State of the Union Address 2012

:00:23. > :00:26.You are watching a BBC News special. I'm Katty Kay in Washington

:00:26. > :00:31.bringing you live coverage of President Obama's State Of The

:00:31. > :00:36.Union address to a joint session of Congress. 2012 as a critical year

:00:36. > :00:40.for Mr Obama as he seeks re- election in November. Over the next

:00:40. > :00:44.hour he will not only lay out his vision for the country but also the

:00:44. > :00:48.political battle lines on which he will fight his Republican opponent.

:00:48. > :00:52.He is expected to highlight what he thinks are unmistakable signs of

:00:52. > :00:56.economic recovery and he is likely to argue that all Americans should

:00:56. > :01:00.enjoy the same opportunities if they play by the same rules, a

:01:00. > :01:05.reference to recent controversy over tax breaks for the wealthy. We

:01:05. > :01:11.when they get it. He will be

:01:12. > :01:17.speaking in about ten hours... Ten minutes! First let's get some

:01:17. > :01:22.analysis. I'm joined by the deputy editor of Time magazine. What will

:01:22. > :01:29.he say to try to convince Americans that he is worth re-electing?

:01:29. > :01:35.annual ritual is of course not really a speech about the whole

:01:36. > :01:39.country. It is always a political speech, particularly in election

:01:39. > :01:44.years. Particularly in the year when the President is not at all

:01:44. > :01:48.ahead of his rival party. He has an uphill battle for re-election and

:01:48. > :01:52.he is making the case tonight in what we have seen so far of the

:01:52. > :01:57.speech for a new economic blueprint - that's what they are calling it -

:01:57. > :02:03.based on trade, manufacturing, energy, and what he calls a renewal

:02:03. > :02:06.of the miracle values. But it is really a list of things he wants to

:02:06. > :02:15.do in his second term, which a lot of people have said - he hasn't

:02:15. > :02:21.has to tell people, you have to tell people what you plan to do in

:02:21. > :02:25.it. Tonight is when he is hanging the ornaments on that tree. We are

:02:25. > :02:32.seeing the scenes live from Capitol Hill. Give us a sense of what is

:02:32. > :02:36.going on at the moment. It is one of those "Hurry up and wait"

:02:36. > :02:40.moments. That is the vice- president's wife. Everyone takes

:02:40. > :02:45.their place almost in order of protocol. For some reason, the

:02:45. > :02:50.wives are part of it as well, but the congress, at the House, most of

:02:50. > :02:55.the Supreme Court - not all - members of the Cabinet, members of

:02:55. > :03:00.the diplomatic Corps, and usually right on time the President arrives

:03:00. > :03:05.in the chamber but it will take him a while to get to the front of it.

:03:06. > :03:08.We saw Joe Biden go along with the vice-president's wife and the

:03:08. > :03:13.members of the house and the dignitaries coming through that

:03:13. > :03:17.door. That's where we will see President Obama coming in and a few

:03:17. > :03:23.minutes' timnutes' tim then glad hand everybody. Some of those

:03:23. > :03:29.members have been waiting for ages for their chance to shake his hand.

:03:29. > :03:35.All day long. Those seats on the Isle are usually called for early

:03:35. > :03:40.in the day. People sit there, waiting for this hour to arrive.

:03:40. > :03:43.They have sat there for ten hours! Now we wait for the rooms are

:03:43. > :03:50.settled. The President will probably speak for an hour, maybe

:03:50. > :03:55.more, from what we know, tonight, and usually... This is a very

:03:55. > :04:00.important moment. We have congresswoman Gabriel Giffords who

:04:00. > :04:06.was shot just over a year ago in Arizona, making it onto the House

:04:06. > :04:12.Congress. I announced yesterday she would not beuld not be to Congress.

:04:12. > :04:16.They will haey will ha a special election. She gets a standing

:04:16. > :04:23.ovation, one of the non-political moments toniments toniuld be good

:04:23. > :04:29.if there were more than one. deeply partisan, unpleasant moments.

:04:29. > :04:35.Sh Shally lively tonight. We are yet to hear her speak since the

:04:35. > :04:42.shooting a yooting a yer husband is in the gallery with Mrs Obama, and

:04:42. > :04:47.Joe Biden's wife as well. A very popular membpular membress. She

:04:47. > :04:50.will be missed by her colleagues. She was popular before. And this is

:04:50. > :04:58.heartening because she is more active tonight and more focused

:04:58. > :05:02.than we havean we havein the past. By her own husband's account, she

:05:03. > :05:09.has had a much better period of recuperation than people have

:05:09. > :05:13.realised. She is now going to step down. Debbie Gifford's on the floor

:05:13. > :05:17.of the House for the last time as a member of the US House of

:05:17. > :05:21.Representatives. She will be stepping down. They are all

:05:21. > :05:26.standing and waiting now. It looks like there is a hushed descending

:05:26. > :05:32.over the house, waiting for the President to arrive. For some

:05:32. > :05:37.reason I think the Supreme Court is next. Yes, members of the Supreme

:05:37. > :05:43.Court. Not all of them attend. Some of them haven't been years. One of

:05:43. > :05:47.th thsince late Clinton! Someone quoted him saying, "You

:05:47. > :05:52.intend to go when the person who nominated you is speaking of and

:05:52. > :05:58.not when he is not". There is something almost regal about this

:05:58. > :06:04.event, the pomp and ceremony. as close as we come to Majesty in a

:06:04. > :06:10.democracy. They were not wearing their robes, were they? But it used

:06:10. > :06:15.to be known for all the Supreme Court to attend, and now it has

:06:15. > :06:21.become a can do, not must-do. get back to what we expect from the

:06:21. > :06:27.speech. This idea that he is going to try to redress... Just as we

:06:27. > :06:35.talk about that, Michelle Obama coming in, looking stunning in that

:06:35. > :06:41.blue dress. Through her visitors are in that box will reflect what

:06:41. > :06:47.people talk about. A 30-year tradition which began in 1981 when

:06:47. > :06:53.President had symbolic guests up there. It wasn't such a part of the

:06:53. > :06:58.speech, or rather an offstage part of the symbols and signals the

:06:58. > :07:08.President wants to send. Tonight there are some people involved in

:07:08. > :07:11.

:07:11. > :07:18.social services around the country. And Mrs Obama, of course her own

:07:18. > :07:22.drawer. She is the subject of the much-discussed book. He has to

:07:22. > :07:27.reach out during the course of this speech to, what? 40 million

:07:27. > :07:32.Americans watching? Probably at least that, and a country that

:07:32. > :07:37.still has... This is the Cabinet coming in. Still has, on balance,

:07:37. > :07:42.fairly negative views of his performance, not as a person but

:07:42. > :07:49.his performance, particularly in economics. Less so on foreign

:07:49. > :07:53.policy. The Secretary of State, I guessed she should go first,

:07:53. > :07:57.Hillary Clinton. They are the members of Congress coming in for

:07:57. > :08:07.the annual State of the Union address, filing into Capitol Hill

:08:07. > :08:09.

:08:09. > :08:14.to listen to the President You are watching a BBC News special,

:08:14. > :08:17.with the live coverage of President Obama's state of the Union speech.

:08:17. > :08:22.Broadcasting to our we was on PBS in America and also around the

:08:22. > :08:26.world. There we see President Obama is going to be coming into the room

:08:26. > :08:31.fairly soon, we can see Hillary Clinton at shaking hands with John

:08:31. > :08:36.Kerry. This is a big political event here in Washington, broadcast

:08:36. > :08:40.to 43 million Americans last year around the country. And an occasion

:08:40. > :08:44.for the President to lay at his agenda, but also, perhaps,

:08:44. > :08:47.implicitly at least, laid out the battle lines between himself and

:08:47. > :08:51.the Republicans ahead of the election. It is a very strange

:08:51. > :08:55.thing, because everybody expects the speech to be somewhat

:08:55. > :08:58.bipartisan, because it is a state of the Union speech, and it is a

:08:58. > :09:03.chance for any president to lay out an agenda in an environment which

:09:03. > :09:06.is not particularly unpleasant or divisive. But as we shall see, even

:09:06. > :09:10.partisanship does now play a role in tonight's Theatre. And there

:09:10. > :09:16.will be moments when only the Democrats' support and moments when

:09:16. > :09:20.the Republicans are clearly silent. So it is a little strange as an

:09:20. > :09:27.event. It is a political speech in what is supposed to be a non-

:09:27. > :09:30.political environment. Are we going to hear him at laid out his and the

:09:30. > :09:36.Democrats' vision for America, without even necessarily mentioning

:09:36. > :09:39.the Republicans? Is he going to draw a clear contrast between how

:09:39. > :09:45.he would see the country and where he would take the country, and

:09:45. > :09:48.where Republicans would take the country? Yes, he's going to be

:09:48. > :09:51.looking for opportunities all belong to rise above the campaign

:09:51. > :09:56.which is already under way. He will call tonight for a number of things

:09:56. > :09:59.which he hopes both parties can agree on. One of the big ones will

:09:59. > :10:04.be tax reform. He knows that the Republicans want to love a tax

:10:04. > :10:09.rates. He has said in the documents that they have handed out in

:10:09. > :10:13.defence, that he would like to do a broad tax reform. There we have

:10:13. > :10:16.Secretary of State Hillary Clinton embracing Gabriel Giffords, the

:10:16. > :10:20.congresswoman who was shot in Arizona just over a year ago,

:10:20. > :10:25.making a brave return here just before her departure from the US

:10:25. > :10:31.Congress. No accident that she has been given such a prominent

:10:31. > :10:35.position in the room. We are probably going to see a lot of have.

:10:35. > :10:39.Nor is it an accident that Hillary Clinton, a former member of the

:10:39. > :10:49.Senate, is taking time to greet everybody. This is the White House

:10:49. > :10:51.

:10:51. > :10:57.staff coming in now. That is Jim Jack Blum, the new chief of staff,

:10:57. > :11:03.and the ambassador to the United Nations, so there are a number of

:11:03. > :11:07.other people coming in who have cabinet rank. It really is the

:11:07. > :11:11.great and the good of Washington, against the backdrop of the

:11:11. > :11:15.President's themes and these visitors he has placed in the First

:11:15. > :11:20.Lady's box, to illustrate what he wants to talk about. Manufacturing

:11:20. > :11:29.will be one of the big themes denied. And I suspect we will have

:11:29. > :11:32.somebody in one of the boxes he is involved in manufacturing. Energy,

:11:32. > :11:39.particularly natural gas drilling and the jobs that might engender,

:11:39. > :11:43.is going to be another big item in the speech tonight. The last one

:11:43. > :11:46.was this thing they were bumping under values, which is the most

:11:46. > :11:53.political of the bulge, because it is where he is going to talk about

:11:53. > :11:56.fairness. Yes, people are talking about this theme of fairness. And

:11:57. > :12:01.of course this is a country where, perhaps much more but then Europe,

:12:01. > :12:05.there is no resentment of people having made a lot of money.

