English subtitles for clip: File:12-2-11- White House Press Briefing.webm
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1 00:00:03,261 --> 00:00:07,361 Mr. Carney: Let me begin, if I may, with a quick statement -- 2 00:00:07,361 --> 00:00:08,528 announcement, rather. 3 00:00:08,528 --> 00:00:11,361 The President looks forward to welcoming Prime Minister Stephen 4 00:00:11,361 --> 00:00:13,961 Harper of Canada to the White House on Wednesday, 5 00:00:13,961 --> 00:00:15,394 December 7th. 6 00:00:15,394 --> 00:00:18,127 Canada, as you know, is a close ally and partner of the United 7 00:00:18,127 --> 00:00:20,961 States and the President looks forward to discussing our 8 00:00:20,961 --> 00:00:22,695 important bilateral relationship, 9 00:00:22,695 --> 00:00:26,127 including economic competitiveness and security, 10 00:00:26,127 --> 00:00:29,194 and key global issues. 11 00:00:29,194 --> 00:00:31,061 The Press: Did you say Keystone? 12 00:00:31,061 --> 00:00:33,261 Mr. Carney: I said "key global issues." 13 00:00:33,261 --> 00:00:35,895 The Press: Thank you. 14 00:00:35,895 --> 00:00:36,795 Mr. Carney: Julie. 15 00:00:36,795 --> 00:00:37,261 The Press: Thank you. 16 00:00:37,261 --> 00:00:39,094 Mr. Carney: I want to -- it's Friday, it's a glorious day. 17 00:00:39,094 --> 00:00:42,795 Let's -- I promise to be brief in my answers, 18 00:00:42,795 --> 00:00:45,061 and let's get on with the questions. Yes. 19 00:00:45,061 --> 00:00:45,761 The Press: Sounds good. 20 00:00:45,761 --> 00:00:48,828 President Obama was pretty measured in his response today 21 00:00:48,828 --> 00:00:51,294 to the jobs report, and I know that the White House doesn't 22 00:00:51,294 --> 00:00:53,694 like to make too much out of any one report. 23 00:00:53,695 --> 00:00:58,528 But is part of his measured response part of trying to 24 00:00:58,528 --> 00:01:01,227 lower expectations or not raise expectations for the public in 25 00:01:01,227 --> 00:01:03,894 case this trend doesn't hold? 26 00:01:03,895 --> 00:01:06,594 Mr. Carney: That's an excellent question. 27 00:01:06,594 --> 00:01:08,160 Let's look at the numbers. 28 00:01:08,161 --> 00:01:14,027 The key number here is another month, 21st month in a row, 29 00:01:14,027 --> 00:01:19,361 of private sector job growth -- 140,000 I think this month. 30 00:01:19,361 --> 00:01:22,494 That is significant because it demonstrates now nearly 31 00:01:22,494 --> 00:01:26,528 3 million jobs have been created in the private sector since we 32 00:01:26,528 --> 00:01:29,828 began to turn this economy around. 33 00:01:29,828 --> 00:01:34,795 But you're right in that we don't make much out of one 34 00:01:34,795 --> 00:01:36,394 month's numbers. 35 00:01:36,394 --> 00:01:37,394 We look for trends. 36 00:01:37,394 --> 00:01:41,594 And we know we have an enormous amount of work to do -- 8.6 37 00:01:41,594 --> 00:01:45,094 percent unemployment is way too high. 38 00:01:45,094 --> 00:01:50,127 And that's why this President is focused on getting the payroll 39 00:01:50,127 --> 00:01:53,961 tax cut extension and expansion passed through Congress, 40 00:01:53,961 --> 00:01:58,494 because he believes that it is essential for next year that we 41 00:01:58,494 --> 00:02:04,461 have that extra $1,550 in the average American family's wallet 42 00:02:04,461 --> 00:02:07,394 next year, and that we have the incentives for small businesses 43 00:02:07,394 --> 00:02:11,227 to hire and expand so that the economy can keep growing, 44 00:02:11,227 --> 00:02:15,394 maybe grow even faster, and further bring down a much too 45 00:02:15,394 --> 00:02:18,428 high unemployment rate. 46 00:02:18,428 --> 00:02:21,661 Signs of progress are good, but we have a long way to go. 47 00:02:21,661 --> 00:02:26,027 And it in many ways just reiterates or reinforces why we 48 00:02:26,027 --> 00:02:29,727 have to get this payroll tax cut passed and why Congress really 49 00:02:29,728 --> 00:02:32,628 should pass every element of the American Jobs Act, 50 00:02:32,628 --> 00:02:36,594 because unemployment remains a significant problem that we need 51 00:02:36,594 --> 00:02:38,227 to tackle together. 52 00:02:38,227 --> 00:02:40,961 The Press: You said yesterday that the President quite possibly could 53 00:02:40,961 --> 00:02:43,661 take a more personal role in the negotiations over 54 00:02:43,661 --> 00:02:44,728 the payroll tax cut. 55 00:02:44,728 --> 00:02:45,494 Mr. Carney: I said "maybe." 56 00:02:45,494 --> 00:02:46,861 The Press: You said "quite possible." 57 00:02:46,861 --> 00:02:47,661 Mr. Carney: Yes. 58 00:02:47,661 --> 00:02:49,194 The Press: Could you give us any more insight into that, 59 00:02:49,194 --> 00:02:51,494 especially given the fact that today the President basically 60 00:02:51,494 --> 00:02:54,761 threatened to keep Congress in Washington through Christmas if 61 00:02:54,761 --> 00:02:56,361 they can't reach an agreement? 62 00:02:56,361 --> 00:02:58,528 Mr. Carney: The President and his entire team will be working with 63 00:02:58,528 --> 00:03:02,494 Congress to try to get this payroll tax cut passed. 64 00:03:02,494 --> 00:03:06,328 It is shocking, I think, to many Americans who are paying 65 00:03:06,328 --> 00:03:10,928 attention that not only did Republicans vote against a 66 00:03:10,928 --> 00:03:14,127 payroll tax cut expansion -- extension and expansion that 67 00:03:14,127 --> 00:03:16,695 was paid for in a way that is entirely reasonable, 68 00:03:16,695 --> 00:03:19,428 but an overwhelming majority of Republicans voted against their 69 00:03:19,428 --> 00:03:25,293 own bill, which means, clearly, that the issue here isn't payfor 70 00:03:25,294 --> 00:03:28,194 -- the payfors, I mean, for those of you not in Washington 71 00:03:28,194 --> 00:03:30,928 -- the issue isn't here how you pay for this, 72 00:03:30,928 --> 00:03:34,994 it's whether or not Republicans even want to extend a tax cut to 73 00:03:34,994 --> 00:03:38,828 160 million Americans, to working, middle-class Americans. 74 00:03:38,828 --> 00:03:44,561 I really -- you tend to think that you know what's going to 75 00:03:44,561 --> 00:03:46,795 happen in Washington; I thought that vote last night was very 76 00:03:46,795 --> 00:03:52,293 surprising, given the unbelievable lack of support 77 00:03:52,294 --> 00:03:56,628 in one party for giving tax cuts to middle-class Americans. 78 00:03:56,628 --> 00:03:59,994 And what's shocking about it even more so is the fact that 79 00:03:59,994 --> 00:04:02,027 so many Republicans have, in the past, 80 00:04:02,027 --> 00:04:04,994 said they supported payroll tax cuts. 81 00:04:04,994 --> 00:04:10,795 So we're going to work night and day to make sure that Americans 82 00:04:10,795 --> 00:04:15,161 get the tax relief that they need and deserve, 83 00:04:15,161 --> 00:04:17,194 and that this economy needs and deserves. 84 00:04:17,194 --> 00:04:19,994 The Press: Can you give us any details on how the President and his team 85 00:04:19,994 --> 00:04:20,528 will work -- 86 00:04:20,528 --> 00:04:22,428 Mr. Carney: No, I don't have anything for you on that now. 87 00:04:22,428 --> 00:04:27,161 But it will, I'm sure, involve conversations at different 88 00:04:27,161 --> 00:04:32,027 levels, and an effort to find a way to get this done, 89 00:04:32,027 --> 00:04:33,961 because it's the right thing to do for the economy and the right 90 00:04:33,961 --> 00:04:37,661 thing to do for the American people. 91 00:04:37,661 --> 00:04:39,961 I'm going to get a little crazy here -- Vick. 92 00:04:39,961 --> 00:04:40,861 The Press: All right. 