For Immediate Release                                                                                  January 30, 2009
EXECUTIVE ORDER
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ECONOMY IN GOVERNMENT CONTRACTING
     By the authority vested in me as President by the Constitution and the laws of the United States of America, including the Federal Property and Administrative Services Act, 40 U.S.C. 101 et seq., it is hereby ordered that:
     Section 1.  To promote economy and efficiency in Government contracting, certain costs that are not directly related to the contractors' provision of goods and services to the Government shall be unallowable for payment, thereby directly reducing Government expenditures.  This order is also consistent with the policy of the United States to remain impartial concerning any labor-management dispute involving Government contractors.  This order does not restrict the manner in which recipients of Federal funds may expend those funds.
     Sec. 2.  It is the policy of the executive branch in procuring goods and services that, to ensure the economical and efficient administration of Government contracts, contracting departments and agencies, when they enter into, receive proposals for, or make disbursements pursuant to a contract as to which certain costs are treated as unallowable, shall treat as unallowable the costs of any activities undertaken to persuade employees -- whether employees of the recipient of the Federal disbursements or of any other entity -- to exercise or not to exercise, or concerning the manner of exercising, the right to organize and bargain collectively through representatives of the employees' own choosing.  Such unallowable costs shall be excluded from any billing, claim, proposal, or disbursement applicable to any such Federal Government contract.
     Sec. 3.  Notwithstanding section 2 of this order, contracting departments and agencies shall treat as allowable costs incurred in maintaining satisfactory relations between the contractor and its employees, including costs of labor-management committees, employee publications (other than those undertaken to persuade employees to exercise or not to exercise, or concerning the manner of exercising, the right to organize and bargain collectively), and other related activities.  See 48 C.F.R. 31.205-21.
     Sec. 4.  Examples of costs unallowable under section 2 of this order include the costs of the following activities, when they are undertaken to persuade employees to exercise or not to exercise, or concern the manner of exercising, rights to organize and bargain collectively:
     (a)  preparing and distributing materials;
     (b)  hiring or consulting legal counsel or consultants;
     (c)  holding meetings (including paying the salaries of the attendees at meetings held for this purpose); and
     (d)  planning or conducting activities by managers, supervisors, or union representatives during work hours.
     Sec. 5.  Within 150 days of the effective date of this order, the Federal Acquisition Regulatory Council (FAR Council) shall adopt such rules and regulations and issue such orders as are deemed necessary and appropriate to carry out this order.  Such rules, regulations, and orders shall minimize the costs of compliance for contractors and shall not interfere with the ability of contractors to engage in advocacy through activities for which they do not claim reimbursement.
     Sec. 6.  Each contracting department or agency shall cooperate with the FAR Council and provide such information and assistance as the FAR Council may require in the performance of its functions under this order.
     Sec. 7.  (a)  This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
     (b)  This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
     Sec. 8.  This order shall become effective immediately, and shall apply to contracts resulting from solicitations issued on or after the effective date of the action taken by the FAR Council under section 5 of this order.
                             BARACK OBAMA
THE WHITE HOUSE,
January 30, 2009.

Shameful

$18 billion.
That’s what Wall Street bankers pulled down in bonuses over the past two months, according to a report from the New York State comptroller -- even as many of these institutions received billions in taxpayer dollars.
"That is the height of irresponsibility. It is shameful," President Obama said today, following a meeting with Vice President Joe Biden, Treasury Secretary Tim Geithner, and the rest of the economic team.
Read the President’s full remarks below.

 
REMARKS BY THE PRESIDENT
AFTER MEETING WITH THE VICE PRESIDENT
AND THE SECRETARY OF THE TREASURY
The White House, Oval Office
January 29, 2009
THE PRESIDENT: Well, it's good to see you guys. I just had a terrific conversation with my Secretary of the Treasury, the Vice President, as well as the rest of our economic team, about the steps that we need to move forward on -- not only on the economic recovery and reinvestment package, but also on making sure that we begin the process of regulating Wall Street so that we can improve the flow of credit, banks start lending again, so that businesses can reopen, and that we can create more jobs -- but also to make sure that we never find ourselves in the kind of crisis that we're in again, that we've seen over the last several months.
And Secretary Geithner is hard at work on this process. We expect that even as the reinvestment and recovery package moves forward -- as I said, that's only one leg of the stool, and that these other legs of the stool will be rolled out systematically in the coming weeks so that the American people will have a clear sense of a comprehensive strategy designed to put people back to work, reopen businesses and credit flowing again.