:12:05. > :12:09.Americans applaud people for making money. And yet we have this debate

:12:09. > :12:12.about whether the system is fair. Especially when you have

:12:12. > :12:17.Republicans arguing about whether their own candidates has the same

:12:17. > :12:20.view about fairness, and who owns what and how you own it, which has

:12:20. > :12:24.definitely been going on in the primaries. It is easier for the

:12:24. > :12:28.President to slide in and say we ought to have a fair tax system, we

:12:28. > :12:34.ought to have a look at the benefits and the brakes that

:12:34. > :12:40.millionaires get. He is going to talk about money and politics

:12:40. > :12:43.denied. Powerful corporate interests play a huge role in

:12:43. > :12:50.Washington, which is not so much fairness as it is about people

:12:50. > :12:53.versus corporations. You mentioned earlier that this is meant to be a

:12:53. > :12:59.non-political speech but will actually end up being a very

:12:59. > :13:02.political speech. Do you think, from the snippets we have seen of

:13:02. > :13:09.it so far from the White House, that this will be a divisive speech

:13:09. > :13:16.in America? I think that on all these fronts, manufacturing, energy,

:13:16. > :13:26.job training, he is going to try to reach out across the aisle.

:13:26. > :13:43.

:13:43. > :13:50.Speaker, the President of the United States. (APPLAUSE).

:13:50. > :13:54.President has arrived and is saying hello to members of Congress. And

:13:54. > :13:57.as you said earlier, some of these members will have been sitting

:13:57. > :14:05.there for hours, waiting for that chance to say hello. He looks

:14:05. > :14:09.remarkably relaxed. A big smile. Behind him is the House majority

:14:09. > :14:14.leader, with whom he tangled over and over again last year on his own

:14:14. > :14:22.domestic agenda. As close as they are in that picture, there are not

:14:22. > :14:31.two people in Washington with less in common. No, they have not always

:14:31. > :14:38.had an amazing relationship at all. You have to wonder if they speak to

:14:38. > :14:41.each other about things they can do together, this ritual show of

:14:41. > :14:48.government unity, it is really just a show. There is always room for

:14:48. > :14:52.the camera. The cameras are important, because of course the TV

:14:52. > :14:56.audience is just as important. And I think I have probably right in

:14:56. > :15:03.assuming that this will be the President's best chance to address

:15:03. > :15:06.the most Americans ahead of the Convention in the summer. Yes, that

:15:06. > :15:10.is why they are going to put everything they can into the speech

:15:10. > :15:13.about what they want to do in that second term. Even if some of it is

:15:14. > :15:20.completely unobtainable with this Congress. It is election

:15:20. > :15:23.advertising. Exactly. The President has an opportunity to sound and

:15:23. > :15:26.propose things that could be bipartisan, even though I think

:15:26. > :15:30.you'll see from the reaction that are very few of them may actually

:15:31. > :15:36.turn out to be. So it is an opportunity to lay out an agenda,

:15:36. > :15:40.and to do so in what appears to be a bipartisan arrangement, but in

:15:40. > :15:45.the end, what we have here is a campaign speech. With a very big

:15:45. > :15:50.audience. Yes, and it will be a long time before the President gets

:15:50. > :15:56.another audience like this. important is the speech tonight in

:15:56. > :16:00.the context of Barack Obama's chances of getting elected? Well,

:16:00. > :16:03.the fight in the election in 2012 will be about independent votes. He

:16:03. > :16:07.will get most of the Democratic votes and the Republican candidate

:16:07. > :16:12.will get most of the Republican votes. So it tonight is about

:16:12. > :16:16.people who are not affiliated with either party, who have an open mind

:16:16. > :16:26.about but Obama and to whether the Republican nominee is. Whether he

:16:26. > :16:29.

:16:29. > :16:33.can convince them that he is the best candidate for 2008. We talked

:16:33. > :16:38.about the power or of being an incumbent president, and how that

:16:38. > :16:44.improves your chances over your opponents. And this state of the

:16:44. > :16:48.Union address is part of that power. Americans like two turn presidents.

:16:48. > :16:54.They like the continuity that comes with it. They do not like it for a

:16:54. > :16:58.somebody out after four years. They have done that, but they do not

:16:58. > :17:07.love politics and off to do it on a regular basis. They are not

:17:07. > :17:17.Italians. No, they are not Italians. Here he is talking to the Joint

:17:17. > :17:21.Chiefs of Staff. Always part of the ritual, it always takes him a good

:17:21. > :17:25.long time to actually get up on the podium and begin the address.

:17:25. > :17:35.a lot of people do not get to see him outside of the context of

:17:35. > :17:41.

:17:41. > :17:45.speeches. And there he is saying hello to Gabriel Giffords. She's

:17:46. > :17:55.getting special attention there from the President. Again, quite

:17:56. > :17:59.

:17:59. > :18:03.strategically placed. Here he goes, up to the podium. Let's listen to

:18:03. > :18:06.President Barack Obama giving his annual State of the Union address

:18:06. > :18:09.to members of Congress, gathered diplomatic staff, members of

:18:09. > :18:15.government, and of course the tens of millions of Americans who will

:18:15. > :18:17.be watching this speech. He hands over a copy of the speech to the

:18:17. > :18:27.Vice-President and the Speaker of the house before addressing the

:18:27. > :18:51.

:18:51. > :18:54.rest of the country. Members of Congress, I have a high privilege

:18:54. > :19:04.and that a stint on of presenting to you the President of the United

:19:04. > :19:12.

:19:12. > :19:22.States. -- distinct on off. Thank you. Thank you. Thank you so

:19:22. > :19:25.

:19:25. > :19:32.much. They queue very much. Please be seated. Mr Speaker, Mr vice-

:19:32. > :19:39.president, members of Congress, distinguished guests and fellow

:19:39. > :19:44.Americans. Last month I went to Andrews Air Force base and are

:19:44. > :19:49.welcomed home this summer of our last troops to serve in Iraq.

:19:49. > :19:57.Together, we offered a final proud salute to the colours under which

:19:57. > :20:00.more than at one million of our fellow-citizens fork. -- fought.

:20:00. > :20:04.And several thousand gave their lives. We gather tonight knowing

:20:04. > :20:14.that this generation of heroes has made the United States so far, and

:20:14. > :20:29.

:20:29. > :20:39.more respected around the world. (APPLAUSE). For the first time, in

:20:39. > :20:40.

:20:40. > :20:44.nine years, there are no Americans fighting in Iraq. For the first

:20:44. > :20:54.time in two decades, or summer been Laden is not a threat to this

:20:54. > :21:05.

:21:05. > :21:09.country. -- a summer Bin Laden. -- Osama bin Laden. Most of Al-Qaeda's

:21:09. > :21:17.top lieutenant have been defeated. The Taliban's momentum has been

:21:17. > :21:23.broken. And some troops in Afghanistan have begun to come home.

:21:23. > :21:29.These achievements are a testament to the courage, selflessness and

:21:29. > :21:35.teamwork of America's armed forces. At a time when too many of our

:21:35. > :21:40.institutions have let us down, they exceed all expectations. They are

:21:40. > :21:50.not consumed with personal ambition. They do not obsess over their

:21:50. > :21:50.

:21:51. > :22:00.differences. They focus on the mission at hand. They work together.

:22:01. > :22:03.

:22:03. > :22:10.Imagine what we could accomplish if we followed their example. Think

:22:10. > :22:14.about the America within our reach. A country that leads the world in

:22:14. > :22:18.educating its people. An America that attracts a new generation of

:22:18. > :22:25.hi-tech manufacturing and higher- paying jobs. A future where we are

:22:25. > :22:29.in control of our own energy. And our security and prosperity are not

:22:29. > :22:36.so tied to unstable parts of the world. An economy built to last,

:22:36. > :22:44.where hard work pays off and responsibility is rewarded. We can

:22:44. > :22:46.do this. I know we can because we have done it before. At the end of

:22:46. > :22:50.World War II, when another generation of heroes returned home

:22:50. > :23:00.from combat, they built the strongest economy and middle class

:23:00. > :23:05.

:23:05. > :23:13.My grandfather, a veteran of General Patton's army, got the

:23:13. > :23:17.chance to go to college on the GI Bill. My grandmother, who worked on

:23:17. > :23:21.a bomber assembly line, was part of the work force that turned out the

:23:21. > :23:27.best products on earth. The two of them shared the optimism of a

:23:27. > :23:32.nation that had triumphed over fascism. They understood they were

:23:32. > :23:38.part of something larger. They were contributing to a story of success

:23:38. > :23:44.that every American hamerican ha to share - the basic American promise

:23:44. > :23:48.that, if you worked hard, you could do well enough to raise a family,

:23:48. > :23:54.own a home, send your kids to college and put a little away for

:23:54. > :24:04.retirement. The defining issue of our time is how to keep that

:24:04. > :24:07.

:24:07. > :24:11.promise alive. No challenge is more urgent. No debate is more important.

:24:11. > :24:16.We should not settle for a country where a shrinking number of people

:24:16. > :24:21.do really well and a growing number of Americans barely get by. Where

:24:21. > :24:25.we can restore an economy where everyone does their fair share and

:24:25. > :24:35.everyone plays by the same set of rules.

:24:35. > :24:44.

:24:44. > :24:53.What is at stake are not democratic or Republican values but American

:24:53. > :24:58.values. We have to reclaim them. Let's remember how we got here.

:24:58. > :25:02.Long before the recession, jobs in manufacturing began leaving our

:25:02. > :25:08.shores. Technology made businesses more efficient but also made some

:25:08. > :25:12.jobs obsolete. Most of the top saw their incomes rise like never

:25:12. > :25:17.before. But most hard-working Americans struggled with costs that

:25:17. > :25:26.were growing, pay cheques that were not, and personal debt that kept

:25:26. > :25:32.piling up. In 2008, the house of cards collapsed. Mortgages had been

:25:32. > :25:37.sold to people who could not afford them. Banks had made huge bets and

:25:37. > :25:43.bonuses with other people's money. Regulators had looked the other way,

:25:43. > :25:50.or didn't have the authority to stop the bad behaviour. It was

:25:50. > :25:55.wrong. It was irresponsible. And it plunged our economy into a crisis

:25:55. > :26:01.that put millions out of work, saddled us with more debt and left

:26:01. > :26:06.innocent, hard-working Americans holding the debt. In the six months

:26:06. > :26:10.before I took office, we lost nearly 4 million jobs, and we lost

:26:10. > :26:20.another 4 million before our policies were in full effect. Those

:26:20. > :26:30.are the facts. But so are these: In the last 22 months, businesses have

:26:30. > :26:41.

:26:41. > :26:46.created more than 3 million jobs. Last year, they created the most

:26:46. > :26:51.jobs since 2005. American manufacturers are hiring again,

:26:52. > :26:56.creating jobs for the first time since the late 1990s. Together we

:26:56. > :27:02.have agreed to cut the deficit by more than two trillion dollars, and

:27:02. > :27:12.we put in place new rules to a halt Wall Street accountable so a crisis

:27:12. > :27:13.

:27:14. > :27:18.like this never happens again. APPLAUSE.

:27:18. > :27:24.The state of our union is getting stronger. And we have come too far

:27:24. > :27:30.to turn back now. As long as I am President, I will work with anyone

:27:30. > :27:33.in this chamber to build on this momentum. I intend to fight

:27:33. > :27:39.obstruction with action and I will oppose any effort to return to the

:27:39. > :27:49.same policies that brought on this economic crisis in the first place.

:27:49. > :27:58.

:27:58. > :28:04.No, we will not go back to an economy weakened by its outsourcing,

:28:04. > :28:09.bad debt and phoney financial promises. Tonight I want to speak

:28:09. > :28:15.about how we move forward, lay down a blueprint for an economy built to

:28:15. > :28:23.last. An economy built on American manufacturing, American energy,

:28:23. > :28:29.skills for American workers and renewal of American values. This

:28:29. > :28:33.blueprint begins with American manufacturing. On the day I took

:28:33. > :28:40.office, our auto industry was on the verge of collapse. Some even

:28:40. > :28:44.said we should let it die. With one million jobs at stake, I refused to

:28:44. > :28:50.let that happen. In exchange for help, we demanded responsibility.

