Iran Election Guide

Donate to EAWV





Or, click to learn more

Search

Entries in Barack Obama (24)

Saturday
Jan302010

US Politics: Sitting/Standing at Obama's State of the Union

On Sunday afternoon, I will be at The Emirates Stadium in London, watching Arsenal v Manchester United in football ("soccer"). Since I am a Tottenham Hotspur fan, so why would I do this?Well, I could watch the game from the comfort of my armchair, rooting against both teams, but nothing beats watching an event live and in person.

I feel the same about Wednesday night’s State of the Union address by President Obama. The BBC television coverage's was fine, but most of the time, there was no way of knowing who was up and who was down. If only I had been in the Capitol chamber, I could have gotten a better reading of the politics, just by watching the ritual of members of Congress demonstrating their feelings by either standing or remaining firmly seated during the address.

I don‘t know when the tradition of standing and repetitive applauding for the President during the State of the Union started. On this occasion, Congress’s version of aerobics began after Obama’s long, uninterrupted opening. Once members started applauding, they were up and down with considerable frequency as the President took them through his plans for jobs, financial reform, civil rights, nuclear weapons, Iraq and Afghanistan, education, reduction of the deficit, health care, and gays in the military.

A Gut Reaction to Obama’s “State of The Union” & Foreign Policy: Ignoring the Kids in the Backseat
Video & Transcript: President Obama’s State of the Union Address (27 January)

Measured through the BBC's restricted perspective, how did he do? Well, this was a tour de force. Obama is a brilliant speaker but, let's be blunt, he also compares incredibly well with his predecessor. On this night, Obama was Presidential.

Still, there were quirks in the presentation. By tradition, one Cabinet member is left behind in the White House, a precaution in case all the others are wiped out by some disaster or nefarious activity during the speech. I did not see the Secretary of State, Hillary Clinton, in the audience. Surely Obama did not choose her to hold the fort! [Editor: Fret not. Clinton was in London for talks on Afghanistan, Yemen, and Iran.] Then there were the military brass hats who were present. Perhaps it doesn’t matter if they are all wiped out, especially if they keep giving Obama stony-faced looks, as they did when he brought up the issues of gays serving in the armed forces.

And there was a bit of controversy. Obama, a constitutional law expert, took on the judiciary. “With due deference to separation of powers,” he said, “last week the Supreme Court reversed a century of law that…will open the floodgates for special interests…to spend without limit in our elections…I urge [Congress] to pass a bill to correct the problem.” For 30 seconds, the cameras fixed on the Supremes, so I do not know which legislators stood or sat, as the judges remained immobile. That would have been useful information.

And there were the signs of the White House's building battle with Congress. Earlier in his speech, Obama spoke of sending a bill to Congress on job creation. Within minutes, Republicans peremptorily dismissed the proposal, expressing no interest in using $30 billion in bank bailout money for business tax credits.

I wonder whether Obama looks enviously at Gordon Brown. The British set piece equivalent of State of the Union is the Opening of Parliament, when Elizabeth II reads the Queen’s Speech, detailing the government’s legislation package for the following parliamentary session, in the chamber of the House of Lords. The speech is effectively written by the Prime Minister and his inner cabinet. Her Majesty just reads it. All members of the House of Commons gather, standing, at the back of the chamber while the Lords are seated. There is rarely any question as to whether the bills will pass. Government majorities and whips will see to that. So no stand/sit dilemma here.

So two cheers for Obama and three cheers for the British in the stand/sit debate. The American practice wastes time. It is irritating and childish. Standing ovations should be reserved are for glorious feats in a Test Cricket Match (especially versus Australia), scoring a winning goal in football ("soccer"), and the awarding of an Oscar. Ovations during a speech reduce and devalue it. And for members to divide politically when their President calls upon them to show leadership, not partisanship, is downright offensive, not just to the President but to the electorate.

Still, next time BBC, give me a wide-angle view.
Friday
Jan292010

The Latest from Iran (29 January): Sideshows and Main Events

2320 GMT: The Committee of Human Rights Reporters has issued a statement on recent allegations against its members, many of whom are detained:
The civil society’s endurance depends on acceptance and realization of modern norms and principles. When a ruling establishment with an outdated legal system tries to impose itself politically and ideologically on a modern society, the result will be widespread protests.

2315 GMT: Correction of the Day. Although it was not widely noted, there were 40th Day memorial ceremonies for Grand Ayatollah Montazeri in Qom.

