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President Obama, please.

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Thank you very much.

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Thank you.

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Everybody please have a seat.

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Thank you.

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Mr. Speaker, Mr. Vice President, members of Congress,

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distinguished guests, and fellow Americans,

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Tonight, I want to begin by congratulating the men and women

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of the 112th Congress, as well as your new speaker, John Boehner.

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And as we mark this occasion, we're also mindful of the empty chair in this chamber.

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And we pray for the health of our colleague and our friend,

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Gabby Giffords.

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It's no secret that those of us here tonight have had our

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differences over the last two years.

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The debates have been contentious.

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We have fought fiercely for our beliefs.

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And that's a good thing.

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That's what a robust democracy demands.

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That's what helps set us apart as a nation.

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But there's a reason the tragedy in Tucson gave us pause.

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Amid all the noise and passion and rancor of our public debate,

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Tucson reminded us that no matter who we are or where we come

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from, each of us is a part of something greater,

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something more consequential than party or political preference.

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We are part of the American family.

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We believe that in a country where every race and faith and

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point of view can be found, we are still bound together as one

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people, that we share common hopes and a common creed,

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that the dreams of a little girl in Tucson are not so different

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than those of our own children, and that they all deserve the

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chance to be fulfilled.

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That, too, is what sets us apart as a nation.

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Now, by itself, this simple recognition won't usher in a new era of cooperation.

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What comes of this moment is up to us.

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What comes of this moment will be determined not by whether we can sit together tonight,

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whether we can work together tomorrow.

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I believe we can, and I believe we must.

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That's what the people who sent us here expect of us.

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With their votes, they've determined that governing will

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now be a shared responsibility between parties.

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New laws will only pass with support from Democrats and Republicans.

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We will move forward together, or not at all,

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for the challenges we face are bigger than party and bigger

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than politics.

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At stake right now is not who wins the next election.

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After all, we just had an election.

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At stake is whether new jobs and industries take root in this

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country or somewhere else.

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It's whether the hard work and industry of our people is

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rewarded.

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It's whether we sustain the leadership that has made America

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not just a place on a map, but the light to the world.

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We are poised for progress.

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Two years after the worst recession most of us have ever

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known, the stock market has come roaring back.

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Corporate profits are up.

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The economy is growing again.

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But we have never measured progress by these yardsticks alone.

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We measure progress by the success of our people,

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by the jobs they can find and the quality of life those jobs

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offer, by the prospects of a small business owner who dreams of turning a good idea into

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a thriving enterprise, by the opportunities for a better life that we pass on to our children.

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That's the project the American people want us to work on. Together.

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And we did that in December.

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Thanks to the tax cuts we passed, Americans' paychecks are a little bigger today.

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Every business can write off the full cost of new investments that they make this year.

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And these steps, taken by Democrats and Republicans, will grow the economy and add to the more

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more than one million private sector jobs created last year.

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But we have to do more.

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These steps we've taken over the last two years may have broken

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the back of this recession.

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But to win the future, we'll need to take on challenges that

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have been decades in the making.

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Many people watching tonight can probably remember a time when

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finding a good job meant showing up at a nearby factory or a

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business downtown.

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You didn't always need a degree, and your competition was pretty

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much limited to your neighbors.

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If you worked hard, chances are you'd have a job for life,

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with a decent paycheck and good benefits,

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and the occasional promotion.

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Maybe you'd even have the pride of seeing your kids work at the

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same company.

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That world has changed.

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And for many, the change has been painful.

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I've seen it in the shuttered windows of once-booming factories,

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in the vacant storefronts on once-busy main streets.

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I've heard it in the frustrations of Americans who've seen their

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paychecks dwindle or their jobs disappear.

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Proud men and women who feel like the rules have been changed in

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the middle of the game.

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They're right.

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The rules have changed.

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In a single generation, revolutions in technology have

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transformed the way we live, work, and do business.

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Steel mills that once needed 1,000 workers can now do the

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same work with 100.

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Today, just about any company can set up shop, hire workers,

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and sell their products wherever there's an Internet connection.

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Meanwhile, nations like China and India realized that with some

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changes of their own, they could compete in this new world.

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And so they started educating their children earlier and longer,

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with greater emphasis on math and science.

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They're investing in research and new technologies.

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Just recently, China became the home to the world's largest

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private solar research facility and the world's fastest computer.

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So, yes, the world has changed.

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The competition for jobs is real.

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But this shouldn't discourage us.

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It should challenge us.

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Remember, for all the hits we've taken these last few years,

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for all the naysayers predicting our decline,

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America still has the largest, most prosperous economy in the world.

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No workers are more productive than ours.

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No country has more successful companies or grants more patents to inventors and entrepreneurs.

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We're the home to the world's best colleges and universities, where more students come

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to study than any place on Earth.

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What's more, we are the first nation to be founded for the sake of an idea.

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The idea that each of us deserves the chance to shape our own destiny.

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That's why centuries of pioneers and immigrants have risked

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everything to come here.

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That's why our students don't just memorize equations,

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but answer questions like, what do you think of that idea?

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What would you change about the world?

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What do you want to be when you grow up?

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The future is ours to win.

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But to get there, we can't just stand still.

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As Robert Kennedy told us, the future is not a gift.

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It is an achievement.

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Sustaining the American Dream has never been about standing pat.

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It has required each generation to sacrifice and struggle and

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meet the demands of a new age.

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And now it's our turn.

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We know what it takes to compete for the jobs and industries of

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our time, we need to out-innovate, out-educate,

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and out-build the rest of the world.

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We have to make America the best place on Earth to do business.

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We need to take responsibility for our deficit and reform our government.

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That's how our people will prosper.

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That's how we'll win the future.

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And tonight I'd like to talk about how we get there.

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The first step in winning the future is encouraging American innovation.

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None of us can predict with certainty what the next big industry will be,

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or where the new jobs will come from.

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Thirty years ago, we couldn't know that something called the

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Internet would lead to an economic revolution.

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What we can do, what America does better than anyone else,

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is spark the creativity and imagination of our people.

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We're the nation that put cars in driveways and computers in

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offices, the nation of Edison and the Wright brothers,

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of Google and Facebook.

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In America, innovation doesn't just change our lives,

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it is how we make our living.

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Our free enterprise system is what drives innovation.

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But because it's not always profitable for companies to

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invest in basic research, throughout our history,

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our government has provided cutting-edge scientists and

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inventors with the support that they need.

