The White House

Office of the Press Secretary

Statement by the Press Secretary on the Visit of His Majesty King Abdullah II of Jordan

President Obama will meet with His Majesty King Abdullah II of Jordan on February 14 at Sunnylands, the Walter and Leonore Annenberg Estate in Rancho Mirage, California.  The United States and the Hashemite Kingdom of Jordan are close friends and historic partners that have worked together to promote peace, prosperity, and reform.  The President looks forward to discussing with King Abdullah opportunities to strengthen the U.S.-Jordan strategic partnership and how to advance our political, economic, and security cooperation.   The two leaders will also continue consultations on regional developments, including Middle East peace and Syria.

The White House

Office of the Press Secretary

Press Gaggle by Press Secretary Jay Carney and Treasury Secretary Jack Lew Aboard AF1 en route Pittsburgh, PA

Aboard Air Force One
En Route Pittsburgh, Pennsylvania 

11:35 A.M. EST

MR. CARNEY:  Good morning, everyone.  Welcome aboard Air Force One as we make our way to the great city of Pittsburgh in the great state of Pennsylvania.

I'm sure you all heard the President deliver his State of the Union address last night.  This morning he had a terrific event at Costco in Lanham, Maryland, where he highlighted the need for hardworking Americans to receive a living wage, and highlighted the action he’s taking through executive order to lift the minimum wage for new contracts under federal contractors to $10.10 an hour, and calling on Congress to reward hard work and responsibility by raising the minimum wage across the country.

Now we're headed to do an event where the President will talk about his proposal for a new, simple, safe retirement account -- MyRA.  And to discuss that with you today, I have the 76th Secretary of the Treasury, Mr. Jack Lew.  Here he is.

SECRETARY LEW:  Thanks, Jay.  And good to be with you this morning.  Let me just go through a few of the details of what MyRA is.  MyRA is going to be a very simple, very safe retirement account that will, we believe, bring people who are now not participating in any kind of retirement savings into a place where they are.  It’s got a very low threshold for participation -- takes $25 to open an account; minimum contributions per pay period are $5.  It fills a niche which gets people who have not yet participated in to a place where they’re both comfortable doing it because their principal is protected and guaranteed, and it’s easy for them to do at the workplace on each pay check having just a little bit come out.

When you look at the landscape of the retirement savings market, this is really a space that's not well served right now. It’s hard for people to participate for the first time.  They need something that's simple, that's provided in a way that they can do that requires -- has very little friction.  It needs to be in a small-dollar amount, and I think the safety feature, the fact that the principal is protected, will give people who are not accustomed to saving the comfort that they should do this, can do it.

And what we've learned is that when people start saving they get into the habit of saving and they ultimately save more and for longer.  So this is something that is, I think, going to lead into a natural transition for people to participate in more traditional 401(k) kinds of savings, IRA kind of savings.  But you’ve got to get started; this is a great place to get started.

It is modeled on the Roth IRA, so the contributions to it will be after taxes.  The income will be tax-free until you retire.  It will be something that rolls over at $15,000 into a vehicle of your choice -- it’s capped at $15,000.  It’s not meant to be a replacement for, it’s really a bridge to the other aspects of retirement savings. 

It is not the entirety of what we believe we ought to do on retirement policy.  We have had proposals over the years.  We think there are other things like the proposal the President has had over the years to have the opt-out instead of the opt-in feature.  But we think this fills a space which, very importantly, we can do by our own authority.  It’s something that we have the authority at Treasury, the same authority that's used to issue savings bonds, where we can make this product available. And it’s something that we're going to have in place by the end of the year, and we're very excited about it.

Why don't I stop there and take questions?

Q    The return -- we got a fact sheet that says the return is modeled on the federal plan.  Can you tell me what that return is like?

SECRETARY LEW:  It’s the same structure as the G Fund in the Thrift Savings Plan, so it’s the average of yields that are above four years.  And it’s something that we're very familiar with because most federal employees have a Thrift Savings Plan and it’s really the same mechanism.

Q    What was the yield maybe in a recent year?

SECRETARY LEW:  I'd have to go back and check.  Obviously rates have been very modest recently, but it is the safest and most guaranteed investment product.  It will fluctuate as interest rates go up and down, but it’s a rock-solid, safe contribution.  The principal is never at risk and it will be at the rate of Treasury bills.

Q    Is the main difference the threshold where people will participate?  Is the main difference then between this and other vehicles the threshold which people will participate?

SECRETARY LEW:  Well, it’s a challenge to get people into a retirement product.  That's one of the reasons that in the past we've proposed taking away frictions for people who opt out instead of opt in.  This is something that if you're an employer and you offer the option for someone to get in, it’s like a savings bond plan at work.  It’s very easy, very simple, very small contribution levels.  And we think that it is important for building the nest egg, $15,000 is obviously not enough for most people to retire on -- but you have to start with something.  And if you can graduate from this kind of a program to being in the habit of savings, people over a career will be much more secure at the point when they reach retirement.

Q    I'm sorry, I'm trying to understand.  When people say what’s the difference between this and other things you can already do, the difference is the low threshold?

SECRETARY LEW:  Well, the product itself, the guaranteed federal bond fund is new.  That's available to federal workers through the G Fund, but that's something that’s new.  The fact that it’s designed to be at a very low contribution level --  frankly, it’s a part of the market that the private sector is not served very aggressively because it’s something that they have not considered to be that attractive a market.  They’re very interested in products that would be the kind of next-step products.  So if this gets people to save and they save $15,000, there’s a world of options out there that they could graduate into.  So this actually fills a niche that we think is a very important one to fill.

Q    Mr. Secretary, you mentioned on the $15,000 -- is that per year, or the life of the program?

SECRETARY LEW:  That's cumulative.

Q    Cumulative.  Do you have an estimate as to how many people might sign up or enroll in this?

SECRETARY LEW:  Well, we're going to roll it out by the end of the year.  We're going to work with employers of various sizes -- small, medium and large -- to get a good mix of employers in there.  And we want this program to be up and running at the end of the year, beginning of next year, and then take off from there. 

So I'm not going to give you an exact number, but --

Q    A range?

SECRETARY LEW:  No, we know that there are millions of people who are not now saving for retirement.  This is a product that we want to get established and then grow it as fast as we can.

Q    This can obviously be created just by the stroke of a pen, you don't need any congressional help for it?

SECRETARY LEW:  That's correct.  We have the authority to issue this product.

Q    And where will the accounts be housed?

SECRETARY LEW:  There will be a fiscal agent that manages the account, much as we do with other programs now.  We're going out as soon as the program is launched and going to go through a competitive bid.

Q    Will you have to encourage employers to participate?

SECRETARY LEW:  We are reaching out to employers.  I think we're seeing interest in it and I think it’s something that is going to be compatible with plans that employers already have that will help provide something to employees who are not participating now.  And for those employers who don't have a plan, it will be a very simple, low-administrative barrier for them to put a plan in place.

Obviously for employers who offer matching and other incentives, there are good incentives for a lot of individuals already.  But we still have many, many people who are not eligible for plans or who are not participating in plans, and we want to get them started.

Q    Is there any chance that -- right now, as proposed, it limits it to one choice, government bonds.  Is there any chance that you would expand the choice?

SECRETARY LEW:  I think at the moment, we see this very simple, very safe product as being -- that's part of what makes this so attractive, that there is nothing as safe as a federal bond fund where your principal is guaranteed.  And we think that that's the right way to start this program.  Obviously when people graduate and roll into a different kind of investment fund they’ll have a world of choices, and that's something that we look forward to people making those kinds of choices.

Q    Mr. Secretary, one thing you can't do with executive order is raise the debt ceiling.  Is the timetable for that still what you have said before, end of February?  And how are things going with Republicans in Congress on that issue?

SECRETARY LEW:  I've tried to be very clear throughout that we will share information as we have it.  I wrote to Congress last week.  What I told them was that we reach the debt limit on February 7th, as they know, that our extraordinary measures will run out at the end of February in all likelihood, and that they needed to act in that window because it was the only responsible thing to do.

I think they have accepted the deadline.  All the discussions that I’ve had and the things that I’ve read show that they understand that they need to do something by the end of February.  And I think they also understand that there’s not going to be any kind of a negotiation or a ransom paid for Congress to do what it needs to do, which is pay the bills that it’s already committed to.

Just to remind everyone, the budget agreement at the end of the year set a frame for two years of spending.  Just a few days ago, Congress passed an appropriations bill that actually spends money.  All the debt limit does is it gives us the ability to pay the bills that are already incurred.  And since 1789, Congress has always done the right thing and they need to do it again.

Q    Can you explain the confusion as some, even Democratic lawmakers had about the extraordinary measures going well into the spring?

SECRETARY LEW:  I don’t think there’s any confusion now.  I think that there are various people who do estimates of when extraordinary measures will run out.  Ours are the ones that are based on the best data, the most current understanding.  They’re the authoritative ones.  I don’t think there’s any ambiguity now.

Q    Mr. Secretary, can you talk a little bit more about the automatic IRA, the piece that you would like Congress to act on? It’s something you’ve proposed before, but just to go over it again.

SECRETARY LEW:  Obviously, we need legislation to do that, so while we’re doing today something we think that’s very important to fill an important space, we know from many studies that if you make saving for retirement easier, if there’s no friction, more people will do it.  That’s why we think the MyRA is going to trigger a lot of interest. 

But we also know that if you are an employer and you set up a plan so that people are in it unless they choose to opt out of it, more of them will stay in it.  Since we so firmly believe that it’s important for people to start saving early and save for the duration of their careers to have a safe and secure retirement, we continue to believe that that would be a good proposal.

