We rise or fall as one': Obama warns of democratic test in farewell speech

Chicago: President Barack Obama warned Tuesday that the United States faces a stern test of its democracy, in a speech to the nation that was both a fond goodbye and a call to arms.

Capping his eight years in office, Obama returned to his adoptive hometown of Chicago to recast his "yes we can" campaign credo as "yes we did."

He also called on supporters to pick up the torch and forge a new "social compact".

Read: An emotional Obama thanks wife, daughters for sacrifice in farewell speech

"Democracy does require a basic sense of solidarity," he said. "For all our outward differences, we are all in this together," he said. "We rise or fall as one."

He thanked thousands of supporters and reaffirmed his belief in the power of change.

Obama was harkening back to the message of his first campaign for president in 2008. At one point, he was interrupted by chants of "Four more years!" Obama says, "I can't do that."

In the aftermath of Republican Donald Trump's election as the next president, Obama is acknowledged that the nation's progress has been "uneven." He says that for "every two steps forward, it often feels we take one step back."

But the president says the country strives for "forward motion, a constant widening of our founding creed to embrace all, and not just some."

He said that in 10 days the world will witness the peaceful transfer of power to a new president, drawing some jeers ahead of Donald Trump's presidency.

Obama said he committed to Trump that his administration would "ensure the smoothest possible transition" just as his predecessor, President George W. Bush, did for him.

The outgoing president says in Chicago "it's up to all of us to make sure our government can help us meet the many challenges we still face."

Obama acknowledged that "stark inequality" is corrosive to the nation's democratic principles, a nod to the economic uncertainty that helped Republican Donald Trump win the White House last November.

Obama says in his final speech as president that too many families in inner cities and rural counties have been left behind. He says many are convinced that the "game is fixed against them" and government only serves powerful interests.

The president calls that a "recipe for more cynicism and polarization in our politics."