THE WHITE HOUSE
Office of the Press Secretary
(Mexico City, Mexico)
________________________________________________________________________
FOR IMMEDIATE RELEASE                          April 16, 2009
 
JOINT PRESS CONFERENCE WITH PRESIDENT BARACK OBAMA
AND PRESIDENT FELIPE CALDERÓN OF MEXICO

Los Pinos
Mexico City, Mexico
4:29 P.M. CDT

PRESIDENT CALDERÓN: (As translated.) Ladies and gentlemen of the press, of the media, I would like to give the warmest welcome to Mexico to President Barack Obama, and to the delegation accompanying him. This is an historic event that will inaugurate a new era, a new relationship between our two countries.

Today in the meetings that we have held we have confirmed the determination of both governments to consolidate the very, very close contacts and links that join and bring together Mexico and the United States. We have new projects in important affairs such as security, migration, competitiveness, and global affairs.
As never before we have decided that the fight against multinational organized crime must be based on cooperation, shared responsibility, and in trust, a mutual trust.
Both governments recognize that the Merida Initiative is a very good starting point in order to strengthen cooperation in security. But we want to go beyond, we want to go further in order to liberate, to free our societies from the criminal activities that affect the lives of millions of people.
We have also agreed to expedite the times so that we can have available the resources for this Merida Initiative, and we have also decided to launch other activities that are in the hands of our governments. For example, we can adopt new measures for preventing illicit flows at the border, particularly the flow of weapons and of cash. We will also be strengthening our cooperation in information and intelligence in order to more efficiently fight against money laundering.
On the other hand, we have also agreed that both governments should produce propositions -- proposals for our cooperation so that we can eventually have reform in the United States with full respect to the sovereign decisions of both congresses -- of both nations, that is. Our governments will work in this sense to make migration an orderly, respectful process of human rights, a process in which human rights will be respected.
In energy and climate change, we have agreed to work together in order to guarantee a legal framework of certainty, transparency for the future; better use of cross-border resources such as gas and energy. And I have given to President Obama concrete proposals on climate change. One of them has to do with the integration of a bilateral market of carbon emissions, which coincides a lot with proposals that he has made to the U.S. audience, and other cooperation, ways of cooperation in climate change, such as something that Mexico has proposed, called the Green Fund.
We have also said that in addition to discussing our goals for carbon emissions that are linked in the fight against climate change globally, we must also act very soon in the design of new instruments, of new tools in order to fight against climate change. That is really the central proposal of the Green Fund.
And in a gesture of recognition, of acknowledgment on this topic, we know that President Obama and his government have made considerable efforts to provide new arguments to the discussion of this topic. We would also like to thank -- to welcome the possibility that Mexico might be the seat of the 16th U.N. conference on climate change that will be taking place in 2010.
We have recognized and acknowledged, ladies and gentlemen, that Mexico and the United States do not have to compete among themselves, but rather they must be able to take advantage of the complementary nature of their economies in order to compete as partners with regard to other parts of the world. We have the chance to make our region more competitive and to have greater, more agile production.
And we will be working in three areas. First, in the strengthening of the border infrastructure, I have also given to President Obama a proposal to facilitate the economic flows between both countries to improve the quality of life of the residents in the border areas, and to foster the development of our two nations through very specific projects on infrastructure at the Mexican-U.S. border.
Secondly, we believe it is essential to increase our cooperation and customs so that we can have a more efficient trade. And thirdly, we have also proposed to improve our cooperation in regulatory matters regarding tariff or non-tariff issues that very often make difficult our trade between two countries.
We have agreed with President Obama that we seek agreements to truly improve the economic situation not only of the United States but of the entire region and the world. We have stated our cooperation to strengthen the democracy of the market and of regional security.
In relation to President Obama's recent security to lift the restrictions for people from the U.S. to travel to Cuba and to be able to send remittances, Mexico acknowledges that this is a very constructive, positive step for the hemispheric relations, particularly for the region.
And finally, my friends, ladies and gentlemen, I want to tell you that I am absolutely convinced that President Obama's visit is just an initial step, the beginning of a relationship between two countries that are friends, neighbors, and must also be partners and allies.
Thank you so much. Thank you so much, President Obama, for your visit. The President Barack Obama now has the floor.
PRESIDENT OBAMA: I want to begin by thanking the people of Mexico for their gracious welcome. And I want to thank President Calderón for the hospitality he has shown as a host.
You know, this is my first trip to Mexico as President, and I see this visit -- as I know President Calderón does -- as an opportunity to launch a new era of cooperation and partnership between our two nations, an era built on an even firmer foundation of mutual responsibility and mutual respect and mutual interest. We had a productive and wide-ranging conversation and I think we have taken some very important steps down that path.
It's difficult to overstate the depth of the ties between our two nations or the extraordinary importance of our relationship. It's obviously a simple fact of geography that we share a border, and we've always been bound together because of that geography. But it's not just that shared border that links us together. It's not only geography, but it's also culture, it's also migration patterns that have taken place that have become so important.
Our deep economic ties mean that whenever -- whatever steps that we're going to take moving forward have to be taken together. And that's why we worked hard, hand in hand at the G20 summit. And that's what we will continue to do at the Summit of the Americas and beyond, so that we can jumpstart job creation, promote free and fair trade, and develop a coordinated response to this economic crisis.
We also discussed our shared interest in meeting an immigration challenge that has serious implications for both the United States and for Mexico. My country has been greatly enriched by migration from Mexico. Mexican Americans form a critical and enduring link between our nations. And I am committed to fixing our broken immigration system in a way that upholds our traditions as a nation of laws but also as a nation of immigrants. And I'm committed to working with President Calderón to promote the kind of bottom-up economic growth here in Mexico that will allow people to live out their dreams here, and as a consequence will relieve some of the pressures that we've seen along the borders.
We also discussed what our nations can do to help bring a clean energy future to both countries. This is a priority for the United States. I know it's a priority for President Calderón. And I want to commend him for the work that he's already made in cutting greenhouse gas emissions, the commitment that he's made even though Mexico is not required to do so under the Kyoto Protocol. And together, we're establishing a new Bilateral Framework on Clean Energy and Climate Change that will focus on creating green jobs, promoting renewable energy, and enhancing energy efficiency. I look forward to strengthening our partnership in the upcoming Major Economies Forum on Energy and Climate and in next year's U.N. climate negotiations, which I hope will be held here in Mexico.
Now, as essential as it is that we work together to overcome each of these common challenges, there's one particular area that requires our urgent and coordinated action, and that is the battle that's taking place with -- with respect to the drug cartels that are fueling kidnappings and sowing chaos in our communities and robbing so many of a future, both here in Mexico and in the United States.
I have said this before; I will repeat it: I have the greatest admiration and courage for President Calderón and his entire cabinet, his rank-and-file police officers and soldiers as they take on these cartels. I commend Mexico for the successes that have already been achieved. But I will not pretend that this is Mexico's responsibility alone. A demand for these drugs in the United States is what is helping to keep these cartels in business. This war is being waged with guns purchased not here, but in the United States. More than 90 percent of the guns recovered in Mexico come from the United States, many from gun shops that line our shared border.
So we have responsibilities, as well. We have to do our part. We have to crack down on drug use in our cities and towns. We have to stem the southbound flow of guns and cash. And we are absolutely committed to working in a partnership with Mexico to make sure that we are dealing with this scourge on both sides of the border.
And that's why we're ramping up the number of law enforcement personnel on our border. That's why, for the first time, we are inspecting trains leaving our country, not just those entering it. That's why our Department of Homeland Security is making up to $59 million available to defend our common border from this threat to both of our countries.
Now, as we discussed in our meeting, destroying and disrupting the cartels will require more than aggressive efforts from each of our nations. And that's why the United States is taking the following steps: We've begun to accelerate efforts to implement the Merida Initiative so we can provide Mexico with the military aircraft and inspection equipment they need when they need it.
Yesterday, I designated three cartels as Significant Foreign Narcotics Drug Traffickers under U.S. law, clearing the way for our Treasury Department, working together with Mexico to freeze their assets and subject them to sanctions.
My National Homeland Security Advisor, who is here, General Jim Jones, as well as my Homeland Security Secretary, Janet Napolitano, and my top advisor on homeland security and counterterrorism, John Brennan, are all meeting with their Mexican counterparts to develop new ways to cooperate and coordinate their efforts more effectively.
In addition, as President Calderón and I discussed, I am urging the Senate in the United States to ratify an inter-American treaty known as CIFTA to curb small arms trafficking that is a source of so many of the weapons used in this drug war.
Now, there are some of the common challenges that President Calderón and I discussed in our meeting and that we're going to be working on to overcome in the months and years ahead. It will not be easy, but I am confident that if we continue to act, as we have today, in a spirit of mutual responsibility and friendship, we will prevail on behalf of our common security and our common prosperity.
So I think that this is building on previous meetings that we've had. In each interaction, the bond between our governments is growing stronger. I am confident that we're going to make tremendous progress in the future. Thank you.
Q Thank you, Mr. President. Thank you, Mr. President, as well.
President Obama, as a candidate for your office, you said that you wanted to see the assault ban weapon -- the ban on assault weapons reinstated. Your Attorney General has spoken in favor of this. Mexican officials have also spoken in favor of it. But we haven't heard you say that since you took office. Do you plan to keep your promise? And if not, how do you explain that to the American people?
And, President Calderón -- I'm sorry, if I may -- would you like to see this ban reinstated? And have you raised that today with President Obama? Thank you.
PRESIDENT OBAMA: Well, first of all, we did discuss this extensively in our meetings. I have not backed off at all from my belief that the gun -- the assault weapons ban made sense. And I continue to believe that we can respect and honor the Second Amendment rights in our Constitution, the rights of sportsmen and hunters and homeowners who want to keep their families safe to lawfully bear arms, while dealing with assault weapons that, as we now know, here in Mexico, are helping to fuel extraordinary violence -- violence in our own country, as well.
Now, having said that, I think none of us are under any illusion that reinstating that ban would be easy. And so, what we've focused on is how we can improve our enforcement of existing laws, because even under current law, trafficking illegal firearms, sending them across a border, is illegal. That's something that we can stop.
And so our focus is to work with Secretary Napolitano, Attorney General Holder, our entire Homeland Security team, ATF, border security, everybody who is involved in this, to coordinate with our counterparts in Mexico to significantly ramp up our enforcement of existing laws. And in fact, I've asked Eric Holder to do a complete review of how our enforcement operations are currently working and make sure that we're cutting down on the loopholes that are resulting in some of these drug trafficking problems.
The last point I would make is that there are going to be some opportunities where I think we can build some strong consensus. I'll give you one example, and that is the issue of gun tracing. The tracing of bullets and ballistics and gun information that have been used in major crimes -- that's information that we are still not giving to law enforcement, as a consequence of provisions that have been blocked in the United States Congress, and those are the areas where I think that we can make some significant progress early.
That doesn’t mean that we're steering away from the issue of the assault guns ban, but it does mean that we want to act with urgency, promptly, now. And I think we can make significant progress.
PRESIDENT CALDERÓN: Thank you for your question. I want to say that, in effect, on this topic -- not only on this topic, but on many of the other thorny topics of relations between the U.S. and Mexico, we have had an open, frank, trusting conversation between President Obama and myself. We have spoken of assault weapons. He is well aware of our problems.
And we have described it as it is from the moment that the prohibition on the sale of assault weapons a few years ago, we have seen an increase in the power of organized crime in Mexico. Only in my administration, in the two years and four months, we have been able to see -- or rather we have seized more than 16,000 assault weapons. And in the efforts we have made to track their origin -- and President Obama has referred to that -- we have seen that nearly 90 percent of those arms comes from the United States -- those weapons come from the United States. There are about 10,000 sales points in the U.S.-Mexico border -- only at the border.
On the other hand, I do believe that our relationship -- the new era we must build in our relationship between Mexico and the United States must be one with trust and respect. And we definitely respect the decision of the U.S. Congress and of the U.S. people in this regard, because they are very well aware of President Obama and his government's willingness to move forward on these issues.
We know that it is a politically delicate topic because Americans truly appreciate their constitutional rights, and particularly those that are part of the Second Amendment. I personally believe that as long as we are able to explain clearly what our problems in Mexico are, then we might also be able to seek a solution respecting the constitutional rights of the Americans, at the same time will prevent -- or rather avoid that organized crime becomes better armed in our country.
But we have to work on it. We have to work on it. But we fully respect the opinion of the U.S. Congress and we know that there's a great deal of sensitivity regarding this topic.
But there are many, many things that we can definitely move forward in. For example, in armament, it is not only a matter of seeing whether we can change the legislation on assault weapons -- we have already said what our position is -- but we might also be able to see whether they can apply existing legislation in Mexico and the United States on armament. For example, in Mexico it's a matter of enforcement, with the Export Control Act, for example -- this is in the United States -- I'm sorry -- prohibits the export of weapons to those countries where those weapons are prohibited.
And that is the case of Mexico. If we actually comply with the U.S. law -- or rather if everybody complies with the U.S. law that prohibits the sale of these weapons and their export to Mexico, we can move a great deal forward.
President Obama has made recent decisions in the last few weeks, and we value them and appreciate them -- for example, to reinforce the operational capability of U.S. border agencies in order to comply with this legislation and with other laws, in order to review the flows of entry not only into the United States, but also the outgoing flows, outgoing from the U.S., to make sure that there is no illicit money, in strict compliance with United States legislation. I think these are very important steps.
But there is a problem, and only as long as we build on this trust and we clearly explain to citizens of both countries how we must find a solution, we will be able to achieve one. We do so respectfully, presenting our position, knowing full well how the U.S. people feel about this and being fully respectful of the sovereign decisions that the United States might make, or that any other country might make.
One more thing -- one more thing I forgot to mention. One other thing we can do is to track the weapons that we have in Mexico. If we manage to detect weapons sold illegally in the United States in violation of this law on the control of weapons exports, or if, in the United States, they can have -- probably move forward on a good registry of armament or on the prohibition of certain massive sales of weapons, for example, to a hunter or to a common citizen -- we know that these people do not usually buy hundreds of rifles or assault weapons or grenades -- if we can move forward in those areas, I do believe that security both of the United States and Mexico will improve because those weapons are pointing against Mexican people and Mexican officials today.
But crime is not only acting in Mexico. It is also acting in the United States. Organized crime is acting in both countries. And I do hope that those weapons that are sold today in the United States and are being used in Mexico, I hope the day will never come in which they will also be used against the North American society or against U.S. officials, just like they are now being used in Mexico.
Q (As translated.) Good afternoon, Presidents. You are going to share four years of an administration, and there can be an in-depth change in this fight against organized crime in these four years. As of today, how can we establish the concrete objectives that in 2012 will allow us to say, fine, a new era began between Mexico and the United States back then?
Particularly I'm addressing this to you, President Obama. In addition to the chance that you will invest your political capital in being able to stop the flow of these weapons to Mexico, what can we hope for, what can we expect to see in terms of arresting the drug lords, the kingpins, in the U.S.? Because there are laws against corruption, but this is enabling now -- in other words, the U.S. market is now the biggest for drugs. And former President of Mexico, ex-President Fox, said that in the back they have only gotten little pats in the back from his predecessors. Can we hope for more from your administration?
And to you, President Calderón, with this new era, how can you measure the detention, the arrest of drug lords in the United States, and also putting a stop to the flow of weapons? How can you measure this?
PRESIDENT OBAMA: Well, I think that we can measure this in terms of the reduction in violence; in the interdiction of drugs; in the interdiction of weapons coming south; in the dismantling of the financial structures that facilitate these drug cartels; in the arrest of major drug kingpins.
So I think we know how to measure progress. The challenge is maintaining a sustained effort. And as I said, something that President Calderón and myself absolutely recognize, is that you can't fight this war with just one hand. You can't just have Mexico making an effort but the United States not making an effort. And the same is true on the other side.
I think both our efforts have to be coordinated; both of our efforts have to be strengthened. I've made some very concrete commitments, already sending additional resources, already making additional investments. These are measurable in millions and, ultimately, billions of dollars over several years. And I believe that President Calderón has used enormous political capital to deal with this issue.
Obviously the Mexican people, particularly along the borders, have suffered great hardship. And as a consequence, if we partner effectively -- and that's why I brought many of my top officials on this trip, to interact with their counterparts -- I'm confident that we're going to make progress. Now, are we going to eliminate all drug flows? Are we going to eliminate all guns coming over the border? That's not a realistic objective. What is a realistic objective is to reduce it so significantly, so drastically, that it becomes once again a localized criminal problem as opposed to a major structural problem that threatens stability in communities along those borders and that increases corruption and threatens the rule of law -- that's the kind of progress that I think can be made.
