Obama pledges new deal for US middle class in state of
the union address
President urges Congress to work 'on
behalf on the many' while laying out plans to tackle immigration and gun
control
President Barack Obama, flanked by
Joe Biden and House speaker John Boehner, delivers his state of the union
address. Photograph: Charles Dharapak/AP
Barak Obama has
pledged in the annual state of union adress to use his second presidential term to restore "the
basic bargain" which built the US into the world's greatest economic power
by ensuring prosperity for the great bulk of Americans and not the privileged
few.
The president made wide-ranging
proposals for investments in schools and infrastructure, and a sharp increase
in the minimum wage to ensure that "no one who works full-time should have
to live in poverty" as he told Congress that it is this generation's task
to return to a time when US governments represented all the people. But he also
pledged that his proposals will not add to the US's burgeoning deficit.
"It is our unfinished task to
restore the basic bargain that built this country – the idea that if you work
hard and meet your responsibilities, you can get ahead, no matter where you
come from, what you look like, or who you love," the president said.
"It is our unfinished task to make sure that this government works on
behalf of the many, and not just the few; that it encourages free enterprise,
rewards individual initiative, and opens the doors of opportunity to every
child across this great nation of ours."
Obama used the speech to call for
fairness and decency in other areas of American political life – from
immigration reform and gay rights to legislation to protect women from violence
and to reduce the terrible toll in lives claimed by guns.
But it was jobs and the economy that
the president built his speech around. He said that after a gruelling
recession, the economy has turned around and job numbers are rising.
"Together, we have cleared away the rubble of crisis, and can say with
renewed confidence that the state of our union is stronger," he said.
But Obama said that many of those
who have worked hard to pull America out of the economic crisis have been left
behind. "Our economy is adding jobs – but too many people still can't find
full-time employment. Corporate profits have rocketed to all-time highs – but
for more than a decade, wages and incomes have barely budged," he said.
The president said it was wrong that
in such a rich country working people should live hand-to-mouth.
"Tonight, let's declare that in
the wealthiest nation on Earth, no one who works full-time should have to live
in poverty, and raise the federal minimum wage to $9 an hour. This single step
would raise the incomes of millions of working families. It could mean the
difference between groceries or the food bank; rent or eviction; scraping by or
finally getting ahead. For businesses across the country, it would mean
customers with more money in their pockets," he said.
The Republican speaker of the House
of Representatives, John Boehner, and members of his party remained seated as Democrats rose to applaud.
In a speech that at times echoed the
view of a foregone era that it is for the government to lead when capitalism
cannot provide, Obama said he also recognised that there are parts of the US –
"factory towns decimated from years of plants packing up, inescapable
pockets of poverty, urban and rural" – where finding even a minimum wage
job is hard. The president said he will direct money toward providing work
"rebuilding vacant homes in run-down neighbourhoods", and targeting
"resources at public safety, education, and housing".
He announced a
"Fix-It-First" programme to address the most urgent repairs of the
US's worn infrastructure "like the nearly 70,000 structurally deficient
bridges across the country". But in a recognition of modern political
realities, Obama said the private sector must have a role.
"To make sure taxpayers don't shoulder
the whole burden, I'm also proposing a Partnership to Rebuild America that
attracts private capital to upgrade what our businesses need most: modern ports
to move our goods; modern pipelines to withstand a storm; modern schools worthy
of our children," he said.
Recognising that many Americans and
members of Congress are as worried about the US's rising debt as they are about
falling earnings, the president pledged that his proposals would not add to the
country's debt.
"Nothing I'm proposing tonight
should increase our deficit by a single dime. It's not a bigger government we
need, but a smarter government that sets priorities and invests in broad-based
growth," he said. Republicans are
suspicious of that claim. Newt Gingrich, the former House speaker, said that
commitment would sink the president's plans.
In the official Republican response
to Obama by Florida senato, Marco Rubio – a Cuban immigrant chosen as his party
attempts to reposition itself as more moderate after its defeat in the
presidential election and to win back Latino voters driven away by Republican
legislation and rhetoric on immigration – accused the president of wanting to
further expand government with "tax, borrow and spend" policies. He
said Obama was falsely blaming the rich not paying enough tax for the economic
recession when it was a "housing crisis created by reckless government
policies" that was to blame.
"I don't oppose your plans
because I want to protect the rich. I oppose your plans because I want to
protect my neighbours," Rubio said of the president. "This
opportunity – to make it to the middle class or beyond no matter where you
start out in life – it isn't bestowed on us from Washington. It comes from a
vibrant free economy where people can risk their own money to open a
business."
Obama warned of the devastating
effect of about $1tn worth of budget cuts that will automatically kick in this
year if no agreement is reached in Congress to reduce the deficit.
"These sudden, harsh, arbitrary
cuts would jeopardise our military readiness. They'd devastate priorities like
education, energy, and medical research. They would certainly slow our
recovery, and cost us hundreds of thousands of jobs," he said.
But the president said that
Republican proposals to protect defence spending by cutting education, job
training and government health spending even deeper was an "even
worse" idea.
Obama said he would agree to reform
of Medicare and Medicaid, which provide healthcare to the elderly and very
poor, but by changing how the government pays for services.
Instead of cuts to services, the
president said that what is required is to make the rich and big business pay
their fair share. "To hit the rest of our deficit reduction target, we
should do what leaders in both parties have already suggested, and save
hundreds of billions of dollars by getting rid of tax loopholes and deductions
for the well-off and well-connected. After all, why would we choose to make
deeper cuts to education and Medicare just to protect special interest tax
breaks? How is that fair? How does that promote growth?" he said.
Obama used the prospect of better
educated and better trained workers to press for immigration reform.
"Our economy is stronger when
we harness the talents and ingenuity of striving, hopeful immigrants," he
said. "Real reform means establishing a responsible pathway to earned
citizenship – a path that includes passing a background check, paying taxes and
a meaningful penalty, learning English, and going to the back of the line
behind the folks trying to come here legally."
But in a gesture to Republicans who
want tighter controls to stem the inflow of undocumented aliens, Obama promised
tighter control of borders.
Still, Rubio responded by saying
that existing laws need to be better applied before the door is opened to more
immigrants to remain legally.
Source : theguardian
