Well, thats our edition of 60 minutes on cnbc. Im bob simon. Thank you for joining us. [ticking] joining us. This is cnbcs special coverage of the second inauguration of barack obama. From the death threat to the nations economic recovery, the issues that matter most to your money. Here now Tyler Mathisen and john harbaugh. Good morning, everybody, and welcome to cnbcs coverage of the second inauguration of barack obama. The 57th inaugural of an american president. Between a half a million and 800,000 people are estimated to attend todays festivities. Most of them not very close to the capitol where the swearing in will take place. Thats roughly a third of the number who attended president obamas first inauguration four years ago. Once again welcome, everybody. Im Tyler Mathisen joined by cnbcs chief washington correspondent john harwood. Great to be with you on this day of history. Welcome to d. C. Good to see you. The oath of office will take place in about 50 minutes, but today, of course, is all about the ceremony. You probably know this already, yesterday chief Justice John Roberts officially administered the oath in a small, private ceremony in the blue room at the white house as per the constitution. This morning the president and the Vice President attended Church Services with their families at st. Johns church, an Inauguration Day tradition ever since Franklin Roosevelt started it in 1933. President obama arrived at the capitol just a few minutes ago. He will soon be announced to the crowd and seated. Here are the highlights of todays program. Vice President Joe Biden will take the oath of office first administered by Supreme Court associate Justice Sonia sotomayor. And then the crowd will be treated to a musical selection by james taylor and then chief Justice John Roberts will administer the president ial oath of office to mr. Obama. That comes just before noon eastern time. Now, following the president s inaugural address will be another musical selection. This one by Kelly Clarkson, and a poem by richard blanco. Reverend luis leon will give the benediction followed by beyonce. Shes going to sing the National Anthem, she had a baby, and shes going to perform at the super bowl. Not to be upstaged, hampsto pearson is at the capitol. What are you seeing . Beyonce got a much bigger cheer than i did. It was one of the more electric moments that just happened a few minutes ago when she and jayz came in. You just missed the introduction of former president bill clinton and secretary of state Hillary Clinton and former president jimmy carter and wife roslyn. We are just minutes away from the arrival of, of course, the Vice President , jill biden, and the president and first lady and their family. Its exciting. Its electric. Weve got great weather, especially compared to four years or so here, and i have to say before the program sort of settled in, i saw more collegiality on the platform in terms of members of congress, both democrats and republicans, commingling, glad handing each other, coming up to the front of the rail, if you will, looking at the crowd, taking pictures, if you will. Now, if only we can bottle that for the rest of the time here in office. Again, great to be back on this perch again. By the way, in all those inauguration facts that you could look up, the one i thought was kind of amazing, the platform behind me, 10,000 square feet at a cost of 1. 2 million to hold about 1,600 vips. Of course, all the members of congress, the justices, the cabinet, et cetera. So you cant have an inauguration without some kind of a stimulus program. Back to you guys. All right, hampton. Thank you very much. Well be checking in with you again later in our two hours of coverage. Meantime were joined by jared bernstein, former chief economist and Economic Policy adviser to Vice President biden. Hes now a senior fellow at the center on budget and policy priorities, and chuck gabriel, a managing director at Capital Alpha partners. Gentlemen, welcome. Its often said the best day of a president s second term is the first day and it goes downhill from there. What does this president have to do to prove that old saw false . Well, i think it starts with the speech hes about to give, and i think the idea there is not to get too much into the kind of weeds were going to hear in a few weeks in the state of the Union Address but to talk more about his vision for his second term, which is going to involve things like, as we mentioned earlier, getting the deficit on a sustainable path, trying to accomplish some of his investment agenda. Obviously guns are going to be a part of the agenda. Right now the main thing is to kind of stick at that visionary level. Chuck, the president had a pretty good day for his first term on friday before it even started when republicans said they would break that principle of not raising the debt limit unless they had dollar for dollar spending cuts. Tell me what you think that means for the resolution of the debt limit fight, which republicans are going to put that proposal on the floor on wednesday, and the president s prospect for resolving what has looked like an excruciating fight. It will certainly give us a nice market backdrop which is a nice thing to start off the administrations second term. I guess add 60 gain in the dow the first three years and 10 in the second in the last year, but i think that really what that means is that we have a good start, but its all designed on the republican side to try to compel the democrats to come forward with some spending cuts. If theyre willing to do that and if republicans will give the white house one more bite at the apple on some revenues, we could get a deal that could take basically the steps off the table. Jared, do you think we are seeing with that change in republican position the beginning of the end of the debt limit as potential crisis for the markets and the economy . I hope so. If what the republicans are talking about is lets have this debt ceiling skirmish every quarter, every three months, nobody is going to like that, especially the markets, and for very good reason. If what theyre Say Something were not going to play debt ceiling leverage anymore, which has obviously been the president s position, thats good. My feeling is its probably the latter. I think there are enough kind of economic grownups in the room to really control the folks who have threatened to use that kind of leverage. But the senate has not had a budget resolution pass through the senate in, what is it, four years now . April, 2009. That feels to me pretty shameful frankly. I dont know the politics and im not exactly sure why thats the case, but isnt that a critical step in bridging the gap and making progress on these issues where you can not go to these sort of extra legal things like using the debt ceiling as leverage, but you can use the process as it is intended to be used. I agree, and its an interesting quid pro quo for the republicans to agree to the first three months of extension of the debt ceiling. And to hold their own pay hostage. We wont pay ourselves. Even though i think the debt plays better outside and holds more leverage outside the beltway. Thats a very positive start, but, again, the president has so far ostensibly been willing to go along with some entitlement cuts, delayed eligibility age, Social Security diet cola as we call it, and never had to formally walk up to the table on that and its going to be let me jump in because i want to get to what i see as one not that my opinion particularly matters here. One of the critical imperatives of this second term is to enhance prosperity and Economic Growth. Right now there are more people in poverty than there were four years ago. There are about 12 million more people receiving food stamps than four years ago. Growth is back. It was down in the First Quarter of his term. It is up now, but its not fast. What does the president need to do, what can he do to get the economy growing . Well, look, in the near term what he needs to do, and im not sure politically forget about the politics, which is is interesting. He told his staff, give me good advice, forget about politics for now. I think that makes sense. I think hes in a similar space to where youre asking. I think what he needs to do in the short term is think about fiscal measures to help complement what the Federal Reserve is doing. They have the pedal to the metal on Interest Rates. Theyre very low. Absent more demand on the consumer side, obviously low Interest Rate isnt going to be enough. So he has to do some of these jobs measures and you have actually seen some of those slipping into the budget bills. Infrastructure is something hed really like to see more of. Chuck, even if republicans have backed away on debt limit as a potential threat, do you really think that theyre going to cooperate on stimulus as jared is recommending . No, i think thats probably a bridge too far. I do think though a bridge that could use some repair, by the way. As we see sasha and malia obama coming down and the rest of the obamas presumably not far behind. The president will be introduced here shortly to the podium. Sasha and malia i believe it was sasha who said nice job yesterday, dad, and he said i didnt mess it up this time. A reference to the fact that he had to repeat the oath four years ago. I was just going to say though, i think theres some other things that are more subtle that the president and his administration can do. Just to continue to move beyond the policy overlay, the policy concerns that have been a bit of