:28:50. > :28:55.We got workers and auto makers to settle their differences. We got

:28:55. > :29:05.the industry to restructure. Today General Motors is back on top as

:29:05. > :29:15.

:29:15. > :29:21.the world's Number One auto maker. Chrysler has grown faster in the US

:29:21. > :29:28.than any major car company. Ford is investing billions in US plants and

:29:28. > :29:35.factories. Together the entire industry added nearly 160,000 jobs.

:29:35. > :29:45.We bet on American workers. We bet on American ingenuity, and tonight

:29:45. > :29:53.

:29:53. > :29:58.the American auto industry is back. What's happening in Detroit can

:29:58. > :30:07.happen in other industries. It can happen in Cleveland and Pittsburgh

:30:07. > :30:13.and we can't bring every job back that has left our shore but right

:30:13. > :30:17.now it is getting more expensive to do business in places like China.

:30:17. > :30:21.Meanwhile, America is more productive. A few weeks ago, the

:30:21. > :30:31.CEO of a company told me it now makes business sense for him to

:30:31. > :30:36.

:30:36. > :30:45.Today, for the first time in 15 years, the Company's unionise plant

:30:45. > :30:52.in Milwaukee is running at full capacity. So we have a huge

:30:52. > :30:57.opportunity at this moment to bring manufacturing back, but we have to

:30:57. > :31:02.seize it. Tonight my message to business leaders is simple - ask

:31:02. > :31:12.yourself what you can do to bring jobs back to your country, and your

:31:12. > :31:13.

:31:13. > :31:20.country will do everything we can APPLAUSE.

:31:20. > :31:25.We should start with our tax codes. Right now, companies get tax breaks

:31:25. > :31:29.for moving jobs and profits overseas. Meanwhile, companies that

:31:29. > :31:34.choose to stay in America get hit with one of the highest tax rate in

:31:34. > :31:41.the world. It makes no sense and everyone knows it. So let's change

:31:41. > :31:51.it. First, if you are a business that wants to outsource jobs, you

:31:51. > :31:52.

:31:52. > :32:02.shouldn't get a tax deduction for That money should be used to cover

:32:02. > :32:02.

:32:02. > :32:07.moving expenses for companies that decide to bring jobs home. Second,

:32:07. > :32:17.no American company should be able to avoid paying its fair share of

:32:17. > :32:20.taxes by moving jobs and profits overseas. From now on, every

:32:20. > :32:24.multinational company should have to pay a basic minimum tax, and

:32:24. > :32:34.every penny should go towards lowering taxes for companies that

:32:34. > :32:36.

:32:36. > :32:44.choose to stay here and higher here in America. -- hire.

:32:44. > :32:49.APPLAUSE. Third, if you are an American

:32:49. > :32:53.manufacturer, you should get a bigger tax cut. If you are a hi-

:32:53. > :32:58.tech manufacturer, we should double the tax reduction you get for

:32:58. > :33:02.making your product here. If you want to relocate in a community

:33:02. > :33:08.that was hit hard, you should get help financing a new plant,

:33:08. > :33:13.equipment and training for new workers. So my message is simple -

:33:13. > :33:20.it is time to stop rewarding businesses that sheet jobs overseas

:33:20. > :33:24.and start rewarding companies that create jobs in America. Send me

:33:24. > :33:34.these tax reforms and I will sign them right away.

:33:34. > :33:37.

:33:37. > :33:40.APPLAUSE. We are also making it easier for

:33:40. > :33:49.American businesses to sell products all over the world. Two

:33:49. > :33:53.years ago I set a goal of doubling US exports over five years. With

:33:53. > :33:59.our trade agreements, we are on track to meet that goal ahead if

:34:00. > :34:06.schedule. Soon there will be millions of new customers for

:34:06. > :34:11.American goods in Panama, Colombia and South Korea. Soon there will be

:34:11. > :34:19.new cars on the streets of Seoul imported from Detroit, Toledo and

:34:19. > :34:25.Chicago. I will go anywhere in the world to open new markets for

:34:25. > :34:30.American products. And I will not stand by when our competitors don't

:34:30. > :34:34.play by the rules. We have brought trade cases against China at nearly

:34:34. > :34:44.twice the rate of the last administration - that has made a

:34:44. > :34:50.difference. Over 1,000 Americans are working today because we

:34:50. > :34:54.stopped a surge in Chinese tyres, but we need to do more. It is not

:34:54. > :35:00.right when another country let's our movies, music and software be

:35:00. > :35:05.pirated. It's not fair when foreign manufacturers have a leg up on ours

:35:05. > :35:08.because they are heavily subsidised. Tonight I'm announcing the creation

:35:08. > :35:12.of the Trade Enforcement Unit that will be charged with investigating

:35:12. > :35:19.unfair trading practices in countries like China. There will be

:35:19. > :35:23.more inspections to prevent counterfeit or unsafe goods from

:35:23. > :35:27.crossing our borders, and this congress should make sure that no

:35:27. > :35:32.foreign company has an advantage over American manufacturing when it

:35:32. > :35:40.comes to accessing financing or new markets like Russia. Alan markets

:35:40. > :35:45.are the most productive on earth and, if the ground is level, I

:35:45. > :35:55.promise you, America will always win.

:35:55. > :35:59.

:35:59. > :36:03.I also hear from many business leaders who want to hire in the

:36:03. > :36:06.United States but can't find workers with the right skills.

:36:06. > :36:12.Growing industries and science and technology have twice as many

:36:12. > :36:16.openings as we have workers who can do the job. Think about that.

:36:16. > :36:25.Openings at a time when millions of Americans are looking for work. It

:36:25. > :36:32.is inexcusable, and we know how to fix it. Jackie is a single mum from

:36:32. > :36:36.North Carolina who was laid off from her job as a mechanic. When

:36:36. > :36:42.Siemens opened against her blind factory, they formed a partnership

:36:42. > :36:47.with the Central College. -- turbine factory. They gave her a

:36:47. > :36:52.course in robotics training, paid her tuition and hired her to help

:36:52. > :36:59.operate the plant. I want every American looking for work to have

:36:59. > :37:02.the same opportunity as Jackie did. Join me in a national commitment to

:37:02. > :37:12.train 2 million Americans with skills that will lead directly to a

:37:12. > :37:19.

:37:19. > :37:23.job. My administration has already lined

:37:23. > :37:27.up more companies that want to help. Model partnerships between

:37:27. > :37:32.businesses like Siemens and community colleges in places like

:37:32. > :37:36.Charlotte, Orlando and Louisville are up and running. Now you need to

:37:36. > :37:40.give more community colleges the resources they need to become

:37:40. > :37:45.community Career centres, places that teach people skills that

:37:45. > :37:50.businesses are looking for right now. From Data Management a hi-tech

:37:50. > :37:54.manufacturing. And I want to cut through the maze of confusing

:37:54. > :37:57.training programme so that, from now on, people like Jackie have one

:37:57. > :38:03.programme, one website and one place to go for all the information

:38:04. > :38:13.and help that they need. It is time to turn our unemployment system

:38:14. > :38:23.

:38:23. > :38:28.into a re-employment system that These reforms will help people get

:38:28. > :38:34.jobs that are open today. But to prepare for the jobs of tomorrow,

:38:34. > :38:37.our commitment to skills and education have to start earlier.

:38:38. > :38:41.For less than 1% of what our nation spent on education each year, we

:38:41. > :38:45.have convinced nearly every state in the country to raise their

:38:45. > :38:53.standards for teaching and learning. The first time that has happened in

:38:53. > :38:58.a generation. But challenges remain. And we now have to solve them. At a

:38:58. > :39:04.time when other countries are doubling down on education, tight

:39:04. > :39:08.budgets have forced state to lay off thousands of teachers. We know

:39:09. > :39:14.a good teacher can increase of the lifetime income of a classroom by

:39:14. > :39:20.over $250,000. A great teacher can offer an escape from poverty. To

:39:20. > :39:23.their childhood dreams beyond his circumstance. Every person in this

:39:23. > :39:29.chamber can point to a teacher who changed the trajectory of their

:39:29. > :39:32.lives. Most teachers worked tirelessly, with modest pay.

:39:32. > :39:39.Sometimes they did into their own pockets for school suppliers, just

:39:39. > :39:43.to make a difference. -- supplies. Teachers matter. So instead of

:39:43. > :39:49.bashing them, or defending the status quo, that of the schools a

:39:49. > :39:55.deal. Defender resources to keep good teachers on the job and reward

:39:55. > :39:59.the best ones. -- div again that the resources. And in return, I

:39:59. > :40:03.grant schools flexibility, to teach with creativity and passion. To

:40:03. > :40:11.stop teaching to the test. And to replace teachers to work just not

:40:11. > :40:21.helping kids alone. That is a Biden worth making. APPLAUSE. -- that is

:40:21. > :40:21.

:40:21. > :40:25.a Biden are worth making. We also know that when students do

:40:25. > :40:34.not walk away from their education, are more of them walk the stage to

:40:34. > :40:44.get their diploma. When students are not allowed to drop out they do

:40:44. > :40:45.

:40:45. > :40:55.better. So tonight, I am proposing that every state requires that all

:40:55. > :41:04.

:41:04. > :41:07.students stay in high school until they graduate or turn 18. When kids

:41:07. > :41:12.do graduate, the most daunting challenge can be the cost of

:41:12. > :41:17.college. At a time when Americans were more intuition debt and credit

:41:17. > :41:27.card debt, this Congress needs to stop the interest rates on student

:41:27. > :41:33.

:41:33. > :41:36.loans from Dublin in July. -- from the double wing in July. Extend the

:41:36. > :41:41.tuition tax credit we began, which saves millions of middle class

:41:41. > :41:47.families thousands of dollars. And give more young people the chance

:41:47. > :41:55.to earn their way through college by doubling the number of work

:41:55. > :42:01.study jobs in the next five years. Of course, it is not enough for us

:42:01. > :42:05.to increase student aid. We cannot just keep subsidising sky rocketing

:42:05. > :42:11.tuition. Will we will run out of money. States also need to do that

:42:11. > :42:15.part, by making higher education a higher priority in their budgets.

:42:15. > :42:19.And colleges and universities have to do that part, by working to keep

:42:19. > :42:25.costs down. Recently I spoke with a group of college president to have

:42:25. > :42:29.done just that. Some schools redesign courses to help students

:42:29. > :42:35.finish more quickly. Some use better technology. The point is, it

:42:35. > :42:38.is possible. So there to be put colleges and universities on notice.

:42:38. > :42:44.If you cannot stop tuition from going up, up the funding you get

:42:44. > :42:48.from taxpayers will go down. Higher education cannot be a luxury. It is

:42:48. > :42:54.an economic imperative, that every family in America should be able to

:42:54. > :42:59.afford. Let's also remember that hundreds of thousands of talented,

:42:59. > :43:04.hard-working students in this country face another challenge. The

:43:04. > :43:10.fact that they are not yet American citizens. Many were brought here as

:43:10. > :43:16.small children. They are American through and through. Yet David

:43:16. > :43:18.every day with the threat of deportation. -- and eight lives.

