English subtitles for clip: File:President Obama Takes Questions at GOP House Issues Conference.webm
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1 00:00:00,633 --> 00:00:03,563 The Presdient: Thank you, John, for the gracious introduction. 2 00:00:03,567 --> 00:00:12,837 To Mike and Eric, thank you for hosting me. Thank you to all of you for receiving me. 3 00:00:12,834 --> 00:00:17,864 It is wonderful to be here. I want to also acknowledge Mark 4 00:00:17,867 --> 00:00:20,797 Strand, president of the Congressional Institute. 5 00:00:20,800 --> 00:00:23,770 To all the family members who are here and who have to put up 6 00:00:23,767 --> 00:00:28,797 with us for an elective office each and every day, thank you, because I know that's tough. 7 00:00:28,800 --> 00:00:35,000 (applause.) 8 00:00:35,000 --> 00:00:38,500 I very much am appreciative of not only the 9 00:00:38,500 --> 00:00:43,130 tone of your introduction, John, but also the invitation that you extended to me. 10 00:00:43,133 --> 00:00:46,433 You know what they say, "Keep your friends close, but visit 11 00:00:46,433 --> 00:00:48,703 the Republican Caucus every few months." 12 00:00:48,700 --> 00:00:52,830 (laughter.) 13 00:00:52,834 --> 00:00:58,134 Part of the reason I accepted your invitation to come here was because I wanted to speak 14 00:00:58,133 --> 00:01:03,003 with all of you, and not just to all of you. So I'm looking forward to taking your questions 15 00:01:03,000 --> 00:01:08,570 and having a real conversation in a few moments. And I hope that the conversation we begin 16 00:01:08,567 --> 00:01:13,697 here doesn't end here; that we can continue our dialogue in the days ahead. 17 00:01:13,700 --> 00:01:16,230 It's important to me that we do so. 18 00:01:16,233 --> 00:01:18,733 It's important to you, I think, that we do so. 19 00:01:18,734 --> 00:01:23,164 But most importantly, it's important to the American people that we do so. 20 00:01:23,166 --> 00:01:29,896 I've said this before, but I'm a big believer not just in the value of a loyal opposition, 21 00:01:29,900 --> 00:01:36,770 but in its necessity. Having differences of opinion, having a real debate about matters 22 00:01:36,767 --> 00:01:47,197 for our country, it's absolutely essential. It's only through the process of disagreement 23 00:01:47,200 --> 00:01:53,400 and debate that bad ideas get tossed out and good ideas get refined and made better. 24 00:01:53,400 --> 00:01:59,100 And that kind of vigorous back and forth -- that imperfect but well-founded process, messy 25 00:01:59,100 --> 00:02:02,470 as it often is -- is at the heart of our democracy. 26 00:02:02,467 --> 00:02:05,037 That's what makes us the greatest nation in the world. 27 00:02:05,033 --> 00:02:08,403 So, yes, I want you to challenge my ideas, 28 00:02:08,400 --> 00:02:12,270 and I guarantee you that after reading this I may challenge a few of yours. 29 00:02:12,266 --> 00:02:15,336 (laughter.) 30 00:02:15,333 --> 00:02:17,903 I want you to stand up for your beliefs, and knowing this 31 00:02:17,900 --> 00:02:20,600 caucus, I have no doubt that you will. 32 00:02:20,600 --> 00:02:23,330 I want us to have a constructive debate. 33 00:02:23,333 --> 00:02:27,863 The only thing I don't want -- and here I am listening to the American people, 34 00:02:27,867 --> 00:02:32,737 and I think they don't want either -- is for Washington to continue 35 00:02:32,734 --> 00:02:38,834 being so Washington-like. 36 00:02:38,834 --> 00:02:50,464 I know folks, when we're in town there, spend a lot of time reading the polls and looking 37 00:02:50,467 --> 00:02:52,367 at focus groups and interpreting which party has the upper hand in November and in 2012 38 00:02:52,367 --> 00:02:57,037 and so on and so on and so on. That's their obsession. 39 00:02:57,033 --> 00:03:02,063 And I'm not a pundit. I'm just a President, so take it for what it's worth. 40 00:03:02,066 --> 00:03:08,296 But I don't believe that the American people want us to focus on our job security. 41 00:03:08,300 --> 00:03:09,970 They want us to focus on their job security. 42 00:03:09,967 --> 00:03:21,897 (applause.) I don't think they want more gridlock. 43 00:03:21,900 --> 00:03:24,870 I don't think they want more partisanship. 44 00:03:24,867 --> 00:03:27,297 I don't think they want more obstruction. 45 00:03:27,300 --> 00:03:32,970 They didn't send us to Washington to fight each other in some sort of political 46 00:03:32,967 --> 00:03:37,497 steel-cage match to see who comes out alive. 47 00:03:37,500 --> 00:03:40,100 That's not what they want. They sent us to Washington to work 48 00:03:40,100 --> 00:03:44,470 together, to get things done, and to solve the problems that they're grappling with every 49 00:03:44,467 --> 00:03:46,337 single day. 50 00:03:46,333 --> 00:03:49,203 And I think your constituents would want to 51 00:03:49,200 --> 00:03:54,870 know that despite the fact it doesn't get a lot of attention, you and I have actually 52 00:03:54,867 --> 00:03:59,367 worked together on a number of occasions. There have been times where we've acted in 53 00:03:59,367 --> 00:04:04,497 a bipartisan fashion. And I want to thank you and your Democratic colleagues for reaching 54 00:04:04,500 --> 00:04:05,670 across the aisle. 55 00:04:05,667 --> 00:04:09,567 There has been, for example, broad support for putting in the troops necessary 56 00:04:09,567 --> 00:04:17,237 in Afghanistan to deny al Qaeda safe haven, to break the Taliban's momentum, and to train 57 00:04:17,233 --> 00:04:19,103 Afghan security forces. 58 00:04:19,100 --> 00:04:24,030 There's been broad support for disrupting, dismantling, and defeating al Qaeda. 59 00:04:24,033 --> 00:04:26,763 And I know that we're all united in our admiration of our troops. 60 00:04:26,767 --> 00:04:35,867 (applause.) So it may be useful for the international audience right now 61 00:04:35,867 --> 00:04:39,997 to understand -- and certainly for our enemies to have no doubt -- whatever 62 00:04:40,000 --> 00:04:44,870 divisions and differences may exist in Washington, the United States of America stands 63 00:04:44,867 --> 00:05:06,337 as one to defend our country. (applause.) 64 00:05:06,333 --> 00:05:08,503 It's that same spirit of bipartisanship that made 65 00:05:08,500 --> 00:05:11,170 it possible for me to sign a defense contracting 66 00:05:11,166 --> 00:05:16,736 reform bill that was cosponsored by Senator McCain and members of Congress here today. 67 00:05:16,734 --> 00:05:20,504 We've stood together on behalf of our nation's veterans. Together we passed 68 00:05:20,500 --> 00:05:23,800 the largest increase in the VA's budget in more than 30 years and 69 00:05:23,800 --> 00:05:26,000 supported essential veterans' health care reforms 70 00:05:26,000 --> 00:05:31,530 to provide better access and medical care for those who serve in uniform. 71 00:05:31,533 --> 00:05:33,833 Some of you also joined Democrats in supporting 72 00:05:33,834 --> 00:05:38,864 a Credit Card Bill of Rights and in extending unemployment compensation to 73 00:05:38,867 --> 00:05:41,437 Americans who are out of work. 74 00:05:41,433 --> 00:05:44,703 Some of you joined us in stopping tobacco companies from targeting 75 00:05:44,700 --> 00:05:50,000 kids, expanding opportunities for young people to serve our country, and helping responsible 76 00:05:50,000 --> 00:05:59,500 homeowners stay in their homes. So we have a track record of working together. 77 00:05:59,500 --> 00:06:01,300 It is possible. 78 00:06:01,300 --> 00:06:08,570 But, as John, you mentioned, on some very big things, we've seen party-line 79 00:06:08,567 --> 00:06:13,197 votes that, I'm just going to be honest, were disappointing. Let's start with our efforts 80 00:06:13,200 --> 00:06:19,270 to jumpstart the economy last winter, when we were losing 700,000 jobs a month. 81 00:06:19,266 --> 00:06:22,096 Our financial system teetered on the brink of collapse and 82 00:06:22,100 --> 00:06:26,130 the threat of a second Great Depression loomed large. 83 00:06:26,133 --> 00:06:31,633 I didn't understand then, and I still don't understand, why we got opposition in 84 00:06:31,633 --> 00:06:38,163 this caucus for almost $300 billion in badly needed tax cuts for the American people, or 85 00:06:38,166 --> 00:06:43,236 COBRA coverage to help Americans who've lost jobs in this recession to keep the health 86 00:06:43,233 --> 00:06:49,103 insurance that they desperately needed, or opposition to putting Americans to work laying 87 00:06:49,100 --> 00:06:53,630 broadband and rebuilding roads and bridges and breaking ground on new construction projects. 88 00:06:53,633 --> 00:07:01,963 There was an interesting headline in CNN today: "Americans disapprove of 89 00:07:01,967 --> 00:07:06,067 stimulus, but like every policy in it." 90 00:07:06,066 --> 00:07:08,596 And there was a poll that showed that if you broke it down into 91 00:07:08,600 --> 00:07:11,470 its component parts, 80 percent approved of the tax cuts, 92 00:07:11,467 --> 00:07:13,067 80 percent approved of the infrastructure, 93 00:07:13,066 --> 00:07:17,836 80 percent approved of the assistance to the unemployed. 94 00:07:17,834 --> 00:07:27,864 Well, that's what the Recovery Act was. And let's face it, some of you have been at the 95 00:07:27,867 --> 00:07:30,997 ribbon-cuttings for some of these important projects in your communities. Now, I understand 96 00:07:31,000 --> 00:07:34,500 some of you had some philosophical differences perhaps on the just the concept 97 00:07:34,500 --> 00:07:41,670 of government spending, but, as I recall, 98 00:07:41,667 --> 00:07:47,137 opposition was declared before we had a chance to actually meet and exchange ideas. 99 00:07:47,133 --> 00:07:50,403 And I saw that as a missed opportunity. 100 00:07:50,400 --> 00:07:55,630 Now, I am happy to report this morning that we saw another sign that our economy is moving 101 00:07:55,633 --> 00:07:57,033 in the right direction. 102 00:07:57,033 --> 00:08:03,063 The latest GDP numbers show that our economy is growing by almost 6 percent -- 103 00:08:03,066 --> 00:08:08,796 that's the most since 2003. To put that in perspective, this time last year, 104 00:08:08,800 --> 00:08:11,600 we weren't seeing positive job growth; we were seeing the 105 00:08:11,600 --> 00:08:15,500 economy shrink by about 6 percent. 106 00:08:15,500 --> 00:08:19,500 So you've seen a 12 percent reversal during the course of this year. 107 00:08:19,500 --> 00:08:24,930 This turnaround is the biggest in nearly three decades -- and it didn't happen by accident. 108 00:08:24,934 --> 00:08:27,964 It happened -- as economists, conservative and liberal, 109 00:08:27,967 --> 00:08:32,497 will attest -- because of some of the steps that we took. 110 00:08:32,500 --> 00:08:39,130 And by the way, you mentioned a Web site out here, John -- if you want to look at what's 111 00:08:39,133 --> 00:08:42,933 going on, on the Recovery Act, you can look on recovery.gov -- a Web site, by the way, 112 00:08:42,934 --> 00:08:50,134 that was Eric Cantor's idea. Now, here's the point. These are serious times, 113 00:08:50,133 --> 00:08:55,103 and what's required by all of us -- Democrats and Republicans -- is to do what's right for 114 00:08:55,100 --> 00:09:01,130 our country, even if it's not always what's best for our politics. 115 00:09:01,133 --> 00:09:05,533 I know it may be heresy to say this, but there are things more important 116 00:09:05,533 --> 00:09:08,503 than good poll numbers. 117 00:09:08,500 --> 00:09:11,330 And on this no one can accuse me of not living by my principles. 118 00:09:11,333 --> 00:09:13,963 (laughter.) 119 00:09:13,967 --> 00:09:15,537 A middle class that's back on 120 00:09:15,533 --> 00:09:23,203 its feet, an economy that lifts everybody up, an America that's ascendant in the world 121 00:09:23,200 --> 00:09:28,100 -- that's more important than winning an election. Our future shouldn't be shaped by 122 00:09:28,100 --> 00:09:33,800 what's best for our politics; our politics should be shaped by what's best for our future. 123 00:09:33,800 --> 00:09:37,270 But no matter what's happened in the past, the important thing for all of us is to 124 00:09:37,266 --> 00:09:39,536 move forward together. 125 00:09:39,533 --> 00:09:43,003 We have some issues right in front of us on which I believe we should 126 00:09:43,000 --> 00:09:48,770 agree, because as successful as we've been in spurring new economic growth, everybody 127 00:09:48,767 --> 00:09:54,197 understands that job growth has been lagging. Some of that's predictable. 128 00:09:54,200 --> 00:10:00,600 Every economist will say jobs are a lagging indicator, but that's no consolation 129 00:10:00,600 --> 00:10:02,630 for the folks who are 130 00:10:02,633 --> 00:10:06,163 out there suffering right now. And since 7 million Americans have lost their jobs in 131 00:10:06,166 --> 00:10:09,566 this recession, we've got to do everything we can to accelerate it. 132 00:10:09,567 --> 00:10:15,197 So, today, in line with what I stated at the State of the Union, I've proposed a new jobs 133 00:10:15,200 --> 00:10:20,630 tax credit for small business. And here's how it would work. Employers would get a tax 134 00:10:20,633 --> 00:10:27,703 credit of up to $5,000 for every employee they add in 2010. They'd get a tax break for 135 00:10:27,700 --> 00:10:34,930 increases in wages, as well. So, if you raise wages for employees making under $100,000, 136 00:10:34,934 --> 00:10:36,904 we'd refund part of your payroll 137 00:10:36,900 --> 00:10:42,900 tax for every dollar you increase those wages faster than inflation. 138 00:10:42,900 --> 00:10:46,000 It's a simple concept. It's easy to understand. 139 00:10:46,000 --> 00:10:50,400 It would cut taxes for more than 1 million small businesses. 