State of the Union 2015: Full transcript

(CNN)As Prepared for Delivery

There is a ritual on State of the Union night in Washington. A little before the address, the White House sends out an embargoed copy of the President’s speech to the press (embargoed means that the press can see the speech, but they can’t report on it until a designated time). The reporters then start sending it around town to folks on Capitol Hill to get their reaction, then those people send it to all their friends, and eventually everyone in Washington can read along, but the public remains in the dark.

This year we change that.

For the first time, the White House is making the full text of the speech available to citizens around the country online. On Medium, you can follow along with the speech as you watch in real time, view charts and infographics on key areas, tweet favorite lines, and leave notes. By making the text available to the public in advance, the White House is continuing efforts to reach a wide online audience and give people a range of ways to consume the speech.

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Mr. Speaker, Mr. Vice President, Members of Congress, my fellow Americans:

We are fifteen years into this new century. Fifteen years that dawned with terror touching our shores; that unfolded with a new generation fighting two long and costly wars; that saw a vicious recession spread across our nation and the world. It has been, and still is, a hard time for many.

But tonight, we turn the page.

Tonight, after a breakthrough year for America, our economy is growing and creating jobs at the fastest pace since 1999. Our unemployment rate is now lower than it was before the financial crisis. More of our kids are graduating than ever before; more of our people are insured than ever before; we are as free from the grip of foreign oil as we’ve been in almost 30 years.

Tonight, for the first time since 9/11, our combat mission in Afghanistan is over. Six years ago, nearly 180,000 American troops served in Iraq and Afghanistan. Today, fewer than 15,000 remain. And we salute the courage and sacrifice of every man and woman in this 9/11 Generation who has served to keep us safe. We are humbled and grateful for your service.

America, for all that we’ve endured; for all the grit and hard work required to come back; for all the tasks that lie ahead, know this:

The shadow of crisis has passed, and the State of the Union is strong.

At this moment — with a growing economy, shrinking deficits, bustling industry, and booming energy production — we have risen from recession freer to write our own future than any other nation on Earth. It’s now up to us to choose who we want to be over the next fifteen years, and for decades to come.

Will we accept an economy where only a few of us do spectacularly well? Or will we commit ourselves to an economy that generates rising incomes and chances for everyone who makes the effort?

Will we approach the world fearful and reactive, dragged into costly conflicts that strain our military and set back our standing? Or will we lead wisely, using all elements of our power to defeat new threats and protect our planet?

Will we allow ourselves to be sorted into factions and turned against one another — or will we recapture the sense of common purpose that has always propelled America forward?

In two weeks, I will send this Congress a budget filled with ideas that are practical, not partisan. And in the months ahead, I’ll crisscross the country making a case for those ideas.

So tonight, I want to focus less on a checklist of proposals, and focus more on the values at stake in the choices before us.

It begins with our economy.

Seven years ago, Rebekah and Ben Erler of Minneapolis were newlyweds. She waited tables. He worked construction. Their first child, Jack, was on the way.

They were young and in love in America, and it doesn’t get much better than that.

“If only we had known,” Rebekah wrote to me last spring, “what was about to happen to the housing and construction market.”

As the crisis worsened, Ben’s business dried up, so he took what jobs he could find, even if they kept him on the road for long stretches of time. Rebekah took out student loans, enrolled in community college, and retrained for a new career. They sacrificed for each other. And slowly, it paid off. They bought their first home. They had a second son, Henry. Rebekah got a better job, and then a raise. Ben is back in construction — and home for dinner every night.

“It is amazing,” Rebekah wrote, “what you can bounce back from when you have to…we are a strong, tight-knit family who has made it through some very, very hard times.”

We are a strong, tight-knit family who has made it through some very, very hard times.

America, Rebekah and Ben’s story is our story. They represent the millions who have worked hard, and scrimped, and sacrificed, and retooled. You are the reason I ran for this office. You’re the people I was thinking of six years ago today, in the darkest months of the crisis, when I stood on the steps of this Capitol and promised we would rebuild our economy on a new foundation. And it’s been your effort and resilience that has made it possible for our country to emerge stronger.

We believed we could reverse the tide of outsourcing, and draw new jobs to our shores. And over the past five years, our businesses have created more than 11 million new jobs.

We believed we could reduce our dependence on foreign oil and protect our planet. And today, America is number one in oil and gas. America is number one in wind power. Every three weeks, we bring online as much solar power as we did in all of 2008. And thanks to lower gas prices and higher fuel standards, the typical family this year should save $750 at the pump.

We believed we could prepare our kids for a more competitive world. And today, our younger students have earned the highest math and reading scores on record. Our high school graduation rate has hit an all-time high. And more Americans finish college than ever before.

We believed that sensible regulations could prevent another crisis, shield families from ruin, and encourage fair competition. Today, we have new tools to stop taxpayer-funded bailouts, and a new consumer watchdog to protect us from predatory lending and abusive credit card practices. And in the past year alone, about ten million uninsured Americans finally gained the security of health coverage.

At every step, we were told our goals were misguided or too ambitious; that we would crush jobs and explode deficits. Instead, we’ve seen the fastest economic growth in over a decade, our deficits cut by two-thirds, a stock market that has doubled, and health care inflation at its lowest rate in fifty years.

So the verdict is clear. Middle-class economics works. Expanding opportunity works. And these policies will continue to work, as long as politics don’t get in the way. We can’t slow down businesses or put our economy at risk with government shutdowns or fiscal showdowns. We can’t put the security of families at risk by taking away their health insurance, or unraveling the new rules on Wall Street, or refighting past battles on immigration when we’ve got a system to fix. And if a bill comes to my desk that tries to do any of these things, it will earn my veto.

Today, thanks to a growing economy, the recovery is touching more and more lives. Wages are finally starting to rise again. We know that more small business owners plan to raise their employees’ pay than at any time since 2007. But here’s the thing — those of us here tonight, we need to set our sights higher than just making sure government doesn’t halt the progress we’re making. We need to do more than just do no harm. Tonight, together, let’s do more to restore the link between hard work and growing opportunity for every American.