2310 GMT: Diversion of the Day. From Press TV:
President Mahmoud Ahmadinejad's top aide said Friday Tehran is concerned about the direction of the US administration after President Barack Obama delivered his first State of the Union address.

"We have concerns Obama will not be successful in bring change to US policies," Esfandiar Rahim-Mashai, the senior aide to President Ahmadinejad and his chief of staff, said.

With respect, Esfandiar, I don't think President Obama is your biggest concern right now.

NEW Iran Patriotism Special: Wiping the Green From The Flag
Iran Document: Karroubi Maintains the Pressure (28 January)
Iran Document: Resignation Letter of Diplomat in Japan “Join the People”
Iran Document/Analysis: Karroubi’s Statement on the Political Situation (27 January)
Iran Analysis: Leadership in the Green Movement
The Latest from Iran (28 January): Trouble Brewing


2300 GMT: Yawn. Well, we started the day with a sanctions sideshow (see 0650 GMT), so I guess it is fitting to close with one. US Secretary of State Hillary Clinton, speaking in Paris:
China will be under a lot of pressure to recognize the destabilizing impact that a nuclear-armed Iran would have in the [Persian] Gulf, from which they receive a significant percentage of their own supplies....We understand that right now it seems counterproductive to [China] to sanction a country from which you get so much of the natural resources your growing economy needs....[But China] needs to think about the longer-term implications.

1. The White House is not even at the point of agreeing a sanctions package with the US Congress, let alone countries with far different agendas.
2. China is not going to agree tough sanctions in the UN Security Council. Really. Clinton is blowing smoke.
3. About the only outcome of this will be Press TV running a story on bad America threatening good Iran Government.


2250 GMT: Back after a break (Up In The Air is fantastic --- there, I've said it) to find that the reformist Islamic Iran Participation Front has written an open letter to Iran's head of judiciary, Sadegh Larijani, putting a series of questions over the executions of Mohammad Reza Ali Zamani and Arash Ramanipour.

1820 GMT: We've moved our item on the regime's apparent removal of Green from Iran's flag to a separate entry.

1755 GMT: Today's Pot-Kettle-Black Moment. Just came across a discussion on Press TV of a bill, passed in the US House of Representatives, threatening to block "anti-US" television channels.

Don't get me wrong: this is an incredibly stupid measure, although as Professor William Beeman, the most reflective of the three guests notes, it is a symbolic declaration unlikely to become law. However, I have to note that at no point do the words "Internet filtering", "expulsion/imprisonment of journalists", "jamming of satellite signals" (say, of Voice of America Persian or BBC Persian) come up in the conversation, which also includes a Dr Franklin Lamb and a Dr Seyed Mohammad Marandi.

1750 GMT: The Judiciary v. Ahmadinejad. At insideIRAN, Arash Aramesh has a useful summary of the suspension of the publication Hemmat by Iran's judiciary. The twist is that Hemmat, which ran into trouble for running an attack piece against Hashemi Rafsanjani, is a supporter of the Ahmadinejad Government. No surprise then that the President reportedly declared:
I am not very happy with some of the Judiciary’s actions. Someone published a paper and you shut it down. It is the job of a jury to order the closure of publications. We do not agree with such actions and believe that these actions show a spirit of dictatorship.

However, Aramesh does not connect the Hemmat story to the imprisonment of Mohammad Jafar Behdad (see 1230 GMT), an official in the Ministry of Culture and Islamic Guidance, for four months.

1725 GMT: The Latest from Gohardasht Prison. Peyke Iran reports that 300 Ashura detainees are under severe pressure by Ministry of Intelligence agents, demanding confessions of "mohareb" (war against God), in sections controlled by the Revolutionary Guard.

1700 GMT: The International Committee for Human Rights in Iran has started a new blog. Current posts consider the Zamani/Rahmanipour executions and "Members of Committee of Human Rights Reporters Under Pressure to Make Forced Confessions".

1600 GMT: The Strategy of Deaths. Tehran Prosecutor General Abbas Jafari Doulatabadi has offered details on the regime's handling of executions: having put to death two pre-election detainees to death yesterday, the Government has handed down five more sentences on five people arrested on Ashura (27 December). The sentences are currently being appealed.

Doulatabadi's declaration complements a recent announcement that by Iran Prosecutor General Gholamhosein Mohseni Ejei that at least three Ashura Day detainees will be executed. Ejei also said four more pre-election prisoners had been sentenced to death. (Added to Thursday's executions, Doulatabadi and Ejei's numbers match up to the "eleven" death sentences announced by Iranian state media yesterday.)

