Posts Tagged ‘SOTU’
January 27th, 2011 | Author: Posted by Ben Hart
DANIEL HENNINGER-WALL STREET JOURNAL:
No president before Barack Obama has been so right and so wrong.
When in his State of the Union speech Mr. Obama said, “This is our generation’s Sputnik moment,” citing the emergence of global competition from the likes of China and India, he was right.
Minutes later he proposed to cover the country with high-speed rail and companies making solar shingles.
High-speed rail and solar shingles? If that’s the president’s idea of meeting our Sputnik moment, then Houston, we have a problem.
About halfway into the speech, I began to wonder: What is John Boehner thinking? Let’s first welcome back the tradition of House Speakers who bring nothing but a poker face to the State of the Union. (The vice president re-tightening his tie in the middle of the speech was a minor Biden classic.)
I’m guessing that about the time the president was calling investments in clean energy “the Apollo projects of our time,” the new Speaker was thinking: “This is bunk,” or some word to that effect.
That probably wasn’t Mr. Boehner’s first thought. Before the bunk arrived, his first thought was: “We’re in trouble.”
If Barack Obama had come even close to matching policies with the sentiments he spun across the House chamber in the first sections of that speech, the Republicans would have been dealing with a formidable new centrist president.
The speech’s prelude could have been delivered by Ronald Reagan or written by the conservative entrepreneurial Utopian George Gilder.
In a single generation, “the rules have changed,” he said, propelled by technology. “The naysayers predicting our decline” are wrong. When moments later Mr. Obama said, “We are the first nation to be founded for the sake of an idea,” one felt the ghost of the Gipper hovering nearby. The president called forth more of those spirits, praising “the idea that each of us deserves the chance to shape our own destiny. That’s why centuries of pioneers and immigrants have risked everything to come here.”
And: “We need to out-innovate, out-educate, and out-build the rest of the world.” Yes!
And: “Our free enterprise system is what drives innovation.” Oh, yes!
Even an Obama naysayer was thinking, Go for it, Mr. President. Unleash our nation of pioneer entrepreneurs with incentives to work, save and invest. (But why the weird slap at the all-American competitiveness of the Super Bowl?)
For a while Tuesday night, it appeared Mr. Obama would replicate Bill Clinton’s almost sci-fi ability to absorb his opposition’s best ideas, such as welfare reform, and re-infuse them into the body politic as his own. But no. We got high-speed rail and solar shingles.
Barack Obama believes what he believes. The ideas he came in with are the ideas he will go out with, and nowhere in that speech was there a fully formed policy idea reflecting authentic belief in the private economy.
The recently promised and much-needed regulatory review was offset with a paean to regulation. “It’s why we have speed limits.” He somehow felt compelled to tell productive suburban families that he’ll try to rescind the tax cut for them, the $250,000 “millionaires.”
Once past the Reagan moment, the Obama policy menu had three entrees: clean energy, education and infrastructure. This was lifted, almost verbatim, from the Obama budget message two months into his presidency: “Our budget will make long overdue investments in priorities—like clean energy, education, health care, and new infrastructure.” He extolled “new jobs that pay well” such as “installing solar energy panels and wind turbines.”
This isn’t a vision. It’s an obsession.
Sending the completed trade agreements with Colombia and Panama to Congress for ratification should have been a lay-up for a president seeking the center. That’s not happening.
What’s ahead? Mainly one thing: November 2012.
If the State of the Union disappointed policy wonks, it’s because the Obama presidency has entered full campaign mode. His State of the Union was a road map to a second term. Draw the Republican Congress toward the post-November spirit of reform on spending, entitlements and taxes, let these ideas twist in the wind of endless negotiation, pocket the “bipartisan” effort, and run out the clock to a three-point November victory.
After ObamaCare and financial re-regulation, the remaining Obama years are looking like a presidency to nowhere. Even if you believe in green jobs, that’s an industry off in the future. Beyond the Keynesian liniment oil of public spending, he’s offering almost nothing for the here-and-now economy.
Rep. Paul Ryan, in his response, was right that “our nation is approaching a tipping point.” Either the government leads the economy, as proposed in the last two-thirds of Mr. Obama’s State of the Union, or it will be driven into the 21st century by the nation’s pioneer legacy of individual innovation, as he seemed to say in the first third of the speech.