93 00:04:40,861 --> 00:04:43,027 (laughter) 94 00:04:43,027 --> 00:04:45,227 You just told Julie that the issue is not how you pay for it. 95 00:04:45,227 --> 00:04:47,027 Is it essential, in the administration's view, 96 00:04:47,027 --> 00:04:48,961 that the payroll tax cut be paid for? 97 00:04:48,961 --> 00:04:51,795 Mr. Carney: Well, as you know, Vick, the President put forward a 98 00:04:51,795 --> 00:04:54,461 proposal, comprehensive jobs proposal, 99 00:04:54,461 --> 00:04:57,861 of which the payroll tax cut extension and expansion was a 100 00:04:57,861 --> 00:05:02,161 significant component that was entirely paid for in a way that 101 00:05:02,161 --> 00:05:05,594 is economically sensible and asks only that -- 102 00:05:05,594 --> 00:05:06,795 The Press: It was part of the jobs act, though -- 103 00:05:06,795 --> 00:05:08,161 Mr. Carney: It was part of the jobs act, and in the Senate -- 104 00:05:08,161 --> 00:05:09,194 The Press: So taken alone, is it essential -- 105 00:05:09,194 --> 00:05:11,661 Mr. Carney: You know what, the bill that performed much better yesterday 106 00:05:11,661 --> 00:05:17,561 included a single Republican senator in support, 107 00:05:17,561 --> 00:05:25,794 had as its payfor a simple request that the 300,000 or 108 00:05:25,795 --> 00:05:29,394 so wealthiest taxpayers in America pay a little extra on 109 00:05:29,394 --> 00:05:33,194 their income over a million dollars so that 160 million 110 00:05:33,194 --> 00:05:35,628 Americans get a tax cut next year. 111 00:05:35,628 --> 00:05:36,828 Now, that didn't succeed. 112 00:05:36,828 --> 00:05:40,760 The President obviously believes that the preferable way to do 113 00:05:40,761 --> 00:05:44,027 this is to have it paid for, and he will work with Congress 114 00:05:44,027 --> 00:05:47,227 to try to get this done in a way that meets his 115 00:05:47,227 --> 00:05:48,527 very high priorities. 116 00:05:48,528 --> 00:05:54,328 Because what he will not believe is the right path to go here is 117 00:05:54,328 --> 00:05:57,861 to cut education or energy or Head Start, 118 00:05:57,861 --> 00:06:01,061 or programs that are essential to the very people you're trying 119 00:06:01,061 --> 00:06:02,628 to help through the payroll tax cut. 120 00:06:02,628 --> 00:06:04,227 The Press: Preferable, but essential? 121 00:06:04,227 --> 00:06:05,828 Is it essential that it be paid for? 122 00:06:05,828 --> 00:06:10,428 Mr. Carney: Again, I'm not going to negotiate the endgame of 123 00:06:10,428 --> 00:06:11,728 this process. 124 00:06:11,728 --> 00:06:19,461 What I will say is that it will stun me if members of Congress, 125 00:06:19,461 --> 00:06:24,795 of the Republican Party, truly want to head into next year 126 00:06:24,795 --> 00:06:27,895 having voted to raise taxes on middle-class Americans. 127 00:06:27,895 --> 00:06:30,061 The Press: Many of those Republicans are concerned that you're weakening 128 00:06:30,061 --> 00:06:33,193 Social Security by diminishing contributions through the 129 00:06:33,194 --> 00:06:36,227 payroll tax, by extending this tax. 130 00:06:36,227 --> 00:06:39,126 Mr. Carney: Well, the President put forward a plan to pay for this payroll 131 00:06:39,127 --> 00:06:40,828 tax cut extension and expansion. 132 00:06:40,828 --> 00:06:43,561 Senate Democrats put forward a way to pay for this payroll tax 133 00:06:43,561 --> 00:06:45,494 cut extension and expansion. 134 00:06:45,494 --> 00:06:48,561 The Social Security actuary had said that -- has said, 135 00:06:48,561 --> 00:06:52,061 and has said this to reassure those senators who might be 136 00:06:52,061 --> 00:06:55,394 concerned about the trust fund, that it has no impact 137 00:06:55,394 --> 00:06:56,394 on the trust fund. 138 00:06:56,394 --> 00:07:03,861 The trust fund is made whole through U.S. treasuries, 139 00:07:03,861 --> 00:07:06,227 which are the safest investment in the world, 140 00:07:06,227 --> 00:07:07,227 as you know. 141 00:07:07,227 --> 00:07:11,727 So the issue here is, as I said, it's not even any more about how 142 00:07:11,728 --> 00:07:14,027 you pay for it, as we saw last night in these votes, 143 00:07:14,027 --> 00:07:16,494 it's whether or not one party actually supports giving tax 144 00:07:16,494 --> 00:07:19,328 cuts to middle-class Americans. 145 00:07:19,328 --> 00:07:21,861 Paula. 146 00:07:21,861 --> 00:07:26,461 The Press: On December 16th, Congress has to act on appropriations 147 00:07:26,461 --> 00:07:27,695 being extended. 148 00:07:27,695 --> 00:07:30,394 And there is some talk of possibly rolling it into one 149 00:07:30,394 --> 00:07:33,528 little holiday package -- the extenders, 150 00:07:33,528 --> 00:07:39,194 the UI benefits extension, as well as payroll tax cuts -- just 151 00:07:39,194 --> 00:07:41,227 do it all at once, Christmas tree it. 152 00:07:41,227 --> 00:07:45,361 Is that something that you think is feasible -- 153 00:07:45,361 --> 00:07:48,994 Mr. Carney: Again, I think that's getting ahead of the process in terms 154 00:07:48,994 --> 00:07:54,628 of what the sausage-making might look like in these next 155 00:07:54,628 --> 00:07:55,628 several weeks. 156 00:07:55,628 --> 00:08:01,193 I think we're focused on a number of things, 157 00:08:01,194 --> 00:08:04,795 principally the payroll tax cut extension and expansion, 158 00:08:04,795 --> 00:08:08,661 but also these appropriations bills and getting all of the 159 00:08:08,661 --> 00:08:11,328 work that needs to be done by the end of the year done in a 160 00:08:11,328 --> 00:08:16,494 way that ensures that we're doing right by 161 00:08:16,494 --> 00:08:17,795 the American economy. 162 00:08:17,795 --> 00:08:21,394 The Press: And the President hasn't had a bipartisan congressional group 163 00:08:21,394 --> 00:08:23,594 come down here for quite some time. 164 00:08:23,594 --> 00:08:25,628 Is that possibly one thing you could -- 165 00:08:25,628 --> 00:08:31,061 Mr. Carney: I would not dare to predict the future from here today. Yes. 166 00:08:31,061 --> 00:08:35,060 The Press: Jay, the House Republicans said today that they will attach a 167 00:08:35,061 --> 00:08:38,795 bill designed to speed approval of the Keystone pipeline to 168 00:08:38,794 --> 00:08:42,560 Boehner's bill about the tax cut extension. 169 00:08:42,561 --> 00:08:43,828 What's your reaction to that bill, 170 00:08:43,828 --> 00:08:45,494 and how would the President react to 171 00:08:45,494 --> 00:08:48,061 it if they were connected? 172 00:08:48,061 --> 00:08:50,361 Mr. Carney: Look, Jeff, as you know, that this is a process that is being 173 00:08:50,361 --> 00:08:52,528 run out of the State Department. 174 00:08:52,528 --> 00:08:54,861 The President has made clear what the criteria need to be 175 00:08:54,861 --> 00:09:01,294 in considering this project. 176 00:09:01,294 --> 00:09:02,861 But it is a process being run out of State, 177 00:09:02,861 --> 00:09:08,261 and the timeline is being decided by -- on the merits 178 00:09:08,261 --> 00:09:10,728 and on the issues by those who are reviewing it at 179 00:09:10,728 --> 00:09:11,428 the State Department. 180 00:09:11,428 --> 00:09:12,861 So I'll refer you to them. 181 00:09:12,861 --> 00:09:17,093 The Press: The House bill would try to go around that entire process. 182 00:09:17,094 --> 00:09:19,795 Mr. Carney: Well, we think that the establishment of the State 183 00:09:19,795 --> 00:09:22,795 Department as the place where this review is housed has 184 00:09:22,795 --> 00:09:23,795 existed for years. 185 00:09:23,795 --> 00:09:29,861 It exists in a national security directive, 186 00:09:29,861 --> 00:09:33,093 and it even predates that by many decades. 187 00:09:33,094 --> 00:09:36,628 So I think the precedent here is proper and that's why it's being 188 00:09:36,628 --> 00:09:37,828 reviewed at the State Department. 189 00:09:37,828 --> 00:09:40,294 The Press: So if that were connected to a bill to extend the payroll tax 190 00:09:40,294 --> 00:09:42,328 cut, would the President reject it? 191 00:09:42,328 --> 00:09:44,294 Mr. Carney: That was an "if" -- an "if" that I'm not going to get into. 192 00:09:44,294 --> 00:09:46,895 But I think the proper place for this to be done is where it's 193 00:09:46,895 --> 00:09:49,627 been done in the past, so that it's done well and reviewed 194 00:09:49,628 --> 00:09:53,695 responsibly, and that the necessary criteria that need 195 00:09:53,695 --> 00:09:56,661 to go into a decision like this are all considered. April. 