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1 00:00:00,700 --> 00:00:03,470 Mr. Gibbs: Good afternoon. Let me read just one short, 2 00:00:03,467 --> 00:00:08,267 quick statement before we get started. "We are deeply saddened by the loss of the passengers 3 00:00:08,266 --> 00:00:14,196 on Ethiopian Airlines Flight 409 in Beirut, Lebanon last night. Our thoughts and prayers 4 00:00:14,200 --> 00:00:18,930 go out to the families and friends of those who lost loved ones. The United States commends 5 00:00:18,934 --> 00:00:23,164 the government of Lebanon and the United Nations rescue workers in their immediate response 6 00:00:23,166 --> 00:00:27,166 and recovery effort." And with that, Ms. Loven. 7 00:00:27,166 --> 00:00:30,036 The Press: The middle class initiatives that the President 8 00:00:30,033 --> 00:00:35,703 and Vice President outlined today, would you expect that to be essentially the laundry 9 00:00:35,700 --> 00:00:39,430 list of new initiatives that we might see in the State of the Union? Or will there be 10 00:00:39,433 --> 00:00:44,563 more, sort of, new announcements, new proposals that he plans to put forward on Wednesday? 11 00:00:44,567 --> 00:00:47,097 Mr. Gibbs: Well, as is my desire, I don't want to get 12 00:00:47,100 --> 00:00:52,500 too far ahead of the man who will make a speech on that in a couple of days. I think you will 13 00:00:52,500 --> 00:01:01,830 see a series of ideas that the President will outline that fall into a few different categories: 14 00:01:01,834 --> 00:01:08,064 how to get our economy back on a firmer foundation, and how do we create an atmosphere in the 15 00:01:08,066 --> 00:01:17,636 private sector that lends itself to more hiring; what do we do to put our government back on 16 00:01:17,633 --> 00:01:25,133 firmer footing with the middle class, and along with that, what ideas do we have for 17 00:01:25,133 --> 00:01:30,403 changing the way Washington works so that people in this country feel like the middle 18 00:01:30,400 --> 00:01:34,330 class is getting as fair a shake as the special interests. 19 00:01:34,333 --> 00:01:38,103 The Press: But, for example, when he talks about jobs 20 00:01:38,100 --> 00:01:43,530 creation, as you mentioned, getting the private sector to hire -- are those likely to be ideas 21 00:01:43,533 --> 00:01:47,663 that we haven't heard yet? Or is he going to be -- you know, give more detail or just 22 00:01:47,667 --> 00:01:48,267 a push to the green jobs -- 23 00:01:48,266 --> 00:01:49,266 Mr. Gibbs: Well, no, I think there will be a series of 24 00:01:49,266 --> 00:01:53,236 things that the President will talk about, Jennifer. I just don't want to get too far 25 00:01:53,233 --> 00:01:57,663 ahead of where the President will -- what the President will do and say on a number 26 00:01:57,667 --> 00:02:08,897 of things, including, to finish my list, the actions that will begin to recognize what 27 00:02:08,900 --> 00:02:12,670 many middle class families are having to do each and every day, and that is make spending 28 00:02:12,667 --> 00:02:19,667 decisions based on their income, not on -- and ensuring that government is doing the 29 00:02:19,667 --> 00:02:25,467 same thing and getting ourselves back on a path to fiscal responsibility in the medium 30 00:02:25,467 --> 00:02:29,437 and the long term. The President will also spend some time talking about our efforts 31 00:02:29,433 --> 00:02:38,363 to combat terrorism and efforts that have been ongoing for the first year on foreign policy. 32 00:02:38,367 --> 00:02:49,267 The Press: And can you say definitively that the addition 33 00:02:49,266 --> 00:02:49,466 of David Plouffe to the sort of broader team is the last change or the only change you 34 00:02:49,467 --> 00:02:51,267 guys plan to make in the near future? Mr. Gibbs: I'm not aware of others. I will say this 35 00:02:51,266 --> 00:03:04,496 -- I think David's -- the President asking him to give some extra time I think might 36 00:03:04,500 --> 00:03:18,870 have been a tad overwritten in the sense of, this is not him taking over every campaign 37 00:03:18,867 --> 00:03:27,437 in 2010 -- meaning David Plouffe. This is not -- this is about him working internally 38 00:03:27,433 --> 00:03:35,033 on strategy with the folks that are already here. I think you heard David Axelrod say 39 00:03:35,033 --> 00:03:45,103 this yesterday, that there's a game that gets played a lot in this town that calls for the 40 00:03:45,100 --> 00:03:49,130 ritual sacrifice of someone or some group of people. 41 00:03:49,133 --> 00:03:51,103 The Press: Well, maybe not sacrifice, but bringing in 42 00:03:51,100 --> 00:03:51,600 other people. 43 00:03:51,600 --> 00:03:55,770 Mr. Gibbs: I know of no other personnel changes. Yes, sir. 44 00:03:55,767 --> 00:03:58,367 The Press: The administration has made clear in recent 45 00:03:58,367 --> 00:04:01,537 days that despite the increasingly rancorous debate over Bernanke's confirmation as -- 46 00:04:01,533 --> 00:04:13,003 for a second term as Fed Chairman, that it expects that he will in fact be reconfirmed. 47 00:04:13,000 --> 00:04:20,730 But the Fed has two key missions: promoting full employment and keeping prices in check. 48 00:04:20,734 --> 00:04:25,034 Given that the jobless rate has risen to 10 percent, does the President think Bernanke 49 00:04:25,033 --> 00:04:27,203 has done a good job in meeting the Fed's mandate on jobs? 50 00:04:27,200 --> 00:04:31,830 Mr. Gibbs: Well, look, the President took into account 51 00:04:31,834 --> 00:04:43,934 a lot of tasks that the Fed does. Obviously the tools that it has on monetary policy, 52 00:04:43,934 --> 00:04:51,604 given interest rates, are not -- their options are not great. But the President had to make 53 00:04:51,600 --> 00:05:01,630 a series of -- went through a series of decisions, as you know, last year in appointing Ben Bernanke 54 00:05:01,633 --> 00:05:08,463 to serve in a second term. Obviously, as we talked about last week, there are a number 55 00:05:08,467 --> 00:05:18,467 of -- there's still a great amount of anxiety in our economy, but Chairman Bernanke helped 56 00:05:18,467 --> 00:05:22,767 the President and the economic team steer through some very turbulent times and rough 57 00:05:22,767 --> 00:05:30,167 waters. As I said yesterday, I believe that it sends a signal to greater and overall stability 58 00:05:30,166 --> 00:05:37,166 to have his nomination approved without political games, and that's what we expect will happen 59 00:05:37,166 --> 00:05:38,396 later this week. 60 00:05:38,400 --> 00:05:43,070 The Press: But is the White House worried that an unexpectedly 61 00:05:43,066 --> 00:05:47,536 difficult debate over his confirmation could damage confidence in the Fed and the financial 62 00:05:47,533 --> 00:05:53,063 markets, both domestically and internationally, and that this could further weaken the dollar? 63 00:05:53,066 --> 00:05:56,536 Mr. Gibbs: Again, our position is that it shouldn't. 64 00:05:56,533 --> 00:06:01,703 I think, again, this is a -- as we all know, this is an extremely important appointment. 65 00:06:01,700 --> 00:06:06,670 I think that senators are making up their minds and announcing their decisions, hopefully 66 00:06:06,667 --> 00:06:17,197 based on going through an important set of criteria. And I think, again, this is an important 67 00:06:17,200 --> 00:06:25,400 opportunity to demonstrate greater stability in our overall system by approving his renomination 68 00:06:25,400 --> 00:06:27,170 for another term at the Fed. Ed. 69 00:06:27,166 --> 00:06:29,896 The Press: Thanks, Robert. I want to follow up on jobs. 70 00:06:29,900 --> 00:06:33,530 One of the themes that Scott Brown ran on was that the Obama administration was spending 71 00:06:33,533 --> 00:06:38,703 too much money and not doing enough to create jobs. Whether that was true or not, why then 72 00:06:38,700 --> 00:06:44,000 would your first initiative be -- since that election, the new initiative -- spend more 73 00:06:44,000 --> 00:06:47,530 government money, with things that may not really create more jobs? 74 00:06:47,533 --> 00:06:55,003 Mr. Gibbs: Well, Ed, the initiatives that the President 75 00:06:55,000 --> 00:07:00,870 is focused on aren't necessarily married up to a special elections political timeline. 