that without such steps, the country risks losing its competitive edge to emerging nations like China and India.
After the applause stopped and the President’s motorcade returned to the White House, it was apparent nothing had genuinely changed. To nobody’s surprise, within moments of the President’s departure, the chamber fell back into its Hatfield vs. McCoy mentality.
Substance Is Missing
In spite of the desperate difficulties confronting millions of Americans, it remains politics over progress – ambition over answers. No wonder most Americans are disgusted with Washington.
Everyone agrees that when it comes to our national security, politics should stop at the water’s edge. Even though the stability of our economy is an essential component to our long-term security, any unity of purpose is elusive because scoring political points is elevated over substantive change.
It is the job of historians to assess and fix blame. There will be plenty to go around.
It’s the job of our elected officials to fix our flat tire. Unless they get this message, our economy will limp along the shoulder of the world economy while other more vibrant and proactive economies leave us in their dust.
John Cohn is a senior partner in the Globe West Financial Group based in West Los Angeles. He may be contacted at www.globewestfinancial.com
