Obama: Protect American dream

President pushes for economic action in State of the Union

President Barack Obama delivers the State of the Union address Tuesday as Vice President Joe Biden, left, and House Speaker John Boehner of Ohio listen in the U.S. Capitol in Washington. Photo by The Associated Press.

By The Associated Press

Tuesday, January 24, 2012

WASHINGTON (AP) — Declaring the American dream under siege, President Barack Obama delivered a populist challenge Tuesday night to shrink the gap between rich and poor, promising to tax the wealthy more and help jobless Americans get work and hang onto their homes. Seeking re-election and needing results, the president invited Republicans to join him but warned, “I intend to fight.”

In an emphatic State of the Union address, Obama said ensuring a fair shot for all Americans is “the defining issue of our time.” He said the economy is finally recovering from a deep and painful recession and he will fight any effort to return to policies that brought it low.

“We’ve come too far to turn back now,” he declared.

Obama outlined a vastly different vision for fixing the country than the one pressed by the Republicans confronting him in Congress and fighting to take his job in the November election. He pleaded for an active government that ensures economic fairness for everyone, just as his opponents demand that the government back off and let the free market rule.

Obama offered steps to help students afford college, a plan for more struggling homeowners to refinance their homes and tax cuts for manufacturers. He threw in politically appealing references to accountability, including warning universities they will lose federal aid if they don’t stop tuition from soaring.

Standing in front of a divided Congress, with bleak hope this election year for much of his legislative agenda, Obama spoke with voters in mind.

“We can either settle for a country where a shrinking number of people do really well, while a growing number of Americans barely get by,” Obama said. “Or we can restore an economy where everyone gets a fair shot, everyone does their fair share, and everyone plays by the same set of rules.”

A rare wave of unity splashed over the House chamber at the start. Rep. Gabrielle Giffords, survivor of an assassination attempt one year ago, received sustained applause from her peers and cheers of “Gabby, Gabby, Gabby.” She blew a kiss to the podium. Obama embraced her.

Lawmakers leapt to their feet when Obama said near the start of his speech that terrorist leader Osama bin Laden, killed by a raid authorized by the president, will no longer threaten America.

At the core of Obama’s address was the improving but deeply wounded economy — the matter still driving Americans’ anxiety and the one likely to determine the next presidency.

“The state of our union is getting stronger,” Obama said, calibrating his words as millions remain unemployed. Implicit in his declaration that the American dream is “within our reach” was the recognition that, after three years of an Obama presidency, the country is not there yet.

He spoke of restoring basic goals: owning a home, earning enough to raise a family, putting a little money away for retirement.

“We can do this,” Obama said. “I know we can.” He said Americans are convinced that “Washington is broken,” but he also said it wasn’t too late to cooperate on important matters.

Republicans were not impressed. They applauded infrequently, though they did cheer when the president quoted “Republican Abraham Lincoln” as saying: “That government should do for people only what they cannot do better by themselves — and no more.”

In a signature swipe at the nation’s growing income gap, Obama called for a new minimum tax rate of at least 30 percent on anyone making over $1 million. Many millionaires — including one of his chief rivals, Republican Mitt Romney — pay a rate less than that because they get most of their income from investments, which are taxed at a lower rate.

“Now you can call this class warfare all you want,” Obama said, responding to a frequent criticism from the GOP presidential field. “But asking a billionaire to pay at least as much as his secretary in taxes? Most Americans would call that common sense.”

Obama calls this the “Buffett rule,” named for billionaire Warren Buffett, who has said it’s unfair that his secretary pays a higher tax rate than he does. Emphasizing the point, Buffett’s secretary, Debbie Bosanek, attended the address in first lady Michelle Obama’s box.

Obama underlined every proposal with the idea that hard work and responsibility still count. He was targeting independent voters who helped seal his election in 2008 and the frustrated masses in a nation pessimistic about its course.

In a flag-waving defense of American power and influence abroad, Obama said the U.S. will safeguard its own security “against those who threaten our citizens, our friends and our interests.” On Iran, he said that while all options are on the table to prevent Iran from acquiring a nuclear weapon — an implied threat to use military force — “a peaceful resolution of this issue is still possible.”

With Congress almost universally held in low regard, Obama went after an easy target in calling for reforms to keep legislators from engaging in insider trading and holding them to the same conflict-of-interest standards as those that apply to the executive branch.

With the foreclosure crisis on ongoing sore spot despite a number of administration housing initiatives over the past three years, Obama proposed a new program to allow homeowners with privately held mortgages to refinance at lower interest rates. Administration officials offered few details but estimated savings at $3,000 a year for average borrowers.

