Obama was at the Brookings Institution today to deliver his speech on the state of the economy. The speech was about what you’d expect: self-congratulations on the stimulus bill and all the fantastic things it’s done, some new ideas on job creation and infrastructure spending (sans price tag, of course) and a plea for more patience as we work toward fixing the problems of the previous administration (it’s always good to remind everyone again that this was an inherited problem).
The 2010 midterms are right around the corner, a point that isn’t lost on the O-Administration. And it wasn’t lost in this speech. The beginning of his speech retold the story of how he formed his economic team and the lay of the land as he took office. Check it:
“We were losing an average of 700,000 jobs each month, equivalent to the population of the state of Vermont. The fear among economists across the political spectrum was that we were rapidly plummeting toward a second Great Depression. So, in the weeks and months that followed, we undertook a series of difficult steps to prevent that outcome. And we were forced to take those steps largely without the help of an opposition party which, unfortunately, after having presided over the decision-making that led to the crisis, decided to hand it over to others to solve.”
Oh snap.
Further into the speech, Obama addressed recent criticisms about the exploding deficit:
“In reality, the deficit had been building dramatically over the previous eight years. Folks passed tax cuts and expensive entitlement programs without paying for any of it – even as health care costs kept rising, year after year. As a result, the deficit had reached $1.3 trillion when we walked into the White House. And I’d note: these budget busting tax cuts and spending programs were approved by many of the same people who are now waxing political about fiscal responsibility while opposing our efforts to reduce deficits by getting health care costs under control. It’s a sight to see.”
Double snap.
Some other interesting tidbits from the speech: An initiative to simulate the successful “Cash for Clunkers” program, this time providing incentives for weatherizing homes: Caulk your home, get a rebate. Also, there is approximately $200 billion in savings from the TARP program. Obama wants to direct it to small businesses to spur job growth. Republicans want to put that money back into the Treasury.
Another interesting point: Obama will push for suspending capital gains tax for small businesses for one year. Wha? Cutting more taxes (particularly politically loaded ones like capital gains) after just slamming the GOP for cutting taxes too far? Um, OK. Sounds like a move to the center for those midterm elections. Expect more of these centrist initiatives as he rolls out his Stimulus 2.0.
