Transcripts For CNBC State Of The Union 2014 20140129

Inside. It has not been a good year for the president. In the last state of the Union President obama called on congress for an increase in the minimum wage. He didnt get it, and today he announced he was sidestepping congress to get the minimum wage increase for some federal workers. Immigration reform went nowhere. Gun control measures stalled. The president wauxz into the chamber for the First Time Since the 17day Government Shutdown centered around his Signature Health care law. The same bitterly divided donothing congress were just 72 laws passed in all of 2013. We have an allstar panel joining us tonight for our live coverage. Were joined by shark tank agency kevin oleary, cnbc contributeors jared bernstein, the former chief economist for veep joe biden, white house political direct for president george w. Bush, nara tanden. She was president obamas domestic policy director during his reelection campaign. And cnbcs robert frank. First, lets go to cnbcs chief washington correspondent john harwood with some setup on what we can expect to hear tonight from the president. John. I think were going hear from a president who is chacened by the political difficulties had he in the last year. He knows that the window is closing for him to get big things done with congress, but he cant afford the perception of a presidency thats paralyzed, so he is going to talk about things he can do on his own like that minimum wage executive order. It doesnt affect that many people, and most of the things that he is talking about doing by executive authority is talking about trying to leverage small amounts of money or policy, hope those little small ripples in the pond create bigger ripples in the country, but he knows the big things that he wants to get done still do depend on congress. Things like passing reform in the immigration system, raising the minimum wage nationally, not just for a few fooem people, and he is trying to surf on the momentum that they got from the recent budget deal. Some signs of progress. Republicans a little sick of the fighting themselves. Every house seat is up for election in november, and so theres some hope that the president s legislative prospects may be a little better at this moment than the end of the year in 2013. John harwood, thank you so much. As were watching the assistant sergeant at arms introducing the president s cabinet, of course. Can you see there secretary of state john kerry, the treasury secretary jack lew as they shake hands. We want to get down to ayman jabers. Im standing just outside of where you are seeing those political stars entering the chamber here. Always so much pomp and circumstance weve seen this president before, but, of course, theres so much expectation here for what it is he can say now. As john says, to turn the political ship around on his behalf going into 2014. We expect him to make what he said will be a call for action this year. He wants to get something done this year. Well see if the members of congress will have to go with him and fwrae with that message and then, of course, also in the chamber with him weve got a little bit of celebrity here. Were going to have the ceo of General Motors in the chamber sitting in the first ladys box, and also Willie Robertson from duck dynasty is here. Just saw him come by a little earlier, guys. Watch for his American Flag ban dana. He is all decked out for the occasion tonight. Amman on the hill for us. As we mentioned earlier, start with kevin oleary of shark tank. I love that we just finished watching a shark tank. Were going from shark tanks for sharks to a tank full of sharks. We all talk about jobs. 50 of this economy is driven by Small Business. Six million of them, and they are mired in regulation, taxes, confusion in health care. If you want jobs in america, you fix that problem right now, and you address it in this speech tonight. Is that going to happen . I think the problem with the challenge facing the president tonight and i take your point is that you really cant go up here and do what you have done five times before, which is to tick off a list of things that arent going to happen because you dont have the congress. So to the extent that those ideas that you are espousing are getting a big fat no from the congress, thats going to be a long fight. More interesting is this idea of trying to get around congress. Not everybody likes it, but these executive orders do give him a hands to back up this idea of a year of action. I actually think its important. To quote the wall street journal, past speeches have been proposal graveyards. Its not that the president couldnt announce something significant tonight. Its just that it seems unlikely, especially if you consider that what he called for last year, tightening gun laws, addressing Climate Change, overhauling the immigration process, even increasing the minimum wage. Im not sure weve seen Much Movement since he asked for those things. Immigration reform passed the senate. Its really up to the house. We have seen some conversation, discussion, by house leadership that after the republican primaries, theyre going to take that issue up. I think minimum wage is an issue where, you know, thats going to move when people feel the pressure to do it, and i think what the president is about to talk about tonight is not just federal action, but action in the states on minimum wage and localalities and municipalities. The mayoral level. I hi the president is really focused on making change wherever he can, and thats why he is going to talk about things like Immigration Reform in the congress, but he is also going to talk about executive action like pushing minimum wage at the federal level for contractors, but also working with states to pass it. California, major state, just passed initiative passed a law to do minimum wage at 10. 10. Thats a pretty big move, and wronk that would have happened if the president didnt talk about it last year. Sarah, to what degree are you looking for overreach, as someone put it today . Well, i think that he will be pretty aggressive. Its pretty bold to walk into the congress and tell them that he is going to ignore them. He is going to do it his way. That takes some guts. I think if he really wanted to score some points and improve his standing with the American People, he would walk into that Chamber Tonight and he would buck his own party. He would talk about some big things. Like reforming Social Security. Like reforming the Corporate Tax code. Thats the kind of those are the kinds of programs, the kinds of change that would really get this economy growing. The vast majority of the American People do not want these changes, and there are ways as you know Social Security is a longterm challenge. It isnt an immediate challenge. He is by the way, i believe he is going to Say Something about Corporate Tax reform, so we should listen for that. I agree. Do you expect any kind of one other point. You made the point about Climate Change last year. This is one place uniquely among these executive orders where a Supreme Court decision has, in fact, put the power in the administrations hands the president is preparing regulation that is would raise emission standards for existing power plants and that could make a major difference on this issue. John, you have to admit going back to sarahs point. Tonight this year, and that gives him the opportunity to try to move the needle on public opinion, see if he can generate some pressure for his legislative priorities, and then if he doesnt get the legislative priorities, which, as you noted, he hasnt gotten, figure out what he can do. Climate is one place where he can do a lot. Other places, he may not be able to do so much, but he doesnt want to sit there and twiddle his thumbs. He has three years to go. Thats the fact here. He has actually been quite aggressive with respect to his executive orders. John is right. E. P. A. Has been putting these out left and right. Talk to anyone in the coal industry, and they will tell you they dont think things in their industry can get much worse based on what has happened at the e. P. A. Look at the forprofit Education Sector out of d. O. E. They have been very aggressive at the department of education proposing executive orders on these institutions, and it really is a challenge, and the thought that this is going to become even more aggressive out of this administration is pretty troubling. I think were i have to say i think were kind of losing sight. The president isnt saying he doesnt want to work with congress and he is not going to deal with them. He is saying he wants to take action where he can. The house sergeant of arms just announcing the president of the United States. There is some discussion about the degree to which he talks about those bread and butter issues weve been discussing for the past ten minutes, while also taking aim at the wealthy by name. Thats going to be an interesting wrinkle in this speech, and by tone. This was billed as the inequality speech, right. For weeks weve been hearing this will be the centerpiece. It will be about inequality. First, you can solve inequality by lifting p the bottom or taking down the top. You see them move from talking a lot about fat cats and fair share to just talking about helping those at the bottom. Im going to keep an ear out to see whether he really says anything about, you know, the wealthy need to pay more, because thats become so explosive. I think he is probably going to avoid it. Today, kevin, the Washington Post says voters arent necessarily responding to the idea that you have to take something from somebody else away from them in order to help the middle class. Thats because its unamerican, carl. Theres always going to be a 1 , always. Thats the statistical norm of having people that have wealth. On the way to becoming wealthy, they create billions of jobs and pay billions in taxes. It sometimes works in elections. It certainly worked against romney. It worked for deblazio. Among a large part of the population, that is popular, but it has become so explosive, particularly with political donors that i just dont think he is going to go there. Guys, hey, i theres also the fact that the top 1 has much more income than they really had since the late 1920s. We should celebrate that right now. The president has some comments about how well folks at the top have done. I think robert is right. I think youre going to hear about some help from an expanded earned income credit, the minimum wage point, some other issues that help lift the bottom, and i think thats going to be good. Sfroo those are all bad ideas. John. Guys, guys, i hate to break it to you. Raising taxes on wealthy people is very popular. You put that on a poll, you get very big numbers. I dont think its going to be in the speech tonight. Its true well, thats correct because the president