140 00:10:50,400 --> 00:10:53,200 So I hope you join me. Let's get this done. 141 00:10:53,200 --> 00:10:57,270 I want to eliminate the capital gains tax for small business investment, and take some 142 00:10:57,266 --> 00:11:02,166 of the bailout money the Wall Street banks have returned and use it to help community 143 00:11:02,166 --> 00:11:07,436 banks start lending to small businesses again. So join me. I am confident that we can do 144 00:11:07,433 --> 00:11:12,463 this together for the American people. And there's nothing in that proposal that runs 145 00:11:12,467 --> 00:11:18,837 contrary to the ideological predispositions of this caucus. The question is: What's going 146 00:11:18,834 --> 00:11:25,434 to keep us from getting this done? I've proposed a modest fee on the nation's 147 00:11:25,433 --> 00:11:30,803 largest banks and financial institutions to fully recover for taxpayers' money that they 148 00:11:30,800 --> 00:11:37,500 provided to the financial sector when it was teetering on the brink of collapse. 149 00:11:37,500 --> 00:11:42,600 And it's designed to discourage them from taking reckless risks in the future. 150 00:11:42,600 --> 00:11:48,430 If you listen to the American people, John, they'll tell you they want their money back. 151 00:11:48,433 --> 00:11:52,463 Let's do this together, Republicans and Democrats. 152 00:11:52,467 --> 00:11:55,067 I propose that we close tax loopholes that 153 00:11:55,066 --> 00:11:59,396 reward companies for shipping American jobs overseas, and instead give companies greater 154 00:11:59,400 --> 00:12:04,200 incentive to create jobs right here at home -- right here at home. 155 00:12:04,200 --> 00:12:09,630 Surely, that's something that we can do together, Republicans and Democrats. 156 00:12:09,633 --> 00:12:12,503 We know that we've got a major fiscal challenge 157 00:12:12,500 --> 00:12:17,500 in reining in deficits that have been growing for a decade, and threaten our future. 158 00:12:17,500 --> 00:12:21,630 That's why I've proposed a three-year freeze in discretionary spending 159 00:12:21,633 --> 00:12:24,503 other than what we need for national security. 160 00:12:24,500 --> 00:12:29,770 That's something we should do together that's consistent with a lot of the talk both 161 00:12:29,767 --> 00:12:32,667 in Democratic caucuses and Republican caucuses. 162 00:12:32,667 --> 00:12:36,897 We can't blink when it's time to actually do the job. 163 00:12:36,900 --> 00:12:40,070 At this point, we know that the budget surpluses 164 00:12:40,066 --> 00:12:46,896 of the '90s occurred in part because of the pay-as-you-go law, which said that, well, 165 00:12:46,900 --> 00:12:52,830 you should pay as you go and live within our means, just like families do every day. 166 00:12:52,834 --> 00:12:55,534 Twenty-four of you voted for that, and I appreciate it. 167 00:12:55,533 --> 00:12:58,963 And we were able to pass it in the Senate yesterday. 168 00:12:58,967 --> 00:13:01,337 But the idea of a bipartisan fiscal commission 169 00:13:01,333 --> 00:13:06,263 to confront the deficits in the long term died in the Senate the other day. 170 00:13:06,266 --> 00:13:10,966 So I'm going to establish such a commission by executive order and I hope that you 171 00:13:10,967 --> 00:13:13,237 participate, fully 172 00:13:13,233 --> 00:13:20,263 and genuinely, in that effort, because if we're going to actually deal with our deficit 173 00:13:20,266 --> 00:13:24,966 and debt, everybody here knows that we're going to have to do it together, 174 00:13:24,967 --> 00:13:27,537 Republican and Democrat. 175 00:13:27,533 --> 00:13:34,503 No single party is going to make the tough choices involved on its own. 176 00:13:34,500 --> 00:13:39,970 It's going to require all of us doing what's right for the American people. 177 00:13:39,967 --> 00:13:44,337 And as I said in the State of the Union speech, there's not just a deficit of dollars in 178 00:13:44,333 --> 00:13:46,033 Washington, there is a deficit of trust. 179 00:13:46,033 --> 00:13:48,963 So I hope you'll support my proposal to make all congressional 180 00:13:48,967 --> 00:13:53,637 earmarks public before they come to a vote. 181 00:13:53,633 --> 00:13:55,503 And let's require lobbyists who exercise such 182 00:13:55,500 --> 00:14:02,000 influence to publicly disclose all their contacts on behalf of their clients, whether they are 183 00:14:02,000 --> 00:14:08,130 contacts with my administration or contacts with Congress. Let's do the people's business 184 00:14:08,133 --> 00:14:14,233 in the bright light of day, together, Republicans and Democrats. 185 00:14:14,233 --> 00:14:20,403 I know how bitter and contentious the issue of health insurance reform has become. 186 00:14:20,400 --> 00:14:26,500 And I will eagerly look at the ideas and better solutions on the health care front. 187 00:14:26,500 --> 00:14:32,000 If anyone here truly believes our health insurance system is working well for people, I 188 00:14:32,000 --> 00:14:37,000 respect your right to say so, but I just don't agree. 189 00:14:37,000 --> 00:14:38,900 And neither would millions of Americans with preexisting 190 00:14:38,900 --> 00:14:42,870 conditions who can't get coverage today or find out that they lose their insurance just 191 00:14:42,867 --> 00:14:45,767 as they're getting seriously ill. 192 00:14:45,767 --> 00:14:48,667 That's exactly when you need insurance. 193 00:14:48,667 --> 00:14:50,997 And for too many people, they're not getting it. 194 00:14:51,000 --> 00:14:54,200 I don't think a system is working when small businesses 195 00:14:54,200 --> 00:15:01,830 are gouged and 15,000 Americans are losing coverage every single day; when premiums have 196 00:15:01,834 --> 00:15:08,634 doubled and out-of-pocket costs have exploded and they're poised to do so again. 197 00:15:08,633 --> 00:15:13,463 I mean, to be fair, the status quo is working for the insurance industry, but it's not working 198 00:15:13,467 --> 00:15:14,197 for the American people. 199 00:15:14,200 --> 00:15:20,830 It's not working for our federal budget. It needs to change. 200 00:15:20,834 --> 00:15:27,664 This is a big problem, and all of us are called on to solve it. And that's why, from the start, 201 00:15:27,667 --> 00:15:32,537 I sought out and supported ideas from Republicans. I even talked about an issue that has been 202 00:15:32,533 --> 00:15:36,703 a holy grail for a lot of you, which was tort reform, and said that I'd be willing to work 203 00:15:36,700 --> 00:15:42,130 together as part of a comprehensive package to deal with it. 204 00:15:42,133 --> 00:15:44,903 I just didn't get a lot of nibbles. 205 00:15:44,900 --> 00:15:49,730 Creating a high-risk pool for uninsured folks 206 00:15:49,734 --> 00:15:52,434 with preexisting conditions, that wasn't my idea, it was Senator McCain's. 207 00:15:52,433 --> 00:15:56,633 And I supported it, and it got incorporated into our approach. 208 00:15:56,633 --> 00:16:01,903 Allowing insurance companies to sell coverage across state lines to add choice and competition 209 00:16:01,900 --> 00:16:05,070 and bring down costs for businesses and consumers 210 00:16:05,066 --> 00:16:10,136 -- that's an idea that some of you I suspect included in this better solutions; that's 211 00:16:10,133 --> 00:16:17,203 an idea that was incorporated into our package. And I support it, provided that we do it hand 212 00:16:17,200 --> 00:16:21,000 in hand with broader reforms that protect benefits and protect patients and protect 213 00:16:21,000 --> 00:16:22,530 the American people. 214 00:16:22,533 --> 00:16:24,663 A number of you have suggested creating pools 215 00:16:24,667 --> 00:16:28,297 where self-employed and small businesses could buy insurance. 216 00:16:28,300 --> 00:16:31,100 That was a good idea. I embraced it. 217 00:16:31,100 --> 00:16:35,600 Some of you supported efforts to provide insurance to children and let kids remain 218 00:16:35,600 --> 00:16:40,530 covered on their parents' insurance until they're 25 or 26. I supported that. 219 00:16:40,533 --> 00:16:42,303 That's part of our package. 220 00:16:42,300 --> 00:16:45,600 I supported a number of other ideas, from incentivizing wellness 221 00:16:45,600 --> 00:16:48,100 to creating an affordable catastrophic insurance 222 00:16:48,100 --> 00:16:50,400 option for young people that came from Republicans 223 00:16:50,400 --> 00:16:54,470 like Mike Enzi and Olympia Snowe in the Senate, and I'm sure from some of you as well. 224 00:16:54,467 --> 00:17:00,537 So when you say I ought to be willing to accept Republican ideas on health care, let's be 225 00:17:00,533 --> 00:17:06,603 clear: I have. Bipartisanship -- not for its own sake but 226 00:17:06,600 --> 00:17:12,900 to solve problems -- that's what our constituents, the American people, need from us right now. 227 00:17:12,900 --> 00:17:17,570 All of us then have a choice to make. We have to choose whether we're going to be politicians 228 00:17:17,567 --> 00:17:22,667 first or partners for progress; whether we're going to put success at the polls ahead of 229 00:17:22,667 --> 00:17:29,537 the lasting success we can achieve together for America. Just think about it for a while. 230 00:17:29,533 --> 00:17:34,603 We don't have to put it up for a vote today. Let me close by saying this. I was not elected 231 00:17:34,600 --> 00:17:41,570 by Democrats or Republicans, but by the American people. That's especially true because the 232 00:17:41,567 --> 00:17:49,167 fastest growing group of Americans are independents. That should tell us both something. 233 00:17:49,166 --> 00:17:54,866 I'm ready and eager to work with anyone who is willing to proceed in a spirit of goodwill. 234 00:17:54,867 --> 00:18:00,537 But understand, if we can't break free from partisan gridlock, if we can't move past 235 00:18:00,533 --> 00:18:06,033 a politics of "no," if resistance supplants 236 00:18:06,033 --> 00:18:11,533 constructive debate, I still have to meet my responsibilities as President. 237 00:18:11,533 --> 00:18:16,433 I've got to act for the greater good - because that, too, is a commitment that I have made. 238 00:18:16,433 --> 00:18:20,463 And that's -- that, too, is what the American people sent me to Washington to do. 239 00:18:20,467 --> 00:18:25,467 So I am optimistic. I know many of you individually. 240 00:18:25,467 --> 00:18:32,897 And the irony, I think, of our political climate right now is that, compared to other 241 00:18:32,900 --> 00:18:34,070 countries, the differences 242 00:18:34,066 --> 00:18:43,796 between the two major parties on most issues is not as big as it's represented. 243 00:18:43,800 --> 00:18:49,030 But we've gotten caught up in the political game in a way that's just not healthy. 244 00:18:49,033 --> 00:18:52,033 It's dividing our country in ways that are preventing us from meeting the challenges 245 00:18:52,033 --> 00:18:54,963 of the 21st century. 246 00:18:54,967 --> 00:18:58,897 I'm hopeful that the conversation we have today can help reverse that. 247 00:18:58,900 --> 00:19:03,070 So thank you very much. Thank you, John. (applause.) 248 00:19:03,066 --> 00:19:11,836 Now I'd like to open it up for questions. 249 00:19:11,834 --> 00:19:16,034 Congressman Pence: The President has agreed 250 00:19:16,033 --> 00:19:17,603 to take questions and members would be encouraged to raise your hand while you 251 00:19:17,600 --> 00:19:21,030 remain in your seat. (laughter.) 252 00:19:21,033 --> 00:19:27,563 The chair will take the prerogative to make the first remarks. 253 00:19:27,567 --> 00:19:29,937 Mr. President, welcome back to the House Republican Conference. 254 00:19:29,934 --> 00:19:31,104 Mr. President: Thank you. 255 00:19:31,100 --> 00:19:31,500 Congressman Pence: [Off microphone.] We are 256 00:19:31,500 --> 00:19:40,670 pleased to have you return. (Inaudible) a year ago -- House Republicans said then we 257 00:19:40,667 --> 00:19:46,267 would make you two promises. Number one, that most of the people in this room and their 258 00:19:46,266 --> 00:19:49,796 families would pray for you and your beautiful family just about every day for the 259 00:19:49,800 --> 00:19:51,100 next four years. 260 00:19:51,100 --> 00:19:54,470 And I want to assure you we're keeping that promise. 261 00:19:54,467 --> 00:19:55,667 Mr. President: I appreciate that. 262 00:19:55,667 --> 00:19:56,467 Congressman Pence: [off microphone] Number 263 00:19:56,467 --> 00:20:04,267 two, our pledge to you, Mr. President, was that door is always open. And we hope the 264 00:20:04,266 --> 00:20:14,266 (inaudible) of our invitation that we (inaudible). Mr. President, several of 265 00:20:14,266 --> 00:20:16,096 us in this conference 266 00:20:16,100 --> 00:20:21,000 yesterday on the way into Baltimore stopped by the Salvation Army homeless facility 267 00:20:21,000 --> 00:20:23,670 here in Baltimore. 268 00:20:23,667 --> 00:20:26,967 I met a little boy, an African American boy, in the 8th grade, named David 269 00:20:26,967 --> 00:20:33,337 Carter, Jr. When he heard that I would be seeing you today his eyes lit up like I had 270 00:20:33,333 --> 00:20:40,703 never seen. And I told him that if he wrote you a letter I'd give it to you, and I have. 271 00:20:40,700 --> 00:20:48,970 But I had a conversation with little David, Jr. and David, Sr. His family has been struggling 272 00:20:48,967 --> 00:20:52,267 with the economy. [On microphone.] His dad said words to me, 273 00:20:52,266 --> 00:21:00,396 Mr. President, that I'll never forget. About my age and he said -- he said, Congressman, 274 00:21:00,400 --> 00:21:09,900 it's not like it was when we were coming up. He said, there's just no jobs. 275 00:21:09,900 --> 00:21:19,370 Now, last year about the time you met with us, unemployment was 7.5 percent in this country. 