Obama proposed steps to crack down on fraud in the financial sector and mortgage industry, with a Financial Crimes Unit to monitor bankers and financial service professionals, and a separate special unit of federal prosecutors and state attorneys general to expand investigations into abusive lending that led to the housing crisis.

At a time of tight federal budgets and heavy national debt, Obama found a ready source of money to finance his ideas: He proposed to devote half of the money no longer being spent on the U.S. military in Iraq and Afghanistan to “do some nation-building right here at home,” to help create more jobs and increase competitiveness. The other half, he said, would go to help pay down the national debt.

Obama also offered a defense of regulations that protect the American consumer — regulations often criticized by Republicans as job-killing obstacles.

“Millions of Americans who work hard and play by the rules every day deserve a government and a financial system that do the same,” Obama said. “It’s time to apply the same rules from top to bottom: No bailouts, no handouts and no cop-outs. An America built to last insists on responsibility from everybody.”

Obama will follow up Tuesday night’s address with a three-day tour of five states key to his re-election bid. On Wednesday he’ll visit Iowa and Arizona to promote ideas to boost American manufacturing; on Thursday in Nevada and Colorado he’ll discuss energy, and in Michigan on Friday he’ll talk about college affordability, education and training.

Polling shows Americans are divided about Obama’s overall job performance but unsatisfied with his handling of the economy.

More like this story

Hugs 1 year, 4 months ago

Obama doesn't want to protect the American Dream. He has done so much to try to destroy the American Dream.

tonto_goldberg 1 year, 4 months ago

Factcheck and Snopes both say that old story is fraudulent. Neither of the Obamas was on that television show.

newone 1 year, 4 months ago

I am not saying that everything Obama has done has been right beacuse he has done a lot of stuff i don't agree with but I will give him credit in trying to get the rich pay thier fair share but the Republican's are not allowing him to do that and that is wrong, the Republican's are only for the rich and they say screw the poor which isn't a good thing considering most of the country is at the poor range or heading towards it.

tonto_goldberg 1 year, 4 months ago

FAKE NIC ALERT!

Sequoia 1 year, 4 months ago

I like the overall tone and theme, but all the tax breaks he proposed for manufacturers will make the tax code more complex, when what we need is a simpler tax code with fewer loopholes. Those electronic manufacturing jobs that companies took overseas are never coming back. We let that ship sail a long time ago. The future of American manufacturing is energy and infrastructure. We need to go big on those things NOW.

His plan to use public lands to generate alternative energy isn't good enough, because alternative energy doesn't work if you think about it as just a substitute for coal. You can't just set up a field of solar panels or wind turbines and transmit energy like a coal plant.

The key to making alternative energy work is this: every single home and building in the U.S. needs to be retrofitted. Every single structure needs solar panels on the roof, wind capture technology, and grounds source heating/cooling. We need a ground source grid for every neighborhood. Instead of having power plants outside town that transmit energy to town, we need to embrace the idea that every building is a power plant. Every neighborhood is a power plant. THE CITY IS ITS OWN POWER PLANT. Every house has an electric car plugged in, connected to a smart grid so that each house can both draw power and add power to the grid. All the electric cars constitute a giant national battery to store energy.

The business model for utility companies will change from generating and selling energy to managing the grid, transferring power from where there is a surplus to where it is needed.

This is big, but this is the future. The question is whether we will be the ones selling this technology, or if we'll be buying it from the Chinese and the Germans.

evenkeel 1 year, 4 months ago

Gee, yet another utopian dream, this one from Sequoia.

Which university did you get your engineering degree from S.? How many years have you been employed in the energy industry? Are you driving an electric car? Do you have solar panels installed on your residence? Do you have to lubricate the bearings on your windmill every 3 months or what? Who is this "We" you keep on talking about?

You go your way and I'll go mine.

The following is from Thomas Sowell (who really is a conservative and therefore differs greatly from Andrew Sullivan or David Brooks or even, gasp!, Bob Dole.)
"Ignorance doesn’t stop people from sounding off on every issue. The most recent demonstrations of that are the Occupy Wall Street mobs. It is doubtful how many of these semi-literate sloganizers could tell the difference between a stock and a bond. Yet there they are, mouthing off about Wall Street on television, cheered on by politicians and the media.
At one time I was foolish enough to try to reason with such people. But one of the best New Year’s resolutions I ever made, some years ago, was to stop trying to reason with unreasonable people. It has been good for my blood pressure and probably for my health in general."

