U.S. President Barack Obama’s Tuesday night State of Union address mostly focused on how the world’s biggest economy can get back on track after years of financial crisis.
Obama’s ideas, including his “blueprint for the economy,” which relies heavily on rejuvenating the U.S. manufacturing sector, is a positive sign for the region’s economies – particularly Costa Rica, a country intricately linked to the economy of our great northern ally. Put U.S. workers back on the job and see the effect here at home.
There are political lessons we can learn from the speech too. Said Obama: “I intend to fight obstruction with action, and I will oppose any effort to return to the very same policies that brought on this economic crisis in the first place.” Such frank talk and leadership in the face of political inaction is sorely needed here in Costa Rica. President Laura Chinchilla should take notes and visit the Legislative Assembly.
She should also learn from Obama’s strategy on taxes and debt. Obama lauded his administration’s efforts, along with the U.S. Congress, to slash $2 trillion from the U.S. deficit. He criticized tax breaks for the wealthy: “Right now, because of loopholes and shelters in the tax code, a quarter of all millionaires pay lower tax rates than millions of middle-class households.”
On a smaller scale, Costa Rica faces its own deficit crisis, owning the highest deficit in Latin America. The majority of taxpayers don’t pay their taxes, including the wealthy. As Obama said, it’s about taxes and debt, energy and health care. In other words, it’s about obtaining the tools needed for progress and protecting what you’ve already created.
Here’s something Obama (and U.S. lawmakers) can learn from Costa Rica: Climate change is real and it demands immediate action. Creating renewable energy industries and reducing carbon emissions was another pillar of Tuesday’s State of the Union speech. The U.S. lags on this front behind countries such as Germany, which is already investing in renewable energy markets in Costa Rica and elsewhere throughout the region. Visionaries like Costa Rica’s Jorge Manuel Dengo (see story on Page 1), were thinking about these things back in the years following World War II.
“During the Great Depression, America built the Hoover Dam and the Golden Gate Bridge,” Obama said. In Costa Rica, Dengo built dams too. He brought electricity to every home in the country. He was a visionary, but equally important, people were working together to accomplish great things. There were disagreements and disputes, but the country progressed.
Costa Rica needs to continue being a leader in renewable energy and conservation, but in order to succeed, it needs capital, financial health and vision. That requires less waste and corruption, more efficient tax collection, and tax reform. Politically, it requires leadership. And it requires collaboration across party lines and social status.
“This nation is great because we worked as a team. This nation is great because we get each other’s backs,” said Obama. Or was it Dengo?