276 00:21:19,367 --> 00:21:23,997 Your administration, and your party in Congress, told us that we'd have to borrow more than 277 00:21:24,000 --> 00:21:32,970 $700 billion to pay for a so-called stimulus bill. It was a piecemeal list of projects 278 00:21:32,967 --> 00:21:39,567 and boutique tax cuts, all of which was -- we were told -- had to be passed or unemployment 279 00:21:39,567 --> 00:21:45,297 would go to 8 percent, as your administration said. Well, unemployment is 10 percent now, 280 00:21:45,300 --> 00:21:51,100 as you well know, Mr. President; here in Baltimore it's considerably higher. 281 00:21:51,100 --> 00:21:58,470 Now, Republicans offered a stimulus bill at the same time. It cost half as much as the 282 00:21:58,467 --> 00:22:02,897 Democratic proposal in Congress, and using your economic analyst models, it would have 283 00:22:02,900 --> 00:22:11,900 created twice the jobs at half the cost. It essentially was across-the-board tax relief, 284 00:22:11,900 --> 00:22:13,670 Mr. President. Now we know you've come to Baltimore today 285 00:22:13,667 --> 00:22:22,067 and you've raised this tax credit, which was last promoted by President Jimmy Carter. 286 00:22:22,066 --> 00:22:29,296 But the first question I would pose to you, very respectfully, Mr. President, is would you 287 00:22:29,300 --> 00:22:37,300 be willing to consider embracing -- in the name of little David Carter, Jr. and his dad, 288 00:22:37,300 --> 00:22:41,600 in the name of every struggling family in this country -- the kind of across-the-board 289 00:22:41,600 --> 00:22:48,200 tax relief that Republicans have advocated, that President Kennedy advocated, that 290 00:22:48,200 --> 00:22:51,930 President Reagan advocated and that has always been the means of 291 00:22:51,934 --> 00:22:56,034 stimulating broad-based economic growth? 292 00:22:56,033 --> 00:23:06,033 The President: Well, there was a lot packed into that question. 293 00:23:06,033 --> 00:23:09,433 (laughter.) First of all, let me say I already promised that I'll be 294 00:23:09,433 --> 00:23:15,633 writing back to that young man and his family, and I appreciate you passing on the letter. 295 00:23:15,633 --> 00:23:16,963 Speaker: Thank you. 296 00:23:16,967 --> 00:23:17,967 The President: But let's talk 297 00:23:17,967 --> 00:23:22,797 about just the jobs environment generally. 298 00:23:22,800 --> 00:23:23,670 You're absolutely 299 00:23:23,667 --> 00:23:40,197 right that when I was sworn in the hope was that unemployment would remain around 8 [percent], 300 00:23:40,200 --> 00:23:43,000 or in the 8 percent range. That was just based on the estimates made by both conservative 301 00:23:43,000 --> 00:23:47,500 and liberal economists, because at that point not all the data had trickled in. 302 00:23:47,500 --> 00:23:56,430 We had lost 650,000 jobs in December. I'm assuming you're not faulting my policies for 303 00:23:56,433 --> 00:24:07,563 that. We had lost, it turns out, 700,000 jobs in January, the month I was sworn in. 304 00:24:07,567 --> 00:24:08,837 I'm assuming it wasn't my 305 00:24:08,834 --> 00:24:15,734 administration's policies that accounted for that. We lost another 650,000 306 00:24:15,734 --> 00:24:21,764 jobs the subsequent month, before any of my policies had gone into effect. 307 00:24:21,767 --> 00:24:25,267 So I'm assuming that wasn't as a consequence of 308 00:24:25,266 --> 00:24:31,096 our policies; that doesn't reflect the failure of the Recovery Act. 309 00:24:31,100 --> 00:24:39,500 The point being that what ended up happening was that the job losses from this recession 310 00:24:39,500 --> 00:24:47,100 proved to be much more severe -- in the first quarter of last year going into the second 311 00:24:47,100 --> 00:24:55,500 quarter of last year -- than anybody anticipated. So I mean, I think we can score political 312 00:24:55,500 --> 00:25:02,300 points on the basis of the fact that we underestimated how severe the job 313 00:25:02,300 --> 00:25:04,470 losses were going to be. 314 00:25:04,467 --> 00:25:08,767 But those job losses took place before any stimulus, whether it 315 00:25:08,767 --> 00:25:12,767 was the ones that you guys have proposed or the ones that we proposed, 316 00:25:12,767 --> 00:25:15,067 could have ever taken into effect. 317 00:25:15,066 --> 00:25:16,596 Now, that's just the fact, Mike, and 318 00:25:16,600 --> 00:25:18,730 I don't think anybody would dispute that. 319 00:25:18,734 --> 00:25:23,004 You could not find an economist who would dispute that. 320 00:25:23,000 --> 00:25:30,530 Now, at the same time, as I mentioned, most economists -- Republican and Democrat, 321 00:25:30,533 --> 00:25:32,903 liberal and conservative -- would say that had it 322 00:25:32,900 --> 00:25:41,200 not been for the stimulus package that we passed, things would be much worse. 323 00:25:41,200 --> 00:25:54,530 Now, they didn't fill a 7 million hole in the number of people who were unemployed. 324 00:25:54,533 --> 00:25:57,803 They probably account for about 2 million, which means we still have 5 325 00:25:57,800 --> 00:25:59,670 million folks in there that we've 326 00:25:59,667 --> 00:26:08,767 still got to deal with. That's a lot of people. The package that we put together at the beginning 327 00:26:08,767 --> 00:26:13,797 of the year, the truth is, should have reflected -- and I believe reflected what 328 00:26:13,800 --> 00:26:15,600 most of you would say are common sense things. 329 00:26:15,600 --> 00:26:25,670 This notion that this was a radical package is just not true. 330 00:26:25,667 --> 00:26:31,167 A third of them were tax cuts, and they weren't -- when you say they were "boutique" 331 00:26:31,166 --> 00:26:39,766 tax cuts, Mike, 95 percent of working Americans got tax cuts, small businesses got tax cuts, 332 00:26:39,767 --> 00:26:42,537 large businesses got help in terms of their depreciation schedules. 333 00:26:42,533 --> 00:26:43,533 I mean, it was a pretty 334 00:26:43,533 --> 00:26:49,133 conventional list of tax cuts. A third of it was stabilizing state budgets. 335 00:26:49,133 --> 00:26:55,963 There is not a single person in here who, had it not been for what was in the stimulus 336 00:26:55,967 --> 00:27:01,037 package, wouldn't be going home to more teachers laid off, more firefighters laid off, more 337 00:27:01,033 --> 00:27:10,303 cops laid off. A big chunk of it was unemployment insurance and COBRA, just making sure that 338 00:27:10,300 --> 00:27:15,730 people had some floor beneath them, and, by the way, making sure that there was enough 339 00:27:15,734 --> 00:27:21,704 money in their pockets that businesses had some customers. 340 00:27:21,700 --> 00:27:28,130 You take those two things out, that accounts for the majority of the stimulus package. 341 00:27:28,133 --> 00:27:37,503 Are there people in this room who think that was a bad idea? A portion of it was dealing 342 00:27:37,500 --> 00:27:46,630 with the AMT, the alternative minimum tax -- not a proposal of mine; that's not a consequence 343 00:27:46,633 --> 00:27:53,903 of my policies that we have a tax system where we keep on putting off a potential tax hike 344 00:27:53,900 --> 00:28:00,430 that is embedded in the budget that we have to fix each year. That cost about $70 billion. 345 00:28:00,433 --> 00:28:04,703 And then the last portion of it was infrastructure which, as I said, a lot of you have gone to 346 00:28:04,700 --> 00:28:11,400 appear at ribbon-cuttings for the same projects that you voted against. 347 00:28:11,400 --> 00:28:16,370 Now, I say all this not to re-litigate the past, but it's simply to state that the 348 00:28:16,367 --> 00:28:20,067 component parts 349 00:28:20,066 --> 00:28:25,966 of the Recovery Act are consistent with what many of you say are important things 350 00:28:25,967 --> 00:28:29,197 to do -- rebuilding our infrastructure, tax cuts for families and 351 00:28:29,200 --> 00:28:32,200 businesses, and making 352 00:28:32,200 --> 00:28:37,670 sure that we were providing states and individuals some support when the 353 00:28:37,667 --> 00:28:40,337 roof was caving in. 354 00:28:40,333 --> 00:28:47,703 And the notion that I would somehow resist doing something that cost half as much but 355 00:28:47,700 --> 00:28:55,230 would produce twice as many jobs -- why would I resist that? I wouldn't. I mean, that's 356 00:28:55,233 --> 00:29:08,363 my point, is that -- I am not an ideologue. I'm not. It doesn't make sense if somebody 357 00:29:08,367 --> 00:29:15,537 could tell me you could do this cheaper and get increased results that 358 00:29:15,533 --> 00:29:17,533 I wouldn't say, great. 359 00:29:17,533 --> 00:29:21,933 The problem is, I couldn't find credible economists who would back up 360 00:29:21,934 --> 00:29:25,204 the claims that you just made. 361 00:29:25,200 --> 00:29:30,930 Now, we can -- here's what I know going forward, though. 362 00:29:30,934 --> 00:29:34,404 I mean, we're talking -- we were talking about the past. 363 00:29:34,400 --> 00:29:37,870 We can talk about this going forward. 364 00:29:37,867 --> 00:29:45,097 I have looked at every idea out there in terms of accelerating job growth to match 365 00:29:45,100 --> 00:29:50,700 the economic growth that's already taken place. The jobs credit that I'm discussing right 366 00:29:50,700 --> 00:29:57,970 now is one that a lot of people think would be the most cost-effective way for 367 00:29:57,967 --> 00:30:02,837 encouraging people to pick up their hiring. 368 00:30:02,834 --> 00:30:07,434 There may be other ideas that you guys have; 369 00:30:07,433 --> 00:30:10,433 I am happy to look at them and I'm happy to embrace them. 370 00:30:10,433 --> 00:30:13,003 I suspect I will embrace some of them. 371 00:30:13,000 --> 00:30:16,470 Some of them I've already embraced. 372 00:30:16,467 --> 00:30:19,867 But the question I think we're going to have 373 00:30:19,867 --> 00:30:26,397 to ask ourselves is, as we move forward, are we going to be examining each of these issues 374 00:30:26,400 --> 00:30:34,900 based on what's good for the country, what the evidence tells us, or are we going to 375 00:30:34,900 --> 00:30:43,630 be trying to position ourselves so that come November we're able to say, "The other party, 376 00:30:43,633 --> 00:30:46,003 it's their fault." 377 00:30:46,000 --> 00:30:48,770 If we take the latter approach then we're probably not going to get much 378 00:30:48,767 --> 00:30:52,437 agreement. If we take the former, I suspect there's going to be a lot of overlap. 379 00:30:52,433 --> 00:30:53,233 All right? 380 00:30:53,233 --> 00:30:57,333 Speaker: Mr. President, will you consider supporting across-the-board tax 381 00:30:57,333 --> 00:31:00,803 relief, as President Kennedy did? 382 00:31:00,800 --> 00:31:02,300 The President: Here's what I'm going to do, 383 00:31:02,300 --> 00:31:06,530 Mike. What I'm going to do is I'm going to take a look at what you guys are proposing. 384 00:31:06,533 --> 00:31:16,763 And the reason I say this, before you say, "Okay," I think is important to know -- what 385 00:31:16,767 --> 00:31:22,767 you may consider across-the-board tax cuts could be, for example, greater 386 00:31:22,767 --> 00:31:31,267 tax cuts for people who are making a billion dollars. 387 00:31:31,266 --> 00:31:35,866 I may not agree to a tax cut for Warren Buffet. 388 00:31:35,867 --> 00:31:43,937 You may be calling for an across-the-board tax cut for the banking industry right now. 389 00:31:43,934 --> 00:31:49,864 I may not agree to that. So I think that we've got to look at what 390 00:31:49,867 --> 00:31:55,337 specific proposals you're putting forward, and -- this is the last point I'll make -- 391 00:31:55,333 --> 00:31:59,463 if you're calling for just across-the-board tax cuts, and then on the other hand saying 392 00:31:59,467 --> 00:32:05,367 that we're somehow going to balance our budget, I'm going to want to take a look at your math 393 00:32:05,367 --> 00:32:14,097 and see how that works, because the issue of deficit and debt is another area where 394 00:32:14,100 --> 00:32:18,670 there has been a tendency for some inconsistent statements. 395 00:32:18,667 --> 00:32:21,867 How's that? All right? 396 00:32:21,867 --> 00:32:28,967 Congressman Ryan: Thank you. Mr. President, first off, thanks 397 00:32:28,967 --> 00:32:31,897 for agreeing to accept our invitation here. 398 00:32:31,900 --> 00:32:34,570 It is a real pleasure and honor to have you with us here today. 399 00:32:34,567 --> 00:32:37,637 The President: Good to see you. Is this your crew right here, by the way? 400 00:32:37,633 --> 00:32:41,433 Congressman Ryan: It is. This is my daughter Liza, my son Charlie and Sam, and 401 00:32:41,433 --> 00:32:42,033 this is my wife Janna. 402 00:32:42,033 --> 00:32:42,763 The President: Hey, guys. 403 00:32:42,767 --> 00:32:43,737 Congressman Ryan: Say hi, everybody. 404 00:32:43,734 --> 00:32:50,304 (laughter.) I serve as a ranking member of the budget 405 00:32:50,300 --> 00:32:52,630 committee, so I'm going to talk a little budget if you don't mind. 406 00:32:52,633 --> 00:32:54,303 The spending bills that you've signed into 407 00:32:54,300 --> 00:32:59,270 law, the domestic discretionary spending has been increased by 84 percent. 408 00:32:59,266 --> 00:33:04,096 You now want to freeze spending at this elevated beginning next year. 409 00:33:04,100 --> 00:33:05,600 This means that total 410 00:33:05,600 --> 00:33:11,270 spending in your budget would grow at 3/100ths of 1 percent less than otherwise. 411 00:33:11,266 --> 00:33:18,036 I would simply submit that we could do more and start now. 412 00:33:18,033 --> 00:33:19,463 You've also said that you want to take a scalpel to the budget and go through it line by line. 413 00:33:19,467 --> 00:33:21,237 We want to give you that scalpel. 414 00:33:21,233 --> 00:33:23,533 I have a proposal with my home state senator, Russ 415 00:33:23,533 --> 00:33:28,463 Feingold, bipartisan proposal, to create a constitutional version of the line-item veto. 416 00:33:28,467 --> 00:33:36,237 (applause.) 417 00:33:36,233 --> 00:33:38,563 Problem is, we can't even get a vote on the proposal. 