State Of The Union: Obama Tackles Inequality

Written By Unknown on Selasa, 28 Januari 2014 | 20.18

By Greg Milam, US Correspondent

Barack Obama is expected to use his State of the Union address to call for action to tackle growing income inequality in America.

The US President has described the issue as the "defining challenge of our generation" and is expected to outline a plan to close the wealth gap.

Analysts say the economic recovery has disproportionately benefited America's wealthy and is leaving the bulk of the population behind.

The city of San Francisco - and the tech engine room of Silicon Valley to its south - has become a symbol of the tension in America.

Protesters have targeted private buses run by companies like Google, Facebook and Apple that ferry well-paid tech commuters from traditionally working class neighbourhoods to Silicon Valley.

San Francisco Buses for Silicon Valley workers have become a target for protests

They say poor families are being evicted to make way for those who can pay higher rents.

Average rents in San Francisco and nearby Oakland and San Jose have increased by 10% in the last year and wages in the area are double the national average.

Activist Roberto Hernandez told Sky News: "They are making it impossible for regular people to stay in their homes.

"We are becoming the victims of other people earning so much."

State of the Union PROMO

Community groups say income inequality has created the phenomenon of the "working poor" - people who have jobs but cannot keep pace with the rocketing cost of living.

The food and clothing bank at the Sacred Heart Community Service in San Jose has seen visitor numbers double as those working poor look to make ends meet.

Ramona Lopez told Sky News the handouts were essential.  She said: "I have eight children. When they were all at home it was a struggle but we were making it.

"I only have three of them at home now and just trying to take care of the three that I have, with all the prices of everything having gone up, it is a struggle. It is a huge deal to get the help here."

Jay Pecot, Sacred Heart's director of development, said: "What we're seeing over and over again is the working poor coming here, just trying to feed their families.

San Francisco Smart townhouses in San Francisco are being snapped up by wealthy workers

"We are able to help them, save them a bit of money.  Even $150 (£90) can make a critical difference."

The issue of income inequality has become a nationwide talking point since protests grew among "the 99%" over the riches being accumulated by the "1%".

Former US labour secretary Robert Reich has become the national voice on the income inequality.

His film Inequality For All won a documentary award at the Sundance Film Festival.

San Francisco Ramona Lopez said she relies on food bank handouts to feed her family

He says 95% of the wealth generated in the economic recovery has gone to the top 1% of Americans.

He said: "The top 400 richest American have more wealth than the bottom 150 million Americans put together.

"There is a lot of blame going on and we are very close to a populist, anti-establishment movement in this country.

"But I fear it's not going to be very constructive because it is just a matter of blame."

But Mr Obama's attempts to address the issue have fallen short.

Critics say the imbalance has worsened on his watch and that now it is his responsibility to bring chance.

:: Watch the State of the Union live on television at 2am Wednesday (9pm Washington time Tuesday) on Sky channel 501, Virgin Media channel 602, Freeview channel 82 and Freesat channel 202.


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