We have what we need to do so. After all, we remain the wealthiest, most powerful, and most respected nation on Earth. Our youth and drive, our diversity and openness, our boundless capacity for risk and reinvention mean that the future should be ours.

But that potential will be realized only if our democracy works. Only if our politics reflects the decency of the people. Only if all of us, regardless of our party affiliation or particular interest, help restore the sense of common purpose that we so badly need right now.

That’s what I want to focus on tonight—the state of our democracy.

Understand, democracy does not require uniformity. Our founders quarreled and compromised, and expected us to do the same. But they knew that democracy does require a basic sense of solidarity—the idea that for all our outward differences, we are all in this together; that we rise or fall as one.

There have been moments throughout our history that threatened to rupture that solidarity. The beginning of this century has been one of those times. A shrinking world, growing inequality; demographic change and the specter of terrorism—these forces haven’t just tested our security and prosperity, but our democracy as well. And how we meet these challenges to our democracy will determine our ability to educate our kids, and create good jobs, and protect our homeland.

In other words, it will determine our future.

Our democracy won’t work without a sense that everyone has economic opportunity. Today, the economy is growing again; wages, incomes, home values, and retirement accounts are rising again; poverty is falling again. The wealthy are paying a fairer share of taxes even as the stock market shatters records. The unemployment rate is near a ten-year low. The uninsured rate has never, ever been lower. Health care costs are rising at the slowest rate in fifty years. And if anyone can put together a plan that is demonstrably better than the improvements we’ve made to our health care system—that covers as many people at less cost—I will publicly support it.

That, after all, is why we serve—to make people’s lives better, not worse.

But for all the real progress we’ve made, we know it’s not enough. Our economy doesn’t work as well or grow as fast when a few prosper at the expense of a growing middle class. But stark inequality is also corrosive to our democratic principles. While the top one percent has amassed a bigger share of wealth and income, too many families, in inner cities and rural counties, have been left behind—the laid-off factory worker; the waitress and health care worker who struggle to pay the bills—convinced that the game is fixed against them, that their government only serves the interests of the powerful—a recipe for more cynicism and polarization in our politics.

There are no quick fixes to this long-term trend. I agree that our trade should be fair and not just free. But the next wave of economic dislocation won’t come from overseas. It will come from the relentless pace of automation that makes many good, middle-class jobs obsolete.

And so we must forge a new social compact—to guarantee all our kids the education they need; to give workers the power to unionize for better wages; to update the social safety net to reflect the way we live now and make more reforms to the tax code so corporations and individuals who reap the most from the new economy don’t avoid their obligations to the country that’s made their success possible. We can argue about how to best achieve these goals. But we can’t be complacent about the goals themselves. For if we don’t create opportunity for all people, the disaffection and division that has stalled our progress will only sharpen in years to come.

There’s a second threat to our democracy—one as old as our nation itself. After my election, there was talk of a post-racial America. Such a vision, however well-intended, was never realistic. For race remains a potent and often divisive force in our society. I’ve lived long enough to know that race relations are better than they were ten, or twenty, or thirty years ago—you can see it not just in statistics, but in the attitudes of young Americans across the political spectrum.

But we’re not where we need to be. All of us have more work to do. After all, if every economic issue is framed as a struggle between a hardworking white middle class and undeserving minorities, then workers of all shades will be left fighting for scraps while the wealthy withdraw further into their private enclaves.

“If we decline to invest in the children of immigrants, just because they don’t look like us, we diminish the prospects of our own children—because those brown kids will represent a larger share of America’s workforce. And our economy doesn’t have to be a zero-sum game.”

Last year, incomes rose for all races, all age groups, for men and for women.”Going forward, we must uphold laws against discrimination—in hiring, in housing, in education and the criminal justice system. That’s what our Constitution and highest ideals require. But laws alone won’t be enough. Hearts must change. If our democracy is to work in this increasingly diverse nation, each one of us must try to heed the advice of one of the great characters in American fiction, Atticus Finch, who said “You never really understand a person until you consider things from his point of view.until you climb into his skin and walk around in it.

For blacks and other minorities, it means tying our own struggles for justice to the challenges that a lot of people in this country face—the refugee, the immigrant, the rural poor, the transgender American, and also the middle-aged white man who from the outside may seem like he’s got all the advantages, but who’s seen his world upended by economic, cultural, and technological change.

For white Americans, it means acknowledging that the effects of slavery and Jim Crow didn’t suddenly vanish in the ’60s; that when minority groups voice discontent, they’re not just engaging in reverse racism or practicing political correctness; that when they wage peaceful protest, they’re not demanding special treatment, but the equal treatment our Founders promised.

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