English subtitles for clip: File:2-19-13- White House Press Briefing.webm

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Mr. Carney:
Good day, everyone.

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Thanks for being here.

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Welcome to your
White House briefing.

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I have no announcements to make,
so we'll go straight to the

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Associated Press.

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The Press:
Thank you.

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The President outlined some
pretty dire consequences for the

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economy today if the
sequester takes effect.

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I'm wondering, though, if those
consequences are so dire why has

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he not picked up the phone to
talk to Senator McConnell about

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supporting the Senate
Democrats plan,

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and why are the two staffs
not in any communication about

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this deadline?

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Mr. Carney:
Well, we are in regular
communication with Congress

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about a variety of topics that
are high priorities for the

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President, including the need to
ensure that Washington does not

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manufacture a crisis that
puts hundreds of thousands of

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people's jobs at risk, as
you heard the President talk

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about today.

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This is a simple thing.

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Over all, it's a
complicated subject,

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but it's a simple thing:
Congress needs to act to make

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sure we do not allow the
so-called sequester to

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take effect.

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It's wholly unnecessary and
would be a self-inflicted wound

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on the economy.

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There are ample ways to do this.

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The Democrats in the Senate
and the House have tabled

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legislation that -- put forward
legislation that would buy down

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the deficit -- buy
down the sequester,

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postpone it to the end of
the year in a balanced way.

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And as the President made
clear, there should --

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we've done this before,
just a few months ago.

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Republicans supported it then.

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There's no reason why we can't
do it again in order to allow

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Congress to have the time to
work on the regular budgetary

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process so that we can
achieve the larger goal,

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which is further significant
deficit reduction in a

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balanced way.

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It can't be --

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The Press:
But that doesn't really answer
the question about why he's not,

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or his staff is not apparently
in communication with the top

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Republican in the
Senate on this issue.

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Mr. Carney:
Well, look, we are in regular
communication with Congress on a

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variety of issues,
including this.

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The Press:
Are you in communication
with McConnell on this?

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Mr. Carney:
I don't have any calls
or communications to read

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out to you.

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But this is not a complicated
piece of business.

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The broader issue of further
deficit reduction in a balanced

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way will require time, and
that's why it's so important for

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Congress to move forward with
a temporary postponement of the

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sequester, because the
consequences of not doing that

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would be catastrophic, as the
President made clear in his

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event just this morning.

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The Press:
Should the sequester
take effect --

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and we are only 10 days away
-- I know the President and the

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government have outlined
some severe consequences,

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but does the White House
think the economy could handle

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the sequester?

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Mr. Carney:
No, we believe that the economy
would be negatively affected.

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Outside economists have made
clear that the economy would be

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negatively affected.

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There is no question that this
would set back the recovery and

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slow down job creation.

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If we have one fundamental
goal here in Washington,

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it should be to work towards
growing the economy and

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increasing job creation,
not doing unnecessary,

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arbitrary things to halt
or reverse that process.

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So we, having calculated
specific effects of the

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sequester if it were
to take effect --

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a lot of others outside have
done that and I don't think you

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can find anyone that I've seen
anyway that suggests that the

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effects would not be negative.

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The Press:
And quickly on immigration.

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Does the White House have a
target timeline for when you

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would put forward the
President's immigration bill?

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Mr. Carney:
We haven't identified
a specific date, Julie.

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The President has made clear
that he is focused on the Senate

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moving forward on a bipartisan
effort to enact comprehensive

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immigration reform.

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He supports that effort.

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He's also made clear that if
that effort stalls or fails,

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if progress halts, that he
is prepared to submit his own

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legislation for the
Senate to act on.

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But his preference
overwhelmingly is for the good

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progress that's been made
by that bipartisan group to

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continue; for it to move forward
to a point where a bill is

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produced that can be voted on
and can win support of Democrats

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and Republicans,
move to the House,

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win support of Democrats and
Republicans and get to his desk

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for his signature.

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One of the things we've seen
over the last weeks and months

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is that there's a real
convergence of positions between

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the President and both Democrats
and Republicans in the Senate

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about how we should
move forward.

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The blueprint that the President
has had online since 2011 that

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outlined his principles for
comprehensive immigration reform

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is reflected very much in the
proposals and ideas that Senator

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Rubio, for example, has
discussed and the so-called Gang

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of Eight, the bipartisan
group in the Senate has been

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working on.

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So the President remains hopeful
that the Senate will move

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forward because is it absolutely
his preference that that's

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what happens.

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The Press:
There had been some talk -- I
think the President even raised

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this and some of his senior
advisors have raised early March

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as a possible benchmark for
when he might move forward --

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when he wants to see the
Senate at least move forward.

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Is that not the
deadline you're seeing?

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Mr. Carney:
Well, we have not actually set
a date because we're looking

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for progress.

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I think that what we have seen
and I think you have seen is

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reports that the senators
themselves who are involved in

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this effort have
talked about March.

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That would certainly be a good
thing and a welcomed thing,

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because the President is very
interested in progress being

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made and interested in this
process moving forward quickly,

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even though it is important
and significant work that needs

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to be done.

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But we have not set a deadline.

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We are focused on
working with the Senate,

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working with those members who
want to put together a package

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that can earn broad
bipartisan support.

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And as long as that
progress continues,

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we will remain hopeful that it
will produce a bill that the

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President can ultimately
sign and we can get this very

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important piece
of business done.

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The Press:
Simpson and Bowles struck again.

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(laughter)

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Today, they rolled out a new,
updated plan for $2.4 trillion

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in deficit reduction over 10
years and that includes spending

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cuts and health care
reforms and tax reforms.

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And where does the President
stand on this new package?

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Mr. Carney:
Alan Simpson and Erskine
Bowles, the chairmen --

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the co-chairmen of the
President's fiscal commission,

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today, once again, obliterated
the argument put forward by

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Republicans that we should
pursue further deficit reduction

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in an unbalanced way.

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Nobody who has addressed this
issue credibly and seriously has

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come up with a plan that does
not include the essential

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balance that the
President supports.

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And that certainly includes
Erskine Bowles and Alan Simpson,

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and it includes both the work
they did on the commission and

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what they put
forward again today.

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So the President believes,
outside economists believe,

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bipartisan panels and
commissions and groups and

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gatherings and salons agree,
that we need to do this in a

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balanced way, that that's the
responsible way to reduce our

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deficit, to reach that goal of
at least $4 trillion in deficit

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reduction over 10 years that
stabilizes our fiscal situation,

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puts us on a fiscally
sustainable path in terms of the

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relationship between
deficits and debt to GDP.

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And that's why the President, in
every effort with the Speaker of

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the House and in his budgets and
in his submission to the super

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committee, has put forward a
balanced deficit reduction plan

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that includes more spending
cuts than revenues,

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but insists that we do this
in a way that's fair to senior

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citizens and middle-class
families and others so that we

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don't ask those groups of
Americans to bear the burden

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solely of deficit reduction
while saying that wealthy

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individuals and corporations
can be held harmless.

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That, unfortunately, is the
approach that Republicans have

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taken all along, and it's the
approach they're taking right

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now with regards
to the sequester.

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They would rather, if
their position holds,

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see hundreds of thousands
of Americans have their jobs

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threatened, have our
national security endangered,

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than ask wealthy corporations
and individuals to forsake some

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loopholes in the tax code.

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That is a very tough
position to sell, we believe.

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The Press:
Does the President support
the specifics of this updated

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Simpson-Bowles plan?

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Mr. Carney:
The President has his own plan,
and it has been very clear,

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again, going back to the
submission to the super

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committee, the submission
of the President's budget,

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the proposals and counteroffers
that the President made in his

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negotiations with the Speaker
of the House late last year,

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the leftover portions of which
remain on the table and are

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available for action today,
including the very tough choices

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the President was willing to
make when it came to further

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spending cuts and
entitlement reform.

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But there has to be balance.

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It has to include the kind of
tax reform that produces revenue

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that Speaker Boehner himself
embraced just a few months ago

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but suddenly now has decided
is bad policy or unnecessary --

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that they would rather
seniors foot the bill,

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or middle-class families trying
to send their kids to college,

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or in the case of the
impact of the sequester,

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see first responders
lose their jobs.

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That's just bad policy, and the
President doesn't support it.

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The Press:
I understand your not wanting
to announce anything about --

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any calls to announce, but I
want to make sure I understand

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what the President is willing
to do to help get a deal done.

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He said his door is open.

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What kind of direct presidential
involvement does the White House

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think would be helpful here?

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Phone calls, meetings, getting
the Vice President involved?

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I just want to see what's in
the universe of possibility.

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Mr. Carney:
The President, the
Vice President,

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the senior members of the
administration both in the

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Cabinet and at the White House
are actively engaged with

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Congress, with congressional
offices and congressional

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members, on a variety of
legislative priorities,

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including the need to
avoid the sequester,

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including the need to achieve
significant further balanced

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deficit reduction, including
comprehensive immigration

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reform, including
reducing gun violence,

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and those efforts will continue.

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We don't read out every
phone call or every meeting,

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but we are working with Congress
on all of these priorities.

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When it comes to avoiding the
sequester, there are really --

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we are down to 10 days here.

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The options here are pretty
clear: Do what Senate Democrats

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and House Democrats
have proposed,

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which is postpone the sequester
by a certain amount of time

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through reductions in the
deficit that are achieved in a

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balanced way through
both revenues and cuts;

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or embrace the Republican
position that they have held

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thus far, which is to say
that it's better for all those

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negative effects to take
place when the sequester is

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implemented than to ask
corporate jet owners or oil and

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gas companies to give up their
special tax breaks that average

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Americans don't enjoy.

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And that's just bad policy.

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The Press:
Well, why not say the President
is going to have a meeting or

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going to call Speaker
Boehner or Senator McConnell?

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Mr. Carney:
But we will -- the President
has made clear his door is open.

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What we've heard from the
Republicans thus far is a

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categorical refusal at least at
the leadership level to accept

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the basic principle that
balance is necessary.

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They would rather adopt a
position that says seniors have

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to bear the burden, middle-class
families have to bear the

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burden, the wealthiest
individuals and corporations

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will be held harmless; and if
you don't adopt that extremist

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position, then the sequester
goes into effect with all of the

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harmful impacts that the
President detailed today.

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00:12:04,533 --> 00:12:07,900
The door is open, but balance
is absolutely essential.

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00:12:07,900 --> 00:12:10,266
Balance is what -- again, going
back to Matt's question --

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00:12:10,266 --> 00:12:14,632
is what bipartisan panels
have always recommended.

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00:12:14,633 --> 00:12:17,734
It's what economists
say is necessary.

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00:12:17,734 --> 00:12:23,066
We should not allow our economy
to be held hostage to sort of

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00:12:23,066 --> 00:12:25,800
reckless partisan agendas.

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00:12:25,800 --> 00:12:26,800
That's bad for the economy.

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00:12:26,800 --> 00:12:27,834
It's bad for the middle class.