Because families like Rebekah’s still need our help. She and Ben are working as hard as ever, but have to forego vacations and a new car so they can pay off student loans and save for retirement. Basic childcare for Jack and Henry costs more than their mortgage, and almost as much as a year at the University of Minnesota. Like millions of hardworking Americans, Rebekah isn’t asking for a handout, but she is asking that we look for more ways to help families get ahead.

In fact, at every moment of economic change throughout our history, this country has taken bold action to adapt to new circumstances, and to make sure everyone gets a fair shot. We set up worker protections, Social Security, Medicare, and Medicaid to protect ourselves from the harshest adversity. We gave our citizens schools and colleges, infrastructure and the internet — tools they needed to go as far as their effort will take them.

That’s what middle-class economics is — the idea that this country does best when everyone gets their fair shot, everyone does their fair share, and everyone plays by the same set of rules. We don’t just want everyone to share in America’s success — we want everyone to contribute to our success.

So what does middle-class economics require in our time?

First — middle-class economics means helping working families feel more secure in a world of constant change. That means helping folks afford childcare, college, health care, a home, retirement — and my budget will address each of these issues, lowering the taxes of working families and putting thousands of dollars back into their pockets each year.

Here’s one example. During World War II, when men like my grandfather went off to war, having women like my grandmother in the workforce was a national security priority — so this country provided universal childcare. In today’s economy, when having both parents in the workforce is an economic necessity for many families, we need affordable, high-quality childcare more than ever. It’s not a nice-to-have — it’s a must-have. It’s time we stop treating childcare as a side issue, or a women’s issue, and treat it like the national economic priority that it is for all of us. And that’s why my plan will make quality childcare more available, and more affordable, for every middle-class and low-income family with young children in America — by creating more slots and a new tax cut of up to $3,000 per child, per year.

Here’s another example. Today, we’re the only advanced country on Earth that doesn’t guarantee paid sick leave or paid maternity leave to our workers. Forty-three million workers have no paid sick leave. Forty-three million. Think about that. And that forces too many parents to make the gut-wrenching choice between a paycheck and a sick kid at home. So I’ll be taking new action to help states adopt paid leave laws of their own. And since paid sick leave won where it was on the ballot last November, let’s put it to a vote right here in Washington. Send me a bill that gives every worker in America the opportunity to earn seven days of paid sick leave. It’s the right thing to do.

Of course, nothing helps families make ends meet like higher wages. That’s why this Congress still needs to pass a law that makes sure a woman is paid the same as a man for doing the same work. Really. It’s 2015. It’s time. We still need to make sure employees get the overtime they’ve earned. And to everyone in this Congress who still refuses to raise the minimum wage, I say this: If you truly believe you could work full-time and support a family on less than $15,000 a year, go try it. If not, vote to give millions of the hardest-working people in America a raise.

These ideas won’t make everybody rich, or relieve every hardship. That’s not the job of government. To give working families a fair shot, we’ll still need more employers to see beyond next quarter’s earnings and recognize that investing in their workforce is in their company’s long-term interest. We still need laws that strengthen rather than weaken unions, and give American workers a voice. But things like child care and sick leave and equal pay; things like lower mortgage premiums and a higher minimum wage — these ideas will make a meaningful difference in the lives of millions of families. That is a fact. And that’s what all of us — Republicans and Democrats alike — were sent here to do.

Second, to make sure folks keep earning higher wages down the road, we have to do more to help Americans upgrade their skills.

America thrived in the 20th century because we made high school free, sent a generation of GIs to college, and trained the best workforce in the world. But in a 21st century economy that rewards knowledge like never before, we need to do more.

By the end of this decade, two in three job openings will require some higher education. Two in three. And yet, we still live in a country where too many bright, striving Americans are priced out of the education they need. It’s not fair to them, and it’s not smart for our future.

That’s why I am sending this Congress a bold new plan to lower the cost of community college — to zero.

Forty percent of our college students choose community college. Some are young and starting out. Some are older and looking for a better job. Some are veterans and single parents trying to transition back into the job market. Whoever you are, this plan is your chance to graduate ready for the new economy, without a load of debt. Understand, you’ve got to earn it — you’ve got to keep your grades up and graduate on time. Tennessee, a state with Republican leadership, and Chicago, a city with Democratic leadership, are showing that free community college is possible. I want to spread that idea all across America, so that two years of college becomes as free and universal in America as high school is today. And I want to work with this Congress, to make sure Americans already burdened with student loans can reduce their monthly payments, so that student debt doesn’t derail anyone’s dreams.

Thanks to Vice President Biden’s great work to update our job training system, we’re connecting community colleges with local employers to train workers to fill high-paying jobs like coding, and nursing, and robotics. Tonight, I’m also asking more businesses to follow the lead of companies like CVS and UPS, and offer more educational benefits and paid apprenticeships — opportunities that give workers the chance to earn higher-paying jobs even if they don’t have a higher education.

And as a new generation of veterans comes home, we owe them every opportunity to live the American Dream they helped defend. Already, we’ve made strides towards ensuring that every veteran has access to the highest quality care. We’re slashing the backlog that had too many veterans waiting years to get the benefits they need, and we’re making it easier for vets to translate their training and experience into civilian jobs. Joining Forces, the national campaign launched by Michelle and Jill Biden, has helped nearly 700,000 veterans and military spouses get new jobs. So to every CEO in America, let me repeat: If you want somebody who’s going to get the job done, hire a veteran.

Finally, as we better train our workers, we need the new economy to keep churning out high-wage jobs for our workers to fill.

Since 2010, America has put more people back to work than Europe, Japan, and all advanced economies combined. Our manufacturers have added almost 800,000 new jobs. Some of our bedrock sectors, like our auto industry, are booming. But there are also millions of Americans who work in jobs that didn’t even exist ten or twenty years ago — jobs at companies like Google, and eBay, and Tesla.