1410 GMT: Man, 1) Ayatollah Jannati is in a really bad mood after being verbally slapped by Mehdi Karroubi; 2) the Government is scared of the forthcoming demonstrations on 22 Bahman (11 February); 3) both. The Los Angeles Times offers translated extracts from Jannati's Friday Prayers address (see 1155 GMT) in Tehran:
The prophet Muhammad signed non-aggression pacts with three Jewish tribes. The Jews failed to meet their commitments, and God ordered their massacre (by Imam Ali, the 3rd Imam Shia, despite his reputation for compassion)....When it comes to suppressing the enemy, divine compassion and leniency have no meaning.

The judiciary is tasked with dealing with the detained rioters. I know you well, judiciary officials! You came forward sincerely and accepted this responsibility. You are revolutionary and committed to the Supreme Leader. For God's sake, stand firm as you already did with your quick execution of these two convicts....

God ordered the prophet Muhammad to brutally slay hypocrites and ill-intentioned people who stuck to their convictions. Koran insistently orders such deaths. May God not forgive anyone showing leniency toward the corrupt on earth.

1230 GMT: An Ahmadinejad Official in Jail. Mohammad Jafar Behdad, head of internal media at the Ministry of Culture and Islamic Guidance, has been sentenced to 4 months in prison. Behdad, a former head of the Islamic Republic News Agency, was convicted of disregarding judiciary warnings against provocative publications. His newspaper Hemmat had been suspended for a feature on "Hashemi [Rafsanjani] and his band of brothers".

1220 GMT: Verbal Skirmishes. Retired Revolutionary Guard General Ali Asgari, a former minister in the Khatami Government, has declared that Hashemi Rafsanjani must remain by the side of the Supreme Leader and denounced Rafsanjani's verbal attacker, Ayatollah Mohammad Yazdi, as a radical who defends a backward Islam.

On the regime side, Iran's police chief Esmail Ahmadi-Moghaddam has announced that "some of the elite are against the regime and with the enemy". At the same time, he appears to have held out a hand to Mir Hossein Mousavi, saying he "was deceived" by these wrong-doers.

1210 GMT: The "Real" Karroubi Interview. Fars News, whose distorted report on Mehdi Karroubi's views inadvertently moved Karroubi's challenge to the Ahmadinejad Government centre-stage, makes another clumsy intervention today.

Selecting extracts from Karroubi's interview with Britain's Financial Times and quoting them out of context, Fars declares that Karroubi has "100%" backed the Supreme Leader and denounced protesters.

Yeah, right.

1155 GMT: Your Tehran Friday Prayer Summary. Ayatollah Ahmad Jannati, the head of the Guardian Council, had the podium today. Given that Mehdi Karroubi knocked him about a bit yesterday, Jannati was probably not in the most conciliatory of moods as he said:
Weakness in the face of events such as the "irreverence" of demonstrations on Ashura will undermine the regime. Ayatollah [Sadegh] Larijani, be a man, get tough, bring in some protesters. (Hey, but it was pretty cool that you executed those two guys yesterday to please God.)

1140 GMT: A very slow day, both for sideshows and main events. During the lull, this comment from a reader to Andrew Sullivan's Daily Dish, reacting to the Zamani/Rahmanipour executions, is striking:
You see the strategy is an obvious one: start with the people who are the weakest links, some obscure monarchist group and not directly related to the reformist/Mousavi's camp or the greens, that way it would make it harder politically for [Mir Hossein] Mousavi or [Mehdi] Karoubi to defend them. Then they will advance. This is, in their mind, also the best way to send a message about Feb 11th that if you are arrested on that day, you could be executed. The combination of desperation and cruelty.

0750 GMT: Remembering Montazeri. Video of the bazaar at Najafabad, the birthplace of Grand Ayatollah Montazeri, was empty on Thursday to mark the passing of the cleric in late December. Memorials for the "40th Day" of Montazeri's death were planned for both yesterday and today.)

0650 GMT: There are a number of obstacles to clear this morning before getting to the important developments. Foremost amongst these is last night's news that the US Senate, the upper house of the Congress, has approved tougher sanctions against Iran. The focus is on petroleum, denying loans and other assistance from American financial institutions to companies that export gasoline to Iran or help expand its oil-refining capacity. The penalties would extend to companies that build oil and gas pipelines in Iran and provide tankers to move Iran’s petroleum. The measure also prohibits the United States Government from buying goods from foreign companies that do business in Iran’s energy sector.