got the tax increases he is going to get out of this congress. He knows he is not going to get anymore. People it is true that people dont like class warfare per se, but the idea of raising taxes on people at the top is not an unpopular idea across the country. I have to say, i think the issue here as people talk about the top and the bottom, i think the issue is that most americans worry that theres not enough in the middle, that we arent expanding the middle class, that the middle class is actually shrinking, and i think the president is going to talk to those concerns. They have concerns about the cost of housing, the cost of college, the cost of rent, the cost of mortgage, and i think those are the issues that are going to animate the president today, and i have to say thats a popular way to talk to the American People. People American People are concerned that theres too much polarization, theres too many wealthy people and too many poor people, and theres not enough middle, top or bottom. I think youre going to hear a lot more about opportunity, ladders of opportunity than you are about inequality. Absolutely. I agree. How do you pay for it . All the programs that he is going to propose cost money, and unless you get revenue from those who are making the most income and paying the most taxes, where does it come from . Zoo stimulate the economy by providing more growth in jobs through Small Business, which has been totally ignored in this administration for six years. Or you have to increase wages, which is really the big challenge in our economy. We dont have enough demand because wages are stagnating. Weve never balanced the budget through tax increases. Weve balanced the budget through stronger growth. Thats right. Going to pause here for a moment as the president gives the speech to the speaker of the house. Members of congress, i have the high privilege and distinct honor of presenting to you the president of the wraits. United states. President of the United States. Thank you. Thank you. Thank you so much. Thank you. Thank you. Thank you so much. Mr. Speaker, mr. Vice president , members of congress, my fellow americans, today in america a teacher spent extra time with a student who needed it and did her part to lift americas Graduation Rate to its highest levels in more than three decades. An entrepreneur flipped on the lights in her tech startup and did her part to add to the more than eight million new jobs our businesses have created over the past four years. [ applause ] an autoworker finetuned some of the best, most fuelefficient cars in the world and did his part to help america wean itself off foreign oil. A farmer prepared for the spring after the strongest fiveyear stretch of farm exports in our history. A rural doctor gave a young child the first prescription to treat asthma that his mother could afford. [ applause ] a man took the bus home from the graveyard shift, bone tired, dreaming big dreams for his son. In a tightknit community all across america, fathers and mothers will tuck in their kids, put an arm around their spouse, remember fallen comrades, and give thanks for being home from a war that after 12 long years is finally coming to an end. [ applause ] tonight this chamber speaks with one voice to the people we represent. It is you, our citizens, who make the state of our union strong. [ applause ] and here are the results of your efforts. The lowest Unemployment Rate in over five years, a rebounding housing market, a Manufacturing Sector thats adding jobs for the First Time Since the 1990s, more oil produced more oil produced at home than we buy from the rest of the world. The first time thats happened in nearly 20 years. [ applause ] our deficits cut by more than half, and for the first time for the first time in over a decade Business Leaders around the world have declared that china is no longer the worlds number one place to invest. America is. [ applause ] thats why i believe this can be a breakthrough year for america. After five years of grit and determined effort the United States is better positioned for the 21st century than any other nation on earth. The question for everyone in this chamber, running through every decision we make this year is whether we are going to help or hinder this progress. For several years now this town has been consumed by a argument over the proper size of the federal government. Its an important debate, one that dates back to our very founding. When that debate prevents us from carrying out even the most basic functions of our democracy, when our differences shut down government or threaten the full faith and credit of the United States, then we are are not doing right by the American People. [ applause ] noushg as president im committed to making washington work better and rebuilding the trust of the peoples who sent us here, and i believe most of you are too. Last month thanks to the work of democrats and republicans, Congress Finally produced a budget that undoes some of the last years severe cuts to priorities like education. Nobody got everything they wanted. We can still do more to invest in this countrys future while bringing down our deficit in a balanced way, but the budget compromise should leave us freer to focus on creating new jobs, not creating new crisis. In the coming months [ applause ] in the coming months lets see where else we can make progress together. Lets make this a year of action. Thats what most americans want. For all of us in this chamber to focus on their lives, their hopes, their aspirations. What i believe unionitis the people of this nation, regardless of race, or region, or party, young or old, rich or poor, is the simple profound belief in opportunity for all. The notion that if you work hard and take responsibility, you can get ahead in america. [ applause ] lets face it that belief has suffered some serious blows. Over more than three decades, even before the Great Recession hit, massive shifts in technology and global competition had eliminated a lot of good middle class jobs and weakened the economic foundations that families depend on. Today after four years of Economic Growth corporate profits and stock prices have rarely been higher, and those at the top have never done better, but average wages have barely budged. Inequality has deepened. Upward mobility has stalled. The cold hard fact is that even in the midst of recovery, too Many Americans are working more than ever just to get by, let alone to get ahead. Too many still arent working at all. So our job is to reverse these trends. It wont happen right away, and we wont agree on everything, but what i offer tonight is a set of concrete, practical proposals to speed up growth, strengthen the middle class and build new ladders of opportunity into the middle class. Some require congressional action, and i am eager to work with all of you. But america does not stand still, and neither will i, so wherever and whenever i can take steps without legislation to expand opportunity for more american families, thats what im going to do. As usual, our first lady sets a good example. Michelles [ applause ] well. Yeah. Michelles lets move partnership with schools, businesses, local leaders has helped bring down Childhood Obesity rates for the first time in 30 years, and thats an achievement that will improve lives and reduce Health Care Costs for decades to come. The joining forces alliance, the michelle and joe biden launch has already encouraged employers to hire or train nearly 400,000 veterans and military spouses. [ applause ] taking a page from that playbook, the white house just organized a College Opportunity summit where already 150 universities, businesses, and nonprofits have made concrete commitments to reduce inequality and access to Higher Education and to help every hardworking kid go to college and succeed when they get to campus and across the country were partnering with mayors, governors, and state legislatures on issues from homelessness to marriage equality. The point is there are millions of americans outside of washington who are tired of stale political arguments and are moving this country forward. They believe, and i believe that here in america our success should depend not on accident of birth, but the strength of our work ethic and the scope of our dreams. Thats what drew our forebearers here. Thats how the daughter of the factory worker is ceo of americas largest automaker. How the son of a bar keep is speaker of the house. [ applause ] how the son of a single mom can be president of the greatest nation on earth. [ applause ] opportunity is who we are, and the defining project of our generation must be to restore that promise. We know where to start. The best measure of opportunity is access to a good job. With the economy picking up speed, Companies Say they intend to hire more people this year, and over half of big manufacturers say theyre thinking of insourcing jobs from abroad. [ applause ] so lets make that decision easier for more companies. Both democrats and republicans have argued that our tax code is riddled with wasteful, complicated loopholes that punish businesses investing here and reward companies that keep profits abroad. Lets split that equation. Lets Work Together to close those loopholes, end those incentives to ship jobs overseas and lower tax rates for businesses that create jobs right here at home. [ applause ] moreover, we can take the money we save from this transition to tax reform to create jobs rebuilding our roads, operating our ports, unclogging our commutes because in todays Global Economy, first class jobs gravitate to first class infrastructure. Well need congress to protect more than three million jobs by finishing transportation and waterways bills this summer. That can happen. [ applause ] but ill act on my own to slash bureaucracy and streamline the permitting process for key projects so we can get more construction workers on the job as fast as possible. We also have the chance right now to beat other countries in the race for the next wave of hightech manufacturing jobs. My administration has launched two hubs for hightech manufacturing in raleigh, north carolina, and youngstown, ohio, where weve connected businesses to Research Universities that can help america lead the world in advanced technologies. Tonight im announcing well launch six more this year. Bipartisan bills in both houses could double the number of these hubs and the jobs they create, so get those bills to my desk. Put more americans back to work. [ applause ] lets do more to help the entrepreneurs and Small Business owners who create most new jobs in america. Over the past five years my administration has made more loans to Small Business owners than any other, and when 98 of our exporters are Small Businesses, new trade partnerships with wrurp and the asia pacific will help them create even more jobs. We need to Work Together on tools like