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1 00:00:03,000 --> 00:00:04,100 Mr. Carney: Good afternoon, ladies and gentlemen. 2 00:00:04,100 --> 00:00:05,165 Thank you for being here. 3 00:00:05,166 --> 00:00:09,100 I just want to note the President has a Cabinet meeting 4 00:00:09,100 --> 00:00:10,900 at 1:00 p.m., so we're going to need to move through 5 00:00:10,900 --> 00:00:11,900 this quickly. 6 00:00:11,900 --> 00:00:15,767 I will try to be precise and concise in my answers and move 7 00:00:15,767 --> 00:00:17,633 around as quickly as I can. 8 00:00:17,633 --> 00:00:20,299 And for that reason, I have no topper. 9 00:00:20,300 --> 00:00:21,233 Associated Press. 10 00:00:21,233 --> 00:00:22,033 The Press: Thank you. 11 00:00:22,033 --> 00:00:24,767 Now that the sequester cuts have begun to take effect I'm 12 00:00:24,767 --> 00:00:28,266 wondering what we should be expecting from the White House. 13 00:00:28,266 --> 00:00:31,767 Are officials going to be trying to point out negative impacts of 14 00:00:31,767 --> 00:00:32,766 the sequester? 15 00:00:32,767 --> 00:00:35,467 Is there any effort that's going to be underway to try to build 16 00:00:35,467 --> 00:00:38,333 some type of public reaction to pressure Washington to 17 00:00:38,333 --> 00:00:40,100 avert these cuts? 18 00:00:40,100 --> 00:00:44,367 Mr. Carney: We made clear that the imposition of the sequester will 19 00:00:44,367 --> 00:00:50,632 have serious consequences for middle-class Americans across 20 00:00:50,633 --> 00:00:51,633 the country. 21 00:00:51,633 --> 00:00:56,100 The sequester will have serious consequences for Defense 22 00:00:56,100 --> 00:00:58,767 Department contractors, civilian workers, 23 00:00:58,767 --> 00:01:00,133 and for our defense readiness. 24 00:01:00,133 --> 00:01:04,400 It will have serious consequences for families whose 25 00:01:04,400 --> 00:01:07,333 child will lose a Head Start slot, 26 00:01:07,333 --> 00:01:13,433 for workers on the border -- border security agents, 27 00:01:13,433 --> 00:01:20,900 for air traffic controllers who will have their hours cut. 28 00:01:20,900 --> 00:01:27,867 And I'm sure you will be hearing about these impacts from 29 00:01:27,867 --> 00:01:33,433 Americans themselves who will wonder why Republicans made this 30 00:01:33,433 --> 00:01:39,266 choice, why they wouldn't go along with what they did two 31 00:01:39,266 --> 00:01:41,700 months ago, why they wouldn't go along with balanced deficit 32 00:01:41,700 --> 00:01:47,934 reduction, why they chose protecting tax loopholes for the 33 00:01:47,934 --> 00:01:52,399 few rather than protecting the jobs of the many or protecting 34 00:01:52,400 --> 00:01:53,467 our economy. 35 00:01:53,467 --> 00:01:57,700 There have been and there will be specific effects that we'll 36 00:01:57,700 --> 00:02:01,667 see, and there will be the overall effect, 37 00:02:01,667 --> 00:02:03,200 which I don't think anybody argues with -- 38 00:02:03,200 --> 00:02:06,700 CBO, Macroeconomics Advisers, Moody's, 39 00:02:06,700 --> 00:02:09,366 others have estimated that we will lose up to three-quarters 40 00:02:09,366 --> 00:02:13,132 of a million jobs because of sequester, if it stays in place, 41 00:02:13,133 --> 00:02:19,300 and our economy will grow by a full half a percentage point 42 00:02:19,300 --> 00:02:23,333 more slowly than it would have otherwise -- or more. 43 00:02:23,333 --> 00:02:26,333 We'll continue to talk about this because it's bad for 44 00:02:26,333 --> 00:02:27,333 the country. 45 00:02:27,333 --> 00:02:28,333 It's unnecessary. 46 00:02:28,333 --> 00:02:30,166 It's a self-inflicted wound on the economy. 47 00:02:30,166 --> 00:02:35,133 But we'll also continue to work on those things that the 48 00:02:35,133 --> 00:02:36,800 American people expect us to work on -- 49 00:02:36,800 --> 00:02:42,000 on creating jobs, growing the economy, 50 00:02:42,000 --> 00:02:45,033 making sure that we get comprehensive immigration 51 00:02:45,033 --> 00:02:50,733 reform, making sure that we move forward towards getting a 52 00:02:50,734 --> 00:02:55,233 comprehensive set of initiatives in place to reduce gun violence, 53 00:02:55,233 --> 00:02:56,867 and other things. 54 00:02:56,867 --> 00:02:59,600 The Press: What was the President asking from lawmakers he talked to 55 00:02:59,600 --> 00:03:00,632 on Saturday? 56 00:03:00,633 --> 00:03:04,200 And can we also get a list of the lawmakers that he called? 57 00:03:04,200 --> 00:03:06,667 Mr. Carney: The President had conversations with Republicans and Democrats 58 00:03:06,667 --> 00:03:11,633 over the weekend about the sequester specifically, 59 00:03:11,633 --> 00:03:16,500 and the broader issue of balanced deficit reduction. 60 00:03:16,500 --> 00:03:21,900 And he spoke here the other day about believing that there is a 61 00:03:21,900 --> 00:03:24,266 caucus of common sense out there, 62 00:03:24,266 --> 00:03:29,033 lawmakers in both parties who understand that we need to do 63 00:03:29,033 --> 00:03:31,833 tough things to achieve entitlement reforms because 64 00:03:31,834 --> 00:03:33,166 that's the right thing for our economy, 65 00:03:33,166 --> 00:03:35,433 and we need to do tough things on tax reform -- 66 00:03:35,433 --> 00:03:38,966 tough things for Republicans -- go along with tax reform in a 67 00:03:38,967 --> 00:03:41,166 way that generate revenues to pay down our deficit. 68 00:03:41,166 --> 00:03:44,299 And that's the kind of discussion he's having with 69 00:03:44,300 --> 00:03:46,467 lawmakers and he'll continue to have, 70 00:03:46,467 --> 00:03:49,767 because he believes that there are Republicans who -- 71 00:03:49,767 --> 00:03:51,934 both those who have spoken publicly about it and others who 72 00:03:51,934 --> 00:03:54,700 have not -- who support the general premise of balance, 73 00:03:54,700 --> 00:03:58,767 who support the idea that we should reform our tax code in a 74 00:03:58,767 --> 00:04:02,400 way that eliminates these special breaks for the few and 75 00:04:02,400 --> 00:04:04,133 the wealthy and the well-connected, 76 00:04:04,133 --> 00:04:08,433 and to use that revenue for reducing our deficit so that we 77 00:04:08,433 --> 00:04:13,632 don't put the burden solely on senior citizens or families with 78 00:04:13,633 --> 00:04:15,533 children who have disabilities and the like. 79 00:04:15,533 --> 00:04:17,800 So he'll continue those conversations. 80 00:04:17,800 --> 00:04:20,900 I don't have a list for you. 81 00:04:20,899 --> 00:04:22,400 We're trying to be clear that the President is having 82 00:04:22,400 --> 00:04:23,400 these conversations. 83 00:04:23,400 --> 00:04:28,734 It's not necessarily helpful for individual senators to have 84 00:04:28,734 --> 00:04:31,299 those conversations specifically read out. 85 00:04:31,300 --> 00:04:35,233 But, of course, you're welcome to contact senators yourself. 86 00:04:35,233 --> 00:04:36,300 Yes. 87 00:04:36,300 --> 00:04:38,233 The Press: Is the President open to having talks, 88 00:04:38,233 --> 00:04:41,934 or perhaps having talks already, with lawmakers specifically on 89 00:04:41,934 --> 00:04:45,900 finding ways to reduce the impacts of the sequester? 90 00:04:45,900 --> 00:04:49,500 Mr. Carney: I think we've been very clear about the way the law is written 91 00:04:49,500 --> 00:04:55,900 and the fact that flexibility does not help the overall 92 00:04:55,900 --> 00:04:58,734 problem, because, as the Chairman of the Fed has said and 93 00:04:58,734 --> 00:05:02,967 many others have said, $85 billion withdrawn from our 94 00:05:02,967 --> 00:05:06,467 defense and nondefense discretionary budgets will have 95 00:05:06,467 --> 00:05:07,467 a negative impact. 