State of the Union: 2010
“I hated it. You hated it. It was about as popular as a root canal.” - President Barack Obama, first State of the Union address
I’m watching the State of the Union a second time. Take that as an indication that I remain solidly in U-6 status, because no one working full time could schedule such a commitment. Seriously — if the President is a metonymic icon of the country, then this must be a moment of national loquacity.
The disregard for brevity would be a bit less galling were the speech not littered with the same rhetorical devices to which we’ve grown accustomed (e.g. “I got a letter from” [nondescript personage]; “…like the people in” [nondescript municipality]; [invocation][historical event]) or so strongly influenced by conservative talking points.
Sure, there were a few shots at actual Congressional Republicans. There was defense of the American Recovery and Reinvestment Act (i.e. stimulus bill). There was a jab at the obstructionist party’s refusal to applaud tax cuts. There was the crack about “those who disagree with the overwhelming scientific evidence of climate change.” If you were watching in HD, then you may have noticed the President looking satirically orange in mockery of Senate Minority Leader John Boehner. Such things are all well and good.
It’s the idiocy that loses me. Much of that comes in the proposals to help small businesses create jobs.
The idea of funneling repaid TARP monies through community banks to give “small businesses the credit they need to stay afloat,” for instance, strikes me as ill-conceived. Haven’t we gotten over the credit crisis hump? I mean, I may bad-mouth efficient market proponents, but I’m pretty confident that credit-worthy enterprises are receiving the money for which they can reasonably vouch from their local lending institutions. Those that need more money to “stay afloat,” as the President says, are bad credit risks. If you want to subsidize untenable and arguably tenable small businesses, then don’t call it a loan program. Give it a catchy name like the Paying Off the Upper Middle Class Act (POUMCA).
Another portion of the President’s plan to create jobs includes a raft of tax breaks. There will be a “small business tax credit” for businesses that hire new workers OR raise wages, an end to “capital gains taxes on small business investment,” and a tax incentive for all businesses to make capital investments. Setting aside the arguments that this is supply-side silliness, small business and capital investments ought be undertaken on their own merits, and — wait, did I mention POUMCA’s catchy name? — any raft of tax cuts would still seem to undermine the President’s proposal to fight deficit expenditures by enacting a 3-year spending freeze at 2011 levels.
We used to have a dim-witted Texan who cut taxes while keeping spending at or above its previous rate. If we wanted someone like that, then we could just tack up “help wanted” fliers at AA meetings. Instead, we have years-long campaigns culminating in national elections. You do the math.
Okay, Okay — maybe I’m being too hard on POUMCA. It’s just that tax cuts crease me. Raising taxes back to their proper levels once the crisis is over will be difficult if not impossible, and we’re going to need a whole lot of revenue if we’re ever going to put in place the kind of social safety net necessary to facilitate an adequately liquid labor market. I wonder how difficult it is to gain legal alien status in Denmark.
By the way, Mr. President, when you argue for the nation to “seek new markets aggressively, just as our competitors are,” you’re embodying the Marxian explanation of capitalist imperialism. That’s just a heads up.
Also, as long as we’re talking about things that need to happen to facilitate labor market liquidity, let’s stop treating home ownership as a sacred cow. If the government can really get banks to refinance questionable mortgages in a tenable manner, then that’s great. Otherwise, stop artificially inflating the housing market with things like the first-time home buyer tax credit. As many nifty things as that does relating to imaginary paper wealth, it also keeps air in the system. Let the housing market find its natural equilibrium, already.
All right, that’s enough criticism. I’ve got something like 300 words left, and I’ll try to use them positively.
The proposal that the government directly administer student loans is sound. It should’ve passed long ago. The same goes for capping the percentage of earnings a person will be billed for student loans, forgiving those loans roundabouts middle age, and forgiving them for public service. Even the $10k college tuition tax credit rubs me the right way, and you know I’m pro-tax. Facilitating extensive post-secondary education is egalitarian, meritocratic, and a righteous investment in human resources.
We didn’t get any good cap-and-trade sales pitches, but there was some push for green jobs and the like. Obama also mailed in a few lines about the importance of health care reform. It’s not that I don’t believe him; it’s just too mealy-mouthed. Say something to the effect of “The train’s leaving the station, and you [epithet]s will want to be on board.”
Did I mention the yada yada hope yada yada change part? Two years ago, it was moving. Last year, it was motivational. That was when Obama was giving Obama speeches. You might remember them as being relatively brief, measurably stirring, and short on specifics. As many others have mentioned, this State of the Union was more of a Clinton speech. It ran long, there were some good punch lines, and sometimes the excrement and ingratiation piled high enough that a person struggled to maintain attention.
Addendum: How creepy was the rebuttal from Governor Bob McDonnell of Virginia? As if Gov. Bob hadn’t already gained the imprimatur of secession via his shadow State of the Union set in the capital of the Confederacy, he had to maneuver his speech even further toward anarchy after Obama had been so Republican-ish (circa 1990, maybe). After the constant invocations of the Founders, Gov. Bob’s line about “equality of opportunity” made a person wonder whether he’s aware that equality includes many more classes of people than it did when those landowning white men decided to have their slaves build a capital in Virginia’s swamp land.