Remarks by the President After Meeting with Apollo 11 Crew

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THE WHITE HOUSE

Office of the Press Secretary
__________________________________________________________________________
For Immediate Release July 23, 2009

REMARKS BY THE PRESIDENT
AT HEALTH CARE REFORM TOWN HALL

Shaker Heights High School
Shaker Heights, Ohio

2:31 P.M. EDT

THE PRESIDENT: Hello, everybody. Thank you. Thank you. Thank, please, everybody have a seat. Thank you. Hello! (Applause.) Hello, Shaker Heights! Hello, Ohio! It is great to be here. There are a couple of quick acknowledgments I want to make. First of all, please give Rick a big round of applause for his introduction. (Applause.)

Some special guests that we've got. First of all, the governor of the great state of Ohio, Ted Strickland, is in the house. (Applause.) There he is right there. Your State Treasurer Kevin Boyce is here. (Applause.) Your Secretary of State Jennifer Brunner is here. (Applause.) The mayor of the great city of Cleveland, Frank Jackson, is here. (Applause.) Shaker Heights Mayor Earl Leiken is here. (Applause.) The Shaker Heights school superintendent Mark Freeman is here. (Applause.)

Not here, but a couple of my favorite people: Congresswoman Marcia Fudge and Sherrod Brown couldn't be here today. They've got work to do in Washington. (Applause.)

It is good to be back in the great state of Ohio. (Applause.) Now, I know there are those who like to report on the back-and-forth in Washington. But my only concern is the people who sent us to Washington -- the families feeling the pain of this recession; the folks I've met across this country who have lost jobs and savings and health insurance but haven't lost hope; the citizens who defied the cynics and the skeptics -- who went to the polls to demand real and lasting change. Change was the cause of my campaign; it is the cause of my presidency.

And when my administration came into office, we were facing the worst economy since the Great Depression. We were losing an average of 700,000 jobs per month. Hundreds of thousands of Ohioans have felt that pain firsthand. Our financial system was on the verge of collapse, meaning families and small businesses couldn't get the credit they need. And experts were warning that there was a serious chance that our economy could slip into a depression. But because of the action we took in those first weeks, we've been able to pull our economy back from the brink.

Now that the most immediate danger has passed, there are some who question those steps. So let me report to you exactly what we've done.

We passed a two-year Recovery Act that meant an immediate tax cut for 95 percent of Americans and small businesses -- 95 percent. (Applause.) It extended unemployment insurance and health coverage for those who lost their jobs in this recession. (Applause.) It provided emergency assistance to states like Ohio to prevent even deeper layoffs of police officers and firefighters and teachers and other essential personnel. (Applause.) At the same time, we took needed steps to keep the banking system from collapsing, to get credit flowing again, and to help responsible homeowners -- hurt by falling home prices -- to stay in their homes.

In the second phase, we're now investing in projects to repair and upgrade roads and bridges, ports and water systems -- and in schools and clean energy initiatives throughout Ohio and all across the country. These are projects that are creating good jobs and bring lasting improvements to our communities and our country.

There's no doubt that the steps we've taken have helped stave off a much deeper disaster and even greater job loss. They've saved and helped create jobs and have begun to put the brakes on this devastating recession. But I know that for the millions of Americans who are looking for work, and for those who are struggling in this economy, full recovery can't come soon enough.

I hear from you at town hall meetings like this. I read your letters. The stories I hear are the first thing that I think about in the morning; they're the last thing I think about at night. They're the focus of my attention every waking minute of every day. The simple truth is that it took years to get into this mess, and it will take more than a few months to dig our way out of it. (Applause.) But I want to promise you this, Ohio, we will get there -- (applause) -- and we are doing everything in our power to get our people back to work. (Applause.)

AUDIENCE MEMBER: We love you, Barack!

THE PRESIDENT: I love you back. (Laughter and applause.)

We also have to do more than just rescue this economy from recession; we need to address the fundamental problems that allowed this crisis to happen in the first place. Otherwise, we'd be guilty of the same short-term thinking that got us into this mess. That's what Washington has done for decades. We put things off. And that's what we have to change.

Now is the time to rebuild this economy stronger than before. Strong enough to compete in the 21st century. Strong enough to avoid the waves of boom and bust that have time and time again unleashed a torrent of misfortune on middle-class families across the country. That's why we're building a new energy economy that will unleash the innovative potential of America's entrepreneurs -- and create millions of new jobs -- helping to end our dependence on foreign oil. (Applause.) We are -- we're transforming our education system, from cradle to college, so that this nation once again has the best-educated workforce on the planet. (Applause.) We are pursuing health insurance reform so that every American has access to quality, affordable health coverage. (Applause.)

I want to talk about health care just for a second. I want to be clear: Reform isn't just about the nearly 46 million Americans without health insurance. I realize that with all the charges and the criticism being thrown out there in Washington, many Americans may be wondering, "Well, how does my family, or my business, stand to benefit from health insurance reform? What's in this for me?" Folks are asking that, so I want to answer those questions briefly.

If you have health insurance, the reform we're proposing will give you more security. You just heard Rick's story. Reform will keep the government out of your health care decisions, giving you the option to keep your coverage if you're happy with it. So don't let folks say that somehow we're going to be forcing government-run health care. It's just not true. And it will keep the insurance companies out of your health care decisions, too -- (applause) -- by stopping insurers from cherry-picking who they cover, and holding insurers to a higher standard for what they cover. (Applause.)

You won't have to worry about receiving a surprise bill in the mail, because we'll limit the amount your insurance company can force you to pay out of your own pocket. (Applause.)

You won't have to worry about preexisting conditions, because -- (applause) -- never again will anyone in America be denied coverage because of a previous illness or injury. (Applause.)

You won't have to worry about losing coverage if you lose or leave your job, because every American who needs insurance will have access to affordable plans through a health insurance exchange -- a marketplace where insurance companies will compete to cover you, not to deny you coverage. (Applause.)

And if you run a small business and you're looking to provide insurance for your employees, you'll be able to choose a plan through this exchange, as well. I've heard from small business owners across America trying to do the right thing, but year after year premiums rise higher and choices grow more limited. And that's certainly true right here in Ohio.

Now, if you're a taxpayer concerned about deficits, I want you to understand I'm concerned about deficits, too. Because in the eight years before we came into office, Washington enacted two large tax cuts, primarily for the wealthiest Americans, added a prescription drug benefit to Medicare, funded two wars -- all without paying for it -- (laughter and applause) -- didn't pay for it. The national debt doubled. We were handed a $1.3 trillion deficit when we walked in the door -- one we necessarily had to add to in the short term to deal with this financial crisis.

Now, I have to tell you, I have to say, that folks have a lot of nerve who helped get us into this fiscal hole and then start going around trying to talk about fiscal responsibility. (Applause.) I'm always a little surprised that people don't have a little more shame -- (laughter) -- about having created a mess and then try to point fingers, but that's another topic. (Laughter.)

Because the truth is, is that I am now President and I am -- (applause) -- and I am responsible, and together we have to restore a sense of responsibility in Washington. (Applause.) We have to do what businesses and families do -- we've got to cut out the things we don't need to pay for the things we do.

And that's why I pledged that I will not sign health insurance reform -- as badly as I think it's necessary, I won't sign it if that reform adds even one dime to our deficit over the next decade -- and I mean what I say. (Applause.)

Now, we have estimated that two-thirds of the cost of reform to bring health care security to every American can actually be paid for by reallocating money that's already in the system but is being wasted in federal health care programs. So let me repeat what I just said: About two-thirds of health care reform can be paid for not with new revenues, not with tax hikes, just with taking money that's not being spent wisely and moving it into things that will actually make people healthy.

And that includes, by the way -- right now we spend more than $100 billion in unwarranted subsidies that go to insurance companies as part of Medicare -- subsidies that do nothing to improve care for our seniors. We ought to take that money and use it to actually treat people and cover people, not to line pockets of insurers. (Applause.) And I'm pleased that Congress has already embraced these proposals. And while they're currently working through proposals to finance the remaining costs, I continue to insist that health care reform not be paid for on the backs of middle-class families. (Applause.)

Now, in addition to making sure that this plan doesn't add to the deficit in the short term, the bill I sign must also slow the growth of health care costs, while improving care, in the long run.
I just came from the Cleveland Clinic where I toured the cardiac surgery unit, met some of the doctors who are achieving incredible results for their patients. There's important work being done there as well as at the University Hospitals and MetroHealth. (Applause.) And Cleveland Clinic has one of the best health information technology systems in the country. And that means they can track patients and their progress. It means that they can see what treatments work and what treatments are unnecessary. It means they can provide better care for patients. They don't have to duplicate test after test because it's all online. They can help patients manage chronic diseases like diabetes and high blood pressure and asthma and emphysema by coordinating with doctors and nurses both in the hospital and in the community.

And here's the remarkable thing: They actually have some of the lowest costs for the best care. That's the interesting thing about our health care system. (Applause.) Often, better care produces lower, not higher, expenses, because better care leads to fewer errors that cost money and lives. You, or your doctor, don't have to fill out the same form a dozen times. Medical professionals are free to treat people -- not just illnesses. And patients are provided preventive care earlier -- like mammograms and physicals -- to avert more expensive and invasive treatment later.

That's why our proposals include a variety of reforms that would save both money and improve care -- and why the nation's largest organizations representing doctors and nurses have embraced our plan. Our proposals would change incentives so that doctors and nurses finally are free to give patients the best care, not just the most expensive care. And we also want to create an independent group of doctors and medical experts who are empowered to eliminate waste and inefficiency in Medicare -- a proposal that could save even more money.

So overall, our proposals will improve the quality of care for our seniors, save them thousands of dollars on prescription drugs, and that, by the way, is why AARP has endorsed our reform efforts, as well. (Applause.)

So the fact is, lowering costs is essential for families and businesses here in Ohio and all across the country. Let's take the Ohio example -- over the past few years premiums have risen nearly nine times faster than wages. That's something that Rick and his wife understand very well. As we meet today, we're seeing double-digit rate increases on insurance premiums all over America. There are reports of insurers raising rates by 28 percent in California; seeking a 23 percent increase in Connecticut; proposing as much as a 56 percent increase in Michigan. If we don't act, these premium hikes will just be a preview of coming attractions. And that's a future you can't afford. That is a future that America can't afford.

We spend one of every six of our dollars on health care in America, and that's on track to double in the next three decades. The biggest driving force behind our federal deficit is the skyrocketing cost of Medicare and Medicaid. Small businesses struggle to cover workers while competing with large businesses. Large businesses struggle to cover workers while competing in the global economy. And we'll never know the full cost of the dreams put on hold, the entrepreneurial ideas that are allowed to languish, the small businesses never founded -- because of the fear of being without insurance, or having to pay for a policy on your own.

So, Ohio, that's why we seek reform. And in pursuit of this reform we've forged a consensus that has never before been reached in the history of this country. Senators and representatives in five committees are working on legislation; three have already produced a bill. Health care providers have agreed to do their part to reduce the rate of growth in health care spending. Hospitals have agreed to bring down costs. The drug companies have agreed to make prescription drugs more affordable for seniors. The American Nurses Association, the American Medical Association, representing millions of nurses and doctors who know our health care system best, they've announced their support for reform. (Applause.)

So we have never been closer -- we have never been closer to achieving quality, affordable health care for all Americans. But at the same time, there are those who would seek to delay and defeat reform -- is that the air-conditioning? (Laughter.) That's good. It's a little warm. (Applause.) You can still hear me, though.

You know, we had one Republican strategist who told his party that even though they may want to compromise, it's better politics to "go for the kill." Another Republican senator said that defeating health reform is about "breaking" me -- when it's really the American people who are being broken by rising health care costs and declining coverage. (Applause.) You know, the Republican -- the Republican Party chair, seeking to stall our efforts, recently went so far as to say that health insurance reform was happening "too soon."

Well, first of all, let me just be clear. If there's not a deadline in Washington, nothing happens. (Laughter.) Nothing ever happens. And, you know, we just heard today that, well, we may not be able to get the bill out of the Senate by the end of August -- or the beginning of August. That's okay. I just want people to keep on working. Just keep working. (Applause.) I want the bill to get out of the committees; and then I want that bill to go to the floor; and then I want that bill to be reconciled between the House and the Senate; and then I want to sign a bill. And I want it done by the end of this year. (Applause.) I want it done by the fall. (Applause.)

Whenever I hear people say that it's happening too soon, I think that's a little odd. We've been talking about health care reform since the days of Harry Truman. (Laughter.) How could it be too soon? I don't think it's too soon for the families who've seen their premiums rise faster than wages year after year. It's not too soon for the businesses forced to drop coverage or shed workers because of mounting health care expenses. It's not too soon for taxpayers asked to close widening deficits that stem from rising health care costs -- costs that threaten to leave our children with a mountain of debt.

Reform may be coming too soon for some in Washington, but it's not soon enough for the American people. (Applause.) We can get this done. We don't shirk from a challenge. (Applause.)

We can get this done. People keep on saying, wow, this is really hard, why are you taking it on? You know, America doesn't shirk from a challenge. We were reminded of that earlier this week, when Americans and people all over the world marked the 40th anniversary of the moment that the astronauts of the Apollo 11 walked on the surface of the moon. It was the realization of a goal President Kennedy had set nearly a decade earlier. Ten years earlier he'd said we're going to the moon. And there were times where people said, oh, this is foolish, this is impossible. But President Kennedy understood and the American people set about proving what this nation is capable of doing when we set our minds to doing it.

There are those now who are seeing our failure to address stubborn problems as a sign that our best days are behind us; that somehow we've lost our sense of purpose, and toughness, and capacity to lead; that we can't do big things anymore. Well, I believe that this generation, like generations past, stand ready to defy the skeptics and the naysayers, that we can once again summon this American spirit. We can rescue our economy. We can rebuild it stronger than before. We can achieve quality, affordable health care for every single American. That's what we're called upon to do. That's what we will do with your help, Ohio. (Applause.) With your help. (Applause.)

All right, thank you.

All right. All right, this is the fun part where we get to ask questions. I'm going to -- I'm going to take off my jacket, guys, so if you want to do the same thing -- it's a little hot. (Applause.) All right. Now, here's how this is going to work. There are really no rules. We haven't asked -- you know, there's no preprogrammed questions. All you have to do is -- first of all, everybody should sit down. (Laughter.)

The second thing is, I'm just going to call on as many people as we can during the time that we have, and I'm going to -- just to make sure it's fair, I'm going to call on girl, boy, girl, boy. (Laughter.)

So just raise your hand if you've got a question. Try to keep the question relatively brief; I'll try to keep my answer relatively brief, and we'll try to get through as many as we can. And introduce yourself, if you don't mind. There are people in the audience with mics and so if you can wait for the microphone so you can introduce yourself and then ask the question so that everybody can hear you. Okay?

All right. This young lady right there in the colorful blouse right there -- that's you. Colorful dress.

Q Hello?

THE PRESIDENT: Hello.