96 00:05:07,467 --> 00:05:08,467 That's what the CBO has said. 97 00:05:08,467 --> 00:05:10,866 That's what outside economists have said. 98 00:05:10,867 --> 00:05:14,667 And certainly we're seeing some of those impacts already on 99 00:05:14,667 --> 00:05:18,433 regular folks out there who are trying to make ends meet but are 100 00:05:18,433 --> 00:05:22,867 finding out through warn notices or other advisories that they 101 00:05:22,867 --> 00:05:26,000 may lose their jobs, or they're going to lose some of their pay, 102 00:05:26,000 --> 00:05:28,433 or they're going to be furloughed. 103 00:05:28,433 --> 00:05:32,734 So we're working with and we'll continue to work with Congress 104 00:05:32,734 --> 00:05:37,467 towards achieving a compromise that eliminates that sequester, 105 00:05:37,467 --> 00:05:41,366 that achieves balanced deficit reduction, 106 00:05:41,367 --> 00:05:43,567 that does it in a way that allows our economy to grow and 107 00:05:43,567 --> 00:05:45,300 to help the middle class grow. 108 00:05:45,300 --> 00:05:48,834 Because the President firmly believes that our economy is at 109 00:05:48,834 --> 00:05:51,500 its strongest and its best when it grows from the middle out and 110 00:05:51,500 --> 00:05:53,133 not the top down. 111 00:05:53,133 --> 00:05:54,933 That's been proven by our history. 112 00:05:54,934 --> 00:05:58,800 So that's the effort that we're undertaking. 113 00:05:58,800 --> 00:06:01,767 The Press: You talk about moving forward with gun control, 114 00:06:01,767 --> 00:06:05,834 immigration reform, but how do you do that when we're mired in 115 00:06:05,834 --> 00:06:09,333 this discussion about the budget? 116 00:06:09,333 --> 00:06:11,233 Mr. Carney: Well, you do it because you have to do it, 117 00:06:11,233 --> 00:06:12,867 because these issues matter and they're important. 118 00:06:12,867 --> 00:06:17,934 And there are lawmakers on both sides of the aisle who believe 119 00:06:17,934 --> 00:06:20,667 that those issues are important and should be acted on, 120 00:06:20,667 --> 00:06:24,400 and we're working with members, both Republicans and Democrats, 121 00:06:24,400 --> 00:06:25,467 on those issues. 122 00:06:25,467 --> 00:06:29,500 And they're very key to the President's second term agenda. 123 00:06:29,500 --> 00:06:31,633 He thinks they're the right thing for the country, 124 00:06:31,633 --> 00:06:33,500 the right thing for our families, 125 00:06:33,500 --> 00:06:34,567 the right thing for our economy. 126 00:06:34,567 --> 00:06:36,834 So he'll continue to work on those issues just as he will 127 00:06:36,834 --> 00:06:39,467 continue to work on enhancing our national security and 128 00:06:39,467 --> 00:06:43,967 continue to work on measures to, in spite of the impacts of the 129 00:06:43,967 --> 00:06:47,265 sequester, to improve job creation and economic growth, 130 00:06:47,266 --> 00:06:48,467 and help the middle class. 131 00:06:48,467 --> 00:06:53,967 It is unfortunate -- again, this is a wholly unnecessary decision 132 00:06:53,967 --> 00:06:59,265 that was made by Republicans to allow this to happen. 133 00:06:59,266 --> 00:07:02,133 If you step back, what is somewhat remarkable about it, 134 00:07:02,133 --> 00:07:05,734 because you see Republicans calling it a victory -- 135 00:07:05,734 --> 00:07:10,567 a victory for the tea party or a victory because they stood up to 136 00:07:10,567 --> 00:07:15,233 the President on spending -- but remember what Republican goals 137 00:07:15,233 --> 00:07:17,100 are supposed to be. 138 00:07:17,100 --> 00:07:21,567 Republicans budgets call for an increase in defense spending, 139 00:07:21,567 --> 00:07:25,000 not the dramatic cut we're seeing with the imposition of 140 00:07:25,000 --> 00:07:26,166 the sequester. 141 00:07:26,166 --> 00:07:29,767 Republicans generally talk about increasing our border security 142 00:07:29,767 --> 00:07:32,734 presence, consistent with the way it's increased over the 143 00:07:32,734 --> 00:07:36,000 years, doubled since 2004. 144 00:07:36,000 --> 00:07:38,900 Obviously, sequester does the opposite. 145 00:07:38,900 --> 00:07:41,233 Republicans say they're the party of deficit reduction, 146 00:07:41,233 --> 00:07:44,166 long-term deficit reduction; the sequester doesn't achieve that. 147 00:07:44,166 --> 00:07:46,600 The Republicans say that they want entitlement reforms; 148 00:07:46,600 --> 00:07:48,800 there's nothing in the sequester that achieves 149 00:07:48,800 --> 00:07:49,800 entitlement reform. 150 00:07:49,800 --> 00:07:53,367 They say they want tax reform; there's nothing here that meets 151 00:07:53,367 --> 00:07:54,367 that objective. 152 00:07:54,367 --> 00:07:57,667 The President has put forward a proposal that does meet those 153 00:07:57,667 --> 00:07:59,734 objectives -- that achieves entitlement reform, 154 00:07:59,734 --> 00:08:04,000 that achieves tax reform in a balanced and fair way, 155 00:08:04,000 --> 00:08:09,033 that allows for the necessary level of funding for our 156 00:08:09,033 --> 00:08:13,500 national security interests, that allows for the continued 157 00:08:13,500 --> 00:08:16,400 strengthening of our border security. 158 00:08:16,400 --> 00:08:21,700 And he hopes that having achieved this empty victory, 159 00:08:21,700 --> 00:08:27,000 at least as they see it, the Republicans will understand that 160 00:08:27,000 --> 00:08:28,900 their goals are being unmet here, 161 00:08:28,900 --> 00:08:33,433 so not only are Americans suffering from this -- 162 00:08:33,433 --> 00:08:37,000 regular folks -- but their objectives are being unmet. 163 00:08:37,000 --> 00:08:43,400 And there's an opportunity to change that dynamic, 164 00:08:43,400 --> 00:08:45,967 to do something that's good for the country, 165 00:08:45,967 --> 00:08:49,199 that's good for the economy, and that's to come together around a 166 00:08:49,200 --> 00:08:51,233 plan that would reduce our deficit in a balanced way, 167 00:08:51,233 --> 00:08:54,733 that would embrace both entitlement reform and tax 168 00:08:54,734 --> 00:08:57,300 reform towards deficit reduction. 169 00:08:57,300 --> 00:08:59,199 One of the things that's striking to me when you talk 170 00:08:59,200 --> 00:09:01,834 about the differences between these two parties is we're only 171 00:09:01,834 --> 00:09:06,566 asking that the Republicans do what the Speaker said he wanted 172 00:09:06,567 --> 00:09:10,734 to do just two months ago -- enact tax reform, 173 00:09:10,734 --> 00:09:13,533 achieve revenue by closing loopholes for the well-off and 174 00:09:13,533 --> 00:09:17,767 the well-connected, and use that money towards deficit reduction, 175 00:09:17,767 --> 00:09:19,033 a very conservative goal. 176 00:09:19,033 --> 00:09:22,533 The President has put forward entitlement reforms -- 177 00:09:22,533 --> 00:09:26,500 some tough entitlement reforms that achieve savings. 178 00:09:26,500 --> 00:09:30,533 And he, as part of a balanced approach, 179 00:09:30,533 --> 00:09:32,767 would commit to doing those, as his plan calls for, 180 00:09:32,767 --> 00:09:36,300 if Republicans would commit to what they said they wanted to do 181 00:09:36,300 --> 00:09:39,099 just a few months ago, which is tax reform in the name of 182 00:09:39,100 --> 00:09:40,533 deficit reduction. 183 00:09:40,533 --> 00:09:44,367 It is the conservative thing to do to use that money to reduce 184 00:09:44,367 --> 00:09:49,165 the deficit, not to funnel it into tax cuts for wealthy folks. 185 00:09:49,166 --> 00:09:51,433 That seems counterproductive, to say the least. 