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That's what planted the seeds for the Internet.

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That's what helped make possible things like computer chips and GPS.

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Just think of all the good jobs, from manufacturing to retail,

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that have come from these breakthroughs.

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And half a century ago, when the Soviets beat us into space with

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the launch of a satellite called Sputnik,

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we had no idea how we would beat them to the moon.

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The science wasn't even there yet.

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NASA didn't exist.

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But after investing in better research and education,

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we didn't just surpass the Soviets.

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We unleashed a wave of innovation that created new

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industries and millions of new jobs.

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This is our generation's Sputnik moment.

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Two years ago, I said that we needed to reach a level of

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research and development we haven't seen since the height

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of the space race.

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And in a few weeks, I will be sending a budget to Congress that

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helps us meet that goal.

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We'll invest in biomedical research, information technology,

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and especially clean energy technology.

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An investment that will strengthen our security,

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protect our planet, and create countless new jobs for our people.

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Already we're seeing the promise of renewable energy.

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Robert and Gary Allen are brothers who run a small

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Michigan roofing company.

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After September 11th, they volunteered their best roofers

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to help repair the Pentagon.

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But half of their factory went unused,

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and the recession hit them hard.

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Today, with the help of a government loan,

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that empty space is being used to manufacture solar shingles

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that are being sold all across the country.

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In Robert's words, we reinvented ourselves.

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That's what Americans have done for over 200 years.

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Reinvented ourselves.

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And to spur on more success stories like the Allen brothers,

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we've begun to reinvent our energy policy.

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We're not just handing out money.

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We're issuing a challenge.

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We're telling America's scientists and engineers that if

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If they assemble teams of the best minds in their fields and focus on the hardest problems

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in clean energy, we'll fund the Apollo projects of our time.

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At the California Institute of Technology, they're developing a way to turn sunlight

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and water into fuel for our cars.

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At Oak Ridge National Laboratory, they're using supercomputers to get a lot more power

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out of our nuclear facilities.

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With more research and incentives, we can break our dependence on oil with biofuels and

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become the first country to have a million electric vehicles on the road by 2015.

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We need to get behind this innovation The President is the only way to get into this innovation We need to get behind this innovation

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And to help pay for it, I'm asking Congress to eliminate the

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billions in taxpayer dollars we currently give to oil companies.

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I don't know if you've noticed, but they're doing just fine on their own.

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So instead of subsidizing yesterday's energy,

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let's invest in tomorrow's.

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Now, clean energy breakthroughs will only translate into clean

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energy jobs if businesses know there will be a market for what

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they're selling.

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So tonight, I challenge you to join me in setting a new goal.

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By 2035, 80 percent of America's electricity will come from

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clean energy sources.

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Some folks want wind and solar.

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Others want nuclear, clean coal, and natural gas.

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To meet this goal, we will need them all.

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And I urge Democrats and Republicans to work together to make it happen.

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Thank you.

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Maintaining our leadership in research and technology is crucial

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to America's success.

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But if we want to win the future, if we want innovation to produce

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jobs in America and not overseas, then we also have to win the

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race to educate our kids.

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Think about it.

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Over the next 10 years, nearly half of all new jobs will require

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education that goes beyond a high school education.

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And yet, as many as a quarter of our students aren't even

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finishing high school.

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The quality of our math and science education lags behind

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many other nations.

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America has fallen to ninth in the proportion of young people

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with a college degree.

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And so the question is whether all of us, as citizens and as

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as parents, are willing to do what's necessary to give every

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child a chance to succeed.

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That responsibility begins not in our classrooms,

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but in our homes and communities.

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It's family that first instills the love of learning in a child.

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Only parents can make sure the TV is turned off and homework

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gets done.

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We need to teach our kids that it's not just the winner of the

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Super Bowl who deserves to be celebrated,

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but the winner of the Science Fair.

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We need to teach them that success is not a function of fame or PR, but of hard work

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and discipline.

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Our schools share this responsibility.

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When a child walks into a classroom,

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it should be a place of high expectations

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and high performance.

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But too many schools don't meet this test.

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That's why instead of just pouring money into a system

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that's not working, we launched a competition called

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Race to the Top.

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To all 50 states, we said, if you show us the most innovative

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plans to improve teacher quality and student achievement,

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we'll show you the money.

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Race to the Top is the most meaningful reform of our public

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schools in a generation.

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For less than 1 percent of what we spend on education each year,

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it has led over 40 states to raise their standards for

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teaching and learning.

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And these standards were developed, by the way, not by

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Washington, but by Republican and Democratic governors

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throughout the country.

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And Race to the Top should be the approach we follow this year as we

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replace No Child Left Behind with a law that's more flexible and

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focused on what's best for our kids.

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You see, we know what's possible from our children when reform

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isn't just a top-down mandate, but the work of local teachers and

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principals, school boards and communities.

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Take a school like Bruce Randolph in Denver.

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Three years ago, it was rated one of the worst schools in Colorado,

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located on turf between two rival gangs.

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But last May, 97 percent of the seniors received their diploma.

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Most will be the first in their families to go to college.

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And after the first year of the school's transformation,

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the principal who made it possible wiped away tears when

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a student said, thank you, Ms. Waters,

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for showing that we are smart and we can make it.

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That's what good schools can do.

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And we want good schools all across the country.

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Let's also remember that after parents,

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the biggest impact on a child's success comes from the man or

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woman at the front of the classroom.

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In South Korea, teachers are known as nation-builders.

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Here in America, it's time we treated the people who educate

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our children with the same level of respect.

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We want to reward good teachers and stop making excuses for bad ones.

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And over the next 10 years, with so many baby boomers retiring from our classrooms,

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we want to prepare 100,000 new teachers in the fields of science and technology and engineering and math.

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In fact, to every young person listening tonight who's

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contemplating their career choice, if you want to make a

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difference in the life of our nation,

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if you want to make a difference in the life of a child,

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become a teacher.

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Your country needs you.

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And that's why we've ended the unwarranted taxpayer subsidies that went to banks and used the savings to make college affordable for millions of students.

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Of course, the education race doesn't end with a high school diploma. To compete, higher education must be within the reach of every American.

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taxpayer subsidies that went to banks and used the savings to

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make college affordable for millions of students.

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And this year, I asked Congress to go further and make permanent

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our tuition tax credit worth $10,000 for four years of college.

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It's the right thing to do.

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Because people need to be able to train for new jobs and careers

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today's fast-changing economy.

