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THE PRESIDENT: Madam Speaker, Vice President Biden, members of Congress, distinguished
guests, and fellow Americans: Our Constitution declares that from time to
time, the President shall give to Congress information about the state of our union.
For 220 years, our leaders have fulfilled this duty. They've done so during periods
of prosperity and tranquility. And they've done so in the midst of war and depression;
at moments of great strife and great struggle. It's tempting to look back on these moments
and assume that our progress was inevitable -- that America was always destined to succeed.
But when the Union was turned back at Bull Run, and the Allies first landed at Omaha
Beach, victory was very much in doubt. When the market crashed on Black Tuesday, and civil
rights marchers were beaten on Bloody Sunday, the future was anything but certain. These
were the times that tested the courage of our convictions, and the strength of our union.
And despite all our divisions and disagreements, our hesitations and our fears, America prevailed
because we chose to move forward as one nation, as one people.
Again, we are tested. And again, we must answer history's call.
One year ago, I took office amid two wars, an economy rocked by a severe recession, a
financial system on the verge of collapse, and a government deeply in debt. Experts from
across the political spectrum warned that if we did not act, we might face a second
depression. So we acted -- immediately and aggressively. And one year later, the worst
of the storm has passed. But the devastation remains. One in 10 Americans
still cannot find work. Many businesses have shuttered. Home values have declined. Small
towns and rural communities have been hit especially hard. And for those who'd already
known poverty, life has become that much harder. This recession has also compounded the burdens
that America's families have been dealing with for decades -- the burden of working
harder and longer for less; of being unable to save enough to retire or help kids with
college. So I know the anxieties that are out there
right now. They're not new. These struggles are the reason I ran for President. These
struggles are what I've witnessed for years in places like Elkhart, Indiana; Galesburg,
Illinois. I hear about them in the letters that I read each night. The toughest to read
are those written by children -- asking why they have to move from their home, asking
when their mom or dad will be able to go back to work.
For these Americans and so many others, change has not come fast enough. Some are frustrated;
some are angry. They don't understand why it seems like bad behavior on Wall Street
is rewarded, but hard work on Main Street isn't; or why Washington has been unable or
unwilling to solve any of our problems. They're tired of the partisanship and the shouting
and the pettiness. They know we can't afford it. Not now.
So we face big and difficult challenges. And what the American people hope -- what they
deserve -- is for all of us, Democrats and Republicans, to work through our differences;
to overcome the numbing weight of our politics. For while the people who sent us here have
different backgrounds, different stories, different beliefs, the anxieties they face
are the same. The aspirations they hold are shared: a job that pays the bills; a chance
to get ahead; most of all, the ability to give their children a better life.
You know what else they share? They share a stubborn resilience in the face of adversity.
After one of the most difficult years in our history, they remain busy building cars and
teaching kids, starting businesses and going back to school. They're coaching Little League
and helping their neighbors. One woman wrote to me and said, "We are strained but hopeful,
struggling but encouraged." It's because of this spirit -- this great
decency and great strength -- that I have never been more hopeful about America's future
than I am tonight. (Applause.) Despite our hardships, our union is strong. We do not
give up. We do not quit. We do not allow fear or division to break our spirit. In this new
decade, it's time the American people get a government that matches their decency; that
embodies their strength. (Applause.) _And tonight, tonight I'd like to talk about how
together we can deliver on that promise. It begins with our economy.
Our most urgent task upon taking office was to shore up the same banks that helped cause
this crisis. It was not easy to do. And if there's one thing that has unified Democrats
and Republicans, and everybody in between, it's that we all hated the bank bailout. I
hated it -- (applause.) I hated it. You hated it. It was about as popular as a root canal.
(Laughter.) But when I ran for President, I promised I
wouldn't just do what was popular -- I would do what was necessary. And if we had allowed
the meltdown of the financial system, unemployment might be double what it is today. More businesses
would certainly have closed. More homes would have surely been lost.