One point I want to make is that all of us are going to have responsibilities to get this economy moving again. And when I saw an article today indicating that Wall Street bankers had given themselves $20 billion worth of bonuses -- the same amount of bonuses as they gave themselves in 2004 -- at a time when most of these institutions were teetering on collapse and they are asking for taxpayers to help sustain them, and when taxpayers find themselves in the difficult position that if they don't provide help that the entire system could come down on top of our heads -- that is the height of irresponsibility. It is shameful.
And part of what we're going to need is for folks on Wall Street who are asking for help to show some restraint and show some discipline and show some sense of responsibility. The American people understand that we've got a big hole that we've got to dig ourselves out of -- but they don't like the idea that people are digging a bigger hole even as they're being asked to fill it up.
And so we're going to be having conversations as this process moves forward directly with these folks on Wall Street to underscore that they have to start acting in a more responsible fashion if we are to together get this economy rolling again. There will be time for them to make profits, and there will be time for them to get bonuses -- now is not that time. And that's a message that I intend to send directly to them, I expect Secretary Geithner to send to them -- and Secretary Geithner already had to pull back one institution that had gone forward with a multimillion dollar jet plane purchase at the same time as they're receiving TARP money. We shouldn't have to do that because they should know better. And we will continue to send that message loud and clear.
Having said that, I am confident that with the recovery package moving through the House and through the Senate, with the excellent work that's already been done by Secretary Geithner in consultation with Larry Summers and Paul Volcker and other individuals, that we are going to be able to set up a regulatory framework that rights the ship and that gets us moving again. And I know the American people are eager to get moving again -- they want to work. They are serious about their responsibilities; I am, too, in this White House and I hope that the folks on Wall Street are going to be thinking in the same way.
Related Topics: Fiscal Responsibility
Press Briefing by Press Secretary Robert Gibbs

James S. Brady Press Briefing Room
2:12 P.M. EST

MR. GIBBS:  All right, sorry I'm both late and early, all at the same time.  (Laughter.)  And I --
Q    Even the Clinton White House has never done that -- to be late and early.  (Laughter.)
MR. GIBBS:  Let me apologize in advance.  My five-and-a-half-year-old has a cold; therefore, I have a cold.  So if I sniff a little bit, it's because of that.
Just a couple of quick things, and we'll get into your questions.  In addition to the calls that he made yesterday to foreign leaders, he also called last night Prime Minister Aso of Japan.  Also, in addition to later last night, the President signed disaster declarations for both Arkansas and Kentucky and spoke with both of the governors of those two states to notify them of those signatures.
You all, I hope, were at the Lilly Ledbetter signing this morning, so you know a little bit about that. 
And then -- and we'll try to conclude this at an appropriate time -- at 3:00 p.m., the President will take a group of you into a meeting with the President and Treasury Secretary Geithner.  I know the President is anxious to make a few remarks there about some -- about stuff that's been in the news the last couple of days, and particularly stuff that was on the front page of our newspapers this morning relating to CEO bonuses, which he will get into at that -- at those remarks.
And with that, let me take a few questions.  Jennifer.
Q    News-of-the-day question -- the military judge's ruling in the USS Cole suspect case at Guantanamo.  We'd like a comment on that, first of all, but also kind of the bigger picture.  I mean, you guys have asked for a delay in all the trials there.  Does this throw a kink into that?  How does it affect the broader effort to step back and take a look at those detainees?
MR. GIBBS:  Well, let me --
Q    Repeat the question, because we can't hear with the --
MR. GIBBS:  Oh, I'm sorry, with the new Zamboni?  (Laughter.) 
Q    Repeat the question.
MR. GIBBS:  Yes, the question related to -- come on in, guys.  (Laughter.)  All right.  All right.  No more -- the place is now sold out, so no more tickets.
This was -- Jennifer asked a question about the ruling that just came down, which did not grant a stay for the military commission in one case.  We just learned of the ruling here, as you did, and we are consulting with the Pentagon and the Department of Justice to explore our options in that case.  I believe that all the other trials were stayed, which I think continues to give us what we need to evaluate who is at Gitmo and make the decisions commensurate with the executive order that the President signed.
But we are -- we're working to get some consultation on that, and when we have some we'll certainly let you know about that.
