English subtitles for clip: File:12-16-14- White House Press Briefing.webm

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Mr. Earnest:
Good morning, everybody.

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Thank you for joining
us for a slightly early

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White House briefing.

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I hope that you've all
been able to stay dry

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in the midst of the
wet weather outside.

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As you can see, joining
me is the President's

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top economist,
Jason Furman.

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As you know, on nearly
every economic measure,

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our economy is stronger
today than it was the day

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that President
Obama took office.

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Even when it wasn't
popular, the President

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took steps, like rescuing
the auto industry,

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instituting strict new
rules for Wall Street,

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and passing the Recovery
Act to lay the foundation

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for a more
durable economy.

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Now, 2014 was a milestone
for economic progress

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in the United States, but
there's much more work to do.

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This year, America's
businesses added jobs

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at the fastest rate
since the 1990s.

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The most interesting
statistic I've seen

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on this is that we've now
had 10 consecutive months

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of more than 200,000 job
created in the private sector

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in each of
those months.

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That is the longest streak
in nearly 20 years.

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And while many of
these good, full-time,

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middle-class jobs and
wages have begun to rise,

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it's still too hard
for many middle-class

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families to get ahead.

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And while gas prices have
fallen as we've produced

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more oil, and the growth
of health care costs

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has slowed as the Affordable
Care Act has been

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implemented, it's still
too hard for many

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middle-class families
to make ends meet.

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So our task now that we've
recovered from the worst

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economic downturn since
the Great Depression

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is to build on the momentum
of the last six years

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so the economy grows, jobs
grow, and wages grow.

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Our work will not be done
until the middle class

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is thriving and anyone
who works hard and plays

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by the rules has
a fair shot.

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So, with that, let me turn
it over to Dr. Furman

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to give us sort of a little
overview, and then he'll

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stick around and
take a few questions.

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So, Jason.

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Mr. Furman:
Great.

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Thank you so much.

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The U.S. economic recovery took
a major step forward in 2014.

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This is the year in which
we broke the record for

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the longest streak of
private sector job growth,

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now 57 consecutive
months and counting.

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As you see in the first
slide here, the pace

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of job growth has picked up
every single year in the

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economic recovery, going
from 194,000 jobs per

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month in 2013 to a pace
that is currently 241,000

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jobs per month on
average for this year.

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As a result, in just 11
months of the year, we've

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exceeded any full calendar
year of job growth since 1999.

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That's also true on a
percentage increase basis.

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This job growth brought
the unemployment

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rate down below
6 percent.

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The decline in the
unemployment rate

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was nearly the
largest in 30 years.

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And if you step back,
it's really remarkable --

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as recently as 2013, if you
asked economists, how long

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would it take to get the
unemployment rate below

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6 percent, they would have
told you not until 2017.

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It happened three
years ahead of what

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was broadly expected.

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Moreover, it's important
to understand that this

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improving economy is
true if you look at some

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of the underlying numbers
in the labor markets

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and what labor markets are
actually doing for workers.

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The participation
rate has stabilized

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over the past year.

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The broader measures
of unemployment and

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underemployment have
fallen by even more than

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the unemployment rate.

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A disproportionate
fraction of the fall

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in the unemployment rate
is long-term unemployment.

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As we see in the next
slide, the job creation

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has entirely been
full-time jobs over

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the course of
the recovery.

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There are still more
people working part-time;

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we'd like to see
that coming down.

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But the recovery has been
moving that very strongly

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in the right direction.

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You see it in the quality
of jobs, which you see

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in the next slide here.

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Some of the biggest pickup
in job growth has been

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in areas like manufacturing,
construction, information

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technology, which are
among the higher-wage

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sectors in the economy.

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In fact, there's only
three industries that saw

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slower job growth in 2014
than they saw in the

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previous year -- they
still saw job growth,

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but slower job growth --
and those also happen

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to be the three industries
with the lowest average wages,

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including the temp
industry is one of the few

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that slowed down in 2014.

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That, of course, would be,
in that case, good news.

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This improvement in
the quality of jobs

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translates, as we see
in the next slide, into

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an increase in
real wages.

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We're about to have second
year in a row in which

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wages have increased
faster than inflation.

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And in fact, the pace of
wage growth over the past

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two years exceeds the pace
of wage growth that we had

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seen in the
previous recovery.

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We'd still like to
see more wage growth.

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There's still a lot
to overcome in terms

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of decades of stagnation in
wages, and there's a lot

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of ideas we have for
that, but it's important

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to understand it
is translating.

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Part of why all this is
happening -- shown in the

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next slide -- in 2014,
for the first time,

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the United States is now
exceeding both Saudi Arabia

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and Russia in
oil production.

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Earlier, we came
to exceed both

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of them in natural
gas production.

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That combination of an
increase in production --

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a total of 3.5 million
barrels per day,

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the equivalent to
discovering a new Iraq here

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in the United States --
has combined with the fact

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that we're
using less oil.

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We're using 1.8 million
barrels per day less.

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That's the equivalent of
no longer needing the oil

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from an Angola or a
Norway -- has contributed

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to the fact that global oil
prices have fallen more

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than 40 percent, something
that's also helping

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the U.S. economic
recovery.

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That trend has been very
widely noted in energy.

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Less noted -- as shown
in the next slide --

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is what's going on in health
care, which is, thanks

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to the Affordable Care Act --
which, based on new data

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that came out just last
night, has covered

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10 million people with
insurance who didn't

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previously have it --
at the same time, the

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Affordable Care Act has
contributed to a trend

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of slowing health
cost growth.

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Ten, 15 years ago, you saw
double-digit premium growth.

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You saw businesses warning
about the threat that

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health costs had to
America's competitiveness,

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to our economy.

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Now you're seeing the
slowest health cost growth

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in 50 years, premium
growth dramatically

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slowing from what
it was before.

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Finally, I just wanted
to put all of this

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in a little bit of
international context.

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The next slide shows you
GDP growth around the

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world -- around
advanced economies.

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And you see the United
States' recovery is far

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exceeding and
outpacing that of our

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advanced economy peers.

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And the slide after that
gives you another context

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-- something you've heard
the President say -- that

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more than half of the
jobs added by advanced

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economies have been in the
United States despite the

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fact that we have
less than one-third

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of the population.

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The last slide -- I just
wanted to briefly say this

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isn't an accident.

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Countries around
the world were hit

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by a similar
set of shocks.

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In some ways the United
States' financial system

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was worse hit and
worse affected in 2008

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than many other
economies.

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But we had a very robust
fiscal response --

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not just the Recovery Act,
but the subsequent fiscal

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measures like the
payroll tax cut.

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We had a very robust
response to the

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financial crisis, including what
we did -- autos and housing.

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The Affordable Care Act is
contributing to that trend

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of slower health
growth I talked about.

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The all-of-the-above
energy strategy

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contributing both to
greater production but

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also less use, both of
which are helping us.

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Catalyzing technological
innovation with patent

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reform, spectrum,
significant investments.

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And finally, doing all
of this with nearly

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$4 trillion of deficit
reduction from the Budget

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Control Act, the
Affordable Care Act,

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and the tax deal, which,
together with a stronger

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economy and slowing health
cost growth, has brought

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the deficit down by
about two-thirds.

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Obviously, we're not
trying to rest here.

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There's a lot we need to
do, both domestically

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in terms of wages,
internationally, working

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with our partners to
strengthen their economies.

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And that's why the
President is focused

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on everything from investing
in infrastructure,

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reforming the business
tax code, immigration,

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expanding overseas
markets for our goods,

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and investing in education
here in the United States.

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Mr. Earnest:
We'll take some questions now.

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Major, you want
to go first?

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The Press: Jason,
a couple of things.

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The Center for American
Progress noted in a recent

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study that the average
family of four earns

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$10,000 less than it did
-- or the cost of living

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has gone up $10,000
from 2000 to 2012.

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The New York Times noted
that the average family

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earns less now than
it did 15 years ago.

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I know you noted some
nominal improvements

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in wages, but this is the
biggest lagging indicator

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in the economic
recovery, is it not?

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That wages simply have not
grown at anywhere near the

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rate needed to compensate
for what was lost during

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the Great Recession.

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When is that
going to change?

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And why hasn't it
changed already?

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Mr. Furman:
So let me just take

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a step back, which is
we've had a challenge

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in this regard
for decades.

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That challenge became
particularly acute

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from 2001 to 2007, when
we saw reasonably strong

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economic growth, but
median incomes actually

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fell over the course
of that expansion.

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So that was the first
economic expansion in which

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it didn't translate into
rising incomes for households.

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Then at the end of that
expansion, you had this

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terrible recession, the
worst since World War II,

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and so you had this blow
to incomes when the

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economy was growing.

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That blow got even worse
when the recession hit.

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There's no question that
we're not all the way

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there in digging out of
that combination of the

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longstanding trend and
the deep recession.

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As I showed you, though,
we have now had two

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straight years of wage growth
that exceeds inflation.

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The numbers I was
showing you were above

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and beyond inflation.

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So wages are
growing at about

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I think 2.5
percent a year.

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Inflation is a little
bit less than 2 percent

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a year, so those gains
are outpacing it.

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Family incomes also
depend on people working,

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not just that they have
wages, and so those job gains

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will see help as well.

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So the last census numbers
on income we have were for

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2013 -- we haven't
gotten the 2014 numbers,

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and I expect those to
be considerably better.

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Unfortunately, we won't
get them until next

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August or September.

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The Press:
How concerned are you

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00:11:24,750 --> 00:11:26,986
that the currency
declines that Russia

246
00:11:26,986 --> 00:11:29,989
is experiencing could
eventually spill over into

247
00:11:29,989 --> 00:11:32,625
the U.S. economy and begin
to affect some of the

248
00:11:32,625 --> 00:11:34,727
gains that you
just talked about?

249
00:11:34,727 --> 00:11:36,228
Mr. Furman:
If I was chairman

250
00:11:36,228 --> 00:11:37,829
of President Putin's
council of economic

251
00:11:37,830 --> 00:11:40,933
advisers, I would be
extremely concerned.

252
00:11:40,933 --> 00:11:43,335
They're between a
rock and a hard place

253
00:11:43,335 --> 00:11:45,404
in economic policy.

254
00:11:45,404 --> 00:11:49,575
The combination of our
sanctions, the uncertainty

255
00:11:49,575 --> 00:11:52,611
they've created for
themselves with their

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00:11:52,611 --> 00:11:55,714
international actions, and
the falling price of oil

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00:11:55,714 --> 00:12:00,519
has put their economy
on the brink of crisis.

258
00:12:00,519 --> 00:12:03,055
That gives you
only bad choices.

259
00:12:03,055 --> 00:12:05,424
You can raise interest
rates to defend your

260
00:12:05,424 --> 00:12:08,661
currency as they've done,
and that will contract

261
00:12:08,661 --> 00:12:11,162
and hurt your domestic
economy, which will

262
00:12:11,163 --> 00:12:13,365
further undermine
confidence, or you can

263
00:12:13,365 --> 00:12:15,868
not do that and allow
more of a collapse.

264
00:12:15,868 --> 00:12:19,772
So I think they are facing
a very serious economic

265
00:12:19,772 --> 00:12:23,142
situation, and it's a
serious economic situation

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00:12:23,142 --> 00:12:25,811
that is largely of their
own making and largely

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00:12:25,811 --> 00:12:30,382
reflects the consequences
of not following a set

268
00:12:30,382 --> 00:12:32,517
of international rules.

269
00:12:32,518 --> 00:12:35,421
In terms of the U.S.
economy, we have enormous

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00:12:35,421 --> 00:12:38,824
domestic strengths in terms
of our consumers, their

271
00:12:38,824 --> 00:12:41,894
confidence, their increased
spending, in terms

272
00:12:41,894 --> 00:12:44,930
of our businesses
investing.

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00:12:44,930 --> 00:12:47,031
Only one-tenth
of 1 percent

274
00:12:47,032 --> 00:12:51,770
of U.S. GDP is
exports to Russia.

275
00:12:51,770 --> 00:12:57,409
And I think ultimately a
world in which nations

276
00:12:57,409 --> 00:12:59,879
around the world are
abiding by rules

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00:12:59,879 --> 00:13:03,649
is one that is in our
economic interest as well.

278
00:13:03,649 --> 00:13:07,853
So I think bringing about
a return to that will

279
00:13:07,853 --> 00:13:11,089
ultimately be good
for the U.S. economy.

280
00:13:11,090 --> 00:13:12,224
Mr. Earnest:
Roberta.

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00:13:12,224 --> 00:13:14,293
The Press:
Following on Darlene's

282
00:13:14,293 --> 00:13:16,295
question, you say
that the U.S. has

283
00:13:16,295 --> 00:13:20,165
sort of limited exposure
to Russia's economy.

284
00:13:20,166 --> 00:13:23,736
But what about the
potential for the crisis

285
00:13:23,736 --> 00:13:26,005
there affecting other
partners that the

286
00:13:26,005 --> 00:13:29,508
U.S. has to deal with,
and sort of affecting

287
00:13:29,508 --> 00:13:33,112
the global economy
at large?

288
00:13:33,112 --> 00:13:36,147
Mr. Furman: Even if
nothing was going on in

289
00:13:36,148 --> 00:13:38,617
Russia, there are a number
of challenges that a

290
00:13:38,617 --> 00:13:41,086
number of our trading
partners are facing --

291
00:13:41,086 --> 00:13:43,389
and that's something I
showed you a little bit

292
00:13:43,389 --> 00:13:45,791
in some of those
slides with GDP.

293
00:13:45,791 --> 00:13:49,428
So the Japanese economy
has contracted

294
00:13:49,428 --> 00:13:52,264
in three out of the
last four quarters.

295
00:13:52,264 --> 00:13:55,401
That has little, if
anything, to do with

296
00:13:55,401 --> 00:13:57,402
the Russian economy,
but that does act

297
00:13:57,403 --> 00:13:59,605
as a headwind to the
U.S. and the trading

298
00:13:59,605 --> 00:14:01,840
relationship we have.

299
00:14:01,840 --> 00:14:08,347
Growth in Europe has
slowed nearly to a halt,

300
00:14:08,347 --> 00:14:12,050
and the IMF has put the
odds of another recession

301
00:14:12,051 --> 00:14:14,386
at 40 percent for Europe.

302
00:14:14,386 --> 00:14:18,324
Again, their analysis and
a lot of other analysis,

303
00:14:18,324 --> 00:14:20,325
that's not primarily
because of Russia;

304
00:14:20,326 --> 00:14:22,595
that's because of
weak domestic demand

305
00:14:22,595 --> 00:14:27,266
in the eurozone and the need
for both some combination

306
00:14:27,266 --> 00:14:31,971
of fiscal and monetary policy
to address that weak demand.

307
00:14:31,971 --> 00:14:34,540
A number of emerging
markets have also slowed

308
00:14:34,540 --> 00:14:37,575
-- places like China that
are much bigger trading

309
00:14:37,576 --> 00:14:39,812
partners for the United
States and much more

310
00:14:39,812 --> 00:14:42,715
important in the global
economy than Russia is.

311
00:14:42,715 --> 00:14:44,817
So I certainly think
the U.S. economy

312
00:14:44,817 --> 00:14:47,753
does face a challenge
and a headwind

313
00:14:47,753 --> 00:14:50,856
from slowdowns around the
world; I just wouldn't

314
00:14:50,856 --> 00:14:52,825
locate that
primarily in Russia.

315
00:14:52,825 --> 00:14:54,827
And the answer to that is
to continue to strengthen

316
00:14:54,827 --> 00:14:56,829
ourselves domestically
while engaging,

317
00:14:56,829 --> 00:14:58,830
as you saw the President
do at the G20,

318
00:14:58,831 --> 00:15:01,934
to help our partners
strengthen their economies.

319
00:15:01,934 --> 00:15:03,302
Mr. Earnest:
Jon.

320
00:15:03,302 --> 00:15:04,370
The Press:
I see you've outlined

321
00:15:04,370 --> 00:15:06,538
some impressive statistics
and record-breaking

322
00:15:06,538 --> 00:15:09,241
private sector job growth.

323
00:15:09,241 --> 00:15:13,512
Why is it that most
people don't seem

324
00:15:13,512 --> 00:15:15,046
to be feeling it?

325
00:15:15,047 --> 00:15:17,583
You see pessimism
reflected in the polling.

326
00:15:17,583 --> 00:15:19,985
People are pessimistic
not only about their own

327
00:15:19,985 --> 00:15:22,354
economic prospects but
the prospects for their

328
00:15:22,354 --> 00:15:24,623
children, consumer
sentiment.

329
00:15:24,623 --> 00:15:26,759
Why is that not
breaking through?

330
00:15:26,759 --> 00:15:28,827
And what you do you
think it will take

331
00:15:28,827 --> 00:15:30,396
to make that
breakthrough?

332
00:15:30,396 --> 00:15:31,630
Mr. Furman:
Well, I was hoping

333
00:15:31,630 --> 00:15:33,732
someone would say consumer
sentiment, because

334
00:15:33,732 --> 00:15:36,602
the people in charge of polling
that consumer sentiment,

335
00:15:36,602 --> 00:15:39,305
the University of Michigan --
they do a regular poll

336
00:15:39,305 --> 00:15:41,674
on that -- I just wanted to
read from their press

337
00:15:41,674 --> 00:15:44,242
release from
just last week.

338
00:15:44,243 --> 00:15:47,846
They said, "Record numbers
of consumers spontaneously

339
00:15:47,846 --> 00:15:50,816
reported hearing about
recent gains in employment

340
00:15:50,816 --> 00:15:53,619
and falling gas prices
in early December.

341
00:15:53,619 --> 00:15:55,654
More importantly,
expected wage gains rose

342
00:15:55,654 --> 00:15:57,656
to their highest
level since 2008.

343
00:15:57,656 --> 00:16:00,391
And consumers voiced the
most favorable buying

344
00:16:00,392 --> 00:16:02,227
attitudes in
several decades."

345
00:16:02,227 --> 00:16:04,228
This is their poll on
consumer sentiment,

346
00:16:04,229 --> 00:16:05,230
not mine.

347
00:16:05,230 --> 00:16:07,700
Continuing to quote:
"Indeed, consumers held

348
00:16:07,700 --> 00:16:10,235
the most favorable
long-term expectations for

349
00:16:10,235 --> 00:16:13,038
the economy in
the past decade."

350
00:16:13,038 --> 00:16:15,040
You see that in a number
of different measures.

351
00:16:15,040 --> 00:16:17,041
The sentiments are now
higher than they've been

352
00:16:17,042 --> 00:16:19,445
at any point since
the recovery began.

353
00:16:19,445 --> 00:16:21,447
There's still
substantial challenges.

354
00:16:21,447 --> 00:16:23,449
And it goes back
to what Major said.

