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Clean Energy Jobs Powering Economic Recovery

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Remarks by the President on Clean Energy Jobs

OPOWER, Arlington, Virginia

11:43 A.M. EST

THE PRESIDENT: Good morning, everybody. It is great to be here at OPOWER. And just looking around, this looks like a fun place to work. (Laughter.) The work you do here, as we just heard, is making homes more energy efficient, it's saving people money, it's generating jobs and it's putting America on the path to a clean energy future. And I understand last year that you doubled your workforce thanks to Bonnie -- (applause) -- you’re hoping to hire another hundred workers this year. And so this is a model of what we want to be seeing all across the country. Our goal for the economy is to show similar job growth in the months ahead.

This morning we learned that in February our economy lost an additional 36,000 jobs. Now, this is actually better than expected, considering the severe storms all along the East Coast are estimated to have had a depressing effect on the numbers. And it shows that the measures that we’re taking to turn our economy around are having some impact. But even though it's better than expected, it's more than we should tolerate.

Far too many Americans remain out of work. Far too many families are still struggling in these difficult economic times. And that's why I'm not going to rest, and my administration is not going to rest, in our efforts to help people who are looking to find a job; to help business owners who want to expand feel comfortable hiring again. And we're not going to rest until our economy is working again for the middle class, and for all Americans.

And that's why my immediate priority is not only providing relief to people who are out of work, but also to help the private sector create jobs and put America back to work. Earlier this week, after breaking through a political logjam that some of you probably saw if you were watching TV, Congress passed and I signed into law a bill that extends unemployment insurance to help people who've been laid off get through these hard times. It also extended COBRA so that folks who've lost their jobs don't lose their health insurance, and it extended financing for small businesses, and makes it possible for 2,000 furloughed transportation workers to go back to work.

So signing this bill and getting relief out the door swiftly is absolutely essential. But it's only a temporary step. The relief I signed into law will last about a month. And that's why I'm calling [on] Congress to extend this relief through the end of the year. And because the best form of economic relief is a quality job, I'm also calling on Congress to pass jobs measures that cut taxes, increase lending, incentivize expansion for businesses both large and small.

Now, both the House and the Senate have passed a bill that would give businesses a payroll tax refund for every person hired this year. And for companies that are considering expanding, this credit could help them decide to bring an extra employee or two this year. So for companies like OPOWER that are doing pretty well and already expanding, the tax credit may help them decide to hire even more workers more quickly. So instead of a hundred, maybe we get 110, 115. We'll see. (Applause.)

This bill would also encourage small companies to expand by permitting them to write off expenses for new equipment. And while it's by no means enough, this legislation is an important step on the road to recovery, and I look forward to signing it into law.

Now, even as we fight to help the private sector create more jobs, and even as we fight to bring about a full economic recovery, we know that there have been success stories all across America. OPOWER is one of those success stories. This is a company that works with utilities to help folks understand their energy costs and how they can save money on their energy bills. And for the press, if you weren't able to hear, this board testifies to the number of kilowatt hours that have been saved, the amount of money that's gone back into consumers' pockets, and the amount of carbon that has been taken out of the atmosphere as a consequence of the great work that these people at OPOWER are doing.

Now, part of the reason I suspect you're growing is that you're doing your jobs well. But I also know that a big part of the reason is that you're seizing the opportunities of the future. The jobs of tomorrow will be jobs in the clean energy sector, and this company is a great emblem for that. That's why my administration is taking steps to support a thriving clean energy industry across this country -- an industry that's making solar panels, and building wind turbines, producing cutting-edge batteries for fuel-efficient cars and trucks, and helping consumers get more control over their energy bills.

And that's also why earlier this week I urged Congress to enact a new initiative we're calling Homestar that would offer homeowners rebates for making their homes more energy-efficient -- rebates worth up to $1,500 for individual home upgrades and up to $3,000 for retrofitting their entire home. So if they're getting this good information from OPOWER and they see that, boy, that drafty window is costing me a couple of hundred bucks a year, they're now going to have an incentive to go to Home Depots or go to Lowes to hire a certified contractor and make the changes that will ultimately pay for themselves, improve our environment, and improve our economy.

I want to thank, by the way, your home state senator, Mark Warner, for his great work on Homestar in the Senate.

Think about the way that the rebates we're talking about could help spur private sector job growth. It could not only help businesses like OPOWER to help consumers make their homes more energy efficient, it's also going to create business for the local contractors and the companies hired to upgrade homes. These companies then, in turn, have to purchase supplies and that creates business for retailers. These retailers would need to restock their shelves, and that creates business for manufacturers. And almost all the goods that are required to make homes more energy efficient are actually produced right here in the United States of America. It's very hard to ship an energy-efficient window across an ocean.

So, yes, people who are out of work right now need some immediate relief. Yes, we need to extend unemployment insurance and COBRA to help Americans weather these tough times. And, yes, we've got to do everything we can to help the private sector create jobs right now.

But even as we do, we also need to replicate the success of clean energy companies like OPOWER. We need to invest in the jobs of the future and in the industries of the future, because the country that leads in clean energy and energy efficiency today, I'm absolutely convinced, is going to lead the global economy tomorrow. I want that country to be the United States of America. I want companies like OPOWER to be expanding and thriving all across America. It's good for consumers. It's good for our economy. It's good for our environment.

It's wonderfully exciting to be here. And I think when you look at this group that's gathered here, you can see the future in this company. So thanks for the great work you guys are doing. Let's see if we can replicate your success all across the country.

Thank you very much, everybody. (Applause.)

Obama:Ending Worst Practices Of Health Insurance Industry

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President Obama describes how American families will have more control over their health care this year, after health reform passes.

Here are a few more points about how health insurance reform measures will benefit Americans this year:

Hold Insurance Companies Accountable:

Eliminate lifetime limits and restrictive annual limits on benefits in all new plans;
Prohibit rescissions of health insurance policies in all individual plans;
Prohibit pre-existing condition exclusions for children in all new plans;
Require premium rebates to enrollees from insurers with high administrative expenditures and require public disclosure of the percent of premiums applied to overhead costs;
Establish a process for the annual review of unreasonable increases in premiums, requiring State insurance commissioners to work with the HHS Secretary and States.

Protect Consumers:

Provide grants to States to support health insurance consumer assistance and ombudsman programs to help consumers;
Ensure consumers have access to an effective internal and external appeals process to appeal new insurance plan decisions;
Require all insurance plans to use uniform coverage documents so consumers can make easy comparisons when shopping for health insurance;
Establish an internet portal to assist Americans in identifying coverage options;
Prohibit insurers from discriminating in favor of highly compensated employees by charging them lower premiums.

Ensure Affordable Choices and Quality Care:

Provide immediate access to insurance for uninsured Americans who are uninsured because of a pre-existing condition through a temporary high-risk pool;
Create a temporary re-insurance program for early retirees;
Require new plans to cover an enrollee’s dependent children until age 26;
Require new plans to cover preventive services and immunizations without cost-sharing;
Offer tax credits to small businesses to purchase coverage;
Facilitate administrative simplification to lower health system costs.

