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