But in a shot at the Republican members, he said that deficit reduction alone is not a plan. He then laid out proposals that include increasing the federal minimum wage, spending more to fix the nation's roads and bridges and preschool education for all American children.
"Let's declare that in the wealthiest nation on Earth, no one who works full-time should have to live in poverty, and raise the federal minimum wage to $9.00 an hour," he said.
Florida Senator Marco Rubio's Republican response echoed the President in saying that the middle class is the driver of the economy. However, he says government is not the solution to America's economic problems. Rubio said the government needs to cut spending in order to reign in America's debt.
"President Obama has created more debt in four years than his predecessor did in eight. The real cause of our debt is that our government has been spending one trillion dollars more than it takes in every year," he said.
Rubio is considered an early front-runner for the GOP presidential nomination in 2016.