418 00:33:38,567 --> 00:33:42,397 So my question is, why not start freezing spending now, and would you support a line-item 419 00:33:42,400 --> 00:33:46,930 veto in helping us get a vote on it in the House? 420 00:33:46,934 --> 00:33:49,934 The President: Let me respond to the two specific questions, 421 00:33:49,934 --> 00:33:53,734 but I want to just push back a little bit 422 00:33:53,734 --> 00:33:57,304 on the underlying premise about us increasing spending by 84 percent. 423 00:33:57,300 --> 00:34:04,130 Now, look, I talked to Peter Orszag right 424 00:34:04,133 --> 00:34:10,003 before I came here, because I suspected I'd be hearing this -- I'd be hearing this argument. 425 00:34:10,000 --> 00:34:15,100 The fact of the matter is, is that most of the increases in this year's budget, this 426 00:34:15,100 --> 00:34:22,000 past year's budget, were not as a consequence of policies that we initiated but instead 427 00:34:22,000 --> 00:34:29,200 were built in as a consequence of the automatic stabilizers that kick in because of 428 00:34:29,200 --> 00:34:31,670 this enormous recession. 429 00:34:31,667 --> 00:34:35,337 So the increase in the budget for this past year was actually 430 00:34:35,333 --> 00:34:43,063 predicted before I was even sworn into office and had initiated any policies. 431 00:34:43,066 --> 00:34:47,366 Whoever was in there, Paul -- and I don't think you'll dispute that -- whoever was in 432 00:34:47,367 --> 00:34:53,297 there would have seen those same increases because of, on the one hand, huge drops in 433 00:34:53,300 --> 00:34:58,130 revenue, but at the same time people were hurting and needed help. 434 00:34:58,133 --> 00:35:00,763 And a lot of these things happened automatically. 435 00:35:00,767 --> 00:35:08,567 Now, the reason that I'm not proposing the 436 00:35:08,567 --> 00:35:16,697 discretionary freeze take into effect this year -- we prepared a budget for 2010, it's 437 00:35:16,700 --> 00:35:24,070 now going forward -- is, again, I am just listening to the consensus among people who 438 00:35:24,066 --> 00:35:33,996 know the economy best. And what they will say is that if you either increase taxes or 439 00:35:34,000 --> 00:35:41,370 significantly lowered spending when the economy remains somewhat fragile, that that 440 00:35:41,367 --> 00:35:48,297 would have a destimulative effect and potentially you'd see a lot of folks losing business, 441 00:35:48,300 --> 00:35:51,200 more folks potentially losing jobs. 442 00:35:51,200 --> 00:35:56,730 That would be a mistake when the economy has not fully taken off. 443 00:35:56,734 --> 00:36:02,434 That's why I've proposed to do it for the next fiscal year. So that's point number two. 444 00:36:02,433 --> 00:36:07,163 With respect to the line-item veto, I actually 445 00:36:07,166 --> 00:36:12,336 -- I think there's not a President out there that wouldn't love to have it. 446 00:36:12,333 --> 00:36:15,833 And I think that this is an area where we can have a serious conversation. 447 00:36:15,834 --> 00:36:20,604 I know it is a bipartisan proposal by you and Russ Feingold. 448 00:36:20,600 --> 00:36:27,370 I don't like being held up with big bills that have stuff in 449 00:36:27,367 --> 00:36:32,337 them that are wasteful but I've got to sign because it's a defense authorization bill 450 00:36:32,333 --> 00:36:37,863 and I've got to make sure that our troops are getting the funding that they need. 451 00:36:37,867 --> 00:36:42,737 I will tell you, I would love for Congress itself to show discipline on both 452 00:36:42,734 --> 00:36:45,504 sides of the aisle. 453 00:36:45,500 --> 00:36:51,570 I think one thing that you have to acknowledge, Paul, because you study this 454 00:36:51,567 --> 00:36:55,167 stuff and take it pretty seriously, that the earmarks problem is not unique to one 455 00:36:55,166 --> 00:36:57,336 party and you end up getting a lot of 456 00:36:57,333 --> 00:37:01,463 pushback when you start going after specific projects of 457 00:37:01,467 --> 00:37:08,637 any one of you in your districts, because wasteful spending is usually 458 00:37:08,633 --> 00:37:11,463 spent somehow outside of your district. 459 00:37:11,467 --> 00:37:13,467 Have you noticed that? The spending in your district tends 460 00:37:13,467 --> 00:37:20,567 to seem pretty sensible. So I would love to see more restraint within 461 00:37:20,567 --> 00:37:24,537 Congress. I'd like to work on the earmarks reforms that I mentioned in terms of putting 462 00:37:24,533 --> 00:37:28,633 earmarks online, because I think sunshine is the best disinfectant. 463 00:37:28,633 --> 00:37:32,663 But I am willing to have a serious conversation on the line-item veto issue. 464 00:37:32,667 --> 00:37:35,937 Congressman Ryan: I'd like to walk you through that, because 465 00:37:35,934 --> 00:37:37,004 we have a version we think is constitutional. 466 00:37:37,000 --> 00:37:41,000 The President: Let me take a look at it. 467 00:37:41,000 --> 00:37:41,330 Congressman Ryan: I would simply say that automatic stabilizer 468 00:37:41,333 --> 00:37:43,503 spending is mandatory spending. 469 00:37:43,500 --> 00:37:45,270 The discretionary spending, the bills 470 00:37:45,266 --> 00:37:51,366 that Congress signs that you sign into law, that has increased 84 percent. 471 00:37:51,367 --> 00:37:57,697 The President: We'll have a longer debate on the budget numbers, all right? 472 00:37:57,700 --> 00:38:03,600 Congressman Pence: Shelley Moore Capito, West Virginia. 473 00:38:03,600 --> 00:38:06,700 Congresswoman Mato: Thank you, Mr. President, for joining us here today. 474 00:38:06,700 --> 00:38:08,500 As you said in the State of the Union 475 00:38:08,500 --> 00:38:11,930 address on Wednesday, jobs and the economy are number one. 476 00:38:11,934 --> 00:38:15,664 And I think everyone in this room, certainly I, agree with you on that. 477 00:38:15,667 --> 00:38:17,237 I represent the state of West Virginia. 478 00:38:17,233 --> 00:38:18,463 We're resource-rich. 479 00:38:18,467 --> 00:38:20,897 We have a lot of coal and a lot of natural gas. 480 00:38:20,900 --> 00:38:24,170 But our -- my miners and the folks who are working and 481 00:38:24,166 --> 00:38:26,796 those who are unemployed are very concerned about some of 482 00:38:26,800 --> 00:38:30,800 your policies in these areas: cap and trade, an aggressive 483 00:38:30,800 --> 00:38:34,970 EPA, and the looming prospect of higher taxes. 484 00:38:34,967 --> 00:38:37,937 In our minds, these are job-killing policies. 485 00:38:37,934 --> 00:38:41,704 So I'm asking you if you would be willing 486 00:38:41,700 --> 00:38:46,800 to re-look at some of these policies, with a high unemployment and the unsure 487 00:38:46,800 --> 00:38:50,130 economy that we have now, to assure West Virginians that you're listening. 488 00:38:50,133 --> 00:38:52,863 The President: Look, I listen all the time, including to 489 00:38:52,867 --> 00:39:01,097 your governor, who's somebody who I enjoyed working with a lot before the campaign and 490 00:39:01,100 --> 00:39:06,230 now that I'm President. And I know that West Virginia struggles with unemployment, and 491 00:39:06,233 --> 00:39:14,163 I know how important coal is to West Virginia and a lot of the natural resources there. 492 00:39:14,166 --> 00:39:19,836 That's part of the reason why I've said that we need a comprehensive energy policy that 493 00:39:19,834 --> 00:39:25,704 sets us up for a long-term future. For example, nobody has been a bigger promoter 494 00:39:25,700 --> 00:39:32,600 of clean coal technology than I am. Testament to that, I ended up being in a whole bunch 495 00:39:32,600 --> 00:39:38,770 of advertisements that you guys saw all the time about investing in ways for us to burn 496 00:39:38,767 --> 00:39:47,237 coal more cleanly. I've said that I'm a promoter of nuclear energy, 497 00:39:47,233 --> 00:39:53,003 something that I think over the last three decades has been subject to a lot of 498 00:39:53,000 --> 00:39:56,130 partisan wrangling and ideological wrangling. 499 00:39:56,133 --> 00:39:59,503 I don't think it makes sense. I think that that has 500 00:39:59,500 --> 00:40:04,100 to be part of our energy mix. I've said that I am supportive -- and I said this two nights 501 00:40:04,100 --> 00:40:08,400 ago at the State of the Union -- that I am in favor of increased production. 502 00:40:08,400 --> 00:40:17,030 So if you look at the ideas that this caucus has, again with respect to energy, I'm for 503 00:40:17,033 --> 00:40:24,263 a lot of what you said you are for. The one thing that I've also said, though, 504 00:40:24,266 --> 00:40:28,666 and here we have a serious disagreement and my hope is we can work through these 505 00:40:28,667 --> 00:40:31,537 disagreements -- there's going to be an effort 506 00:40:31,533 --> 00:40:35,963 on the Senate side to do so on a bipartisan basis -- is 507 00:40:35,967 --> 00:40:43,267 that we have to plan for the future. And the future is that clean energy -- cleaner 508 00:40:43,266 --> 00:40:52,536 forms of energy are going to be increasingly important, because even if folks are still 509 00:40:52,533 --> 00:40:56,763 skeptical in some cases about climate change in our politics 510 00:40:56,767 --> 00:41:01,067 and in Congress, the world is not skeptical about it. 511 00:41:01,066 --> 00:41:04,536 If we're going to be after some of these big markets, they're 512 00:41:04,533 --> 00:41:08,063 going to be looking to see, is the United States the one that's 513 00:41:08,066 --> 00:41:09,336 developing clean coal technology? 514 00:41:09,333 --> 00:41:16,763 Is the United States developing our natural gas resources in the most effective way? 515 00:41:16,767 --> 00:41:22,637 Is the United States the one that is going to lead in electric cars? 516 00:41:22,633 --> 00:41:23,733 Because if we're not 517 00:41:23,734 --> 00:41:26,104 leading, those other countries are going to be leading. 518 00:41:26,100 --> 00:41:33,600 So what I want to do is work with West Virginia to figure out how we can seize that future. 519 00:41:33,600 --> 00:41:37,100 But to do that, that means there's going to have to be some transition. 520 00:41:37,100 --> 00:41:45,430 We can't operate the coal industry in the United States as if we're still in the 521 00:41:45,433 --> 00:41:48,163 1920s or the 1930s or the 1950s. 522 00:41:48,166 --> 00:41:54,636 We've got to be thinking what does that industry look like in the next hundred years. 523 00:41:54,633 --> 00:41:55,703 And it's going to be different. 524 00:41:55,700 --> 00:41:57,800 And that means there's going to be some transition. 525 00:41:57,800 --> 00:42:05,430 And that's where I think a well-thought-through policy of incentivizing the 526 00:42:05,433 --> 00:42:08,703 new while recognizing 527 00:42:08,700 --> 00:42:14,230 that there's going to be a transition process -- and we're not just suddenly putting the 528 00:42:14,233 --> 00:42:18,833 old out of business right away -- that has to be something that both Republicans and 529 00:42:18,834 --> 00:42:22,364 Democrats should be able to embrace. 530 00:42:22,367 --> 00:42:30,997 Congressman Pence: Jason Chaffetz, Utah. 531 00:42:31,000 --> 00:42:33,470 Congressman Chaffetz: Thank you, Mr. President. It's truly an honor. 532 00:42:33,467 --> 00:42:35,167 The President: Great to be here. Congressman Chaffetz 533 00:42:35,166 --> 00:42:40,496 And I appreciate you being here. I'm one of 22 House freshmen. We didn't create 534 00:42:40,500 --> 00:42:49,200 this mess, but we are here to help clean it up. You talked a lot about this deficit of trust. 535 00:42:49,200 --> 00:42:52,400 There's some things that have happened that I would appreciate your perspective on, 536 00:42:52,400 --> 00:42:57,730 because I can look you in the eye and tell you we have not been obstructionists. 537 00:42:57,734 --> 00:43:01,564 Democrats have the House and Senate and the presidency. And when you stood up before the 538 00:43:01,567 --> 00:43:06,037 American people multiple times and said you would broadcast the health care debates 539 00:43:06,033 --> 00:43:08,533 on C-SPAN, you didn't. 540 00:43:08,533 --> 00:43:12,033 And I was disappointed, and I think a lot of Americans were disappointed. 541 00:43:12,033 --> 00:43:15,033 You said you weren't going to allow lobbyists in the senior-most positions 542 00:43:15,033 --> 00:43:16,333 within your administration, 543 00:43:16,333 --> 00:43:22,103 and yet you did. I applauded you when you said it -- and disappointed when you didn't. 544 00:43:22,100 --> 00:43:26,000 You said you'd go line by line through the health care debate -- or through the health 545 00:43:26,000 --> 00:43:31,070 care bill. And there were six of us, including Dr. Phil Roe, who sent you a letter and said, 546 00:43:31,066 --> 00:43:34,736 "We would like to take you up on the offer; we'd like to come." We never heard a letter, 547 00:43:34,734 --> 00:43:38,834 we never got a call. We were never involved in any of those discussions. 548 00:43:38,834 --> 00:43:43,334 And when you said in the House of Representatives that you were going to tackle earmarks -- 549 00:43:43,333 --> 00:43:46,733 in fact, you didn't want to have any earmarks in any of your bills -- I jumped up out of 550 00:43:46,734 --> 00:43:51,464 my seat and applauded you. But it didn't happen. 551 00:43:51,467 --> 00:43:55,067 More importantly, I want to talk about moving forward, but if we could address -- 552 00:43:55,066 --> 00:43:58,066 The President: Well, how about -- Congressman Chaffetz: 553 00:43:58,066 --> 00:43:59,596 -- I would certainly appreciate it. 554 00:43:59,600 --> 00:44:02,470 The President: That was a long list, so -- (laughter) -- let me respond. 