So I supported the last administration's efforts to create the financial rescue program. And
when we took that program over, we made it more transparent and more accountable. And
as a result, the markets are now stabilized, and we've recovered most of the money we spent
on the banks. (Applause.) Most but not all. To recover the rest, I've proposed a fee on
the biggest banks. (Applause.) Now,
I know Wall Street isn't keen on this idea. But if these firms can afford to hand out
big bonuses again, they can afford a modest fee to pay back the taxpayers who rescued
them in their time of need. (Applause.) Now, as we stabilized the financial system,
we also took steps to get our economy growing again, save as many jobs as possible, and
help Americans who had become unemployed. That's why we extended or increased unemployment
benefits for more than 18 million Americans; made health insurance 65 percent cheaper for
families who get their coverage through COBRA; and passed 25 different tax cuts.
Now, let me repeat: We cut taxes. We cut taxes for 95 percent of working families. (Applause.)
We cut taxes for small businesses. We cut taxes for first-time homebuyers. We cut taxes
for parents trying to care for their children. We cut taxes for 8 million Americans paying
for college. (Applause.) I thought I'd get some applause on that one.
(Laughter and applause.) As a result, millions of Americans had more
to spend on gas and food and other necessities, all of which helped businesses keep more workers.
And we haven't raised income taxes by a single dime on a single person. Not a single dime.
(Applause.) Because of the steps we took, there are about
two million Americans working right now who would otherwise be unemployed. (Applause.)
Two hundred thousand work in construction and clean energy; 300,000 are teachers and
other education workers. Tens of thousands are cops, firefighters, correctional officers,
first responders. (Applause.) And we're on track to add another one and a half million
jobs to this total by the end of the year. The plan that has made all of this possible,
from the tax cuts to the jobs, is the Recovery Act. (Applause.) That's right -- the Recovery
Act, also known as the stimulus bill. (Applause.) Economists on the left and the right say this
bill has helped save jobs and avert disaster. But you don't have to take their word for
it. Talk to the small business in Phoenix that will triple its workforce because of
the Recovery Act. Talk to the window manufacturer in Philadelphia who said he used to be skeptical
about the Recovery Act, until he had to add two more work shifts just because of the business
it created. Talk to the single teacher raising two kids who was told by her principal in
the last week of school that because of the Recovery Act, she wouldn't be laid off after
all. There are stories like this all across America.
And after two years of recession, the economy is growing again. Retirement funds have started
to gain back some of their value. Businesses are beginning to invest again, and slowly
some are starting to hire again. But I realize that for every success story,
there are other stories, of men and women who wake up with the anguish of not knowing
where their next paycheck will come from; who send out resumes week after week and hear
nothing in response. That is why jobs must be our number-one focus in 2010, and that's
why I'm calling for a new jobs bill tonight. (Applause.)
Now, the true engine of job creation in this country will always be America's businesses.
(Applause.) But government can create the conditions necessary for businesses to expand
and hire more workers. We should start where most new jobs do --
in small businesses, companies that begin when -- (applause) -- companies that begin
when an entrepreneur -- when an entrepreneur takes a chance on a dream, or a worker decides
it's time she became her own boss. Through sheer grit and determination, these companies
have weathered the recession and they're ready to grow. But when you talk to small businessowners
in places like Allentown, Pennsylvania, or Elyria, Ohio, you find out that even though
banks on Wall Street are lending again, they're mostly lending to bigger companies. Financing
remains difficult for small businessowners across the country, even those that are making
a profit. So tonight, I'm proposing that we take $30
billion of the money Wall Street banks have repaid and use it to help community banks
give small businesses the credit they need to stay afloat. (Applause.) I'm also proposing
a new small business tax credit _-- one that will go to over one million small businesses
who hire new workers or raise wages. (Applause.) While we're at it, let's also eliminate all
capital gains taxes on small business investment, and provide a tax incentive for all large
businesses and all small businesses to invest in new plants and equipment. (Applause.)
Next, we can put Americans to work today building the infrastructure of tomorrow. (Applause.)
From the first railroads to the Interstate Highway System, our nation has always been
built to compete. There's no reason Europe or China should have the fastest trains, or
the new factories that manufacture clean energy products.
Tomorrow, I'll visit Tampa, Florida, where workers will soon break ground on a new high-speed
railroad funded by the Recovery Act. (Applause.) There are projects like that all across this
country that will create jobs and help move our nation's goods, services, and information.
(Applause.) We should put more Americans to work building
clean energy facilities -- (applause) -- and give rebates to Americans who make their
homes more energy-efficient, which supports clean energy jobs. (Applause.) And to encourage
these and other businesses to stay within our borders, it is time to finally slash the
tax breaks for companies that ship our jobs overseas, and give those tax breaks to companies
that create jobs right here in the United States of America. (Applause.)