Today, we’re doing what we can by putting MyRA in place.  And frankly, they’re not one instead of the other.  This is a different niche.  For someone who it’s a step to put the $25 in and then $5 a pay period, we need to get them started.  And this instrument that we’ve designed, that the President announced yesterday, that he’ll be speaking more about this morning is really a special opportunity where by our own authority we can create an incentive to make it easy for people to get in.  We would love to do more and we remain open and willing to working  with Congress on more.  But this is a very important first step.

Q    And the proposal with the automatic IRAs is that employers would then have to offer this, right?

SECRETARY LEW:  It would make it a default.

Q    If they had a 401(k) program -- that the default is that you --

SECRETARY LEW:  Yes.  And obviously anyone could opt out of it.  It wouldn’t be required that you stay in it. 

Q    Mr. Secretary, you’ve been in multiple administrations and you just talked about one of the virtues of this being that you can do it without Congress.  Can you talk about this larger approach for the next three years, how much you feel like using executive authority is going to be satisfying to various priorities that you and the President have?

SECRETARY LEW:  Look, I think that we have from the beginning looked to see what we can do to address the problems that the country and the American people face.  We’ve done it through executive action; we’ve done it through legislative action.  I think what the President said last night is that we continue to be ready to work with Congress, but we’re also going to continue to use the tools we have.  And today’s announcement of MyRA is a perfect example.  It’s a great idea.  It’s something that we don’t need legislation for.  We should be doing it.  And we should still try to do more things working with Congress.

Q    Do you think there will be examples coming up that will be broader in scope and more --

SECRETARY LEW:  In my current role, I would be happy to offer my opinion, but I’ll let Jay speak more broadly.

Q    Can I ask you one other question about your current role?  Argentina just made some changes to its currency rules. There’s been a lot of fluctuation in emerging markets recently.  Are you guys concerned about that?  Are you talking to your G7 counterparts about it?

SECRETARY LEW:  I talk to my counterparts all the time, both when we’re in meetings and when we’re not.  And I’m not going to comment on kind of day-to-day movements in markets.  But I will say that we’re seeing a lot of differentiation in the marketplace and we’re seeing the countries that have taken tough actions and managed well are having a different experience.  I’ll leave it at that.

MR. CARNEY:  Thank you, Mr. Secretary. 

Just to pick up where Secretary Lew left off, in answer to Peter’s question, the President is not President of Washington -- he’s the President of America.  And there’s a lot of activities happening around the country that is moving this country forward, that’s expanding opportunity, and that creates the possibility of further rewarding hard work and responsibility.  And the President is embracing that and pushing forward in any way he can. 

As Jack said, it’s not a question of only pursuing actions through his executive authority or the power of the office and not pursuing legislation -- he’s doing both.  As he made clear last night, there are a wide array of things that the President believes he and Congress can work together on and he spelled those out last night.  He also made clear that there are a number of things, whether it’s raising the minimum wage for federal contractors, or creating simple, safe, new retirement accounts for the American people, that he can do on his own using his authority.  And he’s going to put every tool he has to work on behalf of the American people.

Q    Jay, how many people will the executive order to raise the minimum wage for federal contractors with new contractors affect?

MR. CARNEY:  It’s for new contracts, as you know.  I don’t have a figure related to that.  I find it extraordinary that people are dismissive about the possibility of helping those Americans who will be affected, and obviously there will be a growing number of Americans affected as new contracts take effect. 

This is a perfect example of the President using his authority to help as many Americans as he can, and in calling on Congress to do the job of helping even more Americans.  And that’s what he did last night.  He’s using the authority he has to lift the minimum wage for federal contractors and he’s calling on Congress, as he did last year, to pass legislation that would raise the minimum wage across the country.

Q    Is there a reason you can’t give a ballpark figure?

MR. CARNEY:  I’m not an economist.  I don’t have the data --

Q    But no one in the White House is, and certainly they have the data.

MR. CARNEY:  No one in the White House is an economist?

Q    No one in the White House is giving us a figure.

MR. CARNEY:  I don’t have a figure.  I think if the point is that it’s a portion of the population smaller than everybody working for the minimum wage, that’s accurate.  And it’s even, obviously, because it’s new contracts, it’s a building population that grows as new contracts are established.  But the point is the President can take this action to raise the minimum wage using the authority he has, as he calls on Congress to fulfill its responsibility to the American people and give America a raise.

Q    Jay, you don’t have a figure or the White House hasn’t bothered to look at it?  The President just announced a policy and he doesn’t know how many people --

MR. CARNEY:  I haven't seen a figure, Peter.

Q    Valerie said yesterday a couple hundred thousand.

MR. CARNEY:  I don't know if that’s the figure or not.  What I know is what stands to reason is that if you’re talking about federal contractors and you’re talking about new contracts -- because there are obviously some contracts that are in place now and some of them expire sooner rather than later, et cetera, et cetera -- that the population affected directly by the order to raise the minimum wage will continue to grow as new contracts are drawn up and take effect.

Q    Shouldn’t somebody have done the research knowing how this would affect people before it was announced?

MR. CARNEY:  You can keep asking me if I have a figure.  I don’t have a figure.

Q    No, I’m asking whether the White House did any research on this.

MR. CARNEY:  I'll have to take your question.  I'm sure that the point that you and the Speaker of the House are making that the number is relatively small is understood.  But I don’t think the American people believe the President should not take action to help those Americans who need help and then call on Congress to help the rest.

Q    That's actually not my point.  My point was just asking for the factual number.

MR. CARNEY:  Yes, and like I said, I don't have it and we'll get it to you -- I'll check and see what we can get to you.  I haven't seen that number.

Q    Jay, the House passed the farm bill this morning.  The Senate is supposed to do so this afternoon.  Will the President be signing it?

MR. CARNEY:  We are pleased by the progress that we've seen. As you know, the President made clear last fall that this was something that he believed Congress needed to and could act in a bipartisan way to get done.  Obviously we're not there yet.  Final legislation has not reached his desk.  So we await that happening and hope it does.  If the bill as it is currently designed reaches his desk he would sign it.

Q    And on this broad question again of using executive authority, are there particular sectors where you think -- having done this assessment -- where you think it will be most effective?  I mean, obviously you're very focused on a couple of economic initiatives now, but beyond that, can you just give us a sense of where are the areas where you think the President has the most leverage to do it?

MR. CARNEY:  Well, it depends on what kind of use of the pen and the phone you're asking about.  When it comes to executive orders like the one to raise the minimum wage for federal contracts, that depends obviously on analysis of where he has the authority to do things.  He has a much broader capacity to lift up and rally support around issues like the need to expand educational opportunity, access to education, or the need to connect skills training to employers.

You saw that with the summit a few weeks ago.  You’ve seen it, another use of his authority in the establishment of manufacturing institutes, and he said last night that he intends to create four by the end of the year.  And that obviously has enormous beneficial impact on the continued revival of manufacturing in this country.

So I think the opportunities are pretty broad.  But we shouldn’t look at what a President can do simply through the prism of what legislation can get passed, nor should we look at what a President can do using the power of his office only through the ability to sign executive orders or presidential memoranda, because another aspect of his office and the authority is not specific to those issues.  I want to be clear.  This is not -- I'm not foreshadowing anything.  But obviously, the President did not enumerate everything he wants done and everything he supports in his State of the Union address.  No President ever has. 

When it comes to the Employment Non-discrimination Act, he is fiercely supportive of that effort, enormously gratified by the fact the Senate took action and very hopeful that the House will follow suit.  Because as I've said many times, reflecting his opinion, members of the House who block this are being left at the station as the train moves forward on what would obviously be an America where equal rights are extended to all Americans.  So I think his record on LGBT rights is crystal-clear, his position is crystal-clear, and he continues to press Congress to take action on ENDA.

More broadly, there is a great opportunity -- greater in 2014 than we've ever seen -- to pass comprehensive immigration reform in a way that meets the principles the President laid out, that reflects the support of one of the most diverse coalitions you’ve ever seen behind legislation, including business and labor, law enforcement, faith communities, Republicans and Democrats around the country.  And we are hopeful and optimistic that the House will follow the Senate’s lead and this year pass comprehensive immigration reform.

The President has made clear that the way to address this issue is through a bill that takes action on security, on making sure everybody is playing by the same set of rules, on reforming our legal immigration system to make sure that all those super-smart people from around the world who come and study in our universities are able to stay here and start businesses in America so that the jobs of the future are here, and that creates a process by which the 11 million undocumented people in America are able to get in line and attain citizenship.

So we remain, as the President said, hopeful and optimistic that there is progress on this important matter.  I think Congress will act.

Q    Can you just preview very briefly tomorrow in terms of -- we know where we're going, but is there something you could say about what the theme is tomorrow?

MR. CARNEY:  I don't have anything more on that.  If I do by the end of the day, I'll come back and give it to you.

Q    Why a steel mill for the retirement piece?

MR. CARNEY:  Why a steel mill for the retirement piece?  I think in this case these are workers who have exceptional or strong retirement benefits and I think the point the President will be making is we need to make sure that opportunity is out there for Americans across the country.        

But we’ll have more detail.  I’m sure we’ll have more data for you.

Q    I had another question on the Earned Income Tax Credit. Last night, the President mentioned Senator Rubio and his proposal.  Does he want the minimum wage and an Earned Income Tax Credit expansion, or if it came down to choosing between one or the other, which --

MR. CARNEY:  I don’t think he suggested he wanted to choose between one or the other.  I think he thinks both are important. I think what he said about Senator Rubio is that the Senator also acknowledged and recognized the fact that the Earned Income Tax Credit does not benefit in the same way it does other single Americans who are not with children -- custodians of children.  And there’s an opportunity here to expand the benefits of the EITC to more Americans.