555 00:44:02,467 --> 00:44:12,637 Look, the truth of the matter is that if you look at the health care process -- just over 556 00:44:12,633 --> 00:44:19,063 the course of the year -- overwhelmingly the majority of it actually was on C-SPAN, 557 00:44:19,066 --> 00:44:20,096 because it was taking place 558 00:44:20,100 --> 00:44:24,130 in congressional hearings in which you guys were participating. I mean, 559 00:44:24,133 --> 00:44:33,203 how many committees were there that helped to shape this bill? Countless hearings took place. 560 00:44:33,200 --> 00:44:37,600 Now, I kicked it off, by the way, with a meeting 561 00:44:37,600 --> 00:44:45,500 with many of you, including your key leadership. What is true, there's no doubt about it, is 562 00:44:45,500 --> 00:44:54,700 that once it got through the committee process and there were now a series of meetings taking 563 00:44:54,700 --> 00:44:58,930 place all over the Capitol trying to figure out how to get the thing together -- that 564 00:44:58,934 --> 00:45:04,204 was a messy process. And I take responsibility for not having structured it in a way where 565 00:45:04,200 --> 00:45:14,230 it was all taking place in one place that could be filmed. How to do that logistically 566 00:45:14,233 --> 00:45:20,503 would not have been as easy as it sounds, because you're shuttling back and forth between 567 00:45:20,500 --> 00:45:26,230 the House, the Senate, different offices, et cetera, different legislators. 568 00:45:26,233 --> 00:45:28,703 But I think it's a legitimate criticism. 569 00:45:28,700 --> 00:45:31,530 So on that one, I take responsibility. 570 00:45:31,533 --> 00:45:39,163 With respect to earmarks, we didn't have earmarks in the Recovery Act. 571 00:45:39,166 --> 00:45:44,066 We didn't get a lot of credit for it, but there were no earmarks in that. 572 00:45:44,066 --> 00:45:50,196 I was confronted at the beginning 573 00:45:50,200 --> 00:45:53,370 of my term with an omnibus package that did have a lot of earmarks from Republicans and 574 00:45:53,367 --> 00:45:58,137 Democrats, and a lot of people in this chamber. And the question was 575 00:45:58,133 --> 00:45:59,003 whether I was going to 576 00:45:59,000 --> 00:46:02,430 have a big budget fight, at a time when I was still trying to figure out whether or 577 00:46:02,433 --> 00:46:09,033 not the financial system was melting down and we had to make a whole bunch of emergency 578 00:46:09,033 --> 00:46:16,263 decisions about the economy. So what I said was let's keep them to a minimum, but I couldn't 579 00:46:16,266 --> 00:46:18,736 excise them all. Now, the challenge I guess I would have for 580 00:46:18,734 --> 00:46:32,604 you as a freshman, is what are you doing inside your caucus to make sure that I'm not the 581 00:46:32,600 --> 00:46:37,600 only guy who is responsible for this stuff, so that we're working together, because this 582 00:46:37,600 --> 00:46:45,470 is going to be a process? When we talk about earmarks, I think all of 583 00:46:45,467 --> 00:46:49,667 us are willing to acknowledge that some of them are perfectly defensible, good projects; 584 00:46:49,667 --> 00:46:50,197 it's just they haven't 585 00:46:50,200 --> 00:46:53,300 gone through the regular appropriations process in the full light of day. 586 00:46:53,300 --> 00:46:58,330 So one place to start is to make sure that they are at least transparent, that everybody 587 00:46:58,333 --> 00:47:06,533 knows what's there before we move forward. In terms of lobbyists, I can stand 588 00:47:06,533 --> 00:47:08,733 here unequivocally 589 00:47:08,734 --> 00:47:14,734 and say that there has not been an administration who was tougher on making 590 00:47:14,734 --> 00:47:21,264 sure that lobbyists 591 00:47:21,266 --> 00:47:24,096 weren't participating in the administration than any administration that's 592 00:47:24,100 --> 00:47:24,370 come before us. 593 00:47:24,367 --> 00:47:26,697 Now, what we did was, if there were lobbyists 594 00:47:26,700 --> 00:47:31,270 who were on boards and commissions that were carryovers and their term hadn't 595 00:47:31,266 --> 00:47:32,896 been completed, 596 00:47:32,900 --> 00:47:36,370 we didn't kick them off. We simply said that moving forward any time a new slot opens, 597 00:47:36,367 --> 00:47:40,967 they're being replaced. So we've actually been very consistent in 598 00:47:40,967 --> 00:47:49,697 making sure that we are eliminating the impact of lobbyists, day in, day 599 00:47:49,700 --> 00:47:50,970 out, on how this 600 00:47:50,967 --> 00:47:55,967 administration operates. There have been a handful of waivers where somebody is highly 601 00:47:55,967 --> 00:48:03,537 skilled -- for example, a doctor who ran Tobacco-Free Kids technically is a 602 00:48:03,533 --> 00:48:05,063 registered lobbyist; 603 00:48:05,066 --> 00:48:09,466 on the other end, has more experience than anybody in figuring out how kids don't get 604 00:48:09,467 --> 00:48:12,797 hooked on cigarettes. So there have been a couple of instances like 605 00:48:12,800 --> 00:48:20,900 that, but generally we've been very consistent on that front. 606 00:48:20,900 --> 00:48:31,300 Congressman Pence: Marsha Blackburn, Tennessee. 607 00:48:31,300 --> 00:48:31,930 Congressman Blackburn: Thank you, Mr. President, and thank you for 608 00:48:31,934 --> 00:48:36,104 acknowledging that we have ideas on health care because, indeed, we do have ideas, we 609 00:48:36,100 --> 00:48:42,130 have plans, we have over 50 bills, we have lots of amendments that 610 00:48:42,133 --> 00:48:43,363 would bring health 611 00:48:43,367 --> 00:48:48,337 care ideas to the forefront. We would -- we've got plans to lower cost, to change purchasing 612 00:48:48,333 --> 00:48:53,833 models, address medical liability, insurance accountability, chronic and 613 00:48:53,834 --> 00:48:55,604 preexisting conditions, 614 00:48:55,600 --> 00:49:04,030 and access to affordable care for those with those conditions, insurance portability, expanded 615 00:49:04,033 --> 00:49:13,563 access -- but not doing it with creating more government, more bureaucracy, and more cost 616 00:49:13,567 --> 00:49:18,937 for the American taxpayer. And we look forward to sharing those ideas 617 00:49:18,934 --> 00:49:25,804 with you. We want to work with you on health reform and making certain that we do it in 618 00:49:25,800 --> 00:49:31,270 an affordable, cost-effective way that is going to reduce bureaucracy, reduce government 619 00:49:31,266 --> 00:49:38,696 interference, and reduce costs to individuals and to taxpayers. And if those good ideas 620 00:49:38,700 --> 00:49:43,470 aren't making it to you, maybe it's the House Democrat leadership that is an impediment 621 00:49:43,467 --> 00:49:44,537 instead of a conduit. But we're concerned also that there are some 622 00:49:44,533 --> 00:49:47,363 lessons learned from public option health care plans that maybe are not being heeded. 623 00:49:47,367 --> 00:50:03,667 And certainly in my state of Tennessee, we were the test case for public option health 624 00:50:03,667 --> 00:50:11,967 care in 1994, and our Democrat government has even cautioned that maybe our experiences 625 00:50:11,967 --> 00:50:18,067 there would provide some lessons learned that should be heeded, and would provide guidance 626 00:50:18,066 --> 00:50:25,696 for us to go forward. And as you said, what we should be doing is tossing old ideas out, 627 00:50:25,700 --> 00:50:32,900 bad ideas out, and moving forward in refining good ideas. And certainly we would 628 00:50:32,900 --> 00:50:34,330 welcome that opportunity. 629 00:50:34,333 --> 00:50:38,663 So my question to you is, when will we look 630 00:50:38,667 --> 00:50:45,897 forward to starting anew and sitting down with you to put all of these ideas on the 631 00:50:45,900 --> 00:50:52,500 table, to look at these lessons learned, to benefit from that experience, and to produce 632 00:50:52,500 --> 00:51:00,970 a product that is going to reduce government interference, reduce cost, and be fair to 633 00:51:00,967 --> 00:51:10,667 the American taxpayer? (applause.) 634 00:51:10,667 --> 00:51:12,797 The President: Actually, I've gotten many of your ideas. 635 00:51:12,800 --> 00:51:17,730 I've taken a look at them, even before I was handed this. 636 00:51:17,734 --> 00:51:25,034 Some of the ideas we have embraced in our package. 637 00:51:25,033 --> 00:51:27,833 Some of them are embraced with caveats. 638 00:51:27,834 --> 00:51:30,064 So let me give you an example. 639 00:51:30,066 --> 00:51:34,866 I think one of the proposals that has been focused on by the Republicans as a way to 640 00:51:34,867 --> 00:51:36,967 reduce costs is allowing 641 00:51:36,967 --> 00:51:42,937 insurance companies to sell across state lines. We actually include 642 00:51:42,934 --> 00:51:49,204 that as part of our approach. But the caveat is, we've got to do so with some 643 00:51:49,200 --> 00:51:50,330 minimum standards, 644 00:51:50,333 --> 00:51:57,033 because otherwise what happens is that you could have insurance companies circumvent 645 00:51:57,033 --> 00:52:05,633 a whole bunch of state regulations about basic benefits or what have you, 646 00:52:05,633 --> 00:52:07,033 making sure that 647 00:52:07,033 --> 00:52:15,763 a woman is able to get mammograms as part of preventive care, for example. Part of what 648 00:52:15,767 --> 00:52:21,697 could happen is insurance companies could go into states and cherry-pick and just get 649 00:52:21,700 --> 00:52:28,530 those who are healthiest and leave behind those who are least healthy, which would raise 650 00:52:28,533 --> 00:52:34,903 everybody's premiums who weren't healthy, right? 651 00:52:34,900 --> 00:52:37,500 So it's not that many of these ideas aren't workable, but 652 00:52:37,500 --> 00:52:41,830 we have to refine them to make sure that they don't just end up worsening the situation 653 00:52:41,834 --> 00:52:45,804 for folks rather than making it better. 654 00:52:45,800 --> 00:52:50,430 Now, what I said at the State of the Union 655 00:52:50,433 --> 00:52:57,433 is what I still believe: If you can show me -- and if I get confirmation from health 656 00:52:57,433 --> 00:53:05,433 care experts, people who know the system and how it works, including doctors and nurses 657 00:53:05,433 --> 00:53:12,503 -- ways of reducing people's premiums; covering those who do not have insurance; making it 658 00:53:12,500 --> 00:53:21,900 more affordable for small businesses; having insurance reforms that ensure people have 659 00:53:21,900 --> 00:53:25,530 insurance even when they've got preexisting conditions, that their coverage is not dropped 660 00:53:25,533 --> 00:53:31,763 just because they're sick, that young people right out of college or as they're entering 661 00:53:31,767 --> 00:53:37,097 in the workforce can still get health insurance -- if those component parts are things that 662 00:53:37,100 --> 00:53:45,570 you care about and want to do, I'm game. And I've got -- and I've got a lot of these ideas. 663 00:53:45,567 --> 00:53:51,237 The last thing I will say, though -- let me say this about health care and the health 664 00:53:51,233 --> 00:53:58,263 care debate, because I think it also bears on a whole lot of other issues. If you look 665 00:53:58,266 --> 00:54:06,566 at the package that we've presented -- and there's some stray cats and dogs that got 666 00:54:06,567 --> 00:54:10,197 in there that we were eliminating, we were in the process of eliminating. 667 00:54:10,200 --> 00:54:14,430 For example, 668 00:54:14,433 --> 00:54:26,203 we said from the start that it was going to be important for us to be consistent in saying 669 00:54:26,200 --> 00:54:31,930 to people if you can have your -- if you want to keep the health insurance you got, you 670 00:54:31,934 --> 00:54:36,234 can keep it, that you're not going to have anybody getting in between you and your doctor 671 00:54:36,233 --> 00:54:40,933 in your decision making. And I think that some of the provisions that got 672 00:54:40,934 --> 00:54:42,804 snuck in might 673 00:54:42,800 --> 00:54:47,500 have violated that pledge. And so we were in the process of scrubbing 674 00:54:47,500 --> 00:54:54,100 this and making sure that it's tight. But at its core, if you look at the basic proposal 675 00:54:54,100 --> 00:55:01,800 that we've put forward: it has an exchange so that businesses and the self-employed can 676 00:55:01,800 --> 00:55:08,000 buy into a pool and can get bargaining power the same way big companies do; the insurance 677 00:55:08,000 --> 00:55:14,030 reforms that I've already discussed, making sure that there's choice and competition 678 00:55:14,033 --> 00:55:18,203 for those who don't have health insurance. 679 00:55:18,200 --> 00:55:23,170 The component parts of this thing are pretty similar to what 680 00:55:23,166 --> 00:55:28,996 Howard Baker, Bob Dole, and Tom Daschle proposed at the 681 00:55:29,000 --> 00:55:31,830 beginning of this debate last year. 682 00:55:31,834 --> 00:55:36,734 Now, you may not agree with Bob Dole and Howard Baker, and, 683 00:55:36,734 --> 00:55:40,304 certainly you don't agree with Tom Daschle on much, 684 00:55:40,300 --> 00:55:43,600 but that's not a radical bunch. 685 00:55:43,600 --> 00:55:47,730 But if you were to listen to the debate and, frankly, 686 00:55:47,734 --> 00:55:50,664 how some of you went after this bill, 687 00:55:50,667 --> 00:55:56,997 you'd think that this thing was some Bolshevik plot. 688 00:55:57,000 --> 00:56:00,070 No, I mean, that's how you guys - (applause) -- that's how you 689 00:56:00,066 --> 00:56:01,536 guys presented it. 690 00:56:01,533 --> 00:56:05,903 And so I'm thinking to myself, well, 691 00:56:05,900 --> 00:56:15,370 how is it that a plan that is pretty centrist -- no, look, 692 00:56:15,367 --> 00:56:18,537 I mean, I'm just saying, I know you guys disagree, 693 00:56:18,533 --> 00:56:24,363 but if you look at the facts of this bill, 694 00:56:24,367 --> 00:56:29,397 most independent observers would say this is actually what many 695 00:56:29,400 --> 00:56:34,030 Republicans -- is similar to what many Republicans proposed 696 00:56:34,033 --> 00:56:39,303 to Bill Clinton when he was doing his debate on health care. 697 00:56:39,300 --> 00:56:44,930 So all I'm saying is, we've got to close the gap a little bit 698 00:56:44,934 --> 00:56:49,364 between the rhetoric and the reality. 