And so, we are going to -- we're going to work as hard as we can and as diligently as we can on these issues -- always mindful, though, that the relationship between Mexico and the United States cannot just be defined by drugs. Sometimes there's a tendency for the media to only report on drug interdiction or immigration when it comes to U.S.-Mexican relations. And one of the things that we talked about is the extraordinary opportunities for us to work together on our commercial ties; on strengthening border infrastructure to improve the flow of goods; on working on clean energy, which can produce jobs on both sides of the border.
So we're going to stay very focused on this. We're going to make this a top priority, but we just always want to remember that our relationship is not simply defined by these problems; it's also defined by opportunities. And that's what we want to take advantage of as well.
PRESIDENT CALDERÓN: Thank you, President. I agree a great deal with you and I fully thank you for your support and understanding in this very difficult topic. I think the question is very relevant. I see a big opportunity for President Obama and myself, since we are going to be sharing the next four years as heads of our administrations, I see a big opportunity here.
And on this issue, what I hope to see at the end of my administration is actually many things. One is a reduction in the levels of criminal activities in our countries related to organized crime, which is also related to drug trafficking -- they go hand in hand. We have a strategy with short-, midterm, and long-term objectives.
In the short term, for example, we have set out to recuperate the security and tranquility of our citizens, particularly in those areas that have been harder hit by the crime. And this is where we have the joint operations, where we are mobilizing not only our federal police but also the army -- and this, regardless of the fact that it is not an easy matter and it hasn't been and it can change in the course of time, but at least we begin to see fruitful results in some areas.
For example, in the last quarter -- or rather compared to the last quarter of last year, our first quarter of this year, there was already a drop of 27 percent in criminal activities. That is as an average for the entire country, only in Ciudad Juarez -- as of the joint operation that we launched in February, between February and March violent deaths in Ciudad Juarez, crime-related -- violence related to crime dropped by 80 percent.
Of course I understand that the spectacular nature of some of these operations has really attracted worldwide attention. But with a very difficult crime rate that we had last year, despite them, crime in Mexico was 10.7 deaths because of crime for every 100,000 inhabitants. It is less than what it is in Guatemala, El Salvador, Colombia, Venezuela, or Brazil in Latin America, and it is also a lower number than the crime rates of many U.S. cities.
I believe one issue has to be, of course, that we have to cut down on crime in Mexico, for sure, but, number two, I hope, in the course of time, to be a safer border and a more efficient border. As long as -- if we are able to stop the flow of drugs, illicit money and weapons, we will have greater progress both in the United States and Mexico. And one way to measure this is by appreciating and valuing the technological capabilities, particularly of nonintrusive detection at the border, so that for those who do want to make business and do want to trade, that the border is open, and those who want to commit crime, the border will be a closed area.
One way to measure this -- and here U.S. cooperation is essential -- is to have the right technology, particularly nonintrusive technology that will enable us to have safe borders. And the initiative, the Merida Initiative, is very much focused on this.
Now, in the midterm, we would like a renewal of our police forces in Mexico. At the end of my administration, I would like to be able to have a new federal police that will be worthy of the citizens' trust and that will be efficient. And here U.S. cooperation is also fundamental. Why? Well, because on our side we are cleaning our house, we are sweeping everything from top to bottom so that all the police forces, from the top officials at the Attorney General's office, the army, the navy, that all officials in Mexico, all police officials that we can truly trust in their honesty, and that at the same time, technologically, they will be top-notch, as the rest of the world, in investigation, in databases. We want a scientific police, one that is very well-trained in technology, and U.S. help will be very welcome and it will be essential.
We also have a judicial plan for oral trials. And I think that as we fulfill these objectives, many of them have already -- are part of our agreement on safety, security and protection. With a shared responsibility that we now have with President Obama and his team, we are certain that we will reach these objectives and that our strategy, which is the correct one, will have many more possibilities of achieving success, and that at the end of our administration we will have a Mexico, a United States, that are much safer and freer of violence -- violence free, rather.
Of course, drug trafficking cannot be ended by decree. As long as there is a supply of high -- or rather, is high demand, there will be a high supply. But what we can control is the effect of criminal activities in society, to stop the actions of organized crime, and we can also act preventively in order to bring down the consumption of drugs in the United States, and in Mexico, too, which also begins to be a problem of great concern to us.
Q Mr. President, thank you. Mr. President.
President Obama, you said in an op-ed that was out today that your new Cuba policy was part of an effort to move beyond the frozen disputes of the 20th century. Why then is it so limited? Why not open the door for all Americans to visit Cuba? And what will you say to your colleagues at the Summit of the Americas who want you to do more?
And, President Calderón, what do you think the United States should do more on Cuba in order to improve relations with the region? Thank you.
PRESIDENT OBAMA: Well, first of all, I don't think that we should dismiss the significance of the step that we took. We eliminated remittance restrictions and travel restrictions for Cuban Americans who have family members in Cuba. For those families, this is extraordinarily significant. For the people in Cuba who will benefit from their family members being able to provide them help and to visit them, it's extraordinarily significant. We took steps on telecommunications that can potentially open up greater lines of communication between Cuba and the United States.
And so I think what you saw was a good-faith effort, a show of good faith on the part of the United States that we want to recast our relationship. Now, a relationship that effectively has been frozen for 50 years is not going to thaw overnight. And so having taken the first step, I think it's very much in our interest to see whether Cuba is also ready to change. We don't expect them to change overnight. That would be unrealistic. But we do expect that Cuba will send signals that they're interested in liberalizing in such a way that not only do U.S.-Cuban relations improve, but so that the energy and creativity and initiative of the Cuban people can potentially be released.
We talk about the ban on U.S. travel to Cuba, but there's not much discussion of the ban on Cuban people traveling elsewhere and the severe restrictions that they're under. I make that point only to suggest that there are a range of steps that could be taken on the part of the Cuban government that would start to show that they want to move beyond the patterns of the last 50 years.
I'm optimistic that progress can be made if there is a spirit that is looking forward rather than backward. My guidepost in U.S.-Cuba policy is going to be how can we encourage Cuba to be respectful of the rights of its people: political speech and political participation, freedom of religion, freedom of the press, freedom of travel. But, as I said before, I don't expect things to change overnight. What I do insist on is that U.S.-Cuban relationships are grounded with a respect not only for the traditions of each country but also respect for human rights and the people's -- the needs of the people of Cuba.
And so I hope that the signal I've sent here is, is that we are not trying to be heavy-handed. We want to be open to engagement. But we're going to do so in a systematic way that keeps focus on the hardships and struggles that many Cubans are still going through.
PRESIDENT CALDERÓN: I would not pretend to give advice or suggestions to President Obama on this matter or any other. Let me just say what I personally believe -- or rather what I believe about the Cuban reality. The question that has to be posed rather is whether the U.S. embargo on Cuba has worked. The reality is that the embargo has been there long before we were even born, and yet things have not changed all that much in Cuba. I think we would have to ask ourselves whether that isn’t enough time to realize that it has been a strategy that has not been very useful to achieve change in Cuba.
I do think -- I share fully the idea we do not believe that the embargo or the isolation of Cuba is a good measure for things to change in Cuba. On the contrary; the reality that we see there is that the reality has not changed. And it's because of internal factors, mostly, of course, but also because of external reasons, such as the embargo. Because of that, the Cubans have become impoverished.
I greet -- I welcome the measures that President Obama has taken in order to change this attitude, and to try to attempt -- and the attempt must be appreciated -- to change the policy towards Cuba little by little. But what is clear to me is that we both share the same ideals. I think we would both like to see the world living at some point under a full democracy, a world with full respect for human rights, with no exceptions whatsoever. We would like to see a world working with people being able to take care of their families, to live in peace, and those principles that must protect humanity. That we do share.
We also share the idea that each nation must be respected in its own decisions. It's like we were saying a moment ago when we were talking about the prohibition of assault weapons. Of course, we do not want those weapons to be out in the streets, but at the same time we want those decisions to come from the people themselves and to be self-determinant. And it's the same for Cuba. But I believe that the steps President Obama has taken are very positive.
Mexico is a good friend of Cuba, and Mexico is also a good friend of the United States. We want to be a good friend of Cuba and of the United States. We want both things. And we know that one day, the day that these principles we believe in prevail, that day we will be able to be neighbors, the three of us -- the United States, Cuba and Mexico.
What are the principles we believe in? Democracy, human rights, but also liberty, property, trade, free trade, free economy. And I think as long as those principles can function and bring benefits to the Cuban economy, then things can begin to change. We cannot change anything that has already taken place in the past, but I am certain that as heads of state, we can do a lot to try to make a different future, both for the world, both for our countries, and also in relation to Cuba.
I told President Obama that the best of luck in this panorama that is now so totally different from what U.S. policy has been in the past. I hope for the best, and I hope that more expeditious steps could be taken so that we can move forward in this regard, and that everything will be done with good understanding. And as Mexico can contribute in any way for two of our friends to work out what they have between themselves, I hope that we can contribute. And if our best contribution is just to maintain our respect, that is fine.
Last question.
Q Good afternoon. For President Obama. Mr. President, -- as U.S. senator in 2006 voted in favor of the approval of the construction of the border wall. I would like to know, and I think Mexicans would like to know, what is your real commitment of your administration to present a new migratory -- comprehensive migratory reform? What would be its scope? And when would you approve this reform?
And on free trade, on NAFTA, it seems that because of the last events there's not a great deal of interest in the U.S. to apply or to comply with all the items in NAFTA. I would like to ask President Calderón whether you spoke of some of those issues during your conversations, whether you addressed the migratory issue and some of the NAFTA issues?
PRESIDENT OBAMA: Well, first of all, with respect to the immigration issue, I think it would be useful to point out that I also voted twice for comprehensive immigration reform that would have provided a pathway for legalization and improvement of the orderly process of migration into the United States.
I've said before that we have to have a comprehensive approach, recognizing that the United States has a very legitimate concern -- if you've got hundreds of thousands of people from other countries coming into the United States without anybody knowing who they are, who when they arrive can often be exploited and, because they're not protected by various laws, undermine the wages of U.S. workers -- those are legitimate concerns on the part of the United States people and the United States government. And so working effectively with the Mexican government to create an orderly border is very important. And there are a whole host of strategies that we need to pursue.
What I've also said is that for those immigrants who are already in the United States -- and by the way, we focus a lot on Mexicans who have come into the United States, but the number of immigrants from Central America, from Ireland, from Poland are substantial as well; it's not -- this is not just an issue with respect to Mexico -- for those immigrants who have put down roots, may have come there illegally, I think they need to pay a penalty for having broken the law. They need to come out of the shadows, and then we have to put them through a process where, if they want to stay in the United States, they have an opportunity over time to earn that opportunity, for a legal status in the United States.
Now, we came close to getting that kind of reform done several years ago and then it became politicized. And my whole goal is to remove the politics of this and take a very practical, common-sense approach that benefits people on both sides of the border -- and creates a secure and safe border so you don't have people who are dying in the deserts as a consequence of a disorderly and illegal migration process. I think that's a goal that President Calderón and I share and one that we discussed during our bilateral meeting.
With respect to trade, Mexico is one of our largest trading partners. The amount of commerce that flows back and forth creates wealth in Mexico and it creates wealth in the United States. I have said repeatedly that I'm in favor of free trade. I know that there has been some concern about a provision that was placed in our stimulus package related to Mexican trucking. That wasn't a provision that my administration introduced, and I said at the time that we need to fix this because the last thing we want to do at a time when the global economy is contracting and trade is shrinking is to resort to protectionist measures.
My team is working with President Calderón's team to resolve this issue. I'm hopeful that we can resolve it in an effective way. It's not helpful to a number of U.S. producers who are interested in selling into Mexico and are fearful that they may be subject to countervailing tariffs or retaliation.
So we're going to see if we can get this fixed. But I can tell you that President Calderón and I are entirely on the same page in believing that we can create greater opportunities for trade and strengthen our commercial relationships between our two countries.
I have said before in the past, and I will continue to say, that as part of the NAFTA framework, that it would make sense for labor and environmental provisions to be enforceable within that agreement rather than just be viewed as a side agreement. But I recognize that we are in a very difficult time right now economically on both sides of the border and that those kinds of negotiations are going to need to proceed in a very careful and deliberate way, because we don't want to discourage trade; we want to encourage trade right now.
So I'm confident that our administrations are going to be able to work together, and it's going to be to the benefit both of Mexico and the United States.
PRESIDENT CALDERÓN: We spoke at length on migration and on trade, and particularly on the economy in general between both nations. President Obama is well aware, is very knowledgeable about the problem, and his position in favor of a comprehensive migratory reform is well known. I would simply repeat the idea -- refrain the idea that we share the objective of achieving an orderly, legal, productive migration between both countries.
I have said, and I maintain, that as a Mexican, as President of Mexico, it doesn’t make me particularly happy to see our people risk their lives going across a border, because I know that with every migrant that leaves we have the best of our people leaving -- the youngest, the most courageous, the strongest, the hardest-working -- they are the ones that are leaving. Because I have seen in many communities here in Mexico, and particularly the state I come from, where there are phantom towns now, where there are only the elderly, children, women, and no one else is left there.
So I am working hard to create in Mexico the conditions, the opportunities of work, of employment for our people here in Mexico. That is really the only way out that can put a stop to migration. I think that is the best way out, to create opportunities and employment in our country. But in the meantime, President Obama is very clear on what the problem consists of, and it's very important to establish those instruments that will enable people to come out of the shadows, as he himself has said, and that our region can gradually become more orderly, more legal and better migration flows.
I think the two of us share the idea that trade produces benefits on both sides of the border. Not only are there many Mexican workers that depend on their exports to the United States today -- by the way, in a very delicate situation that we're going through because of the economic situation, the drop in U.S. industry is very co-related to the drop in our Mexican industry -- but there are also many workers in the United States that depend on the purchases that we make of U.S. products. Today Mexican consumers are among the best buyers of U.S. products. Few consumers in the world buy as many U.S. products as we do here in Mexico.
So we must protect trade. And the best way of doing so is to allow it to flow naturally, with no restrictions. So going beyond the autonomous decisions that every country can take, and the legitimate exercise of the rights that are part of the pacts and agreements that we have in order to protect free trade, I agree with President Obama, we have to go further. We have to go beyond in order to improve trade between both our countries. And we do not want to restrict it. We can come to agreements; we might have certain differences; I believe that we can move a great deal forward in labor and environmental issues, but it concerns me that to reopen those things that have been proven to work well can merely create further obstacles and worsen the situation we have today.
Our focus today on practical matters -- and this is why --let me just mention three things that I believe we can work on. One is infrastructure at the border. I have talked to President Obama, I have shown him a list of 200 infrastructure projects of a larger or smaller scale that can generate employment both in the U.S. and Mexico at the border, and improve our competitiveness at the border. So we have focused on six projects of border bridges, border crossing points that can lead to further employment and prosperity for our people.
The second item is customs cooperation that will enable us to have better cooperation, more expeditious cooperation, with no drop in productivity -- to maybe have one single customs form, whether we're talking about exports or imports from one country to another; to have one single form that will allow us to reduce bureaucracy and make trade more expeditious.
And then also, third, concrete measures to have a harmonization of standards. Certain U.S. products, for example, need to have the units measured in pounds, and here we need them measured in kilos or in grams, we need to be able to have standards. If certain requirements differ from our two countries, I think we have to work towards a harmonization of these requirements.
So these practical matters that seem to be minor are actually quite important. And I think they can truly help us.
And let me wrap up by saying that one of the things we emphasized is that both of us are going through economic problems because of this international crisis that we're undergoing. But if we act intelligently we will understand that if we improve the North American competitiveness as a region that entails Canada, United States and Mexico, if we improve the competitive conditions of our entire region, vis-à-vis other regions such as Asia or Eastern Europe or the rest of Latin America, then I do believe we will be able to come out of this problem much, much faster.
Trade means opportunities, equal opportunities of employment and of prosperity for our peoples, always, always, and particularly today in these times of crisis and economic difficulties.
President Obama is undergoing tremendous efforts to improve things in the United States and he is exercising in international leadership to face this economic situation. We firmly support on our side this situation, doing everything we can in order to revert this critical situation. And I do believe one way to do it is by strengthening trade, not restricting it.
So, ladies and gentlemen, we now bring to an end our press conference. Thank you so much. We thank you.
END
5:24 P.M. CDT
###
THE WHITE HOUSE

