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Quick Analysis

The Real State of the Union

The President will deliver the 2015 State of the Union Address this evening.

The event is, of course, more an exercise in public relations and politics than an actual analysis of the nation’s true condition.  This year, an authentic look at America’s condition would be painful. Here’s what a candid assessment would disclose:

THE ECONOMY

The United States continues to spend more in imports than it earns from exports.  This is unsustainable.  A deficit of over $39 billion was reported in the last month for which statistics have been reported. Even this troubling statistic was a marginal improvement, but it is due almost entirely to the greater availability of domestically produced energy. This minor upswing will not last if the White House’s proposed EPA regulations take effect.

The U.S.’s continued maintenance of the highest corporate tax rate among America’s key trading partners does not bode well for future gains. According to the Congressional Research Service,  “China displaced the United States as the largest manufacturing country in 2010, as the United States’ share of global manufacturing activity declined from 30% in 2002 to 17.4% in 2012.”

Despite what at first glance appears to be an improved employment figure, the reality is that America still faces significant job market challenges.  Many have stopped looking for work out of frustration, or have exhausted benefits, and are not counted in the unemployment statistics. Further, well-paying jobs have been replaced by lower-paying positions. Approximately one-third of those unemployed are in the long-term unemployed category, a worrisome trend.  The labor participation rate is the worst it has been in over three decades.

The American middle class continues to be hard hit by rising prices and lower wages. Extraordinary spending since the 1960’s on anti-poverty programs—to the tune of $22 trillion– have not lifted the poor out of poverty, but have detrimentally impacted the middle class through both taxes and reduced funds left in the private sector for job creation.

The national debt has doubled during the current administration, with no noticeable gain in employment, infrastructure, or national security. The crisis continues to worsen as annual deficits continue at unsustainable levels ($483 billion in FY 2014.)

NATIONAL SECURITY

America faces the greatest military threat since the middle of the Second World War. Unlike the Cold War, when China was tacitly aligned with the U.S., Russia, China, and Iran form an unofficial axis against the U.S.

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Both Russia and China have made massive improvements to their conventional military power, as well.

Uniquely, America faces a significant threat within the western Hemisphere, as China, Russia and Iran continue to make significant inroads in military relations with a number of Latin American nations.

Terrorism continues to be a significant and growing threat.  Islamic extremists control more territory than ever in the Middle East, and present a growing threat in Africa.  The planned withdrawal of U.S. combat forces in Afghanistan may signal the return of the Taliban in that nation.

Facing these threats is an American military significantly weakened by budget cuts, the laying off of experienced personnel, and aging weapons and equipment.

DOMESTIC RELATIONS

Unexpectedly, America, despite the election of the first black president, has experienced deterioration in race relations during the past several years.  The division between left and right has widened as well.

Free speech issues once thought fairly settled have become inflammatory, as the White House has attempted to broaden the powers of the Federal Communications Commission, surrender control of the internet to an international body containing pro-censorship members, and contradict Supreme Court decisions regarding campaign expenditures. The growth in anti-free speech regulations in academia has been explosive.

CONCLUSION

Clearly, the state of the union is troubling.  At home and abroad, the United States faces extraordinary challenges. Policies over the past several years have been guided more by ideological zeal than a candid response to reality.