Bipartisan Trade Promotion Authority to protect our workers, protect our environment, and open new markets to new goods stamped made in the usa. Lisp, china and europe arent standing on the sidelines. Metro should we. We know that the nation that goes all in today will own the Global Economy tomorrow. This is an edge america cannot surrender. Federally funded Research Helps lead to the ideas behind google and smartphones, and thats why congress should undo the damage done by last years cuts to basic research so we can unleash the next Great American discovery. [ applause smchlt [ [ applause ] there are entire industries to be built based on vaccines that stay ahead of drugresistant bacteria or paper thin material thats stronger than steel, and lets pass a patent reform bill that allows our businesses to stay focused on innovation, not costly and needless litigation. One of the biggest factors in bringing more jobs back is our commitment to american energy. The all the above Energy Strategy i announced a few years ago is working, and today america is closer to Energy Independence than we have been in decades. One of the reasons why is natural gas. If extracted safely, its the bridge fuel that can power our economy with less of a Carbon Pollution that causes Climate Change. Businesses plan to invest almost 100 billion in new factory that is use natural gas. Ill cut red tape to help states get those factories built and put folks to work, and this congress can help by putting people to work building fueling stations that ship more cars and trucks from foreign oil to american natural gas. [ applause ] meanwhile, my administration will keep working with the industry to sustain production and jobs growth while strengthening protection of our air, our water, our communities. While were at it, ill use my authority to protect more of our pristine federal lands for future generations. [ applause ] theres not just oil and natural Gas Production thats booming. Were becoming a Global Leader in solar too. Every four minutes another american hole or business goes solar. Every panel pounded into place by a worker whose job cannot be outsourced. Lets continue that progress with a smarter tax policy that stops giving 4 billion a year to fossil fuel industries that dont need it so we can invest more in fuels of the future that do. [ applause ] even as weve increased energy production, we partnered with businesses, builders, and local communities to reduce the energy we consume. When we rescued our automakers, for example, we worked with them to set higher fuel efficiency standards for our cars. In the coming months ill build on that success by setting new standards for our trucks so we can keep driving down oil imports and what we pay at the pump. Taken together our Energy Policy is creating jobs and leading to a cleaner and safer climate. In the past eight years its reduced our total Carbon Pollution more than any other nation on earth. But we have to act with more urgency because a changing climate is already harming western communities struggling with drought and coastal cities dealing with floods. Thats why i directed my administration to work with states, utilities, and others to set new standards on the amount of Carbon Pollution our power plants are allowed to dump into the air. The shift the shift to a cleaner Energy Economy wont happen overnight, and it will require some tough choices along the way, but the debate is settled. Climate change is a fact, and when our childrens children look us in the eye and ask if we did all we could to leave them a safer, more stable world with new sources of energy, i want us to be able to say yes, we did. [ applause ] finally, it is time to heed the call of Business Leaders, faith leaders, law enforcement, and fix our broken immigration system. [ applause ] republicans and democrats in the senate have acted, and i know that members of both parties in the house want to do the same. Independent economists say Immigration Reform will shrink our deficits by 1 trillion in the next two decades, and for good reason. When people come here to fulfill their dreams, to study, invent, contribute to our culture, they make our country a more attractive place for businesses to locate and create jobs for everybody, so lets get Immigration Reform done this year. Lets get it done. Its time. The ideas identify outlined can speed up growth and create more jobs, but in this rapidly changing economy, we have to make sure that every american has the skills to fill those jobs. The good news is we know how to do it. Two years ago as the Auto Industry came roaring back, amdra rush opened up a Manufacturing Firm in detroit. She knew that ford needed parts for the bestselling truck in america, and she knew how to make those parts. She just needed the work force. So she dialed up what we call an american job center. Places where folks can walk in to get the help or training they need to find a new job or a better job. She was flooded with new workers. Today Detroit Manufacturing Systems has more than 700 employees. What andra and her employees experienced is how it should be for every employer and every job seeker. Tonight ive asked Vice President biden to lead an across the board reform of americas Training Programs to make sure they have one mission. Train americans with the skills employers need and match them to good jobs that need to be filled right now. [ applause ] that means more on the job training and more apprenticeships that set a young worker on an upward trajectory for life. It means connecting companies to Community Colleges that can help Design Training to fill their specific needs. If Congress Wants to help, you can concentrate funding on proven programs that connect more ready to work americans with ready to be filled jobs. Im also convinced we can help americans return to the work force faster by reforming Unemployment Insurance so that its more effective in todays economy. First, this Congress Needs to restore the Unemployment Insurance you just let expire for 1. 1. 6 million people. Let me tell you why. Misty demars is the mother of two young boys. She had been steadily employed since she was a teenager, put herself through college. She had never collected unemployment benefits, but she had been paying taxes. In may she and her husband used their life savings to buy their first home. A week later budget cuts claimed the job she loved. Last month when their Unemployment Insurance was cut off, she sat down and wrote me a letter. The kind i get every day. We are the face of the unemployment crisis, she wrote. Im want dependent on the government. Our country depends on People Like Us who build careers, contribute to society, care about our neighbors. Im confident that in time i will find a job. I will pay my taxes, and we will raise our children in their own home in the community we love. Please give us this chance. Congress, give these hardworking, responsible americans that chance. Give them that chance. Give them the chance. They need our help right now, but more important, this country needs them in the game. Thats why i have been asking ceos to give more longterm unemployed workers a fair shot, add new jobs, a new chance to support their families, and, in fact, this week many will come to the white house to make that commitment real. Tonight i ask every Business Leader in america to join us and do the same because we are stronger when america fields a full team. Of course, its not enough to train todays work force. We also have to prepare tomorrows work force by fwarn teeing every child access to a world class education. As Steven Rodriguez couldnt speak a word of english when he moved to new york city at age 9. Last month thanks to the Great Teachers and innovative tutoring program he led a march of his classmates through parents from the high school to the post office where they mailed off their college applications, and this son of a factory worker just found out he is going to college this fall. [ applause ] five years ago we set out to change the odds for all our kids. We worked with lenders to reform Student Loans spshgs today more young people are earning College Degrees than ever before. Race to the top with the help of governors from both parties has helped states raise expectations and performance. Teachers and principles in schools from tennessee to washington d. C. Are making big strides in preparing students with the skills for the new economy, problemsolving, critical thinking, science, technology, engineering, math. Some of this change is hard. It requires everything from more challenging curriculum and more demanding parents to better support for teachers and new ways to measure how our kids think, not how well they can fill in a bubble on a test. But it is worth it, and it is working. The problem is were still not reaching enough kids, and were not reaching them in time, and that has to change. Research shows that one of the best investments we can make in a childs life is high quality early education. Last year i asked this congress to help states make high quality prek available to every 4yearold, and as a parent as well as a president i repeat that request tonight. But in the meantime 30 states have raised prek funding on our own. They know we cant wait. Just as we worked with states to reform our schools, this year well invest in new partnerships with states and communities across the country in a race to the top for our youngest children, and as congress decides what its going to do, im going to pull together a coalition of elected officials, Business Leaders, and philanthropists willing to help more kids access the high quality prek that they need. It is right for america. We need to get this done. Last year i also pledged to connect 99 of our students to highspeed broadband over the mechanics four years. Tonight i can announce that with the support of the fcc and Companies Like apple, microsoft, sprint, and verizon, weve got a down payment to Start Connecting more than 15,000 schools and 20 Million Students over the next two years without adding a dime to the deficit. Were working to redesign high schools and partner them with colleges and employers that offer the real World Education and handson training that can lead directly to a job and a career. Were shaking up our system of Higher Education to give parents more information and colleges more incentive to offer better value so that no middle class kid is priced out of a college education. Were offering millions the opportunity to cap their monthly student loan payments to 10 of their income, and i want to work with congress to see how we can help even more americans who feel trapped by student loan debt. And im reaching out to some of americas leading foundations and corporations on a new initiative to help more young men of color facing especially tough odds to stay on track and reach their full potential. The bottom line is michelle