196 00:09:56,661 --> 00:09:59,761 The Press: Jay, going back to Julie's question about jobs, 197 00:09:59,761 --> 00:10:01,093 you said let's look at the numbers, 198 00:10:01,094 --> 00:10:04,795 and you said 8.6 percent unemployment rate is 199 00:10:04,795 --> 00:10:05,728 way too high. 200 00:10:05,728 --> 00:10:09,428 And in understanding that the black unemployment numbers have 201 00:10:09,428 --> 00:10:12,795 gone up again from 15.1 to 15.5, what do you -- 202 00:10:12,795 --> 00:10:15,161 Mr. Carney: Way too high. Way too high. 203 00:10:15,161 --> 00:10:19,761 We have to do everything we can, including extending unemployment 204 00:10:19,761 --> 00:10:24,093 insurance, including making sure that this tax cut for 205 00:10:24,094 --> 00:10:26,961 160 million working Americans gets into place. 206 00:10:26,961 --> 00:10:33,994 And if we were being truly sensible -- "we" I say 207 00:10:33,994 --> 00:10:36,761 generously -- if Congress were being truly sensible, 208 00:10:36,761 --> 00:10:39,161 they would pass all the elements of the American Jobs Act, which, 209 00:10:39,161 --> 00:10:42,527 as you know, is paid for entirely so it doesn't add 210 00:10:42,528 --> 00:10:43,728 a dime to our deficit. 211 00:10:43,728 --> 00:10:47,593 But if you did it all, it would have the kind of impact that 212 00:10:47,594 --> 00:10:49,328 outside economists said it would have, 213 00:10:49,328 --> 00:10:55,361 which is adding up to 2 percent growth to our GDP, adding many, 214 00:10:55,361 --> 00:10:58,294 many hundreds of thousands of jobs. 215 00:10:58,294 --> 00:10:59,593 This is what our economy needs. 216 00:10:59,594 --> 00:11:01,895 This is the medicine that our economy needs. 217 00:11:01,895 --> 00:11:08,428 And apparently, only in one section of Capitol Hill is there 218 00:11:08,428 --> 00:11:10,895 disagreement about this, because the support for this kind of 219 00:11:10,895 --> 00:11:14,694 approach is widespread in communities across America, 220 00:11:14,695 --> 00:11:20,895 in every region of the country, and from people who call 221 00:11:20,895 --> 00:11:23,761 themselves Democrats, independents and Republicans. 222 00:11:23,761 --> 00:11:26,461 That's why the President designed the American Jobs Act 223 00:11:26,461 --> 00:11:29,094 in a way that it was filled with the kinds of provisions that 224 00:11:29,094 --> 00:11:31,561 both parties have supported in the past because he thought it 225 00:11:31,561 --> 00:11:36,027 was important to do that so that it has a real chance of getting 226 00:11:36,027 --> 00:11:38,394 the kind of support necessary to pass out of Congress and be 227 00:11:38,394 --> 00:11:40,361 signed into law by him. 228 00:11:40,361 --> 00:11:42,795 The Press: You keep saying on these numbers they're way too high. 229 00:11:42,795 --> 00:11:46,161 What is the comfortable number that this administration has 230 00:11:46,161 --> 00:11:50,194 set for a normal, healthy unemployment 231 00:11:50,194 --> 00:11:51,261 rate in this country? 232 00:11:51,261 --> 00:11:54,493 Mr. Carney: Well, I would let economists evaluate that and give you 233 00:11:54,494 --> 00:11:55,027 a number. 234 00:11:55,027 --> 00:11:59,394 I know that this President has said and is committed to not 235 00:11:59,394 --> 00:12:02,528 resting until he knows that every American who's looking 236 00:12:02,528 --> 00:12:04,394 for a job can get a job. 237 00:12:04,394 --> 00:12:06,494 The Press: But the reason why I say that -- because you said "way too high." 238 00:12:06,494 --> 00:12:08,761 So that's why I'm trying to quantify what would be -- 239 00:12:08,761 --> 00:12:16,560 Mr. Carney: Again, I don't have a -- I think that we're not in any danger of 240 00:12:16,561 --> 00:12:19,895 reaching a point where the unemployment rate is 241 00:12:19,895 --> 00:12:24,161 satisfactorily low, which is why we need to do everything we can 242 00:12:24,161 --> 00:12:26,694 through Congress, through the use of the President's executive 243 00:12:26,695 --> 00:12:31,027 authority, and working with our partners in the private sector, 244 00:12:31,027 --> 00:12:33,494 as the President highlighted today with former President 245 00:12:33,494 --> 00:12:37,895 Clinton, to put people back to work and to build the foundation 246 00:12:37,895 --> 00:12:41,428 of an economy that can grow into the future, 247 00:12:41,428 --> 00:12:44,227 which is what the Better Buildings Initiative does. 248 00:12:44,227 --> 00:12:49,627 So this is a multifaceted attack on the number-one problem facing 249 00:12:49,628 --> 00:12:51,461 this country, which is the need to grow the economy and 250 00:12:51,461 --> 00:12:53,227 create jobs. 251 00:12:53,227 --> 00:12:54,560 Julianna, and then Bill. 252 00:12:54,561 --> 00:12:57,528 The Press: There are some reports out of the Canadian press that next 253 00:12:57,528 --> 00:12:59,861 week when Prime Minister Harper is here he and the President 254 00:12:59,861 --> 00:13:03,227 will announce a new cross-border security agreement. 255 00:13:03,227 --> 00:13:05,060 Is that anything that you can confirm? 256 00:13:05,061 --> 00:13:08,261 Mr. Carney: I don't have anything beyond what I mentioned that they will 257 00:13:08,261 --> 00:13:10,161 discuss, security issues. 258 00:13:10,161 --> 00:13:12,261 I haven't read the Canadian press yet today, 259 00:13:12,261 --> 00:13:14,394 so I wasn't aware of those reports. 260 00:13:14,394 --> 00:13:17,728 The Press: Also, the Treasury Secretary is going to Europe next week to 261 00:13:17,728 --> 00:13:20,661 meet with European finance officials. 262 00:13:20,661 --> 00:13:24,694 Can you talk about what he hopes to get out of that trip and what 263 00:13:24,695 --> 00:13:29,928 influence he has -- he'll have there? 264 00:13:29,928 --> 00:13:34,928 Mr. Carney: Well, this is part of an ongoing engagement that Secretary 265 00:13:34,928 --> 00:13:37,861 Geithner has had -- well, really since he took office, 266 00:13:37,861 --> 00:13:44,628 but this year as we have offered our advice and counsel to the 267 00:13:44,628 --> 00:13:49,561 Europeans as they deal with their debt crisis. 268 00:13:49,561 --> 00:13:53,561 Secretary Geithner, as you know, as Treasury Secretary and in his 269 00:13:53,561 --> 00:13:57,628 previous life, has a great deal of experience dealing with this 270 00:13:57,628 --> 00:13:59,294 kind of situation. 271 00:13:59,294 --> 00:14:03,161 So I'm sure he will consult with his counterparts as they try to 272 00:14:03,161 --> 00:14:06,694 grapple with this very serious matter and take continued steps, 273 00:14:06,695 --> 00:14:11,227 as they've taken some already, to try to get it under control 274 00:14:11,227 --> 00:14:13,294 in a conclusive and decisive way. 275 00:14:13,294 --> 00:14:15,593 So that's what the trip will be about. 276 00:14:15,594 --> 00:14:18,428 And it's part of an ongoing effort that he's made. 277 00:14:18,428 --> 00:14:23,227 The Press: Is he going over there with any additional technical advice? 278 00:14:23,227 --> 00:14:29,528 Mr. Carney: None that I'm aware of, but our position on what we think Europe 279 00:14:29,528 --> 00:14:33,994 needs to do is very clear, and it's not -- it's shared by I 280 00:14:33,994 --> 00:14:36,261 think a lot of our European counterparts, 281 00:14:36,261 --> 00:14:40,493 which is that they need to establish a firewall that is 282 00:14:40,494 --> 00:14:42,428 sufficient to the task at hand. 283 00:14:42,428 --> 00:14:44,695 And there are a variety of ways you can do that, 284 00:14:44,695 --> 00:14:49,594 and we encourage the Europeans to work towards getting that 285 00:14:49,594 --> 00:14:52,928 done in a conclusive and decisive way. Bill. 286 00:14:52,928 --> 00:14:53,728 The Press: Jay -- 287 00:14:53,728 --> 00:14:56,960 The Press: Going back to what the President said earlier today -- 288 00:14:56,961 --> 00:14:57,928 Mr. Carney: Sorry, there are two Bills. 