be a an override, created an adverse environment on the dodd frank act. I think were in the process of moving beyond those concerns and that could be really, really helpful. Jared, is there a realistic prospect for something that could respectably be called tax reform or is that simply an exercise to raise a little bit more revenue . More of the latter than the former in my humble opinion. Its great theyre all getting along today as hampton was telling us, but the idea of very deep tax reform seems pretty difficult given the disagreements up there. On the other hand, you were mentioning this earlier and i agree, the deal will involve both revenues, probably from the tax expenditure side, and spending cuts, and as has been said, the president has significant spending cuts on the table. Corporate tax reform . Possibly, but im not sure that again is going to be lower rate, broader base. I dont know if thats real massive tax reform. A Second Coming out for the obama daughters who have grown up before our eyes. People say that the president looks older. Those girls look older than they did four years ago, and they, of course, have grown up in the bubble of the white house. In percentage terms theyve gotten older than he has. Absolutely. But theres not a gray hair on their heads right now. Of course, they dont bear the weight of office. Chuck gabriel, as we watch the scene here, and its a fun one to watch, of course, for at least these four hours here from the time 10 00 a. M. This morning when the congressional leadership had coffee at the white house through lets say 2 00, partisan bickering gets put aside. Do these guys like each other or do they not like each other . Mr. Boehner said something rather strong about harry reid. We assume that kind of language was not used in the white house this morning, but can they really get along and do what needs to get done . There is there are pockets of enmity that are quite wellknown. Whats really wonderful about washington, and this day is going to be full of this, is that you can have members, particularly on the senate floor, that can just bash each other. John has had a birdseye view of this. During the day with key issues of state at risk, and at the end of the day they can go off to the moncle and have a drink or a steak and so although a lot less than used to take place. Thats true. Jill biden, the Vice President s wife, the second lady of the United States, begins her way down to the podium. I think there is more partisanship about to break out. Call it bipartisanship. Maybe im caught up in the spirit of the day. Explain. Ill explain. And where do you see that . I have some circumstantial evidence. Look at the fiscal cliff vote and look at the sandy vote. A microcosm. What youre finding there is john boehner willing to break what is called the hastert rule, which is that to pass measures with Majority Democrats when they really need to be passed. I have no illusions every bill is going to go down that way. And then with the debt ceiling, same thing. I do think theres some evidence that republicans are saying, you know, in part for public image reasons but maybe in part because of good economic reasons, we cant keep whacking away at the economy like this to please our base we ha. Its not about the two parties necessarily shifting their philosophical positions or moving together but more of a practical decision by the house leadership to recognize the limits on what they can accomplish with the majority in the house and the limits in terms of the public support for their position. You know, one of the things, chuck, the president used the campaign to do was to try to lay out in front of the public the competing visions for approaches to Economic Growth and deficit reduction. He feels like hes been vindicated, and i think republicans in the votes that jared was just talking about str recognized he has a point. Yeah, but, john, it all boils down to theres a very different vision when youre talking about a government that takes about 23 , 24 of gdp and one at 20 , 21 like budget chairman ryan proposed. As we began this debate, they cant even agree on where we start because democrats believe weve already cut 1. 7 trillion to 3 trillion all from domestic and defense, nondefense Discretionary Spending which, of course, thats not true. Wait a minute. 3 trillion in discretionary no, 1. 5 trillion is how the cbo. Republicans will give you 900 billion and cbo you canted even agree where youre starting. That is a problem. True. But if what does it tell you that the ryan budget had essentially no medicare savings in the first ten years . In other words, you have a contest to cut entitlements, and the republicans say to the president , put some cuts on the table. Democrats say the reverse, but we havent seen them from anybody. She needs no introduction. That, of course, the first lady of the United States, Michelle Obama. She has changed her hairstyle. There will be a twitter poll about this im sure if there isnt one already. Shes obviously a style icon, and her haircut. Thank you very much. Her haircut is getting more attention in this town than just about anything else. If i could Say Something, im going to watch her more closely than anybody today, because i really believe that to the extent the obamas in some respects are mirroring the clintons, i think her next move may be to move for the senate in illinois in 2016. Some people have said that i would bet a lot of money that that will never happen. You will . Is that right . I was just in chicago. A lot of people are betting on it. Mark kirk will be up, and he was a great senator, but hes had a stroke. Hes had a stroke and was incapacitated and just returned as they swore in the new senate three weeks ago and walked up the steps in a show full disclosure, i didnt think Hillary Clinton was going to run for the senate either. I think there will be a lot of pressure on her to be a logical choice. Lets return to talking investing in the investing climate. The president s first term marked by major gains in the stock market. I think his was the third best first term performance for the industrials, second only following Franklin Roosevelt. But second terms dont generally turn out as well both politically and in terms of investing. The average is Something Like 10 . What does the president need to do, what can he do to foster a better investing climate and maybe take some of the antibusiness rhetoric out of his talk . I think that the key there is going to actually be something you mentioned earlier, which is the underlying growth of the economy. I dont think investors are nearly as wound up on how were going to implement the Affordable Care act or dodd frank in the second term than they are about seeing some returns on their investments. Probably somewhere in the second term the Federal Reserve is going to start raising Interest Rates. That could be 2015. It could be sooner. But i think the Investor Community is basically waiting to see a bit more on the demand side. Joseph biden, the Vice President , coming down the steps there of the capitol about to be introduced to the crowd on the west front of the capitol, the west front being used since Ronald Reagans first inauguration as the location of the inaugural services ceremonies i should say. Mr. Biden will be sworn in by justice sotomayor. And, tyler, what we have to think about when we watch joe biden walk down those steps, is this the cap stone of his career or not . Is it going to continue . He ran for president twice on his own, unsuccessfully. Barack obama selected him, by all accounts has been very satisfied with his performance. You hear some talk about joe biden running for president. I personally wouldnt expect it, but cant rule it out. Jared, you worked for him. I personally wouldnt expect it either, but exactly what you said. You never want to rule these things out. I think politicians at that level think about being the president. Its just a natural thing. One thing i will say about Vice President biden is, boy, is his stock riding high. He has been integral to so much during that first term. Some of it you didnt see early on or you didnt see much of. Marshaling the recovery act. But in recent months obviously and he was the dealmaker. He was the one who sat down with mcconnell, and mcconnell said get me biden. Hes got these oldschool skills that have turned out to be extremely important lately. One other thing, to the extent back to the original question about what the administration or the president could do for the economy and for investing. You know it would be i know there was a period where he had to show his disdain, american disdain, for what wall street and the big banks had wrought with regard to the financial crisis, but now were somewhat past it. Were off to a good start. They did extend the lower Capital Gains rate for 99 of americans, and it would be wonderful at this point, particularly since you still have im right in the middle of the baby boom generation. There are many of us who still have to gird for retirement. If the president or the Vice President could speak well for investing this is the salute to joe biden, the Vice President. Announcer ladies and gentlemen, the Vice President of the United States, joseph r. Biden, accompanied by inaugural coordinator for the joint Congressional Committee on inaugural ceremonies, kelly fado. House Deputy Sergeant at arms kari hanley. Senate majority leader harry reid and House Democratic leader nancy pelosi. One thing thats never changed by joe biden, even as hes gotten older, is that