State of the Union Address 2012 BBC News Special

You are watching a BBC News special. I'm Katty Kay in Washington

bringing you live coverage of President Obama's State Of The

Union address to a joint session of Congress. 2012 as a critical year

for Mr Obama as he seeks re- election in November. Over the next

hour he will not only lay out his vision for the country but also the

political battle lines on which he will fight his Republican opponent.

He is expected to highlight what he thinks are unmistakable signs of

economic recovery and he is likely to argue that all Americans should

enjoy the same opportunities if they play by the same rules, a

reference to recent controversy over tax breaks for the wealthy. We

when they get it. He will be

speaking in about ten hours... Ten minutes! First let's get some

analysis. I'm joined by the deputy editor of Time magazine. What will

he say to try to convince Americans that he is worth re-electing?

annual ritual is of course not really a speech about the whole

country. It is always a political speech, particularly in election

years. Particularly in the year when the President is not at all

ahead of his rival party. He has an uphill battle for re-election and

he is making the case tonight in what we have seen so far of the

speech for a new economic blueprint - that's what they are calling it -

based on trade, manufacturing, energy, and what he calls a renewal

of the miracle values. But it is really a list of things he wants to

do in his second term, which a lot of people have said - he hasn't

has to tell people, you have to tell people what you plan to do in

it. Tonight is when he is hanging the ornaments on that tree. We are

seeing the scenes live from Capitol Hill. Give us a sense of what is

going on at the moment. It is one of those "Hurry up and wait"

moments. That is the vice- president's wife. Everyone takes

their place almost in order of protocol. For some reason, the

wives are part of it as well, but the congress, at the House, most of

the Supreme Court - not all - members of the Cabinet, members of

the diplomatic Corps, and usually right on time the President arrives

in the chamber but it will take him a while to get to the front of it.

We saw Joe Biden go along with the vice-president's wife and the

members of the house and the dignitaries coming through that

door. That's where we will see President Obama coming in and a few

minutes' timnutes' tim then glad hand everybody. Some of those

members have been waiting for ages for their chance to shake his hand.

All day long. Those seats on the Isle are usually called for early

in the day. People sit there, waiting for this hour to arrive.

They have sat there for ten hours! Now we wait for the rooms are

settled. The President will probably speak for an hour, maybe

more, from what we know, tonight, and usually... This is a very

important moment. We have congresswoman Gabriel Giffords who

was shot just over a year ago in Arizona, making it onto the House

Congress. I announced yesterday she would not beuld not be to Congress.

They will haey will ha a special election. She gets a standing

ovation, one of the non-political moments toniments toniuld be good

if there were more than one. deeply partisan, unpleasant moments.

Sh Shally lively tonight. We are yet to hear her speak since the

shooting a yooting a yer husband is in the gallery with Mrs Obama, and

Joe Biden's wife as well. A very popular membpular membress. She

will be missed by her colleagues. She was popular before. And this is

heartening because she is more active tonight and more focused

than we havean we havein the past. By her own husband's account, she

has had a much better period of recuperation than people have

realised. She is now going to step down. Debbie Gifford's on the floor

of the House for the last time as a member of the US House of

Representatives. She will be stepping down. They are all

standing and waiting now. It looks like there is a hushed descending

over the house, waiting for the President to arrive. For some

reason I think the Supreme Court is next. Yes, members of the Supreme

Court. Not all of them attend. Some of them haven't been years. One of

th thsince late Clinton! Someone quoted him saying, "You

intend to go when the person who nominated you is speaking of and

not when he is not". There is something almost regal about this

event, the pomp and ceremony. as close as we come to Majesty in a

democracy. They were not wearing their robes, were they? But it used

to be known for all the Supreme Court to attend, and now it has

become a can do, not must-do. get back to what we expect from the

speech. This idea that he is going to try to redress... Just as we

talk about that, Michelle Obama coming in, looking stunning in that

blue dress. Through her visitors are in that box will reflect what

people talk about. A 30-year tradition which began in 1981 when

President had symbolic guests up there. It wasn't such a part of the

speech, or rather an offstage part of the symbols and signals the

President wants to send. Tonight there are some people involved in

social services around the country. And Mrs Obama, of course her own

drawer. She is the subject of the much-discussed book. He has to

reach out during the course of this speech to, what? 40 million

Americans watching? Probably at least that, and a country that

still has... This is the Cabinet coming in. Still has, on balance,

fairly negative views of his performance, not as a person but

his performance, particularly in economics. Less so on foreign

policy. The Secretary of State, I guessed she should go first,

Hillary Clinton. They are the members of Congress coming in for

the annual State of the Union address, filing into Capitol Hill

to listen to the President You are watching a BBC News special,

with the live coverage of President Obama's state of the Union speech.

Broadcasting to our we was on PBS in America and also around the

world. There we see President Obama is going to be coming into the room

fairly soon, we can see Hillary Clinton at shaking hands with John

Kerry. This is a big political event here in Washington, broadcast

to 43 million Americans last year around the country. And an occasion

for the President to lay at his agenda, but also, perhaps,

implicitly at least, laid out the battle lines between himself and

the Republicans ahead of the election. It is a very strange

thing, because everybody expects the speech to be somewhat

bipartisan, because it is a state of the Union speech, and it is a

chance for any president to lay out an agenda in an environment which

is not particularly unpleasant or divisive. But as we shall see, even

partisanship does now play a role in tonight's Theatre. And there

will be moments when only the Democrats' support and moments when

the Republicans are clearly silent. So it is a little strange as an

event. It is a political speech in what is supposed to be a non-

political environment. Are we going to hear him at laid out his and the

Democrats' vision for America, without even necessarily mentioning

the Republicans? Is he going to draw a clear contrast between how

he would see the country and where he would take the country, and

where Republicans would take the country? Yes, he's going to be

looking for opportunities all belong to rise above the campaign

which is already under way. He will call tonight for a number of things

which he hopes both parties can agree on. One of the big ones will

be tax reform. He knows that the Republicans want to love a tax

rates. He has said in the documents that they have handed out in

defence, that he would like to do a broad tax reform. There we have

Secretary of State Hillary Clinton embracing Gabriel Giffords, the

congresswoman who was shot in Arizona just over a year ago,

making a brave return here just before her departure from the US

Congress. No accident that she has been given such a prominent

position in the room. We are probably going to see a lot of have.

Nor is it an accident that Hillary Clinton, a former member of the

Senate, is taking time to greet everybody. This is the White House

staff coming in now. That is Jim Jack Blum, the new chief of staff,

and the ambassador to the United Nations, so there are a number of

other people coming in who have cabinet rank. It really is the

great and the good of Washington, against the backdrop of the

President's themes and these visitors he has placed in the First

Lady's box, to illustrate what he wants to talk about. Manufacturing

will be one of the big themes denied. And I suspect we will have

somebody in one of the boxes he is involved in manufacturing. Energy,

particularly natural gas drilling and the jobs that might engender,

is going to be another big item in the speech tonight. The last one

was this thing they were bumping under values, which is the most

political of the bulge, because it is where he is going to talk about

fairness. Yes, people are talking about this theme of fairness. And

of course this is a country where, perhaps much more but then Europe,

there is no resentment of people having made a lot of money.

