Hi, all. Today’s report features:
• President addresses Chamber of Commerce: "Even as we make America the best place on Earth to do business, businesses also have a responsibility to America."
• National Black HIV/AIDS Awareness Day: Valerie Jarrett, Senior Advisor to the President, talks about combating HIV/AIDS; resources at Aids. gov.
•White House press briefing: Mr. Gibbs takes questions on Egypt and the President’s visit to the Chamber of Commerce.
• Advise the Advisor: New video series featuring senior White House staff to collect feedback on important issues. This week: David Plouffe on innovation.
•Protecting Consumers: Elizabeth Warren introduces real stories of unfair financial practices; how the Consumer Financial Protection Bureau will fight for consumers.
• President with young leaders at Penn State: The President speaks about how the next generation will contribute to winning the future.
• PRESIDENT ADDRESSES CHAMBER OF COMMERCE •
White House, Feb. 7, 2011:
President Obama Addresses U.S. Chamber of Commerce
The President speaks about his plan to win the future by helping businesses innovate and create new American jobs.
Office of the Press Secretary, Feb. 7, 2011:
Remarks by the President to the Chamber of Commerce
THE PRESIDENT: Thank you very much. Please, have a seat. Thank you very much, Tom, for the gracious introduction. I want to make a few other acknowledgments. To Tom Bell, the Chamber Board President, thank you for helping to organize this. There are some members of my administration I want to make sure are introduced. My Chief of Staff, Bill Daley, is here. (Applause.) Senior advisor Valerie Jarrett, who is interfacing with many of you and has gotten terrific advice from many of you, is here as well. Secretary Ray LaHood, our Transportation Secretary. Ambassador Ron Kirk, who is working hard to get trade deals around the world. Our Small Business Administration Administrator Karen Mills. My director of the National Economic Council, Gene Sperling, is here. And I also want to make mention, Fred Hochberg, our Export-Import Bank Chairman; Elizabeth Littlefield, the Overseas Private Investment Corporation President. And I also want to acknowledge a good friend, Paul Volcker, the outgoing chair of the President’s Economic Recovery Advisory Board. Thank you all for being here. (Applause.)
Now, Tom, it is good to be here today at the Chamber of Commerce. I’m here in the interest of being more neighborly. (Laughter.) I strolled over from across the street, and look, maybe if we had brought over a fruitcake when I first moved in, we would have gotten off to a better start. (Laughter.) But I’m going to make up for it.
The truth is, this isn’t the first time I’ve been to the Chamber, or the first time that we’ve exchanged ideas. Over the last two years, I’ve sought advice from many of you as we were grappling with the worst recession most of us have ever known. It’s a recession that led to some very difficult decisions. For many of you, that meant restructuring and branch closings and layoffs that I know were very painful to make. For my administration, it meant a series of emergency measures that I would not have undertaken under normal circumstances, but that were necessary to stop our economy from falling off a cliff.
Now, on some issues, like the Recovery Act, we’ve found common cause. On other issues, we’ve had some pretty strong disagreements. But I’m here today because I am convinced, as Tom mentioned in his introduction, that we can and we must work together. Whatever differences we may have, I know that all of us share a deep, abiding belief in this country, a belief in our people, a belief in the principles that have made America’s economy the envy of the world.
America’s success didn’t happen overnight, and it didn’t happen by accident. It happened because (of) the freedom that has allowed good ideas to flourish, that has allowed capitalism to thrive; it happened because of the conviction that in this country hard work should be rewarded and that opportunity should be there for anybody who’s willing to reach for it. And because it happened at every juncture in our history -- not just once, not just twice, but over and over again -- we came together to remake ourselves; we came together as one nation and did what was necessary to win the future. That is why I am so confident that we will win the future again.
That’s the challenge that we face today. We still have, by far, the world’s largest and most vibrant economy. We have the most productive workers, the finest universities and the freest markets. The men and women in this room are living testimony that American industry is still the source of the most dynamic companies, and the most ingenious entrepreneurs.
But we also know that with the march of technology over the last few decades, the competition for jobs and businesses has grown fierce. The globalization of our economy means that businesses can now open up a shop, employ workers and produce their goods wherever an Internet connection exists. Tasks that were once done by 1,000 workers can now be done by 100 or in some cases even 10. And the truth is, as countries like China and India and Brazil grow and develop larger middle classes, it’s profitable for global companies to aggressively pursue these markets and, at times, to set up facilities in these countries.
These forces are as unstoppable as they are powerful. But combined with a brutal and devastating recession, these forces have also shaken the faith of the American people -- in the institutions of business and government. They see a widening chasm of wealth and opportunity in this country, and they wonder if the American Dream is slipping away.
They wonder if the middle class, rather than expanding as it has through our lifetimes, is in the midst of an inexorable contraction. And we can’t ignore these concerns. We have to renew people’s faith in the promise of this country –- that this is a place where you can make it if you try. And we have to do this together: business and government; workers and CEOs; Democrats and Republicans.
We know what it will take for America to win the future. We need to out-innovate, we need to out-educate, we need to out-build our competitors. We need an economy that’s based not on what we consume and borrow from other nations, but what we make and what we sell around the world. We need to make America the best place on Earth to do business.