and i want every child to have the same chance this country gave us. We know our opportunity agenda wont be complete and too many young people entering the work force today will see the American Dream as an empty promise unless we also do more to make sure our economy honors the dignity of work and hard work pays off for every single american. Today women make up about half our work force, but they still make 77 cents for every dollar a man makes. That is wrong, and in 2014 its an embarrassment. Women deserve equal pay for equal work. [ applause ] she deserves to have a baby without sacrificing her job. A mother deserves a day off to care for a sick child or a sick parent without running into hardship, and, you know what, a father does too. It is time to do away with workplace policies that belong in a mad men episode. This year lets all come together, congress, the white house, businesses from wall street to main street, to give every woman the opportunity she deserves because i believe when women succeed, america succeeds. Now, women hold a majority of lower wage jobs, but theyre not the only ones stiffled by stagnant wages. Americans understand that some people will earn more money than others, and we dont resent those who by virtue of their efforts achieve incredible success. Thats what america is all about. But americans overwhelmingly agree that no one who works fulltime should ever have to raise a family in poverty. [ applause ] in the year since i asked this congress to raise the minimum wage, five states have passed laws to raise theirs. Many businesses have done it on their own. Nick shoot is here today with his boss, john serrano. John is an owner of punch pizza in minneapolis, and nick helps make the dough. Only now he makes more of it. John just gave his employees a raise to 10 an hour, and thats a decision that has eased their Financial Stress and boosted their morale. Tonight i ask more of americas Business Leaders to follow johns lead. Do what you can to raise your employees wages. Its good for the economy. Its good for america. To every mayor, governor, state legislator in america, i say you dont have to wait for congress to act. Americans will support you if you take this on. As a chief executive i intend to lead by example. Profitable corporatings like costco see higher wages as the smart way to boost productivity and reduce turnover. We should too. In the coming weeks i will issue an executive order requiring federal contractors to pay their federally funded employees a fair wage of at least 10. 10 because if you cook our troops meals or wash their dishes, you should not have to live in poverty. Of course, to reach millions more, congress does need to get on board. Today the federal minimum wage is worth about 20 less than it was when Ronald Reagan first stood here. Tom harkin and George Miller have a bill to fix that by lifting the minimum wage to 10. 10. Its easy to remember. 1010. It will give customers more money to spend. It does not involve any new bureaucratic program. Join the rest of the country, say yes. Give america a raise. Give them a raise. There are other steps we can take to help families make ends meet, and few are more effective at reducing inequality and helping families pull themselves up through hard work than the earned income tax credit. Right now it helps about half of all parents at some point. Think about that. It helps about half of all parents in america at some point in their life. I agree with republicans like senator rubio that it doesnt do enough for single workers who dont have kids. Lets Work Together to strengthen the credit, reward work, help more americans get ahead. Lets do more to help americans save for retirement. Today most workers dont have a pension. A Social Security check often isnt enough on its own, and while the stock market has doubled over the last five years, that doesnt help folks who dont have 401ks. Thats why tomorrow i will direct the treasury to create a new way for working americans to start their own retirement savings. Mira. Its a new savings bond that encourages folks to build a nest egg. Mira guarantees no risk of lose whatting you put in, and if this Congress Wants to help, work with me to fix an upside down tax code that gives big tax breaks to help the wealthy save, but does little or nothing for middle class americans. Offer every american access to an automatic i. R. A. On the job so they can save at work just like everybody in this chamber can, and since the most important investment many families make is their home, send me legislation that protects taxpayers from footing the bill for a housing crisis ever again and keeps the dream of homeownership alive for future generations. [ applause ] one last point on financial security. For decades few things exposed hardworking families to Economic Hardship more than a broken health care system. In case you havent heard, were in the process of fixing that. Now [ applause ] a preexisting condition used to mean that someone like amanda schilling, a physicians assistant and single mom from arizona, couldnt get Health Insurance, but on january 1st she got covered. On january 3rd she felt a sharp pain. On january 6th she had emergency surgery. Just one week earlier amanda said and that surgery would have meant bankruptcy. Thats what Health Insurance reform is all about. The peace of mind that if misfortune strikes, you dont have to lose everything. Already because of the Affordable Care act, more than three million americans under age 26 have gained coverage under their parents plan. More than nine million americans have signed up for private Health Insurance or medicaid coverage. [ applause ] nine million. And heres another number. Zero. Because of this law no american, none, zero, can ever again be dropped or denied coverage for a preexisting condition like asthma or back pain or cancer. [ applause ] no woman can ever be charged more just because shes a woman. [ applause ] and we did all this while adding years to medicares finances, keeping medicare premiums flat, and lowering prescription costs for millions of seniors. Now, i do not expect to convince my republican friends on the merits of this law, but i know that the American People are not interested in refighting old battles, so, again, if you have a specific plan to cut costs, cover more people, increase choice, tell america what you do differently. Lets see if the numbers add up. But lets not have another 40 something votes to repeal a law thats already helping millions of americans like amanda. [ applause ] the first 40 were plenty. We all owe it to the American People to say what were for. That is what were against. If you want to know the real impact this law is having, just talk to doug bashir from kentucky. Kentucky is not the most liberal part of the country. Thats not where i got my last vote totals. He is like a man possessed when it comes to covering his commonwealths families. Our neighbors and our friends, he said. Theyre people we shop and go to church with, farmers out on the tractor, grocery clerks. Theyre people who go to work every morning praying they dont get sick. No one deserves to live that way. Steve is right. Thats why tonight i ask every american who knows someone without Health Insurance to help them get covered by march 31st. Help them get covered. Moms, get on your kids to sign up. Kids, call your mom and walk her through the application. It will give her some peace of mind, and, plus, shell appreciate hearing from you. After all, thats the spirit that has always moved this nation forward. Its the spirit of citizenship, the recognition that through hard work and responsibility we can pursue our individual dreams, but still come together as one American Family to make sure the next generation can pursue its dreams as well. Citizenship means standing up for everyones right to vote. [ applause ] last year part of the Voting Rights act was weakened, but conservative republicans and liberal democrats are working together to strengthen it, and the Bipartisan Commission i appointed shared by my Campaign Lawyer and governor romneys Campaign Layer came together and offered reforms so that no one has to wait more than a half hour to vote. Lets support these efforts. It should be the power of our vote, not the size of our Bank Accounts that drives our democracy. [ applause ] citizenship means standing up for the lives that gun violence steals from us each day. Ive seen the courage of parents, students, pastors, police officers, all over this country who say we are not afraid, and i intend to keep trying with or without congress to help stop more tragedies from visiting innocent americans in our movie theaters and our shopping malls or schools like sandy hook. Citizenship demands a sense of common purpose. An obligation to serve our communities. I know this chamber agrees that few americans give more to their country than our diplomats and the men and women of the United States armed forces. [ applause ] thank you. [ applause ] tonight because of the extraordinary troops and civilians who risk and lay down their lives to keep us free, the United States is more secure. Nearly 180,000 americans were serving in iraq and afghanistan. Today all our troops are out of iraq, and 60,000 of our troops. Our troops have moved to a support role. Together with our allies, we will complete our mission there by the end of this year, and americas longest war will finally be over. [ applause ] as of 2014 we will support a unified afghanistan as it takes responsibility for its own future. If the Afghan Government signs a Security Agreement that we have negotiated, a small force of americans could remain in afghanistan with nato allies to carry out two narrow missions. Training and assisting Afghan Forces and Counterterrorism Operations to pursue any remnants of al qaeda. While our relationship with afghanistteghanistan will chang thing will not. The fact that terrorists do not launch attacks against our country. [ applause ] the fact is that danger remains. While weve put al qaedas core leadership on a path to defeat, the threat has evolved, as al qaeda affiliates and other extremists take root in different parts of the world. In yemen, somalia, iraq, mali we have to keep working with partners to disrupt and disable those networks. In syria well support the opposition that rejects the agenda of terrorist networks. Here at home well keep strengthening our defenses and combat new threats like cyber attacks, and as we reform our defense budget, we will have to keep faith with our men and women in uniform and invest in the capabilities they need to succeed in future missions. [ applause ] we have to remain vigilant. I strongly believe our leadership and our security cannot depend on an outstanding military alone. I have to use force when needed protect the American People, and i will never hesitate to do so as long as i hold this office, but