English subtitles for clip: File:10-19-09- White House Press Briefing.webm
Jump to navigation
Jump to search
1 00:00:01,600 --> 00:00:03,030 Mr. Gibbs: Good after -- or good morning, I should say. 2 00:00:03,033 --> 00:00:04,503 Sorry, I'm used to doing this in the afternoon. 3 00:00:04,500 --> 00:00:08,030 Before we get started with our regularly scheduled programming, 4 00:00:08,033 --> 00:00:11,663 Jared Bernstein and Melody Barnes are here to discuss the 5 00:00:11,667 --> 00:00:15,937 report that released this morning on the jobs saved in the 6 00:00:15,934 --> 00:00:18,334 recovery plan by teachers. 7 00:00:18,333 --> 00:00:22,103 So I'm going to turn it over to Jared and Melody. 8 00:00:27,400 --> 00:00:32,830 Dr. Bernstein: Hello. Preliminary reviews of recipient reporting data from 9 00:00:32,834 --> 00:00:37,364 state governments on educational spending through the American 10 00:00:37,367 --> 00:00:42,397 Reinvestment and Recovery Act -- the Recovery Act -- show that at 11 00:00:42,400 --> 00:00:50,100 least 250,000 educational jobs have been saved or created thus far. 12 00:00:50,100 --> 00:00:54,100 Now, as I noted, these are preliminary data based off of 13 00:00:54,100 --> 00:00:58,500 reviews through the recipient reporting process. 14 00:00:58,500 --> 00:01:02,430 As many of you probably know from some reports at the end of 15 00:01:02,433 --> 00:01:10,763 last week, we're engaged in what is clearly the most transparent 16 00:01:10,767 --> 00:01:14,997 and accountable treatment of a government program that really 17 00:01:15,000 --> 00:01:18,500 has ever I think been seen heretofore. 18 00:01:18,500 --> 00:01:22,170 These are recipient data coming in from the states, 19 00:01:22,166 --> 00:01:24,236 from Democrats and Republicans. 20 00:01:24,233 --> 00:01:27,603 It's truly a bipartisan report on the progress that the 21 00:01:27,600 --> 00:01:30,370 Recovery Act is making so far. 22 00:01:30,367 --> 00:01:33,597 Now, before I turn the podium over to Melody to talk about the 23 00:01:33,600 --> 00:01:38,200 substance of the report, let me just say a word or two about how 24 00:01:38,200 --> 00:01:43,170 this recipient reporting fits into the larger context of jobs 25 00:01:43,166 --> 00:01:48,096 reported as created or saved. 26 00:01:48,100 --> 00:01:50,470 These are direct jobs. 27 00:01:50,467 --> 00:01:54,667 Now, I think I've spoken to this group before about this point. 28 00:01:54,667 --> 00:01:58,067 Direct jobs are jobs that are directly created and funded 29 00:01:58,066 --> 00:02:01,366 through spending in the Recovery Act -- in this case, 30 00:02:01,367 --> 00:02:06,697 for example, think about a job of an educator saved because a 31 00:02:06,700 --> 00:02:11,330 state budget would have had to undergo cuts that would have 32 00:02:11,333 --> 00:02:13,203 enforced a layoff. 33 00:02:13,200 --> 00:02:19,630 That layoff has been avoided in these cases through Recovery Act spending. 34 00:02:19,633 --> 00:02:21,863 Direct jobs are only part of the story. 35 00:02:21,867 --> 00:02:25,737 Indirect jobs occur when that teacher who otherwise would have 36 00:02:25,734 --> 00:02:32,964 been laid off goes shopping and is able to spend income earnings 37 00:02:32,967 --> 00:02:35,737 that she otherwise wouldn't have had. 38 00:02:35,734 --> 00:02:37,764 That creates more economic activity. 39 00:02:37,767 --> 00:02:41,597 The point is that these 250,000 jobs, 40 00:02:41,600 --> 00:02:44,300 preliminary reporting on these jobs saved or created, 41 00:02:44,300 --> 00:02:50,130 are a subset even of this part of the Recovery Act. 42 00:02:50,133 --> 00:02:55,163 The law requires -- the Recovery Act requires that this more 43 00:02:55,166 --> 00:02:59,766 detailed reporting from recipients is made on about a 44 00:02:59,767 --> 00:03:02,467 third of the spending; it's about $276 billion 45 00:03:02,467 --> 00:03:05,237 of the $787 billion act. 46 00:03:05,233 --> 00:03:08,733 That's about $150 billion that's already been put to work through 47 00:03:08,734 --> 00:03:12,534 September 30, and subject to reporting this quarter. 48 00:03:12,533 --> 00:03:15,003 Now, the recipients are only asked to report the direct job 49 00:03:15,000 --> 00:03:17,300 impact, as I noted. 50 00:03:17,300 --> 00:03:21,270 Let me finish off by just talking about how this maps onto 51 00:03:21,266 --> 00:03:22,836 the other work that, for example, 52 00:03:22,834 --> 00:03:27,164 our Council of Economic Advisers have done generating the 53 00:03:27,166 --> 00:03:32,836 estimate that we've saved or created about a million jobs so far. 54 00:03:32,834 --> 00:03:37,334 That estimate includes both direct and indirect jobs, 55 00:03:37,333 --> 00:03:41,103 and it includes not just a subset of the spending that has 56 00:03:41,100 --> 00:03:43,370 to be reported on through recipients, 57 00:03:43,367 --> 00:03:49,137 but the full set of Recovery Act activities that are out there in 58 00:03:49,133 --> 00:03:52,263 the field creating economic activity so far. 59 00:03:52,266 --> 00:03:56,766 So just to be clear -- preliminary recipient data 60 00:03:56,767 --> 00:04:00,967 that's coming in to the independent Recovery 61 00:04:00,967 --> 00:04:06,167 Accountability -- the RAT Board -- Recovery Accountability and 62 00:04:06,166 --> 00:04:11,536 Transparency -- preliminary data coming into the board from 63 00:04:11,533 --> 00:04:17,363 recipients shows 250,000 education jobs saved or created. 64 00:04:17,367 --> 00:04:21,737 This is a subset of the 1 million jobs saved or created 65 00:04:21,734 --> 00:04:25,764 thus far through the act, leaving us solidly on track to 66 00:04:25,767 --> 00:04:29,837 accomplish our stated goal of saving or creating 3.5 67 00:04:29,834 --> 00:04:33,264 million jobs by later next year. 68 00:04:33,266 --> 00:04:34,496 I'll turn this over to Melody. 69 00:04:34,500 --> 00:04:38,130 Thank you. 70 00:04:38,133 --> 00:04:40,403 Ms. Barnes: Good morning, everyone. 71 00:04:40,400 --> 00:04:43,530 When we first started working on the Recovery Act last winter, 72 00:04:43,533 --> 00:04:46,963 we had two objectives in mind when it came to education. 73 00:04:46,967 --> 00:04:50,297 And the first one was to provide stability to state budgets and 74 00:04:50,300 --> 00:04:53,100 to prevent massive layoffs, while at the same time, 75 00:04:53,100 --> 00:04:56,000 trying to prevent a turn-back of the clock when it came to 76 00:04:56,000 --> 00:04:59,100 educational attainment for children and for adults; 77 00:04:59,100 --> 00:05:02,430 and secondly, to also try and use those funds to stimulate 78 00:05:02,433 --> 00:05:04,163 education reform. 79 00:05:04,166 --> 00:05:06,996 We know that when it comes to education, 80 00:05:07,000 --> 00:05:09,000 particularly in the K through 12 context, 81 00:05:09,000 --> 00:05:11,070 that state dollars are very important. 82 00:05:11,066 --> 00:05:15,136 They account for about 90 percent of spending for 83 00:05:15,133 --> 00:05:17,903 education, and they account for about 40 percent of spending 84 00:05:17,900 --> 00:05:19,770 when it comes to higher education. 85 00:05:19,767 --> 00:05:23,197 And what we were getting back from states at that time was 86 00:05:23,200 --> 00:05:24,630 potentially devastating. 87 00:05:24,633 --> 00:05:27,833 We were hearing about 31 states that were predicting that they 88 00:05:27,834 --> 00:05:31,834 weren't going to be able to meet their budget in 2008-2009, 89 00:05:31,834 --> 00:05:35,834 and about 48 states that were predicting, looking forward, 90 00:05:35,834 --> 00:05:38,304 that they weren't going to be able to meet their 91 00:05:38,300 --> 00:05:41,330 budgets for 2009-2010. 92 00:05:41,333 --> 00:05:45,263 What we know from the information we've received thus 93 00:05:45,266 --> 00:05:49,166 far is that the Recovery Act restored about 9 percent of the 94 00:05:49,166 --> 00:05:53,466 K through 12 dollars in California, Alabama, Indiana, 95 00:05:53,467 --> 00:05:56,737 and Oregon; about 12 percent of those dollars in Florida, 96 00:05:56,734 --> 00:05:59,464 Wisconsin, and South Carolina; and 23 percent 97 00:05:59,467 --> 00:06:01,837 of those dollars in Illinois. 98 00:06:01,834 --> 00:06:04,364 The implication is that we have been able to avert, 99 00:06:04,367 --> 00:06:06,437 for the reasons that Jared described, 100 00:06:06,433 --> 00:06:11,733 massive layoffs in -- and also created some jobs for 101 00:06:11,734 --> 00:06:15,504 pre-kindergarten, K through 12, and higher education -- both 102 00:06:15,500 --> 00:06:19,000 when we're looking at colleges and community colleges. 103 00:06:19,000 --> 00:06:23,900 And the significant overall for education is something that -- 104 00:06:23,900 --> 00:06:26,500 or the impact on education has been significant. 105 00:06:26,500 --> 00:06:30,470 About $39.8 billion have gone through -- for K through 12 106 00:06:30,467 --> 00:06:34,197 education, early ed and higher ed, and 73 percent of those 107 00:06:34,200 --> 00:06:36,470 dollars have already been obligated. 108 00:06:36,467 --> 00:06:39,637 And what we know when we start to look around the country is 109 00:06:39,633 --> 00:06:41,533 that we've been able to save about 4,000 110 00:06:41,533 --> 00:06:44,003 jobs in New York City, for example; 111 00:06:44,000 --> 00:06:46,530 242 jobs were saved in Indianapolis, 112 00:06:46,533 --> 00:06:49,963 Illinois -- Indiana -- sorry about that. 113 00:06:49,967 --> 00:06:51,567 Sounds like I need to go back through K through 12. 114 00:06:51,567 --> 00:06:52,637 (laughter) 115 00:06:52,633 --> 00:06:56,533 About 1,944 jobs were saved in Miami-Dade County, 116 00:06:56,533 --> 00:07:01,663 Florida; and 7 percent of the teaching staff in Scotts Bluff, 117 00:07:01,667 --> 00:07:03,637 Nebraska -- even though the number is small, 118 00:07:03,633 --> 00:07:07,803 when you think about 7 percent of their staff was able to be preserved. 119 00:07:07,800 --> 00:07:11,000 It also means that we were able to avert massive class 120 00:07:11,000 --> 00:07:13,700 expansion, class size expansion, something that we've been 121 00:07:13,700 --> 00:07:16,700 concerned about in the educational context for quite 122 00:07:16,700 --> 00:07:20,470 some time; and also to provide needed services when it comes to 123 00:07:20,467 --> 00:07:23,337 math and literacy in those instances. 124 00:07:23,333 --> 00:07:25,933 I'll close just by touching on reform. 125 00:07:25,934 --> 00:07:29,604 As I said, in addition to stabilizing the economy and 126 00:07:29,600 --> 00:07:33,030 preventing layoffs, we also wanted to attach reform to those 127 00:07:33,033 --> 00:07:35,633 dollars, to start to move the clock forward. 128 00:07:35,633 --> 00:07:40,203 And we included four assurances from the beginning in our state 129 00:07:40,200 --> 00:07:44,000 fiscal stabilization fund all the way through the Race to the 130 00:07:44,000 --> 00:07:47,800 Top dollars and the innovation and school improvement grant 131 00:07:47,800 --> 00:07:51,100 dollars that we're starting to put in place going forward. 