76 00:07:00,867 --> 00:07:04,397 The Press: But will they create jobs? 77 00:07:04,400 --> 00:07:07,730 Mr. Gibbs: I think there are a series of proposals that 78 00:07:07,734 --> 00:07:16,064 the President has made that will continue to create an atmosphere that allows the private 79 00:07:16,066 --> 00:07:23,836 sector to hire more; that addresses the anxiety that middle class families in this country 80 00:07:23,834 --> 00:07:35,134 feel each and every day, their anger and frustration about a safe and secure retirement; that with 81 00:07:35,133 --> 00:07:40,703 having to work harder and longer, that there -- have a tax cut that will help on their 82 00:07:40,700 --> 00:07:49,570 child care expenses. I think all of that goes to the type of economic anxiety that people 83 00:07:49,567 --> 00:07:58,167 felt in this country last week, last year. But Ed, as I've described here, this is something 84 00:07:58,166 --> 00:08:04,996 that they have felt for many years, feeling like their jobs weren't securing; again, feeling 85 00:08:05,000 --> 00:08:12,930 like they were working longer and harder for less money; feeling like they didn't have 86 00:08:12,934 --> 00:08:20,104 the type of security that they needed. Health care fits into that. Energy prices fits into 87 00:08:20,100 --> 00:08:27,070 that. I think there's a tendency to silo different things -- or put issues in different silos 88 00:08:27,066 --> 00:08:35,366 when, in fact, the anxiety that is felt in this country around a weak economy manifests 89 00:08:35,367 --> 00:08:37,167 itself in many, many ways. 90 00:08:37,166 --> 00:08:40,466 The Press: So is the President's role now partly to deal 91 00:08:40,467 --> 00:08:44,567 with the anxiety of the middle class but not necessarily create jobs? Because child care, 92 00:08:44,567 --> 00:08:48,937 student loan relief, it could be helpful to people, but how does that lead a small business 93 00:08:48,934 --> 00:08:49,604 to hire somebody? 94 00:08:49,600 --> 00:08:53,200 Mr. Gibbs: Well, the proposals that the President outlined 95 00:08:53,200 --> 00:09:03,270 in December lead small businesses to be in a position to hire more people. The President 96 00:09:03,266 --> 00:09:07,136 -- what the President outlined today was if you're trying to figure out how you're 97 00:09:07,133 --> 00:09:11,403 going to go back to school so you can get that next job, we don't want you to be crushed 98 00:09:11,400 --> 00:09:18,230 by the burden of skyrocketing tuition payments. Right? If you're having to work longer to 99 00:09:18,233 --> 00:09:23,203 pay the bills, we want to make sure that if you're in the middle class you're getting 100 00:09:23,200 --> 00:09:29,270 help on your child care expenses. I can assure you there are people in Massachusetts and 101 00:09:29,266 --> 00:09:36,596 across the 50 states that struggle with those problems each and every day. That's part of 102 00:09:36,600 --> 00:09:45,000 that anxiety. But, Ed, this isn't a new role for the President. Addressing that anxiety 103 00:09:45,000 --> 00:09:48,400 has been there since the day he walked into office. 104 00:09:48,400 --> 00:09:51,300 The Press: Can I just ask on the stimulus, Republicans 105 00:09:51,300 --> 00:09:55,430 have already jumped on the fact that yesterday you and two other officials gave what appeared 106 00:09:55,433 --> 00:10:00,863 to be three different answers on how many jobs were created or saved by the stimulus 107 00:10:00,867 --> 00:10:05,737 last year. David Axelrod said over 2 million jobs saved or created. You said 1.5 million. 108 00:10:05,734 --> 00:10:11,004 And Valerie Jarrett was a little more careful in saying, thousands and thousands. Does that 109 00:10:11,000 --> 00:10:15,770 add to the confusion for the American people trying to figure out did this stimulus work 110 00:10:15,767 --> 00:10:18,667 or not, if you've got three different answers about what it's done? 111 00:10:18,667 --> 00:10:21,167 Mr. Gibbs: Well, again, the report that came out two 112 00:10:21,166 --> 00:10:28,196 weeks ago from the Council of Economic Advisers gave the number of 1.5 million to 2 million 113 00:10:28,200 --> 00:10:35,730 in jobs -- 1.5 [million] to 2 million jobs saved or created. Maybe I'm guilty of being 114 00:10:35,734 --> 00:10:44,704 less of a glass half full kind of guy than David Axelrod. But I think the answers that 115 00:10:44,700 --> 00:10:47,330 were given are consistent with the range that CEA -- 116 00:10:47,333 --> 00:10:53,363 The Press: But didn't you also say a week or so ago 117 00:10:53,367 --> 00:10:54,067 that you would not used "saved or created" anymore because Christina Romer was saying 118 00:10:54,066 --> 00:10:55,266 it wasn't certainly the best way to present it? 119 00:10:55,266 --> 00:10:56,136 Mr. Gibbs: Again, the answers that we gave on Sunday 120 00:10:56,133 --> 00:11:01,063 were based on the report that came out I think the 13th or 14th of January, that has the 121 00:11:01,066 --> 00:11:07,166 numbers that David and I and Valerie used in it. So I would point you to that report. 122 00:11:07,166 --> 00:11:07,736 Yes, ma'am. 123 00:11:07,734 --> 00:11:09,404 The Press: Robert, I have two questions, the first one 124 00:11:09,400 --> 00:11:12,430 focusing on the midterm elections. There's been a lot of Democrats who are now sort of 125 00:11:12,433 --> 00:11:17,633 drawing parallels between what happened in 1994 and what might be happening in 2010. 126 00:11:17,633 --> 00:11:22,563 And Marion Barry is quoted in an article saying that the President said to one group behind 127 00:11:22,567 --> 00:11:28,637 the scenes that the difference here between -- here and 1994 was that, "You've got me." 128 00:11:28,633 --> 00:11:31,163 Did the President actually say that, and what does that mean? 129 00:11:31,166 --> 00:11:33,936 Mr. Gibbs: I have not talked to the President about that. 130 00:11:33,934 --> 00:11:36,404 The Press: I mean, is that a message that the President 131 00:11:36,400 --> 00:11:41,630 is broadcasting on the Hill, maybe privately, that he somehow can mitigate some of these losses? 132 00:11:41,633 --> 00:11:44,603 Mr. Gibbs: Well, I don't -- I hope it's not newsworthy 133 00:11:44,600 --> 00:11:49,770 to think that the President hopes and expects to be an effective campaigner in the midterm elections. 134 00:11:49,767 --> 00:11:51,697 The Press: Do you think that the President didn't say this? 135 00:11:51,700 --> 00:11:54,270 Mr. Gibbs: I haven't talked to him, Yunji, so I don't 136 00:11:54,266 --> 00:11:56,536 know the answer to that. 137 00:11:56,533 --> 00:11:59,063 The Press: Moving on then to a Gallup poll that's out 138 00:11:59,066 --> 00:12:03,696 that says the President is the most polarizing -- his approval ratings are the most polarizing 139 00:12:03,700 --> 00:12:07,630 of any President in their first year; that 88 percent of Democrats approve, but just 140 00:12:07,633 --> 00:12:13,263 23 Republicans -- 23 percent of Republicans agree with that. Why do you think that the 141 00:12:13,266 --> 00:12:16,666 President is received so differently by these two groups? 142 00:12:16,667 --> 00:12:20,067 Mr. Gibbs: I think we live in a very divided country. 143 00:12:20,066 --> 00:12:21,636 The Press: Wasn't he supposed to change that? 144 00:12:21,633 --> 00:12:24,933 Mr. Gibbs: And he's worked hard to do that. But, again, 145 00:12:24,934 --> 00:12:30,034 as we've talked about here, Yunji, we -- you can't change the way Washington works 146 00:12:30,033 --> 00:12:32,933 if some people don't want to change the way this place works. 