Thursday, February 14, 2013

About that uneven State of the Union address

It's time to weigh in on President Obama's State of the Union address now that everyone else has had their say.  There is "uneven" in the title of this comment as the many positive initiatives that were discussed were balanced to the downside by the exaggeration of the administration's accomplishments.

The stirring close on gun control was the most passionate part of the speech, a high note to end on while focusing on tragic events.  While passage of any bill may not be possible, his "they deserve a vote" line was powerful and would require each Congressman to be on record as to their opinion.  Who knows where the next gun facilitated horrific act by some maladjusted person will happen, but each congressman knows that, if it happens in their district or their state, their position will be on record.  It is ludicrous to think that the founding fathers who wrote the second amendment could imagine military style advanced assault rifles or handguns that could fire 30 to 60 rounds in minutes would exist and then be put in the hands of ordinary citizens, and filter their way widely through to criminals and those who are mentally ill.

Obama's call for infrastructure spending is critical for our economic future, quality of life, and would boost employment levels with constructive, or construction, work.  Coming up with public/private solutions to funding this should make it a real possibility and it's essential.  His call for a comprehensive immigration bill makes complete sense and is long overdue.  The proposal for a vast national expansion of pre-school education is laudable, sensible, and needed.  How to fund and administer this needs to be examined closely.  This is not a minor proposal.  His initiatives to address climate change also need to be accepted by the anti-science pro-business at all costs crowd, but progress can be made here if the President truthfully and constructively addresses the real issues and does not just make symbolic progress.  An increase in the minimum wage to $9 is a directionally sensible goal, worth considering seriously but has some complications, such as the usual gripe here about the government refusing to use available technology to take into consideration cost of living differences.  In poor areas, that increase may actually deter small business owners from hiring while in big city urban areas it may not be material enough to attract the unemployed and unmotivated youth who may have other sources of funds.  Over time, businesses will adjust by raising prices in stores and on items that the poor more than others depend on.  On balance it is a bold and positive move, but not one without issues that deserve discussion.

There were many other constructive suggestions in Obama's speech, but quite a few distractions.  He kept using the word "bipartisan" but made many statements that would only anger those that he was suggesting that he worked well with.  Those misleading statements were directed at the American people and not at Congress.  For example, he said in the present tense that the administration had doubled the average distance cars could go on a gallon of gas.  That's the 2025 goal, and during his first four years information seen here suggests that the average went from 21 miles per gallon to 24, an improvement for sure but...  Same with the budget deficit, he stated that it had been reduced by $2.5 trillion.  That's the imbedded 2022 goal if all items passed work, are implemented properly, and if there are no complications in the interim.  Note that these statements that could be misinterpreted are to be fulfilled well beyond his time in office.  What the heck are the 2016 goals for progress on these initiatives when your time is up Mr. President.  Where is your accountability?

On the Affordable Care Act(healthcare bill), Obama claimed that the bill was responsible for reducing the growth of healthcare costs.  Actually the decline in the growth in healthcare costs began in 2008 and economists, virtually everyone, attribute the decline to the huge economic downturn that became a disincentive for many people to seek treatment or preventive examinations unless absolutely necessary.  The health bill was not passed until 2010 and is still is in phases of implementation.  With the slow improvement in the economy, the decline in the growth rate of health care costs moderated in 2012 but the growth rate is still below 2007.  At least results so far indicate that the health care bill is not yet adding to overall costs.

Obama mentioned the growth of renewable energy production, specificially wind and solar.  Solar has grown hardly at all while wind has made some progress, but together they are still a minor part of our energy resources.  There's nothing wrong with being optimistic or working toward bigger goals, but let's put things in context.  He mentioned simplifying the tax code for small business, but what about the rest of us.  He is making no effort to radically change the tax code so that "citizens" can understand it, keep up with rule changes, and actually do their own work.  Here last year we gave up, and now have an accountant, a great relief but there was no recognition by Obama of the monster that it has taken years to create and needs to be dismantled, totally revamped.

Build and manufacture in America was a recurring theme, but another theme less clearly stated but definitely part of his agenda is to provide penalities and tax disincentives from manufacturing overseas.  We like Toyota, BMW, and others building their cars here where they sell so many.  Why would this administration not understand the logic of globalization that makes manufacturing in other countries and being closer to the customer a constructive action that makes American multinationals competitive?

After lambasting the banking industry for four years, almost making bank a four letter word, Obama bewailed the lack of credit available for housing refinancings and small business.  Mr. Obama, the OCC and FDIC report ultimately to you.  Their examiners in the field are rigid in examining the capital positions and risk positions of banks.  Many smaller banks have been shuttered in the last four years and the power that your regulators have to do this cannot be challenged.  Many large banks still have lawsuits coming out of their ears from your Justice Department over the housing crisis, many of the charges related to actions taken by firms before they were acquired during the economic crisis and finally controlled by the banks coming to the rescue.  The Treasury Department encouraged and at times facilitated these acquisitions.  Your remarks on this issue were incomplete and  continued a policy of scapegoating.

This could go on and on, just like the opposite side of the coin which is the many constructive suggestions that Obama made.  How is it all to be paid for.  Everyone with half a brain knows that bureaucracies have their own momentum for creating work and jobs, much of it not necessary.  Why not come up with some solutions that involve cutting the size of government departments.  Maybe the State Department and the Defense Department could be excluded but announcing across the board cuts of 10% in the white collar and administrative staff of most cabinet departments would make little difference in efficiency, and maybe even lead to greater efficiency, after a short term adjustment, and that statement has been validated many times in cuts by corporations that were under pressure to slim down.  Why not look at the benefits and pension programs offered to Federal government employees, which are now more generous than what is available in much of the private sector.  That issue is already wrecking the budgets of state and city governments but the Federal government is not held to any standard so can just ignore this issue.  In fact, it must face up to it.  There was nothing visionary about Obama's approach to the deficit.  Eliminating "loopholes" for the wealthy and upper middle class and taxing corporations more will not solve the problem alone.  That's a political stunt.

This has gone on long enough.  The positives in Obama's State of the Union address show respect and caring for the American people.  The exaggerations, statements out of context, and political gamesmanship were just not necessary and show a disrespect for the intelligence of the American people and a willingness to risk his agenda in a continued political firefight.

 

 

1 Comments:

Anonymous kf said...

The President more or less did what he could to satisfy his supporters and put pressure on his opponents to come to some agreement. If he had got on his knees and begged to his opponents they would still criticize the dust on his pants. He had only one path.

5:25 PM  

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