smile. That smile is electric and he is clearly in his element there as we see the president preparing to descend the stairs to the front of the podium. The marine band is playing here, and you will hear them throughout these ceremonies. They have played literally since in every inauguration since Thomas Jeffersons first inauguration. Of course, the marine band the oldest 3r06ti esest professiona organization in the country. You see the president followed by lamar alexander, senator from tennessee, and Chuck Schumer from new york who may be uncomfortable. Hes a little shy around tv cameras. No, he doesnt like tv cameras at all. Dont get between chuck and the camera. Thats right. The speaker behind him, eric cantor behind senator alexander and schumer. The congressional leadership, as we pointed out earlier today, met at the white house for coffee. They came back a little early and the president rode up in a motorcade. Tyler, we saw joe biden flash that smile when he walked out. The president is smiling in his new official portrait but not well, he just did there. Chuckled. But he was a little somber as he was walking out. Yeah. Some people looked at that portrait and said hes feeling cocky. I spent my week memorizing all kinds of inaugural trivia. The president , of course, latest in a long line of president s, chief executives, to travel from the white house by car. The first to go by car was warren g. Harding. How about that . And what an auspicious sign that was for his presidency. Not good for him. President obama did help save the car industry. And there are some of the estimated 500,000 to 800,000 individuals on the mall going back compared with about 1. 8 million four years ago. Theres obviously heavy security the closer you get to the west front of the capitol. And theyre blessed with little warmer temperatures than we had four years ago. It was, what, about 20 degrees i think, and here come the trumpets from the marine band as the president will be introduced. Announcer ladies and gentlemen, the president of the United States h barack h. Obama, accompanied by staff director gene boro wits. The house agent at arms. Chairman of the joint Congressional Committee on inaugural committees, senator charles e. Schumer. Senator lamar alexander. The speaker of the house of representatives john boehner. Senate majority leader harry reid. House majority lieder eric cantor and House Democratic leader nancy pelosi. Senator schumer will be. Ba t basic master of ceremonies. He has made sure that at a luncheon that will follow the speech that an awful lot of new York Products are going to be served, including chobani yogurt. What about hot pastrami . I dont know if thats on the menu. New england clam chowder is. Manhattan cham clouder is not. Of course, in addition to the politicians, theres a lot of family. You saw craig robinson, the brother of Michelle Obama, who is the basketball coach at oregon state. Saw david axelrod, part of the president s political family. His wife susan behind him. Its a great moment for them as well. Absolutely. And coming up, were going to take a quick break as the president prepares to deliver his second inaugural address. Well talk to a man who has been there and done that. John behr was a speechwriter for president clinton when he was sworn in for a second time and pel put pen to paper with him when cnbcs coverage of the second inauguration of barack obama continues. The longest inaugural address at 8,445 words was given by William Henry harrison. He died one month later of pneumonia believed to have been brought on by his prolonged exposure to harsh weather on his Inauguration Day. Lets go. [ male announcer ] introducing the allnew cadillac xts. Another big night on the town, eh . And the return of life lived large. What are you doing . Nothing. Are you stealing our Daughters School supplies and taking them to work . No, i was just looking for my stapler and my. This thing. I save money by using fedex ground and buy my own supplies. Thats a great idea. Im going to go. We got clients in today. [ male announcer ] save on ground shipping at fedex office. Welcome back, everybody, to cnbcs coverage of the second inauguration of barack obama. As we prepare to hear from the president , lets look back on some of the most memorable inaugural addresses in american history. Im Tyler Mathisen along with john harwood. So, first of all, let me assert my firm belief that the only thing we have to fear is fear itself. Nameless, unreasoning, unjustified terror which pa paralyzes efforts. Let the word go forth from this time and place to friend and foe alike that the torch has been passed to a new generation of americans. And so, my fellow americans, ask not what your country can do for you. Ask what you can do for your country. We must act today in order to preserve tomorrow, and let there be no misunderstanding, were going to begin to act beginning today. We have learned that more is not necessarily better, but even our great nation has its recognized limits and that we can neither answer all questions nor solve all problems. There is nothing wrong with america that cannot be cured by what is right with america. And joining us now, don behr, one of the people on president clintons White House Communications team. He was White House Communications director and chief speechwriter who helped president clinton craft his 1997 inaugural speech. He is now ceo. Thank you for being with us. What are you expecting to hear from the president and is there kind of a cookie cutter for inaugurals in the sense that theyre all big vision speeches without a lot of policy specifics . Well, they may all be that, but i can tell you for those who put them together, especially the president and his speech writers, theres nothing cookie cutter about it. You approach this with a great sense of moment in history, and, frankly, some pressure knowing that the whole world is listening and its a critically important thing for the country. Its kind of a Mission Statement for the country for the next four years. So i think we will hear from him. I hope we will hear from him today a kind of call to a politics of common purpose to try to bind the country back together again despite all of our differences. I dont think it will be something that will necessarily last forever, but i do think he will be calling us to higher purpose. You know, don, i was reading over the weekend that an awful lot of people who are critics of president ial inaugural speeches and rhetoric say that second inaugurals have a common failing, and it is that they run too long, and yet washingtons second inaugural was the shortest of all time at 135 words. Lincolns terribly famous one in 1865 just 700 words. Is shorter better the Second Time Around . I think typically less is more with these kinds of speeches, but its hard. You have a president who has been reelected who knows this will be the last time he or she will ever do this, and they typically have something on their minds they want to say and they figure theyre going to take the moment to do it, but by and large theyre all better served if they can keep these things shorter rather than longer. Don, did you write a short one for clintons second inaugural . President clintons second inaugural was longer than his first. It didnt stretch on and on, but i think we would have liked was that his fault or your fault . No comment, no comment. We would have liked to have been able to have another day for another edit, but it was a good speech, and, again, you know, they have something to say. President clinton in that case was talking about the 21st century and the millennium that we were moving towards and how he wanted america to come back together. He invoked scripture to talk about being the repairer of the breach. He wanted americans to really pull together during a time of great opportunity. And, of course, that was what was really the message of the lincolns second inaugural was repairing, bind up the nations wounds. He made multiple references to god and to religion and apropos that right now, Myrlie Everswilliams, the widow of medgar evers, who was slain 50 years ago in 1963 is giving the benediction for these ceremonies, and this is only the second time, by the way, that a president ial inauguration has taken place on Martin Luther king day. The first time, don, was when you were there in the white house in 1997 for president clinton. Lets listen to miss williams. Let us act upon the meaning that everyone is included. May the inherent dignity and inalienable rights of every woman, man, boy, and girl be honored. May all your people, especially the least of these, flourish in our blessed nation. 