Office of the Vice President
___________________________________________________
For Immediate Release                      April 16, 2009

REMARKS BY THE VICE PRESIDENT
ON HOW THE RECOVERY ACT
IS BUILDING A 21ST CENTURY ECONOMY IN MISSOURI
AND ACROSS THE NATION

ABB Transformer Factory
Jefferson City, Missouri

4:08 P.M. CDT

THE VICE PRESIDENT:  Folks, before I begin my formal remarks, since I have that bad reputation of telling it straight, I want to tell you something.  I always feel good when I got the UAW behind me, in front of me, to my right and to my left.  I wouldn't be in office without you all.  (Applause.)

And now, thank you so much, Charlie.  Look, the truth is I come from a state that was a UAW state.  We're in tough shape, my UAW, my Chrysler local, my GM local.  We're in deep trouble.  We may not -- many of my guys and women may not survive this transitional automobile industry.  But you know the standard that the President and I have used in terms of what constitutes recovery in this economy is not merely whether or not the economy grows again.  It will grow again.  We will lead again.  But what we will not consider a success is if we grow and we lead again, but the middle class does not grow with that growth.  (Applause.)

Ladies and gentlemen, the UAW and the union movement have built the middle class of America.  But from 19 -- from 2001 to 2008, productivity in America grew by 20 percent, but the old bargain had been broken:  Middle-class households actually lost several thousand dollars over that -- that 10 -- that eight years.

So, folks, the measure for us is, for those aspiring to and those in the middle class, when we grow out of this economic doldrum we're in, if we don't raise the standard of living for you all, then we haven't succeeded. 

And ladies and gentlemen, you can still lead a decent life.  You can still live in a good neighborhood.  You can still have dreams for your kids.  You can still be able to afford all the basic necessities if you have a decent wage and a decent job.  And that's what we're about -- trying to preserve those.

I want to thank you all.  I want to thank the management here who has been steadfast, innovative and, quite frankly, is part of the future; understands what kind of platform we have to build for a new economy in the 21st century.

I also want to thank former governor -- you can tell he was a former governor, he's so sure -- Secretary of Commerce Locke, for helping lead our country in a new era of innovation and progress. 

Folks, it's not that this can't be done.  This can be done.  The first thing I started this morning was with President Obama.  We started in what they call the Executive Office Building, making an announcement for what will amount to more than a $15 billion investment in -- what, $13 billion investment in high-speed rail -- good jobs, an economic future that understands our energy needs and how to save it and how to connect this country in a way.

And some people say it can't be done.  The Gov knows it could be done.  My friend from over 30 years, Ike, knows.  All you got to do is go to France or China and get on a train and you'll go up to 300 miles an hour.  And they say it can't be done in America?

Well, ladies and gentlemen, the President says there's nothing in the world we cannot do.  We have the best workforce, we have the best people, we have the greatest ingenuity of any nation on Earth. 

And ladies and gentlemen, Secretary Locke -- and he referred to the Secretary of Energy, the new guy -- not a whole lot of Nobel Laureates in physics who are Secretaries of anything -- this guy is the real deal, the Secretary of Energy; he's a Nobel Laureate.  Science is back, folks, in the White House.  And we're going to do -- is we're going to help, with your help, transform this country.

You know, as I walked around the plant and got a cook's tour of what you're doing and how you're doing it, it's clear you're going to help grow our economy.  But I know as I walked around the plant today that what I saw was the future -- was the future.  You guys are just right here at the beginning, you're in the ground floor -- the ground floor of what could be the economic engine that not only gets us out of this doldrum we're in, but literally, literally propels this nation to be able to lead the world in the 21st century the same way we did in the 20th century. 

I'll tell you what I saw.  I saw what I'm used to seeing at every UAW factory I go into.  I saw hard-working people who are smart as heck, knew what they were doing, and took pride -- took pride in what they do.  I saw you filling good jobs, creating not just transformers, but building a sturdy platform for the new economy of the 21st century, a new economy that's going to be built by the 643 of you here at ABB -- not just making transformers, but the many thousands more like you all around the country that will make, for example, 8,000 different parts that it takes to create a single wind turbine -- and by the millions around the country, assembling a better economic future for everybody.

As you heard, because of the investments from the Recovery Act -- and you all, we use these terms like the Recovery Act.  That's where Barack Obama went to the Congress and did something no one has ever done before.  He said, I need another $787 billion now -- now -- to go out now and invest in this economy, save jobs, to create jobs.  We're not going to wait.  We're not going to wait.  Too many of your brothers and sisters are really in hard times. 

And so we did something amidst -- in the midst of an economic downturn that had never been done before.  And then he made a big mistake.  He said, Biden, you're in charge.  (Laughter.)  And I'm proud to be in charge of how this money is going to be spent, and whether or not we spend it in an unusual way -- completely transparent for all the world to see; completely accountable so we answer for what we've done, and efficiently. 

And ladies and gentlemen, you heard about this act, but let me tell how it works.

You have maintained jobs here because an outfit called Lost Creek Ridge Wind Farm, which was ready to put on hold its projects, was able, through this Recovery Act, to get the money to make its project happen.

We tried to do our part.  One of the things they have been able to do is complicated stuff you all understand.  It's almost boring, but it's important to understand, as they say, connect the dots, like the Secretary of Commerce connected the dots about why a Smart Grid is so consequential for people.

Ladies and gentlemen, we put in a tax system of financial incentive.  It's called a production tax credit.  It sounds awful fancy, which may not sound particularly helpful or innovative, but don't let that fool you.  It invests about $14 billion -- $14 billion -- in precisely the kinds of projects that you're undertaking here -- exactly the same spirit, the same spirit we know that venture capitalists, those private investors, who put their weight behind projects and hoped to get a big return in. Those folks now are awful hesitant to invest their money, because they don't think much is happening in the economy right now.  So we stepped in.  We came up with an innovative way to say, okay, we're going to get companies like this windmill company to be able to move forward.

So our Recovery Plan not only provides direct money, but also provides key incentives, too.  The Department of Energy has allocated $6 billion to underwrite, to guarantee, in effect, the ability to get investments up to $60 billion, it will generate, in loans for renewable energy projects, just like the one you're going to be a part of making sure gets built here.  These guarantees give folks the confidence that they need to make a safer bet on a greener future.

So now with those efforts we've spurred the state's largest wind energy development, generating roughly -- electricity just in this one project.  This is just one example around the nation to generate enough electricity to power at least 50,000 homes.  Clean energy, clean energy.  Renewable energy -- not needed to be imported.  No one has to do anything except the wind blow.

Because the Lost Creek project is a go, there are around 100 wind turbines supplied by GE, and so are the transformers for ABB needed to bring that all to life.  So the dots get connected, folks.  It matters.  It matters for your job.  It matters for our future.  It matters for my kids and my grandkids. 

This, in a nutshell, is a story of the Recovery Act.  Every way we can use the money to leverage other money being invested in good projects, to directly spur on the kind of investment every one of you know we need.  Talk to your brothers and sisters in the automobile industry.  I'm going to say something that maybe I shouldn't say.  You guys made the product, but the design you were given wasn't the one you came up with.

So ladies and gentlemen, we got to get smarter, and that's exactly what we're doing.  And this is a story of ABB Incorporated and Lost Creek Wind Ridge Farm.  This is a story of how the new economy that's predicated on innovation and efficiency is going to inspire the kind of growth we need.  This is a story that we're going to write together, you and me.  We're going to write this story together.

On the signs around this plant you say you're making transformers.  But ladies and gentlemen, there's so much more here than meets the eye.  We've heard for years that a greener economy will benefit and prevent the gridlock that existed; that it will put our grandkids in a position that they will inherit a better planet.  True, but that's not the whole story. 

Barack and I are not waiting for our grandkids.  We've got real live people like you sitting in front of us and standing in front of us, who right now -- right now -- need to be able to use your innovation, energy and skill to be able to make a decent living and to help build this country like every generation of workers has done.  That's the reason this country is strong.  We spend this great economic power we have.

So we're building a green economy for us, as well.  It will increase the bottom lines of businesses and individuals through greater efficiency; lower gas prices by reducing our dependence on foreign oil; return America to our rightful place as the leading edge of progress in the world. 

Think about it.  When you were growing up, did a single one of you think America wasn't the leading nation in the world?  I mean, did it even cross your mind that that would be in question?  Well, ladies and gentlemen, it's not going to be if we and you have anything to do with it.

So that's what we're doing here.  And this is what Secretary Locke and I are doing here.  We're seeing first-hand the people whose sweat and fingerprints will be all over this new economy.  This new economy is not going to be built by Wall Street and investors; it's going to be built by you, like every single solitary era in our history has been built by the workers who create the productivity and give us the muscle and strength to be the nation we've always been. 

And our commitment to you doesn't end with making sure wind farms can continue to go into production.  I'm happy to announce today the Department of Energy plans to distribute nearly $3.4 billion -- $3.4 billion -- in Smart Grid technology development grants.  Your management here, and all of you, you are in the business of being able to compete for those.  This is jobs -- jobs. 

In addition, there's $615 million for Smart Grid storage, monitoring and technology viability.  Talking with your management and talking with you guys; that's all within your wheelhouse.  My brother has an expression.  He said, "That's in your wheelhouse, Joe."  It's all in your wheelhouse.  You all have the capacity to do the things we're dreaming about you being able to do. 

Just as Secretary Locke was discussing earlier, a true, smart and resilient electrical grid is necessary to ending America's reliance on foreign oil.  How many think we'd have so many troops stationed in that area of the world if we didn't need the oil?  You know, if you add the actual price of oil, it's probably $10 more a barrel just by the military we have to provide to be able to ensure those oil lanes stay open among other things.

Ladies and gentlemen, it's also -- it's also necessary -- it's necessary to ensuring the delivery of renewable sources of energy to consumers across this country.  And it's necessary to be creating the jobs that are not going to be able to be exportable, that will pay a living wage, a decent wage, and allow people in the middle class to sustain their standard of living and see it grow, and have a promise for their kids.

You know, when I was growing up in Scranton, even though my dad lost his job and told us we had to move -- like a lot of you probably experienced -- my dad never doubted for a second that things would come back.  I was raised in a neighborhood like some of you closer to my age who said -- when your parents said, look, you can do anything you want to do as long as you work hard, as long as you are honest, as long as you do the right thing, as long as you support your country -- and we believed it.  And we did it.  But how many parents feel the certainty of being able to say that to their kids right now, because they see things blow up in their face through no fault of their own.

Well, ladies and gentlemen, one of the ways to ensure that future again is to get in front of the technical -- technological revolution that is necessary to sustain and make this world survive; and that's a new green economy, particularly as it relates to energy.

These necessary upgrades are going to allow us to modernize our electrical grid, improve its efficiency and reliability while stimulating local economies while saving consumers' money.  And right here in Missouri, the Lost Creek Wind Project will be designed with Smart Grid components in mind.  That's what the next piece of this puzzle is.

All components will be connected through a high-speed communications, and monitored through a system that provides real-time production data from that wind farm.  This is what allows renewable energy sources like wind to be effectively and efficiently integrated into the electrical grid, and allows us to take wind from the Midwest and power urban areas all across the country.  We have vast renewable resources in this country that are untapped; wind is only one example.  But to take advantage of it, you've got to bring the power to where the people are, and that depends on a bigger, smarter grid and that's what we're starting -- this is the base of what we're developing here.

In the end you ask for bringing much more efficiency into our energy production.  But as we do it, we'll also be creating jobs, non-exportable jobs, good-paying jobs, not just any jobs.  We'll be leaving men and women like you with the ability to have jobs that can't be exported which are going to be the foundation for a new economy -- jobs you can keep forever.

It was a President from Missouri named Harry Truman who faced a similar uncertainty at the end of World War II.  When he became President he said, and I quote, "May we Americans all live up to our glorious heritage.  In that way, America may lead the world to peace and prosperity."  We are the world's hope to lead it to peace and prosperity as Truman's generation did.  His words are as true today and the optimism should be as real today as it was after 12 million men and women came home after having been in arms.

Hard workers like you are the core -- the core -- literally the core of that glorious heritage.  And together we're going to once again lead the world in peace and prosperity.  And it starts by building a foundation, a foundation for a new economy.  And it's going to be built on your shoulders, on your ingenuity, and your hard work.  I promise you that.  I promise you that.