699 00:56:49,367 --> 00:56:51,997 I'm not suggesting that we're going to agree on everything, 700 00:56:52,000 --> 00:56:54,830 whether it's on health care or energy or what have you, 701 00:56:54,834 --> 00:56:59,904 but if the way these issues are being presented by the 702 00:56:59,900 --> 00:57:07,900 Republicans is that this is some wild-eyed plot to impose huge 703 00:57:07,900 --> 00:57:10,870 government in every aspect of our lives, 704 00:57:10,867 --> 00:57:13,297 what happens is you guys then don't have a lot of room to 705 00:57:13,300 --> 00:57:15,630 negotiate with me. 706 00:57:15,633 --> 00:57:18,663 I mean, the fact of the matter is, is that many of you, 707 00:57:18,667 --> 00:57:22,337 if you voted with the administration on something, 708 00:57:22,333 --> 00:57:27,733 are politically vulnerable in your own base, 709 00:57:27,734 --> 00:57:30,604 in your own party. 710 00:57:30,600 --> 00:57:33,730 You've given yourselves very little room to work in a 711 00:57:33,734 --> 00:57:37,234 bipartisan fashion because what you've been telling your 712 00:57:37,233 --> 00:57:42,163 constituents is, this guy is doing all kinds of crazy stuff 713 00:57:42,166 --> 00:57:44,636 that's going to destroy America. 714 00:57:44,633 --> 00:57:48,633 And I would just say that we have to think about tone. 715 00:57:48,633 --> 00:57:52,233 It's not just on your side, by the way -- it's on our side, 716 00:57:52,233 --> 00:57:53,163 as well. 717 00:57:53,166 --> 00:57:56,096 This is part of what's happened in our politics, 718 00:57:56,100 --> 00:57:59,030 where we demonize the other side so much that when it comes to 719 00:57:59,033 --> 00:58:04,403 actually getting things done, it becomes tough to do. 720 00:58:04,400 --> 00:58:06,670 Mike. 721 00:58:06,667 --> 00:58:08,467 Congressman Pence: Dr. Tom Price from Georgia, 722 00:58:08,467 --> 00:58:10,967 and then we'll have one more after that if your time permits, 723 00:58:10,967 --> 00:58:11,867 Mr. President. 724 00:58:11,867 --> 00:58:13,067 The President: You know, I'm having fun. 725 00:58:13,066 --> 00:58:14,536 (laughter.) 726 00:58:14,533 --> 00:58:14,963 Congressman Pence: Okay. 727 00:58:14,967 --> 00:58:15,797 The President: This is great. 728 00:58:15,800 --> 00:58:16,570 (applause.) 729 00:58:16,567 --> 00:58:20,897 Congressman Pence: So are we. 730 00:58:20,900 --> 00:58:23,000 Congressman Pence: Mr. President, thank you. 731 00:58:23,000 --> 00:58:25,270 I want to stick on the general topic of health care, 732 00:58:25,266 --> 00:58:27,836 but ask a very specific question. 733 00:58:27,834 --> 00:58:30,934 You have repeatedly said, most recently at the State of the 734 00:58:30,934 --> 00:58:35,434 Union, that Republicans have offered no ideas 735 00:58:35,433 --> 00:58:37,733 and no solutions. 736 00:58:37,734 --> 00:58:39,204 In spite of the fact -- 737 00:58:39,200 --> 00:58:40,230 The President: I don't think I said that. 738 00:58:40,233 --> 00:58:46,163 What I said was, within the context of health care -- I 739 00:58:46,166 --> 00:58:47,536 remember that speech pretty well, 740 00:58:47,533 --> 00:58:50,833 it was only two days ago -- (laughter) -- I said I welcome 741 00:58:50,834 --> 00:58:52,434 ideas that you might provide. 742 00:58:52,433 --> 00:58:54,403 I didn't say that you haven't provided ideas. 743 00:58:54,400 --> 00:58:57,100 I said I welcome those ideas that you'll provide. 744 00:58:57,100 --> 00:58:59,530 Congressman Pence: Mr. President, multiple times, 745 00:58:59,533 --> 00:59:02,463 from your administration, there have come statements that 746 00:59:02,467 --> 00:59:04,567 Republicans have no ideas and no solutions. 747 00:59:04,567 --> 00:59:07,867 In spite of the fact that we've offered, as demonstrated today, 748 00:59:07,867 --> 00:59:11,167 positive solutions to all of the challenges we face, 749 00:59:11,166 --> 00:59:13,966 including energy and the economy and health care, 750 00:59:13,967 --> 00:59:17,067 specifically in the area of health care -- this bill, 751 00:59:17,066 --> 00:59:19,966 H.R.3400, that has more co-sponsors than any health care 752 00:59:19,967 --> 00:59:23,567 bill in the House, is a bill that would provide health 753 00:59:23,567 --> 00:59:27,667 coverage for all Americans; would correct the significant 754 00:59:27,667 --> 00:59:31,497 insurance challenges of affordability and preexisting; 755 00:59:31,500 --> 00:59:33,370 would solve the lawsuit abuse issue, 756 00:59:33,367 --> 00:59:35,637 which isn't addressed significantly in the other 757 00:59:35,633 --> 00:59:38,503 proposals that went through the House and the Senate; 758 00:59:38,500 --> 00:59:41,430 would write into law that medical decisions are made 759 00:59:41,433 --> 00:59:44,033 between patients and families and doctors; 760 00:59:44,033 --> 00:59:48,203 and does all of that without raising taxes by a penny. 761 00:59:48,200 --> 00:59:52,670 But my specific question is, what should we tell our 762 00:59:52,667 --> 00:59:57,367 constituents who know that Republicans have offered 763 00:59:57,367 --> 01:00:01,197 positive solutions to the challenges that Americans face 764 01:00:01,200 --> 01:00:03,470 and yet continue to hear out of the administration that 765 01:00:03,467 --> 01:00:05,097 we've offered nothing? 766 01:00:05,100 --> 01:00:10,130 The President: Tom, look, I have to say that on the -- let's 767 01:00:10,133 --> 01:00:11,433 just take the health care debate. 768 01:00:11,433 --> 01:00:14,103 And it's probably not constructive for us to try to 769 01:00:14,100 --> 01:00:21,730 debate a particular bill -- this isn't the venue to do it. 770 01:00:21,734 --> 01:00:27,264 But if you say, "We can offer coverage for all Americans, 771 01:00:27,266 --> 01:00:31,736 and it won't cost a penny," that's just not true. 772 01:00:31,734 --> 01:00:36,864 You can't structure a bill where suddenly 30 million people have 773 01:00:36,867 --> 01:00:42,597 coverage, and it costs nothing. 774 01:00:42,600 --> 01:00:47,330 If -- Congressman Pence: Mr. President, 775 01:00:47,333 --> 01:00:49,203 can I -- and I understand that we're not interested in debating 776 01:00:49,200 --> 01:00:53,070 this bill, but what should we tell our constituents who know 777 01:00:53,066 --> 01:00:55,396 that we've offered these solutions and yet hear from the 778 01:00:55,400 --> 01:00:59,230 administration that we have offered nothing. 779 01:00:59,233 --> 01:01:01,703 The President: Let me -- I'm using this as a specific 780 01:01:01,700 --> 01:01:03,230 example, so let me answer your question. 781 01:01:03,233 --> 01:01:06,603 You asked a question; I want to answer it. 782 01:01:06,600 --> 01:01:10,200 It's not enough if you say, for example, 783 01:01:10,200 --> 01:01:17,670 that we've offered a health care plan and I look up -- this is 784 01:01:17,667 --> 01:01:22,797 just under the section that you've just provided me, 785 01:01:22,800 --> 01:01:29,930 or the book that you just provided me -- summary of GOP 786 01:01:29,934 --> 01:01:34,964 health care reform bill: The GOP plan will lower health care 787 01:01:34,967 --> 01:01:38,437 premiums for American families and small businesses, 788 01:01:38,433 --> 01:01:42,133 addressing America's number-one priority for health reform. 789 01:01:42,133 --> 01:01:46,163 I mean, that's an idea that we all embrace. 790 01:01:46,166 --> 01:01:48,696 But specifically it's got to work. 791 01:01:48,700 --> 01:01:54,300 I mean, there's got to be a mechanism in these plans that I 792 01:01:54,300 --> 01:01:58,030 can go to an independent health care expert and say, 793 01:01:58,033 --> 01:02:02,303 is this something that will actually work, 794 01:02:02,300 --> 01:02:06,570 or is it boilerplate? 795 01:02:06,567 --> 01:02:12,567 If I'm told, for example, that the solution to dealing with 796 01:02:12,567 --> 01:02:15,937 health care costs is tort reform, 797 01:02:15,934 --> 01:02:20,434 something that I've said I am willing to work with you on, 798 01:02:20,433 --> 01:02:27,603 but the CBO or other experts say to me, at best, 799 01:02:27,600 --> 01:02:31,000 this could reduce health care costs relative to where they're 800 01:02:31,000 --> 01:02:34,800 growing by a couple of percentage points, 801 01:02:34,800 --> 01:02:40,370 or save $5 billion a year, that's what we can score it at, 802 01:02:40,367 --> 01:02:45,637 and it will not bend the cost curve long term or reduce 803 01:02:45,633 --> 01:02:50,763 premiums significantly -- then you can't make the claim that 804 01:02:50,767 --> 01:02:54,467 that's the only thing that we have to do. 805 01:02:54,467 --> 01:03:00,737 If we're going to do multi-state insurance so that people can go 806 01:03:00,734 --> 01:03:03,964 across state lines, I've got to be able to go to an independent 807 01:03:03,967 --> 01:03:09,537 health care expert, Republican or Democrat, 808 01:03:09,533 --> 01:03:13,703 who can tell me that this won't result in cherry-picking of the 809 01:03:13,700 --> 01:03:20,330 healthiest going to some and the least healthy being worse off. 810 01:03:20,333 --> 01:03:25,133 So I am absolutely committed to working with you on these 811 01:03:25,133 --> 01:03:31,963 issues, but it can't just be political assertions that aren't 812 01:03:31,967 --> 01:03:36,797 substantiated when it comes to the actual details of policy. 813 01:03:36,800 --> 01:03:39,030 Because otherwise, we're going to be selling the American 814 01:03:39,033 --> 01:03:41,503 people a bill of goods. 815 01:03:41,500 --> 01:03:46,300 I mean, the easiest thing for me to do on the health care debate 816 01:03:46,300 --> 01:03:51,700 would have been to tell people that what you're going to get is 817 01:03:51,700 --> 01:03:56,430 guaranteed health insurance, lower your costs, 818 01:03:56,433 --> 01:03:59,603 all the insurance reforms; we're going to lower the costs of 819 01:03:59,600 --> 01:04:06,600 Medicare and Medicaid and it won't cost anybody anything. 820 01:04:06,600 --> 01:04:10,000 That's great politics, it's just not true. 821 01:04:10,000 --> 01:04:14,330 So there's got to be some test of realism in any of these 822 01:04:14,333 --> 01:04:16,563 proposals, mine included. 823 01:04:16,567 --> 01:04:17,867 I've got to hold myself accountable, 824 01:04:17,867 --> 01:04:21,497 and guaranteed the American people will hold themselves -- 825 01:04:21,500 --> 01:04:25,300 will hold me accountable if what I'm selling doesn't 826 01:04:25,300 --> 01:04:28,500 actually deliver. 827 01:04:28,500 --> 01:04:29,170 Congressman Pence: Mr. President, 828 01:04:29,166 --> 01:04:32,666 a point of clarification, what's in the Better Solutions book are 829 01:04:32,667 --> 01:04:34,997 all the legislative proposals that were offered -- 830 01:04:35,000 --> 01:04:35,600 The President: I understand that. 831 01:04:35,600 --> 01:04:37,400 I've actually read your bills. 832 01:04:37,400 --> 01:04:38,300 Congressman Price: throughout 2009. 833 01:04:38,300 --> 01:04:39,030 The President: I understand. 834 01:04:39,033 --> 01:04:41,003 Congressman Price: And so, rest assured the summary document you 835 01:04:41,000 --> 01:04:44,330 received is backed up by precisely the kind of detailed 836 01:04:44,333 --> 01:04:48,203 legislation that Speaker Pelosi and your administration have 837 01:04:48,200 --> 01:04:50,600 been busy ignoring for 12 months. 838 01:04:50,600 --> 01:04:52,330 The President: Well, Mike -- well, hold on, hold on a second. 839 01:04:52,333 --> 01:04:54,733 No, no, no, no. 840 01:04:54,734 --> 01:04:57,164 Hold on a second, guys. 841 01:04:57,166 --> 01:05:03,996 (applause.) You know, Mike, I've read your legislation. 842 01:05:04,000 --> 01:05:07,830 I mean, I take a look at this stuff -- and the good 843 01:05:07,834 --> 01:05:09,564 ideas we take. 844 01:05:09,567 --> 01:05:13,737 But here's -- here's the thing -- here's the thing that I guess 845 01:05:13,734 --> 01:05:17,864 all of us have to be mindful of, it can't be all or nothing, 846 01:05:17,867 --> 01:05:22,767 one way or the other. 847 01:05:22,767 --> 01:05:26,767 And what I mean by that is this: If we put together a stimulus 848 01:05:26,767 --> 01:05:30,697 package in which a third of it are tax cuts that normally you 849 01:05:30,700 --> 01:05:39,670 guys would support, and support for states and the unemployed, 850 01:05:39,667 --> 01:05:43,197 and helping people stay on COBRA that your governors certainly 851 01:05:43,200 --> 01:05:46,370 would support -- Democrat or a Republican; 852 01:05:46,367 --> 01:05:48,267 and then you've got some infrastructure, 853 01:05:48,266 --> 01:05:50,066 and maybe there's some things in there that you don't like in 854 01:05:50,066 --> 01:05:53,066 terms of infrastructure, or you think the bill should have been 855 01:05:53,066 --> 01:05:55,696 $500 billion instead of $700 billion or there's this 856 01:05:55,700 --> 01:05:59,970 provision or that provision that you don't like. 857 01:05:59,967 --> 01:06:06,797 If there's uniform opposition because the Republican caucus 858 01:06:06,800 --> 01:06:14,900 doesn't get 100 percent or 80 percent of what you want, 859 01:06:14,900 --> 01:06:17,800 then it's going to be hard to get a deal done. 860 01:06:17,800 --> 01:06:22,530 That's because that's not how democracy works. 861 01:06:22,533 --> 01:06:27,933 So my hope would be that we can look at some of these component 862 01:06:27,934 --> 01:06:32,204 parts of what we're doing and maybe we break some of them up 863 01:06:32,200 --> 01:06:34,400 on different policy issues. 