186 00:09:51,433 --> 00:09:58,066 So the President hopes the common-sense caucus expands in 187 00:09:58,066 --> 00:09:59,100 support of those ideas. 188 00:09:59,100 --> 00:10:00,300 Jim. 189 00:10:00,300 --> 00:10:02,867 The Press: Jay, isn't the sequester really here to stay? 190 00:10:02,867 --> 00:10:05,500 Because I think what you saw over the weekend is that you 191 00:10:05,500 --> 00:10:07,333 heard the two Republican leaders -- 192 00:10:07,333 --> 00:10:08,433 Mitch McConnell and John Boehner -- 193 00:10:08,433 --> 00:10:10,033 start talking about how we need to work through 194 00:10:10,033 --> 00:10:11,333 continuing resolution. 195 00:10:11,333 --> 00:10:14,699 They were confident that that would happen. 196 00:10:14,700 --> 00:10:17,800 What makes you think that you can go back and do away with 197 00:10:17,800 --> 00:10:19,900 these cuts in the sequester? 198 00:10:19,900 --> 00:10:21,733 Mr. Carney: Well, for all the reasons I just mentioned, 199 00:10:21,734 --> 00:10:23,900 and that is that the sequester doesn't achieve any of the 200 00:10:23,900 --> 00:10:27,033 stated objectives of the Republican Party, 201 00:10:27,033 --> 00:10:29,033 of Republican leaders. 202 00:10:29,033 --> 00:10:31,500 It creates all the harm that Republican leaders said it would 203 00:10:31,500 --> 00:10:34,333 create when they were decrying the sequester just a few 204 00:10:34,333 --> 00:10:35,199 months ago. 205 00:10:35,200 --> 00:10:36,900 The Press: They said they're not going to come back and do anything in 206 00:10:36,900 --> 00:10:38,433 terms of revenues. 207 00:10:38,433 --> 00:10:40,300 There's not one Republican, Mitch McConnell said, 208 00:10:40,300 --> 00:10:43,333 who is in favor of increasing revenues. 209 00:10:43,333 --> 00:10:44,834 So it seems like you're at an impasse. 210 00:10:44,834 --> 00:10:46,199 Mr. Carney: Well, that's false on its face since there are a number of 211 00:10:46,200 --> 00:10:48,333 Republicans who said they support tax reform that creates 212 00:10:48,333 --> 00:10:50,900 revenues, and they've said so publicly, 213 00:10:50,900 --> 00:10:52,300 including very prominent Republicans. 214 00:10:52,300 --> 00:10:55,632 So there's that. 215 00:10:55,633 --> 00:10:58,233 But the issue here is on the continuing resolution and 216 00:10:58,233 --> 00:10:59,266 funding the government. 217 00:10:59,266 --> 00:11:01,632 We certainly support the idea that, 218 00:11:01,633 --> 00:11:04,700 as the President said from here, that we should not create 219 00:11:04,700 --> 00:11:07,066 another crisis on top of this one, 220 00:11:07,066 --> 00:11:13,500 another manufactured showdown; that Congress ought to pass a CR 221 00:11:13,500 --> 00:11:18,700 without drama, as it has a half dozen times since April of 2011 222 00:11:18,700 --> 00:11:20,500 -- you probably didn't know it was that many times because 223 00:11:20,500 --> 00:11:24,400 there was no drama around it -- and to do that in a way that's 224 00:11:24,400 --> 00:11:26,766 practical and nonpolitical and consistent with the levels of 225 00:11:26,767 --> 00:11:28,200 the Budget Control Act. 226 00:11:28,200 --> 00:11:29,800 We'll see what Congress does. 227 00:11:29,800 --> 00:11:31,699 We'll see what the Republicans do. 228 00:11:31,700 --> 00:11:33,000 But the President, as you heard him say, 229 00:11:33,000 --> 00:11:38,000 would support that approach so that we don't add crisis upon 230 00:11:38,000 --> 00:11:39,000 crisis here. 231 00:11:39,000 --> 00:11:40,734 But to the broader question about dealing with the 232 00:11:40,734 --> 00:11:43,867 sequester, we need to do that, but we can do it if we follow 233 00:11:43,867 --> 00:11:49,834 the path that the public says it wants Republicans and Democrats 234 00:11:49,834 --> 00:11:53,266 to follow that the President has embraced, 235 00:11:53,266 --> 00:11:56,400 that bipartisan commissions have said is the right way to go, 236 00:11:56,400 --> 00:11:58,567 and we hope that we can achieve that. 237 00:11:58,567 --> 00:12:02,200 Because if we do, we can really unleash some of the potential, 238 00:12:02,200 --> 00:12:04,533 the bottled up potential in our economy that exists -- 239 00:12:04,533 --> 00:12:08,000 as many economists have said that 2013 could be a very strong 240 00:12:08,000 --> 00:12:12,834 year economically if Washington would stop doing harm to the 241 00:12:12,834 --> 00:12:16,433 economy and start doing things that would help the economy. 242 00:12:16,433 --> 00:12:19,934 The Press: And as a follow-up -- well, not really a follow-up, but maybe on 243 00:12:19,934 --> 00:12:21,567 a separate front. 244 00:12:21,567 --> 00:12:24,000 Mr. Carney: I won't hold you to it. 245 00:12:24,000 --> 00:12:26,433 The Press: Earlier this morning, Secretary Napolitano said that lines at 246 00:12:26,433 --> 00:12:29,900 some of the biggest airports over the weekend were 150 to 247 00:12:29,900 --> 00:12:32,867 200% longer. 248 00:12:32,867 --> 00:12:35,033 We're asking Homeland Security for some kind of metrics to 249 00:12:35,033 --> 00:12:36,033 back that up. 250 00:12:36,033 --> 00:12:38,967 But given the fact that there was sort of this back-and-forth 251 00:12:38,967 --> 00:12:41,400 over teacher layoffs with Secretary Duncan, 252 00:12:41,400 --> 00:12:44,266 and even the President talked about janitors that might be 253 00:12:44,266 --> 00:12:47,132 impacted at the Capitol -- that may not be the case -- 254 00:12:47,133 --> 00:12:49,633 what is the administration doing to make sure that these numbers 255 00:12:49,633 --> 00:12:50,967 are not hyped? 256 00:12:50,967 --> 00:12:53,000 Because might that undercut your message? 257 00:12:53,000 --> 00:12:55,533 Mr. Carney: Here's the thing. 258 00:12:55,533 --> 00:12:59,734 If you disagree with the CBO and with outside economic analysts 259 00:12:59,734 --> 00:13:02,133 who say that up to three-quarters of a million jobs 260 00:13:02,133 --> 00:13:04,400 will be lost, well, you should make that case. 261 00:13:04,400 --> 00:13:05,400 Those are real people. 262 00:13:05,400 --> 00:13:10,867 And of course many, many more will see their wages cut or 263 00:13:10,867 --> 00:13:14,233 their days on the job reduced. 264 00:13:14,233 --> 00:13:15,233 That's just a fact. 265 00:13:15,233 --> 00:13:17,766 And the impact on the overall economy, that is an established, 266 00:13:17,767 --> 00:13:23,500 predicted fact by outside economists as well as the CBO. 267 00:13:23,500 --> 00:13:26,433 There's no way to do what the sequester calls for and not 268 00:13:26,433 --> 00:13:30,667 create these negative effects. 269 00:13:30,667 --> 00:13:34,166 There are just numerous examples already of what's going 270 00:13:34,166 --> 00:13:35,166 to happen. 271 00:13:35,166 --> 00:13:36,934 The Department of Defense has informed Congress it will have 272 00:13:36,934 --> 00:13:41,132 to furlough 750,000 workers, and the Navy has told Virginia it 273 00:13:41,133 --> 00:13:43,633 will have to cancel maintenance on 11 ships. 274 00:13:43,633 --> 00:13:46,533 The Army has begun curtailing training for all units except 275 00:13:46,533 --> 00:13:48,133 those deploying to Afghanistan. 276 00:13:48,133 --> 00:13:51,867 The Department of Justice transmitted approximately 277 00:13:51,867 --> 00:13:56,533 115,000 furlough notices to all DOJ employees. 278 00:13:56,533 --> 00:13:58,934 General Dynamics NASSCO, a major ship design, 279 00:13:58,934 --> 00:14:03,165 construction and repair company, mailed warn letters to about 280 00:14:03,166 --> 00:14:06,266 1,040 employees in San Diego, Norfolk and Mayport, 281 00:14:06,266 --> 00:14:09,433 informing them that they could be indefinitely laid off in 282 00:14:09,433 --> 00:14:11,633 April -- at the end of April through the summer, 283 00:14:11,633 --> 00:14:13,767 due to the possible cancellation or delay of maintenance and 284 00:14:13,767 --> 00:14:19,266 repair work and uncertainty created by sequestration. 