So no one knows for certain which industries will generate the jobs of the future. But we do know we want them here in America. That’s why the third part of middle-class economics is about building the most competitive economy anywhere, the place where businesses want to locate and hire.

21st century businesses need 21st century infrastructure — modern ports, stronger bridges, faster trains and the fastest internet. Democrats and Republicans used to agree on this. So let’s set our sights higher than a single oil pipeline. Let’s pass a bipartisan infrastructure plan that could create more than thirty times as many jobs per year, and make this country stronger for decades to come.

21st century businesses, including small businesses, need to sell more American products overseas. Today, our businesses export more than ever, and exporters tend to pay their workers higher wages. But as we speak, China wants to write the rules for the world’s fastest-growing region. That would put our workers and businesses at a disadvantage. Why would we let that happen? We should write those rules. We should level the playing field. That’s why I’m asking both parties to give me trade promotion authority to protect American workers, with strong new trade deals from Asia to Europe that aren’t just free, but fair.

Look, I’m the first one to admit that past trade deals haven’t always lived up to the hype, and that’s why we’ve gone after countries that break the rules at our expense. But ninety-five percent of the world’s customers live outside our borders, and we can’t close ourselves off from those opportunities. More than half of manufacturing executives have said they’re actively looking at bringing jobs back from China. Let’s give them one more reason to get it done.

21st century businesses will rely on American science, technology, research and development. I want the country that eliminated polio and mapped the human genome to lead a new era of medicine — one that delivers the right treatment at the right time. In some patients with cystic fibrosis, this approach has reversed a disease once thought unstoppable. Tonight, I’m launching a new Precision Medicine Initiative to bring us closer to curing diseases like cancer and diabetes — and to give all of us access to the personalized information we need to keep ourselves and our families healthier.

I intend to protect a free and open internet, extend its reach to every classroom, and every community, and help folks build the fastest networks, so that the next generation of digital innovators and entrepreneurs have the platform to keep reshaping our world.

I want Americans to win the race for the kinds of discoveries that unleash new jobs — converting sunlight into liquid fuel; creating revolutionary prosthetics, so that a veteran who gave his arms for his country can play catch with his kid; pushing out into the Solar System not just to visit, but to stay. Last month, we launched a new spacecraft as part of a re-energized space program that will send American astronauts to Mars. In two months, to prepare us for those missions, Scott Kelly will begin a year-long stay in space. Good luck, Captain — and make sure to Instagram it.

Now, the truth is, when it comes to issues like infrastructure and basic research, I know there’s bipartisan support in this chamber. Members of both parties have told me so. Where we too often run onto the rocks is how to pay for these investments. As Americans, we don’t mind paying our fair share of taxes, as long as everybody else does, too. But for far too long, lobbyists have rigged the tax code with loopholes that let some corporations pay nothing while others pay full freight. They’ve riddled it with giveaways the superrich don’t need, denying a break to middle class families who do.

This year, we have an opportunity to change that. Let’s close loopholes so we stop rewarding companies that keep profits abroad, and reward those that invest in America. Let’s use those savings to rebuild our infrastructure and make it more attractive for companies to bring jobs home. Let’s simplify the system and let a small business owner file based on her actual bank statement, instead of the number of accountants she can afford. And let’s close the loopholes that lead to inequality by allowing the top one percent to avoid paying taxes on their accumulated wealth. We can use that money to help more families pay for childcare and send their kids to college. We need a tax code that truly helps working Americans trying to get a leg up in the new economy, and we can achieve that together.

Helping hardworking families make ends meet. Giving them the tools they need for good-paying jobs in this new economy. Maintaining the conditions for growth and competitiveness. This is where America needs to go. I believe it’s where the American people want to go. It will make our economy stronger a year from now, fifteen years from now, and deep into the century ahead.

Of course, if there’s one thing this new century has taught us, it’s that we cannot separate our work at home from challenges beyond our shores.

My first duty as Commander-in-Chief is to defend the United States of America. In doing so, the question is not whether America leads in the world, but how. When we make rash decisions, reacting to the headlines instead of using our heads; when the first response to a challenge is to send in our military — then we risk getting drawn into unnecessary conflicts, and neglect the broader strategy we need for a safer, more prosperous world. That’s what our enemies want us to do.

I believe in a smarter kind of American leadership. We lead best when we combine military power with strong diplomacy; when we leverage our power with coalition building; when we don’t let our fears blind us to the opportunities that this new century presents. That’s exactly what we’re doing right now — and around the globe, it is making a difference.

First, we stand united with people around the world who’ve been targeted by terrorists — from a school in Pakistan to the streets of Paris. We will continue to hunt down terrorists and dismantle their networks, and we reserve the right to act unilaterally, as we’ve done relentlessly since I took office to take out terrorists who pose a direct threat to us and our allies.

At the same time, we’ve learned some costly lessons over the last thirteen years.

Instead of Americans patrolling the valleys of Afghanistan, we’ve trained their security forces, who’ve now taken the lead, and we’ve honored our troops’ sacrifice by supporting that country’s first democratic transition. Instead of sending large ground forces overseas, we’re partnering with nations from South Asia to North Africa to deny safe haven to terrorists who threaten America. In Iraq and Syria, American leadership — including our military power — is stopping ISIL’s advance. Instead of getting dragged into another ground war in the Middle East, we are leading a broad coalition, including Arab nations, to degrade and ultimately destroy this terrorist group. We’re also supporting a moderate opposition in Syria that can help us in this effort, and assisting people everywhere who stand up to the bankrupt ideology of violent extremism. This effort will take time. It will require focus. But we will succeed. And tonight, I call on this Congress to show the world that we are united in this mission by passing a resolution to authorize the use of force against ISIL.

Second, we are demonstrating the power of American strength and diplomacy. We’re upholding the principle that bigger nations can’t bully the small — by opposing Russian aggression, supporting Ukraine’s democracy, and reassuring our NATO allies. Last year, as we were doing the hard work of imposing sanctions along with our allies, some suggested that Mr. Putin’s aggression was a masterful display of strategy and strength. Well, today, it is America that stands strong and united with our allies, while Russia is isolated, with its economy in tatters.