Q    Just to be clear, what you're saying is that this -- the action in this one case you don't believe throws a kink into the ability to evaluate the entire situation --
MR. GIBBS:  No, not at all.
Q    -- and the status of detainees there?
MR. GIBBS:  Not at all.
Yes, sir.
Q    You mentioned that the President was going to be talking about executive bonuses.  There is a report that came out of the New York Comptroller's Office a short time ago saying that the corporate CEOs, many of them of companies that have received taxpayer dollars, were paid massive bonuses, totaling more than $18 billion.  Is he going to be addressing that in some way?  Can you elaborate?
MR. GIBBS:  He will address that, and I will elaborate and I will give you the one-word answer that he gave us this morning:  outrageous.  I think he will expound on the outrageousness of what he read. 
The President spoke during his inaugural of an ethic of responsibility that we needed to see reinstituted in certain aspects of our country, particularly in our financial institutions.
Whether it's government or the financial system, we're not going to be able to do what is needed to be done to stabilize our financial system if the American people read about this type of outrageous behavior.  We started the beginning of the week with a bank that's in some trouble interested in purchasing a $50 million jet.  I think the outrage on the Hill and some phone calls and some outrage here probably stopped that. 
But obviously, we're asking a lot of the American people to take extraordinary steps to stabilize our financial system.  The President is committed to doing what is necessary to do that, but shares the frustration of the American people when they read about I think it was the sixth largest year of bonuses.  And I don't think anybody that's opened their 401(k) statement has found out that this was the sixth best year for Wall Street.  He'll address that in some more rage --
Q    Will there be specific measures that will be brought forth by the administration --
MR. GIBBS:  Well, one of the things that the President is doing today is he met -- had his economic daily briefing that included Dr. Summers, Christina Romer, Secretary Geithner.  They are working on -- that is a portion of what they're working on as it relates to going forward on the financial stability money that Congress has appropriated.
Q    What can he do?
MR. GIBBS:  That's what we're looking into, and that's what we're working on recommendations for.  You know, I think the Comptroller of New York had some -- asked the President to look into this, and I think he shares the Comptroller's outrage in this.
Q    Two things.  One, he met with CEOs yesterday, and I realize that's before the Comptroller's report, but did he say anything about this?  Because the two gentlemen who introduced him yesterday, their combined five-year compensation package was $150 million.  Did he turn to them and say, you guys are cutting jobs and yet you're making $150 million?
MR. GIBBS:  The President talked about responsibility with them yesterday.  The President doesn't meet with CEOs where he doesn't talk about responsibility.  They specifically talked about the jet purchase. 
Again, I think the President has been very clear on the notion that what has to be done will not be able to be done unless the American people have confidence not just in the decisions that government is now forced to make to address these crises, but more importantly, that they don't see some of these actors behaving differently.
Q    If I can just follow up.  In the TARP legislation last fall, when the President was a mere senator, it was clear for any of us who were following the legislation that executive compensation, the steps that they were taking to have taxpayer dollars not go to that, were minuscule at best, and the people who were preventing anything from really happening were Chris Dodd and Barney Frank, because they didn't think that there was really anything you could do, that there would be a way that Wall Street would find their way around whatever law.  I mean, President Obama supported the legislation.
MR. GIBBS:  President Obama, or mere Senator Obama, and many others did in order to get the money we needed to get our financial system going again.  I think it is fair that this President believes that the results of that first set of money have failed to live up to the expectation that all of the American people had for it.  That's why this administration and this economic team are taking the time to evaluate how we move forward.
Again, the principles that we outlined for the Senate, before they approved a second batch of money to be used by this administration, included reining in executive compensation and ensuring that excessive bonuses aren't part of that.
Again, part of the meeting that you'll see the beginning of today is a continued discussion on moving forward and making some of those decisions as it relates to that next set of money.  But, Dick, understand the President -- the President shares the American people's outrage on this.  You know, it's -- there are a lot of words that you can conjure up to describe that story.  I think "outrageous" was just the one that I can bring to you here today.
Q    Robert, on Tuesday you talked about how you felt that some Republicans would come onboard with the stimulus package.  Now we know that did not happen.  This morning you said that the President was a little disappointed.  I'm wondering if the President is -- in hindsight, is looking at this and saying perhaps there should have been more concessions, perhaps he shouldn't have made the joke about smacking me over the head.  Is he looking back and saying --
MR. GIBBS:  I don't think they're not going to do that.  I think -- (laughter) -- I think he seems fine with that recommendation.