Health Care Reform Needs An Olympic Effort

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President Obama takes a moment to congratulate our Olympic athletes. Discussing the unity and pride Americans feel in cheering them on, the President relates that sentiment to his own desire for bipartisanship in Washington. He praises the bipartisan meeting days before and talks about moving forward on health reform.

Obama And Bipartisan Health Care Summit- Full Video

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President Obama talks with US Senators and Representatives of both parties about health care reform.

Al Franken Doesn't Trust Comcast NBC Merger

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Senator Al Franken blasts a proposed merger between Comcast and NBC Universal at a Judiciary Committee hearing on the merger.

As some of you may know, I’m not a lawyer, but I used to be in show business. In fact, I worked for NBC for many years. And what I know from my previous career has given me reason to be concerned—let me rephrase that, very concerned—about the potential merger of Comcast and NBC Universal.

Let me start with something pretty basic: it matters who runs our media companies. The media are our source of entertainment, but they’re also the way we get our information about the world. So when the same company produces the programs and runs the pipes that bring us those programs, we have a reason to be nervous.

I was at NBC in the 1990s, when Financial Interest and Syndication rules—more commonly known as Fin-Syn--were relaxed and then essentially eliminated. Until then, Fin-Syn rules had prevented networks from owning more than a very small portion of the programs they aired. This was to prevent an inherent conflict of interest.

At that time, NBC executives testified that gutting Fin-Syn would not lead the network to favor its own programming. To the contrary, the NBC President declared, “It is in our self-interest to do everything we can to promote a strong independent production community.”

But by 1992, NBC was the single largest supplier of its own prime-time programming. Today, if an independent producer wants to get its show on a network’s schedule, it’s a routine practice for the network to demand at least part ownership of the show. This is completely contrary to what NBC and the other networks said they would do when they were trying to get Fin-Syn rescinded.

So while I commend NBCU and Comcast for making voluntary commitments as part of this merger, you’ll have to excuse me if I don’t just trust their promises.

To make matters worse, after Fin-Syn, studios started buying up networks—Disney bought ABC, and Viacom, which owns Paramount, bought CBS. I’m worried that this merger could set off another round of media consolidation. The next thing we know, AT&T and Verizon may decide that they also have to buy a Hollywood studio in order to compete. And that would hurt the ability of Minnesotans—and people around the country—to get access to important information and it will make their cable bills go up.

I look forward to hearing today’s testimony, and the opportunity to discuss some of these important issues in more depth. Thank you.

President Obama: Why Question My Faith Or Citizenship?

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Key quote from President Obama at 10:35 "Surely you can question my policies without questioning my faith or my citizenship."

President Obama speaks at the National Prayer Breakfast.

Obama On 2011 Budget - 3 year spending Freeze

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President Obama talks about how discretionary government spending will be frozen for the next three years. Defense, Social Security and Medicare, Medicaid and Veterans Benefits are exempt. More info at www.budget.gov

Transcript:

THE PRESIDENT: Good morning, everybody. This morning, I sent a budget to Congress for the coming year. It's a budget that reflects the serious challenges facing the country. We're at war. Our economy has lost 7 million jobs over the last two years. And our government is deeply in debt after what can only be described as a decade of profligacy.

The fact is, 10 years ago, we had a budget surplus of more than $200 billion, with projected surpluses stretching out toward the horizon. Yet over the course of the past 10 years, the previous administration and previous Congresses created an expensive new drug program, passed massive tax cuts for the wealthy, and funded two wars without paying for any of it -– all of which was compounded by recession and by rising health care costs. As a result, when I first walked through the door, the deficit stood at $1.3 trillion, with projected deficits of $8 trillion over the next decade.

If we had taken office during ordinary times, we would have started bringing down these deficits immediately. But one year ago, our country was in crisis: We were losing nearly 700,000 jobs each month, the economy was in a free fall, and the financial system was near collapse. Many feared another Great Depression. So we initiated a rescue, and that rescue was not without significant cost; it added to the deficit as well.

One year later, because of the steps we've taken, we're in a very different place. But we can't simply move beyond this crisis; we have to address the irresponsibility that led to it. And that includes the failure to rein in spending, as well a reliance on borrowing –- from Wall Street to Washington to Main Street –- to fuel our growth. That's what we have to change. We have to do what families across America are doing: Save where we can so that we can afford what we need.

Now, I think it's very important to understand: We won't be able to bring down this deficit overnight, given that the recovery is still taking hold and families across the country still need help. We will continue, for example, to do what it takes to create jobs. That's reflected in my budget; it's essential. The budget includes new tax cuts for people who invest in small businesses, tax credits for small businesses that hire new workers, investments that will create jobs repairing roads and bridges, and tax breaks for retrofitting homes to save energy.

We also continue to lay a new foundation for lasting growth, which is essential as well. Just as it would be a terrible mistake to borrow against our children's future to pay our way today, it would be equally wrong to neglect their future by failing to invest in areas that will determine our economic success in this new century.

That's why we build on the largest investment in clean energy in history, as well as increase investment in scientific research, so that we are fostering the industries and jobs of the future right here in America.

That's why I've proposed a more than 6 percent increase in funding for the Education Department. And this funding is tied to reforms that raise student achievement, inspire students to excel in math and science, and turn around failing schools which consign too many young people to a lesser future -- because in the 21st century there is no better anti-poverty program than a world-class education.

And that's why we eliminate a wasteful subsidy to banks that lend to college students, and use that money to revitalize community colleges and make college more affordable. This will help us reach the goal I've set for America: By 2020 we will once again have the highest proportion of college graduates in the world.

These are the investments we must make to create jobs and opportunity now and in the future. And in a departure from the way business had been done in Washington, we actually show how we pay for these investments while putting our country on a more fiscally sustainable path.

I've proposed a freeze in government spending for three years. This won't apply to the benefits folks get through Social Security, Medicaid, or Medicare. And it won't apply to our national security –- including benefits for veterans. But it will apply to all other discretionary government programs. And we're not simply photocopying last year's budget; freezing spending does not mean we won't cut what doesn't work to pay for what does.

We have gone through every department's spending line by line, item by item, looking for inefficiency, duplication, and programs that have outlived their usefulness. That's how we freeze discretionary spending. Last year, we found $17 billion in cuts. This year, we've already found $20 billion.

Now, some of these cuts are just common sense. For example, we cut $115 million from a program that pays states to clean up mines that have already been cleaned up. We're also cutting a Forest Service economic development program that strayed so far from any mission that it funded a music festival. And we're saving $20 million by stopping the refurbishment of a Department of Energy science center that the Department of Energy does not want to refurbish.

Other cuts, though, are more painful, because the goals of the underlying programs are worthy. We eliminate one program that provides grants to do environmental clean up of abandoned buildings. That's a mission I support, but there are other sources of private and public funds to achieve it. We also eliminated a $120 million program that allows folks to get their Earned Income Tax Credit in advance. I am a big supporter of the Earned Income Tax Credit. The problem is 80 percent of people who got this advance didn't comply with one or more of the program's requirements.

So I'm willing to reduce waste in programs I care about, and I'm asking members of Congress to do the same. I'm asking Republicans and Democrats alike to take a fresh look at programs they've supported in the past to see what's working and what's not, and trim back accordingly.

