Tags: Obama | work | wage | Congress

Obama's Address Mixes Sound and Foolish Proposals, Laced With Demagoguery

Wednesday, 29 Jan 2014 09:18 AM

By Peter Morici

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
Promising to address inequality and strengthen the middle class, President Obama's State of the Union address combined sound and foolish proposals, laced with good old-fashioned demagoguery.

Despite nearly five years of economic recovery, the fortunes of working Americans have decidedly worsened. The president's policies should carry considerable culpability and bear correction.

Instead, he pronounced upward mobility has stalled — when non-partisan economic studies show that's not true — and insists the wealthy should pay to balance the accounts.

Editor’s Note: These 38 Dates Are Key to Bagging $313,038

Thanks to the president's free-trade policies, multinational corporations and talented Americans have achieved huge income gains selling knowhow and services around the globe. Meanwhile, the stuff ordinary Americans make is increasingly shut out of the fastest-growing overseas markets.

GM boasts some of the best-selling cars in China, but high tariffs, regulations and an artificially cheap currency keep out U.S.-made vehicles. The president refuses to effectively confront protectionism throughout Asia, denying Americans good-paying jobs.

Obamacare is driving up health insurance costs. Along with higher taxes, that curbs domestic purchases, slows economic recovery and destroys jobs. Restrictions on offshore petroleum development, costly new banking and environmental regulations and a shortage of lending by regional banks make it tougher for small businesses to expand and add employees.

No surprise, some 20 million Americans can't find full-time work, and the inflation-adjusted wages of ordinary workers are falling. Factoring in higher state and local taxes, most families are much worse off than they were five years ago, and record numbers of Americans depend on food stamps.

Now Obama wants to double down on failed initiatives. Instead of asking Congress to suspend the mandate that all Americans obtain excessive and expensive health insurance, he is launching an aggressive campaign to persuade young Americans to buy overpriced policies.

Presidential initiatives to build a national network of manufacturing innovation centers, strengthen infrastructure, federal job training and research and development and rapidly expand industrial use of clean natural gas have great merit. Yet, no matter how strong the products and productive their workers, America's factories need more customers at home and abroad to succeed, grow and raise wages.

Unfortunately, the president proposes to push forward with new trade agreements in Asia that will further open U.S. markets to foreign competition without getting enforceable enough concessions on discriminatory regulations and currency manipulation that keep out American products and impoverish once-proud U.S. blue-collar workers.

He wants Congress to approve a $10.10 an hour minimum wage. That's a 39 percent jump, and hardly justified by the 9 percent inflation since the federal floor was set in July 2009. Such an increase would compel McDonald's to aggressively implement methods to cut employees. Smaller restaurants, whose customers simply cannot afford to pay another $2 for lunch, would close, and the same would repeat in other industries.

Comprehensive immigration reform would help. Bringing undocumented workers out of the shadows would raise the wages they command, and those of citizens competing with them.

Republicans in Congress want a deal that really secures our borders from another surge of illegal immigrants. However, given the president's poor record of sticking to his word in budget negotiations, critical members like Sen. Marco Rubio, R-Fla., are reluctant to trust him.

All this illustrates the central reason for Washington's inaction on crucial issues.
The president dodges responsibility for the failures of his ideologically motivated agenda by asking Congress to tax the "1 percent" for simply exploiting conditions he created.

Americans judge the president by their own deteriorating conditions, and his credibility on economic issues is falling precipitously.

Members of Congress simply don't trust him to address problems as the facts require and keep his word when it counts.

Editor’s Note: These 38 Dates Are Key to Bagging $313,038

© 2014 Moneynews. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Obama Could Stifle North Korea's Shakedown of Sony

Monday, 22 Dec 2014 09:08 AM

The American people now have a censor , North Korean Dictator Kim Jong-un. And they can thank President Obama's failure  . . .

US Economy Can Handle Higher Interest Rates

Thursday, 18 Dec 2014 08:51 AM

The U.S. economy can handle higher interest rates, and the Federal Reserve's policymaking committee has signaled such a  . . .

Fed's Credibility at Stake

Monday, 15 Dec 2014 07:59 AM

Federal Reserve policymakers meet Tuesday and Wednesday to discuss when to raise interest rates and how they will commun . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved