Obama readies economic blueprint for his Tuesday State of the Union address

WASHINGTON (AP) - Vilified by the Republicans who want his job, President Barack Obama will stand before the nation Tuesday night determined to frame the election-year debate on his terms, using his State of the Union address to outline a lasting economic recovery that will "work for everyone, not just a wealthy few."

As his most powerful chance to make a case for a second term, the prime-time speech carries enormous political stakes for the Democratic incumbent who presides over a country divided about his performance and pessimistic about the nation's direction. He will try to offer a stark contrast with his opponents by offering a vision of fairness and opportunity for everyone.

In a preview Saturday, Obama said in a video to supporters that the speech will be an economic blueprint built around manufacturing, energy, education and American values.

He is expected to announce ideas to make college more affordable and to address the housing crisis still hampering the economy three years into his term, people familiar with the speech said. Obama will also propose fresh ideas to ensure that the wealthy pay more in taxes, reiterating what he considers a matter of basic fairness, the officials said.

His policy proposals will be less important than what Obama hopes they all add up to: a narrative of renewed American security with him at the center, leading the fight.

"We can go in two directions," Obama said in the campaign video. "One is toward less opportunity and less fairness. Or we can fight for where I think we need to go: building an economy that works for everyone, not just a wealthy few."

That line of argument is intended to tap directly into concerns of voters who think America has become a nation of income inequality, with rules rigged to help the rich. The degree to which Obama or his eventual Republican opponent can better connect with millions of hurting Americans is expected to determine November's presidential election.

Obama released his video hours ahead of the South Carolina primary, where Republican candidates fought in the latest fierce contest to become his general election rival.

The White House knows Obama is about to get his own stage to outline a re-election vision, but carefully. The speech is supposed to an American moment, not a campaign event.

Obama didn't mention national security or foreign policy in his preview, and he is not expected to break ground on either one in his speech.

He will focus on the economy and is expected to promote unfinished parts of his jobs plan, including the extension of a payroll tax cut that is soon to expire.

Whatever Obama proposes is likely to face long odds in a deeply divided Congress.

More people than not disapprove of Obama's handling of the economy, and he is showing real vulnerability among the independent voters who could swing the election. Yet he will step into the moment just as the economy is showing life. The unemployment rate is still at a troubling 8.5 percent, but at its lowest rate in nearly three years. Consumer confidence is up.

By giving a sneak peek to millions of supporters on his email list, Obama played to his Democratic base and sought to generate an even larger audience for Tuesday's address. He is unlikely to getter a bigger stage all year.

More people watched last year's State of the Union than tuned in to see Obama accept the Democratic presidential nomination in Denver in 2008.

The foundation of Obama's speech is the one he gave in Kansas last month, when he declared that the middle class was at a make-or-break moment and he railed against "you're on your own" economics of the Republican Party. His theme then was about a government that ensures people get a fair shot to succeed.