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Full text of President Obama's farewell speech in Chicago (Part 1)

The following is the first part of the full text of the farewell speech delivered by U.S. President Barack Obama at McCormick Place in Chicago, Illinois, on Jan. 10, 2017.

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Hello, Chicago! It's good to be home! Thank you. Thank you, everybody. Thank you. Thank you. Thank you. Thank you so much. Thank you. Thank you. Thank you. It's good to be home. Thank you. Thank you. Thank you. Thank you. All right, everybody sit down. We're on live TV here. I've got to move. Come on. You can tell that I'm a lame duck because nobody is following instructions. Everybody have a seat.

My fellow Americans, Michelle and I have been so touched by all the well-wishes that we've received over the past few weeks. But tonight it's my turn to say thanks. Whether we have seen eye-to-eye or rarely agreed at all, my conversations with you, the American people -- in living rooms and in schools; at farms, on factory floors; at diners and on distant outposts -- those conversations are what have kept me honest, and kept me inspired, and kept me going. And every day, I learned from you. You made me a better President, and you made me a better man.

So I first came to Chicago when I was in my early 20s, and I was still trying to figure out who I was, still searching for a purpose in my life. And it was a neighborhood not far from here where I began working with church groups in the shadows of closed steel mills. It was on these streets where I witnessed the power of faith, and the quiet dignity of working people in the face of struggle and loss.

AUDIENCE: Four more years! Four more years! Four more years!

OBAMA: I can't do that.

AUDIENCE: Four more years! Four more years! Four more years! Four more years!

OBAMA: Now this is where I learned that change only happens when ordinary people get involved and they get engaged, and they come together to demand it.

After eight years as your President, I still believe that. And it's not just my belief. It's the beating heart of our American idea - our bold experiment in self-government.

It's the conviction that we are all created equal, endowed by our Creator with certain unalienable rights, among them life, liberty, and the pursuit of happiness.

It's the insistence that these rights, while self-evident, have never been self-executing; that We, the People, through the instrument of our democracy, can form a more perfect union. What a radical idea.

The great gift that our Founders gave to us. The freedom to chase our individual dreams through our sweat and toil, and imagination -- and the imperative to strive together as well, to achieve a common good, a greater good.

For 240 years, our nation's call to citizenship has given work and purpose to each new generation. It's what led patriots to choose republic over tyranny, pioneers to trek west, slaves to brave that makeshift railroad to freedom. It's what pulled immigrants and refugees across oceans and the Rio Grande. It's what pushed women to reach for the ballot. It's what powered workers to organize. It's why GIs gave their lives at Omaha Beach and Iwo Jima; Iraq and Afghanistan -- and why men and women from Selma to Stonewall were prepared to give theirs as well.

So that's what we mean when we say America is exceptional. Not that our nation has been flawless from the start, but that we have shown the capacity to change, and make life better for those who follow.

Yes, our progress has been uneven. The work of democracy has always been hard. It's always been contentious. Sometimes it's been bloody. For every two steps forward, it often feels we take one step back. But the long sweep of America has been defined by forward motion, a constant widening of our founding creed to embrace all and not just some.

If I had told you eight years ago that America would reverse a great recession, reboot our auto industry, and unleash the longest stretch of job creation in our history, if I had told you that we would open up a new chapter with the Cuban people, shut down Iran's nuclear weapons program without firing a shot, take out the mastermind of 9/11, if I had told you that we would win marriage equality, and secure the right to health insurance for another 20 million of our fellow citizens -- if I had told you all that, you might have said our sights were set a little too high.

But that's what we did. That's what you did. You were the change. You answered people's hopes, and because of you, by almost every measure, America is a better, stronger place than it was when we started.

In 10 days, the world will witness a hallmark of our democracy.

AUDIENCE: Nooo --

OBAMA: No, no, no, no, no -- the peaceful transfer of power from one freely elected President to the next. I committed to President-elect Trump that my administration would ensure the smoothest possible transition, just as President Bush did for me. Because it's up to all of us to make sure our government can help us meet the many challenges we still face.

We have what we need to do so. We have everything we need to meet those challenges. After all, we remain the wealthiest, most powerful, and most respected nation on Earth. Our youth, our drive, our diversity and openness, our boundless capacity for risk and reinvention means that the future should be ours. But that potential will only be realized if our democracy works, only if our politics better reflects the decency of our people, only if all of us, regardless of party affiliation or particular interests, 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 argued. They quarreled. Eventually they compromised. They 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're all in this together; that we rise or fall as one.

There have been moments throughout our history that threatened that solidarity. And 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 our prosperity, but are testing 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.