So, folks, next time I come back I hope I see 1,244, and then 2,050.  I hope I see all over America -- all over America, by the time our term ends, real live good-paying jobs with companies making real profits, once again leading the world.

We're counting on you.  And I hope you know you can count on us.  Thanks for what you do.  May God bless you.  May God protect our troops.  Thank you very much.  (Applause.)

END
4:29 P.M. CDT

THE WHITE HOUSE

Office of the Vice President
___________________________________________________
For Immediate Release                      April 16, 2009

REMARKS BY THE VICE PRESIDENT
ON THE ADMINISTRATION'S COMMITMENT
TO THE MILITARY AND THEIR FAMILIES

Whiteman Air Force Base, Missouri

12:33 P.M. CDT

THE VICE PRESIDENT:  Thank you all very much.  (Applause.)  It's a genuine honor to be here, and where I come from, if you speak much more than 10 minutes with an audience standing, you're bound to lose them.  So I'm going to try to be brief with you all, but let you know that I'm genuinely honored to be here.

And I tell you what, seeing that B-2 looking over my shoulder is some sight.  You know, I just want the record to note, since there's press here, that when Ike said, "the best Air Force Base in America," I clapped.  I don't want anybody back in Dover getting angry.  (Laughter.)  I just want you to know we're used to those big ol' jobs, you know those big ol' C-5As and Bs.  And I'll tell you what, you're all -- you're all great.

The first thing I want to do though is congratulate Technical Sergeant Townsend for his service; you know, 17,000 miles on those roads, old buddy.  As my Italian friends say, that's a lot of (inaudible), that's a lot of worry, man, because I tell you, we have lost -- as all of you know, and most Americans haven't focused on it -- we have lost literally thousands of Americans.  The 70 percent of all those who have died in Iraq and Afghanistan have been as a consequence of an IED or projectile, the very people riding along in those convoys.  And the number has exceeded now over 4,000 in Iraq, and approaching 1,000 in Afghanistan.

So it was no mean feat, everyone should know.  You all know, in uniform, know.  But the people listening to this should know it is no mean feat what's going on today in Afghanistan and Iraq, and goes on as speak -- as we speak.  So we owe, we owe a debt of gratitude.  But it was a great honor, Sergeant, to be able to pin that bronze star on you.  You were probably less concerned jumping in the convoy than you were coming up here on stage, but you did well.

And I also want to thank my friend, Ike Skelton, for inviting me.  You know, as you all continue and have fought for your country, you're all very fortunate to have a man like Ike fighting for you.  I've never seen anybody as tenacious in fighting for his district, but more importantly, specifically fighting for the military -- fighting for the military, including this base.  He's been a long-time proponent -- a long-time proponent of making sure that life is better not only for you, that you're equipped and you have all you need, but that life is better on the base for you as well as your families.

You know, there's an old expression, "Those also serve who stand and wait."  An awful lot of your families, when you saddle up, they're left behind worrying about what's going to happen, worrying about whether that mission -- how it's going to take place.  Those of you who are deployed on the ground, they're left alone for periods of time.  And, you know, Ike has supported better military pay, better military health care, better military education, better lives for the men and women in uniform, and no less important is their families.  The families are never left out when Ike starts talking about and appropriating the money needed for the United States military.

And the Skelton name is synonymous with a deep commitment to the armed services, embodied by the Naval Reserve Building bearing his father's name -- Ike's dad's name, and a child development center named for his late wife who I knew well, and a wonderful woman, Susie. 

And his work on your behalf is exactly -- is exactly what we need, the President and me, to ensure that we maintain the absolute best equipped military in the world.  You are.  You are. 

As the commander and I were talking about, you are the premier military, not only in the world today, but it is not hyperbole to suggest in the history of the world.  And anybody who tells me -- (applause) -- some of the older folks start talking about this generation.  I just say, come with me.  Come with me and look.  Come with me into the mountains of Afghanistan.  Come with me up to Kunar Valley.  Come with me into the multiple cities I've been in to Iraq in the middle of this war.  Come to me -- with me, 15 years ago and 10 years ago in Bosnia.  Then you'll see that your generation are the most powerful, best disciplined, best trained warriors America has ever, ever produced.  And for that I thank you and we owe you -- and that is not an exaggeration.  (Applause.)

Folks, to the President, the Secretary of State and to me, when I say, "We owe you," these are not idle phrases.  When we say, "We owe you," we mean it more than just a nice salutation. 

That's why we're working so hard to improve the quality of life on bases all across America.  Here at Whiteman that means -- why we're here with $17.8 million investing to modernizing your facilities and generally improving the quality of life here. 

That's why the Recovery Act you hear so much about includes more than $7 billion -- in addition to the regular budget -- more than $7 billion for military construction projects, breaking ground on hospitals, child care centers, better housing. 

That's why we fought so hard for the most expansive GI Bill since the end of World War II to make college more affordable. 

All in all, this administration is wholly devoted to serving the brave women and men in uniform.  As you sacrifice to serve our country, we should do a little sacrifice serving you.

But our commitment doesn't end when your time at this base ends.  All of you will one day be veterans.  And our commitment extends to veterans, as well, because they have been forgotten a lot the last eight years, last 15 years.  President Obama and I are proud that our first budget, in these very tough times, we've increased funding for veterans to the tune of $25 billion -- increased funding for veterans for the Department of Veterans Affairs.  (Applause.)    

That's never happened before.  It's the biggest budget increase in a generation.  And when we proposed it, people said, how can you do that in the midst of this economy?  And our response is, how can we not do that?  How can we not do that?

Over 15,000 of the wounded coming home, not to count the fallen angels, came home to be buried.  The life expectancy of 15,000 of those -- well over 30,000 who've been wounded -- is going to be somewhere in the tune of 35 years.  But of that, roughly 15,000 will need the most modern medical health care for the rest of their lives.  The cost of that will be in the tens of billions of dollars, but it's a sacred, a sacred commitment.  The only sacred commitment a nation has is to prepare those we send, equip them with all they need, and care for whatever their needs are when they come home. 

Ladies and gentlemen, we dramatically increased health care coverage, providing adequate resources to give 5.5 million veterans timely and high quality health care.  We expand health care eligibility, bringing 500,000 new veterans into the VA system.  And just 15 years ago, as Ike could tell you, the talk was, are we going to close VA hospitals and fold them in?  You remember that, Ike?  Well, in the end, we're providing services to veterans with the efficiency and quality they deserve, and keeping that deep debt that we owe that you should and have a right to demand.

I believe, as I said, there's only one sacred obligation, one, that comes before all others.  We care deeply for every -- Republicans and Democrats alike, all those of us who serve -- care deeply for every man and woman who cares deeply enough to serve this country so honorably, which includes every one of you in this hangar.  We owe you a particular obligation today, because there's tens of thousands of men and women who have already fought and continue to fight bravely for our country in Afghanistan and Iraq. 

There are families -- families back at home -- I don't have to tell some of the National Guardsmen here -- who wasn't planning on this being your day job.  But guess what, it's become a day job for tens of thousands of Guardsmen, in addition to all your families -- all your families.

And to the families of the 4,275 men and women, the fallen angels in Iraq, the 673 fallen angels in Afghanistan, to all of them -- to the more than 35,000 wounded in theater -- I say to the families, thank you, thank you, and we owe you -- we owe you as deeply as we owe your kin, your blood. 

You know, in the more than dozen times I've flown out of Iraq and Afghanistan, on occasion I've walked into those C-130s with the fallen angels strapped to the floor, and when you see that, it turns that cavernous opening into a cathedral, because you know there's a family waiting at the other end.  So, folks, we know what you do.  We know what you risk.  And we know on this base what a remarkable, remarkable, remarkable capability you have. 

I was saying to the commander I spent a lot of time in Bosnia, in Kosovo.  And I spent time before we sent troops there helping convince the President we should act.  And the thing that the French military, the British military and others marveled at that you guys and women get up from your dinner table, suit up, get one of these magnificent birds, fly round-trip over 30 hours, deliver a lethal cargo with precision -- was beyond anything any other generation ever thought possible, saving the lives of your comrades on the ground and clearing the way for America's interest.

You stunned the rest of the world.  They knew it on paper, but they never saw it, Commander.  And the way you executed it with such incredible, incredible precision, absolutely had a mind-altering impact on our allies as well as our enemies.  We're proud of you.

You know, I read before I came here today about your base's nickname -- no, excuse me -- namesake, Second Lieutenant George Whiteman, who I learned was one of the first men killed in Pearl Harbor.  I honestly didn't know that before I was scheduled to come here.  After his death -- and you may know the story -- but after his death, a reporter went and talked to his mom.  And his mother gave the reporter a photograph of her son sitting in an aircraft where the Lieutenant had inscribed on it, "Lucky, lucky me."  Lucky, lucky me.

To me that story speaks volumes about the pride the airmen on this base and all through this nation around the world take in doing their jobs, about the sense of honor and duty that surrounds you every time you put on that uniform and step into a cockpit or ready an aircraft to be head off the runway.  It's about your unyielding commitment to your country.  It's about everything that makes each and every one of you so special. 

You are lucky, it's true.  But even luckier, even truer is we.  Your grateful nation are lucky there are men and women like you ready to serve as you have and you continue to.

So from the bottom of my heart, on behalf of every one of those young men and women on the ground like my son in Iraq, I say to all of you I admire you, the President admires you, and we are putting our money where our mouth is in terms of seeing to it that you have everything you need as you deploy, when you deploy, and when you come home.

So I say thank you, God bless you, and may God protect our troops around the globe.  Thank you very much, ladies and gentlemen.  (Applause.)

END
12:49 P.M. CDT

THE WHITE HOUSE

Office of the Press Secretary
(Mexico City, Mexico)

______________________________________________________________
FOR IMMEDIATE RELEASE                                  April 16, 2009

REMARKS BY PRESIDENT BARACK OBAMA
AT WELCOMING CEREMONY

Los Pinos
Mexico City, Mexico


2:30 P.M. CDT

PRESIDENT OBAMA: Well, thank you very much. This is an extraordinary honor and an extraordinary pleasure to be here in Mexico with all of you today. I want to thank President Calderón and his wonderful First Lady and the delegation for their hospitality and facilitating this trip. And I want to thank the people of Mexico for the warmth with which I've been received, especially the young people who are here today. Thank you very much. (Applause.)

There is a reason why the first visit that I had with a foreign leader after my election was with President Calderón. It was a reminder, as John F. Kennedy said, that the bonds between our two countries cannot be broken. We are joined by a border, but our bonds are so much more than that. In my hometown of Chicago, the population is at least one-third made up of people of Mexican heritage. All across America, all across the United States, we have benefitted from the culture, the language, the food, the insights, the literature, the energy, the ambitions of people who have migrated from our southern neighbor.

And my hope is, is that the United States has had something to offer to Mexico, as well. So our relationship, our friendship is strong, but as President Calderón said, we can make it stronger.

At a time where all of us are dealing with an extraordinary global recession, where unemployment is on the rise, where credit has begun to shrink, where businesses are struggling, it is more important than ever that we work together not only to restore economic growth in Mexico and the United States, but also to make sure that growth is sustainable, and to make sure that growth is from the bottom up, so that each and every person -- every young person here in Mexico, as well as every young person in the United States -- has an opportunity to live out their dreams.

At a time when the Mexican government has so courageously taken on the drug cartels that have plagued both sides of the borders, it is absolutely critical that the United States joins as a full partner in dealing with this issue, both through initiatives like the Merida Initiative, but also on our side of the border, in dealing with the flow of guns and cash south.

And at a time when Mexico is not just a regional leader, but now a global leader, as shown by its outstanding participation in the G20 summit and other multilateral organizations, it's critical that we join together around issues that can't be solved by any one nation -- issues like climate change, issues like poverty, issues like terrorism. These are issues in which the United States and Mexico will have to stand side by side in order to promote common security and common prosperity.

And so it is wonderfully fitting to see the children of Mexico, as well as, I suspect, a few children of the United States here together, waving flags of both countries, because we are reminded -- (applause) -- because we are reminded that ultimately the reason that we serve in government, ultimately the reason that bilateral relationships like this are so important, is because it allows us to promote a better future for our children.

That's what we're fighting for, for their dreams, for their opportunities, for their futures. And I'm very much looking forward to developing the kind of relationship between Mexico and the United States that will allow all the children here and all the children in both countries to thrive for years to come.

So thank you very much, Mr. President, Madam First Lady, and to all of you, for welcoming me in such a gracious way. Thank you. (Applause.)

