Confronted by a new Republican majority in the U.S. House and a sluggish economy, President Barack Obama offered his second State of the Union address Tuesday night, calling for a new era of cooperation.
The president in no uncertain terms emphasized creating jobs and growing the economy -- both of which require spending -- yet he also promised to curb government spending and reject bills with tacked-on earmarks.
Rising GOP star U.S. Rep. Paul Ryan of Wisconsin, the new chairman of the House Budget Committee, offered the Republican response.
Ryan pledged that the Republicans will pass a budget that will cut spending, lower the national debt and create an environment that will lead to an economic recovery which will see job creation.
With Vice President Joe Biden and new House Speaker John Boehner, R-Ohio, sitting behind him, Obama began the address, acknowledging the new Republican majority.
Tonight I want to begin by congratulating the men and women of the 112th Congress, as well as your new speaker, John Boehner, said Obama. And as we mark this occasion, we are also mindful of the empty chair in this chamber, and pray for the health of our colleague -- and our friend -- Gabby Giffords.
Obama focused on the mass shooting in Tucson and called for both parties to work together.
It's no secret that those of us here tonight have had our differences over the last two years. The debates have been contentious; we have fought fiercely for our beliefs. And that's a good thing. That's what a robust democracy demands. That's what helps set us apart as a nation, said Obama. But there's a reason the tragedy in Tucson gave us pause. Amid all the noise and passions and rancor of our public debate, Tucson reminded us that no matter who we are or where we come from, each of us is a part of something greater -- something more consequential than party or political preference.
We are part of the American family, continued Obama. We believe that in a country where every race and faith and point of view can be found, we are still bound together as one people; that we share common hopes and a common creed; that the dreams of a little girl in Tucson are not so different than those of our own children, and that they all deserve the chance to be fulfilled.
Obama said that the new Republican majority in the House, combined with a Democratic Senate, meant that both parties needed to work together to pass legislation.
New laws will only pass with support from Democrats and Republicans, said Obama. We will move forward together, or not at all -- for the challenges we face are bigger than party, and bigger than politics.
The president then turned to the economy, which remains a severe problem with national unemployment hovering at just under 10 percent.
At stake is whether new jobs and industries take root in this country, or somewhere else, insisted Obama. It's whether the hard work and industry of our people is rewarded. It's whether we sustain the leadership that has made America not just a place on a map, but a light to the world.
We are poised for progress, claimed Obama. Two years after the worst recession most of us have ever known, the stock market has come roaring back. Corporate profits are up. The economy is growing again.
Obama praised Congress for extending tax cuts backed by President George W. Bush in 2001 and 2003 for all Americans during the lame duck session in December.
Thanks to the tax cuts we passed, Americans' paychecks are a little bigger today, said Obama. Every business can write off the full cost of the new investments they make this year. These steps, taken by Democrats and Republicans, will grow the economy and add to the more than one million private sector jobs created last year.
Obama turned toward unemployment which remains a problem across the nation, including Florida where the unemployment remains 12 percent.
Many people watching tonight can probably remember a time when finding a good job meant showing up at a nearby factory or a business downtown, said Obama. You didn't always need a degree, and your competition was pretty much limited to your neighbors. If you worked hard, chances are you'd have a job for life, with a decent paycheck, good benefits, and the occasional promotion. Maybe you'd even have the pride of seeing your kids work at the same company.
That world has changed, continued Obama. And for many, the change has been painful. I've seen it in the shuttered windows of once booming factories, and the vacant storefronts of once busy Main Streets. I've heard it in the frustrations of Americans who've seen their paychecks dwindle or their jobs disappear - proud men and women who feel like the rules have been changed in the middle of the game.
They're right, said Obama. "The rules have changed. In a single generation, revolutions in technology have transformed the way we live, work and do business. Steel mills that once needed 1,000 workers can now do the same work with 100. Today, just about any company can set up shop, hire workers, and sell their products wherever there's an internet connection.
Obama noted that countries like China and India were also undergoing changes to economically challenge the United States.