And this is a job for all of us. As a government, we will help lay the foundation for you to grow and innovate and succeed. We will upgrade our transportation and communication networks so you can move goods and information more quickly and more cheaply. We’ll invest in education so that you can hire the most skilled, talented workers in the world. And we’ll work to knock down barriers that make it harder for you to compete, from the tax code to the regulatory system.
But I want to be clear: Even as we make America the best place on Earth to do business, businesses also have a responsibility to America.
I understand the challenges you face. I understand you are under incredible pressure to cut costs and keep your margins up. I understand the significance of your obligations to your shareholders and the pressures that are created by quarterly reports. I get it.
But as we work with you to make America a better place to do business, I’m hoping that all of you are thinking what you can do for America. Ask yourselves what you can do to hire more American workers, what you can do to support the American economy and invest in this nation. That’s what I want to talk about today –- the responsibilities we all have -- the mutual responsibilities we have -- to secure the future that we all share.
Now, as a country, we have a responsibility to encourage American innovation. I talked about this quite a bit at my State of the Union.
Companies like yours have always driven the discovery of new products and new ideas. You do it better than anybody. But what you also know is that it’s not always profitable to -- in the short-term, at least -- for you to invest in basic research. It’s very expensive, and the payoffs are not always clear and they’re not always localized. And that’s why government has traditionally helped invest in this kind of science, planting the seeds that ultimately grew into technologies from the computer chips to the Internet.
That’s why we’re making investments today in the next generation of big ideas -– in biotechnology, in information technology and in clean energy technology. We’re reforming our patent system so innovations can move more quickly to market. Steve Case is heading up a new partnership called Startup America to help entrepreneurs turn new ideas into new businesses and new jobs. And I’ve also proposed a bigger, permanent tax credit for all the research and development your companies do in this country. I believe that is a priority.
We also have a responsibility as a nation to provide our people with -- and our businesses -- with the fastest, most reliable way to move goods and information. The costs to business from outdated and inadequate infrastructure is enormous. And that’s what we have right now -- outdated, inadequate infrastructure.
And any of you that have been traveling to other countries, you know it, you see it, and it affects your bottom lines. That’s why I want to put more people to work rebuilding crumbling roads, rebuilding our bridges. That’s why I’ve proposed connecting 80 percent of the country with high-speed -- to high-speed rail, and making it possible for companies to put high-speed Internet coverage in the reach of virtually all Americans.
You understand the importance of this. The fact is, the Chamber of Commerce and the AFL-CIO don’t agree on a whole lot. Tom Donohue and Richard Trumka are not Facebook friends. (Laughter.) Well, maybe -- I don’t think you are anyway. (Laughter.) I didn’t check on this, but -- but they agree on the need to build a 21st-century infrastructure. And I want to thank the Chamber for pushing Congress to make more infrastructure investments, and to do so in the most cost-effective way possible: with tax dollars that leverage private capital, and with projects that are determined not by politics, but by what’s best for our economy.
Third responsibility that we have as a nation is to invest in the skills and education of our young people. If we expect companies to do business and hire in America, America needs a pool of trained, talented workers that can out-compete anybody in the world. And that’s why we’re reforming K-12 education; that’s why we’re training 100,000 new math and science teachers; that’s why we’re making college more affordable, and revitalizing our community college system.
Recently I visited GE in Schenectady, which has partnered with a local community college. And while students train for jobs available at the nearby GE plant, they earn a paycheck and they’ve got their tuition covered. And as a result, young people can find work, GE can fill high-skill positions, and the entire region has become more attractive to businesses. It’s a win-win for everybody, and it’s something we’re trying to duplicate across the country.
Now, to make room for these investments in education, in innovation, in infrastructure, government also has a responsibility to cut spending that we just can’t afford. That’s why I’ve promised to veto any bill that’s larded up with earmarks. That’s why I’ve proposed that we freeze annual domestic spending for the next five years. Understand what this means. This would reduce the deficit by more than $400 billion over the next decade, and bring this spending -- domestic discretionary spending -- down to the lowest share of our economy since Eisenhower was president. That was a long time ago.
Now, it’s not going to be enough. We’re going to have to do more. Because the driving force on our deficits are entitlements spending. And that’s going to require both parties to work together, because those are some tough problems that we’re going to have to solve. And I am eager to work with both parties and with the Chamber to take additional steps across the budget to put our nation on a sounder fiscal footing.
By stopping spending on things we don’t need, we can make investments in the things that we do need, the same way families do. If they’ve got a fiscal problem, if they’ve got to tighten their belt, they don’t stop paying for Johnny to go to college. They cut out things they don’t need, but they still make investments in the thing that are going to make sure we win the future. And that’s what we have to do as a country: make some smart choices -- tough choices, but smart ones.
Now, in addition to making government more affordable, we’re also making it more effective and more consumer-friendly. We’re trying to run the government a little bit more like you run your business -- with better technology and faster services. So in the coming months, my administration will develop a proposal to merge, consolidate and reorganize the federal government in a way that best serves the goal of a more competitive America. And we want to start with the 12 different agencies that deal with America’s exports. If we hope to help our businesses sell more goods around the world, we should ensure we’re all pulling in the same direction. And frankly, with 12 different agencies in charge, nobody is in charge. So we’re going to fix that as an example of how we can make a government that’s more responsive to the American people and to American businesses.