Q Good afternoon, Mr. President. Thank you for taking my question. My name is Norma Goodman. My question regarding health care is twofold. It appears that your plan has the health care industry funding your health care reform, and I think you just alluded to that a little. It poses a concern for me -- I'm the owner of a Medicare-certified home care agency. And by the way, my agency wanted to invite you to come on a home visit with us. (Laughter.)

But your proposed budget includes drastic cuts to reimbursement. I feel that that threatens the -- you're shaking your head no?

THE PRESIDENT: I don't think so. I should point out, if I'm not mistaken, that the home care industry has actually endorsed this reform effort and are moving forward, but go ahead and finish your question.

Q Well, that is my concern, that your budget proposal has lined up, from MedPAC's recommendations, cuts for the next several years that will amount to, I don't know, $13 billion or something like that over the next few years.

THE PRESIDENT: Okay, well, let me just respond. The MedPAC idea is to have health care experts and doctors sit down and figure out how can we improve Medicare, how can we make it more cost-efficient. It is not an exercise in just cutting reimbursement rates. In fact, in some cases, we may need higher reimbursement rates for certain aspects. I actually think home care ends up being cost-efficient in many cases rather than institutional care -- and it helps keep people in their homes. (Applause.)

In rural communities, in rural communities, there are certain areas where doctors aren't reimbursed at an adequate level, and so you're seeing too many doctors leave those communities.

So what we do want to make sure of, though, is that we are, in our reimbursement systems, we're incentivizing smart things. So, for example, right now if a hospital is reimbursed for the number of tests that it does, then that may not give them much of an incentive to make their system more efficient so that once you take that first test and you've gone in the hospital, then you end up having that test sent around to everybody so you don't have to take five more tests. But right now the way the reimbursement system is set up, you don't have that incentive to just have the one test and then use information technology to distribute it throughout the system.

So those are the kinds of changes that we want to make. We think that the more that we're encouraging efficient, smart care, that's going to be good for providers, that's going to be good for patients, that'd actually freeze up more money so that we, in some cases, can provide higher reimbursements for folks who right now are not getting sufficient reimbursement. It's a matter of using the dollars that we're spending more wisely than we're spending them right now. Okay, all right.

Q Thank you.

THE PRESIDENT: Thank you.

Gentleman in the red right there.

Q Well, first, Mr. President, welcome to Shaker Heights.

THE PRESIDENT: Thank you.

Q The city that makes things work. (Laughter and applause.) My question and maybe my request is this: Are you willing to urge Senator Reid and Speaker Pelosi to stay in Washington and get this job done?

THE PRESIDENT: Well, I tell you what, I think Senator Reid said today that he thought that we can get this bill out of the Senate Finance Committee by the time of recess, and that in early fall they will come back and actually vote on the bill. Now, I haven't talked to him today.

My attitude is I want to get it right, but I also want to get it done promptly. And so as long as I see folks working diligently and consistently, then I am comfortable with moving a process forward that builds as much consensus as possible. What I don't want is what I referred to in my speech, delay for the sake of delay -- delay because people are worried about making tough decisions or casting tough votes. That's what I don't want to see.

So if people are legitimately working out tough problems -- and some of these problems are tough. I mean, this is a big system and it's complicated. So I have no problem if I think people are really working through these difficult issues and making sure that we get it right. But I don't want to delay just because of politics. And I have to tell you, sometimes delays in Washington occur because people just don't want to do anything that they think might be controversial.

And you know what? That's now how America has made progress in the past. Medicare was controversial. Social Security was controversial. People accused Franklin Delano Roosevelt of being a socialist because he wanted to set up a system to make seniors a little more secure. Going to the moon was controversial. But at some point, if we're going to move this country forward, we can't be afraid to change, especially a system that we know is broken. We've got to get it done and we've got to get it done soon. (Applause.)

All right. This young -- that lady right there, who's waving at me. (Laughter.)

Q Thank you very much. My name is Semanthie Brooks and I'm the director of Community Advocacy for the Benjamin Rose Institute in Cleveland.

THE PRESIDENT: Okay. (Applause.)

Q I also represent a group called Senior Voice and we, by the way, sent over 4,000 signatures to our congressional members asking their support of Medicare. And so my question is about Medicare and the doughnut hole in particular. We know that about 3.4 million seniors will fall into the doughnut hole on an annual basis. This represents about one in four seniors that will participate in the Part D program. When seniors fall into the doughnut hole, they then have to make choices about whether or not they take their medications; they break their pills in half; they make a decision about buying medication or purchasing food. My question to you, Mr. President, is that, will you support legislation that is currently being introduced in the House to close the doughnut hole over the next several years? (Applause.)

THE PRESIDENT: Well, I'm going to do more than that for you. In our health care reform proposal we have already extracted concessions from the pharmaceutical industry that we know will right away close half of that doughnut hole. They've already put $80 billion on the table. That's part of the reason AARP endorsed the bill.

Now, by the way, for those of you who don't know what the doughnut hole is, the way the Medicare prescription drug plan works is that it helps you pay for your prescription drugs until you hit a certain ceiling, a certain level of several thousand dollars, and then suddenly, the subsidies, the help from the federal government just go away. And you've got to pay out-of-pocket expenses of several more thousands of dollars until you get to the point where help kicks in again. So that's why they call it the doughnut hole, because there's a hole right in the middle where you don't get any help. And it costs seniors thousands of dollars.

One of the things that we can do through reform is to make sure that we are moving to close that doughnut hole. That's a commitment that will be contained in this health care reform bill that we get passed. (Applause.)

All right. This young man right here. We'll get a young guy in here.

Q Hi, Mr. President. My name is Brooks Boran (ph). I am going to be a junior in high school. My question is, for a student, how can we help get this reform passed? (Applause.)

THE PRESIDENT: Well, I appreciate that, I like that. Well, first of all, I very much appreciate that as a junior in high school you're still thinking about -- you're already thinking about this, because usually young people, they think they're indestructible so they don't need health care. (Laughter.) And in fact, a high proportion of the uninsured are actually young people, particularly right after they graduate from college, they haven't gotten a job yet that provides health care, and they are very vulnerable if, heaven forbid, something happens to them.

There have been a couple of ideas that we've talked about -- for example, extending the insurance of parents, making insurance companies provide -- keep kids on their insurance until they're 25. That would help a lot. (Applause.)

But the question you asked was how can you help get it done. Number one, make sure you're persuading your parents if they're not already convinced. But Mom is right there, so she's already on board. (Laughter.)

I think that activism right now, in calling your congress people, calling your senators, making sure they know this is important -- that's something that everybody here needs to do because, frankly, they are hearing from the other side. All those folks who are out there saying we can't afford this, this is socialism, this will lead to government-run health care; all the folks who are getting ginned up on talk radio and some of these cable news shows -- I have to say that they have an effect on members of Congress. It makes members of Congress nervous. So they need to hear from folks who are saying in a very common-sense way, this is something we can do.

It's going to be paid for. It is not going to add to the deficit. It will, in fact, control the deficit over the long term. And young people should particularly be concerned about that, because if health care inflation keeps going up at the rate that it is, you won't -- when your generation is running things -- won't be able to afford anything else in the federal budget. Medicare and Medicaid will consume all our health care dollars -- or all our federal dollars. That's a huge problem.

But the last thing I just want to emphasize to people, when you contact your senators, when you contact your members of Congress, make sure to make this a personal testimony. Tell your story about why you're concerned. Because sometimes these debates get so abstract, and I have to remind people -- you know, I get a story about a woman who contracts cancer, and suddenly not only is she worrying about her cancer, but she's also worrying about the $100,000 worth of unpaid medical bills that she's having to deal with and her family can't afford.

I hear from people who say, "I've always worked hard, I've always done well, I've got a good job. I left my job to start my business. Suddenly I find out I can't get health insurance because of a preexisting condition. And so I'm going to have to close up my business and I'm going to have to go back to doing something where I can get health insurance."

I mean, those stories, everybody knows them. And one of the things that I emphasized yesterday that people I think don't maybe think about enough is, if all that money is being eaten up in premiums, even if your employer is paying for them, guess what. That means that employer has got less money to give you a raise. So you wonder why, for the last 10 years, wages and incomes have been flat. If you look, on average, people haven't gotten a raise. Why is that? Well, part of it is because it's all been taken up in increased health care costs, even if the companies are profitable.

And, you know, the group that actually understands this best is folks who are members of unions because -- and the reason is, what happens? You guys go into negotiations, and your employer, even if they're well-meaning, even if they want to cooperate with the union, they say, "Look, guys, I can't afford to give you a raise -- I can't afford to raise the hourly wage because look at what's happened to my health care rates." And your whole negotiation ends up being how much more of a health care burden are you going to have to carry when you thought those benefits were already locked in.

So that's why health care reform is so important even if you've got health insurance, because it is taking money out of your pocket and it's leaving a lot of people in very dire straits. So, all right? (Applause.) Okay.

This young lady right here. There's a gentleman who is coming with a microphone.

Q Hello, Mr. President. I'm Dr. Diana Lee Macron (ph). And I have a question. The Republicans and some Democrats want to tax health care benefits. Using one of the local Council of Smaller Enterprise plans, an individual male would pay $1,500 at the age of 24; $5,200 at age 50; and almost $10,000 at age 60 for the same plan. For a female employee, it would cost $3,300 at age 24, and $6,400 at age 50. Family plans are more.

A tax credit can only benefit those who make enough money to use a tax credit. Most people don't need a tax credit. How would you make the taxing of benefits equitable to older and female workers?

THE PRESIDENT: Well, let me -- just to make sure I understand your question -- or I'll try to answer what I think your question was. First of all, in terms of taxing benefits, I said I oppose the taxing of health care benefits that people are already receiving, so that's not a proposal that I'm supportive of. (Applause.)

There is being discussed in the Senate Finance Committee the fact that some folks have Cadillac plans, meaning -- let's -- just to give you an example, the average member of Congress's plan, I think, is somewhere -- it's either $13,000 or $17,000 or $14,000; it's somewhere in that range. So that's a pretty good plan. That's what members of Congress get.

Now, what the Senate Finance Committee has been saying is maybe when you get to a $25,000 plan -- so one that's a lot more expensive and a lot fancier than the one that even members of Congress get -- maybe at that point what you should do is you should sort of cap the exclusion, the tax deduction, that is available so that we're discouraging these really fancy plans that end up driving up costs. That's the debate that's been taking place, and I think that is at least -- I haven't signed on to that approach, but I think it's a legitimate debate to have.

But what I said and I've taken off the table would be the idea that you just described, which would be that you would actually provide -- you would eliminate the tax deduction that employers get for providing you with health insurance, because, frankly, a lot of employers then would stop providing health care, and we'd probably see more people lose their health insurance than currently have it. And that's not obviously our objective in reform. Okay?

All right, let's see, this young man right here. He's got a bowtie on, he looks very sharp. (Applause.) Here, you can use my mic.

Q Hi, I'm Brandon Patterson and I'm Shaker Heights senior class president. And I want to say, on behalf of the entire -- (applause.) (Inaudible) -- but my question is -- she kind of touched on it earlier, and you kind of said that you're going to, with the health care, extend the age where we can go on our parents' health care. But we see that many states have passed reforms where they extended the age to 26 and 30 (inaudible) that we, at 19 -- or 29 -- that we still are the main -- the largest percent of people who do not have health insurance. So my question to you is actually, how can we be guaranteed?

THE PRESIDENT: Well, keep in mind that one way of dealing with this is having health insurance reform so that young people are covered under their parents' plan while they're in that transition period from college to a job.

But anybody under the plan that we proposed and actually we're seeing consensus in Congress about, anybody would be eligible to go ahead and get health insurance through what we're calling this exchange with subsidies with help from the federal government if you can't afford it, so that you'd still be able to get health insurance even if you're 20 or 21 or 22 as long as you are eligible financially. I mean, if you're LeBron James -- I love LeBron, but he doesn't need a subsidy from the federal government for health insurance. (Laughter.)

But assuming you're -- you qualify in terms of income, where you're a working person who's not making a lot of money, doesn't get health insurance on the job, regardless of age, you would then be eligible to go ahead and buy health insurance through this exchange. That's the whole idea, is that we're creating a system where anybody who doesn't have health insurance is able to go and look up and see these choices.

By the way, this exchange has a lot of private plan options in it, if that's what you prefer. And you could choose the plan that you think works best for you and we would then help you be able to purchase that insurance. And any insurer who was in the exchange would have to abide by certain rules, like you can't exclude people for preexisting conditions; like they can't just drop you if they decide that you get too sick; you can't lose your insurance just because you change jobs. Right? So we would be reforming the insurance industry and you would be able to get access for insurance that you could count on over the long term.

All right? Okay. It's a young lady's turn. Let's see -- I've sort of neglected I think way up there. All right, that young lady standing up right there -- no, no, no, I'm sorry, I know you're excited, but I was pointing at her right there. (Laughter.) But I love you too, though. (Laughter.) Okay, right there -- yes. No, right there -- yes.

Q Me?

THE PRESIDENT: You, yes.

Q Thank you, Mr. President. My name is Aimee Vance. I'm an RN that works for the Cleveland Clinic and Community Outreach. We serve the uninsured and are doing some great things there. This is Connie Robinson; she's a counselor also that works with me. (Laughter.) My question is, in the health care reform bill that you are putting together, are there going to be provisions for insurance companies to get paid for providing health education and health promotion type of things for their people as well as more help with mental health services, because it's a huge deficit. (Applause.)

THE PRESIDENT: Well, I've long been a supporter of mental health services as part of a package and I think that's important, but I really want to focus on, in addition, what you just mentioned, which is issues of prevention and wellness. This can make such a huge difference and, you know, I was meeting with some of the officers here at the Cleveland Clinic -- they're all sitting up front here; very serious guys, they do outstanding work.

One of the things that's exciting, though, in addition to the big fancy hospital with all the fancy equipment, they've also -- are linked up with all these family clinics all throughout the area. And one of the things that a clinic and a family physician can do is to focus on preventable diseases, making sure that you are helping somebody with a nutritionist to keep their weight down before they get diabetes as opposed to, you know, paying for a surgery for a foot amputation. (Applause.) If they already have diabetes, then having a counselor who's working with them monthly to make sure that they are maintaining the regimens to keep their diabetes under control -- that is cost-efficient.

But the problem is, right now, that a lot of the health system doesn't reimburse and incentivize that kind of preventive work and that wellness work. And so what we want to do is absolutely in this reform package, there will be reimbursements for and incentives for prevention and wellness, and we're going to make sure that those are the things that don't require out-of-pocket costs for the patient so that they're not being discouraged from using it, but rather they're being encouraged from using it -- that will make all the difference in the world. (Applause.)

All right. How much time we have? Okay, I've got time -- I'm sorry, guys -- I only have time for one more question. One more question. And I've got to say, I apologize, guys, but I'm going to go with -- I'm going to go with another young person here -- this young man right there, who's got a jacket on, so he's looking very sharp. (Laughter and applause.) Thanks for dressing up, guys -- you got the bowtie, you got the jacket. I didn't dress that good when I was their age. (Laughter.)

Q Thank you, Mr. President. My name is Parker Smith. I'm 14 years old; I'm going to be a freshman here.