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We're also revitalizing America's community colleges.

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Last month, I saw the promise of these schools at Forsyth Tech in

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North Carolina.

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Many of the students there used to work in the surrounding

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factories that have since left town.

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One mother of two, a woman named Kathy Proctor,

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had worked in the furniture industry since she was 18 years old.

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And she told me she's earning her degree in biotechnology now,

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at 55 years old, not just because the furniture jobs are gone,

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but because she wants to inspire her children to pursue their

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dreams, too.

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As Kathy said, I hope it tells them to never give up.

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If we take these steps, if we raise expectations for every

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child and give them the best possible chance of an education

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from the day they are born until the last job they take.

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We will reach the goal that I set two years ago.

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By the end of the decade, America will once again have the highest

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proportion of college graduates in the world.

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One last point about education.

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Today there are hundreds of thousands of students excelling

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in our schools who are not American citizens.

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Some are the children of undocumented workers who had

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nothing to do with the actions of their parents.

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They grew up as Americans and pledge allegiance to our flag,

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and yet they live every day with the threat of deportation.

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Others come here from abroad to study in our colleges and

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universities, but as soon as they obtain advanced degrees,

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we send them back home to compete against us.

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It makes no sense.

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00:25:36,550 --> 00:25:39,890
Now, I strongly believe that we should take on once and for all

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00:25:39,890 --> 00:25:42,290
the issue of illegal immigration.

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And I am prepared to work with Republicans and Democrats to

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protect our borders, enforce our laws,

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and address the millions of undocumented workers who are now

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living in the shadows.

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I know that debate will be difficult.

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I know it will take time.

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But tonight, let's agree to make that effort.

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And let's stop expelling talented, responsible young people who could be staffing our research

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00:26:19,010 --> 00:26:23,410
labs or starting a new business who could be further enriching this nation.

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The third step in winning the future is rebuilding America.

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To attract new businesses to our shores,

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00:26:39,050 --> 00:26:41,970
we need the fastest, most reliable ways to move people,

355
00:26:41,970 --> 00:26:46,010
goods and information from high-speed rail to high-speed Internet.

356
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Our infrastructure used to be the best, but our lead has slipped.

357
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South Korean homes now have greater Internet access than we do.

358
00:27:02,070 --> 00:27:04,810
Countries in Europe and Russia invest more in their roads and

359
00:27:04,810 --> 00:27:08,170
railways than we do.

360
00:27:08,170 --> 00:27:12,070
China is building faster trains and newer airports.

361
00:27:12,070 --> 00:27:14,350
Meanwhile, when our own engineers graded our nation's

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00:27:14,350 --> 00:27:21,550
infrastructure, they gave us a D. We have to do better.

363
00:27:21,550 --> 00:27:25,150
America is the nation that built the Transcontinental Railroad,

364
00:27:25,150 --> 00:27:27,790
brought electricity to rural communities,

365
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constructed the interstate highway system.

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The jobs created by these projects didn't just come from

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laying down track or pavement.

368
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They came from businesses that opened near a town's new train

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station or the new off-ramp.

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00:27:44,850 --> 00:27:49,250
So over the last two years, we've begun rebuilding for the 21st century,

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a project that has meant thousands of good jobs for the hard-hit

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00:27:52,510 --> 00:27:54,250
construction industry.

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And tonight, I'm proposing that we redouble those efforts.

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We'll put more Americans to work repairing crumbling roads and

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00:28:09,490 --> 00:28:13,990
bridges. We'll make sure this is fully paid for,

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00:28:13,990 --> 00:28:17,790
attract private investment, and pick projects based what's best

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00:28:17,790 --> 00:28:21,850
for the economy, not politicians.

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Within 25 years, our goal is to give 80 percent of Americans

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00:28:25,030 --> 00:28:27,030
access to high-speed rail.

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00:28:32,750 --> 00:28:35,690
This could allow you to go places in half the time it takes

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to travel by car.

382
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For some trips, it will be faster than flying,

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without the pat-down.

384
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As we speak, routes in California and the Midwest

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are already underway.

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Within the next five years, we'll make it possible for

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businesses to deploy the next generation of high-speed

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wireless coverage to 98 percent of all Americans.

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This isn't just about, this isn't about faster

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internet or fewer dropped calls.

391
00:29:11,290 --> 00:29:15,250
It's about connecting every part of America to the digital age.

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It's about a rural community in Iowa or Alabama where farmers

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00:29:18,950 --> 00:29:21,530
and small business owners will be able to sell their products all

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00:29:21,530 --> 00:29:23,650
over the world.

395
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It's about a firefighter who can download the design of a burning

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00:29:26,230 --> 00:29:29,090
building onto a handheld device.

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00:29:29,090 --> 00:29:32,530
A student who can take classes with a digital textbook.

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Or a patient who can have face-to-face video chats with

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her doctor.

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All these investments in innovation, education,

401
00:29:42,350 --> 00:29:46,390
and infrastructure will make America a better place to do

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00:29:46,390 --> 00:29:50,490
business and create jobs.

403
00:29:50,490 --> 00:29:53,490
But to help our companies compete, we also have to knock

404
00:29:53,490 --> 00:29:58,510
down barriers that stand in the way of their success.

405
00:29:58,510 --> 00:30:03,210
For example, over the years, a parade of lobbyists has rigged

406
00:30:03,210 --> 00:30:08,410
the tax code to benefit particular companies and industries.

407
00:30:08,410 --> 00:30:11,510
Those with accountants or lawyers to work the system can end up

408
00:30:11,510 --> 00:30:14,710
paying no taxes at all.

409
00:30:14,710 --> 00:30:17,170
But all the rest are hit with one of the highest corporate tax

410
00:30:17,170 --> 00:30:19,850
rates in the world.

411
00:30:19,850 --> 00:30:22,650
It makes no sense, and it has to change.

412
00:30:22,650 --> 00:30:38,810
So tonight I'm asking Democrats and Republicans to simplify the system, get rid of the loopholes,

413
00:30:38,810 --> 00:30:43,230
level the playing field, and use the savings to lower the corporate tax rate for the first

414
00:30:43,230 --> 00:30:45,810
time in 25 years without adding to our deficit.

415
00:30:45,810 --> 00:30:47,810
It can be done.

416
00:30:52,650 --> 00:31:07,000
Thank you The President President Biden has a great deal of economic growth in the world The President President Biden is to help businesses sell more products abroad

417
00:31:07,000 --> 00:31:11,500
We set a goal of doubling our exports by 2014.