Which brings me to the final responsibility of government: breaking down some of the barriers that stand in the way of your success. As far as exports are concerned, that means seeking new opportunities and opening new markets for your goods. And I will tell you I will go anywhere anytime to be a booster for American businesses, American workers and American products. We recently signed -- (applause) -- and I don’t charge a commission. (Laughter.)
We recently signed export deals with India and China that will support more than 250,000 jobs here in the United States. We finalized a trade agreement with South Korea that will support at least 70,000 American jobs. And by the way, it’s a deal that has unprecedented support from business and labor, Democrats and Republicans. That’s the kind of deal that I will be looking for as we pursue trade agreements with Panama and Colombia, as we work to bring Russia into the international trading system. Those are going to be our top priorities because we believe Americans have the best products and the best businesses, and if we’re out there selling and we’re out there hustling, there’s no reason why we can’t do a lot better than we’re doing right now when it comes to our exports.
Now, another barrier government can remove -- and I hear a lot about this from many of you -- is a burdensome corporate tax code with one of the highest rates in the world. You know how it goes: because of various loopholes and carve-outs that have built up over the years, some industries pay an average rate that is four or five times higher than others. Companies are taxed heavily for making investments with equity, yet the tax code actually pays companies to invest using leverage. As a result, you’ve got too many companies ending up making decisions based on what their tax director says instead of what their engineer designs or what their factories produce. And that puts our entire economy at a disadvantage. We need something smarter, something simpler, something fairer. That’s why I want to lower the corporate rate and eliminate these loopholes to pay for it, so that it doesn’t add a dime to our deficit. And I’m asking for your help in this fight. I think it can be done.
Which brings me to the last barriers we’re trying to remove, and those are outdated and unnecessary regulations. I’ve ordered a government-wide review, and if there are rules on the books that are needlessly stifling job creation and economic growth, we will fix them.
Already we’re dramatically cutting down on the paperwork that saddles businesses with huge administrative costs. We’re improving the way FDA evaluates things like medical devices, to get innovative and lifesaving treatments to market faster. And the EPA, based on the need for further scientific analysis, delayed the greenhouse gas permitting rules for biomass.
I’ve also ordered agencies to find ways to make regulations more flexible for small businesses. And we’ve turned a tangle of fuel economy regulations and pending lawsuits into a single standard that will reduce our dependence on foreign oil, save consumers money at the pump and give car companies the certainty that they need -- all negotiated by the various stakeholders without the need for congressional legislation.
But ultimately, winning the future is not just about what the government can do for you to succeed. It’s also about what you can do to help America succeed.
So we were just talking about regulations. Even as we eliminate burdensome regulations, America’s businesses have a responsibility as well to recognize that there are some basic safeguards, some basic standards that are necessary to protect the American people from harm or exploitation. Not every regulation is bad. Not every regulation is burdensome on business. A lot of the regulations that are out there are things that all of us welcome in our lives.
Few of us would want to live in a society without rules that keep our air and water clean; that give consumers the confidence to do everything from investing in financial markets to buying groceries. And the fact is, when standards like these have been proposed in the past, opponents have often warned that they would be an assault on business and free enterprise. We can look at the history in this country. Early drug companies argued the bill creating the FDA would "practically destroy the sale of ... remedies in the United States." That didn’t happen. Auto executives predicted that having to install seatbelts would bring the downfall of their industry. It didn’t happen. The President of the American Bar Association denounced child labor laws as "a communistic effort to nationalize children." That’s a quote.
None of these things came to pass. In fact, companies adapt and standards often spark competition and innovation. I was travelling when I went up to Penn State to look at some clean energy hubs that have been set up. I was with Steve Chu, my Secretary of Energy. And he won a Nobel Prize in physics, so when you’re in conversations with him you catch about one out of every four things he says. (Laughter.)
But he started talking about energy efficiency and about refrigerators, and he pointed out that the government set modest targets a couple decades ago to start increasing efficiency over time. They were well thought through; they weren’t radical. Companies competed to hit these markers. And they hit them every time, and then exceeded them. And as a result, a typical fridge now costs half as much and uses a quarter of the energy that it once did -- and you don’t have to defrost, chipping at that stuff -- (laughter) -- and then putting the warm water inside the freezer and all that stuff. It saves families and businesses billions of dollars.
So regulations didn’t destroy the industry; it enhanced it and it made our lives better -- if they’re smart, if they’re well designed. And that’s our goal, is to work with you to think through how do we design necessary regulations in a smart way and get rid of regulations that have outlived their usefulness, or don’t work.
I also have to point out the perils of too much regulation are also matched by the dangers of too little. And we saw that in the financial crisis, where the absence of sound rules of the road, that wasn’t good for business. Even if you weren’t in the financial sector it wasn’t good for business. And that’s why, with the help of Paul Volcker, who is here today, we passed a set of common-sense reforms.
The same can be said of health insurance reform. We simply could not continue to accept a status quo that’s made our entire economy less competitive, as we’ve paid more per person for health care than any other nation on Earth. Nobody is even close. And we couldn’t accept a broken system where insurance companies could drop people because they got sick, or families went into bankruptcy because of medical bills.
I know that folks here have concerns about this law. And I understand it. If you’re running a business right now and you’re seeing these escalating health care costs, your instinct is if I’ve got even more laws on top of me, that’s going to increase my costs even more. I understand that suspicion, that skepticism.