THE PRESIDENT: Okay, Parker.

Q All right. How can you reassure many Americans around the country that your health care proposal isn't too much, too fast?

THE PRESIDENT: Well, I think that's a great question. That's a great question. (Applause.) First of all, I do think that sometimes people get the idea -- you know, I had said, let's get this done by August. Now, what I was referring to is, let's get bills voted out of the House and the Senate by August. That still means that we'd have to come back in the fall; we'd have to reconcile the differences between the Senate bill and the House bill; have a new bill; it would go back to the Senate and the House again to be voted on; then finally come to my desk. Our target date is to get this done by the fall. That's the bottom line. But keep in mind that even if we got it done in the fall, most of these changes would be phased in over several years. So it's not as if you're going to wake up tomorrow and suddenly the health care system is all changed completely. We are going to phase this in, in an intelligent, deliberate way.

But there are some changes that I think have to take effect pretty quick; for example, making sure that we're reducing prescription drugs for seniors. We shouldn't have to wait a long time to get that done. (Applause.) We shouldn't have to wait a long time to make sure that people don't lose their insurance because of a preexisting condition. There are some things that I think that we can start implementing where there's a pretty broad consensus it needs to get done.

Now, is it too much? I don't think it's too much. It's only too much by the standards of Washington politics today, which is basically that anything just becomes this big tangle of who's up and who's down, and who's advantaged and who's not, and the special interests and the lobbyists are all scurrying around. By that standard -- I know I'm working people pretty hard up on Capitol Hill -- but you know what, this is not too much.

What we're talking about is not completely scrapping the existing health care system. All we're saying is if you've got health insurance, you can keep it. If you don't have health insurance, you can now afford to buy it with some help. If you have health insurance, we're going to reform the insurance industry so that it can still make a profit, it can still offer good services to its patients -- or to its customers; it just can't engage in some of these rules that basically have them collecting a lot of premiums but not wanting to pay out when people really need it and when people get sick. (Applause.)

So -- and what we want to do -- now, here's what is complicated, is changing the delivery systems so that we actually start getting more quality for less money. That's going to take some time. It's not going to happen overnight.

The reason I visited the Cleveland Clinic is because along with the Mayo Clinic, they have been able to drive down costs more than any other health care system out there, while maintaining some of the highest quality.

Now, when I asked how did you go about doing it, well, they started this thing -- when was it started, Cleveland Clinic? 1921. And they -- what they've done is -- for example, doctors who are part of the Cleveland Clinic get paid a salary instead of being paid fee-for-service. So that makes it easier for them to make some of these changes, because people don't feel like maybe they're losing some money out of pocket; they just know that they're getting a salary.

Now, that's not maybe the thing that every doctor is going to want to do. But there are other ways that we can take that same approach where they start thinking in terms of what's needed for the patient, and making sure that they're getting reimbursed for what's good for the patient, and they don't then have to worry about what's the government saying, or what's the insurance company saying; am I going to get reimbursed for this, am I not going to get reimbursed for this, do I have to fill out 15,000 forms.

I've said before, most people who are doctors or nurses, they didn't get into it to fill out forms; they got into it to make people feel better, to heal the sick, and that's what we want to free them up to do, but it will take a little time to get there. (Applause.)

So, all right, everybody, stay on your members of Congress. Keep up the heat. We've got to get this done. Thank you. Love you. Bye. (Applause.)

END 3:25 P.M. EDT

THE WHITE HOUSE

Office of the Vice President
___________________________________________________________
For Immediate Release July 23, 2009

REMARKS BY THE VICE PRESIDENT
TO THE GEORGIAN PARLIAMENT

Parliament Hall
Tbilisi, Georgia

VICE PRESIDENT BIDEN: Thank you. (Applause.) Mr. Speaker, ladies and gentlemen of the Parliament, distinguished leaders, friends all, I thank you for this great honor. I do consider it an honor to be given the floor in your Parliament.

I speak not only on behalf of myself as Vice President, but I speak for my President, President Obama, as well as my country. I come here on behalf of the United States with a simple, straightforward message: We, the United States, stand by you on your journey to a secure, free and democratic, and once again united, Georgia. (Applause.)

It’s a journey nearly a century in the making. In May of 1918, the National Council of Georgia -- this very body, under a different name -- declared independence, much as my own nation did 150 years before that. Three years later, you adopted a constitution, a brave declaration of your freedom and independence, even under the imminent threat of an attack.

One month later, the Bolshevik occupation was complete, and this parliament met for the last time until the end of the century. It was a journey halted before it began. But the journey renewed in 1989, as the cries for freedom rang throughout Georgia once again, only to be stopped one more time by the last grasp of a dying empire. Two years later, you declared your independence again, and a seed planted generations before became a rose about to bloom.

Georgia’s first post-Soviet experiment with democracy was tainted with civil strife, economic hardship, growing corruption, and a backward drift toward undemocratic rule. Then, just six years ago, the Rose Revolution sounded a clarion call for freedom and democracy that was literally heard around the world.

I still draw inspiration from that moment and the journey you have taken. I remember watching in awe as you stood straight and tall. So did millions of people around the world whose quest for freedom is not yet complete.

One year ago, as the Speaker referenced, I came to Georgia under very different circumstances. I was advised by many not to come. I was told that it wasn't a particularly opportune moment. But I wanted to make clear why your independence was so important to my country and the world. Instead of standing in your parliament, I sat on the rooftop of a restaurant with President Saakashvili, as the sound of artillery fire and fighter aircraft punctuated the night.

On that rooftop, I pledged America's support to Georgia in my status as the United States Senate. And I here today pledge it again, as Vice President of the United States of America. (Applause.) I pledge it not only on my behalf, but on behalf of President Barack Obama.

This visit, Tbilisi -- to Tbilisi, comes deliberately right after President Obama’s trip to Moscow, for as he was planning his trip -- (applause) -- as he was planning his trip, he instructed me to plan my trip to Tbilisi.

Ladies and gentlemen -- and I know that some are concerned, and I understand it, that our efforts to reset relations with Russia will come at the expense of Georgia. Let me be clear: They have not, they will not, and they cannot. (Applause.)

As I said in Munich in the first days after our administration was sworn in, and as President Obama, I might add, reasserted two weeks ago in Moscow, we stand by the principle that sovereign democracies have the right to make their own decisions, and choose their own partnerships and their own alliances. We stand against the 19th century notion of spheres of influence. It has no place in the 21st century. (Applause.)

We will not -- we will not recognize Abkhazia and South Ossetia as independent states. (Applause.) And we urge -- we urge the world not to recognize them as independent states. And we call upon Russia to honor its international commitments clearly specified in the [ *sic] 12 ceasefire agreement, including withdrawal of all forces to their pre-conflict positions, and ultimately out of Georgia. (Applause.)

And we support the expansion of international monitors throughout Georgia to promote peace and stability. During my visit last year, I was moved by the plight of families displaced from their homes in South Ossetia. And I was struck by the effort to undermine your economy by targeting critical infrastructure deep within Georgia.

I promised that my country would provide meaningful assistance to Georgia to help you recover. And today, I am pleased to say that the United States has delivered on that commitment I made of $1 billion.

Ladies and gentlemen, since August, we have provided supplies and shelter to those displaced, budgetary support to help your government meet its fiscal responsibilities, reconstruction aid to help those who were able to return home, and funding for roads and energy security; and new resources to strengthen Georgia’s civil society, legal system and independent media.

All in all, Georgia today is one of the highest per-capita recipients of U.S. aid in the entire world. Even where I come from, a billion dollars for 5 million people is a lot of money. We are also working closely with Georgia to modernize your military, with a focus on training, planning and organization.

We understand that Georgia aspires to join NATO. We fully support that aspiration. (Applause.) And, members of Parliament, we will work to help you meet the standards of NATO membership.

I am pleased that just last month, the U.S. and Georgia launched a Charter on Strategic Partnership. We set an ambitious agenda across four key areas: defense and security; economic trade, and energy cooperation; advancing democracy and the rule of law; and strengthening cultural ties between our countries.

Let me be clear about what our strategic partnership with Georgia is, and what it is not. The United States has no desire to create our own sphere of influence in this region or anywhere else in the world. Our goal is to help build a multi-partner world in which nations make common cause of common concerns.

These partnerships are not being built against anyone. They are being built to the benefit of everyone who seeks a more democratic, prosperous and secure world. (Applause.)

With Georgia, our partnership involves meeting security challenges -- we are grateful, truly grateful that Georgian soldiers will stand next to our brave Marines in Afghanistan. It includes a commitment to energy security, and we welcome Georgia’s role as a bridge for natural resources flowing from east to west, as it did a thousand years ago. (Applause.)

It carries with it -- this cooperation agreement -- a determination to build stronger bonds not only between our governments, but among our people through cultural exchanges, entrepreneurial collaboration, and civil society cooperation.

Our partnership rests on a foundation of shared democratic ideals. That's what you are about. And we will continue to support your work to fulfill the democratic promise of six years ago.

As President Saakashvili told Parliament earlier this week -- and we expect that he will keep that commitment -- that there is much more to be done. Your Rose Revolution will only be complete when government is transparent, accountable, and fully participatory; when issues are debated inside this chamber, not only out on the streets; when you fully address key constitutional issues regarding the balance of power between the parliament and the executive branch, and leveling your electoral playing field; when the media is totally independent and professional, providing people the information to make informed decisions, and to hold their government accountable for the decisions it makes; when the courts are free from outside influence and the rule of law is firmly established, and when the transfer of power occurs through peaceful, constitutional, and democratic processes, not on the street.

Ladies and gentlemen -- I don't mean to sound instructive -- never tell another person what their political interest is. But I can tell you from experience there is no specific checklist for democracy. But there are significant, concrete steps that need to be taken to deepen any democracy.

Success requires the involvement of everyone in this room, of those who were elected outside this room. It requires every Georgian citizen, regardless of their political affiliation or their ethnicity, to take part in their government.

And I especially today call upon the young people of Georgia, the next generation of Georgian leaders, to continue to contribute their ideas, their voices, and their energy to help create a peaceful, stable, democratic and economically prosperous Georgia. Only then -- only then will we see a Georgia that is the home to all its rightful citizens.

As difficult as this may be, I encourage you to keep the doors open to the Abkhaz and South Ossetians, so that they know they have other options besides the status quo. Instability or renewed conflict guarantees, in our view, a continuation of the unacceptable status quo, and it would discourage the foreign investment that is so essential to the economic growth and the economic progress you so badly need.

It is a sad certainty, but it is true there is no military option to reintegration, only peaceful and prosperous Georgia -- a peaceful and prosperous Georgia that has the prospect of restoring your territorial integrity by showing those in Abkhazia and South Ossetia, a Georgia where they can be free and their communities can flourish; where they can enjoy autonomy within a federal system of government, where life can be so much better for them than it is now. Show them the real benefits of your nation’s motto: Strength is in unity.

Ladies and gentlemen, ladies and gentlemen of the Parliament -- divided, Georgia will not complete its journey. United, Georgia can achieve the dreams of your forebears and, maybe more importantly, the hopes of your children.

I’ll end with a phrase -- a verse from maybe Georgia's most famous poet. When I was in the president's office I asked, "Who is that portrait of?" And he then gave me the history lesson on, again, maybe your most famous poet, a poet who inspired the journey of freedom in 1921 -- and continues to provide his voice today. And I want to make sure I get this right. He wrote: "My heart burns with a holy flame that all my strength I may employ, to serve my people faithfully in sorrow and in joy. O let my people's suffering be branded on my soul I ask, and let my heart, through good and ill, be equal to its task." (Applause.)

Ladies and gentlemen, my President and I, my country, we pray that your hearts are equal to the task. I know they are, and so do you. And thank you so very much for not only inspiring your own people in completing this journey, but for the inspiration you've provided for tens of millions of people seeking what you now have within your grasp. And it is yours to guarantee.

We will stand with you. Thank you very much. (Applause.)

*August

THE WHITE HOUSE

Office of the Press Secretary
___________________________________________________________________________
For Immediate Release July 23, 2009

NEWS CONFERENCE
BY THE PRESIDENT

East Room
July 22,2009

8:01 P.M. EDT

THE PRESIDENT: Good evening. Please be seated. Before I take your questions, I want to talk for a few minutes about the progress we're making on health insurance reform and where it fits into our broader economic strategy.

Six months ago, I took office amid the worst recession in half a century. We were losing an average of 700,000 jobs per month and our financial system was on the verge of collapse.

As a result of the actions we took in those first weeks, we've been able to pull our economy back from the brink. We took steps to stabilize our financial institutions and our housing market. And we passed a Recovery Act that has already saved jobs and created new ones; delivered billions in tax relief to families and small businesses; and extended unemployment insurance and health insurance to those who've been laid off.

Of course, we still have a long way to go. And the Recovery Act will continue to save and create more jobs over the next two years -- just like it was designed to do. I realize this is little comfort to those Americans who are currently out of work, and I'll be honest with you -- new hiring is always one of the last things to bounce back after a recession.

And the fact is, even before this crisis hit, we had an economy that was creating a good deal of wealth for those folks at the very top, but not a lot of good-paying jobs for the rest of America. It's an economy that simply wasn't ready to compete in the 21st century -- one where we've been slow to invest in clean energy technologies that have created new jobs and industries in other countries; where we've watched our graduation rates lag behind too much of the world; and where we spend much more on health care than any other nation but aren't any healthier for it.

That's why I've said that even as we rescue this economy from a full-blown crisis, we must rebuild it stronger than before. And health insurance reform is central to that effort.

This is not just about the 47 million Americans who don't have any health insurance at all. Reform is about every American who has ever feared that they may lose their coverage if they become too sick, or lose their job, or change their job. It's about every small business that has been forced to lay off employees or cut back on their coverage because it became too expensive. And it's about the fact that the biggest driving force behind our federal deficit is the skyrocketing cost of Medicare and Medicaid.

So let me be clear: If we do not control these costs, we will not be able to control our deficit. If we do not reform health care, your premiums and out-of-pocket costs will continue to skyrocket. If we don't act, 14,000 Americans will continue to lose their health insurance every single day. These are the consequences of inaction. These are the stakes of the debate that we're having right now.

I realize that with all the charges and criticisms that are being thrown around in Washington, a lot of Americans may be wondering, "What's in this for me? How does my family stand to benefit from health insurance reform?"

So tonight I want to answer those questions. Because even though Congress is still working through a few key issues, we already have rough agreement on the following areas:

If you have health insurance, the reform we're proposing will provide you with more security and more stability. It will keep government out of health care decisions, giving you the option to keep your insurance if you're happy with it. It will prevent insurance companies from dropping your coverage if you get too sick. It will give you the security of knowing that if you lose your job, if you move, or if you change your job, you'll still be able to have coverage. It will limit the amount your insurance company can force you to pay for your medical costs out of your own pocket. And it will cover preventive care like check-ups and mammograms that save lives and money.