:43:18. > :43:22.Others came more recently, to study science and business and

:43:22. > :43:26.engineering. But as soon as we -- as soon as they get that degree, we

:43:26. > :43:30.sent them home, to create new products and create new jobs

:43:30. > :43:35.somewhere else. That does not make sense. I believe as strongly as

:43:35. > :43:38.about that we should take on illegal immigration. That is why my

:43:38. > :43:41.administration has put more soldiers on the border than ever

:43:41. > :43:49.before. That is why there are fewer illegal crossings and when I took

:43:49. > :43:54.office. Are the opponents of action are out of excuses. We should be

:43:54. > :44:04.working on comprehensive immigration reform right now.

:44:04. > :44:12.

:44:12. > :44:17.APPLAUSE. But if election-year politics keeps congas from acting

:44:17. > :44:20.on accomplice -- Comprehensive Plan, let's at least agree to stop

:44:21. > :44:25.expelling responsible young people who want to start new businesses,

:44:25. > :44:35.defend this country. Send me a ball that gives them the chance to earn

:44:35. > :44:44.

:44:44. > :44:48.their citizenship. I will sign it right away. APPLAUSE. An economy

:44:48. > :44:54.built to last is one where we encouraged the talent and ingenuity

:44:54. > :45:04.of everybody in this country. That means women issued an equal pay for

:45:04. > :45:13.

:45:13. > :45:18.equal work. -- women should learn. -- burn. -- earn. It means we

:45:18. > :45:23.should support everyone he is willing to work. And every risk-

:45:23. > :45:29.taker and on to open door, who aspires to become the next Steve

:45:29. > :45:32.Jobs. After all, innovation is what America has always been about. Most

:45:32. > :45:38.new jobs are created in small businesses. So let pass an agenda

:45:38. > :45:43.that helps them succeed. Tear down regulations that prevent aspiring

:45:43. > :45:47.entrepreneur has to get in the financing they need. Expand tax

:45:47. > :45:51.ruling to small businesses that are creating wages and new jobs. Both

:45:51. > :46:01.parties agree on these ideas, so put them in a bill, and get it on

:46:01. > :46:06.

:46:06. > :46:09.my desk this year. Innovation also demands basic research. Today, the

:46:09. > :46:16.discoveries taking place in our federally financed labs and

:46:16. > :46:19.universities could lead to new treatments that kill cancer cells

:46:19. > :46:24.but leave healthy ones untouched. New lightweight body armour for

:46:24. > :46:30.cops and soldiers that can stop any board. Do not doubt these

:46:30. > :46:33.investments in our budget. Do not let other countries when the race

:46:34. > :46:37.for the future. Support the same kind of research and innovation

:46:37. > :46:44.that led to the computer chip and the internet. To new American jobs,

:46:44. > :46:50.and new American industries. And no way is the promise of innovation

:46:50. > :46:54.great event in American made energy. -- know where. Over the last three

:46:54. > :47:00.years, we have opened millions of new acres for oil and gas

:47:00. > :47:03.exploration. And tonight I am directing my administration to open

:47:03. > :47:13.more than 75% of our potential offshore and gas resources.

:47:13. > :47:18.

:47:18. > :47:27.APPLAUSE. Right now, American oil production is a high as two that it

:47:27. > :47:37.has been in eight years. -- heist. Not only that, last year we relied

:47:37. > :47:38.

:47:38. > :47:44.less on foreign oil found in any of the past 16 years. But with only 2%

:47:44. > :47:49.of the world's oil reserves, oil is not enough. This country needs an

:47:49. > :47:59.all out, all of the about strategy, that develops every available

:47:59. > :48:07.

:48:07. > :48:14.source of American energy. APPLAUSE. A strategy that is cleaner, cheaper,

:48:14. > :48:22.and full of new jobs. We have a supply of natural gas that can last

:48:22. > :48:26.America nearly 100 years. And my administration will take every

:48:26. > :48:32.possible action to safely develop this energy. The experts believe

:48:32. > :48:36.this will support more than 600,000 jobs by the end of the decade. And

:48:36. > :48:41.I are requiring all companies that drill for gas on public land to

:48:41. > :48:45.disclose the chemicals they use. So Amr a double develop this resource

:48:45. > :48:49.without putting the health and safety of our citizens at risk. --

:48:49. > :48:52.America will develop. The development of natural gas will

:48:52. > :48:56.create factories that a cleaner and cheaper, proving that we do not

:48:56. > :49:04.have to choose between our environment and our economy. And by

:49:04. > :49:07.the way, it was public research dollars, over the course of 30

:49:07. > :49:11.years, that helped develop the technology is to extract all this

:49:11. > :49:14.natural gas out of shale rock. Reminding us that government

:49:14. > :49:24.support is critical in helping businesses get new energy ideas off

:49:24. > :49:26.

:49:26. > :49:31.the ground. APPLAUSE. What is true for natural gas is just as true for

:49:31. > :49:35.clean energy. In three years, our partnership with the private sector

:49:35. > :49:40.has already positioned America to be the world's leading manufacturer

:49:40. > :49:44.of hi-tech batteries. Because of federal investments, a renewable

:49:44. > :49:51.energy use has nearly doubled. And thousands of Americans have jobs

:49:51. > :49:55.because of it. When Brian was laid off from his job making furniture,

:49:55. > :50:01.he said he worried that at 55, nobody would give him a second

:50:01. > :50:09.chance. But he found work, at energetic, a wind tower buy-back

:50:09. > :50:13.factory in Michigan. -- turbine. Before the recession, it only made

:50:13. > :50:19.a luxury yachts. But now it is hiring workers like Brian, he said,

:50:19. > :50:24.I am proud to be working in the industry of the future. Our

:50:25. > :50:29.experience with shale gas and with natural gas shows us that the pay-

:50:29. > :50:34.offs of these public investments do not always come right away. Some

:50:34. > :50:39.technologies do not pan out. Some companies fail. But I will not walk

:50:39. > :50:49.away from the promise of clean energy. I warned not to walk away

:50:49. > :50:59.

:50:59. > :51:02.from a workers like Brian. -- I will not. APPLAUSE. I will not give

:51:02. > :51:06.the wind or solo or battery industry to China or Germany

:51:06. > :51:11.because we refuse to make the same commitment here. We have subsidised

:51:11. > :51:19.oil companies for a ces for a cet is long enough. It is time to end

:51:19. > :51:29.the tax paid giveaways to an industry that is more profitable

:51:29. > :51:33.

:51:33. > :51:39.and... Create these jobs. We can also spur energy innovation with

:51:39. > :51:44.new incentives. The differences in these changes may be too deep right

:51:44. > :51:47.now to pass a comprehensive plan on climate change. But there is no

:51:47. > :51:54.reason why, this should not at least set a clean energy standards

:51:54. > :52:01.that creates a market for innovation. -- Congress. So far you

:52:01. > :52:04.have not had to. Well, tonight, I will. I am directing my

:52:04. > :52:12.administration to about the development of clean energy on and

:52:12. > :52:18.off publicly urged to power 3 million homes. -- public land. And

:52:18. > :52:21.the Department of Defence, working with us, at the world's largest

:52:21. > :52:25.consumer of energy, will make one of the largest commitments to clean

:52:25. > :52:35.energy in history. The Navy will be purchasing and a capacity to power

:52:35. > :52:40.

:52:40. > :52:46.3 million homes every year. -- a Of course, the easiest way to save

:52:46. > :52:50.money is to waste less energy, so here's a proposal - help

:52:50. > :52:57.manufacturers eliminate energy waste in their factories and give

:52:57. > :53:00.businesses incentives to operate their buildings. Their energy bills

:53:00. > :53:05.will be $100 billion lower over the next decade and America will have

:53:05. > :53:13.less pollution, more manufacturing, more jobs for construction workers

:53:13. > :53:19.who need them. Send me a bill that creates these jobs.

:53:19. > :53:23.APPLAUSE. Building this new energy future

:53:23. > :53:30.should be just one part of a broader agenda to repair America's

:53:30. > :53:35.infrastructure. So much of America needs to be rebuilt. We have got

:53:35. > :53:39.crumbling roads and bridges, a power grid that wastes too much

:53:40. > :53:42.energy, and in complete high-speed broadband network that prevents a

:53:43. > :53:49.small business owner in rural America from selling their products

:53:49. > :53:55.all over the world. During the Great Depression, America built the

:53:55. > :54:00.Hoover dam and the Golden Gate Bridge. After World War II, we

:54:00. > :54:04.connected our states with this system of highways. Democratic and

:54:04. > :54:08.Republican administrations invested in great projects that benefited

:54:08. > :54:13.everybody from the workers who built them to the businesses that

:54:13. > :54:17.still use them today. In the next few weeks, I will sign an executive

:54:17. > :54:23.order clearing away the red tape that slows down to many

:54:24. > :54:28.construction projects, but you need to fund these projects. Take the

:54:28. > :54:35.money we are no longer spending the at war, used heart of it to pay our

:54:35. > :54:45.debt, and use the rest to do some nation-building at home.

:54:45. > :54:51.

:54:51. > :54:54.There's never been a better time to build. Especially since the

:54:54. > :55:00.construction industry was one of the hardest hit when the housing

:55:00. > :55:04.bubble burst. Of course, construction workers were not the

:55:04. > :55:09.only ones who work hurt. So were millions of innocent Americans who

:55:09. > :55:13.have seen their home values decline, and, while government can't fix the

:55:13. > :55:19.problem on its own, responsible homeowners should not have to sit

:55:19. > :55:22.and wait for the housing market to hit bottom to get some relief. And

:55:22. > :55:27.that's why I'm sending this Congress a plan that gives every

:55:27. > :55:32.responsible homeowner the chance to save around $3,000 the year on

:55:32. > :55:38.their mortgage by refinancing at historically low rates. No more red

:55:38. > :55:42.tape, no more runaround from the banks. A small fee on the largest

:55:42. > :55:45.financial institutions will ensure it does not add to the deficit and

:55:45. > :55:55.will give those banks rescued by taxpayers the chance to repay a

:55:55. > :55:59.

:55:59. > :56:06.deficit of trust. APPLAUSE.

:56:07. > :56:10.Let's never forget - millions of Americans who work hard and play by

:56:10. > :56:15.the rules every day deserve a government and financial system

:56:15. > :56:22.that do the same. It is time to apply the same rules from top to

:56:22. > :56:25.bottom - no bail-outs, no handouts and no copper arts. And America

:56:25. > :56:28.built to last insists on responsibility from everybody.

:56:28. > :56:32.We've all paid the price for lenders who have sold mortgages to

:56:32. > :56:38.people who could not afford them and buyers who knew they could not

:56:38. > :56:46.afford them. That's why we need smart regulations to prevent

:56:46. > :56:54.irresponsible behaviour. APPLAUSE.

:56:55. > :56:59.Rules to prevent financial fraud or toxic dumping or faulty medical

:56:59. > :57:04.devices - these don't destroy the free market. They make the free

:57:04. > :57:10.market work better. There's no question that some regulations are

:57:10. > :57:17.outdated, unnecessary or too costly. In fact, I'd have proved fewer

:57:17. > :57:22.regulations in the first three years of my presidency than my

:57:22. > :57:27.Republican predecessor did in his. I've ordered every federal agency

:57:27. > :57:31.to eliminate brawls that don't make sense. We have already announced

:57:31. > :57:36.over 500 reforms and just a fraction of them will save business

:57:36. > :57:40.and citizens more than $10 billion over the next five years. We got

:57:40. > :57:45.rid of one rule from 40 years ago that could have forced some dairy

:57:45. > :57:50.farmers to spend $10,000 a year proving they could contain a spill

:57:50. > :58:00.because milk was somehow classified as an oil. With the roar like that,

:58:00. > :58:01.