Americans applaud people for making money. And yet we have this debate

about whether the system is fair. Especially when you have

Republicans arguing about whether their own candidates has the same

view about fairness, and who owns what and how you own it, which has

definitely been going on in the primaries. It is easier for the

President to slide in and say we ought to have a fair tax system, we

ought to have a look at the benefits and the brakes that

millionaires get. He is going to talk about money and politics

denied. Powerful corporate interests play a huge role in

Washington, which is not so much fairness as it is about people

versus corporations. You mentioned earlier that this is meant to be a

non-political speech but will actually end up being a very

political speech. Do you think, from the snippets we have seen of

it so far from the White House, that this will be a divisive speech

in America? I think that on all these fronts, manufacturing, energy,

job training, he is going to try to reach out across the aisle.

Speaker, the President of the United States. (APPLAUSE).

President has arrived and is saying hello to members of Congress. And

as you said earlier, some of these members will have been sitting

there for hours, waiting for that chance to say hello. He looks

remarkably relaxed. A big smile. Behind him is the House majority

leader, with whom he tangled over and over again last year on his own

domestic agenda. As close as they are in that picture, there are not

two people in Washington with less in common. No, they have not always

had an amazing relationship at all. You have to wonder if they speak to

each other about things they can do together, this ritual show of

government unity, it is really just a show. There is always room for

the camera. The cameras are important, because of course the TV

audience is just as important. And I think I have probably right in

assuming that this will be the President's best chance to address

the most Americans ahead of the Convention in the summer. Yes, that

is why they are going to put everything they can into the speech

about what they want to do in that second term. Even if some of it is

completely unobtainable with this Congress. It is election

advertising. Exactly. The President has an opportunity to sound and

propose things that could be bipartisan, even though I think

you'll see from the reaction that are very few of them may actually

turn out to be. So it is an opportunity to lay out an agenda,

and to do so in what appears to be a bipartisan arrangement, but in

the end, what we have here is a campaign speech. With a very big

audience. Yes, and it will be a long time before the President gets

another audience like this. important is the speech tonight in

the context of Barack Obama's chances of getting elected? Well,

the fight in the election in 2012 will be about independent votes. He

will get most of the Democratic votes and the Republican candidate

will get most of the Republican votes. So it tonight is about

people who are not affiliated with either party, who have an open mind

about but Obama and to whether the Republican nominee is. Whether he

can convince them that he is the best candidate for 2008. We talked

about the power or of being an incumbent president, and how that

improves your chances over your opponents. And this state of the

Union address is part of that power. Americans like two turn presidents.

They like the continuity that comes with it. They do not like it for a

somebody out after four years. They have done that, but they do not

love politics and off to do it on a regular basis. They are not

Italians. No, they are not Italians. Here he is talking to the Joint

Chiefs of Staff. Always part of the ritual, it always takes him a good

long time to actually get up on the podium and begin the address.

a lot of people do not get to see him outside of the context of

speeches. And there he is saying hello to Gabriel Giffords. She's

getting special attention there from the President. Again, quite

strategically placed. Here he goes, up to the podium. Let's listen to

President Barack Obama giving his annual State of the Union address

to members of Congress, gathered diplomatic staff, members of

government, and of course the tens of millions of Americans who will

be watching this speech. He hands over a copy of the speech to the

Vice-President and the Speaker of the house before addressing the

rest of the country. Members of Congress, I have a high privilege

and that a stint on of presenting to you the President of the United

States. -- distinct on off. Thank you. Thank you. Thank you so

much. They queue very much. Please be seated. Mr Speaker, Mr vice-

president, members of Congress, distinguished guests and fellow

Americans. Last month I went to Andrews Air Force base and are

welcomed home this summer of our last troops to serve in Iraq.

Together, we offered a final proud salute to the colours under which

more than at one million of our fellow-citizens fork. -- fought.

And several thousand gave their lives. We gather tonight knowing

that this generation of heroes has made the United States so far, and

more respected around the world. (APPLAUSE). For the first time, in

nine years, there are no Americans fighting in Iraq. For the first

time in two decades, or summer been Laden is not a threat to this

country. -- a summer Bin Laden. -- Osama bin Laden. Most of Al-Qaeda's

top lieutenant have been defeated. The Taliban's momentum has been

broken. And some troops in Afghanistan have begun to come home.

These achievements are a testament to the courage, selflessness and

teamwork of America's armed forces. At a time when too many of our

institutions have let us down, they exceed all expectations. They are

not consumed with personal ambition. They do not obsess over their

differences. They focus on the mission at hand. They work together.

Imagine what we could accomplish if we followed their example. Think

about the America within our reach. A country that leads the world in

educating its people. An America that attracts a new generation of

hi-tech manufacturing and higher- paying jobs. A future where we are

in control of our own energy. And our security and prosperity are not

so tied to unstable parts of the world. An economy built to last,

where hard work pays off and responsibility is rewarded. We can

do this. I know we can because we have done it before. At the end of

World War II, when another generation of heroes returned home

from combat, they built the strongest economy and middle class

My grandfather, a veteran of General Patton's army, got the

chance to go to college on the GI Bill. My grandmother, who worked on

a bomber assembly line, was part of the work force that turned out the

best products on earth. The two of them shared the optimism of a

nation that had triumphed over fascism. They understood they were

part of something larger. They were contributing to a story of success

that every American hamerican ha to share - the basic American promise

that, if you worked hard, you could do well enough to raise a family,

own a home, send your kids to college and put a little away for

retirement. The defining issue of our time is how to keep that

promise alive. No challenge is more urgent. No debate is more important.

We should not settle for a country where a shrinking number of people

do really well and a growing number of Americans barely get by. Where

we can restore an economy where everyone does their fair share and

everyone plays by the same set of rules.

What is at stake are not democratic or Republican values but American

values. We have to reclaim them. Let's remember how we got here.

Long before the recession, jobs in manufacturing began leaving our

shores. Technology made businesses more efficient but also made some

jobs obsolete. Most of the top saw their incomes rise like never

before. But most hard-working Americans struggled with costs that

were growing, pay cheques that were not, and personal debt that kept

piling up. In 2008, the house of cards collapsed. Mortgages had been

sold to people who could not afford them. Banks had made huge bets and

bonuses with other people's money. Regulators had looked the other way,

or didn't have the authority to stop the bad behaviour. It was

wrong. It was irresponsible. And it plunged our economy into a crisis

that put millions out of work, saddled us with more debt and left

innocent, hard-working Americans holding the debt. In the six months

before I took office, we lost nearly 4 million jobs, and we lost

another 4 million before our policies were in full effect. Those

are the facts. But so are these: In the last 22 months, businesses have

created more than 3 million jobs. Last year, they created the most

jobs since 2005. American manufacturers are hiring again,

creating jobs for the first time since the late 1990s. Together we

have agreed to cut the deficit by more than two trillion dollars, and

we put in place new rules to a halt Wall Street accountable so a crisis

like this never happens again. APPLAUSE.

The state of our union is getting stronger. And we have come too far

to turn back now. As long as I am President, I will work with anyone

in this chamber to build on this momentum. I intend to fight

obstruction with action and I will oppose any effort to return to the

same policies that brought on this economic crisis in the first place.