Even if sanctions are central to a resolution of Iran's political crisis, as opposed to their place in the manoeuvres over Iran's nuclear programme --- personally, I don't think they are --- there is a lot of bureaucratic road to cover before they are in place. The Senate has to agree its version of the bill with the House of Representatives. More importantly (and The New York Times story ignores this point), the Obama Administration so far has opposed the petroleum measures because they are unlikely to be effective. The White House and State Department prefer "targeted" sanctions, aimed especially at economic interests of bodies like the Islamic Revolution Guards Corps.

Then there is the Washington sideshow of Very Important People battering each other in the guise of offering the Very Best US Policy on Iran. The Washington Post announces the boxing match between Richard Haass, formerly of the State Department and now head of the Council for Foreign Relations, and the Flynt/Hillary Leverett duo, formerly of State and the National Security Council. The punches are entirely predictable --- Haass, while proclaiming himself a "realist", has joined the chorus of US experts singing of "regime change", while the Leveretts are staunchly defending the legitimacy of the Iran Government --- and pretty much swatting air when it comes to the complexities of the Iranian situation. (But Haass was best man at the Leveretts' wedding, which turns a marginal story into a "quirky" one.)

So where are the significant stories? Well, there is yesterday's execution of two detainees, Mohammad Reza Ali Zamani and Arash Rahmanipour, who were jailed in April 2009 for endangering Iran's national security. In one sense, this is another sideshow. Obviously, neither Zamani and Rahmanipour were involved in post-election protest and the "monarchist" group to which they allegedly belonged is not significant in the Green movement.

However, the regime was far from subtle in linking the hangings of the two men to the demonstrations of Ashura (27 December), and that linkage --- inadvertently --- displays its fear of the forthcoming marches on 22 Bahman/11 February, the anniversary of the 1979 Revolution. What's more, by promising the executions of nine more detainees if everyone didn't just shut up and go away, the Government made a risky commitment. Either it goes ahead with the executions, making more martyrs for the protests, or it backs down.

And then there is The Week of Mehdi Karroubi, with the cleric launching another broadside against President Ahmadinejad and his allies yesterday. Some media continue to be led astray by confusion over Karroubi's loud and emerging strategy --- The New York Times, for example, mis-reads Karroubi's latest statement as "conciliatory remarks...shifting the blame for the violent postelection crackdown away from Ayatollah Khamenei".

They are not. Karroubi is both giving the Supreme Leader (or "Mr Khamenei", as he was labelled on Monday) a chance and setting him a test: do what you are supposed to do under our Constitution and Islamic Republic, Supreme Leader, and make your President accountable for injustices and abuses.

Enjoy all the sideshows, folks, but in this political circus, that's your centre-ring main event.
Friday
Jan292010

A Gut Reaction to Obama's "State of The Union" & Foreign Policy: Ignoring the Kids in the Backseat

My kids are no longer kids: my son is 13 and my daughter is 10 going on 18. But, as I am driving, it still happens. First, a sharp one-liner, then a squeal, and a quick escalation to a scuffle and "Dad!". I just keep my eyes on the road, trying not to notice.

Well, President Obama has given his annual set-piece speech, the Washington pundits have pronounced, and already everyone "in the know" are rubbing hands over the forthcoming showdowns between the White House and Congress over domestic issues. And all the while I'm thinking about this speech....

When it comes to the US beyond Capitol Hill and its borders, President Obama just tried to ignore the kids in the backseat.

Video & Transcript: President Obama’s State of the Union Address (27 January)


That's far from a shocking response. Obama's immediate road ahead, for his future and that of the US, is the economy and health care. Having bailed out a leaking ship last year, the Administration now has to show progress on employment; otherwise, the Republicans, even though it was their eight years in the White House that set up the debacle and even though they have put forth no alternatives for the way out of recession, can just keep hammering away at White House failure. As for health care, what should be the overriding issue --- an expensive, inefficient US system will continue to leave millions of Americans unprotected --- is being replaced by the politics of display: the Obama Administration needs a bill, no matter how watered down, just to show that it is not captive to the blows of the Republican minority in Congress.

Not surprising then that the President only devoted eight out of 60+ minutes to affairs beyond the US. What is more significant, of course, is what was in those eight minutes.


Speaking to his front-seat passangers --- Congressmen and "fellow Americans" --- the President returned to the rhetoric of his Inaugural:
Let’s put aside the schoolyard taunts about who is 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 the world.

