Here are the excerpts I found most relevant, in the order they occurred in the speech:

Think about the America within our reach:  A country that leads the world in educating its people.  An America that attracts a new generation of high-tech manufacturing and high-paying jobs.  A future where we’re in control of our own energy, and our security and prosperity aren’t so tied to unstable parts of the world.  An economy built to last, where hard work pays off, and responsibility is rewarded.

We can do this.  I know we can, because we’ve done it before.

also:

…the basic American promise that if you worked hard, you could do well enough to raise a family, own a home, send your kids to college, and put a little away for retirement.

The defining issue of our time is how to keep that promise alive.  No challenge is more urgent.  No debate is more important.  We can either settle for a country where a shrinking number of people do really well while a growing number of Americans barely get by, or we can restore an economy where everyone gets a fair shot, and everyone does their fair share, and everyone plays by the same set of rules.  (Applause.)  What’s at stake aren’t Democratic values or Republican values, but American values.  And we have to reclaim them.

also:

Tonight, I want to speak about how we move forward, and lay out a blueprint for an economy that’s built to last -– an economy built on American manufacturing, American energy, skills for American workers, and a renewal of American values.

also:

On the day I took office, our auto industry was on the verge of collapse.  Some even said we should let it die.  With a million jobs at stake, I refused to let that happen.  In exchange for help, we demanded responsibility.  We got workers and automakers to settle their differences.  We got the industry to retool and restructure.  Today, General Motors is back on top as the world’s number-one automaker.  (Applause.)  Chrysler has grown faster in the U.S. than any major car company.  Ford is investing billions in U.S. plants and factories.  And together, the entire industry added nearly 160,000 jobs.

We bet on American workers.  We bet on American ingenuity.  And tonight, the American auto industry is back.

also:

Third, if you’re an American manufacturer, you should get a bigger tax cut.  If you’re a high-tech manufacturer, we should double the tax deduction you get for making your products here.  And if you want to relocate in a community that was hit hard when a factory left town, you should get help financing a new plant, equipment, or training for new workers.  (Applause.)

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The Special Note summarizes my overall thoughts about our economic situation

SPX at 1314.65 as this post is written

In the Address, President Obama said the following:

President Kennedy once said, “Our problems are man-made –- therefore they can be solved by man.  And man can be as big as he wants.”

This quote is from President Kennedy’s American University Speech of June 10, 1963.  (another transcript is found here.)

I find this quote to be interesting in its logic.  From today’s perspective, how applicable is it to our economic problems, the context in which President Obama was referring to?

I continue to believe that our current economic situation is of great complexity.  As I wrote in “A Special Note On Our Economic Situation” :

What separates this period of economic weakness from those that have preceded it is its complexity.

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The Special Note summarizes my overall thoughts about our economic situation

SPX at 1160.40 as this post is written

While I don’t agree with various parts of the speech, I do find the following to be notable:

These men and women grew up with faith in an America where hard work and responsibility paid off.  They believed in a country where everyone gets a fair shake and does their fair share — where if you stepped up, did your job, and were loyal to your company, that loyalty would be rewarded with a decent salary and good benefits; maybe a raise once in a while.  If you did the right thing, you could make it.  Anybody could make it in America.

For decades now, Americans have watched that compact erode.  They have seen the decks too often stacked against them.  And they know that Washington has not always put their interests first.

also:

I am sending this Congress a plan that you should pass right away.  It’s called the American Jobs Act.  There should be nothing controversial about this piece of legislation.  Everything in here is the kind of proposal that’s been supported by both Democrats and Republicans — including many who sit here tonight.  And everything in this bill will be paid for.  Everything.  (Applause.)

also:

This is the American Jobs Act.  It will lead to new jobs for construction workers, for teachers, for veterans, for first responders, young people and the long-term unemployed.  It will provide tax credits to companies that hire new workers, tax relief to small business owners, and tax cuts for the middle class.  And here’s the other thing I want the American people to know:  The American Jobs Act will not add to the deficit.  It will be paid for.  And here’s how.  (Applause.)

The agreement we passed in July will cut government spending by about $1 trillion over the next 10 years.  It also charges this Congress to come up with an additional $1.5 trillion in savings by Christmas.  Tonight, I am asking you to increase that amount so that it covers the full cost of the American Jobs Act.  And a week from Monday, I’ll be releasing a more ambitious deficit plan — a plan that will not only cover the cost of this jobs bill, but stabilize our debt in the long run.  (Applause.)

also:

Now, the American Jobs Act answers the urgent need to create jobs right away.  But we can’t stop there.  As I’ve argued since I ran for this office, we have to look beyond the immediate crisis and start building an economy that lasts into the future — an economy that creates good, middle-class jobs that pay well and offer security.  We now live in a world where technology has made it possible for companies to take their business anywhere.  If we want them to start here and stay here and hire here, we have to be able to out-build and out-educate and out-innovate every other country on Earth.  (Applause.)

also:

I don’t pretend that this plan will solve all our problems. It should not be, nor will it be, the last plan of action we propose.  What’s guided us from the start of this crisis hasn’t been the search for a silver bullet.  It’s been a commitment to stay at it — to be persistent — to keep trying every new idea that works, and listen to every good proposal, no matter which party comes up with it.

also:

President Kennedy once said, “Our problems are man-made –- therefore they can be solved by man.  And man can be as big as he wants.”