Now, the House has passed a jobs bill that includes some of these steps. (Applause.)
As the first order of business this year, I urge the Senate to do the same, and I know
they will. (Applause.) They will. (Applause.) People are out of work. They're hurting. They
need our help. And I want a jobs bill on my desk without delay. (Applause.)
But the truth is, these steps won't make up for the seven million jobs that we've lost
over the last two years. The only way to move to full employment is to lay a new foundation
for long-term economic growth, and finally address the problems that America's families
have confronted for years. We can't afford another so-called economic
"expansion" like the one from the last decade -- what some call the "lost decade" -- where
jobs grew more slowly than during any prior expansion; where the income of the average
American household declined while the cost of health care and tuition reached record
highs; where prosperity was built on a housing bubble and financial speculation.
From the day I took office, I've been told that addressing our larger challenges is too
ambitious; such an effort would be too contentious. I've been told that our political system is
too gridlocked, and that we should just put things on hold for a while.
For those who make these claims, I have one simple question: How long should we wait?
How long should America put its future on hold? (Applause.)
You see, Washington has been telling us to wait for decades, even as the problems have
grown worse. Meanwhile, China is not waiting to revamp its economy. Germany is not waiting.
India is not waiting. These nations -- they're not standing still. These nations aren't playing
for second place. They're putting more emphasis on math and science. They're rebuilding their
infrastructure. They're making serious investments in clean energy because they want those jobs.
Well, I do not accept second place for the United States of America. (Applause.)
As hard as it may be, as uncomfortable and contentious as the debates may become, it's
time to get serious about fixing the problems that are hampering our growth.
Now, one place to start is serious financial reform. Look, I am not interested in punishing
banks. I'm interested in protecting our economy. A strong, healthy financial market makes it
possible for businesses to access credit and create new jobs. It channels the savings of
families into investments that raise incomes. But that can only happen if we guard against
the same recklessness that nearly brought down our entire economy.
We need to make sure consumers and middle-class families have the information they need to
make financial decisions. (Applause.) We can't allow financial institutions, including those
that take your deposits, to take risks that threaten the whole economy.
Now, the House has already passed financial reform with many of these changes. (Applause.)
And the lobbyists are trying to kill it. But we cannot let them win this fight. (Applause.)
And if the bill that ends up on my desk does not meet the test of real reform, I will send
it back until we get it right. We've got to get it right. (Applause.)
Next, we need to encourage American innovation. Last year, we made the largest investment
in basic research funding in history -- (applause) -- an investment that could lead to the world's
cheapest solar cells or treatment that kills cancer cells but leaves healthy ones untouched.
And no area is more ripe for such innovation than energy. You can see the results of last
year's investments in clean energy -- in the North Carolina company that will create 1,200
jobs nationwide helping to make advanced batteries; or in the California business that will put
a thousand people to work making solar panels. But to create more of these clean energy jobs,
we need more production, more efficiency, more incentives. And that means building a
new generation of safe, clean nuclear power plants in this country. (Applause.) It
means making tough decisions about opening new offshore areas for oil and gas development.
(Applause.) It means continued investment in advanced biofuels and clean coal technologies.
(Applause.) And, yes, it means passing a comprehensive energy and climate bill with incentives that
will finally make clean energy the profitable kind of energy in America. (Applause.)
I am grateful to the House for passing such a bill last year. (Applause.) And this year
I'm eager to help advance the bipartisan effort in the Senate. (Applause.)
I know there have been questions about whether we can afford such changes in a tough economy.
I know that there are those who disagree with the overwhelming scientific evidence on climate
change. But here's the thing -- even if you doubt the evidence, providing incentives for
energy-efficiency and clean energy are the right thing to do for our future -- because
the nation that leads the clean energy economy will be the nation that leads the global economy.
And America must be that nation. (Applause.) Third, we need to export more of our goods.
(Applause.) Because the more products we make and sell to other countries, the more jobs
we support right here in America. (Applause.) So tonight, we set a new goal: We will double
our exports over the next five years, an increase that will support two million jobs in America.