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00:12:27,834 --> 00:12:30,834
The Press:
And lastly, everyone agrees that
the sequester is a bad idea,

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00:12:30,834 --> 00:12:33,834
but didn't it originate -- the
idea for the sequester originate

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00:12:33,834 --> 00:12:35,199
here at the White House?

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00:12:35,200 --> 00:12:36,533
Mr. Carney:
Well, we've been
through this a lot --

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00:12:36,533 --> 00:12:40,066
I know you're filling in --
but here's the fundamental fact.

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00:12:40,066 --> 00:12:43,100
During the deficit reduction of
the debt ceiling negotiations,

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00:12:43,100 --> 00:12:46,033
because the Republicans
refused to embrace balance,

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00:12:46,033 --> 00:12:51,967
refused in the end to join hands
with the President and pursue a

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00:12:51,967 --> 00:12:55,500
grand bargain, there was an
absolute necessity to avoid

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00:12:55,500 --> 00:12:59,567
default, and both sides were
looking for trigger mechanisms

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00:12:59,567 --> 00:13:01,867
-- this is complicated
budget-speak --

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00:13:01,867 --> 00:13:05,500
to help make this
package possible.

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00:13:05,500 --> 00:13:08,166
The sequester was something
that was discussed,

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00:13:08,166 --> 00:13:13,700
and as has been reported, it was
an idea that the White House put

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00:13:13,700 --> 00:13:17,734
forward because it was put
forward by Republican Senator

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00:13:17,734 --> 00:13:21,667
Gramm and Rudman back in the
'80s as part of the Gramm-Rudman

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00:13:21,667 --> 00:13:23,800
deal -- there is a
history here to this.

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00:13:23,800 --> 00:13:28,567
But let's be clear:
Republicans embraced it.

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00:13:28,567 --> 00:13:30,500
Every member of the House
Republican leadership

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00:13:30,500 --> 00:13:31,967
voted for it.

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00:13:31,967 --> 00:13:35,300
Nearly two to one in the
House Republicans voted for it

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00:13:35,300 --> 00:13:36,300
over Democrats.

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00:13:36,300 --> 00:13:38,967
And on the day it passed, the
Speaker of the House said he got

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00:13:38,967 --> 00:13:44,266
98% of what he wanted and
that he was pretty happy.

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00:13:44,266 --> 00:13:48,099
The issue here is the sequester
was designed never to take

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00:13:48,100 --> 00:13:51,633
effect because it was supposed
to force Congress to do

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00:13:51,633 --> 00:13:55,000
responsible, difficult things,
make choices about how we reduce

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00:13:55,000 --> 00:13:59,266
our deficit in a way that would
allow us to avoid the sequester,

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00:13:59,266 --> 00:14:01,900
the indiscriminate,
across-the-board,

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00:14:01,900 --> 00:14:05,433
devastating cuts that
the sequester represents.

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00:14:05,433 --> 00:14:09,867
Unfortunately, Republicans
have thus far all along the way

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00:14:09,867 --> 00:14:12,599
refused to go along with
the fundamental principle of

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00:14:12,600 --> 00:14:15,400
balance, that we need to do
this with spending cuts --

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00:14:15,400 --> 00:14:17,733
tough spending cuts, with
entitlement reforms and

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00:14:17,734 --> 00:14:18,734
with revenues.

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00:14:18,734 --> 00:14:19,800
I want to jump around.

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00:14:19,800 --> 00:14:21,433
Lynn Sweet in the
back -- how are you?

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00:14:21,433 --> 00:14:22,633
The Press:
Fine, thank you.

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00:14:22,633 --> 00:14:25,834
There was another tragic
shooting in Chicago just a few

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00:14:25,834 --> 00:14:26,834
days ago.

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00:14:26,834 --> 00:14:30,566
It was a young girl whose
sister was at the Obama

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00:14:30,567 --> 00:14:31,767
speech last week.

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00:14:31,767 --> 00:14:34,600
I'm wondering if there's any
reaching out from the White

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00:14:34,600 --> 00:14:35,667
House to her family.

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00:14:35,667 --> 00:14:37,433
The funeral hasn't happened yet.

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00:14:37,433 --> 00:14:40,600
Any particular message in
the wake of another horrific

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00:14:40,600 --> 00:14:44,166
shooting with this close
connection to the Obama speech

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00:14:44,166 --> 00:14:46,266
with her sister being there?

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00:14:46,266 --> 00:14:49,132
Mr. Carney:
I don't have any communications
to report to you, Lynn.

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00:14:49,133 --> 00:14:54,266
This is another example, tragic
example of a young life being

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00:14:54,266 --> 00:14:59,967
taken away by the scourge of
gun violence in this country,

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00:14:59,967 --> 00:15:05,000
and is a reminder of why we
need to act together here in

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00:15:05,000 --> 00:15:10,600
Washington to do everything
we can to reduce gun violence,

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00:15:10,600 --> 00:15:14,600
to do it in a way that, as
the President has insisted,

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00:15:14,600 --> 00:15:17,700
respects our Second
Amendment rights,

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00:15:17,700 --> 00:15:22,033
but to take necessary action
to reduce this scourge,

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00:15:22,033 --> 00:15:25,467
because it is taking too
many young lives in America.

303
00:15:25,467 --> 00:15:27,567
The Press:
Is there some communication
since there was --

304
00:15:27,567 --> 00:15:29,900
Mr. Carney:
I don't have anything
on that right now.

305
00:15:29,900 --> 00:15:32,100
Jackie.

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00:15:32,100 --> 00:15:33,533
The Press:
Back to the sequester.

307
00:15:33,533 --> 00:15:36,100
When you say, and the President
says his door is open,

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00:15:36,100 --> 00:15:38,600
that's a rather
passive construction.

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00:15:38,600 --> 00:15:42,467
Is there anything -- why
doesn't he go to their door,

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00:15:42,467 --> 00:15:43,367
knock on their door?

311
00:15:43,367 --> 00:15:44,367
And also --

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00:15:44,367 --> 00:15:46,900
Mr. Carney:
We've been clear, Jackie,
about what our position is.

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00:15:46,900 --> 00:15:52,433
We have supported the bills that
have been put forward by Senate

314
00:15:52,433 --> 00:15:54,800
Democrats and House Democrats.

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00:15:54,800 --> 00:15:58,500
And when we talk here about
leadership and doing the

316
00:15:58,500 --> 00:15:59,934
responsible thing,
let's be clear,

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00:15:59,934 --> 00:16:07,867
as the President said if you
accept the basic premise that

318
00:16:07,867 --> 00:16:12,033
Democrats are more resistant
than Republicans to savings from

319
00:16:12,033 --> 00:16:14,834
entitlements or spending
cuts, and Republicans are more

320
00:16:14,834 --> 00:16:17,766
resistant to savings
through revenues,

321
00:16:17,767 --> 00:16:18,834
what have the Democrats done?

322
00:16:18,834 --> 00:16:20,199
What has the President done?

323
00:16:20,200 --> 00:16:23,066
Consistently put forward
proposals that include not just

324
00:16:23,066 --> 00:16:27,066
revenues; they haven't put
forward proposals that reduce

325
00:16:27,066 --> 00:16:30,633
our deficits solely through
raising taxes or increasing

326
00:16:30,633 --> 00:16:31,800
revenues or tax reform.

327
00:16:31,800 --> 00:16:32,800
No.

328
00:16:32,800 --> 00:16:35,099
The President has put forward
proposals that have cut

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00:16:35,100 --> 00:16:38,033
spending, including through
entitlement reforms,

330
00:16:38,033 --> 00:16:40,000
by more than two to one.

331
00:16:40,000 --> 00:16:44,000
Thus far, the President --
and Senator Simpson and Erskine

332
00:16:44,000 --> 00:16:46,000
Bowles noted this I think
today in their presentation --

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00:16:46,000 --> 00:16:49,367
the President has overseen
more than $2.5 trillion in

334
00:16:49,367 --> 00:16:50,433
deficit reduction.

335
00:16:50,433 --> 00:16:53,967
It hasn't always been pretty,
but the fact is this President

336
00:16:53,967 --> 00:16:56,900
has signed into law more
than $2.5 trillion in

337
00:16:56,900 --> 00:16:57,900
deficit reduction.

338
00:16:57,900 --> 00:17:00,199
And thus far, more than
two-thirds of that has come

339
00:17:00,200 --> 00:17:01,500
through spending cuts.

340
00:17:01,500 --> 00:17:02,567
We need balance.

341
00:17:02,567 --> 00:17:06,099
And the President's
door is open.

342
00:17:06,099 --> 00:17:09,199
What we haven't seen from
Republicans thus far is a

343
00:17:09,200 --> 00:17:14,800
proposal that reflects the
essential ingredient of balance.

344
00:17:14,800 --> 00:17:17,165
We know that they want
to voucherize Medicare.

345
00:17:17,165 --> 00:17:21,000
We know that they want to ask
seniors to bear the burden,

346
00:17:21,000 --> 00:17:24,400
or middle-class families
to foot the bill.

347
00:17:24,400 --> 00:17:26,734
But that is bad policy.

348
00:17:26,733 --> 00:17:28,332
And it's bad for
the middle class.

349
00:17:28,333 --> 00:17:30,400
And it's not acceptable
to this President.

350
00:17:30,400 --> 00:17:34,266
What they should do is take
their cue from Senator Simpson

351
00:17:34,266 --> 00:17:38,834
and Mr. Bowles and from others
who have said balance is the way

352
00:17:38,834 --> 00:17:40,100
we have to move forward.

353
00:17:40,100 --> 00:17:42,533
And we would welcome that in
the short-term buy-down of the

354
00:17:42,533 --> 00:17:46,033
sequester and in the overall
tackling of the problem.

355
00:17:46,033 --> 00:17:47,966
The Press:
You also said, we're
working with Congress on all

356
00:17:47,967 --> 00:17:49,567
these priorities.

357
00:17:49,567 --> 00:17:51,834
That just means congressional
Democrats, right?

358
00:17:51,834 --> 00:17:52,767
Mr. Carney:
No.

359
00:17:52,767 --> 00:17:55,100
The Press:
Like last week's meeting
with Senate Democrats?

360
00:17:55,100 --> 00:17:57,033
Where have you worked
with Republicans?

361
00:17:57,033 --> 00:18:00,100
Mr. Carney:
We have been -- going to the
question I had earlier about

362
00:18:00,100 --> 00:18:05,300
immigration reform -- we've
been working with every member's

363
00:18:05,300 --> 00:18:08,265
office that's involved in
the Gang of Eight process.

364
00:18:08,266 --> 00:18:10,867
The President, as you know, met
with the Democrats associated

365
00:18:10,867 --> 00:18:12,966
with the Gang of Eight
on immigration reform.

366
00:18:12,967 --> 00:18:17,367
Our communications with every
interested party in that group

367
00:18:17,367 --> 00:18:18,667
will continue.

