Democratic agenda will focus on US economic inequality

Significance

One of Obama's more direct and liberal speeches, it continued his drift towards a more expressive demonstration of a Democratic agenda -- although there were areas, such as trade, in which Obama disagreed with many in his party. It is unlikely that many of his specific policy goals will pass a Republican-held Congress, but he is attempting to shape the debates of the coming year to areas in which Democrats have an advantage, such as climate change, income inequality and infrastructure.

Impacts

• Transportation funding is likely to be approved, as Republicans acknowledge the depletion of the Highway Fund.
• Greater government resources will be directed towards cyber defence.
• Republicans will continue to weaken financial regulations, with help from some Democrats.