(Applause.) To help meet this goal, we're launching a National Export Initiative that
will help farmers and small businesses increase their exports, and reform export controls
consistent with national security. (Applause.) We have to seek new markets aggressively,
just as our competitors are. If America sits on the sidelines while other nations sign
trade deals, we will lose the chance to create jobs on our shores. (Applause.) But realizing
those benefits also means enforcing those agreements so our trading partners play by
the rules. (Applause.) And that's why we'll continue to shape a Doha trade agreement that
opens global markets, and why we will strengthen our trade relations in Asia and with key partners
like South Korea and Panama and Colombia. (Applause.)
Fourth, we need to invest in the skills and education of our people. (Applause.)
Now, this year, we've broken through the stalemate between left and right by launching a national
competition to improve our schools. And the idea here is simple: Instead of rewarding
failure, we only reward success. Instead of funding the status quo, we only invest in
reform -- reform that raises student achievement; inspires students to excel in math and science;
and turns around failing schools that steal the future of too many young Americans, from
rural communities to the inner city. In the 21st century, the best anti-poverty program
around is a world-class education. (Applause.) And in this country, the success of our children
cannot depend more on where they live than on their potential.
When we renew the Elementary and Secondary Education Act, we will work with Congress
to expand these reforms to all 50 states. Still, in this economy, a high school diploma
no longer guarantees a good job. That's why I urge the Senate to follow the House and
pass a bill that will revitalize our community colleges, which are a career pathway to the
children of so many working families. (Applause.) To make college more affordable, this bill
will finally end the unwarranted taxpayer subsidies that go to banks for student loans.
(Applause.) Instead, let's take that money and give families a $10,000 tax credit for
four years of college and increase Pell Grants. (Applause.) And let's tell another one million
students that when they graduate, they will be required to pay only 10 percent of their
income on student loans, and all of their debt will be forgiven after 20 years -- and
forgiven after 10 years if they choose a career in public service, because in the United States
of America, no one should go broke because they chose to go to college. (Applause.)
And by the way, it's time for colleges and universities to get serious about cutting
their own costs -- (applause) -- because they, too, have a responsibility to help solve this
problem. Now, the price of college tuition is just
one of the burdens facing the middle class. That's why last year I asked Vice President
Biden to chair a task force on middle-class families. That's why we're nearly doubling
the child care tax credit, and making it easier to save for retirement by giving access to
every worker a retirement account and expanding the tax credit for those who start a nest
egg. That's why we're working to lift the value of a family's single largest investment
-- their home. The steps we took last year to shore up the housing market have allowed
millions of Americans to take out new loans and save an average of $1,500 on mortgage
payments. This year, we will step up refinancing so
that homeowners can move into more affordable mortgages. (Applause.) And it is precisely
to relieve the burden on middle-class families that we still need health insurance reform.
(Applause.) Yes, we do. (Applause.) Now, let's clear a few things up. (Laughter.)
I didn't choose to tackle this issue to get some legislative victory under my belt. And
by now it should be fairly obvious that I didn't take on health care because it was
good politics. (Laughter.) I took on health care because of the stories I've heard from
Americans with preexisting conditions whose lives depend on getting coverage; patients
who've been denied coverage; families -- even those with insurance -- who are just
one illness away from financial ruin. After nearly a century of trying -- Democratic
administrations, Republican administrations -- we are closer than ever to bringing more
security to the lives of so many Americans. The approach we've taken would protect every
American from the worst practices of the insurance industry. It would give small businesses and
uninsured Americans a chance to choose an affordable health care plan in a competitive
market. It would require every insurance plan to cover preventive care.
And by the way, I want to acknowledge our First Lady, Michelle Obama, who this year
is creating a national movement to tackle the epidemic of childhood obesity and make
kids healthier. (Applause.) Thank you. She gets embarrassed. (Laughter.)
Our approach would preserve the right of Americans who have insurance to keep their doctor and
their plan. It would reduce costs and premiums for millions of families and businesses. And
according to the Congressional Budget Office -- the independent organization that both
parties have cited as the official scorekeeper for Congress -- our approach would bring down
the deficit by as much as $1 trillion over the next two decades. (Applause.)
