OBAMA RESETS PRESIDENCY

Saying “the worst of the (economic) storm has passed” and returning to his roots of being an agent for CHANGE, the President vowed to fix the economy and get Americans back to work.  In his nearly 80 minute speech, Mr. Obama introduced a package of modest initiatives intended to help middle-class families, including tax credits for child care, caps on some student loan payments and a proposal to require that companies let workers save automatically for retirement.  By focusing on what’s being called “the sandwich generation” (struggling families squeezed between sending their children to college and caring for elderly parents), Mr. Obama demonstrated that he understands the economic pain of ordinary Americans, proposing money for programs to help families care for elderly relatives.

One advantage is that the President’s proposals should instantly appeal to people who are struggling financially, without looking like over-expansion of the federal government which has made many Americans uneasy.  His proposals would also add very little to the federal deficit, particularly at a time when Mr. Obama is pledging to reduce it.  These types of programs are notably curtailed than the President’s expansive first-year agenda, which included an economic recovery package, bailing out the auto industry, overhauling the health care system, passing energy legislation and imposing tougher restrictions on banks.

The President also vowed to continue to fight for health care reform, calling it essential to the survival of the nation.  He challenged members of both parties that if they have a better idea for health reform, to let him know it.  Other issues addressed included calls for a spending freeze, environmental issues, and repeal of the controversial “Dont Ask, Don’t Tell” policy which prohibits gays in the military.

With his poll numbers down and Democrats fearing disaster in this year’s midterm elections, Mr. Obama has found himself at a particularly rocky point in his presidency and has been shifting his message lately to adopt a more populist tone.  But his new proposals from the State of the Union Address should go a long way in returning American confidence to both he and his presidency.