418
00:31:11,500 --> 00:31:16,560
Because the more we export, the more jobs we create here at home.

419
00:31:16,560 --> 00:31:19,200
Already our exports are up.

420
00:31:19,200 --> 00:31:21,860
Recently, we signed agreements with India and China that will

421
00:31:21,860 --> 00:31:27,820
support more than 250,000 jobs here in the United States.

422
00:31:27,820 --> 00:31:30,360
And last month, we finalized a trade agreement with South Korea

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00:31:30,360 --> 00:31:34,620
that will support at least 70,000 American jobs.

424
00:31:34,620 --> 00:31:38,920
This agreement has unprecedented support from business and labor,

425
00:31:38,920 --> 00:31:40,920
Democrats and Republicans.

426
00:31:40,920 --> 00:31:44,000
And I ask this Congress to pass it as soon as possible.

427
00:31:44,000 --> 00:31:56,200
Now, before I took office, I made it clear that we would enforce our trade agreements,

428
00:31:56,200 --> 00:32:01,280
and that I would only sign deals that keep faith with American workers and promote American

429
00:32:01,280 --> 00:32:03,240
jobs.

430
00:32:03,240 --> 00:32:05,300
That's what we did with Korea.

431
00:32:05,300 --> 00:32:09,860
And that's what I intend to do as we pursue agreements with Panama and Colombia and continue

432
00:32:09,860 --> 00:32:11,940
our Asia-Pacific and global trade talks.

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00:32:14,000 --> 00:32:27,280
To reduce barriers to growth and investment, I've ordered a review of government regulations.

434
00:32:27,280 --> 00:32:32,440
When we find rules that put an unnecessary burden on businesses, we will fix them.

435
00:32:32,440 --> 00:32:44,440
But I will not hesitate to create or enforce common-sense safeguards to protect the American

436
00:32:44,440 --> 00:32:46,440
people.

437
00:32:50,440 --> 00:32:53,440
That's what we've done in this country for more than a century.

438
00:32:53,440 --> 00:33:01,440
It's why our food is safe to eat, our water is safe to drink, and our air is safe to breathe.

439
00:33:01,440 --> 00:33:05,840
It's why we have speed limits and child labor laws.

440
00:33:05,840 --> 00:33:09,600
It's why last year we put in place consumer protections against

441
00:33:09,600 --> 00:33:13,040
hidden fees and penalties by credit card companies,

442
00:33:13,040 --> 00:33:16,040
and new rules to prevent another financial crisis.

443
00:33:18,040 --> 00:33:21,540
And it's why we passed reform that finally prevents the health

444
00:33:21,540 --> 00:33:24,040
insurance industry from exploiting patients.

445
00:33:31,440 --> 00:33:47,340
Now, I have heard rumors that a few of you still have concerns about our new health care

446
00:33:47,340 --> 00:33:49,940
law.

447
00:33:49,940 --> 00:33:59,220
So let me be the first to say that anything can be improved.

448
00:33:59,220 --> 00:34:02,420
If you have ideas about how to improve this law by making care

449
00:34:02,420 --> 00:34:08,280
better or more affordable, I am eager to work with you.

450
00:34:08,280 --> 00:34:10,480
We can start right now by correcting a flaw in the

451
00:34:10,480 --> 00:34:13,680
legislation that has placed an unnecessary bookkeeping burden on

452
00:34:13,680 --> 00:34:14,760
small businesses.

453
00:34:29,220 --> 00:34:39,080
What I'm not willing to do is go back to the days when insurance companies could deny someone

454
00:34:39,080 --> 00:34:42,920
coverage because of a preexisting condition.

455
00:34:42,920 --> 00:34:59,060
I'm not willing to tell James Howard, a brain cancer patient from Texas, that it's

456
00:34:59,060 --> 00:35:05,680
treatment might not be covered. I'm not willing to tell Jim Houser, a small businessman from

457
00:35:05,680 --> 00:35:13,300
Oregon, that he has to go back to paying $5,000 more to cover his employees. As we speak,

458
00:35:13,300 --> 00:35:18,280
this law is making prescription drugs cheaper for seniors and giving uninsured students

459
00:35:18,280 --> 00:35:23,080
a chance to stay on their parents' coverage.

460
00:35:23,080 --> 00:35:31,040
So I say to this chamber tonight, instead of refighting the battles of the last two years,

461
00:35:31,260 --> 00:35:33,860
let's fix what needs fixing and let's move forward.

462
00:35:49,140 --> 00:35:50,980
Now, the final critical step.

463
00:35:53,080 --> 00:35:59,980
in winning the future is to make sure we aren't buried under a mountain of debt.

464
00:35:59,980 --> 00:36:06,040
We are living with a legacy of deficit spending that began almost a decade ago.

465
00:36:06,040 --> 00:36:08,780
And in the wake of the financial crisis,

466
00:36:08,780 --> 00:36:12,120
some of that was necessary to keep credit flowing, save jobs,

467
00:36:12,120 --> 00:36:15,840
and put money in people's pockets.

468
00:36:15,840 --> 00:36:18,720
But now that the worst of the recession is over,

469
00:36:18,720 --> 00:36:24,020
we have to confront the fact that our government spends more than it takes in.

470
00:36:24,020 --> 00:36:27,360
That is not sustainable.

471
00:36:27,360 --> 00:36:31,280
Every day, families sacrifice to live within their means.

472
00:36:31,280 --> 00:36:33,660
They deserve a government that does the same.

473
00:36:48,720 --> 00:36:57,280
So tonight, I am proposing that starting this year, we freeze annual domestic spending for

474
00:36:57,280 --> 00:37:01,220
the next five years.

475
00:37:01,220 --> 00:37:06,880
This would reduce the deficit by more than $400 billion over the next decade, and will

476
00:37:06,880 --> 00:37:12,960
bring discretionary spending to the lowest share of our economy since Dwight Eisenhower

477
00:37:12,960 --> 00:37:15,880
was President.

478
00:37:15,880 --> 00:37:19,880
This freeze will require painful cuts.

479
00:37:19,880 --> 00:37:22,220
Already we've frozen the salaries of hardworking federal

480
00:37:22,220 --> 00:37:25,320
employees for the next two years.

481
00:37:25,320 --> 00:37:28,220
I propose cuts to things I care deeply about,

482
00:37:28,220 --> 00:37:31,120
like community action programs.

