Obama stresses on Inclusive Capitalism

  • State of the Union Speech identifies future challenge
  • Poor people should gain from the revived economy
  • Reduction of taxes for the poor is one way, says the president

(Venkata Kondubhatla)

Washington, January 23: “Inclusive Capitalism” was what the president emphasized on at the State of the Union speech on January 21. As many presidents did in the past, Obama has also used the occasion to shift the focus to the future challenges he is going to try and accomplish, moving away from the past and on-going controversial issues, such as the war against ISIS.

Giving a new direction to the congress, which meets annually for the president’s speech, Obama delivered his speech mainly focusing on the issues of equal opportunity and the challenge of making many rather than few contribute to the success of the country. He talked about his policy before a congress that has a majority of republicans, who have time and again failed many of his attempts to pass his policies.

Now, that the economy has revived, Obama said, the Congress should concentrate on how to make sure that poor people gain from it. He advised and tried to introduce many of his ideas related to this in the rest of his talk.

For many families where both wife and husband have to work to survive, childcare has become an issue and making it affordable to those people will help in their progress, Obama said. He announced many such ideas that he would soon follow up with Congress in his remaining two years. Another such idea was to fill the loopholes in the taxes that some rich companies are using to avoid taxes. He proposed reduction in taxes for the poor that would help them rise from poverty.

Other ideas he touched were covering more people in the plan of paid sick leaves, hiring more veterans and equal salary to the women as men for the same work.

All these ideas are based on the idea of inclusive capitalism, which now-a-days has been thought seriously in the developed countries according to the pundits. As Thomas. B. Edsall, a New York Times columnist, writes, the concept is based on the logic that the buying power would only enhance, resulting in more revenues, if the middle and poor classes have the ability to buy the products manufactured by the companies. Many economists now believe that if these classes shared the benefits of the economy, only then they would be able to contribute to its prosperity.

Apart from the challenges on inequality and lifting the poor, Obama talked about the country’s infrastructure by saying that the country needs a non-partisan infrastructure plan and not the oil pipeling plan, one that Republicans have pushed time and again only to be vetoed by the president.

The speech laid all the ideas that he is going to push for in the Congress in the coming years. Some of them take time and even give a direction and vision for a way beyond his remaining two-year tenure.

Leave a Reply

Your email address will not be published.