Income Inequality the ‘Defining Challenge of Our Time’ Says President Obama

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    (CNN) — The growing gap between rich and poor Americans is threatening the ideals the country was founded upon, President Barack Obama said in remarks Wednesday that appeared to signal a leftward turn in his economic agenda.

    Making sure that the U.S. economy works for every working American is “the defining challenge of our time,” Obama said in a speech at the Center for American Progress, a liberal think tank. He later said the “dangerous and growing” income and opportunity gap is jeopardizing the notion that if people work hard, they can get ahead.

    “The idea that so many children are born into poverty in the wealthiest nation on Earth is heartbreaking enough, but the idea that a child may never be able to escape that poverty, because she lacks a decent education or health care or a community that views her future as their own, that should offend all of us,” Obama said during his remarks.

    To combat the chasm between haves and have-nots, Obama called for a hike in the federal minimum wage, saying an increase is a good step for families and the economy as a whole.

    Democrats on Capitol Hill have pushed for an increase in the federal minimum wage, which currently stands at $7.25 an hour. A proposal would boost it to about $10, and the White House has said Obama supports such a measure.

    On Wednesday, Obama also made a general push to simplify the tax code, provide more work training in high schools, and make it easier for Americans to save for retirement.

    Those are notions Obama has presented before; however, by packaging them into a clear plan for the next three years, Obama seemed to be making a play to revive his core of liberal supporters, who over the past several months have weathered the disappointments of his health care rollout and allegations of NSA spying.

    Obama took sharp aim at Republicans during his remarks, saying they had failed to present their own plans for pulling Americans out of poverty.

    “If Republicans have concrete plans that will actually reduce inequality, build the middle class, provide more ladders of opportunity to the poor, let’s hear them. I want to know what they are,” Obama said.

    And he made a forceful call for lawmakers to extend emergency unemployment insurance by the end of the year, saying “Christmastime is no time for Congress to tell more than one million of these Americans” they’ve lost those benefits.

    The speech came as public approval of Obama sinks to new lows. The botched rollout of HealthCare.gov, coupled with stories of people losing their health plans, has contributed to the drop, but more Americans also say they disapprove of the President’s handling of the economy, five years after the downturn.

    A CNN/ORC Poll taken in November showed 59% of respondents said things were going badly in the country today. Thirty-nine percent – a plurality – said economic conditions are getting worse.

    While Wall Street indexes and corporate earnings have reached new highs, the situation for low and middle class Americans has largely remained dire, including a jobless rate that remains high and scores of people who have given up looking for work.

    The current economy is “profoundly unequal,” Obama proclaimed on Wednesday.

    “Growing inequality and lack of upward mobility that has jeopardized middle-class America’s basic bargain, that if you work hard, you have a chance to get ahead,” Obama said. “I believe this is the defining challenge of our time, making sure our economy works for every working American.”

    The problem of income disparity, and the fight for a higher minimum wage, have gained renewed attention in the past weeks – low wage fast food workers have staged one-day strikes across the country demanding higher paychecks, and protesters stood outside Wal-Marts and other box stores on Black Friday demanding employees be paid better.

    Obama’s remarks Wednesday took place at a theater and arts facility in Washington’s Southeast quadrant, an area of the capital where incomes remain low and 45% of the population lives below the poverty line.

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