:58:01. > :58:07.I guess it was worth crying over spilt milk. -- a rule like that.

:58:07. > :58:17.I'm confident a farmer could contain a milk spill without a

:58:17. > :58:27.

:58:27. > :58:33.federal agency looking over his But I will not back down from

:58:33. > :58:43.making sure UN oil company can contain the kind of oil spell we

:58:43. > :58:48.

:58:48. > :58:58.I will not back down from protecting our kids from Mercury

:58:58. > :58:59.

:59:00. > :59:05.poisoning or making sure that our food is safe and a water is clean.

:59:05. > :59:09.-- our water is clean. I will not go back to the days when insurance

:59:09. > :59:17.companies could charge women differently than men.

:59:17. > :59:22.APPLAUSE. And I will not go back to move the

:59:22. > :59:29.days when Wall Street was allowed to play by its own set of rules.

:59:29. > :59:32.The new rules we passed restore what should be any financial

:59:32. > :59:38.system's core purpose - getting funding to entrepreneurs with the

:59:38. > :59:43.best idea, and giving homes to responsible families that want to

:59:44. > :59:48.buy a home, start the business or send their kids to college. So, if

:59:48. > :59:53.you are a big bank or financial institution, you are no longer

:59:53. > :00:01.allowed to make risky bets with your customers' deposits. You are

:00:01. > :00:05.required to write a living will underlining how are you will pay

:00:05. > :00:13.back your investors because the rest of us are not dialling you're

:00:13. > :00:17.out again. -- bailing you out again. If you are mortgage lender or a

:00:17. > :00:23.credit card company, the days of signing people up for products they

:00:23. > :00:28.can't afford with deceptive practices - those days are over.

:00:28. > :00:38.Today American consumers finally have a watchdog with one job - to

:00:38. > :00:43.

:00:43. > :00:47.look out for them. We will also establish a financial

:00:47. > :00:51.crimes unit of highly trained investigators to crackdown on

:00:51. > :00:55.large-scale fraud and protect people's investments. Some

:00:55. > :01:00.financial firms violate major anti- fraud laws because there is no real

:01:00. > :01:04.penalty for being a repeat offender. That's bad for consumers, and it's

:01:04. > :01:09.bad for the vast majority of bankers and financial service

:01:09. > :01:14.professionals who do the right thing. So pass legislation to make

:01:14. > :01:19.the penalties for fraud count, and tonight I'm asking my attorney

:01:19. > :01:23.general to create a special unit of leading state attorney generals to

:01:23. > :01:27.expand our investigations into the abuse of packaging and risky

:01:28. > :01:31.mortgages that led to the housing crisis. This new unit will hold

:01:32. > :01:35.accountable those that broke the law, speed assistance to homeowners

:01:35. > :01:43.and help to turn the page on an era of recklessness that hurt so many

:01:43. > :01:49.Americans. Now, a return to the American values of fair play and

:01:49. > :01:55.shared responsibility will help protect our people and our economy,

:01:55. > :02:00.but it should also guide us as we look to pay down our debt and

:02:00. > :02:04.invest in our future. Right now Our most immediate priority is stopping

:02:04. > :02:14.a tax hike on 160 million working Americans while the recovery is

:02:14. > :02:24.

:02:24. > :02:30.People cannot afford losing $40 out of reach paycheck this year. There

:02:30. > :02:36.are plenty of ways to get this done. So let's agree right here, right

:02:36. > :02:46.now - no side issues, no drama - pass the payroll tax cut without

:02:46. > :02:52.

:02:52. > :02:57.When it comes to the deficit, we have already agreed to more than

:02:57. > :03:04.two trillion dollars of cuts in savings, but we need to do more.

:03:04. > :03:08.And that means making choices. Right now, we are poised to spend

:03:08. > :03:15.nearly one trillion dollars more on what was supposed to be a temporary

:03:15. > :03:21.tax break for the wealthiest 2% of Americans. Right now, because of

:03:21. > :03:25.loopholes and shelters in the tax code, a quarter of all millionaires

:03:25. > :03:31.paying lower tax rates than millions of middle class households.

:03:31. > :03:37.Right now, Warren Buffet pays a lower tax rate than his secretary.

:03:37. > :03:43.Do we want to keep these tax cuts for the wealthiest Americans, or do

:03:43. > :03:50.we want to keep our investments in everything else? Like education and

:03:50. > :03:56.Medical Research, a strong military, and care for our veterans. If we

:03:56. > :04:03.are serious about paying down our debt, we can't do both. The

:04:03. > :04:07.American people know what the right choice is. So do I. As I told the

:04:07. > :04:11.Speaker this summer, I'm prepared to make more reforms that brain

:04:11. > :04:14.into long-term costs of Medicare and Medicaid and strength and

:04:14. > :04:20.social security so long as those programmes remain a guarantee of

:04:20. > :04:25.security procedures. But, in return, we need to change our tax codes so

:04:25. > :04:35.that people like me and that awful lot of members of Congress pay our

:04:35. > :04:47.

:04:47. > :04:54.Tax reform should follow the Warren Buffet rule - if you make more than

:04:54. > :04:57.$1 million a year, you should not pay less than 30% in taxes. My

:04:57. > :05:03.Republican friend is right - Washington should stop subsidising

:05:03. > :05:09.millionaires. In fact, if you are earning $1 million a year, you

:05:09. > :05:19.should not get special subsidies or reductions. On the other hand, if

:05:19. > :05:20.

:05:20. > :05:24.you make $150-200,000, like millions of Americans, your taxes

:05:24. > :05:30.should not go up. You are the ones struggling with rising costs and

:05:30. > :05:34.wages. You are the ones that need relief. Now, if you can call this

:05:34. > :05:40.class warfare, you can do that all you want, but asking a billionaire

:05:40. > :05:45.to pay at least as much as his secretary in taxes? Most Americans

:05:45. > :05:52.would call that common sense. We don't begrudge financial success in

:05:52. > :05:57.this country. We admire it. When Americans talk about folks like me

:05:57. > :06:02.paying my fair share of taxes, it's not because they envy the rich.

:06:02. > :06:07.It's because they understand that, when I get a tax break I don't need

:06:07. > :06:12.and the country can't afford, it either adds to the deficit or

:06:13. > :06:17.somebody else has to make up the difference, like a senior on a

:06:17. > :06:23.fixed income or a student trying to get through school or a family

:06:23. > :06:29.trying to make ends meet. That's not right. Americans know that's

:06:29. > :06:32.not right. They know that this generation's success is only

:06:32. > :06:37.possible because past generations felt a responsibility to each other

:06:37. > :06:43.and the future of their country, and they know our way of life will

:06:43. > :06:48.only endure if we feel that same sense of shared responsibility.

:06:48. > :06:58.That's how we will reduce our deficit. That some America built to

:06:58. > :07:00.

:07:00. > :07:07.last. -- that's an America built to Now, I recognise that people

:07:07. > :07:12.watching tonight have differing views about taxes, debt, energy and

:07:12. > :07:17.healthcare. But, no matter what party they belong to, I bet most

:07:17. > :07:23.Americans are thinking the same thing right about now - nothing

:07:23. > :07:29.will get done in Washington this year, or next year, or maybe even

:07:29. > :07:37.the year after that, because Washington is broken. Can you blame

:07:37. > :07:41.them for feeling a little cynical? The greatest blow to our confidence

:07:41. > :07:46.in our economy last year didn't come from events beyond our control.

:07:46. > :07:55.It came from a debate in Washington over whether the United States

:07:55. > :07:59.would pay its bills are not. Who benefited from that fiasco? I've

:07:59. > :08:03.talked tonight about the deficit of trust between Maine Street and Wall

:08:03. > :08:08.Street but the divide between this city and the rest of this country

:08:08. > :08:13.is at least as bad, and seems to get worse every year. Some of this

:08:13. > :08:19.has to do with the corrosive influence of money in politics. So,

:08:19. > :08:23.together, let's take some steps to fix that - send me a bill that bans

:08:23. > :08:33.insider trading between members of Congress and I will sign it

:08:33. > :08:41.

:08:41. > :08:51.Let's lament any elected official from owning stocks in industries

:08:51. > :08:54.

:08:54. > :09:01.are they impact. -- limits. An idea that has bipartisan support that is

:09:01. > :09:06.outside of Washington. Some of what is broken has to do with the way

:09:06. > :09:13.Congress does its business. A simple majority is no longer enough

:09:13. > :09:19.to get anything, even reading Business, passed through the Senate.

:09:19. > :09:29.-- read seen a business. Neither party had been blameless. Right

:09:29. > :09:32.

:09:32. > :09:37.parties should put an end to it. I asked the Senate to pass a simple

:09:37. > :09:47.rule that all judicial and public service nominations received a

:09:47. > :09:55.

:09:55. > :10:00.symbol up or down a vote within 90 days. The executive branch also

:10:00. > :10:08.needs to change. To are often it is inset -- inefficient, outdated and

:10:08. > :10:18.a remote. That is why I asked his Congress to grab media charity to

:10:18. > :10:23.

:10:23. > :10:27.consolidate the bureaucracy it. -- grants need the authority. Nine of

:10:27. > :10:33.this can happen. Unless we can allow where the temperature in this

:10:33. > :10:43.town. We need end the notion that the two parties need to be a lot in

:10:43. > :10:46.

:10:46. > :10:56.a perpetual campaign of mutual destruction. I am a Democrats. But

:10:56. > :10:59.I believe what Abraham Lincoln believed. The government should do

:11:00. > :11:09.what people only what they cannot do better for themselves and no

:11:10. > :11:21.

:11:21. > :11:26.That is why my education reform offers more competition, more

:11:26. > :11:36.control was cool and states. That is why we are getting rid of

:11:36. > :11:38.

:11:38. > :11:42.regulations that do not worked. Even my Republican friends, who

:11:42. > :11:46.complain at the mess about government spending, have supported

:11:46. > :11:54.it claimed energy projects and federal offices for the folks back

:11:54. > :11:58.home. We should all once a smarter, effective government. While we may

:11:58. > :12:06.not be able to reach our biggest philosophical differences this

:12:06. > :12:10.India, we can make real progress. - - this year. I will keep taking

:12:10. > :12:16.action that will help the corner -- economy grow up. I could do more

:12:16. > :12:26.with your help. When we act together, there is nothing the US

:12:26. > :12:38.

:12:38. > :12:44.cannot achieve it. That is the lesson we learnt from our action

:12:44. > :12:54.abroad over the last few years. Ending the Iraq war has allowed us

:12:54. > :13:04.to strike decisive blows against our enemies. They know they cannot

:13:04. > :13:09.escape the reach of the US. (CHEERING AND APPLAUSE). From this

:13:09. > :13:16.position of strength, we begin to wind down the war in Afghanistan.

:13:16. > :13:21.10,000 of our troops have come home. 23,000 more will lead by the end of

:13:21. > :13:25.the summer. This transition will continue. We will build an

:13:25. > :13:35.intricate -- enduring partnership with Afghanistan so it will never

:13:35. > :13:35.

:13:35. > :13:40.be a source of attacks against America. As the tide of war or

:13:40. > :13:48.receipts, a way of change has washed across the near East

:13:48. > :13:52.signalled that -- North Africa. -- Middle East. One year ago, Gaddafi

:13:52. > :13:59.was one of the world's longest serving dictators. He was a

:13:59. > :14:04.murderer with American blood on his hands. Today, he is gone. In Syria,

:14:04. > :14:14.I have no doubt the President Assad's regime will soon discover

:14:14. > :14:25.