But the non-partisan congressional watchdogs at the CBO estimate that health care tax credits will be worth nearly $40 billion for small businesses over the next decade -- $40 billion, directly to small businesses who are doing the right thing by their employees.
And experts –- not just from the government, but also those commissioned by the Business Roundtable –- suggest that health insurance reform could ultimately save large employers anywhere from $2,000 to $3,000 per family -- your employees and your bottom line.
I’ve said in the State of the Union and I’ll repeat here today: I am willing and happy to look at other ideas to improve the law, including incentives to improve patient safety and medical malpractice reforms. And I want to correct a flaw that’s already placed an unnecessary bookkeeping burden on too many small businesses, and I appreciate the Chamber’s help in doing that.
But we have to recognize that some common-sense regulations often will make sense for your businesses, as well as your families, as well as your neighbors, as well as your coworkers. Of course, your responsibility goes beyond recognizing the need for certain standards and safeguards. If we’re fighting to reform the tax code and increase exports to help you compete, the benefits can’t just translate into greater profits and bonuses for those at the top. They have to be shared by American workers, who need to know that expanding trade and opening markets will lift their standards of living as well as your bottom line.
We can’t go back to the kind of economy and culture that we saw in the years leading up to the recession, where growth and gains in productivity just didn’t translate into rising incomes and opportunity for the middle class. That’s not something necessarily we can legislate, but it’s something that all of us have to take responsibility for thinking about. How do we make sure that everybody’s got a stake in trade, everybody’s got a stake in increasing exports, everybody’s got a stake in rising productivity? Because ordinary folks end up seeing their standards of living rise as well. That’s always been the American promise. That’s what JFK meant when he said, "A rising tide lifts all boats." Too many boats have been left behind, stuck in the mud.
And if we as a nation are going to invest in innovation, that innovation should lead to new jobs and manufacturing on our shores. The end result of tax breaks and investments can’t simply be that new breakthroughs and technologies are discovered here in America, but then the manufacturing takes place overseas. That, too, breaks the social compact. It makes people feel as if the game is fixed and they’re not benefiting from the extraordinary discoveries that take place here.
So the key to our success has never been just developing new ideas; it’s also been making new products. So Intel pioneers the microchip, then puts thousands to work building them in Silicon Valley. Henry Ford perfects the assembly line, and then puts a generation to work in the factories of Detroit. That’s how we built the largest middle class in the world. Those folks working in those plants, they go out and they buy a Ford. They buy a personal computer. And the economy grows for everyone. And that’s how we’ll create the base of knowledge and skills that propel the next inventions and the next ideas.
Right now, businesses across this country are proving that America can compete. Caterpillar is opening a new plant to build excavators in Texas that used to be shipped from Japan. In Tennessee, Whirlpool is opening their first new U.S. factory in more than a decade. Dow is building a new plant in Michigan to manufacture batteries for electric vehicles. A company called Geomagic, a software maker, decided to close down its overseas centers in China and Europe and move their R&D here to the United States. These companies are bringing jobs back to our shores. And that’s good for everybody.
So if I’ve got one message, my message is now is the time to invest in America. Now is the time to invest in America. (Applause.) Today, American companies have nearly $2 trillion sitting on their balance sheets. And I know that many of you have told me that you’re waiting for demand to rise before you get off the sidelines and expand, and that with millions of Americans out of work, demand has risen more slowly than any of us would like.
We’re in this together, but many of your own economists and salespeople are now forecasting a healthy increase in demand. So I just want to encourage you to get in the game. As part of the bipartisan tax deal we negotiated, with the support of the Chamber, businesses can immediately expense 100 percent of their capital investments. And as all of you know, it’s investments made now that will pay off as the economy rebounds. And as you hire, you know that more Americans working will mean more sales for your companies. It will mean more demand for your products and services. It will mean higher profits for your companies. We can create a virtuous circle.
And if there’s a reason you don’t share my confidence, if there’s a reason you don’t believe that this is the time to get off the sidelines –- to hire and to invest -– I want to know about it. I want to fix it. That’s why I’ve asked Jeff Immelt of GE to lead a new council of business leaders and outside experts so that we’re getting the best advice on what you’re facing out there –- and we’ll be holding our first meeting two weeks from now, on the 24th. So you can get your emails in early, with your ideas, with your thoughts about how we keep moving forward to create this virtuous cycle.
Together, I am confident we can win the competition for new jobs and industries. And I know you share my enthusiasm. Here’s one thing I know. For all the disagreements, Tom, that we may have sometimes on issues, I know you love this country. I know you want America to succeed just as badly as I do.
So, yes, we’ll have some disagreements; and, yes, we’ll see things differently at times. But we’re all Americans. And that spirit of patriotism, and that sense of mutual regard and common obligation, that has carried us through far harder times than the ones we’ve just been through.
And I’m reminded, toward the end of the 1930s, amidst the Depression, the looming prospect of war, FDR, President Roosevelt, realized he would need to form a new partnership with business if we were going to become what he would later call the "arsenal of democracy." And as you can imagine, the relationship between the President and business leaders during the course of the Depression had been rocky at times. They’d grown somewhat fractured by the New Deal.
So Roosevelt reached out to businesses, and business leaders answered the call to serve their country. After years of working at cross purposes, the result was one of the most productive collaborations between the public and private sectors in American history.
