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Barack Obama at Knox College: Reverse economic inequality Barack Obama at Knox College: Reverse economic inequality
(35 minutes later)
Reversing US economic inequality should be Washington's top priority, President Barack Obama has said, as an autumn budget battle with Congress looms.Reversing US economic inequality should be Washington's top priority, President Barack Obama has said, as an autumn budget battle with Congress looms.
He touted the slow but steady recovery in what was billed as a major economic speech at Knox College in Illinois.He touted the slow but steady recovery in what was billed as a major economic speech at Knox College in Illinois.
The White House has framed the speech as an effort to refocus a distracted Washington on bread and butter issues. And he criticised his Republican opponents at length, challenging them to develop their own economic plan.
But ahead of the president's remarks, opposition Republicans argued the country needed actions, not words. Republicans had attacked the president ahead of the speech, arguing the country needed actions, not words.
On Wednesday, Mr Obama returned to Knox College, where in 2005 in one of his first addresses as a newly elected US senator he discussed the economic forces that had depressed the US middle class. On Wednesday, Mr Obama returned to Knox College, where in 2005 he gave one of his first addresses as a newly elected US senator, discussing the economic forces that had depressed the US middle class.
"This growing inequality isn't just morally wrong - it's bad economics," Mr Obama, a Democrat, said on Wednesday. "Even though our businesses are creating new jobs and have broken record profits, nearly all the income gains of the past ten years have continued to flow to the top 1%," the Democratic president said on Wednesday.
"When middle-class families have less to spend, businesses have fewer customers. When wealth concentrates at the very top, it can inflate unstable bubbles that threaten the economy." "The average CEO has gotten a raise of nearly 40% since 2009, but the average American earns less than he or she did in 1999.
'Making things worse' "This growing inequality isn't just morally wrong - it's bad economics."
Mr Obama said he believed that technology and globalisation, the declining power of labour unions, and the rise in tax incentives for corporations and the wealthy had led to wage stagnation and the "decades-long erosion" of middle-class security. 'Middle class erosion'
Mr Obama put the wage stagnation and the "decades-long erosion" of middle-class security down to technological advances, globalisation, the declining power of labour unions, and the rise in tax incentives for corporations and the wealthy.
But the president said America had seen a stronger economic recovery than other nations, crediting his administration's efforts to rescue the US automobile industry, overhaul the healthcare system, and invest in renewable energy.But the president said America had seen a stronger economic recovery than other nations, crediting his administration's efforts to rescue the US automobile industry, overhaul the healthcare system, and invest in renewable energy.
Mr Obama added that the US now produced more natural gas than any other country and that the US would soon produce more oil than it imported.Mr Obama added that the US now produced more natural gas than any other country and that the US would soon produce more oil than it imported.
He appealed for greater public investment in infrastructure and education. To encourage the recovery and create jobs, Mr Obama called for greater public investment in infrastructure and education.
"If you think education is expensive, wait until you see how much ignorance costs in the 21st Century," Mr Obama said. He said the US had to adapt if it wanted to remain competitive in the global economy, quipping that many of America's bridges were old enough to collect public pensions.
And he said the US had to adapt if it wanted to remain competitive in the global economy, quipping that many of America's bridges were old enough to collect public pensions.
"The businesses of tomorrow won't locate near old roads and outdated ports," he said. "They'll relocate to places with high-speed internet, high-tech schools, systems that move air and auto traffic faster, not to mention get parents home to their kids faster.""The businesses of tomorrow won't locate near old roads and outdated ports," he said. "They'll relocate to places with high-speed internet, high-tech schools, systems that move air and auto traffic faster, not to mention get parents home to their kids faster."
The president said that failure to restore equality of opportunity would be a "betrayal of the American idea".The president said that failure to restore equality of opportunity would be a "betrayal of the American idea".
Pledging to reduce poverty, Mr Obama appealed for a raise of the national minimum wage.Pledging to reduce poverty, Mr Obama appealed for a raise of the national minimum wage.
The president also accused Republicans, who control the House of Representatives, of manufacturing an "endless parade of distractions, political posturing and phony scandals", rather than address big issues. The president devoted much of his address to criticism of the Republican Party, which controls the House of Representatives, holds enough votes in the Senate to block legislation, and has been stridently opposed to virtually every item on his agenda.