The competition for jobs is real, said Obama. But this shouldn't discourage us. It should challenge us. Remember - for all the hits we've taken these last few years, for all the naysayers predicting our decline, America still has the largest, most prosperous economy in the world. No workers are more productive than ours. No country has more successful companies, or grants more patents to inventors and entrepreneurs. We are home to the world's best colleges and universities, where more students come to study than any other place on Earth.
We know what it takes to compete for the jobs and industries of our time, said Obama. We need to out-innovate, out-educate, and out-build the rest of the world. We have to make America the best place on Earth to do business. We need to take responsibility for our deficit, and reform our government. That's how our people will prosper. That's how we'll win the future.
Obama called for encouraging American innovation.
Our free enterprise system is what drives innovation, said the president. But because it's not always profitable for companies to invest in basic research, throughout history our government has provided cutting-edge scientists and inventors with the support that they need. That's what planted the seeds for the Internet. That's what helped make possible things like computer chips and GPS.
Fifty years after John F. Kennedy rallied America to engage the Soviet Union in the space race, Obama invoked that moment to call for the nation to face new challenges.
Half a century ago, when the Soviets beat us into space with the launch of a satellite called Sputnik we had no idea how we'd beat them to the moon, said Obama. The science wasn't there yet. NASA didn't even exist. But after investing in better research and education, we didn't just surpass the Soviets; we unleashed a wave of innovation that created new industries and millions of new jobs.
This is our generation's Sputnik moment, he continued. Two years ago, I said that we needed to reach a level of research and development we haven't seen since the height of the space race. In a few weeks, I will be sending a budget to Congress that helps us meet that goal. We'll invest in biomedical research, information technology, and especially clean energy technology - an investment that will strengthen our security, protect our planet, and create countless new jobs for our people.
Obama called for expanding alternative energy. With more research and incentives, we can break our dependence on oil with biofuels, and become the first country to have 1 million electric vehicles on the road by 2015, said Obama.
We need to get behind this innovation, continued Obama. And to help pay for it, I'm asking Congress to eliminate the billions in taxpayer dollars we currently give to oil companies. I don't know if you've noticed, but they're doing just fine on their own. So instead of subsidizing yesterday's energy, let's invest in tomorrow's.
I challenge you to join me in setting a new goal: by 2035, 80 percent of America's electricity will come from clean energy sources, continued Obama. Some folks want wind and solar. Others want nuclear, clean coal, and natural gas. To meet this goal, we will need them all - and I urge Democrats and Republicans to work together to make it happen.
Obama also focused on education, praising the Race to the Top program.
Race to the Top is the most meaningful reform of our public schools in a generation, insisted Obama. For less than one percent of what we spend on education each year, it has led over 40 states to raise their standards for teaching and learning. These standards were developed, not by Washington, but by Republican and Democratic governors throughout the country. And Race to the Top should be the approach we follow this year as we replace No Child Left Behind with a law that is more flexible and focused on what's best for our kids.
Obama also focused on higher education, calling for Congress to make permanent our tuition tax credit - worth $10,000 for four years of college.
The president also used education to touch on immigration.
Today, there are hundreds of thousands of students excelling in our schools who are not American citizens, said Obama. Some are the children of undocumented workers, who had nothing to do with the actions of their parents. They grew up as Americans and pledge allegiance to our flag, and yet live every day with the threat of deportation. Others come here from abroad to study in our colleges and universities. But as soon as they obtain advanced degrees, we send them back home to compete against us. It makes no sense.
I am prepared to work with Republicans and Democrats to protect our borders, enforce our laws and address the millions of undocumented workers who are now living in the shadows, continued Obama. I know that debate will be difficult and take time. But tonight, let's agree to make that effort. And let's stop expelling talented, responsible young people who can staff our research labs, start new businesses, and further enrich this nation.
Obama also called for rebuilding America, focusing on domestic infrastructure.
To attract new businesses to our shores, we need the fastest, most reliable ways to move people, goods, and information - from high-speed rail to high-speed internet, said the president, noting that other counties were catching up to the U.S. on infrastructure.
Obama called for refocusing on infrastructure.