i will not send our troops into harms way unless it is truly necessary, nor will i allow our sons and daughters to be mired in openended conflicts. We must fight the battles that need to be fought. Not those that terrorists prefer from us. Large scale demroimts that drain our strength and may ultimately feed extremism. So even as we type ofly and aggressively pursue terrorist networks through more targeted efforts by building the capacity of our foreign partners, america must move off a permanent war footing. [ applause ] thats why ive imposed limits on the use of drones. For, we will not be safer if people abroad believe we strike within their countries without regard for the consequence. Thats why working with this congress i will reform our surveillance programs because the vital work of our Intelligence Community depends on Public Confidence here and abroad. The privacy of ordinary people is not being violated. [ applause ] and when the afghan war ended, this needs to be the Year Congress lifts the remaining on detainee transfers and we close the prison at Guantanamo Bay because we Counter Terrorism not just through intelligence and military actions, but by remaining true to our constitutional ideals, and setting an example for the rest of the world. You see, in a world of complex threats, our security, our leadership depends on all elements of our power, including strong and principle diplomacy. American diplomacy has rallied more than 50 countries to prevent Nuclear Materials from falling into the wrong hands and allowed us to reduce our own reliance on cold war stockpiles. American diplomacy backed by the threat of force is why syrias chemical weapons are being eliminated. [ applause ] and we will continue to work with the International Community to usher in the future of the Syrian People deserve. A future free of dictatorship, terror, and fear. As we speak, american diplomacy is supporting israelis and palestinians as they engage in the difficult but necessary talks to end the conflict there, to achieve dignity and an independent state for palestinians and lasting peace and security for the state of israel, a jewish state that knows america will always be at their side. [ applause ] and it is american diplomacy backed by pressure that has halted the progress of Irans Nuclear program and rolled back parts of that program for the very first time in a decade. As we gather here tonight, iran has begun to eliminate its stockpile of higher levels of enriched uranium. Its not installing advanced centrifuges. Unprecedented mpgs inspections help the world verify every day that iran is not building a bomb, and with our allies and partners, were engaged in negotiations to see if we can peacefully achieve a goal we all share. Preventing iran from obtaining a nuclear weapon. [ applause ] these negotiations will be difficult. They may not succeed. We are cleareyed about irans support for terrorist organizations like hezbollah, which threatens our allies, and were clear about the mistrust between our nations, mistrust that cannot be wished away. But these negotiations dont rely on trust. Any longterm deal we agree to must be based on verifiable action that convinces us and the International Community that iran is not building a nuclear bomb. If john f. Kennedy and Ronald Reagan could negotiate with the soviet union, then surely a strong and confident america can negotiate with less powerful adversaries today. [ applause ] the sanctions that we put in place help make this opportunity possible, but let me be clear. If this Congress Sends me a new sanctions bill now that threatens to derail these talks, i will veto it. For the sake of our national security, we must give diplomacy a chance to succeed. If irans leaders do not seize this opportunity, then i will be the first to call for more sanctions and stand ready to he exercise all options to make sure iran does not build a nuclear weapon, but if irans leaders do seize the chance, and well know soon enough, then iran could take an important step to rejoin the community of nations and we will have resolved one of the leading security challenges of our time without the risks of war. Finally, lets remember that our leadership is defined not just by our defense against threats, but by the enormous opportunities to do good and promote understanding around the globe, to forge greater cooperation, to expand new markets, to free people from fear and want and no one is better positioned take advantage of those opportunities than america. Our alliance with europe remains the strongest the world has ever known. From tunisia to burma were supporting those willing to do the hard work of democracy. In ukraine we stand for the principle that all people have the right to express themselves freely and peacefully, and they have a say in their countrys future. Across africa were bringing together businesses and governments to double access to electricity and help end extreme poverty. In the americas were building new ties of commerce, but were also expabding cultural and Business Expansion among young people, and we will continue to focus on the Asian Pacific where we support our allies, shape the future of greater security and prosperity, and extend a hand to those devastated by disaster, as we did in the philippines when our marines and civilians rushed to aid those battered by a typhoon and who were greeted with words like we will never forget your kindness and god bless america. We do these things because they help promote our longterm security and we do them because we believe in the inherent dignity and equality of every human being regardless of race or religion, creed or sexual orientation. Next week the world will see one expression of that commitment when team usa marches the red, white, and blue into the Olympic Stadium and brings home the gold. [ applause ] [ chant usa ] my fellow americans, no other country in the world does what we do. On every issue the world turns to us. Not simply because the size of our economy or our military might, but because the wherideae stand for and the burdens we bare to advance them. No one knows this better than those who serve in uniform. As this time of war draws to a close, a new generation of heroes returns to civilian life. Well keep slashing that backlog so our veterans will see the benefits theyve earned and our Wounded Warriors receive the health care, including the Mental Health care that they need. [ applause ] well keep working to help all our veterans translate their skills and leadership into jobs here at home, and we will all continue to join forces to honor and support our remarkable military families. Let me tell you about one of those families ive come to know. I first met Cory Remsburg, a proud army ranger, at omaha beach on the 65th anniversary of dday along with some of his fellow rangers. He walked me through the program, the ceremony. He was a strong, impressive young man. He had an easy manner, sharp as a tack, and we joked around and took pictures. I told him to stay in touch. A few months later on his tenth deployment cory was nearly killed by a massive roadside bomb in afghanistan. His comrades found him in a canal facedown under water shrapnel in his brain. For months he lay in a coma. The next time i met him in the hospital he couldnt speak. He could barely move. Over the years he has endured dozens of surgeries and procedures, hours of grueling rehab every day. Even now cory is still blind in one eye. Slowly, steadily with the support of care gives like his dad, craig, and the Community Around him, cory has grown strong. Day by day he has learned to speak again and stand again and walk again, and he is working toward the day when he can serve his country again. My recovery has not been easy, he says. Nothing in life thats worth anything is easy. Cory is here tonight, and like the army he loves, like the america he serves, Sergeant First Class Cory Remsburg never gives up, and he does not quit. [ applause ] my fellow americans my fellow americans, men and women like cory remind us that america has never come easy. Our freedom, our democracy has never been easy. Sometimes we stumble, we make mistakes, we get frustrated and discouraged, but for more than 200 years we have put those things aside and placed our collective shoulder to the wheel of progress to create and build and expand the possibilities of individual achievement, to free other nations from tyranny and fear, to promote justice and fairness and equality under the law so that the words set to paper by our founders are made real for every citizen. The america we want for our kids, a rising america where honest work is plentiful and communities are strong, where prosperity is widely shared and opportunity for all lets us go as far as our dreams and toil will take us. None of it is easy, but if we Work Together, if we summon what is best in us the way cory summoned what is best in him, with our feet planted firmly in today, but our eyes cast toward tomorrow, i know it is within our reach. Believe it. God bless you, and god bless the United States of america. [ applause ] that was the president with a moving close to a speech that ran a little more than an hour. The fifth state of the union for president obama. Actually his eighth address to a joint session of congress. What some have called an optimistic energetic speech and a number of proef policies aimed at solar, nat gas before moving to minimum wage, Early Childhood education, and a retirement account, which the president argued has very little principle. John harwood can recap for us. Swron. John. I think you heard from a president who has lost his illusions about changing washington, about changing republicans idealogically. He spoke directly to the American People from the beginning of this speech trying to build support for his proposals where there is not much chance that theyll go along with him. On the issues where he does have some chance of making headway, immigration, he had a lighter touch. He doesnt want to mess up the prospects that republicans for their own political reasons may come along and compromise with him, but on other issues, he was confrontational at times. He defended hiS Health Care plan, and he tried again to rally american support behind the small proposals that he is going to take on his own even if he is stalled in congress, and at the end of the speech, as he noted at the end, he tried to borrow a little of that hero luster from Cory Remsburg with a very touching moment when remsburg stood up, despite his terrific injuries that he suffered in afghanistan and the president said just like this soldier, america doesnt give up, and he is trying to make people think of his presidency that way after a difficult 2013. He has three years left. Trying to figure out how to make the most of it. John, a lot of familiar themes in this speech, and one that was heavy on domestic policy was light on