368
00:18:18,667 --> 00:18:22,533
And we are engaged
with Congress,

369
00:18:22,533 --> 00:18:25,233
members of both parties,
offices from both parties,

370
00:18:25,233 --> 00:18:27,466
on a variety of issues and
all of the priorities that the

371
00:18:27,467 --> 00:18:28,734
President has put forward.

372
00:18:28,734 --> 00:18:30,533
But let's be clear.

373
00:18:30,533 --> 00:18:33,833
The problem here isn't a lack of
meetings around the table in the

374
00:18:33,834 --> 00:18:35,834
Roosevelt Room or
the Cabinet Room.

375
00:18:35,834 --> 00:18:39,500
We saw that in the
summer of 2011,

376
00:18:39,500 --> 00:18:44,000
when the Speaker of the House
decided not to pursue the

377
00:18:44,000 --> 00:18:45,000
grand bargain.

378
00:18:45,000 --> 00:18:49,233
We saw it again in December in
the exhaustively reported fact

379
00:18:49,233 --> 00:18:54,433
that the Speaker walked away
from what was, by any measure,

380
00:18:54,433 --> 00:18:58,266
a fair compromise that the
President put forward that

381
00:18:58,266 --> 00:19:00,800
represented a willingness to
come more than halfway towards

382
00:19:00,800 --> 00:19:04,300
the Republicans on both revenue
and spending, and unfortunately,

383
00:19:04,300 --> 00:19:07,399
the Speaker walked
away from that effort.

384
00:19:07,400 --> 00:19:12,000
So we have put forward
a number of proposals.

385
00:19:12,000 --> 00:19:16,400
We will continue to work
with members of Congress.

386
00:19:16,400 --> 00:19:17,367
The Senate needs to act.

387
00:19:17,367 --> 00:19:18,033
The House needs to act.

388
00:19:18,033 --> 00:19:21,899
We need to avoid this sequester
because those who are affected

389
00:19:21,900 --> 00:19:26,000
most are middle-class
families across the country.

390
00:19:26,000 --> 00:19:27,500
Jon, then Major.

391
00:19:27,500 --> 00:19:29,500
The Press:
You said that you've
talked to the members of --

392
00:19:29,500 --> 00:19:31,633
the Republicans on immigration.

393
00:19:31,633 --> 00:19:34,734
Senator Rubio's office just
put something out saying,

394
00:19:34,734 --> 00:19:37,800
"Senator Rubio's office has
never discussed immigration

395
00:19:37,800 --> 00:19:40,332
"policy with anyone
in the White House."

396
00:19:40,333 --> 00:19:41,100
Who's telling the truth?

397
00:19:41,100 --> 00:19:44,934
Mr. Carney:
We have been in contact with
everybody involved in this

398
00:19:44,934 --> 00:19:46,200
effort on Capitol Hill.

399
00:19:46,200 --> 00:19:47,767
The Press:
So they're not
telling the truth?

400
00:19:47,767 --> 00:19:49,066
Mr. Carney:
You're reading to me
from a BlackBerry.

401
00:19:49,066 --> 00:19:52,066
I can tell you what I know
about the White House's efforts.

402
00:19:52,066 --> 00:19:53,233
Actually it's an iPhone.

403
00:19:53,233 --> 00:19:54,133
The Press:
It's an iPhone.

404
00:19:54,133 --> 00:19:54,934
Mr. Carney:
Is that a 5?

405
00:19:54,934 --> 00:19:56,100
(laughter)

406
00:19:56,100 --> 00:19:56,966
The Press:
It's a 4S.

407
00:19:56,967 --> 00:20:00,433
On the question
of the sequester,

408
00:20:00,433 --> 00:20:03,500
has the President had a single
face-to-face meeting with

409
00:20:03,500 --> 00:20:05,967
Republican leaders since
January 1st about averting these

410
00:20:05,967 --> 00:20:07,667
spending cuts?

411
00:20:07,667 --> 00:20:09,300
Mr. Carney:
I don't have any meetings
to read out to you.

412
00:20:09,300 --> 00:20:11,367
Again, we don't report every
meeting, every conversation.

413
00:20:11,367 --> 00:20:14,265
I would note that in the summer
of 2011 and again at the end of

414
00:20:14,266 --> 00:20:17,400
last year, the negotiations and
consultations that took place

415
00:20:17,400 --> 00:20:19,033
with Republican leaders, in
particular the Speaker of the

416
00:20:19,033 --> 00:20:20,332
House, some of
which were secret,

417
00:20:20,333 --> 00:20:22,567
were secret not because
we called for them to be

418
00:20:22,567 --> 00:20:23,967
secret, okay?

419
00:20:23,967 --> 00:20:26,367
Let's just be clear about our
history here and about how --

420
00:20:26,367 --> 00:20:27,300
The Press:
You're suggesting there
have been meetings.

421
00:20:27,300 --> 00:20:28,600
Mr. Carney:
I'm not suggesting anything
about what's happening now.

422
00:20:28,600 --> 00:20:30,166
I'm just saying that we
don't always read out every

423
00:20:30,166 --> 00:20:33,200
conversation or meeting we
have with members of Congress.

424
00:20:33,200 --> 00:20:38,000
And in taking that approach,
we're mindful of the requests of

425
00:20:38,000 --> 00:20:39,934
others as well as
our own interests.

426
00:20:39,934 --> 00:20:42,033
Our interests here, the
President's interest here is

427
00:20:42,033 --> 00:20:47,233
making sure that Congress acts
to avoid the wholly unnecessary,

428
00:20:47,233 --> 00:20:51,300
indiscriminate, across-the-board
cuts that are represented by the

429
00:20:51,300 --> 00:20:55,466
sequester; that Congress
do the responsible thing,

430
00:20:55,467 --> 00:21:00,166
adopt a balanced package that
postpones the sequester so that

431
00:21:00,166 --> 00:21:05,033
Congress can then work on a
broader deficit reduction plan

432
00:21:05,033 --> 00:21:06,934
that is part of
the budget process.

433
00:21:06,934 --> 00:21:10,800
And there is no reason to do
this in a different manner.

434
00:21:10,800 --> 00:21:12,899
There is no reason to
inflict this wound on our

435
00:21:12,900 --> 00:21:17,333
economy unnecessarily.

436
00:21:17,333 --> 00:21:18,633
This deadline is manufactured.

437
00:21:18,633 --> 00:21:24,233
It can be postponed as it was
in December, and by doing that,

438
00:21:24,233 --> 00:21:26,767
we would allow ourselves more
time to pursue the ultimate

439
00:21:26,767 --> 00:21:31,300
goal, which is achieving --
finishing the job of at least

440
00:21:31,300 --> 00:21:35,533
the $4 trillion goal outlined
for many years by many

441
00:21:35,533 --> 00:21:38,033
economists as what we need to
do over 10 years in terms of

442
00:21:38,033 --> 00:21:39,265
deficit reduction.

443
00:21:39,266 --> 00:21:40,166
We can do that.

444
00:21:40,166 --> 00:21:42,833
The President has put forward
a plan that does that.

445
00:21:42,834 --> 00:21:46,600
The President has put forward a
plan that includes revenues and

446
00:21:46,600 --> 00:21:48,300
also spending cuts and
entitlement reforms.

447
00:21:48,300 --> 00:21:50,700
What we have not seen from
Republicans is a plan that

448
00:21:50,700 --> 00:21:53,767
includes revenues, as
well as spending cuts and

449
00:21:53,767 --> 00:21:54,767
entitlement reforms.

450
00:21:54,767 --> 00:21:56,467
I mean, you guys have
to understand the basic

451
00:21:56,467 --> 00:21:57,433
nature here.

452
00:21:57,433 --> 00:22:00,166
If you're talking about
compromise and leadership,

453
00:22:00,166 --> 00:22:02,667
and you accept the premise that
it's harder for Democrats to go

454
00:22:02,667 --> 00:22:05,033
along with entitlement reforms
and harder for Democrats to go

455
00:22:05,033 --> 00:22:07,300
with cuts to
spending programs --

456
00:22:07,300 --> 00:22:08,834
let's just accept
that premise --

457
00:22:08,834 --> 00:22:10,767
what has the President done?

458
00:22:10,767 --> 00:22:12,033
What have the Democrats done?

459
00:22:12,033 --> 00:22:15,199
They have put forward and
embraced proposals that have

460
00:22:15,200 --> 00:22:19,433
more spending cuts -- more
savings from cuts than they have

461
00:22:19,433 --> 00:22:20,600
increases in revenue.

462
00:22:20,600 --> 00:22:23,433
What we haven't seen from the
Republicans in anything like a

463
00:22:23,433 --> 00:22:24,867
commensurate action by them.

464
00:22:24,867 --> 00:22:28,734
And the American people
insist that we compromise here

465
00:22:28,734 --> 00:22:29,466
in Washington.

466
00:22:29,467 --> 00:22:32,567
The Press:
But when we hear about these
draconian cuts in Border Patrol

467
00:22:32,567 --> 00:22:34,767
agents being
furloughed, FBI agents,

468
00:22:34,767 --> 00:22:36,967
and kids getting
thrown off Head Start,

469
00:22:36,967 --> 00:22:40,734
is there really no way to
find $85 billion in cuts in a

470
00:22:40,734 --> 00:22:46,100
$3.8 trillion budget without
those kind of draconian cuts?

471
00:22:46,100 --> 00:22:49,533
Mr. Carney:
Well, let's be clear, as Danny
Werfel was when he briefed you

472
00:22:49,533 --> 00:22:51,699
guys last week.

473
00:22:51,700 --> 00:22:54,300
There is no way to do this --
$85 billion over that short

474
00:22:54,300 --> 00:22:57,800
window of time -- there is
no way if you follow the law

475
00:22:57,800 --> 00:23:01,300
written by Congress, that
implementation of these cuts

476
00:23:01,300 --> 00:23:03,767
would not have the draconian,
drastic effects that the

477
00:23:03,767 --> 00:23:05,467
President talked about today,
and that everybody who has

478
00:23:05,467 --> 00:23:06,633
written about this
has talked about,

479
00:23:06,633 --> 00:23:10,900
or everybody who has spoken
about this has made clear

480
00:23:10,900 --> 00:23:12,300
will happen.

481
00:23:12,300 --> 00:23:18,033
The fact is that the sequester
was written, as I've noted,

482
00:23:18,033 --> 00:23:21,399
precisely because the cuts would
be onerous and unacceptable to

483
00:23:21,400 --> 00:23:23,033
both sides -- to all sides.

484
00:23:23,033 --> 00:23:27,000
And they were supposed to -- the
looming nature of the sequester

485
00:23:27,000 --> 00:23:31,233
was supposed to compel Congress
to act responsibly and to

486
00:23:31,233 --> 00:23:34,399
compromise, and to achieve
the kind of deficit reduction

487
00:23:34,400 --> 00:23:36,867
through compromise that is
necessary to help put us on a

488
00:23:36,867 --> 00:23:38,567
fiscally sustainable path.