No, we will not go back to an economy weakened by its outsourcing,

bad debt and phoney financial promises. Tonight I want to speak

about how we move forward, lay down a blueprint for an economy built to

last. An economy built on American manufacturing, American energy,

skills for American workers and renewal of American values. This

blueprint begins with American manufacturing. On the day I took

office, our auto industry was on the verge of collapse. Some even

said we should let it die. With one million jobs at stake, I refused to

let that happen. In exchange for help, we demanded responsibility.

We got workers and auto makers to settle their differences. We got

the industry to restructure. Today General Motors is back on top as

the world's Number One auto maker. Chrysler has grown faster in the US

than any major car company. Ford is investing billions in US plants and

factories. Together the entire industry added nearly 160,000 jobs.

We bet on American workers. We bet on American ingenuity, and tonight

the American auto industry is back. What's happening in Detroit can

happen in other industries. It can happen in Cleveland and Pittsburgh

and we can't bring every job back that has left our shore but right

now it is getting more expensive to do business in places like China.

Meanwhile, America is more productive. A few weeks ago, the

CEO of a company told me it now makes business sense for him to

Today, for the first time in 15 years, the Company's unionise plant

in Milwaukee is running at full capacity. So we have a huge

opportunity at this moment to bring manufacturing back, but we have to

seize it. Tonight my message to business leaders is simple - ask

yourself what you can do to bring jobs back to your country, and your

country will do everything we can APPLAUSE.

We should start with our tax codes. Right now, companies get tax breaks

for moving jobs and profits overseas. Meanwhile, companies that

choose to stay in America get hit with one of the highest tax rate in

the world. It makes no sense and everyone knows it. So let's change

it. First, if you are a business that wants to outsource jobs, you

shouldn't get a tax deduction for That money should be used to cover

moving expenses for companies that decide to bring jobs home. Second,

no American company should be able to avoid paying its fair share of

taxes by moving jobs and profits overseas. From now on, every

multinational company should have to pay a basic minimum tax, and

every penny should go towards lowering taxes for companies that

choose to stay here and higher here in America. -- hire.

APPLAUSE. Third, if you are an American

manufacturer, you should get a bigger tax cut. If you are a hi-

tech manufacturer, we should double the tax reduction you get for

making your product here. If you want to relocate in a community

that was hit hard, you should get help financing a new plant,

equipment and training for new workers. So my message is simple -

it is time to stop rewarding businesses that sheet jobs overseas

and start rewarding companies that create jobs in America. Send me

these tax reforms and I will sign them right away.

APPLAUSE. We are also making it easier for

American businesses to sell products all over the world. Two

years ago I set a goal of doubling US exports over five years. With

our trade agreements, we are on track to meet that goal ahead if

schedule. Soon there will be millions of new customers for

American goods in Panama, Colombia and South Korea. Soon there will be

new cars on the streets of Seoul imported from Detroit, Toledo and

Chicago. I will go anywhere in the world to open new markets for

American products. And I will not stand by when our competitors don't

play by the rules. We have brought trade cases against China at nearly

twice the rate of the last administration - that has made a

difference. Over 1,000 Americans are working today because we

stopped a surge in Chinese tyres, but we need to do more. It is not

right when another country let's our movies, music and software be

pirated. It's not fair when foreign manufacturers have a leg up on ours

because they are heavily subsidised. Tonight I'm announcing the creation

of the Trade Enforcement Unit that will be charged with investigating

unfair trading practices in countries like China. There will be

more inspections to prevent counterfeit or unsafe goods from

crossing our borders, and this congress should make sure that no

foreign company has an advantage over American manufacturing when it

comes to accessing financing or new markets like Russia. Alan markets

are the most productive on earth and, if the ground is level, I

promise you, America will always win.

I also hear from many business leaders who want to hire in the

United States but can't find workers with the right skills.

Growing industries and science and technology have twice as many

openings as we have workers who can do the job. Think about that.

Openings at a time when millions of Americans are looking for work. It

is inexcusable, and we know how to fix it. Jackie is a single mum from

North Carolina who was laid off from her job as a mechanic. When

Siemens opened against her blind factory, they formed a partnership

with the Central College. -- turbine factory. They gave her a

course in robotics training, paid her tuition and hired her to help

operate the plant. I want every American looking for work to have

the same opportunity as Jackie did. Join me in a national commitment to

train 2 million Americans with skills that will lead directly to a

job. My administration has already lined

up more companies that want to help. Model partnerships between

businesses like Siemens and community colleges in places like

Charlotte, Orlando and Louisville are up and running. Now you need to

give more community colleges the resources they need to become

community Career centres, places that teach people skills that

businesses are looking for right now. From Data Management a hi-tech

manufacturing. And I want to cut through the maze of confusing

training programme so that, from now on, people like Jackie have one

programme, one website and one place to go for all the information

and help that they need. It is time to turn our unemployment system

into a re-employment system that These reforms will help people get

jobs that are open today. But to prepare for the jobs of tomorrow,

our commitment to skills and education have to start earlier.

For less than 1% of what our nation spent on education each year, we

have convinced nearly every state in the country to raise their

standards for teaching and learning. The first time that has happened in

a generation. But challenges remain. And we now have to solve them. At a

time when other countries are doubling down on education, tight

budgets have forced state to lay off thousands of teachers. We know

a good teacher can increase of the lifetime income of a classroom by

over $250,000. A great teacher can offer an escape from poverty. To

their childhood dreams beyond his circumstance. Every person in this

chamber can point to a teacher who changed the trajectory of their

lives. Most teachers worked tirelessly, with modest pay.

Sometimes they did into their own pockets for school suppliers, just

to make a difference. -- supplies. Teachers matter. So instead of

bashing them, or defending the status quo, that of the schools a

deal. Defender resources to keep good teachers on the job and reward

the best ones. -- div again that the resources. And in return, I

grant schools flexibility, to teach with creativity and passion. To

stop teaching to the test. And to replace teachers to work just not

helping kids alone. That is a Biden worth making. APPLAUSE. -- that is

a Biden are worth making. We also know that when students do

not walk away from their education, are more of them walk the stage to

get their diploma. When students are not allowed to drop out they do

better. So tonight, I am proposing that every state requires that all

students stay in high school until they graduate or turn 18. When kids

do graduate, the most daunting challenge can be the cost of

college. At a time when Americans were more intuition debt and credit

card debt, this Congress needs to stop the interest rates on student

loans from Dublin in July. -- from the double wing in July. Extend the

tuition tax credit we began, which saves millions of middle class

families thousands of dollars. And give more young people the chance

to earn their way through college by doubling the number of work

study jobs in the next five years. Of course, it is not enough for us

to increase student aid. We cannot just keep subsidising sky rocketing

tuition. Will we will run out of money. States also need to do that

part, by making higher education a higher priority in their budgets.

And colleges and universities have to do that part, by working to keep

costs down. Recently I spoke with a group of college president to have

done just that. Some schools redesign courses to help students

finish more quickly. Some use better technology. The point is, it

is possible. So there to be put colleges and universities on notice.

If you cannot stop tuition from going up, up the funding you get

from taxpayers will go down. Higher education cannot be a luxury. It is

an economic imperative, that every family in America should be able to

afford. Let's also remember that hundreds of thousands of talented,

hard-working students in this country face another challenge. The

fact that they are not yet American citizens. Many were brought here as

small children. They are American through and through. Yet David

every day with the threat of deportation. -- and eight lives.