We will put more Americans to work repairing crumbling roads and bridges. We will make sure this is fully paid for, attract private investment, and pick projects based on what's best for the economy, not politicians, said Obama. Within 25 years, our goal is to give 80 percent of Americans access to high-speed rail, which could allow you go places in half the time it takes to travel by car. For some trips, it will be faster than flying - without the pat-down. As we speak, routes in California and the Midwest are already underway.
Obama also called for connecting every part of America to the digital age and called for 98 percent of Americans to have high-speed wireless internet access by 2016.
All these investments - in innovation, education, and infrastructure - will make America a better place to do business and create jobs. But to help our companies compete, we also have to knock down barriers that stand in the way of their success, continued Obama who called for simplifying the tax code.
I'm asking Democrats and Republicans to simplify the system, said Obama. Get rid of the loopholes. Level the playing field. And use the savings to lower the corporate tax rate for the first time in 25 years - without adding to our deficit.
The president called for doubling American exports by 2014 and praised recent free trade agreements, including one with South Korea. Obama also said he would continue to push trade agreements with Panama and Colombia.
Obama pledged to review and reduce government regulations.
When we find rules that put an unnecessary burden on businesses, we will fix them, said Obama. But I will not hesitate to create or enforce commonsense safeguards to protect the American people. That's what we've done in this country for more than a century. It's why our food is safe to eat, our water is safe to drink, and our air is safe to breathe. It's why we have speed limits and child labor laws. It's why last year, we put in place consumer protections against hidden fees and penalties by credit card companies, and new rules to prevent another financial crisis. And it's why we passed reform that finally prevents the health insurance industry from exploiting patients.
The president then turned to the federal health care lawan issue the Republicans hammered on during the 2010 campaign cycle.
Now, I've heard rumors that a few of you have some concerns about the new health care law, said Obama. So let me be the first to say that anything can be improved. If you have ideas about how to improve this law by making care better or more affordable, I am eager to work with you. We can start right now by correcting a flaw in the legislation that has placed an unnecessary bookkeeping burden on small businesses.
What I'm not willing to do is go back to the days when insurance companies could deny someone coverage because of a pre-existing condition, continued Obama. As we speak, this law is making prescription drugs cheaper for seniors and giving uninsured students a chance to stay on their parents' coverage. So instead of re-fighting the battles of the last two years, let's fix what needs fixing and move forward.
The president then turned to the size and scope of the federal government.
We are living with a legacy of deficit-spending that began almost a decade ago. And in the wake of the financial crisis, some of that was necessary to keep credit flowing, save jobs, and put money in people's pockets, said Obama. But now that the worst of the recession is over, we have to confront the fact that our government spends more than it takes in. That is not sustainable. Every day, families sacrifice to live within their means. They deserve a government that does the same.
Obama called for freezing federal domestic spending for the next five years, claiming it would save more than $400 billion in the next ten years.
This freeze will require painful cuts, continued Obama. Already, we have frozen the salaries of hardworking federal employees for the next two years. I've proposed cuts to things I care deeply about, like community action programs. The Secretary of Defense has also agreed to cut tens of billions of dollars in spending that he and his generals believe our military can do without.
Obama addressed Republican criticism that he does not plan to slash enough federal programs.
I recognize that some in this chamber have already proposed deeper cuts, and I'm willing to eliminate whatever we can honestly afford to do without, said Obama. But let's make sure that we're not doing it on the backs of our most vulnerable citizens. And let's make sure what we're cutting is really excess weight. Cutting the deficit by gutting our investments in innovation and education is like lightening an overloaded airplane by removing its engine. It may feel like you're flying high at first, but it won't take long before you'll feel the impact.
Obama cited the Fiscal Commission he set up and noted that they recommended cutting health care spending as well as closing tax loopholes.
This means further reducing health care costs, including programs like Medicare and Medicaid, which are the single biggest contributor to our long-term deficit, continued Obama who added he was open to tort reform.
Obama called for both parties to work together to improve Social Security and then spoke out against extending tax cuts for all Americans.
If we truly care about our deficit, we simply cannot afford a permanent extension of the tax cuts for the wealthiest 2 percent of Americans, insisted Obama. Before we take money away from our schools, or scholarships away from our students, we should ask millionaires to give up their tax break. It's not a matter of punishing their success. It's about promoting America's success.