Q    Thank you.

END
12:02 P.M. EST

The White House

Office of the Press Secretary

Remarks by the President on Retirement

2:05 P.M. EST

THE PRESIDENT:  Hey, hello, everybody.  (Applause.)  Well, thank you, Mario, for that great introduction and your leadership.  You just don’t come to the Steel City without coming to U.S. Steel.  I just got a great tour and had a chance to see a little bit about how you guys build America every single day.  And I could not be prouder to be here. 

I brought a few friends with me.  We've got America’s Treasury Secretary, Jack Lew.  (Applause.)  We've got a couple of guys who wake up and go to bat for Pennsylvania workers every single day, Senator Bob Casey and Congressman Mike Doyle.  (Applause.)  We've got the Mayor of West Mifflin, Chris Kelly, in the house.  (Applause.)  Pittsburgh’s new Mayor, Bill Peduto is here.  (Applause.)  And we've got Allegheny County Executive, Rich Fitzgerald.  (Applause.)  And then, we’ve got one of my good buddies who is always in my ear about working people -- and I love this guy -- the International President of the United Steelworkers, Leo Gerard, is here.  (Applause.)  And I also brought along our great friend, our former ambassador to Ireland and, most importantly, Chairman of the Pittsburgh Steelers, Dan Rooney in the house.  (Applause.) 

And most of all, it’s great to be here with the men and women of U.S. Steel.  This company helped build America, and over a hundred years later, you’re still at it.  You forge the pipes that transport cleaner-burning natural gas.  You manufacture the lightweight alloys that our automakers use to build fuel-efficient cars.  You’re part of one of the great turnaround stories of this economic recovery, the rebound of the American steel industry.  And, look, just every time I go to a steel plant, I remember being a steelworker is hard work.  But every single one of you is doing your part to make the country stronger. 

Because of your efforts, businesses like U.S. Steel have now created 8 million new jobs over the past four years -- 9,000 new jobs in the steel industry alone.  Our unemployment rate is the lowest it’s been in more than five years.  Our deficits have been cut in half.  Housing is rebounding.  Manufacturing is adding jobs -- not shrinking jobs -- for the first time since the 1990s.  We sell more of what we make here in America to other parts of the world than ever before.  Business leaders are starting to realize that China is no longer the best place to invest and create jobs, America is -- the U.S. of A -- (applause) -- which is why I said last night I believe this can be a breakthrough year for America. 

After five years of hard work, after everything we did to dig ourselves out of the worst recession of our lifetimes, we’re better positioned in this 21st century than any other country on Earth.  And the question I posed to Congress yesterday is whether folks in Washington are going to help or they're going to hinder the progress we've been making, whether they’re going to waste time creating new crises that slow down our economy or they're going to spend time creating new jobs and new opportunities?  (Applause.)  

And I don't know what their plans are, but I choose a year of action.  Because too many Americans are working harder than ever just to get by, let alone get ahead.  They still have the scars of the recession.  But the truth is the middle class have been taking it on the chin since way before the financial crisis hit.  You know that.  The economy now has been growing for four years.  Corporate profits, stock prices they've gone up, but folks’ wages haven’t risen in over a decade. 

That’s why, last night, I laid out new steps we can take right now to speed up economic growth, strengthen the middle class and build new ladders of opportunity into the middle class.  It's an opportunity agenda, because opportunity is what America is all about.  And the agenda has four parts.  Number one, more new jobs:  jobs in American manufacturing, jobs in American energy, jobs in American innovation and technology.  (Applause.)   Number two, we've got to train more Americans with the skills that we need to fill those jobs.  Number three, we've got to guarantee every child in America a world-class education.  (Applause.)  And number four, we've got to make sure hard work pays off.

Now, some of these ideas that I presented last night are going to require Congress to pass legislation.  But America doesn’t stand still.  U.S. Steel hasn't stood still.  I'm not going to stand still.  So wherever I can take steps to expand opportunity for more families, regardless of what Congress does, that’s what I’m going to do -- (applause) -- because I am determined to work with all of you and citizens all across this country on the defining project of our generation, and that is to restore opportunity for every single person who is willing to work hard and take responsibility in this country.  That's what I'm committed to doing.  (Applause.)

I’ve come to U.S. Steel today because I want to talk about the fourth part of that opportunity agenda, making hard work pay off for every single American:  making sure jobs pay good wages, making sure affordable health care is there when you need it, making sure that after a lifetime of hard work you can retire with some dignity.

Today, women make up about half our workforce, but they still make 77 cents for every dollar a man makes.  As I said last night, that's wrong.  In 2014, it’s an embarrassment.  Women deserve equal pay for equal work.  They deserve to be able to have a baby without sacrificing a job.  (Applause.)  Moms and dads deserve to be able to take a day off for a sick kid or a sick parent.  We've got to get rid of some of these workplace policies that belong back in the '50s, back in a “Mad Men” episode, I said.  (Laughter.)  We've got to give every woman the opportunity she deserves, because when women succeed, America succeeds.  (Applause.)  And I'm really proud that there's a woman who is heading up this plant and doing some amazing work.  So I was really glad to see that.

But women hold the majority of lower-wage jobs.  And they're not the only ones who have been stifled by stagnant wages.  The truth is wages and incomes for the average working American haven't gone up.  Even though the economy is more productive, even though it's grown over the last two decades, the average person's salary -- what they're taking home, their paycheck -- it hasn't really grown.  Now, Americans understand, we all understand some people are going to earn more money than others.  And we don’t envy anybody who achieves success through their hard work.  That's what we want for our kids.

Michelle and I were talking.  Michelle's dad was a blue-collar worker, worked at a water filtration plant in Chicago.  Her mom was a secretary.  My mom was a single mom.  When we were growing up, we weren't worrying about what rich people were doing.  We weren't going around saying, oh, man, we don't have caviar for lunch -- (laughter) -- and we're not vacationing down in some fancy place.  We don't begrudge success to other folks. But we did expect -- and I think most Americans still expect -- that if you work hard, you should be able to make it.  You don't have to make it the way some folks make it, but everybody should have enough to feel some security. 

And Americans overwhelmingly agree that nobody who works full-time should ever have to raise a family in poverty.  (Applause.)  If you're doing your responsibilities and working hard, you should be able to pay the rent, buy food and look after your family.  

Now, today, the federal minimum wage doesn’t go as far as it did even in the 1950s.  That’s why some states and cities are raising their minimum wages on their own.  And I support their efforts.  And as I mentioned last night, as chief executive, I’m going to lead by example.  In the coming weeks, I'm issuing an executive order requiring federal contractors, folks doing business with the federal government, to pay your federally funded employees a fair wage of at least $10.10 an hour, because if you cook our troops’ meals or you wash their dishes, you shouldn’t have to live in poverty.  (Applause.) 

Of course, if we're going to reach millions more, then Congress is going to have to get on board.  There’s a bill in Congress right now to raise that minimum wage to $10.10.  And I told Congress, say yes to that.  Give America a raise. 

But that's not all we have to do to grow our middle class.  Making work pay also means access to health care that’s there for you when you get sick.  Now, the good news is if you work here at U.S. Steel, I know you've got good benefits.  And that's why I'm a strong supporter of unions, because they fought for those benefits.  (Applause.) 

But as everybody here knows -- and I'll bet you've got friends and family who haven't been so lucky and don't have those benefits.  And what the Affordable Care Act means is that no one can ever again be dropped or denied coverage for a preexisting condition like asthma or cancer.  You can’t be charged more if you’re a woman.  You can’t be charged more just because forging steel might hurt your back, make it hurt sometimes.  And if you don't have health insurance on the job, you can actually get affordable health insurance. 

So the days when folks are just on their own, out of luck, those days are over.  More Americans are signing up for new private health insurance plans every day.  (Applause.)  We're signing folks up for Medicaid.  And if you know somebody who isn’t covered, call them up, sit them down, help them get covered at healthcare.gov by March 31st.  We are going to get all of America covered.  That's one of my commitments.  (Applause.)  

And, finally -- and that's what this little desk here is about -- there's another thing we can all agree on.  If you've worked hard all your life, you deserve a secure retirement.  Some of the folks I met before I came here on the tour, some of these folks have been on the job 15 years, 20 years.  I think your roller has been on the job 38 years.  Let me tell you something, if you work 38 years, at the end of it you should feel like you're going to retire with some security.   

And a retirement used to be a three-legged stool, used to have a pension.  Then you had your Social Security.  Then you had your own private savings.  And you put that all together, and you could retire.  But today, most workers don’t have a pension in America.  Just half work for an employer that offers any kind of retirement plan.  A Social Security check is critical, but oftentimes that monthly check, that's not enough.  And while the stock market has doubled over the last five years, that doesn’t help somebody if you don't have a 401(k).

So what I’ve asked Congress to do is work with me to give more people more retirement security.  Let's fix an upside-down tax code that right now gives the wealthiest Americans big tax breaks to save, but does almost nothing for middle-class folks, doesn't give them the same kinds of tax advantages.  That's not fair.  And we need to give every American access to an automatic IRA on the job, so they can save at work.

Now, I’m hoping that Congress goes along with this, but I'm not going to wait for Congress.  I could do more with Congress, but I'm not going to not do anything without Congress, not when it’s about the basic security and dignity of American workers.  So here's what I'm going to do today.  This is what this little table is set up for.  I'm going to sign a presidential memorandum that directs the U.S. Treasury Secretary, Jack Lew, to create a new way for working Americans to start their own retirement savings.  (Applause.)  And as soon as I sign this, Jack Lew will get the memo.  He is right here.  So I'm going to be able to just -- here, here's your memo. 