147 00:12:32,934 --> 00:12:35,864 The Press: So are you blaming Washington for that kind 148 00:12:35,867 --> 00:12:37,497 of public perception? 149 00:12:37,500 --> 00:12:39,600 Mr. Gibbs: I'm saying that Washington has been a polarizing 150 00:12:39,600 --> 00:12:45,470 place for quite some time. I think this is a deeply divided country and it has been for 151 00:12:45,467 --> 00:12:45,767 quite some time as well. Helen. 152 00:12:45,767 --> 00:12:48,467 The Press: Does the President think his bonanza bank 153 00:12:48,467 --> 00:12:50,467 bonuses contributed to this downfall -- 154 00:12:50,467 --> 00:12:52,097 Mr. Gibbs: I'm sorry? 155 00:12:52,100 --> 00:12:53,700 The Press: -- political downfall? 156 00:12:53,700 --> 00:12:55,300 Mr. Gibbs: Say again? 157 00:12:55,300 --> 00:12:58,900 The Press: The bonuses that angered the American people -- 158 00:12:58,900 --> 00:13:01,670 Mr. Gibbs: Well, look, I -- 159 00:13:01,667 --> 00:13:05,197 The Press: -- and also the middle class, the poor feeling left behind? 160 00:13:05,200 --> 00:13:11,470 Mr. Gibbs: Look, I think there are a number of things 161 00:13:11,467 --> 00:13:20,567 that over the course of the past year or two years has led to a greater anger and frustration 162 00:13:20,567 --> 00:13:25,867 in the American public about the direction of our economy. There's no doubt that long 163 00:13:25,867 --> 00:13:33,437 before bonuses I would -- look, I think the President has said and would say again that 164 00:13:33,433 --> 00:13:41,703 looking simply at the point at which we got to having to bail out a series of huge banks 165 00:13:41,700 --> 00:13:50,430 that took excessive risk, gambled away our money, and then expected us to prevent them 166 00:13:50,433 --> 00:13:57,633 from taking the economy over the cliff caused an enormous amount of anxiety in this country; 167 00:13:57,633 --> 00:14:02,533 that the President said that nobody wanted to have to be in a position of doing that, 168 00:14:02,533 --> 00:14:09,903 understanding that the flipside of that was watching the economy go over the cliff. It 169 00:14:09,900 --> 00:14:17,870 was not a popular decision, but one that regrettably had to be done. I do think we are now in an 170 00:14:17,867 --> 00:14:23,667 environment, though, where -- and we talked a little about this last week, in terms of 171 00:14:23,667 --> 00:14:32,167 financial reform and the President's proposal on Thursday about certain activities the banks 172 00:14:32,166 --> 00:14:37,696 could or couldn't be involved in -- we have to create an environment through financial 173 00:14:37,700 --> 00:14:44,000 reform that never puts the taxpayer in the position again of, in essence, being held 174 00:14:44,000 --> 00:14:50,900 hostage to or held hostage by a bank like that. That's why we need rules of the road 175 00:14:50,900 --> 00:14:57,030 that are different from what we had in September of 2008 and before that that created that 176 00:14:57,033 --> 00:15:01,203 environment. That's why we need different roles moving forward. And I think that's why 177 00:15:01,200 --> 00:15:05,470 one of the things the President will spend quite a bit of time talking about in the State 178 00:15:05,467 --> 00:15:12,537 of the Union are those new rules, what he would find acceptable on that. Now, Ed, to 179 00:15:12,533 --> 00:15:18,403 build off of what you said, you may look at financial reform as not something that necessarily 180 00:15:18,400 --> 00:15:24,870 does or does not create jobs, but I think creating a framework of certainty on what 181 00:15:24,867 --> 00:15:31,267 the rules of the road are goes directly to both economic anxiety as well as that new 182 00:15:31,266 --> 00:15:37,796 foundation that the President has always spoken about that creates an atmosphere for hiring 183 00:15:37,800 --> 00:15:38,600 in this country. 184 00:15:38,600 --> 00:15:43,800 The Press: Can the banks be trusted to become more aware? 185 00:15:43,800 --> 00:15:45,270 Mr. Gibbs: Well, look, I think some people have taken 186 00:15:45,266 --> 00:15:49,466 steps to limit compensation. I think some have taken steps to change the way bonuses 187 00:15:49,467 --> 00:15:54,697 are awarded in terms of different types of compensation, Helen. But I don't think anybody 188 00:15:54,700 --> 00:16:06,400 here would say that all of their actions meet with a commonsense test of what you -- would 189 00:16:06,400 --> 00:16:10,670 match that commonsense test that most of us would give them each day about whether they 190 00:16:10,667 --> 00:16:15,867 understand what's going on in this country, and understand the level of anxiety around 191 00:16:15,867 --> 00:16:21,667 their actions, based on what the taxpayers had to do in ensuring that they didn't go 192 00:16:21,667 --> 00:16:22,867 over the edge with our economy. 193 00:16:22,867 --> 00:16:25,597 The Press: Can you shake them? 194 00:16:25,600 --> 00:16:29,030 Mr. Gibbs: I think that, again, through financial regulatory 195 00:16:29,033 --> 00:16:42,263 reform, we created an environment in which they're unable to -- they're unable to, through 196 00:16:42,266 --> 00:16:50,066 their excessive risk-taking, which, again, we would hope to move backwards, but also 197 00:16:50,066 --> 00:16:55,636 not allowing them to be able to once and for all take us over that cliff. Chip. 198 00:16:55,633 --> 00:17:00,363 The Press: Following up on that poll that Yunji mentioned, 199 00:17:00,367 --> 00:17:04,467 I mean, it really is pretty remarkable that the President would talk so much about reaching 200 00:17:04,467 --> 00:17:07,637 across the aisle is now the President who presides over the most polarized Washington 201 00:17:07,633 --> 00:17:11,663 in a very long time, are you suggesting that he does not share in the blame for that? Does 202 00:17:11,667 --> 00:17:13,497 he not share in the blame for that? 203 00:17:13,500 --> 00:17:15,870 Mr. Gibbs: No. I think everybody in Washington share 204 00:17:15,867 --> 00:17:21,137 the blame. But again, Chip, I think we've discussed this here. I mean, how many time 205 00:17:21,133 --> 00:17:25,303 has the filibuster been used in -- how many times was the filibuster used in 2009? 206 00:17:25,300 --> 00:17:27,800 The Press: I can't give you a number -- 207 00:17:27,800 --> 00:17:27,870 Mr. Gibbs: No, no, no, I'm not -- 208 00:17:27,867 --> 00:17:27,937 The Press: -- but it was a lot. 209 00:17:27,934 --> 00:17:29,764 Mr. Gibbs: -- I'm sorry, it was more of a rhetorical 210 00:17:29,767 --> 00:17:30,367 question. 211 00:17:30,367 --> 00:17:32,867 The Press: But was used a lot by Democrats, too. 212 00:17:32,867 --> 00:17:35,267 Mr. Gibbs: Right. But, again, what I'm saying is it was 213 00:17:35,266 --> 00:17:43,996 -- not to give credence to when it was used in the past, but understand I think we've 214 00:17:44,000 --> 00:17:48,170 found it remarkable, and I think most people would find it remarkable the level that it 215 00:17:48,166 --> 00:17:54,696 has been used on things that ultimately ended up being, through the ultimate approval of 216 00:17:54,700 --> 00:18:02,570 the legislation, non-controversial. When you filibuster something that is ultimately approved 217 00:18:02,567 --> 00:18:06,697 with 88 or 90 votes, what were you filibustering? 218 00:18:06,700 --> 00:18:13,770 The Press: Well, I mean, the standard that anything remotely 219 00:18:13,767 --> 00:18:16,297 controversial needs 60 votes has been around for a while. It wasn't invented by Republicans last year. 220 00:18:16,300 --> 00:18:18,670 Mr. Gibbs: No, but it's been employed with great regularity 221 00:18:18,667 --> 00:18:21,837 in a sense I think unseen before. 