132 00:07:51,100 --> 00:07:54,100 So, for example, when it comes to standards and assessments, 133 00:07:54,100 --> 00:07:57,070 making sure that kids are college-ready and career-ready, 134 00:07:57,066 --> 00:08:00,896 in St. Paul, Minnesota, they were able to work on literacy 135 00:08:00,900 --> 00:08:02,430 and math interventions. 136 00:08:02,433 --> 00:08:05,463 For teacher effectiveness in Corpus Christi, Texas, 137 00:08:05,467 --> 00:08:08,967 and Milwaukee, Wisconsin, they're able to focus on teacher training. 138 00:08:08,967 --> 00:08:11,067 And then also help for low-performing schools, 139 00:08:11,066 --> 00:08:14,996 Lafeyette, Indiana, for example, they were able to extend the 140 00:08:15,000 --> 00:08:16,730 school day, and in fact the school year, 141 00:08:16,734 --> 00:08:19,164 for two of the most struggling schools. 142 00:08:19,166 --> 00:08:22,866 We're also able to provide more information for teachers as well 143 00:08:22,867 --> 00:08:26,297 as parents so that they could track student progress and that 144 00:08:26,300 --> 00:08:27,900 would inform their instruction. 145 00:08:27,900 --> 00:08:32,130 And then as I said, the Race to the Top and that pool of dollars 146 00:08:32,133 --> 00:08:35,603 and the innovation fund are two ways that we're even trying to 147 00:08:35,600 --> 00:08:38,970 push the ball forward even further and go down the field 148 00:08:38,967 --> 00:08:40,897 when it comes to education reform. 149 00:08:40,900 --> 00:08:42,700 So I'll leave it with that. 150 00:08:42,700 --> 00:08:43,700 Mr. Gibbs: Chuck. 151 00:08:43,700 --> 00:08:46,800 The Press: Can you discuss new -- how many of these 250,000 152 00:08:46,800 --> 00:08:53,530 jobs were new jobs that -- in the education field that were 153 00:08:53,533 --> 00:08:56,703 offerings that public school systems didn't have before, 154 00:08:56,700 --> 00:09:04,670 and how many of these were just about saving -- preventing layoffs? 155 00:09:04,667 --> 00:09:07,967 Dr. Bernstein: We don't have a breakdown that would separate jobs 156 00:09:07,967 --> 00:09:09,637 saved or jobs created. 157 00:09:09,633 --> 00:09:15,233 What we know from the recipient reporting are state governments 158 00:09:15,233 --> 00:09:18,003 talking to school administrators who are telling them, 159 00:09:18,000 --> 00:09:24,700 as instructed by OMB, that in the absence of these funds they 160 00:09:24,700 --> 00:09:29,400 would have had to, for example, lay off teachers who now are in 161 00:09:29,400 --> 00:09:31,500 the classroom -- that's a job saved. 162 00:09:31,500 --> 00:09:34,070 Beyond that, when there's a new hire, 163 00:09:34,066 --> 00:09:35,496 they're obviously reporting that, as well, 164 00:09:35,500 --> 00:09:36,830 but those are not broken out separately. 165 00:09:36,834 --> 00:09:38,464 The Press: I understand that, but Melody was just talking 166 00:09:38,467 --> 00:09:40,997 about -- you were talking about some of these new programs that 167 00:09:41,000 --> 00:09:45,370 you guys were funding as sort of a way to push reform. 168 00:09:45,367 --> 00:09:50,997 So you must have some idea of the chunk of new positions, 169 00:09:51,000 --> 00:09:54,570 not necessarily -- new positions that were created out of this, no? 170 00:09:54,567 --> 00:09:56,197 Ms. Barnes: Well, what states have been telling us, 171 00:09:56,200 --> 00:09:59,900 that they have been able to put some of these new programs in place. 172 00:09:59,900 --> 00:10:03,200 As Jared said, we don't have the breakdown, 173 00:10:03,200 --> 00:10:07,000 but what we are aware of is the impact that we're having on education. 174 00:10:07,000 --> 00:10:11,170 So by extending the school day that may mean that they were 175 00:10:11,166 --> 00:10:14,236 able to keep teachers on board who are able to provide those 176 00:10:14,233 --> 00:10:16,963 services, or able to hire teachers. 177 00:10:16,967 --> 00:10:20,097 In the early education, one of the things that's covered is 178 00:10:20,100 --> 00:10:22,930 Early Head Start as well as Head Start. 179 00:10:22,934 --> 00:10:27,334 And we wanted to make sure that we weren't ramping up too fast 180 00:10:27,333 --> 00:10:29,733 and too far in terms of stimulus dollars, 181 00:10:29,734 --> 00:10:33,804 but at the same time to make sure that children at the very 182 00:10:33,800 --> 00:10:36,400 beginning of their educational experience were going to have 183 00:10:36,400 --> 00:10:37,970 access to those kinds of programs. 184 00:10:37,967 --> 00:10:38,997 Mr. Gibbs: But just to reiterate, I mean, 185 00:10:39,000 --> 00:10:40,570 obviously we've talked about this, 186 00:10:40,567 --> 00:10:47,267 but we understand just with the sheer size of these numbers what 187 00:10:47,266 --> 00:10:49,966 educational systems throughout the country would be experiencing -- 188 00:10:49,967 --> 00:10:51,237 The Press: Use the mic, please. 189 00:10:51,233 --> 00:10:53,403 Mr. Gibbs: I'm sorry. 190 00:10:53,400 --> 00:10:57,230 The magnitude of this number demonstrates what we would be 191 00:10:57,233 --> 00:11:01,503 dealing with without the help of the recovery plan in ensuring 192 00:11:01,500 --> 00:11:04,200 that these teachers were in the classroom. 193 00:11:04,200 --> 00:11:05,670 The Press: Okay, well, take Miami-Dade. 194 00:11:05,667 --> 00:11:08,397 So how many -- you talked a specific number of jobs. 195 00:11:08,400 --> 00:11:11,970 How many of those were new positions in Miami-Dade versus saved -- 196 00:11:11,967 --> 00:11:13,937 Mr. Gibbs: Well, again, I think they said they don't -- 197 00:11:13,934 --> 00:11:15,364 The Press: But you do have some number? 198 00:11:15,367 --> 00:11:18,137 Mr. Gibbs: Well, based on these reports -- again, 199 00:11:18,133 --> 00:11:21,263 they're the direct reporting jobs -- but understanding again 200 00:11:21,266 --> 00:11:26,296 that I think it's fair to say that a lot of these jobs were -- 201 00:11:26,300 --> 00:11:28,930 and we've seen these stories throughout the country -- states 202 00:11:28,934 --> 00:11:31,634 that faced tremendous budget pressures, 203 00:11:31,633 --> 00:11:33,033 not unlike the federal government, 204 00:11:33,033 --> 00:11:35,263 based on the dramatic downturn in our economy, 205 00:11:35,266 --> 00:11:39,996 led to having to take some serious action to fill that hole 206 00:11:40,000 --> 00:11:43,270 in to some degree and ensure that when these schools opened 207 00:11:43,266 --> 00:11:47,266 they didn't open to, quite frankly, as Melody said, 208 00:11:47,266 --> 00:11:49,696 class sizes that were much, much bigger. 209 00:11:49,700 --> 00:11:51,870 And we know, too, that the problem would be exponentially 210 00:11:51,867 --> 00:11:53,197 bigger if it weren't the case. 211 00:11:53,200 --> 00:11:54,930 Dr. Bernstein: And, Chuck, I can add one thing, 212 00:11:54,934 --> 00:11:57,764 is if you -- I can add one thing. 213 00:11:57,767 --> 00:12:03,297 The recipient reports tell us a few facts. 214 00:12:03,300 --> 00:12:06,330 They tell us the allocations. 215 00:12:06,333 --> 00:12:11,163 They tell us the jobs saved or created, 216 00:12:11,166 --> 00:12:12,736 and we can't separate those. 217 00:12:12,734 --> 00:12:17,004 The state governments themselves have often released some numbers 218 00:12:17,000 --> 00:12:18,930 that are more in the spirit of what you're asking about. 219 00:12:18,934 --> 00:12:20,434 So, for example, if memory serves, 220 00:12:20,433 --> 00:12:25,233 California had a press release wherein they said we saved over 221 00:12:25,233 --> 00:12:27,233 60,000 teacher jobs. 222 00:12:27,233 --> 00:12:31,763 And that's them telling you from their records, 223 00:12:31,767 --> 00:12:33,767 stuff that they have in those records that we don't have in 224 00:12:33,767 --> 00:12:34,797 the recipient reporting. 225 00:12:34,800 --> 00:12:36,530 Mr. Gibbs: Jake. 226 00:12:36,533 --> 00:12:39,863 The Press: So these 250,000, these are auditable jobs? 227 00:12:39,867 --> 00:12:41,837 These are directly created, all of them? 228 00:12:41,834 --> 00:12:44,104 Dr. Bernstein: Directly created and I'm not exactly sure what 229 00:12:44,100 --> 00:12:46,530 you mean by auditable, but I think what you mean is that 230 00:12:46,533 --> 00:12:49,333 these are directly reported from recipients. 231 00:12:49,333 --> 00:12:52,463 I want to stress that those of us who have been Keynesian 232 00:12:52,467 --> 00:12:55,267 economists throughout our lifetimes have never 233 00:12:55,266 --> 00:12:59,136 contemplated this level of transparency in a government 234 00:12:59,133 --> 00:13:00,233 stimulus program. 235 00:13:00,233 --> 00:13:01,333 We've never seen anything like this, 236 00:13:01,333 --> 00:13:04,663 where recipients are telling you precisely how taxpayer dollars 237 00:13:04,667 --> 00:13:07,537 are at work preserving and creating jobs. 238 00:13:07,533 --> 00:13:10,103 And I think it's particularly germane in the education sector 239 00:13:10,100 --> 00:13:13,430 from the perspective that Melody Barnes was talking about -- 240 00:13:13,433 --> 00:13:16,903 teachers, students, parents are walking into classrooms that 241 00:13:16,900 --> 00:13:19,970 would been twice as large in the absence of these funds. 242 00:13:19,967 --> 00:13:21,197 The Press: That's the other point -- I'm sorry, 243 00:13:21,200 --> 00:13:23,970 if I could just -- these are teachers? 244 00:13:23,967 --> 00:13:26,367 This is -- none of these 250,000 are employees of the 245 00:13:26,367 --> 00:13:28,567 Department of Education or anything else? 246 00:13:28,567 --> 00:13:30,397 Dr. Bernstein: None of them are employed -- well, 247 00:13:30,400 --> 00:13:32,870 they're not employees of the U.S. Department of Education, 248 00:13:32,867 --> 00:13:34,437 but they're not just teachers. 249 00:13:34,433 --> 00:13:36,003 They're education jobs. 250 00:13:36,000 --> 00:13:37,030 So there could be -- 251 00:13:37,033 --> 00:13:38,403 Ms. Barnes: Support staff. 252 00:13:38,400 --> 00:13:39,830 Dr. Bernstein: Yes, do you want to speak to that? 253 00:13:39,834 --> 00:13:41,964 Ms. Barnes: We're talking teachers, support personnel, 254 00:13:41,967 --> 00:13:45,167 the same thing in the higher education context. 255 00:13:45,166 --> 00:13:48,936 But these are people who are teaching students or working in 256 00:13:48,934 --> 00:13:52,904 the support of teaching students are the operations of the 257 00:13:52,900 --> 00:13:54,270 educational facilities. 258 00:13:54,266 --> 00:13:57,096 The Press: Do you know how many are teachers versus how many are 259 00:13:57,100 --> 00:13:59,170 secretaries or people who work for the local boards of education? 260 00:13:59,166 --> 00:14:01,466 Ms. Barnes: I don't know that we have that breakdown. 261 00:14:01,467 --> 00:14:03,997 The Press: Jared, you said that this tells you precisely how 262 00:14:04,000 --> 00:14:07,230 federal tax dollars are being used to save or create jobs. 263 00:14:07,233 --> 00:14:11,303 Can you tell us precisely how many federal dollars per job? 264 00:14:11,300 --> 00:14:15,230 Dr. Bernstein: No, we cannot at this point tell federal dollars 265 00:14:15,233 --> 00:14:17,703 per job, for a couple of reasons. 