Others came more recently, to study science and business and

engineering. But as soon as we -- as soon as they get that degree, we

sent them home, to create new products and create new jobs

somewhere else. That does not make sense. I believe as strongly as

about that we should take on illegal immigration. That is why my

administration has put more soldiers on the border than ever

before. That is why there are fewer illegal crossings and when I took

office. Are the opponents of action are out of excuses. We should be

working on comprehensive immigration reform right now.

APPLAUSE. But if election-year politics keeps congas from acting

on accomplice -- Comprehensive Plan, let's at least agree to stop

expelling responsible young people who want to start new businesses,

defend this country. Send me a ball that gives them the chance to earn

their citizenship. I will sign it right away. APPLAUSE. An economy

built to last is one where we encouraged the talent and ingenuity

of everybody in this country. That means women issued an equal pay for

equal work. -- women should learn. -- burn. -- earn. It means we

should support everyone he is willing to work. And every risk-

taker and on to open door, who aspires to become the next Steve

Jobs. After all, innovation is what America has always been about. Most

new jobs are created in small businesses. So let pass an agenda

that helps them succeed. Tear down regulations that prevent aspiring

entrepreneur has to get in the financing they need. Expand tax

ruling to small businesses that are creating wages and new jobs. Both

parties agree on these ideas, so put them in a bill, and get it on

my desk this year. Innovation also demands basic research. Today, the

discoveries taking place in our federally financed labs and

universities could lead to new treatments that kill cancer cells

but leave healthy ones untouched. New lightweight body armour for

cops and soldiers that can stop any board. Do not doubt these

investments in our budget. Do not let other countries when the race

for the future. Support the same kind of research and innovation

that led to the computer chip and the internet. To new American jobs,

and new American industries. And no way is the promise of innovation

great event in American made energy. -- know where. Over the last three

years, we have opened millions of new acres for oil and gas

exploration. And tonight I am directing my administration to open

more than 75% of our potential offshore and gas resources.

APPLAUSE. Right now, American oil production is a high as two that it

has been in eight years. -- heist. Not only that, last year we relied

less on foreign oil found in any of the past 16 years. But with only 2%

of the world's oil reserves, oil is not enough. This country needs an

all out, all of the about strategy, that develops every available

source of American energy. APPLAUSE. A strategy that is cleaner, cheaper,

and full of new jobs. We have a supply of natural gas that can last

America nearly 100 years. And my administration will take every

possible action to safely develop this energy. The experts believe

this will support more than 600,000 jobs by the end of the decade. And

I are requiring all companies that drill for gas on public land to

disclose the chemicals they use. So Amr a double develop this resource

without putting the health and safety of our citizens at risk. --

America will develop. The development of natural gas will

create factories that a cleaner and cheaper, proving that we do not

have to choose between our environment and our economy. And by

the way, it was public research dollars, over the course of 30

years, that helped develop the technology is to extract all this

natural gas out of shale rock. Reminding us that government

support is critical in helping businesses get new energy ideas off

the ground. APPLAUSE. What is true for natural gas is just as true for

clean energy. In three years, our partnership with the private sector

has already positioned America to be the world's leading manufacturer

of hi-tech batteries. Because of federal investments, a renewable

energy use has nearly doubled. And thousands of Americans have jobs

because of it. When Brian was laid off from his job making furniture,

he said he worried that at 55, nobody would give him a second

chance. But he found work, at energetic, a wind tower buy-back

factory in Michigan. -- turbine. Before the recession, it only made

a luxury yachts. But now it is hiring workers like Brian, he said,

I am proud to be working in the industry of the future. Our

experience with shale gas and with natural gas shows us that the pay-

offs of these public investments do not always come right away. Some

technologies do not pan out. Some companies fail. But I will not walk

away from the promise of clean energy. I warned not to walk away

from a workers like Brian. -- I will not. APPLAUSE. I will not give

the wind or solo or battery industry to China or Germany

because we refuse to make the same commitment here. We have subsidised

oil companies for a ces for a cet is long enough. It is time to end

the tax paid giveaways to an industry that is more profitable

and... Create these jobs. We can also spur energy innovation with

new incentives. The differences in these changes may be too deep right

now to pass a comprehensive plan on climate change. But there is no

reason why, this should not at least set a clean energy standards

that creates a market for innovation. -- Congress. So far you

have not had to. Well, tonight, I will. I am directing my

administration to about the development of clean energy on and

off publicly urged to power 3 million homes. -- public land. And

the Department of Defence, working with us, at the world's largest

consumer of energy, will make one of the largest commitments to clean

energy in history. The Navy will be purchasing and a capacity to power

3 million homes every year. -- a Of course, the easiest way to save

money is to waste less energy, so here's a proposal - help

manufacturers eliminate energy waste in their factories and give

businesses incentives to operate their buildings. Their energy bills

will be $100 billion lower over the next decade and America will have

less pollution, more manufacturing, more jobs for construction workers

who need them. Send me a bill that creates these jobs.

APPLAUSE. Building this new energy future

should be just one part of a broader agenda to repair America's

infrastructure. So much of America needs to be rebuilt. We have got

crumbling roads and bridges, a power grid that wastes too much

energy, and in complete high-speed broadband network that prevents a

small business owner in rural America from selling their products

all over the world. During the Great Depression, America built the

Hoover dam and the Golden Gate Bridge. After World War II, we

connected our states with this system of highways. Democratic and

Republican administrations invested in great projects that benefited

everybody from the workers who built them to the businesses that

still use them today. In the next few weeks, I will sign an executive

order clearing away the red tape that slows down to many

construction projects, but you need to fund these projects. Take the

money we are no longer spending the at war, used heart of it to pay our

debt, and use the rest to do some nation-building at home.

There's never been a better time to build. Especially since the

construction industry was one of the hardest hit when the housing

bubble burst. Of course, construction workers were not the

only ones who work hurt. So were millions of innocent Americans who

have seen their home values decline, and, while government can't fix the

problem on its own, responsible homeowners should not have to sit

and wait for the housing market to hit bottom to get some relief. And

that's why I'm sending this Congress a plan that gives every

responsible homeowner the chance to save around $3,000 the year on

their mortgage by refinancing at historically low rates. No more red

tape, no more runaround from the banks. A small fee on the largest

financial institutions will ensure it does not add to the deficit and

will give those banks rescued by taxpayers the chance to repay a

deficit of trust. APPLAUSE.

Let's never forget - millions of Americans who work hard and play by

the rules every day deserve a government and financial system

that do the same. It is time to apply the same rules from top to

bottom - no bail-outs, no handouts and no copper arts. And America

built to last insists on responsibility from everybody.

We've all paid the price for lenders who have sold mortgages to

people who could not afford them and buyers who knew they could not

afford them. That's why we need smart regulations to prevent

irresponsible behaviour. APPLAUSE.