222 00:18:21,834 --> 00:18:23,664 The Press: I think they would argue that the reason is 223 00:18:23,667 --> 00:18:27,567 that this President hasn't been willing to -- other than talk to them, he hasn't 224 00:18:27,567 --> 00:18:30,867 been willing to really reach across the aisle and compromise with them. 225 00:18:30,867 --> 00:18:32,637 Mr. Gibbs: You know, we can go back and forth on this. 226 00:18:32,633 --> 00:18:37,763 But if you -- what do you think they would say on something they ultimately voted for 227 00:18:37,767 --> 00:18:45,667 88-10? I mean, I think it's -- you know, I think that in and of itself -- 228 00:18:45,667 --> 00:18:46,137 The Press: Isn't that a diversion, though, because they 229 00:18:46,133 --> 00:18:51,863 weren't really trying to block it, that was just -- the 60 votes has just become standardized. 230 00:18:51,867 --> 00:18:53,667 It's pretty much becomes standardized under Democrats, too. 231 00:18:53,667 --> 00:18:57,867 Mr. Gibbs: I would say I think that goes to the gamesmanship 232 00:18:57,867 --> 00:19:06,067 that gets played in this town that people throughout this country are simply tired of watching. 233 00:19:06,066 --> 00:19:08,236 The Press: On the middle class proposals, President Clinton, 234 00:19:08,233 --> 00:19:14,003 of course, was famous for small-bore or modest proposals that did not do a tremendous amount, 235 00:19:14,000 --> 00:19:19,400 they didn't change -- they weren't change in any big way but they were very politically 236 00:19:19,400 --> 00:19:22,570 popular. Is that what this is modeled after? 237 00:19:22,567 --> 00:19:25,567 Mr. Gibbs: No. This -- increasing the child and dependent 238 00:19:25,567 --> 00:19:31,937 care tax credit was something the President talked about in the campaign. A system of 239 00:19:31,934 --> 00:19:38,234 automatic IRAs, increasing the saver's credit for retirement savings, are all things that 240 00:19:38,233 --> 00:19:43,563 the President talked about in his campaign. The first bill he ever introduced in the United 241 00:19:43,567 --> 00:19:50,037 States Senate had to do with college affordability -- in that case, increasing Pell Grants; 242 00:19:50,033 --> 00:19:57,503 in this case, ensuring that somebody doesn't -- somebody is not prevented from going to 243 00:19:57,500 --> 00:20:03,470 college because they simply can't afford it. And if they have to borrow money, as millions 244 00:20:03,467 --> 00:20:10,067 and millions of people do, that they don't find themselves on the other end of that, 245 00:20:10,066 --> 00:20:16,666 particularly in an economy where jobs are hard to come by, crushed by the overwhelming 246 00:20:16,667 --> 00:20:23,737 payments that have to come in paying that loan back. I think -- it's been a while since 247 00:20:23,734 --> 00:20:28,434 I was in college, but I think you have -- I think there's a six-month period once you 248 00:20:28,433 --> 00:20:33,603 get out of college to when you start paying that loan back -- at least that's my memory 249 00:20:33,600 --> 00:20:43,030 from my college days. I think a proposal that doesn't find a recent college graduate trying 250 00:20:43,033 --> 00:20:48,263 desperately to find a job crushed by those payments, you know -- 251 00:20:48,266 --> 00:20:50,136 The Press: But it's certainly not on the order of magnitude 252 00:20:50,133 --> 00:21:00,263 of a health care reform bill that just completely changes one-sixth of the economy. I mean, 253 00:21:00,266 --> 00:21:04,036 these are very modest steps here. It wasn't long ago he was talking about -- 254 00:21:04,033 --> 00:21:05,363 Mr. Gibbs: Chip, I don't -- 255 00:21:05,367 --> 00:21:08,667 The Press: -- dramatic change, and now he's talking about 256 00:21:08,667 --> 00:21:10,467 these little modest proposals. 257 00:21:10,467 --> 00:21:12,667 Mr. Gibbs: No, Chip, I think you'll hear the President 258 00:21:12,667 --> 00:21:21,297 talk about health care reform in the State of the Union. But, Chip, I don't think somebody 259 00:21:21,300 --> 00:21:27,370 struggling with high college costs and capping what they have to pay as part of their income 260 00:21:27,367 --> 00:21:34,437 so that they don't drown in those repayments -- or, God forbid, decide on the front end, 261 00:21:34,433 --> 00:21:39,503 you know what, I can't afford this, I can't afford to borrow the money; if I borrow the 262 00:21:39,500 --> 00:21:44,670 money I'll be crushed when I get out of college; why don't I just not go? I think everybody 263 00:21:44,667 --> 00:22:15,567 would -- I think there are thousands of studies that -- I mean, how many thousands of studies do we have of, over a 264 00:22:15,567 --> 00:22:20,337 lifetime, what a college graduate makes versus somebody that didn't go to college? And 265 00:22:20,333 --> 00:22:25,003 if somebody makes that decision not to go to college because of the cost that they think 266 00:22:25,000 --> 00:22:29,000 they're going to struggle with both while they're in college and when they get out, 267 00:22:29,000 --> 00:22:36,500 they may be making a very short-term decision with very, very long-term ramifications for 268 00:22:36,500 --> 00:22:43,630 where they're going to end up. Not everybody can go to Europe and play basketball and go 269 00:22:43,633 --> 00:22:47,163 to the NBA. Some people are going to have to -- a lot of us are going to have to go 270 00:22:47,166 --> 00:22:52,436 to college to get a better job. And I think whether it is struggling with child care because 271 00:22:52,433 --> 00:22:57,863 you have to work longer, whether it is capping the payments that you have to make when you 272 00:22:57,867 --> 00:23:04,737 borrow money to go to college, or providing a genuine sense of security in retirement 273 00:23:04,734 --> 00:23:06,164 is important for the American people. 274 00:23:06,166 --> 00:23:08,066 The Press: On health care, last week -- and I'm paraphrasing, 275 00:23:08,066 --> 00:23:14,966 but I believe it's accurate to say that you said the President still wants to pass and 276 00:23:14,967 --> 00:23:19,897 believes he can pass something on the level with -- something as comprehensive and -- 277 00:23:19,900 --> 00:23:25,970 as comprehensive as the bill that's now pending before the House and the Senate. Does he still 278 00:23:25,967 --> 00:23:27,237 feel that way? 279 00:23:27,233 --> 00:23:28,333 Mr. Gibbs: Yes. 280 00:23:28,333 --> 00:23:28,903 The Press: He's not backing off one iota? 281 00:23:28,900 --> 00:23:30,700 Mr. Gibbs: No. I mean, I think, again, you can refer 282 00:23:30,700 --> 00:23:39,170 to what a number of us said yesterday on the shows. The problems that surrounded health 283 00:23:39,166 --> 00:23:44,066 care, the reason the President endeavored to reform a system that wasn't working for 284 00:23:44,066 --> 00:23:51,966 a lot of Americans, was because crushing health care costs, skyrocketing premiums for small 285 00:23:51,967 --> 00:23:56,197 businesses, getting crushed budgetarily in the federal government -- those problems have 286 00:23:56,200 --> 00:24:01,800 existed for quite some time, and even after Massachusetts they exist today. 287 00:24:01,800 --> 00:24:04,170 The Press: But the President himself said what he wants 288 00:24:04,166 --> 00:24:11,366 to do is coalesce around the most popular elements. And to say that he also wants to 289 00:24:11,367 --> 00:24:13,767 pass this massive comprehensive reform just seem direct contradictions. Which does he 290 00:24:13,767 --> 00:24:14,367 want to do? 291 00:24:14,367 --> 00:24:17,537 Mr. Gibbs: No, I think the President believes that the 292 00:24:17,533 --> 00:24:24,963 circumstances that led him to undertake greater security for people in their health care costs, 293 00:24:24,967 --> 00:24:30,097 again, existed last year, last week and this week. 294 00:24:30,100 --> 00:24:38,770 The Press: I have a few unrelated questions this morning. 