:14:25. > :14:31.about human dignity cannot be How this incredible transformation

:14:31. > :14:36.will end remains uncertain. But we have a huge stake in the outcome.

:14:36. > :14:41.While it is up to the people of the region to decide their fate, we

:14:41. > :14:48.will advocate of those values that have served our own country so well.

:14:48. > :14:52.We will stand against violence and intimidation. We will stand for the

:14:52. > :14:58.rights and dignity is for all human beings, men and women, Christians,

:14:58. > :15:05.Muslims and Jews. We were support policies that it is strong

:15:05. > :15:09.democracy is. Tyranny is no match for liberty. We were saved than

:15:09. > :15:19.America's own security against those who threaten out friends and

:15:19. > :15:24.

:15:24. > :15:32.interests. Look that Iran, through the power of out the -- diplomacy,

:15:32. > :15:37.they now stand as one. As long as they shirk the responsibility, is

:15:37. > :15:42.pressure would not relent. There will be no doubt, a man that is

:15:42. > :15:52.determined to prevent Iraq from getting a nuclear weapon. I will

:15:52. > :16:01.

:16:01. > :16:09.take no options on the table to Is full resolution is still

:16:09. > :16:14.possible. And far better. -- peaceful. It Iran it meets his

:16:14. > :16:18.obligations, it can rejoin the community of nations. The renewal

:16:18. > :16:24.of American leadership can be felt across the globe. Our orders

:16:24. > :16:33.alliances in Europe and Asia are stronger than ever. Out ties to the

:16:33. > :16:39.Americas are deeper. Our iron-clad To is Raul security has meant the

:16:39. > :16:49.closest military operation between the two countries in his three. --

:16:49. > :16:55.

:16:55. > :17:05.is raz mac. -- Israel. America is a Pacific power. A new beginning in

:17:05. > :17:10.

:17:10. > :17:20.Burma has created new head. -- hope. CD and Joan Cowell of our moral

:17:20. > :17:42.

:17:42. > :17:52.example, America is back. -- from Leaders around the world are eager

:17:52. > :17:53.

:17:53. > :17:59.to work with us. Opinions of America around the world had -- are

:17:59. > :18:02.higher than they had been in years. The world is changing, we cannot

:18:02. > :18:07.control every events but America remains the one indispensable

:18:07. > :18:17.nation in world affairs and as long as I am President, I intend to keep

:18:17. > :18:28.

:18:28. > :18:33.I have proposed a new defence charity which ensures we maintain

:18:33. > :18:43.the ban is military in the world last saving more than $500 billion

:18:43. > :18:48.

:18:48. > :18:52.in our budget. We was a -- one step ahead of our enemies. Above all,

:18:52. > :19:02.our freedom and joy as because of the men and women in uniform who

:19:02. > :19:36.

:19:36. > :19:39.As they come home, we must serve them as well as they have served us.

:19:39. > :19:49.That includes giving the in the care and benefits they had earned.

:19:49. > :19:51.

:19:51. > :19:57.We have increased annual spending every year I have been president.

:19:57. > :20:02.It means enlisting our veterans in the work of rebuilding our nation.

:20:02. > :20:12.With the bite at -- iPad isn't so but we at the -- providing new tax

:20:12. > :20:15.

:20:15. > :20:21.breaks for companies that hire veterans. I am proposing a veteran

:20:21. > :20:25.buzz mac jump court that will sulk a community to a higher Berens as

:20:25. > :20:35.cuts and firefighters said America will be as strong as those who

:20:35. > :20:41.

:20:41. > :20:49.defend them. -- police and firefighters. It brings me back to

:20:49. > :20:55.where I began. Days of us who had been sent here to serve, can learn

:20:55. > :21:01.a thing of to run the service of our troops. -- those of us. When he

:21:01. > :21:08.put on that tune of one, it does not matter if you're black, white,

:21:08. > :21:14.Asian, lead singer, Native American, conservative, liberal, rich, poor,

:21:14. > :21:21.or gay, straight. When you are marching into battle, you look out

:21:21. > :21:27.for the person next to you. Or at the mission fails. When you are in

:21:27. > :21:37.the thick of the fight, you rise or fall as one unit. Stepping one

:21:37. > :21:40.

:21:40. > :21:46.nation. Leaving no-one behind. -- serving one a nation. One of my

:21:46. > :21:56.Paris possessions is the flag the Still to come: Team it will in

:21:56. > :22:11.

:22:11. > :22:17.their mission against Osama Bin Laden. -- Navy Seal was. All that

:22:17. > :22:25.mattered was the mission. Nobody thought about politics. Nobody

:22:26. > :22:30.thought about themselves. One of the young men involved told me he

:22:30. > :22:36.did not deserve credit for the mission. He said it only succeeded

:22:36. > :22:40.because every single member of the unit did their job. The pilot who

:22:40. > :22:45.landed the helicopter that spun out of control. The translate every cap

:22:45. > :22:50.others from entering the compound. The trips is separated the women

:22:50. > :22:56.and children from the fight. -- the troops. The Navy seals to charge up

:22:56. > :23:01.the stairs. More than that, the mission only succeeded because

:23:01. > :23:07.every member of that unit trusted each other. Because you cannot hide

:23:07. > :23:17.up those stairs in the darkness and danger unless you know there is

:23:17. > :23:18.

:23:18. > :23:22.somebody behind you, watching your back. So it is with America, each

:23:22. > :23:27.time I look at that line I am reminded that our destiny is

:23:27. > :23:32.stitched together like those 50 stand and 13 stripes. No-one built

:23:32. > :23:39.his country on their own. Is a nation is great because we built it

:23:39. > :23:44.together. This nation is great because we worked as a team of.

:23:45. > :23:52.This nation is great because we get each other's backs. It we hold a

:23:52. > :24:02.fast Debach route, there is no challenge to a great, no mission at

:24:02. > :24:03.

:24:03. > :24:08.too hard. -- hold onto that of. Our picture is for it will and the

:24:08. > :24:18.state of our union will always be strong. Thank you. God bless the

:24:18. > :24:30.

:24:30. > :24:37.Ending his state of the Union address to members of Congress, he

:24:37. > :24:46.spoke for just over one hour. He spoke on his players for the future

:24:46. > :24:52.and how much he has achieved. -- plans for the future. Now he has

:24:52. > :25:02.the ritual of leaving the chamber. He is shaking hands with all of the

:25:02. > :25:02.

:25:02. > :25:12.members of Congress as the leaves. As you watched President Obama

:25:12. > :25:12.

:25:12. > :25:16.there, making his way out of the chamber, what did you think? Above

:25:16. > :25:23.everything he said, all of these specific proposals, all the things

:25:23. > :25:30.he mentioned, just how energetic he Saadat. He has been criticised for

:25:30. > :25:35.being aloof, withdrawn, and little bits call. I was struck almost from

:25:35. > :25:44.the beginning how punchy and upbeat he was. At times he felt very

:25:44. > :25:51.passionate. I think the word used was urgent. I felt that throughout

:25:51. > :25:58.the speech. He wanted to convey that. Before any of the specifics,

:25:58. > :26:02.he conveyed his emergency. remember listening to it last

:26:02. > :26:06.year's state of the Union address, and it was very much a overlaid

:26:06. > :26:14.with this sense of the challenge that America faced from rising

:26:14. > :26:20.China. Tonight, that line he had about America is back, a radically

:26:20. > :26:24.different tone about where he sees America in the world. It is like he

:26:24. > :26:31.has had an education. He spoke about America been an indispensable

:26:31. > :26:37.power. You could easily conclude that he had spent the EU, solving

:26:37. > :26:46.that problem, China is now a minor thing to be dealt with with a trade

:26:46. > :26:52.unit. He said, we are back as a Pacific power. Otherwise, China got

:26:52. > :27:01.a very short shrift on this speech. His language is almost brooded for

:27:01. > :27:04.an America whose economy is built to last. -- coded for America.

:27:04. > :27:11.Manufacturing has come back, he asserted that jobs are starting to

:27:11. > :27:18.come back. He said America is getting stronger. Very upbeat and

:27:18. > :27:23.are very hopeful. It is not easy to be so, but it was. You suggested

:27:24. > :27:30.the need to invest in education and manufacturing. But he was

:27:30. > :27:36.remarkably positive and optimistic. He was optimistic about the state

:27:36. > :27:44.of the country. One line that caught my attention was, we bet on

:27:44. > :27:50.America. Politicians of both parties have used, but most notably

:27:50. > :27:59.by Bill Clinton. He used to say people have lost money betting

:27:59. > :28:06.against the American economy. Obamas said that it had all paid

:28:06. > :28:16.off. President Obama finally leaving the chamber, the signing

:28:16. > :28:18.

:28:18. > :28:28.autographs. Shaking hands with members of Congress. You can hear

:28:28. > :28:30.

:28:30. > :28:38.him so well. Would you sign one for me? It is interesting, isn't it?

:28:38. > :28:46.They go to have his signature. would think that, and yet they Orne.

:28:46. > :28:54.There must be some sort of black market. He is happy to linger.

:28:54. > :28:59.is a rock star quality to the President. I was struck by the

:28:59. > :29:06.power of the presidency. One thing he can do, he does not need

:29:06. > :29:13.approval for, he spoke on every part of the speech. He is reminding

:29:13. > :29:20.the public, as he noted, and they have been unhappy, but he reminded

:29:20. > :29:25.that they were things he would do. He took a dig at Republicans. You

:29:25. > :29:30.said before the speech started, it is an intensely political speech.

:29:30. > :29:36.He did not mention the election in November, but he certainly outlined

:29:36. > :29:44.his vision of America as opposed to end contrasted with the Republican

:29:44. > :29:50.vision. He said that he would meet a obstruction with action. That was

:29:50. > :29:56.his veiled threat. He previewed, better than he has before, how he

:29:56. > :30:00.will run against Congress this year. Against the corporate end money

:30:00. > :30:07.interest, against their ability to trade stocks based on insider

:30:07. > :30:13.information. They are powerful issues at a time where people feel

:30:13. > :30:19.Washington is Adventist. I thought that was it a real shot across the

:30:19. > :30:27.Congressional field. He also spoke in terms of the congressional bow.

:30:27. > :30:31.He mentioned members of Congress when it came to the tax issue, he

:30:32. > :30:38.said, some of you are paying less tax has than ordinary Americans. He

:30:38. > :30:47.said it is not fair. The tax reform issues are on strike but it is a

:30:47. > :30:55.central issue. He said, I do not pay enough in taxes, we can fix it.

:30:55. > :31:00.Maybe not this year, but we can do it. Before the speech, we talked

:31:01. > :31:07.about how to handle this issue of fairness. He wanted to make it

:31:07. > :31:13.Central. In a sense, it is a political double. You do not want

:31:13. > :31:21.to sound like you are as lemming be rich. He is heading back to the

:31:21. > :31:25.wide grass right now. -- Fleming be rich. He will be out on the

:31:25. > :31:30.campaign trail. The members of Congress are leaving the chamber,

:31:30. > :31:39.having listened to President Obama deliver the state of the Union

:31:39. > :31:44.address. He spoke for just over one hour. We talked airily about this

:31:44. > :31:50.issue of fairness. We knew the President would address it in the

:31:50. > :31:55.speech. He had to juggle the issue of not criticising people for

:31:55. > :32:03.making money, but he wanted to say that everyone should play by the

:32:03. > :32:08.same rules. Do you think he managed? I think it is difficult to

:32:08. > :32:13.say anything in this context that does not upset someone. Fairness is

:32:13. > :32:18.an issue that he does not have any trouble with Democrats on, but when

:32:18. > :32:28.he speaks to groups of independence, they will be far more interested in

:32:28. > :32:29.