289 00:14:57,928 --> 00:14:58,828 This one. 290 00:14:58,828 --> 00:15:01,861 There might be a third out there, but we'll see. 291 00:15:01,861 --> 00:15:05,593 The Press: -- that he expects Congress will get the payroll tax done, 292 00:15:05,594 --> 00:15:08,027 otherwise we'll all be here at Christmas. 293 00:15:08,027 --> 00:15:11,994 Was that an offhand remark, or was that the first mention 294 00:15:11,994 --> 00:15:16,795 of a hammer, if you will, something that he would do? 295 00:15:16,795 --> 00:15:22,861 Mr. Carney: It's a measure of the seriousness of the issue at hand 296 00:15:22,861 --> 00:15:27,494 -- the impact that raising the average American family's taxes 297 00:15:27,494 --> 00:15:33,594 by $1,000 next year would have -- the negative impact -- and 298 00:15:33,594 --> 00:15:37,161 the President's commitment to ensuring that the payroll tax 299 00:15:37,161 --> 00:15:40,328 cut is passed and that it's handled in a responsible and 300 00:15:40,328 --> 00:15:41,194 reasonable way. 301 00:15:41,194 --> 00:15:42,527 The Press: Has he suggested to the leadership that 302 00:15:42,528 --> 00:15:43,428 he would do that? 303 00:15:43,428 --> 00:15:47,728 Mr. Carney: Well, I suppose they've heard about what he said today. 304 00:15:47,728 --> 00:15:49,127 I don't know that it's been -- 305 00:15:49,127 --> 00:15:50,795 The Press: So that was meant as a warning? 306 00:15:50,795 --> 00:15:55,861 Mr. Carney: Well, I'll just leave -- I won't add any more context to what the 307 00:15:55,861 --> 00:15:57,294 President said; you heard what he said. 308 00:15:57,294 --> 00:16:02,795 And I think that what it represents is his determination 309 00:16:02,795 --> 00:16:07,261 to continue to put pressure on Congress to do the right thing 310 00:16:07,261 --> 00:16:09,328 here, which is to support the kind of tax cuts that 311 00:16:09,328 --> 00:16:12,428 Republicans used to support, and Democrats support. 312 00:16:12,428 --> 00:16:16,994 So we hope that they will hear the call, 313 00:16:16,994 --> 00:16:19,661 if not from him then from their constituents, 314 00:16:19,661 --> 00:16:23,127 because I can't imagine they want to go back home and explain 315 00:16:23,127 --> 00:16:28,728 why they voted to raise taxes on working Americans in order 316 00:16:28,728 --> 00:16:32,795 to protect the tax breaks of 300,000 317 00:16:32,795 --> 00:16:34,560 of the wealthiest Americans in the country. 318 00:16:34,561 --> 00:16:36,861 I mean, I'm trying to see how that might break down per 319 00:16:36,861 --> 00:16:39,328 district, but it can't be favorable, right? 320 00:16:39,328 --> 00:16:41,828 Unless you maybe represent Beverly Hills or something. 321 00:16:41,828 --> 00:16:45,394 The vast majority of the constituents and every member 322 00:16:45,394 --> 00:16:49,594 of the House's and the Senate's constituency or state are going 323 00:16:49,594 --> 00:16:51,928 to be represented by the 160 million people who 324 00:16:51,928 --> 00:16:54,928 would get a tax cut if they passed this bill. Yes. 325 00:16:54,928 --> 00:16:58,628 The Press: So when you highlight 21 months of private sector job growth and 326 00:16:58,628 --> 00:17:01,227 adding 120,000 jobs in the last month, 327 00:17:01,227 --> 00:17:04,594 the unemployment rate actually went down largely because over 328 00:17:04,594 --> 00:17:07,661 300,000 people just left the workforce. 329 00:17:07,661 --> 00:17:10,494 So doesn't that suggest maybe the President's policies have 330 00:17:10,493 --> 00:17:13,127 not worked for three years, so why would Congress pass more of 331 00:17:13,127 --> 00:17:14,594 his policies? 332 00:17:14,594 --> 00:17:15,594 Mr. Carney: Well, let's review. 333 00:17:15,594 --> 00:17:17,227 First of all, the point -- let me -- at the top, 334 00:17:17,227 --> 00:17:22,828 let me make the point that one of the reasons why we do not get 335 00:17:22,828 --> 00:17:27,360 too up over one month of positive news, 336 00:17:27,361 --> 00:17:30,828 or too down over one month of less-than-positive news is 337 00:17:30,828 --> 00:17:32,528 because we're looking for trends here. 338 00:17:32,528 --> 00:17:34,561 And one of the underlying factors that you just mentioned 339 00:17:34,561 --> 00:17:38,695 about the sizeable drop in the unemployment rate is that there 340 00:17:38,695 --> 00:17:41,127 is a long long-term unemployment issue here that's a serious 341 00:17:41,127 --> 00:17:43,695 problem, which is why the President is insisting that 342 00:17:43,695 --> 00:17:45,860 Congress extend unemployment benefits; 343 00:17:45,861 --> 00:17:49,094 that helps those people who are looking for work and need the 344 00:17:49,094 --> 00:17:52,094 assistance, and it helps the economy as, again, 345 00:17:52,094 --> 00:17:53,861 outside economists will tell you. 346 00:17:53,861 --> 00:17:59,061 Outside economists will tell you -- not adjuncts of one party or 347 00:17:59,061 --> 00:18:03,628 the other, or people from partisan think tanks -- but 348 00:18:03,628 --> 00:18:06,660 economists on Wall Street, economists out in the country, 349 00:18:06,661 --> 00:18:09,094 and academic econmists who are not affiliated with a party 350 00:18:09,094 --> 00:18:12,394 or a position, will tell you that a payroll tax cut has a 351 00:18:12,394 --> 00:18:16,127 measurable, direct, positive impact on the economy. 352 00:18:16,127 --> 00:18:18,661 And unemployment insurance extension has a measurable, 353 00:18:18,661 --> 00:18:20,361 direct, positive impact on the economy. 354 00:18:20,361 --> 00:18:23,361 That is just not really disputed by responsible economists. 355 00:18:23,361 --> 00:18:24,061 The Press: In the short term, right? 356 00:18:24,061 --> 00:18:24,695 Mr. Carney: Sure. 357 00:18:24,695 --> 00:18:26,428 The Press: You just said that the problem is long-term unemployment -- 358 00:18:26,428 --> 00:18:27,695 people leaving the workforce. 359 00:18:27,695 --> 00:18:28,860 And you're talking about short-term measures. 360 00:18:28,861 --> 00:18:31,928 Mr. Carney: And by long term -- long term, I think the term is defined by 361 00:18:31,928 --> 00:18:33,895 those who have been unemployed for more than six months. 362 00:18:33,895 --> 00:18:35,795 So I'm not talking years here, I'm talking more 363 00:18:35,795 --> 00:18:37,795 than six months. 364 00:18:37,795 --> 00:18:40,661 I mean, again, now, let's step back and review the facts. 365 00:18:40,661 --> 00:18:45,061 Twenty-one months now straight of private sector job growth. 366 00:18:45,061 --> 00:18:51,226 This comes after 8 million jobs lost in a recession that was in 367 00:18:51,227 --> 00:18:53,994 full bloom when this President was sworn into office, 368 00:18:53,994 --> 00:18:57,660 a recession that we now know was contracting the economy, 369 00:18:57,661 --> 00:19:02,361 shrinking the economy by almost 9 percent when he was taking 370 00:19:02,361 --> 00:19:03,895 office, when he was getting sworn in. 371 00:19:06,027 --> 00:19:10,661 The record since then has been one of stopping the bleeding, 372 00:19:10,661 --> 00:19:14,561 arresting the freefall of our economy, 373 00:19:14,561 --> 00:19:18,360 preventing the second Great Depression in American history, 374 00:19:18,361 --> 00:19:20,994 and putting us back on a course towards economic 375 00:19:20,994 --> 00:19:22,828 growth and job creation. 