Some, like the head of GM, hadn’t previously known the President, and if anything had seen him as an adversary. But he gathered his family and he explained that he was going to head up what would become the War Production Board. And he said to his family, "This country has been good to me, and I want to pay it back." I want to pay it back.
And in the years that followed, automobile factories converted to making planes and tanks. And corset factories made grenade belts. A toy company made compasses. A pinball machine maker turned out shells. 1941 would see the greatest expansion of manufacturing in the history of America. And not only did this help us win the war; it led to millions of new jobs and helped produce the great American middle class.
So we have faced hard times before. We have faced moments of tumult and moments of change. And we know what to do. We know how to succeed. We are Americans, and as we have done throughout our history, I have every confidence that once again we will rise to this occasion; that we can come together, we can adapt and we can thrive in this changing economy. And we need to look no further than the innovative companies in this room. If we can harness your potential and the potential of your people across this country, I think there’s no stopping us.
So thank you, God bless you, and may God bless the United States of America. (Applause.)
• NATIONAL BLACK HIV/AIDS AWARENESS DAY •
White House, Feb. 7, 2011:
Valerie Jarrett Commemorates National Black HIV/AIDS Awareness Day
To commemorate National Black HIV/AIDS Awareness Day, Senior Advisor to President Obama Valerie Jarrett shared her heart-felt thoughts on the importance of combating HIV/AIDS. Go here for resources, tools, and additional information.
White House Blog:
National Black HIV/AIDS Awareness Day: Coming Together to Fight HIV/AIDS
Posted by Jeffrey S. Crowley
.... National Black HIV/AIDS Awareness is not just a day to increase awareness, but a day to act on your own health.
• Do you know your status? If not, text your zipcode to 566948 ("KNOWIT") to find and HIV testing site near you or go to HIVtest.org.
• You can also call 1-800-CDC-INFORMATION for more information and testing sites in your area.
• Visit www.aids.gov for Federal resources, events in your area and tools to commemorate National Black HIV/AIDS Awareness Day.
• WHITE HOUSE PRESS BRIEFING •
White House, Feb. 7, 2011:
2/7/11: White House Press Briefing
White House Press Briefings are conducted most weekdays from the James S. Brady Press Briefing Room in the West Wing.
Office of the Press Secretary, Feb. 7, 2011:
White House Press Briefing
.... MR.GIBBS: Well, I think, Ben, what the President was referring to is that, as you heard him say on Friday, that we have the beginnings of a process that is taking place....
.... Words are not enough. It is actions toward a meaningful change that the Egyptian people are most looking for....
.... this thing does change very quickly, hour by hour.
Understand if you take half a step back what we’ve seen happen over the course of 10 to 14 days. You’ve heard me describe it. You’ve seen some monumental changes in Egypt: a leader say he’s not going to run for reelection; a leader say that his son won’t be running in his place for election; the appointment of a Vice President and the tasking of that Vice President to lead a process to result in a free and fair election -- many other points along the way. But I think that is important.
Again, the most important thing is that there has to be a process toward meaningful change, that we have to see, again, the government sit with a broad cross-section of society that makes up -- when I say the opposition, people that aren’t in government -- to get us toward the free and fair elections that we know ultimately will be a result of this....
.... those that will be involved in the discussions about what happens next in Egypt, as we have said throughout many occasions, will not be determined by us....
.... But democracy is -- again, I said probably more than a week ago -- democracy is not one group hijacking a process so that they can take power from another group that they didn’t think fairly represented their views and their rights. That’s not democracy. Democracy has to be a broad section of people that are represented in what would be a free and fair election....
.... and I think it is very important to restate as we have said many times, we will be a partner to a government that does exactly what I describe and we would expect that that partner would uphold particularly the treaties and the obligations that the government of Egypt and ultimately the people of Egypt have entered into.
Q: I’m asking in particular about the Muslim Brotherhood....
MR.GIBBS: Well, I mean -- look, again, who is involved in the larger process is up to the Egyptians to determine, understanding, again, that the only -- I think it would be horribly inaccurate to simply say that there are two factions in Egypt -- one is the Muslim Brotherhood and the other is the government of Egypt. That’s clearly not the case and clearly wasn’t the case in what we’ve seen transpire on the streets.
But obviously, as the President said, the anti-American rhetoric and the anti -- the rhetoric that goes very counter to the very regional peace and stability that I spoke of is of course not something that is supported by the United States.
Q: .... In his speech the President said to the Chamber leaders, ask yourselves what you can do to hire American workers, to support the American economy.... Doesn’t he think they’re already doing that?
MR.GIBBS: Well, look, we are -- look, I think it is clear we are coming out of a period that we have not seen in our country’s history in probably the 80 or 90 years -- the economic collapse that we saw, the jobs that were lost as a result of it.
Obviously, what the President wants to see and wants to have a continued discussion on are ways that we can foster ideas for innovation, for building, for education, that continue to give business confidence in the strengthening of our economy. That's how they’re going to make decisions. And we want to do what we can to help them make decisions to hire folks here in this country because they feel like the economy is getting stronger and coming back....
Q: Robert, what is the U.S. assessment of how badly the protests in Egypt are hurting its economy?