Now, if you don't have health insurance, or you're a small business looking to cover your employees, you'll be able to choose a quality, affordable health plan through a health insurance exchange -- a marketplace that promotes choice and competition. Finally, no insurance company will be allowed to deny you coverage because of a preexisting medical condition. I've also pledged that health insurance reform will not add to our deficit over the next decade. And I mean it. In the past eight years, we saw the enactment of two tax cuts, primarily for the wealthiest Americans, and a Medicare prescription program -- none of which were paid for. And that's partly why I inherited a $1.3 trillion deficit.

That will not happen with health insurance reform. It will be paid for. Already we've estimated that two-thirds of the cost of reform can be paid for by reallocating money that is simply being wasted in federal health care programs. This includes over $100 billion of unwarranted subsidies that go to insurance companies as part of Medicare -- subsidies that do nothing to improve care for our seniors. And I'm pleased that Congress has already embraced these proposals. While they're currently working through proposals to finance the remaining costs, I continue to insist that health reform not be paid for on the backs of middle-class families.

In addition to making sure that this plan doesn't add to the deficit in the short term, the bill I sign must also slow the growth of health care costs in the long run. Our proposals would change incentives so that doctors and nurses are free to give patients the best care, just not the most expensive care. That's why the nation's largest organizations representing doctors and nurses have embraced our plan.

We also want to create an independent group of doctors and medical experts who are empowered to eliminate waste and inefficiency in Medicare on an annual basis -- a proposal that could save even more money and ensure long-term financial health for Medicare. Overall, our proposals will improve the quality of care for our seniors and save them thousands of dollars on prescription drugs, which is why the AARP has endorsed our reform efforts.

Not all of the cost savings measures I just mentioned were contained in Congress's draft legislation, but we're now seeing broad agreement thanks to the work that has done over the last few days. So even though we still have a few issues to work out, what's remarkable at this point is not how far we have left to go -- it's how far we've already come.

I understand how easy it is for this town to become consumed in the game of politics -- to turn every issue into a running tally of who's up and who's down. I've heard that one Republican strategist told his party that even though they may want to compromise, it's better politics to "go for the kill"; another Republican senator that defeating health care reform is about "breaking" me.

So let me be clear: This isn't about me. I have great health insurance, and so does every member of Congress. This debate is about the letters I read when I sit in the Oval Office every day, and the stories I hear at town hall meetings. This is about the woman in Colorado who paid $700 a month to her insurance company only to find out that they wouldn't pay a dime for her cancer treatment -- who had to use up her retirement funds to save her own life. This is about the middle-class college graduate from Maryland whose health insurance expired when he changed jobs and woke up from the emergency surgery that he required with $10,000 worth of debt. This is about every family, every business, and every taxpayer who continues to shoulder the burden of a problem that Washington has failed to solve for decades.

This debate is not a game for these Americans, and they can't afford to wait any longer for reform. They're counting on us to get this done. They're looking to us for leadership. And we can't let them down. We will pass reform that lowers cost, promotes choice, and provides coverage that every American can count on. And we will do it this year.

With that, I'll take your questions. And we are going to start off with Ben Feller of Associated Press.

Q Thank you, Mr. President. Congress, as you alluded to, is trying to figure out how to pay for all of this reform. Have you told House and Senate leaders which of their ideas are acceptable to you? If so, are you willing to share that stand of yours with the American people? And if you haven't given that kind of direction to congressional leaders, are you willing to -- are you willing to explain why you're not stepping in to get a deal done, since you're the one setting a deadline?

THE PRESIDENT: Well, before we talk about how to pay for it, let's talk about what exactly needs to be done. And the reason I want to emphasize this is because there's been a lot of misinformation out there.

Right now premiums for families that have health insurance have doubled over the last 10 years. They've gone up three times faster than wages. So what we know is that if the current trends continue, more and more families are going to lose health care, more and more families are going to be in a position where they keep their health care but it takes a bigger bite out of their budget, employers are going to put more and more of the costs on the employees or they're just going to stop providing health care altogether.

We also know that with health care inflation on the curve that it's on we are guaranteed to see Medicare and Medicaid basically break the federal budget. And we know that we're spending on average, we here in the United States are spending about $6,000 more than other advanced countries where they're just as healthy. And I've said this before -- if you found out that your neighbor had gotten the same car for $6,000 less, you'd want to figure out how to get that deal. And that's what reform is all about: How can we make sure that we are getting the best bang for our health care dollar?

Now, what we did very early on was say two-thirds of the costs of health care reform -- which includes providing coverage for people who don't have it, making it more affordable for folks who do, and making sure that we're over the long term creating the kinds of systems where prevention and wellness and information technologies make the system more efficient -- that the entire cost of that has to be paid for and it's got to be deficit-neutral. And we identified two-thirds of those costs to be paid for by tax dollars that are already being spent right now.

So taxpayers are already putting this money into the kitty. The problem is they're not getting a good deal for the money they're spending. That takes care of about two-thirds of the cost. The remaining one-third is what the argument has been about of late. What I've said is that there may be a number of different ways to raise money. I put forward what I thought was the best proposal, which was to limit the deductions, the itemized deductions, for the wealthiest Americans -- people like myself could take the same percentage deduction that middle-class families do and that would raise sufficient funds for that final one-third.

Now, so far we haven't seen any of the bills adopt that. There are other ideas that are out there. I continue to think my idea is the best one, but I'm not foreclosing some of these other ideas as the committees are working them through. The one commitment that I've been clear about is I don't want that final one-third of the cost of health care to be completely shouldered on the backs of middle-class families who are already struggling in a difficult economy. And so if I see a proposal that is primarily funded through taxing middle-class families, I'm going to be opposed to that because I think there are better ideas to do it.

Now, there are -- I have not yet seen what the Senate Finance Committee is producing. They've got a number of ideas, but we haven't seen a final draft. The House suggested a surcharge on wealthy Americans, and my understanding, although I haven't seen the final versions, is, is that there's been talk about making that basically only apply to families whose joint income is a million dollars.

To me, that meets my principle that it's not being shouldered by families who are already having a tough time, but what I want to do is to see what emerges from these committees, continuing to work to find more savings -- because I actually think that it's possible for us to fund even more of this process through identifying waste in the system, try to narrow as much as possible the new revenue that's needed on the front end, and then see how we can piece this thing together in a way that's acceptable to both Democrats and I hope some Republicans.

Q Is it your job to get a deal done?

THE PRESIDENT: Absolutely it's my job. I'm the President. And I think this has to get done. Just a broader point -- if somebody told you that there is a plan out there that is guaranteed to double your health care costs over the next 10 years, that's guaranteed to result in more Americans losing their health care, and that is by far the biggest contributor to our federal deficit. I think most people would be opposed to that. Well, that's the status quo. That's what we have right now.

So if we don't change, we can't expect a different result. And that's why I think this is so important, not only for those families out there who are struggling and who need some protection from abuses in the insurance industry or need some protection from skyrocketing costs, but it's also important for our economy.

And, by the way, it's important for families' wages and incomes. One of the things that doesn't get talked about is the fact that when premiums are going up and the costs to employers are going up, that's money that could be going into people's wages and incomes. And over the last decade we basically saw middle-class families, their incomes and wages flatlined. Part of the reason is because health care costs are gobbling that up.

And that's why I say if we can -- even if we don't reduce our health care costs by the $6,000 that we're paying more than any other country on Earth, if we just reduced it by $2,000 or $3,000, that would mean money in people's pockets. And that's possible to do.

But we're going to have to make some changes. We've got to change how health care is delivered to -- the health care delivery system works so that doctors are being paid for the quality of care and not the quantity of care. We've got to make information technology more effective. We've got to have the medical system work in teams so that people don't go through five different tests. Those are all critical to do, and we can do them.

Now, I understand that people are feeling uncertain about this, they feel anxious, partly because we've just become so cynical about what government can accomplish, that people's attitudes are, you know, even though I don't like this devil, at least I know it and I like that more than the devil I don't know. So folks are skeptical, and that is entirely legitimate because they haven't seen a lot of laws coming out of Washington lately that help them.

But my hope is, and I'm confident that when people look at the costs of doing nothing they're going to say, we can make this happen -- we've made big changes before that end up resulting in a better life for the American people.

David Alexander, Reuters.

Q Thank you, Mr. President. You've been pushing Congress to pass health care reform by August. Why the rush? Are you worried that if you don't -- there's a delay until the fall, the whole effort will collapse?

THE PRESIDENT: A couple of points. Number one, I'm rushed because I get letters every day from families that are being clobbered by health care costs. And they ask me, can you help? So I've got a middle-aged couple that will write me and they say, our daughter just found out she's got leukemia and if I don't do something soon we just either are going to go bankrupt or we're not going to be able to provide our daughter with the care that she needs. And in a country like ours, that's not right. So that's part of my rush.

The second thing is the fact that if you don't set deadlines in this town things don't happen. The default position is inertia. Because doing something always creates some people who are unhappy. There's always going to be some interest out there that decides, you know what, the status quo is working for me a little bit better. And the fact that we have made so much progress where we've got doctors, nurses, hospitals, even the pharmaceutical industry, AARP, saying that this makes sense to do, I think means that the stars are aligned and we need to take advantage of that.

Now, I do think it's important to get this right. And if at the end of the day I do not yet see that we have it right then I'm not going to sign a bill that, for example, adds to our deficit; I won't sign a bill that doesn't reduce health care inflation so that families as well as government are saving money. I'm not going to sign a bill that I don't think will work. And my measure of whether things work or not are listening to the American people but also listening to health care experts who have shown that in some communities, health care is cheaper and delivers a better result. I think we can achieve that.

So I'm confident that if we just keep at it, we keep working, we're diligent, we're honest, if we take criticisms that are out there and modify whatever plans are already working through Congress so that it meets those concerns and those criticisms, that we can arrive at a bill that is going to improve the lives of the American people.

And I'll give you one specific example. I think that there was legitimate concern that we had not incorporated all of the measures that could reduce health care inflation over the long term in some of the versions of health care reform that were coming out of the committee. Well, over the last week, working with not only health care experts but also members of Congress who are concerned about this, we actually have now gotten a commitment to incorporate an idea that has a panel of doctors and health care experts advising on how we can get a better value for our money in Medicare. And every expert out there says this can be a valuable tool to start reducing inflation over the long term.

So can I say this, though -- if we hadn't had any kind of deadline, that change probably would have never surfaced until who knows when. And so I want to do this right, but the American people need some relief.

Chuck Todd.

Q Thank you, sir. You were just talking in that question about reducing health care inflation, reducing costs. Can you explain how you're going to expand coverage? Is it fair to say -- is this bill going to cover all 47 million Americans that are uninsured, or is this going to be something -- is it going to take a mandate, or is this something that isn't -- your bill is probably not going to get it all the way there? And if it's not going to get all the way there, can you say how far is enough -- you know, okay, 20 million more, I can sign that; 10 million more, I can't?

THE PRESIDENT: I want to cover everybody. Now, the truth is that unless you have a what's called a single-payer system in which everybody is automatically covered, then you're probably not going to reach every single individual, because there's always going to be somebody out there who thinks they're indestructible and doesn't want to get health care, doesn't bother getting health care, and then unfortunately when they get hit by a bus end up in the emergency room and the rest of us have to pay for it.

But that's not the overwhelming majority of Americans. The overwhelming majority of Americans want health care, but millions of them can't afford it. So the plan that has been -- that I've put forward and that what we're seeing in Congress would cover -- the estimates are at least 97 to 98 percent of Americans.

There might still be people left out there who, even though there's an individual mandate, even though they are required to purchase health insurance, might still not get it, or despite a lot of subsidies are still in such dire straits that it's still hard for them to afford it, and we may end up giving them some sort of hardship exemption.

But -- I'm sorry, go ahead -- so I think that the basic idea should be that in this country, if you want health care, you should be able to get affordable health care.

And given the waste that's already in the system right now, if we just redesign certain elements of health care, then we can pay for that. We can pay for it in the short term, but we can also pay for it in the long term. And, in fact, there's going to be a whole lot of savings that we obtain from that because, for example, the average American family is paying thousands of dollars in hidden costs in their insurance premiums to pay for what's called uncompensated care -- people who show up at the emergency room because they don't have a primary care physician.

If we can get those people insured, and instead of having a foot amputation because of advanced diabetes they're getting a nutritionist who's working with them to make sure that they are keeping their diet where it needs to be, that's going to save us all money in the long term.

Q Back to the politics of it. You mentioned two Republicans in your opening statement, but you have 60 Democratic seats, a healthy majority in the House. If you don't get this, isn't this a fight inside the Democratic Party, and that Republicans really aren't playing -- you can't really blame the Republicans for this one?

THE PRESIDENT: Well, first of all, you haven't seen me out there blaming the Republicans. I've been a little frustrated by some of the misinformation that's been coming out of the Republicans, but that has to do with, as you pointed out, politics. You know, if you've got somebody out there saying -- not that let's get the best bill possible but instead says, you know, let's try to beat this so we can gain political advantage -- well, that's not I think what the American people expect.

I am very appreciative that people like Chuck Grassley on the Finance Committee in the Senate, people like Mike Enzi, people like Olympia Snowe, have been serious in engaging Democrats in trying to figure out how do we actually get a system that works. And even in those committees where you didn't see Republican votes, we've seen Republican ideas. So, for example, in the HELP Committee in the Senate, 160 Republican amendments were adopted into that bill because they've got good ideas to contribute.

So the politics may dictate that they don't vote for health care reform because they think, you know, it'll make Obama more vulnerable. But if they've got a good idea we'll still take it. And in terms of Democrats, the fact of the matter is that because this is a big issue, I think that a lot of Democrats have a lot of different ideas -- some of them have to do with regional disparities. For example, you've got some Democrats who are concerned that the Medicare reimbursement rates in their communities are too low and so they'd like to see the bill incorporate higher rates for doctors and providers in rural communities to incentivize good care in those communities. That's a legitimate concern. But the minute you bring up that concern then that adds money, which means that we then have to find additional dollars.

So this is part of just the normal give-and-take of the legislative process. I'm confident at the end we're going to have a bill that Democrats and some Republicans support.

Jake.

Q Thank you, Mr. President. You said earlier that you wanted to tell the American people what's in it for them, how will their family benefit from health care reform. But experts say that in addition to the benefits that you're pushing there is going to have to be some sacrifice in order for there to be true cost-cutting measures, such as Americans giving up tests, referrals, choice, end-of-life care. When you describe health care reform you don't -- understandably you don't talk about the sacrifices that Americans might have to make. Do you think -- do you accept the premise that other than some tax increases on the wealthiest Americans, the American people are going to have to give anything up in order for this to happen?

THE PRESIDENT: They're going to have to give up paying for things that don't make them healthier. And I -- speaking as an American, I think that's the kind of change you want.

Look, if right now hospitals and doctors aren't coordinating enough to have you just take one test when you come in because of an illness, but instead have you take one test; then you go to another specialist, you take a second test; then you go to another special, you take a third test -- and nobody's bothering to send the first test that you took -- same test -- to the next doctors, you're wasting money.

You may not see it because if you have health insurance right now it's just being sent to the insurance company, but that's raising your premiums, it's raising everybody's premiums, and that money one way or another is coming out of your pocket -- although we are also subsidizing some of that because there are tax breaks for health care. So not only is it costing you money in terms of higher premiums, it's also costing you as a taxpayer.

