Share

'World economic rules have changed'

Washington - A revitalized President Barack Obama Tuesday bluntly said America must reinvent itself and unite to survive in a fast-changing global economy powered by rising giants like India and China.

Obama's confident State of the Union address mixed straight talk with a patriotic call to action, as he rode a tide of improbable political momentum less than three months after a Republican mid-term election rout.

The president spoke to a television audience of millions from the House of Representatives, seeking to unleash a torrent of innovation to transform the economy after the most brutal meltdown in generations.

Obama conjured up a sepia-tinted vision of an America left behind after globalization changed the rules overnight, bemoaning the loss of a working class lifestyle bankrolled by a decent paycheck and benefits.

"The rules have changed. In a single generation, revolutions in technology have transformed the way we live, work and do business," Obama said, noting that rising powers like India and China were now highly competitive.

But he added Americans should not give up the fight.

"Yes, the world has changed. The competition for jobs is real. But this shouldn't discourage us. It should challenge us," the president said, citing US pathfinders from the Wright Brothers and Thomas Edison to Google and Facebook.

"We need to out-innovate, out-educate and out-build the rest of the world.

"We do big things. Our destiny remains our choice," Obama added in a speech punctuated by multiple ovations that sought to consign two years of economic gloom to the past, as his 2012 reelection race stirs.

Yet no new initiatives were unveiled for immediate job creation, with unemployment pegged at 9.4%.

With its offer to redo corporate tax rates, the address also seemed another tack to the political center ground where US presidential races are won.

But the speech was sparse on policy nuts and bolts, and the idealistic call for unity appeared at odds with ugly Washington politics.

Obama dealt only sparingly with one of the most divisive issues, the $1.3 trillion US deficit, though he said the budget gap needed to constrained, and partially embraced recommendations of a bipartisan fiscal commission.

The president also warned that Republican plans to cut investments in education or innovation were like "lightening an overloaded airplane by removing its engine."

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.29
-0.7%
Rand - Pound
23.87
-1.1%
Rand - Euro
20.58
-1.2%
Rand - Aus dollar
12.38
-1.1%
Rand - Yen
0.12
-1.2%
Platinum
943.50
+0.0%
Palladium
1,034.50
-0.1%
Gold
2,391.84
+0.0%
Silver
28.68
+0.0%
Brent Crude
87.29
+0.2%
Top 40
67,314
+0.2%
All Share
73,364
+0.1%
Resource 10
63,285
-0.0%
Industrial 25
98,701
+0.3%
Financial 15
15,499
+0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders