President Barack Obama struck a somber tone in his inaugural State of the Union address tonight and called for Democrats and Republicans to work together to start addressing the very real problems that America is facing.
In a wide ranging speech that covered everything from terrorism to bank bailouts to the environment, Obama began with historical references to D-Day, the 1929 stock market crash and the fight for civil rights. But he quickly moved to bashing the highly unpopular bank bailout, saying it’s the one thing that can unify people from all political stripes.
“I hated it. You hated it. It was about as popular as a root canal,” he said to applause. He defended the bailout, saying it was necessary to shore up the banks lest our entire economy grind to a screeching halt.
Much of the speech highlighted the dismal economy. The president highlighted the concerns of Americans who are out of work, underemployed or lack insurance.
One year later, Obama said, the storm has passed, but “for these americans and so many others change has not come fast enough. Wages are declining as the costs of college tuition and health care are skyrocketing.
“I know the anxieties that are out there right now,” the president added, noting that jobs will be his No. 1 priority in 2010. “They’re not new.”
Obama defended the $787 billion stimulus bill, saying economists agree that even more jobs would have been lost if it hadn’t been passed. He called for more investment in transportation and green energy jobs so that America could keep pace in the technology race with Germany, India and China. The true engine of job creation will be small businesses, but government can help create the conditions necessary for these businesses to expand. He proposed eliminating capital gains taxes on small businesses and taking $30 billion from repaid bailout funds and give it to local banks to loan to small businesses.
The president also advocated for a variety of reforms, including financial reform, health care reform and the repeal of Don’t Ask Don’t Tell, the regulation that allows gay people to serve in the military so long as they don’t reveal their sexual orientation.
Obama also announced that all combat troops would be would be withdrawn from Iraq by this August. “This war is ending and all of our troops are coming home.”
There was much speculation about how the president would address health care reform, which has languished after Republican Scott Brown won a special Senate election in Massachusetts. Brown, who will be the 41st Republican senatory, has vowed to help the GOP sustain a filibuster of the current health reform bill.
Obama said that Congress has gotten too close to achieving health care reform to give up now. The millions of Americans that will lose their health care this year — and the millions who already go without — are depending on reform.
“I will not walk away from these Americans and neither should the people in this chamber.”
Obama called for fiscal discipline, reiterating his intent to freeze non-security related discretionary spending over the next three years. He asked Congress to stop earmarks and threatened to use his veto power to stop wasteful spending. He urged that Congress re-institute pay-as-you go budget rules.