150 years after the emancipation proclamation and 50 years after the march on washington, we celebrate the spirit of our ancestors, which has allowed us to move from a nation of unborn hopes and a history of disinfranchised votes to todays expression of a more perfect union. We ask, too, almighty, that where our paths seem blanketed by thorns of oppression and riddled by pangs of despair, we ask for your guidance toward the light of deliverance and that the vision of those who came before us and dreamed of this day, that we recognize that their visions still inspire us. They are a great cloud of witnesses unseen by the naked eye but all around us thankful that their living was not in vain. For every mountain you gave us the strength to climb. Your grace is pleaded to continue that climb for america and the world. We now stand beneath the shadow of the nations capitol whose golden dome reflects the unity and democracy of one nation indi visible with liberty and justice for all. Approximately four miles from where we are assembled, the hallowed remains of men and women rest in arlington cemetery. They who believed, fought, and died for this country. May their spirit infuse our being to Work Together with respect enabling us to continue to build this nation and in so doing we send a message to the world that we are strong, fierce in our strength, and ever vigilant in our pursuit of freedom. We ask that you grant our president the will to act courageously but cautiously when confronted with danger and to act prudently but deliberately when challenged by adversity. Please continue to bless his efforts to have lead by example in consideration and favor of the diversity of our people. Bless our families all across this nation. We thank you for this opportunity of prayer to strengthen us for the journey through the days that lie ahead. We invoke the prayers of our grandmothers who taught us to pr pray, god make me a blessing. Let their spirit guide us as we claim the spirit of old. Theres something within me that holds the reins. Theres something within me that banishes pain. Theres something within me i cannot explain, but all i know, america, there is something within. There is something within. In jesus name and the name of all who are holy and right we pray. Amen. And that was Myrlie Everswilliams in a moment she couldnt have imagined when her husband, civil rights leader, was slain 50 years ago. Speaking at the inauguration, second inauguration of the first black president. Quick commercial break. Well come back with Vice President biden taking the oath of office. Its a new day. If your a man with low testosterone, you should know that axiron is here. The only underarm treatment for low t. Thats right, the one you apply to the underarm. Axiron is not for use in women or anyone younger than 18. Axiron can transfer to others through direct contact. 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Or help doctors turn billions of bytes of shared information. Into a fifth anniversary of remission . Whatever your business challenge, dell has the technology and services to help you solve it. Welcome back to cnbcs coverage of the second inauguration of barack obama. For some attending todays events, its a once in a lifetime opportunity. For others a treasured ritual every four years. Thats the Brooklyn Tabernacle choir singing. I mentioned there was going to be a new york flair to these ceremonies. Earlier a choir from staten island, a Public School choir, sang. Charles schumer is the chairman of the ceremonies today. Well hear from him in just a moment before we swear in the Vice President of the United States, but lets go to eamon javers who has been out among the crowd talking to some of the folks who made the pilgrimage to washington. Reporter theres definitely is festival atmosphere down in the streets. Thousands of people streaming by. The crowds moving very well. I have to tell you, a lot of big smiles, grins, lots of big energy among the folks who are here. Some have come from all over the country and all over the world. We talked to people from as far away as poland here this morning. I can tell you capitalism is alive and well down here on the street. They are selling barack obama everything. We saw scarves, hats, buttons, pins. I will say some of the vendors told us because the crowds are smaller than they were four years ago, they said business is off a little bit from what they had expected because they sold so much merchandise four years ago. But they are very entrepreneurial here on the streets of washington, d. C. , and theyre moving a lot of goods today as well, tyler. All right. Lets listen once again. Thank you very much. As the Brooklyn Tabernacle choir concludes the battle hymn of the republic. The musical selections will take a turn towards more popular performers in our next hour. Kelly clarkson, who is known for her sort of anthemic songs and beyonce. Before that we have james taylor. And james Taylor America the beautiful. Someone i recognize, speaking for the baby boomers. Lamar alexander now. You may be too young to know james taylor. Youre too kind. Lived his life by these six words, find the good and praise it. Today we praise the american tradition of transferring or reaffirming immense power in the inauguration of the president of the United States. We do this in a peaceful, orderly way. There is no mob, no coup, no insurrection. This is a moment when millions stop and watch. A moment most of us always will remember. It is a moment that is our most conspicuous and enduring symbol of the american democracy. How remarkable that this has survived for so long in such a complex country when so much power is at stake. This freedom to vote for our leaders and the restraint to respect the results. Last year at mt. Vernon a tour guide told me that our first president , george washington, once posed this question what is most important, washington asked, of this grand experiment, the United States . And then washington answered his own question in this way. Not the election of the first president , but the election of its second president. The peaceful transfer of power is what will separate our country from every other country in the world. So today we celebrate the 57th inauguration of the american president , find the good and praise it. Now, it is my honor to introduce the associate justice of the Supreme Court, sonia sotomayor, for the purpose of administering the oath of office to the Vice President. Will everyone please stand. Thanks for doing this. Thank you. Mr. Vice president , please raise your right hand and repeat after me. I, joseph r. Biden jr. , do solemnly swear. I, joseph r. Biden jr. , do solemnly swear. That i will support and defend the constitution of the United States. That i will support and defend the constitution of the United States. Against all enemies, foreign and domestic. Against all enemies, foreign and domestic. That i will bear true faith and allegiance to the same. That i will bear true faith and allegiance to the same. That i take this obligation freely. That i take this obligation freely. Without any mental reservation or purpose of evasion. Without any mental reservation or purpose of evasion. And that i will well and faithfully discharge. And that i will well and faithfully discharge. The duties of the office on which i am about to enter. The duties of the office on which i am about to enter. So help me god. So help me god. Congratulations. [ applause ] the president had to repeat it. The Vice President ial oath, which is somewhat longer than the president ial oath, is an oath used by many federal officials when they are sworn in to take their duties. In contrast to the president ial oath which is shorter and is specified word for word in the constitution. It is my pleasure to introduce renowned musical artist, james taylor. Oh beautiful for spacious skies for amber waves of grain for purple mountains majesty above the fruited plain America America god shed his grace on thee and crown thy good with brotherhood from sea to shining sea oath four times other than Franklin Roosevelt because of that small bobble. He had to repeat the oath a second time in 2009. Didnt have quite the ka shay of fdr. A 21 gun salute before he begins his second inaugural speech. It will be the second second inaugural from a president from illinois. The other one abraham lincoln. Ladies and gentlemen, it is my great privilege and distinct honor to introduce the 44th president of the United States of america, barack h. Obama [ cheers and applause ] thank you. Thank you. Obama thank you so much. Vice president biden, mr. Chief justice, members of the United States congress, distinguished guests, and fellow citizens, each time we gather to inaugurate a president , we bear witness to the enduring strength of our constitution. We affirm the promise of our democracy. We recall that what binds this nation together is not the colors of our skin or the tenets of our faith or the origins of our names. What makes us exceptional, what makes us american, is our allegiance to an idea articulated in a declaration made more than two centuries ago. We hold these truths to be selfevident that all men are created equal. That they are endowed by their creator with certain unalienable rights, that among these are life, liberty, and the pursuit of happiness. Today we continue a neverending journey to bridge the meaning of those words with the realities of our time. For history tells us that while these truths may be selfevident, they have never been selfexecuting. That while freedom is a gift from god, it must be secured by his people here on earth. The patriots of 1776 did not fight to replace the tyranny of a king with the privileges of a few or the rule of a mob. They gave to us a republic, a government of and by and for the people entrusting each generation to keep safe our founding creed. And for more than 200 years we have. Through blood drawn by lash and blood drawn by sword, we learned that no union founded on the principles of liberty and equality could survive half slave and half free. We made ourselves anew and vowed to move forward together. Together we determined that a modern economy requires railroads and highways to speed travel and commerce, schools and colleges to train our workers. Together we discovered that a free market only thrives when there are rules to ensure competition and fair play. Together we resolve that a great nation must care for