266 00:14:17,700 --> 00:14:21,500 One is that it's kind of the nature of the timing of the thing. 267 00:14:21,500 --> 00:14:27,070 We're getting data in in September and that includes, 268 00:14:27,066 --> 00:14:31,366 for example, summer months when teachers are typically not 269 00:14:31,367 --> 00:14:33,237 working -- not all of them, some of them are, 270 00:14:33,233 --> 00:14:36,063 and some of the support staff are, some of them aren't. 271 00:14:36,066 --> 00:14:43,096 So it's difficult at this point to report actual dollars per job. 272 00:14:43,100 --> 00:14:48,000 We'll know more about that as we get closer to the endgame in 273 00:14:48,000 --> 00:14:49,570 terms of this recipient reporting. 274 00:14:49,567 --> 00:14:52,497 We should be able to get that number out when we have more data. 275 00:14:52,500 --> 00:14:55,770 It's also the case, by the way, that some of these dollars don't 276 00:14:55,767 --> 00:14:59,837 pay -- are not directly going into labor costs. 277 00:14:59,834 --> 00:15:02,434 Some of them may be spent on technology, 278 00:15:02,433 --> 00:15:04,633 on building materials, on school materials. 279 00:15:04,633 --> 00:15:06,733 So it would be a mistake to take this, 280 00:15:06,734 --> 00:15:09,104 divide it -- to take the expenditures, 281 00:15:09,100 --> 00:15:12,470 divide them by the number of jobs and think you have cost per job. 282 00:15:12,467 --> 00:15:17,067 That would result in a cost per job that was too high. 283 00:15:17,066 --> 00:15:18,336 The Press: Are these all full-time jobs, 284 00:15:18,333 --> 00:15:20,403 or are some of them part-time equivalents that -- 285 00:15:20,400 --> 00:15:23,570 Dr. Bernstein: No, these are all FTEs -- full-time equivalent positions. 286 00:15:23,567 --> 00:15:26,467 Two part-time jobs would count as one full. 287 00:15:26,467 --> 00:15:29,197 The Press: Okay. So within the 250,000 jobs you could have a couple summer 288 00:15:29,200 --> 00:15:31,170 employments that you guys stacked together 289 00:15:31,166 --> 00:15:32,766 and then got to the 250? 290 00:15:32,767 --> 00:15:33,837 Dr. Bernstein: Not that we stacked together, 291 00:15:33,834 --> 00:15:36,634 but that the recipients -- recipients were asked to report 292 00:15:36,633 --> 00:15:37,963 full-time equivalent jobs. 293 00:15:37,967 --> 00:15:40,097 So they would have combined them that way. 294 00:15:40,100 --> 00:15:42,030 The Press: But the 250,000 does include some temporary 295 00:15:42,033 --> 00:15:43,303 summer employment? 296 00:15:43,300 --> 00:15:46,330 Dr. Bernstein: The 250,000 definitely includes temporary employment. 297 00:15:46,333 --> 00:15:50,233 But remember, if there are two part-time -- two half-time jobs, 298 00:15:50,233 --> 00:15:51,433 they're not reported as two jobs, 299 00:15:51,433 --> 00:15:59,063 they're reported as one full-time equivalent job. 300 00:15:59,066 --> 00:16:01,036 The Press: When you're talking about how much money has been 301 00:16:01,033 --> 00:16:03,663 spent per job, I thought it required $92,000 302 00:16:03,667 --> 00:16:04,997 to create one job here. 303 00:16:05,000 --> 00:16:07,900 Dr. Bernstein: Okay, this is a good question and it's one that 304 00:16:07,900 --> 00:16:12,930 kind of takes us from recipient reporting world to the modeling 305 00:16:12,934 --> 00:16:15,404 that the Council of Economic Advisers has done that I spoke 306 00:16:15,400 --> 00:16:17,570 about in my opening statement. 307 00:16:17,567 --> 00:16:22,067 In that exercise, we look at the full expenditures thus far from 308 00:16:22,066 --> 00:16:25,436 the act -- not just this subset that we're reporting on today, 309 00:16:25,433 --> 00:16:27,863 not just -- which is the education spending; 310 00:16:27,867 --> 00:16:30,067 not the subset that we were talking about toward the end of 311 00:16:30,066 --> 00:16:33,536 last week, which was the federal contracting for private sector 312 00:16:33,533 --> 00:16:35,403 employment through federal contracts. 313 00:16:35,400 --> 00:16:40,430 The $92,000 per job looks at the full spending, 314 00:16:40,433 --> 00:16:43,363 looks at direct and indirect jobs. 315 00:16:43,367 --> 00:16:45,467 These are, again, just direct jobs. 316 00:16:45,467 --> 00:16:50,767 So it ends up a much larger universe than the recipient 317 00:16:50,767 --> 00:16:53,337 reporting jobs we're talking about today. 318 00:16:53,333 --> 00:16:55,303 The Press: Since this is all based on recipient reporting, 319 00:16:55,300 --> 00:16:57,630 are you confident, have you verified these numbers, 320 00:16:57,633 --> 00:17:00,363 that these numbers are real in terms of these jobs? 321 00:17:00,367 --> 00:17:01,997 Dr. Bernstein: I can speak to that. 322 00:17:02,000 --> 00:17:09,830 Yes, we're confident that the 250,000 323 00:17:09,834 --> 00:17:14,104 jobs saved or created through the education spending 324 00:17:14,100 --> 00:17:19,570 is a good, solid number coming in from recipient reports. 325 00:17:19,567 --> 00:17:23,697 The Recovery Board, the Recovery Accountability Transparency 326 00:17:23,700 --> 00:17:29,300 Board will have a full accounting including the actual 327 00:17:29,300 --> 00:17:32,570 reports that you can point and click to and see them for 328 00:17:32,567 --> 00:17:35,497 yourself by October 30th, I believe. 329 00:17:35,500 --> 00:17:38,630 And in fact, they have some of the reports I was discussing at 330 00:17:38,633 --> 00:17:42,533 the end of last week on the federal contracts to private 331 00:17:42,533 --> 00:17:44,563 sector employers, those are up there right now. 332 00:17:44,567 --> 00:17:47,637 And you can go in and look and see those actual jobs. 333 00:17:47,633 --> 00:17:50,633 So, yes, we're very confident in the quality of these data. 334 00:17:50,633 --> 00:17:54,403 Mr. Gibbs: And remember, this is -- these are reporting 335 00:17:54,400 --> 00:17:57,330 requirements that were instituted within the Recovery 336 00:17:57,333 --> 00:17:59,533 Act as signed into law. 337 00:17:59,533 --> 00:18:02,663 And the board that Jared and Melody have talked about is an 338 00:18:02,667 --> 00:18:08,237 independent board that solicits and reviews such data. 339 00:18:08,233 --> 00:18:09,633 Dr. Bernstein: And let me just add one point; 340 00:18:09,633 --> 00:18:12,903 very confident in the quality -- these are preliminary data that 341 00:18:12,900 --> 00:18:19,230 we have gone through with great care to emphasize particularly 342 00:18:19,233 --> 00:18:21,863 -- to try to bolster particularly the type of 343 00:18:21,867 --> 00:18:24,567 confidence you were referring to and I was alluding to. 344 00:18:24,567 --> 00:18:26,337 The Press: Dr. Bernstein, following up on something that 345 00:18:26,333 --> 00:18:28,663 Vice President -- a comment that Vice President Biden made in the 346 00:18:28,667 --> 00:18:32,037 event about green jobs a little while ago, 347 00:18:32,033 --> 00:18:34,503 he said that there are a number of people in this country still 348 00:18:34,500 --> 00:18:37,670 suffering in an economic depression. 349 00:18:37,667 --> 00:18:41,037 How many people would you put in that category? 350 00:18:41,033 --> 00:18:45,663 Dr. Bernstein: I don't have any kind of an accurate count. 351 00:18:45,667 --> 00:18:49,837 I'm sure -- I think the Vice President was expressing the 352 00:18:49,834 --> 00:18:53,634 very accurate view that in an economy with over 15 million 353 00:18:53,633 --> 00:18:58,363 people unemployed, there's a lot of folks out there that are 354 00:18:58,367 --> 00:19:02,867 facing deep economic struggles. 355 00:19:02,867 --> 00:19:06,537 Many of our economic actions, our interventions, 356 00:19:06,533 --> 00:19:08,703 whether it's housing, financial markets, 357 00:19:08,700 --> 00:19:10,770 certainly the Recovery Act as we're talking about today, 358 00:19:10,767 --> 00:19:14,267 along with actions of the Fed, have certainly helped to pull 359 00:19:14,266 --> 00:19:16,866 the economy back from the brink, such that the macro-economy is 360 00:19:16,867 --> 00:19:19,237 in a much better place than it was. 361 00:19:19,233 --> 00:19:22,063 But until we start bringing down the unemployment rate, 362 00:19:22,066 --> 00:19:25,736 until we start chipping away at those millions of unemployed 363 00:19:25,734 --> 00:19:30,134 people, until we start providing them with the jobs, the wages, 364 00:19:30,133 --> 00:19:32,903 the incomes, the hope, the opportunity that the Vice 365 00:19:32,900 --> 00:19:36,200 President had in his mind when he was referring to that 366 00:19:36,200 --> 00:19:41,370 dynamic, our work is far from done. 367 00:19:41,367 --> 00:19:45,837 The Press: You talked about how you're on track for the 1 million total, 368 00:19:45,834 --> 00:19:48,034 direct and indirect. 369 00:19:48,033 --> 00:19:51,533 But this is only direct, and this is a subset of it, 370 00:19:51,533 --> 00:19:53,833 so can you make it apples and apples, and say the 371 00:19:53,834 --> 00:19:56,604 250,000 plus whatever indirect -- I mean, 372 00:19:56,600 --> 00:19:57,930 how much of a subset is it? 373 00:19:57,934 --> 00:20:01,404 Dr. Bernstein: I think the best way to do that would be -- and 374 00:20:01,400 --> 00:20:04,700 by the way, just to be clear, 1 million saved or created through 375 00:20:04,700 --> 00:20:07,170 September of this year, 376 00:20:07,166 --> 00:20:13,166 and 3.5 million we believe will be saved or created by the last 377 00:20:13,166 --> 00:20:16,466 quarter of next year. 378 00:20:16,467 --> 00:20:20,767 I think the answer to your question really is the 1 million 379 00:20:20,767 --> 00:20:24,967 that the Council of Economic Advisers reported on in their 380 00:20:24,967 --> 00:20:26,637 September 10th report. 381 00:20:26,633 --> 00:20:29,463 I refer you to that report, because that does capture direct 382 00:20:29,467 --> 00:20:31,767 and indirect, and it captures the full spate. 383 00:20:31,767 --> 00:20:34,597 Now, if you're asking me -- which I kind of think you are -- 384 00:20:34,600 --> 00:20:39,800 take that 200,000 and multiply that up to take count of the 385 00:20:39,800 --> 00:20:46,270 multiplier effects, yes, that we have not done. 386 00:20:46,266 --> 00:20:47,666 The Press: So it's a subset of the 1 million? 387 00:20:47,667 --> 00:20:49,197 You don't really know how big of a subset this is because -- 388 00:20:49,200 --> 00:20:50,230 Dr. Bernstein: Correct. 389 00:20:50,233 --> 00:20:51,533 The Press: -- it's not just 250,000? 390 00:20:51,533 --> 00:20:54,533 It would be more because of indirect jobs, right? 391 00:20:54,533 --> 00:20:57,533 Dr. Bernstein: Right. I can tell you that 250,000 is 392 00:20:57,533 --> 00:20:58,833 a quarter of a million. 393 00:20:58,834 --> 00:21:01,664 The Press: I'm trying to make it apples and apples. 394 00:21:01,667 --> 00:21:05,637 Dr. Bernstein: No, we don't have a multiplier that takes you from that 395 00:21:05,633 --> 00:21:09,403 number to that number -- that direct plus indirect. 