489
00:23:38,567 --> 00:23:41,567
The obstacle thus far to
compromise has been the adamant

490
00:23:41,567 --> 00:23:46,900
refusal by Republicans to
agree to a balanced approach to

491
00:23:46,900 --> 00:23:49,900
deficit reduction, a balanced
approach that the American

492
00:23:49,900 --> 00:23:51,967
people support, that Democrats,
independents and even

493
00:23:51,967 --> 00:23:54,767
Republicans outside
of Washington support.

494
00:23:54,767 --> 00:23:55,600
Major.

495
00:23:55,600 --> 00:23:56,699
The Press:
Reaction to the Speaker.

496
00:23:56,700 --> 00:23:58,767
He released a statement right
after the President spoke: "The

497
00:23:58,767 --> 00:24:00,700
"American people understand,"
quoting him directly,

498
00:24:00,700 --> 00:24:02,500
"that the revenue
debate is now closed."

499
00:24:02,500 --> 00:24:03,900
That's from the Speaker.

500
00:24:03,900 --> 00:24:06,633
"We should close loopholes and
carve-outs in the tax code,

501
00:24:06,633 --> 00:24:08,800
"but that revenue should be used
to lower rates across the board.

502
00:24:08,800 --> 00:24:10,899
"Tax reform is a
once-in-a-generation opportunity

503
00:24:10,900 --> 00:24:12,300
"to boost job
creation in America.

504
00:24:12,300 --> 00:24:14,500
"It should not be squandered,"
the Speaker's words,

505
00:24:14,500 --> 00:24:15,867
"to enable more
Washington spending.

506
00:24:15,867 --> 00:24:16,667
"Spending is the problem.

507
00:24:16,667 --> 00:24:18,132
"Spending must be the focus."

508
00:24:18,133 --> 00:24:22,533
Mr. Carney:
Well, the Speaker is I guess
misunderstanding the proposition

509
00:24:22,533 --> 00:24:26,065
here, which is to use tax reform
and revenue gleaned from it to

510
00:24:26,066 --> 00:24:28,767
help reduce the deficit,
which, as I understand it,

511
00:24:28,767 --> 00:24:33,100
at least in the aftermath of
a Republican President holding

512
00:24:33,100 --> 00:24:37,100
power, is the number-one goal
of Republicans in Congress.

513
00:24:37,100 --> 00:24:40,399
What the Speaker put forward
or said he was willing to put

514
00:24:40,400 --> 00:24:43,934
forward at the end of last
year was up to $800 billion in

515
00:24:43,934 --> 00:24:46,934
revenue that would go
towards deficit reduction,

516
00:24:46,934 --> 00:24:51,899
achieved from the wealthiest
Americans and businesses by tax

517
00:24:51,900 --> 00:24:54,433
reform, closing loopholes,
capping deductions.

518
00:24:54,433 --> 00:24:57,400
The President agrees with him
that we ought to close those

519
00:24:57,400 --> 00:25:00,133
loopholes and cap those
deductions and reform our tax

520
00:25:00,133 --> 00:25:04,967
code in a way that makes it
more balanced and more fair,

521
00:25:04,967 --> 00:25:09,867
that ends some of these taxpayer
subsidies to companies and

522
00:25:09,867 --> 00:25:14,500
individuals that have, because
of their armies of accountants,

523
00:25:14,500 --> 00:25:17,100
have a different relationship
with the tax code than average

524
00:25:17,100 --> 00:25:19,265
Americans and small businesses.

525
00:25:19,266 --> 00:25:21,166
The goal here is
deficit reduction.

526
00:25:21,166 --> 00:25:25,200
The goal here is achieving
it in a balanced way.

527
00:25:25,200 --> 00:25:27,900
The President has signed into
law over $2.5 trillion in

528
00:25:27,900 --> 00:25:28,900
deficit reduction.

529
00:25:28,900 --> 00:25:32,667
The ratio of spending cuts to
revenues, more than two to one.

530
00:25:32,667 --> 00:25:34,667
If you take the President's
proposal that's still on the

531
00:25:34,667 --> 00:25:37,300
table to Speaker Boehner,
if he were to take that,

532
00:25:37,300 --> 00:25:40,600
if Speaker Boehner were suddenly
to embrace the consensus that

533
00:25:40,600 --> 00:25:42,833
has built around the
idea of balance and say,

534
00:25:42,834 --> 00:25:45,000
I'll take that deal,
that would, again,

535
00:25:45,000 --> 00:25:47,200
be more spending
cuts than revenues.

536
00:25:47,200 --> 00:25:49,033
We need to get this done.

537
00:25:49,033 --> 00:25:50,734
And we need to do it in a
way that the American people

538
00:25:50,734 --> 00:25:52,466
support, that bipartisan
commissions support,

539
00:25:52,467 --> 00:25:56,133
that everybody -- even
Republicans who aren't elected

540
00:25:56,133 --> 00:25:58,900
and sent to Washington -- seems
to agree is the right way to go.

541
00:25:58,900 --> 00:26:00,600
The Press:
I'm also going to read you
something from Alan Simpson.

542
00:26:00,600 --> 00:26:01,800
He said many things
this morning,

543
00:26:01,800 --> 00:26:05,466
but this is a direct quote,
regarding entitlement reform:

544
00:26:05,467 --> 00:26:07,033
"It will happen in
four years, or he" --

545
00:26:07,033 --> 00:26:08,766
meaning the President --
"will have no legacy at all.

546
00:26:08,767 --> 00:26:11,000
"If he" -- the President --
"can't cut the mustard in the

547
00:26:11,000 --> 00:26:14,200
"solvency of Social Security
under honest appraisals of the

548
00:26:14,200 --> 00:26:17,200
"trustees and he can't get a
handle on automatic pilot rate

549
00:26:17,200 --> 00:26:20,834
"of health care spending, he
will have a failed presidency."

550
00:26:20,834 --> 00:26:21,767
Mr. Carney:
What's your question?

551
00:26:21,767 --> 00:26:22,867
The Press:
Do you agree or disagree?

552
00:26:22,867 --> 00:26:24,367
Mr. Carney:
The President has put
forward entitlement reforms.

553
00:26:24,367 --> 00:26:27,265
He has passed an
Affordable Care Act that --

554
00:26:27,266 --> 00:26:28,800
The Press:
This is Alan Simpson talking
about what's already been

555
00:26:28,800 --> 00:26:29,800
proposed by the President.

556
00:26:29,800 --> 00:26:31,433
Sounds to me like he
doesn't think it's enough.

557
00:26:31,433 --> 00:26:36,000
Mr. Carney:
Well, what he has said -- you're
quoting to me from something

558
00:26:36,000 --> 00:26:38,767
that I will take at your
word for it is accurate.

559
00:26:38,767 --> 00:26:43,133
But the President agrees
we need to pass further

560
00:26:43,133 --> 00:26:43,967
entitlement reform.

561
00:26:43,967 --> 00:26:45,800
We need to do it in
a way that reduce,

562
00:26:45,800 --> 00:26:47,265
when it comes to our
health care entitlements --

563
00:26:47,266 --> 00:26:50,100
which, by the way, everybody
agrees is the main drive of our

564
00:26:50,100 --> 00:26:51,899
long-term deficit
and debt challenge --

565
00:26:51,900 --> 00:26:55,734
that does it in a way that
reduces our health care costs,

566
00:26:55,734 --> 00:26:58,033
doesn't just shift
costs to seniors.

567
00:26:58,033 --> 00:27:00,166
I mean, that has been the
approach through voucherization

568
00:27:00,166 --> 00:27:03,399
or other proposals by
Republicans that is wholly

569
00:27:03,400 --> 00:27:05,633
unfair to seniors and doesn't
make sense economically.

570
00:27:05,633 --> 00:27:08,367
We need to take actions that
reduce health care costs.

571
00:27:08,367 --> 00:27:10,367
That's what the
Affordable Care Act does.

572
00:27:10,367 --> 00:27:12,966
In the second 10 years after
its implementation, as you know,

573
00:27:12,967 --> 00:27:15,467
or after its passage,
there are enormous savings,

574
00:27:15,467 --> 00:27:18,900
as scored by CBO, from
the implementation of the

575
00:27:18,900 --> 00:27:21,367
Affordable Care Act.

576
00:27:21,367 --> 00:27:25,767
And one of the purposes of that
priority that the President

577
00:27:25,767 --> 00:27:29,834
successfully signed into law in
his first term was addressing

578
00:27:29,834 --> 00:27:33,500
the need to reduce our overall
health care costs going forward.

579
00:27:33,500 --> 00:27:34,533
More work needs to be done.

580
00:27:34,533 --> 00:27:37,000
The President again -- let's go
back to the simple principle,

581
00:27:37,000 --> 00:27:38,633
when it comes to further
deficit reduction,

582
00:27:38,633 --> 00:27:41,000
the President hasn't
just proposed revenues.

583
00:27:41,000 --> 00:27:44,166
In fact, he's signed into law
two-to-one more spending cuts

584
00:27:44,166 --> 00:27:45,600
than revenue increases.

585
00:27:45,600 --> 00:27:51,734
He has proposed in his various
submissions to Congress and his

586
00:27:51,734 --> 00:27:54,600
negotiations with the Speaker of
the House entitlement reforms,

587
00:27:54,600 --> 00:27:57,533
including decisions that
represent very tough calls

588
00:27:57,533 --> 00:27:58,533
for Democrats.

589
00:27:58,533 --> 00:28:01,567
But he is leading on this issue
because he understands that

590
00:28:01,567 --> 00:28:02,567
it's important.

591
00:28:02,567 --> 00:28:04,066
But he also understands that
we need to do it in a way,

592
00:28:04,066 --> 00:28:07,000
as he said today, that ensures
that our economy can continue to

593
00:28:07,000 --> 00:28:09,800
grow, that ensures that our
economy is receiving the

594
00:28:09,800 --> 00:28:12,867
necessary investments in
education and research and

595
00:28:12,867 --> 00:28:17,000
development and innovation and
infrastructure that make sure

596
00:28:17,000 --> 00:28:20,533
that five, 10, 20 and
40 years from now,

597
00:28:20,533 --> 00:28:23,833
we still have that powerful
economic engine in this country

598
00:28:23,834 --> 00:28:26,166
that has been the envy of the
world for so many years and so

599
00:28:26,166 --> 00:28:28,166
many decades.

600
00:28:28,166 --> 00:28:30,667
As you know, because you and
I both covered it in the '90s,

601
00:28:30,667 --> 00:28:36,332
when we achieved as a nation
budget surpluses for the first

602
00:28:36,333 --> 00:28:40,066
time in decades, it was a
result of tough choices,

603
00:28:40,066 --> 00:28:43,033
leadership by President Clinton,
tough choices by Congress,

604
00:28:43,033 --> 00:28:45,667
and significant economic growth.

