US still caught in storm

China Daily, January 27, 2011

President Barack Obama attempted to accomplish a lot in his State of the Union address at the White House on Tuesday night, as he called on the people of the United States to unite to counter the "devastation that remains" even though the "worst of the storm has passed".

He hoped to bridge the differences between the Democrats and Republicans over a series of contentious issues in the United States, from spending cuts and healthcare reforms, to tax subsidies for oil companies and offering children of illegal immigrants the chance to fulfill their "American dream".

He also made an effort to address the concerns of other countries - those holding US treasury bonds and countries vulnerable to extreme weather events - following international questioning of the US' resolve to reduce its huge budget deficit and its willingness to promote development in clean energy and contribute to tackling climate change.

Terrorism and preventing nuclear proliferation were also highlighted and he vowed to shape a world that "favors peace and prosperity", despite the fact that US defense spending remains the highest in the world, more than the total defense expenditure of the rest of the major economies put together.

But above all, the US economy and the necessity to keep it the world leader was the core of his address. In fact, Obama outlined an extensive roadmap, not only to try and sustain the economic recovery of the world's largest economy this year, but also giving directions to ensure its growth in the years ahead. He looked forward to the national election in 2012 and the years beyond, by setting a series of specific goals, such as "doubling US exports by 2014" or having "1 million electric vehicles on the road by 2015".

Other targets included promoting education and research in science and technology and spearheading the clean and renewable energy industries, improving American infrastructure - from enhancing Internet networks to building high-speed railways - and fostering better trade relations with other countries, so as to increase US jobs and exports.

However, there was nothing really new in this year's annual policy address. These ideas have been deliberated and debated in the US ever since Obama came into the office, and this fact alone shows that the Obama administration will face tremendous challenges in carrying out these policy proposals.

After all, despite some signs of economic recovery, unemployment remains high at 9.4 percent, house prices have hit new lows, household debts are still high and states and cities suffer from budget constraints. There are also political obstacles. For example, the Republicans have said they will reject increased spending.

Whatever the high-sounding rhetoric, what is needed is real action to tackle the political and economic challenges.

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