285 00:14:19,266 --> 00:14:20,266 These are the examples. 286 00:14:20,266 --> 00:14:24,165 And I would refer you to the different agencies about how 287 00:14:24,166 --> 00:14:27,734 they'll be felt and who -- which individuals will be 288 00:14:27,734 --> 00:14:29,500 harmed by them. 289 00:14:29,500 --> 00:14:34,667 On the issue of the janitors, it is -- 290 00:14:34,667 --> 00:14:39,333 if you work for an hourly wage, and you earn overtime, 291 00:14:39,333 --> 00:14:43,699 and you depend on that overtime to make ends meet, 292 00:14:43,700 --> 00:14:46,567 it is simply a fact that a reduction in overtime is a 293 00:14:46,567 --> 00:14:48,633 reduction in your pay. 294 00:14:48,633 --> 00:14:51,533 Now, obviously there are some folks who -- 295 00:14:51,533 --> 00:14:54,934 for whom working hourly is a distant memory if it's a memory 296 00:14:54,934 --> 00:14:59,033 at all, but that's a fact, and it's a fact for many families. 297 00:14:59,033 --> 00:15:00,166 The Press: Jay? 298 00:15:00,166 --> 00:15:01,533 Mr. Carney: Yes, Major. 299 00:15:01,533 --> 00:15:04,834 The Press: One question on the flexibility issue that's arising as House 300 00:15:04,834 --> 00:15:06,699 Republicans draft their continuing resolution -- 301 00:15:06,700 --> 00:15:09,333 to what degree is the administration interested in 302 00:15:09,333 --> 00:15:11,867 negotiating over flexibility for the defense side of this, 303 00:15:11,867 --> 00:15:15,033 which appears to be House Republicans' central focus as 304 00:15:15,033 --> 00:15:18,100 they craft this amendment onto a rather standard 305 00:15:18,100 --> 00:15:20,033 continuing resolution? 306 00:15:20,033 --> 00:15:24,233 Mr. Carney: Well, I would like to wait to see what Congress produces. 307 00:15:24,233 --> 00:15:26,233 As Gene Sperling said over the weekend, 308 00:15:26,233 --> 00:15:30,967 we want to see something that is practical and nonpolitical and 309 00:15:30,967 --> 00:15:33,400 consistent with the levels established in the Budget 310 00:15:33,400 --> 00:15:36,632 Control Act that both parties agreed to overwhelmingly. 311 00:15:36,633 --> 00:15:42,967 I'm not going to analyze hypothetical actions that 312 00:15:42,967 --> 00:15:44,900 they may take. 313 00:15:44,900 --> 00:15:47,199 We'll have to see what they produce. 314 00:15:47,200 --> 00:15:48,200 The Press: All right. 315 00:15:48,200 --> 00:15:52,166 On Iran, is there any thought being given here at the White 316 00:15:52,166 --> 00:15:56,000 House of canceling the President's trip to Israel 317 00:15:56,000 --> 00:15:58,200 because there is not a government formed yet under 318 00:15:58,200 --> 00:15:59,867 Prime Minister Netanyahu? 319 00:15:59,867 --> 00:16:02,000 Mr. Carney: We have no scheduling changes to announce. 320 00:16:02,000 --> 00:16:04,500 The President is looking forward to, very much, 321 00:16:04,500 --> 00:16:07,633 his trip to Israel and the region, 322 00:16:07,633 --> 00:16:10,233 and we're on course planning that trip. 323 00:16:10,233 --> 00:16:11,867 Mr. Carney: There were developments over the weekend -- 324 00:16:11,867 --> 00:16:15,533 announcements from Iran about 3,000 centrifuges at Natanz, 325 00:16:15,533 --> 00:16:18,700 the IAEA report saying that they can no longer say categorically 326 00:16:18,700 --> 00:16:21,800 that all of the research and development is for 327 00:16:21,800 --> 00:16:22,800 peaceful uses. 328 00:16:22,800 --> 00:16:25,467 And Prime Minister Netanyahu just told AIPAC a few moments 329 00:16:25,467 --> 00:16:28,433 ago Iran is getting closer, sanctions haven't worked, 330 00:16:28,433 --> 00:16:31,467 and the red line time is getting -- drawing near. 331 00:16:31,467 --> 00:16:34,800 I'd like to get your evaluation of all those developments on 332 00:16:34,800 --> 00:16:37,199 this front over the weekend. 333 00:16:37,200 --> 00:16:39,934 Mr. Carney: There is no question, as we've said many times, 334 00:16:39,934 --> 00:16:45,367 that the window of opportunity for Iran will not remain 335 00:16:45,367 --> 00:16:47,934 open indefinitely. 336 00:16:47,934 --> 00:16:53,367 There is opportunity here for Tehran to give up its nuclear 337 00:16:53,367 --> 00:16:57,766 weapons ambitions, to comply with U.N. Security Council 338 00:16:57,767 --> 00:17:01,767 resolutions, to get right with the international community and 339 00:17:01,767 --> 00:17:08,467 thereby rejoin the international community and end its isolation 340 00:17:08,467 --> 00:17:10,600 from the world because of its behavior. 341 00:17:10,599 --> 00:17:16,265 But that period of opportunity, as the President has said and as 342 00:17:16,266 --> 00:17:19,467 others have said, will not last forever. 343 00:17:19,467 --> 00:17:25,734 And our policy is founded upon the goal that Iran will not 344 00:17:25,733 --> 00:17:29,000 acquire a nuclear weapon, and the President is very serious 345 00:17:29,000 --> 00:17:30,000 about that. 346 00:17:30,000 --> 00:17:33,266 The Press: Would you characterize Iran's reaction to the softened 347 00:17:33,266 --> 00:17:34,233 negotiating offer that the P5-plus-1 just made -- 348 00:17:34,233 --> 00:17:40,966 rebuffed it entirely -- this new -- 349 00:17:40,967 --> 00:17:42,233 Prime Minister Netanyahu's point -- 350 00:17:42,233 --> 00:17:46,500 even when there is an effort to delay or soften the conditions 351 00:17:46,500 --> 00:17:49,367 set before, Iran responds with nothing. 352 00:17:49,367 --> 00:17:52,934 And his point is technologically they're getting closer. 353 00:17:52,934 --> 00:17:54,700 I know this is a sort of catchphrase -- 354 00:17:54,700 --> 00:17:56,734 the window is not going to remain open indefinitely -- 355 00:17:56,734 --> 00:18:00,567 but the point seems to be, is it closing and are we getting to a 356 00:18:00,567 --> 00:18:03,400 point where this issue has to be resolved one way or the other, 357 00:18:03,400 --> 00:18:06,000 either through military means or some other means? 358 00:18:06,000 --> 00:18:07,900 Mr. Carney: Well, we take no option off the table, 359 00:18:07,900 --> 00:18:09,100 including the military option. 360 00:18:09,100 --> 00:18:10,766 That's a point the President has made repeatedly, A. 361 00:18:10,767 --> 00:18:18,066 B, there is no question that the window, the door, 362 00:18:18,066 --> 00:18:25,233 the period of opportunity here will not last forever and that 363 00:18:25,233 --> 00:18:27,000 the more that Iran flouts -- 364 00:18:27,000 --> 00:18:28,166 The Press: It can't last forever, that's obvious. 365 00:18:28,166 --> 00:18:30,100 What I'm trying to get at is, is it getting -- 366 00:18:30,100 --> 00:18:32,265 are we getting to a point where decisions have to be made 367 00:18:32,266 --> 00:18:33,133 very soon? 368 00:18:33,133 --> 00:18:35,266 Mr. Carney: There's no question -- well, I won't characterize a timeframe 369 00:18:35,266 --> 00:18:38,500 here, but there is no question that as Iran continues to flout 370 00:18:38,500 --> 00:18:43,133 its responsibilities, as it continues to take seriously the 371 00:18:43,133 --> 00:18:46,700 insistence of the international community and fails to produce 372 00:18:46,700 --> 00:18:52,033 tangible progress in P5-plus-1 talks, 373 00:18:52,033 --> 00:18:55,000 that its opportunities to get right with the international 374 00:18:55,000 --> 00:19:00,600 community diminish, as does the timeframe in which they 375 00:19:00,600 --> 00:19:01,600 can do that. 376 00:19:01,600 --> 00:19:03,132 But I'm not going to put a date certain -- 377 00:19:03,133 --> 00:19:04,133 an end date certain. 