Going back to lofty words is not necessarily a bad thing, and Obama should be commended, given past White House-whipped-up hysteria about "security", for trying to damp down the culture of fear, for example, over the recent incident of the failed Christmas Day explosion on a US-bound flight.

But for the kids in the backseat --- the squabbles over US involvement in the world from Central Asia to the Middle East to Africa to Latin America --- Obama had nothing beyond the stock phrases of a Dad trying not to notice:
We have prohibited torture and strengthened partnerships....Hundreds of al-Qaida’s fighters and affiliates, including many senior leaders, have been captured or killed — far more than in 2008....In Afghanistan, we are increasing our troops and training Afghan Security Forces....We are responsibly leaving Iraq to its people....

We are also confronting perhaps the greatest danger to the American people — the threat of nuclear weapons....We are working through the G-20 to sustain a lasting global recovery. We are working with Muslim communities around the world to promote science, education and innovation. We have gone from a bystander to a leader in the fight against climate change. We are helping developing countries to feed themselves and continuing the fight against HIV/AIDS....

America must always stand on the side of freedom and human dignity.

For some in the front seat, the litany was enough. Robert Dreyfuss of The Nation declared, "It was a pleasure to listen to a State of the Union address, especially after eight years of his predecessor's alarmist warnings and warlike thundering, in which war, terrorism, and 'rogue states' went almost unmentioned."

By the benchmark of avoiding the foreign policy pile-ups of 2001-2009, there's something to say for Eyes on the Road and Leave the Kids Alone. But, if Obama is serious about his declaration, "Abroad, America’s greatest source of strength has always been our ideals," he better take a look over his shoulder.

It's all too easy to rip away the screen of the rhetoric. Obama may have "prohibited torture" through his Executive Order, but the promise to close Guantanamo Bay --- unmentioned in the speech --- is gone, and there are much bigger US detention facilities in Afghanistan holding uncharged prisoners who may or may not be going through "enhanced interrogation". "Hundreds of al-Qaida’s fighters and affiliates" killed also means, in bombings and drone attacks, hundreds of civilians killed, with the consequences for public attitudes towards US interventions in Afghanistan and Pakistan.

The declaration about fighting corruption in Afghanistan, after last summer's failed symbol of the Presidential election, is now a sentence without significance, and Obama did not even bother to make a reference to non-military projects in the country. And "responsibly leaving" Iraq? Well, the political and economic conflicts have been left to the Iraqis --- which is preferable to the Bushian approach --- but it is far from clear what 100,000+ US troops are now doing as bystanders.

Yes, all too easy to identify the thin and getting thinner rhetoric overlaying the complexities and tensions in American "interventions". What was really disappointing for me, however, is that Obama did not even bother to offer the squabbling kids some words of substance.

There is a virtue, under this Administration, that Bush-era fist-shaking has been replaced by "engagement". In Latin America, no more quick-fix solutions like the attempted 2002 coup in Venezuela but recognition of governments, even if their interests do not coincide with those of Washington. (For the moment, I'm treating Honduras as a serious but exceptional complication.) In Africa, the military-first approach of AFRICOM and rather empty posturing over issues such as Sudan has been replaced by diplomacy. And while it was a bit rich for Obama to claim "leadership" on climate change, at least the US hasn't loudly picked up its toys and gone home, as was the case over the last eight years.

But "engagement" has got to have meaning beyond rhetoric and has got to have significance in the tough cases. Months after Obama's Ankara and Cairo speech, and despite his attempted cover of "working with Muslim communities", I am pretty sure that those in the backseat will have noted no reference to Israel and Palestine, or even the Middle East. Obama's Iran references, in light of the internal developments in and beyond Tehran, appeared obsolete (the same old engagement/sanctions declaration in a nuclear-first policy) and fleeting (a mention of "an Iranian woman" standing in for any engagement with how the US backs "rights" in a difficult case).

And of course, Obama can say "values, values, values", but "values" sit uneasily alongside the military-first approach in the symbolic centrepieces of Afghanistan and Pakistan. They don't stand in for a political approach that is based on more than putting in more troops and pretending that the issues at the centre of the Afghanistan and Pakistan Governments will just vanish, even if we really don't like Mr Karzai or Mr Zardari.

