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Wednesday, January 25, 2012

THE LONG HARD CLIMB

The State of the Union address by the President was effective, although I agree with "The New York Times" that he needs to be even tougher in his views with a recalcitrant opposition party in Congress.

We need to cut the deficit and control spending---that's a given---but the first priority is to create jobs and stimulate the economy, Without reducing unemployment and putting more people to work, how can we generate more revenue to help lower the deficit? An interesting article by Tom Friedman in "The Times" called "Average is Over" highlights one of the major issues, the loss of jobs due to technology, the I.T. revolution and cheaper foreign labor. Friedman refers to an article in "The Atlantic" by Adam Davidson which points out that one out of every three worker has lost a job in the ten years ending in 2009, thereby erasing the gains in employment made the last previous fifty years. In addition, you are fighting not only cheap labor, such as in China, but better-trained foreign workforces. That is why the President emphasized new job training.

The President has made many mistakes over these last three years, although I cannot imagine John McCain would have done so well. I think the first mistake Obama made was putting the heavy emphasis on health care as his first major endeavour instead of putting the full force of his popularity as a new president on the economy. He expended so much human capital and energy on the health care battle, which was a polarizing issue at best, and it cost him dearly in good will. Mind you, I recognize the importance of the health care issue, but first things first: you need a healthy economy with more people working to build momentum before you deal with substantive changes like health care.

Another mistake was to ignore the recommendations of the special commission he appointed (Webb-Simpson) to study the tax code and deficit reduction. Eventually, some of the recommendations of that bi-partisan commission will have to be effected.

Another major boo-boo was to try to play the role of the Great Conciliator too long with an opposing Congress. O.K., give it a try, but it became apparent very rapidly that the Republicans were not in the mood and would resist anything the President
did. He has learned this lesson now, but again, he lost a lot of time.

Another failure: to hit hard the need for repairs to our infrastructure. In addition to making obsolete or exhausted resources valuable again, it can also create jobs at a time when jobs are desperately needed.

He has a chance to win reelection, but he is going to have to be forceful and effective. The Republican candidates, for the most part, are expert at shooting themselves in their own feet, which can only help him. The economy is still not good, although improving, and the economy is always the paramount issue in any election.

The President is going to be on the proverbial slippery slope, which he needs to climb hard and fast.

2 comments:

  1. You're right, the economy should have been addressed first and foremost. Tax reform is something that is always talked about but never acted upon.

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  2. If he could do it over I expect he'd change a few things.

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