378 00:19:04,133 --> 00:19:07,133 Obviously, there's a lot upon which that depends. 379 00:19:07,133 --> 00:19:08,166 Ed. 380 00:19:08,166 --> 00:19:09,899 The Press: Jay, one of the President's top nominees, John Brennan, 381 00:19:09,900 --> 00:19:12,934 for the CIA, faces a committee vote tomorrow, I believe. 382 00:19:12,934 --> 00:19:17,033 As you know, there have been lawmakers pushing for copies of 383 00:19:17,033 --> 00:19:21,132 these memos that show the legal underpinnings for the use 384 00:19:21,133 --> 00:19:22,433 of drone strikes. 385 00:19:22,433 --> 00:19:24,533 Is the administration willing to share those memos 386 00:19:24,533 --> 00:19:27,500 with lawmakers? 387 00:19:27,500 --> 00:19:33,133 Mr. Carney: We have, as you know, taken action to share advice from OLC 388 00:19:33,133 --> 00:19:36,300 to the relevant committee members. 389 00:19:36,300 --> 00:19:41,133 We are working with the committee to provide information 390 00:19:41,133 --> 00:19:44,400 that is consistent with their requests, 391 00:19:44,400 --> 00:19:49,000 but obviously mindful of all the national security issues that 392 00:19:49,000 --> 00:19:51,033 are at stake in a situation like this. 393 00:19:51,033 --> 00:19:55,734 And we look forward to John Brennan being confirmed -- 394 00:19:55,734 --> 00:19:57,934 passed out of committee and then confirmed by the Senate to be 395 00:19:57,934 --> 00:19:59,033 the next CIA director. 396 00:19:59,033 --> 00:20:03,800 He is extraordinarily qualified for the position and he needs to 397 00:20:03,800 --> 00:20:04,800 get on the job. 398 00:20:04,800 --> 00:20:06,166 The Press: I understand that you've shared, as you say, 399 00:20:06,166 --> 00:20:08,332 the Office of Legal Counsel advice on it. 400 00:20:08,333 --> 00:20:11,667 But do you think the nomination can get through without the 401 00:20:11,667 --> 00:20:14,833 actual memos being shown to lawmakers? 402 00:20:14,834 --> 00:20:18,433 Mr. Carney: Ed, I can't get into a lot of detail about these issues. 403 00:20:18,433 --> 00:20:19,667 We're working with the committee. 404 00:20:19,667 --> 00:20:24,533 We have taken extraordinary measures in a unique situation 405 00:20:24,533 --> 00:20:27,567 to be forthcoming with information. 406 00:20:27,567 --> 00:20:30,066 And we are continuing to work with the committee to meet 407 00:20:30,066 --> 00:20:31,367 their concerns. 408 00:20:31,367 --> 00:20:34,500 The Press: Two other quick things. 409 00:20:34,500 --> 00:20:38,467 More than a week has passed since the initial reports 410 00:20:38,467 --> 00:20:40,467 suggesting that some of the President's outside advisors 411 00:20:40,467 --> 00:20:43,033 were offering access to him for a $500,000 contribution to 412 00:20:43,033 --> 00:20:45,600 Organizing for Action, this outside group that is at least 413 00:20:45,600 --> 00:20:48,433 connected with the President and his former campaign aides like 414 00:20:48,433 --> 00:20:49,433 Jim Messina. 415 00:20:49,433 --> 00:20:51,133 My question is groups like Common Cause, 416 00:20:51,133 --> 00:20:55,633 which are usually not very friendly to the President's 417 00:20:55,633 --> 00:20:59,000 opposition, shall we say, has said that this group should be 418 00:20:59,000 --> 00:21:00,567 shut down altogether. 419 00:21:00,567 --> 00:21:02,934 Can you give us any idea whether the President thinks that's a 420 00:21:02,934 --> 00:21:03,934 good idea? 421 00:21:03,934 --> 00:21:06,133 Is he concerned about the perception out there? 422 00:21:06,133 --> 00:21:09,200 Are you trying to push back on the idea that they will get 423 00:21:09,200 --> 00:21:10,834 access for $500,000? 424 00:21:10,834 --> 00:21:12,700 Mr. Carney: Well, I think I pushed back on it and I'll push back on 425 00:21:12,700 --> 00:21:13,667 it again. 426 00:21:13,667 --> 00:21:15,399 Any notion that there is a set price for a meeting with the 427 00:21:15,400 --> 00:21:17,734 President of the United States is just wrong. 428 00:21:17,734 --> 00:21:20,399 As you know, Organizing for Action was set up to promote the 429 00:21:20,400 --> 00:21:22,033 President's public policy agenda. 430 00:21:22,033 --> 00:21:24,166 Therefore, as anyone would expect, 431 00:21:24,166 --> 00:21:26,633 the President would likely meet with their representatives to 432 00:21:26,633 --> 00:21:28,266 discuss his agenda. 433 00:21:28,266 --> 00:21:30,967 But again, any notion that there's a price for meeting with 434 00:21:30,967 --> 00:21:32,800 the President is simply wrong. 435 00:21:32,800 --> 00:21:35,133 I would send specific questions about how they do their 436 00:21:35,133 --> 00:21:38,133 fundraising to the organization. 437 00:21:38,133 --> 00:21:40,133 But it is worth knowing that they are going beyond what is 438 00:21:40,133 --> 00:21:42,967 required by disclosing donors and not accepting any funds 439 00:21:42,967 --> 00:21:43,967 from lobbyists. 440 00:21:43,967 --> 00:21:47,734 The bottom line here is that this is a separate organization, 441 00:21:47,734 --> 00:21:51,000 as we've noted, the existence of which is perfectly appropriate. 442 00:21:51,000 --> 00:21:54,967 And the White House will engage with it consistent with the way 443 00:21:54,967 --> 00:21:59,233 we engage with a whole host of other outside constituencies. 444 00:21:59,233 --> 00:22:02,033 The Press: But basically, people could still give money to this outside 445 00:22:02,033 --> 00:22:05,000 group as long as it's not directly attached to access. 446 00:22:05,000 --> 00:22:07,100 You've got nothing to do with the money that's going in there. 447 00:22:07,100 --> 00:22:09,199 Mr. Carney: The White House sets the President's schedule. 448 00:22:09,200 --> 00:22:11,667 And there is no price to meet with the President. 449 00:22:11,667 --> 00:22:15,734 Organizations have fundraising. 450 00:22:15,734 --> 00:22:20,399 They raise money and this one has committed to disclosing its 451 00:22:20,400 --> 00:22:21,433 fundraising activities. 452 00:22:21,433 --> 00:22:23,333 But I would refer you to them for more on that. 453 00:22:23,333 --> 00:22:24,333 The Press: The last thing, on sequester. 454 00:22:24,333 --> 00:22:26,400 At the top of this you said something to the effect of 455 00:22:26,400 --> 00:22:29,734 Republicans made a choice here to let these sequester cuts go 456 00:22:29,734 --> 00:22:32,433 through, the context of it. 457 00:22:32,433 --> 00:22:34,200 The President has made choices as well, obviously, 458 00:22:34,200 --> 00:22:37,166 including the fact that his own staff came up with the idea 459 00:22:37,166 --> 00:22:38,332 for sequester. 460 00:22:38,333 --> 00:22:40,633 I understand Republicans ended up voting for it and they bear 461 00:22:40,633 --> 00:22:42,967 some responsibility here as well it needs to be said. 462 00:22:42,967 --> 00:22:46,533 However, does anyone here at the White House regret the fact that 463 00:22:46,533 --> 00:22:48,934 people inside this White House came up with this idea in 464 00:22:48,934 --> 00:22:50,700 the first place? 465 00:22:50,700 --> 00:22:54,633 Mr. Carney: Well, Senator Gramm and Rudman came up with the idea back in 466 00:22:54,633 --> 00:22:55,633 the 1980s. 467 00:22:55,633 --> 00:22:57,500 The Press: They've been out of power a long time. 468 00:22:57,500 --> 00:23:02,200 Mr. Carney: And let's be clear -- and those who were on the inside and those 469 00:23:02,200 --> 00:23:05,734 of you who covered it closely will remember that Republicans 470 00:23:05,734 --> 00:23:08,632 were pushing for a trigger, a hard trigger as part of the 471 00:23:08,633 --> 00:23:12,400 negotiations to avert a default. 