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Obama Focuses on Economy, Vowing to Help Middle Class Obama Focuses on Economy, Vowing to Help Middle Class
(about 5 hours later)
GALESBURG, Ill. — President Obama tried to move past months of debate over guns, surveillance and scandal on Wednesday and reorient his administration behind a program to lift a middling economy and help middle-class Americans who are stuck with stagnant incomes and shrinking horizons. WARRENSBURG, Mo. — President Obama tried to move past months of debate over guns, surveillance and scandal on Wednesday and reorient his administration behind a program to lift a middling economy and help middle-class Americans who are stuck with stagnant incomes and shrinking horizons.
Returning to the site of his first major economic speech as a young senator eight years ago, Mr. Obama lamented that typical Americans had been left behind by globalization, Wall Street irresponsibility and Washington policies, while the richest Americans had accumulated more wealth. He declared it “my highest priority” to reverse those trends, while accusing other politicians of not only ignoring the problem but also making it worse. In speeches in two small college towns in the Midwest, Mr. Obama lamented that typical Americans had been left behind by globalization, Wall Street irresponsibility and Washington policies, while the richest Americans had accumulated more wealth. He declared it “my highest priority” to reverse those trends, while accusing other politicians of not only ignoring the problem but also making it worse.
“With this endless parade of distractions and political posturing and phony scandals, Washington’s taken its eye off the ball,” Mr. Obama told an audience at Knox College. “And I am here to say this needs to stop. This needs to stop. This moment does not require short-term thinking. It does not require having the same old stale debates. Our focus has to be on the basic economic issues that matter most to you — the people we represent.” “With this endless parade of distractions and political posturing and phony scandals, Washington’s taken its eye off the ball,” Mr. Obama told an audience at Knox College, in Galesburg, Ill., the site of his first major economic speech as a young senator eight years ago. “And I am here to say this needs to stop. This needs to stop. This moment does not require short-term thinking. It does not require having the same old stale debates. Our focus has to be on the basic economic issues that matter most to you — the people we represent.”
The hourlong speech, one of the longest of his presidency, resembled a State of the Union address at times. The president mainly offered revived elements of his largely stalled economic program, like developing new energy, rebuilding manufacturing, spending more on roads, bridges and ports, expanding preschool to every 4-year-old in the country and raising the minimum wage. The hourlong speech in Galesburg, his first speech of the day and one of the longest of his presidency, at times resembled a State of the Union address. The president mainly offered revived elements of his largely stalled economic program, like developing new energy, rebuilding manufacturing, spending more on roads, bridges and ports, expanding preschool to every 4-year-old in the country and raising the minimum wage.
But he and his aides hoped to use the speech both to claim credit for the progress made since the recession of 2008-9 and to position himself as the champion of a disaffected middle class that has yet to recover fully.But he and his aides hoped to use the speech both to claim credit for the progress made since the recession of 2008-9 and to position himself as the champion of a disaffected middle class that has yet to recover fully.
He chastised Republicans in Congress for not focusing on economic priorities and obstructing his initiatives. “Over the last six months, this gridlock has gotten worse,” he said.He chastised Republicans in Congress for not focusing on economic priorities and obstructing his initiatives. “Over the last six months, this gridlock has gotten worse,” he said.
And he challenged them to come up with their own plans. “I’m laying out my ideas to give the middle class a better shot,” he said, addressing himself to Republican leaders. “So now it’s time for you to lay out your ideas.”And he challenged them to come up with their own plans. “I’m laying out my ideas to give the middle class a better shot,” he said, addressing himself to Republican leaders. “So now it’s time for you to lay out your ideas.”
Republican leaders were not impressed by Mr. Obama’s renewed push on the economy. Speaker John A. Boehner said beforehand that a speech would not make a difference. “What’s it going to accomplish?” he asked on the House floor. “You’ve probably got the answer: nothing. It’s a hollow shell. It’s an Easter egg with no candy in it.” In Warrensburg, Mr. Obama repeated his economic themes in a packed gymnasium at the University of Central Missouri. To bursts of applause, he called Americans “gritty and resilient” and added that in the last five years “we’ve been able to clear away the rubble of the financial crisis.”
Senator Mitch McConnell of Kentucky, the Republican minority leader, said Mr. Obama’s speech would just be partisan rhetoric. “With all the buildup, you’d think the president was unveiling the next Bond film or something,” he said before the speech. “But in all likelihood it will be more like a midday rerun of some ‘70s B-movie. Because we’ve heard it all before. It’s old.” He focused on the need for investments in education to help generate more growth in jobs in the future. “If we don’t invest in American education, we are going to put our kids, our companies, our workers at a competitive disadvantage,” Mr. Obama said, standing in front of a sea of young children in matching red or white T-shirts.
Republicans said they had in fact advanced ideas for improving the economy, particularly in education, energy, tax changes and regulation. They noted that a House panel was taking up bills intended to relieve businesses of what Republicans consider burdensome regulation by the Environmental Protection Agency. “Mr. President, just get the federal government out of the way,” said Representative Kevin Brady, Republican of Texas, the chairman of the Joint Economic Committee. “Instead of putting handcuffs on job creators, try shaking their hand for a change.” The president also said the government must do more to make college affordable and pledged that his administration would work toward connecting 99 percent of American schools to high-speed Internet in the next five years.
Mr. Obama acknowledged before the speech that it would not “change any minds,” nor would it outline new proposals. Any new ideas will come in a series of other speeches in the weeks to come. Republican leaders were not impressed by Mr. Obama’s renewed push on the economy. Speaker John A. Boehner said beforehand that a speech would not make a difference.
