State of the Union – Analysis

In his State of the Union address, Barack Obama claimed,

“We have to make America the best place on Earth to do business. ... That’s how our people will prosper. That’s how we’ll win the future.”

“We know what it takes to compete for the jobs and industries of our time.”

Oh really?

Spending Mr. Obama has substituted the word "investment" for spending as if that will make us all feel better. As proven time and again the Government is not a very good investor.

1. Federal K-12 education spending has grown 219 percent faster than inflation over the past decade, yet student test scores have stagnated;
2. Thirty years of federal energy spending has failed to significantly improve the alternative energy market;
3. Massive increases in federal transportation spending have been diverted into earmarks, bike paths, and museums or allocated to budget-busting transit program.

Government should concentrate on less spending and deficit reduction and allow the private sector to invest allowing for free competition, innovation, job creation and profit.

Deficits

Current government spending is at the crisis stage, unsustainable and unaffordable. Obama announced the creation of the National Commission on Fiscal Responsibility and Reform last year but when he received the commission’s final report he did like the consensus and turned away from implementing its recommendations.

The burden of fiscal responsibility from the federal government now falls on Congress.

Education

No Child Left Behind is broken but Barack Obama still believes the role of the federal government in education is necessary. There was no discussion of school choice or voucher programs so students and families could choose their education venue. The highly effective D.C. Opportunity Scholarship Program, a potential model for school voucher programs that work, is now sputtering and ready to die because Barack Obama announced early on in his administration this success would be canceled. Yet Mr. Obama's children were placed in the same school less fortunate children will be removed from because of Obama's choice.

Energy

Last year Solyndra and Evergreen Solar were presented as models as the future in energy independence but only after receiving $535 million in government loans from taxpayer money.

1. Solyndra withdrew its initial public offering because it got a sub-par review from an independent auditor;
2. One year after getting their half-billion dollars, Solyndra closed a factory and got rid of nearly 200 jobs.

Private sectors jobs do not remain sustainable when they have been created on the backs of government subsidies. New energy sources, creation of real jobs, and development of innovative technology comes from a competitive market in the private sector through private investments not government handouts.

Entrepreneurship

Government initially invented the Internet, developed computer chips and GPS based on the need and investment to create more national security not as programs for commercial demand.

When the private sector and entrepreneurs attained access to the basic framework of these government inventions they laid the groundwork for successful commercialization and remain the model that demonstrates free market competition promotes ideas and innovation. Government does not define the free market the private sector does. Mr. Obama doesn't wish to support research and development but thinks government can drive the forces of commercialization and markets, a false belief.

Central planning is the real dream of Barack Obama and his Progressive ilk and he demonstrated his dishonesty by contradicting himself in his speech in front of the world.

First he said:

“None of us can predict with certainty what the next big industry will be or where the new jobs will come from.”

A few minutes later he said:

“We’ll invest in biomedical research, information technology, and especially clean energy technology … and create countless new jobs for our people.”

"We" is Obama speak for more government not the private sector.

American exceptionalism was founded on the principle that free individuals innovate and compete and profit and create sustainable jobs and a vibrant economy. It's the people and American free spirit that creates American exceptionalism not energy Czars or government partnerships with the likes of General Electric and their CEO the new Czar of the President’s Council on Jobs and Competitiveness.

In reality, the State of the Union is in a financial mess, a bureaucratic nightmare of disproportionate size only producing debt yet promising what only a free private sector can deliver. Mr. Obama continues his Progressive mantra of big government and continuation of his belief that only government knows better.

Barack Obama, no leadership only promises filled with false hope. Indeed!

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