Rules to prevent financial fraud or toxic dumping or faulty medical

devices - these don't destroy the free market. They make the free

market work better. There's no question that some regulations are

outdated, unnecessary or too costly. In fact, I'd have proved fewer

regulations in the first three years of my presidency than my

Republican predecessor did in his. I've ordered every federal agency

to eliminate brawls that don't make sense. We have already announced

over 500 reforms and just a fraction of them will save business

and citizens more than $10 billion over the next five years. We got

rid of one rule from 40 years ago that could have forced some dairy

farmers to spend $10,000 a year proving they could contain a spill

because milk was somehow classified as an oil. With the roar like that,

I guess it was worth crying over spilt milk. -- a rule like that.

I'm confident a farmer could contain a milk spill without a

federal agency looking over his But I will not back down from

making sure UN oil company can contain the kind of oil spell we

I will not back down from protecting our kids from Mercury

poisoning or making sure that our food is safe and a water is clean.

-- our water is clean. I will not go back to the days when insurance

companies could charge women differently than men.

APPLAUSE. And I will not go back to move the

days when Wall Street was allowed to play by its own set of rules.

The new rules we passed restore what should be any financial

system's core purpose - getting funding to entrepreneurs with the

best idea, and giving homes to responsible families that want to

buy a home, start the business or send their kids to college. So, if

you are a big bank or financial institution, you are no longer

allowed to make risky bets with your customers' deposits. You are

required to write a living will underlining how are you will pay

back your investors because the rest of us are not dialling you're

out again. -- bailing you out again. If you are mortgage lender or a

credit card company, the days of signing people up for products they

can't afford with deceptive practices - those days are over.

Today American consumers finally have a watchdog with one job - to

look out for them. We will also establish a financial

crimes unit of highly trained investigators to crackdown on

large-scale fraud and protect people's investments. Some

financial firms violate major anti- fraud laws because there is no real

penalty for being a repeat offender. That's bad for consumers, and it's

bad for the vast majority of bankers and financial service

professionals who do the right thing. So pass legislation to make

the penalties for fraud count, and tonight I'm asking my attorney

general to create a special unit of leading state attorney generals to

expand our investigations into the abuse of packaging and risky

mortgages that led to the housing crisis. This new unit will hold

accountable those that broke the law, speed assistance to homeowners

and help to turn the page on an era of recklessness that hurt so many

Americans. Now, a return to the American values of fair play and

shared responsibility will help protect our people and our economy,

but it should also guide us as we look to pay down our debt and

invest in our future. Right now Our most immediate priority is stopping

a tax hike on 160 million working Americans while the recovery is

People cannot afford losing $40 out of reach paycheck this year. There

are plenty of ways to get this done. So let's agree right here, right

now - no side issues, no drama - pass the payroll tax cut without

When it comes to the deficit, we have already agreed to more than

two trillion dollars of cuts in savings, but we need to do more.

And that means making choices. Right now, we are poised to spend

nearly one trillion dollars more on what was supposed to be a temporary

tax break for the wealthiest 2% of Americans. Right now, because of

loopholes and shelters in the tax code, a quarter of all millionaires

paying lower tax rates than millions of middle class households.

Right now, Warren Buffet pays a lower tax rate than his secretary.

Do we want to keep these tax cuts for the wealthiest Americans, or do

we want to keep our investments in everything else? Like education and

Medical Research, a strong military, and care for our veterans. If we

are serious about paying down our debt, we can't do both. The

American people know what the right choice is. So do I. As I told the

Speaker this summer, I'm prepared to make more reforms that brain

into long-term costs of Medicare and Medicaid and strength and

social security so long as those programmes remain a guarantee of

security procedures. But, in return, we need to change our tax codes so

that people like me and that awful lot of members of Congress pay our

Tax reform should follow the Warren Buffet rule - if you make more than

$1 million a year, you should not pay less than 30% in taxes. My

Republican friend is right - Washington should stop subsidising

millionaires. In fact, if you are earning $1 million a year, you

should not get special subsidies or reductions. On the other hand, if

you make $150-200,000, like millions of Americans, your taxes

should not go up. You are the ones struggling with rising costs and

wages. You are the ones that need relief. Now, if you can call this

class warfare, you can do that all you want, but asking a billionaire

to pay at least as much as his secretary in taxes? Most Americans

would call that common sense. We don't begrudge financial success in

this country. We admire it. When Americans talk about folks like me

paying my fair share of taxes, it's not because they envy the rich.

It's because they understand that, when I get a tax break I don't need

and the country can't afford, it either adds to the deficit or

somebody else has to make up the difference, like a senior on a

fixed income or a student trying to get through school or a family

trying to make ends meet. That's not right. Americans know that's

not right. They know that this generation's success is only

possible because past generations felt a responsibility to each other

and the future of their country, and they know our way of life will

only endure if we feel that same sense of shared responsibility.

That's how we will reduce our deficit. That some America built to

last. -- that's an America built to Now, I recognise that people

watching tonight have differing views about taxes, debt, energy and

healthcare. But, no matter what party they belong to, I bet most

Americans are thinking the same thing right about now - nothing

will get done in Washington this year, or next year, or maybe even

the year after that, because Washington is broken. Can you blame

them for feeling a little cynical? The greatest blow to our confidence

in our economy last year didn't come from events beyond our control.

It came from a debate in Washington over whether the United States

would pay its bills are not. Who benefited from that fiasco? I've

talked tonight about the deficit of trust between Maine Street and Wall

Street but the divide between this city and the rest of this country

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

has to do with the corrosive influence of money in politics. So,

together, let's take some steps to fix that - send me a bill that bans

insider trading between members of Congress and I will sign it

Let's lament any elected official from owning stocks in industries

are they impact. -- limits. An idea that has bipartisan support that is

outside of Washington. Some of what is broken has to do with the way

Congress does its business. A simple majority is no longer enough

to get anything, even reading Business, passed through the Senate.

-- read seen a business. Neither party had been blameless. Right

parties should put an end to it. I asked the Senate to pass a simple

rule that all judicial and public service nominations received a

symbol up or down a vote within 90 days. The executive branch also

needs to change. To are often it is inset -- inefficient, outdated and

a remote. That is why I asked his Congress to grab media charity to

consolidate the bureaucracy it. -- grants need the authority. Nine of

this can happen. Unless we can allow where the temperature in this

town. We need end the notion that the two parties need to be a lot in

a perpetual campaign of mutual destruction. I am a Democrats. But

I believe what Abraham Lincoln believed. The government should do

what people only what they cannot do better for themselves and no

That is why my education reform offers more competition, more

control was cool and states. That is why we are getting rid of

regulations that do not worked. Even my Republican friends, who

complain at the mess about government spending, have supported

it claimed energy projects and federal offices for the folks back

home. We should all once a smarter, effective government. While we may

not be able to reach our biggest philosophical differences this

India, we can make real progress. - - this year. I will keep taking

action that will help the corner -- economy grow up. I could do more

with your help. When we act together, there is nothing the US

cannot achieve it. That is the lesson we learnt from our action

abroad over the last few years. Ending the Iraq war has allowed us

to strike decisive blows against our enemies. They know they cannot

escape the reach of the US. (CHEERING AND APPLAUSE). From this

position of strength, we begin to wind down the war in Afghanistan.