Now, I want to change that. Every American should want to change that. Why would we want to pay for things that don't work, that aren't making us healthier? And here's what I'm confident about: If doctors and patients have the best information about what works and what doesn't, then they're going to want to pay for what works. If there's a blue pill and a red pill and the blue pill is half the price of the red pill and works just as well, why not pay half price for the thing that's going to make you well?

But the system right now doesn't incentivize that. Those are the changes that are going to be needed -- that we're going to need to make inside the system. It will require I think patients to -- as well as doctors, as well as hospitals -- to be more discriminating consumers. But I think that's a good thing, because ultimately we can't afford this. We just can't afford what we're doing right now.

And just to raise a broader issue that I think has colored how we look at health care reform, let me just talk about deficit and debt, because part of what's been happening in this debate is the American people are understandably queasy about the huge deficits and debt that we're facing right now. And the feeling is, all right, we had the bank bailout, we had the recovery package, we had the supplemental, we've got the budget, we're seeing numbers -- trillions here and trillions there. And so I think legitimately people are saying, look, we're in a recession, I'm cutting back, I'm having to give up things -- and yet all I see is government spending more and more money. And that argument I think has been used effectively by people who don't want to change health care to suggest that somehow this is one more government program. So I just want to address that point very quickly.

First of all, let's understand that when I came in we had a $1.3 trillion deficit -- annual deficit that we had already inherited. We had to immediately move forward with a stimulus package because the American economy had lost trillions of dollars of wealth; consumers had lost through their 401(k)s, through their home values, you name it, they had lost trillions of dollars. That all just went away. That was the day I was sworn in, it was already happening. And we had 700,000 jobs that were being lost.

So we felt it was very important to put in place a recovery package that would help stabilize the economy. Then we had to pass a budget, by law. And our budget had a 10-year projection -- and I just want everybody to be clear about this: If we had done nothing, if you had the same old budget as opposed to the changes we made in our budget, you'd have a $9.3 trillion deficit over the next 10 years. Because of the changes we've made it's going to be $7.1 trillion. Now, that's not good, but it's $2.2 trillion less than it would have been if we had the same policies in place when we came in.

So the reason I point this out is to say that the debt and the deficit are deep concerns of mine. I am very worried about federal spending. And the steps that we've taken so far have reduced federal spending over the next 10 years by $2.2 trillion. It's not enough. But in order for us to do more, we're not only going to have to eliminate waste in the system -- and by the way, we had a big victory yesterday by eliminating a weapons program, the F-22, that the Pentagon had repeatedly said we didn't need -- so we're going to have to eliminate waste there, we're going to have to eliminate no-bid contracts, we're going to have to do all kinds of reforms in our budgeting -- but we're also going to have to change health care. Otherwise we can't close that $7.1 trillion gap in the way that the American people want it to change.

So to all -- everybody who's out there who has been ginned up about this idea that the Obama administration wants to spend and spend and spend, the fact of the matter is, is that we inherited a enormous deficit, enormous long-term debt projections. We have not reduced it as much as we need to and as I'd like to, but health care reform is not going to add to that deficit; it's designed to lower it. That's part of the reason why it's so important to do, and to do now.

Chip Reid.

Q Thank you, Mr. President. On Medicare, there are obviously millions of Americans who depend on Medicare, and when you talk about bending the long-term cost down, or when you talk about cuts in the current proposal on Capitol Hill, you talk about cuts in Medicare and they talk about cuts in Medicare, but there are never many specifics. Specifically, what kind of pain, what kind of sacrifice, are you calling on beneficiaries to make? And even if not right away, aren't future beneficiaries going to be getting less generous benefits than today's?

THE PRESIDENT: No. No.

Q And a subsidiary question, what do you think about taking it out of the political realm and giving it to an outside body of experts to take the politics out of Medicare?

THE PRESIDENT: Well, on the second point, that's exactly what our proposal is. It -- called the MedPAC program. By the way, it was originally a Republican idea. I want to give credit where credit is due. The Republican Congress passed a bill that created a panel of health care experts to make recommendations to Congress on how we could get better quality, lower cost. The problem is every year it would just go on a shelf, and nobody would act on it.

So what we've said is let's give that body some power. Let's require Congress to vote on the proposals that they're making every year. Congress can still reject them, so it's not completely removing it from politics, but they have to reject or accept it as a package. And that I think would incentive and empower important changes.

But here's the thing I want to emphasize, Chip. It's not going to reduce Medicare benefits. What it's going to do is to change how those benefits are delivered so that they're more efficient.

Let me give you a very specific example. You've heard that as a consequence of our efforts at reform, the pharmaceutical industry has already said they're willing to put $80 billion on the table. Now, why is that? Well, the reason is, is because there's probably even more waste than $80 billion, in terms of how the drug plan in Medicare is administered. We might be able to get $100 billion out or more, but the pharmaceutical industry voluntarily said, here's $80 billion.

You know what that means? That means that senior citizens who right now have a so-called doughnut hole in their plan where after spending a certain amount on prescription drugs suddenly they drop off a cliff and they've got to pocket the entire cost, suddenly half of that is filled. That's a hard commitment that we already have.

So that's a change in how we are delivering Medicare. But you know what, it turns out that it means out-of-pocket savings for seniors. That's why AARP has endorsed this.

Christi Parsons.

Q Thank you. During the campaign you promised that health care negotiations would take place on C-SPAN, and that hasn't happened. And your administration recently turned down a request from a watchdog group seeking a list of health care executives who have visited the White House to talk about health care reform. Also, the TARP inspector general recently said that your White House is withholding too much information on the bank bailouts. So my question for you is, are you fulfilling your promise of transparency in the White House?

THE PRESIDENT: Well, on the list of health care executives who've visited us, most of the time you guys have been in there taking pictures, so it hasn't been a secret. And my understanding is we just sent a letter out providing a full list of all the executives. But frankly these have mostly been at least photo sprays where you could see who was participating.

With respect to all the negotiations not being on C-SPAN, you will recall in this very room that our kickoff event was here on C-SPAN, and at a certain point you start getting into all kinds of different meetings -- Senate Finance is having a meeting, the House is having a meeting. If they wanted those to be on C-SPAN then I would welcome it. I don't think there are a lot of secrets going on in there.

And the last question with respect to TARP. Let me take a look at what exactly they say we have not provided. I think that we've provided much greater transparency than existed prior to our administration coming in. It is a big program. I don't know exactly what's been requested. I'll find out and I will have an answer for you.

Julianna.

Q Thank you, Mr. President. You've said the recent bank profits indicate that there's been no sense of remorse on Wall Street for risky behavior, that we haven't seen a change in culture there. Do you think that your administration needs to be taking a harder line with Wall Street? And also, would you consider going a step further than your regulatory reform proposals and supporting a fee on risky activities that go beyond traditional lending?

THE PRESIDENT: We were on the verge of a complete financial meltdown. And the reason was because Wall Street took extraordinary risks with other people's money, they were peddling loans that they knew could never be paid back, they were flipping those loans and leveraging those loans and higher and higher mountains of debt were being built on loans that were fundamentally unsound. And all of us now are paying the price.

Now, I believe it was the right thing to do -- as unpopular as it is, it was the right thing for us to do to step in to make sure that the financial system did not collapse, because things would be even worse today had those steps not been taken. It originated under the Bush administration. We continued it because whether you're on the left or the right, if you talk to economists, they said that this could have the kinds of consequences that would drop us into a deep depression and not simply a very severe recession.

Now, one of the success stories of the past six months is that we really have seen a stabilization in the financial system. It's not where it needs to be, but people are no longer talking about the financial system falling off a cliff. We've stepped away from the brink. And that's important, because what it means is there are a lot of companies right now that can go into the marketplace and borrow money to fund inventory, fund payroll, and that will help the economy grow as a whole.

The problem is, now that the financial system has bounced back, what you're seeing is that banks are starting to make profits again. Some of them have paid back the TARP money that they received, the bank bailout money that they received. And we expect more of them to pay this back. That's a good thing. And we also think it's a good thing that they're profitable again, because if they're profitable that means that they have reserves in place and they can lend. And this is America, so if you're profitable in the free market system then you benefit.

But what we haven't seen I think is the kind of change in behavior and practices on Wall Street that would ensure that we don't find ourselves in a fix again where we've got to bail out these folks while they're taking huge risks and taking huge bonuses.

So what do I think we need to do? We've got to pass financial regulatory reform. And this is an example of where folks say, well, should the Obama administration be taking on too much? The fact of the matter is that if we don't pass financial regulatory reform then banks are going to go back to the same things that they were doing before. In some ways it could be worse because now they know that the federal government may think that they're too big to fail and so if they're unconstrained they could take even more risks. And so there are a number of elements of financial regulatory reform.

With respect to compensation I'd like to think that people would feel a little remorse and feel embarrassed and would not get million-dollar or multimillion-dollar bonuses. But if shame does not work then I think one proposal that I put forward is to make sure that at least shareholders of these companies know what their executives are being compensated -- and that may force some reductions.

For banks that are still receiving taxpayer assistance we have a set of rules that gives us some control on reducing unwarranted compensation.

And in terms of the last point that you made, which is the possibility of fees for transactions that we want to discourage, that is one of the ideas that is going to be working its way through the process. I think at minimum what we want to do is to make sure that to the extent the federal government is going to have to be a backstop, just like the Federal Deposit Insurance Corporation, what everybody is familiar with, FDIC, the reason that when you put your deposits in your bank you can have confidence that they're insured -- that's paid for through bank fees. We may need to make sure that there is a similar mechanism in place for some of these other far-out transactions. So if you guys want to do them, then you got to put something into the kitty to make sure that if you screw up it's not taxpayer dollars that have to pay for it, but it's dollars coming out of your profits.

Steve Koff, the Cleveland Plain Dealer.

Q Thank you. To follow up on Jake's question earlier, sir, so many Americans are concerned that this plan, particularly the government insurance, the public option, would lead to reduced benefits or reduced coverage.

Two questions. One, can you guarantee that this legislation will lock in and say the government will never deny any services; that that's going to be decided by the doctor and the patient, and the government will not deny any coverage? And secondarily, can you, as a symbolic gesture, say that you and the Congress will abide by the same benefits in that public option?

THE PRESIDENT: Well, number one, not only the public option but the insurance regulation that we want to put in place will largely match up with what members of Congress are getting through the federal employee plan. That's a good example of what we're trying to build for the American people -- the same thing that Congress enjoys, which is they go -- there is a marketplace of different plans that they can access, depending on what's best for their families.

Now, one of the plans that we've talked about is a public option. And part of the reason we want to have a public option is just to help keep the insurance companies honest. If the insurance companies are providing good care -- and as it is, they're going to be more regulated so that they can't deny you care because of a preexisting condition or because you change jobs or because they've decided you're too sick and not a good risk -- with regulation there's already going to be some improvement in the insurance industry.

But having a public plan out there that also shows that maybe if you take some of the profit motive out, maybe if you are reducing some of the administrative costs, that you can get an even better deal, that's going to incentivize the private sector to do even better. And that's a good thing. That's a good thing.

Now, there have been reports just over the last couple of days of insurance companies making record profits -- right now. At a time when everybody is getting hammered, they're making record profits, and premiums are going up. What's the constraint on that? How can you ensure that those costs aren't being passed on to employers or passed on to employees, the American people, ordinary middle-class families, in a way that over time is going to make them broke? Well, part of the way is to make sure that there's some competition out there. So that's the idea.

Now, to get to your original question, can I guarantee that there are going to be no changes in the health care delivery system? No. The whole point of this is to try to encourage changes that work for the American people and make them healthier. The government already is making some of these decisions. More importantly, insurance companies right now are making those decisions.

And part of what we want to do is to make sure that those decisions are being made by doctors and medical experts based on evidence, based on what works -- because that's not how it's working right now. That's not how it's working right now. Right now doctors a lot of times are forced to make decisions based on the fee payment schedule that's out there.

So if they're looking -- and you come in and you've got a bad sore throat, or your child has a bad sore throat or has repeated sore throats, the doctor may look at the reimbursement system and say to himself, you know what, I make a lot more money if I take this kid's tonsils out. Now that may be the right thing to do, but I'd rather have that doctor making those decisions just based on whether you really need your kid's tonsils out or whether it might make more sense just to change -- maybe they have allergies, maybe they have something else that would make a difference.

So part of what we want to do is to free doctors, patients, hospitals to make decisions based on what's best for patient care -- and that's the whole idea behind Mayo, that's the whole idea behind the Cleveland Clinic. I'm going to be visiting your hometown tomorrow to go to the Cleveland Clinic to show -- to show why their system works so well. And part of the reason it works well is because they've set up a system where patient care is the number-one concern, not bureaucracy, what forms have to be filled out, what do we get reimbursed for. Those are changes that I think the American people want to see.

Q And what about yourself and Congress? Would you abide by the same benefits package?

THE PRESIDENT: You know, I would be happy to abide by the same benefit package. I will just be honest with you -- I'm the President of the United States so I've got a doctor following me every minute. (Laughter.) Which is why I say this is not about me. I've got the best health care in the world. I'm trying to make sure that everybody has good health care -- and they don't right now.

Lynn Sweet. Oh. (Laughter.) Well, I said Steve Koff -- but he just stood up, huh?

Q Yes.

THE PRESIDENT: Well, that's not fair. Shame on you. (Laughter.) All right, get in there real quick.

Q -- got the Cleveland connection, so I appreciate that. You cited the Mayo Clinic and the Cleveland Clinics as models for the delivery of health care in the past. The Mayo Clinic, though, has some problems with the House proposal saying they're not focused enough on patients and on results. What do you expect to achieve tomorrow by going to the Cleveland Clinic -- which hasn't stated an opinion -- and are you expecting some form of endorsement from the Cleveland Clinic?

THE PRESIDENT: I am not expecting an endorsement. The Cleveland Clinic is simply a role model for some of the kind of changes that we want to see. I think it's important to note that the Mayo Clinic was initially critical and concerned about whether there were enough changes in the delivery system and cost-saving measures in the original House bill. After they found out that we had put forward very specific mechanisms for this MedPAC idea, this idea of experts getting the politics out of health care and making decisions based on the best evidence out there, they wrote in their blog the very next day that we actually think this would make a difference. Okay?

All right, I tried to make that short so that Lynn Sweet would get her last question in.

Q Thank you, Mr. President. Recently Professor Henry Louis Gates Jr. was arrested at his home in Cambridge. What does that incident say to you and what does it say about race relations in America?

THE PRESIDENT: Well, I should say at the outset that "Skip" Gates is a friend, so I may be a little biased here. I don't know all the facts. What's been reported, though, is that the guy forgot his keys, jimmied his way to get into the house, there was a report called into the police station that there might be a burglary taking place -- so far, so good, right? I mean, if I was trying to jigger into -- well, I guess this is my house now so -- (laughter) -- it probably wouldn't happen. But let's say my old house in Chicago -- (laughter) -- here I'd get shot. (Laughter.)