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In December 2008 I wrote an article titled “President Obama’s Greatest Challenge”

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The Special Note summarizes my overall thoughts about our economic situation

SPX at 1185.90 as this post is written

Although I don’t agree with many aspects of the speech, I found various parts of this speech to be notable.  Here are various facets that I found particularly noteworthy:

The markets, on the other hand, continue to believe our credit status is AAA.  In fact, Warren Buffett, who knows a thing or two about good investments, said, “If there were a quadruple-A rating, I’d give the United States that.”  I, and most of the world’s investors, agree.

also:

So all of this is a legitimate source of concern.  But here’s the good news:  Our problems are eminently solvable.*  And we know what we have to do to solve them.  With respect to debt, our problem is not confidence in our credit — the markets continue to reaffirm our credit as among the world’s safest.  Our challenge is the need to tackle our deficits over the long term.

also:

What we need to do now is combine those spending cuts with two additional steps:  tax reform that will ask those who can afford it to pay their fair share and modest adjustments to health care programs like Medicare.

also:

Of course, as worrisome as the issues of debt and deficits may be, the most immediate concern of most Americans, and of concern to the marketplace as well, is the issue of jobs and the slow pace of recovery coming out of the worst recession in our lifetimes.

And the good news here is that by coming together to deal with the long-term debt challenge, we would have more room to implement key proposals that can get the economy to grow faster.  Specifically, we should extend the payroll tax cut as soon as possible, so that workers have more money in their paychecks next year and businesses have more customers next year.

We should continue to make sure that if you’re one of the millions of Americans who’s out there looking for a job, you can get the unemployment insurance that your tax dollars contributed to.  That will also put money in people’s pockets and more customers in stores.

also:

I know we’re going through a tough time right now.  We’ve been going through a tough time for the last two and a half years.  And I know a lot of people are worried about the future.  But here’s what I also know:  There will always be economic factors that we can’t control –- earthquakes, spikes in oil prices, slowdowns in other parts of the world.  But how we respond to those tests — that’s entirely up to us.

Markets will rise and fall, but this is the United States of America.  No matter what some agency may say, we’ve always been and always will be a AAA country.  For all of the challenges we face, we continue to have the best universities, some of the most productive workers, the most innovative companies, the most adventurous entrepreneurs on Earth.  What sets us apart is that we’ve always not just had the capacity, but also the will to act — the determination to shape our future; the willingness in our democracy to work out our differences in a sensible way and to move forward, not just for this generation but for the next generation.

And we’re going to need to summon that spirit today.  The American people have been through so much over the last few years, dealing with the worst recession, the biggest financial crisis since the 1930s, and they’ve done it with grace.  And they’re working so hard to raise their families, and all they ask is that we work just as hard, here in this town, to make their lives a little easier.  That’s not too much to ask.  And ultimately, the reason I am so hopeful about our future — the reason I have faith in these United States of America — is because of the American people.  It’s because of their perseverance, and their courage, and their willingness to shoulder the burdens we face -– together, as one nation.

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The Special Note summarizes my overall thoughts about our economic situation

SPX at 1132.34 as this post is written

Here are the excerpts I found most relevant, in the order they occurred in the speech:

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“At stake is whether new jobs and industries take root in this country, or somewhere else. It’s whether the hard work and industry of our people is rewarded. It’s whether we sustain the leadership that has made America not just a place on a map, but a light to the world.”

also:

“We measure progress by the success of our people. By the jobs they can find and the quality of life those jobs offer.”

also:

“The steps we’ve taken over the last two years may have broken the back of this recession – but to win the future, we’ll need to take on challenges that have been decades in the making.”

also:

“Sustaining the American Dream has never been about standing pat. It has required each generation to sacrifice, and struggle, and meet the demands of a new age.”

also:

“That’s what Americans have done for over two hundred years: reinvented ourselves.”

also:

“Meanwhile, when our own engineers graded our nation’s infrastructure, they gave us a “D.””

also:

“Now, the final step – a critical step – in winning the future is to make sure we aren’t buried under a mountain of debt.”

also:

“But now that the worst of the recession is over, we have to confront the fact that our government spends more than it takes in. That is not sustainable.  Every day, families sacrifice to live within their means. They deserve a government that does the same.”

also:

“We shouldn’t just give our people a government that’s more affordable. We should give them a government that’s more competent and efficient. We cannot win the future with a government of the past.”

also:

“A 21st century government that’s open and competent. A government that lives within its means. An economy that’s driven by new skills and ideas. Our success in this new and changing world will require reform, responsibility, and innovation. It will also require us to approach that world with a new level of engagement in our foreign affairs.”

also:

“We may have differences in policy, but we all believe in the rights enshrined in our Constitution. We may have different opinions, but we believe in the same promise that says this is a place where you can make it if you try. We may have different backgrounds, but we believe in the same dream that says this is a country where anything’s possible. No matter who you are. No matter where you come from.”

also:

“The idea of America endures. Our destiny remains our choice. And tonight, more than two centuries later, it is because of our people that our future is hopeful, our journey goes forward, and the state of our union is strong.”

