A New Way Forward – Restore the Economy in the Public's Interest

Last night, Obama gave his first State of the Union. Today, pundits have recreated what happened last night and I don’t mean in the cliche way. As Elizabeth Loftus, the first woman psychologist to make the 100 most influential researchers in psychology in the 20th century (at number 58! and no more) has shown that our memories are constantly revised as we receive new misinformation or commentary of events passed, we must evaluate the nature of our false memories of Obama’s speech. It’s hard to maintain an accurate picture of the past as we relive these memories in the context of what others think about the past, so we must try to shut out what the pundits have to say and remember for ourselves what came to pass last night.

ANWF wants an economy in the public’s interest — breaking up the banks means we stop funding and favoring the megabanks, stop their price cartel, and, instead, open up a level playing field to small and medium-sized banks and businesses who can create the sustainable and good jobs that leads to financial and perhaps, intellectual freedom for the many (also research has shown that small and medium banks give out most of the small business loans and invest in the community, have better rates because they don’t control pricing). Thus, if Obama is serious about making jobs his number one concern, then I think he will be on track to do good for the public interest. Still, we’re going to have to not take him on his word.

From his SoU, we’ll examine the three parts of economic reforms proposed.

Here are the plans for jobs:

..That is why jobs must be our number-one focus in 2010, and that’s why I’m calling for a new jobs bill tonight. (Applause.) Now, the true engine of job creation in this country will always be America’s businesses. (Applause.) But government can create the conditions necessary for businesses to expand and hire more workers. We should start where most new jobs do, in small businesses, companies that begin when…(APPLAUSE) … companies that begin when an entrepreneur — when an entrepreneur takes a chance on a dream or a worker decides it’s time she became her own boss.
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So tonight, I’m proposing that we take $30 billion of the money Wall Street banks have repaid and use it to help community banks give small businesses the credit they need to stay afloat. (APPLAUSE) I’m also proposing a new small-business tax credit, one that will go to over 1 million small businesses who hire new workers or raise wages. (APPLAUSE) While we’re at it, let’s also eliminate all capital gains taxes on small-business investment and provide a tax incentive for all large businesses and all small businesses to invest in new plants and equipment. (APPLAUSE)

Next, we can put Americans to work today building the infrastructure of tomorrow… And to encourage these and other businesses to stay within our borders, it is time to finally slash the tax breaks for companies that ship our jobs overseas and give those tax breaks to companies that create jobs right here in the United States of America.
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Next, we need to encourage American innovation. Last year, we made the largest investment in basic research funding in history -– (applause) — an investment that could lead to the world’s cheapest solar cells or treatment that kills cancer cells but leaves healthy ones untouched.
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Third, we need to export more of our goods. (Applause.) Because the more products we make and sell to other countries, the more jobs we support right here in America. (Applause.) So tonight, we set a new goal: We will double our exports over the next five years, an increase that will support two million jobs in America. (Applause.) To help meet this goal, we’re launching a National Export Initiative that will help farmers and small businesses increase their exports, and reform export controls consistent with national security. (Applause.)
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To make college more affordable, this bill will finally end the unwarranted taxpayer subsidies that go to banks for student loans. (Applause.) Instead, let’s take that money and give families a $10,000 tax credit for four years of college and increase Pell Grants. (Applause.) And let’s tell another one million students that when they graduate, they will be required to pay only 10 percent of their income on student loans, and all of their debt will be forgiven after 20 years –- and forgiven after 10 years if they choose a career in public service, because in the United States of America, no one should go broke because they chose to go to college. (Applause.)

He said the first step in creating jobs is fixing the problems that is hampering our growth, here is the financial reform part:

One place to start is serious financial reform. Look, I am not interested in punishing banks, I’m interested in protecting our economy. A strong, healthy financial market makes it possible for businesses to access credit and create new jobs. It channels the savings of families into investments that raise incomes. But that can only happen if we guard against the same recklessness that nearly brought down our entire economy.

We need to make sure consumers and middle-class families have the information they need to make financial decisions. We can’t allow financial institutions, including those that take your deposits, to take risks that threaten the whole economy.

The House has already passed financial reform with many of these changes. And the lobbyists are already trying to kill it. Well, we cannot let them win this fight. And if the bill that ends up on my desk does not meet the test of real reform, I will send it back.

What he has done so far to fix our economic problems. He is fudging his steps here and covering up his steps as the most he could have done. Obama, come on — this is not for me:

So I supported the last administration’s efforts to create the financial rescue program. And when we took that program over, we made it more transparent and more accountable. And as a result, the markets are now stabilized, and we’ve recovered most of the money we spent on the banks. (Applause.) Most but not all.

To recover the rest, I’ve proposed a fee on the biggest banks. (Applause.) Now, I know Wall Street isn’t keen on this idea. But if these firms can afford to hand out big bonuses again, they can afford a modest fee to pay back the taxpayers who rescued them in their time of need. (Applause.)

Now, as we stabilized the financial system, we also took steps to get our economy growing again, save as many jobs as possible, and help Americans who had become unemployed.

That’s why we extended or increased unemployment benefits for more than 18 million Americans; made health insurance 65 percent cheaper for families who get their coverage through COBRA; and passed 25 different tax cuts.

Now, let me repeat: We cut taxes. We cut taxes for 95 percent of working families. (Applause.) We cut taxes for small businesses. We cut taxes for first-time homebuyers. We cut taxes for parents trying to care for their children. We cut taxes for 8 million Americans paying for college. (Applause.)