A little humility would do us all a lot of good.

Sequoia 1 year, 4 months ago

I DO work in the energy industry, actually. I know what I'm talking about. This is the long-term future.

I'm not sure what my comment has to do with OWS. How long have you been in the regurgitating Fox news business?

This is not a utopian dream: kcenergy.org/projectlivingproof.aspx

Reproduce this house on a grand scale, and that's what I'm talking about. The idea that this will happen on a grand scale in my lifetime is a little utopian, I admit, but the Germans and Chinese are going in this direction. We...the United States... will either lead or follow.

I know what I'm talking about. Keep reading your Thomas Sowell. You know what I think of him: Bland, vague, hyper-partisan, rarely correct.

Sequoia 1 year, 4 months ago

Sometimes the tallest tree can see a little farther than the rest:

See also: forbes.com/sites/terrywaghorn/2011/12/12/jeremy-rifkins-third-industrial-revolution/

evenkeel 1 year, 4 months ago

Some facts that seem important after the SOTU address from our President 1% (which is how much Obama gives to charity) :

According to the Financial Times “if the same number of people were seeking work today as in 2007, the jobless rate would be 11 percent.”

There are now fewer payroll jobs in America than there were in 2000 – 12 years ago.

The number of self-employed has dropped 2 million in just 6 years.

Regular gas cost $1.68/gallon in January 2009. Today: $3.39/gallon.

Food stamp use has increased 46 % since Obama took office, today about 1 in 7 Americans are on food stamps.

Median household income has dropped nearly 7 % in the last 6 years, taking inflation into account.

Nearly 20 % of males age 25-34 now live with their parents.

The average age of the American car is 10 years; in 1990, it was 6.5 years old.

The budget of the United States is $3.8 trillion while bringing in $2.1 trillion in revenue.

The Federal debt is 15.25 trillion, up over $4.5 trillion in 3 years.

Obama is on pace to borrow $6.2 trillion in just one term.

The debt is rising by $4.2 billion every day, $175 million per hour, $3 million per minute.

evenkeel 1 year, 4 months ago

Geez, that last note of mine coincided with about an increase of $15 million in debt.

Facts are expensive.

evenkeel 1 year, 4 months ago

newone, did you know that:

The top 1 percent earns about 17 percent of all income and pays about 37 percent of all federal income taxes.

So, what is "fair share"? Hmmm, newone?

Have you sent a nice little thank-you note to a rich person lately, thanking them for paying not only their share of the tax burden, but your share too? (If you can swallow your envy and resentment long enough, you really ought to. It is good manners.)

I hope you become rich some day newone. I am and I am LOVING IT! Though I am not (yet) in the 1%.

Hey, by the way, here is a suggestion: save yourself a stamp and just thank me for being rich and paying my fair share and then some.

Sequoia 1 year, 4 months ago

A little humility WOULD do us a lot of good, wouldn't it?

Gabrielle 1 year, 4 months ago

Good for you, evenkeel! I am pleased to hear this. I am on my way, too. ...smile....I will tell you, though, I must be in a 1%. OWS does NOT represent me!

Sequoia 1 year, 4 months ago

Actually, if you add up all taxes (income, payroll, property, sales, etc) and you consider how much money high-income people can sock away in tax-free savings, then it looks like most of us are paying a greater percentage of our income in taxes than you. So, if you think about total income as "strength" and total taxes paid as "effort," then YOU'RE the slacker.

So, you're welcome. And I accept your apology.

Sequoia 1 year, 4 months ago

401ks and whatnot, where you put the money in before taxes.

Sequoia 1 year, 4 months ago

I didn't say they pay less taxes. I said they pay a smaller percent of their total income as taxes.

spelchek 1 year, 4 months ago

"Declaring the American dream under siege..." -- Democrats owned congress (2007-2010) and the presidency since 2008. I can only assume he means that his party is to blame?

Lastly, I like rich people. I like extremely rich people even more. They pay more in taxes than those screaming for them to pay more ever will. Nothing like complaining you don't have enough of someone elses money.

sickandtired 1 year, 4 months ago

You know i don't remember the american dream being then way Obama describes it. In the American dream you grow up, get a good education, get a job, WORK HARD and earn yourself alot of money. THe thing is i don't every remember there being the part that goes -after you make your money you are suppose to give it to the government so they can give it to people that don't want to help themselves. Guess they forgot to teach us that in school when i was going.

JCLifer 1 year, 4 months ago

Convince the wealthy that Obama wants to protect the American Dream they have worked their butts off for?

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