the vulnerable and protect its people from lifes worst hazards and misfortune. Through it all we have never relinquished our skepticism of central authority, nor have we succumbed to the fiction that all saturdays ills can be cured through government alone. Our celebration of initiative and enterprise, our insistence on hard work and personal responsibility, these are constants in our character. We have always understood that when times change, so must we. That fidelity to our founding principles requires new responses to new challenges. That preserving our individual freedoms ultimately requires collective action. For the American People can no more meet the demands of todays world by acting alone than american soldiers could have met the forces of fascism or communism with muskets and militias. No Single Person can train all the math and science teachers well need to equip our children for the future or build the roads and networks and Research Labs that will bring new jobs and businesses to our shores. Now more than ever, we must do these things together as one nation and one people. [ applause ] this generation of americans has been tested by crises that steeled our resolve and proved our resilience. A decade of war is now ending. [ cheers and applause ] an economic recovery has begun. [ cheers and applause ] americas possibilities are limitless, for we possess all the qualities that this World Without boundaries demands. Youth and drive, diversity and openness, an endless capacity for risk and a gift for reinvention. My fellow americans, we are made for this moment, and we will seize it so long as we seize it together. [ cheers and applause ] for we, the people, understand that our country cannot succeed when a shrinking few do very well and a growing many barely make it. We believe that americas prosperity must rest upon the broad shoulders of a rising middle class. We know that america thrives when every person can find independence and pride in their work, when the wages of honest labor liberate families from the brink of hardship. We are true to our creed when a little girl born into the bleakest poverty knows she has the same chance to succeed as anybody else because she is an american, she is free, and she is equal, not just in the eyes of god but also in our own. [ cheers and applause ] we understand that our programs are inadequate to the needs of our time, so we must harness new ideas and policy to remake our government, revamp our tax code, reform our schools, and empower our citizens with the skills they need to work harder, learn more, reach higher. But while the means will change, our purpose endures. A nation that rewards the effort and determination of every single american, that is what this moment requires. That is what will give real meaning to our creed. We, the people, still believe that every citizen deserves a basic measure of security and dignity. We must make the hard choices to reduce the chosts of health care and the size of our deficit. But we reject the belief that america must choose between caring for the generation that built this country and investing in the generation that will build its future. [ cheers and applause ] for we remember the lessons of our past when Twilight Years were spent in poverty and parents of a child with a disability had nowhere to turn. We do not believe that in this country freedom is reserved for the lucky or happiness for the few. We recognize that no matter how responsibly we live our lives, any one of us at any time may face a job loss or a sudden illness or a home swept away in a terrible storm. The commitments we make to each other through medicare and medicaid and Social Security, these things do not zap our initiative, they strengthen us. [ applause ] they do not make us a nation of takers, they free us to take the risks that make this country great. [ cheers and applause ] we, the people, still believe that our obligations as americans are not just to ourselves but to all posterity. We will respond to the threat of Climate Change knowing that the failure to do so would betray our children and future generations. [ cheers and applause ] some may still deny the overwhelming judgment of science, but none can avoid the devastating impact of raging fires and crippling droughts and more powerful storms. The path towards Sustainable Energy sources will be long and sometimes difficult, but america cannot resist this transition. We must lead it. We cannot cede to other nations the technology that will power new jobs and new industry, we must claim its promise. Thats how we will maintain our Economic Vitality and our national treasure. Our forests and water ways, our crop lands and snow cap peaks, that is how we will preserve our planet, commanded to our care by god. Thats what will lend meaning to the creed our fathers once declared. We, the people, still believe that enduring security and lasting peace do not require perpetual war. [ applause ] our brave men and women in uniform, tempered by the flames of battle, are unmatched in skill and courage. Our citizens feared by the memory of those we have lost know too well the price it has paid for liberty. The knowledge of their sacrifice will keep us forever vigilant against those who would do us harm, but we are also heirs to those who won the peace and not just the war, who turned sworn enemies into the surest of friends, and we must carry those lessons into this time as well. We will defend our people and uphold our values through strength of arms and rule of law. We will show the courage to try and resolve our differences with other nations peacefully, not because we are naive about the dangers we face but because engagement can more durably lift suspicion and fear. America will remain the anchor of strong alliances in every corner of the globe, and we will renew those institutions that extend our capacity to manage crisis abroad for no one has a greater steak in a Peaceful World than its most powerful nation. We will support democracy from asia to africa, from the americas to the middle east because our interests and our conscience compel us to act on behalf of those who long for freedom, and we must be a source of hope to the poor, the sick, the marginalized, the victims of prejudice not out of mere charity but because peace in our time requires the constant advance of those principles our common creed describes. Tolerance and opportunity. Human dignity and justice. We, the people, declare today that the most evident of truths that all of us are created equal is the star that guides us still, just as it guided our forebearers through seneca falls and selma and stone wall. Just as it guided all those men and women, sung and unsung, who left footprints along this great mall to hear a preacher say, we cannot walk alone. To hear a king proclaim that our individual freedom is inextricably bound to the freedom of every soul on earth. [ applause ] it is now our Generations Task to carry on what those pioneers began for our journeys not complete until our wives, our mothers and daughters can earn a living equal to their efforts. [ cheers and applause ] our journey is not complete until our gay brothers and sisters are treated like anyone else under the law. [ cheers and applause ] for if we are truly created equal, then surely the love we commit to one another must be equal as well. [ cheers and applause ] our journey is not complete until no citizen is forced to wait for hours to exercise the right to vote. [ cheers and applause ] our journey is not complete until we find a better way to welcome the striving, hopeful immigrants who still see america as a land of opportunity, until bright, Young Students and engineers are lifted in our work force rather than expelled from our country. [ cheers and applause ] our journey is not complete until all our children from the streets of detroit to the hills of appalacia to the twilanes of newtown know that they are cared for and cherished and always safe from harm. That is our Generations Task, to make these words, these rights, these values of life and liberty and the pursuit of happiness real for every american. Being true to our founding documents does not require us to agree on every contour of life. It does not mean we all define liberty in exactly the same way or follow the same precise path to happiness. Progress does not compel us to settle centurys long debates about the role of government for all time, but it does require us to act in our time. [ applause ] for now decisions are upon us, and we cannot afford to lay. We cannot mistake absolutism for principles or substitute spectacle for politics or treat namecalling as reasoned debate. [ applause ] we must act. We must act knowing that our work will be unperfect. We must act knowing that todays victories will be only partial and that it will be up to those who stand here in four years and 40 years and 400 years hence to advance the timeless spirit once conferred to us in a spare philadelphia hall. My fellow americans, the oath i have sworn before you today, like the one recited by others who serve in this capitol, was an oath to god and country, not parties or factions, and we must faithfully execute that pledge during the duration of our service. But the words i spoke today are not so different from the oath that is taken each time a soldier signs up for duty, or an immigrant realizes her dream. My oath is not so different from the pledge we all make to the flag that waves above and that fills our hearts with pride. Theyre the words of citizens, and they represent our greatest