295 00:24:38,767 --> 00:24:49,637 On Bernanke, this morning Senator Gregg said on MSNBC that he thought Bernanke was being 296 00:24:49,633 --> 00:24:59,403 scapegoated by colleagues on both sides of the aisle but that the President had fed that 297 00:24:59,400 --> 00:25:05,470 with his populist fervor. I wonder whether the President takes any responsibility or 298 00:25:05,467 --> 00:25:06,237 if there's any concern that he's playing with fire when he whips up kind of this populist 299 00:25:06,233 --> 00:25:06,303 fervor that then -- 300 00:25:06,300 --> 00:25:06,400 Mr. Gibbs: Populist fervor based on? 301 00:25:06,400 --> 00:25:06,530 The Press: Just anger at Wall Street, you know, they're 302 00:25:06,533 --> 00:25:06,733 paying themselves big fat bonuses, we want to tax them, we're going to get your money 303 00:25:06,734 --> 00:25:06,804 back, everybody is angry. 304 00:25:06,800 --> 00:25:09,430 Mr. Gibbs: I don't think any of what you just said the 305 00:25:09,433 --> 00:25:14,133 President would believe isn't true, and I don't think he would -- I don't think many 306 00:25:14,133 --> 00:25:17,903 of the American people would believe that. I mean, again, take, for instance, what the 307 00:25:17,900 --> 00:25:25,670 President has -- the last two proposals the President has outlined: one, a fee on banks, 308 00:25:25,667 --> 00:25:32,797 reporting -- many of them reporting big profits, paying back in full the money lent to them 309 00:25:32,800 --> 00:25:34,430 by the American people -- 310 00:25:34,433 --> 00:25:35,233 The Press: I guess the question is, by stirring up anger 311 00:25:35,233 --> 00:25:38,603 at Wall Street, is there a downside to that -- 312 00:25:38,600 --> 00:25:43,830 Mr. Gibbs: No, because I think in many ways, as we discussed 313 00:25:43,834 --> 00:25:53,634 and as I told Helen, I think that anger exists. That anger -- I doubt many proposals that 314 00:25:53,633 --> 00:25:57,703 the President has made over the course of the past year have brought together The New 315 00:25:57,700 --> 00:26:04,870 York Times and the Wall Street Journal, but each talked about the notion that the relationship 316 00:26:04,867 --> 00:26:13,597 in what banks are able to do if they're getting money at a discount rate of virtually nothing 317 00:26:13,600 --> 00:26:21,970 -- going back to your question about rates from the Fed -- using that money to do proprietary 318 00:26:21,967 --> 00:26:27,897 trading not for their clients but only for themselves, is a proposal that many on the 319 00:26:27,900 --> 00:26:34,630 left and the right agree is the right step forward. And again all of this is built around, 320 00:26:34,633 --> 00:26:40,703 as I talked about last week and again today, the notion that we have to change those rules 321 00:26:40,700 --> 00:26:46,300 so that the American people never find themselves in a position of having to do in September 322 00:26:46,300 --> 00:26:54,970 and October of 2008 and other times in 2009 in preventing excessive risk-taking from threatening 323 00:26:54,967 --> 00:26:58,937 the entire economy, something that the American taxpayers weren't involved in but are footing 324 00:26:58,934 --> 00:27:04,404 the bill for. I think those are -- again, I think the proposals that the President outlined 325 00:27:04,400 --> 00:27:08,770 last week and in the weeks before that are very, very commonsense proposals. 326 00:27:08,767 --> 00:27:16,697 The Press: On the State of the Union, do you all view 327 00:27:16,700 --> 00:27:16,730 it as a reset of his message? 328 00:27:16,734 --> 00:27:19,534 Mr. Gibbs: No, look, I think if you go back and -- I 329 00:27:19,533 --> 00:27:24,233 think if you go look at what the President talked about in Ohio on Friday and you look 330 00:27:24,233 --> 00:27:28,663 at a lot of what the President talked about throughout the first year and throughout the 331 00:27:28,667 --> 00:27:34,237 campaign, you'll find a remarkable amount of similarity. Quite frankly, I mean, in all 332 00:27:34,233 --> 00:27:40,333 honesty, go back to 2004 at the convention and you'll see a lot of that there, as well. 333 00:27:40,333 --> 00:27:41,463 The Press: Will he be downplaying health care? 334 00:27:41,467 --> 00:27:44,167 Mr. Gibbs: No. 335 00:27:44,166 --> 00:27:45,496 The Press: I have one more, but I forgot. 336 00:27:45,500 --> 00:27:50,030 (laughter) 337 00:27:50,033 --> 00:27:51,763 Mr. Gibbs: I'm sure they'll yield you time -- 338 00:27:51,767 --> 00:27:52,697 The Press: I just remembered it now, but -- 339 00:27:52,700 --> 00:27:53,600 The Press: Go ahead. 340 00:27:53,600 --> 00:27:55,070 The Press: You know what, we got a lot of first row time here today. 341 00:27:55,066 --> 00:27:56,466 (laughter) 342 00:27:56,467 --> 00:27:57,667 The Press: Going back to the -- 343 00:27:57,667 --> 00:27:59,637 Mr. Gibbs: I didn't say that. 344 00:27:59,633 --> 00:28:02,233 The Press: Going back to your comments about Republican 345 00:28:02,233 --> 00:28:06,133 tactics, Robert, does the President see the State of the Union as an opportunity to extend 346 00:28:06,133 --> 00:28:10,933 an olive branch in any way or to ask them to change their tactics? 347 00:28:10,934 --> 00:28:13,264 Mr. Gibbs: I think the President will -- I do think the 348 00:28:13,266 --> 00:28:19,436 President will talk about, one, how we change the way Washington works; and also talk about 349 00:28:19,433 --> 00:28:22,663 the fact that there's no doubt we all have to work together. 350 00:28:22,667 --> 00:28:25,337 The Press: What do you mean by "change" how it works? 351 00:28:25,333 --> 00:28:28,063 Mr. Gibbs: Well, again, I'm not going to get ahead of 352 00:28:28,066 --> 00:28:29,966 where the President is, but I think the President will talk about -- 353 00:28:29,967 --> 00:28:30,937 The Press: Is he going to explain it? 354 00:28:30,934 --> 00:28:32,004 Mr. Gibbs: He will in some detail. 355 00:28:32,000 --> 00:28:33,630 The Press: Do you know how many Presidents have gone 356 00:28:33,633 --> 00:28:39,103 to Congress and made speeches with the theme "We have to change the way Washington works"? 357 00:28:39,100 --> 00:28:40,270 Mr. Gibbs: Forty-three, I guess. 358 00:28:40,266 --> 00:28:43,366 (laughter) 359 00:28:43,367 --> 00:28:50,437 And I'm including this presidency because I'm assuming that George Washington, since 360 00:28:50,433 --> 00:28:54,463 he set it up, felt they got it pretty darn right, and therefore, we're going to stick 361 00:28:54,467 --> 00:29:00,737 -- stay pat. So I'm obviously being facetious. But, no, I assume -- I assume everybody does. 362 00:29:00,734 --> 00:29:05,164 But my sense is that a lot of the reason that that happens is because of the way this town 363 00:29:05,166 --> 00:29:10,436 tends to work. So I think it will bear mention again. 364 00:29:10,433 --> 00:29:13,263 The Press: And on -- one more on the job numbers. It's 365 00:29:13,266 --> 00:29:18,466 sort of a moving target on how many jobs have been saved or created. Is it possible to just 366 00:29:18,467 --> 00:29:20,997 flat out say how many jobs have been created? 367 00:29:21,000 --> 00:29:23,870 Mr. Gibbs: Well, again, I point you to the report from -- 368 00:29:23,867 --> 00:29:25,567 The Press: Not saying -- but how many -- will you at 369 00:29:25,567 --> 00:29:27,597 some point be able to say how many jobs have been created, period? 