That’s how America leads — not with bluster, but with persistent, steady resolve.

In Cuba, we are ending a policy that was long past its expiration date. When what you’re doing doesn’t work for fifty years, it’s time to try something new. Our shift in Cuba policy has the potential to end a legacy of mistrust in our hemisphere; removes a phony excuse for restrictions in Cuba; stands up for democratic values; and extends the hand of friendship to the Cuban people. And this year, Congress should begin the work of ending the embargo. As His Holiness, Pope Francis, has said, diplomacy is the work of “small steps.” These small steps have added up to new hope for the future in Cuba. And after years in prison, we’re overjoyed that Alan Gross is back where he belongs. Welcome home, Alan.

Our diplomacy is at work with respect to Iran, where, for the first time in a decade, we’ve halted the progress of its nuclear program and reduced its stockpile of nuclear material. Between now and this spring, we have a chance to negotiate a comprehensive agreement that prevents a nuclear-armed Iran; secures America and our allies — including Israel; while avoiding yet another Middle East conflict. There are no guarantees that negotiations will succeed, and I keep all options on the table to prevent a nuclear Iran. But new sanctions passed by this Congress, at this moment in time, will all but guarantee that diplomacy fails — alienating America from its allies; and ensuring that Iran starts up its nuclear program again. It doesn’t make sense. That is why I will veto any new sanctions bill that threatens to undo this progress. The American people expect us to only go to war as a last resort, and I intend to stay true to that wisdom.

Third, we’re looking beyond the issues that have consumed us in the past to shape the coming century.

No foreign nation, no hacker, should be able to shut down our networks, steal our trade secrets, or invade the privacy of American families, especially our kids. We are making sure our government integrates intelligence to combat cyber threats, just as we have done to combat terrorism. And tonight, I urge this Congress to finally pass the legislation we need to better meet the evolving threat of cyber-attacks, combat identity theft, and protect our children’s information. If we don’t act, we’ll leave our nation and our economy vulnerable. If we do, we can continue to protect the technologies that have unleashed untold opportunities for people around the globe.

In West Africa, our troops, our scientists, our doctors, our nurses and healthcare workers are rolling back Ebola — saving countless lives and stopping the spread of disease. I couldn’t be prouder of them, and I thank this Congress for your bipartisan support of their efforts. But the job is not yet done — and the world needs to use this lesson to build a more effective global effort to prevent the spread of future pandemics, invest in smart development, and eradicate extreme poverty.

In the Asia Pacific, we are modernizing alliances while making sure that other nations play by the rules — in how they trade, how they resolve maritime disputes, and how they participate in meeting common international challenges like nonproliferation and disaster relief. And no challenge — no challenge — poses a greater threat to future generations than climate change.

2014 was the planet’s warmest year on record. Now, one year doesn’t make a trend, but this does — 14 of the 15 warmest years on record have all fallen in the first 15 years of this century.

I’ve heard some folks try to dodge the evidence by saying they’re not scientists; that we don’t have enough information to act. Well, I’m not a scientist, either. But you know what — I know a lot of really good scientists at NASA, and NOAA, and at our major universities. The best scientists in the world are all telling us that our activities are changing the climate, and if we do not act forcefully, we’ll continue to see rising oceans, longer, hotter heat waves, dangerous droughts and floods, and massive disruptions that can trigger greater migration, conflict, and hunger around the globe. The Pentagon says that climate change poses immediate risks to our national security. We should act like it.

That’s why, over the past six years, we’ve done more than ever before to combat climate change, from the way we produce energy, to the way we use it. That’s why we’ve set aside more public lands and waters than any administration in history. And that’s why I will not let this Congress endanger the health of our children by turning back the clock on our efforts. I am determined to make sure American leadership drives international action. In Beijing, we made an historic announcement — the United States will double the pace at which we cut carbon pollution, and China committed, for the first time, to limiting their emissions. And because the world’s two largest economies came together, other nations are now stepping up, and offering hope that, this year, the world will finally reach an agreement to protect the one planet we’ve got.

There’s one last pillar to our leadership — and that’s the example of our values.

As Americans, we respect human dignity, even when we’re threatened, which is why I’ve prohibited torture, and worked to make sure our use of new technology like drones is properly constrained. It’s why we speak out against the deplorable anti-Semitism that has resurfaced in certain parts of the world. It’s why we continue to reject offensive stereotypes of Muslims — the vast majority of whom share our commitment to peace. That’s why we defend free speech, and advocate for political prisoners, and condemn the persecution of women, or religious minorities, or people who are lesbian, gay, bisexual, or transgender. We do these things not only because they’re right, but because they make us safer.

As Americans, we have a profound commitment to justice — so it makes no sense to spend three million dollars per prisoner to keep open a prison that the world condemns and terrorists use to recruit. Since I’ve been President, we’ve worked responsibly to cut the population of GTMO in half. Now it’s time to finish the job. And I will not relent in my determination to shut it down. It’s not who we are.

As Americans, we cherish our civil liberties — and we need to uphold that commitment if we want maximum cooperation from other countries and industry in our fight against terrorist networks. So while some have moved on from the debates over our surveillance programs, I haven’t. As promised, our intelligence agencies have worked hard, with the recommendations of privacy advocates, to increase transparency and build more safeguards against potential abuse. And next month, we’ll issue a report on how we’re keeping our promise to keep our country safe while strengthening privacy.

Looking to the future instead of the past. Making sure we match our power with diplomacy, and use force wisely. Building coalitions to meet new challenges and opportunities. Leading — always — with the example of our values. That’s what makes us exceptional. That’s what keeps us strong. And that’s why we must keep striving to hold ourselves to the highest of standards — our own.

You know, just over a decade ago, I gave a speech in Boston where I said there wasn’t a liberal America, or a conservative America; a black America or a white America — but a United States of America. I said this because I had seen it in my own life, in a nation that gave someone like me a chance; because I grew up in Hawaii, a melting pot of races and customs; because I made Illinois my home — a state of small towns, rich farmland, and one of the world’s great cities; a microcosm of the country where Democrats and Republicans and Independents, good people of every ethnicity and every faith, share certain bedrock values.