396 00:21:09,400 --> 00:21:14,000 The Press: You've emphasized several times that this is preliminary data, 397 00:21:14,000 --> 00:21:16,800 and you used another term -- "endgame." 398 00:21:16,800 --> 00:21:18,100 This is a little bit confusing. 399 00:21:18,100 --> 00:21:20,370 Are you saying that this number will grow by the 400 00:21:20,367 --> 00:21:21,797 time we reach the endgame? 401 00:21:21,800 --> 00:21:23,400 And when is the endgame? 402 00:21:23,400 --> 00:21:24,830 Dr. Bernstein: Sorry, I don't mean to be confusing. 403 00:21:24,834 --> 00:21:28,404 There are a lot of numbers and a lot of timing issues here. 404 00:21:28,400 --> 00:21:31,500 I'm not sure precisely the context I used the word 405 00:21:31,500 --> 00:21:34,530 "endgame," but what I believe I was talking about was by the 406 00:21:34,533 --> 00:21:40,133 time the Recovery Act is between 70 and 80 percent spent out -- 407 00:21:40,133 --> 00:21:43,833 that's sometime around the 4th quarter of next year -- and at 408 00:21:43,834 --> 00:21:46,134 that point, we believe we'll have saved or created 409 00:21:46,133 --> 00:21:48,363 3.5 million jobs. 410 00:21:48,367 --> 00:21:52,867 Now, the other sort of speaking -- when these preliminary data 411 00:21:52,867 --> 00:21:56,197 become no longer preliminary, and when they're posted on 412 00:21:56,200 --> 00:22:01,700 recovery.gov -- that's the Web site of the independent recovery 413 00:22:01,700 --> 00:22:05,370 board -- that's October 30th, and so that's when 414 00:22:05,367 --> 00:22:09,267 these preliminary data are no longer preliminary. 415 00:22:09,266 --> 00:22:11,566 The Press: Does preliminary also mean that you don't have the 416 00:22:11,567 --> 00:22:14,397 complete data so you're projecting based on what 417 00:22:14,400 --> 00:22:17,430 you have already? 418 00:22:17,433 --> 00:22:18,833 Or does it mean you have all the complete data, 419 00:22:18,834 --> 00:22:20,434 but you haven't had time to put it up -- 420 00:22:20,433 --> 00:22:23,033 Dr. Bernstein: It means the latter. 421 00:22:23,033 --> 00:22:25,803 The Press: Thank you, Robert. 422 00:22:25,800 --> 00:22:29,070 A question for either Jared or Melody. 423 00:22:29,066 --> 00:22:34,536 When this money, the federal dollars from the Reinvestment 424 00:22:34,533 --> 00:22:38,463 and Recovery Act, run out, will it then be up to the states to 425 00:22:38,467 --> 00:22:44,397 come up with the revenue to keep these jobs in operation? 426 00:22:44,400 --> 00:22:47,100 Ms. Barnes: That's something that we were quite cognizant of 427 00:22:47,100 --> 00:22:50,330 when we were putting the Recovery Act together. 428 00:22:50,333 --> 00:22:53,403 We wanted to make sure that we were stimulating the economy, 429 00:22:53,400 --> 00:22:58,030 and at the same time, that we would be able to sustain the 430 00:22:58,033 --> 00:23:00,103 increases that were on track. 431 00:23:00,100 --> 00:23:03,770 I mean, all of this, remember, is to be put in the context of 432 00:23:03,767 --> 00:23:06,397 the economy starting to come back, 433 00:23:06,400 --> 00:23:11,300 for states to be able to support these jobs and to support the 434 00:23:11,300 --> 00:23:14,230 increases that have been put on the table. 435 00:23:14,233 --> 00:23:18,333 So the idea was to provide that shot, as I also mentioned, 436 00:23:18,333 --> 00:23:21,433 to start to provide and to incentivize the kinds of reforms 437 00:23:21,433 --> 00:23:24,263 that we wanted to see moving forward, 438 00:23:24,266 --> 00:23:28,936 but not to fall off a cliff when the two-year period was over. 439 00:23:28,934 --> 00:23:30,504 The Press: So it's an unfunded mandate, then? 440 00:23:30,500 --> 00:23:32,500 (laughter) 441 00:23:32,500 --> 00:23:33,800 Ms. Barnes: No. 442 00:23:33,800 --> 00:23:35,900 Mr. Gibbs: Understand, again, these were jobs -- when you save 443 00:23:35,900 --> 00:23:40,670 a job, that's what 50 states and others have determined were the 444 00:23:40,667 --> 00:23:44,637 teacher jobs that they needed in these classrooms. 445 00:23:44,633 --> 00:23:48,963 And I'm happy to have human events editorialize for 446 00:23:48,967 --> 00:23:54,067 extending the very positive aspects of jobs saved and 447 00:23:54,066 --> 00:23:56,866 created as part of the recovery funding. 448 00:23:56,867 --> 00:23:58,937 We'll take one more from Mike, and then let these 449 00:23:58,934 --> 00:24:00,164 guys go back to work. 450 00:24:00,166 --> 00:24:01,896 The Press: As you may be aware, Washington, D.C., 451 00:24:01,900 --> 00:24:04,230 recently let go 200-plus teachers. 452 00:24:04,233 --> 00:24:07,563 Is that a sign that Washington, D.C.'s 453 00:24:07,567 --> 00:24:09,797 school system is in that much of a financial hole that 454 00:24:09,800 --> 00:24:12,130 they couldn't be saved through the Recovery Act? 455 00:24:12,133 --> 00:24:15,503 And we've heard from a couple teachers perhaps suggesting that 456 00:24:15,500 --> 00:24:18,170 they were told by the chancellor that the money couldn't be used 457 00:24:18,166 --> 00:24:21,166 for salaries, it had to be used for one-time expenditures. 458 00:24:21,166 --> 00:24:24,666 So are the rules different for D.C.? 459 00:24:24,667 --> 00:24:26,367 Ms. Barnes: No, I think Washington, D.C., 460 00:24:26,367 --> 00:24:29,437 as we've all been reading, they have been making decisions 461 00:24:29,433 --> 00:24:31,803 based on a range of different factors. 462 00:24:31,800 --> 00:24:35,870 But these dollars were intended to go out and to provide the 463 00:24:35,867 --> 00:24:39,297 kind of support nationwide that would allow the kind of recovery 464 00:24:39,300 --> 00:24:43,000 that we're -- or stability that we've been talking about today, 465 00:24:43,000 --> 00:24:45,470 the creation or the saving of jobs, 466 00:24:45,467 --> 00:24:48,867 in addition to the appropriate kind of educational environment 467 00:24:48,867 --> 00:24:52,067 for students, to make sure that our kids weren't sliding 468 00:24:52,066 --> 00:24:56,036 backwards as we were also trying to bring the economy back. 469 00:24:56,033 --> 00:24:58,803 Mr. Gibbs: And, Mike, as we've talked about, look, 470 00:24:58,800 --> 00:25:01,870 we've never described in here the recovery plan as something 471 00:25:01,867 --> 00:25:05,167 that was going to match job for job, or dollar for dollar. 472 00:25:05,166 --> 00:25:06,896 We understand, as I've talked about, 473 00:25:06,900 --> 00:25:12,530 there's roughly a $2 trillion gap in economic output over a 474 00:25:12,533 --> 00:25:14,463 two-year period of time. 475 00:25:14,467 --> 00:25:17,937 This plan, the recovery plan obviously covers a little less 476 00:25:17,934 --> 00:25:20,364 than $800 billion of that $2 trillion. 477 00:25:20,367 --> 00:25:24,837 So as much as you would love to see none of this, 478 00:25:24,834 --> 00:25:28,704 obviously states, as I've said, because of experiencing the same 479 00:25:28,700 --> 00:25:31,730 dramatic economic downturn that the federal government is, 480 00:25:31,734 --> 00:25:33,104 has had to make budget choices. 481 00:25:33,100 --> 00:25:35,570 Thanks, guys. 482 00:25:40,834 --> 00:25:44,864 I have no announcements that I can remember, 483 00:25:44,867 --> 00:25:47,897 so we'll just start from there. 484 00:25:47,900 --> 00:25:51,470 The Press: On Afghanistan, it looks increasingly likely that 485 00:25:51,467 --> 00:25:55,397 there is going to have to be a runoff election. 486 00:25:55,400 --> 00:25:58,270 What is the -- A, just what is the White House reaction to that? 487 00:25:58,266 --> 00:26:02,866 And more importantly, how does it affect the sort of timing and 488 00:26:02,867 --> 00:26:05,397 calculation that's going on into the war strategy -- 489 00:26:05,400 --> 00:26:07,670 Mr. Gibbs: Well, let me give a broad answer here, 490 00:26:07,667 --> 00:26:13,697 because obviously the assessment that was done and the review 491 00:26:13,700 --> 00:26:19,200 that the President asked to happen was something that we 492 00:26:19,200 --> 00:26:23,570 understood would take in many ways an election into account -- 493 00:26:23,567 --> 00:26:29,397 the first election conducted by the Afghans. 494 00:26:29,400 --> 00:26:32,170 And I would obviously point you to comments that were made this 495 00:26:32,166 --> 00:26:35,596 weekend about the responsibility that all Afghans are going to 496 00:26:35,600 --> 00:26:42,370 have in both putting forward and -- putting forward a government 497 00:26:42,367 --> 00:26:46,167 that is viewed as, in the eyes of both, importantly, 498 00:26:46,166 --> 00:26:48,236 the Afghan people as well as the international community, 499 00:26:48,233 --> 00:26:49,663 as truly legitimate. 500 00:26:49,667 --> 00:26:50,837 The Press: Well, that's partly why I'm asking that, 501 00:26:50,834 --> 00:26:53,664 because the calculation that you can't make a decision without 502 00:26:53,667 --> 00:26:57,667 understanding whether you have a credible partner or not -- 503 00:26:57,667 --> 00:27:00,767 obviously this poll -- these developments feed into that. 504 00:27:00,767 --> 00:27:03,837 So do you need for all these to play out before you could make a decision? 505 00:27:03,834 --> 00:27:06,604 Mr. Gibbs: Well, look, again, we've -- in some ways, 506 00:27:06,600 --> 00:27:10,070 understanding that we've had a sizeable troop commitment there 507 00:27:10,066 --> 00:27:16,236 and this isn't in some ways a new problem -- in other words, 508 00:27:16,233 --> 00:27:22,303 we've got a sizeable force there now and regardless of additional 509 00:27:22,300 --> 00:27:26,370 resource requests or grants by the Commander-in-Chief, 510 00:27:26,367 --> 00:27:28,967 we're still going to have a sizeable force there that is 511 00:27:28,967 --> 00:27:30,797 going to need a credible partner. 512 00:27:30,800 --> 00:27:36,830 I think that's why the onus is clearly on this to be legitimate 513 00:27:36,834 --> 00:27:39,134 in the eyes of the Afghan people, 514 00:27:39,133 --> 00:27:42,433 because there's nobody involved in this process in this building 515 00:27:42,433 --> 00:27:45,533 or another -- in the Pentagon or in the State Department or quite 516 00:27:45,533 --> 00:27:50,133 frankly I think any credible person in this country would 517 00:27:50,133 --> 00:27:55,203 make a case that all the troops in the world will not solve a 518 00:27:55,200 --> 00:28:03,130 problem without a partner that is there ultimately to help. 519 00:28:03,133 --> 00:28:05,863 It's not just a military problem -- there's a civilian and 520 00:28:05,867 --> 00:28:07,997 economic development side of this. 521 00:28:08,000 --> 00:28:11,100 But also taking into account the military aspect of it, 522 00:28:11,100 --> 00:28:14,170 we've -- the object eventually, obviously, 523 00:28:14,166 --> 00:28:18,366 is to train Afghan national -- an Afghan national security 524 00:28:18,367 --> 00:28:22,397 force, army, and police, in order to ultimately transfer 525 00:28:22,400 --> 00:28:24,470 control to someone. 526 00:28:24,467 --> 00:28:29,237 So this is a complicated process and one that we're going to be watching. 