370 00:29:27,600 --> 00:29:31,070 Mr. Gibbs: Well, as you know -- as you know -- well, 371 00:29:31,066 --> 00:29:39,196 I would simply point you to the reports that are gotten in by grant recipients that -- 372 00:29:39,200 --> 00:29:47,830 again, grant recipients that have to file paperwork about the employment impact of the 373 00:29:47,834 --> 00:29:56,534 money that they get. Look, we're going to get new GDP numbers on Friday. And I think 374 00:29:56,533 --> 00:30:06,163 we saw, as a result of the Recovery Act, at the end of last quarter, the first positive 375 00:30:06,166 --> 00:30:14,096 economic growth in four quarters. Our hope is that you'll see another strong number on 376 00:30:14,100 --> 00:30:21,530 Friday. We've never in this country -- let me just not say that, because the economists 377 00:30:21,533 --> 00:30:30,903 might come back with a month for me. But there's no doubt that it is -- it's hard to create 378 00:30:30,900 --> 00:30:39,370 jobs in this country without positive economic growth, that without strong economic growth, 379 00:30:39,367 --> 00:30:46,867 strong job growth is next to impossible. I think on Friday, we'll hopefully get a report 380 00:30:46,867 --> 00:30:57,137 card on particularly how the Recovery Act has helped create economic growth that will 381 00:30:57,133 --> 00:30:59,033 lead to job growth. 382 00:30:59,033 --> 00:31:01,263 The Press: What's your reaction to reports that the New 383 00:31:01,266 --> 00:31:09,096 York Fed wanted national security status for some AIG details, and what does that say about transparency? 384 00:31:09,100 --> 00:31:14,070 Mr. Gibbs: I haven't seen that and I would point you 385 00:31:14,066 --> 00:31:16,496 to Treasury if you have specific questions -- or, quite frankly, the New York Fed. I 386 00:31:16,500 --> 00:31:16,800 haven't seen those reports. 387 00:31:16,800 --> 00:31:17,470 The Press: Okay. And Senator Bayh said the President 388 00:31:17,467 --> 00:31:26,867 may propose a freeze in most federal discretionary spending in the State of the Union. Can you 389 00:31:26,867 --> 00:31:29,267 say anything about that? 390 00:31:29,266 --> 00:31:32,596 Mr. Gibbs: Look, the President, as I said earlier to 391 00:31:32,600 --> 00:31:37,670 Jennifer's question, the President will talk about ensuring that we begin to get our fiscal 392 00:31:37,667 --> 00:31:44,837 house in order, that we have to start making decisions like American families are making 393 00:31:44,834 --> 00:31:54,364 decisions about whether or not we can afford to spend as we have over the past many years. 394 00:31:54,367 --> 00:31:58,797 I don't want to get into the details of that right now from here, but suffice to say that 395 00:31:58,800 --> 00:32:02,770 will be part of the State of the Union -- discussing fiscal responsibility. 396 00:32:02,767 --> 00:32:05,167 The Press: And has he reached out to Senator Kaufman 397 00:32:05,166 --> 00:32:07,996 at all now that we know that Beau Biden is not going to be running? 398 00:32:08,000 --> 00:32:09,800 Mr. Gibbs: I have not seen a call. I have not seen a 399 00:32:09,800 --> 00:32:11,170 call. Yes, sir. 400 00:32:11,166 --> 00:32:15,436 The Press: Robert, is there a new deadline for health care? 401 00:32:15,433 --> 00:32:17,003 Mr. Gibbs: Not that I know of, no. 402 00:32:17,000 --> 00:32:21,130 The Press: Is there a way forward? 403 00:32:21,133 --> 00:32:24,803 Mr. Gibbs: The President has continued to talk to leaders 404 00:32:24,800 --> 00:32:27,530 in Congress about the best path forward, yes. 405 00:32:27,533 --> 00:32:30,663 The Press: Will he recommend one Wednesday? 406 00:32:30,667 --> 00:32:33,737 Mr. Gibbs: I would encourage you to tune in on Wednesday. 407 00:32:33,734 --> 00:32:36,904 The Press: A couple things that were discussed with you 408 00:32:36,900 --> 00:32:42,200 on the Sunday show yesterday about Abdulmutallab. There was an AP report yesterday that said 409 00:32:42,200 --> 00:32:47,700 he was only interrogated for 50 minutes. You indicated -- said that you thought it was 410 00:32:47,700 --> 00:32:52,200 much longer than that. It then was characterized to some of our people it was up to 30 hours. 411 00:32:52,200 --> 00:32:58,330 Can you reconcile that discrepancy and describe how long -- what you know about that sequence 412 00:32:58,333 --> 00:33:04,203 of events and the degree to which adequate interrogation was undertaken? 413 00:33:04,200 --> 00:33:05,600 Mr. Gibbs: Well -- 414 00:33:05,600 --> 00:33:07,230 The Press: I know you represented that, but there seems 415 00:33:07,233 --> 00:33:11,833 to be -- 50 minutes and 30 hours is an enormously different time sequence. 416 00:33:11,834 --> 00:33:16,864 Mr. Gibbs: Well, I think a timeline -- I think some of 417 00:33:16,867 --> 00:33:22,967 that information we're certainly trying to gather. I would say this, Major, that as I've 418 00:33:22,967 --> 00:33:27,397 said before and as I said I think the first time I had a chance to answer questions on 419 00:33:27,400 --> 00:33:37,830 this topic coming back from the holidays, the FBI did have an opportunity to interrogate 420 00:33:37,834 --> 00:33:47,364 Mr. Abdulmutallab; that they got intelligence, useful and actionable intelligence, that was 421 00:33:47,367 --> 00:33:57,667 then transmitted back to officials throughout the government. This was done by experienced 422 00:33:57,667 --> 00:34:05,637 FBI interrogators. And that's all I have on that. 423 00:34:05,633 --> 00:34:06,333 The Press: Is 50 minutes just wrong? 424 00:34:06,333 --> 00:34:07,663 Mr. Gibbs: That's one of the questions that I have -- 425 00:34:07,667 --> 00:34:10,037 that I've asked somebody to pull up. 426 00:34:10,033 --> 00:34:12,433 The Press: Okay. In the Justice Department release talking 427 00:34:12,433 --> 00:34:15,903 about this timeline, it said, "The National Security staff and the President's national 428 00:34:15,900 --> 00:34:22,900 security team were advised of the decision to try Abdulmutallab as a civilian, not as 429 00:34:22,900 --> 00:34:26,170 an enemy combatant." Do you know who that went through, and did that go all the way 430 00:34:26,166 --> 00:34:26,196 to the President? 431 00:34:26,200 --> 00:34:30,070 Mr. Gibbs: Let me check with Ben on that. I don't -- 432 00:34:30,066 --> 00:34:34,136 I did not see that part of what you were talking about. 433 00:34:34,133 --> 00:34:35,733 The Press: Okay. On the student loan, I may be very ignorant 434 00:34:35,734 --> 00:34:42,634 about this, but if you reduce the rate of payment, doesn't that make the loan over time 435 00:34:42,633 --> 00:34:47,363 more expensive for the student loan applicant? 436 00:34:47,367 --> 00:34:50,667 Mr. Gibbs: They'll have to -- I think they're doing a 437 00:34:50,667 --> 00:34:53,797 briefing -- I think they're doing a briefing call on this with Jared in a few minutes that 438 00:34:53,800 --> 00:34:54,800 I would point you to. 439 00:34:54,800 --> 00:34:58,730 The Press: So that's not a problem? 440 00:34:58,734 --> 00:35:00,934 Mr. Gibbs: Ask Jared, and he'll go through the details 441 00:35:00,934 --> 00:35:02,764 of that. Yes, ma'am. 442 00:35:02,767 --> 00:35:04,867 The Press: Back on the question of changing the way Washington 443 00:35:04,867 --> 00:35:12,537 works, given how central that was to the campaign, why is he having to re-argue the case now? 444 00:35:12,533 --> 00:35:17,563 And is he going to do it in some kind of different way, or is this going back to the original 445 00:35:17,567 --> 00:35:22,097 argument he made during the campaign? I mean, he made this case. This is not a new idea for him. 446 00:35:22,100 --> 00:35:28,570 Mr. Gibbs: Right. I would posit that not all those ideas 447 00:35:28,567 --> 00:35:37,767 have been heard and implemented. I think that's one of the -- you'll hear him talk about reforming 448 00:35:37,767 --> 00:35:45,437 Washington. He talked about it in the -- he talked about it as a state senator, he 449 00:35:45,433 --> 00:35:49,803 worked on it as a U.S. senator, talked about it as a candidate, and will talk about it 450 00:35:49,800 --> 00:35:51,270 again as President. 451 00:35:51,266 --> 00:35:53,596 The Press: In the themes you described, health care wasn't 452 00:35:53,600 --> 00:35:56,630 one of the main ones. Is it just going to be tucked into some of the others? 453 00:35:56,633 --> 00:35:59,563 Mr. Gibbs: No, I think when you hear the speech, you 454 00:35:59,567 --> 00:36:07,267 won't have to lean forward to hear a discussion about health care. I was giving -- I was giving 455 00:36:07,266 --> 00:36:09,896 broader themes, not a litany of issues. 