355
00:16:23,449 --> 00:16:26,385
You saw a decade in which
incomes didn't rise.

356
00:16:26,385 --> 00:16:28,354
You saw another huge
blow to incomes

357
00:16:28,354 --> 00:16:29,621
in the recession.

358
00:16:29,621 --> 00:16:32,156
You see us digging out of
that but not all the way

359
00:16:32,157 --> 00:16:35,494
dug out of it, so that
people are still feeling

360
00:16:35,494 --> 00:16:38,364
challenges, that people
are still feeling not all

361
00:16:38,364 --> 00:16:39,365
the way there.

362
00:16:39,365 --> 00:16:42,301
And our motivation to
continue to help, but

363
00:16:42,301 --> 00:16:45,504
I don't think it's accurate
to say that you're not

364
00:16:45,504 --> 00:16:47,506
seeing this translate
into sentiment.

365
00:16:47,506 --> 00:16:49,842
Every economic measure
I've seen has improved.

366
00:16:49,842 --> 00:16:51,510
The Press:
So it's morning in America?

367
00:16:51,510 --> 00:16:52,511
Mr. Furman:
I'm not saying it's

368
00:16:52,511 --> 00:16:53,512
morning in America.

369
00:16:53,512 --> 00:16:55,513
I think we're digging
our way out of a really

370
00:16:55,514 --> 00:16:57,516
deep hole, and
we're still not all

371
00:16:57,516 --> 00:16:58,516
the way out
of that hole.

372
00:16:58,517 --> 00:17:01,353
The unemployment
rate at 5.8 percent

373
00:17:01,353 --> 00:17:02,454
is not all the
way to where the

374
00:17:02,454 --> 00:17:03,622
unemployment
rate should be.

375
00:17:03,622 --> 00:17:05,624
Wages are certainly
not all the way

376
00:17:05,624 --> 00:17:08,594
to where they want to be,
but absolutely moving

377
00:17:08,594 --> 00:17:10,162
in the right direction.

378
00:17:10,162 --> 00:17:10,963
Mr. Earnest:
Jim.

379
00:17:10,963 --> 00:17:11,997
The Press:
Josh.

380
00:17:11,997 --> 00:17:13,565
What about these falling
oil prices, though,

381
00:17:13,565 --> 00:17:15,200
that you mentioned, that
people do appreciate

382
00:17:15,200 --> 00:17:18,537
seeing low prices at the
pump, but Wall Street

383
00:17:18,537 --> 00:17:19,771
has been feeling
some jitters.

384
00:17:19,771 --> 00:17:22,340
The Dow has plunged
nearly a thousand points

385
00:17:22,340 --> 00:17:23,841
in the last
week or so.

386
00:17:23,842 --> 00:17:26,945
That might translate into
people being concerned

387
00:17:26,944 --> 00:17:29,748
about their 401(k) plans
and maybe not spend

388
00:17:29,748 --> 00:17:32,785
as much during
the holidays.

389
00:17:32,785 --> 00:17:33,786
What do you make of that?

390
00:17:33,786 --> 00:17:35,788
Are you spooked at all
by these gas prices

391
00:17:35,788 --> 00:17:37,790
that have dropped
so dramatically?

392
00:17:37,790 --> 00:17:39,792
Mr. Furman:
Most of the independent

393
00:17:39,792 --> 00:17:42,561
estimates of gas prices
track our own analysis,

394
00:17:42,561 --> 00:17:44,562
which is that the
reduction in gas prices

395
00:17:44,563 --> 00:17:48,100
is a net positive for
the U.S. economy.

396
00:17:48,100 --> 00:17:51,003
The International Monetary
Fund, for example, said

397
00:17:51,003 --> 00:17:53,906
they expect to see
advanced economy growth

398
00:17:53,906 --> 00:17:57,443
rates on average rise
by about eight-tenths

399
00:17:57,443 --> 00:18:00,412
of a percentage
point as a result

400
00:18:00,412 --> 00:18:03,949
of the lower
price of oil.

401
00:18:03,949 --> 00:18:07,085
So you're talking about a
very substantial tax cut

402
00:18:07,085 --> 00:18:08,954
that goes directly
into your pockets,

403
00:18:08,954 --> 00:18:10,789
and goes there this
week, next week,

404
00:18:10,789 --> 00:18:13,892
the week after
from that.

405
00:18:13,892 --> 00:18:16,595
There is no doubt
that there's winners

406
00:18:16,595 --> 00:18:19,264
and losers in the global
economy from these changes

407
00:18:19,264 --> 00:18:24,602
in gas prices and that
that is creating -- that's

408
00:18:24,603 --> 00:18:29,608
contributing to some turmoil
in the global economy.

409
00:18:29,608 --> 00:18:33,312
There's no doubt that the
biggest risk to the

410
00:18:33,312 --> 00:18:36,514
U.S. economy is the impact
the rest of the world could

411
00:18:36,515 --> 00:18:38,517
have on our economy
because we have such

412
00:18:38,517 --> 00:18:40,652
strong domestic strengths.

413
00:18:40,652 --> 00:18:42,788
On balance, this is
definitely a positive,

414
00:18:42,788 --> 00:18:47,292
but we're certainly monitoring
both sides of the ledger.

415
00:18:47,292 --> 00:18:49,026
Mr. Earnest:
Mara.

416
00:18:49,027 --> 00:18:51,463
The Press:
I know Major tried

417
00:18:51,463 --> 00:18:52,965
to ask you this and
I'm not sure if you

418
00:18:52,965 --> 00:18:55,167
actually answered it, but
if the problem is that

419
00:18:55,167 --> 00:18:57,168
we've had growth but
it isn't widely shared

420
00:18:57,169 --> 00:18:59,938
and the average family's
income I don't think has

421
00:18:59,938 --> 00:19:02,207
gone up since like
1989, when do you expect

422
00:19:02,207 --> 00:19:04,176
that to change?

423
00:19:04,176 --> 00:19:05,444
I don't know if
you actually --

424
00:19:05,444 --> 00:19:06,879
Mr. Furman:
No, I mean you saw median

425
00:19:06,879 --> 00:19:08,546
income go up in 2013.

426
00:19:08,547 --> 00:19:10,983
We don't have the
numbers yet for 2014,

427
00:19:10,983 --> 00:19:13,819
but I expect them
to go up there.

428
00:19:13,819 --> 00:19:17,755
We have a quarterly wage series 
called Usual Weekly Earnings,

429
00:19:17,756 --> 00:19:19,758
which gives you wages
at different points

430
00:19:19,758 --> 00:19:21,527
along the income
spectrum.

431
00:19:21,527 --> 00:19:25,430
Interestingly, in the last
two years, wages for workers

432
00:19:25,430 --> 00:19:29,735
that the 10th or 25th I
think even 50th percentile

433
00:19:29,735 --> 00:19:32,504
have risen more quickly
than wages for those

434
00:19:32,504 --> 00:19:34,106
at the 90th
percentile.

435
00:19:34,106 --> 00:19:37,376
So that's not --

436
00:19:37,376 --> 00:19:38,410
The Press:
But is wages the same

437
00:19:38,410 --> 00:19:39,211
as average
family income?

438
00:19:39,211 --> 00:19:40,212
Mr. Furman:
No.

439
00:19:40,212 --> 00:19:41,079
The Press:
Oh.

440
00:19:41,079 --> 00:19:42,848
Mr. Furman:
No, we just get wages

441
00:19:42,848 --> 00:19:44,850
every quarter and we
get income every year.

442
00:19:44,850 --> 00:19:46,952
And the income, we,
unfortunately, need to wait

443
00:19:46,952 --> 00:19:50,956
until eight or nine months
after the year ends

444
00:19:50,956 --> 00:19:51,924
to find those numbers.

445
00:19:51,924 --> 00:19:54,526
So income is the more 
comprehensive measure,

446
00:19:54,526 --> 00:19:56,528
but it's the less timely
one, which is why

447
00:19:56,528 --> 00:19:59,698
I was switching
back and forth.

448
00:19:59,698 --> 00:20:03,835
But I think, as I said,
the job quality --

449
00:20:03,835 --> 00:20:07,105
we have a lot of challenges
in our economy longstanding

450
00:20:07,105 --> 00:20:10,375
in terms of job quality,
in terms of polarization

451
00:20:10,375 --> 00:20:14,112
and losing jobs in the middle 
and getting jobs at either end.

452
00:20:14,112 --> 00:20:18,150
But the strengthening
economy that we saw in 2014

453
00:20:18,150 --> 00:20:21,119
meant that all that
got better in 2014;

454
00:20:21,119 --> 00:20:25,023
meant that real wages went
up -- not close enough

455
00:20:25,023 --> 00:20:27,426
to make up for the challenges
-- for the problems

456
00:20:27,426 --> 00:20:28,694
that we saw
before that.

457
00:20:28,694 --> 00:20:32,197
We still have a long way to go
in terms of wages and income.

458
00:20:32,197 --> 00:20:35,233
But you're seeing the
strengthening economy translate.

459
00:20:35,233 --> 00:20:37,235
It's just not -- we
haven't solved all

460
00:20:37,235 --> 00:20:38,503
our economic
problems yet.

461
00:20:38,503 --> 00:20:41,005
The Press:
You don't have a prediction

462
00:20:41,006 --> 00:20:43,375
to make about when?

463
00:20:43,375 --> 00:20:45,611
Mr. Furman:
I don't have a prediction

464
00:20:45,611 --> 00:20:47,779
to make about when, but
we would -- we're seeing

465
00:20:47,779 --> 00:20:49,848
what you expect to see,
which is in the early

466
00:20:49,848 --> 00:20:51,850
stages of recovery
the unemployment

467
00:20:51,850 --> 00:20:54,386
rate falls, and then that
starts to translate into wages.

468
00:20:54,386 --> 00:20:56,655
And we've now seen two
years in a row where wages

469
00:20:56,655 --> 00:20:57,923
are exceeding inflation.

470
00:20:57,923 --> 00:20:59,825
The Press:
Just one other question.

471
00:20:59,825 --> 00:21:01,827
One of the kind of
political problems for

472
00:21:01,827 --> 00:21:03,829
the administration has been
that even though there

473
00:21:03,829 --> 00:21:05,831
is all this good
economic numbers, people

474
00:21:05,831 --> 00:21:08,332
don't feel it -- partially
because average American

475
00:21:08,333 --> 00:21:10,969
incomes haven't gone up, but 
also because big-ticket items,

476
00:21:10,969 --> 00:21:14,506
despite low inflation elsewhere, 
have been going up really fast

477
00:21:14,506 --> 00:21:16,775
-- like the cost of
college and health care.

478
00:21:16,775 --> 00:21:21,546
So what is the better
measure of how the

479
00:21:21,546 --> 00:21:25,684
average person
experiences the economy?

480
00:21:25,684 --> 00:21:27,953
Mr. Furman:
I think a lot of people

481
00:21:27,953 --> 00:21:31,490
have wrestled with
exactly that question.

482
00:21:31,490 --> 00:21:33,825
The CPI is the accurate
measure in that

483
00:21:33,825 --> 00:21:36,094
it reflects the proportion
of spending you have

484
00:21:36,094 --> 00:21:38,096
on college, the proportion
on health care,

485
00:21:38,096 --> 00:21:40,866
the proportion on food --
which tends to go down

486
00:21:40,866 --> 00:21:41,900
-- the proportion on gas.

487
00:21:41,900 --> 00:21:43,902
There are certainly
some things which tend

488
00:21:43,902 --> 00:21:44,903
to be more salient.

489
00:21:44,903 --> 00:21:48,106
Certainly when gas prices
are increasing, even

490
00:21:48,106 --> 00:21:51,343
if overall inflation is low,
you often -- consumers,

491
00:21:51,343 --> 00:21:55,147
they see that big sign every
week and they feel it.

492
00:21:55,147 --> 00:22:00,252
That's obviously going the
other direction right now.

493
00:22:00,252 --> 00:22:01,253
You cited health care.

494
00:22:01,253 --> 00:22:05,389
Health care, the slowest
growth we've had on record

495
00:22:05,390 --> 00:22:08,560
in this country -- and the
data goes back to 1960

496
00:22:08,560 --> 00:22:10,495
-- was in 2013.

497
00:22:10,495 --> 00:22:11,629
The Press:
Yes, after
tremendous

498
00:22:11,630 --> 00:22:12,397
-- Mr. Furman:
Right, after

499
00:22:12,397 --> 00:22:13,532
tremendous increases,
obviously.

500
00:22:13,532 --> 00:22:14,666
And health costs
are still high.

501
00:22:14,666 --> 00:22:15,367
Mr. Earnest:
After the passage

502
00:22:15,367 --> 00:22:16,134
of the Affordable
Care Act.

503
00:22:16,134 --> 00:22:17,002
Mr. Furman:
Right.

504
00:22:17,002 --> 00:22:17,903
Health costs
are still high.

505
00:22:17,903 --> 00:22:19,171
There's no dispute
over that.

506
00:22:19,171 --> 00:22:22,541
But the growth rate is --
again, the growth rate

507
00:22:22,541 --> 00:22:28,280
is slowing to a degree that
almost no one expected.

508
00:22:28,280 --> 00:22:29,815
The Press:
Jason, can I follow

509
00:22:29,815 --> 00:22:30,816
on health care?

510
00:22:30,816 --> 00:22:32,117
You obviously have a
better story to tell

511
00:22:32,117 --> 00:22:33,618
as well about
healthcare.gov.

512
00:22:33,618 --> 00:22:35,253
I know that's not completely your area, but since we're

513
00:22:35,253 --> 00:22:36,354
talking about
health care --

514
00:22:36,354 --> 00:22:37,489
Mr. Furman:
If it's working well,

515
00:22:37,489 --> 00:22:38,957
it's my area.

516
00:22:38,957 --> 00:22:39,858
(laughter)

517
00:22:39,858 --> 00:22:41,860
The Press:
So then you like it.

518
00:22:41,860 --> 00:22:42,828
Quick question.

519
00:22:42,828 --> 00:22:44,963
The insurance industry is
saying maybe it's a glitch,

520
00:22:44,963 --> 00:22:46,197
maybe it's a bigger
problem, where when people

521
00:22:46,198 --> 00:22:48,266
are trying to renew,
people who signed up for

522
00:22:48,266 --> 00:22:50,068
the first time last year,
this is the first time

523
00:22:50,068 --> 00:22:52,838
they can renew, and
there is some difficulty

524
00:22:52,838 --> 00:22:54,840
between the government and
the insurance industry

525
00:22:54,840 --> 00:22:57,141
in terms of communicating from
a technological standpoint,

526
00:22:57,142 --> 00:22:59,444
and there is some concern
some people who have

527
00:22:59,444 --> 00:23:01,646
paid their premiums
won't be covered.

528
00:23:01,646 --> 00:23:03,248
How confident are you
that you're going

529
00:23:03,248 --> 00:23:04,649
to be able to fix that?

530
00:23:04,649 --> 00:23:06,650
Mr. Furman:
I would want people who

531
00:23:06,651 --> 00:23:08,754
are working on the website
to answer those types

532
00:23:08,754 --> 00:23:10,388
of technical questions.

533
00:23:10,388 --> 00:23:11,022
Mr. Earnest:
David, did you have

534
00:23:11,022 --> 00:23:11,956
your hand up?

535
00:23:11,957 --> 00:23:12,758
The Press:
Yes.

536
00:23:12,758 --> 00:23:13,725
Pardon me if this has
been asked before,

537
00:23:13,725 --> 00:23:15,392
but I'm wondering, I mean,
how big a factor were the

538
00:23:15,393 --> 00:23:19,664
sanctions contributing to 
Russia's economic problems?

539
00:23:19,664 --> 00:23:21,900
Is it second to the
oil price situation?

540
00:23:21,900 --> 00:23:23,902
How much has the U.S.
and its allies caused

541
00:23:23,902 --> 00:23:24,903
what's going on
in Russia now?

542
00:23:24,903 --> 00:23:27,739
Mr. Furman:
I think there are three

543
00:23:27,739 --> 00:23:28,874
things that have
contributed.

544
00:23:28,874 --> 00:23:32,444
I think sanctions have 
contributed, and we've

545
00:23:32,444 --> 00:23:36,481
targeted -- when we went
beyond the individuals

546
00:23:36,481 --> 00:23:40,519
which was affected key
supporters of the regime

547
00:23:40,519 --> 00:23:44,389
to the sectorial sanctions
and focusing on the energy

548
00:23:44,389 --> 00:23:47,626
industry, which is central
to Russia's economy,

549
00:23:47,626 --> 00:23:49,628
on the financial industry,
which is central

550
00:23:49,628 --> 00:23:52,496
to any economy's
ability to function,

551
00:23:52,497 --> 00:23:57,869
and on the military
industry -- that had

552
00:23:57,869 --> 00:24:00,472
a substantial impact
on their economy.

553
00:24:00,472 --> 00:24:04,976
The uncertainty they've created
has reduced both foreign

554
00:24:04,976 --> 00:24:08,346
investment and domestic
investment and

555
00:24:08,346 --> 00:24:10,715
they're not the partner
that most companies around

556
00:24:10,715 --> 00:24:13,318
the world want to have
economically right now,

557
00:24:13,318 --> 00:24:16,588
given the way they've
conducted themselves.

558
00:24:16,588 --> 00:24:18,857
And then, finally, the
oil prices obviously

559
00:24:18,857 --> 00:24:19,891
layer on top of that.

560
00:24:19,891 --> 00:24:22,060
But even before this decline
in the price of oil,

561
00:24:22,060 --> 00:24:26,697
just a few months ago,
their economy was

562
00:24:26,698 --> 00:24:32,103
in a much worse shape than
it had been before Crimea.

563
00:24:32,103 --> 00:24:32,971
The Press:
How does the U.S. deal

564
00:24:32,971 --> 00:24:35,640
with the fallout from
Russia's economic problems?

565
00:24:35,640 --> 00:24:37,742
Mr. Furman:
In terms of our domestic

566
00:24:37,742 --> 00:24:39,744
economy, I already
cited it's one-tenth

567
00:24:39,744 --> 00:24:40,846
of 1 percent
of our GDP.

568
00:24:40,846 --> 00:24:44,316
I think the global
economy is a headwind

569
00:24:44,316 --> 00:24:46,685
for the U.S. economy,
but I think that,

570
00:24:46,685 --> 00:24:49,521
as I said before, is
more places like Japan

571
00:24:49,521 --> 00:24:51,723
and Europe and China
that are slowing

572
00:24:51,723 --> 00:24:54,226
for reasons
largely unrelated

573
00:24:54,226 --> 00:24:58,430
to the Russian
situation.