472 00:23:12,400 --> 00:23:15,600 The White House proposed numerous triggers that 473 00:23:15,600 --> 00:23:18,033 included revenues. 474 00:23:18,033 --> 00:23:20,500 Republicans absolutely, adamantly, 475 00:23:20,500 --> 00:23:24,900 categorically refused to include revenues in the triggers, 476 00:23:24,900 --> 00:23:28,967 a position that may sound familiar. 477 00:23:28,967 --> 00:23:34,800 They insisted on a spending-cut-only trigger. 478 00:23:34,800 --> 00:23:36,033 That is what sequester is. 479 00:23:36,033 --> 00:23:39,132 It is a spending-cut-only trigger. 480 00:23:39,133 --> 00:23:41,367 The fact that it's called that was because that's what it was 481 00:23:41,367 --> 00:23:44,966 called back in the 1980s under the deficit reduction package 482 00:23:44,967 --> 00:23:49,000 known as Gramm-Rudman-Hollings that President Reagan signed 483 00:23:49,000 --> 00:23:52,533 when they had a trigger, a spending-cuts-only trigger that 484 00:23:52,533 --> 00:23:54,466 was evenly divided between defense spending and 485 00:23:54,467 --> 00:23:55,467 nondefense spending. 486 00:23:55,467 --> 00:23:59,000 And it's true that that was put on the table as part of the 487 00:23:59,000 --> 00:24:01,767 demand for a spending-cuts-only trigger that "let's do it the 488 00:24:01,767 --> 00:24:05,233 "way they did it back under President Reagan," 489 00:24:05,233 --> 00:24:07,066 our team said to Republicans, thinking that might 490 00:24:07,066 --> 00:24:08,266 be appealing. 491 00:24:08,266 --> 00:24:11,867 And it was so appealing that John Boehner said he got 98% of 492 00:24:11,867 --> 00:24:12,867 what he wanted. 493 00:24:12,867 --> 00:24:16,233 Every House Republican leader voted for it enthusiastically, 494 00:24:16,233 --> 00:24:20,667 and Speaker Boehner said he was pretty pleased with the outcome. 495 00:24:20,667 --> 00:24:24,966 So this is all pretty irrelevant. 496 00:24:24,967 --> 00:24:28,934 What is relevant is that it was never supposed to be policy, 497 00:24:28,934 --> 00:24:33,466 and Republicans themselves on so many occasions that I'm sure 498 00:24:33,467 --> 00:24:37,567 we've all lost count said that we had to do everything we can 499 00:24:37,567 --> 00:24:40,300 to avert sequester, that it would be enormously damaging. 500 00:24:40,300 --> 00:24:42,433 Speaker Boehner just a few weeks ago in the Wall Street Journal 501 00:24:42,433 --> 00:24:45,667 said it would do harm to our national defense and would cost 502 00:24:45,667 --> 00:24:46,734 thousands of jobs. 503 00:24:46,734 --> 00:24:47,899 And he's right. 504 00:24:47,900 --> 00:24:51,667 So it was a choice to allow sequester to take effect rather 505 00:24:51,667 --> 00:24:53,867 than embrace the idea that the American people strongly 506 00:24:53,867 --> 00:24:56,834 embrace, that a majority of Republicans strongly embrace out 507 00:24:56,834 --> 00:24:59,633 in the country, which is that we can close a few loopholes for 508 00:24:59,633 --> 00:25:04,433 the wealthy and well-connected, cap a few deductions, 509 00:25:04,433 --> 00:25:07,300 and achieve balanced deficit reduction in a way that would 510 00:25:07,300 --> 00:25:08,867 eliminate the sequester entirely. 511 00:25:08,867 --> 00:25:10,300 Let's just do that. 512 00:25:10,300 --> 00:25:14,600 Let's do that and Republicans can say that they achieved some 513 00:25:14,600 --> 00:25:19,433 very important goals that are elemental to Republican and 514 00:25:19,433 --> 00:25:22,166 conservative philosophy, which is we need deficit reduction, 515 00:25:22,166 --> 00:25:26,899 we need entitlement reform -- and the President says, 516 00:25:26,900 --> 00:25:28,533 I'll meet you halfway towards that -- 517 00:25:28,533 --> 00:25:30,867 and we need tax reform and we'll do that. 518 00:25:30,867 --> 00:25:34,033 So let's do it in a bipartisan, balanced way. 519 00:25:34,033 --> 00:25:35,632 Jon, then Peter. 520 00:25:35,633 --> 00:25:39,066 The Press: Jay, how big a priority -- how high a priority is it for the 521 00:25:39,066 --> 00:25:41,967 President to win back the House of Representatives with 522 00:25:41,967 --> 00:25:42,967 the Democrats? 523 00:25:42,967 --> 00:25:45,900 Mr. Carney: Well, he's obviously interested in the success of Democrats. 524 00:25:45,900 --> 00:25:51,133 But I noted the story that probably prompted your question, 525 00:25:51,133 --> 00:25:55,467 and I think it goes without saying that the President wants 526 00:25:55,467 --> 00:25:59,300 those in his party to do well, but it is not a focus of his 527 00:25:59,300 --> 00:26:01,133 particularly at this point. 528 00:26:01,133 --> 00:26:07,333 He is focused on trying to get a bipartisan consensus around some 529 00:26:07,333 --> 00:26:10,800 very important policy objectives: 530 00:26:10,800 --> 00:26:13,600 balanced deficit reduction that helps our economy grow and 531 00:26:13,600 --> 00:26:17,100 create jobs; comprehensive immigration reform that helps 532 00:26:17,100 --> 00:26:20,734 our economy and the middle class; 533 00:26:20,734 --> 00:26:22,934 common-sense measures that reduce gun violence in this 534 00:26:22,934 --> 00:26:27,500 country; investments in clean energy technology that help 535 00:26:27,500 --> 00:26:30,800 build industries here in this country and help deal with 536 00:26:30,800 --> 00:26:32,332 climate change for the future. 537 00:26:32,333 --> 00:26:35,767 So that's what he's focused on right now. 538 00:26:35,767 --> 00:26:39,333 The Press: Does he agree with the head of the Democratic House Campaign 539 00:26:39,333 --> 00:26:42,300 Committee who said, the President understands -- 540 00:26:42,300 --> 00:26:45,066 and he said this was based on a conversation with the President 541 00:26:45,066 --> 00:26:47,633 -- the President understands that to get anything done we 542 00:26:47,633 --> 00:26:49,333 need to get a Democratic majority in the House 543 00:26:49,333 --> 00:26:50,500 of Representatives? 544 00:26:50,500 --> 00:26:52,133 Mr. Carney: Well, the President certainly believes that, 545 00:26:52,133 --> 00:26:55,100 as other Presidents before him have believed, 546 00:26:55,100 --> 00:26:58,065 that it is easier sometimes to enact your agenda when you have 547 00:26:58,066 --> 00:27:00,467 more members of your party in Congress. 548 00:27:00,467 --> 00:27:02,500 But it is also the President's belief, 549 00:27:02,500 --> 00:27:04,767 and it is established in fact in recent history, 550 00:27:04,767 --> 00:27:09,133 that you can achieve important policy objectives with divided 551 00:27:09,133 --> 00:27:12,767 government, with, in his case, Republican leadership in the 552 00:27:12,767 --> 00:27:15,800 House and Republican semi-control in the Senate 553 00:27:15,800 --> 00:27:17,000 through the filibuster. 554 00:27:17,000 --> 00:27:20,433 And that's what he's done, and he hopes to continue to do that. 555 00:27:20,433 --> 00:27:23,266 I mean, we're talking here about opportunities on immigration 556 00:27:23,266 --> 00:27:26,133 reform and other issues, including balanced deficit 557 00:27:26,133 --> 00:27:28,934 reduction, that require bipartisan support. 558 00:27:28,934 --> 00:27:33,834 And based on what we know in terms of the progress the Gang 559 00:27:33,834 --> 00:27:36,734 of Eight is making, or the progress that's being made in 560 00:27:36,734 --> 00:27:38,567 moving forward on reducing gun violence, 561 00:27:38,567 --> 00:27:41,600 and the progress that is represented by the voices of 562 00:27:41,600 --> 00:27:44,300 those Republicans who say they embrace what the majority of the 563 00:27:44,300 --> 00:27:46,834 country embraces, and they embrace what the majority of 564 00:27:46,834 --> 00:27:50,600 Republicans embrace when it comes to deficit reduction, 565 00:27:50,600 --> 00:27:52,433 that we can do these things. 