527 00:28:29,233 --> 00:28:30,463 The Press: It sounds like what you're saying is, no, 528 00:28:30,467 --> 00:28:33,537 you don't really need for this to play out to its bitter end 529 00:28:33,533 --> 00:28:35,463 before you could make a decision. 530 00:28:35,467 --> 00:28:38,197 Mr. Gibbs: In some ways it's hard to -- I don't want to get 531 00:28:38,200 --> 00:28:44,230 ahead of the process in terms of important decisions that Afghan 532 00:28:44,233 --> 00:28:48,563 leaders are going to have make over the next several days about 533 00:28:48,567 --> 00:28:51,967 how to step forward, understanding that none of this 534 00:28:51,967 --> 00:28:55,067 is going to work without credible partners. 535 00:28:55,066 --> 00:28:59,936 We certainly understand that in this entire process. 536 00:28:59,934 --> 00:29:00,864 Yes, sir. 537 00:29:00,867 --> 00:29:02,197 The Press: A couple questions on Iran. 538 00:29:02,200 --> 00:29:05,370 Iran said that it would not hesitate to enrich uranium to a 539 00:29:05,367 --> 00:29:08,767 higher level if no deal is reached in the talks in Vienna 540 00:29:08,767 --> 00:29:14,167 that start today to get -- that would get a third country to do 541 00:29:14,166 --> 00:29:16,066 that enrichment. 542 00:29:16,066 --> 00:29:19,196 Is there any concern that this is -- this defiant tone will 543 00:29:19,200 --> 00:29:21,000 complicate or pose an obstacle to the talks? 544 00:29:21,000 --> 00:29:23,300 They've already ruled out France as one of those countries -- 545 00:29:23,300 --> 00:29:28,600 Mr. Gibbs: Well, look, I'm not sure I'm going to spend a lot of 546 00:29:28,600 --> 00:29:31,730 time on pre-talk posturing. 547 00:29:31,734 --> 00:29:34,564 I think it's -- I think the actions of the Iranians within 548 00:29:34,567 --> 00:29:39,937 the scope of the actual talks will speak volumes to whether or 549 00:29:39,934 --> 00:29:42,734 not they're going to live up to their responsibilities. 550 00:29:42,734 --> 00:29:48,234 The important thing here is that in this technical meeting the 551 00:29:48,233 --> 00:29:51,403 Iranians have an opportunity, again, 552 00:29:51,400 --> 00:29:55,170 to demonstrate for the world what the purpose 553 00:29:55,166 --> 00:29:57,936 of a nuclear program is. 554 00:29:57,934 --> 00:30:02,604 Our object is to get a sizable amount of low-enriched uranium 555 00:30:02,600 --> 00:30:08,170 out of the country of Iran, making the world more secure. 556 00:30:08,166 --> 00:30:09,296 The Press: And one other on that. 557 00:30:09,300 --> 00:30:11,770 The Wall Street Journal is reporting that the 558 00:30:11,767 --> 00:30:14,637 administration is encouraging Arab oil-producing countries to 559 00:30:14,633 --> 00:30:17,903 boost their oil supplies to China so that China would be 560 00:30:17,900 --> 00:30:21,000 less reliant on Iranian supplies -- the hope then being that 561 00:30:21,000 --> 00:30:25,200 China would be more cooperative on any push -- U.S. push for 562 00:30:25,200 --> 00:30:27,000 new sanctions, should that be decided. 563 00:30:27,000 --> 00:30:29,030 Mr. Gibbs: I'd have to look at NSC for guidance on that, 564 00:30:29,033 --> 00:30:30,333 and I don't have that. 565 00:30:30,333 --> 00:30:31,863 The Press: Following up on Jennifer's question, 566 00:30:31,867 --> 00:30:35,697 what is the administration doing in terms of putting pressure on 567 00:30:35,700 --> 00:30:38,270 Hamid Karzai, if in fact the U.N.-led 568 00:30:38,266 --> 00:30:41,266 audit says we need to take another look at this election? 569 00:30:41,266 --> 00:30:47,036 Mr. Gibbs: Look, let me -- I don't want to characterize -- 570 00:30:47,033 --> 00:30:52,363 first and foremost, this is -- nothing is going to be imposed 571 00:30:52,367 --> 00:30:56,697 by us or anybody else that will ultimately be seen as legitimate 572 00:30:56,700 --> 00:31:00,800 without the legitimation of those leaders, right? 573 00:31:00,800 --> 00:31:07,570 So obviously our Ambassador Karl Eikenberry is -- has been very 574 00:31:07,567 --> 00:31:11,837 involved in all aspects of the civilian situation on the ground. 575 00:31:11,834 --> 00:31:16,904 He has been a big player in the meetings that the President has 576 00:31:16,900 --> 00:31:22,500 had on this subject and is very engaged with all of the parties 577 00:31:22,500 --> 00:31:26,230 in order to create a situation that, again, 578 00:31:26,233 --> 00:31:28,133 can be seen as legitimate -- most importantly, 579 00:31:28,133 --> 00:31:29,963 legitimate by the Afghan people. 580 00:31:29,967 --> 00:31:31,637 The Press: Well, what if Karzai doesn't cooperate? 581 00:31:31,633 --> 00:31:34,433 Mr. Gibbs: Well, it's -- I'm not going to get too far down the 582 00:31:34,433 --> 00:31:36,533 hypothetical highway. 583 00:31:36,533 --> 00:31:41,263 The Press: If Karzai refuses to participate in a runoff, 584 00:31:41,266 --> 00:31:44,696 as he's signaled and -- he has signaled this, 585 00:31:44,700 --> 00:31:50,930 this is not a hypothetical -- and refuses to engage in any 586 00:31:50,934 --> 00:31:55,364 sort of unity government, will he be seen as a credible leader? 587 00:31:55,367 --> 00:32:01,037 Mr. Gibbs: Well, again, I don't -- I'm going to let not just 588 00:32:01,033 --> 00:32:03,463 words speak, but I think ultimately actions are going to 589 00:32:03,467 --> 00:32:06,037 have to speak in many cases louder than words. 590 00:32:06,033 --> 00:32:09,063 I'm not going to get ahead of this process. 591 00:32:09,066 --> 00:32:10,966 Obviously determinations are going to be made by the ECC, 592 00:32:10,967 --> 00:32:15,067 by the IEC, and then it's going to be incredibly important, 593 00:32:15,066 --> 00:32:22,696 Jake, for the world to see that Afghan leaders are willing to 594 00:32:22,700 --> 00:32:26,030 make this process legitimate, and that's the process that 595 00:32:26,033 --> 00:32:27,103 we're encouraging. 596 00:32:27,100 --> 00:32:30,700 The Press: The IEC is refusing to accept the ECC's results. 597 00:32:30,700 --> 00:32:31,570 Mr. Gibbs: Right. 598 00:32:31,567 --> 00:32:36,267 And I think it's now up to the Afghans to make this legitimate. 599 00:32:36,266 --> 00:32:38,136 The Press: Will President Obama -- will he get involved? 600 00:32:38,133 --> 00:32:40,803 Will he go ahead and approach Karzai if necessary? 601 00:32:40,800 --> 00:32:42,930 Mr. Gibbs: Well, I'm not going to get ahead of that. 602 00:32:42,934 --> 00:32:45,834 Again, we've got one of the best in the business right now on the 603 00:32:45,834 --> 00:32:48,464 ground and have been -- has been for a long time in Karl 604 00:32:48,467 --> 00:32:52,637 Eikenberry, who is working through obviously a delicate but 605 00:32:52,633 --> 00:32:55,933 extremely important situation as it relates to our posture in Afghanistan. 606 00:32:55,934 --> 00:32:57,934 The Press: Can I just ask a question on health care? 607 00:32:57,934 --> 00:33:01,304 During the campaign President Obama often talked about the 608 00:33:01,300 --> 00:33:04,230 importance of not -- this is a quote -- "not negotiating behind 609 00:33:04,233 --> 00:33:06,333 closed doors, but bringing all parties together and 610 00:33:06,333 --> 00:33:09,003 broadcasting those negotiations on C-SPAN." 611 00:33:09,000 --> 00:33:11,470 Do you think President Obama and those who are negotiating 612 00:33:11,467 --> 00:33:13,797 health care right now are living up to that promise? 613 00:33:13,800 --> 00:33:17,270 Mr. Gibbs: Well, Jake, I think I've seen a number of clips from 614 00:33:17,266 --> 00:33:22,636 footage from the very beginning of meetings that were held, 615 00:33:22,633 --> 00:33:24,463 some of which were aired on C-SPAN, 616 00:33:24,467 --> 00:33:27,567 as a health care proposal was developed, 617 00:33:27,567 --> 00:33:31,037 understanding that their merging of two committee bills is just 618 00:33:31,033 --> 00:33:32,963 one step along a long process. 619 00:33:32,967 --> 00:33:36,867 And I think the American people have gotten quite a bit of news 620 00:33:36,867 --> 00:33:38,667 coverage on this topic. 621 00:33:38,667 --> 00:33:40,197 The Press: But you're talking about the health care forum you 622 00:33:40,200 --> 00:33:41,200 guys had here? 623 00:33:41,200 --> 00:33:42,170 Mr. Gibbs: Yes. 624 00:33:42,166 --> 00:33:43,266 The Press: But that was, what, March or April? 625 00:33:43,266 --> 00:33:44,836 Mr. Gibbs: The beginning of the process of putting together 626 00:33:44,834 --> 00:33:45,964 health care reform. 627 00:33:45,967 --> 00:33:47,267 The Press: But since then there have been significant 628 00:33:47,266 --> 00:33:49,396 negotiations both on Capitol Hill -- you have White House 629 00:33:49,400 --> 00:33:51,670 representatives on Capitol Hill right now. 630 00:33:51,667 --> 00:33:54,867 You have deals that were cut with Big Pharma, 631 00:33:54,867 --> 00:33:57,237 with the hospitals, with the doctors. 632 00:33:57,233 --> 00:34:00,163 Do you think that that has upheld his promise of transparency? 633 00:34:00,166 --> 00:34:02,166 Mr. Gibbs: I do think the administration has been transparent. 634 00:34:02,166 --> 00:34:06,066 I think the process, again, is ongoing. 635 00:34:06,066 --> 00:34:10,296 Trust me, I'd love to declare that the process is over -- it's not. 636 00:34:10,300 --> 00:34:13,400 It's ongoing and I think transparency will be continued. 637 00:34:13,400 --> 00:34:15,130 Chip. 638 00:34:15,133 --> 00:34:16,333 The Press: Two things. 639 00:34:16,333 --> 00:34:21,963 First on Sudan, how does the administration justify working 640 00:34:21,967 --> 00:34:25,437 more closely with someone who is charged by the International 641 00:34:25,433 --> 00:34:29,033 Criminal Court with crimes against humanity and war crimes 642 00:34:29,033 --> 00:34:32,303 and whose nation is on the state sponsor of terrorism list? 643 00:34:32,300 --> 00:34:35,470 Mr. Gibbs: Well, Chip, I take a bit of an issue with your 644 00:34:35,467 --> 00:34:38,737 characterization of this. 645 00:34:38,734 --> 00:34:42,034 There are hefty sanctions in place against Sudan. 646 00:34:42,033 --> 00:34:44,963 The President in his statement today mentioned that. 647 00:34:44,967 --> 00:34:50,697 There are -- this is a comprehensive policy that will 648 00:34:50,700 --> 00:34:55,600 not just deal with one aspect of the process, 649 00:34:55,600 --> 00:35:00,730 but will deal with both the humanitarian crisis that we face 650 00:35:00,734 --> 00:35:04,764 in Darfur as well as continuing the progress toward a 651 00:35:04,767 --> 00:35:08,497 comprehensive North-South peace agreement. 652 00:35:08,500 --> 00:35:15,530 Our policy includes pressure on the Sudanese government and incentives. 653 00:35:15,533 --> 00:35:20,763 And if the government doesn't act in a way that helps bring 654 00:35:20,767 --> 00:35:23,537 about this comprehensive strategy, 655 00:35:23,533 --> 00:35:26,833 sanctions can be ratcheted up, pressure can be added. 656 00:35:26,834 --> 00:35:30,964 If they do take steps to address components of this, 657 00:35:30,967 --> 00:35:32,797 there are incentives. 