Over the past six years, the pundits have pointed out more than once that my presidency hasn’t delivered on this vision. How ironic, they say, that our politics seems more divided than ever. It’s held up as proof not just of my own flaws — of which there are many — but also as proof that the vision itself is misguided, and naïve, and that there are too many people in this town who actually benefit from partisanship and gridlock for us to ever do anything about it.

I know how tempting such cynicism may be. But I still think the cynics are wrong.

I still believe that we are one people. I still believe that together, we can do great things, even when the odds are long. I believe this because over and over in my six years in office, I have seen America at its best. I’ve seen the hopeful faces of young graduates from New York to California; and our newest officers at West Point, Annapolis, Colorado Springs, and New London. I’ve mourned with grieving families in Tucson and Newtown; in Boston, West, Texas, and West Virginia. I’ve watched Americans beat back adversity from the Gulf Coast to the Great Plains; from Midwest assembly lines to the Mid-Atlantic seaboard. I’ve seen something like gay marriage go from a wedge issue used to drive us apart to a story of freedom across our country, a civil right now legal in states that seven in ten Americans call home.

So I know the good, and optimistic, and big-hearted generosity of the American people who, every day, live the idea that we are our brother’s keeper, and our sister’s keeper. And I know they expect those of us who serve here to set a better example.

So the question for those of us here tonight is how we, all of us, can better reflect America’s hopes. I’ve served in Congress with many of you. I know many of you well. There are a lot of good people here, on both sides of the aisle. And many of you have told me that this isn’t what you signed up for — arguing past each other on cable shows, the constant fundraising, always looking over your shoulder at how the base will react to every decision.

Imagine if we broke out of these tired old patterns. Imagine if we did something different.

Understand — a better politics isn’t one where Democrats abandon their agenda or Republicans simply embrace mine.

A better politics is one where we appeal to each other’s basic decency instead of our basest fears.

A better politics is one where we debate without demonizing each other; where we talk issues, and values, and principles, and facts, rather than “gotcha” moments, or trivial gaffes, or fake controversies that have nothing to do with people’s daily lives.

A better politics is one where we spend less time drowning in dark money for ads that pull us into the gutter, and spend more time lifting young people up, with a sense of purpose and possibility, and asking them to join in the great mission of building America.

If we’re going to have arguments, let’s have arguments — but let’s make them debates worthy of this body and worthy of this country.

We still may not agree on a woman’s right to choose, but surely we can agree it’s a good thing that teen pregnancies and abortions are nearing all-time lows, and that every woman should have access to the health care she needs.

Yes, passions still fly on immigration, but surely we can all see something of ourselves in the striving young student, and agree that no one benefits when a hardworking mom is taken from her child, and that it’s possible to shape a law that upholds our tradition as a nation of laws and a nation of immigrants.

We may go at it in campaign season, but surely we can agree that the right to vote is sacred; that it’s being denied to too many; and that, on this 50th anniversary of the great march from Selma to Montgomery and the passage of the Voting Rights Act, we can come together, Democrats and Republicans, to make voting easier for every single American.

We may have different takes on the events of Ferguson and New York. But surely we can understand a father who fears his son can’t walk home without being harassed. Surely we can understand the wife who won’t rest until the police officer she married walks through the front door at the end of his shift. Surely we can agree it’s a good thing that for the first time in 40 years, the crime rate and the incarceration rate have come down together, and use that as a starting point for Democrats and Republicans, community leaders and law enforcement, to reform America’s criminal justice system so that it protects and serves us all.

That’s a better politics. That’s how we start rebuilding trust. That’s how we move this country forward. That’s what the American people want. That’s what they deserve.

I have no more campaigns to run. My only agenda for the next two years is the same as the one I’ve had since the day I swore an oath on the steps of this Capitol — to do what I believe is best for America. If you share the broad vision I outlined tonight, join me in the work at hand. If you disagree with parts of it, I hope you’ll at least work with me where you do agree. And I commit to every Republican here tonight that I will not only seek out your ideas, I will seek to work with you to make this country stronger.

Because I want this chamber, this city, to reflect the truth — that for all our blind spots and shortcomings, we are a people with the strength and generosity of spirit to bridge divides, to unite in common effort, and help our neighbors, whether down the street or on the other side of the world.

I want our actions to tell every child, in every neighborhood: your life matters, and we are as committed to improving your life chances as we are for our own kids.

I want future generations to know that we are a people who see our differences as a great gift, that we are a people who value the dignity and worth of every citizen — man and woman, young and old, black and white, Latino and Asian, immigrant and Native American, gay and straight, Americans with mental illness or physical disability.

I want them to grow up in a country that shows the world what we still know to be true: that we are still more than a collection of red states and blue states; that we are the United States of America.

I want them to grow up in a country where a young mom like Rebekah can sit down and write a letter to her President with a story to sum up these past six years:

“It is amazing what you can bounce back from when you have to…we are a strong, tight-knit family who has made it through some very, very hard times.”

My fellow Americans, we too are a strong, tight-knit family. We, too, have made it through some hard times. Fifteen years into this new century, we have picked ourselves up, dusted ourselves off, and begun again the work of remaking America. We’ve laid a new foundation. A brighter future is ours to write. Let’s begin this new chapter — together — and let’s start the work right now.

Thank you, God bless you, and God bless this country we love.

