Recession Survival Tips

At times funny, at times biting, and often self-congratulating, Mr. Obama’s State of the Union speech was a reminder of how his administration brought us back from the brink and how he hopes to help us achieve those soaring heights that seem ever so distant.  Mr. Obama was not shy about taking credit for staving off a financial meltdown and posited that his administration had created or saved between 1.5 million and 2 million jobs.  This is a dubious number that has been bandied about by a few administration officials.  Once President Obama rattled off a laundry list of mild accomplishments, he turned his attention toward the future.

Apparently, Mr. Obama still believes in the power of bipartisanship.  He scolded both parties for playing Washington games.  He encouraged Democrats to stiffen their spine, but still did not provide any direction about how to handle the elephant in the room: healthcare.  At this point, even the most ardent progressives realize the necessity of passing a healthcare bill.  However, few concrete steps have been taken to actually pass the bill.  Mr. Obama echoed many campaign promises, such as creating a green economy and passing legislation designed to help the middle class.  Yet, the deficit continues to grow and there seems to be little Congressional will to pass measures designed to increase spending.

Ironically, Mr. Obama called for a freeze on domestic spending.  Calling for the federal government to “tighten its belt” is not only bad economic policy, but also another conciliatory nod to the Republicans.  Who knows, the right is slamming the speech this morning and the left seems to be willing to give him some time to get his agenda passed.  The Democrats are warring with each other and Mr. Obama seems to be unwilling to get his hands dirty.  We know President Obama can give a good speech.  Nevertheless, the base is beat down and more than words will be needed to inspire the confidence that Mr. Obama rode into the White House.  Although things are not as bad as they could have been, it is going to be a long slog back to the top.