Obama's State of the Union address to focus on US economy

New York: President Obama’s State of the Union address on Tuesday evening before a joint session of Congress will outline a series of ideas to build on the gradual US economic recovery and job creation.

Last month, Obama used his second inaugural address to give the most important gay-rights speech in American history, but he was criticised by Republicans for not making jobs the centerpiece of his address. It appears he won’t leave himself open to Republican criticism this time.

With job creation the unavoidable centerpiece of his speech, Apple CEO Tim Cook will sit with First Lady Michelle Obama during Tuesday’s address.

“Apple is a great American company, and it stands for our sense of innovation, invention, entrepreneurship, and risk taking and I think that’s quite an appropriate person to be in the First Lady’s box when the president is talking about our economic future, the importance of job creation, manufacturing, innovation and how we create strong middle class jobs,” top White House economic advisor Gene Sperling told CNBC.

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[caption id=“attachment_621704” align=“alignleft” width=“380”]  President Obama in this file photo. Reuters[/caption]

Presidents usually like to use these speeches to make Americans feel good about where they are, so Obama is likely to give a nod to the economic recovery. After jobs, auto sales and manufacturing data showed the US economy’s recovery remains on track, the Dow Jones industrial average topped 14,000 for the first time this month on 2 Feb since 12 October, 2007.

However, the deficit is also an unavoidable topic for the Obama speech. Obama and Congress are scrambling to find a way to avoid automatic spending cuts poised to hit 1 March unless a deal is reached to replace them.

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Obama’s deficit reduction plan and prescription for growth is still at odds with that of the Republican Party. He will continue to make a case for the need to close the deficit through a combination of budget cuts and tax increases. Republicans, citing the tax-hike concessions they gave during the fiscal crisis talks, are absolutely averse to more tax increases.

Obama is also expected to revive his calls on Tuesday for government investments in infrastructure and education, meaning spending. White House Press Secretary Jay Carney said Obama’s speech will focus on “proposals that are necessary to help the middle class grow and to help the economy grow.”

Immigration overhaul, gun control and climate change are also likely to feature in Obama’s speech. The president is pushing for “common sense” gun control measures covering universal background checks, and bans on assault weapons and high-capacity magazines. The gun control measures face stiff resistance on the Hill, particularly in the Republican-controlled House.

Unlike gun control, Obama’s call for immigration reform has gathered more bipartisan following, with legislation being drafted by Democrats and Republicans in the Senate. The high-skilled portion of their plan promises to grant a green card to anyone who completes a postgraduate degree in science, math, or engineering from an American university. It could be a windfall for Indian students who typically come to the US in droves to study in the science, technology, engineering and mathematics (STEM) fields.

While The Wall Street Journal said the core of the speech would focus on ways to spur the economy, it reported that the president will say he plans a trip to the Middle East, putting him in the company of “Presidents Reagan, Clinton and Bush, who all tried to crack the code on the Palestinian problem in a second term.”