456 00:36:09,900 --> 00:36:11,470 The Press: And is he going to do events around the State 457 00:36:11,467 --> 00:36:15,837 of the Union? What other outside the country -- around-the-country stuff might he do? 458 00:36:15,834 --> 00:36:20,204 Mr. Gibbs: Well, I know we're traveling to Florida the 459 00:36:20,200 --> 00:36:27,330 day after the State of the Union on Thursday. And I think the President speaks to the Republican 460 00:36:27,333 --> 00:36:32,903 House Caucus, I believe, in Baltimore on Friday. Then there's travel I think the next week, 461 00:36:32,900 --> 00:36:36,930 as well. I'm trying not to get ahead of what we've already announced. And I'm trying to 462 00:36:36,934 --> 00:36:38,904 go through my head what we have already announced. 463 00:36:38,900 --> 00:36:40,400 (laughter) 464 00:36:40,400 --> 00:36:44,530 If any of that seems new, then I'd like to be a senior administration official. 465 00:36:44,533 --> 00:36:48,533 (laughter) 466 00:36:48,533 --> 00:36:50,363 Yes, sir. 467 00:36:50,367 --> 00:36:54,737 The Press: Yes, Robert, just briefly on -- back to deficit. 468 00:36:54,734 --> 00:37:00,164 Harry Reid proposed some new pay-go rules up on the Hill today, tougher rules that would 469 00:37:00,166 --> 00:37:05,236 be part of the debt limit raising. Does the President support that stuff? Is that -- 470 00:37:05,233 --> 00:37:07,403 Mr. Gibbs: I would have to look at exactly -- not having 471 00:37:07,400 --> 00:37:13,070 seen exactly what he proposed, but I think that's part of what the Senate we hope will 472 00:37:13,066 --> 00:37:15,466 vote on in the next few days and the President supports. 473 00:37:15,467 --> 00:37:18,437 The Press: One thing that did strike me about those rules 474 00:37:18,433 --> 00:37:21,133 is that they would also apply to extensions of unemployment benefits. Is that again something -- 475 00:37:21,133 --> 00:37:24,063 Mr. Gibbs: Again, let me -- without having seen Senator 476 00:37:24,066 --> 00:37:28,836 Reid's proposal, I'm happy to have somebody look at it and get you an answer. Ann. 477 00:37:28,834 --> 00:37:30,004 The Press: Can you enlighten us a little bit about how 478 00:37:30,000 --> 00:37:34,730 the President goes about this State of the Union address? Is he sitting down today, tomorrow 479 00:37:34,734 --> 00:37:41,764 with speechwriters? How much does he write? Does he practice with the teleprompter? 480 00:37:41,767 --> 00:37:45,767 Mr. Gibbs: They spent time over the weekend working on it. 481 00:37:45,767 --> 00:37:46,697 The Press: They, who? 482 00:37:46,700 --> 00:37:49,330 Mr. Gibbs: I'm sorry, the President and the speechwriters, 483 00:37:49,333 --> 00:37:59,933 primarily with Jon and Ben -- both of whom were back in the Oval Office this morning, 484 00:37:59,934 --> 00:38:04,404 both with the President and with a larger group of advisors going through the speech. 485 00:38:04,400 --> 00:38:10,570 I, again, don't have tomorrow's schedule in front of me, but I believe that he'll do some 486 00:38:10,567 --> 00:38:16,167 of the practicing that you talk about, as well as continuing to write and work through 487 00:38:16,166 --> 00:38:18,136 different sections of the speech. 488 00:38:18,133 --> 00:38:22,363 The Press: And is it more -- is it less of a laundry 489 00:38:22,367 --> 00:38:29,037 list of specifics that he wants to get and more thematic? Is it looking forward weeks 490 00:38:29,033 --> 00:38:31,263 ahead, months ahead, years ahead? 491 00:38:31,266 --> 00:38:38,336 Mr. Gibbs: Well, Ann, I think he'll do -- I think you'll 492 00:38:38,333 --> 00:38:43,833 see certainly aspects of it that are -- that he will discuss the themes that some of which 493 00:38:43,834 --> 00:38:50,804 I outlined here from a broader perspective. There will be mention of -- we'll go from 494 00:38:50,800 --> 00:38:57,430 themes to issues when we discuss creating jobs, some of the task force, Middle Class 495 00:38:57,433 --> 00:39:06,263 Task Force recommendations on things like that. I think he'll provide people with an 496 00:39:06,266 --> 00:39:13,136 update on what -- where we've come from but how much we have yet to do to get our economy 497 00:39:13,133 --> 00:39:21,463 back on track, to restore our image in the world -- a host of the things that he talked 498 00:39:21,467 --> 00:39:22,037 about last year. 499 00:39:22,033 --> 00:39:23,133 The Press: Guests in the gallery? 500 00:39:23,133 --> 00:39:27,703 Mr. Gibbs: I don't have a final list but we can certainly get that. 501 00:39:27,700 --> 00:39:29,100 The Press: He will have some. 502 00:39:29,100 --> 00:39:29,900 Mr. Gibbs: Yes. 503 00:39:29,900 --> 00:39:31,770 The Press: Robert, the legislative deficit commission 504 00:39:31,767 --> 00:39:35,497 the President endorsed on Saturday, does he see that as interchangeable with the executive 505 00:39:35,500 --> 00:39:37,900 commission or are they -- is it superior to anything? 506 00:39:37,900 --> 00:39:41,800 Mr. Gibbs: Well, I think in many ways -- I think some 507 00:39:41,800 --> 00:39:49,800 of it would -- I think many of the characteristics might well overlap. A legislative commission 508 00:39:49,800 --> 00:39:58,670 was the preference of many on Capitol Hill. If that fails, then obviously other steps 509 00:39:58,667 --> 00:40:03,237 might be looked at in order to address what the President -- again, what the President 510 00:40:03,233 --> 00:40:10,133 will discuss in terms of a -- the medium and long term problems that we have with our debts 511 00:40:10,133 --> 00:40:10,903 and our deficits. 512 00:40:10,900 --> 00:40:13,630 The Press: You said "medium and long term." Do you mean 513 00:40:13,633 --> 00:40:14,403 after the recession? 514 00:40:14,400 --> 00:40:20,700 Mr. Gibbs: Well, right. I mean, obviously there is -- 515 00:40:20,700 --> 00:40:29,070 economically to pull greatly back at a time of enormous economic uncertainty and recession 516 00:40:29,066 --> 00:40:38,036 I think almost any economist would tell you would have -- could possibly have a very negative 517 00:40:38,033 --> 00:40:43,933 impact on the continuing recovery, yes. Yes, ma'am. 518 00:40:43,934 --> 00:40:46,904 The Press: Robert, on the deficit commission, this proposal, 519 00:40:46,900 --> 00:40:50,930 certainly the larger issue has been around for a while. Why did the President choose 520 00:40:50,934 --> 00:40:57,104 now to come out and support this idea? And second quick question, whether it is -- the 521 00:40:57,100 --> 00:41:00,330 proposal we see going through Congress or something you guys might implement through 522 00:41:00,333 --> 00:41:03,433 executive order? In the past, these types of commissions Presidents have ruled out ahead 523 00:41:03,433 --> 00:41:09,563 of times certain solutions. For example, on Social Security President Bush said no tax 524 00:41:09,567 --> 00:41:14,037 cuts. Is there anything at this point you guys are willing to rule out via tax -- or 525 00:41:14,033 --> 00:41:19,063 excuse me, tax increases -- via tax increases, entitlement benefit cuts, raise the retirement 526 00:41:19,066 --> 00:41:20,836 age, or is everything on the table? 527 00:41:20,834 --> 00:41:23,534 Mr. Gibbs: Well, I don't want to prejudge either a legislative 528 00:41:23,533 --> 00:41:30,363 or an executive one. I mean, obviously the President's statement comes prior to the Senate 529 00:41:30,367 --> 00:41:38,797 voting on a proposal, again, that Democrats and Republicans have outlined as a way forward 530 00:41:38,800 --> 00:41:45,430 in dealing with some larger and sometimes intractable budget debates. Again, I don't 531 00:41:45,433 --> 00:41:52,863 think it makes a lot of sense for me, before the legislative vote or before even the existence 532 00:41:52,867 --> 00:42:03,437 of a possible executive -- an executive commission, to get into talking about what would and wouldn't 533 00:42:03,433 --> 00:42:07,433 be on the table. I think that is -- whether it's a legislative commission or some other 534 00:42:07,433 --> 00:42:11,663 commission, I think that's what that commission has to work through. Those are the debates. 