574
00:24:58,430 --> 00:24:59,764
The Press:
Jason, when you were talking

575
00:24:59,764 --> 00:25:01,065
about wages earlier, you
said there are a lot

576
00:25:01,066 --> 00:25:04,102
of ideas that we have for
that, suggesting that

577
00:25:04,102 --> 00:25:06,238
the President has obviously
new initiatives

578
00:25:06,238 --> 00:25:08,139
to talk about in
the Supreme Court

579
00:25:08,139 --> 00:25:09,373
or whatever,
going forward.

580
00:25:09,374 --> 00:25:11,610
And on your list that you had
on your slide you included,

581
00:25:11,610 --> 00:25:15,714
of course, trade and
business tax code reform.

582
00:25:15,714 --> 00:25:18,383
Thinking about wage gain
as the President's goal

583
00:25:18,383 --> 00:25:21,887
maybe for the end of his
tenure as President,

584
00:25:21,887 --> 00:25:25,657
which of those -- business
tax code reform or trade,

585
00:25:25,657 --> 00:25:27,726
which he could work
with Republicans

586
00:25:27,726 --> 00:25:30,962
on in the final years --
would deliver the most

587
00:25:30,962 --> 00:25:33,798
for wage gains in
the short term?

588
00:25:33,798 --> 00:25:35,233
Mr. Furman:
I don't have

589
00:25:35,233 --> 00:25:37,702
a "this one is more"
or "this one is less."

590
00:25:37,702 --> 00:25:39,704
I tend to think as the
challenge of family

591
00:25:39,704 --> 00:25:41,806
incomes is an interplay
of three factors:

592
00:25:41,806 --> 00:25:45,110
One, what the productivity 
growth of the economy is;

593
00:25:45,110 --> 00:25:47,611
two, the ability of
workers to connect with

594
00:25:47,612 --> 00:25:50,348
that productivity
growth, so inequality;

595
00:25:50,348 --> 00:25:52,517
and three -- and The New
York Times has been doing

596
00:25:52,517 --> 00:25:54,819
a good series on this --
people that actually

597
00:25:54,819 --> 00:25:57,055
get jobs and
be employed.

598
00:25:57,055 --> 00:26:00,025
And those three efforts
complement each other.

599
00:26:00,025 --> 00:26:02,227
There's a lot of
steps, like education,

600
00:26:02,227 --> 00:26:05,163
that can enhance
productivity growth, reduce

601
00:26:05,163 --> 00:26:08,867
inequality and help more
people have jobs.

602
00:26:08,867 --> 00:26:11,101
And so we want to be
working on all three of

603
00:26:11,102 --> 00:26:14,706
those overarching economic
goals simultaneously.

604
00:26:14,706 --> 00:26:17,809
And everything I listed
there would help.

605
00:26:17,809 --> 00:26:19,811
You want -- something
like business

606
00:26:19,811 --> 00:26:21,812
tax reform helps your 
productivity growth.

607
00:26:21,813 --> 00:26:23,815
But you want to take
other steps to make sure

608
00:26:23,815 --> 00:26:25,817
people can take
advantage of that --

609
00:26:25,817 --> 00:26:27,819
be more educated, more
skilled, raise the

610
00:26:27,819 --> 00:26:29,821
minimum wage so
that when a company

611
00:26:29,821 --> 00:26:31,822
is expanding people are
also getting paid more.

612
00:26:31,823 --> 00:26:36,194
So these steps
all work together.

613
00:26:36,194 --> 00:26:40,565
The Press:
-- send any ripples through

614
00:26:40,565 --> 00:26:42,367
the economy, or do you
believe this is the time

615
00:26:42,367 --> 00:26:44,769
when that can -- that has
already ended at the end

616
00:26:44,769 --> 00:26:47,172
of October and will not
have any noticeable --

617
00:26:47,172 --> 00:26:48,606
Mr. Furman:
I don't have a comment

618
00:26:48,606 --> 00:26:51,376
on the Fed or a prediction
of the impact of it --

619
00:26:51,376 --> 00:26:52,377
The Press:
It's over.

620
00:26:52,377 --> 00:26:54,846
What I'm saying is will
that change the way the

621
00:26:54,846 --> 00:26:57,382
economy has performed --
because you have something

622
00:26:57,382 --> 00:26:59,651
that was in the economy
for a considerable amount

623
00:26:59,651 --> 00:27:02,554
of time that kept interest
rates low that's no longer

624
00:27:02,554 --> 00:27:06,024
there, so I'm not asking
about Fed policy.

625
00:27:06,024 --> 00:27:07,993
Mr. Furman:
The only observation

626
00:27:07,993 --> 00:27:12,062
I'd make is the 10-year
Treasury right now is lower

627
00:27:12,063 --> 00:27:19,938
than where it was three months
ago, and consumers are

628
00:27:19,938 --> 00:27:22,440
substantially
deleveraged, are seeing

629
00:27:22,440 --> 00:27:24,075
real wage gains.

630
00:27:24,075 --> 00:27:26,211
Business investment
has picked up over

631
00:27:26,211 --> 00:27:27,812
the last year.

632
00:27:27,812 --> 00:27:30,548
And so I think we have
a lot of domestic

633
00:27:30,548 --> 00:27:33,118
momentum in our
economy right now.

634
00:27:33,118 --> 00:27:35,754
Mr. Earnest:
Thank you, Jason.

635
00:27:35,754 --> 00:27:38,322
Nice to see you.

636
00:27:43,161 --> 00:27:45,697
We'll be having a short
economics quiz after today.

637
00:27:45,697 --> 00:27:48,533
(laughter)

638
00:27:48,533 --> 00:27:49,601
Darlene, we can go
back to regularly

639
00:27:49,601 --> 00:27:51,136
scheduled business
if you're ready.

640
00:27:51,136 --> 00:27:52,303
The Press:
Thanks.

641
00:27:52,303 --> 00:27:54,506
Can you tell us if the
President will sign

642
00:27:54,506 --> 00:27:56,941
the spending bill, the 
government bill today?

643
00:27:56,941 --> 00:27:59,744
Mr. Earnest:
As of latest report earlier

644
00:27:59,744 --> 00:28:02,213
this morning, the White
House had not yet received

645
00:28:02,213 --> 00:28:05,984
the enrolled version of the
bill, but once the President

646
00:28:05,984 --> 00:28:08,620
-- once the White House has 
received that enrolled version,

647
00:28:08,620 --> 00:28:10,254
the President
will sign it.

648
00:28:10,255 --> 00:28:12,257
It's my understanding
that in order to prevent

649
00:28:12,257 --> 00:28:14,259
a government shutdown,
that would need

650
00:28:14,259 --> 00:28:16,261
to be signed before the
end of the day tomorrow,

651
00:28:16,261 --> 00:28:18,263
and I would anticipate we'd be 
able to meet that deadline.

652
00:28:18,263 --> 00:28:20,264
So I don't know if it will
be today or tomorrow,

653
00:28:20,265 --> 00:28:22,267
but we'll get it done
in order to avoid

654
00:28:22,267 --> 00:28:23,268
a government shutdown.

655
00:28:23,268 --> 00:28:25,503
And we'll let you all
know when it's done.

656
00:28:25,503 --> 00:28:26,604
The Press:
Okay.

657
00:28:26,604 --> 00:28:30,508
And then to go back to the 
Russian currency decline.

658
00:28:30,508 --> 00:28:32,777
Can you say if what's
going on in Russia

659
00:28:32,777 --> 00:28:34,846
would make the President
more or less likely

660
00:28:34,846 --> 00:28:36,881
to sign the sanctions
bill that Congress --

661
00:28:36,881 --> 00:28:39,350
that cleared Congress?

662
00:28:39,350 --> 00:28:40,452
Mr. Earnest:
Well, Darlene,

663
00:28:40,452 --> 00:28:43,254
as you know, the United States
and the Obama administration

664
00:28:43,254 --> 00:28:46,123
have been working very closely 
with our allies to implement

665
00:28:46,124 --> 00:28:49,327
a sanctions regime against
Russia that has had,

666
00:28:49,327 --> 00:28:51,496
as Jason was describing,
a devastating impact

667
00:28:51,496 --> 00:28:53,131
on their economy.

668
00:28:53,131 --> 00:28:56,034
It has also isolated
them from the

669
00:28:56,034 --> 00:28:59,204
global community on a
variety of fronts,

670
00:28:59,204 --> 00:29:02,507
including in the area
of the economy.

671
00:29:02,507 --> 00:29:08,646
So the success that we
have had in implementing

672
00:29:08,646 --> 00:29:13,585
this sanctions
strategy has depended

673
00:29:13,585 --> 00:29:15,420
on a lot of
flexibility.

674
00:29:15,420 --> 00:29:17,422
And the reason for
that is we have --

675
00:29:17,422 --> 00:29:19,424
as Jason mentioned,
there's not significant

676
00:29:19,424 --> 00:29:22,460
U.S. exposure to the Russian 
economy, that they only consist

677
00:29:22,460 --> 00:29:24,829
of one-tenth of 1 percent
of our GDP in terms

678
00:29:24,829 --> 00:29:27,899
of U.S. exports to Russia.

679
00:29:27,899 --> 00:29:30,168
But some of our partners
in Europe have a much

680
00:29:30,168 --> 00:29:32,570
bigger impact on the
Russian economy,

681
00:29:32,570 --> 00:29:35,706
and by being able to work
in close concert with those

682
00:29:35,707 --> 00:29:38,743
European allies, we've
been able to maximize the

683
00:29:38,743 --> 00:29:42,847
impact of our sanctions
strategy against Russia.

684
00:29:42,847 --> 00:29:44,682
And what we have tried
to do is we've tried

685
00:29:44,682 --> 00:29:47,252
to optimize the impact on
Russia's economy while

686
00:29:47,252 --> 00:29:50,155
at the same time mitigating
the impact of the

687
00:29:50,155 --> 00:29:52,357
sanctions regime on
American businesses.

688
00:29:52,357 --> 00:29:54,359
We certainly don't want
American businesses

689
00:29:54,359 --> 00:29:56,593
to be held at a significant
competitive disadvantage

690
00:29:56,594 --> 00:29:58,196
as a result of
this strategy.

691
00:29:58,196 --> 00:30:00,197
We've also tried to
mitigate the impact on the

692
00:30:00,198 --> 00:30:02,534
broader global economy to
make sure that, again,

693
00:30:02,534 --> 00:30:05,103
we're targeting the impact
on the Russian economy

694
00:30:05,103 --> 00:30:07,372
in a way that doesn't have
dramatic spillover effects

695
00:30:07,372 --> 00:30:08,740
into the broader economy.

696
00:30:08,740 --> 00:30:10,742
You obviously can't
eliminate that entirely,

697
00:30:10,742 --> 00:30:13,178
but you can ensure that
the focal point of the

698
00:30:13,178 --> 00:30:15,079
impact is on Russia.

699
00:30:15,079 --> 00:30:17,447
And we have succeeded
in doing that.

700
00:30:17,448 --> 00:30:22,320
That all being said, the
President does intend

701
00:30:22,320 --> 00:30:24,322
to sign the piece of
legislation that

702
00:30:24,322 --> 00:30:25,523
was passed by Congress.

703
00:30:25,523 --> 00:30:27,891
But we do have some
concerns about that

704
00:30:27,892 --> 00:30:34,299
legislation because while
it preserves flexibility,

705
00:30:34,299 --> 00:30:36,801
it does send a confusing
message to our allies,

706
00:30:36,801 --> 00:30:44,976
because it includes some
sanctions language that

707
00:30:44,976 --> 00:30:46,911
does not reflect
the consultations

708
00:30:46,911 --> 00:30:48,446
that are ongoing.

709
00:30:48,446 --> 00:30:50,447
Typically, the kinds of
consultations that we've

710
00:30:50,448 --> 00:30:52,450
had that have allowed
for the successful

711
00:30:52,450 --> 00:30:54,452
implementation of the
strategy have allowed

712
00:30:54,452 --> 00:30:57,088
us to have private
conversations with our

713
00:30:57,088 --> 00:30:59,257
European allies
about our strategies

714
00:30:59,257 --> 00:31:00,825
and next steps forward.

715
00:31:00,825 --> 00:31:04,295
This obviously is a rather
public airing of other

716
00:31:04,295 --> 00:31:07,298
elements of our strategy
that we prefer not to have.

717
00:31:07,298 --> 00:31:10,802
That said, because it does
preserve the President's

718
00:31:10,802 --> 00:31:12,837
flexibility to carry
out this strategy,

719
00:31:12,837 --> 00:31:15,039
he does intend to
sign the bill.

720
00:31:15,039 --> 00:31:15,907
The Press:
Do you have any sense

721
00:31:15,907 --> 00:31:17,408
of how soon he
will sign it?

722
00:31:17,408 --> 00:31:18,709
Mr. Earnest:
I don't have any --

723
00:31:18,710 --> 00:31:19,677
The Press:
By the end of the week?

724
00:31:19,677 --> 00:31:20,712
Mr. Earnest:
I would anticipate that

725
00:31:20,712 --> 00:31:21,946
it would get done before
the end of the week.

726
00:31:21,946 --> 00:31:23,147
Again, that will
be contingent on,

727
00:31:23,147 --> 00:31:26,016
however, the receipt
of the fully enrolled

728
00:31:26,017 --> 00:31:27,285
version of the bill.

729
00:31:27,285 --> 00:31:29,721
The Press:
And then one last question.

730
00:31:29,721 --> 00:31:32,156
Russia's economy has been
having a difficult time

731
00:31:32,156 --> 00:31:37,161
for some time, and
President Putin hasn't

732
00:31:37,161 --> 00:31:40,632
changed his behavior
towards Ukraine.

733
00:31:40,632 --> 00:31:42,867
The current currency
situation, do you think

734
00:31:42,867 --> 00:31:46,271
that will finally
get him to change

735
00:31:46,271 --> 00:31:47,938
his behavior
toward Ukraine?

736
00:31:47,939 --> 00:31:49,140
Does the White
House think that?

737
00:31:49,140 --> 00:31:50,541
Mr. Earnest:
Ultimately, he's the

738
00:31:50,541 --> 00:31:51,743
only one that knows.

739
00:31:51,743 --> 00:31:53,144
But what is I think
crystal clear

740
00:31:53,144 --> 00:31:57,982
to everybody around the
world is that what

741
00:31:57,982 --> 00:32:04,422
we have said about this
strategy has come to pass.

742
00:32:04,422 --> 00:32:06,424
We have suggested that
the longer the sanctions

743
00:32:06,424 --> 00:32:10,094
regime is in place, the
more isolated the Russians

744
00:32:10,094 --> 00:32:13,031
would be and the greater
the impact it would have

745
00:32:13,031 --> 00:32:14,999
on the broader
Russian economy.

746
00:32:14,999 --> 00:32:17,035
And every week and month
that goes by that the

747
00:32:17,035 --> 00:32:19,771
sanctions regime is in
place we see that the toll

748
00:32:19,771 --> 00:32:22,373
that is being taken by the
Russian economy grows.

749
00:32:22,373 --> 00:32:28,479
We're now starting to see
-- as is clear from the

750
00:32:28,479 --> 00:32:31,916
extraordinary action that
was taken by the Russian

751
00:32:31,916 --> 00:32:34,118
government overnight,
Russia time,

752
00:32:34,118 --> 00:32:36,354
to dramatically increase
the interest rate

753
00:32:36,354 --> 00:32:41,926
is an indication that the bite
on the Russian economy

754
00:32:41,926 --> 00:32:45,062
is only becoming stronger.

755
00:32:45,063 --> 00:32:46,297
And ultimately,
though, it will

756
00:32:46,297 --> 00:32:48,900
be up to President
Putin to decide whether

757
00:32:48,900 --> 00:32:52,570
or not these economic costs
are worth it to him and

758
00:32:52,570 --> 00:32:55,973
are worth it to the
Russian people.

759
00:32:55,973 --> 00:32:57,975
The President has been
very clear, and the

760
00:32:57,975 --> 00:33:01,346
President was clear about
his even at the news

761
00:33:01,346 --> 00:33:03,314
conference that he did at
the NATO Summit, where

762
00:33:03,314 --> 00:33:06,984
this was obviously
discussed in some detail,

763
00:33:06,984 --> 00:33:09,520
that the President and our
partners stand ready

764
00:33:09,520 --> 00:33:13,057
to begin to roll back the
sanctions regime against

765
00:33:13,057 --> 00:33:15,593
Russia as soon as Russia
demonstrates a clear

766
00:33:15,593 --> 00:33:18,363
commitment to implementing
the kinds of commitments

767
00:33:18,363 --> 00:33:20,798
that they've made to
deescalate the situation

768
00:33:20,798 --> 00:33:22,467
in Ukraine.

769
00:33:22,467 --> 00:33:24,469
But we have not seen
Russia follow through

770
00:33:24,469 --> 00:33:26,471
on those promises and, as
a result, that sanctions

771
00:33:26,471 --> 00:33:28,172
regime has
remained in place.

772
00:33:28,172 --> 00:33:32,777
And as long as that sanctions
regime remains in place,

773
00:33:32,777 --> 00:33:37,615
the cost on the Russian economy
will continue to increase.

774
00:33:37,615 --> 00:33:39,083
Roberta.

775
00:33:39,083 --> 00:33:40,651
The Press:
What is the U.S.

776
00:33:40,651 --> 00:33:44,655
prepared to do, if
anything, to address the

777
00:33:44,655 --> 00:33:47,992
school attack in Pakistan
or provide assistance

778
00:33:47,992 --> 00:33:51,796
in the wake of that?

779
00:33:51,796 --> 00:33:52,764
Mr. Earnest:
Well, Roberta, you

780
00:33:52,764 --> 00:33:54,064
saw the statement
from the President

781
00:33:54,065 --> 00:33:55,400
that went out
earlier today.

782
00:33:55,400 --> 00:33:56,968
And what he said
is something that

783
00:33:56,968 --> 00:34:00,271
I will repeat, which is that
the United States condemns

784
00:34:00,271 --> 00:34:03,007
these attacks in the
strongest possible terms,

785
00:34:03,007 --> 00:34:05,009
and our hearts and
prayers go out to the

786
00:34:05,009 --> 00:34:06,077
victims and
their families.

787
00:34:06,077 --> 00:34:08,079
That's true of the First
Family and that's also

788
00:34:08,079 --> 00:34:10,081
true of everybody here at
the White House today.

789
00:34:10,081 --> 00:34:12,083
It's also emblematic
of a couple of things.

790
00:34:12,083 --> 00:34:19,190
The depraved decision that
one has to make to storm

791
00:34:19,190 --> 00:34:22,126
a school of innocent
children and open fire

792
00:34:22,126 --> 00:34:25,496
on them I think is
a testament to how

793
00:34:25,496 --> 00:34:29,033
cold-blooded these
extremists are.