Still, this is a complex issue, and the longer it was debated, the more skeptical people
became. I take my share of the blame for not explaining it more clearly to the American
people. And I know that with all the lobbying and horse-trading, the process left most Americans
wondering, "What's in it for me?" But I also know this problem is not going
away. By the time I'm finished speaking tonight, more Americans will have lost their health
insurance. Millions will lose it this year. Our deficit will grow. Premiums will go up.
Patients will be denied the care they need. Small business owners will continue to drop
coverage altogether. I will not walk away from these Americans, and neither should the
people in this chamber. (Applause.) So, as temperatures cool, I want everyone
to take another look at the plan we've proposed. There's a reason why many doctors, nurses,
and health care experts who know our system best consider this approach a vast improvement
over the status quo. But if anyone from either party has a better approach that will bring
down premiums, bring down the deficit, cover the uninsured, strengthen Medicare for seniors,
and stop insurance company abuses, let me know. (Applause.) Let me know. Let me know.
(Applause.) I'm eager to see it. Here's what I ask Congress, though: Don't
walk away from reform. Not now. Not when we are so close. Let us find a way to come together
and finish the job for the American people. (Applause.) Let's get it done. Let's get it
done. (Applause.) Now, even as health care reform would reduce
our deficit, it's not enough to dig us out of a massive fiscal hole in which we find
ourselves. It's a challenge that makes all others that much harder to solve, and one
that's been subject to a lot of political posturing. So let me start the discussion
of government spending by setting the record straight.
At the beginning of the last decade, the year 2000, America had a budget surplus of over
$200 billion. (Applause.) By the time I took office, we had a one-year deficit of over
$1 trillion and projected deficits of $8 trillion over the next decade. Most of this was the
result of not paying for two wars, two tax cuts, and an expensive prescription drug program.
On top of that, the effects of the recession put a $3 trillion hole in our budget. All
this was before I walked in the door. (Laughter and applause.)
Now -- just stating the facts. Now, if we had taken office in ordinary times, I would
have liked nothing more than to start bringing down the deficit. But we took office amid
a crisis. And our efforts to prevent a second depression have added another $1 trillion
to our national debt. That, too, is a fact. I'm absolutely convinced that was the right
thing to do. But families across the country are tightening their belts and making tough
decisions. The federal government should do the same. (Applause.) So tonight, I'm proposing
specific steps to pay for the trillion dollars that it took to rescue the economy last year.
Starting in 2011, we are prepared to freeze government spending for three years. (Applause.)
Spending related to our national security, Medicare, Medicaid, and Social Security will
not be affected. But all other discretionary government programs will. Like any cash-strapped
family, we will work within a budget to invest in what we need and sacrifice what we don't.
And if I have to enforce this discipline by veto, I will. (Applause.)
We will continue to go through the budget, line by line, page by page, to eliminate programs
that we can't afford and don't work. We've already identified $20 billion in savings
for next year. To help working families, we'll extend our middle-class tax cuts. But at a
time of record deficits, we will not continue tax cuts for oil companies, for investment
fund managers, and for those making over $250,000 a year. We just can't afford it. (Applause.)
Now, even after paying for what we spent on my watch, we'll still face the massive deficit
we had when I took office. More importantly, the cost of Medicare, Medicaid, and Social
Security will continue to skyrocket. That's why I've called for a bipartisan fiscal commission,
modeled on a proposal by Republican Judd Gregg and Democrat Kent Conrad. (Applause.) This
can't be one of those Washington gimmicks that lets us pretend we solved a problem.
The commission will have to provide a specific set of solutions by a certain deadline.
Now, yesterday, the Senate blocked a bill that would have created this commission. So
I'll issue an executive order that will allow us to go forward, because I refuse to pass
this problem on to another generation of Americans. (Applause.) And when the vote comes tomorrow,
the Senate should restore the pay-as-you-go law that was a big reason for why we had record
surpluses in the 1990s. (Applause.) _ _Now, I know that some in my own party will argue
that we can't address the deficit or freeze government spending when so many are still
hurting. And I agree -- which is why this freeze won't take effect until next year
-- (laughter) -- when the economy is stronger. That's how budgeting works. (Laughter and
applause.) But understand -- understand if we don't take meaningful steps to rein in
our debt, it could damage our markets, increase the cost of borrowing, and jeopardize our
recovery -- all of which would have an even worse effect on our job growth and family
incomes. From some on the right, I expect we'll hear
a different argument -- that if we just make fewer investments in our people, extend tax
cuts including those for the wealthier Americans, eliminate more regulations, maintain the status
quo on health care, our deficits will go away. The problem is that's what we did for eight
years. (Applause.) That's what helped us into this crisis. It's what helped lead to these
deficits. We can't do it again. Rather than fight the same tired battles that
have dominated Washington for decades, it's time to try something new. Let's invest in
our people without leaving them a mountain of debt. Let's meet our responsibility to
the citizens who sent us here. Let's try common sense. (Laughter.) A novel concept.