535 00:42:11,667 --> 00:42:14,967 The Press: And as far as when he came out now -- 536 00:42:14,967 --> 00:42:19,797 Mr. Gibbs: I think because this is something that will 537 00:42:19,800 --> 00:42:23,200 come to a vote sometime this week. Peter. 538 00:42:23,200 --> 00:42:26,470 The Press: Robert, thank you. Is the President prepared 539 00:42:26,467 --> 00:42:31,997 to, when he talked about changing Washington, talk in specific terms about what needs to 540 00:42:32,000 --> 00:42:38,800 happen to do that and what specific ways it can be done? For example, you know, entertain 541 00:42:38,800 --> 00:42:44,600 Republican ideas on tort reform as health care goes, or reaching out in a more bipartisan way -- 542 00:42:44,600 --> 00:42:47,900 Mr. Gibbs: I don't know if tort reform would fall under 543 00:42:47,900 --> 00:42:58,070 the rubric of the way the legislative process works. Obviously the Secretary of Health and 544 00:42:58,066 --> 00:43:08,696 Human Services has set up a series of demonstration projects that deal with both health care costs 545 00:43:08,700 --> 00:43:15,800 and the legal system. But, again, I think the President will spend some time talking 546 00:43:15,800 --> 00:43:19,830 directly about ideas for reforming Washington, yes. 547 00:43:19,834 --> 00:43:21,864 The Press: Specific ways it can be accomplished? 548 00:43:21,867 --> 00:43:24,597 Mr. Gibbs: Yes. Yes, sir. 549 00:43:24,600 --> 00:43:26,200 The Press: President Karzai is heading to the Afghan 550 00:43:26,200 --> 00:43:30,870 conference in London this week, and he's saying that he's going to ask for the names of some 551 00:43:30,867 --> 00:43:37,737 Taliban people to be taken off the U.N. sanctions list in return for them laying down their 552 00:43:37,734 --> 00:43:42,134 arms and countenancing talks. Is this something the White House would be prepared to look at? 553 00:43:42,133 --> 00:43:48,603 Mr. Gibbs: Well, I would simply say that you've heard 554 00:43:48,600 --> 00:43:58,330 General Petraeus, out of his efforts in Iraq, discuss similar type efforts in Afghanistan 555 00:43:58,333 --> 00:44:07,263 at political reconciliation. You've heard General McChrystal discuss the same thing. 556 00:44:07,266 --> 00:44:15,696 So obviously a similar path to what happened in Iraq each of those two individuals have 557 00:44:15,700 --> 00:44:26,030 talked through -- again, provided that whoever this is accepts the Afghan constitution, renounces 558 00:44:26,033 --> 00:44:34,603 violence, and publicly breaks with groups that advocate violence. That's I think what 559 00:44:34,600 --> 00:44:40,600 people except under the notion of reconciliation. David. 560 00:44:40,600 --> 00:44:44,770 The Press: Two -- first on Afghanistan as well. Last 561 00:44:44,767 --> 00:44:50,137 week the U.N. put out a report saying that the amount of graft and kickbacks in Afghanistan 562 00:44:50,133 --> 00:44:56,233 is about $2.3 billion a year, which is about 25 percent of their gross domestic product. 563 00:44:56,233 --> 00:45:03,103 Who in the administration is really riding point on dealing with issues of corruption 564 00:45:03,100 --> 00:45:04,130 in Afghanistan? 565 00:45:04,133 --> 00:45:08,203 Mr. Gibbs: Well, there is obviously a group of people 566 00:45:08,200 --> 00:45:12,970 that are working on our Afghan policy, David. Let me figure out where that -- where some 567 00:45:12,967 --> 00:45:18,597 of that information, in terms of -- I haven't seen that report but I can certainly check 568 00:45:18,600 --> 00:45:20,700 on who that is. 569 00:45:20,700 --> 00:45:21,930 The Press: On another subject, back to Bernanke, it's 570 00:45:21,934 --> 00:45:27,134 just been reported that McCain has declared that he'll vote against that. 571 00:45:27,133 --> 00:45:30,103 Mr. Gibbs: Yes, to be honest with you, I thought that 572 00:45:30,100 --> 00:45:32,870 he'd said that a while ago, so I don't know of -- 573 00:45:32,867 --> 00:45:33,967 The Press: Well, he's made it official. 574 00:45:33,967 --> 00:45:34,737 Mr. Gibbs: Right. 575 00:45:34,734 --> 00:45:38,204 The Press: Okay, but when you have conservative Republicans 576 00:45:38,200 --> 00:45:47,000 and liberal Democrats who are announcing opposition, presumably from a populist perspective, at 577 00:45:47,000 --> 00:45:53,970 the same time that the White House is raising questions about Wall Street, do you fear that 578 00:45:53,967 --> 00:45:59,697 you're getting sort of -- putting out a mixed message? It looks like you're defending Bernanke 579 00:45:59,700 --> 00:46:07,730 while also trying to talk tough on these other issues, banking issues and such. Is it muddy? 580 00:46:07,734 --> 00:46:11,434 Mr. Gibbs: I don't believe it is. Again, I think, as 581 00:46:11,433 --> 00:46:15,263 I said to Savannah, I think the proposal that the President outlined -- has outlined over 582 00:46:15,266 --> 00:46:23,396 the past couple of weeks enjoy great support among the American people because they're 583 00:46:23,400 --> 00:46:33,100 very commonsense policies in ensuring that taxpayers get their money back and that banks 584 00:46:33,100 --> 00:46:39,170 aren't allowed to engage in the type of behavior that we've seen contribute to an atmosphere 585 00:46:39,166 --> 00:46:47,296 of excessive risk. Look, David, I don't -- I obviously haven't seen why Senator McCain 586 00:46:47,300 --> 00:46:55,770 said what he said. But, you know, I think the coalition that you mentioned; I think 587 00:46:55,767 --> 00:47:03,167 you could probably cobble together some type of message around a coalition of those also 588 00:47:03,166 --> 00:47:07,866 supporting him. So I wouldn't necessarily read into a ton of those. 589 00:47:07,867 --> 00:47:11,437 The Press: What do you take from the opposition? I mean, 590 00:47:11,433 --> 00:47:12,733 is there a lesson that the White House is taking or learning that -- 591 00:47:12,734 --> 00:47:14,834 Mr. Gibbs: Well, look, as you heard me talk about certainly 592 00:47:14,834 --> 00:47:20,734 last week and I think even -- I think you've seen this from people that both support and 593 00:47:20,734 --> 00:47:27,564 oppose Chairman Bernanke. But there is still a frustration about where we are in this economy. 594 00:47:27,567 --> 00:47:32,667 The President, even in re-nominating him, believes -- shares some of that frustration, 595 00:47:32,667 --> 00:47:46,197 as well. We saw in the back end of 2008 and we saw it again manifested in the jobs numbers 596 00:47:46,200 --> 00:47:50,270 and the growth numbers that we saw both in the first quarter of 2009 -- well, throughout 597 00:47:50,266 --> 00:47:55,366 the first quarter of 2009, both in monthly jobs numbers and in terms of economic growth, 598 00:47:55,367 --> 00:48:05,867 the sheer size of the economic hole that we were in. That's not to say that Chairman Bernanke 599 00:48:05,867 --> 00:48:12,637 didn't do a superb job in navigating those waters in 2009 and what the President believed 600 00:48:12,633 --> 00:48:13,603 was important to -- 601 00:48:13,600 --> 00:48:15,600 The Press: But their criticism is that he didn't adequately 602 00:48:15,600 --> 00:48:17,200 or properly see the hole to begin with. 603 00:48:17,200 --> 00:48:22,470 Mr. Gibbs: Well, look, I think the President believes 604 00:48:22,467 --> 00:48:29,937 that Chairman Bernanke has done an extraordinary job in navigating a very difficult situation 605 00:48:29,934 --> 00:48:37,404 and deserves both -- deserved to be both re-nominated, approved for that re-nomination, and the White 606 00:48:37,400 --> 00:48:41,900 House believes that that indeed will be the case. Thanks, guys.