END 2:36 P.M. CDT

THE WHITE HOUSE
Office of the Press Secretary
________________________________________________________________
For Immediate Release                             April 16, 2009 
REMARKS BY THE PRESIDENT
AND THE VICE PRESIDENT
ON A VISION FOR HIGH-SPEED RAIL IN AMERICA
 Room 450
Dwight D. Eisenhower Executive Office Building
9:33 A.M. EDT
THE VICE PRESIDENT:  Thank you.  (Applause.)  I promise these comments will be shorter than the ride -- (laughter) -- a ride, Mr. President, I've taken about a thousand times with Rob Andrews and Frank Lautenberg and others in the Northeast Corridor.  But what gem we've had in the Northeast Corridor.  It's time it gets extended throughout the country and improved. 
Mr. Secretary, thank you.  You know, we often refer to the American Recovery and Reinvestment Act, as I've been going around the country -- shorthand I call it the Recovery Act, Mr. President, for short.  But today, we're here to talk about the other part of the effort, the reinvestment -- the reinvestment part of the Recovery and Reinvestment Act, the commitment to building our nation's future.
And you see while the vast majority of what we're doing in the Recovery Act is about short-term job creation -- as it should be, and is our top priority -- we also set aside some funds to build America's long-term economic future, which you all understand very well, assembled in this room. 
And we're making a down payment today, a down payment on the economy for tomorrow, the economy that's going to drive us in the 21st century in a way that the other -- the highway system drove us in the mid-20th century.  And I'm happy to be here.  I'm more happy than you can imagine -- (laughter) -- to talk about a commitment that, with the President's leadership, we're making to achieve the goal through the development of high-speed rail projects that will extend eventually all across this nation.  And most of you know that not only means an awful lot to me, but I know a lot of you personally in this audience over the years, I know it means equally as much to you. 
With high-speed rail system, we're going to be able to pull people off the road, lowering our dependence on foreign oil, lowering the bill for our gas in our gas tanks.  We're going to loosen the congestion that also has great impact on productivity, I might add, the people sitting at stop lights right now in overcrowded streets and cities.  We're also going to deal with the suffocation that's taking place in our major metropolitan areas as a consequence of that congestion.  And we're going to significantly lessen the damage to our planet.  This is a giant environmental down payment. 
All in all, we're going to make travel in this country leaner and a whole lot cleaner.  And as we look to the future, we're going to ensure that we can travel through the system that is sound, secure and able to handle full-speed-ahead progress for this new economy.
You know, as it's been mentioned often, I'm not sure it's good or bad, but my father referred to my many commutes -- it exceeded over 7,900, they tell me -- he said one day before he died -- he said, you know, honey -- he said, "That is the definition of a misspent adulthood, sitting on a train."  (Laughter.)
But I've -- I have, like many in this room, devoted most of my career to doing what I can to support America's rail systems.  So I'm really proud to be part of an administration led by a man who has real vision; real vision about how to not only transform this country generally, but transform our transportation system in a fundamental way.  It's about time we took those railways and made them the national treasures they should be.  They're the best way to reconnect and connect communities to each other to move us all forward in the 21st century.
And many people deserve credit for this:  the great congressional leaders who've been introduced today, many of you -- if I started going through the audience, the people I've known who have been working in the vineyards in this, we'd be here all day, Mr. President.  But there are so many critical aspects of this, so many supporters in state capitals among the cities, among the governors.
But on behalf of those of us who've been waiting for this day for decades, Mr. President, I want to pay particular thanks to three people.  And the first is Secretary LaHood for his leadership and vision.  He jumped right into this job and he didn't miss a step, didn't miss a beat, and was ready to go from day one.  And this is very uncharacteristic of me, Mr. President, but I want to thank Rahm Emanuel.  (Laughter.)  Not only as smart as a devil, not only as a former congressman, I believe, Mr. President, it was Rahm's tenacious, tenacious persistence that led to getting this high-speed rail funding in the Recovery Act.  It was at your direction, but I'm not sure it would have been able to have been done without Rahm.  And third, to the man who in this area is, as so many others, has turned the years of talk in Washington into a season of action, President Barack Obama. 
Ladies and gentlemen, join me in welcoming the man who's making this possible.  And this will be one of the many parts of a great legacy he's going to leave -- President Barack Obama.  (Applause.)
THE PRESIDENT:  Thank you very much.  That is a wonderful reception, and I want to, in addition to Ray LaHood and Joe Biden, Rahm Emanuel, all of who have worked on this extensively, I also want to acknowledge Jim Oberstar and Rob Andrews, two of our finest members of Congress, both people who understand that investing in our infrastructure, investing in our transportation system pays enormous dividends over the long term.  So I'm grateful to them.  (Applause.)
You know, I've been speaking a lot lately about what we're doing to break free of our economic crisis so to put people back to work and move this nation from recession to recovery.  And one area in which we can make investments with impact both immediate and lasting is in America's infrastructure.
And that's why the Recovery and Reinvestment Plan we passed not two months ago included the most sweeping investment in our infrastructure since President Eisenhower built the Interstate Highway System in the 1950s.  And these efforts will save money by untangling gridlock, and saving lives by improving our roads, and save or create 150,000 jobs, mostly in the private sector, by the end of next year.  Already, it's put Americans back to work.  And so far, we're ahead of schedule, we're under budget, and adhering to the highest standards of transparency and accountability.
But if we want to move from recovery to prosperity, then we have to do a little bit more.  We also have to build a new foundation for our future growth.  Today, our aging system of highways and byways, air routes and rail lines is hindering that growth.  Our highways are clogged with traffic, costing us $80 billion a year in lost productivity and wasted fuel.  Our airports are choked with increased loads.  Some of you flew down here and you know what that was about.  We're at the mercy of fluctuating gas prices all too often; we pump too many greenhouse gases into the air.
What we need, then, is a smart transportation system equal to the needs of the 21st century.  A system that reduces travel times and increases mobility.  A system that reduces congestion and boosts productivity.  A system that reduces destructive emissions and creates jobs.
What we're talking about is a vision for high-speed rail in America.  Imagine boarding a train in the center of a city.  No racing to an airport and across a terminal, no delays, no sitting on the tarmac, no lost luggage, no taking off your shoes.  (Laughter.)  Imagine whisking through towns at speeds over 100 miles an hour, walking only a few steps to public transportation, and ending up just blocks from your destination.  Imagine what a great project that would be to rebuild America.
Now, all of you know this is not some fanciful, pie-in-the-sky vision of the future.  It is now.  It is happening right now.  It's been happening for decades.  The problem is it's been happening elsewhere, not here. 
In France, high-speed rail has pulled regions from isolation, ignited growth, remade quiet towns into thriving tourist destinations.  In Spain, a high-speed line between Madrid and Seville is so successful that more people travel between those cities by rail than by car and airplane combined.  China, where service began just two years ago, may have more miles of high-speed rail service than any other country just five years from now.  And Japan, the nation that unveiled the first high-speed rail system, is already at work building the next:  a line that will connect Tokyo with Osaka at speeds of over 300 miles per hour.  So it's being done; it's just not being done here.
There's no reason why we can't do this.  This is America.  There's no reason why the future of travel should lie somewhere else beyond our borders.  Building a new system of high-speed rail in America will be faster, cheaper and easier than building more freeways or adding to an already overburdened aviation system –- and everybody stands to benefit.
And that's why today, with the help of Secretary LaHood and Vice President Biden, America's number one rail fan, I've been told -- (laughter) -- I'm announcing my administration's efforts to transform travel in America with an historic investment in high-speed rail. 
And our strategy has two parts: improving our existing rail lines to make current train service faster -- so Rob can, you know, shave a few hours over the course of a week -- but also identifying potential corridors for the creation of world-class high-speed rail.  To make this happen, we've already dedicated $8 billion of Recovery and Reinvestment Act funds to this initiative, and I've requested another $5 billion over the next five years.
The Department of Transportation expects to begin awarding funds to ready projects before the end of this summer, well ahead of schedule.  And like all funding decisions under the Recovery Act, money will be distributed based on merit -- not on politics, not as favors, not for any other consideration --purely on merit.
Now, this plan is realistic.  And the first round of funding will focus on projects that can create jobs and benefits in the near term.  We're not talking about starting from scratch, we're talking about using existing infrastructure to increase speeds on some routes from 70 miles an hour to over 100 miles per hour -- so you're taking existing rail lines, you're upgrading them.  And many corridors merit even faster service, but this is the first step that is quickly achievable, and it will create jobs improving tracks, crossings, signal systems.
The next step is investing in high-speed rail that unleashes the economic potential of all our regions by shrinking distances within our regions.  There are at least 10 major corridors in the United States of 100 to 600 miles in length with the potential for successful high-speed rail systems.  And these areas have explored its potential impact on their long-term growth and competitiveness, and they've already presented sound plans.  I want to be clear:  No decision about where to allocate funds has yet been made, and any region can step up, present a plan and be considered.
The high-speed rail corridors we've identified so far would connect areas like the cities of the Pacific Northwest; southern and central Florida; the Gulf Coast to the Southeast to our nation's capital; the breadth of Pennsylvania and New York to the cities of New England; and something close to my heart, a central hub network that draws the cities of our industrial heartland closer to Chicago and one another.
Or California, where voters have already chosen to move forward with their own high-speed rail system, a system of new stations and 220 mile-per-hour trains that links big cities to inland towns; that alleviates crippling congestion on highways and at airports; and that makes travel from San Francisco to Los Angeles possible in two and a half hours.
And by making investments across the country, we'll lay a new foundation for our economic competitiveness and contribute to smart urban and rural growth.  We'll create highly-skilled construction and operating jobs that can't be outsourced, and generate demand for technology that gives a new generation of innovators and entrepreneurs the opportunity to step up and lead the way in the 21st century.  We'll move to cleaner energy and a cleaner environment, we'll reduce our need for foreign oil by millions of barrels a year, and eliminate more than 6 billion pounds of carbon dioxide emissions annually –- equal to removing 1 million cars from our roads.
Now, I know that this vision has its critics.  There are those who say high-speed rail is a fantasy -- but its success around the world says otherwise.  I know Americans love their cars, and nobody is talking about replacing the automobile and our highways as critical parts of our transportation system.  We are upgrading those in the Recovery Package, as well.  But this is something that can be done, has been done, and can provide us enormous benefits.
Now, there are those who argue that if an investment doesn't directly benefit the people of their district, then it shouldn't be made.  Jim, you know some of those arguments.  (Laughter.)  But if we followed that rationale, we'd have no infrastructure at all. 
There are those who say, well, this investment is too small.  But this is just a first step.  We know that this is going to be a long-term project.  But us getting started now, us moving the process forward and getting people to imagine what's possible, and putting resources behind it so that people can start seeing examples of this around the country, that's going to spur all kinds of activity.
Now finally, there are those who say at a time of crisis, we shouldn't be pursuing such a strategy; we've got too many other things to do.  But our history teaches us a different lesson.
As Secretary LaHood just mentioned, President Lincoln was committed to a nation connected from East to West, even at the same time he was trying to hold North and South together.  He was in the middle of a Civil War.  While fighting raged on one side of the continent, tens of thousands of Americans from all walks of life came together on the other.  Dreamers and risk-takers willing to invest in America.  College-educated engineers and supervisors who learned leadership in war.  American workers and immigrants from all over the world.  Confederates and Yankees joined on the same side.
And eventually, those two sets of tracks met.  And with one final blow of a hammer, backed by years of hard work and decades of dreams, the way was laid for a nationwide economy.  A telegraph operator sent out a simple message to a waiting nation.  It just said, "DONE."  (Laughter.)  A newspaper proclaimed: "We are the youngest of peoples.  But we are teaching the world to march forward."
In retrospect, America's march forward seems inevitable.  But time and again, it's only made possible by generations that are willing to work and sacrifice and invest in plans to make tomorrow better than today.  That's the vision we can't afford to lose sight of.  That's the challenge that's fallen to this generation.  And with this strategy for America's transportation future, and our efforts across all fronts to lay a new foundation for our lasting prosperity, that is the challenge we will meet.
"Make no little plans."  That's what Daniel Burnham said in Chicago.  I believe that about America:  Make no little plans.  So let's get to work.  Thank you, everybody.  (Applause.)
END                                                          
9:50 A.M. EDT
 
THE WHITE HOUSE

Office of the Press Secretary
________________________________________________________
For Immediate Release                             April 15, 2009

REMARKS BY THE PRESIDENT
ON TAXES

Room 350
Dwight D. Eisenhower Executive Office Building

12:02 P.M. EDT

THE PRESIDENT:  Good morning.  I decided not to bring Bo today -- because he stepped on my economic speech yesterday.  (Laughter.)

Good morning.  I know that April 15th isn't exactly everyone's favorite date on the calendar.  But it is an important opportunity for those of us in Washington to consider our responsibilities to the people who sent us here and who pay the bills.  And I've brought some friends of mine who sent me here and pay the bills.

Across America, families like the people who join me have had tough choices forced upon them because of this economic downturn.  Many have lost a job; many are fighting to keep their business open.  Many more are struggling to make payments, to stay in their home, or to pursue a college education.  And these Americans are the backbone of our economy, the backbone of our middle class.  They're the workers, the innovators, the students who are going to be powering our recovery.  So their dreams have to be our own.  They need a government that is working to create jobs and opportunity for them, rather than simply giving more and more to those at the very top in the false hope that wealth automatically trickles down.

And that's why my administration has taken far-reaching action to give tax cuts to the Americans who need them, while jump-starting growth and job creation in the process.  We start from the simple premise that we should reduce the tax burden on working people, while helping Americans go to college, own a home, raise a family, start a business and save for retirement. 

Those goals are the foundation of the American Dream, and they are the focus of my tax policy.

First, we've passed a broad and sweeping tax cut for 95 percent of American workers.  This tax cut was a core focus of my campaign, it was a core component of the American Recovery and Reinvestment Act, and it is the most progressive tax cut in American history.  And starting April 1st, Americans saw this tax cut in the extra money that they took home with each paycheck.

Make no mistake:  This tax cut will reach 120 million families and put $120 billion directly into their pockets, and it includes the most American workers ever to get a tax cut.  This is going to boost demand, and it will save or create over half a million jobs.  And the Congressional Budget Office has found that tax cuts like these for American workers are more than three times more effective in stimulating recovery than tax breaks for the very wealthiest Americans.

This tax cut also keeps a fundamental promise:  that Americans who work hard should be able to make a decent living.  It lifts more than 2 million Americans out of poverty.  And together with the child tax credit, it ensures that a working parent will be able to support their family.

Second, we are helping small businesses keep their doors open so they can weather this economic storm and create good jobs.  Instead of the normal two years, small businesses are now allowed to offset their losses during this downturn against the income they've earned over the last five years.  And this could provide a record number of refunds for small businesses, which will provide them with the lifeline they need to maintain inventory and pay their workers.

Third, we are helping Americans get the education they need to succeed in a global economy.  For years we've seen the price of tuition skyrocket at the same time that it became more and more important to earn a college degree.  And that's why we are making college more affordable for every American that needs a hand.  That is why we are committed to simplifying the student loan process so more families can get the help they need.  And that's also why our $2,500 tax credit for all four years of college will help us reach a goal that will help our country lead in the 21st century:  By 2020, Americans once again will have the highest proportion of college graduates in the world.

Fourth, we are helping more Americans purchase homes that they can afford.  Just as we must put an end to the irresponsible lending and borrowing that created the housing bubble, we must restore the home as a source of stability and an anchor of the American Dream.  That's why we're providing a tax credit of up to $8,000 for first-time home buyers, which will put a home within reach for hardworking Americans who are playing by the rules and making responsible choices.  And by the way, there are at least a couple of folks here who have already used that $8,000 credit, and I think it's wonderful to see that this is already prompting some willingness for people to go ahead and make that first-time purchase where they thought maybe it was out of reach before.

Fifth, we know that tax relief must be joined with fiscal discipline.  Americans are making hard choices in their budgets, and we've got to tighten our belts in Washington, as well.  And that's why we've already identified $2 trillion in deficit reductions over the next decade.  And that's why we're cutting programs that don't work, contracts that aren't fair, and spending that we don't need.

We're also doing away with the unnecessary giveaways that have thrown our tax code out of balance.  I said this during the campaign, I'm now saying it as President:  We need to stop giving tax breaks to companies that stash profits or ship jobs overseas so we can invest in job creation here at home.  And we need to end the tax breaks for the wealthiest 2 percent of Americans, so that people like me, who are extraordinarily lucky, are paying the same rates that the wealthiest 2 percent of Americans paid when Bill Clinton was President.

Finally, we need to simplify a monstrous tax code that is far too complicated for most Americans to understand, but just complicated enough for the insiders who know how to game the system.  So I've already started by asking Paul Volcker and my Economic Recovery Board to do a thorough review of how to simplify our tax code, and to report back to me by the end of this year.  It's going to take time to undo the damage of years of carve-outs and loopholes.  But I want every American to know that we will rewrite the tax code so that it puts your interests over any special interests.  And we'll make it easier, quicker and less expensive for you to file a return, so that April 15th is not a date that is approached with dread every year.

Now, I just had a conversation with these wonderful Americans, and like people I talked to all across the country, they're not looking for a free ride.  Every single person here is working hard and deserves a chance to get ahead.  And they're a family like -- families like the Kirkwoods, who just want to own their own business and put away some money away for their kids' college tuition.  And they're workers like Clark Harrison, behind me, who has worked hard and wants to be able to purchase that first home.  They're business owners like Alan Givens, who wants his company to sustain itself through bad times as well as the good.  And I was encouraged to hear that Alan's business is going strong on a whole bunch of clean energy measures that he's helping to promote in his area.

