I found President Biden’s State of the Union Address last night (March 1, 2022) to contain some noteworthy comments. While I could comment extensively on many parts of the speech, for now I will indicate excerpts that I found most relevant with regard to the economic situation, and may comment upon them at a future point. I am highlighting these excerpts for many reasons; it should be noted that I do not necessarily agree with any or all of them.
Here are the excerpts I found most relevant, in the order they occurred in the speech:
Tonight, I can announce that the United States has worked with 30 other countries to release 60 Million barrels of oil from reserves around the world.
America will lead that effort, releasing 30 Million barrels from our own Strategic Petroleum Reserve. And we stand ready to do more if necessary, unified with our allies.
These steps will help blunt gas prices here at home. And I know the news about what’s happening can seem alarming.
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We meet tonight in an America that has lived through two of the hardest years this nation has ever faced.
The pandemic has been punishing.
And so many families are living paycheck to paycheck, struggling to keep up with the rising cost of food, gas, housing, and so much more.
I understand.
I remember when my Dad had to leave our home in Scranton, Pennsylvania to find work.
I grew up in a family where if the price of food went up, you felt it.
That’s why one of the first things I did as President was fight to pass the American Rescue Plan.
Because people were hurting. We needed to act, and we did.
Few pieces of legislation have done more in a critical moment in our history to lift us out of crisis.
It fueled our efforts to vaccinate the nation and combat COVID-19. It delivered immediate economic relief for tens of millions of Americans.
Helped put food on their table, keep a roof over their heads, and cut the cost of health insurance.
And as my Dad used to say, it gave people a little breathing room.
And unlike the $2 Trillion tax cut passed in the previous administration that benefitted the top 1% of Americans, the American Rescue Plan helped working people—and left no one behind.
And it worked. It created jobs. Lots of jobs.
In fact—our economy created over 6.5 Million new jobs just last year, more jobs created in one year than ever before in the history of America.
Our economy grew at a rate of 5.7% last year, the strongest growth in nearly 40 years, the first step in bringing fundamental change to an economy that hasn’t worked for the working people of this nation for too long.
For the past 40 years we were told that if we gave tax breaks to those at the very top, the benefits would trickle down to everyone else.
But that trickle-down theory led to weaker economic growth, lower wages, bigger deficits, and the widest gap between those at the top and everyone else in nearly a century.
Vice President Harris and I ran for office with a new economic vision for America.
Invest in America. Educate Americans. Grow the workforce. Build the economy from the bottom up and the middle out, not from the top down.
Because we know that when the middle class grows, the poor have a ladder up and the wealthy do very well.
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There’s something happening in America.
Just look around and you’ll see an amazing story.
The rebirth of the pride that comes from stamping products “Made In America.” The revitalization of American manufacturing.
Companies are choosing to build new factories here, when just a few years ago, they would have built them overseas.
That’s what is happening. Ford is investing $11 billion to build electric vehicles, creating 11,000 jobs across the country.
GM is making the largest investment in its history—$7 billion to build electric vehicles, creating 4,000 jobs in Michigan.
All told, we created 369,000 new manufacturing jobs in America just last year.
Powered by people I’ve met like JoJo Burgess, from generations of union steelworkers from Pittsburgh, who’s here with us tonight.
As Ohio Senator Sherrod Brown says, “It’s time to bury the label “Rust Belt.”
It’s time.
But with all the bright spots in our economy, record job growth and higher wages, too many families are struggling to keep up with the bills.
Inflation is robbing them of the gains they might otherwise feel.
I get it. That’s why my top priority is getting prices under control.
Look, our economy roared back faster than most predicted, but the pandemic meant that businesses had a hard time hiring enough workers to keep up production in their factories.
The pandemic also disrupted global supply chains.
When factories close, it takes longer to make goods and get them from the warehouse to the store, and prices go up.
Look at cars.
Last year, there weren’t enough semiconductors to make all the cars that people wanted to buy.
And guess what, prices of automobiles went up.
So—we have a choice.
One way to fight inflation is to drive down wages and make Americans poorer.
I have a better plan to fight inflation.
Lower your costs, not your wages.
Make more cars and semiconductors in America.
More infrastructure and innovation in America.
More goods moving faster and cheaper in America.
More jobs where you can earn a good living in America.
And instead of relying on foreign supply chains, let’s make it in America.
Economists call it “increasing the productive capacity of our economy.”
I call it building a better America.
My plan to fight inflation will lower your costs and lower the deficit.
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The Special Note summarizes my overall thoughts about our economic situation
SPX at 4326.07 as this post is written