And we're calling it “MyRA.”  Not IRA -- MyRA.  And what it is, it's a new type of savings bond that we can set up without legislation that encourages Americans to begin to build a nest egg.  And it’s simple.  Workers can contribute through automatic deductions in their paychecks, just like those of you who have an employer-sponsored pension fund can do.  They can keep the same account even if they change jobs, so they can carry it over.  It’s safe.  These account balances will never go down in value.  They’re backed by the full faith and credit of the United States government.  And it’s affordable.  So you can open an account with as little as $25.  You can contribute as little as $5 at a time. 

But what that means is for those of you who don't have a 401(k) on the job, don't have a pension on the job, don't have a mechanism to start saving -- especially younger workers -- you can get started now.  And in an emergency, you can withdraw contributions without paying a penalty.  So it's a pretty good deal.  (Applause.)  And what I'm hoping is that working Americans will take a look, because I want more people to have the chance to save for retirement through their hard work.  And this is just one step that we can take to help more people do that. 

So this is the opportunity agenda that's going to help restore some sense of economic security in this 21st century economy.  We want jobs that are more plentiful.  We want skills that keep you employable.  We want savings that are portable.  We want health care that’s yours and that's not going to be canceled when you really need it.  We want every American who works hard and takes responsibility to retire with dignity after decades of honest work.  These are real, practical, achievable solutions to help shift the odds back a little bit in favor of more working and middle-class Americans, so that if they work hard, they can get ahead and they can leave something for the next generation.

And that's something that U.S. Steel knows a little bit about.  For over a hundred years, people throughout the Mon Valley and across this country have been punching in at plants just like this one.  You’ve been keeping the furnaces blasting, keeping the cold mill rolling, carrying on the tradition of hard work and determination.  We've got two, three-generation steel workers at this plant right here.  And I know for a lot of you, this is more than a job.  This is a team.  This is a family that you're proud to be a part of. 

Robin Birk is with me today.  Decades ago, her granddad worked for Union Switch and Signal in Pittsburgh, making parts for railroads.  Her dad worked for U.S. Steel for over 30 years, rising to plant manager.  Robin’s been a safety manager here for 23 years.  And I want to share something Robin said.  She said, “When I was growing up, I would think about what my grandfather and father did for a living, and I always thought my brother would be the one who got to work here.  But it ended up being me.  Women before me maybe didn’t have that opportunity.”
 
Now, Robin’s dad, Bernard, who just passed away a little more than a year ago, he was full of pride for this company.  He used to say, “When we bleed, we bleed blue” -- the color of U.S. Steel. 

So that pride has run across generation.  That's the pride that built this company.  And that's the pride that built America.  That’s the spirit we all need today.  That's the resilience, the grit, the determination, and the optimism that keeps the American Dream alive not just for this generation, but for future generations to come. 

That's what I'm going to be fighting for this year, just like I was for the last five years and for the next three years.  And I expect all of you to join me in making sure that we deliver that promise to the next generation.  (Applause.)

And now, I'm going to sign this bill.  Thank you.  God bless you.  God bless the United States of America. 

END
2:26 P.M. EST

The White House

Office of the Press Secretary

Remarks by the President on Minimum Wage -- Lanham, MD

Costco
Lanham, Maryland

10:15.M. EST

THE PRESIDENT:  Hello, Maryland!  (Applause.)  It’s good to see you.  I love getting outside the Beltway, even if it is just a few hundred feet away.  (Laughter.) 

Well, first of all, give Teressa a great big round of applause for the great job she did.  (Applause.)  It is good to be here with all of you.  I want to acknowledge a champion for working families right here in Maryland -- Governor Martin O’Malley.  (Applause.)  Some folks who go to bat for working people every single day:  Senator Ben Cardin is here.  (Applause.)  Congresswoman Donna Edwards is here.  (Applause.)   And all of you are here.  (Applause.)

Teressa’s story proves that treating workers well is not just the right thing to do -- it is an investment.  And Teressa’s 27 years of hard work at Costco proves that investment pays off.

I talked a little bit about this last night in my State of the Union address.  Now, I only finished 12 hours ago, so these remarks will be quicker.  (Laughter.)  And I needed some time to pick up a snow shovel and one of those 50-pound bags of dog food for Bo and Sunny.  (Applause.)  I was told I'd get a big-screen TV, too, for the Super Bowl coming up -- 80-inch.  (Laughter.)   So 60 is not enough?  Got to go 80.  (Laughter.)

It is funny, though -- I was looking -- you can buy a sofa, chocolate chip cookies and a snorkel set all in the same -- (laughter and applause.)  The sofa didn’t surprise me, but the snorkel set -- (laughter) -- that was impressive.  Although I do want to ask, who’s snorkeling right now?  (Laughter.)  How many of those are you guys selling?  You never know.  (Laughter.)

But what I talked about last night was a simple but profound idea -- and it’s an idea that’s at the heart of who we are as Americans:  Opportunity for everybody.  Giving everybody a fair chance.  If they’re willing to work hard, take responsibility, give them a shot.  The idea that no matter who you are, where you come from, what you look like, what your last name is, if you work hard, you live up to your responsibilities, you can succeed; you can support a family.  (Applause.)  That's what America should be about.  Nobody is looking for a free lunch, but give people a chance.  If they’re working hard, make sure they can support a family.

Now, we’re at a moment where businesses all across the country, businesses like Costco have created 8 million new jobs over the last four years.  Our unemployment rate is the lowest it’s been in more than five years.  Our deficits have been cut in half.  Housing is rebounding.  Manufacturing is adding jobs for the first time since the ‘90s.  We sell more of what we make here in America to other places than ever before.  Business leaders are deciding that China’s not the best place to invest and create jobs -- America is. 

So this could be a breakthrough year for America.  After five years of hard work, overcoming the worst recession in our lifetimes, we're better-positioned for this young century than anybody else.  But the question for folks in Washington is whether they’re going to help that progress or hinder that progress; whether they’re going to waste time creating new crises for people and new uncertainty -- like the shutdown -- or are we going to spend time creating new jobs and new opportunities.

And I know what I'm choosing to do because it’s what you do -- I'm choosing this to be a year of action.  (Applause.)   Because too many Americans are working harder than ever just to get by, much less get ahead.  The scars of the recession are real.  The middle class has been taking it on the chin since before the recession.  The economy has been growing for four years now, and corporate profits, stock prices have all soared.  But the wages and incomes of ordinary people haven’t gone up in over a decade. 

So that’s why last night, I laid out some steps that we can take, concrete, common-sense proposals to speed up economic growth, strengthen the middle class, build new ladders of opportunity into the middle class. 

And this opportunity agenda has four parts.  Number one, we need more new jobs.  Number two, we need to train more Americans with the skills that they need to fill those jobs.  Number three, we should guarantee every child access to a world-class education.  (Applause.)  And number four, let’s make sure hard work pays off.  (Applause.)

Now, some of my ideas I’ll need Congress.  But America can't just stand still if Congress isn’t doing anything.  I’m not going to stand still either.  Wherever I can take steps to expand opportunity for more families, I’m going to do it -- with or without Congress.  (Applause.)  Because the defining project of our time, of our generation, is to restore opportunity for everybody.

And so I’m here at Costco today to talk about the fourth part of the opportunity agenda, and that is making hard work pay off for every single American.

Five years ago I signed my first bill into law.  I didn't have any gray hair.  (Laughter.)  You think it’s distinguished?  Okay.  (Laughter.)  That's the guy with the gray beard saying -- (Laughter).  So this first bill that I signed was called the Lilly Ledbetter Fair Pay Act.  (Applause.)  Lilly was at my speech last night.  And it’s a law to help protect a woman’s right to fair pay.  But at a time when women make up about half of the workforce, but still make 77 cents for every dollar a man earns -– we’ve got to finish the job and give women the tools they need to fight for equal pay.  Women deserve equal pay for equal work.  (Applause.)  They deserve -- if they're having a baby, they shouldn’t have to sacrifice their job.  A mom deserves a day off to care for a sick child or a sick parent -– and a father does, too.

As I said last night, we got to get rid of some of these workplace policies that belong in a “Mad Men” episode, belong back in the ‘50s.  We’ve got to give every woman the opportunity she deserves.  Because when women succeed, America succeeds.  (Applause.)

Now, women happen to hold a majority of lower-wage jobs in America.  But they’re not the only ones who are stifled when wages aren’t going up.  As Americans, we understand some people are going to earn more than other people, and we don’t resent those who because they work hard, because they come up with a new idea, they achieve incredible success.  We want our kids to be successful.

And it’s funny -- Michelle and I sometimes talk -- Michelle’s dad was a blue-collar worker; her mom was a secretary. I was raised by a single mom.  We didn't go around when we were growing up being jealous about folks who had made a lot of money -- as long as if we were working hard, we could have enough.

So Americans overwhelmingly agree nobody who works full-time should ever have to raise a family in poverty.  (Applause.)  And that is why I firmly believe it’s time to give America a raise.  (Applause.)

A hundred years ago, Henry Ford started Ford Motor Company. Model T -- you remember all that?  Henry Ford realized he could sell more cars if his workers made enough money to buy the cars. He had started this -- factories and mass production and all that, but then he realized, if my workers aren’t getting paid, they won’t be able to buy the cars.  And then I can't make a profit and reinvest to hire more workers.  But if I pay my workers a good wage, they can buy my product, I make more cars.  Ultimately, I’ll make more money, they’ve got more money in their pockets -- so it’s a win-win for everybody.