Q    But is he thinking, if I had to do this all over again, I would have done it differently?
MR. GIBBS:  No, I think if he had it to do all over again -- and the truth is he has it to do all over now in the Senate and will have it to do -- I promise I won't make any -- I was looking up lacrosse metaphors, but I figured I just was way out of my league.
The President wouldn't do anything differently.  In fact, the President didn't do anything differently last night after the vote where, as you mentioned, none of the -- none of those Republicans supported the bill, but still came over to the White House to continue a cooperative relationship to get something done for the American people.
Look, old habits die hard in this town.  We get that.  But the President understands that changing the way Washington works isn't likely to happen in just 10 days.  But he believes that the time that he spent with Republicans when they asked to come down here and they did, or the time that he spent going to Capitol Hill, or the time that he spent last night is a worthy investment of his time. 
We have a responsibility -- the President and Congress, Democrats and Republicans -- to do something for the American people.  You know, probably each day that I've been here this week, we've had some statistic, at least in this town, to remind us of where we are.  The President I think looks forward to the day in which this government, and myself at this podium, aren't reminded each and every day about those statistics.
We saw earlier in the week businesses that are shedding I think 100,000 jobs in two or three days' time.  Tomorrow isn't going to be that day where we don't talk about these statistics, because we're likely to get a number for economic growth for the fourth quarter that's fairly staggering.  And today we find out that more Americans are receiving unemployment benefits since records began being kept on that statistic in 1967.
He believes that the time he put in and the time he will continue to put in to listen, to consult and to work with both Democrats and Republicans is important because we owe it to the American people to get them a piece of legislation that puts money back in their pockets, creates jobs and gets this economy moving again.
Q    And to follow, was the President caught off guard by the fact that 11 Republicans voted -- I'm sorry, Democrats, sorry -- voted against this?  And is he going to reach out specifically to the Democrats?
MR. GIBBS:  Well, look, we're -- nobody's looking at any label to see who to or not to reach out to.  His hand is -- is, was and will always reach out.  I think it's safe to say we didn't presume we'd get a hundred percent of anything.  We probably won't get a hundred percent of a proposal; we won't get a hundred percent support from either Republicans or Democrats.  Again, that doesn't stop the President's effort to push forward -- and I think we -- you know, we shouldn't lose sight of the fact that last night was a big step forward for the American people in getting that package one step closer to the President's desk and one step closer to making the lives of the American people a little bit better in what we all see as a very tough economic time.
Q    The tone here sounds like he's just going to continue doing what he did to try to get Republicans to vote for this in the House.  Doesn't he need to dramatically ratchet this up -- getting Democrats to compromise, working the Republicans, making changes in the bill?
MR. GIBBS:  Well, again, Chip, our test on this bill -- and our test on seeking these ideas -- is not whether they come from one party or whether they need to be compromised with another party.  Instead it's how best do we put forward a package that meets the principle of putting money into people's pockets, spending money to help lay some long-term investments for economic growth and put people back to work right now.
He doesn't believe -- and he's said this a number of times -- that any one party has dominion over good ideas.  We're going to continue to listen, strengthen the package.  I presume that the package that comes out of the Senate will be different than the one that came out of the House.  And as I've said, this will be a long and winding road to getting something on his desk.
Q    Can you give us any specifics on what he's doing, who he's calling, changes he's considering?  Any specifics on what he's going to do differently this time?
MR. GIBBS:  Well, again, I don't -- I think I said earlier, I don't think he's going to do a ton differently.  The key is he's going to continue to listen and to reach out.  I think -- again, I think as we go forward on down this line, we'll see him continue to reach out.  And my presumption is that we'll pick up support on both sides of the aisle on this.
Q    How much, any guess, ballpark?
MR. GIBBS:  You can't use baseball analogies.  (Laughter.)
Q    I want to go to the strengthen -- you specifically used that word just now, actually, and in your statement yesterday, which implies that there are parts of this bill you guys don't like or would like to see improved.
MR. GIBBS:  Again, the President --
Q    Can you get into -- what is it that needs strengthening in this bill, period?  Or question mark.
MR. GIBBS:  Well, I don't have specifics -- what's that?
Q    I'm sorry, I said period.  I should have said question mark.