But so far, so good. They're reporting -- the police are doing what they should. There's a call, they go investigate what happens. My understanding is at that point Professor Gates is already in his house. The police officer comes in, I'm sure there's some exchange of words, but my understanding is, is that Professor Gates then shows his ID to show that this is his house. And at that point, he gets arrested for disorderly conduct -- charges which are later dropped.

Now, I don't know, not having been there and not seeing all the facts, what role race played in that, but I think it's fair to say, number one, any of us would be pretty angry; number two, that the Cambridge Police acted stupidly in arresting somebody when there was already proof that they were in their own home; and number three, what I think we know separate and apart from this incident is that there is a long history in this country of African Americans and Latinos being stopped by law enforcement disproportionately. That's just a fact.

As you know, Lynn, when I was in the state legislature in Illinois, we worked on a racial profiling bill because there was indisputable evidence that blacks and Hispanics were being stopped disproportionately. And that is a sign, an example of how, you know, race remains a factor in this society. That doesn't lessen the incredible progress that has been made. I am standing here as testimony to the progress that's been made.

And yet the fact of the matter is, is that this still haunts us. And even when there are honest misunderstandings, the fact that blacks and Hispanics are picked up more frequently and oftentime for no cause casts suspicion even when there is good cause. And that's why I think the more that we're working with local law enforcement to improve policing techniques so that we're eliminating potential bias, the safer everybody is going to be.

All right, thank you, everybody.

END 8:56 P.M. EDT

THE WHITE HOUSE

Office of the Vice President
_____________________________________________________________________
For Immediate Release July 22, 2009

REMARKS BY THE VICE PRESIDENT AT AN OFFICIAL DINNER
HOSTED BY PRESIDENT SAAKASHVILI

The Presidency
Tbilisi, Georgia

VICE PRESIDENT BIDEN: Well, thank you very much, Mr. President. What a great honor. We say, Mr. President, the greatest honor is to be back in the presence of all of you -- and under not ideal circumstance, but better circumstances than when I was here last.

Mr. President, friends, colleagues -- particularly to your grandmother and to your mother and your beautiful wife -- I say thank you for the hospitality you extended to me when I was here last. And thank you today.

I accept this honor bestowed on me. Quite frankly, I accept it not only with a great deal of gratitude, but on behalf of my country, because my ability to give any consequence -- any help to you is a direct consequence of the willingness of the American people to stand up and support freedom. And as you know, Mr. President, that's a bipartisan sentiment in my country.

Let me say that one year ago, when I came to Georgia, it was under very different and difficult circumstances. I was proud to stand with you then. And the reason I'm back, and the reason President Obama asked me to come back, was to send an unequivocal, clear, simple message to all who will listen, and those who even don't want to listen, that America stands with you at this moment and will continue to stand with you. (Applause.)

Ladies and gentlemen, Georgians, Mikheil, I want to be clear why we stand with you. We stand with you because we were, first and foremost, inspired by your quest for independence. The Rose Revolution, as it's become -- referred to from the outset -- and the voice of the Georgian people were a clarion call to freedom-loving people around the globe -- everyone who loves freedom and democracy, and even more importantly, those who yearn for it, those who yearn for it and do not have it. In fact, I heard that call, and they heard it very clearly.

So what you did, what your people did, extended well beyond the borders of Georgia. Look today when you see people amassed in squares, where their freedom is not at hand, but to continue to strive for it -- the reference to your Rose Revolution. And it continues to be spoken of. The Rose Revolution was a clear signal to the world that we have entered the 21st century, and the shackles of the 20th century have been shed.

And it's our collective responsibility to make sure that they are not once again put upon you or any other freedom-loving people.

We're committed to Georgia, as well, as a vital partner in the progress that we seek in Europe and beyond. The United States wants to build a multi-partner world in which nations make common cause of common concerns.

With Georgia, our partnership involves meeting security challenges. Because we are grateful, as well, I might add, to Georgia's soldiers who stand next to ours, and are being trained now to stand with ours in Afghanistan. It includes our commitment to your energy-security you're providing for many others. We welcome Georgia's role, literally as a bridge for natural resources flowing from east to west.

Our partnership rests on a foundation of shared democratic ideals, and we will continue to support your work and deepen Georgia’s democracy. And our partnership includes a determination to build even stronger bonds, not only between our governments, but equally as important, among our people: to welcome Georgian students in larger and larger numbers to American universities and to encourage American students to study here in Georgia; to help American and Georgian entrepreneurs forge new paths of economic progress; to nurture the life blood of any democracy, is civil society, that holds all governments, including yours and mine accountable.

Georgia may be small as you referenced, Mr. President, but I have learned it has a very, very big heart. (Applause.) And even more, the power of your example brings with it responsibilities to continue to inspire others in their quest for democracy, and securing an independence against all odds.

There a famous letter that an American President, Thomas Jefferson, wrote to one of his political rivals, John Adams. John Adams is our second President and one of our founders, and Jefferson our third. In their aging -- after they both had no longer been President, they had a long, long correspondence until each of them died, coincidentally on the same day. And in one of those letters, Thomas Jefferson said, and I'm paraphrasing, that those who bring about revolutions seldom see them come to fruition -- seldom see the democracy take root.

This is going to be different. You all know that your Declaration of Independence and your Rose Revolution were the beginning of the process. In a sense, some of the real hard part is now left. You mentioned protestors -- welcome to democracy. Welcome to democracy. (Applause.) We are very accustomed to protestors.

But you are in the process of building those institutional attributes that a country needs to maintain a democracy. And I am not exaggerating when I say many other people in the world are looking to you to see whether or not you can bring the revolution to full fruition and dig those roots -- plants those roots of democracy very deep.

Every progressive nation has a stake in your success. Every progressive nation in the world has a stake in your success, particularly nations in this region, and that makes Georgia a very important nation for the future of this region, this continent, and the world.

So I would like to -- if I had a glass in my hand, which I'm going to get -- with your permission, raise my glass in a toast to Georgia's success and to your fierce determination to be independent, sovereign, democratic, and free. Thank you very much. To Georgia. (Applause.)

Thank you, Mr. President.

THE WHITE HOUSE

Office of the Press Secretary
____________________________________________________________________
For Immediate Release July 22, 2009

REMARKS BY PRESIDENT OBAMA
AND PRIME MINISTER NOURI AL MALIKI OF IRAQ
IN JOINT PRESS AVAILABILITY

Rose Garden

3:21 P.M. EDT

PRESIDENT OBAMA: Good afternoon, everybody. I am very pleased to welcome Prime Minister al Maliki back to Washington. We’ve just concluded a very productive discussion about a wide range of issues.

We meet at an important moment. Substantial progress has been made since Prime Minister Maliki’s first visit to Washington in 2006, and since the Prime Minister and I had a chance to sit down together in Baghdad. Violence continues to be down, and Iraqis are taking responsibility for their future. This progress has been made possible by the resilience of the Iraqi people and security forces, and also because of the extraordinary service of American troops and civilians in Iraq.

Now we’re in the midst of a full transition to Iraqi responsibility, and to a comprehensive partnership between the United States and Iraq based on mutual interests and mutual respect. The success of this transition is critically important to the security and prosperity of our people, and it is a top priority of my administration.

Recently, we took an important step forward by transferring control of all Iraqi cities and towns to Iraq’s security forces. This transition was part of our security agreement, and should send an unmistakable signal that we will keep our commitments with the sovereign Iraqi government. As I said before, we seek no bases in Iraq, nor do we make any claim on Iraq’s territory or resources.

Going forward, we will continue to provide training and support for Iraqi security forces that are capable and nonsectarian. We'll move forward with our strategy to responsibly remove all American combat brigades from Iraq by the end of next August, and to fulfill our commitment to remove all American troops from Iraq by the end of 2011.

As we move forward, Prime Minister Maliki and I have no doubt that there will be some tough days ahead. There will be attacks on Iraqi security forces and the American troops supporting them. There are still those in Iraq who would murder innocent men, women and children. There are still those who want to foment sectarian conflict. But make no mistake: Those efforts will fail.

The Iraqi people have already rejected these forces of division and destruction. And American troops have the capability, the support and flexibility they need to stand with our Iraqi partners on behalf of a sovereign, secure, and self-reliant Iraq. Because we believe that the future does not belong to those who would destroy -- it belongs to those who would build.

To that end, America strongly supports efforts by the Iraqi government to promote national unity, which will help ensure that people in all parts of Iraq can live in peace and prosperity. Prime Minister Maliki and I discussed issues like the hydrocarbons law and disputed internal boundaries that will be fundamental to the future of a united Iraq. I reiterated my belief that Iraq will be more secure and more successful if there is a place for all Iraqis citizens to thrive, including all of Iraq's ethnic and religious groups. That's why America continues to support efforts to integrate all Iraqis into Iraq's government and security forces, and we have increased our assistance to help displaced Iraqis return to their homes.

Prime Minister Maliki and I also agreed to build a broader basis for cooperation between our nations. The United States and Iraq have known difficult times together. Now both of us agree that the bonds forged between Americans and Iraqis in war can pave the way for progress that can be forged in peace.

The Strategic Framework Agreement agreed to last year helps lay the groundwork for this progress. America stands ready to help the Iraqi government build their capacity to provide basic services and to promote the rule of law. And together, Americans and Iraqis can expand economic cooperation and trade that opens new doors of opportunity. Together, we can broaden our educational, our cultural, and scientific engagement to make a positive difference in the lives of our people. And together, we can take steps to advance security and prosperity throughout the region, and around the globe. And Prime Minister Maliki and I are both deeply humbled by the sacrifices that have been made by Iraqis and Americans to create this opportunity.

There are many important meetings that will take place over the course of the Prime Minister's visit. I am especially pleased that he intends to visit Arlington National Cemetery. That hallowed ground is the final resting place for so many young Americans who have paid the ultimate price to help forge this hard-earned progress. They've set an example of selfless sacrifice that all of us must strive to meet, as do the Americans serving in Iraq today. And I want to thank Ambassador Chris Hill, who's here, and is doing outstanding work. Under the most difficult circumstances imaginable, they have completed every mission they've been given, and they have forged countless partnerships and friendships with the Iraqi people.

I know that this story is one that can be told by people in both our countries, and that the Iraqi people have endured extraordinary hardship in their pursuit of a brighter day. So many Iraqis and Americans have made so many sacrifices on behalf of a better future. Now, as we work to end this war and to look beyond it, we must live up to their example and live up to our own responsibilities to see that their legacy is truly one of greater peace and prosperity.

I thank you. And with that, I'd like to welcome Prime Minister Maliki and give him the opportunity for some remarks.

PRIME MINISTER MALIKI: (As translated.) In the name of God, the most merciful, the compassionate, thank you. I thank the President of the United States, Mr. Obama, for your warm hospitality, and regarding all the issues that related to the positive relationship as well as the aspiration to deepen that relationship.

My meeting with the President was a positive and constructive meeting. It reflected the deep conviction on the part of both sides to establish a strategic friendship and in order to continue the successes that we have achieved, and perhaps we referred to the security successes that led to the stability in Iraq.

We have also referred to the sacrifices by our sons and daughters on both sides to confront al Qaeda members, those who are outlawed and those who voice sectarian wars. If they succeeded in their efforts, they would not have been killing only Iraq but the entire region through the danger of sectarianism.

Our sons and daughters succeeded on both sides, which led to stability and the return of the strength of the Iraqi government under full sovereignty.

And among the things that we can refer to in a positive way is the positive commitment in following up with the commitments that were signed by both sides, either those are related to the status of forces, or those are related to the Strategic Framework Agreement that will govern the relationship in the future.

I have discussed today with President Obama about ways in order to activate the strategic relationship on the economic front, cultural front, educational front, commercial front, and in every possible area where the United States can play a role in supporting the Iraqi government, and the efforts of the Iraqi government to build a state of law, a state based on constitution and federalism that works for the aspiration of its own people, using the wealth of that country and that nation.

We are about to activate such a Strategic Framework Agreement. Efforts on both sides are there in order also to convene an investment conference in October of this year that will combine all foreign investors and all companies that would like and wish to work in Iraq.

All of this comes as a natural reaction to the stability and to the direction of the Iraqi National Unity government to provide what is needed for rebuilding, reconstruction of a country that was destroyed by wars, by dictatorship, and by adventures -- affected its infrastructure, affected the services that should have gone to the Iraqi people. Therefore, the relationship between the two sides as it did see and witness progress on the security front and in combating terror, it will see great cooperation in the areas of economic, commercial, and cultural activities.

Our forces, as it proves its success overall and as it proves when it received the security file, that these forces proved to be capable of performing. And those who thought that the Iraqi forces, if the American forces can leave, will be incapable of imposing peace and security, these people proved to be wrong. Our forces benefitted from working closely with the American forces and the multinational forces. Our forces became now highly capable and they will continue to do their role and their part to provide the opportunity needed for reconstruction, rebuilding, and developing Iraq.

Iraq has suffered a great deal from being marginalized, from the policies of sectarianism, and from wars. We will work very hard in order not to allow any sectarian behavior an opportunity to flourish. We will work on a national plan where all sons of Iraq and all daughters of Iraq are equal in their contribution and in their services. They will be unified by Iraq; they will not be divided by other elements. We will strengthen the relationship between the people of Iraq.

This is the direction of the Iraqi National Unity government and that made us work very closely in meeting all the challenges that we are facing. It helped us on the security front. It will help us in reconstruction. And we will benefit from the strategic relationship with the United States.

Thank you very much.

PRESIDENT OBAMA: Mark Smith of AP Radio.

Q Thanks, Mr. President. I'd like to ask about the flexibility that you spoke about that you said U.S. forces still have in Iraq. Since the handover of control of the cities, the Iraqi government has imposed new limits on how U.S. troops can operate. They can't patrol on their own; they can't conduct raids on their own. Did you raise this with Prime Minister Maliki? Did you object to this, or do you think this is just a great sign of increasing Iraqi sovereignty?

PRESIDENT OBAMA: Well, I think that we have seen both improved capacity and greater confidence on the part of the Iraqi security forces. We're very pleased with that. I'm in communications with General Odierno on a regular basis. He provides me a weekly report of how this transition has proceeded. He has been extremely positive about the progress that has been made.

Now, what we've seen is, is that there are going to be at times differences in strategy -- in the interest of the Iraqi security forces in setting up a checkpoint at some point, and our Armed Forces suggesting that from our experience a checkpoint might create a target for AQI, and so it's better to be more mobile and to go after them -- there are going to be those kinds of strategic and tactical discussions that are continually taking place between the two sides. But overall, we have been very encouraged by the progress that's been made.

It doesn’t mean that there aren’t still dangers in Iraq, and obviously we've seen that in some circumstances, those who want to sow sectarian division inside of Iraq are going to still resort to the killing of innocents and the senseless bombings that plagued Iraq for such a long time after Saddam Hussein was deposed.

But what we've seen is, is that the violence levels have remained low, the cooperation between U.S. forces and Iraqi forces has remained high, and we have every confidence that we will continue to work together cooperatively and make adjustments where necessary to assure that, as we move into the national elections, that Iraq continues on the progress of stability and that Iraqi security forces are continually ramping up their capabilities so that ultimately we are going to be able to fulfill our commitment to pull out our troops entirely and interact with Iraq as a full, sovereign country that it is.