I'm sorry to be snippy. Dads have it tough at the best of time. But even a well-intentioned father has to got to recognise that, at some point, squabbles have got to be confronted with more than a reassurance that "Dad/America Knows/Means Best". Especially when the US was not a part of these squabbles but has been very much a central actor in them --- and, with its failures of engagement and its recourse to the harder side of US power --- and is still much part of the argument.
Friday
Jan292010

Israel-Palestine: Obama to Netanyahu, Abbas "Deal With Your Opposition Within"

On Thursday, at a Town Hall meeting in Tampa, President Obama talked about the Israeli-Palestinian peace process. He not only reiterated the urgent need to meet both sides' "legitimate aspirations" but also implicitly warned each to deal with the opposition forces within their camps.

Obama started with the dual assurances, Israel is one of our strongest allies. It's critical for us, and I will never waver from ensuring Israel's security....The plight of the Palestinians is something that we have to pay attention to. It is not good for our security and for Israel's security if you have millions of individuals who feel hopeless....We are working to try to strengthen the ability of both parties to have to sit down across the table."

Israel: Defense Minister Barak “Palestine Peace Bigger Issue Than Iran’s Bomb”
Gaza: Israel Rejects Another High-Level Visit
Israel: Netanyahu’s “War on Evil”


Obama then pointed out the "mutual demonization" jeopardizing the peace process, while urging leaders through praise to deal with troublesome allies. The President said that Israeli Prime Minister Benjamin Netanyahu "is making some effort to move a little bit further than his coalition wants to go" while Palestinian Authority leader Mahmoud Abbas "genuinely wants peace" but has to deal with Hamas. Obama concluded:



The Palestinians have to unequivocally renounce violence and rToecognize Israel. And Israel has to acknowledge legitimate grievances and interests of the Palestinians.
Thursday
Jan282010

Video & Transcript: President Obama's State of the Union Address (27 January)

We'll have "A Gut Reaction to the State of the Union" on Friday. By coincidence, I was on a panel discussing Obama's first year, in front of an audience rather disappointed with the Administration and the state of "America", a few hours before it was delivered. Is there any reason to change that disappointment in light of the following?


NEW A Gut Reaction to Obama’s “State of The Union” & Foreign Policy: Ignoring the Kids in the Backseat
A Gut Reaction to The Obama Inaugural Speech
America One Year On: In Defence of Barack Obama


Madame 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 have done so during periods of prosperity and tranquility. And they have 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 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 and 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 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. For those who had 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, Ind., and Galesburg, Ill. 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, or 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 are 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 and 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. As one woman wrote me, "We are strained but hopeful, struggling but encouraged."

It is 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. 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.

And 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, it's that we all hated the bank bailout. I hated it. You hated it. It was about as popular as a root canal.

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 the program over, we made it more transparent and accountable. As a result, the markets are now stabilized, and we have recovered most of the money we spent on the banks.

To recover the rest, I have proposed a fee on the biggest banks. 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.

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.

Let me repeat: we cut taxes. We cut taxes for 95 percent of working families. 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. 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.

Because of the steps we took, there are about 2 million Americans working right now who would otherwise be unemployed -- 200,000 work in construction and clean energy, 300,000 are teachers and other education workers, tens of thousands are cops, firefighters, correctional officers and first responders. And we are 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. That's right -- the Recovery Act, also known as the stimulus bill. Economists on the left and the right say that this bill has helped saved 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 work force 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 is why I am calling for a new jobs bill tonight.

Now, the true engine of job creation in this country will always be America's businesses. 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 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 are ready to grow. But when you talk to small business owners in places like Allentown, Pa., or Elyria, Ohio, you find out that even though banks on Wall Street are lending again, they are mostly lending to bigger companies. But financing remains difficult for small business owners across the country.

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. I am also proposing a new small business tax credit -- one that will go to over 1 million small businesses who hire new workers or raise wages. While we're at it, let's also eliminate all capital gains taxes on small business investment and provide a tax incentive for all businesses, large and small, to invest in new plants and equipment.

Next, we can put Americans to work today building the infrastructure of tomorrow. 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, Fla., where workers will soon break ground on a new high-speed railroad funded by the Recovery Act. There are projects like that all across this country that will create jobs and help our nation move goods, services and information. We should put more Americans to work building clean energy facilities and give rebates to Americans who make their homes more energy efficient, which supports clean energy jobs. And to encourage these and other businesses to stay within our borders, it's time to finally slash the tax breaks for companies that ship our jobs overseas and give those tax breaks to companies that create jobs in the United States of America.

The House has passed a jobs bill that includes some of these steps. As the first order of business this year, I urge the Senate to do the same. People are out of work. They are hurting. They need our help. And I want a jobs bill on my desk without delay.