For too long, we've seen taxes used as a wedge to scare people into supporting policies that actually increased the burden on working people instead of helping them live their dreams.  That has to change, and that's the work that we've begun.  We've passed tax cuts that will help our economy grow.  We've made a clear promise that families that earn less than $250,000 a year will not see their taxes increase by a single dime.  And we have kept to those promises that were made during the campaign.  We've given tax relief to the Americans who need it and the workers who have earned it.  And we're helping more Americans move towards their American Dream by going to school, owning a home, keeping their business and raising their family.

So on this April 15th, we're reminded of the enormous responsibility that comes with handling peoples' tax dollars. And we're renewing our commitment to a simpler tax code that rewards work and the pursuit of the American Dream.  And I just again want to personally thank all of the families, folks who join me here today, because they inspire me to do what I do every single day.

All right, thank you, everybody.

END
12:10 P.M. EDT

THE WHITE HOUSE
Office of the Press Secrectary
____________________________________________________________
For Immediate Release                                                April 14, 2009
REMARKS BY THE PRESIDENT
ON THE ECONOMY
Georgetown University
Washington, D.C.
11:43 A.M. EDT
THE PRESIDENT: Thank you so much. (Applause.) It's good to be back. Thank you so much. Please, everybody be seated. (Applause.) Well, to President DeGioia, thank you so much for the gracious introduction, and thanks for bringing your family -- including JT -- appreciate you. We're going to invite him over, hang out with the girls. (Laughter.) He's a pretty good-looking young man. (Laughter.)
To Mayor Adrian Fenty, who's doing such a great job in this city, thank you so much for your attendance. (Applause.) To Representative Donna Edwards, who is here and represents Maryland's 4th District, thank you. (Applause.)
To Georgetown University students, it is great to be here. (Applause.) Well, it is good to be back. I appeared in this room during the campaign and had a wonderful reception then, and it's wonderful to be back and be with all of you.
We're going to talk about the economy today. And I was telling President DeGioia this may be a slightly longer speech than I usually give, but it's a slightly bigger topic, and that is how we are going to deal with so many of our economic challenges.
You know, it's been 12 weeks now since my administration began. And I think that even our critics would agree that at the very least, we've been busy. (Laughter.) In just under three months, we've responded to an extraordinary set of economic challenges with extraordinary action -- action that's been unprecedented both in terms of its scale and its speed.
And I know that some have accused us of taking on too much at once. Others believe we haven't done enough. And many Americans are simply wondering how all of our different programs and policies fit together in a single, overarching strategy that will move this economy from recession to recovery and ultimately to prosperity.
So today, I want to step back for a moment and explain our strategy as clearly as I can. This is going to be prose, and not poetry. I want to talk about what we've done, why we've done it, and what we have left to do. I want to update you on the progress we've made, but I also want to be honest about the pitfalls that may still lie ahead.
Most of all, I want every American to know that each action we take and each policy we pursue is driven by a larger vision of America's future -- a future where sustained economic growth creates good jobs and rising incomes; a future where prosperity is fueled not by excessive debt, or reckless speculation, or fleeting profits, but is instead built by skilled, productive workers, by sound investments that will spread opportunity at home and allow this nation to lead the world in the technologies and the innovation and discoveries that will shape the 21st century. That's the America I see. That's the America that Georgetown is preparing so many of you for. That is the future that I know that we can have.
Now, to understand how we get there, we first need to understand how we got here.
Recessions are not uncommon. Markets and economies naturally ebb and flow, as we've seen many times in our history. But this recession is different. This recession was not caused by a normal downturn in the business cycle. It was caused by a perfect storm of irresponsibility and poor decision-making that stretched from Wall Street to Washington to Main Street.
As has been widely reported, it started in the housing market. During the course of the decade, the formula for buying a house changed: Instead of saving their pennies to buy their dream house, many Americans found that suddenly they could take out loans that by traditional standards their incomes just could not support. Others were tricked into signing these subprime loans by lenders who were trying to make a quick profit. The reason these loans were so readily available was that Wall Street saw big profits to be made. Investment banks would buy and package together these questionable mortgages into securities, arguing that by pooling the mortgages the risks had somehow been reduced. And credit agencies that are supposed to help investors determine the soundness of various investments stamped the securities with their safest rating when they should have been labeled "Buyer Beware."
No one really knew what the actual value of these securities were, no one fully understood what the risks were. But since the housing market was booming and prices were rising, banks and investors just kept buying and selling them, always passing off the risk to someone else for a greater profit without having to take any of the ultimate responsibility. Banks took on more debt than they could handle.
The government-chartered companies Fannie Mae and Freddie Mac, whose traditional mandate was to help support traditional mortgages, decided to get in on the action by buying and holding billions of dollars of these securities. AIG, the biggest insurer in the world that had a very traditional insurance business that was very profitable, decided to make profits suddenly by selling billions of dollars of complicated financial instruments that supposedly insured these securities. Everybody was making record profits -- except the wealth created was real only on paper. And as the bubble grew, there was almost no accountability or oversight from anyone in Washington.
Then the housing bubble burst. Home prices fell. People began to default on their subprime mortgages. And the value of all those loans and securities plummeted. Banks and investors couldn't find anyone to buy them. Greed gave way to fear. Investors pulled their money out of the market. Large financial institutions that didn't have enough money on hand to pay off all their obligations collapsed. Other banks held on tight to their money and simply stopped lending.
Now, this is when the crisis spread from Wall Street to Main Street. After all, the ability to get a loan is how you finance the purchase of everything from a home to a car to, as you all know very well, a college education. It's how stores stock their shelves, and farms buy equipment, and businesses make payroll. So when banks stopped lending money, businesses started laying off workers. When laid-off workers had less money to spend, businesses were forced to lay off even more workers. When people couldn't get a car loan, a bad situation at the auto companies became even worse. When people couldn't get home loans, the crisis in the housing market only deepened. Because the infected securities were being traded worldwide and other nations also had weak regulations, this recession soon became global. And when other nations can't afford to buy our goods, it slows our economy even further.
So this is the situation, the downward spiral that we confronted on the day that we took office. So our most urgent task has been to clear away the wreckage, repair the immediate damage to the economy, and do everything we can to prevent a larger collapse. And since the problems we face are all working off each other to feed a vicious economic downturn, we've had no choice but to attack all fronts of our economic crisis simultaneously.
The first step was to fight a severe shortage of demand in the economy. So the Federal Reserve did this by dramatically lowering interest rates last year in order to boost investment. My administration and Congress boosted demand by passing the largest recovery plan in our nation's history. It's a plan that's already in the process of saving or creating 3.5 million jobs over the next two years. It's putting money directly into people's pockets with a tax cut for 95 percent of working families that's now showing up in paychecks across America. And to cushion the blow of this recession, we also provided extended unemployment benefits and continued health care coverage to Americans who've lost their jobs through no fault of their own.
Now, you will recall that some argued this recovery plan is a case of irresponsible government spending, that it's somehow to blame for our long-term deficit projections, and that the federal government should be cutting instead of increasing spending right now. So I want to tackle this argument head on.
To begin with, economists on both the left and the right agree that the last thing a government should do in the middle of a recession is to cut back on spending. You see, when this recession began, many families sat around the kitchen table and tried to figure out where they could cut back. And so have many businesses. And this is a completely reasonable and understandable reaction. But if everybody -- if everybody -- if every family in America, if every business in America cuts back all at once, then no one is spending any money, which means there are no customers, which means there are more layoffs, which means the economy gets even worse. That's why the government has to step in and temporarily boost spending in order to stimulate demand. That's exactly what we're doing right now.
Second, I absolutely agree that our long-term deficit is a major problem that we have to fix. But the fact is that this recovery plan represents only a tiny fraction of that long-term deficit. As I'll discuss in a moment, the key to dealing with our long-term deficit and our national debt is to get a handle on out-of-control health care costs -- not to stand idly by as the economy goes into free fall.
So the recovery plan has been the first step in confronting this economic crisis. The second step has been to heal our financial system so that credit is once again flowing to the businesses and families who rely on it.
The heart of this financial crisis is that too many banks and other financial institutions simply stopped lending money. In a climate of fear, banks were unable to replace their losses from some of those bad mortgages by raising new capital on their own, and they were unwilling to lend the money they did have because they were afraid that no one would pay it back. It's for this reason that the last administration used what they called the Troubled Asset Relief Program, or TARP, to provide these banks with temporary financial assistance in order to get them lending again.
Now, I understand that TARP is not popular, and I have to say that I don't agree with some of the ways the TARP program was managed, but I do agree with the broader rationale that we must provide banks with the capital and the confidence necessary to start lending again. That's the purpose of the stress tests that will soon tell us how much additional capital will be needed to support lending at our largest banks. Ideally, these needs will be met by private investors who are willing to put in money to these banks. But where that's not possible, and banks require substantial additional resources from the government, then we will hold accountable those who are responsible, we'll force the necessary adjustments, we'll provide the support to clean up those bank balance sheets, and we will assure the continuity of a strong and viable institution that can serve our people and our economy.
Of course, there are some who differ with our approach. On the one hand, there are some who argue that the government should stand back and simply let these banks fail -- especially since in many cases it was their bad decisions that helped create the crisis in the first place. But whether we like it or not, history has shown repeatedly that when nations do not take early and aggressive action to get credit flowing again, they have crises that last years and years instead of months and months -- years of low growth, years of low job creation, years of low investment, all of which cost these nations far more than a course of bold, upfront action.
And although there are a lot of Americans who understandably think that government money would be better spent going directly to families and businesses instead of to banks -- one of my most frequent questions in the letters that I get from constituents is, "Where's my bailout?" -- and I understand the sentiment. It makes sense intuitively, and morally it makes sense, but the truth is that a dollar of capital in a bank can actually result in $8 or $10 of loans to families and businesses. So that's a multiplier effect that can ultimately lead to a faster pace of economic growth. That's why we have to fix the banks.
Now, on the other hand, there have been some who don't dispute that we need to shore up the banking system, but they suggest that we've been too timid in how we go about it. This is essentially the nationalization argument that some of you may have heard. And the argument says that the federal government should have already preemptively stepped in and taken over major financial institutions the way that the FDIC currently intervenes in smaller banks, and that our failure, my administration's failure to do so is yet another example of Washington coddling Wall Street -- "Why aren't you tougher on the banks?"
So let me be clear: The reason we have not taken this step has nothing to do with any ideological or political judgment we've made about government involvement in banks. It's certainly not because of any concern we have for the management and shareholders whose actions helped to cause this mess. Rather, it's because we believe that preemptive government takeovers are likely to end up costing taxpayers even more in the end, and because it's more likely to undermine than create confidence.
Governments should practice the same principle as doctors: First, do no harm. So rest assured -- we will do whatever is necessary to get credit flowing again, but we will do so in ways that minimize risks to taxpayers and to the broader economy. To that end, in addition to the program to provide capital to the banks, we've launched a plan that will pair government resources with private investment in order to clear away the old loans and securities -- the so-called toxic assets -- that are also preventing our banks from lending money.
Now, what we've also learned during this crisis is that our banks aren't the only institutions affected by these toxic assets that are clogging the financial system. AIG, for example, is not a bank, it's an insurance company, as I mentioned -- and yet because it chose to insure billions of dollars worth of risky assets, essentially creating a hedge fund on top of an insurance company, its failure could threaten the entire financial system and freeze lending even more. And that's why, as frustrating as it is -- and I promise you, nobody is more frustrated than me with AIG -- (laughter) -- I promise -- we had to provide support for AIG, because the entire system, as fragile as it is, could be profoundly endangered if AIG went into a liquidation bankruptcy.
It's also why we need new legal authority so that we have the power to intervene in such financial institutions, the same way that bankruptcy courts currently do with businesses that hit hard times but don't pose systemic risks -- and that way we can restructure these businesses in an orderly way that doesn't induce panic in the financial system -- and, by the way, will allow us to restructure inappropriate bonus contracts without creating a perception the government can just change compensation rules on a whim.
This is also why we're moving aggressively to unfreeze markets and jumpstart lending outside the banking system, where more than half of all lending in America actually takes place. To do this, we've started a program that will increase guarantees for small business loans and unlock the market for auto loans and student loans. And to stabilize the housing market, we've launched a plan that will save up to four million responsible homeowners from foreclosure and help many millions more to refinance their homes.
In a few weeks, we will also reassess the state of Chrysler and General Motors, two companies with an important place in our history and a large footprint in our economy -- but two companies that have also fallen on hard times.
Late last year, the companies were given transitional loans by the previous administration to tide them over as they worked to develop viable business plans. Unfortunately, the plans they developed fell short, so we've given them some additional time to work these complex issues through. And by the way, we owed that not to the executives whose bad bets contributed to the weakening of their companies, but to the hundreds of thousands of workers whose livelihoods hang in the balance -- entire towns, entire communities, entire states are profoundly impacted by what happens in the auto industry.
Now, it is our fervent hope that in the coming weeks, Chrysler will find a viable partner and GM will develop a business plan that will put it on a path to profitability without endless support from American taxpayer. In the meantime, we're taking steps to spur demand for American cars and provide relief for autoworkers and their communities. And we will continue to reaffirm this nation's commitment to a 21st-century American auto industry that creates new jobs and builds the fuel-efficient cars and trucks that will carry us toward a clean-energy future.
Finally, to coordinate a global response to this global recession, I went to the meeting of the G20 nations in London the other week. Each nation has undertaken significant stimulus to spur demand. All agreed to pursue tougher regulatory reforms. We also agreed to triple the lending capacity of the International Monetary Fund -- which, as many of you know, is an international financial institution supported by all the major economies -- so that they can provide direct assistance to developing nations and vulnerable populations. That's not just charity; because America's success depends on whether other nations have the ability to buy what we sell, it's important that we pay attention to these emerging markets.
We pledged to avoid the trade barriers and protectionism that hurts us all in the end. And we decided to meet again in the fall to gauge our progress and take additional steps if necessary.
So that's where we've been, that's what we've done in the last three months. All of these actions -- the Recovery Act, the bank capitalization program, the housing plan, the strengthening of the non-bank credit market, the auto plan, and our work at the G20 -- all have been necessary pieces of the recovery puzzle. They've been designed to increase aggregate demand to get credit flowing again to families and businesses and to help families and businesses ride out the storm. And taken together, these actions are starting to generate signs of economic progress.
Because of our recovery plan, schools and police departments have cancelled planned layoffs; clean energy companies and construction companies are re-hiring workers to build everything from energy-efficient windows to new roads and highways. Our housing plan has helped lead to a spike in the number of homeowners who are taking advantage of historically-low mortgage rates by refinancing, which is like putting a $2,000 tax cut in your pocket. Our program to support the market for auto loans and student loans has started to unfreeze this market and securitize more of this lending in the last few weeks. And small businesses are seeing a jump in loan activity for the first time in months.
Now, this is all welcome and encouraging news. It does not mean the hard times are over; 2009 will continue to be a difficult year for America's economy, and obviously, most difficult for those who've lost their jobs. The severity of this recession will cause more job loss, more foreclosures, and more pain before it ends. The market will continue to rise and fall. Credit is still not flowing nearly as easily as it should. The process for restructuring AIG and the auto companies will involve difficult and sometimes unpopular choices; we are not finished yet on that front. And all of this means that there's much more work to be done. But all of this also means that you can continue to expect an unrelenting, unyielding, day-by-day effort from this administration to fight for economic recovery on all fronts.
But even as we continue to clear away the wreckage and address the immediate crisis, it is my firm belief that our next task, beginning now, is to make sure such a crisis never happens again. (Applause.) Even as we clean up balance sheets and get credit flowing again, even as people start spending and businesses start hiring -- all that's going to happen -- we have to realize that we cannot go back to the bubble-and-bust economy that led us to this point.
It is simply not sustainable to have a 21st-century financial system that is governed by 20th-century rules and regulations that allowed the recklessness of a few to threaten the entire economy. It is not sustainable to have an economy where in one year, 40 percent of our corporate profits came from a financial sector that was based on inflated home prices, maxed-out credit cards, over-leveraged banks and overvalued assets. It's not sustainable to have an economy where the incomes of the top 1 percent has skyrocketed while the typical working household has seen their incomes decline by nearly $2,000. That's just not a sustainable model for long-term prosperity.
For even as too many were out there chasing ever-bigger bonuses and short-term profits over the last decade, we continued to neglect the long-term threats to our prosperity: the crushing burden that the rising cost of health care is placing on families and businesses; the failure of our education system to prepare our workers for a new age; the progress that other nations are making on clean energy industries and technologies while we -- we remain addicted to foreign oil; the growing debt that we're passing on to our children. Even after we emerge from the current recession, these challenges will still represent major obstacles that stand in the way of our success in the 21st century. So we've got a lot of work to do.
Now, there's a parable at the end of the Sermon on the Mount that tells the story of two men. The first built his house on a pile of sand, and it was soon destroyed when a storm hit. But the second is known as the wise man, for when "the rain descended, and the floods came, and the winds blew, and beat upon that house, it fell not: for it was founded upon a rock."
It was founded upon a rock. We cannot rebuild this economy on the same pile of sand. We must build our house upon a rock. We must lay a new foundation for growth and prosperity -- a foundation that will move us from an era of borrow and spend to one where we save and invest; where we consume less at home and send more exports abroad.
It's a foundation built upon five pillars that will grow our economy and make this new century another American century: Number one, new rules for Wall Street that will reward drive and innovation, not reckless risk-taking -- (applause); number two, new investments in education that will make our workforce more skilled and competitive -- (applause); number three, new investments in renewable energy and technology that will create new jobs and new industries -- (applause); number four, new investments in health care that will cut costs for families and businesses; and number five, new savings in our federal budget that will bring down the debt for future generations. (Applause.)
That's the new foundation we must build. That's our house built upon a rock. That must be our future -- and my administration's policies are designed to achieve that future.
Let me talk about each of these steps in turn. The first step we will take to build this foundation is to reform the outdated rules and regulations that allowed this crisis to happen in the first place. It is time to lay down tough new rules of the road for Wall Street to ensure that we never find ourselves here again. Just as after the Great Depression new rules were designed for banks to avoid the kind of reckless speculation that helped to create the depression, so we've got to make adaptations to our current set of rules: create rules that punish shortcuts and abuse; rules that tie someone's pay to their actual job performance --- a novel concept -- (laughter); rules that protect typical American families when they buy a home, get a credit card or invest in a 401(k). So we've already begun to work with Congress to shape this comprehensive new regulatory framework -- and I expect a bill to arrive on my desk for my signature before the year is out.
The second pillar of this new foundation is an education system that finally prepares our workers for a 21st century economy. You know, in the 20th century, the G.I. Bill helped send a generation to college. For decades we led the world in educational attainment, and as a consequence we led the world in economic growth. But in this new economy, we've come to trail the world's leaders in graduation rates, in educational achievement, in the production of scientists and engineers. That's why we have set a goal that will greatly enhance our ability to compete for the high-wage, high-tech jobs of the 21st century: By 2020, America will once again have the highest proportion of college graduates in the world. That is the goal that we have set and we intend to do. (Applause.)
To meet that goal, we have to start early. So we've already dramatically expanded early childhood education. (Applause.) We are investing in innovative programs that have proven to help schools meet high standards and close achievement gaps. We're creating new rewards that tie teachers' performance and new pathways for advancement. And I've asked every American to commit to at least one year or more of higher education or career training, and we have provided tax credits to make a college education more affordable for every American, even those who attend Georgetown. (Applause.)
And, by the way, one of the changes that I would like to see -- and I'm going to be talking about this in weeks to come -- is once again seeing our best and our brightest commit themselves to making things -- engineers, scientists, innovators. (Applause.) For so long, we have placed at the top of our pinnacle folks who can manipulate numbers and engage in complex financial calculations. And that's good, we need some of that. (Laughter.) But you know what we can really use is some more scientists and some more engineers, who are building and making things that we can export to other countries. (Applause.)
Now, the third pillar of this new foundation is to harness the renewable energy that can create millions of new jobs and new industries. We all know that the country that harnesses this new energy source will lead the 21st century. Yet we've allowed other countries to outpace us on this race to the future. I don't know about you, but I do not accept a future where the jobs and industries of tomorrow take root beyond our borders. I think it's time for America to lead again.
So the investments we made in the Recovery Act will double this nation's supply of renewable energy in the next three years. (Applause.) And we are putting Americans to work making our homes and buildings more efficient so that we can save billions on our energy bills and grow our economy at the same time.
Now, the only though that we can truly spark the transformation that's need is through a gradual, market-based cap on carbon pollution, so that clean energy is the profitable kind of energy. (Applause.)
There are those who've argued that we shouldn't attempt, we shouldn't even be thinking, we shouldn't even be talking about such a transition until the economy recovers. And they are right that we have to take into account the costs of transition. Transitioning to a clean energy economy will not be easy. But we can no longer delay putting a framework for a clean energy economy in place. That needs to be done now. (Applause.)
If businesses and entrepreneurs know today that we are closing this carbon pollution loophole, they'll start investing in clean energy now. And pretty soon, we'll see more companies constructing solar panels, and workers building wind turbines, and car companies manufacturing fuel-efficient cars. Investors will put some money into a new energy technology, and a small business will open to start selling it. That's how we can grow this economy, enhance our security, and protect our planet at the same time.
Now, the fourth pillar of our new foundation is a 21st century health care system where families, businesses and government budgets aren't dragged down by skyrocketing insurance premiums. (Applause.) One and a half million Americans could lose their homes this year just because of a medical crisis. Major American corporations are struggling to compete with their foreign counterparts. Small businesses are closing their doors. We can't allow the cost of health care to continue strangling our economy.
And that's why our Recovery Act will invest in electronic health records with strict privacy standards that can save money and lives and reduce medical error. That's why we've made the largest investment ever in preventive care, because that's one of the best ways to keep costs under control. And included in the budgets that just passed Congress is an historic commitment to reform that will finally make quality health care affordable for every American. (Applause.) So I'm looking forward in the next few months to working with both parties in Congress to make this reform a reality. We can get this done -- and we have to get it done.
Now, fixing our health care system will -- will require resources; it's not going to be free. But in my budget we've made a commitment to fully pay for reform without increasing the deficit, and we've identified specific savings that will make the health care system more efficient and reduce costs for us all.
In fact, we've undertaken an unprecedented effort to find this kind of savings in every corner of the budget, because the final pillar in building our new foundation is restoring fiscal discipline once this economy recovers.
Already we've identified $2 trillion dollars in deficit reductions over the next decade. We need to do more, but we've already done that. We've announced procurement reform that will greatly reduce no-bid contracts and save the government $40 billion. We need to do more, but that's an important start. Secretary Gates recently announced a courageous set of reforms that go right at the hundreds of billions of dollars in waste and cost overruns that have bloated our defense budget without making America safer. We need to do more, but that proposal by Secretary Gates is right on target. We will end education programs that don't work, we will root out waste and fraud and abuse in our Medicare program.
Altogether, this budget will reduce discretionary spending for domestic programs as a share of the economy by more than 10 percent over the next decade to the lowest level we've seen since we began keeping records nearly half a century ago. And as we continue to go through the federal budget line by line, we will be announcing additional savings, secured by eliminating and consolidating programs that we don't need so we can make room for the things that we do need.
That's what we're doing now. Of course, I realize that for some, this isn't enough. I know there's a criticism out there that my administration has been spending with reckless abandon, pushing a liberal social agenda while mortgaging our children's future. You've heard the argument.
Well, let me make three points. First, as I said earlier, the worst thing that we could do in a recession this severe is to try to cut government spending at the same time as families and businesses around the world are cutting back on their spending. So as serious as our deficit and debt problems are -- and they are very serious -- major efforts to deal with them have to focus on the medium and long-term budget picture, not on the short-term. And that's exactly what we've done.
Second, in tackling the deficit issue, we simply cannot sacrifice the long-term investments that we so desperately need to generate long-term prosperity. That's the argument that some critics have made: Well, you're proposing health care reform, you shouldn't be doing that; you're proposing education investments, you shouldn't be doing that, that adds to the deficit.
Look, just as a cash-strapped family may cut back on all kinds of luxuries, but will still insist on spending money to get their children through college, will refuse to have their kids drop out of college and go to work in some fast-food place, even though that might bring in some income in the short-term, because they're thinking about the long term -- so we as a country have to make current choices with an eye for the future. (Applause.)
If we don't invest now in renewable energy, if we don't invest now in a skilled workforce, if we don't invest now in a more affordable health care system, this economy simply won't grow at the pace it needs to in two or five or 10 years down the road. If we don't lay this new foundation now, it won't be long before we're right back where we are today. And I can assure you that chronically slow growth will not help our long-term budget situation. That's the second point.
Third point, the problem with our deficit and debt is not new. It has been building dramatically over the past eight years, largely because big tax cuts combined with increased spending on two wars and the increased costs of government health care programs have pushed it ever upwards. This structural gap in our budget, between the amount of money that's coming in and the amount of money that's going out, will only get worse as the baby boomers age, and will in fact lead us down an unsustainable path.
But let's not kid ourselves and suggest that we can solve this problem by trimming a few earmarks or cutting the budget for the National Endowment for the Arts. That's just not true. (Applause.) Along with defense and interest on the national debt, the biggest cost drivers in our budget are entitlement programs like Medicare, Medicaid, and Social Security -- all of which get more and more expensive every year. So if we want to get serious about fiscal discipline, and I do, then we're going to not only have to trim waste out of our discretionary budget -- which we've already begun -- we will also have to get serious about entitlement reform.
Now, nothing will be more important to this goal than passing health care reform that brings down costs across the system, including in Medicare and Medicaid. (Applause.) So make no mistake, health care reform is entitlement reform. That's not just my opinion -- that was the conclusion of a wide range of participants at the Fiscal Responsibility Summit that we held at the White House in February. And that's one of the reasons why I firmly believe we need to get health care reform done this year. (Applause.)
Once we tackle rising health care costs, we must also work to put Social Security on firmer footing. It's time for both parties to come together and find a way to keep the promise of a sound retirement for future generations. And we should restore a sense of fairness and balance to our tax code including by shutting down corporate loopholes and ensuring that everyone pays what they owe. (Applause.)
All of these efforts will require tough choices. All these efforts will require compromise. But the difficulties can't serve as an excuse for inaction -- not anymore -- which brings me to one final point I'd like to make today. I've talked a lot about the fundamental weakness in our economy that led us to this day of reckoning. But we also arrived here because of a fundamental weakness in our political system.
For too long, too many in Washington put off hard decisions for some other time on some other day. There's been a tendency to spend a lot of time scoring political points instead of rolling up sleeves to solve real problems.
There's also an impatience that characterizes this town -- an attention span that has only grown shorter with the 24-hour news cycle that insists on instant gratification in the form of immediate results or higher poll numbers. When a crisis hits, there's all too often a lurch from shock to trance, with everyone responding to the tempest of the moment until the furor has died down, the media coverage has moved on to something else, instead of confronting the major challenges that will shape our future in a sustained and focused way.
This can't be one of those times. The challenges are too great. The stakes are too high. I know how difficult it is for members of Congress in both parties to grapple with some of the big decisions we face right now. I'd love if these problems were coming at us one at a time instead of five or six at a time. It's more than most Congresses and most Presidents have to deal with in a lifetime.
But we have been called to govern in extraordinary times. And that requires an extraordinary sense of responsibility -- to ourselves, to the men and women who sent us here, to the many generations whose lives will be affected for good or for ill because of what we do here.
There is no doubt that times are still tough. By no means are we out of the woods just yet. But from where we stand, for the very first time, we're beginning to see glimmers of hope. And beyond that, way off in the distance, we can see a vision of an America's future that is far different than our troubled economic past. It's an America teeming with new industry and commerce, humming with new energy and discoveries that light the world once more -- a place where anyone from anywhere with a good idea or the will to work can live the dream they've heard so much about.
That is the house upon the rock -- proud, sturdy, unwavering in the face of the greatest storms. And we will not finish it in one year. We will not finish it in many. But if we use this moment to lay that new foundation, if we come together and begin the hard work of rebuilding, if we persist and persevere against the disappointments and setbacks that will surely lie ahead, then I have no doubt that this house will stand and the dream of our founders will live on in our time.
Thank you. God bless you. God bless the United States of America. (Applause.)
END
12:28 P.M. EDT
THE WHITE HOUSE 
Office of the Press Secretary
_________________________________________________________________
For Immediate Release                               April 14, 2009
 
