That, after all, is why we serve – to make people’s lives better, not worse.

­　　But for all the real progress 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. But stark inequality is also corrosive to our democratic principles. While the top 1% has amassed a bigger share of wealth and income, too many families, in inner cities and rural counties, have been left behind – the laid-off factory worker; the waitress and healthcare worker who struggle to pay the bills – convinced that the game is fixed against them, that their government only serves the interests of the powerful – a recipe for more cynicism and polarization in our politics.

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

­　　And so we must 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 the new economy don’t avoid their obligations to the country that’s made their 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 – one as old as our nation itself. After my election, there was talk of a post-racial America. Such a vision, however well-intended, was never realistic. For race remains a potent and often divisive force in our society. I’ve lived long enough to know that race relations are better than they were 10, or 20, or 30 years ago – you can see it not just in statistics, but in the attitudes of young Americans across the political spectrum.

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