MR.GIBBS: Well, look, I think there's -- without getting into the assessments that we may discuss in private, I think you can see there's a lot of reporting about concern about food and fuel prices inside of Egypt. And as we talked about last week, we were concerned, and there have been several meetings on how we help get commodities that are either close or at the edge of at entryways or in ports into the cities where they’re needed most. Obviously we are concerned about capital that might leave and obviously we continue to monitor to see whether -- what impact some of these -- all of these actions might ultimately have on the global economic recovery....
Q: And while you are weighing, at least, or threatening on one hand, to look at your aid policy towards Egypt based on how they respond to the protesters, are you also looking at potential financial help to help the country because of this impact?
MR.GIBBS: Well, look, I think, again, we have had discussions about ways to assist the movement of goods and services, commodities, throughout the country. Obviously the President has discussed on a lot of his conversations with other world leaders about the situation not just what the United States but what other countries can do that are closer in the region to help the process of business and commerce. Obviously you’ve got banks that are opening back up again and such.
Q: .... A lot of people from the Chamber were hoping or expecting that the President today would outline some kind of a specific way forward for the Panama and Colombia trade pacts....
MR.GIBBS: Well, be patient. That's all I would say. I mean, I think, look -- and let me expand on that a little bit. I mean, we picked up an agreement with South Korea that had not made any progress. We spent a lot of time working on that agreement to ensure that all of the stakeholders felt like it represented the best interests of this country.
We walked away from what would have been a nice PR hit in Seoul because we didn't think the agreement did what it needed to do for us -- only to come back and get an agreement that we thought was even better, which then got stakeholders from the left and the right, liberals and conservatives, business and labor to support the agreement that we did come up with. I think the President believes that is a model for moving forward on other trade pacts like Colombia and Panama. And as for that, I’d stay tuned....
.... We’d like to move forward and those are discussions that are beginning....
Q: One other thing, on Sarah Palin. Any reaction to the remarks that she made about Egypt being the President’s 3:00 a.m. call that went to an answering machine?
MR.GIBBS: I got to tell you, I read that answer several times, and I still don't really know what she said....
Q: Could you -- from the administration’s point of view, what exactly is the role of (Egyptian Vice President) Suleiman and --
MR.GIBBS: The role of Suleiman is -- as I said to Dan, he is the individual tasked with the government’s part of a process toward meaningful change. And that change -- the change that ultimately leads to a recognition of rights, a renouncement of the emergency law, and the emergence of free and fair elections.
Again, this is about a process. It’s not about a personality. And it is important that the people see progress toward that meaningful change, just as it is important that those in the opposition take part in this process and put forward what they want to see come out of this, so that there is a meaningful discussion and meaningful negotiations about what Egypt is going to look like going forward. Because as the President said, it is clear Egypt is not going back to what it was....
MR.GIBBS: Obviously we get some update on who is involved in the process. But, again, I want to be clear, it’s not for us to determine who should and shouldn’t be involved in that process. For the process to be a legitimate process, it has to include a broad cross-section of those that are in Egyptian society, in Egyptian civil society, and not involved in that government. And there are -- this is a process that is going to be at times bumpy because when for 28 years you have had one leader without a series of -- without really a robust opposition, it’s going to take some time to work this stuff out.
But I think what is important is that process -- as the President has said, the process has to begin now, the process has to move forward, and the people in Egypt will know whether that process is moving forward at the pace that they need it to move forward, and whether or not the concerns that have brought them to Tahrir Square are being addressed. And I think that’s what the world is watching.
Q: Do you guys feel like you have an accurate way of assessing what the average Egyptian believes or wants at this point....
MR.GIBBS: Well, I think that one of the things that the embassy -- and we’ve talked about this -- one of the things that the embassy is tasked with and does well in Egypt is to have conversations with a broad cross-section of people in Egypt. People -- and this isn’t just potential -- or people that are just focused on government. Obviously, there’s business, there’s cultural, there’s a whole cross-section of people that are important for us to communicate with, and those are primarily done, and done fairly routinely, out of the embassies that we have around the world. And I think our ambassador there is doing a remarkable job....
.... Our policy toward Egypt is we watch and we are strongly encouraging the process of meaningful change transpiring, resulting in a more open, a more transparent society, a more responsive government; one that the United States can continue to partner with; one that results in -- a process that results in free and fair elections, and one that is democratically elected....
.... Q: Today, Robert, there was a release of 150 documents in Great Britain on the al-Megrahi-Lockerbie case, showing that contrary to prior statements by the Labor government, the Labor government may indeed have developed a policy behind the scenes to do all they could to ensure the release of the Lockerbie bomber....
MR.GIBBS: Well, all I'll say on this is I think our position throughout this process was public and very clear. We did not think in any way, shape or form that his release was in anybody’s interest. We continue to believe that....
Q: .... a week from today the President is going to be releasing his budget.... Is there any outreach that would go on before the budget release to members of Congress, especially new members of Congress, to try and make sure that some of these proposals actually have life this year?
MR.GIBBS: Well, let me see -- we can check and see if there was anything -- obviously the budget gets -- the process of putting together a budget starts -- has been going on for many, many months. So I think obviously this is -- look, the introduction of the President’s budget, as you saw in Jack Lew’s op-ed and you’ve heard the President discuss, will contain some very significant and some very tough decisions -- significant cuts and some tough decisions, resulting in the five-year non-security discretionary freeze, about $400 billion in cuts, and will result in our government spending the smallest share as a percentage of GDP going back to the Eisenhower administration.