To do that, we have to recognize that we face more than a deficit of dollars right now.
We face a deficit of trust -- deep and corrosive doubts about how Washington works that have
been growing for years. To close that credibility gap we have to take action on both ends of
Pennsylvania Avenue -- to end the outsized influence of lobbyists; to do our work openly;
to give our people the government they deserve. (Applause.)
That's what I came to Washington to do. That's why -- for the first time in history -- my
administration posts on our White House visitors online. That's why we've excluded lobbyists
from policymaking jobs, or seats on federal boards and commissions.
But we can't stop there. It's time to require lobbyists to disclose each contact they make
on behalf of a client with my administration or with Congress. It's time to put strict
limits on the contributions that lobbyists give to candidates for federal office.
With all due deference to separation of powers, last week the Supreme Court reversed a century
of law that I believe will open the floodgates for special interests -- including foreign
corporations -- to spend without limit in our elections. (Applause.) I don't think American
elections should be bankrolled by America's most powerful interests, or worse, by foreign
entities. (Applause.) They should be decided by the American people. And I'd urge Democrats
and Republicans to pass a bill that helps to correct some of these problems.
I'm also calling on Congress to continue down the path of earmark reform. Applause.) Democrats
and Republicans. (Applause.)
Democrats and Republicans. You've trimmed some of this spending, you've embraced some
meaningful change. But restoring the public trust demands more. For example, some members
of Congress post some earmark requests online. (Applause.) Tonight, I'm calling on Congress
to publish all earmark requests on a single Web site before there's a vote, so that the
American people can see how their money is being spent. (Applause.)
Of course, none of these reforms will even happen if we don't also reform how we work
with one another. Now, I'm not na•ve. I never thought that the mere fact of my election
would usher in peace and harmony -- (laughter) -- and some post-partisan era. I knew that
both parties have fed divisions that are deeply entrenched. And on some issues, there are
simply philosophical differences that will always cause us to part ways. These disagreements,
about the role of government in our lives, about our national priorities and our national
security, they've been taking place for over 200 years. They're the very essence of our
democracy. But what frustrates the American people is
a Washington where every day is Election Day. We can't wage a perpetual campaign where the
only goal is to see who can get the most embarrassing headlines about the other side -- a belief
that if you lose, I win. Neither party should delay or obstruct every single bill just because
they can. The confirmation of -- (applause) -- I'm speaking to both parties now. The
confirmation of well-qualified public servants shouldn't be held hostage to the pet projects
or grudges of a few individual senators. (Applause.) Washington may think that saying anything
about the other side, no matter how false, no matter how malicious, is just part of the
game. But it's precisely such politics that has stopped either party from helping the
American people. Worse yet, it's sowing further division among our citizens, further distrust
in our government. So, no, I will not give up on trying to change
the tone of our politics. I know it's an election year. And after last week, it's clear that
campaign fever has come even earlier than usual. But we still need to govern.
To Democrats, I would remind you that we still have the largest majority in decades, and
the people expect us to solve problems, not run for the hills. (Applause.) And if the
Republican leadership is going to insist that 60 votes in the Senate are required to do
any business at all in this town -- a supermajority -- then the responsibility to govern is now
yours as well. (Applause.) Just saying no to everything may be good short-term politics,
but it's not leadership. We were sent here to serve our citizens, not our ambitions.
(Applause.) So let's show the American people that we can do it together. (Applause.)
This week, I'll be addressing a meeting of the House Republicans. I'd like to begin monthly
meetings with both Democratic and Republican leadership. I know you can't wait. (Laughter.)