PRIME MINISTER MALIKI: First of all, excuse me, the relationship between the Iraqi forces and the Iraqi forces after the withdrawal from cities and towns are good, constant cooperation. There are the support coming from the American forces next to the Iraqi forces that are operating. It is normal that the responsibility is bigger and the role is bigger as a result of the security agreement, but also based on the agreement of the withdrawal.

If the Iraqi forces would require the support from the American forces, they will ask the American side through coordinating committees that organize these operations. And I believe what's happening is organizing the roles between the two sides and cooperation. It is not to marginalize the role of any side. Based on the agreement, we are still under a joint responsibility to face any threats Iraq is facing.

Q (Asked in Arabic.)

PRESIDENT OBAMA: My translation is not coming through here, guys, and my Arabic is a little shaky. (Laughter.) Here we go.

Q (As translated.) Based on the agreement, the security agreement between the United States and Iraq, the United States should help Iraq to get out of Chapter 7. What steps will you be doing in order to help Iraq to get out of Chapter 7?

PRESIDENT OBAMA: This is an area that Prime Minister Maliki emphasized, and we have made a strong commitment to work with Iraq to get out of the Chapter 7 constraints that were imposed after the Gulf War. As I stated before, it, I think, would be a mistake for Iraq to continue to be burdened by the sins of a deposed dictator.

Now, in order to do that, we're going to have to obtain cooperation from various members of the United Nations. I think that there are going to have to be some specific disputes that are resolved between Iraq and some of its neighbors. We intend to be very constructive in that process, but we have said clearly, and I've repeated today to the Prime Minister, that we will work diligently with Iraq so that, in fact, Iraq is no longer within Chapter 7.

PRIME MINISTER MALIKI: President Obama and the American administration agree with us that Iraq is no longer representing a threat to international peace and security because there is a democracy in Iraq, not a dictatorship. Iraq is looking forward to positive, constructive relationship with its Arab neighbors and with the international community and to deal through a law internally and in justice internally.

I have seen a clear commitment from the President and the administration to support Iraq and to be committed to all elements of the agreement, and to help Iraq to get out of Chapter 7 and international sanctions which were imposed as a result of the ventures and the wars that were led by Saddam's regime, including occupying the neighboring state of Kuwait.

Iraq has come a long way and it will continue to solve all problems. And there are so many problems that we are paying the price for from the previous regime in order to have friendly relations with all members of the international community.

Shukran jazeelan. Thank you very much.

END
3:39 P.M. EDT

THE WHITE HOUSE

Office of the Vice President
______________________________________________________________________
For Immediate Release July 22, 2009

REMARKS BY VICE PRESIDENT BIDEN IN UKRAINE
Ukraine House
Kyiv, Ukraine

VICE PRESIDENT BIDEN: Thank you very much. Thank you, Jorge, Reverend, clergy. Ladies and gentlemen, it's an honor to be here. I want to thank you for your coming today. And I want to thank the people and the government of Ukraine for their warmth and hospitality they've shown me the last two days.

It's a special honor to be here in Kyiv. I know times are difficult for many today, but I’m inspired, and still inspired, as many Americans are, by what happened here less than five years ago. That sea of orange that flooded Independence Square, the hundreds of thousands of Ukrainians who poured into Kyiv demanding peacefully that their votes be counted and that their voices be heard, is something that will not be forgotten for a long, long time.

Forty years before that momentous event, the momentous events of 2004, a former President of the United States and general, Dwight D. Eisenhower, stood in the center of Washington, DC, and unveiled a monument to a great Ukrainian poet, Shevchenko. It was 24 feet high, the statue, and it bears these words: "Dedicated to the liberation, freedom, and independence of all captive nations."

Back in 1964, we looked at Shevchenko for hope because he never stopped dreaming of a free Ukraine. And 40 years later, in 2004, we saw what the power of a free people demanding justice could accomplish. Today, Ukrainians should take pride in what they have achieved. Free and fair elections have become the norm, freedom of speech is exercised vigorously, as you're all learning and observing, and freedom of the press, as witnessed by the number of cameras that are here today, is well respected in your country.

Ukraine today is one of the most free and democratic nations in this region.

Near the end of his life, one of the authors of America’s freedom, Thomas Jefferson, who is credited with writing the Declaration of Independence, wrote a letter to his old friend and political foe, John Adams -- Adams had been the second President of the United States and Jefferson the third -- and they were great friends but political competitors. And he wrote a letter to Adams -- there was a long correspondence for decades. He wrote a letter to Adams about 35 years after our revolution. And in the letter, he said, "The generation which commences a revolution rarely completes it. The generation which commences a revolution rarely completes it."

In any true democracy, freedom is the beginning, not the end. Freedom is merely the beginning, not the end. And here in Ukraine, yours is a revolution still in progress whose promise remains to be fulfilled.

More than anything else, I’m here to say this to the Ukrainian people: Ukraine, as it continues on the path to freedom, democracy, and prosperity, the United States will stand by Ukraine. These are your choices, not ours. But rest assured that we stand with you as you make those choices.

The Obama administration will not waver in its support of a strong and independent Ukraine. Charting the future course of Ukraine is, of course, a decision to be made by all of you, not by anyone outside.

Based on my discussions yesterday with the bulk of your political leadership, we want for Ukraine what it appears Ukrainians want for themselves -- a democratic and prosperous European nation.

My visit to Kyiv comes soon after President Obama’s visit to Moscow.

As a matter of fact, they were planned simultaneously. And I know there was some speculation that our decision, as I said in a speech in Munich at the front-end of our administration -- to press the reset button with Moscow -- I know it created some speculations that improving relations with Russia would somehow threaten our ties with Ukraine.

Let me say this as clearly as I can. As we reset the relationship with Russia, we reaffirm our commitment to an independent Ukraine.

And we recognize no sphere of influence, or no ability of any other nation to veto the choices an independent nation makes as to with whom and under what conditions they will associate. We also do not believe in zero-sum thinking. We do not believe that a partnership with one nation must come at the expense of another. It has not. It does not, and it will not.

As I said, referencing the Munich Security Conference just weeks after taking office, it holds true again -- I want to reemphasize it. We reject the notion of spheres of influence as 19th century ideas that have no place in the 21st century. And we stand by the principle that sovereign states have a right to make their own decisions, to chart their own foreign policy, to choose their own alliances.

President Obama, in his speech in Moscow two weeks ago, strongly affirmed this principle. He said, and I quote, "State sovereignty must be the cornerstone of international order. Just as all states should have the right to choose their leaders, states must have the right to borders that are secure, and to their own foreign policies. Any system that cedes those rights will lead to anarchy. That is why this principle must apply to all nations, including Ukraine."

We also re-affirmed the security assurances that the United States, Russia and the United Kingdom provided Ukraine in the 1994 Budapest Memorandum.

Our commitment to Ukraine is evidenced through our aid program -- $120 million this year to bolster peace and security, strengthen democratic institutions, promote economic growth, modernize your military, secure Chernobyl, fight AIDS and HIV, and improve child health.

We also strongly supported, and continue to support, the IMF’s decision to provide $16 billion to help Ukraine make it through what is an incredibly difficult time as a consequence of a worldwide recession.

We have worked with Ukraine to transform your military, so that you can protect your homeland and contribute to global security. Young Ukrainian officers have studied in our military academies. American officers have come here to take part in education, training, planning, and organization and exercises. And we’re grateful to Ukraine for its contributions to international security. Ukraine’s armed forces have been committed peacekeepers from the Balkans to Iraq, even as far afield as Liberia.

And we mourn -- we mourn along with you -- the six Ukrainians who perished in last week’s helicopter crash in Afghanistan. We have, unfortunately, significant experience in mourning.
Ukraine has also been a leader in what President Obama and I believe is our greatest security challenge -- the greatest security challenge that is facing the world -- and that is reducing the world’s arsenal of nuclear weapons, renewing the non-proliferation system, and securing vulnerable nuclear fissile material.

Last December, the United States and Ukraine agreed to a center on strategic -- excuse me, a Charter on Strategic Partnership. And today, your president and I agreed that the U.S. and Ukraine Strategic Partnership Commission would begin meeting this fall in Washington to deepen our cooperation in areas of security, economy, trade, energy, and the rule of law.

The United States also supports Ukraine’s deepening ties to NATO and to the European Union. But again, we recognize they are your decisions, your choices, not ours whether you choose the EU or seek to, or NATO. We recognize that how far and how fast to proceed on your choices is, again, a uniquely Ukrainian choice -- it is not ours.

The United States does not seek a sphere of influence. We are trying to build a multi-polar [sic*] world, in which like-minded nations make common cause of our common challenges -- the stronger our partners, the more effective our partnerships.

And in that spirit of partnership, I'm also here to offer my honest opinion. Friendship requires honesty. And the honest truth is that the great promise of the 2004 -- of 2004, has yet to be fully realized. Again, if the poet Shevchenko were here today, what would he be writing? What would he write about this moment? I’m sure he would be heralding the openness and pluralism, the freedom of the press –- a model for your neighbors. I'm sure he would take pride in Ukraine’s vibrant civil society and marvel at your competitive elections.

And to those cynics who have asserted for centuries that this part of the world could never practice democracy because its culture and values are different, Ukraine today stands as resolute rebuttal to that centuries old assertion.

But I think he would also be wondering why the government was not exhibiting the same political maturity as the people, why communications among leaders has broken down to such an extent that political posturing appears to prevent progress.

Especially now, especially in difficult economic times, Ukraine, in my humble opinion, must heed the lessons of history -- effective, accountable government is the only way to provide stable, predictable, and a transparent environment that attracts investment, which is the economic engine of development. That's why this Chamber of Commerce, I suspect, exists.

Functioning democracies are more capable of committing to and implementing economic reforms, sometimes even painful reforms that are necessary to stimulate economic recovery and economic growth. And I would note parenthetically, can you name me a place where democracy has flourished where the economic system has failed? Mature democracies survive because they develop institutions such as a free press, a truly independent court system, an effective legislature -- all of which serve as a check on the corruption that fuels the cynicism and limits growth in any country, including yours. And in a democracy, compromise is not a sign of weakness; it is evidence of strength.

In my meetings yesterday, there was a clear recognition that much work remains to be done to make Ukraine more competitive and attractive to investors, from reforming your tax code to acting against corruption.

The path to renewed prosperity runs through the International Monetary Fund, which is offering now a way out of the current crisis. But as you might guess, there are strings attached. My mother says, out of every crisis comes an opportunity. This may be your opportunity.

The Fund requires that your government, and your government agreed to critical reforms to cut the budget deficit, revive a striving [sic*] banking system, and phase out energy subsidies, which I know from experience is a very difficult thing to do. Carrying out this agreement requires very hard choices and tough action, but it will help put you on the road to growth and competitiveness.

And as a politician, I understand how difficult these decisions are.

But sometimes one has to ask why one is involved in politics in the first place. Whenever a young man or woman asks me about what they should be thinking about if they wish to enter public life, I say, ask yourself the first and most important question: What is it you care about that is worth losing over? What is it that you care about that is worth losing over? If you can't figure that out, then it's merely ambition that's driving you. Every country needs politicians who know what is worth losing over.

As you take action, you will not stand alone. The United States wants to work with you to improve the investment climate, expand trade and investment between our two countries, and help in any effective way we can, knowing full well we do not have the answers. We are struggling economically, as well; a different struggle, but a real struggle.

Ultimately, democracy and free markets will flourish when they deliver on what people want most -– honesty, the elimination of corruption, a decent job, the ability to care for their parents and educate their children, physical security and economic opportunity, a chance to build a better life. No one wants anything more than a chance.

When democracy and free markets deliver on these basic desires, then those promoting alternative forms of government, whether from within or without, are never able to gain a foot hold.

Nowhere is the relationship between democracy, development and security clearer than when it comes to energy. Right now, in the United States, we’re making significant efforts at some political expense, I might add, to diversify our energy supply, to invest in efficiency, and to make some very difficult decisions about how to deal with the carbon footprint we're leaving our children and our grandchildren and our great-grandchildren. None are without cost.

Just as it is in our interest to diversify our sources of energy and reduce the influence of those we depend on for our energy, I might add so too it -- so too is it in your overwhelming interest. Your economic freedom depends more, I suspect, in this country on your energy freedom than on any other single factor. Ukraine has abundant reserves of energy, and reform of your energy sector should reduce your dependence on foreign suppliers. Moving toward market pricing for energy is brave, but also absolutely necessary pre-condition.

Promoting energy efficiency and conservation also will go a long way toward increasing your independence.

Ukraine uses energy about three times less efficiently than the EU average, including your next-door neighbor, Poland. If you lift Ukraine to European standards, your need for energy imports will dramatically decline, dramatically decline -- just that one single action, none other. That would be a boon to your economy and an immeasurable benefit, I respectfully suggest, to your national security.

The time for inertia and neglect is long past. It's time for action, as I know you know better than I.
I’m pleased that Ukraine and the United States have agreed to hold our first meeting of our working group on energy security, so that we can look together for solutions to some of today’s biggest challenges.

The leaders of this country come together -- came together once, in 2004, because they knew that a free and prosperous Ukraine was more important than any one political -- any one politician, or any one political party. I have no doubt the Ukrainians can, and will, come together again.

When Shevchenko imagined freedom, he looked to the United States and its young revolution. In the words of a poem he wrote in 1858, he said, "When will we greet our own George Washington at last with the new law of righteousness? Today's American revolution is not so young. And when the Shevchenkos of today imagine freedom, they don't have to look to the United States, they can rightfully look to Ukraine.

The idea and promise of Ukraine’s peaceful resolution -- revolution, remains an inspiration for the world and for this region. Just as your Orange Revolution did not end in 2005, it did not stop at Ukraine’s borders. We hear its echoes wherever people peacefully stand and demand their voices to be heard, a cacophony of voices, and they refer back to your Orange Revolution.

I have never met a Ukrainian -- my very good friend, John Hynansky, a very prominent businessman from Delaware is here. I had breakfast with him the other day. And I come from a city -- where I was born, Scranton, Pennsylvania, has a large Ukrainian-American population.

I've never met a Ukrainian who doesn’t think in terms of centuries.

Centuries from now, what will Ukrainians say of this time? Will they say that their leaders? Will they say they returned to the past?

Will they say that the beginning of the 21st century launched a new era of prosperity, freedom and independence, and hope for all Ukrainians?

I hope you choose the progress -- the path of progress, for the people of Ukraine, for your children, and for a watching world -- for literally, you are standing at a moment in history that you have never stood at before -- literally. It sounds like hyperbole to suggest this, and we politicians have a tendency to hyperbole, but the God's truth is you have never been at this place before, the chance for your people to establish a truly independent, free and prosperous country with defined borders for the 21st century.

When your children look back, what will they say of us? What will they say of what the United States did to help or not help? And what will they say of all of you. My sincere prayer is they will say that it was the beginning, the beginning of a dream we have dreamt for over 400 years. I pray to God that happens, because quite frankly, your success will bear on the success or failure of many peoples in this part of the world.

