State of the Union Address-2

So last night we had the first State of the Union address by the new President. Thankfully he realized that we should be talking more about the economy than the War on Terror and other stuff. He kept on emphasizing again about the passage of the health care reform bill, but also here he realized that the reality of its passage is murkier than before. His main emphasis was mainly on how to get back to the creation of jobs.

Even when he has discussed how to create jobs, some big companies have announced huge cuts, although some have added small amounts of job but they have been miniscule as compared to the job cuts (for example Sam’s club and Verizon-more than 10,000 people being laid off). Main Street is still hurting but they are also afraid about the huge deficit that is being created in order to jump start the economy.

This huge deficit will have to be paid for and adding more job stimulus or other kinds of stimulus (when the first stimulus’s effect has not been fully reflected) will be a hard sell for the President.

To be blunt, we don’t have the money to have more stimulus, we can work on the existing tax codes and maybe create new policies which can have direct bearing on the employment situation. Nobody wants to take on more loans and have more debt. The American Public is trying to reduce their debt not increase it and anyway, even if the President wishes, it will not happen without bipartisan support, which is very much in doubt especially in the Senate.