376 00:19:22,828 --> 00:19:25,994 The problem, as you know, is that the hole is so deep that 377 00:19:25,994 --> 00:19:30,026 this recession caused, and the job loss so significant that 378 00:19:30,027 --> 00:19:32,428 even though we're now at nearly 3 million jobs created -- 379 00:19:32,428 --> 00:19:37,561 private sector jobs created -- since positive job growth began, 380 00:19:37,561 --> 00:19:40,994 that's not nearly enough when you lost 8 million jobs in a 381 00:19:40,994 --> 00:19:41,994 terrible recession. 382 00:19:41,994 --> 00:19:43,360 So that's why the President believes we have to pass the 383 00:19:43,361 --> 00:19:45,695 payroll tax cut extension and expansion. 384 00:19:45,695 --> 00:19:47,394 That's why the President believes we need to do 385 00:19:47,394 --> 00:19:49,928 things through his executive authority, like the Better 386 00:19:49,928 --> 00:19:51,227 Buildings Initiative. 387 00:19:51,227 --> 00:19:53,695 That's why he believes we should have -- that Congress should 388 00:19:53,695 --> 00:19:58,860 have voted to put 400,000 teachers back to work, 389 00:19:58,861 --> 00:20:00,294 put construction workers back to work. 390 00:20:00,294 --> 00:20:02,661 And he's not going to let up in pressuring Congress to do that. 391 00:20:02,661 --> 00:20:04,361 The Press: The President was sitting with Tom Donohue, a business leader, 392 00:20:04,361 --> 00:20:06,594 who has said repeatedly that what you need are long-term 393 00:20:06,594 --> 00:20:09,094 policies to reduce government regulations; 394 00:20:09,094 --> 00:20:11,761 long-term exchanges so that people -- that businesses know. 395 00:20:11,761 --> 00:20:14,161 Mr. Carney: Well, I didn't bring it out, but you saw that the President put 396 00:20:14,161 --> 00:20:16,594 forward a substantial, long-term deficit and debt reduction deal. 397 00:20:16,594 --> 00:20:19,994 The President does believe that we need tax reform, as he said. 398 00:20:19,994 --> 00:20:22,660 And as I think I said the other day, and as, again, 399 00:20:22,661 --> 00:20:27,294 outside analysts, not partisans, but outside analysts have said 400 00:20:27,294 --> 00:20:31,161 as they've reviewed the facts, this President's commitment to 401 00:20:31,161 --> 00:20:34,561 regulatory reform, through his look-back provision, 402 00:20:34,561 --> 00:20:40,194 has meant that the number and cost of regulations instituted 403 00:20:40,194 --> 00:20:42,528 by this administration in its first several years is actually 404 00:20:42,528 --> 00:20:45,628 fewer and less costly than in the previous administration. 405 00:20:45,628 --> 00:20:48,561 And the very people who are complaining about regulation in 406 00:20:48,561 --> 00:20:50,928 Congress, I don't remember them complaining about it in the 407 00:20:50,928 --> 00:20:53,928 previous administration when the costs were higher and the number 408 00:20:53,928 --> 00:20:54,494 was higher. 409 00:20:54,494 --> 00:20:56,026 The Press: Just on the defense bill, the Senate acted last night; 410 00:20:56,027 --> 00:21:00,227 you've had a veto threat over the detainee language before. 411 00:21:00,227 --> 00:21:05,161 ACLU and others still want the President to veto that bill. 412 00:21:05,161 --> 00:21:06,494 Is that veto threat still out there? 413 00:21:06,494 --> 00:21:09,061 Where are you on the defense bill? 414 00:21:09,061 --> 00:21:11,695 Mr. Carney: Well, there is a number of issues in that bill, 415 00:21:11,695 --> 00:21:20,461 as you know -- which is why my book is so big today -- on the 416 00:21:20,461 --> 00:21:23,461 detainee issue, counterterrorism professionals from Republican 417 00:21:23,461 --> 00:21:26,261 and Democratic administrations, as you know, Ed, we have said 418 00:21:26,261 --> 00:21:28,394 that the language in this bill would jeopardize our national 419 00:21:28,394 --> 00:21:31,461 security by restricting flexibility in our fight 420 00:21:31,461 --> 00:21:33,061 against al Qaeda. 421 00:21:33,061 --> 00:21:35,328 By ignoring these nonpartisan recommendations, 422 00:21:35,328 --> 00:21:37,528 including the recommendations of the Secretary of Defense, 423 00:21:37,528 --> 00:21:40,294 the Director of the FBI, the Director of National 424 00:21:40,294 --> 00:21:42,261 Intelligence and the Attorney General, 425 00:21:42,261 --> 00:21:46,161 the Senate has unfortunately engaged in a little political 426 00:21:46,161 --> 00:21:47,928 micromanagement at the expense of sensible 427 00:21:47,928 --> 00:21:49,594 national security policy. 428 00:21:49,594 --> 00:21:51,861 So our position has not changed. 429 00:21:51,861 --> 00:21:54,361 Any bill that challenges or constrains the President's 430 00:21:54,361 --> 00:21:56,628 critical authorities to collect intelligence, 431 00:21:56,628 --> 00:21:59,428 incapacitate dangerous terrorists and protect the 432 00:21:59,428 --> 00:22:03,628 nation would prompt his senior advisors to recommend a veto. 433 00:22:03,628 --> 00:22:06,093 So we'll see how this progresses, 434 00:22:06,094 --> 00:22:07,461 but that's my answer on that. 435 00:22:07,461 --> 00:22:08,428 Christi. 436 00:22:08,428 --> 00:22:10,361 The Press: Thank you, Jay. Two things. 437 00:22:10,361 --> 00:22:12,961 One, I heard what you just said to Ed about the relationship 438 00:22:12,961 --> 00:22:15,461 between the payroll tax cut and the economy, 439 00:22:15,461 --> 00:22:19,728 but I just wonder if you guys think that the initiatives that 440 00:22:19,728 --> 00:22:22,161 the American people see the President involved in are 441 00:22:22,161 --> 00:22:27,761 reassuring to them that he's working on creating jobs. 442 00:22:27,761 --> 00:22:29,928 I mean, do people see the connection, is what I'm asking. 443 00:22:29,928 --> 00:22:32,261 Mr. Carney: Well, I would think you would have to go out and 444 00:22:32,261 --> 00:22:33,928 ask folks that. 445 00:22:33,928 --> 00:22:39,828 The data I've seen suggests that there is broad support for the 446 00:22:39,828 --> 00:22:43,127 initiatives the President has put forward, and that, 447 00:22:43,127 --> 00:22:46,860 certainly, most Americans feel like we should be doing 448 00:22:46,861 --> 00:22:49,695 something to help the economy grow and create jobs. 449 00:22:49,695 --> 00:22:55,160 And one of the ironies of this debate about the payroll tax cut 450 00:22:55,161 --> 00:22:58,161 extension, and the broader debate about the American Jobs 451 00:22:58,161 --> 00:23:01,861 Act, is that it's not clear at all whether or not we'd be 452 00:23:01,861 --> 00:23:04,061 having a discussion about measures to grow the economy 453 00:23:04,061 --> 00:23:06,794 and create the jobs -- create jobs if the President hadn't 454 00:23:06,795 --> 00:23:07,795 put it forward. 455 00:23:07,795 --> 00:23:11,994 I mean, it could be that Republicans seem so uninterested 456 00:23:11,994 --> 00:23:15,761 in extending this tax cut for middle-class Americans that, 457 00:23:15,761 --> 00:23:17,961 had this President not been pushing it, 458 00:23:17,961 --> 00:23:20,161 it might not have come up at all. So -- 459 00:23:20,161 --> 00:23:21,861 The Press: But that seems to be what animates this "We Can't Wait" 460 00:23:21,861 --> 00:23:23,027 campaign, which is -- 461 00:23:23,027 --> 00:23:23,528 Mr. Carney: Absolutely. 462 00:23:23,528 --> 00:23:25,428 The Press: -- the President displaying things that he can do, 463 00:23:25,428 --> 00:23:28,328 but they do seem sort of small-bore a lot of times. 464 00:23:28,328 --> 00:23:30,628 And is that reassuring to people, or does it -- 465 00:23:30,628 --> 00:23:35,428 Mr. Carney: I think what my sense is, is that the American people expect 466 00:23:35,428 --> 00:23:38,227 their President, as well as their members of Congress, 467 00:23:38,227 --> 00:23:43,194 to be doing everything they can -- big things and smaller things 468 00:23:43,194 --> 00:23:46,594 -- to address the biggest problems that face the 469 00:23:46,594 --> 00:23:49,494 country -- in this case, unemployment, 470 00:23:49,494 --> 00:23:52,026 growth that's not substantial enough. 