On the economy, Obama called for raising the federal minimum wage from $7.25 to $9 by 2015. The minimum wage has been stagnant since 2007, and administration officials said the increase would strengthen purchasing power. The president also wants Congress to approve automatic increases in the wage to keep pace with inflation.
Looking for common ground anywhere he could find it, Obama framed his proposal to boost the minimum wage by pointing out that even his GOP presidential rival liked the idea. He said, "Here's an idea that Gov. Romney and I actually agreed on last year: Let's tie the minimum wage to the cost of living, so that it finally becomes a wage you can live on."
Obama also renewed his calls for infrastructure spending, investments he sought repeatedly during his first term with little support from Republicans. He pressed lawmakers to approve a $50 billion "fix it first" program that would address the most urgent infrastructure needs.
Education also figures in Obama's plans to boost American competitiveness in the global economy. Under his proposal, the federal government would help states provide pre-school for all 4-year-olds. Officials did not provide a cost for the pre-school programs but said the government would provide financial incentives to help states.
Among the other initiatives Obama is proposing:
• A $1 billion plan to create 15 "manufacturing institutes" that would bring together businesses, universities and the government. If Congress opposes the initiative, Obama plans to use his presidential powers to create three institutes on his own.
• Creation of an "energy security trust" that would use revenue from federal oil and gas leases to support development of clean energy technologies such as biofuels and natural gas
• Doubling of renewable energy in the U.S. from wind, solar and geothermal sources by 2020.