And leaders today, business leaders today, some of them understand this same concept.  Costco’s CEO, Craig Jelinek, he understands this.  He feels the same way.  He knows that Costco is going to do better, all our businesses do better when customers have more money to spend.  And listen, Craig is a wonderful guy, but he’s not in this for philanthropy.  He’s a businessman.  He’s looking at the bottom line.  But he sees that if he’s doing right by Costco’s workers, then they can buy that 80-inch TV, too.  (Laughter and applause.)  Right? 

Profitable corporations like Costco see higher wages as a smart way to boost productivity and to reduce turnover.  So entry-level employees here -– stock associates, cashiers –- start out at $11.50 an hour.  (Applause.)  Start at $11.50. 

AUIDENCE MEMBER:  Mr. President, we love you! 

THE PRESIDENT:  Thank you.

The average hourly wage is more than $20, not including overtime or benefits.  And Costco’s commitment to fairness doesn’t stop at the checkout counter; it extends down the supply chain, including to many of the farmworkers who grow the product -- the produce that you sell.  (Applause.) 

Now, what this means is that that Costco has some of the lowest employee turnover in your industry.  So you’re not constantly retraining folks because they quit.  You got people like Teressa who has been here 27 years -- because it’s a company that's looking out for workers.

And I got to tell you, when I walk around, just -- I had a little tour of the produce section, the bakery -- you could just tell people feel good about their job and they feel good about the company, and you have a good atmosphere, and the managers and people all take pride in what you do.

Now, folks who work at Costco understand that, but there are a lot of Americans who don’t work somewhere like Costco, and they’re working for wages that don’t go as far as they once did. Today, the minimum wage -- the federal minimum wage doesn’t even go as far as it did back in the 1950s.  And as the cost of living goes up, the value of the minimum wage goes down over time.  Just last year alone, workers earning the minimum wage basically got the equivalent of a $200 pay cut because the minimum wage stayed the same but costs of everything else are going up. 

I don’t need to tell you this.  You go shopping.  (Laughter.)  So you’re like, mm-hmm.  (Laughter.)  For a typical minimum-wage worker, that’s a month’s worth of groceries.  It’s two months of electricity.  It’s a big deal to a lot of families.

So I brought a guy here today who knows a little bit about this -- Tom Perez is America’s Secretary of Labor -- (applause)  -- works for working families every day.  I stole him from Governor O’Malley.  (Laughter.)  He came here from Maryland.  But when he was Governor O’Malley’s labor secretary here in Maryland, he helped implement the country’s first statewide living wage law.  And that helped a lot of Maryland families.  But there are more families in Maryland and across the country who put in long days, they’ve got hard jobs -- they deserve higher wages. 

In the year since I first asked Congress to raise the federal minimum wage, five states have passed laws to raise theirs.  Governor O’Malley is trying to do it here in Maryland, and lift the minimum wage to $10.10.  He says, “We all do better when we’re all doing better.”  He’s right.  Prince George’s County, Montgomery County are banding together with D.C. to raise the regional minimum wage.  And I'm here to support your efforts. (Applause.)  I’m here to support your efforts.  And as I said last night, to every governor, mayor, state legislator out there, if you want to take the initiative to raise your minimum wage laws to help more hardworking Americans make ends meet, then I’m going to be right there at your side.

While Congress decides whether it’s going to raise the minimum wage or not, people outside Washington are not waiting for Congress.  And I’m not, either.  So as a chief executive, I’m going to lead by example.  In the coming weeks, I will issue an executive order requiring federal contractors to pay their federally funded employees on new contracts a fair wage of at least $10.10 an hour.  (Applause.)  Because if you cook our troops’ meals and wash their dishes, you shouldn’t have to live in poverty.

So there’s some steps businesses are taking on their own.  There are steps that certain states and counties and cities are taking on their own.  There are steps I’m going to take as President.  But ultimately, Congress does have to do its part to catch up to the rest of the country on this. 

And there’s a reason why a wide majority of Americans support increasing the minimum wage.  Look, most Americans who are working make more than the minimum wage.  So it’s interesting that the overwhelming number of Americans support raising the minimum wage.  It’s not that it’s going to necessarily affect them personally right now; it’s that they know, they understand the value behind the minimum wage.  If you work hard, you should be able to pay your rent, buy your groceries, look after your kids.  (Applause.)  If you put in a hard day’s work, you deserve decent pay for it.  That’s a principle everybody understands, everybody believes.

So right now in Congress, there’s a bill that would lift the federal minimum wage to $10.10 an hour -- 10.10 -- 10.10, it’s easy.  It will give more businesses more customers with more money to spend.  I guarantee you, if workers have a little more money in their pocket, they’ll spend more at Costco.  (Applause.) And if Costco is seeing more customers, they’ll hire some more folk.  Everybody does better. 

And the thing about it is raising the minimum wage doesn’t require new spending by the federal government.  It doesn’t require a big bureaucratic program.  It would help a lot of Americans make ends meet.

So I need everybody here and everybody who’s going to be watching, tell Congress to make this happen.  Give America a raise.  Making work pay means doing more to help Americans all across this country, but it also means improving the economy -- because one of the things that’s been holding our economy back is wages and incomes being flat, which means consumers aren’t spending as much, which means businesses don’t have as many customers, which means they don’t hire as much and they don’t invest as much, and we don’t get that liftoff on the economy that we could. 

If we want to make work pay, we also have to help Americans save for retirement -- and I’m going to be flying up to Pittsburgh this afternoon to talk about that.  (Applause.)  Making work pay means access to health care that’s there when you get sick.  And the Affordable Care Act means nobody can ever be dropped or denied coverage for a preexisting condition like asthma or cancer.  (Applause.)  You can’t be charged more if you’re a woman.  You can’t be charged just because your job makes your back hurt sometimes.  Those days are over.  (Laughter.) 

More Americans are signing up for new private health insurance plans every day.  Already 3 million people have signed up.  So if you know somebody who isn’t covered, who doesn’t have health insurance, call them up, sit them down, help them get covered at healthcare.gov by March 31st.

So this is the opportunity agenda that I’m going to be talking about this year.  I don’t know -- I hope Congress will be talking about it, too.  But I’m not going to wait.  Because we’ve got to restore some economic security in a 21st century economy, and that means jobs that are more plentiful, skills that are more employable, savings that are more portable, health care that’s yours and can’t be canceled if you get sick. 

I just focused on one piece of that opportunity agenda today -- raising the minimum wage.  But these are real, practical, achievable solutions that can help shift the odds back in favor of working and middle-class Americans who haven’t been seeing some of the benefits of growth that we’ve seen over the last four years.

And before I grab a 10-pound barrel of pretzels and -- (laughter) -- 500 golf balls -- (laughter) -- let me just leave you with something I heard from Costco’s founder, Jim Sinegal, who’s been a great friend of mine and somebody who I greatly admire.  And Jim is rightly proud of everything he’s accomplished.  “But,” he said, “here’s the thing about the Costco story.  We did not build our company in a vacuum.  We built it in the greatest country on Earth.  We built our company in a place where anyone can make it with hard work, a little luck, and a little help from their neighbors and their country.” 

That’s what Jim said -- a place where anyone can make it.  That’s who we are.  That’s our story.  If we pull together, work together, put our shoulder to the wheel, keep moving forward, that’s going to be our future as well, and the future for our kids and grandkids. 

Thanks so much, everybody.  God bless you.  God bless America.  (Applause.)

END   
10:34 A.M. EST

The White House

Office of the Press Secretary

FACT SHEET: Opportunity for All: Securing a Dignified Retirement for All Americans

Creating the “myRA” – a Simple, Safe, and Affordable Starter Savings Account to Help Millions of Americans Start Saving for Retirement

 * Year of Action: Making Progress Through Executive Action *

To build lasting economic security, the President will act on a set of specific, concrete proposals to expand opportunity for all Americans. In the State of the Union, the President announced that he will use his executive authority to direct the Department of the Treasury to create “myRA” – a new simple, safe and affordable “starter” retirement savings account that will be offered through employers and will ultimately help millions of Americans begin to save for retirement.

  • Starter Savings Account: Making It Easier to Start Saving for Retirement. This new product will be targeted to the many Americans who currently lack access to workplace retirement savings plans, which is usually the most effective way to save for retirement. Starting to save is just the first step towards a secure retirement, and the President wants to help more Americans save for their future.
  • Safe and Secure: Principal Protection So Savers’ Account Balance Will Never Go Down. The product will be offered via a familiar Roth IRA account, and savers will benefit from principal protection, so the account balance will never go down in value. The security in the account, like all savings bonds, will be backed by the U.S. government. Contributions can be withdrawn tax free at any time.
  • User-Friendly for Savers: Portable Account with Contributions that Are Voluntary, Automatic, and Small. Initial investments could be as low as $25 and contributions that are as low as $5 could be made through easy-to-use payroll deductions.  Savers have the option of keeping the same account when they change jobs and can roll the balance into a private-sector retirement account at any time. 
  • Favorable Investment Return: Same Secure Investment Return Available to Federal Employees. Savers will earn interest at the same variable interest rate as the federal employees’ Thrift Savings Plan (TSP) Government Securities Investment Fund. 
  • Widely Available: Available to Millions of Middle Class Americans Through Their Employer. This saving opportunity would be available to the millions of low- and middle-income households earning up to $191,000 a year.  These accounts will be offered through an initial pilot program to employees of employers who choose to participate by the end of 2014.  The accounts are little to no cost and easy for employers to use, since employers will neither administer the accounts nor contribute to them.   Participants could save up to $15,000, or for a maximum of 30 years, in their accounts before transferring their balance to a private sector Roth IRA.

