State of the Union

In a speech before the nation last night, President Obama's State of the Union Address spoke of a new American economy that is "built to last."

Of course, in the wake of the dot com bubble, the subprime mortgage fiasco and the funny money of the last decade, that's certainly an objective all of us can heartily agree with.

The American Dream is in need of repair.

The good news is that with one exception the President's State of the Union Address did outlined some useful steps that could be taken to help boost the economic recovery.

Naturally though, I think the details could use a little tweaking!

The Worthy Goals in the State of the Union Address

To start off with, the President outlined his primary strategy to help bring manufacturing jobs back to the United States. That's an entirely worthy objective.

What's more, this goal actually has a decent chance of being met--- at least partially.

Here's why...

Chinese manufacturing costs have been rising rapidly over last few years, since its workforce is now demanding a larger share of the profits in the country's new found prosperity.

Also the President was correct when he claimed that there are several intrinsic advantages to manufacturing here in the states. As a result, the cost equation has been swinging pretty rapidly in favor of bringing manufacturing jobs back home.

His example of the Master Lock plant in Milwaukee running at full capacity for the first time in fifteen years is just part of a greater trend.

The President's proposal to lower corporate tax rates, while eliminating the loopholes that allow companies like General Electric to pay almost no U.S. taxes, will also undoubtedly help to bring even more manufacturing jobs back home.

Not only is this sensible, the President's proposal is politically clever as well.

After all, it's always pretty smart to call for something already starting to happen. That way your success is almost guaranteed!

Unfortunately, some of the President's other ideas were less satisfying...