foreign policy. In fact, a lot of people remarking that it almost seemed like he was checking a box when it came to a lot of those issues towards the end. Were there any surprises for you this evening . I dont think so. On foreign policy, i do think he gave particular emphasis on iran and with some passion that is im going to veto any legislation that would impose sanctions that would interfere with the negotiating process thats underway, but i think otherwise, its a series of things that we know the president has been for in the past. If theres any surprise i look for over the next couple of months, it is this. In the long shot hope, kelly, that the president gets republicans in congress to go along with any of his big ticket spending items, whether its infrastructure or Early Childhood education or expansion of the earned income tax credit, i think he may be willing to do that pay for those with some entitlement cuts without seeking tax increases. Remember, on all the talk about budget negotiations, people have said, well, will the president do anything about medicare and Social Security . Yes, if they raise taxes. I think the tradeoff may have changed a little bit, and for some of these investments, playing to the longterm, he might beotology make a different bargain now. John, i wonder as well what you make of the tone of the whole affair. Notably less partisan perhaps than in just the most recent speempz speeches he has given, but in some instances, in other words, where people were clapping on both sides of the aisle, but was that indicative of any kind of softening between the two parties generally . Not generally, but i do think, kelly, there is a little moment of opportunity. The ryanmurray budget deal that was agreed to in the congress in december followed on by the budget agreement just passed was a sign of something. It said that people were exhausted by the endless partisan warfare. They wanted to move ahead. They replaced some of the sequester cuts which republicans had been defending with other longterm cuts that restored some spending. All those things are signs that maybe as we approach the election there are members who have a little more urgency about doing something, showing the American People that congress can function. Immigration may be a place where that can happen. All right. Thank you so much for your thoughts there as we now want to get some instant reaction to the speech from our panel. Again, we are joined here by shark tanks kevin oleary, former chief economist for Vice President joe biden, and by sarah fagan and nira tanden, center for american progress. We should note that the next thing that happens is the gop rebuttal. Im curious, kevin, what you make of this speech, one which do you leave it feeling as though you heard platitudes . Were there any surprises for you . I always like to compare it against the last state of the union to see whats changed in his tonality. We have to remember that america had a bruised international brand. Devastated internationally. I know that as an international investor. Obama did something incredible. He restored the american brand. With so much activision and promise, he won the nobel peace prize. We forget that. Now he is dealing with the mire of executional delusion. So many of the promises were not delivered on, and this speech you are taking counter of many of those. Talking about closing Guantanamo Bay. My goodness, that was a promise of five years ago. Why even bring it up . Of course, i did not give that a check mark. Thats a disaster to me, to bring up a fail lure like that, and there are many other proposals here that i dont like, and i think at the end of the day thats what we should be debating, but the glory from the past is not the patina of his speech. Your thoughts . I like the speech. I actually thought he avoid the thing that i said at the beginning we were sitting here an hour and a half ago where he just ticks through a bunch of things that Congress Wont let him do. I know kevin heard some of that, but i heard a lot of ideas that hell do with congress or without. He talked about a higher minimum munl wage for workers under federal contract. He talked about the mira that i just said better than he did. He talked about that. Heres my surprise. He talked about expanding the earned income tax credit. Slipped by this. He mentioned mark rubio. He mentioned this is an idea that senator rubio also likes. That surprised me. Rubio has talked about cash grants for some of for some people instead of the tax credit program, but in this case it is something he cleared wants to move the needle, and it can potentially do through executive action. When president obama and senator rubio are talking about an antipoverty idea, which i would think is a very good one, increasing the childless that to me is a good moment. Robert frank. As it relates to the money class in this country. Look, i found that this was not the divider in chief. This was the moderator in chief. It was a very moderate speech wresh highlighted, especially at the top, policies that are very corporatefriendly. He said, we americans, understand that some people will earn more than others, and we dont resent those who achieve incredible success. That is a very different language from the fat cats, the fair share, and you didnt build it. I think this was an attempt to really reach the middle ground. Lets talk about things we do have in common and not divide. I think thats going to really play well tomorrow when people look back on this and say, you know, he didnt go pop list. There wasnt that populist cake that people expected of this. Im just curious as well, generally what you make of it, and then i also want to ask people here about this m. I. R. A. Proposal. Its something we havent heard too much about. Its interesting at a time were talking about the Federal Reserve buying fewer treasury bonds. Now perhaps the American Public will be buying more of them. Well, i think, look i think it was an excellent speech. I think it was very optimistic. I think absolutely its a case that, you know, he was not talking about initiative after initiative. He is really talking about the concerns people have. Retirement security is a growing concern for the American People, and i think they see this they see these proposals as not partisan terms. They see them as really solutions for themselves, and whether you are talking about the earned income tax credit, we talked about Small Business and cutting red tape for a Small Business. I would hope that that would appeal to a broad section of people. Maybe even some republicans. Maybe even some republicans. I think it was an optimistic speech. He was trying to get things in terms of retirement security, i hope this is something the federal government can do on its own. Its an executive action. I think to take this challenge on more seriously you need actual federal legislation, but i hope actually with some of these executive actions people can see that theres work to be done and can build a case for federal legislation down the road. Sarah, for all the emotional color at the end, some were saying it was a paint by numbers speech. Yes. Certainly not aspirational by any stretch of the imagination. Not aspirational at all. Think about the fact sheet his administration put out there. They were talking about hosting a summit, launching an institute, you know, doing a governmentwide review of worker programs. To me, you know, this was an incredibly small ball speech, and it reminds me of president clinton going back and talking about midnight basketball and school uniforms. I mean, there just wasnt anything new of substance in this speech, and to jons point earlier about the earned income tax credit, you know, what also struck me watching this speech tonight was he is never far away from his base. He is always thinking about his political base. That earned income tax credit proposal geared towards single people. A huge percentage of those folks turned out heavily for obama in his 2012 election. He talked specifically about supporting black families. Sara, thats the idea that marco rubio and paul ryan and, by the way, a couple of glen hubbard, a couple of republican economists, like im not sure youre right about this. Im not saying its necessarily bad policy, but he spent a lot of time talking about promoting women, which i support wholeheartedly. He talked about single women specifically. He talked about africanamericans. He was talking specifically to his base tonight. Hang on one second, guys. One second. I just want to bring in amman because we dont have much time before the gop is going to respond here. Kind of to this point, this is a president i mean, of course is he going to play to his base. He is a politician, tend of the day. Yeah, absolutely, kelly. He has to do that, and the problem for president s in delivering these state of the Union Speeches is that they read like theyre written by committee, and thats because they are written by committee. Theres a very elaborate process inside the white house for writing one of these, and a lot of people get to contribute, and thats what you hear here, but bare in mind that were about to hear this republican response, and there is a danger there too. Sort of a bit of a curse here in terms of giving the republican response to the president of the United States. It doesnt necessarily always equal the home run that people think it will equal, but we had a brief chance to talk with kat where i Mcmorris Rogers just a few minutes before the speech tonight. Shes going to be giving the republican response tonight, and she joked with a couple of us reporters say, yes, yes, im hydrated. Of course, remembering marco rubios lurch for the water bottle. These people tee up a republican rising star, but they can also ding a republican rising stars reputation. Thats not unrecoverable, but theres risks and rewards here for the republicans. Carl. Always a tough act to follow following the president. Here is the rebuttal from the republicans, congresswoman cathy mcmorris. After the president s state of the union. Tonight we honor america, a nation that has witnessed the greatest rise of freedom and opportunity our world has ever seen. A nation where we are not defined by our limits, but by our potential, and a nation where a girl who worked at the Mcdonalds Drivethru to help pay for college can be with you from the United States capitol, but the most important moments right now arent happening here. Theyre not in the oval office or m house chamber. Theyre in your homes. Kissing your kids good night. Figuring out how to pay the bills. Getting ready for tomorrows drstz visit. Waiting to hear from those you love serving in afghanistan or searching for that big job interview. After all, we, the people, have been the foundation of america since her earliest days. People from all walks of life and from all corners of the world. People who