794
00:34:29,033 --> 00:34:31,034
It also is a clear
indication of something

795
00:34:31,034 --> 00:34:33,103
that we have said on a
number of occasions, which

796
00:34:33,103 --> 00:34:38,341
is that many of these
religious extremists are

797
00:34:38,342 --> 00:34:41,279
carrying out attacks that
have a substantial impact,

798
00:34:41,279 --> 00:34:46,016
in terms of the number
of victims, on Muslims.

799
00:34:46,016 --> 00:34:48,018
And I know that many of
these extremists like

800
00:34:48,018 --> 00:34:51,421
to characterize their
struggle as a struggle

801
00:34:51,422 --> 00:34:56,293
of Muslims against the
Western world, but that

802
00:34:56,293 --> 00:34:59,096
clearly is not true if the
largest number of victims

803
00:34:59,096 --> 00:35:01,098
that we're seeing are
actually Muslims.

804
00:35:01,098 --> 00:35:03,100
And that makes this
situation all the more

805
00:35:03,100 --> 00:35:05,569
heartbreaking and
all the more tragic.

806
00:35:05,570 --> 00:35:07,839
I can tell you that,
through a variety

807
00:35:07,839 --> 00:35:09,841
of channels, the United
States has been in touch

808
00:35:09,841 --> 00:35:13,711
with Pakistan officials
to offer assistance.

809
00:35:13,711 --> 00:35:17,515
Much of this outreach
has been driven

810
00:35:17,515 --> 00:35:21,551
by U.S. Ambassador Olsen in
Pakistan to arrange with

811
00:35:21,552 --> 00:35:23,488
Pakistani officials.

812
00:35:23,488 --> 00:35:26,424
I know that Ambassador
Olsen actually traveled

813
00:35:26,424 --> 00:35:30,194
with a senior Pakistani
official to go donate

814
00:35:30,194 --> 00:35:32,196
blood at the Pakistan
Red Crescent today.

815
00:35:32,196 --> 00:35:35,600
That is emblematic of the
kind of support that we

816
00:35:35,600 --> 00:35:37,602
here in the United States
have for the people

817
00:35:37,602 --> 00:35:39,804
of Pakistan as they
confront this terrible

818
00:35:39,804 --> 00:35:41,272
act of violence.

819
00:35:41,272 --> 00:35:43,508
The Press:
So beyond donating blood

820
00:35:43,508 --> 00:35:45,509
and thoughts and prayers,
are there concrete actions

821
00:35:45,510 --> 00:35:47,678
that the United States
can take to assist

822
00:35:47,678 --> 00:35:50,580
or to respond
to this attack?

823
00:35:50,581 --> 00:35:52,049
Mr. Earnest:
Well, I can tell

824
00:35:52,049 --> 00:35:53,284
you that that kind of
assistance that you're

825
00:35:53,284 --> 00:35:54,752
referring to has
been offered.

826
00:35:54,752 --> 00:35:58,456
But this is a situation
that's only very recently

827
00:35:58,456 --> 00:36:00,558
been resolved and I
anticipate that we'll

828
00:36:00,558 --> 00:36:02,960
continue to be in touch
with Pakistani leaders

829
00:36:02,960 --> 00:36:04,362
in the days ahead.

830
00:36:04,362 --> 00:36:06,731
Jim.

831
00:36:06,731 --> 00:36:10,301
The Press:
Josh, does this attack in

832
00:36:10,301 --> 00:36:13,337
Pakistan cause any concern on
the part of this administration

833
00:36:13,337 --> 00:36:17,909
that perhaps this withdrawal
from Afghanistan as wise?

834
00:36:17,909 --> 00:36:22,446
I know that the President
authorized more troops,

835
00:36:22,446 --> 00:36:24,915
a thousand more troops,
roughly, than was

836
00:36:24,916 --> 00:36:26,751
previously planned for
next year and that those

837
00:36:26,751 --> 00:36:30,688
soldiers may be engaged in
counterterror operations.

838
00:36:30,688 --> 00:36:33,591
Is that capacity preserved
only for Pakistan --

839
00:36:33,591 --> 00:36:35,192
or only for Afghanistan,
or might it also

840
00:36:35,192 --> 00:36:39,130
be applicable in
Pakistan as well?

841
00:36:39,130 --> 00:36:41,532
Mr. Earnest:
Well, Jim, this troop

842
00:36:41,532 --> 00:36:43,534
commitment that
you're referring to,

843
00:36:43,534 --> 00:36:45,536
this thousand troop
commitment, is merely

844
00:36:45,536 --> 00:36:48,239
a bridge through the
end of this year as our

845
00:36:48,239 --> 00:36:50,875
NATO allies and other
partners in this conflict

846
00:36:50,875 --> 00:36:53,578
in Afghanistan make
their troop commitments

847
00:36:53,578 --> 00:36:54,645
and deploy them
to the region.

848
00:36:54,645 --> 00:36:58,082
So this is only a
temporary expansion

849
00:36:58,082 --> 00:36:59,616
of the previous
policy.

850
00:36:59,617 --> 00:37:02,186
But the President does
believe -- the President

851
00:37:02,186 --> 00:37:04,689
is committed to ensuring
that we remain on track

852
00:37:04,689 --> 00:37:06,691
for the responsible
drawdown that the

853
00:37:06,691 --> 00:37:07,959
President has
outlined in terms

854
00:37:07,959 --> 00:37:11,095
of our military presence
in Afghanistan.

855
00:37:11,095 --> 00:37:15,533
And the strategy -- or the 
mission that our troops

856
00:37:15,533 --> 00:37:18,636
in Afghanistan are pursuing
right now is one that

857
00:37:18,636 --> 00:37:24,575
is focused on counterterrorism
in a way that will ensure

858
00:37:24,575 --> 00:37:28,779
-- assist the Afghan
government but also ensure

859
00:37:28,779 --> 00:37:30,781
the protection of
American personnel that

860
00:37:30,781 --> 00:37:31,916
are still in
that country.

861
00:37:31,916 --> 00:37:37,054
It also will entail training
Afghan security forces

862
00:37:37,054 --> 00:37:40,091
so that they can continue the
process of taking responsibility

863
00:37:40,091 --> 00:37:42,326
for the security situation
in their country.

864
00:37:42,326 --> 00:37:47,031
I do think that this
scenario and this terrible

865
00:37:47,031 --> 00:37:49,567
event that occurred
in Pakistan sort

866
00:37:49,567 --> 00:37:52,003
of highlights the violent
tendencies of some

867
00:37:52,003 --> 00:37:54,705
of these extremist
groups, which, in turn,

868
00:37:54,705 --> 00:37:58,142
underscores the need to
do all that we can

869
00:37:58,142 --> 00:38:00,810
to strengthen and support
Afghan security forces

870
00:38:00,811 --> 00:38:04,649
as they try to protect their
country and their citizens

871
00:38:04,649 --> 00:38:06,651
from some of these
extremist groups that

872
00:38:06,651 --> 00:38:08,653
aren't just carrying out
acts of violence against

873
00:38:08,653 --> 00:38:10,654
Muslims in Pakistan,
they're also carrying out

874
00:38:10,655 --> 00:38:11,589
acts of violence against
Muslims in Afghanistan.

875
00:38:11,589 --> 00:38:12,356
The Press:
But this neighborhood

876
00:38:12,356 --> 00:38:14,992
will soon be on its
own, essentially.

877
00:38:14,992 --> 00:38:15,993
Mr. Earnest:
Well, the United States

878
00:38:15,993 --> 00:38:17,395
is going to continue to
stand with our partners

879
00:38:17,395 --> 00:38:19,130
in Afghanistan in the
same way that we stand

880
00:38:19,130 --> 00:38:21,799
with our partners in
Pakistan as well.

881
00:38:21,799 --> 00:38:24,368
And there are a variety
of reasons for that.

882
00:38:24,368 --> 00:38:26,703
One is we obviously are
very closely invested

883
00:38:26,704 --> 00:38:30,007
in the stability of
Afghanistan and continuing

884
00:38:30,007 --> 00:38:32,543
to work with the central
government that is making

885
00:38:32,543 --> 00:38:34,679
some important decisions
that will preserve that

886
00:38:34,679 --> 00:38:36,681
security and making the
kinds of investments that

887
00:38:36,681 --> 00:38:39,884
are critical to maintaining
that stability.

888
00:38:39,884 --> 00:38:42,920
The United States is also
invested in continuing

889
00:38:42,920 --> 00:38:44,121
to work closely
with Pakistan.

890
00:38:44,121 --> 00:38:45,690
We have a very important
counterterrorism

891
00:38:45,690 --> 00:38:47,658
relationship with
Pakistan, and I would

892
00:38:47,658 --> 00:38:50,094
anticipate that that
relationship will endure,

893
00:38:50,094 --> 00:38:52,096
primarily because it
significantly benefits

894
00:38:52,096 --> 00:38:55,800
the citizens of both Pakistan
and the United States.

895
00:38:55,800 --> 00:38:58,235
So these kinds of
relationships and our

896
00:38:58,235 --> 00:39:00,571
involvement in these areas
will continue and will

897
00:39:00,571 --> 00:39:02,673
endure because it's in
the best interest of the

898
00:39:02,673 --> 00:39:04,975
American people and
our national security.

899
00:39:04,975 --> 00:39:10,214
What will change, however,
is the kind of military

900
00:39:10,214 --> 00:39:13,017
footprint that's been
in place in Afghanistan

901
00:39:13,017 --> 00:39:15,986
for more than
13 years now.

902
00:39:15,986 --> 00:39:17,154
The Press:
And can I ask

903
00:39:17,154 --> 00:39:18,389
you about the omnibus?

904
00:39:18,389 --> 00:39:20,524
I know some of this
got covered last week,

905
00:39:20,524 --> 00:39:22,960
and you mentioned that
the President was not

906
00:39:22,960 --> 00:39:25,329
really happy about that 
provision that loosened

907
00:39:25,329 --> 00:39:27,965
some of the regulations
in Dodd-Frank.

908
00:39:27,965 --> 00:39:31,769
But you've probably seen
some of the talk about

909
00:39:31,769 --> 00:39:33,870
that revision and
how it was slipped

910
00:39:33,871 --> 00:39:39,176
in by Congressman Yoder,
and the claim has been made

911
00:39:39,176 --> 00:39:43,047
in news reports that Citibank
wrote that provision.

912
00:39:43,047 --> 00:39:47,551
And I'm just -- do you know
for a fact whether Citibank,

913
00:39:47,551 --> 00:39:50,821
word for word or nearly
word for word, wrote that

914
00:39:50,821 --> 00:39:52,523
provision that's
in this bill?

915
00:39:52,523 --> 00:39:54,391
And I know you said the 
President is not happy

916
00:39:54,391 --> 00:39:59,597
about this provision, but
does that response really

917
00:39:59,597 --> 00:40:02,366
match some of the disgust
that is out there with

918
00:40:02,366 --> 00:40:03,667
respect to this
provision?

919
00:40:03,667 --> 00:40:04,835
Because people are sort
of -- this is sort

920
00:40:04,835 --> 00:40:08,005
of an outrage to a lot
of people that allegedly

921
00:40:08,005 --> 00:40:10,608
Citibank just wrote a
provision weakening

922
00:40:10,608 --> 00:40:12,777
Dodd-Frank regulations
in this bill.

923
00:40:12,777 --> 00:40:13,644
Mr. Earnest:
Well, Jim, this

924
00:40:13,644 --> 00:40:15,446
was a bill written
by Congress.

925
00:40:15,446 --> 00:40:18,182
And whether one element of
that bill was plagiarized

926
00:40:18,182 --> 00:40:20,817
by a member of Congress
from a Citibank lobbyist

927
00:40:20,818 --> 00:40:23,788
is something that you'd have
to ask a member of Congress.

928
00:40:23,788 --> 00:40:25,589
The White House was
certainly in the loop

929
00:40:25,589 --> 00:40:33,864
as the discussions about
these provisions took place.

930
00:40:33,864 --> 00:40:36,433
But the White House --
regardless of who wrote

931
00:40:36,433 --> 00:40:40,304
the provision -- strongly
opposes it and doesn't

932
00:40:40,304 --> 00:40:43,707
think it's a good idea
because it does water down

933
00:40:43,707 --> 00:40:45,709
one element of Wall
Street reform.

934
00:40:45,709 --> 00:40:47,711
And the President believes
that we should actually

935
00:40:47,711 --> 00:40:50,548
be implementing Wall Street
reform in a robust way

936
00:40:50,548 --> 00:40:52,549
that will ensure that
American taxpayers

937
00:40:52,550 --> 00:40:54,552
and American businesses
and American middle-class

938
00:40:54,552 --> 00:40:57,021
families have the kinds of
protections that they need

939
00:40:57,021 --> 00:40:59,023
to ensure that taxpayers
are no longer and never

940
00:40:59,023 --> 00:41:01,358
again on the hook for the
risky bets that are made

941
00:41:01,358 --> 00:41:02,526
by Wall Street firms.

942
00:41:02,526 --> 00:41:04,194
The Press:
You're not sure

943
00:41:04,195 --> 00:41:05,362
whether Citibank or people at
Citibank wrote that provision?

944
00:41:05,362 --> 00:41:06,797
Mr. Earnest:
I don't know.

945
00:41:06,797 --> 00:41:08,799
Again, Congress was
responsible for drafting

946
00:41:08,799 --> 00:41:10,801
this legislation, so you
should ask somebody

947
00:41:10,801 --> 00:41:12,670
in Congress
who wrote it.

948
00:41:12,670 --> 00:41:14,305
The Press:
And speaking of the omnibus

949
00:41:14,305 --> 00:41:17,408
and what happened
over the weekend,

950
00:41:17,408 --> 00:41:20,845
Senator Reid's office
appears to be thanking

951
00:41:20,845 --> 00:41:24,548
Ted Cruz for I guess
delaying the debate

952
00:41:24,548 --> 00:41:27,517
or prolonging the debate
on that to the extent that

953
00:41:27,518 --> 00:41:29,820
it allowed the
Senator to bring some

954
00:41:29,820 --> 00:41:33,724
of the President's nominees
forward for a vote.

955
00:41:33,724 --> 00:41:36,227
And in the spirit
of the holidays,

956
00:41:36,227 --> 00:41:38,261
are you sending the
Senator a fruitcake or --

957
00:41:38,262 --> 00:41:40,364
(laughter).

958
00:41:40,364 --> 00:41:42,366
I saw Dan Pfeiffer's
tweet last night.

959
00:41:42,366 --> 00:41:44,368
Are you essentially
saying that Ted Cruz

960
00:41:44,368 --> 00:41:46,971
is responsible for the
Surgeon General getting

961
00:41:46,971 --> 00:41:49,273
through, and
Tony Blinken?

962
00:41:49,273 --> 00:41:52,209
Mr. Earnest:
Well, I'm no expert

963
00:41:52,209 --> 00:41:54,477
in Senate floor procedure.

964
00:41:54,478 --> 00:41:57,181
I can tell you that
this White House has

965
00:41:57,181 --> 00:41:59,817
worked very closely with
Senator Reid and other

966
00:41:59,817 --> 00:42:03,454
Senate Democrats to ensure
the prompt and fair

967
00:42:03,454 --> 00:42:06,023
consideration of the
President's highly qualified

968
00:42:06,023 --> 00:42:08,325
nominees for a variety
of important positions

969
00:42:08,325 --> 00:42:10,694
across the United
States government.

970
00:42:10,694 --> 00:42:13,964
And we are gratified that
some of these nominees

971
00:42:13,964 --> 00:42:15,833
are finally
moving forward.

972
00:42:15,833 --> 00:42:17,835
Dr. Murthy is a tremendous
example of this.

973
00:42:17,835 --> 00:42:20,604
This is an individual who
was eminently qualified

974
00:42:20,604 --> 00:42:26,243
for this position and I
think will stand to offer

975
00:42:26,243 --> 00:42:28,445
quite a bit to the
American people in service

976
00:42:28,445 --> 00:42:29,880
of his country
in this role.

977
00:42:29,880 --> 00:42:31,615
And we're gratified.

978
00:42:31,615 --> 00:42:34,785
As it relates to Senator
Cruz's role, it's not clear

979
00:42:34,785 --> 00:42:37,754
to me -- again, because I'm no
expert in Senate procedure

980
00:42:37,755 --> 00:42:41,292
-- how responsible he
is exactly for this.

981
00:42:41,292 --> 00:42:44,161
I do understand, based on the
news reports that I've read,

982
00:42:44,161 --> 00:42:48,432
that some of the shenanigans
that he carried out

983
00:42:48,432 --> 00:42:51,535
on the Senate floor
did create an opening

984
00:42:51,535 --> 00:42:54,971
and additional time for these
highly qualified nominees

985
00:42:54,972 --> 00:42:56,240
to be confirmed.

986
00:42:56,240 --> 00:42:59,642
And if that's the case, then
it may be an indication

987
00:42:59,643 --> 00:43:01,645
that Senator Cruz
doesn't know much more

988
00:43:01,645 --> 00:43:03,647
about Senate floor
procedure than I do,

989
00:43:03,647 --> 00:43:06,317
but we certainly are
pleased with the outcome.

990
00:43:06,317 --> 00:43:07,318
Jared.

991
00:43:07,318 --> 00:43:09,320
The Press:
I wanted to ask about

992
00:43:09,320 --> 00:43:11,322
yesterday's deadline day for
the Affordable Care Act.

993
00:43:11,322 --> 00:43:13,624
Do we have any -- do
we know up to this

994
00:43:13,624 --> 00:43:15,024
point what signups
look like, what

995
00:43:15,025 --> 00:43:18,429
demographics look like, how
old, how young, need subsidies,

996
00:43:18,429 --> 00:43:20,965
don't need subsidies -- any 
stats at all that you can share?

997
00:43:20,965 --> 00:43:21,966
Mr. Earnest:
I don't have any

998
00:43:21,966 --> 00:43:23,433
statistics at
this point.

999
00:43:23,434 --> 00:43:25,436
I know that -- what I
can tell you is just

1000
00:43:25,436 --> 00:43:27,404
as a general matter
that volume on the

1001
00:43:27,404 --> 00:43:28,605
website was
rather high.

1002
00:43:28,605 --> 00:43:30,607
It was high at the
call center as well.

1003
00:43:30,607 --> 00:43:35,446
This is typical of what
we saw around deadlines

1004
00:43:35,446 --> 00:43:37,915
last year during the
open enrollment period.

1005
00:43:37,915 --> 00:43:42,419
We are gratified that the 
website performed as expected,

1006
00:43:42,419 --> 00:43:45,955
which is something that came
as a big relief to everybody

1007
00:43:45,956 --> 00:43:46,957
here at the
White House.

1008
00:43:46,957 --> 00:43:49,426
It also is something that
significantly enhanced

1009
00:43:49,426 --> 00:43:51,428
the convenience of
people across the

1010
00:43:51,428 --> 00:43:53,430
country who took advantage
of the opportunity

1011
00:43:53,430 --> 00:43:55,432
to consider the options
that were available to them

1012
00:43:55,432 --> 00:43:57,433
and to choose an
option that was in the

1013
00:43:57,434 --> 00:43:59,403
best interest of
their families.