10,000 of our troops have come home. 23,000 more will lead by the end of

the summer. This transition will continue. We will build an

intricate -- enduring partnership with Afghanistan so it will never

be a source of attacks against America. As the tide of war or

receipts, a way of change has washed across the near East

signalled that -- North Africa. -- Middle East. One year ago, Gaddafi

was one of the world's longest serving dictators. He was a

murderer with American blood on his hands. Today, he is gone. In Syria,

I have no doubt the President Assad's regime will soon discover

about human dignity cannot be How this incredible transformation

will end remains uncertain. But we have a huge stake in the outcome.

While it is up to the people of the region to decide their fate, we

will advocate of those values that have served our own country so well.

We will stand against violence and intimidation. We will stand for the

rights and dignity is for all human beings, men and women, Christians,

Muslims and Jews. We were support policies that it is strong

democracy is. Tyranny is no match for liberty. We were saved than

America's own security against those who threaten out friends and

interests. Look that Iran, through the power of out the -- diplomacy,

they now stand as one. As long as they shirk the responsibility, is

pressure would not relent. There will be no doubt, a man that is

determined to prevent Iraq from getting a nuclear weapon. I will

take no options on the table to Is full resolution is still

possible. And far better. -- peaceful. It Iran it meets his

obligations, it can rejoin the community of nations. The renewal

of American leadership can be felt across the globe. Our orders

alliances in Europe and Asia are stronger than ever. Out ties to the

Americas are deeper. Our iron-clad To is Raul security has meant the

closest military operation between the two countries in his three. --

is raz mac. -- Israel. America is a Pacific power. A new beginning in

Burma has created new head. -- hope. CD and Joan Cowell of our moral

example, America is back. -- from Leaders around the world are eager

to work with us. Opinions of America around the world had -- are

higher than they had been in years. The world is changing, we cannot

control every events but America remains the one indispensable

nation in world affairs and as long as I am President, I intend to keep

I have proposed a new defence charity which ensures we maintain

the ban is military in the world last saving more than $500 billion

in our budget. We was a -- one step ahead of our enemies. Above all,

our freedom and joy as because of the men and women in uniform who

As they come home, we must serve them as well as they have served us.

That includes giving the in the care and benefits they had earned.

We have increased annual spending every year I have been president.

It means enlisting our veterans in the work of rebuilding our nation.

With the bite at -- iPad isn't so but we at the -- providing new tax

breaks for companies that hire veterans. I am proposing a veteran

buzz mac jump court that will sulk a community to a higher Berens as

cuts and firefighters said America will be as strong as those who

defend them. -- police and firefighters. It brings me back to

where I began. Days of us who had been sent here to serve, can learn

a thing of to run the service of our troops. -- those of us. When he

put on that tune of one, it does not matter if you're black, white,

Asian, lead singer, Native American, conservative, liberal, rich, poor,

or gay, straight. When you are marching into battle, you look out

for the person next to you. Or at the mission fails. When you are in

the thick of the fight, you rise or fall as one unit. Stepping one

nation. Leaving no-one behind. -- serving one a nation. One of my

Paris possessions is the flag the Still to come: Team it will in

their mission against Osama Bin Laden. -- Navy Seal was. All that

mattered was the mission. Nobody thought about politics. Nobody

thought about themselves. One of the young men involved told me he

did not deserve credit for the mission. He said it only succeeded

because every single member of the unit did their job. The pilot who

landed the helicopter that spun out of control. The translate every cap

others from entering the compound. The trips is separated the women

and children from the fight. -- the troops. The Navy seals to charge up

the stairs. More than that, the mission only succeeded because

every member of that unit trusted each other. Because you cannot hide

up those stairs in the darkness and danger unless you know there is

somebody behind you, watching your back. So it is with America, each

time I look at that line I am reminded that our destiny is

stitched together like those 50 stand and 13 stripes. No-one built

his country on their own. Is a nation is great because we built it

together. This nation is great because we worked as a team of.

This nation is great because we get each other's backs. It we hold a

fast Debach route, there is no challenge to a great, no mission at

too hard. -- hold onto that of. Our picture is for it will and the

state of our union will always be strong. Thank you. God bless the

Ending his state of the Union address to members of Congress, he

spoke for just over one hour. He spoke on his players for the future

and how much he has achieved. -- plans for the future. Now he has

the ritual of leaving the chamber. He is shaking hands with all of the

members of Congress as the leaves. As you watched President Obama

there, making his way out of the chamber, what did you think? Above

everything he said, all of these specific proposals, all the things

he mentioned, just how energetic he Saadat. He has been criticised for

being aloof, withdrawn, and little bits call. I was struck almost from

the beginning how punchy and upbeat he was. At times he felt very

passionate. I think the word used was urgent. I felt that throughout

the speech. He wanted to convey that. Before any of the specifics,

he conveyed his emergency. remember listening to it last

year's state of the Union address, and it was very much a overlaid

with this sense of the challenge that America faced from rising

China. Tonight, that line he had about America is back, a radically

different tone about where he sees America in the world. It is like he

has had an education. He spoke about America been an indispensable

power. You could easily conclude that he had spent the EU, solving

that problem, China is now a minor thing to be dealt with with a trade

unit. He said, we are back as a Pacific power. Otherwise, China got

a very short shrift on this speech. His language is almost brooded for

an America whose economy is built to last. -- coded for America.

Manufacturing has come back, he asserted that jobs are starting to

come back. He said America is getting stronger. Very upbeat and

are very hopeful. It is not easy to be so, but it was. You suggested

the need to invest in education and manufacturing. But he was

remarkably positive and optimistic. He was optimistic about the state

of the country. One line that caught my attention was, we bet on

America. Politicians of both parties have used, but most notably

by Bill Clinton. He used to say people have lost money betting

against the American economy. Obamas said that it had all paid

off. President Obama finally leaving the chamber, the signing

autographs. Shaking hands with members of Congress. You can hear

him so well. Would you sign one for me? It is interesting, isn't it?

They go to have his signature. would think that, and yet they Orne.

There must be some sort of black market. He is happy to linger.

is a rock star quality to the President. I was struck by the

power of the presidency. One thing he can do, he does not need

approval for, he spoke on every part of the speech. He is reminding

the public, as he noted, and they have been unhappy, but he reminded

that they were things he would do. He took a dig at Republicans. You

said before the speech started, it is an intensely political speech.

He did not mention the election in November, but he certainly outlined

his vision of America as opposed to end contrasted with the Republican

vision. He said that he would meet a obstruction with action. That was

his veiled threat. He previewed, better than he has before, how he

will run against Congress this year. Against the corporate end money

interest, against their ability to trade stocks based on insider

information. They are powerful issues at a time where people feel

Washington is Adventist. I thought that was it a real shot across the

Congressional field. He also spoke in terms of the congressional bow.

He mentioned members of Congress when it came to the tax issue, he

said, some of you are paying less tax has than ordinary Americans. He

said it is not fair. The tax reform issues are on strike but it is a

central issue. He said, I do not pay enough in taxes, we can fix it.