come to america because here no challenge is too great and no dream too big. Thats the genius of america. Tonight the president made more promises that sound good, but wont actually solve the problems facing americans. We want you to have a better life. The president wants that too, but we part ways when it comes to how to make that happen, so tonight i would like to share a more hopeful republican activision, one that empowers you, not the government. Its one that champions free markets and trusts people to make their own decision, not a government that decides for you. It helps working families rise above the limits of poverty and protects our most vulnerable, and its one where washington plays by the same rules that you do. Its a activision that is fair and offers the promise of a Better Future for every american. If you would have told me as a little girl that i would one day put my hand on the bible and be sworn in as a 200th woman to serb in the house of representatives, i wouldnt have thought it possible. I grew up working on my familys orchard and fruit stand in kettle falls. A small town in eastern washington. Getting up before dawn with my brother to pick apples. My dad drove a school bus, and my mom worked as a parttime bookkeeper. They taught me to work hard, help others, and always, always dream for more. So when i showed my fourh animals at the county fair, my parents used to say to me, cathy, you need to save this money so you can go to college one day. So i did. I saved. I worked hard, and i became the first in my family to graduate from college. The chance to go from my washington to this one was unexpected. I came to congress to help empower people. Not politicians. To grow the working middle class, not the government. And to insure that everyone in this country can find a job because a job is so much more than a paycheck. It gives us purpose, dignity, and the foundation to build a future. I was single when i was elected, but it wasnt long before i met brian, a retired navy commander, and now we have three beautiful children, one who was born just eight weeks ago. Like all parents, we have high hopes and dreams for our children, but we also know what its like to face challenges. Three days after our son was born, cole, we got news no parent expects. Cole was diagnosed with down sdreem. The doctor told us he could have endless complications, heart defects, even early alzheimers. They told us all the problems, but when we looked at our son, we saw only possibilities. We saw a gift from god, and today we see a 6yearold boy who dances to bruce springsteen, who reads above grade level, and who is the best big brother in the world. We see all the things he can do, not those he cant. When cole and his sisters, fwras and brin, have only made me more determined see the potential in every human life. That whether were born with an extra 21st chromosome or without a dollar to our name, we are not defined by our limits, but by our potential because our mission, not only as republicans, but as is to once again insure that we are not bound by where we come from, but empowered by what we can become. That is the gap republicans are working to close. Its the gap we all face between where you are and where you want to be. The president talks a lot about income inequality, but the real gap we face today is one of opportunity inequality. With this administrations policies, that gap has become far too wide. We see this gap growing every single day. We see it in our neighbors who are struggling to find jobs, a husband who is now working just parttime, a child who drops out of college because she cant afford tuition or parents who are out living their life savings. Last month more americans stopped looking for a job than found one. Too many people are falling further and further behind because right now the president s policies are making peoples lives harder. Republicans have plans to close the gap. Plans that will focus on jobs first without more spending, government bailouts, and red tape. Every day were working to expand our economy. One manufacturing job, nursing degree, and Small Business at a time. We have plans to improve our education and Training Systems so you have the choice to determine where your kids go to school, so college is affordable, and skills training is modernized. Yes, its time to honor our history of legal immigration. Were working on a step by step solution to Immigration Reform by first securing our borders and making sure america will always attract the best, brightest, and hardest working from around the world. And with too Many Americans living paycheck to paycheck we have solutions to help you take home more of your pay through lower taxes, Cheaper Energy costs, and Affordable Health care. Not long ago i got a letter from betty in spokane who had hoped the president S Health Care law would save her money, but found out instead her premiums were going up nearly 700 a month. We have all talked to too many people who have received cancellation notices they didnt expect or who can no longer see the doctors they always have. No, we shouldnt go back to the things the way things were, but this law is not working. Republicans believe Health Care Choices should be yours, not the governments, and that whether youre a boy with Downs Syndrome or a woman with breast cancer, you can find coverage and a doctor who will treat you. So we hope the president will join us in a year of real action by empowering people, not by making their lives harder with unprecedented spending, higher taxes, and fewer jobs. As republicans, we advance these plans every day because we believe in a government that trusts people and doesnt limit where you finish because of where you started. That is what we stand for. Its for an america that is every bit as compassionate as it is exceptional. If were successful, wreerz from now our children will say that we rebuilt the American Dream. We built a working middle class that could take in anyone and a work force that could take on the world. Whether youre a girl in kettle falls or a boy from brooklyn, our children should be able to say that we closed the gap. Our plan is one that dreams big for everyone and turns its back on no one. The president said many things tonight, but now i ask him to listen to you. For, the true state of the union lies in your heart and in your home. Tomorrow ill watch my son cole get on the school bus. Others will wait in the Doctors Office or interview for that first job. Some of us will celebrate new beginnings. Others will face great challenges. But all of us will wake up and do what is uniquely american. We will look forward to the balanced potential that lies ahead. We will give thanks to the brave men and women who have answered americas call to freedom like Sergeant Jacob hess from spokane who recently gave his life to protect all of ours. So tonight i simply offer a prayer. A prayer for sergeant hesss family, your family, and for our larger American Family that with the guidance of god we may prove ourselves worthy of his blessings of life, liberty, and the pursuit of happiness. For, when we embrace these gifts, we are each doing our part to form a more perfect union. May god guide you and our president and may god continue to bless the United States of america. And that was cathy Mcmorris Rogers, the fourth ranking house republican, the first female republican lawmaker to give a response to the president s state of the Union Address since the year 2000. I just want to quickly go around here and ask our panel what they think on style, on substance, as its been called a thankless task to give the rebuttal, a cursed one as fred barnes seemed to suggest. What was your take, jared . I give her a lot of credit. It is a tough gig, and especially eight weeks after you had a child. Yeah. Shes impressive. I thought the basic message was very thin. We have plans. Republicans have plans. You know, so very little on substance. Where i did hear Something Interesting was at least on three points she agreed with the president. She talked about not inequality opportunity. So did he. That was the framing. She talked about a decline in the labor force as a problem. So did he. Thats right. She used his words year of action. Thats his thing too. I dont know. Maybe theres something there, but other than we have plans, i didnt hear what the plans were. Sara, you got a quick one before we go . I have to agree with jared on this one. I thought cathy did do a great job in this speech. Particularly compared to some of the disastrous republican responses of recent years. It was thin, and i never understand why these leaders dont get together and come up with something really substantive to make some news, but it never happens. It was fine on style, but boring. To use a tennis metaphor, returning service. Up next, the president says he is promising new ladders of opportunity into the middle class. Well examine whats being called the great divide. Kevin oleary says athe 1 should not be penalized. Later, what do investors need to hear from washington as the nikkei, we should mention, is up more than 2 at this hour. Our Market Mavens weigh in on tomorrows trades and what the president had to say this evening. Well be right back. That its given me time toabout reflect on some of lifeseen biggest questions. Like, if you could save hundreds on Car Insurance by making one simple call, why wouldnt you make that call . See, the only thing i can think of is that you cant get any. Bars. Ah, thats better. Its a beautiful view. I wonder if i can see mt. Rushmore from here. Geico. Fifteen minutes could save you fifteen percent or more on Car Insurance. Lets get more reaction of the state of the union speech. Our amman is on capitol hill way special guest. Im standing here with richard trumpka, the president of the aflcio. He listened the speech tonight, and i have to ask you, what your reaction was here to president obama. You have heard him give these speeches before. What makes you think 2014 is the year that he can really deliver for your constituency and later . First of all, i think it was the best speech he has ever given wrfsh as a president that went back to his roots, talking about the middle class, talking about job creation, and all the points that were important for the middle class he hit. Not only that, he used examples of everyday, average working americans to make those points. I thought it was a good point, and i thought he was forceful, and i thought it was a good speech. He talked about raising the minimum wage to 10. 10, but only for federal contractors and contractors that havent actually gone out yet. Where do you think we are in this country on the minimum wage debate right now . Where would you like to see it ultimately be . I would like to see congress get together and say were going to do 10. 