Like any business, we're also looking for ways to get more bang for our buck, by promoting innovation and cutting red tape. For example, we consolidate 38 separate education programs into 11. And last fall, we launched the "SAVE Awards" to solicit ideas from federal employees about how make government more efficient and more effective. I'm proud to say that a number of these ideas -- like allowing Social Security appointments to be made online -- made it into our budget.

I also want to note even though the Department of Defense is exempt from the budget freeze, it's not exempt from budget common sense. It's not exempt from looking for savings. We save money by eliminating unnecessary defense programs that do nothing to keep us safe. One example is the $2.5 billion that we're spending to build C-17 transport aircraft. Four years ago, the Defense Department decided to cease production because it had acquired the number requested -- 180. Yet every year since, Congress had provided unrequested money for more C-17s that the Pentagon doesn't want or need. It's waste, pure and simple.

And there are other steps we're taking to rein in deficits. I've proposed a fee on big banks to pay back taxpayers for the bailout. We're reforming the way contracts are awarded, to save taxpayers billions of dollars. And while we extend middle-class tax cuts in this budget, we will not continue costly tax cuts for oil companies, investment fund managers, and those making over $250,000 a year. We just can't afford it.

Finally, changing spending-as-usual depends on changing politics-as-usual. And that's why I've proposed a bipartisan fiscal commission: a panel of Democrats and Republicans who would hammer out concrete deficit reduction proposals over the medium and long term, but would come up with those answers by a certain deadline. I should point out, by the way, that is an idea that had strong bipartisan support, was originally introduced by Senators Gregg on the Republican side and Conrad on the Democratic side; had a lot of Republican cosponsors to the idea. I hope that, despite the fact that it got voted down in the Senate, that both the Republican Leader Mitch McConnell and the Republican Leader in the House John Boehner go ahead and fully embrace what has been a bipartisan idea to get our arms around this budget.

That's also why we're restoring pay-as-you-go: a simple rule that says Congress can't spend a dime without cutting a dime elsewhere. This rule helped lead to the budget surpluses of the 1990s, and it's one of the most important steps we can take to restore fiscal discipline in Washington.

You can read more about the budget at budget.gov -- very easy to remember -- budget.gov. But the bottom line is this: We simply cannot continue to spend as if deficits don't have consequences; as if waste doesn't matter; as if the hard-earned tax dollars of the American people can be treated like Monopoly money; as if we can ignore this challenge for another generation. We can't.

In order to meet this challenge, I welcome any idea, from Democrats and Republicans. What I will not welcome -– what I reject -– is the same old grandstanding when the cameras are on, and the same irresponsible budget policies when the cameras are off. It's time to hold Washington to the same standards families and businesses hold themselves. It's time to save what we can, spend what we must, and live within our means once again.

Thanks very much.

Obama: GOP Focused On Winning Elections, Not Solving Problems-CC

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At this time last year, amidst headlines about banks on the verge of collapse and job losses of 700,000 a month, we received another troubling piece of news about our economy. Our economy was shrinking at an alarming rate – the largest six-month decline in 50 years. Our factories and farms were producing less; our businesses were selling less; and more job losses were on the horizon.

One year later, according to numbers released this past week, this trend has reversed itself. For the past six months, our economy has been growing again. And last quarter, it grew more quickly than at any time in the past six years.

This is a sign of progress. And it’s an affirmation of the difficult decisions we made last year to pull our financial system back from the brink and get our economy moving again.

But when so many people are still struggling – when one in ten Americans still can’t find work, and millions more are working harder and longer for less – our mission isn’t just to grow the economy. It’s to grow jobs for folks who want them, and ensure wages are rising for those who have them. It’s not just about improvements we see in quarterly statistics, but ones people feel in their daily lives – a bigger paycheck; more security; the ability to give your kids a decent shot in life and still have enough to retire one day yourself.

That’s why job creation will be our number one focus in 2010. We’ll put more Americans back to work rebuilding our infrastructure all across the country. And since the true engines of job creation are America’s businesses, I’ve proposed tax credits to help them hire new workers, raise wages, and invest in new plants and equipment. I also want to eliminate all capital gains taxes on small business investment, and help small businesses get the loans they need to open their doors and expand their operations.

But as we work to create jobs, it is critical that we rein in the budget deficits we’ve been accumulating for far too long – deficits that won’t just burden our children and grandchildren, but could damage our markets, drive up our interest rates, and jeopardize our recovery right now.

There are certain core principles our families and businesses follow when they sit down to do their own budgets. They accept that they can’t get everything they want and focus on what they really need. They make tough decisions and sacrifice for their kids. They don’t spend what they don’t have, and they make do with what they’ve got.

It’s time their government did the same. That’s why I’m pleased that the Senate has just restored the pay-as-you-go law that was in place back in the 1990s. It’s no coincidence that we ended that decade with a $236 billion surplus. But then we did away with PAYGO – and we ended the next decade with a $1.3 trillion deficit. Reinstating this law will help get us back on track, ensuring that every time we spend, we find somewhere else to cut.

I’ve also proposed a spending freeze, so that as we increase investments in things we need, like job creation and middle class tax cuts – we cut spending on those we don’t, like tax cuts for oil companies and investment fund managers, and programs that are redundant, obsolete, or simply ineffective. Spending related to Medicare, Medicaid, and Social Security will not be affected – and neither will national security – but all other discretionary government programs will.

Finally, I’ve called for a bi-partisan Fiscal Commission – a panel of Democrats and Republicans who would sit down and hammer out concrete deficit-reduction proposals by a certain deadline. Because we’ve heard plenty of talk and a lot of yelling on TV about deficits, and it’s now time to come together and make the painful choices we need to eliminate those deficits.

This past week, 53 Democrats and Republicans voted for this commission in the Senate. But it failed when seven Republicans who had co-sponsored this idea in the first place suddenly decided to vote against it.

Now, it’s one thing to have an honest difference of opinion about something. I will always respect those who take a principled stand for what they believe, even if I disagree with them.

But what I won’t accept is changing positions because it’s good politics. What I won’t accept is opposition for opposition’s sake. We cannot have a serious discussion and take meaningful action to create jobs and control our deficits if politicians just do what’s necessary to win the next election instead of what’s best for the next generation.

I’m ready and eager to work with anyone who’s serious about solving the real problems facing our people and our country. I welcome anyone who comes to the table in good faith to help get our economy moving again and fulfill this country’s promise. That’s why we were elected in the first place. That’s what the American people expect and deserve. And that’s what we must deliver.

Thank you.

Obama Faces GOP On Its Talking Points -CC

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President Obama speaks to the GOP House Issues forum and debunks many talking points offered as questions by Republican House members.

Transcript:

THE PRESIDENT: Thank you. Thank you very much. Thank you. Please, everybody be seated. Thank you. Thank you, John, for the gracious introduction. To Mike and Eric, thank you for hosting me. Thank you to all of you for receiving me. It is wonderful to be here. I want to also acknowledge Mark Strand, president of the Congressional Institute. To all the family members who are here and who have to put up with us for an elective office each and every day, thank you, because I know that's tough. (Applause.)

I very much am appreciative of not only the tone of your introduction, John, but also the invitation that you extended to me. You know what they say, "Keep your friends close, but visit the Republican Caucus every few months." (Laughter.)

