Obama: I do not quit

Insisting he is no quitter after a punishing first year in office, President Barack Obama defiantly refused to concede his change agenda and made American jobs his top priority in 2010.

In his debut State of the Union address late Wednesday, Obama delivered a candid assessment of how he saw his achievements -- heading off a second Great Depression -- and his failings -- allowing his ambitious reform program to slow to a crawl.

"We do not quit. I do not quit, let's start anew," he said, seeking to rally Americans to his leadership on multiple crises at home and abroad, but chiefly the lingering economic blight and 10 percent unemployment.

In an address punctuated by standing ovations and some jeers from Republicans, Obama reeled off a volley of plans in a 68-minute speech that took aim at the economic pain still felt by many Americans.

Soldiering on

He sought to revive America's belief in his crusade for change despite a year in which his approval ratings tumbled from stratospheric heights to less than 50 percent, and support for top initiatives like health care reform faded.

"I campaigned on the promise of change -- change we can believe in, the slogan went," Obama said, recalling the days before his barnstorming 2008 campaign promises faced a brick wall of opposition in government.

"Right now, I know there are many Americans who aren't sure if they still believe we can change -- or at least that I can deliver it," he said, and bluntly stated "change has not come fast enough."

Hope for the future

But he added, "I have never been more hopeful about America's future than I am tonight. Despite our hardships, our union is strong. We do not give up. We do not quit, we donGÇÖt allow fear or division to break our spirit."

In a Republican rebuttal, Virginia Governor Bob McDonnell hit out at0 mounting deficits under Obama and dismissed his promise of a three year freeze on discretionary spending as only a "small step" in the right direction.

"The amount of this debt is on pace to double in five years, and triple in ten. The federal debt is already over 100,000 dollars per household. This is simply unsustainable," McDonnell said.

Healthcare still high on the agenda

But Obama defiantly vowed that he would not "walk away" from his stalled effort to pass comprehensive health care reform and said his administration's early actions last year had staved off a repeat of the 1930s Great Depression.

He demanded Congress pass a jobs bill and send it to his desk "without delay," and warned that if lawmakers did not maintain the strength of his bid to crackdown on Wall Street he would veto their efforts.

"Jobs must be our number one focus in 2010," Obama said, and promised to redirect 30 billion dollars from a Wall Street bailout fund to help small businesses get credit and create new positions.

He also said the US government must double US exports in five years to support two million more jobs, and to boost commerce with South Korea, Panama and Colombia, but stopped short of urging Congress to pass trade pacts.

Iran in his sights

Obama turned towards foreign policy only towards the end of an address dominated by economic challenges, almost as an afterthought, warning Iran would face "growing consequences" if it did not halt its nuclear program.

He said in the speech in the House of Representatives, watched by millions on television and around the world, that North Korea was growing ever more isolated as a result of its pursuit of nuclear arms.

Obama called for support for US forces manning his surge in Afghanistan, and said US combat troops would be home as scheduled from Iraq by the end of August.

In another bid to recapture the heady spirit of change which swept him to power, Obama said he would work with Congress to repeal the "don't ask, don't tell" law banning gays from serving openly in the US military.

The president reached into history, seeking hope for future unity, and of overcoming the "numbing weight" of gridlocked Washington politics.

"America prevailed because we chose to move forward as one nation, as one people. Again, we are tested. And again, we must answer history's call."

Obama also hit out at the corrosive influence of lobbyists in Washington, and sharply condemned a Supreme Court decision lifting curbs on corporations openly backing candidates in elections.

"I donGÇÖt think American elections should be bankrolled by AmericaGÇÖs most powerful interests, and worse, by foreign entities."

Obama's agenda took a huge hit when Republicans seized a Senate seat in liberal Massachusetts last week, and the president is under intense pressure to show leadership and to restore his authority.

He had strong words for the Republicans, but was conscious that given the bitter, political climate in the run-up to mid-term congressional polls in November they were likely falling on deaf ears.

"Neither party should delay or obstruct every single bill just because they can," he said.

"Just saying no to everything may be good short-term politics, but it's not leadership. We were sent here to serve our citizens, not our ambitions."