10 an hour and then index it for inflation. The people working on minimum wage shouldnting trapped in poverty. When you work for a living, ought to be able to get ahead. The minimum wage needs to be increased. Especially the tipped minimum wage. Those are 77 that are women. They make a very little amount. Its 2. 17 an hour. It hasnt been increased since 1991. That needs to be increased. The president s criticism here is that weve got an economy where the stock market is high, corporate profits are high, but employment ha hasnt caught up, and he said we ought to be hiring, we ought to be giving people wage increases. Where do you think that we can see those wage increases in that new hiring in this economy where companies seem to be able to do a lot more with a lot less in. Well, first of all, if you give if you increase the minimum wage, you will increase the amount of buying power that people have. If you give other workers a raise, youll give them buying power. They create demand. They create more demand for products. That creates jobs. What we see is wages stagnate, and we havent caught up. Were still at a 7 Unemployment Rate, which is higher than the 2001 recession ever was, so we have a long way to go. He talked about infrastructure. That will create jobs. He talked about the minimum wage. That will create jobs. He talked about an unemployment extension. That will create jobs. All of those things will create jobs and put americans back to work. Thanks very much, richard. Thanks for having me. Carl, back to you, guys. Thanks very much. Now we want to just bring open for debate real quick, robert frank, youve been covering this issue of income inequality. Its a huge focus for people both in washington and on wall street. Yet, it almost seemed like the president was burying the lead, if that was the lead of his speech. I think he treaded lightly on the issue. I think inequality was really the undercurrent of the speech, but he didnt hit it head on. He did importantly say, you know, after four years of Economic Growth, corporate profits and stock prices are at an alltime high. The wealthy have never done better. But if you look at what he actually row proposed, theres really nothing in here that would change the trajectory of inequality that would materially change this big divide between the top and the bottom. Im not saying there should be an initiative. Im not saying he should have proposed something or that it would work. Im just saying for those thatmented him to address this very important issue to his base, there was nothing in here that changes. Lets look at an attempt in that speech. We now know by executive order he is going to ram through 10. 10 to federal employees. Thats a quarter million people. Just lets go with the concept of that for a moment. Yeah. Bare with me for a second. Lets keep it simple. Well put a hot dog stand up. Just across from it, ten feet away on a park is another hot dog stand. Federal worker in the federal hot dog stand is now making 10. 10. The other hot dog vendor is making 8. Did i not just see the president take 2 an hour out of the private sector individual who is fighting to stay alive the Small Businessman and his hot dog stand and give it to a federal employee, guarantee it to him in a way that the private sector does not have. Its a have and a havenot proposal. Theres something intuitively very wrong about that. Something very unamerican about that. Theres a simple solution to that problem, and i agree. Move the hot dog stand. Thats the problem. Pass the federal minimum wage. In other words, youre correct. It probably would affect around 250,000 workers who were its philosophical. Let me finish. 17 million workers would get a raise from a minimum wage increase. Theres a difference with what you do with an executive order versus federal legislation. Now, look, let me just say, your point about there is no one single policy thats going to change the inequality story. One thing that would help, though, is universal prek. You know, he did hit that. Thats he a long day. Thats a long day. The inequality is a long day story. Let me stop you. You heard what the president had to say. Youve heard the rebulges from the republicans. When we come back, two top investors will tell us what will affect their morning trades. The president , turkey, or the fed . Mine was earned in korea in 1953. Afghanistan, in 2009. Orbiting the moon in 1971. [ male announcer ] once its earned, usaa Auto Insurance is often handed down from generation to generation. Because it offers a superior level of protection. And because usaas commitment to serve current and former military members and their families is without equal. Begin your legacy. Get an Auto Insurance quote. Usaa. We know what it means to serve. And it feels like your lifeate revolves around your symptoms, ask your gastroenterologist about humira adalimumab. Humira has been proven to work for adults who have tried other medications but still experience the symptoms of moderate to severe crohns disease. In clinical studies, the majority of patients on humira saw significant symptom relief, and many achieved remission. Humira can lower your ability to fight infections, including tuberculosis. Serious, sometimes fatal events, such as infections, lymphoma, or other types of cancer, have happened. Blood, liver and nervous system problems, serious allergic reactions, and new or worsening Heart Failure have occurred. Before starting humira, your doctor should test you for tb. Ask your doctor if you live in or have been to a region where certain fungal infections are common. Tell your doctor if you have had tb, hepatitis b, are prone to infections, or have symptoms such as fever, fatigue, cough, or sores. You should not start humira if you have any kind of infection. Ask your gastroenterologist about humira today. Remission is possible. Joining us tonight Wells Capital management jim paulson and meeblg kugino. Welcome to you both. We know the stocks dont necessarily move on the state of the union, but they might. We have the nikkei and futures higher. What are your thoughts as the speech pertained to the markets . Jim. Well, you know, i think carl, the best news out of it, the moderate delivery of the president , an almost admission that he cant really do much right now, the congress is so divided. At least not until the midterm. I think thats the best news of all for wall street. That theyre gridlocked, were not examining to expect any big change out of washington. That mean the private sector can take over, and, by the way, its been doing a pretty good job. Theyve taken the budget deficit from 7. 5 to 4 without a grand bargain from washington. I think thats a little bit of a bid tonight why the futures are up in the overnight trade. Now, michael, for people who might want some specifics coming out of this, some areas to watch, we can talk about the industrials. Youve talked about reinstating tax cuts for some businesses. Housing, finance. Theres a lot of talk about energy. Are you going to wake up tomorrow and change or make any trades . No. As several of the other guests have said, small ball. I think the speech was unremarkable. I think its longterm impact on the market is unconsequential. I think the bigger story thats arisen the last couple of weeks is one of the fed, and the pullback of the bond buying, how soon, other measures, and their impact on the emerging markets and the potential slowing around the world of those and that impact on longterm u. S. Economic growth. Thats the story that bears watching. Oh, yeah. The fed. Thats tomorrow as well. I almost forgot about that. Michael, jim, thanks for staying up with us tonight. Thanks, guys. Jon harwood, what are the headlines going to say tomorrow . I think the headlines will be about the executive abbings the president is going to take on its own. Some hope for compromise on issues like immigration, but this was a president trying to connect with the American People directly. So did cathy Mcmorris Rogers for that matter. For that reason i thought the best line of the president s speech was in that riff about health care when he was encouraging people to sign up. He said call your mom, walk her through the application. Plus, shell enjoy hearing from you. That forced even john boehner to smile and stand up. Finally, would you say on mcmorrisrogers rebuttal is the best of the i thought she looked great. She looked comfortable and relacked. She spoke about values. She had a very appealing story as a new mother, talked about, you know, taking the animals to the fourh, the county fair as part of the 4h and working at the mcdonalds drivethrough. There wasnt much policy in the speech. I just want to go back as well to this mira that the president announced because its kind of linking the two stories together. The state of the union and what the Federal Reserve is doing tomorrow, which is its going to come out and probably say theyre buying fewer treasuries. The American Public now may have more access to buying these treasuries. The details, i guess, well hear later this week . Yes. Important to note on those. There is no tax benefit that flows to them. This is a mechanism that employers can sets up that money will be set aside. It goes into treasury instruments that people cannot lose, so it encourages people to save, tries to build the habit of saving. If they ultimately give tax benefits like iras have, congress will have to act. Well see you later. Our jon har word. That nearly wraps up our state of the union coverage. Kevin oleary is still with us. Tonight a shark makes a 4 million offer to one entrepreneur. I dont know whether you have more fun doing this or that, but tonight was pretty good. You know, carl, theyre both the real world to me. Thats the way i look at it. This is politically charged. That is the real world. Small businesses coming forward looking for capital. It is the litmus test of america. Thats what shark tank is. And this episode were about to watch tonight, youre yes, this was a huge deal, and one of the largest ever proposed. There was value there. You have to stay tuned to watch it. A lot of bait in the water. Theres some interesting moments in that show. Said the shark. Our thanks to you. So good to see you. People actually asking for more of it on twitter. Also, thank you to you, and robert frank, working a long day today. For everybody here on cnbc, thanks for joining us. Im Carl Quintanilla joined by kelly evans. Shark tank begins right now. man this is the shark tank, where hopeful entrepreneurs come seeking an investment from the sharks, five powerful, selfmade investors worth billions. Last season, the sharks invested over 5 million this is the shark tank. Five powerful selfmade investors worth billions. This season, the stakes are higher. Higher. Would you go to four to sell the whole company . One check. laughs you dont have a milliondollar business yet. But only for the right person with the right business. I know that this is a billiondollar industry