The White House

Office of the Press Secretary

For Immediate Release
February 15, 2011

Remarks by the President Honoring the Recipients of the 2010 Medal of Freedom

East Room

 

1:40 P.M. EST

     THE PRESIDENT:  Thank you so much.  Everyone please be seated.  And welcome to the White House.  Some of you have been here before.  (Laughter.)

     This is one of the things that I most look forward to every year.  It’s a chance to meet with -- and, more importantly, honor -- some of the most extraordinary people in America -- and around the world.  

President Kennedy once said, during a tribute to the poet Robert Frost, that a nation reveals itself not only by the men and women it produces, but by the men and women that it honors; the people that it remembers.  I heartily agree.  When you look at the men and women who are here today, it says something about who we are as a people.

When we award this medal to a Congressman John Lewis, it says that we aspire to be a more just, more equal, more perfect union.  When we award it to a Jasper Johns, it says we value the original and the imaginative.  When we award it to a Warren Buffett, it says we’d all like to be so humble and wise -- and maybe make a little money along the way.  (Laughter.)  And when we award it to former President George H.W. Bush, it says we celebrate an extraordinary life of service and of sacrifice.

This year’s Medal of Freedom recipients reveal the best of who we are and who we aspire to be.  In 1970, John Adams and a handful of unpaid attorneys and law students salvaged some old desks and set up an environmental law firm in New York City.   For 36 years, John sat at the same desk.  But the group he co-founded, the Natural Resources Defense Council, grew well beyond it.  “Our first obligation is to the environment,” John once said.  “If people want to protect the environment, we’ll support their efforts.  If not, we’ll play hardball.”

With more than 1 million members, NRDC has won landmark cases and helped pass landmark laws to clean up our air and water, protect our forests and wildlife, and keep our climate safe.  So Rolling Stone put it best:  “If the planet has a lawyer, it’s John Adams.”  (Laughter.)

As a girl, Marguerite Ann Johnson endured trauma and abuse that actually led her to stop speaking.  But as a performer, and ultimately a writer, a poet, Maya Angelou found her voice.  It’s a voice that’s spoken to millions, including my mother, which is why my sister is named Maya.  (Laughter.)

By holding on, even amid cruelty and loss, and then expanding to a sense of compassion, an ability to love -- by holding on to her humanity -- she has inspired countless others who have known injustice and misfortune in their own lives.  I won’t try to say it better than Maya Angelou herself, who wrote that:

History, despite its wrenching pain,
Cannot be unlived, and if faced with courage,
Need not be lived again.
Lift up your eyes upon
The day breaking for you.
Give birth again
To the dream.

In 1942, an 11-year-old boy from Omaha, Nebraska, invested his entire fortune in six shares of City Services Preferred at $38 per share.  The stock soon dropped sharply, devastating his holdings.  (Laughter.)  But true to form, the boy did not panic.  He held those shares until the stock rebounded, earning himself a small profit.  Things got a little bit better after that.  (Laughter.)

Today, we know Warren Buffett not only as one of the world’s richest men, but also one of the most admired and respected.  Unmoved by financial fads, he has doggedly sought out value, put his weight behind companies with promise and demonstrated that integrity isn’t just a good trait -- it is good for business.  And yet, for all the money he’s earned, you don’t see Warren Buffett wearing fancy suits or driving fancy cars.  Instead, you see him devoting the vast majority of his wealth to those around the world who are suffering, or sick, or in need of help.  And he uses his stature as a leader to press others of great means to do the same.  A philanthropist is a lover of humanity, and there’s no word that fits Warren better.  I should point out he’s so thrifty I had to give him a White House tie -- (laughter) -- the last time he came here to visit.  His was looking a little shredded.  (Laughter.)  So then when Bill Gates came, he wanted one, too.  (Laughter.)

It has been noted that Jasper Johns’ work, playing off familiar images, have transfixed people around the world.  Historians will tell you that he helped usher in the artistic movements that would define the latter half of the 20th century.  Many would say he is one of the greatest artists of our time.  And yet, of his own efforts he has simply said, “I’m just trying to find a way to make pictures.”  Just trying to find a way to make pictures. 

Like great artists before him, Jasper Johns pushed the boundaries of what art could be and challenged others to test their own assumptions.  He didn’t do it for fame, he didn’t do it for success -- although he earned both.  As he said, “I assumed that everything would lead to complete failure, but I decided that it didn’t matter -- that would be my life.”  (Laughter.)  We are richer as a society because it was.  And Jasper, you’ve turned out fine.  (Laughter.) 

When you are among the youngest of nine children, you develop a strong sense of empathy.  When those children are the Kennedys, you also develop a strong set of diplomatic skills just to be heard.  Both traits helped Jean Kennedy Smith follow her siblings into public service.  When her brother, President Kennedy, visited Ireland in 1963, he promised he’d be back in the springtime.  Thirty years later, it was left to Jean to return for him.  As President Clinton’s ambassador to Ireland, Jean was as vital as she was unconventional, helping brave men and women find the courage to see past the scars of violence and mistrust and come together to forge a lasting peace. 

Touched by experiences in her own life, Jean also founded the VSA program, helping people with disabilities discover the joys of learning through the arts, changing the lives of those it has served.  And today, her mission has spread to more than 50 countries and touched millions of lives -- ensuring that the family business remains alive and well.

By the time she was 21, Gerda Klein had spent six years living under Nazi rule -- three of them in concentration camps.  Her parents and brother had been taken away.  Her best friend had died in her arms during a 350-mile death march.  And she weighed only 68 pounds when she was found by American forces in an abandoned bicycle factory.  But Gerda survived.  She married the soldier who rescued her.  And ever since -- as an author, a historian and a crusader for tolerance -- she has taught the world that it is often in our most hopeless moments that we discover the extent of our strength and the depth of our love.

“I pray you never stand at any crossroads in your own lives,” she says, “but if you do, if the darkness seems so total, if you think there is no way out, remember, never ever give up.” 

That’s a quote that would be familiar to our next honoree.  There’s a quote inscribed over a doorway in Nashville, where students first refused to leave lunch counters 51 years ago this February.  And the quote said, “If not us, then who?  If not now, then when?”  It’s a question John Lewis has been asking his entire life.  It’s what led him back to the Edmund Pettus Bridge in Selma after he had already been beaten within an inch of his life days before.  It’s why, time and again, he faced down death so that all of us could share equally in the joys of life.  It’s why all these years later, he is known as the Conscience of the United States Congress, still speaking his mind on issues of justice and equality.  And generations from now, when parents teach their children what is meant by courage, the story of John Lewis will come to mind -- an American who knew that change could not wait for some other person or some other time; whose life is a lesson in the fierce urgency of now.

     An optometrist from New York, Tom Little could have pursued a lucrative career.  Instead, he guided -- he was guided by his faith and he set out to heal the poorest of the poor in Afghanistan.  For 30 years, amid invasion and civil war, the terror of the Taliban, the spread of insurgency, he and his wife Libby helped bring Afghans, literally, the miracle of sight.  Last summer, Tom and his team of doctors and nurses were ambushed and senselessly murdered.  Today, we remember and honor Dr. Tom Little -- a humanitarian in the truest sense of the word; a man who not only dedicated his life to others, but who lived that lesson of Scripture:  “Greater love hath no man than this, that a man lay down his life for his friends.” 

Yo-Yo Ma has been a concert cellist since the age of five.  Despite being a late bloomer -- (laughter) -- he went on to record over 75 albums and win 16 Grammys -- which means I’m only 14 behind him.  (Laughter.)  While Yo-Yo could have just settled for being the world’s greatest cellist, he’s said that even greater than his passion for music is his passion for people.  And I can testify to this.  There are few people you’ll meet with just the exuberance and joy that Yo-Yo possesses.  And so he’s spent much of his life traveling the world, training and mentoring thousands of students, from Lebanon and Korea to the Iraqi National Symphony Orchestra.  A member of my Committee on the Arts and the Humanities, he has been named a Messenger of Peace by the United Nations, and we understand why.  In his words, “When we enlarge our view of the world, we deepen our understanding of our own lives.”

For Sylvia Mendez, a lifelong quest for equality began when she was just eight years old.  Outraged that their daughter had to attend a segregated school, Sylvia’s parents linked arms with other Latino families to fight injustice in a California federal court, a case that would pave the way for Brown v. Board of Education.  The next year, when a classmate taunted Sylvia saying that Mexicans didn’t belong there, she went home in tears, begging to leave the school. Her mother wouldn’t have it.  She told Sylvia, “Don’t you realize that’s why we went to court? You are just as good as he is.”  And Sylvia took those words to heart.  And ever since, she has made it her mission to spread a message of tolerance and opportunity to children of all backgrounds and all walks of life.

Growing up in communist East Germany, Angela Merkel dreamed of freedom.  And when the Wall finally crumbled and Germany was reunited, she broke barriers of her own, becoming the first East German -- and the first woman -- to become chancellor of Germany.

To America, Chancellor Merkel and the country she leads are among our closest allies.  To me, she is a trusted global partner and a friend.  To people around the world, the story of Angela Merkel is an inspiration.  “Everything is possible,” she’s said -- something the world has seen again in recent weeks.  “Freedom does not come about of itself.  It must be struggled for, and then defended anew, every day of our lives.”     

     Chancellor Merkel isn’t here today.  She’ll be visiting me for a visit -- an official visit soon, and so I look forward to presenting her the award when she comes.

Stan Musial -- his brilliance could come in blinding bursts; hitting five home runs in a single day’s doubleheader; leading the league in singles, doubles, triples and RBIs over a single season; three World Series; first-ballot Hall of Famer; worthy of one of the greatest nicknames in sports -- “Stan the Man.”  (Laughter.)  My grandfather was Stan, by the way, so I used to call him “The Man” too, Stan.  (Laughter.) 

Stan Musial made that brilliance burn for two decades.  Stan matched his hustle with humility.  He retired with 17 records -- even as he missed a season in his prime to serve his country in the Navy.  He was the first player to make -- get this -- $100,000.  (Laughter.)  Even more shocking, he asked for a pay cut when he didn’t perform up to his own expectations.  You can imagine that happening today.  (Laughter.)  Stan remains, to this day, an icon, untarnished; a beloved pillar of the community; a gentleman you’d want your kids to emulate. “I hope I’ve given [baseball] nearly as much as I’ve gotten from it,” Stan wrote in his memoirs, knocking it out of the park one more time.

When Bill Russell was in junior high, he was cut from his basketball team.  (Laughter.)  He got better after that.  (Laughter.)  He led the University of San Francisco to two championships.  In 13 seasons with the Boston Celtics, he won 11 championships -- a record unmatched in any sport.  Won two while also serving as the team’s coach.  And so happens, he also was the first African American ever to hold such a position as a coach in a Major League sports team of any sort.  More than any athlete of his era, Bill Russell came to define the word “winner.”

And yet, whenever someone looks up at all 6’9” of Bill Russell -- I just did -- (laughter) -- I always feel small next to him -- and asks, “Are you a basketball player?” -- surprisingly, he gets this more than you think, this question --  (laughter) -- he says, “No.”  He says, “That’s what I do, that’s not what I am.  I’m not a basketball player.  I am a man who plays basketball.”

Bill Russell, the man, is someone who stood up for the rights and dignity of all men.  He marched with King; he stood by Ali.  When a restaurant refused to serve the black Celtics, he refused to play in the scheduled game.  He endured insults and vandalism, but he kept on focusing on making the teammates who he loved better players, and made possible the success of so many who would follow.  And I hope that one day, in the streets of Boston, children will look up at a statue built not only to Bill Russell the player, but Bill Russell the man.

The Bronx-born son of Irish immigrants, John Sweeney was shaped by three things.  His family -- his mother was a maid, his father was a bus driver -- instilled in him that fundamentally American idea that through hard work, we can make of our lives what we will.  The church taught him our obligations to ourselves and one another.  And as a child, he saw that by banding together in a union, we can accomplish great things that we can’t accomplish alone.  John devoted his career to the labor movement, adding working folks to its ranks and fighting for fair working conditions and fair wages.  As the head of the AFL-CIO, he was responsible for dozens of unions with millions of working families.  Family.  Faith.  Fidelity to the common good.  These are the values that make John Sweeney who he is; values at the heart of a labor movement that has helped build the world’s greatest middle class.

     And finally, we recognize our last recipient, not simply for the years he spent as our 41st President.  We honor George Herbert Walker Bush for service to America that spanned nearly 70 years.  From a decorated Navy pilot who nearly gave his life in World War II to U.S. ambassador to the United Nations; from CIA director to U.S. envoy to China to the vice presidency -- his life is a testament that public service is a noble calling.

As President, he expanded America’s promise to new immigrants and people with disabilities.  He reduced nuclear weapons.  He built a broad international coalition to expel a dictator from Kuwait.  When democratic revolutions swept across Eastern Europe, it was the steady diplomatic hand of President Bush that made possible an achievement once thought impossible -- ending the Cold War without firing a shot.

I would add that, like the remarkable Barbara Bush, his humility and his decency reflects the very best of the American spirit.  Those of you who know him, this is a gentleman.  Inspiring citizens to become “points of light” in service to others.  Teaming up with a one-time political opponent to champion relief for the victims of the Asian tsunami, the Hurricane Katrina.   And then, just to cap it off, well into the 80’s, he decides to jump out of airplanes -- (laughter) -- because, as he explains, “it feels good.”  

These are the recipients of the 2010 Medal of Freedom.  So now, it is my great pleasure and my great honor to present them with their medals.  (Applause.)

MILITARY AIDE:  John H. Adams.  At a time when contaminated waterways and polluted air threatened too many of our communities, John H. Adams co-founded the Natural Resources Defense Council to encourage responsible stewardship of our natural resources.  A staunch defender of the wonders of our planet, he served as executive director and, later, as president of the NRDC, challenging Americans to live up to our responsibilities to leave something better to our children with an urgency matched by few others.

John Adams’ decades-long commitment to safeguarding the Earth has left our air purer, our water cleaner and our planet healthier for generations to come.

(The medal is presented.)  (Applause.)

Dr. Maya Angelou.  Out of a youth marked by pain and injustice, Dr. Maya Angelou rose with an unbending determination to fight for civil rights and inspire every one of us to recognize and embrace the possibility and potential we each hold. 

With her soaring poetry, towering prose and mastery of a range of art forms, Dr. Angelou has spoken to the conscience of our nation.  Her soul-stirring words have taught us how to reach across division and honor the beauty of our world. 

(The medal is presented.)  (Applause.)

Warren E. Buffett.  As a world-renowned investor and philanthropist, Warren E. Buffett’s business acumen is matched only by his dedication to improving the lives of others.  He is a co-founder of The Giving Pledge, an organization that encourages wealthy Americans to donate at least 50 percent of their wealth to philanthropic causes.  Warren Buffett’s example of generosity and compassion has shown us the power of one individual’s determination and inspired countless women and men to help make our world a brighter place. 

(The medal is presented.)  (Applause.)

The Honorable George Herbert Walker Bush.  (Applause.)  From his time as a decorated Navy pilot to his years in the White House as the 41st President of the United States, President George Herbert Walker Bush has led a life marked by a profound commitment to serving others.  As President, he upheld the American value of liberty during a time of renewal and promise.  As a private citizen, he has united Americans in times of crisis, lending his tireless efforts to men and women whose lives have been upended by disaster.  Over the arc of his life, President Bush has served our nation as a tremendous force for good, and we proudly salute him for his unwavering devotion to our country and our world. 

(The medal is presented.)  (Applause.)

     Jasper Johns.  Bold and iconic, the work of Jasper Johns has left lasting impressions on countless Americans.  With nontraditional materials and methods, he has explored themes of identity, perception, and patriotism.  By asking us to reexamine the familiar, his work has sparked the minds of creative thinkers around the world.  Jasper Johns’ innovative creations helped shape the pop, minimal and conceptual art movements, and the United States honors him for his profound influence on generations of artists. 

(The medal is presented.)  (Applause.) 

Gerda Weissmann Klein.  Gerda Weissmann Klein’s life is a testament to the tenacity of the human spirit.  A Holocaust survivor, she was separated from her parents and sent to a series of Nazi labor camps.  In 1945, she was one of a few survivors among those forced to undergo a 350-mile death march to avoid the progress of liberating Allied forces.

From tragedy to triumph, she and her husband proudly started the Gerda and Kurt Klein Foundation to promote tolerance, respect and empowerment of students throughout the world.

By sharing her stories and encouraging others to see themselves in one another, Gerda Klein has helped to advance understanding among all people. 

(The medal is presented.)  (Applause.)

     The Honorable John R. Lewis.      From his activism in the civil rights movement to his nearly 25 years in the House of Representatives, John R. Lewis has dedicated his life to shattering barriers and fighting injustice.  The son of sharecroppers from Alabama, he rose with courage, fortitude and purpose to organize the first student sit-ins and the earliest freedom rides.  The youngest speaker at the 1963 March on Washington, a fearless advocate and a distinguished member of Congress, John Lewis has earned our lasting gratitude for a lifetime dedicated to the pursuit of equality and justice for all.

(The medal is presented.)  (Applause.)

     Elizabeth Little, accepting on behalf of her husband, Dr. Thomas Emmett Little.  Dr. Thomas Emmett Little was an optometrist who devoted his life and skills to those in need.  Starting in the 1970s, Dr. Little and his wife lived largely in Afghanistan in order to provide vision care to the people of that nation.  Even as they dedicated their lives to healing others, Dr. Little and nine of his team members were murdered in Afghanistan in 2010.  Our nation mourns the loss of these humanitarians who paid the ultimate price in pursuit of their ideals, and we look to Dr. Little’s example of generosity and goodwill so we can better know the meaning of sacrifice and the necessity of peace.

(The medal is presented.)  (Applause.) 

     Yo-Yo Ma.  Recognized as one of the world’s greatest musicians, Yo-Yo Ma’s talents know no boundaries of genre or culture.  Since performing at the White House for President Kennedy at the age of seven, he has recorded more than 75 albums, won more than a dozen Grammy awards and established himself as one of our nation’s most acclaimed and respected artists.  His music has bound us together and captured our imagination, and the United States proudly honors this prolific cellist and ambassador for the arts. 

(The medal is presented.)  (Applause.)

     Sylvia Mendez.  Sylvia Mendez was thrust to the forefront of the civil rights movement when she was just a child.  Denied entry to the Westminster School because of her Mexican heritage, she sought justice and her subsequent legal case, Mendez v. Westminster, effectively ended segregation as a matter of law in California.  The arguments in that case catalyzed the desegregation of our schools and prevailed in the landmark case Brown v. Board of Education, forever changing our nation.  Today, Sylvia Mendez continues to share her remarkable story and advocate for excellence and equality in classrooms across America.

(The medal is presented.)  (Applause.) 

     Stanley F. Musial.  Stanley F. Musial represents the best of American sports icons.  His name is synonymous with the St. Louis Cardinals, the team on which he played for his entire 22-year career.  A perennial all-star and three-time Most Valuable Player, he won accolades as a player and championships as a teammate.  Nicknamed “Stan the Man” Musial, he played the game with unrivaled passion, and his humility and decency remain a model for all young Americans to this day. 

(The medal is presented.)  (Applause.)

William F. Russell.  Basketball was a different sport before William F. Russell donned a uniform.  With unmatched skill, he led the Boston Celtics to an unparalleled string of titles and earned the distinction of being named the National Basketball Association’s Most Valuable Player five times.  He broke down barriers on and off the court, becoming basketball’s first African American coach and serving as a passionate advocate for civil rights.  Bill Russell can reflect with pride on helping change the culture of a sport and the course of our nation. 

(The medal is presented.)  (Applause.)

     The Honorable Jean Kennedy Smith.  The eighth of nine children to Joseph and Rose Kennedy, Jean Kennedy Smith joined the family business of helping her fellow Americans in improving our world.  In 1974, she founded Very Special Arts, a nonprofit organization that promotes the artistic talents of young people living with disabilities.  On the international stage, Jean Kennedy Smith played a pivotal role in the peace process in Northern Ireland while serving as United States ambassador to Ireland.  With intelligence, compassion, creativity and grace, Jean Kennedy Smith has contributed volumes to her family’s outstanding legacy of service to our country.

(The medal is presented.)  (Applause.)

John J. Sweeney.  As a champion for the American worker, John J. Sweeney has strengthened our families, our economy and our country.  The son of Irish immigrants, he worked his way up in the labor movement, serving as president of the Service Employees International Union and president of the American Federation of Labor and Congress of Industrial Organizations, all the while reaffirming our nation’s commitment to rewarding the enduring values of hard work and responsibility.  The United States proudly honors John Sweeney for a lifetime of courageous service on behalf of working people. 

(The medal is presented.)  (Applause.)

     THE PRESIDENT:  I know that people try to observe decorum when they’re here in the White House -- (laughter) -- but I’d  welcome everybody to stand and acknowledge these extraordinary men and women of the 2011 [sic] Medal of Freedom.  (Applause.)

     All right, everybody.  Now you can see why I love this day, and I hope everyone has a wonderful time during the reception.  Thank you so much for your attendance.  And again, to our honorees, thanks for setting such an extraordinary example for all of us.  Thank you very much.

END

2:20 P.M. EST

The White House

Office of the Press Secretary

For Immediate Release
February 15, 2011

Press Conference by the President

South Court Auditorium

10:59 A.M. EST

THE PRESIDENT:  Good morning, everybody.  Please have a seat.  I figured that I’d give Jay one more taste of freedom -- (laughter) -- before we lock him in a room with all of you, so I’m here to do a little downfield blocking for him.  Before I take a few questions, let me say a few words about the budget we put out yesterday.

Just like every family in America, the federal government has to do two things at once.  It has to live within its means while still investing in the future.  If you’re a family trying to cut back, you might skip going out to dinner, you might put off a vacation.  But you wouldn’t want to sacrifice saving for your kids’ college education or making key repairs in your house. So you cut back on what you can’t afford to focus on what you can’t do without.     

And that’s what we’ve done with this year’s budget.  When I took office, I pledged to cut the deficit in half by the end of my first term.  Our budget meets that pledge and puts us on a path to pay for what we spend by the middle of the decade.

As a start, it freezes domestic discretionary spending over the next five years, which would cut the deficit by more than $400 billion over the next decade, and bring annual domestic spending to its lowest share of the economy since Dwight Eisenhower.

Now, some of the savings will come through less waste and more efficiency.  To take just one example, we’ll give -- we'll save billions of dollars by getting rid of 14,000 office buildings, lots, and government-owned properties that we no longer need.  And to make sure special interests are not larding up legislation with special projects, I’ve pledged to veto any bills that contain earmarks.

Still, even as we cut waste and inefficiency, this budget freeze will also require us to make some tough choices.  It will mean freezing the salaries of hardworking federal employees for the next two years.  It will mean cutting things I care about deeply, like community action programs for low-income communities.  And we have some conservation programs that are going to be scaled back.  These are all programs that I wouldn’t be cutting if we were in a better fiscal situation.  But we're not.

We also know that cutting annual domestic spending alone won’t be enough to meet our long-term fiscal challenges.  That’s what the bipartisan fiscal commission concluded; that’s what I've concluded.  And that's why I’m eager to tackle excessive spending wherever we find it -– in domestic spending, but also in defense spending, health care spending, and spending that is embedded in the tax code.