471 00:23:52,027 --> 00:23:55,394 Those are major challenges that we face, 472 00:23:55,394 --> 00:23:57,294 and that we should be tackling here in Washington, 473 00:23:57,294 --> 00:24:01,227 working together, the administration and Congress, 474 00:24:01,227 --> 00:24:04,227 the administration using its executive authority; 475 00:24:04,227 --> 00:24:07,294 working with the private sector is vital as well. 476 00:24:07,294 --> 00:24:12,027 So it's not a -- there's no silver-bullet answer to a 477 00:24:12,027 --> 00:24:13,594 challenge this big, right? 478 00:24:13,594 --> 00:24:15,994 Especially as I was discussing earlier with Ed, 479 00:24:15,994 --> 00:24:20,428 given the size of the economic calamity that befell this 480 00:24:20,428 --> 00:24:25,928 country in the last -- prior to him taking office, 481 00:24:25,928 --> 00:24:27,695 in the months before he took office. 482 00:24:27,695 --> 00:24:31,394 So we're going to try everything -- small things, 483 00:24:31,394 --> 00:24:34,328 medium things and big things -- to address this problem. 484 00:24:34,328 --> 00:24:36,828 The Press: And just one cleanup from the week. 485 00:24:36,828 --> 00:24:38,860 When European leaders were here this week, 486 00:24:38,861 --> 00:24:41,728 or in other communications with leaders from the eurozone, 487 00:24:41,728 --> 00:24:44,795 are they still asking for money, for bailout money? 488 00:24:44,795 --> 00:24:48,928 Mr. Carney: I'm not sure I would characterize conversations 489 00:24:48,928 --> 00:24:53,361 in that way in the past, let alone in the present. 490 00:24:53,361 --> 00:24:56,394 So I think that the discussions that the President has had, 491 00:24:56,394 --> 00:24:58,461 at least at his level with his counterparts, 492 00:24:58,461 --> 00:25:03,428 have been about what the best approaches are to ensuring that 493 00:25:05,628 --> 00:25:09,761 action is taken that resolves conclusively the debt crisis 494 00:25:09,761 --> 00:25:10,761 that Europe has. 495 00:25:10,761 --> 00:25:16,628 And that goes to figuring out a firewall that is substantial 496 00:25:16,628 --> 00:25:18,828 enough to meet the challenge. 497 00:25:18,828 --> 00:25:24,226 We made clear that this is a problem that -- is a European 498 00:25:24,227 --> 00:25:27,961 problem that the Europeans have the capacity to deal with. 499 00:25:27,961 --> 00:25:34,394 And our role in this has been to offer our advice and counsel 500 00:25:34,394 --> 00:25:36,528 because of our experience in this matter, 501 00:25:36,528 --> 00:25:41,294 and because we live in a global economy and there are impacts 502 00:25:41,294 --> 00:25:46,127 that the situation in Europe has already caused for the global 503 00:25:46,127 --> 00:25:49,226 economy and clearly could cause if it gets worse. 504 00:25:49,227 --> 00:25:53,161 So it's in our interests, not just as friends and allies of 505 00:25:53,161 --> 00:25:58,261 our European counterparts, but as regards to the global economy 506 00:25:58,261 --> 00:26:00,061 and its effect on this economy. 507 00:26:00,061 --> 00:26:01,428 The Press: So I know you say they have capacity, 508 00:26:01,428 --> 00:26:03,161 because you guys have mentioned that several times this week. 509 00:26:03,161 --> 00:26:06,795 But did anything happen this week that reassures you about 510 00:26:06,795 --> 00:26:09,761 their willingness -- or were there any encouraging signs 511 00:26:09,761 --> 00:26:11,928 in those conversations? 512 00:26:11,928 --> 00:26:15,861 Mr. Carney: I would suggest that you might ask Treasury about that. 513 00:26:15,861 --> 00:26:20,661 I'm a little wary of making comments that can drive markets, 514 00:26:20,661 --> 00:26:21,661 as you might expect. 515 00:26:21,661 --> 00:26:27,728 But what we have seen is I think an acknowledgment -- and this 516 00:26:27,728 --> 00:26:32,928 goes back to G20 and prior -- that steps need to be taken, 517 00:26:32,928 --> 00:26:35,928 and the Europeans have taken some steps towards resolving 518 00:26:35,928 --> 00:26:38,461 this issue, and we -- working with them and consulting with 519 00:26:38,461 --> 00:26:41,361 them and advising them on the kinds of steps they need to 520 00:26:41,361 --> 00:26:44,194 take to get the job conclusively finished. 521 00:26:44,194 --> 00:26:45,127 The Press: Can I follow on that? 522 00:26:45,127 --> 00:26:45,661 Mr. Carney: Yes. 523 00:26:45,661 --> 00:26:46,461 The Press: Thanks, Jay. 524 00:26:46,461 --> 00:26:49,895 Beyond the fact that the economic hole was much deeper, 525 00:26:49,895 --> 00:26:53,394 as you described it, once the President took office than he 526 00:26:53,394 --> 00:26:56,528 initially expected, who else or what else does the President 527 00:26:56,528 --> 00:26:59,628 blame for this continued high unemployment rate? 528 00:26:59,628 --> 00:27:01,360 Mr. Carney: He's not really into blaming. 529 00:27:01,361 --> 00:27:04,728 I mean, the statement that the hole was deep is a fact, right? 530 00:27:04,728 --> 00:27:10,161 Eight million jobs lost is a serious situation, 531 00:27:10,161 --> 00:27:12,728 the kind of job loss we haven't seen since the Great Depression. 532 00:27:12,728 --> 00:27:13,795 It's just a fact. 533 00:27:13,795 --> 00:27:16,294 The kind of economic contraction that we haven't seen since the 534 00:27:16,294 --> 00:27:17,695 Great Depression. 535 00:27:17,695 --> 00:27:21,961 Those are the facts that we as a country have been dealing with 536 00:27:21,961 --> 00:27:24,761 as we've emerged out of the recession. 537 00:27:24,761 --> 00:27:28,494 And he's not really interested in blaming people for why we got 538 00:27:28,494 --> 00:27:31,428 into it, the problems that we got into. 539 00:27:31,428 --> 00:27:34,127 We didn't get into it overnight, and it won't -- we can't get out 540 00:27:34,127 --> 00:27:40,194 of this hole overnight, but we can continue to work in doing 541 00:27:40,194 --> 00:27:43,594 smaller measures as well as big things, 542 00:27:43,594 --> 00:27:47,094 like the American Jobs Act, to make sure the economy grows and 543 00:27:47,094 --> 00:27:48,094 creates jobs. 544 00:27:48,094 --> 00:27:51,628 And we need to do that also because -- going to the 545 00:27:51,628 --> 00:27:53,727 questions about Europe -- we need to take action on the 546 00:27:53,728 --> 00:27:57,328 things we can control to provide the sort of insurance and buffer 547 00:27:57,328 --> 00:28:02,027 for our economy so that we can withstand the kinds of shocks to 548 00:28:02,027 --> 00:28:04,561 the global economy that tend to happen, 549 00:28:04,561 --> 00:28:07,194 whether they come from Europe or Asia or the Middle East. 550 00:28:07,194 --> 00:28:11,994 So this is the responsible thing to do in an economy that is 551 00:28:11,994 --> 00:28:15,360 growing, but not fast enough, and that is creating jobs, 552 00:28:15,361 --> 00:28:18,061 but not at a big enough clip. 553 00:28:18,061 --> 00:28:21,328 So that's what he's focused on. 554 00:28:21,328 --> 00:28:24,293 The Press: And a question on Syria: How does the administration view the 555 00:28:24,294 --> 00:28:25,761 situation on the ground there? 556 00:28:25,761 --> 00:28:29,027 Is it a civil war? 557 00:28:29,027 --> 00:28:35,728 Mr. Carney: I think the -- what we have seen is the level 558 00:28:35,728 --> 00:28:38,594 of violence increase. 559 00:28:38,594 --> 00:28:43,127 But change there does not mean, necessarily, civil war. 560 00:28:43,127 --> 00:28:47,360 The crackdown has come because of violence that the Syrian 561 00:28:47,361 --> 00:28:50,895 government has perpetrated against its own people. 562 00:28:50,895 --> 00:28:52,895 We've seen when the government recedes, 563 00:28:52,895 --> 00:28:58,328 when it stops violent actions, violence recedes. 