I thank you for giving me the honor of being here, for listening. And I sincerely hope that you understand I know we don't have all the answers, but I know your answer lies in freedom. And freedom lies in the development of genuine democratic institutions. I wish you the best, and we stand ready to walk that path with you.
Thank you very, very much.

END

THE WHITE HOUSE

Office of the Press Secretary
______________________________________________________________________
For Immediate Release July 21, 2009

REMARKS BY THE PRESIDENT
AT "AN EVENING OF COUNTRY MUSIC"

East Room

7:36 P.M. EDT

THE PRESIDENT: Welcome to the White House. Tonight marks the second in a series that we are using to celebrate the music that's contributed to the life of this nation and chronicled the history of our people.

We began this tradition last month with an evening of jazz. And tonight, we celebrate another uniquely American art form: country music.

We are thrilled and honored to be joined by three of country music's biggest acts -- three of music's biggest acts, period -- Alison Krauss and Union Station, Brad Paisley, and Charley Pride. And I want to thank --(applause) -- and I want to thank and applaud Alison and Brad for taking some time earlier today to lead a country music workshop here at the White House for the next generation of young musicians.

Now, I know folks think I'm a "city boy" -- (laughter) -- but I do appreciate listening to country music because like all Americans, I appreciate the broad and indelible impact that country has had on our nation. It's touched countless lives, it's influenced all genres of music, it's helped us make the American people more hopeful, it's captured our restlessness and resilience, and told so much of our story in the process.

After all, that's what country music is all about -- storytelling. It's about folks telling their life story the best way they know how -- stories of love and longing, hope and heartbreak, pride and pain. Stories that help us celebrate the good times and get over the bad times. Stories that are quintessentially American. After all, name me any other country that would have produced a Hank Williams or a Willie Nelson. (Laughter.)

And like all great art, a great country song also has a commitment to truth -- to telling the truth like it is, without pulling any punches. And generations of performers have honored that commitment. Harlan Howard proclaimed country music "three chords and the truth." (Laughter.) Garth Brooks said it's "honesty, sincerity, and real life to the hilt." And Dierks Bentley called it "the best shrink that 15 bucks can buy." (Laughter.)

So to all those watching, either here or at home, here's a free session -- with some of the best storytellers and truth-sellers around. We hope that you have a wonderful time this evening. Thank you. Enjoy.

END
7:39 P.M. EDT

THE WHITE HOUSE

Office of the Press Secretary
_________________________________________________________________________
For Immediate Release July 21, 2009

REMARKS BY THE PRESIDENT
ON HEALTH CARE
AND THE SENATE VOTE ON F-22 FUNDING

Rose Garden

12:50 P.M. EDT

THE PRESIDENT: Good afternoon, everybody. Before I talk about the progress we’re making on health insurance reform, I want to say a few words about a very important vote that just took place in Congress.

Long before I took this office, I argued that meeting our greatest challenges would require not only changing policies in Washington, but changing the way we do business in Washington. I also promised that part of that change would be eliminating waste and inefficiency in our defense projects -- reform that will better protect our nation, better protect our troops, and save taxpayers tens of billions of dollars.

As Commander-in-Chief, I will do whatever it takes to defend the American people, which is why we’ve increased our funding for our military, and why we will always give our men and women in uniform the equipment and support that they need to get the job done.

But I reject the notion that we have to waste billions of taxpayer dollars on outdated and unnecessary defense projects to keep this nation secure. That's why I’ve taken steps to greatly reduce no-bid defense contracts. That's why I've signed overwhelmingly bipartisan legislation to limit cost overruns on weapons systems before they spiral out of control. And that's why I'm grateful that the Senate just voted against an additional $1.75 billion to buy F-22 fighter jets that military experts and members of both parties say we do not need.

At a time when we’re fighting two wars and facing a serious deficit, this would have been an inexcusable waste of money. Every dollar of waste in our defense budget is a dollar we can’t spend to support our troops, or prepare for future threats, or protect the American people. Our budget is a zero-sum game, and if more money goes to F-22s, it is our troops and citizens who lose.

So I want to thank Secretary Gates for his outspoken leadership on this issue. I want to thank every member of Congress who put politics aside to do what’s right for the American military and the American taxpayers. And I particularly want to thank Senators Levin and McCain for helping to make this happen.

Now, I’ve also said that health care costs are the biggest drivers of our deficit. Nobody disputes that. So I’m looking forward to meeting with several members of Congress who are working to pass health insurance reform that will bring down long-term costs, expand coverage, and provide more choice.

I know that there are those in this town who openly declare their intention to block reform. It's a familiar Washington script that we've seen many times before. These opponents of reform would rather score political points than offer relief to Americans who've seen premiums double and costs grow three times faster than wages. They would maintain a system that works for the insurance and the drug companies, while becoming increasingly unaffordable for families and for businesses.

But there are many others who are working hard to address this growing crisis. I know that there is a tendency in Washington to accentuate the differences instead of underscoring common ground. But make no mistake: We are closer than ever before to the reform that the American people need, and we're going to get the job done. I have urged Congress to act, and the health care reform bills making their way through the respective committees in the House and the Senate reflect a hard-earned consensus about how to move forward. So let me just lay out the substantial common ground in the current bills.

We've agreed that our health reform bill will extend coverage and include unprecedented insurance protections for the American people. Under each of these bills, you won't be denied coverage if you've got a preexisting medical condition. You won't lose your health care if you change jobs, if you lose your job, or if you start a business. And you won't lose your insurance if you get sick.

We've agreed that our health reform bill will promote choice. America -- Americans will be able to compare the price and quality of different plans, and pick the plan that they want. If you like your current plan, you will be able to keep it. Let me repeat that: If you like your plan, you'll be able to keep it. And each bill provides for a public option that will keep insurance companies honest, ensuring the competition necessary to make coverage affordable.

We've agreed that our health reform bill will emphasize prevention and wellness. By investing in programs that help Americans live healthier lives, we will save money, prevent illness, and increase the competitiveness of our country. We've agreed that our health reform bill will protect American families from financial catastrophe if they get sick. That's why each of these bills has out-of-pocket limits that will help ensure that families don't go bankrupt because of illness. And we have agreed that our health reform bill will include dramatic measures to cut costs while improving quality.

Each of these bills improves oversight while cracking down on waste. Each will help reduce unwarranted giveaways to insurance companies in Medicare. And each of these bills will provide incentives so that patients get the best care, not just the most expensive care.

The consensus that we've forged is not limited to Congress. Indeed, we've forged a level of consensus on health care that has never been reached in the history of this country. Health care providers have agreed to do their part to reduce the rate of growth in health care spending. The pharmaceutical industry has agreed to spending reductions that will make prescription drugs more affordable for seniors. Hospitals have agreed to bring down costs. The American Nurses Association and the American Medical Association, who represent millions of nurses and doctors who know our health care system best, have announced their support for reform.

So we have traveled long and hard to reach this point. I know that we have further to go. But I have to say that the American people are absolutely clear that this won't be easy but that the road that we have traveled doesn't just stretch back through the six months of my administration -- it stretches back year after year, decade after decade, through all the times that Washington has failed to tackle this problem.

Time and again, we've heard excuses to delay and defeat reform. Time and again, the American people have suffered because people in Washington played the politics of the moment instead of putting the interests of the American people first. That's how we ended up with premiums rising three times faster than wages. That's how we ended up with businesses choosing between shedding benefits and shutting their doors. That's how we've been burdened with runaway costs and huge gaps in coverage.

That's the status quo. That's what we have right now. And the American people understand that the status quo is unacceptable. They don't care who's up or who's down politically in Washington. They care about what's going on in their own lives. They don't care about the latest line of political attack. They care about whether their families will be crushed by rising premiums; whether the businesses they work for will have to cut jobs; or whether their children are going to be saddled with debt.

So I understand that some will try to delay action until the special interests can kill it, while others will simply focus on scoring political points. We've done that before. And we can choose to follow that playbook again, and then we'll never get over the goal line, and we'll face an even greater crisis in the years to come. That's one path we can travel.

Or, we can come together and insist that this time it will be different. We can choose action over inaction. We can choose progress over the politics of the moment. We can build on the extraordinary common ground that's been forged, and we can do the hard work needed to finally pass the health insurance reform that the American people deserve.

And I can guarantee you that when we do pass this bill, history won't record the demands for endless delay or endless debates in the news cycle –- it will record the hard work done by the members of Congress to pass the bill, and the fact that the people who sent us here to Washington insisted upon change. That's the work that we've come here to do, and I look forward to working with Congress in the days ahead to getting the job done.

Thank you, everybody.

END 1:00 P.M. EDT

THE WHITE HOUSE

Office of the Vice President
________________________________________________________________________
For Immediate Release July 21, 2009

STATEMENT BY VICE PRESIDENT BIDEN
AFTER MEETING WITH PRESIDENT VIKTOR YUSHCHENKO OF UKRAINE

House with Chimaeras
Kyiv, Ukraine

VICE PRESIDENT BIDEN: Mr. President, thank you very much for your hospitality. And on behalf of President Obama, I want to express our admiration, as well as our thanks -- our admiration for what you and your colleagues began in what was an inspiration to other parts of the world and your neighbors, the Orange Revolution, and also thanks for your cooperation and help in the Balkans and Iraq and Afghanistan. And I agree with you, I think we had a very productive meeting.

I come to Kyiv, Mr. President, with one simple, straightforward message that I don't want anyone to misunderstand. That is, the United States is committed to a strong, democratic and prosperous Ukraine.

Your success, Mr. President, we believe will be our success. We in the United States are trying to build a multi-partner world in which we work with like-minded countries to make common cause on common challenges. And quite frankly, the stronger our partners, the more effective that partnership will be.

We worked together to tackle, as I referenced earlier, common security problems -- threats in the Balkans, Iraq and Afghanistan -- and we meet what President Obama and I believe is one of humanity’s greatest challenges, and that is reducing nuclear arsenals and securing nuclear materiel.

We consider, Mr. President, Ukraine to be a vital European partner for advancing stability, prosperity and democracy on the continent. And the President and I agreed that the United States and Ukraine will work together in the months and years to come to strengthen the strategic partnership.

It is not for the United States to dictate what that partnership will be but to reiterate. And President Obama and I have stated clearly that if you choose to be part of Euro-Atlantic integration -- which I believe you have -- that we strongly support that. We do not recognize -- and I want to reiterate it -- any sphere of influence. We do not recognize anyone else's right to dictate to you or any other country what alliances you will seek to belong to or what relationships you -- bilateral relationships you have.

I reaffirmed to the President what I said in Munich, as I said, in the earliest days of our administration, and it's worth repeating again in a brief statement, and that is -- and President Obama, I might add, made it clear in his visit to Moscow this month -- the United States supports Ukraine’s sovereignty, independence and freedom, and to make its own choices -- its own choices -- including what alliances they choose to belong.

We're working, as you know, Mr. President, to reset our relationship with Russia. But I assure you and all the Ukrainian people that it will not come at Ukraine’s expense. To the contrary, I believe it can actually benefit Ukraine. The more substantive relationship we have with Moscow, the more we can defuse the zero-sum thinking about our relations with Russia’s neighbors.

We also talked about many important challenges facing Ukraine today, made more difficult by the economic crisis the world is facing. And we discussed ways in which the United States can help Ukraine undertake what are obviously tough reforms needed to build its democracy and economy and to strengthen its energy sector.

To that end, I was pleased to learn that the government has taken the final decision necessary to bring the Overseas Private Investment Corporation back to Ukraine. That will make it easier for American companies to reinvest in Ukraine, and invest in the first place, which will help both our economies in the current downturn.

I know it's hard, I know it's hard, and these are tough decisions that your government has to make. And I also know from experience of being in public life for a long time, it's harder to make tough decisions in election years. It's a difficult time in any democracy. I told the President what I will tell other officials with whom I'll be meeting today, that working together, especially in times of crisis, is not a choice, it’s an absolute necessity. And compromise, I might add, is not a sign of weakness, it is evidence of strength.

Ukraine has come a long way in the short time since declaring independence in 1991. And Ukraine’s vibrant civil society -- and it is vibrant -- its engaged and free media, as we witnessed here today -- and its lively democracy show the world that Ukraine will continue on its chosen path toward a prosperous future as an integral part of Europe.

The United States, Mr. President, is committing to walking that path with Ukraine to see to it that it becomes a vital part of Europe.

And again, Mr. President, I want to thank you for your hospitality. I look forward to continuing the discussions we had today at a working group level, and I am -- I'm confident that Ukraine's democracy will take deep root in the 21st century.

Thank you, Mr. President.

END

THE WHITE HOUSE

Office of the Press Secretary
_____________________________________________________________________
For Immediate Release July 20, 2009

REMARKS BY THE PRESIDENT
AFTER MEETING WITH APOLLO 11 CREW

Oval Office

2:14 P.M. EDT

THE PRESIDENT: Very rarely do I have such an extraordinary pleasure as I have today to welcome three iconic figures, three genuine American heroes. To have Neil Armstrong, Michael Collins, and Buzz Aldrin here beside me is just wonderful. And I think that all of us recall the moment in which mankind finally was untethered from this planet and was able to explore the stars; the moment in which we had one of our own step on the moon and leave that imprint that is there to this day. And it's because of the heroism, the calm under pressure, the grace with which these three gentlemen operated, but also the entire NASA family that was able to, at great risk oftentimes, and with great danger, was somehow able to lift our sights, not just here in the United States but around the world.

We now have a wonderful NASA administrator in Charles Bolden and the deputy administrator Lori Garver. We are confident that they are going to be doing everything that they can in the decade to come to continue the inspirational mission of NASA. But I think it's fair to say that the touchstone for excellence in exploration and discovery is always going to be represented by the men of Apollo 11.

So I'm grateful to them for taking the time to visit with us. The country continues to draw inspiration from what you've done. I should note, just personally, I grew up in Hawaii, as many of you know, and I still recall sitting on my grandfather's shoulders when those capsules would land in the middle of the Pacific and they'd get brought back and we'd go out and we'd pretend like they could see us as we were waving at folks coming home. And I remember waving American flags and my grandfather telling me that the Apollo mission was an example of how Americans can do anything they put their minds to.

I also know that, as a consequence of the extraordinary work of NASA generally, that you inspired an entire generation of scientists and engineers that ended up really sparking the innovation, the drive, the entrepreneurship, the creativity back here on Earth. And I think it's very important for us to constantly remember that NASA was not only about feeding our curiosity, that sense of wonder, but also had extraordinary practical applications. And one of the things that I've committed to doing as President is making sure that math and science are cool again, and that we once again keep the goal by 2020 of having the highest college graduation rates of any country on Earth, especially in the maths and science fields.

So I think on this 40th anniversary, we are -- all of us thank and grateful to all of you for what you've done, and we expect that there's, as we speak, another generation of kids out there who are looking up at the sky and are going to be the next Armstrong, Collins, and Aldrins. And we want to make sure that NASA is going to be there for them when they want to take their journey.

All right? Thank you so much.

END
2:19 P.M. EDT