864 01:06:34,400 --> 01:06:41,600 So if the good congressman from Utah has a particular issue on 865 01:06:41,600 --> 01:06:45,130 lobbying reform that he wants to work with us on, 866 01:06:45,133 --> 01:06:48,063 we may not able to agree on a comprehensive package on 867 01:06:48,066 --> 01:06:51,196 everything but there may be some component parts that 868 01:06:51,200 --> 01:06:52,870 we can work on. 869 01:06:52,867 --> 01:06:57,497 You may not support our overall jobs package, 870 01:06:57,500 --> 01:07:02,600 but if you look at the tax credit that we're proposing for 871 01:07:02,600 --> 01:07:06,500 small businesses right now, it is consistent with a lot of what 872 01:07:06,500 --> 01:07:09,100 you guys have said in the past. 873 01:07:09,100 --> 01:07:12,130 And just the fact that it's my administration that's proposing 874 01:07:12,133 --> 01:07:14,803 it shouldn't prevent you from supporting it. 875 01:07:14,800 --> 01:07:15,870 That's my point. 876 01:07:15,867 --> 01:07:16,697 Congressman Pence: Thank you, Mr. President. 877 01:07:16,700 --> 01:07:21,300 Peter Roskam from the great state of Illinois. 878 01:07:21,300 --> 01:07:22,300 The President: Oh, Peter is an old friend of mine. 879 01:07:22,300 --> 01:07:23,200 Congressman Roskan: Hey, Mr. President. 880 01:07:23,200 --> 01:07:24,500 The President: Peter and I have had many debates. 881 01:07:24,500 --> 01:07:27,670 Congressman Roskan: Well, this won't be one. 882 01:07:27,667 --> 01:07:30,937 Mr. President, I heard echoes today of the state senator that 883 01:07:30,934 --> 01:07:34,264 I served with in Springfield and there was an attribute and a 884 01:07:34,266 --> 01:07:38,896 characteristic that you had that I think served you well there. 885 01:07:38,900 --> 01:07:46,270 You took on some very controversial subjects -- death penalty reform -- you and I -- 886 01:07:46,266 --> 01:07:46,836 The President: Sure. 887 01:07:46,834 --> 01:07:47,604 We worked on it together. 888 01:07:47,600 --> 01:07:48,430 Congressman Roskan: -- negotiated on. 889 01:07:48,433 --> 01:07:49,703 You took on ethics reform. 890 01:07:49,700 --> 01:07:51,030 You took on some big things. 891 01:07:51,033 --> 01:07:54,533 One of the keys was you rolled your sleeves up, 892 01:07:54,533 --> 01:07:58,533 you worked with the other party, and ultimately you were able to 893 01:07:58,533 --> 01:08:01,303 make the deal. 894 01:08:01,300 --> 01:08:02,930 Now, here's an observation. 895 01:08:02,934 --> 01:08:08,164 Over the past year, in my view, that attribute hasn't been in 896 01:08:08,166 --> 01:08:09,236 full bloom. 897 01:08:09,233 --> 01:08:13,663 And by that I mean, you've gotten this subtext of House 898 01:08:13,667 --> 01:08:17,837 Republicans that sincerely want to come and be a part of this 899 01:08:17,834 --> 01:08:20,664 national conversation toward solutions, 900 01:08:20,667 --> 01:08:24,637 but they've really been stiff-armed by Speaker Pelosi. 901 01:08:24,633 --> 01:08:26,703 Now, I know you're not in charge of that chamber, 902 01:08:26,700 --> 01:08:31,170 but there really is this dynamic of, frankly, being shut out. 903 01:08:31,166 --> 01:08:35,736 When John Boehner and Eric Cantor presented last February 904 01:08:35,734 --> 01:08:38,004 to you some substantive job creation, 905 01:08:38,000 --> 01:08:42,070 our stimulus alternative, the attack machine began to 906 01:08:42,066 --> 01:08:44,896 marginalize Eric -- and we can all look at the articles -- as 907 01:08:44,900 --> 01:08:48,270 "Mr. No," and there was this pretty dark story, ultimately, 908 01:08:48,266 --> 01:08:51,336 that wasn't productive and wasn't within this sort of 909 01:08:51,333 --> 01:08:53,963 framework that you're articulating today. 910 01:08:53,967 --> 01:08:55,967 So here's the question. 911 01:08:55,967 --> 01:08:58,637 Moving forward, I think all of us want to hit the reset 912 01:08:58,633 --> 01:09:00,833 button on 2009. 913 01:09:00,834 --> 01:09:02,234 How do we move forward? 914 01:09:02,233 --> 01:09:06,563 And on the job creation piece in particular, 915 01:09:06,567 --> 01:09:09,567 you mentioned Colombia, you mentioned Panama, 916 01:09:09,567 --> 01:09:11,167 you mentioned South Korea. 917 01:09:11,166 --> 01:09:15,496 Are you willing to work with us, for example, 918 01:09:15,500 --> 01:09:17,670 to make sure those FTAs get called, 919 01:09:17,667 --> 01:09:20,867 that's no-cost job creation? 920 01:09:20,867 --> 01:09:24,367 And ultimately, as you're interacting with world leaders, 921 01:09:24,367 --> 01:09:27,397 that's got to put more arrows in your quiver, and that's a very, 922 01:09:27,400 --> 01:09:29,370 very powerful tool for us. 923 01:09:29,367 --> 01:09:32,637 But the obstacle is, frankly, the politics within the 924 01:09:32,633 --> 01:09:35,063 Democratic caucus? 925 01:09:35,066 --> 01:09:36,466 The President:: Well, first of all, 926 01:09:36,467 --> 01:09:41,037 Peter and I did work together effectively on a 927 01:09:41,033 --> 01:09:42,203 whole host of issues. 928 01:09:42,200 --> 01:09:45,930 One of our former colleagues is right now running for governor, 929 01:09:45,934 --> 01:09:50,304 on the Republican side, in Illinois. 930 01:09:50,300 --> 01:09:51,630 In the Republican primary, of course, 931 01:09:51,633 --> 01:09:53,703 they're running ads of him saying nice things about me. 932 01:09:53,700 --> 01:09:57,170 Poor guy. 933 01:09:57,166 --> 01:10:05,066 (laughter.) Although that's one of the points that I made earlier. 934 01:10:05,066 --> 01:10:07,696 I mean, we've got to be careful about what we say about each 935 01:10:07,700 --> 01:10:10,870 other sometimes, because it boxes us in in ways that makes 936 01:10:10,867 --> 01:10:12,797 it difficult for us to work together, 937 01:10:12,800 --> 01:10:17,270 because our constituents start believing us. 938 01:10:17,266 --> 01:10:20,036 They don't know sometimes this is just politics what you guys 939 01:10:20,033 --> 01:10:26,633 -- or folks on my side do sometimes. 940 01:10:26,633 --> 01:10:33,433 So just a tone of civility instead of slash and burn would be helpful. 941 01:10:33,433 --> 01:10:38,003 The problem we have sometimes is a media that responds only to 942 01:10:38,000 --> 01:10:41,170 slash-and-burn-style politics. 943 01:10:41,166 --> 01:10:42,836 You don't get a lot of credit if I say, "You know, 944 01:10:42,834 --> 01:10:45,164 I think Paul Ryan is a pretty sincere guy and has 945 01:10:45,166 --> 01:10:46,436 a beautiful family." 946 01:10:46,433 --> 01:10:49,133 Nobody is going to run that in the newspapers. 947 01:10:49,133 --> 01:10:53,733 Speaker: (Inaudible.) (laughter.) 948 01:10:53,734 --> 01:10:56,064 The President: And by the way, in case he's going to get a Republican 949 01:10:56,066 --> 01:11:01,436 challenge, I didn't mean it. 950 01:11:01,433 --> 01:11:05,133 (laughter.) Don't want to hurt you, man. 951 01:11:05,133 --> 01:11:12,103 (laughter.) But on the specifics, 952 01:11:12,100 --> 01:11:20,570 I think both sides can take some blame for a sour climate on Capitol Hill. 953 01:11:20,567 --> 01:11:25,867 What I can do maybe to help is to try to bring Republican and 954 01:11:25,867 --> 01:11:29,367 Democratic leadership together on a more regular basis with me. 955 01:11:29,367 --> 01:11:34,237 That's, I think, a failure on my part, 956 01:11:34,233 --> 01:11:37,903 is to try to foster better communications even if 957 01:11:37,900 --> 01:11:39,600 there's disagreement. 958 01:11:39,600 --> 01:11:44,130 And I will try to see if we can do more of that this year. 959 01:11:44,133 --> 01:11:48,163 That's on the sort of the general issue. 960 01:11:48,166 --> 01:11:50,766 On the specific issue of trade, you're right, 961 01:11:50,767 --> 01:11:55,967 there are conflicts within and fissures within the 962 01:11:55,967 --> 01:11:57,237 Democratic Party. 963 01:11:57,233 --> 01:12:00,963 I suspect there are probably going to be some fissures within 964 01:12:00,967 --> 01:12:02,897 the Republican Party, as well. 965 01:12:02,900 --> 01:12:10,730 I mean, you know, if you went to some of your constituencies, 966 01:12:10,734 --> 01:12:15,104 they'd be pretty suspicious about it, new trade agreements, 967 01:12:15,100 --> 01:12:19,370 because the suspicion is somehow they're all one way. 968 01:12:19,367 --> 01:12:22,037 So part of what we've been trying to do is to make sure 969 01:12:22,033 --> 01:12:27,133 that we're getting the enforcement side of this tight, 970 01:12:27,133 --> 01:12:30,833 make sure that if we've got a trade agreement with China or 971 01:12:30,834 --> 01:12:33,104 other countries, that they are abiding with it -- they're not 972 01:12:33,100 --> 01:12:39,300 stealing our intellectual property or making sure that 973 01:12:39,300 --> 01:12:44,700 their non-tariff barriers are lowered even as ours are opened up. 974 01:12:44,700 --> 01:12:48,430 And my hope is, is that we can move forward with some of these 975 01:12:48,433 --> 01:12:52,063 trade agreements having built some confidence -- not just 976 01:12:52,066 --> 01:12:54,766 among particular constituency groups, 977 01:12:54,767 --> 01:12:57,537 but among the American people -- that trade is going to be 978 01:12:57,533 --> 01:13:01,663 reciprocal; that it's not just going to be a one-way street. 979 01:13:01,667 --> 01:13:04,237 You are absolutely right though, Peter, when you say, 980 01:13:04,233 --> 01:13:08,333 for example, South Korea is a great ally of ours. 981 01:13:08,333 --> 01:13:12,463 I mean, when I visited there, there is no country that is more 982 01:13:12,467 --> 01:13:18,437 committed to friendship on a whole range of fronts than South Korea. 983 01:13:18,433 --> 01:13:22,833 What is also true is that the European Union is about to sign 984 01:13:22,834 --> 01:13:26,404 a trade agreement with South Korea, 985 01:13:26,400 --> 01:13:29,130 which means right at the moment when they start opening up their 986 01:13:29,133 --> 01:13:34,263 markets, the Europeans might get in there before we do. 987 01:13:34,266 --> 01:13:37,596 So we've got to make sure that we seize these opportunities. 988 01:13:37,600 --> 01:13:41,200 I will be talking more about trade this year. 989 01:13:41,200 --> 01:13:44,630 It's going to have to be trade that combines opening their 990 01:13:44,633 --> 01:13:48,363 markets with an enforcement mechanism, 991 01:13:48,367 --> 01:13:50,137 as well as just opening up our markets. 992 01:13:50,133 --> 01:13:53,103 I think that's something that all of us would agree on. 993 01:13:53,100 --> 01:13:56,570 Let's see if we can execute it over the next several years. 994 01:13:56,567 --> 01:14:00,897 All right, is that it? 995 01:14:00,900 --> 01:14:02,630 Congressman Pence: Jeb Hensarling, Texas. 996 01:14:02,633 --> 01:14:05,033 And that will be it, Mr. President. 997 01:14:05,033 --> 01:14:07,863 The President: Jim [sic] is going to wrap things up? 998 01:14:07,867 --> 01:14:09,097 Congressman Pence: Yes, sir. 999 01:14:09,100 --> 01:14:09,870 The President: All right. 1000 01:14:09,867 --> 01:14:10,737 Congressman Hensarling: Jeb, Mr. President. 1001 01:14:10,734 --> 01:14:11,804 The President: How are you? 1002 01:14:11,800 --> 01:14:12,800 Congressman Hensarling: I'm doing well. 1003 01:14:12,800 --> 01:14:16,530 Mr. President, a year ago I had an opportunity to speak to you 1004 01:14:16,533 --> 01:14:18,063 about the national debt. 1005 01:14:18,066 --> 01:14:21,136 And something that you and I have in common is we both have 1006 01:14:21,133 --> 01:14:22,363 small children. 1007 01:14:22,367 --> 01:14:25,567 The President: Absolutely. 1008 01:14:25,567 --> 01:14:27,297 Congressman Hensarling: And I left that conversation really 1009 01:14:27,300 --> 01:14:31,130 feeling your sincere commitment to ensuring that our children, 1010 01:14:31,133 --> 01:14:36,963 our nation's children, do not inherit an unconscionable debt. 1011 01:14:36,967 --> 01:14:40,767 We know that under current law, that government -- the cost of 1012 01:14:40,767 --> 01:14:44,367 government is due to grow from 20 percent of our economy to 40 1013 01:14:44,367 --> 01:14:48,867 percent of our economy, right about the time our children are 1014 01:14:48,867 --> 01:14:53,697 leaving college and getting that first job. 1015 01:14:53,700 --> 01:14:57,030 Mr. President, shortly after that conversation a year ago, 1016 01:14:57,033 --> 01:15:02,263 the Republicans proposed a budget that ensured that 1017 01:15:02,266 --> 01:15:05,466 government did not grow beyond the historical standard of 20 1018 01:15:05,467 --> 01:15:07,837 percent of GDP. 1019 01:15:07,834 --> 01:15:13,764 It was a budget that actually froze immediately non-defense 1020 01:15:13,767 --> 01:15:16,197 discretionary spending. 1021 01:15:16,200 --> 01:15:21,870 It spent $5 trillion less than ultimately what was enacted into 1022 01:15:21,867 --> 01:15:27,597 law, and unfortunately, I believe that budget was ignored. 1023 01:15:27,600 --> 01:15:30,600 And since that budget was ignored, 1024 01:15:30,600 --> 01:15:35,370 what were the old annual deficits under Republicans have 1025 01:15:35,367 --> 01:15:40,537 now become the monthly deficits under Democrats. 1026 01:15:40,533 --> 01:15:44,063 The national debt has increased 30 percent. 1027 01:15:44,066 --> 01:15:46,936 Now, Mr. President, I know you believe -- and I understand the 1028 01:15:46,934 --> 01:15:50,704 argument, and I respect the view that the spending is necessary 1029 01:15:50,700 --> 01:15:53,430 due to the recession; many of us believe, frankly, 1030 01:15:53,433 --> 01:15:55,603 it's part of the problem, not part of the solution. 1031 01:15:55,600 --> 01:15:57,970 But I understand and I respect your view. 1032 01:15:57,967 --> 01:16:01,267 But this is what I don't understand, Mr. President. 