605
00:28:45,667 --> 00:28:50,265
And that's why we cannot lose
sight of the overall goal here,

606
00:28:50,266 --> 00:28:53,467
which is a growing economy and
an economy that's creating good,

607
00:28:53,467 --> 00:28:54,400
middle-class jobs.

608
00:28:54,400 --> 00:28:57,000
The Press:
On immigration, Senator Rubio
said if what was released or

609
00:28:57,000 --> 00:28:59,767
leaked this weekend were sent
to Congress, it would be DOA,

610
00:28:59,767 --> 00:29:03,700
and that its very release
politicized the process and

611
00:29:03,700 --> 00:29:06,100
damaged the possibilities
of achieving reform.

612
00:29:06,100 --> 00:29:07,667
Would you react
to both of those?

613
00:29:07,667 --> 00:29:10,867
Mr. Carney:
Well, I would say a couple of
things which I think most of you

614
00:29:10,867 --> 00:29:13,367
should be aware of, which
is that this was not an

615
00:29:13,367 --> 00:29:15,000
intentional release.

616
00:29:15,000 --> 00:29:19,300
That was clear by the fact that
the White House reached out to

617
00:29:19,300 --> 00:29:22,066
the offices of those who
are leading the effort on

618
00:29:22,066 --> 00:29:26,100
immigration reform in the Senate
to make clear that our focus

619
00:29:26,100 --> 00:29:29,833
continues to be and our hopes
continue to lie with the

620
00:29:29,834 --> 00:29:33,667
bipartisan effort underway
in the Senate to achieve

621
00:29:33,667 --> 00:29:35,065
comprehensive
immigration reform.

622
00:29:35,066 --> 00:29:38,800
It is by far the President's
preference that the Senate

623
00:29:38,800 --> 00:29:42,767
process move forward, that the
bipartisan Group of Eight have

624
00:29:42,767 --> 00:29:46,300
success and that they produce
a bill that wins the support of

625
00:29:46,300 --> 00:29:49,934
Democrats and Republicans in
the Senate, then in the House,

626
00:29:49,934 --> 00:29:52,533
and that it arrives at his
desk for his signature.

627
00:29:52,533 --> 00:29:57,667
What I would note is that in the
blueprint the President has had

628
00:29:57,667 --> 00:30:01,132
on WhiteHouse.gov for
a couple of years,

629
00:30:01,133 --> 00:30:06,533
there is a remarkable
convergence of policy specifics

630
00:30:06,533 --> 00:30:09,632
between what the President
supports and has supported since

631
00:30:09,633 --> 00:30:12,166
there was legislation in the
Senate and what the Group of

632
00:30:12,166 --> 00:30:14,667
Eight has been working on,
including the Republican

633
00:30:14,667 --> 00:30:16,233
senators who are
part of that group.

634
00:30:16,233 --> 00:30:20,033
So we're very hopeful that,
as Denis McDonough said this

635
00:30:20,033 --> 00:30:23,399
weekend, the Senate
will move forward.

636
00:30:23,400 --> 00:30:26,700
We believe that's the best
way for this to happen.

637
00:30:26,700 --> 00:30:31,734
We've also said -- made clear
that we will prepare legislation

638
00:30:31,734 --> 00:30:34,867
and submit it if that
process in the Senate fails.

639
00:30:34,867 --> 00:30:37,533
But we want the process
in the Senate to succeed.

640
00:30:37,533 --> 00:30:40,766
The Press:
Will you release and propose
legislation that includes what

641
00:30:40,767 --> 00:30:44,266
was not visible this weekend
which was any mention of a

642
00:30:44,266 --> 00:30:47,667
future legal immigration system
also dealing with guest workers

643
00:30:47,667 --> 00:30:50,367
and a lot of the complex areas
of immigration reform that are

644
00:30:50,367 --> 00:30:53,265
unrelated to dealing with
legalization or border security?

645
00:30:53,266 --> 00:30:55,867
Mr. Carney:
Well, first of all, our goal is,
as Denis McDonough said on one

646
00:30:55,867 --> 00:30:59,100
of the shows this
Sunday, to not propose --

647
00:30:59,100 --> 00:31:04,600
to our own Jon Karl -- to not
propose or submit legislation --

648
00:31:04,600 --> 00:31:06,800
The Press:
Are you committed to
future flow reform?

649
00:31:06,800 --> 00:31:10,133
Mr. Carney:
I think we've said that we
will work with Congress,

650
00:31:10,133 --> 00:31:11,433
and with the Senate
in particular,

651
00:31:11,433 --> 00:31:14,000
as they undertake this
effort on those issues.

652
00:31:14,000 --> 00:31:16,667
If you look at the blueprint,
the President's ideas on this

653
00:31:16,667 --> 00:31:18,899
are pretty detailed and
specific in terms of broader

654
00:31:18,900 --> 00:31:20,333
comprehensive
immigration reform.

655
00:31:20,333 --> 00:31:25,767
But further to my point, in
answer to your first question,

656
00:31:25,767 --> 00:31:27,667
our interest is in seeing
the Senate process,

657
00:31:27,667 --> 00:31:30,000
the bipartisan process succeed.

658
00:31:30,000 --> 00:31:31,000
Ed.

659
00:31:31,000 --> 00:31:32,400
The Press:
Did you have a nice weekend?

660
00:31:32,400 --> 00:31:33,667
(laughter)

661
00:31:33,667 --> 00:31:38,332
Mr. Carney:
I had a great weekend
sledding with my children.

662
00:31:38,333 --> 00:31:39,266
The Press:
Where?

663
00:31:39,266 --> 00:31:40,967
Mr. Carney:
Up where there's snow.

664
00:31:40,967 --> 00:31:43,533
The Press:
A couple questions,
one on cybersecurity.

665
00:31:43,533 --> 00:31:46,867
There's an independent report
out today suggesting that there

666
00:31:46,867 --> 00:31:49,633
are billions of trade secrets
that we're losing to China.

667
00:31:49,633 --> 00:31:51,900
The President addressed this
in the State of the Union,

668
00:31:51,900 --> 00:31:54,467
put out an executive order
last Tuesday as I recall.

669
00:31:54,467 --> 00:31:56,500
Can the White House assure
the American people that this

670
00:31:56,500 --> 00:31:59,333
executive order is going to
actually put a dent in that so

671
00:31:59,333 --> 00:32:02,333
that we're not losing billions
of trade secrets a year?

672
00:32:02,333 --> 00:32:06,233
Mr. Carney:
Well, first of all, we're aware
of the Mandiant report that you

673
00:32:06,233 --> 00:32:08,233
are referring to and we're
aware of its contents,

674
00:32:08,233 --> 00:32:10,966
but I am not going to
talk about assessments --

675
00:32:10,967 --> 00:32:15,567
intelligence assessments that
we make or may be making.

676
00:32:15,567 --> 00:32:18,367
But you're correct in noting
the President's keen focus on

677
00:32:18,367 --> 00:32:19,367
this issue.

678
00:32:19,367 --> 00:32:24,066
It is a major challenge for us
in the national security arena.

679
00:32:24,066 --> 00:32:26,133
The United States has
substantial and growing concerns

680
00:32:26,133 --> 00:32:29,333
about the threats to U.S.
economic and national security

681
00:32:29,333 --> 00:32:32,767
posed by cyber intrusions,
including the theft of

682
00:32:32,767 --> 00:32:34,166
commercial information.

683
00:32:34,166 --> 00:32:36,066
As the President said in
the State of the Union,

684
00:32:36,066 --> 00:32:39,000
"We know foreign countries
and companies swipe our

685
00:32:39,000 --> 00:32:40,567
"corporate secrets."

686
00:32:40,567 --> 00:32:43,100
The President also said, "We
cannot look back years from now

687
00:32:43,100 --> 00:32:45,934
and wonder why we did nothing in
the face of real threats to our

688
00:32:45,934 --> 00:32:47,800
security and our economy.

689
00:32:47,800 --> 00:32:49,834
That's why the United States
government is taking an active

690
00:32:49,834 --> 00:32:52,166
approach to addressing
the issue of cyber theft.

691
00:32:52,166 --> 00:32:56,300
We have urged Congress
to pass legislation,

692
00:32:56,300 --> 00:33:01,233
and the President is taking
all steps he can through the

693
00:33:01,233 --> 00:33:05,500
executive branch to make
sure that we're safeguarding

694
00:33:05,500 --> 00:33:08,467
government networks and
providing helpful and useful and

695
00:33:08,467 --> 00:33:10,600
relevant information to the
private sector to help them

696
00:33:10,600 --> 00:33:12,233
safeguard their networks.

697
00:33:12,233 --> 00:33:14,000
The Press:
On the sequester, we went
back and checked the record.

698
00:33:14,000 --> 00:33:16,266
On November 21,
2011, the President,

699
00:33:16,266 --> 00:33:19,133
after the super committee
failed, came into this room --

700
00:33:19,133 --> 00:33:22,033
and Republicans on the Hill were
talking about coming up with

701
00:33:22,033 --> 00:33:24,667
other cuts to deal with,
as the President calls it,

702
00:33:24,667 --> 00:33:26,065
draconian cuts from
the sequester --

703
00:33:26,066 --> 00:33:28,233
they were trying to come up with
other ways to deal with this.

704
00:33:28,233 --> 00:33:30,800
The President came in this room
and immediately said he would

705
00:33:30,800 --> 00:33:33,633
veto such a bill to
come up with other cuts.

706
00:33:33,633 --> 00:33:36,233
So how does he now have the
credibility to say the sequester

707
00:33:36,233 --> 00:33:38,767
would be so awful if the
Republicans were saying over a

708
00:33:38,767 --> 00:33:40,767
year ago let's find another
way to deal with it,

709
00:33:40,767 --> 00:33:42,734
and he said I'll veto that?

710
00:33:42,734 --> 00:33:44,433
Mr. Carney:
Well, Ed, I know,
because you were here,

711
00:33:44,433 --> 00:33:46,633
that you know that's not an
actual account of what he was

712
00:33:46,633 --> 00:33:47,633
talking about.

713
00:33:47,633 --> 00:33:50,233
There were efforts underway
by Republicans in Congress to

714
00:33:50,233 --> 00:33:53,834
replace the sequester, which was
half defense, half non-defense,

715
00:33:53,834 --> 00:33:56,133
with cuts only in non-defense.

716
00:33:56,133 --> 00:33:59,200
And that was basically saying
Republicans were crossing their

717
00:33:59,200 --> 00:34:01,867
fingers when they all voted
overwhelmingly for the

718
00:34:01,867 --> 00:34:05,800
sequester, when every Republican
leader in the House voted for

719
00:34:05,800 --> 00:34:08,400
the sequester, including
Chairman Ryan, Speaker Boehner,

720
00:34:08,400 --> 00:34:11,367
and others -- Eric Cantor
and Kevin McCarthy.

721
00:34:11,367 --> 00:34:15,300
The fact is that that is an
unfair and unbalanced approach.