483
00:37:31,120 --> 00:37:33,440
The Secretary of Defense has also agreed to cut tens of

484
00:37:33,440 --> 00:37:37,240
billions of dollars in spending that he and his generals

485
00:37:37,240 --> 00:37:39,240
believe our military can do without.

486
00:37:39,240 --> 00:37:49,320
I recognize that some in this chamber have already proposed deeper cuts, and I'm willing

487
00:37:49,320 --> 00:37:53,200
to eliminate whatever we can honestly afford to do without.

488
00:37:53,200 --> 00:37:58,120
But let's make sure that we're not doing it on the backs of our most vulnerable citizens.

489
00:37:58,120 --> 00:38:11,560
And let's make sure that what we're cutting is really excess weight.

490
00:38:11,560 --> 00:38:16,560
Cutting the deficit by gutting our investments in innovation and education is like lightening

491
00:38:16,560 --> 00:38:20,680
an overloaded airplane by removing its engine.

492
00:38:20,680 --> 00:38:25,160
It may make you feel like you're flying high at first, but it won't take long before you

493
00:38:25,160 --> 00:38:29,800
feel the impact.

494
00:38:29,800 --> 00:38:33,800
Now, most of the cuts in savings I proposed only address annual

495
00:38:33,800 --> 00:38:37,300
domestic spending, which represents a little more than

496
00:38:37,300 --> 00:38:40,600
12 percent of our budget.

497
00:38:40,600 --> 00:38:44,360
To make further progress, we have to stop pretending that

498
00:38:44,360 --> 00:38:48,760
cutting this kind of spending alone will be enough.

499
00:38:48,760 --> 00:38:49,760
It won't.

500
00:38:55,160 --> 00:39:01,600
The bipartisan fiscal commission I created last year made this crystal clear.

501
00:39:01,600 --> 00:39:06,260
I don't agree with all of their proposals, but they made important progress.

502
00:39:06,260 --> 00:39:11,000
And their conclusion is that the only way to tackle our deficit is to cut excessive spending

503
00:39:11,000 --> 00:39:17,160
wherever we find it, in domestic spending, defense spending, health care spending, and

504
00:39:17,160 --> 00:39:19,400
spending through tax breaks and loopholes.

505
00:39:25,160 --> 00:39:30,560
This means further reducing health care costs, including programs like Medicare and Medicaid,

506
00:39:30,680 --> 00:39:33,360
which are the single biggest contributor to our long-term deficit.

507
00:39:34,580 --> 00:39:38,540
The health insurance law we passed last year will slow these rising costs,

508
00:39:38,700 --> 00:39:44,400
which is part of the reason that nonpartisan economists have said that repealing the health care law

509
00:39:44,400 --> 00:39:47,340
would add a quarter of a trillion dollars to our deficit.

510
00:39:49,040 --> 00:39:52,440
Still, I'm willing to look at other ideas to bring down costs,

511
00:39:52,440 --> 00:39:56,440
including one that Republicans suggested last year,

512
00:39:56,440 --> 00:39:59,440
medical malpractice reform to rein in frivolous lawsuits.

513
00:40:13,440 --> 00:40:17,440
To put us on solid ground, we should also find a bipartisan

514
00:40:17,440 --> 00:40:21,440
solution to strengthen Social Security for future generations.

515
00:40:22,440 --> 00:40:32,040
We must do it without putting at risk current retirees,

516
00:40:32,040 --> 00:40:35,540
the most vulnerable, or people with disabilities,

517
00:40:35,540 --> 00:40:38,940
without slashing benefits for future generations,

518
00:40:38,940 --> 00:40:41,780
and without subjecting Americans' guaranteed retirement

519
00:40:41,780 --> 00:40:44,040
income to the whims of the stock market.

520
00:40:44,040 --> 00:40:51,040
And if we truly care about our deficit,

521
00:40:51,040 --> 00:40:56,040
we simply can't afford a permanent extension of the tax

522
00:40:56,040 --> 00:40:59,040
cuts for the wealthiest 2 percent of Americans.

523
00:40:59,040 --> 00:41:16,400
Before we take money away from our schools or scholarships away from our students, we

524
00:41:16,400 --> 00:41:19,900
should ask millionaires to give up their tax break.

525
00:41:19,900 --> 00:41:22,720
It's not a matter of punishing their success.

526
00:41:22,720 --> 00:41:24,640
It's about promoting America's success.

527
00:41:29,040 --> 00:41:35,880
In fact, the best thing we could do on taxes for all Americans is to simplify the individual

528
00:41:35,880 --> 00:41:41,940
tax code.

529
00:41:41,940 --> 00:41:50,480
This will be a tough job, but members of both parties have expressed an interest in doing

530
00:41:50,480 --> 00:41:54,880
this, and I am prepared to join them.

531
00:41:54,880 --> 00:42:01,620
So now is the time to act.

532
00:42:01,620 --> 00:42:07,180
Now is the time for both sides and both houses of Congress,

533
00:42:07,180 --> 00:42:11,680
Democrats and Republicans, to forge a principled compromise

534
00:42:11,680 --> 00:42:13,980
that gets the job done.

535
00:42:13,980 --> 00:42:17,640
If we make the hard choices now to rein in our deficits,

536
00:42:17,640 --> 00:42:22,540
we can make the investments we need to win the future.

537
00:42:22,540 --> 00:42:24,540
Let me take this one step further.

538
00:42:24,540 --> 00:42:28,240
We shouldn't just give our people a government that's more affordable.

539
00:42:28,240 --> 00:42:33,240
We should give them a government that's more competent and more efficient.

540
00:42:33,240 --> 00:42:36,440
We can't win the future with a government of the past.

541
00:42:39,780 --> 00:42:43,080
We live and do business in the information age.

542
00:42:43,080 --> 00:42:50,280
But the last major reorganization of the government happened in the age of black and white TV.

543
00:42:50,280 --> 00:42:55,580
There are 12 different agencies that deal with exports.

544
00:42:55,580 --> 00:43:00,640
There are at least five different agencies that deal with housing policy.

545
00:43:00,640 --> 00:43:02,480
Then there's my favorite example.

546
00:43:02,480 --> 00:43:05,640
The Interior Department is in charge of salmon while they're in

547
00:43:05,640 --> 00:43:09,520
freshwater, but the Commerce Department handles them when

548
00:43:09,520 --> 00:43:13,220
they're in saltwater.