Some of this spending we’ve begun to tackle in this budget  -– like the $78 billion that Secretary Gates identified in defense cuts.  But to get where we need to go we’re going to have to do more.  We’ll have to bring down health care costs further, including in programs like Medicare and Medicaid, which are the single biggest contributor to our long-term deficits.  I believe we should strengthen Social Security for future generations, and I think we can do that without slashing benefits or putting current retirees at risk.  And I’m willing to work with everybody on Capitol Hill to simplify the individual tax code for all Americans.

All of these steps are going to be difficult.  And that’s why all of them will require Democrats, independents, and Republicans to work together.  I recognize that there are going to be plenty of arguments in the months to come, and everybody is going to have to give a little bit.  But when it comes to difficult choices about our budget and our priorities, we have found common ground before.  Ronald Reagan and Tip O’Neill came together to save Social Security.  Bill Clinton and the Republican Congress eventually found a way to settle their differences and balance the budget.  And many Democrats and Republicans in Congress today came together in December to pass a tax cut that has made Americans’ paychecks a little bigger this year and will spur on additional economic growth this year.  

So I believe we can find this common ground, but we're going to have to work.  And we owe the American people a government that lives within its means while still investing in our future  -- in areas like education, innovation, and infrastructure that will help us attract new jobs and businesses to our shores.  That’s the principle that should drive this debate in the coming months.  I believe that’s how America will win the future in the coming years.

So with that, let me take a few questions.  And I'm going to start off with Ben Feller of AP.   

Q    Thank you very much, Mr. President.  You’ve been talking a lot about the need for tough choices in your budget, but your plan does not address the long-term crushing costs of Social Security, Medicare, Medicaid -- the real drivers of long-term debt.  Can you explain that?  Where is your leadership on that issue and when are we going to see your plan?

And if I may, sir, on the foreign front, the uprising in Egypt has helped prompt protests in Bahrain, in Yemen, and Iran. I'm wondering how you balance your push for freedoms in those places against the instability that could really endanger U.S. interests.

THE PRESIDENT:  On the budget, what my budget does is to put forward some tough choices, some significant spending cuts, so that by the middle of this decade our annual spending will match our annual revenues.  We will not be adding more to the national debt.  So, to use a -- sort of an analogy that families are familiar with, we're not going to be running up the credit card any more.  That's important -- and that's hard to do.  But it’s necessary to do.  And I think that the American people understand that.

At the same time, we're going to be making some key investments in places like education, and science and technology, research and development that the American people understand is required to win the future.  So what we've done is we've taken a scalpel to the discretionary budget rather than a machete.

Now, I said in the State of the Union and I'll repeat, that side of the ledger only accounts for about 12 percent of our budget.  So we've got a whole bunch of other stuff that we're going to have to do, including dealing with entitlements.

Now, you talked about Social Security, Medicare and Medicaid.  The truth is Social Security is not the huge contributor to the deficit that the other two entitlements are.
I'm confident we can get Social Security done in the same way that Ronald Reagan and Tip O’Neill were able to get it done, by parties coming together, making some modest adjustments.  I think we can avoid slashing benefits, and I think we can make it stable and stronger for not only this generation but for the next generation.

Medicare and Medicaid are huge problems because health care costs are rising even as the population is getting older.  And so what I've said is that I'm prepared to work with Democrats and Republicans to start dealing with that in a serious way.  We made a down payment on that with health care reform last year.  That's part of what health care reform was about.  The projected deficits are going to be about $250 billion lower over the next 10 years than they otherwise would have been because of health care reform, and they’ll be a trillion dollars lower than they otherwise would have been if we hadn’t done health care reform for the following decade.

But we're still going to have to do more.  So what I've said is that if you look at the history of how these deals get done, typically it’s not because there’s an Obama plan out there; it’s because Democrats and Republicans are both committed to tackling this issue in a serious way.

And so what we've done is we've been very specific in terms of how to stabilize the discretionary budget, how to make sure that we're not adding additional debt by 2015.  And then let’s together, Democrats and Republicans, tackle these long-term problems in a way that I think will ensure our fiscal health and, at the same time, ensure that we're making investments in the future.

Q    But when is that happening?

THE PRESIDENT:  Well, we're going to be in discussions over the next several months.  I mean this is going to be a negotiation process.  And the key thing that I think the American people want to see is that all sides are serious about it and all sides are willing to give a little bit, and that there’s a genuine spirit of compromise as opposed to people being interested in scoring political points.

Now, we did that in December during the lame duck on the tax cut issue.  Both sides had to give.  And there were folks in my party who were not happy, and there were folks in the Republican Party who were not happy.  And my suspicion is, is that we’re going to be able to do the same thing if we have that same attitude with respect to entitlements.

But the thing I want to emphasize is nobody is more mindful than me that entitlements are going to be a key part of this issue -- as is tax reform.  I want to simplify rates.  And I want to, at the same time, make sure that we have the same amount of money coming in as going out.

Those are big, tough negotiations, and I suspect that there’s going to be a lot of ups and downs in the months to come before we finally get to that solution.  But just as a lot of people were skeptical about us being able to deal with the tax cuts that we did in December but we ended up getting it done, I’m confident that we can get this done as well.

Now, with respect to the situation in the Middle East, obviously, there’s still a lot of work to be done in Egypt itself, but what we’ve seen so far is positive.  The military council that is in charge has reaffirmed its treaties with countries like Israel and international treaties.  It has met with the opposition, and the opposition has felt that it is serious about moving towards fair and free elections.  Egypt is going to require help in building democratic institutions and also in strengthening an economy that's taken a hit as a consequence of what happened.  But so far at least, we’re seeing the right signals coming out of Egypt.

There are ramifications, though, throughout the region.  And I think my administration’s approach is the approach that jibes with how most Americans think about this region, which is that each country is different, each country has its own traditions; America can’t dictate how they run their societies, but there are certain universal principles that we adhere to.  One of them is we don't believe in violence as a way of -- and coercion -- as a way of maintaining control.  And so we think it’s very important that in all the protests that we’re seeing in -- throughout the region that governments respond to peaceful protesters peacefully.

The second principle that we believe in strongly is in the right to express your opinions, the freedom of speech and freedom of assembly that allows people to share their grievances with the government and to express themselves in ways that hopefully will over time meet their needs.

And so we have sent a strong message to our allies in the region, saying let’s look at Egypt’s example as opposed to Iran’s example.  I find it ironic that you’ve got the Iranian regime pretending to celebrate what happened in Egypt when, in fact, they have acted in direct contrast to what happened in Egypt by gunning down and beating people who were trying to express themselves peacefully in Iran.

And I also think that an important lesson -- and I mentioned this last week -- that we can draw from this is real change in these societies is not going to happen because of terrorism; it’s not going to happen because you go around killing innocents -- it’s going to happen because people come together and apply moral force to a situation.  That’s what garners international support. That’s what garners internal support.  That’s how you bring about lasting change.

Patricia Zengerle.

Q    Thank you, Mr. President.  Getting back to the unrest in the Middle East and North Africa, what concerns do you have about instability, especially in Saudi Arabia, as the demonstrations spread?  Do you see -- foresee any effects on oil prices?  And talking about Iran, can you comment about the unrest there more?  What is your message to the Iranian people -- in light of there was some criticism that your administration didn’t speak out strongly enough after their last -- the demonstrations in Iran after their elections?  Excuse me.

THE PRESIDENT:  That’s okay.  Well, first of all, on Iran, we were clear then and we are clear now that what has been true in Egypt should be true in Iran, which is that people should be able to express their opinions and their grievances and seek a more responsive government.  What's been different is the Iranian government’s response, which is to shoot people and beat people and arrest people.

And my hope and expectation is, is that we’re going to continue to see the people of Iran have the courage to be able to express their yearning for greater freedoms and a more representative government, understanding that America cannot ultimately dictate what happens inside of Iran any more than it could inside of Egypt.  Ultimately these are sovereign countries that are going to have to make their own decisions.  What we can do is lend moral support to those who are seeking a better life for themselves.

Obviously we’re concerned about stability throughout the region.  Each country is different.  The message that we’ve sent even before the demonstrations in Egypt has been, to friend and foe alike, that the world is changing; that you have a young, vibrant generation within the Middle East that is looking for greater opportunity, and that if you are governing these countries, you’ve got to get out ahead of change.  You can’t be behind the curve.

And so I think that the thing that will actually achieve stability in that region is if young people, if ordinary folks end up feeling that there are pathways for them to feed their families, get a decent job, get an education, aspire to a better life.  And the more steps these governments are taking to provide these avenues for mobility and opportunity, the more stable these countries are.

You can’t maintain power through coercion.  At some level, in any society, there has to be consent.  And that’s particularly true in this new era where people can communicate not just through some centralized government or a state-run TV, but they can get on a smart phone or a Twitter account and mobilize hundreds of thousands of people.

My belief is that, as a consequence of what’s happening in Tunisia and Egypt, governments in that region are starting to understand this.  And my hope is, is that they can operate in a way that is responsive to this hunger for change but always do so in a way that doesn’t lead to violence.

Chip Reid.

Q    Thank you, Mr. President.  Actually, I'm going to have to get my glasses out to read these --

THE PRESIDENT:  That’s a bad sign there, Chip.  (Laughter.)

Q    A little fine print -- a little fine print in the budget, Mr. President.  You said that this budget is not going to add to the credit card as of about the middle of the decade.  And as Robert Gibbs might say, I'm not a budget expert and I'm not an economist, but if you could just explain to me how you can say that when, if you look on page 171, which I'm sure you’ve read -- (laughter) -- it is the central page in this -- the deficits go from $1.1 trillion down to $768 billion, and they go down again all the way to $607 billion in 2015, and then they start to creep up again, and by 2021, it’s at $774 billion.  And the total over those 10 years, the total debt is $7.2 trillion on top of the $14 trillion we already have.  How can you say that we’re living within our means?

THE PRESIDENT:  Well, here’s -- let me be clear on what I'm saying, because I'm not suggesting that we don’t have to do more. We still have all this accumulated debt as a consequence of the recession and as a consequence of a series of decisions that were made over the last decade.  We’ve piled up, we’ve racked up a whole bunch of debt.  And there is a lot of interest on that debt.

So, in the same way that if you’ve got a credit card and you’ve got a big balance, you may not be adding to principal -- you’ve still got all that interest that you’ve got to pay.  Well, we’ve got a big problem in terms of accumulated interest that we’re paying, and that’s why we’re going to have to whittle down further the debt that’s already been accumulated.  So that’s problem number one.

And problem number two we already talked about, which is rising health care costs and programs like Medicaid and Medicare are going to -- once you get past this decade, going to start zooming up again as a consequence of the population getting older and health care costs going up more rapidly than incomes and wages and revenues are going up.

So you’ve got those two big problems.  What we’ve done is to try to take this in stages.  What we say in our budget is let’s get control of our discretionary budget to make sure that whatever it is that we’re spending on an annual basis we’re also taking in a similar amount.  That’s step number one.

Step number two is going to make -- is going to be how do we make sure that we’re taking on these long-term drivers and how do we start whittling down the debt.  And that’s going to require entitlement reform and it’s going to require tax reform.

And in order to accomplish those two things, we’re going to have to have a spirit of cooperation between Democrats and Republicans.  And I think that’s possible.  I think that’s what the American people are looking for.  But what I think is important to do is not discount the tough choices that are required just to stabilize the situation.  It doesn’t solve it, but it stabilizes it.  And if we can get that done, that starts introducing this concept of us being able to, in a serious way, cooperate to meet this fiscal challenge.  And that will lay the predicate for us being able to solve some of these big problems over the course of the next couple of years as well.

So, again, I just want to repeat, the first step in this budget is to make sure that we’re stabilizing the current situation.  The second step is going to be to make sure that we’re taking on some of these long-term drivers.  But we’ve got to get control of the short-term deficit as well, and people are going to be looking for a signal for that, and the choices that we have made are some pretty tough choices -- which is why I think you have been seeing some grumblings not just from the other party but also from my own party about some of the decisions that we make.

Chuck Todd.

Q    Thank you, Mr. President.  Everything you have talked about -- tax reform, the entitlement reform, two parties coming together just happening in December in your fiscal commission.  You had a majority consensus to do all this.  It has now been shelved.  It seems that you have not taken -- I guess my question is what was the point of the fiscal commission?  If you have this moment where you had Tom Coburn, your conservative friend in the United States Senate, sign on to this deal; Judd Gregg was also on this thing; you had Dick Durbin, your good friend from Illinois, Democrat -- everything you just described in the answer to Chip and the answer to Ben just happened.  Why not grab it?

THE PRESIDENT:  The notion that it has been shelved I think is incorrect.  It still provides a framework for a conversation.

Part of the challenge here is that this town -- let’s face it, you guys are pretty impatient.  If something doesn’t happen today, then the assumption is it’s just not going to happen.  Right?  I’ve had this conversation for that last two years about every single issue that we worked on, whether it was health care or "don't ask, don't tell," on Egypt, right?  We’ve had this monumental change over the last three weeks -- well, why did it take three weeks?  (Laughter.)  So I think that there’s a tendency for us to assume that if it didn’t happen today it’s not going to happen.

Well, the fiscal commission put out a framework.  I agree with much of the framework; I disagree with some of the framework.  It is true that it got 11 votes, and that was a positive sign.  What's also true is, for example, is, is that the chairman of the House Republican budgeteers didn’t sign on.  He’s got a little bit of juice when it comes to trying to get an eventual budget done, so he’s got concerns.  So I’m going to have to have a conversation with him, what would he like to see happen.

I’m going to have to have a conversation with those Democrats who didn’t vote for it.  There are some issues in there that as a matter of principle I don't agree with, where I think they didn’t go far enough or they went too far.  So this is going to be a process in which each side, both in -- in both chambers of Congress go back and forth and start trying to whittle their differences down until we arrive at something that has an actual change of passage.   

And that's my goal.  I mean, my goal here is to actually solve the problem.  It’s not to get a good headline on the first day.  My goal is, is that a year from now or two years from now, people look back and say, you know what, we actually started making progress on this issue.

Q    What do you say, though -- it looks like, no, you first; no, you first -- and nobody -- everybody says --

THE PRESIDENT:  But there will --

Q    -- but nobody wants to talk about --

THE PRESIDENT:  Chuck, there was this -- this was the same criticism people had right after the midterm election.  If you had polled the press room and the conventional wisdom in Washington after the midterm, the assumption was there's no way we were going to end up getting a tax deal that got the majority of both Democrats and Republicans.  It was impossible, right?  And we got it done.

So this is not a matter of you go first or I go first.  This is a matter of everybody having a serious conversation about where we want to go, and then ultimately getting in that boat at the same time so it doesn’t tip over.  And I think that can happen.

Julianna Goldman.  There you are.

Q    Thank you, Mr. President.  Your budget relies on revenue from tax increases to multinational corporations that ship jobs overseas and on increases on the oil and gas industry. You’ve been calling on this for years.  And if you couldn’t get it through a Democratic Congress, why do you think you’ll be able to get it through now?  And also doesn’t it blunt your push for deficit-neutral corporate tax reform?

THE PRESIDENT:  Well, I continue to believe I’m right.  (Laughter.)  So we’re going to try again.  I think what’s different is everybody says now that they're really serious about the deficit.  Well, if you’re really serious about the deficit -- not just spending, but you’re serious about the deficit overall  -- then part of what you have to look at is unjustifiable spending through the tax code, through tax breaks that do not make us more competitive, do not create jobs here in the United States of America.

And the two examples you cite I think most economists would look at and they’d say these aren’t contributing to our long-term economic growth.  And if they're not, why are we letting some folks pay lower taxes than other folks who are creating jobs here in the United States and are investing?  Why are we not investing in the energy sources of the future, just the ones in the past, particularly if the energy sources of the past are highly profitable right now and don't need a tax break?

So I think what may have changed is if we are going to get serious about deficit reduction and debt reduction, then we’ve got to look at all the sources of deficit and debt.  We can’t be just trying to pick and choose and getting 100 percent of our way.

The same is true, by the way, for Democrats.  I mean, there are some provisions in this budget that are hard for me to take. You’ve got cities around the country and states around the country that are having a tremendously difficult time trying to balance their own budgets because of fallen revenue.  They’ve got greater demands because folks have lost their jobs; the housing market is still in a tough way in a lot of these places.  And yet part of what this budget says is we’re going to reduce Community Development Block Grants by 10 percent.  That’s not something I'd like to do.  But -- and if it had come up a year ago or two years ago, I would have said no.  Under these new circumstances, I'm saying yes to that.  And so my expectation is, is that everybody is going to have to make those same sorts of compromises.

Now, with respect to corporate tax reform, the whole concept of corporate tax reform is to simplify, eliminate loopholes, treat everybody fairly.  That is entirely consistent with saying, for example, that we shouldn’t provide special treatment to the oil industry when they’ve been making huge profits and can afford to further invest in their companies without special tax breaks that are different from what somebody else gets.

Q    -- you can't eliminate those --

THE PRESIDENT:  Well, what is absolutely true is that it’s going to be difficult to achieve serious corporate tax reform if the formula is, lower our tax rates and let us keep all our special loopholes.  If that’s the formula, then we’re not going to get it done.  I wouldn’t sign such a bill, and I don’t think the American people would sign such a bill.

If you’re a small business person out on Main Street, and you’re paying your taxes, and you find out that you’ve got some big company with billions of dollars in far-flung businesses all across the world, and they’re paying a fraction of what you’re paying in taxes, you’d be pretty irritated -- and rightfully so.

And so the whole idea of corporate reform -- corporate tax reform -- is, yes, let’s lower everybody’s rates so American businesses are competitive with businesses all around the world; but in order to pay for it, to make sure that it doesn’t add to our deficit, let’s also make sure that these special interest loopholes that a lot of lobbyists have been working very hard on to get into the tax code -- let’s get rid of those as well.

All right.  April Ryan.  Caught you by surprise, April.

Q    You did, sir.  Thank you.  Mr. President, I want to focus in on the least of these.  You started your career of service as a community organizer and now we are hearing from people like -- organizations like the CBC is saying rebuilding our economy on the backs of the most vulnerable Americans is something that is simply not acceptable, like the cuts to the Community Service Block Grants, Pell Grants, heating oil assistance, and freezing salaries of federal workers.  Now, Roderick Harrison, of the Joint Center for Political and Economic Studies, says it’s not good to make these types of cuts at a time of recession, instead of doing it at a time of recovery.

And also I need to ask you, have you been placing calls for your friend, Rahm Emanuel, for his mayoral campaign in Chicago?  Thank you.

THE PRESIDENT:  I’ll take the last question first.  I don’t have to make calls for Rahm Emanuel.  He seems to be doing just fine on his own.  And he’s been very busy shoveling snow out there.  (Laughter.)  I’ve been very impressed with that.  I never saw him shoveling around here.  (Laughter.)

Let me use Pell Grants as an example of how we’re approaching these difficult budget choices in a way that is sustainable but preserves our core commitment to expanding opportunity.  When I came into office I said I wanted to once again have America have the highest graduation rates, college graduation rates, of any country in the world -- that we had been slipping.  And so I significantly increased the Pell Grant program by tens of billions of dollars.  And so millions of young people are going to have opportunities through the Pell Grant program that they didn’t before, and the size of the Pell Grant itself went up.

What we also did, partly because we were in a recessionary situation and so more people were having to go back to school as opposed to work, what we also did was, for example, say that you can get Pell Grants for summer school.  Now we’re in a budget crunch.  The take-up rate on the Pell Grant program has skyrocketed.  The costs have gone up significantly.  If we continue on this pace, sooner or later what's going to happen is we’re just going to have to chop off eligibility.  We’ll just have to say, that's it, we can’t do this anymore, it’s too expensive.

So instead what we said was how do we trim, how do we take a scalpel to the Pell Grant program, make sure that we keep the increase for each Pell Grant, make sure that the young people who are being served by the Pell Grant program are still being served, but, for example, on the summer school thing, let’s eliminate that.  That will save us some money, but the core functions of the program are sustained.  That's how we’re approaching all these cuts.

On the LIHEAP program, the home heating assistance program, we doubled the home heating assistance program when I first came into office, in part because there was a huge energy spike, and so folks -- if we had just kept it at the same level, folks would have been in real trouble.  Energy prices have now gone down, but the costs of the program have stayed the same.  So what we’ve said is, well, let’s go back to a more sustainable level.  If it turns out that once again you see a huge energy spike, then we can revisit it.  But let’s not just assume because it’s at a $5 billion level that each year we’re going to sustain it a $5 billion level regardless of what’s happening on the energy front.

That doesn’t mean that these aren’t still tough cuts -- because there are always more people who could use some help across the country than we have resources.  And so it’s still a tough decision, and I understand people’s frustrations with some of these decisions.  Having said that, my goal is to make sure that we’re looking after the vulnerable; we’re looking after the disabled; we’re looking after our seniors; we’re making sure that our education system is serving our kids so that they can compete in the 21st century; we’re investing in the future, and doing that in a way that's sustainable and that we’re paying for -- as opposed to having these huge imbalances where there are some things that aren’t working that we’re paying a lot of money for; there’s some things that are underfunded.  We’re trying to make  adjustments so that we’ve got a sustainable budget that works for us over the long term.

And by the way, there are just some things that just aren’t working at all, so we’ve eliminated a couple hundred programs in this budget.  On the education front, we’re consolidating from 33 programs to 11 programs.  There is waste and inefficiency there that is long overdue, and we identify a number of these programs that just don't work.  Let’s take that money out of those programs that don't work, and put in money -- that money in programs that do.

Q    -- say is the President feeling our pain, especially as you were a community organizer --

THE PRESIDENT:  I -- look, I definitely feel folks’ pain.
Somebody is doing a book about the 10 letters that I get every day, and they came by to talk to me yesterday.  And they said, what’s the overwhelming impression that you get when you read these 10 letters a day, and what I told them is I'm so inspired by the strength and resilience of the American people, but sometimes I'm also just frustrated by the number of people out there who are struggling, and you want to help every single one individually.  You almost feel like you want to be a case worker and just start picking up the phone and advocating for each of these people who are working hard, trying to do right by their families; oftentimes, through no fault of their own, they’ve had a tough time, particularly over these last couple of years.

So, yes, it’s frustrating.  But my job is to make sure that we’re focused over the long term:  Where is it that we need to go?  And the most important thing I can do as President is make sure that we’re living within our means, getting a budget that is sustainable, investing in the future and growing the economy.  If I do that, then that’s probably the most help I can give to the most number of people.

Jake Tapper.

Q    Thanks, Mr. President.  House Republicans, as you know, want to start cutting now, want to start cutting this year’s budget.  Are you willing to work with them in the next few weeks so as to avoid a government shutdown?  There’s been talk of a down payment on budget cuts that they would like to make for this year’s budget.

And also, I was wondering if you could talk a little bit about the attempts to get American diplomat Ray Davis freed from Pakistan.  Some have criticized the administration for putting pressure too publicly on what is essentially a weak government, and I’m wondering if you could walk us through that process.  Thanks.

THE PRESIDENT:  My goal is to work with the Republicans, both on the continuing resolution -- and for those who are watching that don’t know Washingtonese, the CR is a continuing resolution, a way to just keep government going when you don’t have an overall budget settled.  And we didn’t settle our overall budget from last year, so this is carryover business from last year, funding vital government functions this year.

So I want to work with everybody, Democrats and Republicans, to get that resolved.  I think it is important to make sure that we don’t try to make a series of symbolic cuts this year that could endanger the recovery.  So that’s point number one.

What I’m going to be looking for is some common sense that the recovery is still fragile; we passed this tax cut package precisely to make sure that people had more money in their pockets, that their paychecks were larger, were provided these tax credits and incentives for businesses.  But if the steps that we take then prompt thousands of layoffs in state or local government, or core vital functions of government aren’t performed properly, well, that could also have a dampening impact on our recovery as well.