hope. You and i as citizens have the power to set this countrys course. You and i as citizens have the obligation to shape the debates of our time, not only with the votes we cast but with the voices we lift in defense of our most ancient values and enduring ideas. [ applause ] let us, each of us now, embrace with solemn duty and awesome joy what is our lasting birth right. With common effort and common purpose, with passion and dedication, let us answer the call of history and carry into an uncertain future that precious light of freedom. Thank you. God bless you, and may he forever bless these United States of america. [ cheers and applause ] president barack obama in his second inaugural speech. It came in at 18 1 2 minutes. I found the ratio of political grit to poetry in this speech a little bit higher than i expected. He really called out his priorities, called out Republican Opposition to those priorities reflecting the greater confidence hes had since winning reelection. I think exactly right. As you were saying as we were listening, it was like he was checking off some boxes here. There wasnt a major second term agenda that weve spoken about that wasnt in there. While there was vision, there was also a lot more policy specifics. A bit of a state of the union feeling. Was it totally right . I was thinking, this is not what writens call a tone pause. This was a very practical, pragmatic statement about politics, and it was an interesting nononsense fusion of state of the union and an inaugural address. The marine band and Kelly Clarkson will sing here in just a moment, my country tis of thee. From American Idol to the president ial inaugural. My country tis of thee sweet land of liberty of thee i sing land where my fathers died land of the pilgrims pride from every Mountain Side let freedom ring let music swell the beat and ring from all the trees sweet freedom sung let us rockets silence break the sound the fathers guide to thee father of liberty to thee we sing with freedom always right protect us through the night praise god king [ cheers and applause ] wow. Our next distinguished guest is the poet, richard blanco, who will share with us words he has composed for this occasion. [ applause ] mr. President , mr. Vice president , america, one today. One sun rose on us today kipdled over our shores, peeking over the smokeys, greeting the faces of the great lakes, spreading a simple truth across the great plains, then charging across the rockies. One light waking up rooftops. Under each one a story told by our silent gestures, moving across windows. My face, your face, millions of faces and mornings mirrors, each one yawning to life, crescendoing into our day. The penciled Yellow School buses, the rhythm of traffic lights, fruit stands, apples, limes and oranges, arrayed like rainbows begging our praise. Silver trucks heavy with oil or paper, bricks or milk, teaming over highways alongside us on our way to clean tables, read ledgers, or save lives, to teach geometry or ring up groceries as my mother did for 20 years so i could write this poem for all of us today. All of us, as vital as the one light we move through, the same light on black boards with lessons for the day, equations to solve, history to question or atoms imagined. The i have a dream we all keep dreaming or the impossible vocabulary of sorrow that wont explain the empty desks of 20 children marked absent today and forever. Many prayers, but one light breathing color into stained glass windows, life into the faces of bronze statues, warmth onto the steps of our museums and park benches as mothers watch children slide into the day. One ground, our ground, rooting us to every stalk of corn, every head of wheat sown by sweat and hands, hands cleaning coal or planting crops in deserts. Hands digging trenches, routing pipes and cables, hands as worn as my fathers cutting sugar cane so my brother and i could have books and shoes. The dust of farms and deserts, cities and plains mingled by one wind, our breath. Breathe. Hear it through the days gorgeous bin of honking cabs, buses launching down avenues, the symphony of footsteps, guitars, and screeching subways. The unexpected song bird on your clothesline. Hear squeaky playground swings, trains whistling or whispers across cafe tables. Hear the doors we open each day for each other saying, hello. Shalom. Bonjiorno. Howdy, or buenos dias. In the language my mother taught me, spoken into one wind, carrying our lives without prejudice, as these words break from my lips. One sky since the app pa lay shans and sierras claimed their imagine jest city and the mississippi worked their way to the sea. Thank the work of our hands weaving steel into bridges, finishing one more report for the boss on time, stitching another wound or uniform. The first brush stroke on a portrait or the last floor on the Freedom Tower jutting into the sky that yields to our resilience. One sky toward which we sometimes lift our eyes, tired from work, some days guessing at the weather of our lives, some days giving thanks for a love that loves you back, sometimes praising a mother who knew how to give or forgiving a father who couldnt give what you wanted. We head home through the gloss of rain or weight of snow or the plumb blush of dusk but always, always home. Always under one sky, our sky, and always one moon like a silent drum tapping on every rooftop and every window of one country. All of us facing the stars hope a new constellation waiting for us to map it, waiting for us to name it together. [ applause ] ladies and gentlemen, it is now my privilege to introduce reverend dr. Luis leon to deliver the benediction. Let us pray. Gracious and eternal god, as we conclude the second inauguration of president obama, we ask for your blessings as we seek to become in the words of Martin Luther king, citizens of a beloved community, loving you and loving our neighbors as ourselv ourselves. We pray that you will continue to bless us with your continued presence, because without it hatred and arrow against will infect our hearts. But with your blessing we know that we can break down the walls that separate us. We pray for your blessing today because without it mistrust, prejudice, and rancor will rule our hearts, but with the blessing of your presence we know that we can renew the ties of mutual regard which can best form our civic life. We pray for your blessing because without it suspicion, despair, and fear of those different from us will be our rule of life, but with your blessing we can see each other created in your image a unit of gods grace unprecedented, irrepeatable and irreplaceable. We pray for your blessing because without it we will see only what the eye can see, but with the blessing of your blessing we will see that we are created in your image whether brown, black or white, male or female, first generation immigrant american or daughter of the american revolution, gay or straight, rich or poor. We pray for your blessing because without it we will only see scarcity in the midst of abundance, but with your blessing we will recognize the abundance of the gifts of this good land with which you have n endowed this nation. We pray for your blessing, bless all of us privileged to be citizens and residents of this nation with a spirit of gratitude and humility that we may become a blessing among the nations of this world. We pray that you will shower with your lifegiving spirit the elected leaders of this land, especially barack, our president , and joe, our Vice President. Fill them with the love of truth and righteousness that they may be able to serve this nation ably and be glad to do your will. Endow their hearts with wisdom and forbearance so that peace may prevail with righteousness and justice with order, so that men and women can find with one another the fulfillment of our humanity. We pray that the president , Vice President , and all their Political Authority will remember the words of the prophet micah. What does the lord require of you but to do justice, to love kindness, and always walk humbly with god. Senior president e. Mr. President , mr. Vice president , may god bless you all your days. All this we pray in your most holy name. Amen. Ladies and gentlemen, please remain standing for the singing of our National Anthem by awardwinning artist, beyonce, accompanied by the u. S. Marine band. Following the National Anthem please remain at your place while the president ial party exits the platform. Oh, say can you see by the dawns early light what so proudly we haled at the twilights last gleaming . Whose broad stripes and bright stars through the perilous fight o er the ramparts we watched were so galantely streaming and the rockets red glare, the bombs bursting in air gave proof through the night that our flag was still there oh, say does that starspangled banner yet wave oer the land of the free and the home of the brave the brave [ cheers and applause ] that was beyonce. 