State of the Union Address

On January 28th, 2014 President Barack Obama addressed our nation once again in his annual State of the Union address. His speech outlined his plans for our nation during 2014 – most of which were expected and not really revolutionary in nature. Obama emphasized his plan to use the power of executive orders to carry out much of his agenda. For those of you unfamiliar with executive orders, this rule allows the President to have full force of law without the consent of Congress (although executive orders can be declared unconstitutional by the supreme court).

Obama’s plan to combat rising inequality between the rich and middle class begins with executive orders. The morning of the 28th, he announced that he was raising minimum wage for federal workers to $10.10 per hour and is starting a program called “myRA, ” in which lower income Americans can begin saving money towards retirement. Obama has also directed Vice-President Biden to review and reform the federal job-training system and plans to meet with several CEO’s of top companies to discuss their employment policies. Aside from economic decisions, Obama plans to encourage factories that rely on natural gas, as well as create universal Pre-K.

Although Obama plans on using his power of executive order, he will need to collaborate with Congress in order to make most of his plans reality. While raising the minimum wage of federal workers, his goal to raise the minimum wage of all Americans will need the support of Congress, which I simply don’t believe he will be able to muster. The House of Representatives is majority Republican, and our Republican Speaker of the House John Boehner has made it clear that the party will not support raising the federal minimum wage. Although, in theory, Obama’s plan could help many households in America, I can see Boehner’s point, that many companies will likely lay off workers if the minimum wage increases, rather than see their profit margins shrink.

Additionally, Obama’s goal to reform the tax code – although he emphasized that it was a bi-partisan issue – will likely not take shape the way he wants it to. Republicans are pressing to lower tax rates (particularly on businesses and individuals), while Obama’s plan to combat rising inequality would include raising taxes on the rich, including many businesses and business owners. Obama’s environmental initiative also relies on Congress, without whose approval he cannot set up natural gas based fuel stations. From immigration to manufacturing to education, Obama’s plans generally seem to rely on compliance from Congress, begging the number one question: will this be a year of action or another of uncompromising, divided government?

Obama made it clear that he expects compromise and promised the American people that he and Congress would deliver. For one beautiful moment, Obama’s fantastic speaking had me convinced that this year would be a year of action. Today, I am again unconvinced that Congress will take any steps forward. Looking at bills like emergency unemployment benefits, which expired this past December and are still stalled in our divided legislature, my hope for a great year is not bright. However, this does not mean that America, as a country, will not grow and improve. Our economy continues to rebound and innovation continues to drive us, and America’s future does not look so dark, after all.