MR. GIBBS:  I don't -- I don't have specifics to enumerate.  I think the President -- the President said to House Republicans and Senate Republicans that obviously the bill -- the bill that will work its way through both sides of the aisle is probably not exactly what any one person would write, regardless of their party.
Q    But there's got to be.  I mean, there must be --
MR. GIBBS:  Well, there already had been.  There had been.
Q    To put the word "strengthen" in there implies -- I mean, is it infrastructure?  Do you want more money for infrastructure?  The spending ratio is not correct here?
MR. GIBBS:  Well, we're working on -- as I've said, we're working on ensuring that those spending ratios get money into the economy quickly.  He talked with Republicans in the Senate about infrastructure spending.  He's talked to House and Senate members about tax provisions.  I don't -- you know, we'll -- we're going to continue to work with and listen to folks on any number of these items.
Q    Those are the two -- infrastructure, tax -- the two biggest areas, is that fair to say?
MR. GIBBS:  I would say two of many areas.  Again, Chuck, his test is this:  If you've got an idea that helps strengthen the bill, bring it to our attention and we'll work through that process.  Again -- again, I don't think this process -- it's not going to -- it didn't end last night.  Again, we took a very important step forward in getting legislation to the President's desk and hopefully legislation that will improve --
Q    I'd just go back to the word "strengthen."  That implies there was something you didn't quite like in the House bill.  Is there something that he singled out that --
MR. GIBBS:  Well, I think he singled out, over the course of the week, a couple of things that he didn't -- that he agreed with but he didn't -- or something he didn't think should be in the bill.  And we'll continue that process.
Mark.
Q    Was there serious talk about this at the cocktail party last evening?
MR. GIBBS:  I did not attend the cocktail party last evening.  I went home to read a book to my son.  I do believe -- well, did the subject come up?  Yes.  (Laughter.)
Q    "My Pet Goat"?
MR. GIBBS:  I did not read "My Pet Goat."  No, I read -- (laughter) -- I read something on mummies to Ethan.  But I -- yes, the subject certainly came up.  You know, the President also wanted last night to be a little bit more social, you know, so that individuals could better get to know each other and understand where they're coming from in these legislative disagreements.  But, again, you know, the President's outreach on this will continue.  We'll have some folks over probably this weekend to watch the Super Bowl.
Q    Members of Congress?  Leaders?
MR. GIBBS:  I will get a list of that for you.
Q    Journalists, members of the press?  (Laughter.)
MR. GIBBS:  But, you know, again, the President believes, and has believed this, that this type of outreach is important not just on this bill or on this issue but as a way of setting about a tone in Washington that can get things done for the American people.  Many of you heard the President often quote the ability to disagree without being disagreeable, and I think that's the tone that he'd like to see dominate these debates and dominate the issues that we discuss each day in Washington.
Q    On another matter, did the President ask the State Department or NSC staff to draft a conciliatory letter to Iran?
MR. GIBBS:  The President -- neither the President nor the Secretary of State has requested or seen any such letter that I think was reported in an overseas newspaper.  So I think that sort of closes the book a little bit on that.
Yes, sir.
Q    Robert, Mr. Elmendorf yesterday at CBO said that there are going to be billions and billions more needed for financial stability.  Does the White House concur in that?  And if so, how soon might we see a request?
MR. GIBBS:  Well, again, the financial team continues, the economic team continues to meet on this subject -- Chuck asked this yesterday -- to meet on -- and the President talked about this with leaders of Congress, he's talked about this with us -- and understanding that a recovery and reinvestment plan is just one part of what has to happen in going forward to get the economy moving again -- financial stability being a big chunk of that, in addition to financial reregulation, which he talked about yesterday with Paul Volcker.  Part of the meeting that the President will have today with Secretary Geithner will focus in on some of these -- some of these decisions. 
I don't know about specific spending numbers.  I know the President has talked about, and I think the American people understand, that this President will do what is necessary to ensure, one, that we don't suffer any sort of financial collapse and that we have the resources that we need to ensure that banks are lending money to families, to small businesses, and to large businesses.
I don't want to get ahead of those decisions coming to the President and him making them.  Obviously, again, it's a big part of many different avenues that we have to work through to get the economy moving again.
Major.
Q    Robert, on the stimulus, on the politics side, is the White House compiling, and will it release, as this debate moves forward, a state-by-state analysis of job losses?  And does it support the efforts of America Coming Together, MoveOn and other groups that were supportive of Senator Obama during the campaign putting together television ads and other things to put pressure on Republicans to get behind this stimulus effort?  Those are two political questions.  I have a policy one after that.