So my measure is going to be are we doing things in a sensible way, meeting core functions, not endangering our recovery.  In some cases, like defense, for example, Secretary Gates has already testified if we’re operating -- even operating under the current continuing resolution is putting significant strains on our ability to make sure our troops have what they need to perform their missions in Afghanistan.  Further slashes would impair our ability to meet our mission.

And so we’ve got to be careful.  Again, let’s use a scalpel; let’s not use a machete.  And if we do that, there should be no reason at all for a government shutdown.  And I think people should be careful about being too loose in terms of talking about a government shutdown, because this has -- this is not an abstraction.  People don’t get their Social Security checks.  They don’t get their veterans payments.  Basic functions shut down.  And it -- that, also, would have a adverse effect on our economic recovery.  It would be destabilizing at a time when, I think, everybody is hopeful that we can start growing this economy quicker.

So I’m looking forward to having a conversation.  But the key here is for people to be practical and not to score political points.  That’s true for all of us.  And I think if we take that approach we can navigate the situation short term and then deal with the problem long term.

With respect to Mr. Davis, our diplomat in Pakistan, we’ve got a very simple principle here that every country in the world that is party to the Vienna Convention on Diplomatic Relations is -- has upheld in the past and should uphold in the future, and that is if our diplomats are in another country, then they are not subject to that country’s local prosecution.

We respect it with respect to diplomats who are here.  We expect Pakistan, that's a signatory and recognize Mr. Davis as a diplomat, to abide by the same convention.

And the reason this is an important principle is if it starts being fair game on our ambassadors around the world, including in dangerous places, where we may have differences with those governments, and our ambassadors or our various embassy personnel are having to deliver tough messages to countries where we disagree with them on X, Y, Z, and they start being vulnerable to prosecution locally, that’s untenable.  It means they can’t do their job.  And that’s why we respect these conventions, and every country should as well.

So we’re going to be continuing to work with the Pakistani government to get this person released.  And obviously part of -- for those who aren’t familiar with the background on this, a couple of Pakistanis were killed in a incident between Mr. Davis within -- in Pakistan.  So obviously, we’re concerned about the loss of life.  We’re not callous about that.  But there’s a broader principle at stake that I think we have to uphold.

Q    How serious have your threats been to the Pakistani government if they don't hand him over?

THE PRESIDENT:  Well, I’m not going to discuss the specific exchanges that we’ve had.  But we’ve been very firm about this being an important priority.

Ed Henry.

Q    Thank you, Mr. President.  I want to go back to Egypt because there was some perception around the world that maybe you were too cautious during that crisis and were kind of a step behind the protesters.  I know that, as you said, there was dramatic change in three weeks, and some of us wanted it to go even faster than that.  But having said that, I realize it’s a complicated situation.  It was evolving rapidly.  But now as these protests grow throughout the Mideast and North Africa -- you said before your message to the governments involved was make sure you’re not violent with peaceful protesters.  But what’s your message to the protesters?  Do you want them to taste freedom?  Or do you want them to taste freedom only if it will also bring stability to our interests in the region?

THE PRESIDENT:  Well, first of all, without revisiting all the events over the last three weeks, I think history will end up recording that at every juncture in the situation in Egypt that we were on the right side of history.  What we didn't do was pretend that we could dictate the outcome in Egypt, because we can’t.  So we were very mindful that it was important for this to remain an Egyptian event; that the United States did not become the issue, but that we sent out a very clear message that we believed in an orderly transition, a meaningful transition, and a transition that needed to happen not later, but sooner.  And we were consistent on that message throughout.

Particularly if you look at my statements, I started talking about reform two weeks or two-and-a-half weeks before Mr. Mubarak ultimately stepped down.  And at each juncture I think we calibrated it just about right.  And I would suggest that part of the test is that what we ended up seeing was a peaceful transition, relatively little violence, and relatively little, if any, anti-American sentiment, or anti-Israel sentiment, or anti-Western sentiment.  And I think that testifies the fact that in a complicated situation, we got it about right.

My message I think to demonstrators going forward is your aspirations for greater opportunity, for the ability to speak your mind, for a free press, those are absolutely aspirations we support.

As was true in Egypt, ultimately what happens in each of these countries will be determined by the citizens of those countries.  And even as we uphold these universal values, we do want to make sure that transitions do not degenerate into chaos and violence.  That’s not just good for us; it’s good for those countries.  The history of successful transitions to democracy have generally been ones in which peaceful protests led to dialogue, led to discussion, led to reform, and ultimately led to democracy.

And that’s true in countries like Eastern Europe.  That was also true in countries like Indonesia, a majority Muslim country that went through some of these similar transitions but didn’t end up doing it in such a chaotic fashion that it ended up dividing the societies fundamentally.

Q    But has it improved the chances of something like Mideast peace, or has it made it more complicated in your mind?

THE PRESIDENT:  I think it offers an opportunity as well as a challenge.  I think the opportunity is that when you have the kinds of people who were in Tahrir Square, feeling that they have hope and they have opportunity, then they’re less likely to channel all their frustrations into anti-Israel sentiment or anti-Western sentiment, because they see the prospect of building their own country.  That’s a positive.

The challenge is that democracy is messy.  So there -- and if you’re trying to negotiate with a democracy, you don’t just have one person to negotiate with; you have to negotiate with a wider range of views.

But I like the odds of actually getting a better outcome in the former circumstance than in the latter.

All right.  Mike Emanuel.

Q    Thank you, Mr. President.  The number one concern for many Americans right now is jobs.  Taking a look at your budget, there are tax hikes proposed for energy, for higher-income people, and also for replenishing the state unemployment funds.  Do you worry about the impact on jobs, sir?

THE PRESIDENT:  Well, actually, if you look at that budget, there’s a whole bunch of stuff in there for job creation.  I think some folks noted, for example, our infrastructure proposals -- which would create millions of jobs around the country -- our investments in research and development and clean energy have the potential for creating job growth in industries of the future.

My belief that the high-end tax cuts for -- or the Bush tax cuts for the high-end of the population -- folks like me -- my belief is, is that that doesn’t in any way impede job growth.  And most economists agree.

We had this debate in December.  Now, we compromised in order to achieve an overall package that reduced taxes for all Americans, and so I believe -- I continue to believe that was a smart compromise.  But when it comes to over the long term, maintaining tax breaks for millionaires and billionaires, when that will mean additional deficits of a trillion dollars, if you're serious about deficit reduction, you don't do that.

And as I said, I think most economists -- even ones that tend to lean to the right or are more conservative -- would agree that that's not -- that's not the best way for us to approach deficit reduction and debt reduction.

So I do think it’s important, as we think about corporate tax reform, as we think about individual tax reform, to try to keep taxes as simple as possible and as low as possible.  But we also have to acknowledge that, in the same way that families have to pay for what they buy, government has to pay for what it buys. And if we believe that it’s important for us to have a strong military, that doesn’t come for free.  We’ve got to pay for it.  If we think that we have to take care of our veterans when they come home -- and not just salute on Memorial Day but we actually have to work with folks who have Post-Traumatic Stress Disorder or Traumatic Brain Injury -- well, that requires services that are very labor-intensive and expensive.

If we think it’s important that our senior citizens continue to enjoy health care in their golden years, that costs money.  If we think that after a flood we help out our neighbors and our fellow citizens so that they can recover, we’ve got to pay for it.

So the circumstance that's changed -- earlier Julianna asked why I think I might get a deal.  I think some of the questions here generally have centered about what's going to be different this time.  My hope is that what's different this time is, is we have an adult conversation where everybody says here’s what's important and here’s how we’re going to pay for it.

Now, there are going to be some significant disagreements about what people think is important.  And then that's how democracy should work.  And at the margins I think that I'll end up having to compromise on some things.  Hopefully others will have that same spirit.

Q    As part of that adult conversation, sir, what if they say deeper spending cuts before you consider tax hikes?

THE PRESIDENT:  Well, I think it just depends on what exactly you’re talking about.  And I think that there should be a full, open debate with the American people:  Are we willing to cut millions of young people off when it comes to student loans that help kids and families on their college education?  Are we only serious about education in the abstract, but when it’s the concrete we’re not willing to put the money into it?  If we’re cutting infant formula to poor kids, is that who we are as a people?

I mean, we’re going to have to have those debates -- particularly if it turns out that making those cuts doesn’t really make a big dent in the long-term debt and deficits, then I think the American people may conclude let’s have a more balanced approach.  But that’s what we’re going to be talking about over the next couple months.  As I said, I know everybody would like to see it get resolved today.  It probably will not be.  (Laughter.)  That’s a fair prediction.

All right, I’m going to take one last question here.  Jackie Calmes.

Q    Thank you, Mr. President.  I’d almost given up there.

THE PRESIDENT:  Oh, don’t give up.  (Laughter.)

Q    You’ve correctly suggested that the media can be impatient about seeing you -- seeing both sides come to a deal, but this is your third budget, your third year of your presidency.  You’ve said many times that you’d rather be a one-party -- one-term President if it means you’ve done the hard things that need to be done.  Now, I know you’re not going to stand there and invite Republicans to the negotiating table today to start hashing it all out, but why not?  And since you’re not, though, what more are you doing to build the spirit of cooperation you mentioned earlier needs to happen before there is bipartisanship?

And finally, do you think the markets will wait two years?

THE PRESIDENT:  I should have written all this down, Jackie.  (Laughter.)  I’m running out of room here in my brain.

Q    I’m happy to repeat my question.  (Laughter.)

THE PRESIDENT:  Well, let me just speak to this generally.  It’s true that this is my third budget.  The first two budgets were in the midst of the worst recession since the Great Depression, so we had a different set of priorities.  And I said it at the time -- in each of those budgets, what I said was, the deficit’s going up and we are compiling some additional debt, but the reason is because it is so important for us to avoid going into a depression or having a longer recession than is necessary.
Because the most important thing that we had to do in order to limit the amount of increased debt and bigger deficits is to grow the economy some more.  So that was our priority.  That was our focus.

This third budget reflects a change in focus.  The economy is now growing again.  People are more hopeful.  And we’ve created more than a million jobs over the last year.  Employers are starting to hire again, and businesses are starting to invest again.  And in that environment, now that we’re out of the depths of the crisis, we have to look at these long-term problems and these medium-term problems in a much more urgent and a much more serious way.

Now, in terms of what I’m doing with the Republicans, I’m having conversations with them and Democratic leadership.  I did before this budget was released and I will do so afterwards.  And I probably will not give you a play-by-play of every negotiation that takes place.  I expect that all sides will have to do a little bit of posturing on television and speak to their constituencies, and rally the troops and so forth.  But ultimately, what we need is a reasonable, responsible, and initially, probably, somewhat quiet and toned-down conversation about, all right, where can we compromise and get something done.
And I’m confident that will be the spirit that congressional leaders take over the coming months, because I don’t think anybody wants to see our recovery derailed.  And all of us agree that we have to cut spending, and all of us agree that we have to get our deficits under control and our debt under control.  And all of us agree that part of it has to be entitlements.

So there’s a framework there -- that speaks, by the way, again, to the point I made with you, Chuck, about the commission. I think the commission changed the conversation.  I think they gave us a basic framework, and within that framework we’re going to have to have some tough conversations and the devil is going to be in the details.

But, look, I was glad to see yesterday Republican leaders say, how come you didn’t talk about entitlements?  I think that’s progress, because what we had been hearing made it sound as if we just slashed deeper on education or other provisions in domestic spending that somehow that alone was going to solve the problem. So I welcomed -- I think it was significant progress that there is an interest on all sides on those issues.

In terms of the markets, I think what the markets want to see is progress.  The markets understand that we didn’t get here overnight and we’re not going to get out overnight.  What they want to see is that we have the capacity to work together.  If they see us chipping away at this problem in a serious way, even if we haven’t solved a hundred percent of it all in one fell swoop, then that will provide more confidence that Washington can work.

And more than anything, that’s not just what the markets want; that’s what the American people want.  They just want some confirmation that this place can work.  And I think it can.

All right.  Thank you, everybody.

END
12:01 P.M. EST

The White House

Office of the Press Secretary

For Immediate Release
February 14, 2011

Remarks by the President to Students at Parkville Middle School and Center of Technology

Parkville Middle School and Center of Technology

Baltimore, Maryland

10:38 A.M. EST

THE PRESIDENT:  Hello, hello -- there we go.  Parkville Middle School, can you hear me now?

STUDENTS:  Yesss!

THE PRESIDENT:  Well, it is wonderful to see all of you.  And I want to thank your terrific principal, all the great staff who helped to arrange this visit.

First of all, Malia and Sasha say hi.

STUDENTS:  Hi!

THE PRESIDENT:  Michelle says hi.

STUDENTS:  Hi!

THE PRESIDENT:  Happy Valentine’s Day.  (Applause.)  Have you guys been exchanging valentines?

STUDENTS:  Yes --

THE PRESIDENT:  You are?  A little bit, huh?

In addition to coming here to wish you happy Valentine’s Day, the other reason I'm here is because what you guys are doing here at Parker -- at Parkville -- the principal is Parker -- what you guys are doing here at Parkville is so important to our future.

We live in a world that is getting smaller because of technology.  You saw recently what was happening in Egypt -- people with Facebook and Twitter led an entire revolution in their country.  And we were watching it live on television.  Twenty years ago, 30 years ago, that would have been impossible.

So the world is getting smaller and what it means is, is that there are terrific opportunities for us to partner with people around the world, but it also means that the world is more competitive -- because when you graduate from high school and when you graduate from college, you're going to be competing with people all around the world to make the best products and the best services.  And so, for us to be successful as a country, you’re going to have to succeed.  And for you to succeed, you're going to have to be able to possess the skills and knowledge of a 21st century economy.

And that means math, and that means science.  And so we wanted to come here to highlight the great work that you guys are doing in math and science and engineering, because we want the kind of success that we're seeing at this school spread all across the country.  And that requires we make investments in great teachers and good equipment and labs and the Internet.  And it means that we've got to make sure that we're emphasizing every day how important education is and we're putting our money behind it.

So right now I'm in the process of putting together a big federal budget.  And some of you may know that we've got a big deficit because we just came out of a big recession, and so people are worried about how we're going to be able to pay for things in the future.  And the message that I delivered today was, just like in your own households, if things get a little tight you may stop going out to dinner or stop going to the movies, but you're still going to make sure that you're paying for the things that are really important like heat or fixing the roof or your parents are setting money aside for your college education -- we've got to do that same thing as a country.

And so I wanted to make sure that we came to your school today to highlight it and also applaud you for your success.  So I'm just hoping that everybody here knows we're proud of you; that you guys are working hard, that you stay focused because your success ultimately is going to mean America’s success.

All right?  Now, I think I'll take time -- I'm not supposed to do this, but I think I'll take time for like two questions.  So anybody have any questions?  All right, this young man right here.  He had his hand up right away.

Q    What does it feel like to be President?

THE PRESIDENT:  What does it feel like to be the President? You know, some days -- some days you're burdened by some really tough decisions.  Some of you may have family members who are in Afghanistan, for example.  And I'm the Commander-in-Chief, and so I'm responsible for sending those young men and women over, who are doing an amazing job.  Some of them get hurt.  Some of them get killed.  And so you feel a responsibility that is profound about making that decision.  Even though you think it’s the best thing to do for the country, it’s one that carries an unbelievable cost.

There are days where you feel really excited because something that you got done you know is helping somebody.  So when we passed the health care bill that we passed -- and it was controversial.  It was a lot of work.  It was -- and some people still don't like it.  But I would get letters from people who said, my kid couldn't get insurance before and now I feel secure because they’re able to get health insurance so that when they get sick they’re able to get health care.  So that makes you feel good.

Every day I feel proud and privileged to have the chance to work in this office.  But I'll be honest with you.  There are certain parts of the job that are kind of tough, like I'm kind of in this bubble.  I can't go anywhere, I can't just -- if I want to just go to the corner drugstore and buy some shaving cream or something -- (laughter) -- or if I just feel like taking a walk with Bo -- like I can't do anything spontaneous.  And that kind of gets on your nerves.

And the other thing is people know who you are everywhere -- obviously.  (Laughter.)  So you have to -- you always have to like shave and comb your hair and -- (laughter) -- you can't just roll out of bed and be out there.  (Laughter.)  So that kind of stuff can be a little tough.

Young lady right here.  

Q    Is there a lot of stress in --

THE PRESIDENT:  Stand up, I'm sorry.  What’s your name?

Q    Brianna --

THE PRESIDENT:  Brianna.  So what were you saying?

Q    Is there like a lot of stress when you --

THE PRESIDENT:  Like when I'm working on the economy or something?

Q    -- when you're working on the economy --

THE PRESIDENT:  Well, look, there’s stress involved.  But let me tell you something.  I promise you there’s stress involved being the principal of a middle school.  There’s stress involved being a teacher.

One of the things that I want everybody here to understand is, is that whatever profession you choose, whether it’s being president, being an engineer, being the principal of a school, being a teacher, there are going to be some stresses involved.  There aren't that many jobs out there that you just kind of sit back and have fun all the time.  But that's part of growing up, and that's part of being successful, is managing that stress.

The one thing that I think helps me handle the stress is if I feel like, at the end of the day, I've done the best possible job I can do, even if not everything has worked out exactly the way I planned it, then I feel okay.  What bothers me is if I feel like, gosh, I could have done -- I could have done better on that.

So you guys should take the same attitude with respect to school.  I mean, look, I know 7th and 8th graders, you guys have got your own little stresses.  And growing up is stressful, and taking tests are stressful, and getting that paper in on time is stressful.  The key is just making sure that you’re hungry for knowledge, you're working hard, you're getting better all the time.  If you do that, then you can look yourself in the mirror and say, I'm doing my best.

And if everybody here is doing their best, I'm confident you guys are going to succeed and thrive.

All right?  Well, I'm very proud of you guys.  Thank you, everybody.  (Applause.)  Thank you.

END
10:48 A.M. EST

The White House

Office of the Press Secretary

For Immediate Release
February 14, 2011

Remarks by the President on Unveiling of the Budget in Baltimore, Maryland

Parkville Middle School and Center for Technology

Baltimore, Maryland

10:25 A.M. EST

THE PRESIDENT:  Well, good morning, everybody.  I am here at Parkville Middle School and Center of Technology outside of Baltimore with Secretary Arne Duncan and Budget Director Jack Lew.  And I just came to Parkville on a day where we are unveiling our budget, and I'm doing so for a reason.  But before I do that I just want to thank Principal Buddy Parker, who is showing us around, as well as Susan Yoder, the eighth grade science teacher who we just visited with in her classroom.

Over the last few weeks I’ve traveled the country, talking about what we need to do to win the future; talked about the need to invest in innovation, so that the next big idea is discovered here in the United States of America.  I’ve talked about the need to invest in high-speed rail and high-speed Internet, so that companies can move goods and information faster than ever.  And this week, I’ll be talking about the need to invest in education -– in places like Parkville -– so that every American is equipped to compete with any worker, anywhere in the world.

These investments are an essential part of the budget my administration is sending to Congress.  Because I’m convinced that if we out-build and out-innovate and out-educate, as well as out-hustle the rest of the world, the jobs and industries of our time will take root here in the United States.  Our people will prosper and our country will succeed.

But I’m also convinced that the only way we can make these investments in our future is if our government starts living within its means, if we start taking responsibility for our deficits.  That’s why, when I was sworn in as President, I pledged to cut the deficit in half by the end of my first term.  The budget I’m proposing today meets that pledge -– and puts us on a path to pay for what we spend by the middle of the decade. We do this in part by eliminating waste and cutting whatever spending we can do without.

As I start -- as a start, I’ve called for a freeze on annual domestic spending over the next five years.  This freeze would cut the deficit by more than $400 billion over the next decade, bringing this kind of spending -- domestic discretionary spending -- to its lowest share of our economy since Dwight Eisenhower was President.  Let me repeat that.  Because of our budget, this share of spending will be at its lowest level since Dwight Eisenhower was President.  That level of spending is lower than it was under the last three administrations, and it will be lower than it was under Ronald Reagan.

Now, some of the savings will come through less waste and more efficiency.  To take just one example, by getting rid of 14,000 office buildings, lots and government-owned properties we no longer need, we can save taxpayers billions of dollars.  And when it comes to programs we do need, we’re making them work better by demanding accountability.  Instead of spending first, and asking questions later, we’re rewarding folks inside and outside government who deliver results.  And to make sure that special interests aren’t larding up legislation with pet projects, I’ve pledged to veto any bill that contains earmarks.

Still, even as we cut waste and inefficiency, this budget freeze will require some tough choices.  It will mean cutting things that I care deeply about -- for example, community action programs in low-income neighborhoods and towns, and community development block grants that so many of our cities and states rely on.  But if we’re going to walk the walk when it comes to fiscal discipline, these kinds of cuts will be necessary.

I’m also looking forward to working with members of both parties to take steps beyond this budget freeze -– because cutting annual domestic spending won’t be enough to meet our long-term fiscal challenges.  As the bipartisan fiscal commission concluded, the only way to truly tackle our deficit is to cut excessive spending wherever we find it -– in domestic spending, defense spending, health care spending, and spending through tax breaks and loopholes.  So what we’ve done here is make a down payment, but there’s going to be more work that needs to be done, and it’s going to require Democrats and Republicans coming together to make it happen.

We’ve begun to do some of this with $78 billion in cuts in the Defense Department’s budget plan, by ending tax breaks for oil and gas companies, and through billions of dollars in savings from wasteful health spending -– savings we’ll use to make sure doctors don’t see their reimbursements slashed and that they stay in the system seeing patients.

But here’s the thing.  While it’s absolutely essential to live within our means, while we are absolutely committed to working with Democrats and Republicans to find further savings and to look at the whole range of budget issues, we can’t sacrifice our future in the process.  Even as we cut out things that we can afford to do without, we have a responsibility to invest in those areas that will have the biggest impact in our future -– and that’s especially true when it comes to education.

Right now, this school, Parkville, is preparing our kids for the jobs and careers of the 21st century.  It’s a school that nurtures what students are passionate about and prepares them for success.  Students in the magnet program here start out by taking courses in each of four subjects –- from applied engineering to environmental science -– gradually focusing their studies on one subject over the next couple of years.

I’m told the most popular subject at this school is engineering.  And that’s important, because today the most common educational background for America’s top business leaders isn’t economics.  It’s not finance.  It’s not even business.  It’s engineering.

Engineering and math, critical thinking, problem solving –- these are the kinds of subjects and skills that our kids need to achieve success in the 21st century.  That’s why we’re spearheading a drive to prepare more than 10,000 new math and science teachers over the next five years, and train 100,000 more current teachers in those fields.  That’s why we’re pushing forward on a Race to the Top in our schools that has led over 40 states to raise their standards for teaching and learning for less than 1 percent of what we spend on education each year. That’s why we’re protecting the more than $800 increase that we added to the most widely used federal scholarships, and making the tough choices to put them on a firm footing for years to come.  And that’s why we’re on track to meet the goal that I set when I took office:  By 2020, America will once again have the highest proportion of college graduates in the world.

I know the American people understand why this is so important.  And I think that those of us who are working in Washington need to understand why these investments in the future are so important as well.