549
00:43:13,220 --> 00:43:15,920
I hear it gets even more complicated once they're smoked.

550
00:43:20,280 --> 00:43:34,520
Now, we've made great strides over the last two years in using

551
00:43:34,520 --> 00:43:37,620
technology and getting rid of waste.

552
00:43:37,620 --> 00:43:40,580
Veterans can now download their electronic medical records with a

553
00:43:40,580 --> 00:43:42,820
click of the mouse.

554
00:43:42,820 --> 00:43:45,220
We're selling acres of federal office space that hasn't been

555
00:43:45,220 --> 00:43:46,820
used in years.

556
00:43:46,820 --> 00:43:50,460
And we'll cut through red tape to get rid of more.

557
00:43:50,460 --> 00:43:53,460
But we need to think bigger.

558
00:43:53,460 --> 00:43:55,620
In the coming months, my administration will develop a

559
00:43:55,620 --> 00:43:59,160
proposal to merge, consolidate and reorganize the federal

560
00:43:59,160 --> 00:44:01,860
government in a way that best serves the goal of a more

561
00:44:01,860 --> 00:44:03,920
competitive America.

562
00:44:03,920 --> 00:44:06,780
I will submit that proposal to Congress for a vote,

563
00:44:06,780 --> 00:44:08,280
and we will push to get it passed.

564
00:44:16,820 --> 00:44:27,060
In the coming year, we'll also work to rebuild people's faith in the institution of government.

565
00:44:27,060 --> 00:44:31,600
Because you deserve to know exactly how and where your tax dollars are being spent, you'll

566
00:44:31,600 --> 00:44:37,140
be able to go to a website and get that information for the very first time in history. Because

567
00:44:37,140 --> 00:44:42,240
you deserve to know when your elected officials are meeting with lobbyists. I asked Congress

568
00:44:42,240 --> 00:44:44,980
to do what the White House has already done.

569
00:44:44,980 --> 00:44:47,840
Put that information online.

570
00:44:47,840 --> 00:44:50,400
And because the American people deserve to know that special

571
00:44:50,400 --> 00:44:54,900
interests aren't larding up legislation with pet projects,

572
00:44:54,900 --> 00:44:57,740
both parties in Congress should know this.

573
00:44:57,740 --> 00:45:01,480
If a bill comes to my desk with earmarks inside,

574
00:45:01,480 --> 00:45:03,680
I will veto it.

575
00:45:03,680 --> 00:45:04,680
I will veto it.

576
00:45:12,240 --> 00:45:25,240
The 21st century government that's open and competent,

577
00:45:25,240 --> 00:45:28,940
a government that lives within its means,

578
00:45:28,940 --> 00:45:35,080
an economy that's driven by new skills and new ideas.

579
00:45:35,080 --> 00:45:38,440
Our success in this new and changing world will require

580
00:45:38,440 --> 00:45:44,640
reform, responsibility, and innovation.

581
00:45:44,640 --> 00:45:47,780
It will also require us to approach that world with a new

582
00:45:47,780 --> 00:45:52,700
level of engagement in our foreign affairs.

583
00:45:52,700 --> 00:45:56,600
Just as jobs and businesses can now race across borders,

584
00:45:56,600 --> 00:46:01,000
so can new threats and new challenges.

585
00:46:01,000 --> 00:46:04,480
No single wall separates east and west.

586
00:46:04,480 --> 00:46:09,180
And no one rival superpower is aligned against us.

587
00:46:09,180 --> 00:46:12,980
And so we must defeat determined enemies wherever they are,

588
00:46:12,980 --> 00:46:15,820
and build coalitions that cut across lines of region and race

589
00:46:15,820 --> 00:46:19,420
and religion.

590
00:46:19,420 --> 00:46:23,140
And America's moral example must always shine for all who yearn

591
00:46:23,140 --> 00:46:34,450
for freedom and justice and dignity And because we begun this work tonight we can say that American leadership has been renewed and America standing

592
00:46:34,450 --> 00:46:37,750
has been restored.

593
00:46:37,750 --> 00:46:41,250
Look to Iraq, where nearly 100,000 of our brave men and

594
00:46:41,250 --> 00:46:44,650
women have left with their heads held high.

595
00:46:53,650 --> 00:47:17,950
American combat patrols have ended, violence is down, and a new government has been formed.

596
00:47:17,950 --> 00:47:22,430
This year, our civilians will forge a lasting partnership with the Iraqi people, while we

597
00:47:22,430 --> 00:47:26,930
finished the job of bringing our troops out of Iraq.

598
00:47:26,930 --> 00:47:30,030
America's commitment has been kept.

599
00:47:30,030 --> 00:47:32,030
The Iraq War is coming to an end.

600
00:47:39,230 --> 00:47:42,130
Of course, as we speak, al Qaeda and their affiliates

601
00:47:42,130 --> 00:47:45,630
continue to plan attacks against us.

602
00:47:45,630 --> 00:47:48,990
Thanks to our intelligence and law enforcement professionals,

603
00:47:48,990 --> 00:47:53,890
We're disrupting plots and securing our cities and skies.

604
00:47:53,890 --> 00:47:57,330
And as extremists try to inspire acts of violence within our

605
00:47:57,330 --> 00:48:02,030
borders, we are responding with the strength of our communities,

606
00:48:02,030 --> 00:48:04,930
with respect for the rule of law,

607
00:48:04,930 --> 00:48:08,330
and with the conviction that American Muslims are a part of

608
00:48:08,330 --> 00:48:09,690
our American family.

609
00:48:18,990 --> 00:48:31,890
We've also taken the fight to al Qaeda and their allies abroad.

610
00:48:31,890 --> 00:48:38,170
In Afghanistan, our troops have taken Taliban strongholds and trained Afghan security forces.

611
00:48:38,170 --> 00:48:40,150
Our purpose is clear.

612
00:48:40,150 --> 00:48:45,710
By preventing the Taliban from reestablishing a stranglehold over the Afghan people, we

613
00:48:45,710 --> 00:48:51,910
will deny al Qaeda the safe haven that served as a launching pad for 9-11.

614
00:48:51,910 --> 00:48:54,370
Thanks to our heroic troops and civilians,

615
00:48:54,370 --> 00:48:59,270
fewer Afghans are under the control of the insurgency.

616
00:48:59,270 --> 00:49:01,550
There will be tough fighting ahead,

617
00:49:01,550 --> 00:49:05,850
and the Afghan government will need to deliver better governance.