But the truth is, these steps still won't make up for the 7 million jobs 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 cannot afford another so-called economic expansion like the one from 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 have been told that addressing our larger challenges is too ambitious -- that such efforts would be too contentious, 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?

You see, Washington has been telling us to wait for decades, even as the problems have grown worse. Meanwhile, China's not waiting to revamp its economy; Germany's not waiting; India's not waiting. These nations aren't 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 are making serious investments in clean energy because they want those jobs.

Well I do not accept second place for the United States of America. As hard as it may be, as uncomfortable and contentious as the debates may be, it's time to get serious about fixing the problems that are hampering our growth.

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. We can't allow financial institutions, including those that take your deposits, to take risks that threaten the whole economy.

The House has already passed financial reform with many of these changes. And the lobbyists are already trying to kill it. Well, we cannot let them win this fight. And if the bill that ends up on my desk does not meet the test of real reform, I will send it back.

Next, we need to encourage American innovation. Last year, we made the largest investment in basic research funding in history -- 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 investment 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 1,000 people to work making solar panels.

But to create more of these clean energy jobs, we need more production, more efficiency, more incentives. That means building a new generation of safe, clean nuclear power plants in this country. It means making tough decisions about opening new offshore areas for oil and gas development. It means continued investment in advanced biofuels and clean coal technologies. 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.

I am grateful to the House for passing such a bill last year. This year, I am eager to help advance the bipartisan effort in the Senate. I know there have been questions about whether we can afford such changes in a tough economy, and I know that there are those who disagree with the overwhelming scientific evidence on climate change. But 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.

Third, we need to export more of our goods. Because the more products we make and sell to other countries, the more jobs we support right here in America. So tonight, we set a new goal: We will double our exports over the next five years, an increase that will support 2 million jobs in America. 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.

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. But realizing those benefits also means enforcing those agreements so our trading partners play by the rules. And that's why we will 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, Panama and Colombia.

Fourth, we need to invest in the skills and education of our people.

This year, we have broken through the stalemate between left and right by launching a national competition to improve our schools. 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 inner cities. In the 21st century, one of the best anti-poverty programs is a world-class education. In this country, the success of our children cannot depend more on where they live than 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. 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. To make college more affordable, this bill will finally end the unwarranted taxpayer subsidies that go to banks for student loans. Instead, let's take that money and give families a $10,000 tax credit for four years of college and increase Pell Grants. And let's tell another 1 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. And it's time for colleges and universities to get serious about cutting their own costs -- 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 every worker access to 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. And it is precisely to relieve the burden on middle-class families that we still need health insurance reform.

Now let's be clear -- I did not 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.

I took on health care because of the stories I've heard from Americans with pre-existing conditions whose lives depend on getting coverage, patients who've been denied coverage and families -- even those with insurance -- who are just one illness away from financial ruin.

After nearly a century of trying, 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 our kids healthier.

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.

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, this process left most Americans wondering what's in it for them.

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.

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. Here's what I ask of Congress, though: Do not 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.

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, America had a budget surplus of over $200 billion. 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. That was before I walked in the door.

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.

I am 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. So tonight, I'm proposing specific steps to pay for the $1 trillion that it took to rescue the economy last year.

Starting in 2011, we are prepared to freeze government spending for three years. 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.

We will continue to go through the budget line by line 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 will extend our middle-class tax cuts. But at a time of record deficits, we will not continue tax cuts for oil companies, investment fund managers and those making over $250,000 a year. We just can't afford it.

Now, even after paying for what we spent on my watch, we will 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. 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. Yesterday, the Senate blocked a bill that would have created this commission. So I will issue an executive order that will allow us to go forward, because I refuse to pass this problem on to another generation of Americans. And when the vote comes tomorrow, the Senate should restore the pay-as-you-go law that was a big reason why we had record surpluses in the 1990s.

I know that some in my own party will argue that we cannot address the deficit or freeze government spending when so many are still hurting. I agree, which is why this freeze will not take effect until next year, when the economy is stronger. But understand -- if we do not 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 could 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 for wealthier Americans, eliminate more regulations and maintain the status quo on health care, our deficits will go away. The problem is, that's what we did for eight years. That's what helped lead us into this crisis. It's what helped lead to these deficits. And we cannot 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.

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 must take action on both ends of Pennsylvania Avenue to end the outsized influence of lobbyists; to do our work openly and to give our people the government they deserve.