So we’ve made some significant cuts. And the truth is this is a -- this will be an ongoing process and an ongoing discussion that will be had over the course of many months. The President is anxious to hear from Democrats and Republicans. We understand we have to make some serious changes in our fiscal policies going forward.
Q: But does that mean that the five-year freeze is what we should be looking for as far as tough decisions, or is there -- will he say anything beyond that regarding --
MR.GIBBS: Jonathan, I do appreciate how everybody puts out ideas and then they’re quickly cast aside. It’s a $400 billion 10-year idea that takes us to the smallest share of government spending as a product of our GDP since Dwight D. Eisenhower was roaming these halls. So I think just to throw that off as, well, so do we already know what’s in it -- you’ll get some more specifics, but obviously that’s the top line of what you’re going to see....
Q: Robert, did the White House solicit an invitation from the Chamber to address them today?
MR.GIBBS: (Answer provided later: The President’s speech today was at the invitation of the US Chamber of Commerce.)....
Q: .... how much influence does the United States or does the President feel he has to encourage third, fourth, or fifth options for Egypt?
MR.GIBBS: Well, I think we have and we continue to reiterate that the process must include a broad cross-section of those in Egyptian society and representing the viewpoints of that group of people. And it’s clear that -- it is clear as we watch what transpired over the course of many days that this was not a series of protests organized by one group. They were the cares and concerns of a lot of different people in Egypt. And democracy, which we’re supportive of in Egypt, has to include that broad cross-section. There’s not just two factions in Egypt.
Q: But there’s one really organized one and then a bunch of other ones who turned out to protest. That’s what I’m asking you, how you can --
MR.GIBBS: I think you just proved my point.
Q: Well, okay, but the other thing you said earlier, we expect them to uphold all the treaties and obligations, do you feel that what -- whoever and whatever is the next government of Egypt should be bound by the previous government’s --
MR.GIBBS: Yes -- just as we are and just as democracies throughout the world are.
You want to try it one more time? (Laughter.)....
Q: Apparently Vice President Suleiman has made remarks on Egyptian television that Egypt is not ready for democracy....
MR.GIBBS: I don’t know that there’s been any contact with Vice President Suleiman today, Sheryl. Again, I don’t need anybody to call the Vice President of Egypt to know that our government and many past administrations have believed strongly that the emergency law needed to be lifted. It is quite clear that what we have had in Egypt for three decades is not what we’re going to have in Egypt moving forward. So the notion that Egypt isn’t ready for democracy I think runs quite counter to what we see happening in Tahrir Square and on the streets on cities throughout the country of Egypt.
It is incumbent upon the government to play a meaningful role and to encourage a meaningful process. It’s clear that statements like that are not going to be met with any agreement by the people of Egypt because they don’t address the very legitimate grievances that we’ve seen expressed as a result of these protests....
.... I think it’s important that we can’t see meaningful progress if one side is as -- where Vice President Suleiman’s remarks are today, and the other side is, we’re not going to do anything until everything changes. The process has to be dynamic and we have to see the government take part in a meaningful way and outline a series of steps and a timeline that the Egyptian people are comfortable with. And we have to see those that are not involved in government put forward a set and a series of ideas of what they’d like to see, so that negotiations can take place and we can move forward.
I don't think it’s in anybody’s interest to have two sides be so far apart and the process be stopped. I don't think that's a process.
Now, the leaders -- who picks the leaders of Egypt, that's going to be determined by the Egyptians. That is not -- and we’re not saying -- I want to be clear, this government does not come down on the side of, one way or the other, who those leaders are. That's a process for the Egyptians....
But again, I guess the point I’m trying to make, Mark, is that if one side says we’re not going to change at all, and one side says we’re not going to participate until everything changes, you’re going to simply have -- you’re going to have a very static situation. And I think what is important is that we have to have and see meaningful progress, and both sides have to be involved in that progress....
Q: Robert, what did the President think of his reception at the Chamber of Commerce speech?
MR.GIBBS: Well, Ann, the President didn’t go there so that everyone would clap when he came in the room. I think he went there to -- and you go and deliver these speeches because, I think as the President said in the very beginning, we have a lot of work that we have to do together, and the only way we’re going to make progress is if we work together on a whole host of issues in a very challenging global economy.
I think the President is clear that we are not going to agree on everything. And we’ve seen some of that transpire over the past two years. But as the President has said, we’re not looking to refight the battles of the past two years. We’ve got significant challenges that continue to lay ahead of us and the only way we’re going to make progress is to tackle those challenges together.
Look, I think -- let’s take the President’s infrastructure proposal as a way of outbuilding our worldwide competition. To watch that endorsed by the head of the Chamber and the head of the AFL-CIO is exactly the type of bringing people together that I think the President believes has to happen in order for us to break out of the boxes of Washington and make some real progress....
Q: Robert, is this your last week with us?
MR.GIBBS: It is. I am going to miss almost all of you. Thanks, guys. (Laughter.)
• ADVISE THE ADVISOR •
White House, Feb. 7, 2011:
Advise the Advisor: Your Direct Line to the White House
Advise the Advisor is a new program to help senior staff at the White House stay connected to the American people. Think of this as your direct line to the senior staff at the White House. Visit WhiteHouse.Gov/Advise to give us your advice, feedback and opinions about key issues. We'll read through as much of your feedback as possible and post a summary of what you had to say.