*  Continuing to Work With Congress on the President’s Existing Proposals to

Make Sure That All Americans Can Have a Dignified Retirement  *

The President remains committed to working with Congress to help secure a dignified retirement for all Americans. While Social Security is and must remain a rock-solid, guaranteed progressive benefit that every American can rely on, the most secure retirement requires a three-legged stool that includes savings and pensions. That’s why the President is using his executive authority to create the “myRA” and has already proposed to work with Congress on the following proposals to help Americans save for their retirement:

  • Giving Every Employee Access to Easy, Payroll-Based Savings Through the Auto-IRA. About half of all American workers do not have access to employer-sponsored retirement plans like 401(k)s, which puts the onus on individuals to set up and invest in an Individual Retirement Account (IRA). Up to 9 out of 10 workers automatically enrolled in a 401(k) plan through their employer make contributions, even years later, while fewer than 1 out of 10 workers eligible to contribute to an IRA voluntarily do so. The President’s budget will propose to establish automatic enrollment in IRAs (or “auto-IRAs”) for employees without access to a workplace savings plan, in keeping with a plan that he has proposed in every budget since he took office. Employers that do not provide any employer-sponsored savings plan would be required to connect their employees with a payroll deduction IRA.  This proposal could provide access to one-quarter of all workers, according to a recent study.

-----  Making Sure the Auto-IRA Works for Workers and Small Businesses. Workers would not be required to contribute and are free to opt out. Employers would also not contribute. The plan would also help defray the minimal administrative costs of establishing auto-IRAs for small businesses, including through tax incentives.

  • Removing Inefficient Retirement Tax Breaks for the Wealthiest While Improving Them for the Middle Class.  The Auto-IRA will spread the tax benefits for retirement savings to millions more middle-class Americans.  Current retirement tax subsidies disproportionately benefit higher-income households, many of whom would have saved with or without incentives. An estimated two-thirds of tax benefits for retirement saving go to the top 20% of earners, with one-third going to the top 5 percent of earners. Our tax incentives for retirement can be designed more efficiently.   According to one 2012 study, additional tax expenditures are a comparatively inefficient way to generate additional saving. The President has proposed to limit the benefits of tax breaks, including retirement tax preferences, for high income households to a maximum of 28 percent.  The President has also proposed to limit contributions to tax-preferred savings accounts once balances are about $3.2 million, large enough to fund a reasonable pension in retirement.

* Importance of Securing a Dignified Retirement for All Americans *

  • Many Americans lack access to workplace retirement savings plans – usually the most effective and generous means of saving for retirement.  About half of all workers and 75 percent of part-time workers lack access to employer-sponsored retirement plans.

  • The financial crisis dealt a severe blow to the retirement outlook for many families, wiping out more than $12 trillion dollars in household wealth. While financial markets have returned to their pre-crisis levels, median household wealth has only recovered 45 percent of the losses during the recession.

  • The risk of an insecure retirement is especially great for women, minorities, and low-income Americans. Women continue to be less prepared for retirement than men and comprise 63 percent of the elderly living below the poverty line. White households have six times the wealth, including retirement savings, of African Americans or Hispanics. And low-wage and part-time workers are just one-third as likely as high-wage and full-time workers to participate in an employer-based retirement plan.

 

The White House

Office of the Press Secretary

Message to Congress -- Transmitting the Third Amendment to the Agreement for Co-operation Between the United States of America and the International Atomic Energy Agency

TO THE CONGRESS OF THE UNITED STATES:

I am pleased to transmit to the Congress, pursuant to sections 123 b. and 123 d. of the Atomic Energy Act of 1954, as amended (42 U.S.C. 2153(b), (d)) (the "Act"), the text of a proposed Third Amendment to the Agreement for Co-operation Between the United States of America and the International Atomic Energy Agency (IAEA) (the "Amendment"). I am also pleased to transmit my written approval, authorization, and determination concerning the Amendment, and an unclassified Nuclear Proliferation Assessment Statement (NPAS) concerning the Amendment. (In accordance with section 123 of the Act, as amended by title XII of the Foreign Affairs Reform and Restructuring Act of 1998 (Public Law 105-277), a classified annex to the NPAS, prepared by the Secretary of State in consultation with the Director of National Intelligence, summarizing relevant classified information, will be submitted to the Congress separately.) The joint memorandum submitted to me by the Secretaries of State and Energy and a letter from the Chairman of the Nuclear Regulatory Commission stating the views of the Commission are also enclosed. An addendum to the NPAS pursuant to section 102A of the National Security Act of 1947 (50 U.S.C. 403-1), as amended, is being submitted separately by the Director of National Intelligence.

The proposed Amendment has been negotiated in accordance with the Act and other applicable law. In my judgment, it meets all applicable statutory requirements and will advance the nonproliferation and other foreign policy interests of the United States.

Pursuant to the proposed Amendment, the Agreement for Co-operation Between the United States of America and the International Atomic Energy Agency, signed at Vienna May 11, 1959, as amended and extended February 12, 1974, and January 14, 1980 (the "Agreement"), would continue to provide a comprehensive framework for peaceful nuclear cooperation with the IAEA and facilitate our mutual objectives related to nonproliferation and the peaceful uses of nuclear energy. The primary purposes of the Agreement are to enable exports from the United States of nuclear material and equipment to IAEA Member States for research reactors and, in certain cases, for power reactors, and to enable transfers from the United States of small samples of nuclear material to the IAEA for safeguards and research purposes.

Under the proposed Amendment, the term of the Agreement will be extended an additional 40 years for a total term of 95 years.

The Agreement permits the transfer of material, equipment (including reactors), and facilities for nuclear research and nuclear power production. It does not permit transfers of

Restricted Data, sensitive nuclear facilities, or major critical components of such facilities, or, unless specifically provided for in a supply agreement or an amendment thereto, transfers of sensitive nuclear technology. In the event of termination of the Agreement, key nonproliferation conditions and controls continue with respect to material, equipment, and facilities subject to the Agreement.

A more detailed discussion of the IAEA's nuclear nonproliferation and peaceful uses activities is provided in the NPAS and in a classified annex to the NPAS submitted to you separately.

I have considered the views and recommendations of the interested agencies in reviewing the proposed Amendment to the Agreement and have determined that its performance will promote, and will not constitute an unreasonable risk to, the common defense and security. Accordingly, I have approved the Amendment and authorized its execution and urge that the Congress give it favorable consideration.

This transmission shall constitute a submittal for purposes of both sections 123 b. and 123 d. of the Act. My Administration is prepared to begin immediately the consultations with the Senate Foreign Relations Committee and the House Foreign Affairs Committee as provided in section 123 b. Upon completion of the 30 days of continuous session review provided for in section 123 b., the 60 days of continuous session review provided for in section 123 d. shall commence.

BARACK OBAMA

The White House

Office of the Press Secretary

Readout of National Security Advisor Susan E. Rice’s Meetings with Pakistani National Security and Foreign Affairs Advisor Sartaj Aziz at the White House

National Security Advisor Susan E. Rice hosted Pakistani National Security and Foreign Affairs Advisor Sartaj Aziz yesterday for a meeting at the White House.  During the meeting, they reaffirmed both countries’ commitment to strengthening the U.S.-Pakistan relationship and advancing shared interests in a stable, secure, and prosperous Pakistan.  They discussed ways to increase the effectiveness of counterterrorism cooperation, and reiterated the importance of combating extremism and promoting peace and stability throughout the region.  They also reiterated their support for an Afghan-led peace process and acknowledged the importance of advancing Afghan peace and reconciliation.  They discussed ways to deepen and enhance the U.S.-Pakistan partnership based on the common recognition that this partnership is vital to regional and international security and discussed their countries’ shared dedication to nuclear security.  The United States will continue to work with the Government of Pakistan to advance development, promote security, and help create lasting peace and prosperity for all Pakistanis.

The 2014 State of the Union Address (Enhanced Version)

January 29, 2014 | 1:05:14 | Public Domain

President Obama delivers the 2014 State of the Union address to Congress and the nation.

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President Obama's 2014 State of the Union Address

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Tonight, President Obama delivered the 2014 State of the Union Address to Congress and the nation.

If you missed it, be sure to watch the enhanced broadcast of his address, featuring charts, graphs, and images that help explain the policies and issues he discussed. You can also read his full remarks here.

Have questions about the speech? Tomorrow, the Obama Administration is hosting its first-ever virtual “Big Block of Cheese Day,” during which dozens of White House officials will take to social media for a day long 'open house' to answers questions from everyday Americans in real-time on Twitter Facebook,  Tumblr,  Instagram and via Google+ Hangout. Learn more and find out how to participate here.

Then, on Friday, January 31 President Obama will take a virtual road trip via Google+ Hangouts to discuss the State of the Union with citizens across the country. Find out more and learn how to join the road trip here.

Check out the slides from tonight's address:

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President Obama's 2014 State of the Union Address

President Barack Obama delivers the State of the Union address in the House Chamber at the U.S. Capitol in Washington, D.C., Jan. 28, 2014.

President Barack Obama delivers the State of the Union address in the House Chamber at the U.S. Capitol in Washington, D.C., Jan. 28, 2014. (Official White House Photo by Pete Souza)

Tonight, President Obama delivered the 2014 State of the Union Address to Congress and the nation.

If you missed it, be sure to watch the enhanced broadcast of his address, featuring charts, graphs, and images that help explain the policies and issues he discussed. You can also read his full remarks here.

Have questions about the speech? Tomorrow, the Obama Administration is hosting its first-ever virtual “Big Block of Cheese Day,” during which dozens of White House officials will take to social media for a day long 'open house' to answers questions from everyday Americans in real-time on Twitter Facebook,  Tumblr,  Instagram and via Google+ Hangout. Learn more and find out how to participate here.