Part of the reason I accepted your invitation to come here was because I wanted to speak with all of you, and not just to all of you. So I'm looking forward to taking your questions and having a real conversation in a few moments. And I hope that the conversation we begin here doesn't end here; that we can continue our dialogue in the days ahead. It's important to me that we do so. It's important to you, I think, that we do so. But most importantly, it's important to the American people that we do so.

I've said this before, but I'm a big believer not just in the value of a loyal opposition, but in its necessity. Having differences of opinion, having a real debate about matters of domestic policy and national security -- and that's not something that's only good for our country, it's absolutely essential. It's only through the process of disagreement and debate that bad ideas get tossed out and good ideas get refined and made better. And that kind of vigorous back and forth -- that imperfect but well-founded process, messy as it often is -- is at the heart of our democracy. That's what makes us the greatest nation in the world.

So, yes, I want you to challenge my ideas, and I guarantee you that after reading this I may challenge a few of yours. (Laughter.) I want you to stand up for your beliefs, and knowing this caucus, I have no doubt that you will. I want us to have a constructive debate. The only thing I don't want -- and here I am listening to the American people, and I think they don't want either -- is for Washington to continue being so Washington-like. I know folks, when we're in town there, spend a lot of time reading the polls and looking at focus groups and interpreting which party has the upper hand in November and in 2012 and so on and so on and so on. That's their obsession.

And I'm not a pundit. I'm just a President, so take it for what it's worth. But I don't believe that the American people want us to focus on our job security. They want us to focus on their job security. (Applause.) I don't think they want more gridlock. I don't think they want more partisanship. I don't think they want more obstruction. They didn't send us to Washington to fight each other in some sort of political steel-cage match to see who comes out alive. That's not what they want. They sent us to Washington to work together, to get things done, and to solve the problems that they're grappling with every single day.

And I think your constituents would want to know that despite the fact it doesn't get a lot of attention, you and I have actually worked together on a number of occasions. There have been times where we've acted in a bipartisan fashion. And I want to thank you and your Democratic colleagues for reaching across the aisle. There has been, for example, broad support for putting in the troops necessary in Afghanistan to deny al Qaeda safe haven, to break the Taliban's momentum, and to train Afghan security forces. There's been broad support for disrupting, dismantling, and defeating al Qaeda. And I know that we're all united in our admiration of our troops. (Applause.)

So it may be useful for the international audience right now to understand -- and certainly for our enemies to have no doubt -- whatever divisions and differences may exist in Washington, the United States of America stands as one to defend our country. (Applause.)

It's that same spirit of bipartisanship that made it possible for me to sign a defense contracting reform bill that was cosponsored by Senator McCain and members of Congress here today. We've stood together on behalf of our nation's veterans. Together we passed the largest increase in the VA's budget in more than 30 years and supported essential veterans' health care reforms to provide better access and medical care for those who serve in uniform.

Some of you also joined Democrats in supporting a Credit Card Bill of Rights and in extending unemployment compensation to Americans who are out of work. Some of you joined us in stopping tobacco companies from targeting kids, expanding opportunities for young people to serve our country, and helping responsible homeowners stay in their homes.

So we have a track record of working together. It is possible. But, as John, you mentioned, on some very big things, we've seen party-line votes that, I'm just going to be honest, were disappointing. Let's start with our efforts to jumpstart the economy last winter, when we were losing 700,000 jobs a month. Our financial system teetered on the brink of collapse and the threat of a second Great Depression loomed large. I didn't understand then, and I still don't understand, why we got opposition in this caucus for almost $300 billion in badly needed tax cuts for the American people, or COBRA coverage to help Americans who've lost jobs in this recession to keep the health insurance that they desperately needed, or opposition to putting Americans to work laying broadband and rebuilding roads and bridges and breaking ground on new construction projects.

There was an interesting headline in CNN today: "Americans disapprove of stimulus, but like every policy in it." And there was a poll that showed that if you broke it down into its component parts, 80 percent approved of the tax cuts, 80 percent approved of the infrastructure, 80 percent approved of the assistance to the unemployed.

Well, that's what the Recovery Act was. And let's face it, some of you have been at the ribbon-cuttings for some of these important projects in your communities. Now, I understand some of you had some philosophical differences perhaps on the just the concept of government spending, but, as I recall, opposition was declared before we had a chance to actually meet and exchange ideas. And I saw that as a missed opportunity.

Now, I am happy to report this morning that we saw another sign that our economy is moving in the right direction. The latest GDP numbers show that our economy is growing by almost 6 percent -- that's the most since 2003. To put that in perspective, this time last year, we weren't seeing positive job growth; we were seeing the economy shrink by about 6 percent.

So you've seen a 12 percent reversal during the course of this year. This turnaround is the biggest in nearly three decades -- and it didn't happen by accident. It happened -- as economists, conservative and liberal, will attest -- because of some of the steps that we took.

And by the way, you mentioned a Web site out here, John -- if you want to look at what's going on, on the Recovery Act, you can look on recovery.gov -- a Web site, by the way, that was Eric Cantor's idea.

Now, here's the point. These are serious times, and what's required by all of us -- Democrats and Republicans -- is to do what's right for our country, even if it's not always what's best for our politics. I know it may be heresy to say this, but there are things more important than good poll numbers. And on this no one can accuse me of not living by my principles. (Laughter.) A middle class that's back on its feet, an economy that lifts everybody up, an America that's ascendant in the world -- that's more important than winning an election. Our future shouldn't be shaped by what's best for our politics; our politics should be shaped by what's best for our future.

But no matter what's happened in the past, the important thing for all of us is to move forward together. We have some issues right in front of us on which I believe we should agree, because as successful as we've been in spurring new economic growth, everybody understands that job growth has been lagging. Some of that's predictable. Every economist will say jobs are a lagging indicator, but that's no consolation for the folks who are out there suffering right now. And since 7 million Americans have lost their jobs in this recession, we've got to do everything we can to accelerate it.

So, today, in line with what I stated at the State of the Union, I've proposed a new jobs tax credit for small business. And here's how it would work. Employers would get a tax credit of up to $5,000 for every employee they add in 2010. They'd get a tax break for increases in wages, as well. So, if you raise wages for employees making under $100,000, we'd refund part of your payroll tax for every dollar you increase those wages faster than inflation. It's a simple concept. It's easy to understand. It would cut taxes for more than 1 million small businesses.

So I hope you join me. Let's get this done. I want to eliminate the capital gains tax for small business investment, and take some of the bailout money the Wall Street banks have returned and use it to help community banks start lending to small businesses again. So join me. I am confident that we can do this together for the American people. And there's nothing in that proposal that runs contrary to the ideological predispositions of this caucus. The question is: What's going to keep us from getting this done?

I've proposed a modest fee on the nation's largest banks and financial institutions to fully recover for taxpayers' money that they provided to the financial sector when it was teetering on the brink of collapse. And it's designed to discourage them from taking reckless risks in the future. If you listen to the American people, John, they'll tell you they want their money back. Let's do this together, Republicans and Democrats.

I propose that we close tax loopholes that reward companies for shipping American jobs overseas, and instead give companies greater incentive to create jobs right here at home -- right here at home. Surely, that's something that we can do together, Republicans and Democrats.