If you belief it’s the latter, six more years of chasing Mr. Obama’s idea of investments will be a waste of precious time. The Super Bowl of global competition is well into the first quarter. The future is now.
The November election sent a clear message to Washington: less government, less debt, less spending. President Obama certainly heard it, but judging from his State of the Union address, he doesn’t believe a word of it.
The people say they want cuts? Sure they do – in the abstract. But any party that actually dares carry them out will be punished severely. On that, Obama stakes his re-election.
No other conclusion can be drawn from a speech that didn’t even address the debt issue until 35 minutes in. And then what did he offer? A freeze on domestic discretionary spending that he himself admitted would affect a mere one-eighth of the budget.
Obama seemed impressed, however, that it would produce $400 billion in savings over 10 years. That’s an average of $40 billion a year. The deficit for last year alone was more than 30 times as much. And total federal spending was more than 85 times that amount. A $40 billion annual savings for a government that just racked up $3 trillion in new debt over the last two years is deeply unserious. It’s spillage, a rounding error.
As for entitlements, which are where the real money is, Obama said practically nothing. He is happy to discuss, but if Republicans dare take anything from granny, he shall be Horatius at the bridge.
This entire pantomime about debt reduction came after the first half of a speech devoted to, yes, new spending. One almost has to admire Obama’s defiance. His 2009 stimulus and budget-busting health care reform are precisely what stirred the popular revolt that delivered his November shellacking. And yet he’s back for more.
It’s as if Obama is daring the voters – and the Republicans – to prove they really want smaller government. He’s manning the barricades for Obamacare and he’s here with yet another spending – excuse me, investment – spree. To face down those overachieving Asians, Obama wants to sink yet more money into yet more road and bridge repair, more federally subsidized teachers – with a bit of high-speed rail tossed in for style. That will show the Chinese.
And of course, once again, there is the magic lure of a green economy created by the brilliance of Washington experts and politicians. This is to be our “Sputnik moment,” when the fear of the foreigner spurs us to innovation and greatness of the kind that yielded NASA and the moon landing.
Apart from the irony of this appeal being made by the very President who has just killed NASA’s manned space program, there is the fact that for three decades, since Jimmy Carter‘s synfuel fantasy, Washington has poured billions of taxpayer dollars down a rat hole in vain pursuit of economically competitive renewable energy.
This is nothing but a retread of what used to be called industrial policy, government picking winners and losers. Except that in a field that is not nearly technologically ready to match fossil fuels, we pick one loser after another – from ethanol, a $6 billion boondoggle that even Al Gore admits was a mistake, to the $41,000 Chevy Volt that only the rich can afford (with their extended Bush tax cuts, of course).
Perhaps this is all to be expected from Democrats – the party of government – and from a President who from his very first address to Congress has boldly displayed his zeal to fundamentally transform the American social contract and place it on a “New Foundation” (an Obama slogan that never took). He’s been chastened enough by the election of 2010 to make gestures toward the center. But the State of the Union address revealed a man ideologically unbowed and undeterred. He served up an insignificant spending cut, yet another (if more modest) stimulus and a promise to fight any Republican attempt to significantly shrink the size of government.
Indeed, he went beyond this. He tried to cast this more-of-the-same into a call to national greatness, citing two Michigan brothers who produce solar shingles as a stirring example of rising to the Sputnik moment.
“We do big things,” Obama declared at the end of an address that was, on the contrary, the finest example of small-ball Clintonian minimalism since the days of school uniforms and midnight basketball.
From the moon landing to solar shingles. Is there a better example of American decline?
Charles Krauthammer‘s column, which appears on Fridays, is syndicated by the Washington Post Writers Group. Formerly a resident and then chief resident in psychiatry at Massachusetts General Hospital, he joined The New Republic as a writer and editor in 1981. He is a contributing editor to The Weekly Standard and The New Republic. He is the recipient of numerous awards, including the National Magazine Award for essays and criticism in 1984, the Pulitzer Prize for distinguished commentary in 1987 and the Bradley Prize in 2004.
by Sarah Palin on Thursday, January 27, 2011 at 3:22am
The President’s State of the Union address boiled down to this message: “The era of big government is here as long as I am, so help me pay for it.” He dubbed it a “Winning The Future” speech, but the title’s acronym seemed more accurate than much of the content.