Related Topics: State of the Union

The White House

Office of the Press Secretary

President Barack Obama's State of the Union Address

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 America’s graduation rate to its highest level 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. 

An autoworker fine-tuned some of the best, most fuel-efficient 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 five-year 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.  A man took the bus home from the graveyard shift, bone-tired but dreaming big dreams for his son.  And in tight-knit communities 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 twelve long years, is finally coming to an end.

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.

Here are the results of your efforts:  The lowest unemployment rate in over five years.  A rebounding housing market.  A manufacturing sector that’s adding jobs for the first time since the 1990s.  More oil produced at home than we buy from the rest of the world – the first time that’s happened in nearly twenty years.  Our deficits – cut by more than half.  And for the first time in over a decade, business leaders around the world have declared that China is no longer the world’s number one place to invest; America is.

That’s 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 rancorous argument over the proper size of the federal government.  It’s an important debate – one that dates back to our very founding.  But 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 not doing right by the American people.

As President, I’m committed to making Washington work better, and rebuilding the trust of the people who sent us here.  I believe most of you are, too.  Last month, thanks to the work of Democrats and Republicans, this Congress finally produced a budget that undoes some of last year’s severe cuts to priorities like education.  Nobody got everything they wanted, and we can still do more to invest in this country’s 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 crises.

In the coming months, let’s see where else we can make progress together.  Let’s make this a year of action.  That’s what most Americans want – for all of us in this chamber to focus on their lives, their hopes, their aspirations.  And what I believe unites 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.

Let’s 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 get ahead.  And too many still aren’t working at all.

Our job is to reverse these trends.  It won’t happen right away, and we won’t 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’m 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, that’s what I’m going to do. 

As usual, our First Lady sets a good example.  Michelle’s Let’s Move partnership with schools, businesses, and local leaders has helped bring down childhood obesity rates for the first time in thirty years – an achievement that will improve lives and reduce health care costs for decades to come.  The Joining Forces alliance that Michelle and Jill Biden launched has already encouraged employers to hire or train nearly 400,000 veterans and military spouses.  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 in access to higher education – and help every hardworking kid go to college and succeed when they get to campus.  Across the country, we’re partnering with mayors, governors, and state legislatures on issues from homelessness to marriage equality.

The point is, there are millions of Americans outside 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.  That’s what drew our forebears here.  It’s how the daughter of a factory worker is CEO of America’s largest automaker; how the son of a barkeeper is Speaker of the House; how the son of a single mom can be President of the greatest nation on Earth. 

Opportunity is who we are.  And the defining project of our generation is 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 they’re thinking of insourcing jobs from abroad.

So let’s 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.  Let’s flip that equation.  Let’s work together to close those loopholes, end those incentives to ship jobs overseas, and lower tax rates for businesses that create jobs here at home.

Moreover, we can take the money we save with this transition to tax reform to create jobs rebuilding our roads, upgrading our ports, unclogging our commutes – because in today’s global economy, first-class jobs gravitate to first-class infrastructure.  We’ll need Congress to protect more than three million jobs by finishing transportation and waterways bills this summer.  But I will 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 high-tech manufacturing jobs.  My administration has launched two hubs for high-tech manufacturing in Raleigh and Youngstown, where we’ve connected businesses to research universities that can help America lead the world in advanced technologies.  Tonight, I’m announcing we’ll 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 and put more Americans back to work.

Let’s 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 ninety-eight percent of our exporters are small businesses, new trade partnerships with Europe and the Asia-Pacific will help them create 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.”  China and Europe aren’t standing on the sidelines.  Neither should we.

We know that the nation that goes all-in on innovation today will own the global economy tomorrow.  This is an edge America cannot surrender.  Federally-funded research helped lead to the ideas and inventions behind Google and smartphones.  That’s why Congress should undo the damage done by last year’s cuts to basic research so we can unleash the next great American discovery – whether it’s vaccines that stay ahead of drug-resistant bacteria, or paper-thin material that’s stronger than steel.  And let’s pass a patent reform bill that allows our businesses to stay focused on innovation, not costly, needless litigation.

Now, one of the biggest factors in bringing more jobs back is our commitment to American energy.  The all-of-the-above energy strategy I announced a few years ago is working, and today, America is closer to energy independence than we’ve been in decades.

One of the reasons why is natural gas – if extracted safely, it’s the bridge fuel that can power our economy with less of the carbon pollution that causes climate change.  Businesses plan to invest almost $100 billion in new factories that use natural gas.  I’ll cut red tape to help states get those factories built, and this Congress can help by putting people to work building fueling stations that shift more cars and trucks from foreign oil to American natural gas.  My administration will keep working with the industry to sustain production and job growth while strengthening protection of our air, our water, and our communities.  And while we’re at it, I’ll use my authority to protect more of our pristine federal lands for future generations.

It’s not just oil and natural gas production that’s booming; we’re becoming a global leader in solar, too.  Every four minutes, another American home or business goes solar; every panel pounded into place by a worker whose job can’t be outsourced.  Let’s continue that progress with a smarter tax policy that stops giving $4 billion a year to fossil fuel industries that don’t need it, so that we can invest more in fuels of the future that do.

And even as we’ve increased energy production, we’ve 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, I’ll 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, safer planet.  Over the past eight years, the United States has 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.  That’s 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 to a cleaner energy economy won’t happen overnight, and it will require tough choices along the way.  But the debate is settled.  Climate change is a fact.  And when our children’s 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.

Finally, if we are serious about economic growth, it is time to heed the call of business leaders, labor leaders, faith leaders, and law enforcement – and fix our broken immigration system.  Republicans and Democrats in the Senate have acted.  I know that members of both parties in the House want to do the same.  Independent economists say immigration reform will grow our economy and shrink our deficits by almost $1 trillion in the next two decades.  And for good reason: when people come here to fulfill their dreams – to study, invent, and contribute to our culture – they make our country a more attractive place for businesses to locate and create jobs for everyone.  So let’s get immigration reform done this year.

The ideas I’ve outlined so far 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, Andra Rush opened up a manufacturing firm in Detroit.  She knew that Ford needed parts for the best-selling truck in America, and she knew how to make them.  She just needed the workforce.  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 better job.  She was flooded with new workers.  And 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.  So tonight, I’ve asked Vice President Biden to lead an across-the-board reform of America’s 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.  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.  And 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.

I’m also convinced we can help Americans return to the workforce faster by reforming unemployment insurance so that it’s more effective in today’s economy.  But first, this Congress needs to restore the unemployment insurance you just let expire for 1.6 million people.

Let me tell you why.

Misty DeMars is a mother of two young boys. She’d been steadily employed since she was a teenager.  She put herself through college.  She’d never collected unemployment benefits.  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.  “I am not dependent on the government…Our country depends on people like us who build careers, contribute to society…care about our neighbors…I am 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.  They need our help, but more important, this country needs them in the game.  That’s why I’ve been asking CEOs to give more long-term unemployed workers a fair shot at that new job and new chance to support their families; 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 to do the same – because we are stronger when America fields a full team. 

Of course, it’s not enough to train today’s workforce.  We also have to prepare tomorrow’s workforce, by guaranteeing every child access to a world-class education.

Estiven Rodriguez couldn’t speak a word of English when he moved to New York City at age nine.  But last month, thanks to the support of great teachers and an innovative tutoring program, he led a march of his classmates – through a crowd of cheering parents and neighbors – from their high school to the post office, where they mailed off their college applications.  And this son of a factory worker just found out he’s going to college this fall.

Five years ago, we set out to change the odds for all our kids.  We worked with lenders to reform student loans, and 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 principals in schools from Tennessee to Washington, D.C. are making big strides in preparing students with skills for the new economy – problem solving, critical thinking, science, technology, engineering, and math.  Some of this change is hard.  It requires everything from more challenging curriculums and more demanding parents to better support for teachers and new ways to measure how well our kids think, not how well they can fill in a bubble on a test.  But it’s worth it – and it’s working. 

The problem is we’re still not reaching enough kids, and we’re not reaching them in time.  That has to change. 

Research shows that one of the best investments we can make in a child’s life is high-quality early education.  Last year, I asked this Congress to help states make high-quality pre-K available to every four year-old.  As a parent as well as a President, I repeat that request tonight. But in the meantime, thirty states have raised pre-k funding on their own.  They know we can’t wait.  So just as we worked with states to reform our schools, this year, we’ll 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 it’s going to do, I’m going to pull together a coalition of elected officials, business leaders, and philanthropists willing to help more kids access the high-quality pre-K they need.

Last year, I also pledged to connect 99 percent of our students to high-speed broadband over the next four years.  Tonight, I can announce that with the support of the FCC and companies like Apple, Microsoft, Sprint, and Verizon, we’ve got a down payment to start connecting more than 15,000 schools and twenty million students over the next two years, without adding a dime to the deficit. 

We’re working to redesign high schools and partner them with colleges and employers that offer the real-world education and hands-on training that can lead directly to a job and career.  We’re shaking up our system of higher education to give parents more information, and colleges more incentives to offer better value, so that no middle-class kid is priced out of a college education.  We’re offering millions the opportunity to cap their monthly student loan payments to ten percent 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 I’m reaching out to some of America’s leading foundations and corporations on a new initiative to help more young men of color facing tough odds 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.  But we know our opportunity agenda won’t be complete – and too many young people entering the workforce today will see the American Dream as an empty promise – unless we 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 workforce.  But they still make 77 cents for every dollar a man earns.  That is wrong, and in 2014, it’s an embarrassment. A woman deserves equal pay for equal work.  She deserves to have a baby without sacrificing her job.  A mother deserves a day off to care for a sick child or sick parent without running into hardship – and you know what, a father does, too.  It’s time to do away with workplace policies that belong in a “Mad Men” episode.  This year, let’s all come together – Congress, the White House, and businesses from Wall Street to Main Street – to give every woman the opportunity she deserves.  Because I firmly believe when women succeed, America succeeds.