Maybe not this year, but we can do it. Before the speech, we talked

about how to handle this issue of fairness. He wanted to make it

Central. In a sense, it is a political double. You do not want

to sound like you are as lemming be rich. He is heading back to the

wide grass right now. -- Fleming be rich. He will be out on the

campaign trail. The members of Congress are leaving the chamber,

having listened to President Obama deliver the state of the Union

address. He spoke for just over one hour. We talked airily about this

issue of fairness. We knew the President would address it in the

speech. He had to juggle the issue of not criticising people for

making money, but he wanted to say that everyone should play by the

same rules. Do you think he managed? I think it is difficult to

say anything in this context that does not upset someone. Fairness is

an issue that he does not have any trouble with Democrats on, but when

he speaks to groups of independence, they will be far more interested in

Washington getting something done. A fairer tax code is complicated

and difficult to do, so if that process can be rationalised, There

is a lot of logic for doing that. Most Americans know that the system

is ridge towards people who have a complicated financial investments.

If you can afford them, you get breaks in excess of this size. He

is saying tonight, if you make more than $1 million, you should not get

any exemptions. In theory, that would be a very big way in the --

very big difference in the way we have done business. He prefaced it

by saying that we admire people for making money. But we should not

give them extra help in doing so. He said for every dollar but we

give people who do not need it, that means this person or that

person will not get it. In the end, if there is tax reform, that will

will not look like what he called for tonight. It will not be a clear

$1 million, no reductions. But it will be brought into balance.

else did he laid out in the speech that he can realistically achieved

in the next year? Where their things in this speech that would

actually changed America over the course of the year? Several things

caught my eye. He basically called on the Congress to somehow compel

colleges to forgo its duration increases, all lose federal funding.

That would be a dramatic change in the way business gets done,

certainly in higher education. Second, he called on the States to

require students to stay in high- school until they're 18. The drop-

out rate in the country is dramatic. That would be a huge change. NT

called for tax cuts, in ways he had not done before. He said that tax

cuts would help bring jobs back from overseas. There is a chance

that would happen. Weasel phrases behind him who did not look like

they would give the President a win on anything. -- faces behind him up.

He spoke about jobs overseas and how they could bring jobs back to

America. We know he has spoken about it with business leaders

around the country. He spoke to Steve Jobs and asked him about the

Apple jobs overseas. He addressed it tonight. It is a great talking

point. I have never heard anyone explain how many jobs would come

back if those tax centres -- tax incentives were removed. It is a

powerful wait to bring a Congressional inaction, the

unfairness of the tax code, and the unemployment question altogether.

We have going to get the Republican response from Mitch Daniels, the

former governor of Indiana. As is the tradition, he is going to give

the Republicans reply. The status of loyal opposition

imposes on those out of power Syria's responsibilities. To show

respect for the presidency, to express agreement weary it exists.

Republicans salute our President for his aggressive pursuit of the

murderers of 9/11, and for backing long overdue changes to public

education. I personally would add to that list admiration for the

strong family commitment that he and the first lady have displayed

took a country. President's seek to suck -- seek to find the sunny side

of our national condition. But when he claims that the state of very

union is anything but grave, he must know in his heart that it is

anything but untrue. He did not cause the problem, but he was

elected on a promise to fix them. He cannot claim that the last three

years have made things anything but worse. One in five men are of prime

working age, and nearly half of all persons under 30 did not go to work

today. In three short years, an unprecedented explosion of spending

with borrowed money has added trillions to an already

unaffordable national debt. The President has put us on a course to

make it radically worse in years ahead. The federal government now

spends $1 art of every $4, it borrows $1 out of every $3 it

spends. No nation can survive intact with debts as huge as ours.

The President's grand experiment has held back, rather than spread

economic recovery. He seems to believe we can build a middle class

out of government jobs, paid for with borrowed dollars. It works the

other way. A government is big and bossy. It is maintained on the

backs of the middle class. Those punished most by at the wrong terms

of the last three years are the unemployed. They are discouraged

and have abandoned the search for work. No-one has been more

tragically harmed than the young people. The first generation in

memory to face the future less promising than their parents did.

As Republicans, our first concern is for those waiting to begin the

climb up life's ladder. We do not accept that house will be a nation

of hides and have-nots. We should be a nation of steam to house. In-

out economic stagnation, weary short distance behind degrees and

As is a fortune a land. We have a short grace period to deal with our

dangers. Time is running out if we are to avoid it the fate of Europe.

2012 is a year of true opportunity, may be our last to restore a

America of Hope and upward mobility and greater equality. The

challenges are not matters of party preference. The problems are some

Vaclav Havel medical and the answers are purely practical. --

mathematical. Republicans accept these duty great filly. Its roots

back to an America of plumbers that can pay its bills and protect its

vulnerable. The only way out for those suffering is a private

economy that begins to grow and create jobs, real jobs, at a much

greater rate than today. The eighth Steve Jobs created more jobs then

up all the other stimulus dollars of the President Barlow -- borrowed

and blue. When a businessman asked me what eager-to-please date I said,

make money and be successful. -- what I could do for the state? It

must be replaced with a passion ate pro-growth result. It must restore

opportunity for all and generate the public revenues to pay our

bills. That means a dramatically different rates. That means

maximising on a new domestic technologies which is the best

break our economy has gotten in years. There is a second item on

our national must do this. We must unite and say that the safety net.

Medicare and social security has served us well and that must

continue. Back after 75 years, it needs some repairs was dealt we can

preserve them for the older population. But we need to repair

it for the future. The dollar as we have it should be devoted to those

who need it the most. The mortal enemies of social security at those

who are in concerns of the plain arithmetic, continued to miss Lee

Americans that we should change her nothing. -- mislead. It will mean

coming generations are denied the jobs they need in their youth and

the protection they deserve in their later years. It is absolute

limit so that everyone should contribute to our national recovery

including the most affluent among us. There are smart ways and Dumber

always to do is. The dumb way is to raise rates in a complex tax system,

choking are for growth without bringing in the Revenue's we need

to meet our debts. The back the cause is stop sending the wealthy

better as they do not need an stop providing them as so many tax

preferences which do little to faster growth. It is not fair and

true for the President to attack Republicans and Congress as

obstacles. They have reduced borrowing and encouraged new job

creation only to be shut down time and time again by the President.

Eight balls to Republicans to level with our fellow citizens about his

reality. -- this year. To any such action happen, we must also work in

ways we have not always practised. No feature of the Barack Obama's

presidency has been Sarat then his constant affects the to divide as.

As in previous members of national day image, we Americans are all in

the same boat. If we drift over a Niagara of debt, we will all suffer

regardless of income, race, gender or other category. If we fail to

shift to a progress economic policy, there would never be in up public

revenue to pay for our safety net, national security or a whenever

side government we decide to have. As a loyal opposition poopers

patriotism and national success ahead of party at any self interest,

we say anyone who wants to join us in the cause of growth is our ally

and our friend. We will speak the language of unity. Let's rebuild

our finances and the safety nets and re open the door to the

stairwell upwards. Other disagreements can wait. The most

troubling contention in our national life is not about

economics or policies at all. It is about us as a free people. The

contention is we Americans cannot have it any more. The President and

his allies tell us we cannot handle ourselves in this complex world

without their benevolent protection. Left to ourselves, we may pick the

wrong health insurance, the wrong mortgage and the wrong school for

out his. -- our kids. The second year it is that we Americans are no

longer up to the job of self- governing. We cannot do the simple

maths that cruise and affordability of today's safety-net programmes. -

- that proves. We will allow ourselves to be pitted against each

other, blaming our neighbours for what troubles our own Government's

and external factors have caused. We must 80 a new generation that

America is still the premier land of opportunity. -- speak to a new.

