Obama pledges new deal for US middle class in state of the union address

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