16time grammy award winner accompanied by a few good men, the u. S. Marine band. You had a very strong in the selection of who sang, who preached. Very strong accent on youth and on the diversity of the country, the two factors most responsible for this president s reelection. Did we hear inspiring renditions of Great American weve heard it a million times before. You think of these performers who perform in front of large crowds, but never a Live Audience of 800,000 people as is including my wife and son who are there. My wife is there. I suspect it comes pretty natural to beyonce to be able to handle a crowd like this. The president will sort of shake hands and then leave the podium there to go into the capitol for a signing ceremony, which i dont know that we will be able to see. I dont know that Television Cameras are there. A proclamation and then officially nominating, among others, senator hagel, former senator hagel to be the secretary of defense. John kerry to be secretary of state. Jacob lew for the cia. You saw Michelle Obama moving swiftly to catch up with her husband as they exit the platform and head on inside the capitol. Jared bernstein is with us. Do don baer is with us. Let me turn back to a question that was on my mind. I thought the speech was really the president expressing his view of the american ideal and how, where, and why government fits into that ideal, making an aggressive case here, touching everything from entitlements to obliquely security issues, Climate Change. Income inequality. I think youre exactly right when you talk about the role of government, and it reminded me of the debate rehad in the election, in the campaign where one side, the victors in this case, argued for a much more pronounced role for government. And the president hit back on this theme of were in this together, you cant go it alone, which hes actually highlighted back since 2008. But, don, do you think that the way that the president ticked off his own priorities and cast them as the will of the American People, how do you think republicans are likely to receive that and are they going to see that as another inyourface challenge by this president . I think theyre going to see it as a refutation or an attempted refutation of their philosophy. I heard three things in this speech. I heard unity. The president used the word together six times in the first half of this speech. We need to come together. I heard equality. Theres no question theres a strong equality theme as it relates to the role of government and his theme and the last thing i heard is action now. Lets get it done. Lets not let perfection be the impossible. But i did hear in addition to all of this conversation about him and the opposition, i think i heard him also speaking to the democrats. Don, when you think about the inaugural speeches that youve heard president reagan, the first president bush, bill clinton, second president bush and now this president , where does this speech rank among inaugurals . This is a very different inaugural address than i can remember hearing. As i said before, it was a nononsense fusion of a state of the Union Address and an inaugural address. You all listed off a litany of the issues. Tax reform was in this speech. Its rare to get this number of would you have liked more poetry in the speech . I personally would have liked more poetry. I think the country needs more uplifting at this point, to be brought together. This one line in the speech which goes to the heart of the pragmatism, we must act knowing that our work will be imperfect. You know, i think hes saying to the whole of the washington establishment, we cant have it all but we have to get moving. You know, this speech had the word Research Labs in it at one point. I challenge you to find another thats poetry right there. Right. Underscoring the point about the gran u lart here. Progress does not compel us to settle the debate about the role of government for all time but it does require us to act in our time. Hampton pearson is on the west front of the capitol and can describe whats going on there now. Hampton . Well, number one, weve got of course a wholesale exodus of all the vips on the platform. A huge portion of the hundreds of thousands of people on the mall. To the point you were making, hearing the speech here live in person, if you will, it was as sobering an Inauguration Day speech that i think weve heard in a very long time. The crowd really listened, as well. You know, there were only a few lines that sort of roused the crowd in terms of speaking to the values of equality. We are all in this together. Weve got to move forward. Again, sobering inauguration speech and acceptance speech by president obama and, of course, on the other side of it in terms of the pageantry that a lot of this day is about. The performances by the diversity of the artists singing very simple, basic american tunes that weve all grown up with but performed like weve never heard them before. That added a lot to the totality of the really positive experience of this Inauguration Day here at this location. Back to you guys. Thanks, hampton. Eamon jabbers, where are you . North capitol street. We had a hundred,000 people stream past this point. Right now we have a couple hundred thousand people streaming out. The crowd is so thick that you cannot get within blocks of the National Mall from where i am here. Kind of a moving moment here. We had the detroit homeless choir out here while all the speeches and the vips were on the stage. The homeless folks were here on the street singing hymns. It was a really moving moment, john and tyler, as the president was speaking. One woman told us shes going to try to find the nearest bar. A lot of other people have some other things on their mind other than politics and ceremony right now. Thank you, eamon. Let me ask you both on this point that you mentioned right now about action now. Realistically does this president have time to get action . Well, it depends on the issues. I think on gun control he has time. I think on Immigration Reform when you have barack obama and senator marco rubio essentially in a similar place on Immigration Reform, i think youre going to get that. Does the clock run out mid 2014 . Well, i think the record here is about a twoyear kind of runway. That sounds about right to me. I think its going to be shorter than that to be honest. Lets not forget the fiscal issues and budget issues. He has 30 seconds before he has to sort of dive into those again. The next six months are really going to be full. Cluck gabriel, sort of the same question to you. The rule of thumb is that the president has about 18 months to get his second term agenda underway and rolling and of course we know that an awful lot of president ial second terms have been marred by either major slips or scandals that impede the attainment of those lofty goals. I think 18 months is probably generous, tyler. But, you know, if he essentially does move out quickly on gun control and immigration, you know, immigration is a real wedge issue. Thats an issue that democrats really have the potential to really gain advantage in the midterm elections on. They may not be necessarily measuring success on the basis of getting legislation. I hate to be a guy who speaks cynically on such a really terrific day, but thats a fact. Now you see the president and Vice President walking into the rotunda of the capitol. Theyre going to have lunch with legislative leaders. We all remember the lunch that they had four years ago when senator edward kennedy, the late senator kennedy fell ill. That was an unaccustomed bit of flurry of activity there. Getting back to dons point, which is a good one. You really have to kind of get over the fiscal hump to get your agenda on the runway. I mean, if were going to have cliff and ceiling debates every two to three months, were going to get nowhere. The markets not going to like that either. I think it is really key whether members can continue to kind of resolve things as i think the direction is pointing. And one of the questions that came to mind for me as we saw that striking shot of beyonce and jayz with paul ryan just behind them is that weve got a 2016 campaign thats going to get going soon enough. What role do people like paul ryan, very influential, play in the resolution of the debates . Absolutely. Now the politics begins. Were going to see the distinction perhaps between leadership and the gaining out of political implications. I would think that even now in the next several months paul ryan and others are better served in putting the nation first and that would drive them for political he did vote for the fiscal cliff deal. He seems to have been a force forex tending debt ceiling in order to gain some time to negotiate. I think all of that argues in favor of some time to get the right things done. Chuck gabriel, how did you read or hear the president s passage where he talked about medicare and Social Security and he said the commitments we make to each other through medicare, medicaid, Social Security, these things do not zap our initiative, they strengthen it. They do not make us a nation of takers, they free us and make this country great. That felt to me like a bit of a stake in the ground by the president. Yeah. You know, the president last week cast doubt on whether republicans believe in the principles and functions of Social Security and medicare, etc. So in some respects i think this is kind of a new, improved version of what president clinton did when he was facing a republican congress. He was talking about family values back in the 90s. He said i want a government that values families. And as the president said, we dont need to relitigate this today, but we need a government that will take care of basic needs, Economic Opportunity for everybody. Sure. Were watching the president now prepare to sign some documents, including a proclamation to commemorate the inauguration entitled the national day of hope and four nominations. There we go. And then i am sending a few nominations up. Mr. Jack lew. Mr. Charles hagel for defense. Mr. John kerry, secretary of state. And mr. John brennan of virginia. There you go. Great. Well, thank you very much, everybody. [ applause ] were going to take a quick break here. When we return well break down what the next four years will mean for our economy and the United States of america. Cnbcs coverage of the second inauguration of barack obama, well give you the president. No Single Person can train all the math and science teachers well need to equip our children for the future, or builds the roads and Research Labs that will bring jobs and businesses to our shores. Now more than ever we must do these things together as one nation and one people. 