But Mr. Obama and his aides billed his second Knox College speech as an important milestone in the president’s tenure on the national political stage. They said they hoped it would reset a national economic debate that had become too mired in the bitter clashes between the parties in Congress. “What’s it going to accomplish?” Mr. Boehner asked on the House floor. “You’ve probably got the answer: nothing. It’s a hollow shell. It’s an Easter egg with no candy in it.”
The Knox College speech was the president’s first stop on Wednesday. Afterward, he was to travel to the University of Central Missouri in Warrensburg for a second speech that afternoon before returning to the White House in the evening. As part of his pitch, he promised to develop in the next few months “an aggressive strategy” to tackle rising college costs. Republicans said they had in fact advanced ideas for improving the economy, particularly in education, energy, tax changes and regulation. They noted that a House panel was taking up bills intended to relieve businesses of what Republicans consider burdensome regulation by the Environmental Protection Agency.
On Thursday, Mr. Obama is scheduled to travel to Jacksonville, Fla., where he will continue to discuss his economic vision at the Port Authority there. The president has long pushed for renewed federal investment in infrastructure, including ports, as a way of helping to kick-start the economy. “Mr. President, just get the federal government out of the way,” said Representative Kevin Brady, Republican of Texas, the chairman of the Joint Economic Committee. “Instead of putting handcuffs on job creators, try shaking their hand for a change.”
Senior advisers to the president said he frequently refers to his first speech at Knox College in 2005, long before the economic crisis that seized the country three years later. They said Mr. Obama was eager to discuss how much had changed in the nation’s economy since that first speech. Senior advisers to the president said he frequently referred to his first speech at Knox College in 2005, long before the economic crisis that seized the country three years later. They said Mr. Obama was eager to discuss how much had changed in the nation’s economy since that speech.
“Now, today, five years after the start of that Great Recession, America has fought its way back,” Mr. Obama said, citing the recovery of the auto industry, growth in energy sectors, higher taxes on the wealthy, new regulation on banks and 7.2 million more private sector jobs. “Thanks to the grit and resilience and determination of the American people, of folks like you, we’ve been able to clear away the rubble from the financial crisis. We’ve started to lay a new foundation for stronger, more durable economic growth.” “Now, today, five years after the start of that Great Recession, America has fought its way back,” Mr. Obama said, citing the recovery of the auto industry, growth in energy sectors, higher taxes on the wealthy, new regulation on banks and 7.2 million more private sector jobs.”
But he said too many Americans had been left behind. He said nearly all of the income gains of the past 10 years had gone to the richest 1 percent of Americans, and said the average chief executive had seen raises totaling 40 percent since 2009, while the average American earned less than in 1999.But he said too many Americans had been left behind. He said nearly all of the income gains of the past 10 years had gone to the richest 1 percent of Americans, and said the average chief executive had seen raises totaling 40 percent since 2009, while the average American earned less than in 1999.
“This growing inequality, it’s not just morally wrong, it’s bad economics,” he said. “Because when middle-class families have less to spend, guess what? Businesses have fewer consumers. When wealth concentrates at the very top, it can inflate unstable bubbles that threaten the economy. When the rungs on the ladder of opportunity grow farther and farther apart, it undermines the very essence of America, that idea that if you work hard, you can make it here.”“This growing inequality, it’s not just morally wrong, it’s bad economics,” he said. “Because when middle-class families have less to spend, guess what? Businesses have fewer consumers. When wealth concentrates at the very top, it can inflate unstable bubbles that threaten the economy. When the rungs on the ladder of opportunity grow farther and farther apart, it undermines the very essence of America, that idea that if you work hard, you can make it here.”
He called on Republicans to pick up his economic proposals and to pass legislation overhauling the immigration system. He also scolded Republicans for obsessively trying to undercut his health care program and argued that it would expand coverage and trim costs. “If you think you have a better plan for making sure that every American has the security of quality, affordable health care, then stop taking meaningless repeal votes, and share your concrete ideas with the country,” he said to loud applause. He called on Republicans to pick up his economic proposals and to pass legislation overhauling the immigration system. He also scolded Republicans for trying to undercut his health care program and argued that it would expand coverage and trim costs.
But he also challenged members of his own party to stop defending outdated government programs and resisting change. “I will be saying to Democrats, we’ve got to question some of our old assumptions,” he said. “We’ve got to be willing to redesign or get rid of programs that don’t work as well as they should.” But he also challenged members of his own party to stop defending outdated government programs and resisting change.
Still, Mr. Obama gave little sense of how he would change that beyond giving more speeches in the next few weeks if he cannot win more cooperation from Congress. “I will not allow gridlock or inaction or willful indifference to get in our way,” he said. “That means whatever executive authority I have to help the middle class, I’ll use it. Where I can’t act on my own, and Congress isn’t cooperating, I’ll pick up the phone. I’ll call C.E.O.'s, I’ll call philanthropists, I’ll call college presidents, I’ll call labor leaders, I’ll call anybody who can help and enlist them in our efforts.” “I will be saying to Democrats, we’ve got to question some of our old assumptions,” he said. “We’ve got to be willing to redesign or get rid of programs that don’t work as well as they should.”

Michael D. Shear reported from Galesburg, and Peter Baker from Washington.

Michael D. Shear reported from Warrensburg, and Peter Baker from Washington.