564 00:28:58,328 --> 00:29:02,895 So we -- rather than characterize it, 565 00:29:02,895 --> 00:29:06,094 we simply are working with our international partners 566 00:29:06,094 --> 00:29:15,194 to increase pressure on the Assad regime to isolate Assad, 567 00:29:15,194 --> 00:29:19,061 and to make it clear that the behavior is unacceptable. 568 00:29:19,061 --> 00:29:23,895 So, as you know, the Turkish government has taken action this 569 00:29:23,895 --> 00:29:26,761 week, the European Union has taken action this week on 570 00:29:26,761 --> 00:29:29,494 economic sanctions and other measures against 571 00:29:29,494 --> 00:29:30,494 the Syrian regime. 572 00:29:30,494 --> 00:29:35,994 We commend those actions, especially because they 573 00:29:35,994 --> 00:29:38,093 come after additional actions announced by 574 00:29:38,094 --> 00:29:40,294 the Treasury Department. 575 00:29:40,294 --> 00:29:45,761 Combined, that sends a strong message of international unity, 576 00:29:45,761 --> 00:29:48,461 and it will have the effect of increasing pressure on Assad and 577 00:29:48,461 --> 00:29:51,761 his circle. Steve. 578 00:29:51,761 --> 00:29:54,360 The Press: Jay, I have two questions, the first is repeating my partner 579 00:29:54,361 --> 00:29:55,661 Lesley's question yesterday. 580 00:29:55,661 --> 00:29:57,761 Alan Gross in Cuba -- is the President going to make any 581 00:29:57,761 --> 00:30:01,994 request to Cuba to release him by tomorrow on the two-year 582 00:30:01,994 --> 00:30:03,660 anniversary of his captivity? 583 00:30:08,027 --> 00:30:09,895 Mr. Carney: As you know, Steve, tomorrow will mark 584 00:30:09,895 --> 00:30:14,695 the two-year anniversary of the unjustified detention of Alan 585 00:30:14,695 --> 00:30:16,695 Gross by Cuban authorities. 586 00:30:16,695 --> 00:30:19,593 Our deepest sympathies are with Mr. Gross and his family and 587 00:30:19,594 --> 00:30:22,994 friends, who have suffered tremendously during this ordeal. 588 00:30:22,994 --> 00:30:27,127 It is past time for Mr. Gross to return home to his family where 589 00:30:27,127 --> 00:30:28,127 he belongs. 590 00:30:28,127 --> 00:30:30,761 Cuban authorities have failed in their effort to use Mr. Gross as 591 00:30:30,761 --> 00:30:32,961 a pawn for their own ends. 592 00:30:32,961 --> 00:30:36,361 They must heed the call of Mr. Gross's family and friends, 593 00:30:36,361 --> 00:30:39,294 the international community and the United States to immediately 594 00:30:39,294 --> 00:30:41,528 release Mr. Gross. 595 00:30:41,528 --> 00:30:43,661 Mr. Gross is a dedicated international development 596 00:30:43,661 --> 00:30:45,895 worker who has devoted his life to helping people in 597 00:30:45,895 --> 00:30:47,661 more than 50 countries. 598 00:30:47,661 --> 00:30:51,161 His work in Cuba was to support the free flow of information to, 599 00:30:51,161 --> 00:30:53,828 from and among the Cuban people, in support of Cuban 600 00:30:53,828 --> 00:30:54,828 civil society. 601 00:30:54,828 --> 00:30:58,061 And we remain steadfast in our support for Cuban society and 602 00:30:58,061 --> 00:31:02,660 the desire of the Cuban people to determine their own future. 603 00:31:02,661 --> 00:31:06,127 The Press: Will the President make a personal appeal, or is that it? 604 00:31:06,127 --> 00:31:09,027 Mr. Carney: I don't want to announce -- make any announcements about what he 605 00:31:09,027 --> 00:31:11,994 may or may not be saying, or statements he might issue. 606 00:31:11,994 --> 00:31:12,761 The Press: Second question. 607 00:31:12,761 --> 00:31:15,761 Did he get involved at all in the rail strike talks? 608 00:31:17,895 --> 00:31:21,293 Mr. Carney: I think the administration was engaged, 609 00:31:21,294 --> 00:31:24,728 obviously because of the potential impact of that strike, 610 00:31:24,728 --> 00:31:27,194 had it happened, on the economy. 611 00:31:27,194 --> 00:31:31,027 The President is responsible for everything that happens in his 612 00:31:31,027 --> 00:31:35,628 administration so I think he was certainly kept apprised 613 00:31:35,628 --> 00:31:37,026 of developments. 614 00:31:37,027 --> 00:31:37,961 The Press: Jay. 615 00:31:37,961 --> 00:31:39,361 Mr. Carney: Yes. Then Bill. 616 00:31:39,361 --> 00:31:40,594 The Press: Thank you. 617 00:31:40,594 --> 00:31:42,227 The President said Wednesday night -- this is following up 618 00:31:42,227 --> 00:31:43,728 on Christi's question -- at a fundraiser that he 619 00:31:43,728 --> 00:31:47,728 was "cautiously hopeful" that the eurozone or Europeans would 620 00:31:47,728 --> 00:31:48,728 do what was necessary. 621 00:31:48,728 --> 00:31:52,861 Is that a change at all from the outlook -- for the confidence 622 00:31:52,861 --> 00:31:56,928 you will have in Europe's, I guess, political -- 623 00:31:56,928 --> 00:31:59,428 Mr. Carney: I don't know that I would characterize it as a change. 624 00:31:59,428 --> 00:32:03,261 I would simply say that -- what he said, 625 00:32:03,261 --> 00:32:06,628 that we're "cautiously hopeful," for all the reasons that I've 626 00:32:06,628 --> 00:32:07,628 been saying for a long time. 627 00:32:07,628 --> 00:32:08,628 They have the resources. 628 00:32:08,628 --> 00:32:09,895 They know what needs to be done. 629 00:32:09,895 --> 00:32:14,161 It's obviously a difficult challenge, which we understand, 630 00:32:14,161 --> 00:32:16,127 having been through something similar. 631 00:32:16,127 --> 00:32:18,928 And that's why we're working so closely with them and providing 632 00:32:18,928 --> 00:32:22,094 the kind of counsel and advice that might be helpful and useful 633 00:32:22,094 --> 00:32:23,094 in this situation. 634 00:32:23,094 --> 00:32:28,261 But I wouldn't note that as -- necessarily as a change. 635 00:32:28,261 --> 00:32:29,928 Yes. Bill. 636 00:32:29,928 --> 00:32:32,094 The Press: Jay, back to the payroll tax. 637 00:32:32,094 --> 00:32:34,728 Boehner said yesterday, the Speaker, 638 00:32:34,728 --> 00:32:37,561 "I don't think there's any question that the payroll 639 00:32:37,561 --> 00:32:40,528 tax relief in fact helps the economy." 640 00:32:40,528 --> 00:32:43,027 So you've got a meeting of minds on the fact that payroll tax 641 00:32:43,027 --> 00:32:44,027 should be increased. 642 00:32:44,027 --> 00:32:45,661 The difference is on the payfor. 643 00:32:45,661 --> 00:32:49,127 Is going forward with no payfor an option you would consider? 644 00:32:49,127 --> 00:32:50,594 Mr. Carney: Well, I got that question earlier, 645 00:32:50,594 --> 00:32:54,895 and what we learned last night -- at least with regards to the 646 00:32:54,895 --> 00:32:58,895 Senate -- is that the debate really isn't about the payfor. 647 00:32:58,895 --> 00:33:03,428 Because even with their payfors, which were unbalanced and filled 648 00:33:03,428 --> 00:33:08,361 with window dressing and gorilla dust -- (laughter) 649 00:33:08,361 --> 00:33:10,361 -- Republicans voted overwhelmingly against their 650 00:33:10,361 --> 00:33:13,061 own bill, the bill that Senator McConnell had put forward 651 00:33:13,061 --> 00:33:14,961 suggesting that there was majority support from 652 00:33:14,961 --> 00:33:15,961 Republicans for it. 653 00:33:15,961 --> 00:33:21,994 So the question isn't do they -- maybe some think that it -- and 654 00:33:21,994 --> 00:33:24,660 they're right -- that a payroll tax cut helps the economy. 655 00:33:24,661 --> 00:33:25,661 It certainly does. 656 00:33:25,661 --> 00:33:26,828 Economists believe that. 657 00:33:26,828 --> 00:33:35,461 But what we haven't seen is that result in support in votes for 658 00:33:35,461 --> 00:33:38,528 absolutely necessary measures to extend and expand the payroll 659 00:33:38,528 --> 00:33:39,294 tax cut. 660 00:33:39,294 --> 00:33:41,027 The Press: But given that the numbers -- you probably could have 661 00:33:41,027 --> 00:33:46,461 gotten to 60 for an extension of the payroll tax cut without 662 00:33:46,461 --> 00:33:47,161 a payfor. 