Obama called for Congress to simplify the individual tax code and hoped that members of both parties would help lower the deficit. The president praised government reorganization efforts and promised a major reform effort.
In the coming months, my administration will develop a proposal to merge, consolidate, and reorganize the federal government in a way that best serves the goal of a more competitive America, said Obama. I will submit that proposal to Congress for a vote - and we will push to get it passed.
Obama also called for more transparency in Congress to rebuild the publics trust in the federal government, noting that he would veto any measures that had earmarked projects in them.
The president praised the nations role in the world, noting the successes in recent months in Iraq. Obama warned that the war on terror continues, more than nine years after the 9/11 attacks.
As we speak, al Qaeda and their affiliates continue to plan attacks against us, noted Obama. Thanks to our intelligence and law enforcement professionals, we are disrupting plots and securing our cities and skies. And as extremists try to inspire acts of violence within our borders, we are responding with the strength of our communities, with respect for the rule of law, and with the conviction that American Muslims are a part of our American family.
We have also taken the fight to al Qaeda and their allies abroad, continued Obama. In Afghanistan, our troops have taken Taliban strongholds and trained Afghan Security Forces. Our purpose is clear - by preventing the Taliban from reestablishing a stranglehold over the Afghan people, we will deny al Qaeda the safe-haven that served as a launching pad for 9/11.
The president noted that American troops would start leaving Afghanistan in July and praised the diminishing role of al Qaeda in Pakistan.
Obama also praised Congress for passing the START treaty with Russia and continued opposition to the regimes of Iran and North Korea.
Obama praised the troops and the sacrifices they and their families have made for the nation.
Tonight, let us speak with one voice in reaffirming that our nation is united in support of our troops and their families. Let us serve them as well as they have served us - by giving them the equipment they need; by providing them with the care and benefits they have earned; and by enlisting our veterans in the great task of building our own nation, said Obama. Our troops come from every corner of this country - they are black, white, Latino, Asian and Native American. They are Christian and Hindu, Jewish and Muslim. And, yes, we know that some of them are gay. Starting this year, no American will be forbidden from serving the country they love because of who they love. And with that change, I call on all of our college campuses to open their doors to our military recruiters and the ROTC. It is time to leave behind the divisive battles of the past. It is time to move forward as one nation.
Obama noted that enacting his vision for the country would not be easy.
We should have no illusions about the work ahead of us, said Obama. Reforming our schools; changing the way we use energy; reducing our deficit - none of this is easy. All of it will take time. And it will be harder because we will argue about everything. The cost. The details. The letter of every law.
And yet, as contentious and frustrating and messy as our democracy can sometimes be, I know there isn't a person here who would trade places with any other nation on Earth, added Obama.
The idea of America endures, said Obama in conclusion. Our destiny remains our choice. And tonight, more than two centuries later, it is because of our people that our future is hopeful, our journey goes forward, and the state of our union is strong. Thank you, God bless you, and may God bless the United States of America.
With members of both parties sitting together after the mass shooting in Tucson, Obamas speech was very different from previous State of the Union addresses which featured members of the presidents party standing up and clapping while the other side sat in silence.
In his response, Republican Ryan said, "Americans are skeptical of both political parties, and that skepticism is justified -- especially when it comes to spending."
"Our nation is approaching a tipping point," insisted Ryan, pointing to the increasing national debt which stands at $14 trillion and calling for reining in government growth and spending. "We are at a moment, where if government's growth is left unchecked and unchallenged, America's best century will be
considered our past century."
Ryan hammered Obama on fiscal issues and noted that unemployment remained a problem despite the administrations two years in office.
Endless borrowing is not a strategy, said Ryan. Spending cuts have to come first.
The Wisconsin congressman noted that the new Republican majority in the House passed a measure to repeal the new health care law and praised limited government.
Ryan was not the only Republican to offer a response to Obama. U.S. Rep. Michele Bachmann of Minnesota, who has been the subject of increasing buzz that she may run for the Republican presidential nomination in 2012, offered a response on behalf of the tea party movement.
Reach Kevin Derby at kderby@sunshinestatenews.com or at (850) 727-0859