1014
00:43:59,403 --> 00:44:01,404
So we are pleased with the
way that that process

1015
00:44:01,405 --> 00:44:02,406
has been carried out.

1016
00:44:02,406 --> 00:44:04,408
We're still going
through the numbers

1017
00:44:04,408 --> 00:44:06,410
in terms of determining
exactly how many people

1018
00:44:06,410 --> 00:44:09,513
did benefit from this just
here in the last few days,

1019
00:44:09,513 --> 00:44:12,082
but when we have additional
data to share on this --

1020
00:44:12,082 --> 00:44:14,084
I anticipate it will come
from HHS -- but we'll

1021
00:44:14,084 --> 00:44:15,618
make sure that all of
you get it as well.

1022
00:44:15,619 --> 00:44:17,087
The Press:
I know that the

1023
00:44:17,087 --> 00:44:19,089
President last week, and
I guess this week too,

1024
00:44:19,089 --> 00:44:21,091
has spent a lot of time
trying to reach out

1025
00:44:21,091 --> 00:44:24,228
to younger demographics
-- Colbert's show,

1026
00:44:24,228 --> 00:44:25,963
Ryan Seacrest's show.

1027
00:44:25,963 --> 00:44:30,768
Is that an indication that
the under-30 crowd is still

1028
00:44:30,768 --> 00:44:34,138
lagging in signups
and enrollment from

1029
00:44:34,138 --> 00:44:35,339
your perspective?

1030
00:44:35,339 --> 00:44:36,740
I mean, is that
really the target

1031
00:44:36,740 --> 00:44:38,542
audience still,
moving forward?

1032
00:44:38,542 --> 00:44:40,310
Mr. Earnest:
I see.

1033
00:44:40,310 --> 00:44:43,013
What I'd say about that
is I think the way that

1034
00:44:43,013 --> 00:44:45,649
I would describe it to you is
that certainly young adults --

1035
00:44:45,649 --> 00:44:49,353
many of whom are starting
out in their career --

1036
00:44:49,353 --> 00:44:52,623
have the most to gain, that
they stand to benefit from

1037
00:44:52,623 --> 00:44:57,361
the kind of strategy that
we have put in place

1038
00:44:57,361 --> 00:44:59,363
for making sure that people
have access to quality

1039
00:44:59,363 --> 00:45:03,133
and affordable health
insurance coverage.

1040
00:45:03,133 --> 00:45:06,569
And that's why we have tried
to be very clear about

1041
00:45:06,570 --> 00:45:08,572
the benefits that are
available to them just

1042
00:45:08,572 --> 00:45:09,840
by going to the website.

1043
00:45:09,840 --> 00:45:12,109
It certainly is not just young 
people who can benefit from

1044
00:45:12,109 --> 00:45:15,979
this, but they are
certainly a group

1045
00:45:15,979 --> 00:45:22,118
of people who are least
likely to be able to get

1046
00:45:22,119 --> 00:45:24,154
coverage through their
employer because they're

1047
00:45:24,154 --> 00:45:26,156
at the beginning
of their career.

1048
00:45:26,156 --> 00:45:28,424
And so many of them are
in a position to, for the

1049
00:45:28,425 --> 00:45:30,394
first time, because of
the Affordable Care Act,

1050
00:45:30,394 --> 00:45:31,662
actually have
another option.

1051
00:45:31,662 --> 00:45:33,964
And that means that they can
go on the Affordable Care Act

1052
00:45:33,964 --> 00:45:37,468
website and allow for
insurance companies

1053
00:45:37,468 --> 00:45:39,002
to compete for
their business.

1054
00:45:39,002 --> 00:45:41,205
And that kind of competition
drives down prices.

1055
00:45:41,205 --> 00:45:43,040
The Press:
But you need more

1056
00:45:43,040 --> 00:45:44,975
of those folks in there,
right, because of the risk

1057
00:45:44,975 --> 00:45:47,310
-- you just talked about, 
to bring -- to keep prices low?

1058
00:45:47,311 --> 00:45:49,713
Mr. Earnest:
Well, we certainly welcome

1059
00:45:49,713 --> 00:45:52,116
participation from everybody,
and that's why we've

1060
00:45:52,116 --> 00:45:53,283
worked hard to make
sure that everybody

1061
00:45:53,283 --> 00:45:55,786
is aware of the options
that are available

1062
00:45:55,786 --> 00:45:57,221
to them from
the website.

1063
00:45:57,221 --> 00:46:00,157
But there's no denying
that a substantial number

1064
00:46:00,157 --> 00:46:03,527
of young people in this
country have some tremendous

1065
00:46:03,527 --> 00:46:07,931
benefits awaiting them if
they go online and shop for it.

1066
00:46:07,931 --> 00:46:09,800
Mike.

1067
00:46:09,800 --> 00:46:11,768
The Press:
Back on the ruble crisis.

1068
00:46:11,768 --> 00:46:13,637
As you know, the ruble
has been down --

1069
00:46:13,637 --> 00:46:18,742
the last time I looked, about 19
percent in the past two days.

1070
00:46:18,742 --> 00:46:20,711
Lavrov is talking
about maybe moving

1071
00:46:20,711 --> 00:46:22,645
nukes into Crimea.

1072
00:46:22,646 --> 00:46:25,182
There are Russians
scrambling to buy any hard

1073
00:46:25,182 --> 00:46:27,584
goods they can today
because they're

1074
00:46:27,584 --> 00:46:29,653
afraid of
hyperinflation.

1075
00:46:29,653 --> 00:46:34,091
Is the U.S. concerned that
our efforts to punish Russia

1076
00:46:34,091 --> 00:46:37,361
over Ukraine have gone
too far, with the plunge

1077
00:46:37,361 --> 00:46:40,531
in the ruble, and that there
may be some geopolitical

1078
00:46:40,531 --> 00:46:44,234
risks here -- that there
could be some fallout

1079
00:46:44,234 --> 00:46:46,036
that could be
disruptive?

1080
00:46:46,036 --> 00:46:47,070
Mr. Earnest:
Well, Mike, I think

1081
00:46:47,070 --> 00:46:48,672
what I would say is that
the most substantial

1082
00:46:48,672 --> 00:46:52,142
geopolitical risk associated
with this situation

1083
00:46:52,142 --> 00:46:56,379
is the Russian regime
continuing to trample on the

1084
00:46:56,380 --> 00:47:00,517
basic international rules that
large countries all around

1085
00:47:00,517 --> 00:47:01,984
the globe should accept.

1086
00:47:01,985 --> 00:47:03,987
They should be
respecting the basic

1087
00:47:03,987 --> 00:47:05,989
territorial integrity
of their neighbors,

1088
00:47:05,989 --> 00:47:07,491
particularly their
smaller ones.

1089
00:47:07,491 --> 00:47:10,160
And that is a widely
accepted international norm.

1090
00:47:10,160 --> 00:47:11,995
And we're going to -- the
international community

1091
00:47:11,995 --> 00:47:14,897
is going to hold, and has
held, Russia accountable

1092
00:47:14,898 --> 00:47:17,034
for blatantly
violating them.

1093
00:47:17,034 --> 00:47:20,704
And that is a substantial
-- allowing that kind

1094
00:47:20,704 --> 00:47:28,445
of inappropriate interference
across the border with

1095
00:47:28,445 --> 00:47:33,283
Ukraine without any
consequences would have

1096
00:47:33,283 --> 00:47:38,188
significant
geopolitical downside.

1097
00:47:38,188 --> 00:47:39,256
The Press:
So what you're saying

1098
00:47:39,256 --> 00:47:42,491
is you have weighed this
and you believe that

1099
00:47:42,492 --> 00:47:45,229
-- not you, personally,
but the United States

1100
00:47:45,229 --> 00:47:48,564
has actually weighed
this and we don't think,

1101
00:47:48,565 --> 00:47:50,267
the U.S. government,
that there's too much

1102
00:47:50,267 --> 00:47:55,239
geopolitical risk with creating
-- by putting Putin's back

1103
00:47:55,239 --> 00:47:57,541
to the wall and the
specter of hyperinflation

1104
00:47:57,541 --> 00:48:00,010
in his country today?

1105
00:48:00,010 --> 00:48:02,646
Mr. Earnest:
Well, Mike, I'll be

1106
00:48:02,646 --> 00:48:04,014
as direct as I can about
this, which is that

1107
00:48:04,014 --> 00:48:06,283
the reason that we have
acted in the first place

1108
00:48:06,283 --> 00:48:08,051
and the reason that you've
seen the United States

1109
00:48:08,051 --> 00:48:10,220
work so closely with our
allies in Europe and

1110
00:48:10,220 --> 00:48:13,957
around the world to isolate 
Russia is because we are

1111
00:48:13,957 --> 00:48:16,526
concerned about Vladimir Putin and
the Russian regime blatantly

1112
00:48:16,526 --> 00:48:19,363
violating generally accepted
international norms.

1113
00:48:19,363 --> 00:48:21,365
They have done this
by inappropriately

1114
00:48:21,365 --> 00:48:23,366
interfering with their
neighbors across

1115
00:48:23,367 --> 00:48:25,435
an internationally
accepted border.

1116
00:48:25,435 --> 00:48:27,437
And that's why you've
seen the international

1117
00:48:27,437 --> 00:48:29,439
community respond in
coordinated fashion

1118
00:48:29,439 --> 00:48:32,174
because they're concerned
about demonstrating

1119
00:48:32,175 --> 00:48:34,177
to Russia and to other
countries in the world

1120
00:48:34,177 --> 00:48:37,314
that may be considering
similar actions that the

1121
00:48:37,314 --> 00:48:40,216
international community
will not stand for that

1122
00:48:40,217 --> 00:48:42,552
kind of blatant violation
of international

1123
00:48:42,552 --> 00:48:43,854
norms and rules.

1124
00:48:43,854 --> 00:48:44,855
The Press:
And last follow-up --

1125
00:48:44,855 --> 00:48:48,492
would you say that this
plunge of the ruble

1126
00:48:48,492 --> 00:48:49,626
and the scrambling around
the country, people

1127
00:48:49,626 --> 00:48:52,129
trying to buy hard
goods, is a sign

1128
00:48:52,129 --> 00:48:54,897
of success of
U.S. policy?

1129
00:48:54,898 --> 00:48:55,866
Mr. Earnest:
I think it is a sign

1130
00:48:55,866 --> 00:48:57,934
of the failure of
Vladimir Putin's strategy

1131
00:48:57,934 --> 00:49:02,072
to try to buck up his
country; that right now,

1132
00:49:02,072 --> 00:49:04,975
he and his country are
isolated from the broader

1133
00:49:04,975 --> 00:49:06,476
international
community.

1134
00:49:06,476 --> 00:49:08,478
They are taking
desperate actions to try

1135
00:49:08,478 --> 00:49:10,480
to shore up the strength
of their currency.

1136
00:49:10,480 --> 00:49:13,016
They're enduring
significant downgrades

1137
00:49:13,016 --> 00:49:15,519
as it relates to their
credit worthiness and

1138
00:49:15,519 --> 00:49:18,587
as it relates to longer-term
economic projections

1139
00:49:18,588 --> 00:49:19,823
about their growth.

1140
00:49:19,823 --> 00:49:21,825
The fact of the matter
is Vladimir Putin

1141
00:49:21,825 --> 00:49:24,160
actually is the person
in the world with

1142
00:49:24,161 --> 00:49:26,830
the most consequential
role to play in trying

1143
00:49:26,830 --> 00:49:28,432
to reverse this trend.

1144
00:49:28,432 --> 00:49:30,433
If merely he will live
up to the kinds

1145
00:49:30,434 --> 00:49:33,036
of commitments that he's
already made in the

1146
00:49:33,036 --> 00:49:35,706
context of the Minsk
negotiations, you could

1147
00:49:35,706 --> 00:49:37,674
see the international
community start to relax

1148
00:49:37,674 --> 00:49:40,043
these sanctions in a way that 
would relieve the pressure

1149
00:49:40,043 --> 00:49:43,046
on the people of Russia and
on the Russian economy.

1150
00:49:43,046 --> 00:49:45,048
And that would be
good for the world.

1151
00:49:45,048 --> 00:49:47,049
It would send a very clear
signal that respecting

1152
00:49:47,050 --> 00:49:49,286
these basic international
norms is important,

1153
00:49:49,286 --> 00:49:51,421
and it would also
allow President Putin

1154
00:49:51,421 --> 00:49:53,689
to demonstrate to his people
that he's actually concerned

1155
00:49:53,690 --> 00:49:55,992
about their wellbeing and
the wellbeing of their economy.

1156
00:49:55,992 --> 00:49:56,693
The Press:
Can I follow up?

1157
00:49:56,693 --> 00:49:57,694
Mr. Earnest:
Go ahead, Jon.

1158
00:49:57,694 --> 00:49:58,695
The Press:
Just on that --

1159
00:49:58,695 --> 00:50:02,999
and this, I think what
we're getting at here --

1160
00:50:02,999 --> 00:50:07,937
isn't there a risk
that the success

1161
00:50:07,938 --> 00:50:10,841
of the sanctions, as you put
it, combined with what's

1162
00:50:10,841 --> 00:50:14,444
happened in the oil markets
and what's happened to Russia,

1163
00:50:14,444 --> 00:50:18,181
that it will have the
exact opposite effect

1164
00:50:18,181 --> 00:50:20,484
of what U.S. policy
is trying to do,

1165
00:50:20,484 --> 00:50:22,652
which is to get
Putin to back down?

1166
00:50:22,652 --> 00:50:25,422
What if it provokes
Putin to act

1167
00:50:25,422 --> 00:50:26,690
in a more
aggressive way?

1168
00:50:26,690 --> 00:50:28,058
And we've already seen
some signs of this --

1169
00:50:28,058 --> 00:50:29,993
the aggressive actions,
I would add also,

1170
00:50:29,993 --> 00:50:33,263
of the Russian air
force in recent days.

1171
00:50:33,263 --> 00:50:35,966
And what do we do
if that's the case?

1172
00:50:35,966 --> 00:50:37,701
I mean, now you've done
the sanctions thing.

1173
00:50:37,701 --> 00:50:38,935
You certainly aren't
going to hurt the

1174
00:50:38,935 --> 00:50:40,337
Russian economy
any more.

1175
00:50:40,337 --> 00:50:41,872
Mr. Earnest:
Well, I think --

1176
00:50:41,872 --> 00:50:42,772
The Press:
Or are you?

1177
00:50:42,773 --> 00:50:43,940
I mean --

1178
00:50:43,940 --> 00:50:44,608
Mr. Earnest:
Well, I think I'd

1179
00:50:44,608 --> 00:50:46,610
say a couple of
things about that.

1180
00:50:46,610 --> 00:50:51,415
I think that the -- once again, 
going back to where we were,

1181
00:50:51,415 --> 00:50:57,421
the consequences of allowing 
Putin to send the army,

1182
00:50:57,421 --> 00:51:01,057
or at least Russian military 
personnel across the border

1183
00:51:01,057 --> 00:51:05,895
into Ukraine to support the 
activities of the separatists

1184
00:51:05,896 --> 00:51:10,801
in eastern Ukraine, allowing 
that to go without consequences

1185
00:51:10,801 --> 00:51:12,369
would send a very dangerous 
signal to President Putin.

1186
00:51:12,369 --> 00:51:14,371
It would also send a very
dangerous signal to other

1187
00:51:14,371 --> 00:51:18,375
countries around the world
that may have designs

1188
00:51:18,375 --> 00:51:20,777
in improperly interfering
with some of their

1189
00:51:20,777 --> 00:51:21,912
neighbors as well.

1190
00:51:21,912 --> 00:51:23,913
So seeing the
international community

1191
00:51:23,914 --> 00:51:29,019
act in coordinated fashion
to counter those steps

1192
00:51:29,019 --> 00:51:31,020
I think does send
an important signal

1193
00:51:31,021 --> 00:51:35,592
and does ensure that
U.S. interests and our

1194
00:51:35,592 --> 00:51:41,832
broader interest in a
peaceful world are advanced.

1195
00:51:41,832 --> 00:51:44,201
Now, there's no doubt --
the second thing I'll say

1196
00:51:44,201 --> 00:51:48,438
is this: As the sanctions
regime remains in place,

1197
00:51:48,438 --> 00:51:50,674
the impact it has on
the economy in Russia

1198
00:51:50,674 --> 00:51:52,542
continues to grow.

1199
00:51:52,542 --> 00:51:54,744
There haven't been
substantial increases in

1200
00:51:54,744 --> 00:51:57,013
our sanctions regime in
the last couple of months,

1201
00:51:57,013 --> 00:51:59,982
but we've seen that as
the weeks and months roll

1202
00:51:59,983 --> 00:52:02,786
by, the impact on the
Russian economy continues

1203
00:52:02,786 --> 00:52:06,456
to bite even harder.

1204
00:52:06,456 --> 00:52:08,525
And that is a testament to
the way in which Russia

1205
00:52:08,525 --> 00:52:11,061
is isolated, and it's a
testament to the kind

1206
00:52:11,061 --> 00:52:13,797
of risk that President Putin
runs when he fails to live

1207
00:52:13,797 --> 00:52:15,799
up to the kinds of
commitments that he's

1208
00:52:15,799 --> 00:52:18,435
already made, because the
international community

1209
00:52:18,435 --> 00:52:20,937
has said once you
demonstrate a willingness

1210
00:52:20,937 --> 00:52:22,939
to start living up to
these commitments

1211
00:52:22,939 --> 00:52:24,941
and respecting basic
international norms,

1212
00:52:24,941 --> 00:52:26,942
we can start to relax
our sanctions regime

1213
00:52:26,943 --> 00:52:29,079
in a way that will relieve
the pressure on your economy.

1214
00:52:29,079 --> 00:52:31,848
So again, it is President
Putin's decision to make

1215
00:52:31,848 --> 00:52:35,719
here about what he wants
to do that's in the best

1216
00:52:35,719 --> 00:52:40,824
interest of his people and
the country that he leads.

1217
00:52:40,824 --> 00:52:43,927
And this is the same
fundamental question

1218
00:52:43,927 --> 00:52:46,596
that President Putin
faced this spring.

1219
00:52:46,596 --> 00:52:48,598
It's the same question
that he faced this summer

1220
00:52:48,598 --> 00:52:51,034
as the sanctions regime
was put in place.

1221
00:52:51,034 --> 00:52:53,036
It's the same question
that he faced this fall

1222
00:52:53,036 --> 00:52:55,038
as the sanctions
regime was increased.

