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In his speech, Obama described the possibilities offered by what he called a "blueprint for an American economy that's built to last."

"Think about the America within our reach: A country that leads the world in educating its people," Obama said. "An America that attracts a new generation of high-tech manufacturing and high-paying jobs. A future where we're in control of our own energy, and our security and prosperity aren't so tied to unstable parts of the world. An economy built to last, where hard work pays off, and responsibility is rewarded."

At the same time, he repeated his readiness to work with Republicans to build on economic recovery that has started but still struggles to take off.

"But I intend to fight obstruction with action, and I will oppose any effort to return to the very same policies that brought on this economic crisis in the first place," Obama said.

"Let's never forget: Millions of Americans who work hard and play by the rules every day deserve a government and a financial system that does the same," he continued. "It's time to apply the same rules from top to bottom: No bailouts, no handouts, and no cop-outs. An America built to last insists on responsibility from everybody."

Read the GOP's response

In the official GOP response, conservative Indiana Gov. Mitch Daniels said that "it's not fair and it's not true for the president to attack Republicans in Congress as obstacles."

"No feature of the Obama presidency has been sadder than its constant efforts to divide us, to curry favor with some Americans by castigating others," Daniels said. "As in previous moments of national danger, we Americans are all in the same boat. If we drift, quarreling and paralyzed, over a Niagara of debt, we will all suffer, regardless of income, race, gender, or other category. If we fail to shift to a pro-jobs, pro-growth economic policy, there will never be enough public revenue to pay for our safety net, national security, or whatever size government we decide to have."

In particular, Daniels called for "a dramatically simpler tax system of fewer loopholes and lower rates" and "a pause in the mindless piling on of expensive new regulations that devour dollars that otherwise could be used to hire somebody."

Former House Speaker Newt Gingrich, who is surging in Republican presidential polls after his primary victory Saturday in South Carolina, said at a campaign event in Sarasota, Florida, that if elected president, his first acts would be to sign executive orders undoing policies of the Obama administration.

"Our goal is, in the executive orders that we sign on the first day, that by the time President Obama lands in Chicago, we will have dismantled about 40% of his administration," Gingrich said to cheers.

Obama heads to Iowa, Arizona and Nevada on Wednesday to kick off a three-day tour of five states considered key for the November election. He will speak during the day at manufacturing plant in Iowa and an Intel campus in Arizona.

In his speech Tuesday night, Obama proposed now familiar steps as well as some new ones. The list included:

A tax code in which the Bush tax cuts expire and the wealthy pay more;

More refinancing for homeowners in trouble;

More clean energy incentives;

Enhanced education and job training initiatives, and,

The creation of a China task force to monitor trade violations.

Obama and Democrats want to avoid the November election being a referendum on the president and his stewardship of the economy.

Instead, they seek a contrast campaign between a GOP they hope to define as allied with wealthy interests that brought near financial collapse in 2008 versus a president who will fight for working Americans.

Obama's address drew on themes from the Kansas speech he delivered in early December that focused on restoring equal opportunity for all, rather than an economy where the wealthy and reckless such as irresponsible Wall Street investors get ahead.

Democratic sources acknowledge that to succeed in November, Obama has to make the case that his policies have begun to make a difference, with the economy showing signs of improvement.

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