722
00:34:15,300 --> 00:34:20,600
So, yes, we do not support
undoing the sequester in a way

723
00:34:20,600 --> 00:34:24,533
that says, you know what, we'll
throw double the number of kids

724
00:34:24,533 --> 00:34:27,600
out of Head Start; we'll make
double the amount of cuts to

725
00:34:27,600 --> 00:34:30,333
education, to investments
in research and development;

726
00:34:30,333 --> 00:34:34,967
we'll cut double the number of
security guards on our border.

727
00:34:34,967 --> 00:34:39,400
That is completely inappropriate
to the task and the need here.

728
00:34:39,400 --> 00:34:41,800
The President believes that
Congress needs to act in a

729
00:34:41,800 --> 00:34:45,867
balanced, responsible way, first
to buy down the sequester so

730
00:34:45,867 --> 00:34:47,667
that it can then move
forward with broader,

731
00:34:47,667 --> 00:34:48,866
balanced deficit reduction.

732
00:34:48,867 --> 00:34:52,100
But it's a canard, and
we've been through this --

733
00:34:52,100 --> 00:34:54,467
that Republicans use this
quote as though it represents

734
00:34:54,467 --> 00:34:56,266
something that everybody
in this room knows it does

735
00:34:56,266 --> 00:34:57,233
not represent.

736
00:34:57,233 --> 00:34:57,967
The Press:
So if you do want a
balanced approach,

737
00:34:57,967 --> 00:34:59,867
the last time the President had
a chance on deficit reduction

738
00:34:59,867 --> 00:35:02,000
was the fiscal cliff talks
just a few weeks back,

739
00:35:02,000 --> 00:35:04,633
and he signed into law $600
billion in tax increases and

740
00:35:04,633 --> 00:35:06,933
something like $10 or $15
billion in spending cuts.

741
00:35:06,934 --> 00:35:08,233
So does the White
House really --

742
00:35:08,233 --> 00:35:10,867
can you tell the American
people that's balanced?

743
00:35:10,867 --> 00:35:11,767
Mr. Carney:
Ed, you were here.

744
00:35:11,767 --> 00:35:15,600
The President put forward
a proposal that represented

745
00:35:15,600 --> 00:35:22,633
significant compromise that was
judged by outsiders as coming

746
00:35:22,633 --> 00:35:24,899
and meeting the Republicans
more than halfway on revenues,

747
00:35:24,900 --> 00:35:27,266
more than halfway on spending
cuts and entitlement reforms,

748
00:35:27,266 --> 00:35:29,567
and the Speaker of the House
walked away from that deal --

749
00:35:29,567 --> 00:35:30,767
walked away from it.

750
00:35:30,767 --> 00:35:32,667
But guess what, that deal
is still on the table,

751
00:35:32,667 --> 00:35:35,266
and it includes, as you know,
very tough choices by this

752
00:35:35,266 --> 00:35:38,266
President for Democrats when
it comes to entitlements and

753
00:35:38,266 --> 00:35:39,600
spending cuts.

754
00:35:39,600 --> 00:35:44,533
So, again, we have -- the
President has always sought a

755
00:35:44,533 --> 00:35:50,900
bigger deal, has always sought
a bill or legislation that's

756
00:35:50,900 --> 00:35:53,967
balanced, that would achieve
that goal of $400 [sic]

757
00:35:53,967 --> 00:35:56,834
trillion-plus over 10 years.

758
00:35:56,834 --> 00:36:00,866
He continues to have
hope that Congress,

759
00:36:00,867 --> 00:36:04,867
that Republicans will take him
up on the remainder of that

760
00:36:04,867 --> 00:36:08,333
proposal that he offered to the
Speaker that the Speaker walked

761
00:36:08,333 --> 00:36:09,633
away from.

762
00:36:09,633 --> 00:36:12,933
In the meantime, we need to
make sure that we don't let this

763
00:36:12,934 --> 00:36:16,633
sequester take effect with all
of its devastating effects on

764
00:36:16,633 --> 00:36:22,033
first responders and kids
in Head Start and our

765
00:36:22,033 --> 00:36:23,333
national security.

766
00:36:23,333 --> 00:36:26,433
It's just mindless
and reckless --

767
00:36:26,433 --> 00:36:29,767
it's a mindless and reckless
approach to policy in Washington

768
00:36:29,767 --> 00:36:33,700
for Congress not to do
the responsible thing.

769
00:36:33,700 --> 00:36:35,734
The Press:
Okay, last thing I do want to
ask you about is access around

770
00:36:35,734 --> 00:36:36,967
here to the President.

771
00:36:36,967 --> 00:36:38,834
There's obviously been a
lot of commentary about the

772
00:36:38,834 --> 00:36:39,834
golf situation.

773
00:36:39,834 --> 00:36:41,633
This Friday, though,
the President has --

774
00:36:41,633 --> 00:36:43,633
I think it's Friday that he
has the Japanese Prime Minister

775
00:36:43,633 --> 00:36:45,600
coming in for a meeting.

776
00:36:45,600 --> 00:36:47,799
There's a lot going on with the
Japanese economy that obviously

777
00:36:47,800 --> 00:36:49,000
has international implications.

778
00:36:49,000 --> 00:36:51,900
There are island disputes
between China and Japan that

779
00:36:51,900 --> 00:36:53,500
have a lot of people nervous.

780
00:36:53,500 --> 00:36:55,667
When the President meets with
the Japanese Prime Minister,

781
00:36:55,667 --> 00:36:57,767
will the White House Press Corps
come in and get a chance to

782
00:36:57,767 --> 00:36:59,133
actually ask questions
of the President?

783
00:36:59,133 --> 00:37:00,633
Is that your plan on Friday?

784
00:37:00,633 --> 00:37:03,265
Mr. Carney:
Look, Ed, I am
completely sympathetic,

785
00:37:03,266 --> 00:37:08,600
having covered two White Houses,
to the difficulties of the job

786
00:37:08,600 --> 00:37:12,967
covering any White House,
and the desire for more and

787
00:37:12,967 --> 00:37:13,967
more access.

788
00:37:13,967 --> 00:37:17,333
And I am -- we work every
day with you and others to

789
00:37:17,333 --> 00:37:18,734
provide that.

790
00:37:18,734 --> 00:37:20,933
And we will continue to do that.

791
00:37:20,934 --> 00:37:23,100
I don't have a scheduling
announcement for an event

792
00:37:23,100 --> 00:37:23,866
on Friday.

793
00:37:23,867 --> 00:37:25,133
The Press:
But you're sympathetic to us
as a former correspondent,

794
00:37:25,133 --> 00:37:26,667
do you think the President
should take questions --

795
00:37:26,667 --> 00:37:30,165
Mr. Carney:
Well, I would note that -- and
this is important to note, given

796
00:37:30,166 --> 00:37:31,633
some of the coverage
of this issue --

797
00:37:31,633 --> 00:37:33,933
that when it comes to solo news
conferences where the President

798
00:37:33,934 --> 00:37:36,300
of the United States stands
up and for 40 minutes,

799
00:37:36,300 --> 00:37:38,400
50 minutes or an hour
takes your questions,

800
00:37:38,400 --> 00:37:41,967
allowing reporters to
go deep on issues --

801
00:37:41,967 --> 00:37:45,200
President Obama has
given 35 of those.

802
00:37:45,200 --> 00:37:48,366
President Bush, his immediate
predecessor, gave 19.

803
00:37:48,367 --> 00:37:49,400
So also, when it
comes to interviews,

804
00:37:49,400 --> 00:37:56,300
the President has given 591
interviews since he took office.

805
00:37:56,300 --> 00:37:58,867
So I think that it is clear
that we are making an effort to

806
00:37:58,867 --> 00:38:03,100
provide access to make sure
that the President is being

807
00:38:03,100 --> 00:38:05,600
questioned by reporters,
and anchors, and others,

808
00:38:05,600 --> 00:38:06,834
and we'll continue to do that.

809
00:38:06,834 --> 00:38:07,500
The Press:
And what reporters?

810
00:38:07,500 --> 00:38:08,367
That's the question.

811
00:38:08,367 --> 00:38:10,000
You're saying interviews
-- there's 500 interviews.

812
00:38:10,000 --> 00:38:12,133
Mr. Carney:
A hundred and four of those
interviews were with major

813
00:38:12,133 --> 00:38:15,466
networks -- television networks.

814
00:38:15,467 --> 00:38:16,567
Kristen, did you have anything?

815
00:38:16,567 --> 00:38:19,600
The Press:
Yes, Jay, does the President
have a reaction to the criticism

816
00:38:19,600 --> 00:38:23,165
that his administration
has not been transparent?

817
00:38:23,166 --> 00:38:25,066
Mr. Carney:
He deputizes me to
have that reaction.

818
00:38:25,066 --> 00:38:28,700
And I would say, again,
having been where you are,

819
00:38:28,700 --> 00:38:30,933
I understand -- and I doubt that
there's ever been a White House

820
00:38:30,934 --> 00:38:34,066
press corps that's ever been
wholly satisfied with the level

821
00:38:34,066 --> 00:38:36,265
of access that they've
been afforded --

822
00:38:36,266 --> 00:38:39,900
but we work very closely with
all of you to try to provide

823
00:38:39,900 --> 00:38:41,734
access to the President.

824
00:38:41,734 --> 00:38:45,834
I would note that when I was
covering President Bush --

825
00:38:45,834 --> 00:38:49,633
George W. Bush, I was on his
first trip on Air Force One.

826
00:38:49,633 --> 00:38:51,332
It was a short trip down
to Norfolk, I believe,

827
00:38:51,333 --> 00:38:52,967
and he came back and
spoke to the pool.

828
00:38:52,967 --> 00:38:56,133
That was his first trip.

829
00:38:56,133 --> 00:38:58,567
For the next three years
that I covered the President,

830
00:38:58,567 --> 00:39:00,266
he never came back again.

831
00:39:00,266 --> 00:39:02,734
The Press:
What did you ask?

832
00:39:02,734 --> 00:39:05,266
(laughter)

833
00:39:05,266 --> 00:39:07,433
Mr. Carney:
Very hard questions,
tough questions.

834
00:39:07,433 --> 00:39:12,667
But the point is -- my only
point is that I've been there.

835
00:39:12,667 --> 00:39:15,100
When I covered
President Clinton,

836
00:39:15,100 --> 00:39:18,000
there were periods of
immense frustration.

837
00:39:18,000 --> 00:39:21,467
When I came to this room
in the spring of 1993,

838
00:39:21,467 --> 00:39:23,667
the White House Press Corps,
as those of you who were here

839
00:39:23,667 --> 00:39:26,900
remember, was in a state of
rebellion over the situation

840
00:39:26,900 --> 00:39:28,567
here in terms of
press relations.

841
00:39:28,567 --> 00:39:29,567
This is not uncommon.

842
00:39:29,567 --> 00:39:30,867
I certainly don't think
we have that here,

843
00:39:30,867 --> 00:39:33,767
and we are working every day to
provide the kind of access that

844
00:39:33,767 --> 00:39:36,466
we believe is an essential
part of the work you do.