EXCERPTS FROM THE PRESIDENT’S REMARKS
A New Foundation
Tuesday, April 14th, 2009
Washington, DC
As Prepared for Delivery
Today, I want to step back for a moment and explain our strategy as clearly as I can.  I want to talk about what we’ve done, why we’ve done it, and what we have left to do.  I want to update you on the progress we’ve made, and be honest about the pitfalls that may lie ahead.  And most of all, I want every American to know that each action we take and each policy we pursue is driven by a larger vision of America’s future – a future where sustained economic growth creates good jobs and rising incomes; a future where prosperity is fueled not by excessive debt, reckless speculation, and fleeing profit, but is instead built by skilled, productive workers; by sound investments that will spread opportunity at home and allow this nation to lead the world in the technologies, innovations, and discoveries that will shape the 21st century.  That is the America I see.  That is the future I know we can have. 
All of these actions – the Recovery Act, the bank capitalization program, the housing plan, the strengthening of the non-bank credit market, the auto plan, and our work at the G20 – have been necessary pieces of the recovery puzzle.  They have been designed to increase aggregate demand, get credit flowing again to families and businesses, and help them ride out the storm.  And taken together, these actions are starting to generate signs of economic progress.  Because of our recovery plan, schools and police departments have cancelled planned layoffs.  Clean energy companies and construction companies are re-hiring workers to build everything from energy efficient windows to new roads and highways.  Our housing plan has helped lead to a spike in the number of homeowners who are taking advantage of historically-low mortgage rates by refinancing, which is like putting a $2,000 tax cut in your in pocket.  Our program to support the market for auto loans and student loans has started to unfreeze this market and securitize more of this lending in the last few weeks.  And small businesses are seeing a jump in loan activity for the first time in months. 
This is all welcome and encouraging news, but it does not mean that hard times are over.  2009 will continue to be a difficult year for America’s economy.  The severity of this recession will cause more job loss, more foreclosures, and more pain before it ends.  The market will continue to rise and fall.  Credit is still not flowing nearly as easily as it should.  The process for restructuring AIG and the auto companies will involve difficult and sometimes unpopular choices.  All of this means that there is much more work to be done.  And all of this means that you can continue to expect an unrelenting, unyielding, day-by-day effort from this administration to fight for economic recovery on all fronts. 
It is simply not sustainable to have a 21st century financial system that is governed by 20th century rules and regulations that allowed the recklessness of a few to threaten the entire economy.  It is not sustainable to have an economy where in one year, 40% of our corporate profits came from a financial sector that was based too much on inflated home prices, maxed out credit cards, overleveraged banks and overvalued assets; or an economy where the incomes of the top 1% have skyrocketed while the typical working household has seen their income decline by nearly $2,000.  
For as some were chasing ever-bigger bonuses and short-term profits over the last decade, we continued to neglect the long-term threats to our prosperity:  the crushing burden that the rising cost of health care is placing on families and businesses; the failure of our education system to prepare our workers for a new age; the progress that other nations are making on clean energy industries and technologies while we remain addicted to foreign oil; the growing debt that we’re passing on to our children.  And even after we emerge from the current recession, these challenges will still represent major obstacles that stand in the way of our success in the 21st century. 
There is a parable at the end of the Sermon on the Mount that tells the story of two men.  The first built his house on a pile of sand, and it was destroyed as soon as the storm hit.  But the second is known as the wise man, for when "…the rain descended, and the floods came, and the winds blew, and beat upon that house…it fell not:  for it was founded upon a rock."
We cannot rebuild this economy on the same pile of sand.  We must build our house upon a rock.  We must lay a new foundation for growth and prosperity – a foundation that will move us from an era of borrow and spend to one where we save and invest; where we consume less at home and send more exports abroad. 
It’s a foundation built upon five pillars that will grow our economy and make this new century another American century:  new rules for Wall Street that will reward drive and innovation; new investments in education that will make our workforce more skilled and competitive; new investments in renewable energy and technology that will create new jobs and industries; new investments in health care that will cut costs for families and businesses; and new savings in our federal budget that will bring down the debt for future generations.  That is the new foundation we must build.  That is our future.
I’ve talked a lot about the fundamental weakness in our economy that led us to this day of reckoning.  But we also arrived here because of a fundamental weakness in our political system.
For too long, too many in Washington put off hard decisions for some other time on some other day.  There’s been a tendency to score political points instead of rolling up sleeves to solve real problems.  There is also an impatience that characterizes this town – an attention span that has only grown shorter with the twenty-four news cycle, and insists on instant gratification in the form of instant results or higher poll numbers.  When a crisis hits, there’s all too often a lurch from shock to trance, with everyone responding to the tempest of the moment until the furor has died away and the media coverage has moved on, instead of confronting the major challenges that will shape our future in a sustained and focused way. 
This can’t be one of those times.  The challenges are too great.  The stakes are too high.  I know how difficult it is for Members of Congress in both parties to grapple with some of the big decisions we face right now.  It’s more than most congresses and most presidents have to deal with in a lifetime. 
But we have been called to govern in extraordinary times.  And that requires an extraordinary sense of responsibility – to ourselves, to the men and women who sent us here, and to the many generations whose lives will be affected for good or for ill because of what we do here. 
There is no doubt that times are still tough.  By no means are we out of the woods just yet.  But from where we stand, for the very first time, we are beginning to see glimmers of hope.  And beyond that, way off in the distance, we can see a vision of an America’s future that is far different than our troubled economic past.  It’s an America teeming with new industry and commerce; humming with new energy and discoveries that light the world once more.  A place where anyone from anywhere with a good idea or the will to work can live the dream they’ve heard so much about. 
It is that house upon the rock.  Proud, sturdy, and unwavering in the face of the greatest storm.  We will not finish it in one year or even many, but if we use this moment to lay that new foundation; if we come together and begin the hard work of rebuilding; if we persist and persevere against the disappointments and setbacks that will surely lie ahead, then I have no doubt that this house will stand and the dream of our founders will live on in our time
##
THE WHITE HOUSE
Office of the Press Secretary
_________________________________________________________________
For Immediate Release                             April 13, 2009 
REMARKS BY THE PRESIDENT
AND THE VICE PRESIDENT
ON THE AMERICAN RECOVERY AND REINVESTMENT ACT
U.S. Department of Transportation
Washington, D.C.
11:52 A.M. EDT
THE VICE PRESIDENT:  Thank you, Mr. Secretary.  Mr. President.  (Applause.)  I think the Secretary perfectly summed up at his confirmation hearing what we're doing here, and I want to quote him.  He said, "The most compelling reason for infrastructure investment is that economic" -- excuse me -- "it is the listing of not only economic, but social benefits that get brought as a consequence of decades" -- "for decades and for generations."
The bottom line is what we're doing here is not just for today, it's going to last well beyond this time; and that's exactly why we're here.  The Recovery Act is being implemented with speed, transparency, and accountability.  And don't take my word for it, just look at what's happening here today.  We're creating -- not only creating new jobs, we're saving jobs that were about to be put on hold; we're making it easy for folks to get to work, those who have a job; and we're improving the nation's infrastructure, all at the same time.
Just eight weeks into this, and we're already seeing -- beginning to see exactly how the Recovery Act and the Department of Transportation are building the economy of the future and making life better for communities everywhere, not just in Maryland or Virginia -- which we're going to talk about here.  In Virginia, the Department of Transportation is already bidding $176 million for paving bridge and -- road and bridge projects funded by the Recovery Act, with another $75 million of highway jobs expected later this week.
In Missouri, by late March $1.5 million in Recovery Act funds had already been awarded to Missouri construction companies to provide gravel to the Forest Service roads damaged by extreme weather over the past few years.
I see stories like this everywhere I go, and Ray and I have been going around the country pointing this out.  Around this country we're making deep investments in our infrastructure, making sure it's sound, secure, and able to handle the full-speed-ahead progress that this economy has underway now.  We're stimulating billions of dollars in economic activity; we're creating millions of new jobs, and breaking ground on a brighter economic future.
Folks, the road to recovery must, quite literally, be repaved.  And with the leadership of Secretary LaHood and President Barack Obama, we're doing just that.  Each and every day we're making that road a little bit smoother and much easier to travel.
And ladies and gentlemen, it's now my pleasure to introduce the President of the United States, Barack Obama.  (Applause.)
THE PRESIDENT:  Thank you, everybody.  I hope everybody had a wonderful Easter.  I just came from the Easter Egg Roll, and it was a spectacular -- spectacular outing.  All the kids were out there having fun and it reminds us of why we do the work we do.
     Before I discuss the purpose of my visit to the Department of Transportation today, I want to take a moment to say how pleased I am about the rescue of Captain Phillips and his safe return to the USS Boxer this weekend.  (Applause.)  His safety has been our principal concern, and I know this came as a welcome relief to his family and his crew.
     I had a chance to talk to his wife yesterday and, as she put it, she couldn't imagine a better Easter than seeing his safe return.  And I am very proud of the efforts of the U.S. military and many other departments and agencies that worked tirelessly to resolve this situation.  I share our nation's admiration for Captain Phillips' courage and leadership and selfless concern for his crew.
     And I want to be very clear that we are resolved to halt the rise of privacy [sic] in that region.  And to achieve that goal we're going to have to continue to work with our partners to prevent future attacks, we have to continue to be prepared to confront them when they arise, and we have to ensure that those who commit acts of piracy are held accountable for their crimes.
     Now, as we work to ensure America's safety out on the seas, I want to discuss what we're doing to restore economic security here at home -- to revitalize our nation's infrastructure and create good jobs across America.
     It has been nearly three months since I first took office, and I think it's fair to say that we've been busy.  Faced with an extraordinary economic crisis, we've responded with extraordinary action -- action that's both unprecedented in scale and unprecedented in its speed.
     We developed plans to stabilize our housing market, to unfreeze our credit markets, and to ensure the survival of our auto industry in this new century.  We passed a budget that cuts our deficit in half while making investments to spur long-term growth and lasting prosperity.  And because we know that people are hurting right now, and we need to create jobs and get money into people's pockets right now, we passed the American Recovery and Reinvestment Act, the most sweeping economic recovery plan in history:  A plan to save or create 3.5 million jobs, putting Americans back to work doing the work America needs done -- and to give a tax cut to 95 percent of working Americans.
     Today, I think it's safe to say that this plan is beginning to work.  We see it in the clean energy companies rehiring workers; in police departments cancelling planned layoffs; in health care clinics planning to expand to care for more folks in need.  We see it in the 120 million families who are already taking home larger paychecks because of our Making Work Pay tax cut.
And we see it particularly in the work of this department --in the plans underway to rebuild crumbling roads and bridges, modernize our airports and shipyards, develop high-speed rail networks and restore aging public transit systems.  All told, we are making the largest new investment in America's infrastructure since President Eisenhower built the Interstate Highway System back in the 1950s.
But what is most remarkable about this effort -- and what I'm here to talk about today -- isn't just the size of our investment, or the number of projects we're investing in -- it's how quickly, efficiently, and responsibly those investments have been made.
Today, because these projects are getting approved more quickly than we thought, thanks to in large part the outstanding work of the TIGER team and folks here at the Department of Transportation, and because these projects are costing less than we thought, we can utter a sentence rarely heard in recent years:  This government effort is coming in ahead of schedule and under budget.  (Applause.)
Now, think about it.  We passed the recovery plan less than two months ago.  Two weeks later, I came here to DOT to announce that we would be investing $28 billion to rebuild and repair our highways, roads and bridges.  Work on the very first project -- resurfacing Route 650 in Silver Springs [sic], Maryland -- began that very same day.  People who'd been out of a job found themselves being called back to work.
And some of the crews are here today, and we want to thank them, and we're proud of them, because they're making the roads safer and some of your commutes a little bit better, and at the same time they're doing what they've always done, working really hard to support their families and living out the American Dream.  So we appreciate them.  Thank you.  (Applause.)
About a week later, we had approved 500 more projects.  Two weeks after that, we had approved another 1,000 projects.  And today, I'm proud to announce that we have approved the 2000th project -- a project to widen an interstate and rebuild an overpass in Portage, Michigan, improving safety, reducing congestion and boosting local businesses.
This project will start this summer, creating an estimated 900 jobs right away -- and it will go into 2011, creating nearly twice that many jobs altogether before it's finished.  So I want to acknowledge Governor Granholm, both for her leadership on this project and for her tireless work to strengthen Michigan's economy.  And I'm pleased that Joe Biden, who's overseeing our recovery efforts, will be attending the groundbreaking for this project in June.
Now, some may have thought it would take months to get to this point.  But in part because of the hard work and commitment of the people in this department, we approved these 2,000 projects in just 41 days.
So taken together, these projects will reduce the congestion that costs us nearly $80 billion a year; it will save some of the 14,000 people who lose their lives each year because of bad roads and driving conditions; it will create good jobs that pay well and can't be shipped overseas.  By the end of next year, our investments in highway projects alone will create or save 150,000 jobs.  I want to repeat that:  150,000 jobs, most of them in the private sector.
I'm pleased that work on some of these projects has already started, and that many more will be underway by this summer.  But I want to be very clear that while we're doing this with speed, we're also doing it with care.  We've acted quickly, because our economy, losing hundreds of thousands of jobs each month, means we don't have a minute to waste.  And we've acted with care because we don't have a single taxpayer dollar to waste either.
And that's why I appointed a proven and aggressive inspector general to root out waste and fraud.  That's why we created a website called recovery.gov, so you can see exactly where your tax dollars are going, and soon you'll be able to click on the transportation section and track the progress of every project underway.
And that's why I'm pleased to hear that in state after state across America, competition for these projects is so fierce, and contractors are doing such a good job cutting costs, that projects are consistently coming in under budget.  The final bid for one road project in Connecticut was $8.4 million less than the state budgeted for.  Another one in Louisiana was $4.7 million less.  A project at BWI Airport will be completed for $8 million less than expected.  Bids for projects in North Carolina have been 19 percent under budget.  Colorado is reporting bids up to 30 percent less than they expected.  And the officials in California have seen bids that are close to half as much as they had projected.
And because these projects are proceeding so efficiently, we now have more recovery dollars to go around.  And that means we can fund more projects, revitalize more of our infrastructure, put more people back to work, and ensure that taxpayers get more value for their dollars.
Now, I have no illusion about how much work lies ahead and how hard it will be.  The road to recovery is long; we will undoubtedly make some mistakes, we'll face some setbacks along the way, there will be some projects that don't work the way we want them to.  But it is now clear that we're heading in the right direction.  It's now clear that day by day, project by project, we are making progress.
We're doing what we've always done in this country.  As President Johnson said more than 40 years ago when he signed the legislation creating this department, the Department of Transportation, "America's history is a history of her transportation" -- of railroads that pushed frontiers, and waterways and highways that opened up markets, airplanes that connected us to one another and to the world.
Throughout our history, there have been times when a generation of Americans seized the chance to remake the face of this nation.  And this is one of those times.  And that's what we're doing today -- building a 21st century infrastructure that will create jobs, spur growth, and sustain an economy that creates shared and lasting prosperity.
So thank you to the folks here at DOT; you're doing an outstanding job.  Thanks to Ray LaHood for being a terrific leader of the department.  And thank you to Joe Biden for helping to drive this thing home.  And thanks to all the workers who are standing behind us.  We don't want to keep them too long.  They've already got their hard hats.  (Laughter.)  They are going to go straight into their cars and they're going to go back to work.  So, thank you, everybody.  (Applause.)
END                                              
12:05 P.M. EDT
 