I mentioned in my weekly radio address a letter that I recently got from a woman named Brenda Breece.  Brenda is a mom. She’s a special ed teacher in Missouri, and her husband, David, lost his job when the local Chrysler plant shut down.  So money has been tight for the family, and they’ve had to sacrifice the little things that they can do without.  One thing that Brenda knows she can’t afford to sacrifice is her daughter Rachel’s education.  And that’s why she’s looking, as we speak, for a second job to help put Rachel through college, and ensure, as she told me, that “the money is there to help Rachel with her future.”

What’s true for Brenda’s family is true for the larger American family:  Education is an investment that we need to win the future -- just like innovation is an investment that we need to win the future; just like infrastructure is an investment that we need to win the future.  And to make sure that we can afford these investments, we’re going to have to get serious about cutting back on those things that would be nice to have but we can do without.

That’s what families across the country do every day –- they live within their means and they invest in their family’s futures.  And it’s time we did the same thing as a country.  That’s how we’re going to get our fiscal house in order.  That’s how we’ll grow our economy and attract new jobs to our shores.  And that’s how America we will win the future in the 21st century.

Thanks very much, everybody.

END
10:35 A.M. EST

The White House

Office of the Press Secretary

For Immediate Release
February 11, 2011

Remarks by the President and Press Briefing by Press Secretary Robert Gibbs

 

James S. Brady Press Briefing Room 

3:32 P.M. EST

     MR. GIBBS:  You should brief today.  (Laughter.) 

     Q    We got a one and one.  (Laughter.)

     THE PRESIDENT:  All right.  Well, listen, obviously Gibbs’s departure is not the biggest one today.  (Laughter.)  Having said that, I thought I should come into the briefing room just to say a few words about my departing press secretary. 

     As some of you know, Robert started very early with me on this wild ride that I’ve been on.  I had run for the United States Senate.  I was not expected to win.  When I won the Democratic primary in Illinois, I realized that I was going to have to start staffing up a little bit; at the time I only had I think six or seven people working for me.  And I still didn’t have a lot of money, so all I could afford was Gibbs.  (Laughter.)

     And so Robert came to work with me and we had what appeared to be a pretty significant general election, and then Alan Keyes came in and so that ended up not being our primary focus.  We then had this incredible opportunity to speak at the national convention in Boston.  And I know that a lot of you think that probably most attention was devoted to the speech that I delivered, the keynote speech in Boston, but in fact actually the most challenging problem was what tie to wear. 

     And this went up to the very last minute.  I mean, 10 minutes before we were about to go on stage, we were still having an argument about ties.  I had bought five, six ties.  And Michelle didn’t like any of them.  Axelrod didn’t like a couple of them -- him being, you know, one of the best dressed men in the world.  (Laughter.)  So we really valued his opinion.  (Laughter.)

     And then somebody -- I don’t remember who it was -- turned and said, you know what, what about Gibbs’s tie?  What about Gibbs’s tie?  That might look good.  And frankly, Robert didn’t want to give it up because he thought he looked really good in the tie, but eventually he was willing to take one for the gipper.  And so he took off his tie and I put it on.  And that’s the tie that I wore at the national convention.

     He has not said about -- anything about this tie all these years.  But I have to tell you that I know there’s a simmering resentment -- (laughter) -- that he never got it back.  And so as a consequence, I wanted here today -- I wanted this on the record, on camera -- (laughter) -- that I am finally returning Robert’s tie.  And if he chooses to break the glass, he can.  (Laughter.) 

     But this is going to be a reminder to me that Robert has not only been an extraordinary press secretary, but he has been a great friend.  And you could not ask for somebody better in the foxhole with you during all the twists and turns of my candidacy and then the incredible challenges that we faced over the last two years.

     So I’m so proud of him, and everybody here loves Robert.  He’s going to be working closely with us.  I don’t think we could have a better press secretary.  I think Jay is going to do an outstanding job of filling Robert’s shoes.  But I certainly couldn’t have a better friend at the podium each and every day.  So I just wanted to say congratulations, Robert.  (Applause.)

     Q    Did you sign?

     THE PRESIDENT:  Well, I didn’t actually --

     Q    What’s it say?

     THE PRESIDENT:  I didn’t actually sign the tie, because as I said, he may decide he wants to wear it.  It just said I thought that I should finally give you your tie back.  It and you helped me get started.  All right.  Thank you, brother.

     MR. GIBBS:  Thank you.  (Applause.)

     THE PRESIDENT:  You notice, by the way, that he bought one just like it.  (Laughter.)

     MR. GIBBS:  I like that tie. 

     Q    Can we ask you about Egypt?

     Q    Anything further about Egypt?

     MR. GIBBS:  I like that tie.  Let me get a few things -- let me just say a few things before we get down to talking about what we have every day and what we should every day, and that’s the business of the country. 

     It is a tremendous honor and privilege to do this each and every day, to serve and to take part in days like today that are so momentous.  And I want to thank the President and all of his team for, again, the privilege to serve.

     I don’t want to spend a lot of time doing this.  I don’t talk about myself well.  But I would be remiss if I didn’t talk about a group of people that, I want to be clear, doesn’t work for me, but I have the great privilege and I'm lucky enough to work with.  I would not want to do this job, as amazing and as exciting as it is, without them.  And I wouldn’t have made it through it without them. 

     I don’t intend, today or tomorrow, to tell any of you goodbye, because I don’t intend to go anywhere.  You all are forever a part of this experience for me.  You’ve become a greater extension of my family.  We’ve shared a lot of extraordinary times. 

     I will miss boring days like today at the White House.  (Laughter.)  I should tell you that for all of you that are looking for help on your morning shows, that Jay likes calls around 4:15 a.m. in the morning.  (Laughter.)  If you don’t get through at first, just keep dialing.  (Laughter.) 

     And, again, it has been an extraordinary privilege.  And I will have more to say to all these guys and more to say to those of you that are in the back of the room that have meant so much to me and continue to mean so much to me. 

     But before I lose it, we should probably start the 250th briefing of the Obama administration with Mr. Feller.

     Q    Thank you, Robert.  Well, first of all, congratulations and best wishes to you.  Hope we see you on the campaign.  If you do get homesick, you could bring back the dunk tank at any time.  (Laughter.)

     MR. GIBBS:  Some of you have better arms than I -- where’s Bill Plante?  (Laughter.)  I would have bet a serious sum of money that Bill Plante would not have been the one that dunked me, but I would have lost that and gotten wet, too.

     Go ahead.

     Q    Shifting to Egypt, a few questions.  First of all, could you tell us whether President Obama was surprised by the news this morning?

     MR. GIBBS:  Well, look, I think that throughout the morning we had gotten -- and into last night -- gotten indications that the last speeches may not have been given, and the last changes, particularly this morning when, with the -- with everybody reporting that there would be a statement from the office of the president.

     So the President, as I think many of you have reported, was in a regularly scheduled meeting in the Oval when a note was taken in to him to let him know what had been announced.  And since then, prior to giving the statement, he spent about an hour with his national security team from about 1:30 p.m. to 2:30 p.m. in the Situation Room talking about what's going on there now, and what we have to plan for now, going forward.

     Q    But he learned, when he got that note after the announcement -- essentially he learned with the rest of us. 

     MR. GIBBS:  Well, he learned what precisely had been said.  I don't want to get into what other information he might have gotten.

     Q    Big picture, is this change helpful or harmful to the interests of the United States?

     MR. GIBBS:  Well, Ben, I think that any time that a government changes based on the popular response of its people, as you’ve heard the President talk about a lot, is important.  All governments have responsibilities to those that they represent.  I think as you heard the President say in his statement, there will be many bumps along this road as this transition continues toward free and fair elections.

     So I don’t doubt, as I said, that there will be -- there’s much work to be done.  This was -- this is the beginning of that process, not the end of it.

     Q    Does the President have any concerns as that process unfolds about the unknowns, about the -- any sense of instability right now?

     MR. GIBBS:  Well, look, I think that the partnership that we’ve had with the people and the nation of Egypt for 30 years has brought regional stability and has brought peace, particularly between the countries of Egypt and Israel.  And I think it’s important that the next government of Egypt, as we’ve said in here many times, recognize the accords that have been signed with the government of Israel.

     You know, I think that, again, a lot has yet to be determined.  I think it is clear, though, watching the events unfold over the last couple days, the real breadth of Egyptian society that’s been out seeking the type of change that we saw happen today, I don’t think is dominated by a single group or a single ideology.  I think the breadth is quite wide.

     Yes, ma’am.

     Q    Robert, since the protests began, all of your statements about Egypt have been very carefully worded.  I thought last night’s statement from the President was especially carefully worded.  Mubarak wasn’t even mentioned.  Did the President have a sense then, when he issued that statement, that maybe the speech yesterday from Mubarak wasn’t the final word?

     MR. GIBBS:  Well, look, I think it is safe to say that the very same contacts that we have in Egypt are some of the very same contacts that many of you all had that seemed to tell everyone that a different speech might be what we would hear -- that we didn’t hear last night. 

     And I think -- I think as the statement says, it was at that point a missed opportunity for the government of Egypt to take the necessary steps toward that orderly transition.  I think that was -- I think, quite frankly, Caren, that’s been true building throughout the week, that you have seen as the government failed to take the necessary steps to broaden the coalition and to make some fundamental reforms that would signal to those in the opposition that they were serious, the crowds grew larger and larger.

     So there is no doubt I think that there has -- this is a situation where I think the phrase we’ve used a lot around here is “threading the needle.”  There are a lot of equities in the country and in the region.  And ultimately this is something that started with, was driven by, and will ultimately only be solved by the people of Egypt.  I think that is true in the lead-up to the historic announcement today but will be even more important in the days ahead leading to elections.

     Q    Can you talk about contacts with leaders in the region that have taken place since the announcement?

     MR. GIBBS:  Since the announcement today?  The President has not made any phone calls either to those in the region or -- not talked to any heads of state.

     Q    What about senior-level contacts?  And what kind of assurances, if any, can you give Israel and Jordan about how this may affect them and their concerns about stability?

     MR. GIBBS:  Well, look, we have throughout this process wanted to see protests that were peaceful, protests that were -- our outcome in this process we wanted to see happen in an orderly way to ensure some of that very stability.  I think that if you -- that's what, quite frankly, is what has guided us this entire time.

     The President -- again, the President has not spoken with anybody.  I do not believe at this point -- though I would check -- you should check more carefully with the Pentagon, in terms of whether in the last few hours -- I don't think there have been any contacts.  Obviously we’ve got pretty good relationships, as you’ve seen throughout this process on a military-to-military basis.

     I will say it is remarkable to watch in the region how Iran is dealing with this.  We saw I think about a week or so ago they made some provocative statements about what these marches meant.  We now know what -- how they’re responding to the images that we see in Tahrir Square.  They are arresting people in Iran.  They are blocking international media outlets.  They are turning off the Internet. 

     So for all of the empty talk about Egypt, I think if the Iranian government -- I think it’s up to the -- the Iranian government should allow the Iranian people to exercise the very same right of peaceful assembly and ability to demonstrate and communicate their desires.  I think we’ve all seen, again, their response.  The head of the Revolutionary Guard said today, “Seditionists are no more than a corpse.  We will severely crush any of their movements.” 

     So I think what you’ve seen in the region is the government of Iran, quite frankly, scared of the will of its people. 

     Jake.

     Q    Thanks, Robert.  Before I ask my last questions of you in this room, good luck, and I hope you get to spend a lot of time with Ethan.  I’ve also taken the liberty of going back and looking at all the questions you said you’d get back to us with an answer -- (laughter) -- that you didn’t get back to us with --

     MR. GIBBS:  Jay --

     Q    -- starting in January 2009.

     MR. GIBBS:  Jay will have a transcript of all of those for you on Monday.  And if you don’t get it, just keeping pinging him.

     Q    When was the last time President Obama spoke with President Mubarak?

     MR. GIBBS:  I’d have to double-check, but I believe it was -- I’ll double-check.  I think it was right before he spoke -- was it -- it was Monday, right?  The Monday that he spoke.  The last one we read out.

     Q    The last time you announced that --

     MR. GIBBS:  There haven’t been any calls since that that I’m aware of.

     Q    Under the Obama administration, the State Department changed the way that civil society in Egypt was funding -- was funded.  First of all, it didn’t directly fund civil society groups or democracy groups as the Bush administration had done.  It instead went through the Egyptian government through approved civil society groups, and then also lowered how much civil society groups were funded.  In retrospect, does the Obama administration regret that?

     MR. GIBBS:  No, I -- look, I can get you a little bit longer fact-pattern on this.  I think that -- I think our commitment to the universal principles that the President has talked about throughout this process, and in countries not just in Egypt and not just in the region but around the world, I think are best exemplified by what he said standing in Cairo, saying many of the things you’ve heard him say over the past several days.

     Obviously, we are watching the situation and will, as, I think, members have testified just in the last day or so up at -- up on Capitol Hill, tailor our assistance to a changing situation.

     Q    Okay.  And lastly, Egypt has been a tremendous ally to the United States, according to the government, on the issue of counterterrorism.  Where are you concerned that there might not be as much support in the next government, whoever it is?  What areas --

     MR. GIBBS:  Well, I will say this, Jake, let me -- obviously, we’re going to watch the events, as you and many others will, in the days and months ahead.  I can say that our -- the important relationships that we have at different levels in our government with their government, I think the President was assured continue, and particularly the one you mentioned.

     Q    Thank you, Robert.  And all the best in your next endeavor.  Can you talk to us about the role that the Vice President played in what ended up happening in Egypt?  I know he sent a strongly worded letter to his counterpart, Mr. Suleiman, a few days ago.  Can you describe his role --

     MR. GIBBS:  Well, I think that -- yes, I mean, look, I think the Vice President has -- we talked about it in here, there’s a -- he had a counterpart-to-counterpart relationship with Vice President Suleiman, and has on a number of occasions spoken directly with him and, quite honestly, Dan, reiterated largely the very same set of points that you’ve heard us make public, and that is the genuine steps that needed to be taken to address the concerns that those in Tahrir Square and throughout the country have had.  I think he has -- he’s been on the phone fairly regularly.  I think -- obviously he has brought to meetings in the Situation Room and in the Oval Office, like last evening, quite a bit of knowledge and experience in foreign affairs and foreign policy that have helped guide the administration along the last 18 days or so.

     Q    Was that phone call, though, that we got the readout with some of the demands, was that a pivotal moment in this crisis?

     MR. GIBBS:  Well, look, I think that -- I think that there -- it’s probably hard to go back and pinpoint all of them, but I would say that it was -- hard to, I think, be any clearer and more blunt than the Vice President was on that call about the steps that we, that the international community and, most importantly, the people of Egypt needed to see happen.  And I think that -- I think that certainly helped move this process along.

     Q    Yesterday when the President made his comments on Egypt at the top of his remarks in Michigan, was the White House at that time fairly optimistic that Mr. Mubarak was going to step down yesterday?

     MR. GIBBS:  Well, as I said, Dan, I said earlier in this briefing, I think many of the same contacts that we had are many of the same contacts that your network and many others in this room had in reporting what might happen in Egypt yesterday.  I think the President talked about historic transformations, which we’ve seen, quite frankly, play out each and every day in the last 18 [days].

     But I think what's important now is we have to look forward and work -- help all work through a process to get us to the free and fair elections that so many have spent time yearning for.

     Q    And finally, just to follow up on what Ben was asking, I’m not sure I heard an answer to this notion of concern from the White House as to what happens between now and the elections in September.  Is there concern about what the leadership structure will be like, what could potentially happen before the people of Egypt start voting in September?

     MR. GIBBS:  Well, again, I think that -- I don't think we have to fear democracy.  I don't -- I think the international community has, and again I think most importantly the people have, laid out a series of steps that they need to see taken.  But I think it’s important, Dan, to understand that this was a group of demonstrations and protests that were -- that demonstrated the breadth of concern across Egyptian society.

     Again, I don't think you can look at it and say this was the group that did this, or these are the people that -- again, what you’ve seen is mothers and daughters.  You’ve seen this process in some ways led by somebody that works for, as I said a couple of days ago, one of the larger companies in Silicon Valley.

     So I think this is -- what you’ve seen is the breadth of cause and concern that had to have been addressed and needed to be addressed by the government, and I think today was the very first step in that process.

     Chip.

     Q    Thank you, Robert, and congratulations.

     MR. GIBBS:  Thank you.

     Q    I hope it was as good for you as it was for us.  (Laughter.)

     MR. GIBBS:  He’s trying to date me and I’m not going to do it.  (Laughter.) 

     Q    You said that obviously there are going to be some bumps in the road and that the military needs to lay out a clear path.  What is going to be the role of the President, the Vice President, the Secretary of State, publicly over the next weeks and months?  Do they now pull back and say, okay, this really is up to the Egyptian people now and we’re not going to intervene?  Or do they keep up the public pressure with statements and --

     MR. GIBBS:  I think again, first and foremost, this was always about the people of Egypt.  This always was going to be solved by the people of Egypt.  No statement here, no comment that was made here, was going to, I think, bring the fundamental change that people were looking for in Egypt.  We talked about it a lot in here.  I think the people of Egypt -- again, they have their concerns and they’re not going to be -- the definition of how to solve those concerns is not going to be solved here.

     But again, I think we will continue to try to play a constructive role in helping this process along.  But, again, I think this is -- this started with the Egyptian people, and it will end with the Egyptian people.

     Q    But do you think the President, Vice President, Secretary of State will be as publicly out there in pressing the military?

     MR. GIBBS:  Well, I mean, again, I think this is -- I think what we’ve seen -- well, I think at every step along this way we have been very clear about the response -- and you heard the President discuss it today -- about violence.  And I think it’s remarkable.  What we’ve seen in the past 18 days, in terms of the type of sweeping change, is unlike anything we’ve ever seen in a short period of time.  And I think the next process of this is going to play out over a much longer arc.

     We will continue to be involved and to ensure that the transitional government in Egypt and ultimately the government that the people choose to represent the people of Egypt, if they take the steps that are necessary to meet the concerns of those in Egypt, then this government will be a strong partner to it and to all of our friends in the region.

     Q    Why exactly did the President choose not to call a foreign leader, either Egyptian leaders or other leaders in the region, over the last day or two?

     MR. GIBBS:  Well, I -- let me go back and see if there's any been yesterday -- he has not talked to anybody today.

     Q    Why?

     MR. GIBBS:  I think we have -- I think we are watching events and monitoring them.  And I don't doubt in the days ahead that the President will reach out to those.  But this is an Egyptian story today.

     Q    And the last question, is there a hope in the White House that the example in Egypt could inspire another uprising in Iran?

     MR. GIBBS:  Well, as I mentioned earlier, I think there is quite a contrast between the way the government of Egypt and the people of Egypt are interacting, and the government of Iran is threatening its very own people.  I think if the government of Iran was as confident as they would have you believe in the statements that they put out, they would have nothing to fear with the peaceful demonstration like those that you’ve seen in Cairo and throughout Egypt.

     They’re not that confident.  They’re scared.  That's why they’ve threatened to kill anybody that tries to do this.  That's why they’ve shut off all measure of communication.  I think it speaks volumes about the strength and the confidence that they have in fulfilling the wishes and the will of its people.

     Mike.

     Q    Robert, do you have any sense if the images coming from Egypt are somehow getting into Iran?  We’ve heard the Vice President and now you talk about Iran.  I’m wondering if the administration thinks there's a chance that the message is getting in somehow to Iran.

     MR. GIBBS:  Well, look, I think we have all seen reports that -- over the past many days that there -- those in Iran have and want to march and demonstrate peacefully.  The government of Iran, again, has met those -- the concerns of its people with threatening to kill them.  Again, I think it speaks volumes as to what -- it speaks volumes to the grip that they have, or lack thereof, on the popular beliefs of their own people.

     Q    Can you talk about Vice President Suleiman’s role at this point?  Is he still in a key role, or is he on his way out as well?

     MR. GIBBS:  Mike, I think that is a question for the transitional government in Egypt.

     Q    Talk a little bit, if you don’t mind, about the communications challenge with this event unfolding halfway around the globe, trying not to get ahead of the message.  How challenging was that?

     MR. GIBBS:  Well, look, as I said earlier, I -- we have -- there are a lot of different audiences, there’s a lot of different equities.  We -- and I think the bottom line was, as I said, this was -- this started in and it will be solved by the people of Egypt.  We spoke throughout this process about the universal values that went into the creation of our country and what those marching thought needed to go into the creation of their new government. 

     I think -- I don’t think there’s any doubt it has been challenging and there have -- not in quite some time have we had probably one topic take up so much space inside of here over the past 18 days like it has.  But there’s no doubt it is, and it’s a -- was a challenging topic for us to discuss.  But I don’t -- and I think as the President said, there will be challenging days ahead for those in Egypt to construct what their country will look like in the months and years ahead.

     Q    Do you mind giving out your personal email address so we can keep in touch?

     MR. GIBBS:  Marissa has it.  I probably shouldn’t say it on TV.  (Laughter.) 

     Q    You don’t want the American people to have it?

     MR. GIBBS:  J-a-y -- (laughter.)  I’m kidding.  (Laughter.) 

     Q    Everything’s been said before, I guess just everyone hadn’t said it yet, right?  Let me ask you --

     MR. GIBBS:  And that’s sort of -- that’s the --

     Q    Isn’t that the way this works?

     MR. GIBBS:  -- that’s the thematic of the briefing, isn’t it?

     Q    Sometimes it is.  Was it a bigger -- the events of yesterday or the events of today the bigger surprise to you guys and to the President?

     MR. GIBBS:  Well, again, I think everyone was surprised at -- a bit at yesterday.  Again, I -- we -- I think you can go look at my transcript from yesterday.  I was on the cautious side because I think it was clear that things were happening, as they have over the course of 18 days, very quickly. 

     Again, it is remarkable to stand here or to sit there or anywhere in our country and watch what’s happened over the span of that 18 days.  It is a remarkable arc in human history.  But, again, I think many people were surprised at yesterday.

     Q    How much -- is there a sense of relief in the administration, versus trepidation?

     MR. GIBBS:  Well, look, I think that -- as I said a minute ago, I don't think we have to fear democracy.  I don't -- I think that whenever the will of the people shapes the demands of those that govern it, that's what many had in mind with democracy and representation.  So I think that's an important step.  And again, this is about Egypt and about its people.

     Q    Does this change Middle East policy for the United States from here on out?  Just what happened in Egypt, what could happen elsewhere, is it fair to say that this is going to change America’s foreign policy in the Middle East over the long term?

     MR. GIBBS:  Well, look, again, I don't -- we don't know the ultimate outcome of what free and fair elections will be.  We don't have a sense of who that next leader will be, but -- we don't know that person’s exact identity, I should say.

     But I think that we will continue to have important relationships.  This is a volatile region of the world.  The relationships -- the bilateral that we have -- bring some measure of stability and peace to the region.

     Obviously, there’s still great work to do to bring peace throughout this region, and the President has worked tirelessly with the team on that.  But -- and I think, again, there will be many days ahead to see what comes next here.  But I also think it’s important, we will continue to talk about -- as we have -- as we did with the Egyptian government -- of the universal values that we hold dear.

     Q    On Iran, I just want to follow up on that.  Obviously, you guys made a decision to do something -- on those, the Vice President’s comments, you read from specific -- what appears to be things that you wanted to say about it --

     MR. GIBBS:  I wanted to get the Revolutionary Guard senior commander quote correct.

     Q    You guys have always walked this line with Iran, even the last time when there were protesters, that you don't want to look like America is interfering, that you’ve always feared that.  So I guess talk about that line today.