845
00:39:36,467 --> 00:39:38,767
The Press:
Well, and I guess more broadly,
did the events of this weekend

846
00:39:38,767 --> 00:39:41,033
make you rethink the level
of transparency within

847
00:39:41,033 --> 00:39:41,767
this administration?

848
00:39:41,767 --> 00:39:42,799
And can we expect to see --

849
00:39:42,800 --> 00:39:43,867
Mr. Carney:
You mean the events
of this weekend --

850
00:39:43,867 --> 00:39:45,333
the fact that the President
wanted to play golf with

851
00:39:45,333 --> 00:39:46,900
a golf pro?

852
00:39:46,900 --> 00:39:48,967
The Press:
Well, and some of the criticism
that you got in the wake of not

853
00:39:48,967 --> 00:39:52,266
just what happened this weekend,
but also some of the meetings

854
00:39:52,266 --> 00:39:54,433
that haven't been read out to
the press as of later that we

855
00:39:54,433 --> 00:39:56,367
haven't been made
aware of in advance.

856
00:39:56,367 --> 00:39:59,367
Mr. Carney:
Well, again, you would have
to be more specific about the

857
00:39:59,367 --> 00:40:00,934
question on the issue
of this weekend.

858
00:40:00,934 --> 00:40:05,600
I mean, the President had some
downtime; he was playing golf.

859
00:40:05,600 --> 00:40:10,700
I understand that there was
a desire to have access or a

860
00:40:10,700 --> 00:40:13,399
photograph of that, but
the President was having --

861
00:40:13,400 --> 00:40:14,467
The Press:
Well, a confirmation of
what was happening --

862
00:40:14,467 --> 00:40:16,233
Mr. Carney:
We did provide you the first
official confirmation of that --

863
00:40:16,233 --> 00:40:17,300
The Press:
It took several hours.

864
00:40:17,300 --> 00:40:19,266
Mr. Carney:
The first official confirmation
that anybody in this room

865
00:40:19,266 --> 00:40:22,800
received of that event and the
people that the President was

866
00:40:22,800 --> 00:40:27,266
playing golf with was from
the White House press office.

867
00:40:27,266 --> 00:40:31,233
We don't control everybody who's
around and purporting to be

868
00:40:31,233 --> 00:40:32,166
reporting on the event.

869
00:40:32,166 --> 00:40:35,800
But nobody -- no reporter had
any access that was different

870
00:40:35,800 --> 00:40:37,800
from the White House Press
Corps on that matter.

871
00:40:37,800 --> 00:40:40,567
The Press:
Just shifting to
Simpson and Bowles --

872
00:40:40,567 --> 00:40:42,000
Mr. Carney:
Go ahead, Kristen.

873
00:40:42,000 --> 00:40:43,967
The Press:
One more on Simpson-Bowles.

874
00:40:43,967 --> 00:40:45,900
Specifically to look at
the issue of entitlements,

875
00:40:45,900 --> 00:40:48,700
they're calling for $600
billion in entitlement reform,

876
00:40:48,700 --> 00:40:52,033
which I believe is about $200
billion more than what you have

877
00:40:52,033 --> 00:40:52,967
said you're willing to offer.

878
00:40:52,967 --> 00:40:55,834
So will the President move on
that issue of entitlements?

879
00:40:55,834 --> 00:40:57,265
Will he give more?

880
00:40:57,266 --> 00:40:58,900
Mr. Carney:
Well, first of all, the
President has put forward --

881
00:40:58,900 --> 00:41:01,500
unlike any Republicans -- a
balanced approach to deficit

882
00:41:01,500 --> 00:41:03,967
reduction that includes
entitlement reforms,

883
00:41:03,967 --> 00:41:06,834
tax reform, and spending cuts.

884
00:41:06,834 --> 00:41:10,433
He has signed into law over $2.5
trillion in deficit reduction

885
00:41:10,433 --> 00:41:13,033
thus far with a ratio
of more than 2 to 1 --

886
00:41:13,033 --> 00:41:16,500
spending cuts to
revenue increases.

887
00:41:16,500 --> 00:41:19,233
The President agrees with
outside economists that have

888
00:41:19,233 --> 00:41:21,734
been saying this for a number
of years now that we need to

889
00:41:21,734 --> 00:41:25,266
achieve in deficit reduction the
target of $4 trillion over 10

890
00:41:25,266 --> 00:41:28,734
years that will help put us on
a fiscally sustainable path that

891
00:41:28,734 --> 00:41:33,366
will reduce the size of our
deficits and debt as a ratio to

892
00:41:33,367 --> 00:41:38,033
GDP that will give us that
fiscal sustainability.

893
00:41:38,033 --> 00:41:40,500
Obviously, this is an
issue that, as a country,

894
00:41:40,500 --> 00:41:43,133
we will continue to
have to deal with.

895
00:41:43,133 --> 00:41:46,366
But the President believes
that the proposals he's made --

896
00:41:46,367 --> 00:41:47,967
he knows that the
proposals he's made,

897
00:41:47,967 --> 00:41:52,633
if Congress were to adopt them,
would achieve that goal and

898
00:41:52,633 --> 00:41:55,799
would do it in a way that allows
our economy to continue to grow,

899
00:41:55,800 --> 00:41:59,500
that doesn't punish seniors
or ask seniors or middle-class

900
00:41:59,500 --> 00:42:03,166
families to bear the burden
of deficit reduction alone,

901
00:42:03,166 --> 00:42:08,533
and that makes our tax code
fairer and simpler for everyone

902
00:42:08,533 --> 00:42:09,567
in the country.

903
00:42:09,567 --> 00:42:12,667
The Press:
I've spoken to some economists
who say it appears likely at

904
00:42:12,667 --> 00:42:15,400
this point that the sequester
is going to kick in.

905
00:42:15,400 --> 00:42:18,967
Does the administration share
that view that it's likely it

906
00:42:18,967 --> 00:42:21,033
will kick in, at least
for a week or two?

907
00:42:21,033 --> 00:42:23,866
Mr. Carney:
I don't have a
prediction to make.

908
00:42:23,867 --> 00:42:26,500
What the President made
clear today is that it should

909
00:42:26,500 --> 00:42:27,500
not happen.

910
00:42:27,500 --> 00:42:29,100
There is no reason
for it to happen.

911
00:42:29,100 --> 00:42:31,467
Congress has within its power,
Republicans have it within their

912
00:42:31,467 --> 00:42:36,367
power to agree to the basic
principle that we should buy

913
00:42:36,367 --> 00:42:40,834
down the sequester for a certain
amount of time to allow Congress

914
00:42:40,834 --> 00:42:42,933
to then move forward with
broader deficit reduction

915
00:42:42,934 --> 00:42:44,166
through the budget process.

916
00:42:44,166 --> 00:42:48,100
If they do not do that, they
will be making a choice --

917
00:42:48,100 --> 00:42:50,799
Republicans will be making a
choice to allow the sequester to

918
00:42:50,800 --> 00:42:53,967
take effect with all of the
negative impacts that we've

919
00:42:53,967 --> 00:42:59,467
talked about, rather than accept
the principle that corporate jet

920
00:42:59,467 --> 00:43:02,400
owners should give
up their tax break;

921
00:43:02,400 --> 00:43:05,800
that oil and gas companies
should no longer be subsidized

922
00:43:05,800 --> 00:43:08,800
through the massive amount
that they're subsidized by the

923
00:43:08,800 --> 00:43:13,100
taxpayer anymore, that that
doesn't make good policy;

924
00:43:13,100 --> 00:43:15,933
that we ought to do things
in a way that are balanced --

925
00:43:15,934 --> 00:43:19,000
in ways that are balanced so
that we don't ask seniors and

926
00:43:19,000 --> 00:43:21,567
others to bear the burden
of deficit reduction alone.

927
00:43:21,567 --> 00:43:23,233
Stephen, and then Roger.

928
00:43:23,233 --> 00:43:25,700
The Press:
The President says often when he
meets with Chinese leaders that

929
00:43:25,700 --> 00:43:28,834
China should submit to the
rules of the road of the

930
00:43:28,834 --> 00:43:30,433
international economy.

931
00:43:30,433 --> 00:43:34,033
If the government is sponsoring
a PLA unit to steal U.S. company

932
00:43:34,033 --> 00:43:37,967
secrets, does that suggest
that approach is not working?

933
00:43:37,967 --> 00:43:41,200
And does the White House
countenance having any

934
00:43:41,200 --> 00:43:42,933
firmer measures?

935
00:43:42,934 --> 00:43:46,300
Mr. Carney:
First of all, I don't have any
comment on that report and the

936
00:43:46,300 --> 00:43:47,300
specific allegations.

937
00:43:47,300 --> 00:43:53,734
I can tell you that we have
repeatedly raised our concerns

938
00:43:53,734 --> 00:43:57,700
at the highest levels about
cyber theft with senior Chinese

939
00:43:57,700 --> 00:44:00,100
officials, including
in the military,

940
00:44:00,100 --> 00:44:02,133
and we will continue to do so.

941
00:44:02,133 --> 00:44:05,700
This is a very
important challenge.

942
00:44:05,700 --> 00:44:10,066
It is one the President has been
working on and urging Congress

943
00:44:10,066 --> 00:44:13,232
to take action on
for quite some time,

944
00:44:13,233 --> 00:44:14,367
and he'll continue to do that.

945
00:44:14,367 --> 00:44:18,533
The United States and China are
among the world's largest cyber

946
00:44:18,533 --> 00:44:21,200
actors, and it is vital that
we continue a sustained,

947
00:44:21,200 --> 00:44:23,799
meaningful dialogue and
work together to develop an

948
00:44:23,800 --> 00:44:27,166
understanding of acceptable
behavior in cyberspace.

949
00:44:27,166 --> 00:44:27,934
Roger.

950
00:44:27,934 --> 00:44:29,233
The Press:
Same topic.

951
00:44:29,233 --> 00:44:32,367
The President did his executive
order on cybersecurity on

952
00:44:32,367 --> 00:44:33,900
February 12th.

953
00:44:33,900 --> 00:44:36,533
The New York Times reported
today that the administration is

954
00:44:36,533 --> 00:44:40,533
going to be taking a
more aggressive defense

955
00:44:40,533 --> 00:44:42,767
beginning today.

956
00:44:42,767 --> 00:44:44,667
Is there more that you --

957
00:44:44,667 --> 00:44:46,700
Mr. Carney:
I have no initiatives
to announce today.

958
00:44:46,700 --> 00:44:52,100
This is an issue that has the
attention of the President and

959
00:44:52,100 --> 00:44:54,299
senior levels of the
national security team.

960
00:44:54,300 --> 00:44:56,400
It's something that we
are working on constantly,

961
00:44:56,400 --> 00:45:02,567
and we will of course take
necessary measures to enhance

962
00:45:02,567 --> 00:45:06,100
our cybersecurity and to assist
the private sector in enhancing

963
00:45:06,100 --> 00:45:07,100
their cybersecurity.