1223
00:52:55,038 --> 00:52:57,440
And it's the same question
that he faces this winter

1224
00:52:57,440 --> 00:53:01,478
as the sanctions that are
in place start to clamp

1225
00:53:01,478 --> 00:53:04,014
down even tighter on
the Russian economy.

1226
00:53:04,014 --> 00:53:06,016
The Press: But do you see
a possibility that the

1227
00:53:06,016 --> 00:53:07,150
decision he will make
will be to act more

1228
00:53:07,150 --> 00:53:09,986
aggressively and
more dangerously?

1229
00:53:09,986 --> 00:53:11,988
Mr. Earnest:
I think what I would say

1230
00:53:11,988 --> 00:53:15,424
is that if the international
community were to turn

1231
00:53:15,425 --> 00:53:18,828
a blind eye to his
blatant violation

1232
00:53:18,828 --> 00:53:23,934
of the border with Ukraine,
that would only encourage

1233
00:53:23,934 --> 00:53:25,936
him to take more
aggressive action

1234
00:53:25,936 --> 00:53:30,140
against other countries
along his border.

1235
00:53:30,140 --> 00:53:32,275
I don't think anybody
has stood up here

1236
00:53:32,275 --> 00:53:34,945
and suggested that putting
in place the sanctions

1237
00:53:34,945 --> 00:53:37,414
regime would automatically
make Vladimir Putin

1238
00:53:37,414 --> 00:53:38,415
a model citizen.

1239
00:53:38,415 --> 00:53:41,651
That was never the
prediction, and that

1240
00:53:41,651 --> 00:53:42,886
certainly hasn't
come to pass.

1241
00:53:42,886 --> 00:53:43,954
The Press:
But the aim

1242
00:53:43,954 --> 00:53:45,288
is to get him
to back down.

1243
00:53:45,288 --> 00:53:47,290
Mr. Earnest:
The aim is to sharpen

1244
00:53:47,290 --> 00:53:48,758
the choice
that he faces.

1245
00:53:48,758 --> 00:53:51,995
And that choice
between interfering

1246
00:53:51,995 --> 00:53:55,598
in Ukraine and looking out
for the economic wellbeing

1247
00:53:55,599 --> 00:53:58,001
of the people of his
country does come into more

1248
00:53:58,001 --> 00:54:00,503
sharp relief
every single day.

1249
00:54:00,503 --> 00:54:01,504
Mark.

1250
00:54:01,504 --> 00:54:02,505
The Press:
Yes, Josh, one more

1251
00:54:02,505 --> 00:54:03,506
question along
those lines.

1252
00:54:03,506 --> 00:54:06,276
Is there a danger that the
real pain that average

1253
00:54:06,276 --> 00:54:09,412
Russians are feeling
that they will respond

1254
00:54:09,412 --> 00:54:11,180
to it as they have
frankly responded to some

1255
00:54:11,181 --> 00:54:13,883
of the earlier layers of
sanctions, and that's

1256
00:54:13,883 --> 00:54:16,752
to rally around Putin
even more and maybe fan

1257
00:54:16,753 --> 00:54:19,489
the flames of Russian
nationalism and

1258
00:54:19,489 --> 00:54:20,557
some would say
xenophobia?

1259
00:54:20,557 --> 00:54:23,026
Mr. Earnest:
I'm certainly no expert

1260
00:54:23,026 --> 00:54:26,029
on Russian public opinion
or Russian politics.

1261
00:54:26,029 --> 00:54:28,965
My predecessor certainly had 
more experience in this area.

1262
00:54:28,965 --> 00:54:31,001
But I do think that in
the same way that there

1263
00:54:31,001 --> 00:54:33,837
is a choice that's
facing President Putin,

1264
00:54:33,837 --> 00:54:36,373
the Russian people are acutely
aware of that choice too.

1265
00:54:36,373 --> 00:54:40,076
They understand very
clearly that the decisions

1266
00:54:40,076 --> 00:54:42,078
that President Putin is
making as it relates

1267
00:54:42,078 --> 00:54:44,214
to their foreign policy
in Ukraine is having

1268
00:54:44,214 --> 00:54:46,182
an impact on
their economy.

1269
00:54:46,182 --> 00:54:49,685
And it ultimately will
be up to their leader to

1270
00:54:49,686 --> 00:54:53,490
decide if he's willing to
roll back some of those

1271
00:54:53,490 --> 00:54:55,491
decisions so that he
can try to protect

1272
00:54:55,492 --> 00:54:57,494
the country's
economic wellbeing.

1273
00:54:57,494 --> 00:54:59,496
I think that fundamental
choice is well

1274
00:54:59,496 --> 00:55:01,665
known among the
Russian people.

1275
00:55:01,665 --> 00:55:03,767
There is an analogy here,
and I always hesitate

1276
00:55:03,767 --> 00:55:06,903
to draw analogies between
different situations,

1277
00:55:06,903 --> 00:55:10,173
and I often am in a position
of encouraging you not

1278
00:55:10,173 --> 00:55:14,611
to do so, but I will just
hesitatingly wade into

1279
00:55:14,611 --> 00:55:19,214
this and suggest that the
sanctions regime that the

1280
00:55:19,215 --> 00:55:21,217
United States worked
with the international

1281
00:55:21,217 --> 00:55:24,387
community to put in place
against Iran did have the

1282
00:55:24,387 --> 00:55:28,024
effect of compelling
Iran's regime to come

1283
00:55:28,024 --> 00:55:29,993
to the negotiating
table with the

1284
00:55:29,993 --> 00:55:30,994
international
community.

1285
00:55:30,994 --> 00:55:33,263
And that was at least in
part based on some public

1286
00:55:33,263 --> 00:55:36,499
pressure that the Iranian
political leadership

1287
00:55:36,499 --> 00:55:38,500
was feeling, because
they understood --

1288
00:55:38,501 --> 00:55:42,238
the Iranian population
understood that the kinds

1289
00:55:42,238 --> 00:55:44,841
of foreign policy national
security decisions

1290
00:55:44,841 --> 00:55:47,277
that the Iranian leadership
was making was having

1291
00:55:47,277 --> 00:55:49,412
a very negative effect
on their economy.

1292
00:55:49,412 --> 00:55:51,614
The same dynamic is
in play in Russia --

1293
00:55:51,614 --> 00:55:53,583
that the decisions that
are being made by the

1294
00:55:53,583 --> 00:55:56,786
Russian regime in terms
of flouting generally

1295
00:55:56,786 --> 00:55:58,822
accepted international
standards and Ukraine's

1296
00:55:58,822 --> 00:56:03,059
sovereignty is also
having a negative impact

1297
00:56:03,059 --> 00:56:04,594
on the Russian economy.

1298
00:56:04,594 --> 00:56:07,464
So Russia's leaders
understand that.

1299
00:56:07,464 --> 00:56:09,466
Russia's citizens
understand that too.

1300
00:56:09,466 --> 00:56:11,701
Again, I'm no expert
in terms of trying

1301
00:56:11,701 --> 00:56:15,805
to figure out or predict
exactly what their

1302
00:56:15,805 --> 00:56:17,040
reaction will be.

1303
00:56:17,040 --> 00:56:19,609
But based on the
reaction that we've seen

1304
00:56:19,609 --> 00:56:24,047
in a similar situation in Iran,
and I think based on the

1305
00:56:24,047 --> 00:56:27,016
fact that there is a lot
of transparency about

1306
00:56:27,016 --> 00:56:30,220
what exactly is happening
here, I do think that

1307
00:56:30,220 --> 00:56:33,089
the logical conclusion of
many Russian citizens would

1308
00:56:33,089 --> 00:56:36,625
be to say, hey, it
sure would be nice for

1309
00:56:36,626 --> 00:56:40,764
us to have more influence on
what's happening in Ukraine,

1310
00:56:40,764 --> 00:56:42,766
but, gee, it also sure
would be nice to have some

1311
00:56:42,766 --> 00:56:47,370
confidence that the value
of my retirement savings

1312
00:56:47,370 --> 00:56:48,638
is not going
through the floor.

1313
00:56:48,638 --> 00:56:49,939
The Press:
And you think they

1314
00:56:49,939 --> 00:56:52,207
see that choice despite
the pretty iron control

1315
00:56:52,208 --> 00:56:55,011
of the state-controlled
media and what the average

1316
00:56:55,011 --> 00:56:57,580
Russian sees when they
turn on the TV or even --

1317
00:56:57,580 --> 00:56:59,582
Mr. Earnest:
I do, primarily because

1318
00:56:59,582 --> 00:57:04,654
I think that as much
as that regime tries

1319
00:57:04,654 --> 00:57:08,625
to limit the access to
information of the citizens,

1320
00:57:08,625 --> 00:57:12,195
I think that the extreme 
economic consequences

1321
00:57:12,195 --> 00:57:16,032
of this decision are
readily apparent to every

1322
00:57:16,032 --> 00:57:18,034
Russian citizen, even
those who are not

1323
00:57:18,034 --> 00:57:21,604
consuming state media.

1324
00:57:21,604 --> 00:57:22,605
Juliet.

1325
00:57:22,605 --> 00:57:23,506
The Press:
Josh, on the question

1326
00:57:23,506 --> 00:57:25,375
of nominees, as you
mentioned earlier,

1327
00:57:25,375 --> 00:57:27,443
you're clearly making some 
progress in moving some

1328
00:57:27,443 --> 00:57:28,545
of those through
the Senate.

1329
00:57:28,545 --> 00:57:30,513
But, of course, next year you 
face a Republican-controlled

1330
00:57:30,513 --> 00:57:32,315
Senate and
different rules.

1331
00:57:32,315 --> 00:57:34,751
How confident are you that
the President can get

1332
00:57:34,751 --> 00:57:37,120
the nominees he wants,
whether it's in the executive

1333
00:57:37,120 --> 00:57:40,290
or judicial branch, to
really implement policy

1334
00:57:40,290 --> 00:57:43,993
and achieve the goals
that he's worked on?

1335
00:57:43,993 --> 00:57:45,261
Mr. Earnest:
Well, I would anticipate

1336
00:57:45,261 --> 00:57:47,397
that there will be
some members of the

1337
00:57:47,397 --> 00:57:49,632
United States Senate on the 
Republican side of the aisle

1338
00:57:49,632 --> 00:57:56,306
who will attempt to capitalize
on their new majority

1339
00:57:56,306 --> 00:57:58,141
to prevent the President
from appointing highly

1340
00:57:58,141 --> 00:58:00,677
qualified individuals to
serve the American people.

1341
00:58:00,677 --> 00:58:04,614
I don't think that is a
strategy that will lead

1342
00:58:04,614 --> 00:58:06,916
to long-term political success 
for the Republican Party

1343
00:58:06,916 --> 00:58:08,985
or even for individual members 
of the United States Senate.

1344
00:58:08,985 --> 00:58:11,588
I could be wrong about
that, but I'll hazard

1345
00:58:11,588 --> 00:58:14,591
that guess here at the
end of this year.

1346
00:58:14,591 --> 00:58:16,593
The United States Senate
-- and I think this

1347
00:58:16,593 --> 00:58:18,595
is generally understood by
the American people --

1348
00:58:18,595 --> 00:58:20,596
has a responsibility to
give careful consideration

1349
00:58:20,597 --> 00:58:22,599
to individuals that the
President believes are

1350
00:58:22,599 --> 00:58:24,601
highly qualified to serve
the American people

1351
00:58:24,601 --> 00:58:26,603
in senior federal
government positions.

1352
00:58:26,603 --> 00:58:28,605
The American people
understand that the Senate

1353
00:58:28,605 --> 00:58:30,573
has a responsibility to
consider those nominees

1354
00:58:30,573 --> 00:58:32,875
carefully and
to vote on them.

1355
00:58:32,876 --> 00:58:34,878
And that certainly is the
expectation that this

1356
00:58:34,878 --> 00:58:37,146
administration has had of
Democratic-led Senates,

1357
00:58:37,146 --> 00:58:39,148
and it's an expectation
that we'll have

1358
00:58:39,148 --> 00:58:40,650
of Republican-led
Senates too.

1359
00:58:40,650 --> 00:58:42,151
Major.

1360
00:58:42,151 --> 00:58:43,919
The Press:
Josh, let me reverse

1361
00:58:43,920 --> 00:58:46,956
the question on the
Russian economy.

1362
00:58:46,956 --> 00:58:49,559
What would it take
for the United States

1363
00:58:49,559 --> 00:58:53,897
to be amenable to reducing
the sanctions if, in fact,

1364
00:58:53,897 --> 00:58:57,834
Russia began to
economically --

1365
00:58:57,834 --> 00:59:00,303
Mr. Earnest:
It would take President Putin

1366
00:59:00,303 --> 00:59:02,071
and the Russian regime
living up to the kinds

1367
00:59:02,071 --> 00:59:04,774
of commitments they made in
Minsk, and it's starting

1368
00:59:04,774 --> 00:59:07,210
to reflect a genuine
commitment to respecting

1369
00:59:07,210 --> 00:59:09,212
the territorial integrity
and the sovereignty

1370
00:59:09,212 --> 00:59:10,613
of the nation
of Ukraine.

1371
00:59:10,613 --> 00:59:12,214
The Press:
What would that entail,

1372
00:59:12,215 --> 00:59:14,884
the second part, giving
out -- giving back Crimea?

1373
00:59:14,884 --> 00:59:16,886
Mr. Earnest:
It's hard, again, to sort

1374
00:59:16,886 --> 00:59:20,156
of lay out an exact
prescription,

1375
00:59:20,156 --> 00:59:23,092
but there are specific
commitments that President Putin

1376
00:59:23,092 --> 00:59:26,129
did make to the Ukrainians and
to the international community

1377
00:59:26,129 --> 00:59:29,766
in the context of
the Minsk talks.

1378
00:59:29,766 --> 00:59:31,701
And there are some basic
things that they can

1379
00:59:31,701 --> 00:59:35,738
do as it relates to the movement
of personnel, the movement

1380
00:59:35,738 --> 00:59:39,042
of equipment and materiel
across the border.

1381
00:59:39,042 --> 00:59:41,778
Those are things that
we have pretty loudly

1382
00:59:41,778 --> 00:59:44,747
complained about, and we
have done so because that

1383
00:59:44,747 --> 00:59:46,749
violates a basic
international norm.

1384
00:59:46,749 --> 00:59:52,355
You can't just send your
military personnel or your

1385
00:59:52,355 --> 00:59:55,024
-- or military equipment
to citizens of another

1386
00:59:55,024 --> 00:59:58,027
country against the will
of the host government.

1387
00:59:58,027 --> 01:00:02,365
So we have made very clear
to President Putin --

1388
01:00:02,365 --> 01:00:04,366
and when I say "we," I mean
not just the United States

1389
01:00:04,367 --> 01:00:06,369
but I mean the
international community

1390
01:00:06,369 --> 01:00:08,371
made very clear about what
our concerns are about

1391
01:00:08,371 --> 01:00:10,373
their behavior and what
are the kinds of steps

1392
01:00:10,373 --> 01:00:13,409
they can take that would
precipitate at least the

1393
01:00:13,409 --> 01:00:15,945
relaxing of some of these
sanctions that have had

1394
01:00:15,945 --> 01:00:17,947
such a terrible toll
on their economy.

1395
01:00:17,947 --> 01:00:19,949
The Press: Could some
sanctions be released even

1396
01:00:19,949 --> 01:00:21,951
with Russian forces
dominating Crimea?

1397
01:00:21,951 --> 01:00:24,287
Mr. Earnest:
Well, I'm not going to --

1398
01:00:24,287 --> 01:00:26,955
I'm not in a position to
negotiate it out here.

1399
01:00:26,956 --> 01:00:30,460
We certainly are very
concerned about how Russia

1400
01:00:30,460 --> 01:00:33,429
has attempted to annex
Crimea, and we're

1401
01:00:33,429 --> 01:00:37,033
concerned about their
activities there as well.

1402
01:00:37,033 --> 01:00:38,768
But there are specific
commitments that have been

1403
01:00:38,768 --> 01:00:43,773
made in the context of the
Minsk talks that would --

1404
01:00:43,773 --> 01:00:47,010
that if they lived up
to them and we saw

1405
01:00:47,010 --> 01:00:49,012
a corresponding
commitment to these basic

1406
01:00:49,012 --> 01:00:51,714
international norms where
I think you would see the

1407
01:00:51,714 --> 01:00:53,683
international community --
this is a commitment that

1408
01:00:53,683 --> 01:00:56,319
the President made right
after the conclusion

1409
01:00:56,319 --> 01:00:58,554
of the NATO meeting --
to start to relax some

1410
01:00:58,554 --> 01:01:00,823
of these sanctions in a
way that would relieve

1411
01:01:00,823 --> 01:01:03,192
at least some of the pressure
on the Russian economy.

1412
01:01:03,192 --> 01:01:04,227
The Press:
You mentioned a few

1413
01:01:04,227 --> 01:01:06,229
moments ago that the White
House, the administration

1414
01:01:06,229 --> 01:01:09,131
was in the loop as
discussions took place

1415
01:01:09,132 --> 01:01:12,635
on this particular
provision, taking away

1416
01:01:12,635 --> 01:01:15,004
some component
of Dodd-Frank.

1417
01:01:15,004 --> 01:01:17,339
When you say "in the
loop" as the discussions

1418
01:01:17,340 --> 01:01:20,176
took place, I take it to
mean the administration

1419
01:01:20,176 --> 01:01:22,478
aware of and did not
strongly object.

1420
01:01:22,478 --> 01:01:24,847
Mr. Earnest:
When I said

1421
01:01:24,847 --> 01:01:26,949
"in the loop," I meant
on the discussions about

1422
01:01:26,949 --> 01:01:29,352
the writing of
the omnibus.

1423
01:01:29,352 --> 01:01:32,721
I have declined to get
into sort of the details

1424
01:01:32,722 --> 01:01:37,593
of the many conversations
that took place across many

1425
01:01:37,593 --> 01:01:40,263
different open channels,
open lines of communication

1426
01:01:40,263 --> 01:01:42,298
between the administration
and Capitol Hill.

1427
01:01:42,298 --> 01:01:43,499
The Press:
Let me discourage

1428
01:01:43,499 --> 01:01:44,634
you from so declining.

1429
01:01:44,634 --> 01:01:46,069
(laughter)

1430
01:01:46,069 --> 01:01:48,071
Was the administration
blindsided by this provision?

1431
01:01:48,071 --> 01:01:51,107
Or did it have some
visibility, some awareness

1432
01:01:51,107 --> 01:01:53,942
that it was in the omnibus
and, considering all the

1433
01:01:53,943 --> 01:01:57,413
other things that were in
there, not objectionable

1434
01:01:57,413 --> 01:01:59,215
enough to issue
a veto threat?