658 00:35:32,800 --> 00:35:34,600 The Press: But we will be working more closely with somebody the 659 00:35:34,600 --> 00:35:37,170 President believes committed genocide, will we not? 660 00:35:37,166 --> 00:35:39,996 Mr. Gibbs: And the President still believes that. 661 00:35:40,000 --> 00:35:43,530 But what we're trying to do is seek a comprehensive solution to 662 00:35:43,533 --> 00:35:46,903 this problem that, again, addresses both the humanitarian 663 00:35:46,900 --> 00:35:51,230 crisis that has happened and is ongoing in Darfur as well as a 664 00:35:51,233 --> 00:35:53,603 comprehensive peace between the North and the South. 665 00:35:53,600 --> 00:35:56,970 The Press: On another topic, Somali rebels claim that they've 666 00:35:56,967 --> 00:35:58,437 shot down a U.S. drone. 667 00:35:58,433 --> 00:35:59,903 Do you know anything about that? 668 00:35:59,900 --> 00:36:01,500 Mr. Gibbs: I don't have any information on that, 669 00:36:01,500 --> 00:36:05,070 but I can see if there is any information on that. 670 00:36:05,066 --> 00:36:06,866 The Press: Following up on the various Afghanistan questions, 671 00:36:06,867 --> 00:36:10,967 specifically the Karzai campaign is calling the election 672 00:36:10,967 --> 00:36:14,097 commission "foreign interference." 673 00:36:14,100 --> 00:36:17,970 Do you -- is that helpful rhetoric right now coming from 674 00:36:17,967 --> 00:36:19,937 the Karzai campaign officials? 675 00:36:19,934 --> 00:36:23,564 Mr. Gibbs: I think it has been obvious and apparent to the 676 00:36:23,567 --> 00:36:30,867 world that allegations of fraud had to be investigated. 677 00:36:30,867 --> 00:36:33,597 We have said that repeatedly through this process, 678 00:36:33,600 --> 00:36:35,800 believe that all votes should be counted, 679 00:36:35,800 --> 00:36:38,930 those that were submitted fraudulently should be thrown out. 680 00:36:38,934 --> 00:36:42,934 We're certainly supportive and I think everyone in the 681 00:36:42,934 --> 00:36:45,904 international community is supportive of getting a process 682 00:36:45,900 --> 00:36:48,200 that's legitimate. 683 00:36:48,200 --> 00:36:51,470 I think it's now up to the Afghans to demonstrate that 684 00:36:51,467 --> 00:36:54,437 they're -- they believe in that legitimacy, as well. 685 00:36:54,433 --> 00:36:56,133 The Press: Is that rhetoric helpful or unhelpful? 686 00:36:56,133 --> 00:36:59,333 Mr. Gibbs: I don't think it's -- I don't think in any way it 687 00:36:59,333 --> 00:37:01,503 comports with what's going on on the ground. 688 00:37:01,500 --> 00:37:06,730 The Press: On health care, I know you don't want to negotiate 689 00:37:06,734 --> 00:37:09,304 here, but do you guys want to see the public -- some form of 690 00:37:09,300 --> 00:37:12,100 the public option in the initial Senate bill that hits the floor, 691 00:37:12,100 --> 00:37:15,500 or are you willing to wait for it to be a debate on amendments? 692 00:37:15,500 --> 00:37:19,130 Mr. Gibbs: I, shockingly, don't have a lot new on this, Chuck. 693 00:37:19,133 --> 00:37:24,703 We want to see legislation that goes throughout this process 694 00:37:24,700 --> 00:37:28,700 that ensures choice and competition. 695 00:37:28,700 --> 00:37:31,470 The Press: But there's a big difference between the public option 696 00:37:31,467 --> 00:37:34,597 being in the initial bill that hits the Senate floor, 697 00:37:34,600 --> 00:37:37,430 that gets amendmented -- you know, 698 00:37:37,433 --> 00:37:38,763 when they start debating -- 699 00:37:38,767 --> 00:37:39,367 Mr. Gibbs: Is that a word? 700 00:37:39,367 --> 00:37:40,437 The Press: Pardon my -- I don't know. 701 00:37:40,433 --> 00:37:41,303 (laughter) 702 00:37:41,300 --> 00:37:42,130 Wait a minute, you made up a word earlier. 703 00:37:42,133 --> 00:37:42,903 What was it? 704 00:37:42,900 --> 00:37:43,930 The Press: Legitimation. 705 00:37:43,934 --> 00:37:45,004 The Press: "Legitimation", yes, so we're all about -- 706 00:37:45,000 --> 00:37:46,430 The Press: I didn't make that up. 707 00:37:46,433 --> 00:37:47,433 The Press: No, no, that's what I mean. 708 00:37:47,433 --> 00:37:48,603 (laughter) 709 00:37:48,600 --> 00:37:49,530 No, you did. I'm just saying we're all -- 710 00:37:49,533 --> 00:37:50,733 Mr. Gibbs: Awkward after we just announced 250,000 711 00:37:50,734 --> 00:37:53,304 teachers -- (laughter) Go ahead, I'm sorry. 712 00:37:53,300 --> 00:37:57,370 The Press: But there's a big difference between the public option 713 00:37:57,367 --> 00:37:59,437 being in the merged bill and not in the merged bill. 714 00:37:59,433 --> 00:38:02,333 Do you guys -- obviously you have a position on this, 715 00:38:02,333 --> 00:38:05,503 and this goes to the whole transparency question that Jake asked. 716 00:38:05,500 --> 00:38:08,830 Mr. Gibbs: Look, Chuck, I think what's important for all of this 717 00:38:08,834 --> 00:38:12,164 process and for the end of this process is ensuring that at the 718 00:38:12,166 --> 00:38:17,966 end of this is we have in insurance markets the ability 719 00:38:17,967 --> 00:38:20,467 for people to have choice and competition. 720 00:38:20,467 --> 00:38:23,567 Obviously the merging process continues, 721 00:38:23,567 --> 00:38:25,267 and I don't have anything new on that. 722 00:38:25,266 --> 00:38:27,166 The Press: It just seems to me that you have a lot of 723 00:38:27,166 --> 00:38:29,136 supporters who are spending a lot of money on the public 724 00:38:29,133 --> 00:38:31,233 option, advertising about it and all these things. 725 00:38:31,233 --> 00:38:33,233 They'd like to hear something from you guys about whether you 726 00:38:33,233 --> 00:38:37,763 want it or not, and if we want it in the final Senate bill or not. 727 00:38:37,767 --> 00:38:40,537 Mr. Gibbs: And I think the President was pretty clear in front 728 00:38:40,533 --> 00:38:43,903 of Congress on this, and we'll evaluate proposals as they 729 00:38:43,900 --> 00:38:47,400 happen to see whether they meet choice or competition. 730 00:38:47,400 --> 00:38:49,600 Yes, sir. 731 00:38:49,600 --> 00:38:53,100 The Press: In the current financial news cycle of last week and 732 00:38:53,100 --> 00:38:56,630 this week, there's a lot of focus on the dollar. 733 00:38:56,633 --> 00:38:59,333 You see headlines, traders are bearish on the dollar, 734 00:38:59,333 --> 00:39:05,063 gold is rising, the dollar is weaker -- and yet the 735 00:39:05,066 --> 00:39:08,336 administration keeps on saying that they have a strong dollar policy. 736 00:39:08,333 --> 00:39:11,103 I'm wondering if you could give us one or two examples. 737 00:39:11,100 --> 00:39:14,900 Mr. Gibbs: Well, I am going to point you over to Treasury who 738 00:39:14,900 --> 00:39:18,370 deals with this, and not get into trouble on this question. 739 00:39:18,367 --> 00:39:19,537 Yes, sir. 740 00:39:19,533 --> 00:39:23,833 The Press: On the medical marijuana policy, 741 00:39:23,834 --> 00:39:26,764 as you probably know, 14 states allow the medical 742 00:39:26,767 --> 00:39:28,167 use of marijuana now. 743 00:39:28,166 --> 00:39:31,936 This policy that the Justice Department is enacting now, 744 00:39:31,934 --> 00:39:34,634 is that -- should that be taken as a signal that the 745 00:39:34,633 --> 00:39:38,003 administration would like more states to allow this? 746 00:39:38,000 --> 00:39:40,300 Mr. Gibbs: Look, I'm not going to get into what states should do. 747 00:39:40,300 --> 00:39:47,470 This is -- the memo that was sent out today to U.S. 748 00:39:47,467 --> 00:39:53,637 attorneys simply adds guidelines to a decision that 749 00:39:53,633 --> 00:39:56,803 Attorney General Holder talked about in mid-March, 750 00:39:56,800 --> 00:39:59,870 and has been administration policy since the beginning of 751 00:39:59,867 --> 00:40:01,697 this administration in January. 752 00:40:01,700 --> 00:40:04,100 The Press: And course the President talked about it a lot 753 00:40:04,100 --> 00:40:07,030 during the campaign, or several times during the campaign, 754 00:40:07,033 --> 00:40:08,463 it came up. 755 00:40:08,467 --> 00:40:11,697 How much did -- how much was he involved directly in this? 756 00:40:11,700 --> 00:40:15,070 Mr. Gibbs: Well, look, this is, as you mentioned, 757 00:40:15,066 --> 00:40:19,396 something I think he was asked about at town meetings in 2007. 758 00:40:19,400 --> 00:40:22,900 It was his policy and has been since the beginning of his term 759 00:40:22,900 --> 00:40:24,470 the policy of this administration. 760 00:40:24,467 --> 00:40:26,637 The Press: Does he know someone -- does he know people besides 761 00:40:26,633 --> 00:40:28,603 those he might have encountered during the campaign -- 762 00:40:28,600 --> 00:40:30,130 Mr. Gibbs: Not that I'm aware of. Not that I'm aware of. 763 00:40:30,133 --> 00:40:31,103 Yes, sir. 764 00:40:31,100 --> 00:40:32,830 The Press: We heard some strong language from -- you know, 765 00:40:32,834 --> 00:40:35,634 on the Sunday shows about Goldman Sachs and JP Morgan. 766 00:40:35,633 --> 00:40:37,833 Has there been any private conversations? 767 00:40:37,834 --> 00:40:40,764 In the interest of transparency, has the White House spoken to 768 00:40:40,767 --> 00:40:43,437 those banks about what they're doing with their bonuses, 769 00:40:43,433 --> 00:40:45,903 about where they're putting their profits? 770 00:40:45,900 --> 00:40:50,100 Mr. Gibbs: I don't know the answer to who has talked to whom 771 00:40:50,100 --> 00:40:52,030 on this, Hans. 772 00:40:52,033 --> 00:40:55,333 Let me reiterate, though, what has been said and, as you said, 773 00:40:55,333 --> 00:40:57,863 was said on the Sunday shows. 774 00:40:57,867 --> 00:41:01,537 The American people went to extraordinary lengths a little 775 00:41:01,533 --> 00:41:07,733 more than a year ago to ensure that our financial system didn't collapse. 776 00:41:07,734 --> 00:41:10,934 They have borne great responsibility in doing so. 777 00:41:10,934 --> 00:41:13,334 And I would simply reiterate what you heard senior 778 00:41:13,333 --> 00:41:17,363 administration officials echo yesterday -- that there are 779 00:41:17,367 --> 00:41:20,197 equal responsibilities on the other side of this not to go 780 00:41:20,200 --> 00:41:26,130 back to the type of behavior that got us into this mess; 781 00:41:26,133 --> 00:41:35,963 to ensure that what the taxpayers have done is met by 782 00:41:35,967 --> 00:41:40,067 the banks with increase lending to small businesses and others 783 00:41:40,066 --> 00:41:43,166 that need access to much needed capital. 784 00:41:43,166 --> 00:41:46,436 And I think most importantly we are involved now in a debate 785 00:41:46,433 --> 00:41:49,833 about what the regulatory landscape is going to look, 786 00:41:49,834 --> 00:41:53,834 going forward, to ensure that we never repeat again what happened 787 00:41:53,834 --> 00:41:55,764 last September. 788 00:41:55,767 --> 00:42:01,467 And I think it is the actions of many banks, 789 00:42:01,467 --> 00:42:09,737 in working actively against consumer protections, 790 00:42:09,734 --> 00:42:17,734 is not what the American people expected or expect out of these institutions. 