618
00:49:05,850 --> 00:49:08,850
But we are strengthening the capacity of the Afghan people and

619
00:49:08,850 --> 00:49:12,450
building an enduring partnership with them.

620
00:49:12,450 --> 00:49:15,310
This year, we will work with nearly 50 countries to begin a

621
00:49:15,310 --> 00:49:18,010
transition to an Afghan lead.

622
00:49:18,010 --> 00:49:21,010
And this July, we will begin to bring our troops home.

623
00:49:34,450 --> 00:49:37,610
In Pakistan, al Qaeda's leadership is under more

624
00:49:37,610 --> 00:49:41,370
pressure than at any point since 2001.

625
00:49:41,370 --> 00:49:43,870
Their leaders and operatives are being removed from the

626
00:49:43,870 --> 00:49:49,710
battlefield. Their safe havens are shrinking. And we've sent a message from the Afghan border

627
00:49:49,710 --> 00:49:54,730
to the Arabian Peninsula to all parts of the globe. We will not relent, we will not waver,

628
00:49:54,730 --> 00:49:56,150
and we will defeat you.

629
00:50:13,870 --> 00:50:21,430
American leadership can also be seen in the effort to secure the worst weapons of war.

630
00:50:21,430 --> 00:50:26,830
Because Republicans and Democrats approved the New START Treaty, far fewer nuclear weapons

631
00:50:26,830 --> 00:50:33,590
and launchers will be deployed. Because we rallied the world, nuclear materials are being

632
00:50:33,590 --> 00:50:40,590
locked down on every continent so they never fall into the hands of terrorists. Because

633
00:50:40,590 --> 00:50:45,250
of a diplomatic effort to insist that Iran meet its obligations.

634
00:50:45,250 --> 00:50:48,390
The Iranian government now faces tougher sanctions,

635
00:50:48,390 --> 00:50:51,590
tighter sanctions than ever before.

636
00:50:51,590 --> 00:50:53,930
And on the Korean Peninsula, we stand with our ally,

637
00:50:53,930 --> 00:50:57,890
South Korea, and insist that North Korea keeps its commitment

638
00:50:57,890 --> 00:50:59,890
to abandon nuclear weapons.

639
00:50:59,890 --> 00:51:14,730
This is just a part of how we're shaping a world that favors peace and prosperity.

640
00:51:14,730 --> 00:51:19,750
With our European allies, we revitalized NATO and increased our cooperation on everything

641
00:51:19,750 --> 00:51:23,490
from counterterrorism to missile defense.

642
00:51:23,490 --> 00:51:29,430
We've reset our relationship with Russia, strengthened Asian alliances, built new partnerships with

643
00:51:29,430 --> 00:51:32,190
nations like India.

644
00:51:32,190 --> 00:51:35,370
This March, I will travel to Brazil, Chile and El Salvador to

645
00:51:35,370 --> 00:51:40,290
forge new alliances across the Americas.

646
00:51:40,290 --> 00:51:43,530
Around the globe, we're standing with those who take

647
00:51:43,530 --> 00:51:48,030
responsibility, helping farmers grow more food,

648
00:51:48,030 --> 00:51:51,270
supporting doctors who care for the sick,

649
00:51:51,270 --> 00:51:54,290
and combating the corruption that can rot a society and rob

650
00:51:54,290 --> 00:51:57,870
people of opportunity.

651
00:51:57,870 --> 00:52:04,910
But recent events have shown us that what sets us apart must not just be our power.

652
00:52:04,910 --> 00:52:08,830
It must also be the purpose behind it.

653
00:52:08,830 --> 00:52:15,350
In South Sudan, with our assistance, the people were finally able to vote for independence

654
00:52:15,350 --> 00:52:18,310
after years of war.

655
00:52:18,310 --> 00:52:22,930
Thousands lined up before dawn.

656
00:52:22,930 --> 00:52:26,310
People danced in the streets.

657
00:52:26,310 --> 00:52:30,610
One man who lost four of his brothers at war summed up the scene around him.

658
00:52:30,610 --> 00:52:34,710
This was a battlefield for most of my life, he said.

659
00:52:34,710 --> 00:52:36,210
Now we want to be free.

660
00:52:42,210 --> 00:52:46,430
And we saw that same desire to be free in Tunisia, where the will of the people proved

661
00:52:46,430 --> 00:52:49,990
more powerful than the writ of a dictator.

662
00:52:49,990 --> 00:52:54,490
And tonight, let us be clear, the United States of America stands with the people of Tunisia

663
00:52:54,490 --> 00:52:57,890
and supports the democratic aspirations of all people.

664
00:53:16,050 --> 00:53:22,990
We must never forget that the things we've struggled for and fought for live in the hearts

665
00:53:22,990 --> 00:53:26,030
of people everywhere.

666
00:53:26,030 --> 00:53:29,550
And we must always remember that the Americans who have borne the greatest burden in this

667
00:53:29,550 --> 00:53:32,870
struggle are the men and women who serve our country.

668
00:53:52,990 --> 00:54:18,590
five of the wake-up of daily life.

669
00:54:18,590 --> 00:54:20,730
Tonight, let us speak with one voice,

670
00:54:20,730 --> 00:54:24,330
choice in reaffirming that our nation is united in support of

671
00:54:24,330 --> 00:54:27,330
our troops and their families.

672
00:54:27,330 --> 00:54:30,430
Let us serve them as well as they've served us by giving

673
00:54:30,430 --> 00:54:33,570
them the equipment they need, by providing them with the care

674
00:54:33,570 --> 00:54:36,630
and benefits that they have earned, and by enlisting our

675
00:54:36,630 --> 00:54:41,930
veterans in the great task of building our own nation.

676
00:54:41,930 --> 00:54:45,770
Our troops come from every corner of this country.

677
00:54:45,770 --> 00:54:51,670
Black, white, Latino, Asian, Native American.

678
00:54:51,670 --> 00:54:56,470
They are Christian and Hindu, Jewish and Muslim.

679
00:54:56,470 --> 00:54:59,610
And yes, we know that some of them are gay.

680
00:54:59,610 --> 00:55:03,010
Starting this year, no American will be forbidden from serving

681
00:55:03,010 --> 00:55:05,510
the country they love because of who they love.

682
00:55:15,770 --> 00:55:29,690
And with that change, I call on all our college campuses to open their doors to our military

683
00:55:29,690 --> 00:55:31,990
recruiters and ROTC.