That's what I came to Washington to do. That's why -- for the first time in history -- my administration posts our White House visitors online. And 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 Congress. And it's time to put strict limits on the contributions that lobbyists give to candidates for federal office. Last week, the Supreme Court reversed a century of law to open the floodgates for special interests -- including foreign corporations -- to spend without limit in our elections. Well, I don't think American elections should be bankrolled by America's most powerful interests, or worse, by foreign entities. They should be decided by the American people, and that's why I'm urging Democrats and Republicans to pass a bill that helps to right this wrong.

I'm also calling on Congress to continue down the path of earmark reform. You have trimmed some of this spending and embraced some meaningful change. But restoring the public trust demands more. For example, some members of Congress post some earmark requests online. 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. Of course, none of these reforms will even happen if we don't also reform how we work with one another.

Now, I am not naive. I never thought the mere fact of my election would usher in peace, harmony 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, have been taking place for over 200 years. They are the very essence of our democracy.

But what frustrates the American people is a Washington where every day is election day. We cannot wage a perpetual campaign where the only goal is to see who can get the most embarrassing headlines about their opponent -- a belief that if you lose, I win. Neither party should delay or obstruct every single bill just because they can. The confirmation of well-qualified public servants should not be held hostage to the pet projects or grudges of a few individual senators. Washington may think that saying anything about the other side, no matter how false, is just part of the game. But it is precisely such politics that has stopped either party from helping the American people. Worse yet, it is sowing further division among our citizens and further distrust in our government.

So no, I will not give up on changing the tone of our politics. I know it's an election year. And after last week, it is 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 some problems, not run for the hills. 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, then the responsibility to govern is now yours as well. 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. So let's show the American people that we can do it together. This week, I'll be addressing a meeting of the House Republicans. And I would like to begin monthly meetings with both the Democratic and Republican leadership. I know you can't wait.

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 am not interested in relitigating 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 is 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 the world.

That is the work we began last year. Since the day I took office, we have renewed our focus on the terrorists who threaten our nation. We have 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 have prohibited torture and strengthened partnerships from the Pacific to South Asia to the Arabian Peninsula. And in the last year, hundreds of al-Qaida's fighters and affiliates, including many senior leaders, have been captured or killed -- far more than in 2008.

In Afghanistan, we are 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. We will reward good governance, reduce corruption and support the rights of all Afghans -- men and women alike. We are joined by allies and partners who have increased their own commitment, and who will come together tomorrow in London to reaffirm our common purpose. There will be difficult days ahead. But I am confident we will succeed.

As we take the fight to al-Qaida, 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. We will support the Iraqi government as they hold elections, and 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. Tonight, all of our men and women in uniform -- in Iraq, Afghanistan and around the world -- must know that they have our respect, our gratitude and 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. That is why we made the largest increase in investments for veterans in decades. That is why we are building a 21st century VA. And that is why Michelle has joined with Jill Biden to forge a national commitment to support military families.

Even as we prosecute two wars, we are also confronting perhaps the greatest danger to the American people -- the threat of nuclear weapons. I have 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. And at April's nuclear security summit, we will bring 44 nations together 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.

These diplomatic efforts have also strengthened our hand in dealing with those nations that insist on violating international agreements in pursuit of these weapons. That is why North Korea now faces increased isolation and stronger sanctions -- sanctions that are being vigorously enforced. That is 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 the leadership that we are providing -- engagement that advances the common security and prosperity of all people. We are working through the G-20 to sustain a lasting global recovery. We are working with Muslim communities around the world to promote science, education and innovation. We have gone from a bystander to a leader in the fight against climate change. We are helping developing countries to feed themselves and continuing the fight against HIV/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 is why, as we meet here tonight, over 10,000 Americans are working with many nations to help the people of Haiti recover and rebuild. That is why we stand with the girl who yearns to go to school in Afghanistan, we support the human rights of the women marching through the streets of Iran, and 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.

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 are 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, that 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. We finally strengthened our laws to protect against crimes driven by hate. 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. We are going to crack down on violations of equal pay laws -- so that women get equal pay for an equal day's work. And we should continue the work of fixing our broken immigration system -- to secure our borders, enforce our laws and ensure that everyone who plays by the rules can contribute to our economy and enrich our nations.

In the end, it is 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 they're living by, business values or labor values. They are 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 into silly arguments and 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 at least, that I can deliver it.

But remember this -- I never suggested that change would be easy or that I can 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. 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 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 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 -- 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 some place they've never been and pull people they've never known from rubble, prompting chants of "USA! USA! USA!" 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. Let's seize this moment -- to start anew, to carry the dream forward, and to strengthen our union once more.

Thank you. God Bless You. And God Bless the United States of America.