Sourced from ; http://edition.cnn.com/2015/01/20/politics/state-of-the-union-2015-transcript-full-text/

Budget Revision: Full text of Najib’s speech

SPECIAL REMARKS BY

YAB DATO’ SRI MOHD. NAJIB BIN TUN HAJI ABDUL RAZAK

PRIME MINISTER OF MALAYSIA

SPECIAL ADDRESS ON CURRENT DEVELOPMENTS AND GOVERNMENT’S FINANCIAL POSITION

Bismillahir Rahmanir Rahim

Assalamualaikum Warahmatullahi Wabarakatuh dan Salam 1 Malaysia

YAB Tan Sri Muhyidin Yassin

Timbalan Perdana Menteri

YB Dato’ Seri Ahmad Husni Hanadzlah

Menteri Kewangan Kedua

YBhg. Tan Sri Dr. Ali Hamsa

Ketua Setiausaha Negara 4

Introduction

  1. First and foremost, let us express our infinite gratitude towards Allah SWT for with His blessings, we are able to gather this morning. We also pray for the great prophet Muhammad SAW.
  2. We are here this morning with leaders and administrators, civil servants, industry players and corporate members, representatives of embassies, NGOs and volunteer groups, as well as the rakyat in this hall, and those watching TV or listening to the speech.
  3. I would like to address some concerns on the current economic developments and the Government’s financial position. Lately, there have been reports, concerns and queries on issues, such as crude oil prices and performance of the ringgit.
  4. The Government has been vigilantly monitoring the situation. In this regard, I will announce several proactive measures to realign our policies in line with the changing global economic scenario, which is beyond our control. We are undertaking this to ensure that we continue to achieve creditable growth.
  5. In other words, I am here today to announce specific and proactive measures to align ourselves with the recent global economic developments.
  6. We are not in crisis. Indeed, we are taking preemptive measures following the changes in the external global economic landscape which is beyond our control.
  7. This is to ensure that our economy continues to attain a respectable and reasonable growth. And at the same time, we want to ensure development for the nation and rakyat continues.
  8. Indeed, 2014 was a year of trials and tribulations for us due to several tragedies.
  9. At the end of last year, Malaysia was hit by unprecedented floods, affecting several states including Kelantan, Terengganu, Pahang, Kedah and Perak.
  10. Although the floods were not so severe in Johor, Sabah and Sarawak, local communities in some areas were affected.
  11. Thus, it is said that while man plans, Allah SWT plans too. And Allah SWT is the best of the planners.
  12. The Government has always done its best to plan, formulate and implement policies and measures for the betterment of the rakyat.
  13. It has been three months since the 2015 Budget was tabled. The Budget was formulated based on; First, price of Dated Brent was forecast at USD100 per barrel.
  14. Second, Gross Domestic Product (GDP) growth estimated between 5% and 6%. Third, a stable exchange rate of RM3.20 against the US dollar; and
  15. Fourth, 2015 world economic growth was projected at 3.4% and 3.9% by the World Bank and IMF respectively. Since then, the World Bank and the IMF have revised global growth to 3% and 3.8% respectively.
  16. It should be noted that Budget 2015 was formulated based on strong economic fundamentals in 2014. Therefore, the fiscal deficit was forecast from 3.5% in 2014 to 3% of GDP in 2015.
  17. However, the external situation has changed lately and we are impacted directly as Malaysia is among the largest trading nations in the world.
  18. Compared to the situation a few months ago, the global economic landscape has since changed significantly. This necessitates us to review and clarify some of our earlier macro and fiscal assumptions.
  19. Among the issues raised is the Government’s ability to achieve its fiscal targets for 2015. Given the current situation, the question is whether the economy and Government’s financial position will be affected.
  20. In this special address, I will explain to the rakyat and announce several measures to mitigate the current economic situation.
  21. As a responsible Government, we will continue to ensure economic development and safeguard the well-being of the rakyat.

Declining Crude Oil Prices

  1. We are aware of the concerns among the rakyat, business community and analysts over the impact of the sharp fall in crude oil prices on the domestic economy.
  2. Over the last six months, global crude oil prices have plunged more than 50%, among others, due to oversupply amid weak demand.
  3. Leveraging advances in technology, shale oil and gas output has risen significantly in the US.
  4. The situation is exacerbated by higher output from non-OPEC (Organisation of the Petroleum Exporting Countries). OPEC is also not willing to undertake production cuts in order to maintain its market share.
  5. The Government has consistently reiterated that crude oil prices are beyond its control.
  6. The benchmark Dated Brent crude oil price has dropped to around USD48 per barrel on 19 January 2015. And analysts expect oil prices to take quite a while to stabilise.

Benefits of Declining Crude Oil Prices

  1. Lower crude oil prices benefit net oil importing countries like Malaysia.
  2. For instance, the recent reduction in pump prices of petrol and diesel by 35 sen and 30 sen per litre, respectively will increase the overall disposable income of consumers by RM7.5 billion. Assuming that consumers spend 40% of this amount, it will boost private consumption by RM3 billion.
  3. The World Bank estimates that lower crude oil prices will have a positive impact on world GDP. In fact, a 30% decline in oil prices could boost global GDP of up to 0.5%.
  4. This bodes well for Malaysia’s manufactured products. Further, with the US economy strengthening, there will be sustained demand for our exports, in particular electrical and electronics (E&E) products.

