Serving the Flathead Valley & Montana since 2006. A reality based independent journal of observation & analysis. © James Conner.

 

29 January 2014

A State of the Union speech to depress progressives

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President Obama’s State of the Union address (transcript with line numbers, PDF) discussed a number of issues, energy and retirement security among them.

Energy. I consider energy, and in particular the transition from hydrocarbons to solar and wind, as one of the nation’s four most important issues (the other three are health care, jobs, and retirement security). Obama’s energy policy is simple: do everything. Here’s how he described it last night:

Now, one of the biggest factors in bringing more jobs back is our commitment to American energy. The all-of-the-above energy strategy I announced a few years ago is working, and today, America is closer to energy independence than we’ve been in decades. [SOTU, line number 140.]

Energy independence is an illusion. It’s also a dog whistle used by both parties for “We ain’t gonna let them dirty Arabs hold us hostage to their oil.” All of the above means avoiding choices. A Republican President would do the same, perhaps with slightly more emphasis on hydrocarbons, especially coal, and slightly less emphasis on solar and wind.

Retirement security. Traditional defined benefit private pensions are disappearing, even at profitable corporations such as Boeing (where Boeing executives making tens of millions a year just blackjacked the machinists union into surrendering pension benefits that took decades to win). Workers are now condemned to schemes such as 401k accounts that go boom and bust with Wall Street.

President Obama did acknowledge the problem:

Let’s do more to help Americans save for retirement. Today, most workers don’t have a pension. A Social Security check often isn’t enough on its own. And while the stock market has doubled over the last five years, that doesn’t help folks who don’t have 401ks.[SOTU, line number 324.]

But did he propose increasing Social Security benefits, something that would help seniors today as well as tomorrow? No.

He’ll only help mañana. And not by proposing increases in Social Security and Medicare benefits:

…tomorrow, I will direct the Treasury to create a new way for working Americans to start their own retirement savings: MyRA. It’s a new savings bond that encourages folks to build a nest egg. MyRA guarantees a decent return with no risk of losing what you put in. And if this Congress wants to help, work with me to fix an upside-down tax code that gives big tax breaks to help the wealthy save, but does little to nothing for middle-class Americans. Offer every American access to an automatic IRA on the job, so they can save at work just like everyone in this chamber can. And since the most important investment many families make is their home, send me legislation that protects taxpayers from footing the bill for a housing crisis ever again, and keeps the dream of homeownership alive for future generations of Americans. [SOTU, line number 326.]

No risk? How can he say that when the program doesn’t even exist yet? If he were in the software business, this would be considered an announcement of vaporware.

And why no call for increasing benefits for Social Security and Medicare? Both social insurance programs are Godsends for old people, but neither program is generous. As the President admitted, a Social Security payment by itself often isn’t sufficient. And Medicare covers much less than 100 percent of a senior’s medical expenses, thus condemning seniors who can afford it to purchasing private Medigap insurance. It’s a disgraceful situation for which Obama, a man rich and still young, offers no improvements. I find myself once again wondering how much he really cares about old people.

Kisses and kicks from Walsh and Lewis

Democratic senate and house hopefuls John Walsh and John Lewis issued short statements faintly praising the President that had in common a weird tea partyesque fixation with cutting spending and reducing the national debt. Below, each man’s full statements.

Walsh:

The president says taking responsibility is a fundamental part of uniting our country. I agree. But like most Montanans, I believe the president must do more to protect law-abiding citizens and end the NSA’s surveillance program. As leaders, we must have the courage to responsibly cut our debt, cut spending and live up to the promises made to America’s veterans.

Lewis:

I appreciate the President calling on Congress to work together because we have much more to do to create more good-paying jobs and close loopholes that send American jobs overseas. I remain very concerned about the President’s stance on many issues including his defense of an overreaching National Security Agency. And I’m disappointed by the lack of commitment to cut more spending and reduce our deficit.

Democrats who call for austerity — and that’s what cutting spending produces — betray the hard-working, paycheck-to-paycheck living people they seek to represent.