We know that we've got a major fiscal challenge in reining in deficits that have been growing for a decade, and threaten our future. That's why I've proposed a three-year freeze in discretionary spending other than what we need for national security. That's something we should do together that's consistent with a lot of the talk both in Democratic caucuses and Republican caucuses. We can't blink when it's time to actually do the job.

At this point, we know that the budget surpluses of the '90s occurred in part because of the pay-as-you-go law, which said that, well, you should pay as you go and live within our means, just like families do every day. Twenty-four of you voted for that, and I appreciate it. And we were able to pass it in the Senate yesterday.

But the idea of a bipartisan fiscal commission to confront the deficits in the long term died in the Senate the other day. So I'm going to establish such a commission by executive order and I hope that you participate, fully and genuinely, in that effort, because if we're going to actually deal with our deficit and debt, everybody here knows that we're going to have to do it together, Republican and Democrat. No single party is going to make the tough choices involved on its own. It's going to require all of us doing what's right for the American people.

And as I said in the State of the Union speech, there's not just a deficit of dollars in Washington, there is a deficit of trust. So I hope you'll support my proposal to make all congressional earmarks public before they come to a vote. And let's require lobbyists who exercise such influence to publicly disclose all their contacts on behalf of their clients, whether they are contacts with my administration or contacts with Congress. Let's do the people's business in the bright light of day, together, Republicans and Democrats.

I know how bitter and contentious the issue of health insurance reform has become. And I will eagerly look at the ideas and better solutions on the health care front. If anyone here truly believes our health insurance system is working well for people, I respect your right to say so, but I just don't agree. And neither would millions of Americans with preexisting conditions who can't get coverage today or find out that they lose their insurance just as they're getting seriously ill. That's exactly when you need insurance. And for too many people, they're not getting it. I don't think a system is working when small businesses are gouged and 15,000 Americans are losing coverage every single day; when premiums have doubled and out-of-pocket costs have exploded and they're poised to do so again.

I mean, to be fair, the status quo is working for the insurance industry, but it's not working for the American people. It's not working for our federal budget. It needs to change.

This is a big problem, and all of us are called on to solve it. And that's why, from the start, I sought out and supported ideas from Republicans. I even talked about an issue that has been a holy grail for a lot of you, which was tort reform, and said that I'd be willing to work together as part of a comprehensive package to deal with it. I just didn't get a lot of nibbles.

Creating a high-risk pool for uninsured folks with preexisting conditions, that wasn't my idea, it was Senator McCain's. And I supported it, and it got incorporated into our approach. Allowing insurance companies to sell coverage across state lines to add choice and competition and bring down costs for businesses and consumers -- that's an idea that some of you I suspect included in this better solutions; that's an idea that was incorporated into our package. And I support it, provided that we do it hand in hand with broader reforms that protect benefits and protect patients and protect the American people.

A number of you have suggested creating pools where self-employed and small businesses could buy insurance. That was a good idea. I embraced it. Some of you supported efforts to provide insurance to children and let kids remain covered on their parents' insurance until they're 25 or 26. I supported that. That's part of our package. I supported a number of other ideas, from incentivizing wellness to creating an affordable catastrophic insurance option for young people that came from Republicans like Mike Enzi and Olympia Snowe in the Senate, and I'm sure from some of you as well. So when you say I ought to be willing to accept Republican ideas on health care, let's be clear: I have.

Bipartisanship -- not for its own sake but to solve problems -- that's what our constituents, the American people, need from us right now. All of us then have a choice to make. We have to choose whether we're going to be politicians first or partners for progress; whether we're going to put success at the polls ahead of the lasting success we can achieve together for America. Just think about it for a while. We don't have to put it up for a vote today.

Let me close by saying this. I was not elected by Democrats or Republicans, but by the American people. That's especially true because the fastest growing group of Americans are independents. That should tell us both something. I'm ready and eager to work with anyone who is willing to proceed in a spirit of goodwill. But understand, if we can't break free from partisan gridlock, if we can't move past a politics of "no," if resistance supplants constructive debate, I still have to meet my responsibilities as President. I've got to act for the greater good -- because that, too, is a commitment that I have made. And that's -- that, too, is what the American people sent me to Washington to do.

So I am optimistic. I know many of you individually. And the irony, I think, of our political climate right now is that, compared to other countries, the differences between the two major parties on most issues is not as big as it's represented. But we've gotten caught up in the political game in a way that's just not healthy. It's dividing our country in ways that are preventing us from meeting the challenges of the 21st century. I'm hopeful that the conversation we have today can help reverse that.

So thank you very much. Thank you, John. (Applause.) Now I'd like to open it up for questions.

CONGRESSMAN PENCE: The President has agreed to take questions and members would be encouraged to raise your hand while you remain in your seat. (Laughter.) The chair will take the prerogative to make the first remarks.

Mr. President, welcome back to the House Republican Conference.

THE PRESIDENT: Thank you.

CONGRESSMAN PENCE: [Off microphone.] We are pleased to have you return. (Inaudible) a year ago -- House Republicans said then we would make you two promises. Number one, that most of the people in this room and their families would pray for you and your beautiful family just about every day for the next four years. And I want to assure you we're keeping that promise.

THE PRESIDENT: I appreciate that.

CONGRESSMAN PENCE: [off microphone] Number two, our pledge to you, Mr. President, was that door is always open. And we hope the (inaudible) of our invitation that we (inaudible).

Mr. President, several of us in this conference yesterday on the way into Baltimore stopped by the Salvation Army homeless facility here in Baltimore. I met a little boy, an African American boy, in the 8th grade, named David Carter, Jr. When he heard that I would be seeing you today his eyes lit up like I had never seen. And I told him that if he wrote you a letter I'd give it to you, and I have.

But I had a conversation with little David, Jr. and David, Sr. His family has been struggling with the economy.

[On microphone.] His dad said words to me, Mr. President, that I'll never forget. About my age and he said -- he said, Congressman, it's not like it was when we were coming up. He said, there's just no jobs.

Now, last year about the time you met with us, unemployment was 7.5 percent in this country. Your administration, and your party in Congress, told us that we'd have to borrow more than $700 billion to pay for a so-called stimulus bill. It was a piecemeal list of projects and boutique tax cuts, all of which was -- we were told -- had to be passed or unemployment would go to 8 percent, as your administration said. Well, unemployment is 10 percent now, as you well know, Mr. President; here in Baltimore it's considerably higher.

Now, Republicans offered a stimulus bill at the same time. It cost half as much as the Democratic proposal in Congress, and using your economic analyst models, it would have created twice the jobs at half the cost. It essentially was across-the-board tax relief, Mr. President.

Now we know you've come to Baltimore today and you've raised this tax credit, which was last promoted by President Jimmy Carter. But the first question I would pose to you, very respectfully, Mr. President, is would you be willing to consider embracing -- in the name of little David Carter, Jr. and his dad, in the name of every struggling family in this country -- the kind of across-the-board tax relief that Republicans have advocated, that President Kennedy advocated, that President Reagan advocated and that has always been the means of stimulating broad-based economic growth?

THE PRESIDENT: Well, there was a lot packed into that question. (Laughter.) First of all, let me say I already promised that I'll be writing back to that young man and his family, and I appreciate you passing on the letter.