663 00:33:47,161 --> 00:33:48,227 What I'm asking is -- 664 00:33:48,227 --> 00:33:53,161 Mr. Carney: I'm not going to -- what the President has put forward is -- 665 00:33:53,161 --> 00:33:56,795 through the American Jobs Act -- is a very responsible and 666 00:33:56,795 --> 00:33:58,361 economically sensible way to pay for it, 667 00:33:58,361 --> 00:34:00,628 one that is supported by a vast majority of the American people. 668 00:34:00,628 --> 00:34:02,461 What Senate Democrats put forward, 669 00:34:02,461 --> 00:34:07,227 in the specific case of legislation just on the payroll 670 00:34:07,227 --> 00:34:11,928 tax cut extension and expansion, is another way that is 671 00:34:11,928 --> 00:34:15,694 responsible and supported by a majority of the American people 672 00:34:15,695 --> 00:34:16,695 to pay for it. 673 00:34:16,695 --> 00:34:19,428 So we obviously think that's the preferable way to go. 674 00:34:19,428 --> 00:34:20,493 That's the President's position. 675 00:34:20,494 --> 00:34:23,661 What I won't do is say what -- I'm not going to rule in or out 676 00:34:23,661 --> 00:34:30,161 from here what he may or may not support when this thing gets to 677 00:34:30,161 --> 00:34:31,795 the finish line, as we hope it does. 678 00:34:31,795 --> 00:34:34,328 What I have said in terms of payfors, 679 00:34:34,328 --> 00:34:37,061 is that there are payfors that he might -- that he would 680 00:34:37,061 --> 00:34:39,895 support, and there are clearly payfors that he would not, 681 00:34:39,895 --> 00:34:42,226 because he wants to make sure that however we proceed here, 682 00:34:42,226 --> 00:34:45,094 we do it in a way that is responsible, 683 00:34:45,094 --> 00:34:47,328 that keeps our commitments, including the commitments we 684 00:34:47,328 --> 00:34:51,094 made in August through the Budget Control Act, 685 00:34:51,094 --> 00:34:54,127 and that doesn't do any harm to the economy or harm to sectors 686 00:34:54,127 --> 00:34:56,895 of the American public who need our help. 687 00:34:56,895 --> 00:34:57,895 The Press: Thanks, Jay. 688 00:34:57,895 --> 00:35:00,161 The Press: I guess in Washington we often get to the lesser of two evils. 689 00:35:00,161 --> 00:35:05,094 The lesser of two evils may be a payroll extension without a 690 00:35:05,094 --> 00:35:06,728 payfor, but then a tax -- 691 00:35:06,728 --> 00:35:07,795 Mr. Carney: Well, two more things on that. 692 00:35:07,795 --> 00:35:10,695 First of all, the President obviously prefers to pay for 693 00:35:10,695 --> 00:35:14,127 it in the manner that he put forward in the American Jobs 694 00:35:14,127 --> 00:35:16,728 Act and in the manner that the Senate Democrats put forward -- 695 00:35:16,728 --> 00:35:19,127 and we'll see how this proceeds from here. 696 00:35:19,127 --> 00:35:21,261 The second part, on just the general principle of paying 697 00:35:21,261 --> 00:35:26,328 for tax cuts, is while it is interesting to behold the sudden 698 00:35:26,328 --> 00:35:28,361 focus on this among Republicans. 699 00:35:28,361 --> 00:35:30,528 I think there is a long multi-decade history of 700 00:35:30,528 --> 00:35:34,328 Republicans not believing and actually aggressively stating 701 00:35:34,328 --> 00:35:36,428 that tax cuts do not need to be paid for. 702 00:35:36,428 --> 00:35:37,694 But that's their position. 703 00:35:37,695 --> 00:35:38,461 Mike, last question. 704 00:35:38,461 --> 00:35:41,694 The Press: Actually, two quick ones, again. 705 00:35:41,695 --> 00:35:45,027 The joint appearance today of the 42nd and 44th Presidents has 706 00:35:45,027 --> 00:35:49,227 reawakened the speculation of a possible Obama-Clinton ticket. 707 00:35:49,227 --> 00:35:50,094 I was wondering if there's any -- 708 00:35:50,094 --> 00:35:52,528 Mr. Carney: Only among people who know absolutely nothing about 709 00:35:52,528 --> 00:35:53,560 which they speak. 710 00:35:53,561 --> 00:35:57,394 But -- (laughter) -- not you, not you. 711 00:35:57,394 --> 00:36:03,593 But, no, I mean, we've been very clear about this for so long. 712 00:36:03,594 --> 00:36:06,928 So -- do you mean Bill Clinton or Secretary Clinton? 713 00:36:06,928 --> 00:36:09,194 (laughter) 714 00:36:09,194 --> 00:36:10,294 The Press: Hillary -- Secretary Clinton, yes. 715 00:36:10,294 --> 00:36:11,361 That would be Secretary Clinton. 716 00:36:11,361 --> 00:36:12,094 So just wild speculation. 717 00:36:12,094 --> 00:36:12,961 Mr. Carney: I think Secretary Clinton has spoken to this, 718 00:36:12,961 --> 00:36:14,660 I think the President has spoken to it, 719 00:36:14,661 --> 00:36:17,661 I think the Vice President has -- that Barack Obama and Joe 720 00:36:17,661 --> 00:36:21,328 Biden will be on the ticket next year and will be taking the oath 721 00:36:21,328 --> 00:36:23,394 of office in January of 2013. 722 00:36:23,394 --> 00:36:27,493 The Press: And the second one, in her news conference that just ended, 723 00:36:27,494 --> 00:36:30,895 Representative Pelosi apparently had suggested a possible payfor 724 00:36:30,895 --> 00:36:35,127 in for the payroll tax holiday coming out of the Overseas 725 00:36:35,127 --> 00:36:37,161 Contingency Operation Fund. 726 00:36:37,161 --> 00:36:38,861 Is that something that's been discussed with the White House? 727 00:36:38,861 --> 00:36:42,261 Is that something that the White House would possibly support? 728 00:36:42,261 --> 00:36:43,528 Mr. Carney: Going back to some of my other answers, 729 00:36:43,528 --> 00:36:47,928 I don't want to speculate about what a package might look like, 730 00:36:47,928 --> 00:36:50,394 especially if it hasn't even been put in 731 00:36:50,394 --> 00:36:51,761 legislative form yet. 732 00:36:51,761 --> 00:36:57,127 And I was here probably when the Democratic leader gave this 733 00:36:57,127 --> 00:36:59,261 press conference, so I'm not even aware of that yet. 734 00:36:59,261 --> 00:37:00,461 So thanks very much. 735 00:37:00,461 --> 00:37:02,294 The Press: Week ahead? 736 00:37:02,294 --> 00:37:04,560 Mr. Carney: We will be providing a week ahead a little later today. 737 00:37:04,561 --> 00:37:05,861 We haven't got it ready for you yet. 738 00:37:05,861 --> 00:37:07,961 The Press: Hey, Jay, what kind of dust did you say it was covered with? 739 00:37:07,961 --> 00:37:08,528 You said -- 740 00:37:08,528 --> 00:37:09,328 The Press: Gorilla dust. 741 00:37:09,328 --> 00:37:10,127 The Press: What is gorilla dust? 742 00:37:10,127 --> 00:37:11,428 The Press: Gorillas before they fight -- 743 00:37:11,428 --> 00:37:14,928 Mr. Carney: Hey, Nakamura -- first of all, you've insulted your friend and 744 00:37:14,928 --> 00:37:16,895 colleague from The Washington Post who wrote at length -- 745 00:37:16,895 --> 00:37:18,594 (laughter) 746 00:37:18,594 --> 00:37:21,461 -- in quality prose, about gorilla dust. 747 00:37:21,461 --> 00:37:23,026 The Press: The only people who read me are you and my mom. 748 00:37:23,027 --> 00:37:24,127 (laughter) 749 00:37:24,127 --> 00:37:24,928 Mr. Carney: Yes, well -- 750 00:37:24,928 --> 00:37:25,895 The Press: What is gorilla dust? 751 00:37:25,895 --> 00:37:27,861 Mr. Carney: Gorilla dust is, as I understand it, 752 00:37:27,861 --> 00:37:33,961 a diversionary tactic that gorillas use when they're doing 753 00:37:33,961 --> 00:37:36,660 combat, and they throw up dust. 754 00:37:36,661 --> 00:37:41,061 It's a defensive measure to get people to be distracted or to 755 00:37:41,061 --> 00:37:43,094 get their potential opponent to be distracted -- 756 00:37:43,094 --> 00:37:44,161 The Press: You're well versed on this. 757 00:37:44,161 --> 00:37:45,695 (laughter) 758 00:37:45,695 --> 00:37:48,494 The Press: Do you feel this is better than saying "blowing smoke," 759 00:37:48,494 --> 00:37:49,561 for example? 760 00:37:49,561 --> 00:37:50,695 Mr. Carney: I just like "gorilla dust." 761 00:37:50,695 --> 00:37:52,494 It rolls off the tongue. 762 00:37:52,494 --> 00:37:53,928 Thanks a lot, everybody.