The White House Blog, Feb. 7, 2011:
Advise the Advisor – Your Direct Line to the White House
Posted by Macon Phillips
Staying connected to the American people is incredibly important to President Obama. That’s why he tries to get out of Washington as much as he can and it’s why he reads ten letters from Americans across the country every day. And it’s why we’re kicking off a new program today called Advise the Advisor.
Think of it as your direct line to senior staff at the White House.
Here’s how it works: one of the President’s closest advisors will post a short video to let you know more about what’s going on here at the White House and ask for your advice, opinions and feedback on important issues. We’ll go through as much of your feedback as possible and post a summary of what you’ve told us later in the week.
This week, David Plouffe, Senior Advisor to the President, is kicking off the series, focusing on President Obama’s vision for winning the future by out-innovating, out-educating, and out-building rest of the world, by reforming our government to make it smarter, more effective and better prepared for the 21st century, and by taking responsibility for our debts and deficits.
Check out his video and then head over to WhiteHouse.gov/Advise to let us know how American innovation is affecting your community and what we can do to help remove the obstacles to innovation that you see where you live.
• PROTECTING CONSUMERS•
White House Blog, Feb. 7, 2011:
Robin's Story & Andrew's Story: A New Bureau to Protect Consumers
Posted by Kori Schulman
On July 21, 2010 President signed the Wall Street Reform bill into law. One part of that law created the new Consumer Financial Protection Bureau to protect and empower American consumers with the strongest consumer protections in history.
Elizabeth Warren, who is leading efforts to get the Bureau up and running, recently announced their new website and today, she'd like you to meet Robin Fox, a 7th grade science teacher from Rome, GA, and Andrew Giordano, a retired Vietnam veteran from Locust Point, MD -- a couple of Americans whose stories illustrate some of the unfair practices people have encountered and how the Consumer Financial Protection Bureau will work to prevent it from happening again.
Watch their stories:
White House, Feb. 7, 2011:
Andrew's Story: Protecting Consumers from Unexpected Overdraft Fees
Elizabeth Warren introduces Andrew Giordano, a retired Baltimore police officer and Vietnam veteran who manages a fitness center for seniors. In 2009, his bank made a mistake that caused confusion about a replacement debit card for one of his accounts and automatically enrolled Andrew in an "overdraft" protection that he never asked for—a practice that has since been prohibited. Andrew was hit with hundreds of dollars in overdraft fees and when he discovered the bank's error and explained the situation, the bank was willing to refund only part of the fees. The Consumer Financial Protection Bureau will examine big banks to ensure that they are following the rules that now require banks to give consumers a real choice of whether to join overdraft protection programs for ATM and debit card transactions. The CFPB will update those rules to respond to changes in the marketplace over time. Learn more at www.consumerfinance.gov.
White House, Feb. 7, 2011:
Robin's Story: Protecting Consumers from Unfair Practices on Credit Cards
Elizabeth Warren introduces Robin Fox, a seventh-grade science teacher from Georgia. Her credit card company increased the rate on her existing credit card balance from 10.90% to 17.90%, even though she paid her account on time every month. The increase has been particularly difficult for her family because her husband's landscaping business has been hard hit recently by the financial crisis. The Consumer Financial Protection Bureau (CFPB) will enforce the Credit CARD Act, which President Obama signed in 2009 to ban credit card issuers from arbitrarily raising rates on existing balances and other unfair practices. The CFPB will also be responsible for updating the credit card rules moving forward. Learn more at www.consumerfinance.gov.
The Consumer Financial Protection Bureau will enforce the Credit CARD Act, which President Obama signed in 2009 to ban credit card issuers from arbitrarily raising rates on existing balances and other unfair practices. The CFPB will also be responsible for updating the credit card rules moving forward.
The Consumer Financial Protection Bureau will examine big banks to ensure that they are following the rules that now require banks to give consumers a real choice of whether to join overdraft protection programs for ATM and debit card transactions. The CFPB will update those rules to respond to changes in the marketplace over time.
Visit ConsumerFinance.gov to learn more about the Bureau and submit suggestions.
• PRESIDENT WITH YOUNG LEADERS AT PENN STATE •
Raw Video: President Obama Drops-By a Meeting with Young Leaders at Penn State
Posted by Kalpen Modi
President Obama made a surprise drop-by at a roundtable conversation with young Americans at Penn State University during his visit last week. The roundtable was one of four held by the White House Office of Public Engagement surrounding the President’s visit to Central Pennsylvania. The roundtables provided an opportunity for a diverse group of young leaders to sit down for a candid conversation with the White House on key issues the President has been working on, including jobs and the economy, the cost of education, civic engagement, energy, innovation, housing, Sudan, and equal rights.
Check out some of what the President said during his visit:
White House, Feb. 7, 2011:
President Drops By Youth Roundtable
President Obama drops by a Youth Engagement Roundtable at Penn State University. Watch as the President speaks about how the next generation will contribute to winning the future for America.
Leaders who participated in the White House roundtables included members of the Council of Commonwealth Student Governments, Penn State Graduate and Undergraduate Student Governments, Interfraterntiy Council, Panhellenic Association, nonprofits, Engineering Honor Society, College Republicans & College Democrats, Rainbow Roundtable, Environmental Society, and a number of other constituency and issue-related organizations and youth leaders.