:32:29. > :32:38.Washington getting something done. A fairer tax code is complicated

:32:38. > :32:45.and difficult to do, so if that process can be rationalised, There

:32:45. > :32:49.is a lot of logic for doing that. Most Americans know that the system

:32:49. > :32:54.is ridge towards people who have a complicated financial investments.

:32:54. > :33:00.If you can afford them, you get breaks in excess of this size. He

:33:00. > :33:08.is saying tonight, if you make more than $1 million, you should not get

:33:08. > :33:13.any exemptions. In theory, that would be a very big way in the --

:33:13. > :33:21.very big difference in the way we have done business. He prefaced it

:33:21. > :33:25.by saying that we admire people for making money. But we should not

:33:25. > :33:30.give them extra help in doing so. He said for every dollar but we

:33:30. > :33:37.give people who do not need it, that means this person or that

:33:37. > :33:43.person will not get it. In the end, if there is tax reform, that will

:33:43. > :33:49.will not look like what he called for tonight. It will not be a clear

:33:49. > :33:54.$1 million, no reductions. But it will be brought into balance.

:33:54. > :34:00.else did he laid out in the speech that he can realistically achieved

:34:00. > :34:07.in the next year? Where their things in this speech that would

:34:07. > :34:17.actually changed America over the course of the year? Several things

:34:17. > :34:23.caught my eye. He basically called on the Congress to somehow compel

:34:23. > :34:28.colleges to forgo its duration increases, all lose federal funding.

:34:28. > :34:34.That would be a dramatic change in the way business gets done,

:34:34. > :34:39.certainly in higher education. Second, he called on the States to

:34:39. > :34:49.require students to stay in high- school until they're 18. The drop-

:34:49. > :34:50.

:34:50. > :35:00.out rate in the country is dramatic. That would be a huge change. NT

:35:00. > :35:01.

:35:01. > :35:06.called for tax cuts, in ways he had not done before. He said that tax

:35:06. > :35:12.cuts would help bring jobs back from overseas. There is a chance

:35:12. > :35:18.that would happen. Weasel phrases behind him who did not look like

:35:18. > :35:23.they would give the President a win on anything. -- faces behind him up.

:35:23. > :35:28.He spoke about jobs overseas and how they could bring jobs back to

:35:28. > :35:35.America. We know he has spoken about it with business leaders

:35:35. > :35:43.around the country. He spoke to Steve Jobs and asked him about the

:35:43. > :35:48.Apple jobs overseas. He addressed it tonight. It is a great talking

:35:48. > :35:56.point. I have never heard anyone explain how many jobs would come

:35:56. > :36:00.back if those tax centres -- tax incentives were removed. It is a

:36:00. > :36:06.powerful wait to bring a Congressional inaction, the

:36:07. > :36:12.unfairness of the tax code, and the unemployment question altogether.

:36:12. > :36:19.We have going to get the Republican response from Mitch Daniels, the

:36:19. > :36:26.former governor of Indiana. As is the tradition, he is going to give

:36:26. > :36:31.the Republicans reply. The status of loyal opposition

:36:31. > :36:37.imposes on those out of power Syria's responsibilities. To show

:36:37. > :36:41.respect for the presidency, to express agreement weary it exists.

:36:41. > :36:46.Republicans salute our President for his aggressive pursuit of the

:36:46. > :36:51.murderers of 9/11, and for backing long overdue changes to public

:36:51. > :36:56.education. I personally would add to that list admiration for the

:36:56. > :37:03.strong family commitment that he and the first lady have displayed

:37:03. > :37:08.took a country. President's seek to suck -- seek to find the sunny side

:37:08. > :37:11.of our national condition. But when he claims that the state of very

:37:11. > :37:18.union is anything but grave, he must know in his heart that it is

:37:18. > :37:22.anything but untrue. He did not cause the problem, but he was

:37:22. > :37:29.elected on a promise to fix them. He cannot claim that the last three

:37:29. > :37:33.years have made things anything but worse. One in five men are of prime

:37:33. > :37:39.working age, and nearly half of all persons under 30 did not go to work

:37:39. > :37:43.today. In three short years, an unprecedented explosion of spending

:37:43. > :37:47.with borrowed money has added trillions to an already

:37:47. > :37:53.unaffordable national debt. The President has put us on a course to

:37:53. > :37:58.make it radically worse in years ahead. The federal government now

:37:58. > :38:08.spends $1 art of every $4, it borrows $1 out of every $3 it

:38:08. > :38:13.spends. No nation can survive intact with debts as huge as ours.

:38:13. > :38:17.The President's grand experiment has held back, rather than spread

:38:17. > :38:22.economic recovery. He seems to believe we can build a middle class

:38:22. > :38:28.out of government jobs, paid for with borrowed dollars. It works the

:38:28. > :38:34.other way. A government is big and bossy. It is maintained on the

:38:34. > :38:41.backs of the middle class. Those punished most by at the wrong terms

:38:41. > :38:44.of the last three years are the unemployed. They are discouraged

:38:44. > :38:48.and have abandoned the search for work. No-one has been more

:38:48. > :38:53.tragically harmed than the young people. The first generation in

:38:53. > :38:59.memory to face the future less promising than their parents did.

:38:59. > :39:04.As Republicans, our first concern is for those waiting to begin the

:39:04. > :39:11.climb up life's ladder. We do not accept that house will be a nation

:39:11. > :39:15.of hides and have-nots. We should be a nation of steam to house. In-

:39:15. > :39:25.out economic stagnation, weary short distance behind degrees and

:39:25. > :39:28.

:39:28. > :39:38.As is a fortune a land. We have a short grace period to deal with our

:39:38. > :39:38.

:39:38. > :39:44.dangers. Time is running out if we are to avoid it the fate of Europe.

:39:44. > :39:49.2012 is a year of true opportunity, may be our last to restore a

:39:49. > :39:54.America of Hope and upward mobility and greater equality. The

:39:54. > :39:58.challenges are not matters of party preference. The problems are some

:39:58. > :40:08.Vaclav Havel medical and the answers are purely practical. --

:40:08. > :40:18.

:40:18. > :40:25.mathematical. Republicans accept these duty great filly. Its roots

:40:25. > :40:34.back to an America of plumbers that can pay its bills and protect its

:40:34. > :40:38.vulnerable. The only way out for those suffering is a private

:40:38. > :40:48.economy that begins to grow and create jobs, real jobs, at a much

:40:48. > :40:53.

:40:54. > :40:58.greater rate than today. The eighth Steve Jobs created more jobs then

:40:58. > :41:05.up all the other stimulus dollars of the President Barlow -- borrowed

:41:05. > :41:15.and blue. When a businessman asked me what eager-to-please date I said,

:41:15. > :41:32.

:41:32. > :41:42.make money and be successful. -- what I could do for the state? It

:41:42. > :41:42.

:41:42. > :41:45.must be replaced with a passion ate pro-growth result. It must restore

:41:45. > :41:55.opportunity for all and generate the public revenues to pay our

:41:55. > :42:03.

:42:03. > :42:07.bills. That means a dramatically different rates. That means

:42:07. > :42:12.maximising on a new domestic technologies which is the best

:42:12. > :42:18.break our economy has gotten in years. There is a second item on

:42:19. > :42:21.our national must do this. We must unite and say that the safety net.

:42:21. > :42:31.Medicare and social security has served us well and that must

:42:31. > :42:37.

:42:37. > :42:44.continue. Back after 75 years, it needs some repairs was dealt we can

:42:44. > :42:51.preserve them for the older population. But we need to repair

:42:51. > :42:57.it for the future. The dollar as we have it should be devoted to those

:42:57. > :43:02.who need it the most. The mortal enemies of social security at those

:43:02. > :43:12.who are in concerns of the plain arithmetic, continued to miss Lee

:43:12. > :43:12.

:43:13. > :43:16.Americans that we should change her nothing. -- mislead. It will mean

:43:16. > :43:21.coming generations are denied the jobs they need in their youth and

:43:21. > :43:25.the protection they deserve in their later years. It is absolute

:43:25. > :43:30.limit so that everyone should contribute to our national recovery

:43:30. > :43:37.including the most affluent among us. There are smart ways and Dumber

:43:37. > :43:40.always to do is. The dumb way is to raise rates in a complex tax system,

:43:40. > :43:46.choking are for growth without bringing in the Revenue's we need

:43:46. > :43:50.to meet our debts. The back the cause is stop sending the wealthy

:43:50. > :43:55.better as they do not need an stop providing them as so many tax

:43:55. > :43:58.preferences which do little to faster growth. It is not fair and

:43:58. > :44:08.true for the President to attack Republicans and Congress as

:44:08. > :44:14.obstacles. They have reduced borrowing and encouraged new job

:44:14. > :44:19.creation only to be shut down time and time again by the President.

:44:19. > :44:29.Eight balls to Republicans to level with our fellow citizens about his

:44:29. > :44:31.

:44:31. > :44:39.reality. -- this year. To any such action happen, we must also work in

:44:39. > :44:46.ways we have not always practised. No feature of the Barack Obama's

:44:46. > :44:50.presidency has been Sarat then his constant affects the to divide as.

:44:51. > :44:58.As in previous members of national day image, we Americans are all in

:44:58. > :45:06.the same boat. If we drift over a Niagara of debt, we will all suffer

:45:06. > :45:09.regardless of income, race, gender or other category. If we fail to

:45:09. > :45:15.shift to a progress economic policy, there would never be in up public

:45:15. > :45:19.revenue to pay for our safety net, national security or a whenever

:45:19. > :45:25.side government we decide to have. As a loyal opposition poopers

:45:25. > :45:30.patriotism and national success ahead of party at any self interest,

:45:30. > :45:36.we say anyone who wants to join us in the cause of growth is our ally

:45:36. > :45:41.and our friend. We will speak the language of unity. Let's rebuild

:45:41. > :45:47.our finances and the safety nets and re open the door to the

:45:47. > :45:51.stairwell upwards. Other disagreements can wait. The most

:45:51. > :45:59.troubling contention in our national life is not about

:46:00. > :46:05.economics or policies at all. It is about us as a free people. The

:46:05. > :46:11.contention is we Americans cannot have it any more. The President and

:46:11. > :46:15.his allies tell us we cannot handle ourselves in this complex world

:46:15. > :46:19.without their benevolent protection. Left to ourselves, we may pick the

:46:19. > :46:29.wrong health insurance, the wrong mortgage and the wrong school for

:46:29. > :46:30.

:46:30. > :46:35.out his. -- our kids. The second year it is that we Americans are no

:46:35. > :46:41.longer up to the job of self- governing. We cannot do the simple

:46:41. > :46:50.maths that cruise and affordability of today's safety-net programmes. -

:46:50. > :46:58.- that proves. We will allow ourselves to be pitted against each

:46:58. > :47:08.other, blaming our neighbours for what troubles our own Government's

:47:08. > :47:10.

:47:10. > :47:20.and external factors have caused. We must 80 a new generation that

:47:20. > :47:23.America is still the premier land of opportunity. -- speak to a new.

