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Obama unveils proposals to address American fears

 
0 CommentsPrint E-mail Xinhua, January 28, 2010
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Push for financial reform

During his speech, Obama emphasized the need to rein in Wall Street's excesses and vowed he would continue financial reform to prevent a new crisis.

"I am not interested in punishing banks, I'm interested in protecting our economy," said Obama.

According to him, a strong, healthy financial market makes it possible for businesses to access credit and create new jobs.

"It channels the savings of families into investments that raise incomes," said the president. "But that can only happen if we guard against the same recklessness that nearly brought down our entire economy."

He also said the government would not allow financial institutions, including those that take deposits, to take risks that threaten the whole economy.

However, he nevertheless defended the bank bailout.

"If there's one thing that was unified Democrats and Republicans, it's that we all hated the bank bailout," he said. "I hated it. You hated it. It was about as popular as a root canal."

During the speech, the hawkish president also vowed he would veto any finance bill that does not contain "real reform."

"The House has already passed financial reform with many of these changes. And the lobbyists are already trying to kill it," he told lawmakers at the Capitol Hill.

"Well, we cannot let them win this fight. And if the bill that ends up on my desk does not meet the test of real reform, I will send it back," he said.

U.S. President Barack Obama (Front) waves before he delivers his first State of the Union Address since taking office, at the Capitol Hill in Washington Jan. 27, 2010. [Zhang Jun/Xinhua] 



Three year freeze on domestic spending

Obama also tried to balance the need to continue to boost the economy against his commitment to cut the record budget deficit, which soared to 1.4 trillion dollars in fiscal 2009.

During the speech, Obama said he will seek a three-year freeze on domestic spending that is not related to national security.

"Starting in 2011, we are prepared to freeze government spending for three years," said Obama.

"Spending related to our national security, Medicare, Medicaid, and Social Security will not be affected," said the president. "But all other discretionary government programs will."

He promised his administration will continue to go through the budget line by line to eliminate programs that the country can't afford.

"Like any cash-strapped family, we will work within a budget to invest in what we need and sacrifice what we don't. And if I have to enforce this discipline by veto, I will," said Obama.

He said the government has already identified 20 billion dollars in savings for next year.

"To help working families, we will extend our middle-class tax cuts," he said, but adding that at a time of record deficits, the government will not continue tax cuts for oil companies, investment fund managers, and those making over 250,000 dollars a year.

However, many analysts believe the freeze carries only symbolic value for Obama because it affects only a fraction of the overall budget. 

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