Americans are growing impatient with a White House that still just doesn’t get it. The President proves he doesn’t understand that the biggest challenge facing our economy is today’s runaway debt when he states we want to make sure “we don’t get buried under a mountain a debt.” That’s the problem! We are buried under Mt. McKinley-sized debt. It’s at the heart of what is crippling our economy and taking our jobs. This is the concern that should be on every leader’s mind. Our country’s future is at stake, and we’re rapidly reaching a crisis point. Our government is spending too much, borrowing too much, and growing too much. Debt is stifling our private sector growth, and millions of Americans are desperately looking for work.
So, what was the President’s response? At a time when we need quick, decisive, and meaningful action to stop our looming debt crisis, President Obama gave us what politicians have for years: promises that more federal government “investment” (read: more government spending) is the solution.
He couched his proposals to grow government and increase spending in the language of “national greatness.” This seems to be the Obama administration’s version of American exceptionalism – an “exceptionally big government,” in which a centralized government declares that we shall be great and innovative and competitive, not by individual initiative, but by government decree. Where once he used words like “hope” and “change,” the President may now talk about “innovation” and “competition”; but the audacity of his recycled rhetoric no longer inspires hope.
Real leadership is more than just words; it’s deeds. The President’s deeds don’t lend confidence that we can trust his words spoken last night.
In the past, he promised us he’d make job creation his number one priority, while also cutting the deficit, eliminating waste, easing foreclosures in the housing markets, and making “tough decisions about opening new offshore areas for oil and gas development.” What did we get? A record $1.5 trillion deficit, an 84% increase in federal spending, a trillion dollar stimulus that stimulated nothing but more Tea Party activism, 9+% unemployment (or 17% percent if you include those who have stopped looking for work or settled for part time jobs), 2.9 million home foreclosures last year, and a moratorium on offshore drilling that has led to more unemployment and $100 dollar a barrel oil.
The President glossed over the most important issue he needed to address last night: spending. He touched on deficit reduction, but his proposals amount to merely a quarter of the cuts in discretionary spending proposed by his own Deficit Reduction Commission, not to mention the $2.5 trillion in cuts over ten years suggested by the Republican Study Committee. And while we appreciate hearing the same President who gave us the trillion dollar Stimulus Package boondoggle finally concede that we need to cut earmarks, keep in mind that earmarks are a$16 billion drop in the $1.5 trillion ocean that is the federal deficit. Budget cuts won’t be popular, but they are vitally necessary or we will soon be a bankrupt country. It’s the responsibility of a leader to make sure the American people fully understand this.
As it is, the American people should fully understand that when the President talks about increased “investments” he’s talking about increased government spending. Cut away the rhetoric and you’ll also see that the White House’s real message on economic reform wasn’t one of substantial spending cuts, but of tax increases. When the President talks about simplifying the tax code, he’s made it clear that he’s not looking to cut your taxes; he’s looking for additional tax revenue from you. The tax “simplification” suggested by the President’s Deficit Reduction Commission would end up raising taxes by $1 trillion over the next decade. So, instead of bringing spending down in line with revenue, the President wants to raise our taxes to pay for his massive spending increases. It’s tax and spend in reverse: spend first, tax later.
And the Obama administration has a lot of half-baked ideas on where to spend our hard-earned money in pursuit of “national greatness.” These “investments,” as the President calls them, include everything from solar shingles to high speed trains. As we struggle to service our unsustainable debt, the only thing these “investments” will get us is a bullet train to bankruptcy.
With credit ratings agency Moody’s warning us that the federal government mustreverse the rapid growth of national debt or face losing our triple-A rating, keep in mind that a nation doesn’t look so “great” when its credit rating is in tatters.
Of course, it’s nice to give a speech calling for “investment” and “competition” in order to reach greatness. It’s quite another thing to advocate and implement policies that truly encourage such things. Growing the federal government is not the answer.
