I thought the state of the union speech delivered by President Barack Obama was a little weak in substance.   It still seems like the people in power don’t understand that us regular ordinary people need jobs.  They talk about the economy and mention jobs a lot, but what are they really doing to create an environment for job growth.

Obviously I am no economist.  I do have some idea of what is going to create jobs.  First, you have to convince, not tell but convince, small business owners that things are going to continue to improve over the next couple years and the next decade.   Also, you have to remove any uncertainty about the economic environment over the next few years.

This is one major failure of the Obama administration.  He is promising short term tax cuts.  Business owners aren’t stupid.  They aren’t going to increase their overhead if they think that things are only going to be better temporarily.  Instead, they will just continue to sit on their hands and remain frugal.

It is the same reason why people are slow to make major big ticket purchases right now.  They don’t do it because there is a high level of uncertainty about the economy in the short run.  Smart people will not overburden themselves with debt that will be difficult to payback.

Stupid people who are still willing to overspend cannot borrow the money to do so.  Therefore, you have an environment where people either don’t want to or simply cannot spend more money.  This will remain the case until consumer confidence gets back to near where it was prior to the housing bubble collapse.

I see nothing coming out of the Obama speech that addresses any of this.  I think this team of advisors is relatively clueless.  I don’t know what they spend all their time working on.  I am sure they are all brilliant people.  But, if some regular Joe Schmoe can grasp this, then why can’t they?

If this guy doesn’t get his head out of the sand, he is going to get a bunch of Democrats removed from office in the upcoming elections.  Remember what Bill Clinton used to say.  “It’s the economy supid!”