791 00:42:17,734 --> 00:42:20,104 The Press: But again -- on back to the lending aspect, 792 00:42:20,100 --> 00:42:22,770 is there anything you guys can do to force them to lend, 793 00:42:22,767 --> 00:42:25,537 other than kind of jawboning for public -- 794 00:42:25,533 --> 00:42:28,633 Mr. Gibbs: Well, I think, look, there are obviously constraints 795 00:42:28,633 --> 00:42:29,403 in the law. 796 00:42:29,400 --> 00:42:31,600 And just in terms of executive compensation, 797 00:42:31,600 --> 00:42:35,370 as we've said before, we're not -- we don't want to be in the 798 00:42:35,367 --> 00:42:38,467 business of deciding executive compensation. 799 00:42:38,467 --> 00:42:41,997 I think people know excessive when they see it. 800 00:42:42,000 --> 00:42:45,930 I think the President, as you mentioned, 801 00:42:45,934 --> 00:42:47,604 has extremely strong views on this topic, 802 00:42:47,600 --> 00:42:50,270 on the topic of lending. 803 00:42:50,266 --> 00:42:55,996 And I think we hope that the actions of the bank will be demonstrative. 804 00:42:56,000 --> 00:42:56,970 The Press: But that's my question. 805 00:42:56,967 --> 00:42:58,037 Is it more than just hope? 806 00:42:58,033 --> 00:42:59,763 I mean, Axelrod said bonuses are offensive; 807 00:42:59,767 --> 00:43:02,067 more offensive is that they're not lending. 808 00:43:02,066 --> 00:43:05,396 Is there anything that you feel is in your power that you can do? 809 00:43:05,400 --> 00:43:06,630 Mr. Gibbs: I can certainly check additionally with 810 00:43:06,633 --> 00:43:07,863 the economic team. 811 00:43:07,867 --> 00:43:13,967 But this is not hope, this is more. 812 00:43:13,967 --> 00:43:18,297 This is -- the reason it's asked is -- the reason you're asking 813 00:43:18,300 --> 00:43:22,500 is because you and others have taken notice of both their 814 00:43:22,500 --> 00:43:25,300 behavior and the consequences of it. 815 00:43:25,300 --> 00:43:26,500 Michael. 816 00:43:26,500 --> 00:43:29,000 The Press: We know that hundreds of banks are on the FDIC watch list. 817 00:43:29,000 --> 00:43:30,830 Their reserve fund is way too low. 818 00:43:30,834 --> 00:43:34,764 There are concerns about commercial real estate loans in 819 00:43:34,767 --> 00:43:36,037 the years to come. 820 00:43:36,033 --> 00:43:40,833 And there's also pressure on the banks to basically acknowledge 821 00:43:40,834 --> 00:43:43,404 their losses and make their balance sheets right. 822 00:43:43,400 --> 00:43:47,070 So is there a little bit of a -- are they caught in the middle, 823 00:43:47,066 --> 00:43:49,466 if you will, between the White House saying you should lend 824 00:43:49,467 --> 00:43:52,067 more, and the regulators saying, maybe you shouldn't lend more? 825 00:43:52,066 --> 00:43:54,366 Mr. Gibbs: Well, look, I don't think anybody would suggest that 826 00:43:54,367 --> 00:44:01,637 we return to lending to consumers or anybody else that 827 00:44:01,633 --> 00:44:03,933 doesn't have the wherewithal to borrow and ultimately 828 00:44:03,934 --> 00:44:05,904 pay back the money. 829 00:44:05,900 --> 00:44:09,430 But nobody in this administration is suggesting that. 830 00:44:09,433 --> 00:44:12,603 I think the administration is simply suggesting that with the 831 00:44:12,600 --> 00:44:15,430 responsibility borne by the taxpayer, 832 00:44:15,433 --> 00:44:20,103 responsibility is also borne by those recipients and others that 833 00:44:20,100 --> 00:44:25,900 were beneficiaries of the type of assistance that allowed those 834 00:44:25,900 --> 00:44:30,770 banks to continue, even though they had made record profits off 835 00:44:30,767 --> 00:44:34,667 of tremendously bad decision-making. 836 00:44:34,667 --> 00:44:37,537 This is not something that's going to be solved overnight, 837 00:44:37,533 --> 00:44:40,433 and the President and his team will continue to watch over it 838 00:44:40,433 --> 00:44:45,933 to ensure that lending is taking place and that as we move 839 00:44:45,934 --> 00:44:47,534 forward we'll get some rules on the road, 840 00:44:47,533 --> 00:44:50,103 and won't let this be repeated again. 841 00:44:50,100 --> 00:44:53,400 The Press: Can you talk a little bit about what the Afghanistan 842 00:44:53,400 --> 00:44:55,000 -- what the delay does to your war council meetings? 843 00:44:55,000 --> 00:44:56,200 Are there more? 844 00:44:56,200 --> 00:44:58,570 Are you going to add more to the schedule now? 845 00:44:58,567 --> 00:45:04,937 Mr. Gibbs: I don't have -- what we'll -- I think they're working 846 00:45:04,934 --> 00:45:10,434 this week on some additional stuff that won't include the 847 00:45:10,433 --> 00:45:15,003 full meetings, because we have Secretary Gates and Admiral 848 00:45:15,000 --> 00:45:21,070 Mullen on travel this week, which makes some of those 849 00:45:21,066 --> 00:45:23,166 meetings harder. 850 00:45:23,166 --> 00:45:27,336 But the review continues, and as I said last week, 851 00:45:27,333 --> 00:45:31,333 this is a decision that will be made in the coming weeks. 852 00:45:31,333 --> 00:45:36,433 So obviously work continues at many levels to get this done. 853 00:45:36,433 --> 00:45:37,563 The Press: Let me turn to politics for a second. 854 00:45:37,567 --> 00:45:39,997 Now that we have a date on the calendar for the President to 855 00:45:40,000 --> 00:45:43,970 campaign for Creigh Deeds, can you talk about what he sees his 856 00:45:43,967 --> 00:45:45,037 prospects as being? 857 00:45:45,033 --> 00:45:47,103 Does he see any chance of his doing better in the polls than 858 00:45:47,100 --> 00:45:48,370 he has been? 859 00:45:48,367 --> 00:45:50,667 And in all the three elections, I guess, 860 00:45:50,667 --> 00:45:51,867 that are taking place -- 861 00:45:51,867 --> 00:45:53,637 Mr. Gibbs: Should I judge the power of The Washington Post 862 00:45:53,633 --> 00:45:54,833 editorial board's -- 863 00:45:54,834 --> 00:45:59,904 (laughter) 864 00:45:59,900 --> 00:46:04,730 Look, I'm not going to get into the political prognostication game. 865 00:46:04,734 --> 00:46:10,434 Obviously I think the President believes, 866 00:46:10,433 --> 00:46:14,703 if you look at the Democrats that he's been supportive of 867 00:46:14,700 --> 00:46:18,530 that are on the ballot, that they have plans and proposals 868 00:46:18,533 --> 00:46:25,063 that move their states and their districts forward in a way that 869 00:46:25,066 --> 00:46:27,196 comports with his vision. 870 00:46:27,200 --> 00:46:32,670 And I think -- I anticipate we'll do quite well in November. 871 00:46:32,667 --> 00:46:34,197 Yes, ma'am. 872 00:46:34,200 --> 00:46:36,670 The Press: Robert, I wanted to ask you about Iran. 873 00:46:36,667 --> 00:46:40,297 We've heard different public statements from the Russians in 874 00:46:40,300 --> 00:46:43,730 the last few weeks about whether they'll be amenable to sanctions 875 00:46:43,734 --> 00:46:48,164 against Iran if these talks in Vienna don't come up with anything. 876 00:46:48,166 --> 00:46:51,566 You saw what Medvedev said when he was standing next to 877 00:46:51,567 --> 00:46:53,337 President Obama at the U.N., 878 00:46:53,333 --> 00:46:57,363 and then last week the Foreign Minister Sergei Lavrov seemed to 879 00:46:57,367 --> 00:47:00,797 indicate that they weren't going to be going ahead -- that Russia 880 00:47:00,800 --> 00:47:03,300 didn't support sanctions. 881 00:47:03,300 --> 00:47:05,200 Who do you listen to? 882 00:47:05,200 --> 00:47:06,770 Who do -- do you guys think that -- 883 00:47:06,767 --> 00:47:10,437 Mr. Gibbs: I tend to listen to the guy who was sitting next 884 00:47:10,433 --> 00:47:12,133 to the President. 885 00:47:12,133 --> 00:47:22,033 I think Medvedev was quite clear and I think we believe the 886 00:47:22,033 --> 00:47:27,103 actions of the P5-plus-1 in the meetings that are, 887 00:47:27,100 --> 00:47:29,930 as you mentioned, currently going on in Vienna, and others, 888 00:47:29,934 --> 00:47:36,164 are important to getting a comprehensive solution to a 889 00:47:36,166 --> 00:47:42,136 problem that is of concern to the entire international community. 890 00:47:42,133 --> 00:47:43,833 The Press: Robert, tomorrow in New York is the President going 891 00:47:43,834 --> 00:47:47,034 to visit the Joint Terrorism Task Force? 892 00:47:47,033 --> 00:47:50,203 Mr. Gibbs: I believe that was on the schedule when I came out 893 00:47:50,200 --> 00:47:54,670 here, but I will double-check to make sure it's on it when I go back. 894 00:47:54,667 --> 00:47:56,837 The Press: Can I assume that this has to do with the 895 00:47:56,834 --> 00:47:58,904 investigation that's ongoing? 896 00:47:58,900 --> 00:48:05,630 Mr. Gibbs: Well, I think it's -- as the President did when he 897 00:48:05,633 --> 00:48:09,763 went to the National Counterterrorism Center, 898 00:48:09,767 --> 00:48:14,497 this is an ongoing thing. 899 00:48:14,500 --> 00:48:19,600 The professionalism of those that keep a watch over our 900 00:48:19,600 --> 00:48:23,900 country the President thinks is something we should continually 901 00:48:23,900 --> 00:48:32,500 log and he looks forward to visiting with, as he did NCTC, 902 00:48:32,500 --> 00:48:36,500 as well as he had a phone call with a number of the Joint Task 903 00:48:36,500 --> 00:48:39,770 Force folks in recent weeks. 904 00:48:39,767 --> 00:48:40,967 Jon. 905 00:48:40,967 --> 00:48:44,237 The Press: Just trying to get -- put the jobs -- education jobs 906 00:48:44,233 --> 00:48:48,763 thing in context in my own head. 907 00:48:48,767 --> 00:48:52,697 The metric of jobs saved or created has been debated pretty 908 00:48:52,700 --> 00:48:55,370 hotly in the last several months, 909 00:48:55,367 --> 00:48:56,997 which I think you would agree -- I mean, 910 00:48:57,000 --> 00:48:58,900 we've gone back and forth in this room. 911 00:48:58,900 --> 00:49:00,200 The announcement today -- 912 00:49:00,200 --> 00:49:02,200 Mr. Gibbs: I haven't, but go ahead. 913 00:49:02,200 --> 00:49:04,030 The Press: Maybe it was just Jared, I don't know. 914 00:49:04,033 --> 00:49:07,133 But it seems like today's announcement is an attempt on 915 00:49:07,133 --> 00:49:11,333 your guys' part to bolster that metric because the education 916 00:49:11,333 --> 00:49:14,633 jobs are some of the most solid of those sorts of saved or created. 917 00:49:14,633 --> 00:49:19,963 There's a lot less graspable examples of the jobs saved or created. 918 00:49:19,967 --> 00:49:24,937 Mr. Gibbs: I'm not sure I would agree with the premise of the last part. 919 00:49:24,934 --> 00:49:27,304 I think a teacher that was teaching kids last year and 920 00:49:27,300 --> 00:49:30,100 wasn't going to be teaching kids this year is a pretty easy 921 00:49:30,100 --> 00:49:34,100 example to understand. 