Throughout our history, no issue has united this country more than our security. Sadly,
some of the unity we felt after 9/11 has dissipated. We can argue all we want about who's to blame
for this, but I'm not interested in re-litigating the past. I know that all of us love this
country. All of us are committed to its defense. So let's put aside the schoolyard taunts about
who's tough. Let's reject the false choice between protecting our people and upholding
our values. Let's leave behind the fear and division, and do what it takes to defend our
nation and forge a more hopeful future -- for America and for the world. (Applause.)
That's the work we began last year. Since the day I took office, we've renewed our focus
on the terrorists who threaten our nation. We've made substantial investments in our
homeland security and disrupted plots that threatened to take American lives. We are
filling unacceptable gaps revealed by the failed Christmas attack, with better airline
security and swifter action on our intelligence. We've prohibited torture and strengthened
partnerships from the Pacific to South Asia to the Arabian Peninsula. And in the last
year, hundreds of al Qaeda's fighters and affiliates, including many senior leaders,
have been captured or killed -- far more than in 2008.
And in Afghanistan, we're increasing our troops and training Afghan security forces so they
can begin to take the lead in July of 2011, and our troops can begin to come home. (Applause.)
We will reward good governance, work to reduce corruption, and support the rights of all
Afghans -- men and women alike. (Applause.) We're joined by allies and partners who have
increased their own commitments, and who will come together tomorrow in London to reaffirm
our common purpose. There will be difficult days ahead. But I am absolutely confident
we will succeed. As we take the fight to al Qaeda, we are responsibly
leaving Iraq to its people. As a candidate, I promised that I would end this war, and
that is what I am doing as President. We will have all of our combat troops out of Iraq
by the end of this August. (Applause.) We will support the Iraqi government -- we will
support the Iraqi government as they hold elections, and we will continue to partner
with the Iraqi people to promote regional peace and prosperity. But make no mistake:
This war is ending, and all of our troops are coming home. (Applause.)
Tonight, all of our men and women in uniform -- in Iraq, in Afghanistan, and around the
world -- they have to know that we -- that they have our respect, our gratitude, our
full support. And just as they must have the resources they need in war, we all have a
responsibility to support them when they come home. (Applause.) That's why we made the largest
increase in investments for veterans in decades -- last year. (Applause.) That's why we're
building a 21st century VA. And that's why Michelle has joined with Jill Biden to forge
a national commitment to support military families. (Applause.)
Now, even as we prosecute two wars, we're also confronting perhaps the greatest danger
to the American people -- the threat of nuclear weapons. I've embraced the vision of John
F. Kennedy and Ronald Reagan through a strategy that reverses the spread of these weapons
and seeks a world without them. To reduce our stockpiles and launchers, while ensuring
our deterrent, the United States and Russia are completing negotiations on the farthest-reaching
arms control treaty in nearly two decades. (Applause.) And at April's Nuclear Security
Summit, we will bring 44 nations together here in Washington, D.C. behind a clear goal:
securing all vulnerable nuclear materials around the world in four years, so that they
never fall into the hands of terrorists. (Applause.) Now, these diplomatic efforts have also strengthened
our hand in dealing with those nations that insist on violating international agreements
in pursuit of nuclear weapons. That's why North Korea now faces increased isolation,
and stronger sanctions -- sanctions that are being vigorously enforced. That's why the
international community is more united, and the Islamic Republic of Iran is more isolated.
And as Iran's leaders continue to ignore their obligations, there should be no doubt: They,
too, will face growing consequences. That is a promise. (Applause.)
That's the leadership that we are providing -- engagement that advances the common security
and prosperity of all people. We're working through the G20 to sustain a lasting global
recovery. We're working with Muslim communities around the world to promote science and education
and innovation. We have gone from a bystander to a leader in the fight against climate change.
We're helping developing countries to feed themselves, and continuing the fight against
***/AIDS. And we are launching a new initiative that will give us the capacity to respond
faster and more effectively to bioterrorism or an infectious disease -- a plan that will
counter threats at home and strengthen public health abroad.
As we have for over 60 years, America takes these actions because our destiny is connected
to those beyond our shores. But we also do it because it is right. That's why, as we
meet here tonight, over 10,000 Americans are working with many nations to help the people
of Haiti recover and rebuild. (Applause.) That's why we stand with the girl who yearns
to go to school in Afghanistan; why we support the human rights of the women marching through
the streets of Iran; why we advocate for the young man denied a job by corruption in Guinea.
