• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

2

Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place

3

Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster

1

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

2

Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place

3

Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster

State of the Union: Plenty of plans, not much economic promise

By
Nina Easton
Nina Easton
Down Arrow Button Icon
By
Nina Easton
Nina Easton
Down Arrow Button Icon
February 13, 2013, 3:25 PM ET
Add Fortune on Google for similar content.

FORTUNE — How serious is this president about promoting economic growth? Growing the U.S. economy wasn’t an agenda item in President Obama’s second inaugural address, a play to his liberal supporters that instead dwelled on inequality, climate change, feminism, gay rights, and long voter lines.

But jobs and the economy were front and center in last night’s State of the Union address, Obama’s first since becoming the only Democratic president since FDR to twice win a majority of voters. Here’s the catch: This president wants Washington-managed growth, designed to “reignite the true engine of America’s economic growth — a rising, thriving middle class.”

In the White House’s view, big business, which employs about 50 million Americans –nearly half the American workforce — is mostly a problem, not a partner, in this enterprise. Business leaders stand accused of unfairness — whether it’s related to paying workers or paying taxes.

MORE: Are we throwing in the towel on American workers?

In his first term, the Obama Administration’s message toward business leaders was, at best, schizophrenic — making a showy production of putting business leaders on his advisory jobs council, then hauling Wall Street CEOs to the White House to be lectured on the dangers of greed. Two weeks ago, President Obama let his jobs council expire, even though unemployment barely dropped during the short and meek life of this Potemkin village — from 8.3% to 7.9%. Now both gloves are off.

“Corporate profits have rocketed to all-time highs — but for more than a decade, wages and incomes have barely budged,” President Obama declared minutes into last night’s address. In a White House that is bereft of business leaders, this is a matter of “fairness,” so the solution is to raise the minimum wage from $7.25 to $9 a hour — a rate that’s higher than any state’s minimum other than Washington — even though that’s likely to cost jobs in an economy that contracted last quarter.

“Working folks shouldn’t have to wait year after year for the minimum wage to go up while CEO pay has never been higher,” the president declared, even though chief executive pay actually peaked in 2000 and has since fallen, according to research by the University of Chicago’s Steven Neil Kaplan.

MORE: This year’s biggest economic losers

Then there is the issue of taxes. The populist-minded president has always condemned “tax breaks for Big Oil” and tax policies that enable companies to “ship jobs overseas.”

But in 2011, asserting that “we have to make America the best place on Earth to do business,” he called for tax reform to lower the corporate rate — “one of the highest in the world” — and close loopholes to pay for it. That’s a policy Republicans can agree with, and one that business leaders say would help bring some of that $2 trillion sitting overseas home to invest in jobs, and that economists say would boost GDP.

Last year, though, the White House replaced that idea with a plan to punish multinationals with a minimum tax for doing business overseas and tax incentives to reward manufacturers who stay here. A similar, though more vague, plan was featured in last night’s speech.

There were plenty of recycled and semi-recycled ideas (there always are in State of the Union messages, regardless of who’s president) to boost the economy: Oil and gas taxes to fund green projects, a “fix-it-first” plan to rebuild infrastructure, a mortgage refinance plan.

Deep in the mind-numbing litany of government-guided programs that President Obama laid out last night were two that could actually help our jobs problem and should involve business leaders as partners. One was a plan to create 15 hubs to train workers for high-skilled manufacturing jobs. Tens of thousands of good jobs are coming on line in industries such as aerospace and utilities as the baby boomers retire, yet American workers lack the training to fill them. The plan calls for a partnership with the Defense and Energy departments. But it shouldn’t involve more government spending. As the General Accounting Office has noted, we already waste $18 billion on ineffective job training programs.

MORE: Go long on the economy, and hedge on stocks

The second initiative, promoted by high-tech companies like Microsoft (MSFT), is to create incentives for K-12 schools to produce students with math, science, and engineering skills. As I wrote last week, only a fraction of our 42,000 high schools have advanced placement computer science programs, which gives high-tech companies an excuse to look overseas for talent.

But these are plans for tomorrow’s workers, not today’s unemployed. The president didn’t offer much comfort to the manager and owners of American businesses who complain that high tax rates, strangling regulation, and the emergence of Obamacare are thwarting any plans to invest in American jobs.

In the short term, we’re mired in a new normal of high unemployment, nervous business leaders, and a continued, unsettling, war in Washington over the nation’s mounting debt.

About the Author
By Nina Easton
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

Nike’s earning numbers exceeded Wall Street’s expectations. But CEO Elliott Hill’s next test is the World Cup
RetailNike
Nike’s earning numbers exceeded Wall Street’s expectations. But CEO Elliott Hill’s next test is the World Cup
By Mia OsmonbekovJune 30, 2026
10 hours ago
Dell’s AI boom is real, but so is the profit margin hit nobody is pricing in
AIDell Technologies
Dell’s AI boom is real, but so is the profit margin hit nobody is pricing in
By Mia OsmonbekovJune 30, 2026
11 hours ago
Young couple looking sad in front of a home with a for sale sign
Real EstateHousing
Gen Z and millennials aren’t convinced the American Dream exists anymore: Only 40% of them can afford to buy a home
By Tristan BoveJune 30, 2026
12 hours ago
Russian President Vladimir Putin
EconomyRussia
It started with one viral influencer complaining about Russia’s economy. Now a record 60% of Russians are pessimistic about their country’s outlook
By Tristan BoveJune 30, 2026
13 hours ago
Image of colored bar charts with one being pushed up.
NewslettersEye on AI
AI is minting billion-dollar companies faster than before
By Beatrice NolanJune 30, 2026
14 hours ago
Stripe CEO Patrick Collison gestures with his hands as he speaks into a microphone before a congressional committee hearing.
Cryptostablecoins
Stripe, Visa and over 140 other businesses to launch stablecoin to rival Tether and Circle
By Camila Grigera NaónJune 30, 2026
14 hours ago

Most Popular

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
Success
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
By Sydney LakeJune 25, 2026
6 days ago
Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place
Success
Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place
By Sydney LakeJune 29, 2026
2 days ago
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
Success
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
By Preston ForeJune 27, 2026
4 days ago
'Humanity has chosen to become idiots': This Brown professor switched to take-home exams after a mass shooting and discovered mass cheating
AI
'Humanity has chosen to become idiots': This Brown professor switched to take-home exams after a mass shooting and discovered mass cheating
By Catherina GioinoJune 29, 2026
1 day ago
The U.S. Army is opening military bases to private billions — here's why that changes everything for the next 250 years
Commentary
The U.S. Army is opening military bases to private billions — here's why that changes everything for the next 250 years
By Marc AndersenJune 30, 2026
19 hours ago
The retired college professor fighting a $313 trespassing ticket in Wisconsin thinks he's part of a national struggle
Environment
The retired college professor fighting a $313 trespassing ticket in Wisconsin thinks he's part of a national struggle
By Catherina GioinoJune 28, 2026
3 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.