:47:23. > :47:29.The government is meant to serve the people rather than supervise

:47:29. > :47:39.them. Two trapped Americans enough to tell the plain truth about the

:47:39. > :47:46.

:47:46. > :47:52.fix we are in. -- to trust. There is nothing wrong with the state of

:47:53. > :47:58.our union that the American people, I just as free-born, cannot set

:47:58. > :48:07.right. -- addressed. Republicans welcome all our countrymen it to a

:48:07. > :48:17.programme of renewal which reveals retrieval all. Thank you for

:48:17. > :48:19.

:48:19. > :48:29.listening. The kinds governor of Indiana or addressing the cameras

:48:29. > :48:29.

:48:29. > :48:35.with the Republican's rebuttal. I am joined by a Democratic

:48:35. > :48:41.congresswoman of overnight. Thank you for joining us. I wanted to get

:48:42. > :48:48.a response sid the President's address. I must have heard a

:48:48. > :48:55.different stage the Governor was referring to. What I had was the

:48:55. > :49:05.President creating a vision of America where we can all work

:49:05. > :49:08.together. We have a mission together. It is to improve our

:49:08. > :49:14.country and make it a land of opportunity for all of our people.

:49:14. > :49:20.We can work together and we should. He said it has to be spent where

:49:20. > :49:24.everybody was there everybody should play their fair share and

:49:24. > :49:28.played by the same laws. That has now been happening. The middle

:49:28. > :49:35.class has been powered out. Ordinary people have seen their

:49:35. > :49:45.income as a drop. He has spent about ways to address that in ways

:49:45. > :49:47.

:49:47. > :49:50.that I cannot imagine anyone disagreeing with. Which an idea

:49:50. > :49:59.that tax breaks to companies who outsize -- of that adds lost their

:49:59. > :50:06.jobs. We need to educate our people a business visit it's that all of

:50:06. > :50:16.us, Republicans as well, have endorsed. Would some signs of

:50:16. > :50:20.

:50:20. > :50:26.economic recovery in the country... his speech was more optimistic than

:50:26. > :50:36.last here. Do you feel that the President's plight -- plans will

:50:36. > :50:41.

:50:41. > :50:47.help you stay? We know it or do industry in my state now has the

:50:47. > :50:50.best order industry in the world because of the President. We do

:50:50. > :50:57.have a higher unemployment rates but there is a sense things are

:50:57. > :51:03.changing and things are getting better. Things that Congress did

:51:03. > :51:09.for the first of the years have actually made things better and

:51:09. > :51:14.pulled us back from the brink of disaster. One I had from the

:51:14. > :51:21.Republicans is a more of, we have to cut Medicare and social security

:51:21. > :51:30.but we cannot raise taxes on the wealthy. And he spoke of class

:51:30. > :51:36.warfare once again. If there is class warfare let them call it that.

:51:36. > :51:46.The middle class needs a break. Those where the items the President

:51:46. > :51:49.

:51:49. > :51:55.was outlining. We can all work together. Listening to their

:51:55. > :52:05.speeches, I was struck by the contrast. Murray the policies but

:52:05. > :52:10.

:52:10. > :52:19.in the delivery and atone. -- not just the eighth. The governor's

:52:19. > :52:24.speech was much more dire. I am surprised because the President's

:52:24. > :52:34.speech was so RBTs that the Republican's response came across

:52:34. > :52:36.

:52:36. > :52:40.as more downbeat than I expected. - - upbeat. Of course it

:52:40. > :52:47.congresswoman would endorse the President's speech because they are

:52:47. > :52:57.in the same party but she sounded remarkably positive. Iowa Democrat

:52:57. > :53:00.

:53:00. > :53:07.feeling a shift of mood in the country? -- are at Democrats?

:53:07. > :53:11.has been kind of a wall. She also emphasised the start that was most

:53:12. > :53:21.political in the speech which is the notion of a fair shot and a

:53:22. > :53:24.

:53:24. > :53:29.fair shake. It will emerge as a huge campaigning theme of. Eight

:53:29. > :53:34.congresswoman in really said this is what the speech is about. It

:53:34. > :53:39.carries a lot far her neck of the words. It is something had voters

:53:39. > :53:49.wanted here. You suggested that Democrats are going to like what

:53:49. > :53:53.

:53:53. > :54:00.they here but many Republicans He was the President addressing end

:54:00. > :54:07.did he persuade them? He was addressing the hardcore Democrats,

:54:07. > :54:13.young people, there was all that stuff about college. He was also

:54:13. > :54:20.addressing independent retailers. Back to Capitol Hill. We are joined

:54:20. > :54:26.by Joe Wilson, Republican congressmen. In the previous state

:54:26. > :54:31.of the union address, you booed the president for what he was saying.

:54:31. > :54:37.Did you have a more favourable response tonight? I was very

:54:37. > :54:42.concerned. I am a veteran of the army and I was appreciative that

:54:42. > :54:46.the President indicated appreciation of our military. But

:54:46. > :54:52.people need to know that he is proposing to reduce the army by

:54:52. > :54:56.80,000 troops. We have a growing threat around the world. The

:54:56. > :55:02.President is claiming to be for a strong national defence but his

:55:02. > :55:06.weakening the defence of the United States. What did you think of the

:55:06. > :55:13.central theme of the speech with was this idea of fairness when it

:55:13. > :55:19.comes to tax rates? That was misleading. What he was saying is,

:55:19. > :55:25.raise taxes. We know that to raise taxes will destroy jobs in the US.

:55:25. > :55:32.We need to do what Ronald Reagan did, cut taxes, grow the economy,

:55:32. > :55:40.create jobs. Will he mentioned cutting taxes for certain families.

:55:40. > :55:46.-- well, he mentioned. He said the tax raised would not be raised. It

:55:46. > :55:53.would be raised for people earning over $1 million. That was not

:55:53. > :55:59.accurate. 40% of American families do not pay taxes at all. It was

:55:59. > :56:05.sugar-coated. It was a proposal for a tax increase. It will not work. I

:56:05. > :56:10.am confident that the Americans know better. The president outlined

:56:11. > :56:17.what I thought was optimistic. It was an optimistic vision. He said

:56:17. > :56:26.America is back. He said people who bet against America would lose. You

:56:26. > :56:32.do not disagree? No, I am not pessimistic. I believe in the

:56:32. > :56:37.American people. We caple. We ca that. Can you agree on the need for

:56:37. > :56:43.both sides to work together to get the country moving forward? Yes,

:56:43. > :56:47.that is what we want him to do. In the 2010 elections, the American

:56:47. > :56:52.people spoke strongly for a Conservative government. When the

:56:52. > :56:58.Conservatives came to Congress, the President said that they must

:56:58. > :57:03.compromise in his diren his diret is not right. The President says

:57:03. > :57:08.all the right things, but his policies are not what he says.

:57:08. > :57:15.Where would you be prepared to compromise? To work on policies, as

:57:15. > :57:20.we did. We passed legislation that cuts taxes, that provided for

:57:20. > :57:30.unemployment compensation. But the Liberals in the Senate stop our

:57:30. > :57:33.

:57:33. > :57:36.legislation. Thank you. The Republican response to the

:57:36. > :57:43.President's state of the union address. No surprise that it did

:57:43. > :57:49.not go down well. Getting both sides to do anything together on

:57:49. > :57:59.the really hard staff, the stuff about money, that is where...

:57:59. > :58:00.

:58:00. > :58:05.Cutting deficits, Texans. Very difficult. -- taxes. There was a

:58:05. > :58:12.proposal to cut down deep defence budget. They may reinstate the

:58:12. > :58:20.money that he is proposing to reduce. He may not even get that

:58:20. > :58:26.savings realised. On every front, they will try to deny him his

:58:26. > :58:36.agenda. He will be left with doing these Executive Orders, independent

:58:36. > :58:36.

:58:36. > :58:42.actions. It is not going to be a great pop -- great progress.

:58:42. > :58:50.says we must have compromise, but when pushed on the specifics, he

:58:50. > :58:56.was not so sure. What was mentioned was this idea of framework within

:58:56. > :59:03.be clean energy. I thought that was quite interesting. The two

:59:03. > :59:07.interesting proposal. The idea to open up public lent. Perhaps to put

:59:07. > :59:14.up windmills and geothermal projects. Green energy would create

:59:14. > :59:19.a market for America's fledgling Green energy industry. He said he

:59:19. > :59:26.would make the defence department by into alternative forms of energy

:59:26. > :59:33.to power homes for communities near in naval bases. That is a way to go

:59:33. > :59:37.around Congress. I think there is led a dupe for him to do that. He

:59:38. > :59:43.if he really wanted to start a Green economy, he could order the

:59:43. > :59:49.government to buy one million electric cars. People listening to

:59:49. > :59:54.this speech for the details of policy, or rather they listening to

:59:54. > :59:58.it for a sense of mood end leadership quality? To try and

:59:58. > :00:04.change that feeling they may have about the country being on the

:00:04. > :00:08.wrong track? Those remarks are designed to say, will there be any

:00:08. > :00:16.forward motion? Some of the best parts of the speech came later when

:00:16. > :00:21.he said we stopped functioning together, he compared... He said

:00:21. > :00:26.that was the opposite of how the Navy seals worked. He was making

:00:26. > :00:31.the point that he recognises that Washington has broken and he wants

:00:31. > :00:35.to get on the right side of that complete. I thought some of the

:00:35. > :00:41.most remarkable moments were not during the speech, but beforehand,

:00:41. > :00:50.when he was shaking hands with the members of Congress, and when we

:00:50. > :00:58.saw him shaking hands and Harding Gabrielle Giffords. -- Deborah --

:00:58. > :01:03.Hardy and Gabrielle Giffords. emotional moment. It was a symbol

:01:03. > :01:08.of politics being broken. He has been a long moment -- a long time

:01:08. > :01:15.since a congresswoman has been shot in the middle of an event. Luckily

:01:15. > :01:19.she survived. It was her last night in Congress. She came here to say

:01:19. > :01:26.goodbye. I was struck by how much of a welcome she got from both

:01:26. > :01:35.sides. The Democrat place terror in a strategically important position.

:01:35. > :01:42.It was a remarkable moment. -- Democrats placed her in hay. Can we

:01:42. > :01:49.sum up? Set against the backdrop of the election in November, did he

:01:50. > :01:55.advance his chances tonight? strategy tonight was to help

:01:55. > :02:04.independent voters to leave the door open. I may give him a second

:02:04. > :02:10.chance. I have been watching the Republican race. If he did that,

:02:10. > :02:16.but would be a good night. already has the Democrats on his

:02:16. > :02:22.side. Do you think that Republicans can use what he was saying about

:02:22. > :02:28.fairness? He will get out on the campaign trail. Republicans will

:02:28. > :02:32.respond to this, suggesting it is class warfare. They have had

:02:32. > :02:37.several weeks complaining about each other. He has given them lots

:02:38. > :02:45.of things to talk about. They will seize that opportunity. It will be

:02:45. > :02:49.full of references to this speech in the coming days. They will be

:02:49. > :02:55.reminding the Republicans that President Obama is their enemy, not

:02:55. > :03:03.each other. President Obama will be going to strategic states around

:03:03. > :03:13.the country. Yes, states that he needs to hold. Once that you can

:03:13. > :03:17.

:03:17. > :03:27.tick off of. This speech, his travel schedule, it will now return

:03:27. > :03:28.

:03:28. > :03:35.to the theatre of politics. It was in an intensely political speech