1435
01:01:59,215 --> 01:02:02,985
Mr. Earnest:
Well, again,

1436
01:02:02,985 --> 01:02:05,288
I can't account for
specific provisions based

1437
01:02:05,288 --> 01:02:07,557
on specific conversations,
primarily because

1438
01:02:07,557 --> 01:02:09,292
I don't want to
steer you wrong.

1439
01:02:09,292 --> 01:02:11,694
We had multiple officials at
the Treasury Department,

1440
01:02:11,694 --> 01:02:13,229
multiple officials here
in the West Wing

1441
01:02:13,229 --> 01:02:13,729
of the White House.

1442
01:02:13,729 --> 01:02:14,230
The Press:
You can't say you

1443
01:02:14,230 --> 01:02:14,964
were blindsided?

1444
01:02:14,964 --> 01:02:15,765
Mr. Earnest:
Well, what I can

1445
01:02:15,765 --> 01:02:17,767
say is that certainly
no one is surprised

1446
01:02:17,767 --> 01:02:20,203
by the fact that the
President is strongly opposed

1447
01:02:20,203 --> 01:02:23,038
to this specific provision, 
because when it was moved

1448
01:02:23,039 --> 01:02:24,874
through the House
of Representatives

1449
01:02:24,874 --> 01:02:27,577
as a standalone
measure, we articulated

1450
01:02:27,577 --> 01:02:28,578
our strong
opposition to it.

1451
01:02:28,578 --> 01:02:29,579
The Press:
But you know as well

1452
01:02:29,579 --> 01:02:30,746
as I do that there are
things in the context

1453
01:02:30,746 --> 01:02:33,649
of those negotiations in which 
you drew very strong objections

1454
01:02:33,649 --> 01:02:36,319
to and did not end up in the 
bill, the things you pushed

1455
01:02:36,319 --> 01:02:38,955
for and sent signals about
that did end up in the bill.

1456
01:02:38,955 --> 01:02:41,524
I'm trying to find out
where this fell in that

1457
01:02:41,524 --> 01:02:42,924
continuum of
negotiations.

1458
01:02:42,925 --> 01:02:44,894
Mr. Earnest:
That's a worthy pursuit.

1459
01:02:44,894 --> 01:02:47,529
It's not one I'm
able to assist with.

1460
01:02:47,530 --> 01:02:50,500
But I would concede the broader
point that you're making,

1461
01:02:50,500 --> 01:02:54,337
which is this is a compromise
and it did mean that

1462
01:02:54,337 --> 01:02:56,939
the administration was in 
a position and the President

1463
01:02:56,939 --> 01:02:58,941
is in a position where
he's prepared to sign

1464
01:02:58,941 --> 01:03:00,942
a piece of legislation
that includes some things

1465
01:03:00,943 --> 01:03:01,944
in it that he
doesn't like.

1466
01:03:01,944 --> 01:03:05,581
But it is the essence of
the kind of compromise,

1467
01:03:05,581 --> 01:03:08,584
an attempt to find common ground 
in pursuit of a broader goal,

1468
01:03:08,584 --> 01:03:11,120
that's going to be critical
to our country's success

1469
01:03:11,120 --> 01:03:13,455
and certainly the success
of the next Congress over

1470
01:03:13,456 --> 01:03:14,724
the next two years.

1471
01:03:14,724 --> 01:03:15,458
Ed.

1472
01:03:15,458 --> 01:03:16,459
The Press:
Just back on what

1473
01:03:16,459 --> 01:03:18,461
Mr. Acosta was asking
earlier about Afghanistan.

1474
01:03:18,461 --> 01:03:20,863
The President yesterday said 
basically the war in Afghanistan

1475
01:03:20,863 --> 01:03:22,865
is coming to an end at
the end of the month.

1476
01:03:22,865 --> 01:03:25,301
And then hours later, the 
Taliban goes into Pakistan,

1477
01:03:25,301 --> 01:03:30,106
goes into a school, and kills 
over 140 people -- mostly kids.

1478
01:03:30,106 --> 01:03:32,909
Is the Taliban sending
a signal that the war

1479
01:03:32,909 --> 01:03:35,678
is not over, and once
we leave this is going

1480
01:03:35,678 --> 01:03:39,080
to be a replay of Iraq -- we
pull out, ISIS fills the vacuum?

1481
01:03:39,081 --> 01:03:41,050
Mr. Earnest:
Well, Ed, this is the

1482
01:03:41,050 --> 01:03:42,451
Pakistani Taliban that
has claimed credit

1483
01:03:42,451 --> 01:03:43,486
for this
particular attack.

1484
01:03:43,486 --> 01:03:44,620
And what they said was
that they were --

1485
01:03:44,620 --> 01:03:45,788
The Press:
And attacks from the

1486
01:03:45,788 --> 01:03:47,790
Taliban on the Afghan
side have been increasing

1487
01:03:47,790 --> 01:03:50,058
in recent days as well.

1488
01:03:50,059 --> 01:03:51,060
Mr. Earnest:
Well, but

1489
01:03:51,060 --> 01:03:53,062
as it relates to this
specific school,

1490
01:03:53,062 --> 01:03:55,064
what the Pakistani Taliban
-- again, they claimed

1491
01:03:55,064 --> 01:03:57,066
credit or responsibility
for this attack.

1492
01:03:57,066 --> 01:03:59,067
I'm not in a
position to say from

1493
01:03:59,068 --> 01:04:01,070
here exactly who
was responsible.

1494
01:04:01,070 --> 01:04:03,072
This is something that,
as you would expect,

1495
01:04:03,072 --> 01:04:05,141
Pakistani authorities
are looking into.

1496
01:04:05,141 --> 01:04:07,944
But what those who claimed 
responsibility for this attack

1497
01:04:07,944 --> 01:04:12,048
have said is that they were
reacting to the latest

1498
01:04:12,048 --> 01:04:15,017
Pakistani military
offensive in this restive

1499
01:04:15,017 --> 01:04:17,153
region of the country.

1500
01:04:17,153 --> 01:04:20,055
But to your more broad
question about the --

1501
01:04:20,056 --> 01:04:21,324
The Press:
Because the President

1502
01:04:21,324 --> 01:04:22,325
himself yesterday
said it's not

1503
01:04:22,325 --> 01:04:24,327
a great situation
in Afghanistan.

1504
01:04:24,327 --> 01:04:26,329
He was honest about that,
so that's my question.

1505
01:04:26,329 --> 01:04:28,331
Mr. Earnest:
And it's a good one,

1506
01:04:28,331 --> 01:04:30,333
and it's one that our
military and the President's

1507
01:04:30,333 --> 01:04:32,368
national security team as a
whole has been very focused on.

1508
01:04:32,368 --> 01:04:36,305
That is why the enduring
mission of our military

1509
01:04:36,305 --> 01:04:39,174
men and women who continue
to serve in Afghanistan

1510
01:04:39,175 --> 01:04:40,243
is focused on
two things.

1511
01:04:40,243 --> 01:04:42,712
One is the kinds of
counterterrorism

1512
01:04:42,712 --> 01:04:46,682
activities that will benefit 
American national security,

1513
01:04:46,682 --> 01:04:49,785
first and foremost, but also 
have a benefit on the stability

1514
01:04:49,785 --> 01:04:52,053
of the central government
in Afghanistan.

1515
01:04:52,054 --> 01:04:53,956
They will also be engaged
in an ongoing effort

1516
01:04:53,956 --> 01:04:59,795
to train and advise and assist
Afghan security forces.

1517
01:04:59,795 --> 01:05:01,764
This has been a
long-running effort.

1518
01:05:01,764 --> 01:05:04,233
And there is no doubt --
and I think everybody even

1519
01:05:04,233 --> 01:05:07,169
at the Pentagon would
concede -- that there have

1520
01:05:07,169 --> 01:05:10,673
been fits and starts associated
with this training program.

1521
01:05:10,673 --> 01:05:13,975
There is no doubt -- or
there is no denying the

1522
01:05:13,976 --> 01:05:15,978
fact I think at this
point, however, that

1523
01:05:15,978 --> 01:05:18,014
substantial progress has
been made, that we have

1524
01:05:18,014 --> 01:05:20,716
seen the capability and
competence of Afghan

1525
01:05:20,716 --> 01:05:23,219
security forces improve
rather significantly over

1526
01:05:23,219 --> 01:05:25,621
the last several years.

1527
01:05:25,621 --> 01:05:31,460
And their continued
improvement continues

1528
01:05:31,460 --> 01:05:33,429
to be in the national
security interest

1529
01:05:33,429 --> 01:05:34,597
of the United States.

1530
01:05:34,597 --> 01:05:36,365
And we're going to see a
sustained commitment

1531
01:05:36,365 --> 01:05:37,399
to that effort.

1532
01:05:37,400 --> 01:05:38,334
The Press:
Didn't we hear the

1533
01:05:38,334 --> 01:05:40,136
same from the President,
though, at the end of 2011?

1534
01:05:40,136 --> 01:05:42,471
"We're leaving behind
a [sovereign], stable

1535
01:05:42,471 --> 01:05:44,307
self-reliant Iraq..."

1536
01:05:44,307 --> 01:05:46,308
-- almost the same words
he just said about

1537
01:05:46,309 --> 01:05:48,611
Afghanistan -- and then it
collapses, ISIS goes

1538
01:05:48,611 --> 01:05:50,246
in and fills
the vacuum.

1539
01:05:50,246 --> 01:05:52,248
How worried are you we're
going to have a replay?

1540
01:05:52,248 --> 01:05:53,249
Mr. Earnest:
But, Ed, I do

1541
01:05:53,249 --> 01:05:55,283
think this highlights
a key difference from

1542
01:05:55,284 --> 01:05:57,953
the strategy that this
President has pursued from

1543
01:05:57,953 --> 01:06:00,456
the strategy that was pursued
by the previous administration:

1544
01:06:00,456 --> 01:06:02,625
No longer can the United
States be in the situation

1545
01:06:02,625 --> 01:06:04,760
where we're doing it
for the host country.

1546
01:06:04,760 --> 01:06:06,762
In the situation with
Iraq, they were left

1547
01:06:06,762 --> 01:06:08,264
a stable and
peaceful country.

1548
01:06:08,264 --> 01:06:10,533
This is a sentiment that
even Senator McCain

1549
01:06:10,533 --> 01:06:13,134
himself acknowledged
was the case.

1550
01:06:13,135 --> 01:06:16,872
What we saw, however, was
a failure by the central

1551
01:06:16,872 --> 01:06:18,973
government of Iraq to
unite that country

1552
01:06:18,974 --> 01:06:20,976
to confront the threats
that they face.

1553
01:06:20,976 --> 01:06:22,978
And that's why the
lynchpin of the

1554
01:06:22,978 --> 01:06:25,348
President's strategy for
confronting ISIL was based

1555
01:06:25,348 --> 01:06:28,017
on the success of the
central government in Iraq

1556
01:06:28,017 --> 01:06:30,285
actually governing in an
inclusive fashion that

1557
01:06:30,286 --> 01:06:32,288
would inspire the
confidence of the people

1558
01:06:32,288 --> 01:06:35,057
of Iraq that they should
unite together to face

1559
01:06:35,057 --> 01:06:36,892
down this common threat.

1560
01:06:36,892 --> 01:06:39,361
So the point is
we're employing

1561
01:06:39,362 --> 01:06:41,364
a similar strategy
in Afghanistan.

1562
01:06:41,364 --> 01:06:45,201
We want to see the Afghan
government govern in a way

1563
01:06:45,201 --> 01:06:46,569
that is genuinely
inclusive.

1564
01:06:46,569 --> 01:06:49,739
And we are encouraged by
the early reports of this

1565
01:06:49,739 --> 01:06:51,040
newly formed government.

1566
01:06:51,040 --> 01:06:53,576
This democratic transition
that we saw over

1567
01:06:53,576 --> 01:06:56,812
the course of the fall was
historic for Afghanistan.

1568
01:06:56,812 --> 01:06:59,147
It's the first time
we'd seen the peaceful,

1569
01:06:59,148 --> 01:07:02,618
democratic transfer of power
in Afghanistan's history.

1570
01:07:02,618 --> 01:07:06,654
So there are certainly
challenges that they face

1571
01:07:06,655 --> 01:07:08,824
and will face, and
there will be setbacks.

1572
01:07:08,824 --> 01:07:12,228
But the United States of
America remains committed

1573
01:07:12,228 --> 01:07:14,530
to standing with our
partners in Afghanistan

1574
01:07:14,530 --> 01:07:19,835
as they try to rebuild and
strengthen their country.

1575
01:07:19,835 --> 01:07:21,837
We will stand with them
not by committing

1576
01:07:21,837 --> 01:07:25,107
a substantial number
of American military

1577
01:07:25,107 --> 01:07:27,676
personnel to serving on the
ground in that country.

1578
01:07:27,676 --> 01:07:29,678
But we will stand with
them when it comes

1579
01:07:29,678 --> 01:07:30,679
to counterterrorism.

1580
01:07:30,679 --> 01:07:33,149
We will stand with them
when it comes to training

1581
01:07:33,149 --> 01:07:34,150
their security forces.

1582
01:07:34,150 --> 01:07:36,152
We will stand with them
as it relates to broader

1583
01:07:36,152 --> 01:07:38,154
national security
agreements that

1584
01:07:38,154 --> 01:07:40,156
are beneficial to American
national security

1585
01:07:40,156 --> 01:07:42,124
and beneficial to the
security of that country.

1586
01:07:42,124 --> 01:07:44,359
And there are also
important economic

1587
01:07:44,360 --> 01:07:47,129
and diplomatic investments
that will endure as well.

1588
01:07:47,129 --> 01:07:48,697
The Press:
Two other quick ones

1589
01:07:48,697 --> 01:07:50,633
on CIA interrogation.

1590
01:07:50,633 --> 01:07:52,435
James Mitchell -- who you've
probably seen, was one

1591
01:07:52,435 --> 01:07:54,937
of the contractors who was 
involved in putting together

1592
01:07:54,937 --> 01:07:57,506
the interrogation program -- 
did an interview last night with

1593
01:07:57,506 --> 01:08:00,408
Megyn Kelly and said that
the Senate panel's report,

1594
01:08:00,409 --> 01:08:02,778
which you supported the
release of -- they put it out,

1595
01:08:02,778 --> 01:08:05,013
but you supported it --
he claims that's put his

1596
01:08:05,014 --> 01:08:08,150
life in jeopardy, that the
police called him last

1597
01:08:08,150 --> 01:08:10,619
week and said, you got to
get your family out because

1598
01:08:10,619 --> 01:08:14,089
this report has stirred
people up and you're going

1599
01:08:14,089 --> 01:08:15,090
to be blamed for it.

1600
01:08:15,090 --> 01:08:17,159
And he claims it's put
his life in jeopardy.

1601
01:08:17,158 --> 01:08:18,093
What do you say?

1602
01:08:18,093 --> 01:08:19,161
Mr. Earnest:
Well, Ed, I can

1603
01:08:19,161 --> 01:08:24,265
tell you that the administration
has been very focused

1604
01:08:24,265 --> 01:08:27,803
on ensuring that we're taking
the necessary steps around

1605
01:08:27,803 --> 01:08:31,073
the world to ensure the
safety of U.S. facilities

1606
01:08:31,073 --> 01:08:32,308
and personnel
around the world.

1607
01:08:32,308 --> 01:08:34,310
There was an assessment
from the intelligence

1608
01:08:34,310 --> 01:08:38,447
community that we could
see acts of violence occur

1609
01:08:38,447 --> 01:08:42,117
in response to the
release of this report.

1610
01:08:42,117 --> 01:08:45,321
And that is why the
administration had put

1611
01:08:45,321 --> 01:08:48,057
in place a plan that was
executed over a number

1612
01:08:48,057 --> 01:08:51,093
of months to prepare for the
day in which this report

1613
01:08:51,093 --> 01:08:52,193
would be released.

1614
01:08:52,194 --> 01:08:54,163
I'm not in a position
to talk about specific

1615
01:08:54,162 --> 01:08:56,264
measures that were
taken either to protect

1616
01:08:56,265 --> 01:08:59,802
the security of any
individuals or specific

1617
01:08:59,801 --> 01:09:02,337
individuals or specific
American facilities

1618
01:09:02,337 --> 01:09:03,339
around the globe.

1619
01:09:03,339 --> 01:09:07,876
But the security risk
associated with the

1620
01:09:07,877 --> 01:09:09,879
release of this report
is something that the

1621
01:09:09,879 --> 01:09:12,814
administration has been
mindful of for months now,

1622
01:09:12,814 --> 01:09:15,183
and we continue to be
mindful of it even now.

1623
01:09:15,184 --> 01:09:17,186
I'll say that the other
thing you notice that's

1624
01:09:17,185 --> 01:09:19,621
on the President's schedule
today is a briefing that's

1625
01:09:19,622 --> 01:09:21,991
he's receiving from his
national security team.

1626
01:09:21,991 --> 01:09:26,127
This is about terror
threats around the globe.

1627
01:09:26,127 --> 01:09:28,264
This is something that the
President typically does

1628
01:09:28,264 --> 01:09:30,266
around this time of year,
that around the holidays

1629
01:09:30,265 --> 01:09:32,268
when more people are
traveling, that the

1630
01:09:32,268 --> 01:09:35,104
President gets a full
briefing on the terror

1631
01:09:35,104 --> 01:09:37,940
threats that are -- what
we're monitoring and,

1632
01:09:37,939 --> 01:09:41,509
in some cases, even
countering around the globe.

1633
01:09:41,510 --> 01:09:45,080
And part of that meeting
will be devoted to the

1634
01:09:45,080 --> 01:09:47,950
ongoing efforts to ensure
that our personnel and

1635
01:09:47,950 --> 01:09:50,853
facilities around the
globe are addressing the

1636
01:09:50,853 --> 01:09:53,956
risk that is posed by the
release of this report.

1637
01:09:53,956 --> 01:09:54,890
The Press:
Last one.

1638
01:09:54,890 --> 01:09:56,058
When the report came out,
you also said that the

1639
01:09:56,058 --> 01:09:57,826
practices that were
outlined in that report

1640
01:09:57,826 --> 01:09:59,895
were un-American, the
interrogation practices.

1641
01:09:59,895 --> 01:10:02,715
James Mitchell says that
the way it's been set up

1642
01:10:02,720 --> 01:10:05,560
by the administration,
Khalid Sheikh Mohammed has

1643
01:10:05,568 --> 01:10:07,570
an ability to answer the
charges against him --

1644
01:10:07,570 --> 01:10:10,205
a terrorist can answer the
charges against him.

1645
01:10:10,205 --> 01:10:12,207
But James Mitchell
didn't even get a chance

1646
01:10:12,207 --> 01:10:14,543
to respond to the Senate
intelligence report --

1647
01:10:14,543 --> 01:10:16,712
didn't call him, didn't
get his side of the story.