For America must always stand on the side of freedom and human dignity. (Applause.)
Always. (Applause.) Abroad, America's greatest source of strength
has always been our ideals. The same is true at home. We find unity in our incredible diversity,
drawing on the promise enshrined in our Constitution: the notion that we're all created equal; that
no matter who you are or what you look like, if you abide by the law you should be protected
by it; if you adhere to our common values you should be treated no different than anyone
else. We must continually renew this promise. My
administration has a Civil Rights Division that is once again prosecuting civil rights
violations and employment discrimination. (Applause.) We finally strengthened our laws
to protect against crimes driven by hate. (Applause.) This year, I will work with Congress
and our military to finally repeal the law that denies gay Americans the right to serve
the country they love because of who they are. (Applause.) It's the right thing to do.
(Applause.) We're going to crack down on violations of
equal pay laws -- so that women get equal pay for an equal day's work. (Applause.) And
we should continue the work of fixing our broken immigration system -- to secure our
borders and enforce our laws, and ensure that everyone who plays by the rules can contribute
to our economy and enrich our nation. (Applause.) In the end, it's our ideals, our values that
built America -- values that allowed us to forge a nation made up of immigrants from
every corner of the globe; values that drive our citizens still. Every day, Americans meet
their responsibilities to their families and their employers. Time and again, they lend
a hand to their neighbors and give back to their country. They take pride in their labor,
and are generous in spirit. These aren't Republican values or Democratic values that they're living
by; business values or labor values. They're American values.
Unfortunately, too many of our citizens have lost faith that our biggest institutions
-- our corporations, our media, and, yes, our government -- still reflect these same
values. Each of these institutions are full of honorable men and women doing important
work that helps our country prosper. But each time a CEO rewards himself for failure, or
a banker puts the rest of us at risk for his own selfish gain, people's doubts grow. Each
time lobbyists game the system or politicians tear each other down instead of lifting this
country up, we lose faith. The more that TV pundits reduce serious debates to silly arguments,
big issues into sound bites, our citizens turn away.
No wonder there's so much cynicism out there. No wonder there's so much disappointment.
I campaigned on the promise of change -- change we can believe in, the slogan went.
And right now, I know there are many Americans who aren't sure if they still believe we can
change -- or that I can deliver it. But remember this -- I never suggested that
change would be easy, or that I could do it alone. Democracy in a nation of 300 million
people can be noisy and messy and complicated. And when you try to do big things and make
big changes, it stirs passions and controversy. That's just how it is.
Those of us in public office can respond to this reality by playing it safe and avoid
telling hard truths and pointing fingers. We can do what's necessary to keep our poll
numbers high, and get through the next election instead of doing what's best for the next
generation. But I also know this: If people had made that
decision 50 years ago, or 100 years ago, or 200 years ago, we wouldn't be here tonight.
The only reason we are here is because generations of Americans were unafraid to do what was
hard; to do what was needed even when success was uncertain; to do what it took to keep
the dream of this nation alive for their children and their grandchildren.
Our administration has had some political setbacks this year, and some of them were
deserved. But I wake up every day knowing that they are nothing compared to the setbacks
that families all across this country have faced this year. And what keeps me going
-- what keeps me fighting -- is that despite all these setbacks, that spirit of determination
and optimism, that fundamental decency that has always been at the core of the American
people, that lives on. It lives on in the struggling small business
owner who wrote to me of his company, "None of us," he said, "...are willing to consider,
even slightly, that we might fail." It lives on in the woman who said that even
though she and her neighbors have felt the pain of recession, "We are strong. We are
resilient. We are American." It lives on in the 8-year-old boy in Louisiana,
who just sent me his allowance and asked if I would give it to the people of Haiti.
And it lives on in all the Americans who've dropped everything to go someplace they've
never been and pull people they've never known from the rubble, prompting chants of "U.S.A.!
U.S.A.! U.S.A!" when another life was saved. The spirit that has sustained this nation
for more than two centuries lives on in you, its people. We have finished a difficult year.
We have come through a difficult decade. But a new year has come. A new decade stretches
before us. We don't quit. I don't quit. (Applause.) Let's seize this moment -- to start anew,
to carry the dream forward, and to strengthen our union once more. (Applause.)
Thank you. God bless you. And God bless the United States of America. (Applause.)