The government is meant to serve the people rather than supervise

them. Two trapped Americans enough to tell the plain truth about the

fix we are in. -- to trust. There is nothing wrong with the state of

our union that the American people, I just as free-born, cannot set

right. -- addressed. Republicans welcome all our countrymen it to a

programme of renewal which reveals retrieval all. Thank you for

listening. The kinds governor of Indiana or addressing the cameras

with the Republican's rebuttal. I am joined by a Democratic

congresswoman of overnight. Thank you for joining us. I wanted to get

a response sid the President's address. I must have heard a

different stage the Governor was referring to. What I had was the

President creating a vision of America where we can all work

together. We have a mission together. It is to improve our

country and make it a land of opportunity for all of our people.

We can work together and we should. He said it has to be spent where

everybody was there everybody should play their fair share and

played by the same laws. That has now been happening. The middle

class has been powered out. Ordinary people have seen their

income as a drop. He has spent about ways to address that in ways

that I cannot imagine anyone disagreeing with. Which an idea

that tax breaks to companies who outsize -- of that adds lost their

jobs. We need to educate our people a business visit it's that all of

us, Republicans as well, have endorsed. Would some signs of

economic recovery in the country... his speech was more optimistic than

last here. Do you feel that the President's plight -- plans will

help you stay? We know it or do industry in my state now has the

best order industry in the world because of the President. We do

have a higher unemployment rates but there is a sense things are

changing and things are getting better. Things that Congress did

for the first of the years have actually made things better and

pulled us back from the brink of disaster. One I had from the

Republicans is a more of, we have to cut Medicare and social security

but we cannot raise taxes on the wealthy. And he spoke of class

warfare once again. If there is class warfare let them call it that.

The middle class needs a break. Those where the items the President

was outlining. We can all work together. Listening to their

speeches, I was struck by the contrast. Murray the policies but

in the delivery and atone. -- not just the eighth. The governor's

speech was much more dire. I am surprised because the President's

speech was so RBTs that the Republican's response came across

as more downbeat than I expected. - - upbeat. Of course it

congresswoman would endorse the President's speech because they are

in the same party but she sounded remarkably positive. Iowa Democrat

feeling a shift of mood in the country? -- are at Democrats?

has been kind of a wall. She also emphasised the start that was most

political in the speech which is the notion of a fair shot and a

fair shake. It will emerge as a huge campaigning theme of. Eight

congresswoman in really said this is what the speech is about. It

carries a lot far her neck of the words. It is something had voters

wanted here. You suggested that Democrats are going to like what

they here but many Republicans He was the President addressing end

did he persuade them? He was addressing the hardcore Democrats,

young people, there was all that stuff about college. He was also

addressing independent retailers. Back to Capitol Hill. We are joined

by Joe Wilson, Republican congressmen. In the previous state

of the union address, you booed the president for what he was saying.

Did you have a more favourable response tonight? I was very

concerned. I am a veteran of the army and I was appreciative that

the President indicated appreciation of our military. But

people need to know that he is proposing to reduce the army by

80,000 troops. We have a growing threat around the world. The

President is claiming to be for a strong national defence but his

weakening the defence of the United States. What did you think of the

central theme of the speech with was this idea of fairness when it

comes to tax rates? That was misleading. What he was saying is,

raise taxes. We know that to raise taxes will destroy jobs in the US.

We need to do what Ronald Reagan did, cut taxes, grow the economy,

create jobs. Will he mentioned cutting taxes for certain families.

-- well, he mentioned. He said the tax raised would not be raised. It

would be raised for people earning over $1 million. That was not

accurate. 40% of American families do not pay taxes at all. It was

sugar-coated. It was a proposal for a tax increase. It will not work. I

am confident that the Americans know better. The president outlined

what I thought was optimistic. It was an optimistic vision. He said

America is back. He said people who bet against America would lose. You

do not disagree? No, I am not pessimistic. I believe in the

American people. We caple. We ca that. Can you agree on the need for

both sides to work together to get the country moving forward? Yes,

that is what we want him to do. In the 2010 elections, the American

people spoke strongly for a Conservative government. When the

Conservatives came to Congress, the President said that they must

compromise in his diren his diret is not right. The President says

all the right things, but his policies are not what he says.

Where would you be prepared to compromise? To work on policies, as

we did. We passed legislation that cuts taxes, that provided for

unemployment compensation. But the Liberals in the Senate stop our

legislation. Thank you. The Republican response to the

President's state of the union address. No surprise that it did

not go down well. Getting both sides to do anything together on

the really hard staff, the stuff about money, that is where...

Cutting deficits, Texans. Very difficult. -- taxes. There was a

proposal to cut down deep defence budget. They may reinstate the

money that he is proposing to reduce. He may not even get that

savings realised. On every front, they will try to deny him his

agenda. He will be left with doing these Executive Orders, independent

actions. It is not going to be a great pop -- great progress.

says we must have compromise, but when pushed on the specifics, he

was not so sure. What was mentioned was this idea of framework within

be clean energy. I thought that was quite interesting. The two

interesting proposal. The idea to open up public lent. Perhaps to put

up windmills and geothermal projects. Green energy would create

a market for America's fledgling Green energy industry. He said he

would make the defence department by into alternative forms of energy

to power homes for communities near in naval bases. That is a way to go

around Congress. I think there is led a dupe for him to do that. He

if he really wanted to start a Green economy, he could order the

government to buy one million electric cars. People listening to

this speech for the details of policy, or rather they listening to

it for a sense of mood end leadership quality? To try and

change that feeling they may have about the country being on the

wrong track? Those remarks are designed to say, will there be any

forward motion? Some of the best parts of the speech came later when

he said we stopped functioning together, he compared... He said

that was the opposite of how the Navy seals worked. He was making

the point that he recognises that Washington has broken and he wants

to get on the right side of that complete. I thought some of the

most remarkable moments were not during the speech, but beforehand,

when he was shaking hands with the members of Congress, and when we

saw him shaking hands and Harding Gabrielle Giffords. -- Deborah --

Hardy and Gabrielle Giffords. emotional moment. It was a symbol

of politics being broken. He has been a long moment -- a long time

since a congresswoman has been shot in the middle of an event. Luckily

she survived. It was her last night in Congress. She came here to say

goodbye. I was struck by how much of a welcome she got from both

sides. The Democrat place terror in a strategically important position.

It was a remarkable moment. -- Democrats placed her in hay. Can we

sum up? Set against the backdrop of the election in November, did he

advance his chances tonight? strategy tonight was to help

independent voters to leave the door open. I may give him a second

chance. I have been watching the Republican race. If he did that,

but would be a good night. already has the Democrats on his

side. Do you think that Republicans can use what he was saying about

fairness? He will get out on the campaign trail. Republicans will

respond to this, suggesting it is class warfare. They have had

several weeks complaining about each other. He has given them lots

of things to talk about. They will seize that opportunity. It will be

full of references to this speech in the coming days. They will be

reminding the Republicans that President Obama is their enemy, not

each other. President Obama will be going to strategic states around

the country. Yes, states that he needs to hold. Once that you can

tick off of. This speech, his travel schedule, it will now return

to the theatre of politics. It was in an intensely political speech