Obama pushes for new economic growth
In his State of the Union address, the president calls for tax breaks for jobs created at home, a boost in the minimum wage and infrastructure spending. Markets are little changed.
He also called on Congress to pass legislation that would head off across-the-board budget cuts starting on March 1. What's been called sequestration was negotiated in a 2011 budget bill. No one wanted sequestration to happen, but it looks increasingly like it will.
"These sudden, harsh, arbitrary cuts would jeopardize our military readiness," he warned in the annual State of the Union address. "They'd devastate priorities like education, energy and medical research. They would certainly slow our recovery, and cost us hundreds of thousands of jobs."
The president offered even less support for the idea of making defense spending exempt from the cuts. "That idea is even worse," he said. "We can't ask senior citizens and working families to shoulder the entire burden of deficit reduction while asking nothing more from the wealthiest and most powerful."
Coming after the sequestration fight will be a battle over a spending plan and then another over raising the nation's debt ceiling. If it can't be raised, the administration would have to shut down non-essential activities and spending. That could send the economy into recession.
"The greatest nation on Earth cannot keep conducting its business by drifting from one manufactured crisis to the next," Obama said. "Let's agree, right here, right now, to keep the people's government open, pay our bills on time, and always uphold the full faith and credit of the United States of America."
While the president's speech focused on domestic economic issues, the question when he was finished -- and it's a big one -- is whether any of the proposals in his State of the Union address will be enacted, including an alternative to sequestration.
Most of the big proposals he has offered since the 2010 elections have been blocked by the Republican-controlled House of Representatives.
The speech appeared to have little effect on financial markets. Futures trading suggests small gains at the open for the major U.S. stock indexes on Wednesday. On Tuesday, the Dow Jones Industrial Average ($INDU) closed at 14,019, its highest level since Oct. 12, 2007.
The president's address lasted about an hour. Predictably, Democrats mostly cheered the president's proposals while Republicans clapped in a desultory way -- if at all.
The president argued for aggressive federal efforts to lift perhaps 15 million people out of poverty by raising the minimum wage to $9 an hour, from $7.25 an hour, by the end of 2015.
That will almost certainly generate opposition from many small businesses who responded to the Supreme Court's ruling upholding the Affordable Care Act -- Obamacare -- by laying workers off or limiting hours to avoid paying for health insurance.
He also pushed for new investments in preschool programs as well as math and science education and community colleges to equip workers with new skills. He proposed to use revenues from oil and gas deposits on public lands to fund an Energy Security Trust that will drive new research and technology. Among its goals: "To shift our cars and trucks off oil for good."
He also called for comprehensive immigration reform.
At the same time, he announced that the United States would enter into negotiations for a free trade agreement with the European Union.
He promised "a new challenge to redesign America's high schools so they better equip graduates for the demands of a high-tech economy."
Under the proposal, the government would "reward schools that develop new partnerships with colleges and employers, and create classes that focus on science, technology, engineering and math -- the skills today's employers are looking for to fill jobs right now and in the future."
Same book. Same page, again, again, and again. Tax, borrow, and spend. No need to watch. You heard it all before. This guy excels at one thing---spending your money. Get what he can now and send your kids the bill later. There's no distinct correlation between what he says and what he does. He rambled on for years about the fair share and 2% kick----got what he could out of that. Now. it's guns, guns, guns. He'll just work the sh!t out of that until we give him something to shut him up. 16 trillion and counting with no end in sight. Talk about a bubble bursting----wait until this one goes.
Sounds like another "Shovel Ready" jobs fiasco to me. Obama keeps talking about how everyone should pay taxes etc. but why is it that large corporations continue to not only avoid paying taxes but get a refund back all due to accounting methods so it's time to close the loopholes!
I agree that we need to rebuild the middle class but in order to do so we need to create good paying jobs with benefits which in the past came from manufacturing. Now..many of these jobs have been outsourced to countries where the average worker makes around $150 per month so we will never see those jobs coming back to America. The President keeps talking about closing the tax loopholes which give corporations incentives to outsource jobs but that hasn't happened so the jobs continue to move offshore. Why doesn't the gov just subsidize the companies payroll to keep jobs in America to help offset the labor differential? Personally, with a few exceptions it seems like the SOTUA was just another rehash of past speeches and unfullfilled promises.