     MR. GIBBS:  Well, I don't -- look, we’re not interfering.  This is -- remember, this started with the government of Iran discussing what was happening in Egypt.  And I think probably a week or 10 days ago, I think I said to Stephen Collinson in question that if that's what they believe, then they wouldn’t have any problem letting their people demonstrate about the concerns that they have.

     Now we know they didn't really mean that.  Now we know that what they really are scared of is exactly what might happen.  They're scared of that, and they're threatening those that might do it with death.  It’s a strange -- to say the least -- reaction to a government and a military that -- governments and militaries are pledged to protect their citizens.  And it is clear that the government of Iran is quite scared of theirs.

     Q    I feel like I should give you an opportunity to talk about Cam Newton’s pro day yesterday.  You did bring plenty of college football to the room.

     MR. GIBBS:  Auburn will be -- Auburn will be here in mid-April, and I will be back.  (Laughter.)

     Q    Following up on Chuck’s last question, second to last question --

     Q    On the Cam Newton?  (Laughter.)

     MR. GIBBS:  They go together, don’t they?

     Q    With the benefit of hindsight, are there any regrets that the administration didn't do more to support the revolution in Iran at the time and boost it?

     MR. GIBBS:  No, I think you -- I think what we said then is true now.  And I think we -- again, we supported universal rights, and we support the ability for those to exercise them.  And I think it’s up to the government of Iran to allow that to happen.

     Q    So it was handled --

     MR. GIBBS:  Again, I -- I think there’s -- as we’ve talked about in here, there’s different degrees of development in each society. 

     Q    And on a different subject, because I do think we’re maybe getting to the end of the possible Egypt questions, but I’m sure there are -- others will be more creative --

     MR. GIBBS:  You seem hopeful, Laura.  (Laughter.)

     Q    On the budget, do you think that what you put forth on spending cuts will be enough to be credible in the eyes that the bar that Republicans have set for cuts to federal spending?  And do you think you can have a credible budget without taking on entitlements?

     MR. GIBBS:  Well, I think it’s important -- I think if you go back and see what I said about the budget yesterday and the day before, I think it’s important that we not just talk about cuts, but we talk about its -- their impact on the deficit.  And I make that point because I think the seriousness with which anybody approaches this has to be taken in some totality, right?

     We’re going to have a debate for a number of years -- for a number of the next two years about tax cuts for those who make above $250,000.  We have had a debate that takes us back to the debates of the last two years about whether or not we should repeal health care.

     We know the impact of both of those is to add far more than anybody pledges to reducing cuts to the deficit.  So I think that what the President will put forward on Monday will be a -- will certainly meet the measure of credibility:  a spending -- a five-year spending freeze that results in a 10-year reduction of about $400 billion, and the smallest percentage of government spending in relation to size of the economy since Eisenhower was President.

     I think the President, though, has been clear that there’s more that we have to do.  And I think that will be part of the conversation over the next many years.

     Peter.

     Q    I bet you're going to be following every facet of that budget process over the next few weeks.  (Laughter.)

     MR. GIBBS:  I will email Jay repeatedly about --

     Q    Back on Egypt, looking back at the full scope of everything that's been said, starting on January 25th when Secretary Clinton talked about the stability of the Mubarak government to what the President said today, do you think that you all have been proactive or reactive to what’s happened there over these 18 days?

     MR. GIBBS:  Peter, I think we have been -- I think we have been fairly steady in what we’ve said.  I think you can chart what the President said today and what -- from when he talked publicly about this the first time and when I talked publicly about this the first time, the measure of what we were for, the fact that this was about the people of Egypt and would be solved by them.

     Look, I don't doubt that -- there were some people, again, in the region that saw us too much on one side, and others watching the same statement saw us on too much of the other.  I think we had to -- and I think the President and his team showed steady leadership that continued to voice the concerns of those that wanted greater rights and greater opportunities. 

     Q    Is what happened today that result that the President desired?

     MR. GIBBS:  Well, I think the President and the team desired to see greater recognition of the rights that he talked about in Cairo in 2009 and that those that have marched in Cairo in 2011 have sought.  Again, I don’t think we have to fear -- I don’t think this is something we should fear.  I think this is, as I said and the President have said, that we -- those that are in government have an opportunity to represent the will of the people.  And I think that process, that long transition, has just begun in Egypt.

     Q    One more shot on Iran.  Would you like to see in Tehran -- would you like to see what happened in Cairo today happen ultimately in Tehran?

     MR. GIBBS:  I would like to see, and I think the administration would like to see, the ability of the people of Iran to voice what they’d like to see from their government.  And I think if the government of Iran didn’t fear the voices of their own people, they’d let them do that.

     Q    So you don’t want to go so far as to say you’d like to see that government overthrown?

     MR. GIBBS:  I’m comfortable with my previous answer.

     Q    Does that apply to Saudi Arabia?

     MR. GIBBS:  Again, I -- we have conversations with governments throughout the world in this region and in other regions about adhering to universal values.

     Q    Following on Karen’s question earlier, how concerned is the administration specifically about unrest spreading to Jordan?  Queen Rania has been accused of corruption.  How closely are you looking at that situation?

     MR. GIBBS:  Well, look, I mean, throughout this process we have watched -- again, we’ve watched throughout the region.  And again, I reiterate that when we have meetings with -- when we have bilateral meetings with these countries, we discuss, again, the universal values that we discussed on many occasions with the government of Egypt.

     Q    Are you particularly concerned about unrest spreading to Jordan and Syria and these other --

     MR. GIBBS:  I’m not going to get into some of those conversations.

     Q    Could you talk a little bit more about the role the administration thinks that the Egyptian military should be playing now that they’ve essentially taken over?

     MR. GIBBS:  Well, the -- look, this is -- I don’t -- I’m not going to go through each and every step of this process.  I think the President was clear in the responsibilities as a transitional government that they have.  Some of the changes that are necessary need to take place, and the important steps that have to be demonstrated and the constitutional change that we need to see, that the people of Egypt need to see, on the road to free and fair elections.  And I think they have those -- they have those obligations to that.

     Connie.

     Q    Best of luck, Robert.  Be happy.  Three housekeeping questions.  Are you going to recommend to Jay that he continue the pattern of really very heavy questions in the first two or three rows?  (Laughter.)  It’s a serious question for everybody in the back rows.

     MR. GIBBS:  Connie, would you have that question if you weren’t situated today in the middle of the second row?  (Laughter.)

     Q    It’s not my seat, but I’ve been here for 43 years.

     MR. GIBBS:  Connie, I am only moments away from not having to wade into the politics of many of the rows in this room, and I am not going to -- I know that you guys will solve all these problems together.

     Q    Two more.  Will you recommend that you have the prearranged questions, a list of questions, at press conferences?

     MR. GIBBS:  We don't have a prearranged list of questions at press conferences.

     Q    Arranged questioners, I think.

     MR. GIBBS:  Is that what she meant? 

     Q    Yes, that's what I meant.

     MR. GIBBS:  I think we bring some order to how the President calls on you guys.  We don't have -- I want to be clear, because I think your original question before Jake amended it was, does the President have a prearranged list of questions at the press conference?

     Q    He reads my mind.

     MR. GIBBS:  I’m going to leave that aside.  (Laughter.)  Again, the President does not have a prearranged list of questions at a press conference.

     Do you realize that you’re just -- Dana is just writing all this down.  (Laughter.)  He’s absorbing all of this, and this stuff just writes itself.

     Q    He had a great book, by the way.

     MR. GIBBS:  I'll have some time to read it.

     Q    I can’t remember my last question now.

     MR. GIBBS:  Jake may know.  (Laughter.) 

     Q    Prearranged question.  (Laughter.)

     Q    Who decides -- oh, yes, the last question.  Will you keep your excellent staff, press staff, on board?

     MR. GIBBS:  Keep these guys?  Absolutely.  (Laughter.)  No, no, this is very serious.  These guys -- there's no better group of -- there's no better group that I’ve ever worked with, and I’ve done this -- I took my first job in politics February 14th, 1994, paid job.  And I will walk out of here on February 13th, 2011 -- 17 years.  I have not had and not worked with a greater group of people than what I have worked with on a campaign and in this office.  And they are terrific.  Each and every day they make the President and they make all of us look good.  They are and will continue to be the backbone of the White House press operation.

     Q    Thank you.  You guys owe me one for that.

     Q    Now, this is a prearranged question -- (laughter) -- so you already know it, but for the benefit of everybody else here --

     MR. GIBBS:  I'll let you finish it just so it looks --

     Q    Just for appearances.

     MR. GIBBS:  “No.”  (Laughter.)  Oh, I didn’t, sorry.  (Laughter.)  Go ahead. 

     Q    What is your -- what is the President’s message to people in Jordan and Saudi Arabia who are looking at Egypt, saying, we want to have the same sort of nonviolent revolution; get rid of our monarchy.  Would he encourage that?

     MR. GIBBS:  Well, again, I don't think it is -- it hasn’t been during the 18 days here, and it’s not our role to make that kind of statement.  Again, I think it is important that -- we have bilateral relationships and in those meetings we say publicly and we say privately that governments throughout the world -- we just did this when the government of China was here -- have to recognize a certain level of individual and basic freedom.  And I think that has been true for this administration and previous administrations that were here before us.

     Q    Thank you, Robert.  Now that you have more time on your hands, you’ll be returning all our phone calls and emails, won’t you?  (Laughter.)  I love he does a “no comment.”

     I’m going to depart from the Egypt questions and follow on Laura’s budget questions.  The House Republicans have been very divided among themselves over how much cutting to do.  As you know, conservatives are pressing for additional cuts.  The President met with Speaker Boehner earlier this week, and I’m wondering how closely is President Obama watching this debate among Republicans?  And how concerned is he that the pressure that their party faces from the right will make it more difficult for him to reach some kind of agreement with Republicans on a budget?

     MR. GIBBS:  Well, look, I don't -- I think the President obviously is a pretty big consumer of news.  I have not heard him discuss in the past few days the articles about, as you mentioned, the pressure that House Republicans have come under from different entities in their caucus. 

     I think that -- I think out of that lunch and I think even well before that lunch we had a model in December of being able to sit down and make some important decisions for the people of this country to take some important steps like reducing our deficit that only can be done when we both seek common ground.  And I think that's what will be the end of this, is there will be some agreement. 

     I think there will be some tough decisions along the way, and you’ll see some of those tough decisions from our side in the budget.  But I think in the end you will see that the two parties have to come together.  And we have divided government.  That's the nature of any our solutions.

Q    So he’s confident that he can avert a shutdown of the sort that happened in the mid-1990s, and that you’ll --

MR. GIBBS:  I doubt that -- I think there's probably some very serious concern in the Republican caucus of not wanting to repeat that.  And I think that you’ve heard the notion of some of -- even Speaker Boehner has said we have to make some tough decisions around and some tough votes on the debt that require us all to be adult.

Yes, ma’am.

Q    Thank you, Robert.  Compliments to you and your family.

MR. GIBBS:  Thank you.

Q    Regarding the six-party talks, South Korean government had mentioned today the issue of the preconditions for resumption of the six-party talks.  And does the United States have any preconditions to rejoin six-party talks? 

     MR. GIBBS:  Well, I think what was clear in the bilateral talks that quickly broke down earlier this week between South Korea and North Korea was that North Korea genuinely lacked the seriousness to be involved in this.  And I think before we return to six-party talks, I think North Korea has to demonstrate a seriousness -- the seriousness with which they need to employ to live up to their commitments. 

     And I think it was clear, again, when talks broke down earlier this week bilaterally, that they were -- they had no real intention of entering into a constructive dialogue like this.  And I think it results in further isolation of North Korea, and they can make a conscious decision but it’s going to require that conscious decision.

     Q    What is the detail of the United States --

     MR. GIBBS:  Well, I think -- look, I think the broadest thing is they’ve got -- again, they have to show a willingness to live up to their commitments and to denuclearize.  And I -- that’s what we have said throughout this process and I think they need to demonstrate how serious they are about that.

     Yes, sir.

     Q    Thank you.  Mr. President said Egyptians have changed the world.  And so far what I am hearing about states, other oppressive states in the region, it looks like your administration has not yet adapted to this changing world.  Or could you please walk us through what is the changing world and what does your administration need for the changing world?

     MR. GIBBS:  I think I gave this -- I’ve given this answer a couple of times, but I’ll repeat it.  We spend time in public and in private with governments throughout the world -- not just in this region, but throughout the world -- on what we see -- I’m not sure what that noise is.  There we go.  Sorry.  Caren’s recorder went from recorder to player, or somebody’s did.  I thought maybe -- I thought that was in my head, but now it appeared to be -- (laughter.)

     Q    That’s why --

     MR. GIBBS:  It appeared to have been -- I felt much better when you guys recognized it as a noise too.

     Q    Is that why you’re leaving?  (Laughter.)

     Q    He’s hearing noises.

     MR. GIBBS:  I think that -- again, there are certain basic and universal rights that people yearn for throughout the world.  That’s exactly what the President talked about, and I think that’s what -- that’s the -- the responsibility of governments is to meet those rights.

     Q    But the statement came from the President and he openly said the world has changed.  So my question is, again, has any kind of policy changed so far that can we see dealing with these states?  Have you adjusted your policies yet?

     MR. GIBBS:  Well, again, I -- I’ll try it one more time.  We had these conversations directly with those -- with governments throughout the world.  Again, we mentioned what happened not too long ago with the government of China that resulted in the leader of the Chinese saying there was much work to be done.

     Ann.

     Q    You’ve worked for the President both -- while he was President and as a presidential candidate.  Do you think as we move in toward the 2012 campaign -- presumably we’ll see you again sometime during that period -- do you think he can make governmental decisions and simply leave politics out of it?  Is he the kind of person who can make governmental policy decisions without always thinking maybe in the back of his mind on his own political future?

     MR. GIBBS:  Like that brilliant auto bailout?  (Laughter.)  I mean, I will say I think most of the first couple years of our administration have been marked with decisions that you didn't need anybody to tell you weren’t hugely popular but needed to be taken.

     Q    Saw how that came out.

     MR. GIBBS:  And -- but I think part of that is because we had an election -- there’s a calendar of elections and then there’s an arc of recovery that may not perfectly align with an interim election. 

     This is a President who has, again, made a series of very tough, sometimes unpopular decisions to ensure that we didn't go from what some have called a great recession to a great depression.  And I think the President -- I think one of the things you’ll see is you’ll see a lot more of the President trying to tell the story of why we’re making these decisions.

     I think that's -- I think he said that.  That's one of the threads that we lost over the first two years was we made a series of decisions that had to be made quickly, and we forgot to tell a larger story.

     Q    Will you and others advise him to make those tough decisions even when it’s him up for reelection?

     MR. GIBBS:  We will.  I mean, I will tell you that I remember being in the final decisions around the -- what to do about the auto companies, and it is a tremendous story and people that have worked on it here have done a tremendous job.

     But even -- I remember sitting in that meeting and even with -- the notion was even if you give -- if you make some of the required management changes and give them a lifeline, it was still a 51-49 proposition.  I think it will go down as one of the best decisions we made because now you see companies that are fundamentally restructured and capable of surviving and thriving in this economy and that will only get stronger.

     Mike.

     Q    Two questions if I can.  First, can you talk about what -- how much, if at all, the recommendations from the budget commission, deficit commission, are going to be reflected in the budget that we see on Monday?

     MR. GIBBS:  That is a good question for somebody next week.  (Laughter.)

     Q    All right.  Well, then on the subject of --

     MR. GIBBS:  I should use that more often in the next few minutes.  

     Q    CPAC is happening just up the road, and a number of potential candidates are speaking there today.  Mitt Romney called the President a weak President who lacks clear direction, and Tim Pawlenty invoked the birth certificate controversy and asked what planet the President is from.  I’m wondering if you want to take a shot at responding to potential rivals of the President --

     MR. GIBBS:  I think we did pretty well Minnesota and I think the President has -- though he didn't talk about it a lot, Mitt Romney -- I think what Governor Romney did on health care was one of the decisions that Ann just alluded to that was a tough decision, but it was a series of the right decisions.  I’d be interested to see if throughout the next two years the two words “health care” come out of his mouth.

     Carol.

     Q    Can you -- I know you won’t be here, but can you give us a little week-ahead, how the President plans to --

     MR. GIBBS:  I have a week-ahead, yes.  You want to just fast-forward this whole thing, don't you?

     Q    No, no.  And then I have others.  One or two.

     MR. GIBBS:  I’ll do the week-ahead last, how about that?

     Q    The Chicago election, do you know how the President intends to vote?  Is that absentee?

     MR. GIBBS:  He has requested his absentee ballot.  The last time I checked, the First Lady had voted and the President had yet to.  I will --

     Q    But do check, because she hadn’t voted as of Tuesday.

     MR. GIBBS:  I think -- I think the last time I checked was yesterday.

     Q    Okay, so you think --

     MR. GIBBS:  So I think she voted -- she’s voted sometime in between.  I don't know whether the President has voted, but I will check on that right -- as soon as I get out here.

     Q    And then if you could --

     Q    And get back to us.

     MR. GIBBS:  Yes.

     Q    How would you -- just on your departure, how would you assess the President’s relationship with the press corps at this point in his present --

     MR. GIBBS:  Soon somebody is going to pay me a lot of money to give that assessment and I look forward to -- (laughter) -- I look forward to sharing that with them.

     Q    Thank you, Robert.

     MR. GIBBS:  April.

     Q    Hey, wait a minute.  (Laughter.) 

     MR. GIBBS:  He does that just to do that, April.  That's why -- if you can see the size of the grin on Ben’s face every single day when he does that.  I’m sorry.  I don't mean to stir the pot as I leave.

     Q    Oh, yes, you do.  (Laughter.) 

     MR. GIBBS:  Go ahead.

     Q    Thank you, Ben.  For the last time, promise me --

     MR. GIBBS:  Oh, I will get that to you.  I have not had a chance to -- (laughter.)  [Email Redacted] -- (laughter.)  No, I will -- I will try to find that out.

     Q    You promised Wednesday you were going to call me at home, and you did not.  (Laughter.) 

     MR. GIBBS:  Yes, I did.

     Q    You did, on tape.

     MR. GIBBS:  Promised I'd call you at home?

     Q    Well, you said you’d call me that night.  (Laughter.)

     MR. GIBBS:  I don't think I said that I'd call you that night.  (Laughter.) 

     Q    You said that night --

     MR. GIBBS:  April, can I --

     Q    Okay, just on the cell phone -- you said --

     MR. GIBBS:  April, there may be --

     Q    Anyway, moving on --

     MR. GIBBS:  April, can I -- I’ve got a follow-up.  Who were you talking to that promised to call you?  I will go find out whether he’s voted or not.

     Q    I know these are things that I -- I have an interest in that answer, too, so --

     Q    A lot of people do, yes.

     MR. GIBBS:  I will go find out as soon as I walk out of here. 

     Q    All right, now on the economics of Egypt, now that there is --

     MR. GIBBS:  Quite a segue.  (Laughter.) 

     Q    Now that there is a change in leadership, let’s talk about the American pocketbook and gas prices and things of that nature.  Should we expect to see some change in prices of a barrel of oil now because things have changed?  Or is there still volatility to push the price up?

     MR. GIBBS:  Look, I think inherent in the pricing of oil is some volatility.  As much as I would love to tackle a few subjects that they tell me never to talk about, I should not do that in the last briefing I have.  I will say this --

     Q    What can they do?  (Laughter.) 

     Q    Fire you?  (Laughter.)

     MR. GIBBS:  I don't want to make people rich or poor based on what I say. 

     Q    You’re not an oil expert.

     MR. GIBBS:  But on a daily basis in the deputies committee meeting that have been taking place around Egypt, we have discussed what is happening with transportation in ports of entry and in the Suez, and we continue to monitor that and do not see a disruption on that.

     Q    And lastly, congratulations on your new chapter.

     MR. GIBBS:  Thank you.

     Q    Now -- (laughter) -- Monday it’s going to be different for you.  Do you think you will be going through news and information withdrawal?

     MR. GIBBS:  No doubt.

     Q    How are you going to handle Monday when it comes?

     MR. GIBBS:  I will do that in my week ahead.  I'll show you -- (laughter.)

     Q    Thanks.  I wanted to follow up on Mitt Romney’s glaring omission in his remarks today.  Has the President been watching the CPAC coverage inbetween watching the -- okay.  (Laughter.)  And why do you think -- do you think that it’s important for Mitt Romney to talk about his health care plan, and why?  Why would that be important?

     MR. GIBBS:  I don't know why he wouldn’t.

     Q    Really?  Okay. 

     MR. GIBBS:  I don't know.

     Q    I had an Egypt one, believe it or not -- actually a couple on Egypt.  Have the -- have the Secretary Clinton and the Samantha Power camps kind of gotten together?  Are they on the same place now on -- in terms of --

     MR. GIBBS:  I’m not entirely sure what you’re speaking about.

     Q    Internal divisions on how publicly to push for change and on how much change is enough change, in terms of the Egyptian government.  Is there -- is the White House and the administration all on the same page about --

     MR. GIBBS:  Margaret, I think we’ve been all on the same page for quite some time.  Rich and Stephen and then I'll go.

     Q    No, it’s okay, it’s fine.

     Q    Robert, congratulations.  And on Egypt, I’m wondering -- you’ve been talking about, like with Jordan and Saudi Arabia, the bilateral relations, what the President says privately and publicly.  I’m wondering, though, at this moment, isn’t there more that he could be saying publicly?  Does he plan to play any sort of a greater role in terms of trying to empower the people of other countries, like the Egyptian people are now being empowered?

     MR. GIBBS:  Well, I think, again, Rich, I don't know of anything that is planned to do that.  I would point you to what he said today.  And I think what's important to remember about all of this is it didn’t start by -- we didn’t start it.  We didn’t finish it.  This is an issue for the people of Egypt and the people of countries around the world to petition their governments.

     Stephen.

     Q    The President just said now that the Egyptian people forged change through peaceful means, and not terrorism and violence.  Is the administration arguing now that expressions of popular will like this and democracy could drain a sort of swamp where -- from which extremists find their recruits?

     MR. GIBBS:  Well, I think that -- I think the line, Stephen, that you point to is one with some I think very specific meaning.  And I think if you go back to what the President said in his inaugural address by -- there are those that seek to change by building, and those that seek to change by blowing up and destroying.  And I think what we have seen in Cairo goes greatly in contrast with entities like al Qaeda that have killed people that share their belief, their religious belief, in order to scare and to terrorize.

     Q    So, in that case, is it -- will we see more of an emphasis on pushing for democracy in the Middle East in the foreign policy than we've seen --

     MR. GIBBS:  I think you’ll see the President continue to hold up the concerns of those throughout the world that seek a greater recognition.

     I'm going to do the week ahead and then I am going to go.

     Q    One more --

     Q    Robert --

     MR. GIBBS:  Let me just do the week ahead, guys.  Before I do, I'm going to give you my week ahead, April.  Are you ready?

     Q    Yes. 

     MR. GIBBS:  On Monday, the former press secretary will travel with Ethan Gibbs to school.

     Q    Awwww!

     MR. GIBBS:  In the morning he'll catch some SportsCenter and a bike ride if the weather holds up.  In the afternoon he’s hoping for a nap -- (laughter) -- before walking several hundred feet to the bus stop to greet Ethan.  Travel pool will accompany.  (Laughter.)  Fortunately for me, I do not anticipate any further public events for the remainder of the week. 

     The President, on the other hand, and you all have a very busy week.  On Monday, the President will travel to Baltimore County, Maryland -- I don't know if it’s city or not -- to speak to the students at Parkville Middle and Center of Technology.  I don't know if that's the right --

     Q    Parkville Middle and Center of Technology.

