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Obama's Right and Wrong Ideas for America

Updated on February 3, 2015

Obama’s Right & Wrong Ideas for America

The experts at Heritage Foundation determine how the policies President Obama suggested during State of the Union Tuesday night address, and if they help build or break America.

President Obama boasted about how the deficit ratio was shrinking during his address, but pegged to touch $950 billion in the next decade, there’s nothing positive to talk about it says Romina.

According to Diane Katz, President Obama says he came up “sensible regulations” to prevent financial crisis and that the government “watchdog” is set up to guard consumers. However, Consumer Financial Protection Bureau seems to have really wielded their regulatory powers in all consumer finances, resulting in pricier financial services. This means, economic development and consumer benefits are going downhill.

According to Curtis Dubay, taxing the rich more and tax cuts to middle class is talked about a lot, but wasn’t covered at the speech. While the references to remove tax loopholes were done, it was very vague and undefined. Finally, he suggested increasing taxes for wealthy heirs, which would indirectly reduce the income of low – middle income groups. This will also eventually slow down economic development. Further, no details were given about business tax reform, which means that will likely take one more year!

According to Diane Katz, while the President does talk about export levels touching new heights, he is pursuing the reauthorization of the Export-Import Bank, which will put American corporations at disadvantage with foreign competitors being offered better subsidies. Isn’t this contradicting his statements?

According to James Gattuso, Obama’s idea of Internet Regulation is wrong! While he calls for “open and free Internet”, his policies would actually make Internet less open and free! He has suggested regulators at Federal Communications Commission to come up with stricter regulations on Internet providers, which would bring them under public utilities. These regulations were written two centuries ago and such outdated regulations would reduce competition and make Internet less accessible.

According to Romina Boccia, labor policies that claim to bridge the gap between differences in wages for men and women doing identical tasks will be removed. However, according to the Equal Pay Act signed by then President John F. Kennedy, the act already addressed this problem and the gap is more probably with individuals making choices. This policy would actually be more harmful in reality, than bridging the wages gap!

According to Brian Riley, free trade is fair trade. In his address President Obama said the playing field should be leveled, to promote fair trade. According to the data in Index of Economic Freedom, published by The Heritage Foundation and Wall Street Journal, countries that have low trade barriers are prospering better than countries with restricted trade. So, we should not be focusing on rules and instead, work on creating opportunity.

According to Norbert Michel, recession was only due to wrong government policies. During the tenure of President Bill Clinton, National Partners in Homwownership wanted to increase the number of homeowners, but qualifying individuals already owned homes. So, few policies were tweaked to lend out to other individuals, which resulted in increased consumer debt and housing bubble, as a result of risky loans given out. To avoid another similar crisis, such policies should be reversed.

While lamenting about reduced wage increase in his speech, President Obama’s suggestion to allow for seven sick days a year is contradictory. According to James Sherk, paid sick leave will only reduce the pay. Further he says that the policies have only contributed to reduced income, as employers haven’t started hiring employees with higher pay. Since hiring low-waged employees full-time penalizes employers, their work hours aren’t increased, thus reducing their income. Also, he further adds that President’s suggestion of increasing wages by promoting overtime works vice versa. He further adds that this decade is the worst in history with reference to job creation, and that President Obama shouldn’t be celebrating about increased job creation pace. While unemployment rate hasn’t come down, increasingly more American employees are opting out of work and not looking forward to work anymore.

Not just economic reforms, every other policy or suggestion given in any sector including education, energy, healthcare or even foreign policy, it isn’t helping America much.

What do you think of President Obama's job performance so far?

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