566 00:27:52,433 --> 00:27:54,934 And the President -- that's what his focus is. 567 00:27:54,934 --> 00:27:57,133 The Press: To the Republicans who say that the President is -- 568 00:27:57,133 --> 00:27:59,400 they're worried the President going into any one of those 569 00:27:59,400 --> 00:28:02,367 issues you just mentioned, going into this not necessarily to get 570 00:28:02,367 --> 00:28:05,899 anything done but to position himself to have a better run at 571 00:28:05,900 --> 00:28:09,100 the mid-term elections, I mean, just to quote Steve Israel 572 00:28:09,100 --> 00:28:13,567 again, "to have a legacy in 2016 he will need a House majority in 573 00:28:13,567 --> 00:28:16,333 "2014 and it has to start now." 574 00:28:16,333 --> 00:28:19,600 Mr. Carney: Look, it is just not accurate that the President doesn't want 575 00:28:19,600 --> 00:28:21,166 these accomplishments. 576 00:28:21,166 --> 00:28:25,833 He is expending great political capital and energy on the 577 00:28:25,834 --> 00:28:29,800 proposition that he wants immigration reform done in a 578 00:28:29,800 --> 00:28:32,367 bipartisan way and done early. 579 00:28:32,367 --> 00:28:38,233 That's why he has pushed so hard for the Senate to move forward 580 00:28:38,233 --> 00:28:39,466 in its efforts. 581 00:28:39,467 --> 00:28:42,333 That's why he has pushed on gun violence measures and put 582 00:28:42,333 --> 00:28:46,767 forward a comprehensive package so early in his -- 583 00:28:46,767 --> 00:28:48,033 the first year of his second term. 584 00:28:48,033 --> 00:28:51,065 And that's why he continues to have on the table the offer that 585 00:28:51,066 --> 00:28:54,233 he made to Speaker Boehner when it comes to completing the 586 00:28:54,233 --> 00:28:58,433 $4-trillion job here of deficit reduction over 10 years that 587 00:28:58,433 --> 00:29:03,166 would help achieve that fiscally sustainable path that we want 588 00:29:03,166 --> 00:29:05,265 for our economy over the next decade. 589 00:29:05,266 --> 00:29:11,066 These are things he believes we can do very soon if 590 00:29:11,066 --> 00:29:13,800 bipartisanship and a spirit of compromise on behalf of the 591 00:29:13,800 --> 00:29:19,100 American people is realized on Capitol Hill. 592 00:29:19,100 --> 00:29:21,632 The Press: So on that offer, I mean, you're absolutely right that some 593 00:29:21,633 --> 00:29:24,633 prominent Republicans have come out in recent days and said that 594 00:29:24,633 --> 00:29:28,200 they could live with a plan that increased tax revenue -- 595 00:29:28,200 --> 00:29:31,433 not to replace the sequester, but as part of kind of a renewed 596 00:29:31,433 --> 00:29:32,500 effort at the grand bargain. 597 00:29:32,500 --> 00:29:34,567 So are we going to see an effort -- 598 00:29:34,567 --> 00:29:36,867 Mr. Carney: But that would eliminate the sequester, which the whole -- 599 00:29:36,867 --> 00:29:38,066 the whole idea behind the -- 600 00:29:38,066 --> 00:29:39,200 The Press: But it would be bigger than just eliminate. 601 00:29:39,200 --> 00:29:39,934 You're exactly right. 602 00:29:39,934 --> 00:29:40,667 But it would be bigger. 603 00:29:40,667 --> 00:29:47,500 So will there be an effort to jumpstart a grand bargain-type 604 00:29:47,500 --> 00:29:51,200 series of talks with Republicans in the coming weeks or months to 605 00:29:51,200 --> 00:29:52,200 achieve just that? 606 00:29:52,200 --> 00:29:54,934 Mr. Carney: I'd hesitate to place labels on things. 607 00:29:54,934 --> 00:29:57,500 I would simply say that the President is interested in 608 00:29:57,500 --> 00:30:03,066 moving forward on deficit reduction that pairs the twin 609 00:30:03,066 --> 00:30:07,133 objectives of entitlement reform and tax reform in the way that 610 00:30:07,133 --> 00:30:10,100 his proposal does, in a way that is consistent with 611 00:30:10,100 --> 00:30:13,899 Simpson-Bowles and Domenici-Rivlin and others who 612 00:30:13,900 --> 00:30:16,333 have put forward ideas and proposals in a bipartisan way. 613 00:30:16,333 --> 00:30:20,100 And it presents an opportunity for both Republicans and 614 00:30:20,100 --> 00:30:23,399 Democrats to achieve some important objectives -- 615 00:30:23,400 --> 00:30:27,000 objectives that are important to their parties, 616 00:30:27,000 --> 00:30:31,100 as well as to the country, and to move forward. 617 00:30:31,100 --> 00:30:32,800 The Press: So that's what the weekend calls were about? 618 00:30:32,800 --> 00:30:33,867 The grand bargain, not -- 619 00:30:33,867 --> 00:30:36,066 Mr. Carney: Well, the weekend calls were about trying to find common 620 00:30:36,066 --> 00:30:39,300 ground on the way to deal with the sequester and balanced 621 00:30:39,300 --> 00:30:40,367 deficit reduction. 622 00:30:40,367 --> 00:30:41,367 The Press: The big deal. 623 00:30:41,367 --> 00:30:42,367 Mr. Carney: But they're linked. 624 00:30:42,367 --> 00:30:44,133 First of all, the big deal has been partly accomplished. 625 00:30:44,133 --> 00:30:47,000 So when the grand bargain negotiations began with Speaker 626 00:30:47,000 --> 00:30:49,266 Boehner, the goal was $4 trillion. 627 00:30:49,266 --> 00:30:51,900 Now we're $2.5 trillion along that road. 628 00:30:51,900 --> 00:30:55,667 So it may be the petite bargain -- 629 00:30:55,667 --> 00:30:59,699 I guess if you go all French. 630 00:30:59,700 --> 00:31:01,100 (laughter) 631 00:31:01,100 --> 00:31:02,699 The Press: I'll leave that entirely to you, Jay. 632 00:31:02,700 --> 00:31:06,500 Mr. Carney: But seriously, $1.5 trillion in deficit reduction, 633 00:31:06,500 --> 00:31:10,266 the President's proposal would achieve $1.8 trillion in further 634 00:31:10,266 --> 00:31:11,834 deficit reduction in a balanced way. 635 00:31:11,834 --> 00:31:13,734 The Press: Bowles-Simpson want $2.4 trillion now at this point. 636 00:31:13,734 --> 00:31:15,734 They've moved the goalpost a little bit to -- 637 00:31:15,734 --> 00:31:19,066 Mr. Carney: There's no question that more work going forward will need to 638 00:31:19,066 --> 00:31:22,667 be done as we deal with our fiscal challenges. 639 00:31:22,667 --> 00:31:28,632 But the $4 trillion in deficit reduction set as a goal by 640 00:31:28,633 --> 00:31:31,900 Speaker Boehner and President Obama and by many economists on 641 00:31:31,900 --> 00:31:35,700 the inside and outside of government can be achieved, 642 00:31:35,700 --> 00:31:39,433 and then some, if Republicans would embrace the President's 643 00:31:39,433 --> 00:31:42,800 compromise proposal that would do some tough things on 644 00:31:42,800 --> 00:31:46,600 entitlements, as well as spending and on tax reform. 645 00:31:46,600 --> 00:31:47,766 The Press: But you understand the difference. 646 00:31:47,767 --> 00:31:50,000 He's trying to create a Republican groundswell for grand 647 00:31:50,000 --> 00:31:51,133 bargain talks. 648 00:31:51,133 --> 00:31:56,333 Mr. Carney: He's just trying to find some common ground around the basic 649 00:31:56,333 --> 00:32:00,166 common-sense notion that we can do this in a balanced way 650 00:32:00,166 --> 00:32:04,934 because he knows that there are significant -- 651 00:32:04,934 --> 00:32:08,834 there's a significant amount of support for that approach around 652 00:32:08,834 --> 00:32:10,133 the country. 653 00:32:10,133 --> 00:32:11,700 April. 654 00:32:11,700 --> 00:32:12,500 Sorry. 655 00:32:12,500 --> 00:32:13,433 Peter, then April. 