Falling Crude Oil Prices will Reduce Federal Government Revenue

  1. In contrast, falling crude oil prices will reduce Government revenue. The revenue is used for development purposes such as building of schools, roads and houses of worship. It is also used for other expenditures such as salaries of civil servants, cost of medicine in Government hospitals, agriculture subsidies and expenditure for security including armed forces, police and RELA.
  2. In 2014, Dated Brent reached its highest level at USD115 per barrel on 19 June. Global crude oil prices have since plummeted by more than 50%.
  3. Consensus among economists is that the forecast price of USD100 per barrel used in the 2015 Budget is no longer realistic. They now estimate the average oil price in 2015 to range from USD40 to USD70 per barrel.
  4. The Government has therefore revised downwards its forecast for the average baseline oil price to USD55 per barrel for 2015.
  5. Based on the crude oil price of USD100 per barrel, coupled with savings following the implementation of the managed float pricing mechanism for retail fuel prices effective from December 2014, the Government is expected to get an additional operating surplus of RM3.7 billion.
  6. If crude oil price remains at USD100 per barrel, the Government will be able to accommodate all the measures announced in Budget 2015 with the fiscal deficit target not exceeding 3% of GDP.
  7. However, at the forecast price of USD55 per barrel, there will be a revenue shortfall of RM13.8 billion.
  8. If we compare the revised figures with Budget 2015 tabled in October last year, despite the savings of RM10.7 billion from the implementation of the managed float mechanism for retail fuel prices, the Government still faces a revenue shortfall of RM8.3 billion to accommodate the 2015 Budget measures.
  9. Without any fiscal measures, the deficit will increase to 3.9% of GDP against the target of 3% for 2015.
  10. This requires the Government to take measures to reduce the deficit, in line with the Government’s commitment towards fiscal consolidation.
  11. Therefore, taking into account the revised estimates, we are revising the fiscal deficit target to 3.2% of GDP in 2015.
  12. This is still lower than the fiscal deficit of 3.5% of GDP in 2014. In view of the external factors, we have to acknowledge that we may not be able to achieve the earlier fiscal target of 3% of GDP as announced. Of importance, is our commitment to continue reducing the fiscal deficit from 3.5% of GDP.
  13. More importantly, we will not compromise on national development planning as it will enhance productive capacity of the economy. We will not neglect the rakyat’s welfare, particularly the bottom 40% of households.

Volatile Capital Flows and Ringgit

  1. The fluctuations in the ringgit are influenced by developments in the global economy. Hence, the ringgit is not the only currency to have weakened against the US dollar. In fact, almost all currencies in the region have softened against the US dollar since September 2014.
  2. The recent volatile capital flows and significant depreciation of the ringgit were also due to concerns over the impact of the sharp fall in oil prices on the Malaysian economy.
  3. In relation to this, we must closely monitor the following:

First, the current account in the balance of payments must remain in surplus.

Second, continue with fiscal reforms and consolidation and

Third, economic activity must be further diversified to enable us to cope with falling crude oil and commodity prices.

  1. The Government is confident that the exchange rate will over time adjust to reflect the strong economic fundamentals. Of importance, our financial system continues to function in an orderly manner.
  2. Most importantly, there has been no disruption to financial intermediation, with lending activities continuing smoothly. Businesses continue to have access to financing from banking institutions and the capital market.
  3. In essence, greater policy flexibility, adequate international reserves, deeper and more diversified financial markets, sound banking system and strong domestic institutional investors such as the Employees Provident Fund will increase resilience to volatile capital flows.

Current Account Balance

  1. The current account balance is directly related to the import and export of goods and services.
  2. We are a crude oil exporter. Thus, when oil prices plummeted recently, there was a perception that export receipts will also decline drastically and result in a current account deficit.
  3. Indeed, this perception is not correct. As a net crude oil exporter, we had a surplus of RM7.7 billion from January to November 2014.
  4. However, we are an importer of petroleum products with a net import bill of RM8.9 billion during the same period.
  5. If we include both crude oil and petroleum products, we are actually a net importer with a deficit of RM1.2 billion.
  6. Therefore, the perception that Malaysia is a large oil producer is also not true.
  7. However, if we factor in exports and imports of crude oil, and nett out petroleum products, then Malaysia is a net importer of petroleum. This does not include LNG, for which Malaysia is a net exporter.
  8. Furthermore, we are still resilient as our diversified economy is able to weather the decline in oil prices.
  9. With a better outlook for the global economy in 2015, the shortfall in commodity receipts is expected to be cushioned by increased demand for manufactured goods, such as electrical and electronic products, wood-based products, textile products and others, which account for 76% of total exports. Meanwhile, crude oil exports account for only 4.5% of total exports.
  10. Therefore, the Government is confident that the current account will remain in surplus this year, although smaller in the range of 2% to 3% of Gross National Income or GNI. In 2014, the current account balance is estimated to record a surplus at 5.1% of GNI.

 

Strategies to Strengthen Economic Resilience

  1. As I have explained earlier, there are several issues which will impact the domestic economy significantly. In the light of this, the Government will take measures to ensure economic growth remains on a strong trajectory. We are confident of achieving GDP growth in the range of 4.5% – 5.5% this year with the implementation of the following strategies:

– First: Ensure balanced, inclusive and sustainable economic growth;

– Second: Continue fiscal reforms and consolidation; and

– Third: Provide assistance to the rakyat and business community to rebuild infrastructure damaged by floods.

  1. First Strategy: Ensuring Balanced, Inclusive and Sustainable Economic Growth

 

To boost exports of goods and services, the following measures will be taken:

First, actively promote import-substitution services such as shipping, port, education and professional services. This will reduce dependence on foreign sources for procurement of goods and services;

Second, accelerate implementation of recommendations of National Export Council:

– Enable exporters, especially SMEs, to be connected to new clients in new markets under an international linkage programme using market linkers and industry specialists;

– Intensify export promotion programmes in 46 countries covering Asia, Europe, the Middle East and the US;

– SME Bank will introduce SME-Go, an export programme for SMEs; and

– Leverage the Services Export Fund (SEF) and promotional programmes for SMEs to enhance sustainability of projects abroad.

Third, frontload implementation of Logistics & Trade Facilitation:

– Improve last-mile connectivity to Port Klang including access road, railway network and traffic management system;

– Upgrade Padang Besar railway terminal;

– Improve operational efficiency of import and export processes; and

– Establish a hub and spoke system for air transport.

Fourth, intensify tourism industry;

Fifth, review levy on foreign workers; and

Sixth, waiver of visa fee for tourists from, among others, China.

To enhance private consumption, the Government will implement the following initiatives:

First, give priority to local class G1 (class F), G2 (class E) and G3 (class D) contractors registered with CIDB to undertake reconstruction works in their respective flood affected areas;

Second, intensify promotion of “Buy Malaysia” products;

Third, increase frequency and extend shopping hours of nationwide mega sales;

Fourth, accelerate promotion of domestic tourism through competitive domestic air fares; and

Fifth, encourage the private sector to leverage benefits from the establishment of the ASEAN Economic Community.