Take education for example. It’s easy to declare the need for better education, but will throwing even more money at the issue really help? As the Cato Institute’s Michael Tanner notes, “the federal government has increased education spending by 188 percent in real terms since 1970 without seeing any substantial improvement in test scores.” If you want “innovation” and “competition,” then support school choice initiatives and less federal control over our state and local districts.
When it comes to energy issues, we heard more vague promises last night as the President’s rhetoric suggested an all-of-the-above solution to meeting our country’s energy needs. But again, his actions point in a different direction. He offers a vision of a future powered by what he refers to as “clean energy,” but how we will get there from here remains a mystery. In the meantime, he continues to stymie the responsible development of our own abundant conventional energy resources – the stuff we actually use right now to fuel our economy. His continued hostility towards domestic drilling means hundreds of thousands of well-paying jobs will not be created and millions of Americans will end up paying more at the pump. It also means we’ll continue to transfer hundreds of billions of U.S. dollars to foreign regimes that don’t have America’s interests at heart.
On the crucial issue of entitlement reform, the President offered nothing. This is shocking, because as he himself explained back in April 2009, “if we want to get serious about fiscal discipline…we will have to get serious about entitlement reform.” Even though the Medicare Trust Fund will run out of funds a mere six years from now, and the Social Security Trust Fund is filled mainly with IOUs, the President opted to kick the can down the road yet again. And once again, he was disingenuous when he suggested that meaningful reform would automatically expose people’s Social Security savings to a possible stock market crash. As Rep. Paul Ryan showed in his proposed Roadmap, and others have explained, it’s possible to come up with meaningful reform proposals that tackle projected shortfalls and offer workers more options to invest our own savings while still guaranteeing invested funds so they won’t fall victim to sudden swings in the stock market.
And what about that crucial issue confronting so many Americans who are struggling today – the lack of jobs? The President came to office promising that his massive, multi-trillion dollar spending programs would keep unemployment below 8%; but the lack of meaningful, pro-free market reforms in yesterday’s speech means his legacy will almost certainly be four years of above 8% unemployment, regardless of how much he increases federal spending (or perhaps I should say because of how much he’s increased it).
Perhaps the most nonsensical bit of double-speak we heard last night was when the President said that hitting job-creators with a tax increase isn’t “punishing their success. It’s about promoting America’s success.” But government taking more money from the small business entrepreneurs who create up to 70% of all jobs in this country is not “promoting America’s success.” It’s a disincentive that will result in less job creation. It is, in fact, punishing the success of the very people who created the innovation that the President has supposedly been praising.
Despite the flowery rhetoric, the President doesn’t seem to understand that individuals make America great, not the federal government. American greatness lies in the courage and hard work of individual innovators and entrepreneurs. America is an exceptional nation in part because we have historically been a country that rewards and affirms individual initiative and offers people the freedom to invest and create as they see fit – not as a government bureaucrat does. Yes, government can play an appropriate role in our free market by ensuring a level playing field to encourage honest competition without picking winners and losers. But by and large, government should get out of the way. Unfortunately, under President Obama’s leadership, government growth is in our way, and his “big government greatness” will not help matters.
Consider what his “big government greatness” really amounts to. It’s basically a corporatist agenda – it’s the collaboration between big government and the big businesses that have powerful friends in D.C. and can afford to hire big lobbyists. This collaboration works in a manner that distorts and corrupts true free market capitalism. This isn’t just old-fashioned big government liberalism; this is crony capitalism on steroids. In the interests of big business, we’re “investing” in technologies and industries that venture capitalists tell us are non-starters, but which will provide lucrative returns for some corporate interests who have major investments in these areas. In the interests of big government, we’re not reducing the size of our bloated government or cutting spending, we’re told the President will freeze it – at unsustainable, historic levels! In practice, this means that public sector employees (big government’s staunchest defenders) may not lose jobs, but millions of Americans in the private sector face lay offs because the ever-expanding government has squeezed out and crippled our economy under the weight of unsustainable debt.
Ronald Reagan said, “You can’t be for big government, big taxes, and big bureaucracy and still be for the little guy.” President Obama’s proposals last night stick the little guy with the bill, while big government and its big corporate partners prosper. The plain truth is our country simply cannot afford Barack Obama’s dream of an “exceptionally big government” that may help the big guys, but sticks it to the rest of us.