656 00:32:13,433 --> 00:32:14,233 The Press: April, that was kind of, thank you. 657 00:32:14,233 --> 00:32:15,166 The Press: You're welcome. 658 00:32:15,166 --> 00:32:16,000 The Press: I'm curious since our time -- 659 00:32:16,000 --> 00:32:16,934 Mr. Carney: Stand up, April. 660 00:32:16,934 --> 00:32:17,934 (laughter) 661 00:32:17,934 --> 00:32:18,899 The Press: -- since our time with you is limited right now, 662 00:32:18,900 --> 00:32:21,066 if the President had any reaction or had a chance to 663 00:32:21,066 --> 00:32:23,834 watch some of the conversations with Dennis Rodman who just 664 00:32:23,834 --> 00:32:27,767 returned from North Korea, and if the President believes that 665 00:32:27,767 --> 00:32:31,066 this in some way undermines the government's efforts in trying 666 00:32:31,066 --> 00:32:33,133 to deal with that country. 667 00:32:33,133 --> 00:32:35,300 Mr. Carney: Peter, the United States has direct channels of 668 00:32:35,300 --> 00:32:37,466 communications with the DPRK. 669 00:32:37,467 --> 00:32:41,266 And instead of spending money on celebrity sporting events to 670 00:32:41,266 --> 00:32:42,867 entertain the elites of that country, 671 00:32:42,867 --> 00:32:45,332 the North Korean regime should focus on the well-being of its 672 00:32:45,333 --> 00:32:48,600 own people who have been starved, imprisoned, 673 00:32:48,600 --> 00:32:50,966 and denied their human rights. 674 00:32:50,967 --> 00:32:53,800 We have urged the North Korean leadership to heed President 675 00:32:53,800 --> 00:32:56,700 Obama's call to choose the path of peace and come into 676 00:32:56,700 --> 00:32:59,700 compliance with its international obligations. 677 00:32:59,700 --> 00:33:03,066 North Korea's actions, however, directly violate United Nations 678 00:33:03,066 --> 00:33:05,900 Security Council resolutions and threaten international peace 679 00:33:05,900 --> 00:33:06,934 and security. 680 00:33:06,934 --> 00:33:08,867 The Press: Dennis Rodman carried a message from Kim Jong-un. 681 00:33:08,867 --> 00:33:10,367 He said to call. 682 00:33:10,367 --> 00:33:12,066 So does the President have any intention -- 683 00:33:12,066 --> 00:33:13,100 Mr. Carney: Again, we have -- 684 00:33:13,100 --> 00:33:14,800 The Press: What did he make of -- what did he make of Dennis Rodman being 685 00:33:14,800 --> 00:33:16,633 the ambassador to North Korea? 686 00:33:16,633 --> 00:33:21,500 Mr. Carney: I don't have a readout specific to the President to give to you. 687 00:33:21,500 --> 00:33:25,433 I think that what I just said makes clear that North Korea 688 00:33:25,433 --> 00:33:28,066 ought to be focusing on its own citizens and opportunities to 689 00:33:28,066 --> 00:33:30,033 improve their lives. 690 00:33:30,033 --> 00:33:33,699 And the United States has channels of communications 691 00:33:33,700 --> 00:33:36,100 directly with the DPRK and those are the channels we choose 692 00:33:36,100 --> 00:33:37,332 to employ. 693 00:33:37,333 --> 00:33:38,133 April. 694 00:33:38,133 --> 00:33:41,233 The Press: Jay, I want to go back to sequestration and then to 695 00:33:41,233 --> 00:33:43,367 something with Mitt Romney. 696 00:33:43,367 --> 00:33:46,567 You said sequestration will have serious consequences. 697 00:33:46,567 --> 00:33:49,533 With that, what is the estimated number of Americans who will 698 00:33:49,533 --> 00:33:54,033 fall out of the middle-class status because of sequestration? 699 00:33:54,033 --> 00:33:56,833 Mr. Carney: Well, I don't have that breakdown. 700 00:33:56,834 --> 00:34:01,066 You may look at what -- some of the analysis that has been done 701 00:34:01,066 --> 00:34:03,934 by outside economic organizations like Moody's and 702 00:34:03,934 --> 00:34:05,166 Macroeconomics Advisers. 703 00:34:05,166 --> 00:34:06,833 But I'm not sure if they break it down that way. 704 00:34:06,834 --> 00:34:11,600 Certainly, if 750,000 Americans lose their jobs, 705 00:34:11,600 --> 00:34:15,866 that could have an effect on the size of the middle class. 706 00:34:15,867 --> 00:34:20,600 And that would be highly counterproductive to the stated 707 00:34:20,600 --> 00:34:23,600 objectives of both parties in Washington. 708 00:34:23,600 --> 00:34:28,600 Shaving half a percentage point off our GDP growth would be 709 00:34:28,600 --> 00:34:31,433 hugely harmful and would have ripple effects. 710 00:34:31,433 --> 00:34:35,567 There are jobs that we will know are specifically affected by the 711 00:34:35,567 --> 00:34:40,934 sequester in our defense industries and other areas that 712 00:34:40,934 --> 00:34:45,700 are directly linked to federal funding. 713 00:34:45,699 --> 00:34:49,600 But then, there will be the jobs that are lost or not created 714 00:34:49,600 --> 00:34:53,000 because the sequester goes into effect -- 715 00:34:53,000 --> 00:34:55,300 around businesses that close -- small businesses that close or 716 00:34:55,300 --> 00:34:59,100 cut back, support services around them whether they're 717 00:34:59,100 --> 00:35:01,433 restaurants or barbershops and the like, 718 00:35:01,433 --> 00:35:04,233 that are affected and don't hire a new worker because there are 719 00:35:04,233 --> 00:35:07,700 fewer patronizing their businesses. 720 00:35:07,700 --> 00:35:10,567 And that's the shame of all of this, 721 00:35:10,567 --> 00:35:14,367 is that there will be so many regular Americans who will be 722 00:35:14,367 --> 00:35:19,467 negatively affected by this wholly unnecessary imposition of 723 00:35:19,467 --> 00:35:20,467 the sequester. 724 00:35:20,467 --> 00:35:22,567 The Press: And the next question really fast -- 725 00:35:22,567 --> 00:35:25,633 what do you say about Mitt Romney's revelation that was 726 00:35:25,633 --> 00:35:28,933 televised last night that he did not win the state of Ohio 727 00:35:28,934 --> 00:35:32,166 because he failed to attract the black and Hispanic vote with his 728 00:35:32,166 --> 00:35:34,834 "47%" comment? 729 00:35:34,834 --> 00:35:38,200 Mr. Carney: I actually confess that I didn't see that. 730 00:35:38,200 --> 00:35:41,332 I would simply say that Mitt Romney didn't win Ohio. 731 00:35:41,333 --> 00:35:42,333 (laughter) 732 00:35:42,333 --> 00:35:46,834 Donovan. 733 00:35:46,834 --> 00:35:51,600 The Press: George Will said, "I will do many things for my country and 734 00:35:51,600 --> 00:35:52,767 "my profession. 735 00:35:52,767 --> 00:35:56,533 "I will not take seriously Mr. Carney." 736 00:35:56,533 --> 00:35:57,767 Mr. Carney: It's funny. 737 00:35:57,767 --> 00:35:58,433 I did see that. 738 00:35:58,433 --> 00:35:59,200 It's funny you raised that. 739 00:35:59,200 --> 00:36:00,332 (laughter) 740 00:36:00,333 --> 00:36:01,500 I love the structure of the sentence. 741 00:36:01,500 --> 00:36:03,367 It's very George Will-ian. 742 00:36:03,367 --> 00:36:05,467 But I have a lot of respect for George Will. 743 00:36:05,467 --> 00:36:07,667 I've been on the panel on "This Week" with him many times in my 744 00:36:07,667 --> 00:36:09,200 previous life. 745 00:36:09,200 --> 00:36:12,232 I think he is a very smart guy. 746 00:36:12,233 --> 00:36:15,133 And despite the fact that a few days before the election I think 747 00:36:15,133 --> 00:36:18,866 he predicted a Romney landslide very confidently on television 748 00:36:18,867 --> 00:36:25,133 -- 321-217 over the President -- built on a victory in Minnesota, 749 00:36:25,133 --> 00:36:27,667 which the President ended up winning by more than 7%, I will 750 00:36:27,667 --> 00:36:29,866 continue to take George Will seriously. 751 00:36:29,867 --> 00:36:31,734 (laughter) 752 00:36:31,734 --> 00:36:32,900 Thanks a lot.