     MR. GIBBS:  I see, there’s an “and.”  Education Secretary Arne Duncan and OMB Director Jack Lew will join the President for the visit, where he will lay out key priorities in the 2012 budget and discuss the importance of investing in education to prepare our children to be competitive in the global economy.

     On Tuesday, the President will honor recipients of the 2010 Medal of Freedom in a ceremony at the White House.  The Medal of Freedom, America’s highest civilian honor, is awarded to individuals who make an especially meritorious contribution to the security or national interests of the United States, world peace, cultural, or other significant public or private endeavors.

     On Wednesday, the President will meet with state legislators at the White House.  Later the President will deliver remarks at the White House on the America’s Great Outdoors Initiative.

     On Thursday, the President will attend meetings at the White House before leaving in the afternoon to travel to the West Coast. 

     On Friday, the President will visit Intel Corporation in Hillsboro, Oregon.  While at Intel, the President will tour the world’s most advanced semiconductor manufacturing facility, as well as learn more about Intel’s science, technology, engineering and math education program.

     It has been a tremendous honor and a privilege to do this over the past little more than two years.  I wish you all good luck.  I will miss you.  I had a lot of fun.  And I hope, as we covered some very serious subjects and we watched the world change, I hope you had some fun, too.

 

     Thank you.

 

END                 4:41 P.M. EST

The White House

Office of the Press Secretary

For Immediate Release
February 11, 2011

Remarks by the President on Egypt

Grand Foyer

3:06 P.M. EST

     THE PRESIDENT:  Good afternoon, everybody.  There are very few moments in our lives where we have the privilege to witness history taking place.  This is one of those moments.  This is one of those times.  The people of Egypt have spoken, their voices have been heard, and Egypt will never be the same.

     By stepping down, President Mubarak responded to the Egyptian people’s hunger for change.  But this is not the end of Egypt’s transition.  It’s a beginning.  I’m sure there will be difficult days ahead, and many questions remain unanswered.  But I am confident that the people of Egypt can find the answers, and do so peacefully, constructively, and in the spirit of unity that has defined these last few weeks.  For Egyptians have made it clear that nothing less than genuine democracy will carry the day.

     The military has served patriotically and responsibly as a caretaker to the state, and will now have to ensure a transition that is credible in the eyes of the Egyptian people.  That means protecting the rights of Egypt’s citizens, lifting the emergency law, revising the constitution and other laws to make this change irreversible, and laying out a clear path to elections that are fair and free.  Above all, this transition must bring all of Egypt’s voices to the table.  For the spirit of peaceful protest and perseverance that the Egyptian people have shown can serve as a powerful wind at the back of this change.

     The United States will continue to be a friend and partner to Egypt.  We stand ready to provide whatever assistance is necessary -- and asked for -- to pursue a credible transition to a democracy.  I’m also confident that the same ingenuity and entrepreneurial spirit that the young people of Egypt have shown in recent days can be harnessed to create new opportunity -- jobs and businesses that allow the extraordinary potential of this generation to take flight.  And I know that a democratic Egypt can advance its role of responsible leadership not only in the region but around the world.

     Egypt has played a pivotal role in human history for over 6,000 years.  But over the last few weeks, the wheel of history turned at a blinding pace as the Egyptian people demanded their universal rights.

     We saw mothers and fathers carrying their children on their shoulders to show them what true freedom might look like.

     We saw a young Egyptian say, “For the first time in my life, I really count.  My voice is heard.  Even though I’m only one person, this is the way real democracy works.”

     We saw protesters chant “Selmiyya, selmiyya” -- “We are peaceful” -- again and again.

     We saw a military that would not fire bullets at the people they were sworn to protect.

     And we saw doctors and nurses rushing into the streets to care for those who were wounded, volunteers checking protesters to ensure that they were unarmed.

     We saw people of faith praying together and chanting – “Muslims, Christians, We are one.”  And though we know that the strains between faiths still divide too many in this world and no single event will close that chasm immediately, these scenes remind us that we need not be defined by our differences.  We can be defined by the common humanity that we share.

     And above all, we saw a new generation emerge -- a generation that uses their own creativity and talent and technology to call for a government that represented their hopes and not their fears; a government that is responsive to their boundless aspirations.  One Egyptian put it simply:  Most people have discovered in the last few days…that they are worth something, and this cannot be taken away from them anymore, ever.

     This is the power of human dignity, and it can never be denied.  Egyptians have inspired us, and they’ve done so by putting the lie to the idea that justice is best gained through violence.  For in Egypt, it was the moral force of nonviolence -- not terrorism, not mindless killing -- but nonviolence, moral force that bent the arc of history toward justice once more.
    
     And while the sights and sounds that we heard were entirely Egyptian, we can’t help but hear the echoes of history -- echoes from Germans tearing down a wall, Indonesian students taking to the streets, Gandhi leading his people down the path of justice.

     As Martin Luther King said in celebrating the birth of a new nation in Ghana while trying to perfect his own, “There is something in the soul that cries out for freedom.”  Those were the cries that came from Tahrir Square, and the entire world has taken note.

     Today belongs to the people of Egypt, and the American people are moved by these scenes in Cairo and across Egypt because of who we are as a people and the kind of world that we want our children to grow up in.

     The word Tahrir means liberation.  It is a word that speaks to that something in our souls that cries out for freedom.  And forevermore it will remind us of the Egyptian people -- of what they did, of the things that they stood for, and how they changed their country, and in doing so changed the world.

     Thank you.
             
                       END            3:13 P.M. EST

The White House

Office of the Press Secretary

For Immediate Release
February 10, 2011

Remarks by the President on the National Wireless Initiative in Marquette, Michigan

Northern Michigan University
Marquette, Michigan


1:36 P.M EST
 
     THE PRESIDENT:  Have a seat, have a seat.  It is wonderful to be here in the Upper Peninsula with so many Yoopers.  (Applause.)  How many of you are Green Bay fans, too?  (Applause.)  I’ve been seeing too many Green Bay fans lately.  (Laughter.)
 
It is great to be here.  It is great to be at Northern Michigan University.  We’ve got some wonderful guests here that I just want to mention.  First of all, somebody who is as good a public servant, not just good at what he does but good at heart and works tirelessly on behalf of the entire state, your senior senator, Carl Levin, is here.  (Applause.)  Now, his partner in the Senate could not be here because she’s actually leading a Democratic caucus retreat, but she’s been fighting for manufacturing, for broadband, for a lot of things that we’re talking about here today.  So I just want to acknowledge Debbie Stabenow, who deeply cares about the work that you do up here.  (Applause.)
 
I want to thank the great hospitality of Mayor John Kivela, who has been showing me around town.  Thank you so much, Mayor Kivela.  (Applause.)  The President of Northern Michigan University, Dr. Les Wong, is here.  (Applause.)  And all of you are here.  (Laughter.)  And you guys are pretty special.  Absolutely.  
 
Before I begin, I just want to say that we are following today’s events in Egypt very closely.  And we’ll have more to say as this plays out.  But what is absolutely clear is that we are witnessing history unfold.  It’s a moment of transformation that’s taking place because the people of Egypt are calling for change.  And they’ve turned out in extraordinary numbers representing all ages and all walks of life, but it’s young people who’ve been at the forefront -- a new generation, your generation, who want their voices to be heard.  And so going forward, we want those young people and we want all Egyptians to know America will continue to do everything that we can to support an orderly and genuine transition to democracy in Egypt.
 
     Now, as we watch what’s taking place, we’re also reminded that we live in an interconnected world.  What happens across the globe has an impact on each and every one of us.  And that’s why I’ve come to Marquette today -- not only because it’s beautiful, and the people are really nice -- which is true.  (Applause.)  But I’ve come here because in the 21st century, it’s not just the big cities where change is happening.  It’s also in towns like this where the jobs and businesses of tomorrow will take root, and where young and talented Americans can lead.  It’s towns like this where our economic future will be won.  
 
Now, in the short term, the best thing we can do to speed up economic growth is to make sure families and businesses have more money to spend, and that’s exactly what -- got a little applause there.  (Laughter.)  That’s exactly why we passed those tax cuts in December.  That’s what it’s doing.  Because Democrats and Republicans came together, Americans’ paychecks will be a little bigger this year and businesses will be able to write off their investments and companies will grow and they’ll add workers.  But we’ve got more to do.  
 
Our measure of success has to be whether every American who wants a job can find a job; whether this country is still the place where you can make it if you try.  In a world that’s more connected and more competitive, other nations look at this moment as their moment, their turn to win the jobs and industries of our time.  I see things differently.  I see this as America’s moment to win the future, so that the 21st century is the American century just like the 20th century was.  (Applause.)  Yes we can.  (Applause.)  
 
But to do this, we’re going to have to up our game, Marquette.  We got to up our game.  To attract the best jobs, the newest industries, we’re going to have to out-innovate, out-educate, out-build.  We’re going to have to out-hustle the rest of the world.  (Applause.)  That means investing in cutting-edge research and technology, like the new advanced battery manufacturing industry that’s taking root right here in the state of Michigan.  It means investing in the skills and training of our people, just like it’s taking place at this university.  It means investing in transportation and communications networks that move goods and information as fast as possible.
 
And to make room for these investments, we’re going to have to cut whatever spending we can do without.  We’ve got a real issue with debts and deficit, and so we’ve got to live within our means.  And that means that we’ve got to cut out things that aren’t adding to growth and opportunity in order to invest in those things that are.
 
     And that’s why I’ve proposed that we freeze annual domestic spending for the next five years.  That will reduce the deficit by more than $400 billion over the next decade.  It will bring spending to the lowest share of our economy since Eisenhower was President.  That’s a long time ago.  Even I wasn’t born then.  (Laughter.)
 
So government has to do what American families do every day: live within our means.  But even as we do so, we can’t sacrifice our future.  I’ll just give you guys an analogy.  If you’re trying to cut back in your family, you might decide, we’re not going to go out to dinner so often; maybe we’ll skip the vacation; we’re not going to remodel the kitchen.  But you wouldn’t stop saving for your child’s college education.  You wouldn’t stop saving for your own retirement.  If your boiler was broken or your roof had a leak, you’d still go ahead and make those investments.  
 
Well, the same is true with our country.  We’ve got to cut out the equivalence of eating out and vacations.  I know there may be some restaurant owners here -- go eat at their restaurants -- (laughter) -- but I’m just making a general point.  Even as we cut out the things we can afford to do without, we got a responsibility to invest in those areas that will have the biggest impact on our future, and those things are innovation, education and infrastructure.  
 
And that last area –- infrastructure -– is why I’ve come here today.  Connecting a country of our size has never been easy.  Just imagine what Americans experienced when they fanned out from 13 colonies to settle a continent.  If you wanted to get from one coast to the other, it would take you months; it would cost you a small fortune.  If you settled in the heartland, you were an island, with no real market to sell your goods or buy what you needed.  You might have to wait until the traders came by before you stocked up.
 
So we decided to build a railroad to span a continent -– one that would blast through mountains of granite and use thousands of miles of steel, and put to work an army of citizens and immigrants to work.  It was an endeavor that would also require support of our government.  It didn’t just happen on its own.  As General William T. Sherman said, “Uncle Sam is the only giant I know who can grapple the subject.”
 
So even as President Lincoln tried to hold the North and South together, he was determined to see this railroad unite East and West.  And private companies joined the charge, racing one another to meet in the middle.  And eventually, a telephone operator -- a telegraph operator sent out a simple message to the cheers of a waiting nation.  The telegraph just said: “Done.”  Done.  Now, if he knew that we were still talking about it today, he might have come up with something more inspiring.  (Laughter.)
 
But overnight, the transcontinental railroad laid the way for a nationwide economy, not a bunch of local economies, but a nationwide economy.  Suddenly, a cross-country trip was cut from months to days.  The cost to move goods and mail plummeted.  Cowboys drove cattle to railcars that whisked them back East.  Entrepreneurs could sell anything, anywhere.  
 
After the railroad was completed, a newspaper proclaimed: “We are the youngest of peoples.  But we are teaching the world to march forward.”  Teaching the world to march forward.  
 
That’s who we are.  We are a nation that has always been built to compete.  And that’s why, decades later, FDR set up the Rural Electrification Administration to help bring power to vast swaths of America that were still in darkness.  Companies said that building lines to rural areas would be too costly.  I mean, big cities already had electricity.  But they said, it’s too costly to go out into remote areas.  It’s too costly to come up into the Upper Peninsula.  
 
So Americans in these towns went without refrigeration or running water.  If you wanted a glimpse of the larger world, your town might run a movie off a small diesel engine.  It might not even last the full film.  
 
Once power lines were laid down, electricity flowed to farms across the country, transforming millions of lives.  There’s a well-known story of a Texas family returning home the first night their farmhouse was hooked up, and a woman thought it was on fire.  And her daughter said, “No, Mama, the lights are on.”  Think about that.  That wasn’t that long ago, and government was there to help make sure that everybody -- everybody, not just some -- but everybody -- not just those who folks could make an immediate profit off of -- but everybody had access to electricity.
 
So years later, as our nation grew by leaps and bounds, we realized that a patchwork system of back roads and dirt paths couldn’t handle the biggest economy in the world.  So President Eisenhower helped make it possible to build an Interstate Highway System, and that, too, transformed the nation -- as much as the railways had.
 
And finally, we could ship goods and services to places that the railroads didn’t reach.  It meant that we could live apart from where we worked.  We could travel.  We could see America.
 
Each of these achievements -- none of them just happened.  We chose to do them.  We chose to do big things.  And every American benefited -– not just from new conveniences.  Not just from the jobs created by laying down new lines or tracks or pavement.  We benefited enormously from new economic growth -– from the scores of businesses that opened near each town’s new train station, or new power line, or new off-ramp.
 
So this is a new century, and we can’t expect tomorrow’s economy to take root using yesterday’s infrastructure.  We got to think about what’s the next thing, what’s the next big thing, and make sure that we’re at the forefront -- just like we were in the last century.
 
Today, new companies are going to seek out the fastest, most reliable ways to move people, goods and information, whether they are in Shanghai or in Chicago.  So if we want new jobs and businesses here in America, we’ve got to have the best transportation system and the best communication network in the world.  It’s like that movie, Field of Dreams:  If we build it, they will come.  (Laughter.)  But we’ve got to build it.  We’ve got to build it.
 
     Over the last two years, we’ve begun rebuilding for the 21st century.  This is a national project that has meant thousands of jobs for the hard-hit construction industry.  And I’ve now proposed redoubling these efforts.  We want to put more Americans to work repairing crumbling bridges and roads.  Within 25 years, our goal is to have 80 percent of Americans with access to high-speed rail, which could allow you to go to places in half the time it takes by car.  Within five years, we want to make it possible for businesses to put high-speed wireless services in reach of virtually every American.
 
     And that last part, high-speed wireless, is why I chose to come to Northern Michigan University today.  (Applause.)  Now let me give you some context.  Today, more than 90 percent of homes in South Korea subscribe to high-speed broadband.  They just have better networks than we do.  In America, the nation that created the Internet -- by the way, because of government investment; it didn’t just happen by itself magically -- because of government R&D, we created the Internet, but yet only 65 percent of households here in America can say the same.  When it comes to high-speed Internet, the lights are still off in one-third of our households.  One out of every three households in America don’t have that same access.  For millions of Americans, the railway hasn’t showed up yet.
 
For our families and our businesses, high-speed wireless service, that’s the next train station; it’s the next off-ramp.  It’s how we’ll spark new innovation, new investment, new jobs.  
 
And you know this here in Northern Michigan.  That’s why I showed up, in addition to it being pretty and people being nice.  (Laughter and applause.)  For decades now, this university has given a new laptop to every incoming student.  Wi-Fi stretched across campus.  But if you lived off-campus, like most students and teachers here, you were largely out of luck.  Broadband was often too expensive to afford.  And if you lived a bit further out of town, you were completely out of luck, because broadband providers, they often won’t build networks where it’s not profitable, just like they wouldn’t build electrical lines where it wasn’t profitable.
 
So this university tried something new.  You partnered with various companies to build a high-speed, next-generation wireless network.  And you managed to install it with six people in only four days without raising tuition.  Good job.  Good job, Mr. President.  (Applause.)  By the way, if you give me the name of these six people -- (laughter) -- there’s a whole bunch of stuff in Washington I’d like to see done in four days with six people.  (Laughter.)  
 
So today, this is one of America’s most connected universities, and enrollment is near the highest it’s been in 30 years.
 
And what’s more -- and this is what makes this special -- you told nearby towns that if they allowed you to retrofit their towers with new equipment to expand your network, then their schools, their first responders, their city governments could use it too.  And as a result, police officers can access crime databases in their cars.  And firefighters can download blueprints on the way to a burning building.  And public works officials can save money by monitoring pumps and equipment remotely.  
 
And you’ve created new online learning opportunities for K-12 students as far as 30 miles away, some of whom -- (applause) -- some of whom can’t always make it to school in a place that averages 200 inches of snow a year.  (Laughter and applause.)  Now, some of these students don’t appreciate the end of school [snow] days.  I know Malia and Sasha get really excited about school [snow] days.  Of course, in Washington things shut down when there’s an inch of snow.  (Laughter.)  But this technology is giving them more opportunity.  It’s good for their education, it’s good for our economy.  In fact, I just came from a demonstration of online learning in action.  We were with Professor Lubig and he had plugged in Negaunee High School -- (applause) -- and Powell Township School in Big Bay.  (Applause.)  So I felt like the guy in Star Trek.  I was being beamed around -- (laughter) -- across the Upper Peninsula here.  But it was remarkable to see the possibilities for these young people who are able to, let’s say, do a chemistry experiment, and they can compare the results with kids in Boston.
 
     Or if there’s some learning tool or material they don’t have immediately accessible in their school, they can connect here to the university, and they’re able to tap into it.  
 
     It’s opening up an entire world to them.  And one of the young people who I was talking to, he talked about foreign policy and what we were seeing in places like Egyptian.  And he said, what’s amazing especially for us is that now we have a window to the entire world, and we can start understanding other cultures and other places in ways that we could never do without this technology.
 
     For local businesses, broadband access is helping them grow and prosper and compete in a global economy.  In fact, Marquette has been rated one of the top five “eCities” in Michigan for entrepreneurship.  (Applause.)  That’s right.
 
So here’s a great example, Getz’s Clothiers.  (Applause.)  The Getzes are here.  Where are the Getzes?  They’re around here somewhere.  There they are right there.  
 
 
This is a third-generation, family-owned, Marquette institution.  They’ve occupied the same downtown store for more than a century -– but with the help of broadband, they were recently listed as one of America’s 5,000 fastest-growing companies.  Now how did they pull that off?  (Applause.)  
 
Obviously they’ve got great products, great service.  But what’s also true is online sales now make up more than two-thirds of their annual revenue.  Think about that.  You got a downtown department store; now two-thirds of its sales are online.  It can process more than 1,000 orders a day, and its workforce has more than doubled.   So you’ve got a local business with a global footprint because of technology.
 
Now, if you can do this in snowy U.P. -- (laughter) -- we can do it all across America.  In fact, many places already are.  So in Wagner, South Dakota, patients can receive high-quality, lifesaving medical care from a Sioux Falls specialist who can monitor their EKG and listen to their breathing -- from 100 miles away.  In Ten Sleep, Wyoming -- I love the name of that town, Ten Sleep -- it’s a town in Wyoming of 300 people.  A fiber-optic network allowed a company to employ several hundred teachers who teach English to students in Asia over the Internet, 24 hours a day.  You’ve all heard about outsourcing.  Well, this is “insourcing” -- where overseas work is done right here in the United States of America.  (Applause.)
 
     So we want to multiply these stories -- we want to multiply your story -- all over the country.  We want to invest in the next generation of high-speed wireless coverage for 98 percent of Americans.
 
     This isn’t just about faster Internet or being able to find a friend on Facebook.  It’s about connecting every corner of America to the digital age.  It’s about a rural community in Iowa or Alabama where farmers can monitor weather across the state and market across the globe.  It’s about an entrepreneur on Main Street with a great idea she hopes to sell to the big city.  It’s about every young person who no longer has to leave his hometown to seek new opportunity -- because opportunity is right there at his or her fingertips.  (Applause.)  
 
So to make this happen, we’re going to invest in research and development of emerging technologies and applications.  We’re going to accelerate breakthroughs in health and education and transportation, and deploy a new nationwide, interoperable wireless network for first responders -– making sure they’ve got the funding and the frequencies that they were promised and that they need to keep us safe.  (Applause.)  It’s important.  By selling private companies the rights to these airwaves, we won’t just encourage private investment and expand wireless access; we’re actually going to bring in revenues that lower our deficits.
 
Now, access to high-speed Internet by itself won’t make a business more successful, or a student smarter, or a citizen more informed.  That takes hard work.  It takes those late nights.  It takes hustle.  It takes that quintessentially American drive to be the best.  That’s what’s the most important ingredient for our success.  
 
But we’ve always believed that we have a responsibility to guarantee all our people every tool necessary for them to meet their full potential.  So if they’re willing to work hard, they can succeed.  And in a 21st-century economy, that has never been more important.  Every American deserves access to the world’s information.  Every American deserves access to the global economy.  We have promised this for 15 years.  It’s time we delivered on that promise.  (Applause.)  It’s time we delivered on that promise.  
 
So connecting our people.  Competing with the rest of the world.  Living within our means without sacrificing what’s required to win the future.  We can do all this because we’ve done it before.
 
In 1960, at the height of his presidential campaign, JFK came to Michigan.  And it was a moment similar to this one. Other nations were doing their best to try to take our place at the top.  And here in Michigan, he made it clear that if we wanted to keep from being knocked off our perch, there could only be one goal for the United States.  It could be summed up in one word: “first.”  First.  
 
“I do not mean first, but,” he said.  “I don’t mean first, when.  I don’t mean first, if.  I mean first -– period.”  And “The real question now,” he continued, “The real question,” he continued, “is whether we’re up to the task –- whether each and every one of us is willing to face the facts, to bear the burdens, to provide the risks, and to meet our dangers.”  That was 50 years ago.  But things haven’t changed in terms of what’s required to succeed.  
 
And we were up to the task then.  I believe we’re up to the task today.  Time and again, whether westward or skyward, with each rail and road that we’ve laid, in every community, we’ve connected with our own science and imagination, and we forged anew our faith that we can do anything.  We do big things.  That’s who we are.  And that’s who we’re going to have to be again -– a young nation that teaches the world to march forward.
 
That’s what you’re doing up here in U.P.  That’s what you’re doing here at Northern Michigan University.  That’s what we’re all going to do together in the months and years to come.  
 
Thank you.  God bless you.  God bless the United States of America.  (Applause.)
 
END

2:07 P.M. EST

The White House

Office of the Press Secretary

For Immediate Release
February 07, 2011

Remarks by the President to the Chamber of Commerce

U.S. Chamber of Commerce Headquarters, Washington, D.C.

11:30 A.M. EST

      THE PRESIDENT:  Thank you very much.  Please, have a seat.  Thank you very much, Tom, for the gracious introduction.  I want to make a few other acknowledgments.  To Tom Bell, the Chamber Board President, thank you for helping to organize this.  There are some members of my administration I want to make sure are introduced.  My Chief of Staff, Bill Daley, is here.  (Applause.)  Senior advisor Valerie Jarrett, who is interfacing with many of you and has gotten terrific advice from many of you, is here as well.  Secretary Ray LaHood, our Transportation Secretary.  Ambassador Ron Kirk, who is working hard to get trade deals around the world.  Our Small Business Administration Administrator Karen Mills.  My director of the National Economic Council, Gene Sperling, is here.  And I also want to make mention, Fred Hochberg, our Export-Import Bank Chairman; Elizabeth Littlefield, the Overseas Private Investment Corporation President.  And I also want to acknowledge a good friend, Paul Volcker, the outgoing chair of the President’s Economic Recovery Advisory Board.  Thank you all for being here.  (Applause.)