MR. GIBBS:  Let me -- well, let me -- if you can allow -- if you'll allow me to rephrase a little bit.  I think you're asking me about a story -- an earlier version of a story that I want to tell you doesn't reflect the President's thinking.  And I want to -- but I also want to split that off of different analysis of jobs numbers or transportation spending numbers or school rehabilitation numbers or any sort of analysis that the economic team may do. 
I just -- what I want to do is separate, I think, the political part of that story and the analysis that may be done not for political argument, but to show and demonstrate for the American people where the investments -- where the money is going and what investments they're going toward in this economic recovery plan.  We've certainly talked about individual projects.  We'll talk about the way money is certainly spent and the effect that it will -- we believe it will have on the economy.  I think those analysis are being done on both sides of this.  But the --
Q    The answer is yes, it's just not political?
MR. GIBBS:  Yes, it's just not political.
Q    Understood.  (Laughter.)
MR. GIBBS:  Your policy question?
Q    The CBO was asked by Kent Conrad to evaluate any ways to more rapidly spend out the money that is in the stimulus bill.  And the CBO reported back to Kent Conrad that there are several ways to do it -- two specific ones I want to ask you about.
MR. GIBBS:  Okay.
Q    Waiving requirements for environmental and judicial reviews, and allowing contracts and grants to be awarded outside the normal competitive bid process.  Now, since those kinds of things or regulatory or speed bump things Democrats often supported, I'm wondering is the administration open to reviewing those kinds of things if in fact they impede spending of money that you believe would be essential to helping the economy recovery.
MR. GIBBS:  Let me give for you in this answer what the President told the governors when he met with them -- I guess this would have been sometime in mid- to late November in Philadelphia, because this was an issue that was raised I think maybe by Governor Schwarzenegger or by one of the other governors, regulatory red tape, so to speak.  And the President simply said, you know, if there are things that we can do to speed money into the economy as it relates to infrastructure spending or things like that, he's more than happy to take a look at them in order to get this money infused into the economy and putting people back to work as quickly as possible.
Q    Is he going to ask Democrats to put that specific language in the bill?  Because oftentimes that's what's required to get over these hurdles.
MR. GIBBS:  Well, I think that we would want to look at exactly -- I've not looked at the CBO report that you mentioned specifically.  But all I can say, without reading what specifically they told Senator Conrad, but that the President shares the opinion of both Democrats and Republicans that we should seek to do this as quickly as is reasonably doable. 
And I was asked about this yesterday, about the notion of, well, if you only have 75 percent spent out in 18 months, what about this other 25 percent?  And I think it bears repeating that, regrettably, we are not likely to wake up on the 1st of January in 2011 and find everything going so great.  So there is money that we'll spend out after this 18-month period that will create jobs in that first and second quarter of 2011.  We don't see that as a bad thing, because we're going to need jobs created and money spent in that -- in those quarters in 2011, and certainly probably beyond that.
Q    Back on the politics thing, does the President endorse or support these outside groups pressuring Republicans with TV ads and other things?  Does he have any message for them --
MR. GIBBS:  The President is not going to referee what individual interest groups on either side of this do, except --
Q    Does he believe it enhances the political environment toward compromise?
MR. GIBBS:  I think the President -- I think the President's own actions in reaching out to Republicans demonstrate his willingness to do what is necessary to bring anybody involved in this process along so that he or she can support a recovery plan that the American people can be proud of.
Yes, sir.
Q    Martin Feldstein, who is a noted conservative economist who has been hailed by Democrats as sort of supporting the idea of a stimulus package, in today's Post wrote that -- called the stimulus "an $800 billion mistake," and detailed reasons why he thinks that the particular pieces in it are not actually stimulative and won't have the result -- I guess the question is, is the President open to conversations over the next couple of weeks with conservative economists who argue not that there shouldn't be a stimulus and not that it shouldn't even be as large -- some of them even want larger -- but that the pieces of this are the wrong piece, and is he open to potentially hearing their argument and potentially changing the plan?
MR. GIBBS:  Well, let me address a couple --
Q    And also, if you could tell us who he's supporting in the Super Bowl. 
MR. GIBBS:  All right, let me hold on that one for a second.  (Laughter.)  Let me take your tougher question first.