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A Special Note concerning our economic situation is found here

SPX at 1291.18 as this post is written

Here are four excerpts from the transcript that I found especially noteworthy.  I may comment upon them in the future as I find them, in various ways, to be (at least) somewhat provocative:

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President Obama:  “And so, you know, the playing field now is a lot bigger and a lot more competitive than it used to be. And people rightly worry that if we don’t make some fundamental fixes to the economy, that America may not be the preeminent economic power that it’s been in the past.

Now, I have confidence that it will be. Because we still have the best universities. The best scientists. The most productive workers in the world. We’ve got the most entrepreneurial culture. And the strongest capital markets in the world. So, I’m still confident that America will see the 21st Century as the American century just as the 20th Century was. But that won’t happen unless we make some big fundamental changes. And that’s why even in the midst of crisis, we still spent time on things like education reform. Because if we don’t deal with ‘em now, we’re gonna fall behind.”

also:

“I think that the way to think about it is the dangers of a second big recession are now much reduced. The danger of us tipping into a great depression, I think most economists would say, is not there on the horizon.”

also:

President Obama:  “I think we have to make sure that people understand and business understands that my overarching philosophy is not one in which we have constantly increasing government intervention.”

also:

President Obama:  “And especially an economy this big, there are limited tools to encourage the kind of job growth that we need. But I have fundamental confidence in this country. I am constantly reminded that we have been through worse times than these, and we’ve always come out on top. And I’m positive that the same thing is gonna happen this time.

You know, there are gonna be setbacks, and we may take two steps forward and one step back, but the trajectory of this country is always positive. And that’s something that that prevents me from getting too discouraged.”

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A Special Note concerning our economic situation is found here

SPX at 1222.70 as this post is written

http://www.whitehouse.gov/the-press-office/remarks-president-state-union-address

Here are a couple of my thoughts:

First, many stimulus initiatives were mentioned.  Some of these were new ideas.  That stimulus ideas are proliferating should not be a surprise, as many in our country believe they represent a sensible solution to our many economic difficulties.   I will comment on many of these initiatives when more details are available and/or they are enacted.  For now, I will say that before we, as a nation, enact more stimulus bills, we need to analyze the results of the many stimulus efforts previously and currently enacted.  Then, we need to assess the unintended consequences and risks these stimulus efforts hold, of which I have previously mentioned on this blog.

Second, the employment situation was mentioned.  This, of course, is not a surprise and is a very popular topic among all politicians – and for very good reason.

President Obama during the speech last night made the following comment:

“But the truth is, these steps won’t make up for the seven million jobs that we’ve lost over the last two years.”

I believe that our unemployment problems, both current and ongoing, encompass a population many multiples of seven million.   Our unemployment problems will most likely not be solved by any easily enacted solution, unfortunately.

For those unaware, I previously wrote a series of blog posts on unemployment, can be found here:

http://www.economicgreenfield.com/2009/07/24/why-arent-companies-hiring/

back to <home>

SPX at 1086.85 as this post is written

http://www.whitehouse.gov/the_press_office/Remarks-By-The-President-and-Ben-Bernanke-at-the-Nomination-of-Ben-Bernanke-For-Chairman-Of-the-Federal-Reserve/

I would like to comment on some of the phrases President Obama used in these remarks.

President Obama says, “The man next to me, Ben Bernanke, has led the Fed through one of the worst financial crises that this nation and the world has ever faced.” 

and later:

“Ben approached a financial system on the verge of collapse with calm and wisdom; with bold action and out-of-the-box thinking that has helped put the brakes on our economic freefall.”

and later:

“But taken together, this “bold, persistent experimentation” has brought our economy back from the brink.”

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In the second phrase, I found the use of the word “approached” to be odd. 

However, the greater significance in the above phrases is the reference to ”bold action and out-of-the-box thinking” and “‘bold, persistent experimentation.’”  I was surprised to see the word “experimentation” mentioned; one would usually not think of an economy being “experimented” upon.  However, the description is probably accurate given what has transpired.  Perhaps the bigger question is whether the “experiment” has ended? Has it been a success? 

With regard to this “out-of-the-box thinking” and “‘bold, persistent experimentation’” I would like to refer to a speech Janet Yellin (President and CEO, Federal Reserve Bank of San Francisco) gave on January 4, 2009.  In it she said that with regard to the Federal Reserve actions: ““Furthermore, many of the interventions are novel, so no straightforward methods are available to quantify their effectiveness. There are also no clear guidelines for the Fed to gauge the appropriate size of its interventions and few precedents for the Fed to use in communicating its policy stance to the public beyond announcing new programs and describing their terms in detail.”

SPX at 1030.98 as this post is written