      Now, Tom, it is good to be here today at the Chamber of Commerce.  I’m here in the interest of being more neighborly.  (Laughter.)  I strolled over from across the street, and look, maybe if we had brought over a fruitcake when I first moved in, we would have gotten off to a better start.  (Laughter.)  But I’m going to make up for it.

      The truth is, this isn’t the first time I’ve been to the Chamber, or the first time that we’ve exchanged ideas.  Over the last two years, I’ve sought advice from many of you as we were grappling with the worst recession most of us have ever known.  It’s a recession that led to some very difficult decisions.  For many of you, that meant restructuring and branch closings and layoffs that I know were very painful to make.  For my administration, it meant a series of emergency measures that I would not have undertaken under normal circumstances, but that were necessary to stop our economy from falling off a cliff.

      Now, on some issues, like the Recovery Act, we’ve found common cause.  On other issues, we’ve had some pretty strong disagreements.  But I’m here today because I am convinced, as Tom mentioned in his introduction, that we can and we must work together.  Whatever differences we may have, I know that all of us share a deep, abiding belief in this country, a belief in our people, a belief in the principles that have made America’s economy the envy of the world.

      America’s success didn’t happen overnight, and it didn’t happen by accident.  It happened because [of] the freedom that has allowed good ideas to flourish, that has allowed capitalism to thrive; it happened because of the conviction that in this country hard work should be rewarded and that opportunity should be there for anybody who’s willing to reach for it.  And because it happened at every juncture in our history -- not just once, not just twice, but over and over again -- we came together to remake ourselves; we came together as one nation and did what was necessary to win the future.  That is why I am so confident that we will win the future again.

      That’s the challenge that we face today.  We still have, by far, the world’s largest and most vibrant economy.  We have the most productive workers, the finest universities and the freest markets.  The men and women in this room are living testimony that American industry is still the source of the most dynamic companies, and the most ingenious entrepreneurs.

      But we also know that with the march of technology over the last few decades, the competition for jobs and businesses has grown fierce.  The globalization of our economy means that businesses can now open up a shop, employ workers and produce their goods wherever an Internet connection exists.  Tasks that were once done by 1,000 workers can now be done by 100 or in some cases even 10.  And the truth is, as countries like China and India and Brazil grow and develop larger middle classes, it’s profitable for global companies to aggressively pursue these markets and, at times, to set up facilities in these countries.

      These forces are as unstoppable as they are powerful.  But combined with a brutal and devastating recession, these forces have also shaken the faith of the American people -- in the institutions of business and government.  They see a widening chasm of wealth and opportunity in this country, and they wonder if the American Dream is slipping away.

      They wonder if the middle class, rather than expanding as it has through our lifetimes, is in the midst of an inexorable contraction.   And we can’t ignore these concerns.  We have to renew people’s faith in the promise of this country –- that this is a place where you can make it if you try.  And we have to do this together:  business and government; workers and CEOs; Democrats and Republicans.

      We know what it will take for America to win the future.  We need to out-innovate, we need to out-educate, we need to out-build our competitors.  We need an economy that’s based not on what we consume and borrow from other nations, but what we make and what we sell around the world.  We need to make America the best place on Earth to do business.

      And this is a job for all of us.  As a government, we will help lay the foundation for you to grow and innovate and succeed.  We will upgrade our transportation and communication networks so you can move goods and information more quickly and more cheaply.  We’ll invest in education so that you can hire the most skilled, talented workers in the world.  And we’ll work to knock down barriers that make it harder for you to compete, from the tax code to the regulatory system.

      But I want to be clear:  Even as we make America the best place on Earth to do business, businesses also have a responsibility to America.

      I understand the challenges you face.  I understand you are under incredible pressure to cut costs and keep your margins up.  I understand the significance of your obligations to your shareholders and the pressures that are created by quarterly reports.  I get it.

      But as we work with you to make America a better place to do business, I’m hoping that all of you are thinking what you can do for America.  Ask yourselves what you can do to hire more American workers, what you can do to support the American economy and invest in this nation.  That’s what I want to talk about today –- the responsibilities we all have -- the mutual responsibilities we have -- to secure the future that we all share.

      Now, as a country, we have a responsibility to encourage American innovation.  I talked about this quite a bit at my State of the Union.

      Companies like yours have always driven the discovery of new products and new ideas.  You do it better than anybody.  But what you also know is that it’s not always profitable to -- in the short-term, at least -- for you to invest in basic research.  It’s very expensive, and the payoffs are not always clear and they’re not always localized.  And that’s why government has traditionally helped invest in this kind of science, planting the seeds that ultimately grew into technologies from the computer chips to the Internet.

      That’s why we’re making investments today in the next generation of big ideas -– in biotechnology, in information technology and in clean energy technology.  We’re reforming our patent system so innovations can move more quickly to market.  Steve Case is heading up a new partnership called Startup America to help entrepreneurs turn new ideas into new businesses and new jobs.  And I’ve also proposed a bigger, permanent tax credit for all the research and development your companies do in this country.  I believe that is a priority.

      We also have a responsibility as a nation to provide our people with -- and our businesses -- with the fastest, most reliable way to move goods and information.  The costs to business from outdated and inadequate infrastructure is enormous.  And that’s what we have right now -- outdated, inadequate infrastructure.

      And any of you that have been traveling to other countries, you know it, you see it, and it affects your bottom lines.  That’s why I want to put more people to work rebuilding crumbling roads, rebuilding our bridges.  That’s why I’ve proposed connecting 80 percent of the country with high-speed -- to high-speed rail, and making it possible for companies to put high-speed Internet coverage in the reach of virtually all Americans.

      You understand the importance of this.  The fact is, the Chamber of Commerce and the AFL-CIO don’t agree on a whole lot.  Tom Donohue and Richard Trumka are not Facebook friends.  (Laughter.)  Well, maybe -- I don’t think you are anyway.  (Laughter.)  I didn’t check on this, but -- but they agree on the need to build a 21st-century infrastructure.  And I want to thank the Chamber for pushing Congress to make more infrastructure investments, and to do so in the most cost-effective way possible:  with tax dollars that leverage private capital, and with projects that are determined not by politics, but by what’s best for our economy.

      Third responsibility that we have as a nation is to invest in the skills and education of our young people.  If we expect companies to do business and hire in America, America needs a pool of trained, talented workers that can out-compete anybody in the world.  And that’s why we’re reforming K-12 education; that’s why we’re training 100,000 new math and science teachers; that’s why we’re making college more affordable, and revitalizing our community college system.

      Recently I visited GE in Schenectady, which has partnered with a local community college.  And while students train for jobs available at the nearby GE plant, they earn a paycheck and they’ve got their tuition covered.  And as a result, young people can find work, GE can fill high-skill positions, and the entire region has become more attractive to businesses.  It’s a win-win for everybody, and it’s something we’re trying to duplicate across the country.

      Now, to make room for these investments in education, in innovation, in infrastructure, government also has a responsibility to cut spending that we just can’t afford.  That’s why I’ve promised to veto any bill that’s larded up with earmarks.  That’s why I’ve proposed that we freeze annual domestic spending for the next five years.  Understand what this means.  This would reduce the deficit by more than $400 billion over the next decade, and bring this spending -- domestic discretionary spending -- down to the lowest share of our economy since Eisenhower was president.  That was a long time ago.

      Now, it’s not going to be enough.  We’re going to have to do more.  Because the driving force on our deficits are entitlements spending.  And that’s going to require both parties to work together, because those are some tough problems that we’re going to have to solve.  And I am eager to work with both parties and with the Chamber to take additional steps across the budget to put our nation on a sounder fiscal footing.

      By stopping spending on things we don’t need, we can make investments in the things that we do need, the same way families do.  If they’ve got a fiscal problem, if they’ve got to tighten their belt, they don’t stop paying for Johnny to go to college.  They cut out things they don’t need, but they still make investments in the thing that are going to make sure we win the future.  And that’s what we have to do as a country:  make some smart choices -- tough choices, but smart ones.

      Now, in addition to making government more affordable, we’re also making it more effective and more consumer-friendly.  We’re trying to run the government a little bit more like you run your business -- with better technology and faster services.  So in the coming months, my administration will develop a proposal to merge, consolidate and reorganize the federal government in a way that best serves the goal of a more competitive America.  And we want to start with the 12 different agencies that deal with America’s exports.  If we hope to help our businesses sell more goods around the world, we should ensure we’re all pulling in the same direction.  And frankly, with 12 different agencies in charge, nobody is in charge.  So we’re going to fix that as an example of how we can make a government that’s more responsive to the American people and to American businesses.

      Which brings me to the final responsibility of government:  breaking down some of the barriers that stand in the way of your success.  As far as exports are concerned, that means seeking new opportunities and opening new markets for your goods.  And I will tell you I will go anywhere anytime to be a booster for American businesses, American workers and American products.  We recently signed -- (applause) -- and I don’t charge a commission.  (Laughter.)

      We recently signed export deals with India and China that will support more than 250,000 jobs here in the United States.  We finalized a trade agreement with South Korea that will support at least 70,000 American jobs.  And by the way, it’s a deal that has unprecedented support from business and labor, Democrats and Republicans.  That’s the kind of deal that I will be looking for as we pursue trade agreements with Panama and Colombia, as we work to bring Russia into the international trading system.  Those are going to be our top priorities because we believe Americans have the best products and the best businesses, and if we’re out there selling and we’re out there hustling, there’s no reason why we can’t do a lot better than we’re doing right now when it comes to our exports.

      Now, another barrier government can remove -- and I hear a lot about this from many of you -- is a burdensome corporate tax code with one of the highest rates in the world.  You know how it goes:  because of various loopholes and carve-outs that have built up over the years, some industries pay an average rate that is four or five times higher than others.  Companies are taxed heavily for making investments with equity, yet the tax code actually pays companies to invest using leverage.  As a result, you’ve got too many companies ending up making decisions based on what their tax director says instead of what their engineer designs or what their factories produce.  And that puts our entire economy at a disadvantage.  We need something smarter, something simpler, something fairer.  That’s why I want to lower the corporate rate and eliminate these loopholes to pay for it, so that it doesn’t add a dime to our deficit.  And I’m asking for your help in this fight.  I think it can be done.

      Which brings me to the last barriers we’re trying to remove, and those are outdated and unnecessary regulations.  I’ve ordered a government-wide review, and if there are rules on the books that are needlessly stifling job creation and economic growth, we will fix them.

      Already we’re dramatically cutting down on the paperwork that saddles businesses with huge administrative costs.  We’re improving the way FDA evaluates things like medical devices, to get innovative and lifesaving treatments to market faster.  And the EPA, based on the need for further scientific analysis, delayed the greenhouse gas permitting rules for biomass.

      I’ve also ordered agencies to find ways to make regulations more flexible for small businesses.  And we’ve turned a tangle of fuel economy regulations and pending lawsuits into a single standard that will reduce our dependence on foreign oil, save consumers money at the pump and give car companies the certainty that they need -- all negotiated by the various stakeholders without the need for congressional legislation.

      But ultimately, winning the future is not just about what the government can do for you to succeed.  It’s also about what you can do to help America succeed.

      So we were just talking about regulations.  Even as we eliminate burdensome regulations, America’s businesses have a responsibility as well to recognize that there are some basic safeguards, some basic standards that are necessary to protect the American people from harm or exploitation.  Not every regulation is bad.  Not every regulation is burdensome on business.  A lot of the regulations that are out there are things that all of us welcome in our lives.

      Few of us would want to live in a society without rules that keep our air and water clean; that give consumers the confidence to do everything from investing in financial markets to buying groceries.  And the fact is, when standards like these have been proposed in the past, opponents have often warned that they would be an assault on business and free enterprise.  We can look at the history in this country.  Early drug companies argued the bill creating the FDA would “practically destroy the sale of … remedies in the United States.”  That didn’t happen.  Auto executives predicted that having to install seatbelts would bring the downfall of their industry.  It didn’t happen.  The President of the American Bar Association denounced child labor laws as “a communistic effort to nationalize children.”  That’s a quote.

      None of these things came to pass.  In fact, companies adapt and standards often spark competition and innovation.  I was travelling when I went up to Penn State to look at some clean energy hubs that have been set up.  I was with Steve Chu, my Secretary of Energy.  And he won a Nobel Prize in physics, so when you’re in conversations with him you catch about one out of every four things he says.  (Laughter.)

      But he started talking about energy efficiency and about refrigerators, and he pointed out that the government set modest targets a couple decades ago to start increasing efficiency over time.  They were well thought through; they weren’t radical.  Companies competed to hit these markers.  And they hit them every time, and then exceeded them.  And as a result, a typical fridge now costs half as much and uses a quarter of the energy that it once did -- and you don’t have to defrost, chipping at that stuff -- (laughter) -- and then putting the warm water inside the freezer and all that stuff.  It saves families and businesses billions of dollars.

      So regulations didn’t destroy the industry; it enhanced it and it made our lives better -- if they’re smart, if they’re well designed.  And that’s our goal, is to work with you to think through how do we design necessary regulations in a smart way and get rid of regulations that have outlived their usefulness, or don’t work.

      I also have to point out the perils of too much regulation are also matched by the dangers of too little.  And we saw that in the financial crisis, where the absence of sound rules of the road, that wasn’t good for business.  Even if you weren’t in the financial sector it wasn’t good for business.  And that’s why, with the help of Paul Volcker, who is here today, we passed a set of common-sense reforms.

      The same can be said of health insurance reform.  We simply could not continue to accept a status quo that’s made our entire economy less competitive, as we’ve paid more per person for health care than any other nation on Earth.  Nobody is even close.  And we couldn’t accept a broken system where insurance companies could drop people because they got sick, or families went into bankruptcy because of medical bills.

      I know that folks here have concerns about this law.  And I understand it.  If you’re running a business right now and you’re seeing these escalating health care costs, your instinct is if I’ve got even more laws on top of me, that’s going to increase my costs even more.  I understand that suspicion, that skepticism.

      But the non-partisan congressional watchdogs at the CBO estimate that health care tax credits will be worth nearly $40 billion for small businesses over the next decade -- $40 billion, directly to small businesses who are doing the right thing by their employees.

      And experts –- not just from the government, but also those commissioned by the Business Roundtable –- suggest that health insurance reform could ultimately save large employers anywhere from $2,000 to $3,000 per family -- your employees and your bottom line.

      I’ve said in the State of the Union and I’ll repeat here today:  I am willing and happy to look at other ideas to improve the law, including incentives to improve patient safety and medical malpractice reforms.  And I want to correct a flaw that’s already placed an unnecessary bookkeeping burden on too many small businesses, and I appreciate the Chamber’s help in doing that.

      But we have to recognize that some common-sense regulations often will make sense for your businesses, as well as your families, as well as your neighbors, as well as your coworkers.  Of course, your responsibility goes beyond recognizing the need for certain standards and safeguards.  If we’re fighting to reform the tax code and increase exports to help you compete, the benefits can’t just translate into greater profits and bonuses for those at the top.  They have to be shared by American workers, who need to know that expanding trade and opening markets will lift their standards of living as well as your bottom line.

      We can’t go back to the kind of economy and culture that we saw in the years leading up to the recession, where growth and gains in productivity just didn’t translate into rising incomes and opportunity for the middle class.  That’s not something necessarily we can legislate, but it’s something that all of us have to take responsibility for thinking about.  How do we make sure that everybody’s got a stake in trade, everybody’s got a stake in increasing exports, everybody’s got a stake in rising productivity?  Because ordinary folks end up seeing their standards of living rise as well.  That’s always been the American promise.  That’s what JFK meant when he said, “A rising tide lifts all boats.”  Too many boats have been left behind, stuck in the mud.

      And if we as a nation are going to invest in innovation, that innovation should lead to new jobs and manufacturing on our shores.  The end result of tax breaks and investments can’t simply be that new breakthroughs and technologies are discovered here in America, but then the manufacturing takes place overseas.  That, too, breaks the social compact.  It makes people feel as if the game is fixed and they’re not benefiting from the extraordinary discoveries that take place here.

      So the key to our success has never been just developing new ideas; it’s also been making new products.  So Intel pioneers the microchip, then puts thousands to work building them in Silicon Valley.  Henry Ford perfects the assembly line, and then puts a generation to work in the factories of Detroit.  That’s how we built the largest middle class in the world.  Those folks working in those plants, they go out and they buy a Ford.  They buy a personal computer.  And the economy grows for everyone.  And that’s how we’ll create the base of knowledge and skills that propel the next inventions and the next ideas.

      Right now, businesses across this country are proving that America can compete.  Caterpillar is opening a new plant to build excavators in Texas that used to be shipped from Japan.  In Tennessee, Whirlpool is opening their first new U.S. factory in more than a decade.  Dow is building a new plant in Michigan to manufacture batteries for electric vehicles.  A company called Geomagic, a software maker, decided to close down its overseas centers in China and Europe and move their R&D here to the United States.  These companies are bringing jobs back to our shores.  And that’s good for everybody.

      So if I’ve got one message, my message is now is the time to invest in America.  Now is the time to invest in America.  (Applause.)  Today, American companies have nearly $2 trillion sitting on their balance sheets.  And I know that many of you have told me that you’re waiting for demand to rise before you get off the sidelines and expand, and that with millions of Americans out of work, demand has risen more slowly than any of us would like.

      We’re in this together, but many of your own economists and salespeople are now forecasting a healthy increase in demand.  So I just want to encourage you to get in the game.  As part of the bipartisan tax deal we negotiated, with the support of the Chamber, businesses can immediately expense 100 percent of their capital investments.  And as all of you know, it’s investments made now that will pay off as the economy rebounds.  And as you hire, you know that more Americans working will mean more sales for your companies.  It will mean more demand for your products and services.  It will mean higher profits for your companies.  We can create a virtuous circle.

      And if there’s a reason you don’t share my confidence, if there’s a reason you don’t believe that this is the time to get off the sidelines –- to hire and to invest -– I want to know about it.  I want to fix it.  That’s why I’ve asked Jeff Immelt of GE to lead a new council of business leaders and outside experts so that we’re getting the best advice on what you’re facing out there –- and we’ll be holding our first meeting two weeks from now, on the 24th.  So you can get your emails in early, with your ideas, with your thoughts about how we keep moving forward to create this virtuous cycle.

      Together, I am confident we can win the competition for new jobs and industries.  And I know you share my enthusiasm.  Here’s one thing I know.  For all the disagreements, Tom, that we may have sometimes on issues, I know you love this country.  I know you want America to succeed just as badly as I do.

      So, yes, we’ll have some disagreements; and, yes, we’ll see things differently at times.  But we’re all Americans.  And that spirit of patriotism, and that sense of mutual regard and common obligation, that has carried us through far harder times than the ones we’ve just been through.

      And I’m reminded, toward the end of the 1930s, amidst the Depression, the looming prospect of war, FDR, President Roosevelt, realized he would need to form a new partnership with business if we were going to become what he would later call the “arsenal of democracy.”  And as you can imagine, the relationship between the President and business leaders during the course of the Depression had been rocky at times.  They’d grown somewhat fractured by the New Deal.

      So Roosevelt reached out to businesses, and business leaders answered the call to serve their country.  After years of working at cross purposes, the result was one of the most productive collaborations between the public and private sectors in American history.

      Some, like the head of GM, hadn’t previously known the President, and if anything had seen him as an adversary.  But he gathered his family and he explained that he was going to head up what would become the War Production Board.  And he said to his family, “This country has been good to me, and I want to pay it back.”  I want to pay it back.

      And in the years that followed, automobile factories converted to making planes and tanks.  And corset factories made grenade belts.  A toy company made compasses.  A pinball machine maker turned out shells.  1941 would see the greatest expansion of manufacturing in the history of America.  And not only did this help us win the war; it led to millions of new jobs and helped produce the great American middle class.

      So we have faced hard times before.  We have faced moments of tumult and moments of change.  And we know what to do.  We know how to succeed.  We are Americans, and as we have done throughout our history, I have every confidence that once again we will rise to this occasion; that we can come together, we can adapt and we can thrive in this changing economy.  And we need to look no further than the innovative companies in this room.  If we can harness your potential and the potential of your people across this country, I think there’s no stopping us.

      So thank you, God bless you, and may God bless the United States of America.  (Applause.)

                           END                12:04 P.M. EST

The White House

Office of the Press Secretary

For Immediate Release
February 04, 2011

Remarks by President Obama and Prime Minister Stephen Harper of Canada in Joint Press Availability

South Court Auditorium

3:21 P.M. EST

     PRESIDENT OBAMA:  Good afternoon, everyone.  Please be seated.
 
I am very pleased to be welcoming my great friend and partner, Prime Minister Stephen Harper, back to the White House to reaffirm our extraordinary friendship and cooperation between the United States and Canada.  I’d like to talk a bit about what we accomplished today, and then address the situation unfolding in Egypt.
 
The United States and Canada are not simply allies, not simply neighbors; we are woven together like perhaps no other two countries in the world.  We’re bound together by our societies, by our economies, by our families -- which reminds me my brother-in-law’s birthday is today and I have to call him.  (Laughter.)  
And in our many meetings together I’ve come to value Stephen’s candor and his focus on getting results, both when it comes to our two countries and to meeting global challenges.  Although I, unfortunately, have not yet had the pleasure of seeing him and his band jam to the Rolling Stones —- but I’m told the videos have become a sensation on YouTube.  So I'll be checking those out after this bilateral.  (Laughter.)     
 
We’ve had a very successful day.  Our focus has been on how we increase jobs and economic growth on both sides of the border. Canada is our largest trading partner and the top destination for American exports, supporting some 1.7 million jobs here.  So today we’ve agreed to several important steps to increase trade, improve our competitiveness, and create jobs for both our people.
First, we agreed to a new vision for managing our shared responsibilities —- not just at the border but “beyond the border.”  That means working more closely to improve border security with better screening, new technologies and information-sharing among law enforcement, as well as identifying threats early.  It also means finding new ways to improve the free flow of goods and people.  Because with over a billion dollars in trade crossing the border every single day, smarter border management is key to our competitiveness, our job creation, and my goal of doubling U.S. exports.
 
And, Mr. Prime Minister, I thank you for your leadership and commitment to reaching this agreement.
 
We’ve directed our teams to develop an action plan to move forward quickly.  And I’m confident that we’re going to get this done so that our shared border enhances our shared prosperity.
 
Second, we’re launching a new effort to get rid of outdated regulations that stifle trade and job creation.  Like the government-wide review that I ordered last month, we need to obviously strike the right balance -— protecting our public health and safety, and making it easier and less expensive for American and Canadians to trade and do business, for example, in the auto industry.  And a new council that we’re creating today will help make that happen.
 
Third, we discussed a wide range of ways to promote trade and investment, from clean energy partnerships to the steps Canada can take to strengthen intellectual property rights.      
 
And we discussed a range of common security challenges, including Afghanistan, where our forces serve and sacrifice together.  Today, I want to thank Prime Minister Harper for Canada’s decision to shift its commitment to focus on training Afghan forces.  As we agreed with our Lisbon -- or our NATO and coalition allies in Lisbon, the transition to Afghan lead for security will begin this year, and Canada’s contribution will be critical to achieving that mission and keeping both our countries safe.
 