To begin with, our democracy won't work without a sense that everyone has economic opportunity. And the good news is that today the economy is growing again. Wages, incomes, home values, and retirement accounts are all 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 10-year low. The uninsured rate has never, ever been lower. Health care costs are rising at the slowest rate in 50 years. And I've said and I mean it -- if anyone can put together a plan that is demonstrably better than the improvements we've made to our health care system and that covers as many people at less cost, I will publicly support it.

Because that, after all, is why we serve. Not to score points or take credit, but to make people's lives better.

But, for all the real progress that 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 and ladders for folks who want to get into the middle class. That's the economic argument. But stark inequality is also corrosive to our democratic ideal. While the top one percent has amassed a bigger share of wealth and income, too many of our families, in inner cities and in rural counties, have been left behind -- the laid-off factory worker, the waitress or health care worker who's just barely getting by and struggling to pay the bills -- convinced that the game is fixed against them, that their government only serves the interests of the powerful -- that's a recipe for more cynicism and polarization in our politics.

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

And so we're going to have to 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 this new economy don't avoid their obligations to the country that's made their very 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 -- and this one is as old as our nation itself. After my election, there was talk of a post-racial America. And such a vision, however well-intended, was never realistic. Race remains a potent and often divisive force in our society. Now, I've lived long enough to know that race relations are better than they were 10, or 20, or 30 years ago, no matter what some folks say. You can see it not just in statistics, you see it in the attitudes of young Americans across the political spectrum.

But we're not where we need to be. And all of us have more work to do. If every economic issue is framed as a struggle between a hardworking white middle class and an undeserving minority, then workers of all shades are going to be left fighting for scraps while the wealthy withdraw further into their private enclaves. If we're unwilling to invest in the children of immigrants, just because they don't look like us, we will diminish the prospects of our own children -- because those brown kids will represent a larger and larger share of America's workforce. And we have shown that 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.

So if we're going to be serious about race going forward, we need to uphold laws against discrimination -- in hiring, and in housing, and in education, and in the criminal justice system. That is what our Constitution and our highest ideals require.

But laws alone won't be enough. Hearts must change. It won't change overnight. Social attitudes oftentimes take generations to change. But if our democracy is to work the way it should in this increasingly diverse nation, then each one of us need to try to heed the advice of a great character 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 minority groups, that means tying our own very real struggles for justice to the challenges that a lot of people in this country face -- not only the refugee, or the immigrant, or the rural poor, or the transgender American, but also the middle-aged white guy who, from the outside, may seem like he's got advantages, but has seen his world upended by economic and cultural and technological change. We have to pay attention, and listen.

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. When they wage peaceful protest, they're not demanding special treatment but the equal treatment that our Founders promised.

For native-born Americans, it means reminding ourselves that the stereotypes about immigrants today were said, almost word for word, about the Irish, and Italians, and Poles -- who it was said were going to destroy the fundamental character of America. And as it turned out, America wasn't weakened by the presence of these newcomers; these newcomers embraced this nation's creed, and this nation was strengthened.

So, regardless of the station that we occupy, we all have to try harder. We all have to start with the premise that each of our fellow citizens loves this country just as much as we do; that they value hard work and family just like we do; that their children are just as curious and hopeful and worthy of love as our own.

And that's not easy to do. For too many of us, it's become safer to retreat into our own bubbles, whether in our neighborhoods or on college campuses, or places of worship, or especially our social media feeds, surrounded by people who look like us and share the same political outlook and never challenge our assumptions. The rise of naked partisanship, and increasing economic and regional stratification, the splintering of our media into a channel for every taste -- all this makes this great sorting seem natural, even inevitable. And increasingly, we become so secure in our bubbles that we start accepting only information, whether it's true or not, that fits our opinions, instead of basing our opinions on the evidence that is out there.

And this trend represents a third threat to our democracy. But politics is a battle of ideas. That's how our democracy was designed. In the course of a healthy debate, we prioritize different goals, and the different means of reaching them. But without some common baseline of facts, without a willingness to admit new information, and concede that your opponent might be making a fair point, and that science and reason matter, then we're going to keep talking past each other, and we'll make common ground and compromise impossible.

And isn't that part of what so often makes politics dispiriting? How can elected officials rage about deficits when we propose to spend money on preschool for kids, but not when we're cutting taxes for corporations? How do we excuse ethical lapses in our own party, but pounce when the other party does the same thing? It's not just dishonest, this selective sorting of the facts; it's self-defeating. Because, as my mom used to tell me, reality has a way of catching up with you.

Take the challenge of climate change. In just eight years, we've halved our dependence on foreign oil; we've doubled our renewable energy; we've led the world to an agreement that has the promise to save this planet. But without bolder action, our children won't have time to debate the existence of climate change. They'll be busy dealing with its effects -- more environmental disasters, more economic disruptions, waves of climate refugees seeking sanctuary.

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