Q Thank you.

THE PRESIDENT: But let's talk about just the jobs environment generally. You're absolutely right that when I was sworn in the hope was that unemployment would remain around 8 [percent], or in the 8 percent range. That was just based on the estimates made by both conservative and liberal economists, because at that point not all the data had trickled in.

We had lost 650,000 jobs in December. I'm assuming you're not faulting my policies for that. We had lost, it turns out, 700,000 jobs in January, the month I was sworn in. I'm assuming it wasn't my administration's policies that accounted for that. We lost another 650,000 jobs the subsequent month, before any of my policies had gone into effect. So I'm assuming that wasn't as a consequence of our policies; that doesn't reflect the failure of the Recovery Act. The point being that what ended up happening was that the job losses from this recession proved to be much more severe -- in the first quarter of last year going into the second quarter of last year -- than anybody anticipated.

So I mean, I think we can score political points on the basis of the fact that we underestimated how severe the job losses were going to be. But those job losses took place before any stimulus, whether it was the ones that you guys have proposed or the ones that we proposed, could have ever taken into effect. Now, that's just the fact, Mike, and I don't think anybody would dispute that. You could not find an economist who would dispute that.

Now, at the same time, as I mentioned, most economists -- Republican and Democrat, liberal and conservative -- would say that had it not been for the stimulus package that we passed, things would be much worse. Now, they didn't fill a 7 million hole in the number of people who were unemployed. They probably account for about 2 million, which means we still have 5 million folks in there that we've still got to deal with. That's a lot of people.

The package that we put together at the beginning of the year, the truth is, should have reflected -- and I believe reflected what most of you would say are common sense things. This notion that this was a radical package is just not true. A third of them were tax cuts, and they weren't -- when you say they were "boutique" tax cuts, Mike, 95 percent of working Americans got tax cuts, small businesses got tax cuts, large businesses got help in terms of their depreciation schedules. I mean, it was a pretty conventional list of tax cuts. A third of it was stabilizing state budgets.

There is not a single person in here who, had it not been for what was in the stimulus package, wouldn't be going home to more teachers laid off, more firefighters laid off, more cops laid off. A big chunk of it was unemployment insurance and COBRA, just making sure that people had some floor beneath them, and, by the way, making sure that there was enough money in their pockets that businesses had some customers.

You take those two things out, that accounts for the majority of the stimulus package. Are there people in this room who think that was a bad idea? A portion of it was dealing with the AMT, the alternative minimum tax -- not a proposal of mine; that's not a consequence of my policies that we have a tax system where we keep on putting off a potential tax hike that is embedded in the budget that we have to fix each year. That cost about $70 billion.

And then the last portion of it was infrastructure which, as I said, a lot of you have gone to appear at ribbon-cuttings for the same projects that you voted against.

Now, I say all this not to re-litigate the past, but it's simply to state that the component parts of the Recovery Act are consistent with what many of you say are important things to do -- rebuilding our infrastructure, tax cuts for families and businesses, and making sure that we were providing states and individuals some support when the roof was caving in.

And the notion that I would somehow resist doing something that cost half as much but would produce twice as many jobs -- why would I resist that? I wouldn't. I mean, that's my point, is that -- I am not an ideologue. I'm not. It doesn't make sense if somebody could tell me you could do this cheaper and get increased results that I wouldn't say, great. The problem is, I couldn't find credible economists who would back up the claims that you just made.

Now, we can -- here's what I know going forward, though. I mean, we're talking -- we were talking about the past. We can talk about this going forward. I have looked at every idea out there in terms of accelerating job growth to match the economic growth that's already taken place. The jobs credit that I'm discussing right now is one that a lot of people think would be the most cost-effective way for encouraging people to pick up their hiring.

There may be other ideas that you guys have; I am happy to look at them and I'm happy to embrace them. I suspect I will embrace some of them. Some of them I've already embraced.

But the question I think we're going to have to ask ourselves is, as we move forward, are we going to be examining each of these issues based on what's good for the country, what the evidence tells us, or are we going to be trying to position ourselves so that come November we're able to say, "The other party, it's their fault." If we take the latter approach then we're probably not going to get much agreement. If we take the former, I suspect there's going to be a lot of overlap. All right?

Q Mr. President, will you consider supporting across-the-board tax relief, as President Kennedy did?

THE PRESIDENT: Here's what I'm going to do, Mike. What I'm going to do is I'm going to take a look at what you guys are proposing. And the reason I say this, before you say, "Okay," I think is important to know -- what you may consider across-the-board tax cuts could be, for example, greater tax cuts for people who are making a billion dollars. I may not agree to a tax cut for Warren Buffet. You may be calling for an across-the-board tax cut for the banking industry right now. I may not agree to that.

So I think that we've got to look at what specific proposals you're putting forward, and -- this is the last point I'll make -- if you're calling for just across-the-board tax cuts, and then on the other hand saying that we're somehow going to balance our budget, I'm going to want to take a look at your math and see how that works, because the issue of deficit and debt is another area where there has been a tendency for some inconsistent statements. How's that? All right?

CONGRESSMAN RYAN: Thank you. Mr. President, first off, thanks for agreeing to accept our invitation here. It is a real pleasure and honor to have you with us here today.

THE PRESIDENT: Good to see you. Is this your crew right here, by the way?

CONGRESSMAN RYAN: It is. This is my daughter Liza, my son Charlie and Sam, and this is my wife Janna.

THE PRESIDENT: Hey, guys.

CONGRESSMAN RYAN: Say hi, everybody. (Laughter.) I serve as a ranking member of the budget committee, so I'm going to talk a little budget if you don't mind. The spending bills that you've signed into law, the domestic discretionary spending has been increased by 84 percent. You now want to freeze spending at this elevated beginning next year. This means that total spending in your budget would grow at 3/100ths of 1 percent less than otherwise. I would simply submit that we could do more and start now.

You've also said that you want to take a scalpel to the budget and go through it line by line. We want to give you that scalpel. I have a proposal with my home state senator, Russ Feingold, bipartisan proposal, to create a constitutional version of the line-item veto. (Applause.) Problem is, we can't even get a vote on the proposal.

So my question is, why not start freezing spending now, and would you support a line-item veto in helping us get a vote on it in the House?

THE PRESIDENT: Let me respond to the two specific questions, but I want to just push back a little bit on the underlying premise about us increasing spending by 84 percent.

Now, look, I talked to Peter Orszag right before I came here, because I suspected I'd be hearing this -- I'd be hearing this argument. The fact of the matter is, is that most of the increases in this year's budget, this past year's budget, were not as a consequence of policies that we initiated but instead were built in as a consequence of the automatic stabilizers that kick in because of this enormous recession.

So the increase in the budget for this past year was actually predicted before I was even sworn into office and had initiated any policies. Whoever was in there, Paul -- and I don't think you'll dispute that -- whoever was in there would have seen those same increases because of, on the one hand, huge drops in revenue, but at the same time people were hurting and needed help. And a lot of these things happened automatically.