Finally, we discussed our shared commitment to progress with our partners in the Americas, including greater security cooperation.  And I especially appreciated the Prime Minister’s perspective on the region as I prepare for my trip to Central and South America next month.
 
Let me close by saying a few words about the situation in Egypt.  This is obviously still a fluid situation and we’re monitoring it closely, so I'll make just a few points.
 
First, we continue to be crystal-clear that we oppose violence as a response to this crisis.  In recent days, we’ve seen violence and harassment erupt on the streets of Egypt that violates human rights, universal values and international norms. So we are sending a strong and unequivocal message:  Attacks on reporters are unacceptable.  Attacks on human rights activists are unacceptable.  Attacks on peaceful protesters are unacceptable.
 
The Egyptian government has a responsibility to protect the rights of its people.  Those demonstrating also have a responsibility to do so peacefully.  But everybody should recognize a simple truth:  The issues at stake in Egypt will not be resolved through violence or suppression.  And we are encouraged by the restraint that was shown today.  We hope that it continues.
 
     Second, the future of Egypt will be determined by its people.  It’s also clear that there needs to be a transition process that begins now.  That transition must initiate a process that respects the universal rights of the Egyptian people and that leads to free and fair elections.
 
     The details of this transition will be worked by Egyptians. And my understanding is that some discussions have begun.  But we are consulting widely within Egypt and with the international community to communicate our strong belief that a successful and orderly transition must be meaningful.  Negotiations should include a broad representation of the Egyptian opposition, and this transition must address the legitimate grievances of those who seek a better future.
 
     Third, we want to see this moment of turmoil turn into a moment of opportunity.  The entire world is watching.  What we hope for and what we will work for is a future where all of Egyptian society seizes that opportunity.  Right now a great and ancient civilization is going through a time of tumult and transformation.  And even as there are grave challenges and great uncertainty, I am confident that the Egyptian people can shape the future that they deserve.  And as they do, they will continue to have a strong friend and partner in the United States of America.
 
     Mr. Prime Minister.
 
     PRIME MINISTER HARPER:  Well, first of all, thank you, Barack.  Both thank you for your friendship both personal and national.  And thank you for all the work you’ve done and all of your people have done to bring us to our announcement today.
 
     [Speaks in French.]
 
     And I will just repeat that.
 
Today, President Obama and I are issuing a declaration on our border, but it is, of course, much more than that.  It is a declaration on our relationship.  Over the past nearly 200 years, our two countries have progressively developed the closest, warmest, most integrated and most successful relationship in the world.  We are partners, neighbors, allies, and, most of all, we are true friends.
 
     In an age of expanding opportunities but also of grave dangers, we share fundamental interests and values just as we face common challenges and threats.
 
     At the core of this friendship is the largest bilateral trading relationship in history.  And since the signing of the Canada-U.S. free trade agreement, a milestone in the development of the modern era of globalization, that partnership has grown spectacularly.
 
     Not only is the U.S. Canada’s major export market, Canada is also America’s largest export market -- larger than China, larger than Mexico, larger than Japan, larger than all the countries of the European Union combined.  Eight million jobs in the United States are supported by your trade with Canada.  And Canada is the largest, the most secure, the most stable, and the friendliest supplier of that most vital of all America’s purchases -- energy.
 
     It is in both our interests to ensure that our common border remains open and efficient, but it is just as critical that it remains secure and in the hands of the vigilant and the dedicated.  Just as we must continually work to ensure that inertia and bureaucratic sclerosis do not impair the legitimate flow of people, goods and services across our border, so, too, we must up our game to counter those seeking new ways to harm us.
 
And I say “us” because as I have said before, a threat to the United States is a threat to Canada -- to our trade, to our interests, to our values, to our common civilization.  Canada has no friends among America’s enemies, and America has no better friend than Canada.
 
     The declaration President Obama and I are issuing today commits our governments to find new ways to exclude terrorists and criminals who pose a threat to our peoples.  It also commits us to finding ways to eliminate regulatory barriers to cross-border trade and travel, because simpler rules lead to lower costs for business and consumers, and ultimately to more jobs.
 
     Shared information, joint planning, compatible procedures and inspection technology will all be key tools.  They make possible the effective risk management that will allow us to accelerate legitimate flows of people and goods between our countries while strengthening our physical security and economic competitiveness.
 
     So we commit to expanding our management of the border to the concept of a North American perimeter, not to replace or eliminate the border but, where possible, to streamline and decongest it.
 
     There is much work to do.  The declaration marks the start of this endeavor, not the end; an ambitious agenda between two countries, sovereign and able to act independently when we so choose according to our own laws and aspirations, but always understanding this -- that while a border defines two peoples, it need not divide them.  That is the fundamental truth to which Canadians and Americans have borne witness for almost two centuries.  And through our mutual devotion to freedom, democracy and justice at home and abroad, it is the example we seek to demonstrate for all others.
 
     PRESIDENT OBAMA:  All right, we’ve got time for a couple of questions.  I’m going to start with Alister Bull.
    
     Q    Thank you very much, Mr. President.  Is it conceivable to you that a genuine process of democratic reform can begin in Egypt while President Mubarak remains in power, or do you think his stepping aside is needed for reform even to begin?
 
     And to Prime Minister Harper, on the energy issue, did you discuss Canada’s role as a secure source of oil for the United States, and in particular, did you receive any assurances the U.S. administration looks favorably on TransCanada’s proposed Keystone Pipeline to the Gulf Coast?  Thank you.
 
     PRESIDENT OBAMA:  I have had two conversations with President Mubarak since this crisis in Egypt began, and each time I've emphasized the fact that the future of Egypt is going to be in the hands of Egyptians.  It is not us who will determine that future.  But I have also said that in light of what’s happened over the last two weeks, going back to the old ways is not going to work.  Suppression is not going to work.  Engaging in violence is not going to work.  Attempting to shut down information flows is not going to work.
 
     In order for Egypt to have a bright future -- which I believe it can have -- the only thing that will work is moving a orderly transition process that begins right now, that engages all the parties, that leads to democratic practices, fair and free elections, a representative government that is responsive to the grievances of the Egyptian people.
 
     Now, I believe that President Mubarak cares about his country.  He is proud, but he’s also a patriot.  And what I've suggested to him is, is that he needs to consult with those who are around him in his government.  He needs to listen to what’s being voiced by the Egyptian people and make a judgment about a pathway forward that is orderly, but that is meaningful and serious.
 
And I believe that -- he’s already said that he’s not going to run for reelection.  This is somebody who’s been in power for a very long time in Egypt.  Having made that psychological break, that decision that he will not be running again, I think the most important for him to ask himself, for the Egyptian government to ask itself, as well as the opposition to ask itself, is how do we make that transition effective and lasting and legitimate.
 
     And as I said before, that's not a decision ultimately the United States makes or any country outside of Egypt makes.  What we can do, though, is affirm the core principles that are going to be involved in that transition.  If you end up having just gestures towards the opposition but it leads to a continuing suppression of the opposition, that's not going to work.  If you have the pretense of reform but not real reform, that's not going to be effective.
 
And as I said before, once the President himself announced that he was not going to be running again, and since his term is up relatively shortly, the key question he should be asking himself is, how do I leave a legacy behind in which Egypt is able to get through this transformative period.  And my hope is, is that he will end up making the right decision.
 
     PRIME MINISTER HARPER:  You asked me about the question of energy, and, yes, we did discuss the matter you raised.  And let me just say this in that context.  I think it is clear to anyone who understands this issue that the need of the United States for fossil fuels far in excess of its ability to produce such energy will be the reality for some time to come.  And the choice that the United States faces in all of these matters is whether to increase its capacity, to accept such energy from the most secure, most stable and friendliest location it can possibly get that energy, which is Canada, or from other places that are not as secure, stable or friendly to the interests and values of the United States.
 
     PRESIDENT OBAMA:  I think we’ve got a Canadian reporter.
 
     Q    Prime Minister, can you answer this in English and French?  Canadians will be asking how much of our sovereignty and our privacy rights will be given up to have more open borders and an integrated economy.  And while I have you on your feet, I want to ask you about Egypt, as well, whether you feel that Mr. Mubarak should be stepping down sooner, it would help the transition?
 
     And, Mr. President, on the sovereignty issue, you're welcome to answer it -- you don't have to speak in French, though.  (Laughter.)
 
     PRESIDENT OBAMA:  Thank you.  (Laughter.)  Now, I love French, but I'm just not very capable of speaking it.  (Laughter.)
 
     PRIME MINISTER HARPER:  On the question of sovereignty, this declaration is not about sovereignty.  We are sovereign countries who have the capacity to act as we choose to act.  The question that faces us is to make sure we act in a sovereign way that serves Canada’s interests.  It is in Canada’s interests to work with our partners in the United States to ensure that our borders are secure, and ensure that we can trade and travel across them as safely and as openly as possible within the context of our different laws.
 
     And that is what we're trying to achieve here.  We share security threats that are very similar on both sides of the border.  We share an integrated economic space where it doesn’t make sense to constantly check the same cargo over and over again -- if we can do that at a perimeter, if we can decongest the border, that's what we should be doing.  If we can -- if we can harmonize regulations in ways that avoid unnecessary duplication and red tape for business -- these are things that we need to do.
 
     So that's what this is all about.  This is about the safety of Canadians and it is about creating jobs and economic growth for the Canadian economy.
 
     Let me maybe -- I'll do French and then I'll come to Egypt.
(Speaks in French.)
 
     On the question of Egypt, let me just agree fully with what President Obama has said.  I don't think there is any doubt from anyone who is watching the situation that transition is occurring and will occur in Egypt.  The question is what kind of transition this will be and how it will lead.  It is ultimately up to the Egyptian people to decide who will govern them.
 
What we want to be sure is that we lead towards a future that is not simply more democratic, but a future where that democracy is guided by such values as non-violence, as the rule of law, as respect and respect for human rights, including the rights of minorities, including the rights of religious minorities.
(Speaks in French.)
 
     PRESIDENT OBAMA:  With respect to security issues and sovereignty issues, obviously, Canada and the United States are not going to match up perfectly on every measure with respect to how we balance security issues, privacy issues, openness issues. But we match up more than probably any country on Earth.
 
     We have this border that benefits when it is open.  The free flow of goods and services results in huge economic benefits for both sides.  And so the goal here is to make sure that we are coordinating closely and that as we are taking steps and measures to ensure both openness and security, that we’re doing so in ways that enhances the relationship as opposed to creates tensions in the relationship.  And we are confident that we’re going to be able to achieve that.
 
We’ve already made great progress just over the last several years on various specific issues.  What we’re trying to do now is to look at this in a more comprehensive fashion, so that it’s not just border security issues, but it’s a broader set of issues involved.  And I have great confidence that Prime Minister Harper is going to be very protective of certain core values of Canada, just as I would be very protective of the core values of the United States, and those won’t always match up perfectly.
 
And I thought -- I agree even more with his answer in French.  (Laughter.)
 
All right.  Thank you very much, everybody.
 

END
3:49 P.M. EST

The White House

Office of the Press Secretary

For Immediate Release
February 03, 2011

Remarks by the President on Innovation at Penn State University

Penn State University, University Park, Pennsylvania

12:35 P.M. EST

     THE PRESIDENT:  Thank you, Nittany Lions!  (Applause.)  Thank you.  Thank you so much.  (Applause.)  Please have a seat. Have a seat.
 
     AUDIENCE MEMBER:  We love you!
 
     THE PRESIDENT:  Oh, I love you back.  Thank you.  It’s great to be here.  (Applause.)  It is good to be back in Happy Valley. (Applause.)  It’s good to be back at Penn State.  I want to say, first of all, thank you to Graham Spanier, your President; --  (applause) -- Elizabeth Goreham, the Mayor of State College.  (Applause.)  Congressman Glenn Thompson is here.
 
     I met this guy -- I hadn’t heard of him before, but apparently he coaches your football team -- Joe Paterno is in the house.  (Applause.)
 
     And one last introduction I want to make.  Some of you know I have these military aides.  They go with me everywhere.  They’re from each branch of our Armed Services.  They’re the ones who carry the football -- you’ve heard of that?  So they’re really important guys.  Well, it just so happens that the military aide with me today is Mr. Sam Price, lieutenant colonel in the Air Force -- happens to be Penn State class of ’95.  (Applause.)  Sam Price right here.  (Applause.)  So we've got some Lions who are taking care of business on Air Force One as well as here on campus.
 
     Now, last week I visited a small town in Wisconsin that was right next to Green Bay.
 
     AUDIENCE:  Ooooh --
 
     THE PRESIDENT:  So in the spirit of fairness, I've come to Pennslyvania -- (laughter) -- not too far from the center of Steeler Nation -- (applause) -- to wish Steelers’ fans good luck in the Super Bowl, too.  (Applause.)
 
     Two years ago I stole one of the team’s owners, Dan Rooney, to be our ambassador to Ireland.  So I've got some love for the Steelers.  I also am aware, though, that this state splits up a little bit, so I suspect there may be a few Eagles fans.  (Applause.)  You're with us Bears fans.  (Laughter.)  Sitting at home, watching.  (Laughter.)
 
     But that small town in Wisconsin and the borough of State College have something else in common besides championship football teams.  These are places where the future will be won.  These are the places where the new jobs and the world’s best businesses will take root -- right here in State College; right here in Pennsylvania.
 
     In the short term, obviously we've got to focus on the devastation that occurred because of this recession over the last two years.  And the best thing we can do to speed up economic growth is to make sure that people and businesses have more money to spend.  And that's exactly what the tax cut that we passed in December is doing.  Because Democrats and Republicans came together, Americans’ paychecks will be a little bit bigger this year.  And businesses will be able to write off their investments, and companies will grow and jobs will be created. That's all good in the short term.
 
     But the reason I wanted to come here to Penn State is to talk about the long term.  The reason I wanted to talk to young people is to talk about the future and how we're going to win it.
 
     If we want to make up for the millions of jobs that were lost in this recession, but more importantly, if we want to make sure that America is still a place where you can make it if you try, where you can go as far as hard work and big dreams will take you, then we're going to have to make some serious decisions about our long-term economic health -- at a time when we're facing stiff competition from other nations for jobs and industries of our time.
 
And I know every young person here feels that pressure.  You understand that it’s not going to be a cakewalk, this competition for the future, which means all of us are going to have to up our game.  We are going to have to win the future by being smarter and working harder and working together.  If we want those jobs and businesses to thrive in the United States of America, we’re going to have to out-innovate and out-educate and out-build the rest of the world.  That's that we’re going to have to do.  (Applause.)
 
     That means investing in cutting-edge research and technology.  It means investing in the skills and training of our people.  It means investing in transportation and communication networks that can move goods and information as fast as possible. And to make room for these investments, it means cutting whatever spending we just can’t afford.
 
     So I’ve proposed that we freeze annual domestic spending for the next five years, which will reduce the deficit by more than $400 billion over the next decade and will bring annual domestic spending to the lowest share of our economy since Eisenhower was President, meaning since way before most of you were born.  (Laughter.)  He said, not me.  (Laughter.)
 
     Now, just like Americans do every day, government has a responsibility to live within its means.  But we also have a responsibility to invest in those areas that are going to have the biggest impact.  And in this century those areas are education and infrastructure and innovation.  (Applause.)  And that last area, innovation is why I’ve come to Penn State today.
 
     Innovation is what this country is all about.  Sparking the imagination and creativity of our people, unleashing new discoveries -- that's what America does better than any other country on Earth.  That's what we do.  (Applause.)  And this innovation has always been driven by individual scientists and entrepreneurs.  I was up in Schenectady, New York the other day at the G.E. plant that was Thomas Edison’s original plant.  And anywhere you go in the country you will find inventors and businesses that created products that are now sent all around the world.  But innovation has also flourished because we as a nation have invested in the success of these individual entrepreneurs, these inventors, these scientists.
 
     In this country, from the moment you have a new idea, you can explore it in the world’s best labs and universities; you can develop it with a research grant; you can protect it with a patent; you can market it with a loan to start a new business.  You’ve got a chain that takes a great idea all the way through, and that’s something that we as a nation have always invested in. It’s how we as a people have advanced ideas from the earliest stages of research to the point where you can hand it off and let the private sector run with the ball.  It’s how investments and basic research led to things like the computer chip and GPS, and millions of good jobs.
 
In America, innovation isn’t just how we change
our lives; it’s how we make a living.  And to support American innovation, what my administration is trying to do is not just hand out money.  What we’re doing is we’re issuing a challenge.  Because right now, some of the most promising innovation is happening in the area of clean energy technology -- technology that is creating jobs, reducing our dependence on foreign oil, and -- something that every young person here cares about -- making sure our planet is a healthier place to live that we can pass on to future generations.  (Applause.)
 
     So we’re telling scientists and we’re telling engineers all across the country that if they assemble teams of the best minds in their fields, and focus on tackling the biggest obstacles to clean, abundant, and affordable energy, then we’re going to get behind their work.  We as a country will invest in them.  We’ll get them all in one place and we’ll support their research.  And we call these places, energy innovation hubs.
 
At CalTech, they’re developing a way to turn sunlight and water into fuel for cars.  You like that.  (Applause.)  At Oakridge National Laboratory in Tennessee, they’re using supercomputers to find ways of getting much more power out of nuclear facilities.  (Applause.)
 
And right here, right here at Penn State, a university whose motto is “making life better,” you’ve answered the call.  (Applause.)  So today you’re preparing to lead the way on a hub that will make America home to the most energy-efficient buildings in the world.
 
Now, that may not sound too sexy until  -- (laughter) -- energy-efficient buildings.  (Laughter.)  But listen, our homes and our businesses consume 40 percent of the energy we use.  Think about that.  Everybody focuses on cars and gas prices, and that’s understandable.  But our homes and our businesses use 40 percent of the energy.  They contribute to 40 percent of the carbon pollution that we produce and that is contributing to climate change.  It costs us billions of dollars in energy bills. They waste huge amounts of energy.
 
     So the good news is we can change all that.  Making our buildings more energy-efficient is one of the fastest, easiest and cheapest ways to save money, combat pollution and create jobs right here in the United States of America.  And that's what we’re going to do.  (Applause.)
 
So that's what this energy innovation hub based in Philadelphia is going to be all about.  You will help make America a world leader in innovative designs for cost-effective, energy-efficient buildings, from lighting to windows, from heating to cooling.  All of it.
 
     This is where we need you to push the envelope and ask just how efficient can our buildings be.  Can they be self-sufficient, producing just as much energy as they consume?  What new discoveries can we make?  And soon you’ll have a new place to answer these questions, a clean energy campus in the Philadelphia Navy Yard.
 
     Now, this campus will be the product of a true collaboration.  What, Penn State, you have done is develop an innovative model for how to do research.  Government pulled resources from across different agencies to support your effort, from programs that train new workers and skills to loans for small businesses that will grow
 
 
and programs that train new workers and skills to loans for small businesses that will grow from your breakthroughs.
 
Private sectors are already pitching in to help.  So IBM is providing supercomputers.  Bayer MaterialScience is providing materials for insulation and facades that save energy.  PPG Industries is providing walls that reflect sunlight and windows that reflect infrared.  Building this campus will support jobs in all of these businesses, and the discoveries made on this campus will lead to even more jobs -- jobs in engineering; jobs in manufacturing; jobs in construction; jobs in installation; jobs in retail.
 
     And they’ll be more than jobs that help support families; they’ll be jobs with a national purpose.  Jobs that make our economy smarter, jobs that make our planet safer, jobs that maintain America’s competitive edge in the 21st century.  (Applause.)
 
     Now, as any scientist will tell you, it’s often a challenge to commercialize research.  You come up with a great idea, but moving that new discovery from theory to practice or from the lab to the marketplace, that's a challenge.  So that's why today, here at Penn State, I’m announcing what we’re calling the Better Buildings Initiative, and it’s a plan to dramatically improve the energy efficiency of America’s businesses over the next decade.  (Applause.)
 
So by reaching this goal, we could save America’s businesses nearly $40 billion a year in their utility bills.  Think about that -- $40 billion.  That's money that could be spent growing those businesses and hiring new workers.
 
I’ll just take one extreme example -- the Empire State Building.  Right now its owners are investing in renovations that will reduce their energy consumption, and this investment will soon pay for itself and save them $4.4 million a year in energy costs.  That one building.
 
Now, granted, it’s a big building.  (Laughter.)  So most buildings aren’t as big.  They're not going to use as much energy as the Empire State Building.  But what we’re saying to people is if you’re willing to make your buildings more energy-efficient, we’ll provide new tax credits and financing opportunities for you to do so.  (Applause.)
 
And this plan would build on the HOMESTAR program we proposed last year, which would have provided rebates of up to $3,000 for homeowners to make their own homes more energy-efficient.  And these are upgrades that could save families hundreds of dollars each year in energy costs.
 
See, the problem for both homeowners and businesses is they’ll recover the money that they make by lowering their utility bills, but they may not have the cash upfront.  And if we can provide you -- if we can provide the American people an incentive, you’ll recover that money.  You’ll get it back.  And in the meantime, we’re making our entire economy more efficient. So steps like these also can boost manufacturing and private sector jobs.
 
So over the last two years we’ve offered similar incentives for cities and companies and clean energy manufacturers that wanted to help America become more energy-efficient.  I'll give you a couple of examples.  In Maryland, our program helped an energy-saving window manufacturer boost business by 55 percent.  In North Carolina, there's a company that makes energy-efficient lighting -- hired hundreds of new workers.  A company that manufacturers LEDs just down the road from here in Altoona saw their business increase by a million bucks.
 
     We’re also going to support state and local governments who come up with the best ideas to make energy-efficient buildings the norm.  So you show us the best ideas to change your game on the ground; we’ll show you the money.  (Applause.)  We will show you the money, states and local government.  (Applause.)
 
     To get the private sector to lead by example I’m also issuing a challenge to CEOs, to labor, to building owners, to hospitals, universities and others to join us.
 
     Now, tax credits mean lost revenue for Treasury.  It costs money.  Since we’ve got big deficits, we’ve got to pay for it.  So to pay for it, I’ve asked Congress to eliminate the billions in taxpayer dollars that we currently give to oil companies.  (Applause.)  They are doing just fine on their own.  (Laughter.) So it’s time to stop subsidizing yesterday’s energy; it’s time to invest in tomorrow’s.  It’s time to win the future.  That's what our project is.  (Applause.)
 
     Now, Penn State is a place that knows a little bit about playing to win.  Last I counted, Coach Paterno has got more than 400 wins under his belt.  (Applause.)  But your nation needs to win, too.  We need you to be as proud of what you do in the lab as you are of what your football team does on the field.  (Applause.)  We need you to seek breakthroughs and new technologies that we can’t even imagine yet.  And especially the young people who are here, we need you to act with a sense of urgency -- to study and work and create as if the fate of the country depends on you -- because it does.  It depends on you.  (Applause.)
 
     And if we’re harnessing all the energy in this room, all the young people in this audience, then I’m confident we’ll do it.  We can do this because what this university is going to lead will be more than a pioneering research center or an economic engine for Pennsylvania and America for years to come.  What you’re going to do is lead a modern-day incubator for what sets us apart -- the greatest force that the world has ever known -- and that is the American ideal.  (Applause.)
 
     If you remember that and keep breaking new ground, if we as a country keep investing in you, I’m absolutely confident that America will win the future in this century, just like we did in the last.
 
     Thank you.  God bless you, and God bless the United States of America.

END
12:53 P.M. EST