684
00:55:31,990 --> 00:55:35,530
It is time to leave behind the divisive battles of the past.

685
00:55:35,530 --> 00:55:38,530
It is time to move forward as one nation.

686
00:55:45,770 --> 00:55:56,530
We should have no illusions about the work ahead of us.

687
00:55:56,530 --> 00:56:04,410
Reforming our schools, changing the way we use energy, reducing our deficit.

688
00:56:04,410 --> 00:56:07,530
None of this will be easy.

689
00:56:07,530 --> 00:56:10,690
All of it will take time.

690
00:56:10,690 --> 00:56:17,230
And it will be harder because we will argue about everything.

691
00:56:17,230 --> 00:56:24,890
The costs, the details, the letter of every law.

692
00:56:24,890 --> 00:56:28,290
Of course, some countries don't have this problem.

693
00:56:28,290 --> 00:56:30,250
If the central government wants a railroad,

694
00:56:30,250 --> 00:56:35,650
they build a railroad, no matter how many homes get bulldozed.

695
00:56:35,650 --> 00:56:42,290
If they don't want a bad story in the newspaper, it doesn't get written.

696
00:56:42,290 --> 00:56:49,010
And yet, as contentious and frustrating and messy as our democracy can sometimes be, I

697
00:56:49,010 --> 00:56:53,250
know there isn't a person here who would trade places with any other nation on Earth.

698
00:57:05,650 --> 00:57:26,770
We may have differences in policy, but we all believe in the rights enshrined in our

699
00:57:26,770 --> 00:57:29,430
Constitution.

700
00:57:29,430 --> 00:57:34,930
We may have different opinions, but we believe in the same promise that says, this is a place

701
00:57:34,930 --> 00:57:38,270
where you can make it if you try.

702
00:57:38,270 --> 00:57:43,590
We may have different backgrounds, but we believe in the same dream that says this is

703
00:57:43,590 --> 00:57:52,110
a country where anything is possible, no matter who you are, no matter where you come from.

704
00:57:52,110 --> 00:57:56,850
That dream is why I can stand here before you tonight.

705
00:57:56,850 --> 00:58:01,930
That dream is why a working-class kid from Scranton can sit behind me.

706
00:58:04,930 --> 00:58:15,830
That dream is why someone who began by sweeping the floors of his father's Cincinnati bar

707
00:58:15,830 --> 00:58:19,930
can preside as Speaker of the House in the greatest nation on Earth.

708
00:58:34,930 --> 00:58:44,890
That dream, that American dream, is what drove the Allen brothers to reinvent their roofing

709
00:58:44,890 --> 00:58:52,410
company for a new era. It's what drove those students at Forsyth Tech to learn a new skill

710
00:58:52,410 --> 00:59:00,550
and work towards the future. And that dream is the story of a small business owner named

711
00:59:00,550 --> 00:59:04,050
Brandon Fisher.

712
00:59:04,050 --> 00:59:07,510
Brandon started a company in Berlin, Pennsylvania,

713
00:59:07,510 --> 00:59:12,990
that specializes in a new kind of drilling technology.

714
00:59:12,990 --> 00:59:17,010
And one day last summer, he saw the news that halfway across

715
00:59:17,010 --> 00:59:22,490
the world, 33 men were trapped in a Chilean mine,

716
00:59:22,490 --> 00:59:27,490
and no one knew how to save them.

717
00:59:27,490 --> 00:59:29,650
But Brandon thought his company could help.

718
00:59:29,650 --> 00:59:34,690
And so he designed a rescue that would come to be known as Plan B.

719
00:59:34,690 --> 00:59:37,390
His employees worked around the clock to manufacture the

720
00:59:37,390 --> 00:59:39,450
necessary drilling equipment.

721
00:59:39,450 --> 00:59:43,010
And Brandon left for Chile.

722
00:59:43,010 --> 00:59:46,290
Along with others, he began drilling a 2,000-foot hole into

723
00:59:46,290 --> 00:59:54,350
the ground, working three or four days at a time without any sleep.

724
00:59:54,350 --> 01:00:00,350
Thirty-seven days later, Plan B succeeded, and the miners were rescued.

725
01:00:09,950 --> 01:00:12,890
But because he didn't want all the attention,

726
01:00:12,890 --> 01:00:16,150
Brandon wasn't there when the miners emerged.

727
01:00:16,150 --> 01:00:22,050
He had already gone back home, back to work on his next project.

728
01:00:22,050 --> 01:00:25,650
A few years later, one of his employees said of the rescue,

729
01:00:25,650 --> 01:00:29,950
we proved that Center Rock is a little company,

730
01:00:29,950 --> 01:00:31,950
but we do big things.

731
01:00:40,410 --> 01:00:42,910
We do big things.

732
01:00:42,910 --> 01:00:44,710
From the earliest days of our founding,

733
01:00:44,710 --> 01:00:49,410
America has been the story of ordinary people who dare to dream.

734
01:00:49,410 --> 01:00:52,570
That's how we win the future.

735
01:00:52,570 --> 01:00:55,110
We're a nation that says, I might not have a lot of money,

736
01:00:55,110 --> 01:00:58,570
but I have this great idea for a new company.

737
01:00:58,570 --> 01:01:01,110
I might not come from a family of college graduates,

738
01:01:01,110 --> 01:01:05,410
but I will be the first to get my degree.

739
01:01:05,410 --> 01:01:07,170
I might not know those people in trouble,

740
01:01:07,170 --> 01:01:12,410
but I think I can help them, and I need to try.

741
01:01:12,410 --> 01:01:16,650
I'm not sure how we'll reach that better place beyond the horizon,

742
01:01:16,650 --> 01:01:18,910
but I know we'll get there.

743
01:01:18,910 --> 01:01:22,050
I know we will.

744
01:01:22,050 --> 01:01:25,410
We do big things.

745
01:01:25,410 --> 01:01:28,610
The idea of America endures.

746
01:01:28,610 --> 01:01:31,870
Our destiny remains our choice.

747
01:01:31,870 --> 01:01:38,230
And tonight, more than two centuries later, it's because of our people that our future

748
01:01:38,230 --> 01:01:45,050
is hopeful, our journey goes forward, and the state of our union is strong.

749
01:01:45,050 --> 01:01:46,050
Thank you.

750
01:01:46,050 --> 01:01:47,050
God bless you.

751
01:01:47,050 --> 01:01:49,050
And bless the United States of America.