Now, the reason that I'm not proposing the discretionary freeze take into effect this year -- we prepared a budget for 2010, it's now going forward -- is, again, I am just listening to the consensus among people who know the economy best. And what they will say is that if you either increase taxes or significantly lowered spending when the economy remains somewhat fragile, that that would have a destimulative effect and potentially you'd see a lot of folks losing business, more folks potentially losing jobs. That would be a mistake when the economy has not fully taken off. That's why I've proposed to do it for the next fiscal year. So that's point number two.

With respect to the line-item veto, I actually -- I think there's not a President out there that wouldn't love to have it. And I think that this is an area where we can have a serious conversation. I know it is a bipartisan proposal by you and Russ Feingold. I don't like being held up with big bills that have stuff in them that are wasteful but I've got to sign because it's a defense authorization bill and I've got to make sure that our troops are getting the funding that they need.

I will tell you, I would love for Congress itself to show discipline on both sides of the aisle. I think one thing that you have to acknowledge, Paul, because you study this stuff and take it pretty seriously, that the earmarks problem is not unique to one party and you end up getting a lot of pushback when you start going after specific projects of any one of you in your districts, because wasteful spending is usually spent somehow outside of your district. Have you noticed that? The spending in your district tends to seem pretty sensible.

So I would love to see more restraint within Congress. I'd like to work on the earmarks reforms that I mentioned in terms of putting earmarks online, because I think sunshine is the best disinfectant. But I am willing to have a serious conversation on the line-item veto issue.

CONGRESSMAN RYAN: I'd like to walk you through that, because we have a version we think is constitutional.

THE PRESIDENT: Let me take a look at it.

CONGRESSMAN RYAN: I would simply say that automatic stabilizer spending is mandatory spending. The discretionary spending, the bills that Congress signs that you sign into law, that has increased 84 percent.

THE PRESIDENT: We'll have a longer debate on the budget numbers, all right?

CONGRESSMAN PENCE: Shelley Moore Capito, West Virginia.

CONGRESSWOMAN CAPITO: Thank you, Mr. President, for joining us here today. As you said in the State of the Union address on Wednesday, jobs and the economy are number one. And I think everyone in this room, certainly I, agree with you on that.

I represent the state of West Virginia. We're resource-rich. We have a lot of coal and a lot of natural gas. But our -- my miners and the folks who are working and those who are unemployed are very concerned about some of your policies in these areas: cap and trade, an aggressive EPA, and the looming prospect of higher taxes. In our minds, these are job-killing policies. So I'm asking you if you would be willing to re-look at some of these policies, with a high unemployment and the unsure economy that we have now, to assure West Virginians that you're listening.

THE PRESIDENT: Look, I listen all the time, including to your governor, who's somebody who I enjoyed working with a lot before the campaign and now that I'm President. And I know that West Virginia struggles with unemployment, and I know how important coal is to West Virginia and a lot of the natural resources there. That's part of the reason why I've said that we need a comprehensive energy policy that sets us up for a long-term future.

For example, nobody has been a bigger promoter of clean coal technology than I am. Testament to that, I ended up being in a whole bunch of advertisements that you guys saw all the time about investing in ways for us to burn coal more cleanly.

I've said that I'm a promoter of nuclear energy, something that I think over the last three decades has been subject to a lot of partisan wrangling and ideological wrangling. I don't think it makes sense. I think that that has to be part of our energy mix. I've said that I am supportive -- and I said this two nights ago at the State of the Union -- that I am in favor of increased production.

So if you look at the ideas that this caucus has, again with respect to energy, I'm for a lot of what you said you are for.

The one thing that I've also said, though, and here we have a serious disagreement and my hope is we can work through these disagreements -- there's going to be an effort on the Senate side to do so on a bipartisan basis -- is that we have to plan for the future.

And the future is that clean energy -- cleaner forms of energy are going to be increasingly important, because even if folks are still skeptical in some cases about climate change in our politics and in Congress, the world is not skeptical about it. If we're going to be after some of these big markets, they're going to be looking to see, is the United States the one that's developing clean coal technology? Is the United States developing our natural gas resources in the most effective way? Is the United States the one that is going to lead in electric cars? Because if we're not leading, those other countries are going to be leading.

So what I want to do is work with West Virginia to figure out how we can seize that future. But to do that, that means there's going to have to be some transition. We can't operate the coal industry in the United States as if we're still in the 1920s or the 1930s or the 1950s. We've got to be thinking what does that industry look like in the next hundred years. And it's going to be different. And that means there's going to be some transition. And that's where I think a well-thought-through policy of incentivizing the new while recognizing that there's going to be a transition process -- and we're not just suddenly putting the old out of business right away -- that has to be something that both Republicans and Democrats should be able to embrace.

CONGRESSMAN PENCE: Jason Chaffetz, Utah.

CONGRESSMAN CHAFFETZ: Thank you, Mr. President. It's truly an honor.

THE PRESIDENT: Great to be here.

CONGRESSMAN CHAFFETZ: And I appreciate you being here.

I'm one of 22 House freshmen. We didn't create this mess, but we are here to help clean it up. You talked a lot about this deficit of trust. There's some things that have happened that I would appreciate your perspective on, because I can look you in the eye and tell you we have not been obstructionists. Democrats have the House and Senate and the presidency. And when you stood up before the American people multiple times and said you would broadcast the health care debates on C-SPAN, you didn't. And I was disappointed, and I think a lot of Americans were disappointed.

You said you weren't going to allow lobbyists in the senior-most positions within your administration, and yet you did. I applauded you when you said it -- and disappointed when you didn't.

You said you'd go line by line through the health care debate -- or through the health care bill. And there were six of us, including Dr. Phil Roe, who sent you a letter and said, "We would like to take you up on the offer; we'd like to come." We never heard a letter, we never got a call. We were never involved in any of those discussions.

And when you said in the House of Representatives that you were going to tackle earmarks -- in fact, you didn't want to have any earmarks in any of your bills -- I jumped up out of my seat and applauded you. But it didn't happen.

More importantly, I want to talk about moving forward, but if we could address --

THE PRESIDENT: Well, how about --

CONGRESSMAN CHAFFETZ: -- I would certainly appreciate it.

THE PRESIDENT: That was a long list, so -- (laughter) -- let me respond.

Look, the truth of the matter is that if you look at the health care process -- just over the course of the year -- overwhelmingly the majority of it actually was on C-SPAN, because it was taking place in congressional hearings in which you guys were participating. I mean, how many committees were there that helped to shape this bill? Countless hearings took place.

Now, I kicked it off, by the way, with a meeting with many of you, including your key leadership. What is true, there's no doubt about it, is that once it got through the committee process and there were now a series of meetings taking place all over the Capitol trying to figure out how to get the thing together -- that was a messy process. And I take responsibility for not having structured it in a way where it was all taking place in one place that could be filmed. How to do that logistically would not have been as easy as it sounds, because you're shuttling back and forth between the House, the Senate, different offices, et cetera, different legislators. But I think it's a legitimate criticism. So on that one, I take responsibility.

With respect to earmarks, we didn't have earmarks in the Recovery Act. We didn't get a lot of credit for it, but there were no earmarks in that. I was confronted at the beginning of my term with an omnibus package that did have a lot of earmarks from Republicans and Democrats, and a lot of people in this chamber. And the question was whether I was going to have a big budget fight, at a time when I was still trying to figure out whether or not the financial system was melting down and we had to make a whole bunch of emergency decisions about the economy. So what I said was let's keep them to a minimum, but I couldn't excise them all.