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For only the 21st time in the nations history a president has been sworn in for a second term of office. President barack obama taking the oath. John harwood, about an hour ago on the west front of the capitol. Lets bring in former White House Communications director, chief speech writer for president obama, don baer. He joins us with chuck gabriel. We were reading a passage from the speech earlier where he said the commitments to Social Security and medicare dont make us takers. You almost thought 47 reference was coming in next. Perhaps that was cut out. What do you think is the is the road ahead for the state of the union given all the policy that hes got. Well, interesting reference there to mitt romney by implication for all the everyday policy words that were in this speech, there was one word i didnt hear, the word growth. A reference to Economic Growth. And one wonders whether or not as we get to the state of the Union Address hes going to try to talk in terms of how we are going to make some of the hard choices that he only eludes to. He only says here that, yes, you need to have deficit reduction, yes, we need to cut health care costs, but he specifically said we reject the belief that america must choose between caring for the generation that built this country and investing in the generation that will build the future. Well, what that doesnt tell us is where are the choices . Because we know we cant pay for it all. It was reminiscent in the domestic realm which he pushed where he said we dont have to choosz between security and liberty at home, a reference to the National Security practices. I think the smart fiscal policy is the type of roadmap he mapped outputting aside the political challenges, and that is to in fact plot a reliable course to deficit reduction, that doesnt start in terms of fiscal contraction right away because we still have an Unemployment Rate thats too close to 8 and while our economy has been expanding since mid 2009, gdp growth is barely in trend. This is not fiscal contraction. It is a time to plot that pathway. Chuck gabriel, jump in here. Don made the point and i think hes dead on right that theres nothing about getting the economy really growing again. Obviously this is not the time for programmatic sort of markers, but there wasnt much, if any, talk of that. No, and its interesting in the liberal blogosphere theres been talk about whether they have inverse relationships or quite frankly have direct relationships. But i think whats really interesting is that, you know, if you quote Kelly Clarkson, that which does not kill us makes us stronger, i think if you look at the unity message thats suggested by medgar evers wife incredible invocation and the second inauguration of the first black president on Martin Luther king day, you have andre neandrethal to not get that. The first hispanic Supreme Court justice that swore Vice President biden. Its still a unity day. Im still looking for a call to service and sacrifice. No politician seems to want to step up to the plate and do that at this point and time. Hampton spears son yopearson you hear the unity theme and did you feel it when you were on the west front of the capitol . In a word, yes. Really all of the artists. Actually closer to james taylor from my generation, if you will. The simplicity and clarity in that voice of his after all these years is amazing. Kelly clarkson, the bringing of the American Idol generation. Beyonce in a class by herself. So that was just in the performances, but also as chuck was talking about, look at who he had giving, you know, small parts and important parts in terms of ms. Evers representing the legacy of dr. King. The cuban american poet representing that particular aspect of the diversity, if you will, that and how this president got reelected all here, all having their place on the platform. The other thing i have to say, too, you know, we are reminded that the Inauguration Day celebration is basically a threepart play. This is ending. The president will be inside the capitol for about an hour. We will move on, of course, to the parade this afternoon and tonight those two inaugural balls, if you will. But, again, having Inauguration Day, too, on the Martin Luther king holiday, amazing symmetry for us longtime washingtonians who get to work heerl during the week. For only the second time has the inauguration taken place on a king day holiday. Back in bill clintons second inaugural was the second time. Eamon jabbers has been out there. The first thing i noticed how many sort of multigenerational groups there were and how many africanamericans were coming to washington bringing either their parents or their grandparents to see this event and that that was certainly a moving moment as we look inside the luncheon there. That is the incoming presumptive incoming secretary of the treasury, jack lew speaking to i believe congressman dingle of michigan. Eamon . Thats right. Its an upbeat, if not boistrous mood as people leave from hearing the speeches and hearing the songs. You will be surprised how many people want to appear on television and have asked us if they could come onto the cameras live. Were saying no for the time being for those good folks who do want to be on television. We were talking about the vendors earlier. A lot of the vendors were saying they were not going to make out as well as they hoped, but just looking at this crowd coming out here, i do think those vendors did sell some products because just about every group coming out, somebody is wearing an obama hat, a scarf, a picture, a calendar. Some of those vendors must have made money today, tyler. Don, when you were in bill clintons white house, you had to deal with Newt Gingrichs republican revolution taking over the hill. Two years ago was the tea party midterm election. The tea party was in his way the first two years, in his face the last two. Where are they now . I think probably still strong, below the surface, but i think if we think about whats happened inside the House Republican caucus, its clear that it still burns pretty bright there. So it may not be as vocal, may not be in the headlines as much, but the sentiment i do think is there. You know, i think its kind of up to john boehner where the tea party is in terms of their impact. Theyre going to do what theyre going to do. Their positions are going to continue to promote the kind of gridlock theyve done so far. Its a matter of whether the speaker of the house is willing to allow the kinds of votes that allows legislation to get through not with majority republicans but with Majority Democrats. It will be very interesting, as you say, ed, to see where the debt ceiling debate continues after the proposal last week from the House Republicans meeting down in williamsburg, but there are also two other big deadlines here forcing issues. One is the sequestration and the other is the socalled continuing resolution that would keep the government going and thats where the fight may well be played, right . Absolutely. You could see a Government Shutdown sometime after march 27th if the continuing resolution isnt extended, but what were hearing now by the way, senator Chuck Schumer talked about this yesterday is democrats saying, we are going to in the senate, we are going to put up a budget and that budget is going to involve new revenues and spending cuts and it would be kind of crazy not to incorporate all of these into that document. All right. Thanks to jared bernstein, don baer, chuck gabriel, hampton pierce on and eamom jabbers. The 57th inauguration of a president. The 21st time that a president has been inaugurated, a sitting president , for a second term. Its been a very interesting day. I think the award for funkiest chappeau goes to justice scalia. He was wearing one of the ceremonial hats. I want to leave you with this. The first president to wear long pants to a ceremony was john quincy adams. Before that they wore footy footy pajamas im told. On that very interesting note, we leave you. We thank you for being with us today. Be sure to watch squawk box first thing tomorrow morning at 6 00 a. M. Guest dinakar sink and ellen kullman. Have a great day. Arts, and spend more time trading. Their quick trade bar lets my account follow me online so i can react in realtime. Plus, my local scottrade office is there to help. Because they know i dont trade like everybody. I trade like me. Im with scottrade. announcer scottrade. Voted best Investment Services company. Nothing. Are you stealing our Daughters School supplies and taking them to work . No, i was just looking for my stapler and my. This thing. I save money by using fedex ground and buy my own supplies. Thats a great idea. Im going to go. We got clients in today. [ male announcer ] save on ground shipping at fedex office. [ male announcer ] how do you turn an entrepreneurs dream. Into a scooter that talks to the cloud . Or turn 30million artifacts