Obama’s State of the Union – Where do we fit in?

President Obama will deliver the State of the Union address tonight at 9pm EST.   While some may discount such speech as political propaganda (2012 elections are coming up), many are intently waiting to see Obama’s legislative agenda for the year.

Having recently returned from Vietnam, I am particularly interested in the business growth potential in America.   Vietnam today (2011) is unlike anything I can recall from my 2008 visit.  Saigon is more beautifully adorned with skyscrapers (eg. Bitexco Financial towers) and many new businesses have spurted, particularly those in techmedia (eg. Vietnam’s version of groupon).  It’s hard to deny the level of high energy flowing through the city.  Chatting with college students and young professionals, I could feel a renewed passion for entrepreneurship that I may perhaps have missed in 2008.

Returning to Boston, I wondered about the business environment in America.  Unemployment remains high and many college graduates are struggling to find jobs.  America stands today as the biggest economy in the world; however, competitors are slowly creeping up the rankings.  What policies/legislations/cultural changes need to be in place to foster innovation in order for the US to command its dominance in the world.

An interesting editorial piece written by Fareed Zakaria, a foreign affairs analyst for CNN, urged Obama to be “bold with Congress” in tonight’s State of the Union.  The original article can be read here.

In the article, Zakaria suggests bold ways in which Obama could outline a plan to invest in America’s future.  This is a particularly important issue because for some time now, scientists and innovators have slowly gone abroad for more attractive funding opportunities.  Zakaria suggests a bipartisanship strategy, one which draws upon the best Republican and Democratic ideas.

What this boils down to is the creation of policies which promotes innovation through cutting edge technology while creating new jobs.  Specifically, Democrats want more done through government research and technology infrastructure while Republicans want more done through regulatory and tax reforms that stimulate the private sector.   Basically, Zakaria argues that Obama should combine both approach (because they’re both right) and create a compromised plan that will receive buy-in from both parties.  Zakaria goes even deeper to provide specific analysis of these policies, which can be read from the link provided above.

The question remains: How should America reform and invest in itself to remain the global economic leader?   Will Obama outline an economic strategy that focuses on education or tax reform to stimulate growth?  After watching the State of the Union, what were your thoughts and reflections?