Now, the challenge I guess I would have for you as a freshman, is what are you doing inside your caucus to make sure that I'm not the only guy who is responsible for this stuff, so that we're working together, because this is going to be a process?

When we talk about earmarks, I think all of us are willing to acknowledge that some of them are perfectly defensible, good projects; it's just they haven't gone through the regular appropriations process in the full light of day. So one place to start is to make sure that they are at least transparent, that everybody knows what's there before we move forward.

In terms of lobbyists, I can stand here unequivocally and say that there has not been an administration who was tougher on making sure that lobbyists weren't participating in the administration than any administration that's come before us.

Now, what we did was, if there were lobbyists who were on boards and commissions that were carryovers and their term hadn't been completed, we didn't kick them off. We simply said that moving forward any time a new slot opens, they're being replaced.

So we've actually been very consistent in making sure that we are eliminating the impact of lobbyists, day in, day out, on how this administration operates. There have been a handful of waivers where somebody is highly skilled -- for example, a doctor who ran Tobacco-Free Kids technically is a registered lobbyist; on the other end, has more experience than anybody in figuring out how kids don't get hooked on cigarettes.

So there have been a couple of instances like that, but generally we've been very consistent on that front.

CONGRESSMAN PENCE: Marsha Blackburn, Tennessee.

CONGRESSMAN BLACKBURN: Thank you, Mr. President, and thank you for acknowledging that we have ideas on health care because, indeed, we do have ideas, we have plans, we have over 50 bills, we have lots of amendments that would bring health care ideas to the forefront. We would -- we've got plans to lower cost, to change purchasing models, address medical liability, insurance accountability, chronic and preexisting conditions, and access to affordable care for those with those conditions, insurance portability, expanded access -- but not doing it with creating more government, more bureaucracy, and more cost for the American taxpayer.

And we look forward to sharing those ideas with you. We want to work with you on health reform and making certain that we do it in an affordable, cost-effective way that is going to reduce bureaucracy, reduce government interference, and reduce costs to individuals and to taxpayers. And if those good ideas aren't making it to you, maybe it's the House Democrat leadership that is an impediment instead of a conduit.

But we're concerned also that there are some lessons learned from public option health care plans that maybe are not being heeded. And certainly in my state of Tennessee, we were the test case for public option health care in 1994, and our Democrat government has even cautioned that maybe our experiences there would provide some lessons learned that should be heeded, and would provide guidance for us to go forward. And as you said, what we should be doing is tossing old ideas out, bad ideas out, and moving forward in refining good ideas. And certainly we would welcome that opportunity.

So my question to you is, when will we look forward to starting anew and sitting down with you to put all of these ideas on the table, to look at these lessons learned, to benefit from that experience, and to produce a product that is going to reduce government interference, reduce cost, and be fair to the American taxpayer? (Applause.)

THE PRESIDENT: Actually, I've gotten many of your ideas. I've taken a look at them, even before I was handed this. Some of the ideas we have embraced in our package. Some of them are embraced with caveats. So let me give you an example.

I think one of the proposals that has been focused on by the Republicans as a way to reduce costs is allowing insurance companies to sell across state lines. We actually include that as part of our approach. But the caveat is, we've got to do so with some minimum standards, because otherwise what happens is that you could have insurance companies circumvent a whole bunch of state regulations about basic benefits or what have you, making sure that a woman is able to get mammograms as part of preventive care, for example. Part of what could happen is insurance companies could go into states and cherry-pick and just get those who are healthiest and leave behind those who are least healthy, which would raise everybody's premiums who weren't healthy, right?

So it's not that many of these ideas aren't workable, but we have to refine them to make sure that they don't just end up worsening the situation for folks rather than making it better.

Now, what I said at the State of the Union is what I still believe: If you can show me -- and if I get confirmation from health care experts, people who know the system and how it works, including doctors and nurses -- ways of reducing people's premiums; covering those who do not have insurance; making it more affordable for small businesses; having insurance reforms that ensure people have insurance even when they've got preexisting conditions, that their coverage is not dropped just because they're sick, that young people right out of college or as they're entering in the workforce can still get health insurance -- if those component parts are things that you care about and want to do, I'm game. And I've got -- and I've got a lot of these ideas.

The last thing I will say, though -- let me say this about health care and the health care debate, because I think it also bears on a whole lot of other issues. If you look at the package that we've presented -- and there's some stray cats and dogs that got in there that we were eliminating, we were in the process of eliminating. For example, we said from the start that it was going to be important for us to be consistent in saying to people if you can have your -- if you want to keep the health insurance you got, you can keep it, that you're not going to have anybody getting in between you and your doctor in your decision making. And I think that some of the provisions that got snuck in might have violated that pledge.

And so we were in the process of scrubbing this and making sure that it's tight. But at its core, if you look at the basic proposal that we've put forward: it has an exchange so that businesses and the self-employed can buy into a pool and can get bargaining power the same way big companies do; the insurance reforms that I've already discussed, making sure that there's choice and competition for those who don't have health insurance. The component parts of this thing are pretty similar to what Howard Baker, Bob Dole, and Tom Daschle proposed at the beginning of this debate last year.

Now, you may not agree with Bob Dole and Howard Baker, and, certainly you don't agree with Tom Daschle on much, but that's not a radical bunch. But if you were to listen to the debate and, frankly, how some of you went after this bill, you'd think that this thing was some Bolshevik plot. No, I mean, that's how you guys -- (applause) -- that's how you guys presented it.

And so I'm thinking to myself, well, how is it that a plan that is pretty centrist -- no, look, I mean, I'm just saying, I know you guys disagree, but if you look at the facts of this bill, most independent observers would say this is actually what many Republicans -- is similar to what many Republicans proposed to Bill Clinton when he was doing his debate on health care.

So all I'm saying is, we've got to close the gap a little bit between the rhetoric and the reality. I'm not suggesting that we're going to agree on everything, whether it's on health care or energy or what have you, but if the way these issues are being presented by the Republicans is that this is some wild-eyed plot to impose huge government in every aspect of our lives, what happens is you guys then don't have a lot of room to negotiate with me.

I mean, the fact of the matter is, is that many of you, if you voted with the administration on something, are politically vulnerable in your own base, in your own party. You've given yourselves very little room to work in a bipartisan fashion because what you've been telling your constituents is, this guy is doing all kinds of crazy stuff that's going to destroy America.

And I would just say that we have to think about tone. It's not just on your side, by the way -- it's on our side, as well. This is part of what's happened in our politics, where we demonize the other side so much that when it comes to actually getting things done, it becomes tough to do.

Mike.

CONGRESSMAN PENCE: Dr. Tom Price from Georgia, and then we'll have

Rep. Bachmann & The Declaration of Health Care Independence

Movie: http://UpTake-Editorial.groups.theuptake.org/rss/videogalleryView/id/2770/
Description:

In a press conference with the Minnesota GOP, Rep. Michele Bachmann unveiled a "Declaration of Health Care Independence." She said the GOP is rejecting back room deals, raised taxes and deeper deficits to fix the health care crisis.