Did anyone catch the speech to the politbureau last evening. The leader did a masterful job of presentling the party line. The applause and appreciation seemed genuine. I think all in attendance felt their postions would now be secure for at least another few years. Our leader artfully presented a case why citizens should not even think of the need of second guessing him or his staff. All the wonderful people were in attendance and I for one felt so secure and proud of these honest, talented, and dedicated employees we are so fortunate to have. And one more thing before I finish. If you buy this used car I am very confident it will run quite well for at least 100,000 miles. Why I bet you will not even need to put gas or oil in it. I am sure my staff will be so willing to help you if any unforseen issues should come up.... have a wonderful day.
The democrats have the same strategy since the 60's. Spend , spend , and spend some more, give freebies to slackers and dumb azzes, and tax the responsible and successful.
It used be " a chicken in every pot". Not its a safety net for every tragedy, accident, and dumb decision they make. Democrats have traded personal responsibilty for government dependency, but we pay for it.
The simple minds of the 51% who voted for him like the wonderful speeches from this man. They send him off to Hawaii for 17 days with hopes he enjoys every bit of it on our dime. They marvel at Michelle Obamas jacket when she met with the Queen of England.
But these people also do not look at the results of his speeches, inaction.
For the Democrats fight for the middle class! Then stop talking and prove it.
We are losing the the term of "Beacon of opportunity" to the rest of the world. Our dear leader is not wanting to restore greatness to the Country, only to perpetuate equality. If there is only equality to strive for, then how do people become better? Why would they become better?
Rubio has the ability to inspire EVERY AMERICAN to greatness just as Reagan did. He is no Reagan at this time, but we need Conservative approaches to reel in Government at this moment. Not Republican, not Tea Party, but Conservative. Rubio has to, and will grow. If you read some of his quotes, they are Reaganesgue.
God, give us the strength right now.
Seriously, Obama has spent the last 4 years championing growth of government, while at the same time doing everything he can to sabotage the efforts of the only people who can actually create real, sustainable economic growth - the producers in the private sector.
It's a spending problem, stupid!
And we thank you, just keep paying that SS, for us; We really appreciate it...
This is starting to get real boring....It's been Real, well almost.?.....Ciao.
That's not EBONICS....You can't handle the EBONICS !! LOL.
That's just 'HOOD TALK from where you came,..yuk,yuk.
FAAAAACK YOU, DARKIE..My oh my, I thought those Meds only took 20 minutes to calm you down?
Hurry, hurry.....You had better take another handful, don't stroke yourself...yuk,yuk,yuk,LOL.
After 4+ years we are still blaming Obama for Bush's FIASCO, we don't hear much from Shrub do we??
I wonder, do YOU ever wonder WHY..???
As far as these and all "pork projects"...THEY HAVE went on for Decades....Old NEWS.
Doesn't matter whose Administration...I don't give anyone a "free ride" on those...
I don't like it when any Administration jeopardizes the Health of a Nation..NEVER HAVE OR WILL.
ABS, isn't about your NAP TIME...and YOUR LITTLE TEABAG,har,har,har.
Solyndra and a couple others is about all you've got...Probably had as much to do with State or District Politics as it did with this Administration ??
Just another "pork sandwich" that was given away by our Government....Because all of the Americans want to get off of the Big Oil Servitude.
You can't have it both ways, and only blame "one person."
Seems that only a few years back..That Big oil was having a field day with us...But so soon we had OPEC banging on our door yelling help, and their butt buddies put us all in jeopardy; Started a couple un-funded, un-founded Wars...Got a lot of our kids killed...But OPEC wasn't giving any discounts.....Yeah SO SOON, that 49% want to forget...??
Copyright © 2014 Microsoft. All rights reserved.
Sheldon Lavin's company is the parent of the Chinese entity under investigation by Shanghai authorities for using expired meat.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.