"Over the past couple of years in particular, Washington hasn't just ignored the problem; too often, it's made things worse," he said. Referring to the Republicans, he said Washington had manufactured an "endless parade of distractions, political posturing and phony scandals", rather than address big issues.
"Washington has taken its eye off the ball," he said. "And I am here to say this needs to stop."
'Sitting on sidelines''Sitting on sidelines'
He accused Republicans of attacking the budget with a "meat cleaver called the sequester", referring to a round of deep spending cuts that took effect earlier in the year. He accused Republicans of attacking the federal budget with a "meat cleaver called the sequester", referring to a round of deep spending cuts that took effect earlier in the year.
He said those cuts had "cost jobs, harmed growth, hurt our military, and gutted investments in American education and scientific and medical research".
Mr Obama said that by contrast, his own approach would "reduce our deficits with a scalpel - by cutting programs we don't need, fixing ones we do, and making government more efficient".Mr Obama said that by contrast, his own approach would "reduce our deficits with a scalpel - by cutting programs we don't need, fixing ones we do, and making government more efficient".
The president added Republicans in the House of Representatives had blocked or delayed key pieces of legislation, including immigration reform. He challenged his Republican opponents to lay out their plan for the economy, saying that "meaningless votes" to repeal his signature healthcare reform law of 2010 and proposals to drastically cut government spending did not amount to a real economic programme.
Mr Obama challenged his opponents to lay out their plan for the economy, saying that "meaningless votes" to repeal his signature healthcare reform law of 2010 and proposals to drastically cut government spending did not amount to a real economic plan.
"You can't just be against something, you've got to be for something," Mr Obama said."You can't just be against something, you've got to be for something," Mr Obama said.
Ahead of Mr Obama's speech in Illinois, meanwhile, Republicans launched their own offensive in advance of Mr Obama's speech in Illinois.Ahead of Mr Obama's speech in Illinois, meanwhile, Republicans launched their own offensive in advance of Mr Obama's speech in Illinois.
"If Washington Democrats were really serious about turning the economy around," said Senate Minority Leader Mitch McConnell, "they'd be working collaboratively with Republicans to do just that, instead of just sitting on the sidelines and waiting to take their cues from the endless political road-shows the president cooks up whenever he feels like changing the topic.""If Washington Democrats were really serious about turning the economy around," said Senate Minority Leader Mitch McConnell, "they'd be working collaboratively with Republicans to do just that, instead of just sitting on the sidelines and waiting to take their cues from the endless political road-shows the president cooks up whenever he feels like changing the topic."
And House Speaker John Boehner said: "Welcome to the conversation, Mr President. We've never left it."And House Speaker John Boehner said: "Welcome to the conversation, Mr President. We've never left it."
In recent days the Republican National Committee has promoted the Twitter hashtag #SpeechesDontHire.
Budget battle aheadBudget battle ahead
After speaking at Knox College, the president will travel to the University of Central Missouri in Warrensburg. On Thursday he is to speak in Jacksonville, Florida.After speaking at Knox College, the president will travel to the University of Central Missouri in Warrensburg. On Thursday he is to speak in Jacksonville, Florida.
The string of speeches is intended to highlight the economic recovery under his administration to the public and to build support for Mr Obama's agenda ahead of a budget deadline in the autumn.The string of speeches is intended to highlight the economic recovery under his administration to the public and to build support for Mr Obama's agenda ahead of a budget deadline in the autumn.
The US economy has slowly but steadily recovered since the depths of the recession in 2009-10. The unemployment rate stands at 7.6%, down from near 10% in January 2010.The US economy has slowly but steadily recovered since the depths of the recession in 2009-10. The unemployment rate stands at 7.6%, down from near 10% in January 2010.
On 1 October the current fiscal year expires and the White House is eager to avoid a showdown with Republicans over spending, analysts say.On 1 October the current fiscal year expires and the White House is eager to avoid a showdown with Republicans over spending, analysts say.
Around that time the US is also due to reach the limit of its authority to borrow money to finance the government's budget deficit.Around that time the US is also due to reach the limit of its authority to borrow money to finance the government's budget deficit.
Mr Obama's economic agenda was sidelined at the start of his second term, as he focused on issues such as gun control and immigration.