1648
01:10:16,712 --> 01:10:18,213
Isn't that sort
of un-American?

1649
01:10:18,213 --> 01:10:19,682
Mr. Earnest:
Well, Ed, it does

1650
01:10:19,682 --> 01:10:22,184
seem to me that Dr. Mitchell
has availed himself

1651
01:10:22,184 --> 01:10:25,087
of a number of American media
outlets to make his case,

1652
01:10:25,087 --> 01:10:29,959
and he certainly is entitled
as an American to do that.

1653
01:10:29,959 --> 01:10:31,594
The Press:
But a terrorist has rights,

1654
01:10:31,594 --> 01:10:34,063
and the Senate committee
doesn't reach out to him?

1655
01:10:34,063 --> 01:10:36,432
Mr. Earnest:
Well, again, you'd have to ask

1656
01:10:36,432 --> 01:10:38,434
the Senate committee about
whether they talked to him.

1657
01:10:38,434 --> 01:10:40,436
I actually don't, frankly,
know whether or not they did.

1658
01:10:40,436 --> 01:10:40,902
If he says that they
didn't, I'm not here

1659
01:10:40,903 --> 01:10:41,537
to contradict him.

1660
01:10:41,537 --> 01:10:42,571
The Press:
He said he didn't talk

1661
01:10:42,571 --> 01:10:44,540
to anyone at the CIA.

1662
01:10:44,540 --> 01:10:45,774
Mr. Earnest:
Chris.

1663
01:10:45,774 --> 01:10:48,444
The Press:
I want to go back

1664
01:10:48,444 --> 01:10:50,446
to the cromnibus for
just a second, because

1665
01:10:50,446 --> 01:10:52,748
beyond Dodd-Frank and campaign
finance there are a number

1666
01:10:52,748 --> 01:10:55,017
of Democrats who have expressed
concern about some other I guess

1667
01:10:55,017 --> 01:10:58,921
you would call them
smaller provisions that

1668
01:10:58,921 --> 01:11:03,592
retracted guidelines for I
guess actually regulations

1669
01:11:03,592 --> 01:11:05,393
that force a certain
number of hours for

1670
01:11:05,394 --> 01:11:09,698
truckers to sleep; IRS gets
less money for enforcement.

1671
01:11:09,698 --> 01:11:12,635
I guess my question is, is
this also part of what the

1672
01:11:12,635 --> 01:11:15,571
President would see as the
kind of compromise that's

1673
01:11:15,571 --> 01:11:17,139
necessary to
get this passed?

1674
01:11:17,139 --> 01:11:20,576
Or is there sort of a
larger issue of process

1675
01:11:20,576 --> 01:11:23,245
that certainly has been
criticized in years past

1676
01:11:23,245 --> 01:11:27,449
about things getting put in
the bill at the last minute?

1677
01:11:27,449 --> 01:11:28,884
Mr. Earnest:
Well, I'll say a couple

1678
01:11:28,884 --> 01:11:30,586
things about that.

1679
01:11:30,586 --> 01:11:31,920
As it relates
to the process,

1680
01:11:31,920 --> 01:11:33,589
the administration --
one of the reasons the

1681
01:11:33,589 --> 01:11:35,491
administration and the
President made the

1682
01:11:35,491 --> 01:11:37,559
decision to sign this
piece of compromise

1683
01:11:37,559 --> 01:11:41,497
legislation into law is
that it does fund the

1684
01:11:41,497 --> 01:11:43,232
vast majority of the
federal government through

1685
01:11:43,232 --> 01:11:44,667
the end of September.

1686
01:11:44,667 --> 01:11:47,503
And the process that we
have complained about the

1687
01:11:47,503 --> 01:11:50,438
most over the last several
years is that frequently

1688
01:11:50,439 --> 01:11:53,809
we saw Congress pass
a series of stop-gap

1689
01:11:53,809 --> 01:11:57,746
spending measures that
would essentially set up

1690
01:11:57,746 --> 01:11:59,715
a variety of deadlines
that Congress struggled

1691
01:11:59,715 --> 01:12:05,220
to meet, and that careening
from crisis to crisis was

1692
01:12:05,220 --> 01:12:06,522
something that was not
in the best interest

1693
01:12:06,522 --> 01:12:08,057
of our economy.

1694
01:12:08,057 --> 01:12:09,692
So one element of
this legislation,

1695
01:12:09,692 --> 01:12:13,395
for all its flaws, is that
it does endow our economy

1696
01:12:13,395 --> 01:12:14,830
with a certain
level of certainty.

1697
01:12:14,830 --> 01:12:16,532
Over the course of
the next nine months,

1698
01:12:16,532 --> 01:12:18,534
the government will be
funded at levels that are

1699
01:12:18,534 --> 01:12:20,536
appropriate -- the vast
majority of the government

1700
01:12:20,536 --> 01:12:22,538
will be funded at levels
that are appropriate

1701
01:12:22,538 --> 01:12:24,540
for the successful
implementation

1702
01:12:24,540 --> 01:12:27,242
of the kinds of responsibilities
that the government has.

1703
01:12:29,344 --> 01:12:31,547
That said -- and I know
you hear this from leaders

1704
01:12:31,547 --> 01:12:33,549
in both parties in
Congress, that we would

1705
01:12:33,549 --> 01:12:35,551
welcome a return to
the more conventional

1706
01:12:35,551 --> 01:12:37,252
appropriations process,
where individual

1707
01:12:37,252 --> 01:12:40,856
appropriations bills
are debated at the

1708
01:12:40,856 --> 01:12:43,358
subcommittee level of the
appropriations committee

1709
01:12:43,358 --> 01:12:47,096
and advanced through the
process in that way --

1710
01:12:47,096 --> 01:12:48,731
we certainly would welcome
that kind of return.

1711
01:12:48,731 --> 01:12:50,833
But the process
surrounding this omnibus

1712
01:12:50,833 --> 01:12:57,138
proposal is a significant
improvement that will have

1713
01:12:57,139 --> 01:12:59,274
some significant -- or
will at least have some

1714
01:12:59,274 --> 01:13:02,411
economic benefit for the
country because it does

1715
01:13:02,411 --> 01:13:05,881
lock in these spending levels
for the next nine months.

1716
01:13:05,881 --> 01:13:06,882
Go ahead, Chris.

1717
01:13:06,882 --> 01:13:07,883
The Press:
The confirmation

1718
01:13:07,883 --> 01:13:10,853
of Vivek Murphy -- we've been
without a surgeon general

1719
01:13:10,853 --> 01:13:14,990
for I think about 500
days, and many people see

1720
01:13:14,990 --> 01:13:16,791
this as just largely
a ceremonial role.

1721
01:13:16,792 --> 01:13:19,661
How does the President
view his role in the

1722
01:13:19,661 --> 01:13:22,531
administration, and would
he, for example, have made

1723
01:13:22,531 --> 01:13:24,833
it possible not to have
had Ron Klain come

1724
01:13:24,833 --> 01:13:26,168
in and be an
Ebola czar?

1725
01:13:26,168 --> 01:13:28,170
Mr. Earnest:
Well, it's hard to see

1726
01:13:28,170 --> 01:13:30,305
how it would have made a
difference in the past.

1727
01:13:30,305 --> 01:13:33,475
But certainly looking
forward, the President

1728
01:13:33,475 --> 01:13:35,844
is pleased that we'll have
somebody with the kinds

1729
01:13:35,844 --> 01:13:37,846
of credentials that
Dr. Murphy has

1730
01:13:37,846 --> 01:13:39,281
to communicate with the
American public about

1731
01:13:39,281 --> 01:13:41,750
important public
health issues.

1732
01:13:41,750 --> 01:13:45,788
And whether it's Ebola or
the Affordable Care Act

1733
01:13:45,788 --> 01:13:48,490
or getting a shot around
flu season, Dr. Murthy

1734
01:13:48,490 --> 01:13:52,193
is somebody that has
the right combination

1735
01:13:52,194 --> 01:13:54,963
of medical training and
communication skills that

1736
01:13:54,963 --> 01:13:56,665
will serve the country and
this administration very well.

1737
01:13:56,665 --> 01:13:57,432
The Press:
So kind

1738
01:13:57,432 --> 01:13:58,967
of a communications/PR
role.

1739
01:13:58,967 --> 01:13:59,934
Mr. Earnest:
I think that

1740
01:13:59,935 --> 01:14:01,904
traditionally is the
role that's been filled

1741
01:14:01,904 --> 01:14:03,172
by the Surgeon General.

1742
01:14:03,172 --> 01:14:05,907
There are other important 
responsibilities that he has,

1743
01:14:05,908 --> 01:14:08,644
but that is certainly one
very good example of the way

1744
01:14:08,644 --> 01:14:10,746
that he can serve
the American people

1745
01:14:10,746 --> 01:14:12,714
in a way that will have
health care benefits

1746
01:14:12,714 --> 01:14:14,016
for people all
across the country.

1747
01:14:14,016 --> 01:14:14,782
Mara.

1748
01:14:14,783 --> 01:14:15,984
The Press:
I have a question about

1749
01:14:15,984 --> 01:14:18,120
dropping oil prices.

1750
01:14:18,120 --> 01:14:20,155
If I'd gotten this from my 
editor when Jason was here,

1751
01:14:20,155 --> 01:14:21,322
I would have asked him.

1752
01:14:21,323 --> 01:14:23,592
Mr. Earnest:
Okay, I'll take a shot.

1753
01:14:23,592 --> 01:14:24,726
The Press:
Has the White House

1754
01:14:24,726 --> 01:14:27,094
considered stockpiling
more oil in the

1755
01:14:27,095 --> 01:14:29,131
Strategic Petroleum
Reserve to take advantage

1756
01:14:29,131 --> 01:14:32,501
of the falling prices, or do
you just think that the falling

1757
01:14:32,501 --> 01:14:34,803
prices are such an
unmitigated positive thing

1758
01:14:34,803 --> 01:14:38,006
that that's not necessary?

1759
01:14:38,006 --> 01:14:40,008
Mr. Earnest:
Typically, I get questions

1760
01:14:40,008 --> 01:14:42,010
about the Strategic
Petroleum Reserve when

1761
01:14:42,010 --> 01:14:43,345
the oil prices are
really high.

1762
01:14:43,345 --> 01:14:45,347
There's a lot of
symmetry associated with

1763
01:14:45,347 --> 01:14:48,050
you asking it now.

1764
01:14:48,050 --> 01:14:50,052
I will give a similar answer
to the one that I've given

1765
01:14:50,052 --> 01:14:52,554
in the past, in an era of
higher oil prices, which

1766
01:14:52,554 --> 01:14:55,123
is that I'm not going to 
speculate about any actions

1767
01:14:55,123 --> 01:14:57,125
that may or may not be
under consideration

1768
01:14:57,125 --> 01:14:59,928
as it relates to the
Strategic Petroleum Reserve.

1769
01:14:59,928 --> 01:15:01,997
I will note one thing,
though -- that the reserve

1770
01:15:01,997 --> 01:15:06,101
was created to address 
interruptions in supply

1771
01:15:06,101 --> 01:15:11,607
and not intended as a
way to affect the price

1772
01:15:11,607 --> 01:15:14,109
of oil on the
global market.

1773
01:15:14,109 --> 01:15:16,311
But as it relates to anything 
that's under consideration,

1774
01:15:16,311 --> 01:15:18,413
I don't have that much
that I can offer on that.

1775
01:15:18,413 --> 01:15:19,513
The Press:
But do you see

1776
01:15:19,514 --> 01:15:22,718
the falling oil prices as
an unmitigated positive?

1777
01:15:22,718 --> 01:15:25,019
Because obviously it
causes disruption

1778
01:15:25,020 --> 01:15:27,923
to American fracking efforts
and things like that.

1779
01:15:27,923 --> 01:15:29,124
Mr. Earnest:
Well, I guess the thing

1780
01:15:29,124 --> 01:15:31,460
that -- I'm no economic
expert, Jason is,

1781
01:15:31,460 --> 01:15:33,862
but I think that even I would
conclude, based on hearing

1782
01:15:33,862 --> 01:15:35,864
Jason speak in public
settings like this and

1783
01:15:35,864 --> 01:15:38,400
in private meetings, that
there is nothing that's ever

1784
01:15:38,400 --> 01:15:40,402
considered an unmitigated
positive when

1785
01:15:40,402 --> 01:15:41,403
it comes to our economy.

1786
01:15:41,403 --> 01:15:46,909
And I think that the kinds
of decisions, however --

1787
01:15:46,909 --> 01:15:49,644
or the kinds of assessments
that people like Jason draw,

1788
01:15:49,645 --> 01:15:52,714
however, are rooted in
trying to determine whether

1789
01:15:52,714 --> 01:15:54,983
the net impact
is positive.

1790
01:15:54,983 --> 01:15:57,653
And I think as Jason made pretty
clear in his presentation,

1791
01:15:57,653 --> 01:16:00,689
he does believe that, on 
balance, the net impact

1792
01:16:00,689 --> 01:16:04,026
of these lower oil prices is 
positive for the U.S. economy

1793
01:16:04,026 --> 01:16:06,260
and positive for the vast 
majority of middle-class

1794
01:16:06,261 --> 01:16:07,496
families in
this country.

1795
01:16:07,496 --> 01:16:10,032
Justin, I'll give
you the last one.

1796
01:16:10,032 --> 01:16:11,600
The Press:
The Fed's meeting today --

1797
01:16:11,600 --> 01:16:14,836
Jason obviously got a
little shy when we asked

1798
01:16:14,836 --> 01:16:17,506
him about it, but somebody
else in the administration,

1799
01:16:17,506 --> 01:16:21,310
Labor Secretary Perez,
was not as shy when

1800
01:16:21,310 --> 01:16:23,045
The New York Times
asked him about it.

1801
01:16:23,045 --> 01:16:25,847
He said that -- he was asked
if the Fed should move sooner

1802
01:16:25,847 --> 01:16:28,416
rather than later on
raising interest rates --

1803
01:16:28,417 --> 01:16:31,553
that he couldn't reject
that in stronger terms.

1804
01:16:31,553 --> 01:16:32,955
So I'm wondering, is
that the position

1805
01:16:32,955 --> 01:16:35,524
of the administration,
of the White House?

1806
01:16:35,524 --> 01:16:37,526
Mr. Earnest:
The position of the

1807
01:16:37,526 --> 01:16:39,561
White House is that
we will not comment

1808
01:16:39,561 --> 01:16:44,066
on Fed policymaking
decisions, even ones that

1809
01:16:44,066 --> 01:16:48,536
are only being contemplated
and not yet announced.

1810
01:16:48,537 --> 01:16:49,638
The Press:
Did the Labor Secretary

1811
01:16:49,638 --> 01:16:50,672
get over his skis
a little bit?

1812
01:16:50,672 --> 01:16:51,873
Mr. Earnest:
Well, I haven't

1813
01:16:51,873 --> 01:16:53,008
seen the entirety of his
remarks so it's hard

1814
01:16:53,008 --> 01:16:55,010
for me to evaluate
that from here.

1815
01:16:55,010 --> 01:16:57,012
He is somebody that
speaks in public

1816
01:16:57,012 --> 01:16:59,014
with some frequency
and has a pretty good

1817
01:16:59,014 --> 01:17:01,016
track record of doing
so, so it's hard for

1818
01:17:01,016 --> 01:17:03,117
me to comment in response 
directly to his comments.

1819
01:17:03,118 --> 01:17:06,688
But I'm going to sort of
adopt Jason's strategy

1820
01:17:06,688 --> 01:17:10,492
here and sort of decline
to interfere with the

1821
01:17:10,492 --> 01:17:12,828
independent process
that's underway at the

1822
01:17:12,828 --> 01:17:13,795
Federal Reserve.

1823
01:17:13,795 --> 01:17:14,830
The Press:
I just wanted

1824
01:17:14,830 --> 01:17:16,832
to ask really quickly
about the Clay Hunt

1825
01:17:16,832 --> 01:17:17,833
suicide prevention bill.

1826
01:17:17,833 --> 01:17:20,035
It was something that I know
you guys have encouraged

1827
01:17:20,035 --> 01:17:22,838
Congress to pass, but
Tom Coburn blocked

1828
01:17:22,838 --> 01:17:23,839
it last night.

1829
01:17:23,839 --> 01:17:25,707
I was wondering both
for your reaction,

1830
01:17:25,707 --> 01:17:28,477
but also since obviously 
the President and Tom Coburn

1831
01:17:28,477 --> 01:17:30,946
have a close friendship, 
and this is an issue that the

1832
01:17:30,946 --> 01:17:33,548
President has spoken
pretty passionately about

1833
01:17:33,548 --> 01:17:36,351
in the aftermath of things
like the Fort Hood shooting,

1834
01:17:36,351 --> 01:17:39,487
if this was something that
they had spoken about?

1835
01:17:39,488 --> 01:17:41,890
Mr. Earnest:
I don't believe that it is.

1836
01:17:41,890 --> 01:17:44,826
I can tell you that the
White House was pleased

1837
01:17:44,826 --> 01:17:47,529
to see that the Republican
majority in the House

1838
01:17:47,529 --> 01:17:50,098
joined with Democrats to
pass the Clay Hunt suicide

1839
01:17:50,098 --> 01:17:52,434
prevention for
American Veterans Act.

1840
01:17:52,434 --> 01:17:55,037
And we continue to
urge the Senate --

1841
01:17:55,037 --> 01:17:57,906
Senator Coburn's objection
notwithstanding --

1842
01:17:57,906 --> 01:18:00,375
to do exactly the same thing
because of the support

1843
01:18:00,375 --> 01:18:02,377
that it would offer
up to our veterans.

1844
01:18:02,377 --> 01:18:04,379
This is a critical issue,
and the President believes

1845
01:18:04,379 --> 01:18:06,381
that we owe it to our
veterans to do everything

1846
01:18:06,381 --> 01:18:08,383
we can to give them the
support and the resources

1847
01:18:08,383 --> 01:18:09,451
that they need.

1848
01:18:09,451 --> 01:18:11,620
Ensuring that veterans
have access to timely and

1849
01:18:11,620 --> 01:18:13,755
effective mental
health care is a top

1850
01:18:13,755 --> 01:18:14,856
administration priority.

1851
01:18:14,856 --> 01:18:18,026
This bill would move us
in a step in the right

1852
01:18:18,026 --> 01:18:20,195
direction, and it
complements the

1853
01:18:20,195 --> 01:18:22,264
administration's efforts,
including the President's

1854
01:18:22,264 --> 01:18:24,633
executive actions, to
improve mental health care

1855
01:18:24,633 --> 01:18:27,402
for servicemembers, veterans
and their families.

1856
01:18:27,402 --> 01:18:28,403
Thanks, everybody.

1857
01:18:28,403 --> 01:18:29,971
Have a good afternoon.