Obama’s Ambitious Agenda

Upon presenting his sixth State of the Union address on Tuesday, President Barack Obama did not focus on summarizing the achievements of his administration but on utilizing them as the base for an ambitious agenda for the next two years and the years following them. During his speech, he defended what has been done up to now, delineated what he plans to do, and launched a clear message to the Republican majority in both Houses of Congress: We must find focal points, but any initiative that tries to move backward — in health, immigration, financial regulation, and other areas — will be vetoed.

Obama anchored himself on the concept of “middle class economics,” applicable to the characteristics and challenges of the 21st century, to synthesize the main domestic policy proposals. His starting point was that with the economy in full-blown recovery, a vigorous growth in employment, reduction of the fiscal deficit, improvements in the health care system, and withdrawal of combat troops from Afghanistan and Iraq, it is time to “turn the page” and undertake a new stage of the journey. This path must be directed mainly toward increasing the income of the middle class, increasing some tax credits, expanding their [the middle class’s] opportunities for education and training, expanding child care programs and sick leave, and expanding physical and telecommunications infrastructure.

Obama stated that following his initiatives, not only will the population’s living conditions improve, but the United States will also be more competitive, generate more wealth, and maintain its global leadership. To finance the new projects — undoubtedly, very expensive — and, in addition, to reduce income inequality, he proposed modifications to the tax structure, which would include not only higher taxes on profit and capital, but also a simplification of regulations and incentives for companies to repatriate their profit to the United States. According to his calculations, the combination of these measures will be “fiscally neutral.”*

The need for new trade agreements — trans-Pacific and trans-Atlantic — and the need to combat climate change were among the main international components of his speech. On the subject of commerce, the Republican majority will paradoxically be a major base of support. Several Democratic legislators, linked to union interests, do not look favorably upon more openness to trade; the majority of Republicans, on the other hand, endorse it. On environmental matters, however, it will be very difficult to count on the support of the current Congress. Therefore, it will depend, as with other initiatives, on [Obama] using his executive powers to the maximum.

After highlighting the interdependence between national and global issues, Obama stressed the importance of an American leadership that combines “military power with strong diplomacy,” and that builds coalitions to promote common interests with other countries. It is a sensible approach and is more consistent with the needs and power structures in the current world. In this line [of his speech] he appropriately defended the negotiations on Iran’s nuclear program, whose success is not assured, but where some progress has been made, and said that he would veto any premature sanctions from Congress. He also defended his policy toward Cuba and urged the elimination of the embargo.

In the context of American politics, a large part of his domestic agenda can be described as “liberal” — in the meaning of “state intervention” that, that country has given to the term — and, therefore, the Republicans have already announced their rejection of a large number of points. Nevertheless, what the president actually aims to do is strengthen the enormous force of an economy based on the free market, so that its fruits are better distributed; to do this, he essentially appeals to [the idea of] transfers. An attitude that is more strategic, measured, and long-term in regards to foreign policy is being added to the domestic agenda that not only considers reacting militarily to the crisis, but also addresses challenges that are really global ones, in addition to promoting interests and values with a better balance between force and diplomacy. We consider it sensible.

In short, it was a good message that carried a good vision. The big question is how much of what he proposed will be able to thrive under the Republican dominance of Congress. To succeed, Obama will have to put his political genius to the test, and add to his vocation of leadership — not always successful — a patient disposition to negotiate and compromise.

*Editor’s note: Correctly translated, this quotation could not be verified.