In efforts to accelerate private investment, the Government will:

First, set up a Services Sector Guarantee Scheme amounting to RM5 billion for SMEs in the services sector, with maximum financing of RM5 million and 70% Government guarantee;

Second, encourage GLCs and GLICs to invest domestically;

Third, reduce cost of doing business:

– Postpone the scheduled electricity tariff hike in 2015; and

– Postpone the scheduled gas price hike for the industrial sector in 2015.

Fourth, allocate 30% of the annual procurement budget of Government agencies and GLCs for goods and services to local SME producers; and

Fifth, increase local goods and services in Government procurement.

  1. Second Strategy: Continuing Fiscal Reforms and Consolidation

Among the revenue enhancement measures include:

First, broaden the tax base by encouraging companies to register with the Royal Malaysian Customs to enable them to charge and collect GST. This is expected to contribute an additional RM1 billion in GST collection. As at mid-January 2015, more than 304,000 companies have registered; and

Second, realise additional dividends from GLCs and GLICs as well as other Government entities amounting to RM400 million.

The Government will undertake the following expenditure rationalisation measures:

First, optimise outlays on supplies and services, especially overseas travel, events and functions and use of professional services. This will result in savings of RM1.6 billion;

Second, defer the 2015 Program Latihan Khidmat Negara to enable the programme to be reviewed and enhanced, with savings expected at RM400 million;

Third, review transfers and grants to statutory bodies, GLCs and Government Trust Funds, particularly those with a steady revenue stream and high reserves. This measure will result in savings of RM3.2 billion; and

Fourth, reschedule the purchase of non-critical assets, especially office equipment, software and vehicles, with an expected savings of RM300 million.

  1. Third Strategy: Assisting the Rakyat and Business Community as well as Rebuilding Infrastructure Damaged by the Floods

The recent floods affected around 400,000 people nationwide. The latest estimate of damage to infrastructure is about RM2.9 billion.

Among the measures that have been taken and will be implemented to assist flood victims include:

The Government has provided an initial allocation of RM500 million for rehabilitation works and welfare programmes for flood victims.

This is in addition to the existing allocation to the National Security Council, bringing the total to RM787 million.

Provide an initial allocation of RM800 million for repair and reconstruction of basic infrastructure such as schools, hospitals, roads and bridges;

Provide RM893 million under the 2015 Budget for flood mitigation projects;

Build 8-ft stilt houses for those who have land and whose homes were damaged by the floods; Hand over 1,000 units of completed low-cost houses in Gua Musang; Provide RM500 per flood affected household; and Provide RM5,000 for the next-of-kin who have lost family members.

  1. For businesses affected by floods:

– Provide an additional RM100 million to TEKUN and RM100 million to AIM to provide soft loans to support SMEs and microenterprises.

  1. BSN, Agrobank, SME Bank, TEKUN and AIM to defer existing loan repayments of up to six months.
  2. Bank Negara Malaysia will establish a RM500 million Special Relief Facility for SME loan financing at a concessionary rate of 2.25% with a grace period of up to six months through banking and development financial institutions;
  3. Bank Rakyat will offer a personal loan scheme of up to RM50,000 at a financing rate as low as 3.9%, while loan repayments will start after six months from loan disbursement;
  4. A sum of RM500 million will be provided by financial institutions with a 70% guarantee under a Flood Relief Loan Guarantee Scheme (Skim Jaminan Pinjaman Bantuan Banjir) (SJPBB). The Scheme will be administered by Prokhas; and
  5. Exempt levy payment to the Human Resources Development Fund (HRDF) for a period of six months for SMEs in the flood affected areas with effect from 1 February 2015.

Conclusion

To sum up, I would like to highlight 6 key take-aways:

First, we are neither in a recession nor a crisis as experienced in 1997/1998, and 2009 which warranted stimulus packages;

Second, the strategies announced by the Government are proactive initiatives to make the necessary adjustments following the challenging external developments which are beyond our control. This is a reality check following, among others, declining global crude oil prices;

Third, the current account balance is expected to remain in surplus;

Fourth, the financial markets remain orderly and resilient. Although the ringgit has depreciated, it is expected to stabilise over time to reflect the strong economic fundamentals;

Fifth, Development Expenditure of RM48.5 billion for 2015 will be maintained and spent.

This includes projects for the people economy such as public housing, flood mitigation, water supply, electricity and public transport infrastructure such as Pan-Borneo Highway.

In addition, projects such as the MRT Line 2, LRT 3, High-Speed Rail Kuala Lumpur-Singapore will be continued.

In May, I will table the Eleventh Malaysia Plan (11MP) to outline the development expenditure until 2020.

Sixth, Operating Expenditure is expected to be reduced by RM5.5 billion through reprioritising expenditure.

  1. In concluding, let us pray and hope that Allah SWT will always assist us in our efforts to find solutions.
  2. In all of human nature, to Allah SWT we submit and surrender to His will. Of importance, we stand together in solidarity to face challenges.
  3. Surely, with every difficulty there is relief.
  4. Hopefully God Almighty will continue to protect our beloved country from harm and danger.

Thank you.

Sourced from http://www.themalaysiantimes.com.my/budget-revision-full-text-of-najibs-speech/

PUBLIC PROSECUTOR v AZILAH BIN HADRI & SIRUL AZHAR BIN HJ UMAR [13th Jan 2015] 05-185-09/2013(B)

Federal Court of Malaysia set aside the Court of Appeal’s decision.
Allowed Public Prosecutor’s appeal.

Shah Alam High Court’s decision on both’s conviction and mandatory sentence of death is affirmed and restored.

The full judgment is available here as attached.

GOJ_Altantuya_PP_v_Azilah_n_Sirul_laterst

This is the Media’s summary.

PRESS SUMMARY_PP V AZILAH & SIRUL

Alternatively, head over to the url address below.

http://www.kehakiman.gov.my/directory/judgment/file/GOJ_Altantuya_PP_v_Azilah_n_Sirul_laterst.pdf

http://www.kehakiman.gov.my/directory/judgment/file/Press_Summary_PP_v_Azilah_dan_Sirul_laterst.pdf