922 00:49:34,100 --> 00:49:37,370 I think that's the case if your company was going to lay you off 923 00:49:37,367 --> 00:49:43,467 because of a downturn in output in producing components for 924 00:49:43,467 --> 00:49:47,097 clean energy jobs. 925 00:49:47,100 --> 00:49:51,830 This is data that the bill requires be reported to an 926 00:49:51,834 --> 00:50:03,864 independent board, and I think it demonstrates that actions had 927 00:50:03,867 --> 00:50:09,567 to be taken to help bolster state and local governments on 928 00:50:09,567 --> 00:50:14,337 jobs that obviously go to -- directly to building and 929 00:50:14,333 --> 00:50:16,103 strengthening our economic foundation 930 00:50:16,100 --> 00:50:18,130 to create jobs for the future. 931 00:50:18,133 --> 00:50:23,963 It would be short-sighted in an economic recovery to watch 932 00:50:23,967 --> 00:50:28,767 250,000 educators walk out of school buildings even as we were 933 00:50:28,767 --> 00:50:32,337 trying to train a workforce for tomorrow. 934 00:50:32,333 --> 00:50:36,703 The Press: On a separate topic -- on your guys' doubling down 935 00:50:36,700 --> 00:50:40,030 in your attacks on FOX News, there was one comment by Axelrod 936 00:50:40,033 --> 00:50:43,833 yesterday where he said that FOX is a network that is trying to 937 00:50:43,834 --> 00:50:46,134 make money -- something to that effect. 938 00:50:46,133 --> 00:50:48,433 Does the White House think that FOX -- 939 00:50:48,433 --> 00:50:49,703 Mr. Gibbs: I don't think that's news. 940 00:50:49,700 --> 00:50:50,900 The Press: Well, I mean, does the White House -- 941 00:50:50,900 --> 00:50:53,070 Mr. Gibbs: I assume all of you are trying to make money, but maybe I -- 942 00:50:53,066 --> 00:50:54,536 The Press: Well, he was putting it in a -- 943 00:50:54,533 --> 00:50:56,733 Mr. Gibbs: -- I misinterpreted your otherwise altruistic ventures. 944 00:50:56,734 --> 00:50:58,234 (laughter) 945 00:50:58,233 --> 00:51:00,163 The Press: But he was putting it in a context that made it sound 946 00:51:00,166 --> 00:51:03,766 like that was evidence of them not being a news organization. 947 00:51:03,767 --> 00:51:05,037 And I just wanted to -- 948 00:51:05,033 --> 00:51:08,333 Mr. Gibbs: Well, look, I don't think David would tell you that 949 00:51:08,333 --> 00:51:13,363 all of you aren't in the business of making money. 950 00:51:13,367 --> 00:51:20,067 I would say sometimes programming can be tilted toward 951 00:51:20,066 --> 00:51:21,936 accentuating those profits. 952 00:51:21,934 --> 00:51:23,834 The Press: Could I follow up, Robert, on Sudan? 953 00:51:23,834 --> 00:51:24,904 Two things. 954 00:51:24,900 --> 00:51:27,070 The President in his statement said that he would sign the 955 00:51:27,066 --> 00:51:29,836 emergency declaration later this week. 956 00:51:29,834 --> 00:51:31,634 Why the gap between the time he announced it and 957 00:51:31,633 --> 00:51:32,933 the time he signs it? 958 00:51:32,934 --> 00:51:35,604 Does that suggest some deadline, that there's some -- a few days 959 00:51:35,600 --> 00:51:37,170 for the Sudan to respond? 960 00:51:37,166 --> 00:51:42,096 Mr. Gibbs: I will check and see what scheduling prevented that 961 00:51:42,100 --> 00:51:45,500 from -- or whether that's to be read into something more. 962 00:51:45,500 --> 00:51:47,570 The Press: You talk about incentives. 963 00:51:47,567 --> 00:51:50,567 What incentives is the administration offering? 964 00:51:50,567 --> 00:51:51,537 Mr. Gibbs: I'm sorry? 965 00:51:51,533 --> 00:51:53,003 The Press: What incentives are you offering? 966 00:51:53,000 --> 00:51:54,030 What's the carrot? 967 00:51:54,033 --> 00:51:55,663 Mr. Gibbs: Let me -- again, let me point you to the State 968 00:51:55,667 --> 00:51:59,597 Department briefing, which is much more -- has a much more 969 00:51:59,600 --> 00:52:03,230 detailed layout of that, of some of these aspects as well as -- 970 00:52:03,233 --> 00:52:07,733 look, I think some of this is going to be decided in 971 00:52:07,734 --> 00:52:12,464 negotiations as we seek incentives and pressure. 972 00:52:12,467 --> 00:52:13,497 Stephen. 973 00:52:13,500 --> 00:52:16,230 The Press: Robert, does the White House believe that it 974 00:52:16,233 --> 00:52:20,033 would be possible to hold a runoff election in Afghanistan 975 00:52:20,033 --> 00:52:23,903 on such short notice that would produce a legitimate government, 976 00:52:23,900 --> 00:52:28,100 given the constraints of the weather, 977 00:52:28,100 --> 00:52:31,200 the fact that many of the people officiating would be the same 978 00:52:31,200 --> 00:52:34,830 people that officiated in the first election? 979 00:52:34,834 --> 00:52:41,864 Mr. Gibbs: Stephen, I think that if the ultimate outcome is that 980 00:52:41,867 --> 00:52:46,337 -- and again, I hesitate to get too far ahead of this. 981 00:52:46,333 --> 00:52:50,803 I don't know what the timing is, but I think that the 982 00:52:50,800 --> 00:52:56,500 international community and the Afghans all have equities in 983 00:52:56,500 --> 00:53:00,970 ensuring legitimacy to the outcome of this process. 984 00:53:00,967 --> 00:53:04,797 Whether or not that happens in the next few weeks I think will 985 00:53:04,800 --> 00:53:06,670 bear watching as we go forward. 986 00:53:06,667 --> 00:53:07,667 The Press: Can I just follow? 987 00:53:07,667 --> 00:53:11,067 Robert, as far as this election is concerned, 988 00:53:11,066 --> 00:53:13,236 the longer it's taking, don't you think people are losing 989 00:53:13,233 --> 00:53:16,133 interest and also it's going to hurt the international 990 00:53:16,133 --> 00:53:18,263 community's war on terrorism in Afghanistan? 991 00:53:18,266 --> 00:53:23,036 And also, several months ago people were trusting in 992 00:53:23,033 --> 00:53:25,563 President Karzai and now they have lost the trust. 993 00:53:25,567 --> 00:53:30,797 Does President have a trust and faith in President Karzai? 994 00:53:30,800 --> 00:53:33,070 Mr. Gibbs: We are obviously continuing to deal with the 995 00:53:33,066 --> 00:53:35,066 government of Afghanistan. 996 00:53:35,066 --> 00:53:38,436 We don't have a candidate in this election. 997 00:53:38,433 --> 00:53:41,103 The Afghans have to pick their leaders. 998 00:53:41,100 --> 00:53:47,830 And we have to ensure that whatever leaders are chosen are 999 00:53:47,834 --> 00:53:53,364 capable of assisting, as they will need to, 1000 00:53:53,367 --> 00:53:57,837 in a policy that makes their country more secure. 1001 00:53:57,834 --> 00:54:01,304 I don't think delay -- again, we've got a sizeable force on 1002 00:54:01,300 --> 00:54:08,000 the ground and continue to implement a policy that the 1003 00:54:08,000 --> 00:54:13,130 President announced in March. 1004 00:54:13,133 --> 00:54:14,333 The Press: It's my big chance here. 1005 00:54:14,333 --> 00:54:16,163 (laughter) 1006 00:54:16,166 --> 00:54:17,436 Mr. Gibbs: You should borrow his microphone. 1007 00:54:17,433 --> 00:54:18,403 The Press: Yes, I know. 1008 00:54:18,400 --> 00:54:20,500 I might do the two questions routine, too. 1009 00:54:20,500 --> 00:54:22,000 Tomorrow's fundraiser in New York, 1010 00:54:22,000 --> 00:54:25,200 are you expecting Wall Street executives to be in attendance? 1011 00:54:25,200 --> 00:54:30,130 Mr. Gibbs: I would point you to the DNC to -- it's a DNC 1012 00:54:30,133 --> 00:54:34,733 fundraiser and they probably have better attendance figures. 1013 00:54:34,734 --> 00:54:36,634 The Press: Assuming they are, there are some present, 1014 00:54:36,633 --> 00:54:39,063 will the President -- would he use the opportunity to make the 1015 00:54:39,066 --> 00:54:41,496 same kind of remarks the officials are making? 1016 00:54:41,500 --> 00:54:44,200 Mr. Gibbs: Look, the President won't hesitate whether or not 1017 00:54:44,200 --> 00:54:48,300 they're there to reiterate the responsibility that Wall Street 1018 00:54:48,300 --> 00:54:54,670 and everybody in the financial industry has to ensure that the 1019 00:54:54,667 --> 00:54:56,997 type of behavior that got us into the problems that we faced 1020 00:54:57,000 --> 00:55:00,070 a year -- little more than a year ago are never repeated. 1021 00:55:00,066 --> 00:55:02,366 The Press: Assuming then that these Wall Street executives are 1022 00:55:02,367 --> 00:55:04,167 present, and I think there's some reporting that they may be, 1023 00:55:04,166 --> 00:55:07,736 is there anything unseemly about the President going to a $30,000 -- 1024 00:55:07,734 --> 00:55:09,934 Mr. Gibbs: I don't have a roster as to who is going to be there 1025 00:55:09,934 --> 00:55:12,504 and, again, I'd point you to DNC. 1026 00:55:12,500 --> 00:55:19,000 I got to get Sam since I went to Alabama this weekend to watch 1027 00:55:19,000 --> 00:55:23,200 his Kentucky team beat my team and I should have called on him 1028 00:55:23,200 --> 00:55:28,370 earlier because -- I'm going to face up to it, 1029 00:55:28,367 --> 00:55:32,667 I'm just -- trust me, I sat in 43-degree weather and watched 1030 00:55:32,667 --> 00:55:34,567 it, so it's even easier now. 1031 00:55:34,567 --> 00:55:36,067 The Press: -- since 1966. 1032 00:55:36,066 --> 00:55:37,236 (laughter) 1033 00:55:37,233 --> 00:55:39,263 Mr. Gibbs: We discussed that late into the night. 1034 00:55:39,266 --> 00:55:42,266 The Press: I wanted to ask about Senator Conrad's meeting here today. 1035 00:55:42,266 --> 00:55:45,166 The senator yesterday reaffirmed his support for a health 1036 00:55:45,166 --> 00:55:46,566 insurance co-op. 1037 00:55:46,567 --> 00:55:47,967 Is the President trying to change his mind today, 1038 00:55:47,967 --> 00:55:49,797 or is he trying to get more information about this co-op? 1039 00:55:49,800 --> 00:55:52,870 Mr. Gibbs: Well, look, I think the meeting will span a number 1040 00:55:52,867 --> 00:55:55,467 of different topics. 1041 00:55:55,467 --> 00:56:00,297 Senator Conrad obviously -- on the Budget Committee, 1042 00:56:00,300 --> 00:56:04,070 is important to the process of putting together a budget for 1043 00:56:04,066 --> 00:56:08,696 the next fiscal year, as well as an important player 1044 00:56:08,700 --> 00:56:10,330 on health care reform. 1045 00:56:10,333 --> 00:56:12,303 I think both of those topics will be discussed, 1046 00:56:12,300 --> 00:56:19,770 and I'm sure the President will ask him about his ideas for 1047 00:56:19,767 --> 00:56:23,667 ensuring choice and competition. 1048 00:56:23,667 --> 00:56:26,397 The Press: Is the President aware of the Republicans on 1049 00:56:26,400 --> 00:56:28,900 Capitol Hill that are calling for an investigation, 1050 00:56:28,900 --> 00:56:32,670 saying that there have been Muslim spies planted as interns 1051 00:56:32,667 --> 00:56:36,437 on Capitol Hill, and obviously they have not produced any proof 1052 00:56:36,433 --> 00:56:38,363 of this, but this has been an issue that's gaining some 1053 00:56:38,367 --> 00:56:40,397 traction on the Republican side -- 1054 00:56:40,400 --> 00:56:44,270 Mr. Gibbs: I have not heard the President talk about this, 1055 00:56:44,266 --> 00:56:46,696 nor have I discussed it with him. 1056 00:56:46,700 --> 00:56:48,230 The Press: -- White House at all? Have you guys been asked to 1057 00:56:48,233 --> 00:56:49,503 do anything on this? 1058 00:56:49,500 --> 00:56:52,070 Mr. Gibbs: I have not heard anybody here talking about it. 1059 00:56:52,066 --> 00:56:52,766 Thanks, guys.