Now, women hold a majority of lower-wage jobs – but they’re not the only ones stifled by stagnant wages.  Americans understand that some people will earn more than others, and we don’t resent those who, by virtue of their efforts, achieve incredible success.  But Americans overwhelmingly agree that no one who works full time should ever have to raise a family in poverty.

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 Chute is here tonight with his boss, John Soranno.  John’s 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 ten bucks an hour – a decision that eased their financial stress and boosted their morale.

Tonight, I ask more of America’s business leaders to follow John’s lead and do what you can to raise your employees’ wages.  To every mayor, governor, and state legislator in America, I say, you don’t have to wait for Congress to act; Americans will support you if you take this on.  And as a chief executive, I intend to lead by example. Profitable corporations 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 an hour – because if you cook our troops’ meals or wash their dishes, you shouldn’t have to live in poverty.

Of course, to reach millions more, Congress needs to get on board. Today, the federal minimum wage is worth about twenty percent 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.  This will help families.  It will give businesses customers with more money to spend.  It doesn’t involve any new bureaucratic program.  So join the rest of the country.  Say yes.  Give America 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.  But I agree with Republicans like Senator Rubio that it doesn’t do enough for single workers who don’t have kids.  So let’s work together to strengthen the credit, reward work, and help more Americans get ahead.

Let’s do more to help Americans save for retirement. Today, most workers don’t have a pension.  A Social Security check often isn’t enough on its own.  And while the stock market has doubled over the last five years, that doesn’t help folks who don’t have 401ks.  That’s why, tomorrow, I will direct the Treasury to create a new way for working Americans to start their own retirement savings: MyRA. It’s a new savings bond that encourages folks to build a nest egg.  MyRA guarantees a decent return with no risk of losing what 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 to nothing for middle-class Americans.  Offer every American access to an automatic IRA on the job, so they can save at work just like everyone 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 of Americans.

One last point on financial security.  For decades, few things exposed hard-working families to economic hardship more than a broken health care system.  And in case you haven’t heard, we’re in the process of fixing that.

A pre-existing condition used to mean that someone like Amanda Shelley, a physician assistant and single mom from Arizona, couldn’t 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, that surgery would’ve meant bankruptcy.

That’s what health insurance reform is all about – the peace of mind that if misfortune strikes, you don’t 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’ plans.

More than nine million Americans have signed up for private health insurance or Medicaid coverage.

And here’s another number: zero.  Because of this law, no American can ever again be dropped or denied coverage for a preexisting condition like asthma, back pain, or cancer. No woman can ever be charged more just because she’s a woman.  And we did all this while adding years to Medicare’s finances, keeping Medicare premiums flat, and lowering prescription costs for millions of seniors.

Now, I don’t expect to convince my Republican friends on the merits of this law.  But I know that the American people aren’t interested in refighting old battles.  So again, if you have specific plans to cut costs, cover more people, and increase choice – tell America what you’d do differently.  Let’s see if the numbers add up.  But let’s not have another forty-something votes to repeal a law that’s already helping millions of Americans like Amanda.  The first forty were plenty.  We got it.  We all owe it to the American people to say what we’re for, not just what we’re against. 

And if you want to know the real impact this law is having, just talk to Governor Steve Beshear of Kentucky, who’s here tonight.  Kentucky’s not the most liberal part of the country, but he’s like a man possessed when it comes to covering his commonwealth’s families.  “They are our friends and neighbors,” he said.  “They are people we shop and go to church with…farmers out on the tractors…grocery clerks…they are people who go to work every morning praying they don’t get sick.  No one deserves to live that way.” 

Steve’s right.  That’s why, tonight, I ask every American who knows someone without health insurance to help them get covered by March 31st.  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 – plus, she’ll appreciate hearing from you. 

After all, that’s the spirit that has always moved this nation forward.  It’s 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 everyone’s right to vote.  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 last year has offered reforms so that no one has to wait more than a half hour to vote.  Let’s support these efforts.  It should be the power of our vote, not the size of our bank account, that drives our democracy.

Citizenship means standing up for the lives that gun violence steals from us each day.  I have seen the courage of parents, students, pastors, and 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, shopping malls, or schools like Sandy Hook.

Citizenship demands a sense of common cause; participation in the hard work of self-government; an obligation to serve to our communities.  And 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.

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.  When I took office, nearly 180,000 Americans were serving in Iraq and Afghanistan.  Today, all our troops are out of Iraq.  More than 60,000 of our troops have already come home from Afghanistan.  With Afghan forces now in the lead for their own security, 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 America’s longest war will finally be over.

After 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.  For while our relationship with Afghanistan will change, one thing will not: our resolve that terrorists do not launch attacks against our country.

The fact is, that danger remains.  While we have put al Qaeda’s 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, and Mali, we have to keep working with partners to disrupt and disable these networks. In Syria, we’ll support the opposition that rejects  the agenda of terrorist networks. Here at home, we’ll keep strengthening our defenses, and combat new threats like cyberattacks.  And as we reform our defense budget, we have to keep faith with our men and women in uniform, and invest in the capabilities they need to succeed in future missions.

We have to remain vigilant.  But I strongly believe our leadership and our security cannot depend on our military alone. As Commander-in-Chief, I have used force when needed to 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 harm’s way unless it’s truly necessary; nor will I allow our sons and daughters to be mired in open-ended conflicts.  We must fight the battles that need to be fought, not those that terrorists prefer from us – large-scale deployments that drain our strength and may ultimately feed extremism.

So, even as we aggressively pursue terrorist networks – through more targeted efforts and by building the capacity of our foreign partners – America must move off a permanent war footing.  That’s why I’ve imposed prudent 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.  That’s 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, that the privacy of ordinary people is not being violated.  And with the Afghan war ending, this needs to be the year Congress lifts the remaining restrictions on detainee transfers and we close the prison at Guantanamo Bay – because we counter terrorism not just through intelligence and military action, 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 and leadership depends on all elements of our power – including strong and principled diplomacy.  American diplomacy has rallied more than fifty 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 Syria’s chemical weapons are being eliminated, and we will continue to work with the international community to usher in the future 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 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.

And it is American diplomacy, backed by pressure, that has halted the progress of Iran’s nuclear program – and rolled parts of that program back – 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.  It is not installing advanced centrifuges.  Unprecedented inspections help the world verify, every day, that Iran is not building a bomb.  And with our allies and partners, we’re engaged in negotiations to see if we can peacefully achieve a goal we all share: preventing Iran from obtaining a nuclear weapon.

These negotiations will be difficult.  They may not succeed.  We are clear-eyed about Iran’s support for terrorist organizations like Hezbollah, which threaten our allies; and the mistrust between our nations cannot be wished away.  But these negotiations do not rely on trust; any long-term 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.

The sanctions that we put in place helped 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 Iran’s leaders do not seize this opportunity, then I will be the first to call for more sanctions, and stand ready to exercise all options to make sure Iran does not build a nuclear weapon.  But if Iran’s leaders do seize the chance, 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, let’s 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 to take advantage of those opportunities than America. 

Our alliance with Europe remains the strongest the world has ever known.  From Tunisia to Burma, we’re supporting those who are willing to do the hard work of building democracy.  In Ukraine, we stand for the principle that all people have the right to express themselves freely and peacefully, and have a say in their country’s future.  Across Africa, we’re bringing together businesses and governments to double access to electricity and help end extreme poverty.  In the Americas, we are building new ties of commerce, but we’re also expanding cultural and educational exchanges among young people.  And we will continue to focus on the Asia-Pacific, where we support our allies, shape a 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 were greeted with words like, “We will never forget your kindness” and “God bless America!”

We do these things because they help promote our long-term 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.  And 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.

My fellow Americans, no other country in the world does what we do.  On every issue, the world turns to us, not simply because of the size of our economy or our military might – but because of the ideals we stand for, and the burdens we bear 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.  We’ll keep slashing that backlog so our veterans receive the benefits they’ve earned, and our wounded warriors receive the health care – including the mental health care – that they need.  We’ll keep working to help all our veterans translate their skills and leadership into jobs here at home.  And we all continue to join forces to honor and support our remarkable military families.

Let me tell you about one of those families I’ve come to know.

I first met Cory Remsburg, a proud Army Ranger, at Omaha Beach on the 65th anniversary of D-Day.  Along with some of his fellow Rangers, he walked me through the program – a strong, impressive young man, with an easy manner, sharp as a tack.  We joked around, and took pictures, and 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, face down, underwater, shrapnel in his brain. 

For months, he lay in a coma.  The next time I met him, in the hospital, he couldn’t speak; he could barely move.  Over the years, he’s endured dozens of surgeries and procedures, and hours of grueling rehab every day. 

Even now, Cory is still blind in one eye.  He still struggles on his left side.  But slowly, steadily, with the support of caregivers like his dad Craig, and the community around him, Cory has grown stronger. Day by day, he’s learned to speak again and stand again and walk again – and he’s working toward the day when he can serve his country again. 

“My recovery has not been easy,” he says. “Nothing in life that’s 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. 

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 or discouraged.  But for more than two hundred 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, with our feet planted firmly in today but our eyes cast towards tomorrow – I know it’s within our reach. 

Believe it.

God bless you, and God bless the United States of America.