1033 01:16:01,266 --> 01:16:06,436 After that discussion, your administration proposed a budget 1034 01:16:06,433 --> 01:16:10,763 that would triple the national debt over the next 10 years -- 1035 01:16:10,767 --> 01:16:13,097 surely you don't believe 10 years from now we will still be 1036 01:16:13,100 --> 01:16:17,470 mired in this recession -- and propose new entitlement spending 1037 01:16:17,467 --> 01:16:25,037 and move the cost of government to almost 24.5 percent of the economy. 1038 01:16:25,033 --> 01:16:28,563 Now, very soon, Mr. President, you're due to submit a new budget. 1039 01:16:28,567 --> 01:16:29,937 And my question is -- 1040 01:16:29,934 --> 01:16:31,334 The President: Jeb, I know there's a question in there somewhere, 1041 01:16:31,333 --> 01:16:32,763 because you're making a whole bunch of assertions, 1042 01:16:32,767 --> 01:16:35,667 half of which I disagree with, and I'm having to sit here 1043 01:16:35,667 --> 01:16:36,737 listening to them. 1044 01:16:36,734 --> 01:16:38,504 At some point I know you're going to let me answer. 1045 01:16:38,500 --> 01:16:40,000 All right. 1046 01:16:40,000 --> 01:16:40,530 Congressman Hensarling: That's the question. 1047 01:16:40,533 --> 01:16:43,403 You are soon to submit a new budget, Mr. President. 1048 01:16:43,400 --> 01:16:46,000 Will that new budget, like your old budget, 1049 01:16:46,000 --> 01:16:49,530 triple the national debt and continue to take us down the 1050 01:16:49,533 --> 01:16:52,903 path of increasing the cost of government to almost 25 percent 1051 01:16:52,900 --> 01:16:55,200 of our economy? 1052 01:16:55,200 --> 01:16:55,800 That's the question, Mr. President. 1053 01:16:55,800 --> 01:16:56,970 The President: Jeb, with all due respect, 1054 01:16:56,967 --> 01:17:00,167 I've just got to take this last question as an example of how 1055 01:17:00,166 --> 01:17:04,066 it's very hard to have the kind of bipartisan work that we're 1056 01:17:04,066 --> 01:17:08,266 going to do, because the whole question was structured as a 1057 01:17:08,266 --> 01:17:16,966 talking point for running a campaign. 1058 01:17:16,967 --> 01:17:21,167 Now, look, let's talk about the budget once again, 1059 01:17:21,166 --> 01:17:24,896 because I'll go through it with you line by line. 1060 01:17:24,900 --> 01:17:28,430 The fact of the matter is, is that when we came into office, 1061 01:17:28,433 --> 01:17:32,263 the deficit was $1.3 trillion. 1062 01:17:32,266 --> 01:17:35,836 -- $1.3 [trillion.] So when you say that suddenly I've got a 1063 01:17:35,834 --> 01:17:39,934 monthly budget that is higher than the -- a monthly deficit 1064 01:17:39,934 --> 01:17:43,204 that's higher than the annual deficit left by the Republicans, 1065 01:17:43,200 --> 01:17:49,500 that's factually just not true, and you know it's not true. 1066 01:17:49,500 --> 01:17:57,270 And what is true is that we came in already with a $1.3 trillion 1067 01:17:57,266 --> 01:18:01,396 deficit before I had passed any law. 1068 01:18:01,400 --> 01:18:06,700 What is true is we came in with $8 trillion worth of debt over 1069 01:18:06,700 --> 01:18:08,570 the next decade -- had nothing to do with anything 1070 01:18:08,567 --> 01:18:11,397 that we had done. 1071 01:18:11,400 --> 01:18:16,100 It had to do with the fact that in 2000 when there was a budget 1072 01:18:16,100 --> 01:18:23,530 surplus of $200 billion, you had a Republican administration and 1073 01:18:23,533 --> 01:18:29,833 a Republican Congress, and we had two tax cuts that 1074 01:18:29,834 --> 01:18:31,704 weren't paid for. 1075 01:18:31,700 --> 01:18:34,730 You had a prescription drug plan -- the biggest entitlement plan, 1076 01:18:34,734 --> 01:18:38,704 by the way, in several decades -- that was passed without it 1077 01:18:38,700 --> 01:18:41,570 being paid for. 1078 01:18:41,567 --> 01:18:51,297 You had two wars that were done through supplementals. 1079 01:18:51,300 --> 01:18:55,130 And then you had $3 trillion projected because of the lost 1080 01:18:55,133 --> 01:18:59,103 revenue of this recession. 1081 01:18:59,100 --> 01:19:00,570 That's $8 trillion. 1082 01:19:00,567 --> 01:19:05,297 Now, we increased it by a trillion dollars because of the 1083 01:19:05,300 --> 01:19:08,430 spending that we had to make on the stimulus. 1084 01:19:08,433 --> 01:19:11,533 I am happy to have any independent fact-checker out 1085 01:19:11,533 --> 01:19:14,963 there take a look at your presentation versus mine in 1086 01:19:14,967 --> 01:19:18,397 terms of the accuracy of what I just said. 1087 01:19:18,400 --> 01:19:25,270 Now, going forward, here's the deal. 1088 01:19:25,266 --> 01:19:27,436 I think, Paul, for example, head of the budget committee, 1089 01:19:27,433 --> 01:19:33,303 has looked at the budget and has made a serious proposal. 1090 01:19:33,300 --> 01:19:34,900 I've read it. 1091 01:19:34,900 --> 01:19:37,700 I can tell you what's in it. 1092 01:19:37,700 --> 01:19:40,170 And there are some ideas in there that I would agree with, 1093 01:19:40,166 --> 01:19:43,496 but there are some ideas that we should have a healthy debate 1094 01:19:43,500 --> 01:19:45,300 about because I don't agree with them. 1095 01:19:45,300 --> 01:19:48,470 The major driver of our long-term liabilities, 1096 01:19:48,467 --> 01:19:51,537 everybody here knows, is Medicare and Medicaid and our 1097 01:19:51,533 --> 01:19:53,033 health care spending. 1098 01:19:53,033 --> 01:19:55,103 Nothing comes close. 1099 01:19:55,100 --> 01:19:57,500 Social Security we could probably fix the same way Tip 1100 01:19:57,500 --> 01:20:00,130 O'Neill and Ronald Reagan sat down together and they could 1101 01:20:00,133 --> 01:20:01,403 figure something out. 1102 01:20:01,400 --> 01:20:02,730 That is manageable. 1103 01:20:02,734 --> 01:20:07,004 Medicare and Medicaid -- massive problem down the road. 1104 01:20:07,000 --> 01:20:10,500 That's where -- that's going to be what our children have to 1105 01:20:10,500 --> 01:20:12,400 worry about. 1106 01:20:12,400 --> 01:20:17,370 Now, Paul's approach -- and I want to be careful not 1107 01:20:17,367 --> 01:20:24,997 simplifying this, because I know you've got a lot of detail in 1108 01:20:25,000 --> 01:20:28,130 your plan -- but if I understand it correctly, 1109 01:20:28,133 --> 01:20:33,503 would say we're going to provide vouchers of some sort for 1110 01:20:33,500 --> 01:20:35,830 current Medicare recipients at the current level -- 1111 01:20:35,834 --> 01:20:36,634 Congressman Ryan: No. 1112 01:20:36,633 --> 01:20:38,333 The President: No? 1113 01:20:38,333 --> 01:20:39,563 Congressman Ryan: People 55 and above -- 1114 01:20:39,567 --> 01:20:40,797 The President: Fifty-five and -- well, no, I understand. 1115 01:20:40,800 --> 01:20:42,270 I mean, there's a grandfathering in, 1116 01:20:42,266 --> 01:20:44,996 but just for future beneficiaries, right? 1117 01:20:45,000 --> 01:20:47,130 That's why I said I didn't want to -- I want to make sure that 1118 01:20:47,133 --> 01:20:49,203 I'm not being unfair to your proposal, 1119 01:20:49,200 --> 01:20:51,670 but I just want to point out that I've read it. 1120 01:20:51,667 --> 01:20:59,497 And the basic idea would be that at some point we hold Medicare 1121 01:20:59,500 --> 01:21:04,070 cost per recipient constant as a way of making sure that that 1122 01:21:04,066 --> 01:21:09,996 doesn't go way out of whack, and I'm sure there are some details that -- 1123 01:21:10,000 --> 01:21:11,630 Congressman Ryan: We drew it as a blend of inflation 1124 01:21:11,633 --> 01:21:14,833 and health inflation, the point of our plan is -- because 1125 01:21:14,834 --> 01:21:18,534 Medicare, as you know, is a $38 trillion unfunded liability -- 1126 01:21:18,533 --> 01:21:21,103 it has to be reform for younger generations because it won't 1127 01:21:21,100 --> 01:21:22,800 exist because it's going bankrupt. 1128 01:21:22,800 --> 01:21:25,170 And the premise of our idea is, look, 1129 01:21:25,166 --> 01:21:27,636 why not give people the same kind of health care plan we here 1130 01:21:27,633 --> 01:21:29,403 have in Congress? 1131 01:21:29,400 --> 01:21:31,270 That's the kind of reform we're proposing for Medicare. 1132 01:21:31,266 --> 01:21:32,096 (applause.) 1133 01:21:32,100 --> 01:21:32,630 The President: No, I understand. 1134 01:21:32,633 --> 01:21:33,303 Right, right. 1135 01:21:33,300 --> 01:21:37,700 Well, look, as I said before, this is an entirely 1136 01:21:37,700 --> 01:21:40,070 legitimate proposal. 1137 01:21:40,066 --> 01:21:46,496 The problem is twofold: One is that depending on how it's 1138 01:21:46,500 --> 01:21:52,900 structured, if recipients are suddenly getting a plan that has 1139 01:21:52,900 --> 01:21:57,000 their reimbursement rates going like this, 1140 01:21:57,000 --> 01:22:00,370 but health care costs are still going up like that, 1141 01:22:00,367 --> 01:22:05,667 then over time the way we're saving money is essentially by 1142 01:22:05,667 --> 01:22:10,537 capping what they're getting relative to their costs. 1143 01:22:10,533 --> 01:22:13,933 Now, I just want to point out -- and this brings me to the second 1144 01:22:13,934 --> 01:22:18,104 problem -- when we made a very modest proposal as part of our 1145 01:22:18,100 --> 01:22:22,870 package, our health care reform package, 1146 01:22:22,867 --> 01:22:26,137 to eliminate the subsidies going to insurance companies for 1147 01:22:26,133 --> 01:22:37,463 Medicare Advantage, we were attacked across the board, 1148 01:22:37,467 --> 01:22:43,137 by many on your aisle, for slashing Medicare. 1149 01:22:43,133 --> 01:22:43,903 You remember? 1150 01:22:43,900 --> 01:22:46,800 We're going to start cutting benefits for seniors. 1151 01:22:46,800 --> 01:22:50,900 That was the story that was perpetrated out there -- scared 1152 01:22:50,900 --> 01:22:54,430 the dickens out of a lot of seniors. 1153 01:22:54,433 --> 01:22:59,003 No, no, but here's my point. 1154 01:22:59,000 --> 01:23:05,900 If the main question is going to be what do we do about Medicare 1155 01:23:05,900 --> 01:23:11,900 costs, any proposal that Paul makes will be painted, 1156 01:23:11,900 --> 01:23:15,730 factually, from the perspective of those who disagree with it, 1157 01:23:15,734 --> 01:23:19,134 as cutting benefits over the long term. 1158 01:23:19,133 --> 01:23:21,433 Paul, I don't think you disagree with that, 1159 01:23:21,433 --> 01:23:26,903 that there is a political vulnerability to doing anything 1160 01:23:26,900 --> 01:23:28,500 that tinkers with Medicare. 1161 01:23:28,500 --> 01:23:31,530 And that's probably the biggest savings that are obtained 1162 01:23:31,533 --> 01:23:32,863 through Paul's plan. 1163 01:23:32,867 --> 01:23:35,367 And I raise that not because we shouldn't have a series 1164 01:23:35,367 --> 01:23:37,367 discussion about it. 1165 01:23:37,367 --> 01:23:40,137 I raise that because we're not going to be able to do anything 1166 01:23:40,133 --> 01:23:44,903 about any of these entitlements if what we do is characterized, 1167 01:23:44,900 --> 01:23:47,730 whatever proposals are put out there, as, well, you know, 1168 01:23:47,734 --> 01:23:50,664 that's -- the other party is being irresponsible; 1169 01:23:50,667 --> 01:23:57,037 the other party is trying to hurt our senior citizens; 1170 01:23:57,033 --> 01:24:01,533 that the other party is doing X, Y, Z. 1171 01:24:01,533 --> 01:24:06,663 That's why I say if we're going to frame these debates in ways 1172 01:24:06,667 --> 01:24:11,597 that allow us to solve them, then we can't start off by 1173 01:24:11,600 --> 01:24:15,200 figuring out, A, who's to blame; B, 1174 01:24:15,200 --> 01:24:20,470 how can we make the American people afraid of the other side. 1175 01:24:20,467 --> 01:24:24,097 And unfortunately, that's how our politics works right now. 1176 01:24:24,100 --> 01:24:26,470 And that's how a lot of our discussion works. 1177 01:24:26,467 --> 01:24:30,467 That's how we start off -- every time somebody speaks in 1178 01:24:30,467 --> 01:24:32,237 Congress, the first thing they do, 1179 01:24:32,233 --> 01:24:35,403 they stand up and all the talking points -- I see Frank 1180 01:24:35,400 --> 01:24:36,930 Luntz up here sitting in the front. 1181 01:24:36,934 --> 01:24:39,834 He's already polled it, and he said, you know, 1182 01:24:39,834 --> 01:24:43,304 the way you're really going to -- I've done a focus group and 1183 01:24:43,300 --> 01:24:46,900 the way we're going to really box in Obama on this one or make 1184 01:24:46,900 --> 01:24:49,430 Pelosi look bad on that one -- I know, I like Frank, 1185 01:24:49,433 --> 01:24:53,503 we've had conversations between Frank and I. 1186 01:24:53,500 --> 01:24:56,200 But that's how we operate. 1187 01:24:56,200 --> 01:25:01,430 It's all tactics, and it's not solving problems. 1188 01:25:01,433 --> 01:25:03,863 And so the question is, at what point can we have a serious 1189 01:25:03,867 --> 01:25:08,537 conversation about Medicare and its long-term liability, 1190 01:25:08,533 --> 01:25:12,303 or a serious question about -- a serious conversation about 1191 01:25:12,300 --> 01:25:15,630 Social Security, or a serious conversation about budget and 1192 01:25:15,633 --> 01:25:20,563 debt in which we're not simply trying to position 1193 01:25:20,567 --> 01:25:22,037 ourselves politically. 1194 01:25:22,033 --> 01:25:23,633 That's what I'm committed to doing. 1195 01:25:23,633 --> 01:25:27,533 We won't agree all the time in getting it done, 1196 01:25:27,533 --> 01:25:29,363 but I'm committed to doing it. 1197 01:25:29,367 --> 01:25:30,437 Congressman Ryan: Take one more? 1198 01:25:30,433 --> 01:25:31,963 The President: You know, I've already gone over time. 1199 01:25:31,967 --> 01:25:38,767 But I'll be happy to take your question, Congressman, offline. 1200 01:25:38,767 --> 01:25:40,397 You can give me a call. 1201 01:25:40,400 --> 01:25:41,530 All right, thank you, everybody. 1202 01:25:41,533 --> 01:25:42,403 God bless you. 1203 01:25:42,400 --> 01:25:44,000 God bless the United States of America. 1204 01:25:44,000 --> 01:25:44,470 Thank you, everybody. 1205 01:25:44,467 --> 01:25:46,037 (applause.)