964
00:45:07,100 --> 00:45:09,165
But I have no new
measures to give you.

965
00:45:09,166 --> 00:45:13,166
The Press:
Will there be any reaction at
all to the report from the --

966
00:45:13,166 --> 00:45:14,934
Mr. Carney:
Again, it's a private report.

967
00:45:14,934 --> 00:45:19,900
I've given you an assessment of
our view of the problem and the

968
00:45:19,900 --> 00:45:22,233
fact that we, when
it comes to China,

969
00:45:22,233 --> 00:45:25,200
regularly raise this issue
with Chinese officials,

970
00:45:25,200 --> 00:45:27,299
including officials
in the military.

971
00:45:27,300 --> 00:45:28,500
Scott.

972
00:45:28,500 --> 00:45:30,600
The Press:
Jay, Senator McConnell put out a
statement after the President's

973
00:45:30,600 --> 00:45:34,333
event this morning suggesting
that he could move money around

974
00:45:34,333 --> 00:45:37,700
to hold first responders
harmless by maybe hitting green

975
00:45:37,700 --> 00:45:39,866
energy programs or
something like that.

976
00:45:39,867 --> 00:45:42,166
That seemed to be at odds with
what Danny Werfel said about the

977
00:45:42,166 --> 00:45:44,033
government's flexibility.

978
00:45:44,033 --> 00:45:46,567
Is he mischaracterizing
how much flexibility the

979
00:45:46,567 --> 00:45:47,734
government has to --

980
00:45:47,734 --> 00:45:48,467
The Press:
I haven't seen the statement.

981
00:45:48,467 --> 00:45:52,367
There is not the flexibility
that some would suggest exists

982
00:45:52,367 --> 00:45:53,867
because the law is
written the way it is,

983
00:45:53,867 --> 00:45:58,300
and it's a lot of money in a
short period of time not dealing

984
00:45:58,300 --> 00:46:03,133
with our entire $3.4
trillion, as Jon said,

985
00:46:03,133 --> 00:46:04,899
but with just defense
and non-defense

986
00:46:04,900 --> 00:46:07,867
discretionary spending.

987
00:46:07,867 --> 00:46:12,300
The fact of the matter is you
cannot do this in a way that

988
00:46:12,300 --> 00:46:14,533
would not have tremendously
harmful effects.

989
00:46:14,533 --> 00:46:16,066
Again, I haven't seen the
quote that you've mentioned.

990
00:46:16,066 --> 00:46:18,133
But let's say you
were to do that,

991
00:46:18,133 --> 00:46:20,700
does that mean you add
another 50,000 people --

992
00:46:20,700 --> 00:46:23,133
kids that you're going to
throw off of Head Start?

993
00:46:23,133 --> 00:46:26,600
Does it mean another
100 border security --

994
00:46:26,600 --> 00:46:29,500
Border agents that you furlough?

995
00:46:29,500 --> 00:46:33,166
The fact is the impacts are
highly harmful to the economy.

996
00:46:33,166 --> 00:46:37,800
They would result in hundreds of
thousands of people having their

997
00:46:37,800 --> 00:46:44,200
jobs put at risk and would, by
outside economists' assessments,

998
00:46:44,200 --> 00:46:47,767
do severe harm to the recovery
that's been underway now for

999
00:46:47,767 --> 00:46:50,299
quite some time from
the Great Recession.

1000
00:46:50,300 --> 00:46:51,934
The Press:
Just aside from the merits of
whatever you might substitute,

1001
00:46:51,934 --> 00:46:56,233
it sounded like from what Werfel
said, the money is by account,

1002
00:46:56,233 --> 00:46:57,767
and you can't even
move it among accounts.

1003
00:46:57,767 --> 00:46:59,834
Mr. Carney:
Well, Scott, I think I would
rely on the experts here,

1004
00:46:59,834 --> 00:47:01,866
and Danny Werfel is an expert.

1005
00:47:01,867 --> 00:47:02,667
Mark.

1006
00:47:02,667 --> 00:47:06,299
The Press:
Jay, the whole point of the
sequester, if I'm not mistaken,

1007
00:47:06,300 --> 00:47:10,133
was to come up with a plan that
was so painful that no way would

1008
00:47:10,133 --> 00:47:13,000
anybody want it
to go into effect.

1009
00:47:13,000 --> 00:47:15,900
Does it now look as though
it's not painful enough?

1010
00:47:15,900 --> 00:47:18,967
Mr. Carney:
Well, I would point you to
numerous statements by numerous

1011
00:47:18,967 --> 00:47:21,266
Republicans, including
leading Republicans last year,

1012
00:47:21,266 --> 00:47:25,500
about the devastating effect of
sequester and how it would have

1013
00:47:25,500 --> 00:47:27,400
-- we should avoid
it at all costs.

1014
00:47:27,400 --> 00:47:30,934
And then I would point you to
an article in The Wall Street

1015
00:47:30,934 --> 00:47:34,767
Journal in which recently the
Speaker of the House boasted

1016
00:47:34,767 --> 00:47:38,933
that he had the support of
Republicans in the House to

1017
00:47:38,934 --> 00:47:43,867
allow sequester to take effect
with all of its harmful impacts,

1018
00:47:43,867 --> 00:47:48,367
and that he "has it in
his pocket," as a play,

1019
00:47:48,367 --> 00:47:51,767
a political play in his
negotiations with Democrats and

1020
00:47:51,767 --> 00:47:53,399
the White House.

1021
00:47:53,400 --> 00:47:56,967
The leverage that he's
discussing in that article

1022
00:47:56,967 --> 00:47:59,667
sounds abstract and esoteric.

1023
00:47:59,667 --> 00:48:05,700
It's about the political
battle here in Washington.

1024
00:48:05,700 --> 00:48:09,533
But the leverage really has to
do with people in the country

1025
00:48:09,533 --> 00:48:12,400
who will lose their
jobs, people --

1026
00:48:12,400 --> 00:48:15,734
families in the country who
will be affected if our economy

1027
00:48:15,734 --> 00:48:17,567
stops growing.

1028
00:48:17,567 --> 00:48:18,934
That's the leverage.

1029
00:48:18,934 --> 00:48:22,767
Those are the -- that's the
collateral damage to the kind of

1030
00:48:22,767 --> 00:48:28,200
reckless partisanship that
allowing the sequester to take

1031
00:48:28,200 --> 00:48:33,600
effect represents; and
partisanship in the service of

1032
00:48:33,600 --> 00:48:36,000
trying to achieve an
ideological goal,

1033
00:48:36,000 --> 00:48:38,467
a goal that is not
supported by the country,

1034
00:48:38,467 --> 00:48:43,367
that was much debated during
the election campaign last year,

1035
00:48:43,367 --> 00:48:46,233
and an issue on which
the American people spoke

1036
00:48:46,233 --> 00:48:47,467
very clearly.

1037
00:48:47,467 --> 00:48:49,200
The Press:
Thanks, Jay.

1038
00:48:49,200 --> 00:48:51,100
Mr. Carney:
Sam Stein, last one.

1039
00:48:51,100 --> 00:48:54,133
The Press:
Yes, can you give a little bit
more specific on how the White

1040
00:48:54,133 --> 00:48:56,734
House defines a balanced
replacement to the sequester?

1041
00:48:56,734 --> 00:48:58,900
If it's not 50/50
revenues, taxes,

1042
00:48:58,900 --> 00:49:01,066
what percentage would
you qualify as balanced?

1043
00:49:01,066 --> 00:49:03,734
And on the spending cuts side,
if some of those cuts didn't

1044
00:49:03,734 --> 00:49:07,799
include defense, would the White
House consider that balanced?

1045
00:49:07,800 --> 00:49:12,500
Mr. Carney:
Balanced means revenues as
well as cuts, spending cuts,

1046
00:49:12,500 --> 00:49:13,500
first of all.

1047
00:49:13,500 --> 00:49:16,934
And then I would note that
we support the proposals put

1048
00:49:16,934 --> 00:49:20,033
forward by Senate Democrats
and House Democrats,

1049
00:49:20,033 --> 00:49:22,734
and you can evaluate
them in terms of ratios.

1050
00:49:22,734 --> 00:49:26,967
But balance here means adopting
the basic principle that was

1051
00:49:26,967 --> 00:49:30,967
reiterated again by Erskine
Bowles and Alan Simpson today,

1052
00:49:30,967 --> 00:49:33,467
that is embraced by
bipartisan groups,

1053
00:49:33,467 --> 00:49:37,200
by outside economists and by
average Americans across the

1054
00:49:37,200 --> 00:49:39,667
country regardless of their
political affiliation,

1055
00:49:39,667 --> 00:49:42,033
and that is that we should not
ask seniors alone to bear the

1056
00:49:42,033 --> 00:49:43,400
burden of deficit reduction.

1057
00:49:43,400 --> 00:49:45,900
We should not ask middle-class
families alone to bear the

1058
00:49:45,900 --> 00:49:48,266
burden of deficit reduction;
that everybody ought to do

1059
00:49:48,266 --> 00:49:49,400
their fair share.

1060
00:49:49,400 --> 00:49:51,567
And the way to achieve
that is through balance.

1061
00:49:51,567 --> 00:49:54,333
Balance that, in every one
of the President's proposals,

1062
00:49:54,333 --> 00:49:58,133
has included more in spending
cuts than in revenues.

1063
00:49:58,133 --> 00:50:01,265
Again, going back to the
fundamental disconnect here

1064
00:50:01,266 --> 00:50:04,066
between what Republicans have
demonstrated themselves willing

1065
00:50:04,066 --> 00:50:07,366
to do and what the President has
shown himself willing to do and

1066
00:50:07,367 --> 00:50:12,233
the leadership that he has shown
in putting forward plans that

1067
00:50:12,233 --> 00:50:13,834
represent significant
spending cuts,

1068
00:50:13,834 --> 00:50:17,232
represent significant savings
through entitlement reforms.

1069
00:50:17,233 --> 00:50:19,734
The Press:
But there's no specific ratio
of spending cuts to tax revenues

1070
00:50:19,734 --> 00:50:22,600
that you would consider is
balanced versus not balanced?

1071
00:50:22,600 --> 00:50:24,667
Same with cuts as
defense and non-defense?

1072
00:50:24,667 --> 00:50:26,633
Mr. Carney:
There is an overall approach
here to the broader package of

1073
00:50:26,633 --> 00:50:28,966
$4 trillion in deficit
reduction that the President has

1074
00:50:28,967 --> 00:50:29,900
talked about.

1075
00:50:29,900 --> 00:50:31,367
When you're talking
about the buy-down,

1076
00:50:31,367 --> 00:50:34,734
we support the legislation
put forward by Senate and

1077
00:50:34,734 --> 00:50:35,834
House Democrats.

1078
00:50:35,834 --> 00:50:36,834
Thanks, guys.