THE WHITE HOUSE
Office of the Press Secrectary
----------------------------------------------------
For Immediate Release                                                 April 13, 2009
REMARKS BY THE PRESIDENT
AND THE FIRST LADY
AT EASTER EGG ROLL
South Lawn
10:25 A.M. EDT
THE PRESIDENT: Hello, everybody -- that's Malia, our technical advisor. (Laughter.)
It is wonderful to see all of you today. Welcome. I hope everybody had a wonderful Easter. This is one of the greatest White House traditions because it reminds us that this is the people's house. And to see so many children out here having a great time just fills Michelle and myself and the entire family with a whole lot of joy.
So I'm not really in charge here today. My sole job, in addition to thanking Fergie for that wonderful rendition of our National Anthem and thanking my buddy, the Easter Bunny, for being here, is to introduce my First Lady, your First Lady, Michelle Obama. (Applause.)
MRS. OBAMA: All right -- okay, it's working. Welcome everybody. I don't have much to say. I want to welcome you all to the 2009 White House Easter Egg Hunt. Yay!
Our goal today is just to have fun. We want to focus on activity, healthy eating. We've got yoga, we've got dancing, we've got storytelling, we've got Easter egg decorating. Oh, we've got basketball -- (applause) -- a little soccer, as well. And we want everybody to think about moving their bodies, get out -- we don't have tennis; it's on the tennis court -- the peanut gallery back here. (Laughter.)
So the goal today is to have fun, to get out and play. And let's get things started with the Easter Egg Roll. Thank you all for coming today. Have fun. Thanks so much. (Applause.)
END
10:27 A.M. EDT