I think -- part of my answer bears on exactly part of your question, which is, you mentioned that even among economists, conservative ones, there's a -- there are varying opinions about the size of a stimulus package.  There are inherently different opinions about what should be encompassed in those varying sizes of stimulus packages.
I know that, if you go back and read the op-ed, I know that, for instance, one of the things that Mr. Feldstein mentions is he disagrees with the notion that the President's $500 tax cut will be paid out in a lump sum, and that's just not true. 
One of the reasons that we fashioned the tax cut in the way we did was precisely to take into account the notion -- and we've seen this in the past couple of stimulus attempts by Congress and the President -- that lump-sum payments that people tend to get, one-time checks tend to go into savings at a rate far greater than spending because people get this one-time check but understand that it's not going to continue, which causes them to save the money, which is why the tax cuts in the President's plan pay out a little bit at a time so that people that may get $20 or $25 more in each pay period will get used to spending that $20 to $25 each pay period.  They'll understand that if I get it today, because I got paid, that I'll get it in two weeks because I get paid, and I can change my spending habits by that amount of money through the course of the tax cut.
I do think there are some just general disagreements -- as you mentioned, disagreements even among conservative economists.  There's disagreements about what we believe creates jobs and what Mr. Feldstein might believe.
Q    I guess the broader question is, you talk about him wanting to reach out to Republicans and change the tone.  Has he -- does he have any interest in bringing some of these folks into the White House and sitting down --
MR. GIBBS:  I don't know the precise answer to whether he's interested in bringing some of those people down per se to talk.  Obviously he's -- he reads the fine Washington Post and listens to their arguments.  Again, you know, I think if you look at other -- others -- some that helped Senator McCain that have weighed in on what they think is a quality stimulus package.  But again, he is always open to listening to ideas from across the political spectrum and different political parties.
Q    And the Super Bowl question?
MR. GIBBS:  Oh, the Super Bowl question.  I have not asked him specifically who he is rooting for, but I will -- which I will do.  I know he has a tremendous respect and affection for the Rooney family, who we saw at many different points along the campaign trail.  The best breakfast place we went to in the entire campaign was a place that we went with Mr. Rooney in Pittsburgh --
Q    The Steelers --
MR. GIBBS:  Exactly.  And so I -- without prejudging who he roots for, I know he has tremendous affection for the Rooney family.
Jonathan.
Q    You've talked for a couple of weeks now about the multi-leg -- is it three-legged or four-legged stool?  And I'm wondering when you're going to show us a little more leg.  (Laughter.)
MR. GIBBS:  Only I can do that in here, Jonathan.  You can't --
Q    What are those legs?  What are those legs, specifically?  And when are we going to hear anything about the housing plan, about the financial rescue plan and about this reregulation?
MR. GIBBS:  Well, as I said earlier, meetings on each of those continue.  Again, the President met with Mr. Volcker yesterday to talk about regulation.  He met with his economic team this morning as part of his daily briefing on financial stability and the recovery plan. 
And I've done this a couple different ways in here.  But I think roughly you have -- whether you're talking about stools or pillars or what have you -- three main areas:  you have a recovery and reinvestment plan, which is moving through Congress; you have a financial stability package; and you have financial reregulation.  I think involved in some of that in different areas is a housing plan and things like that. 
I don't know that it's tremendously pertinent to get caught up in whether there are three stools -- three legs on this stool or four, or rungs, or what have you.  I think the American people understand that we have to deal with -- and the President also understands that we have to deal with each of these in order to move the economy forward.  I'm not sure which part of the -- which leg housing is.  But I think people that understand -- whether you're living in a neighborhood where the house next to you got foreclosed, or you're not now living in the neighborhood because the house you are in got foreclosed -- you may not understand which leg of the stool you're on, but you understand it's a problem that has to be dealt with.
We'll have I think soon more information and more on many of the things that you mentioned, be it housing, be it regulation, be it financial stability, that members of the Cabinet and the President will talk about.
Q    A follow-up on that?
MR. GIBBS:  Yes.
Q    The international aspect of that, the international leg of the stool that was discussed by the G20, and it is supposed to be discussed in London, people say that it's not moving anywhere, specifically the Russians are -- and not only the Russians -- they are complaining that the Financial Stability Forum, which is like the setup that's in the focus right now, they agree that all the major countries should be in, but the BRIC countries -- Brazil, Russia, India, China -- they're not there.
MR. GIBBS:  Well, I think what the -- and the President talked about this when he was a mere senator and a candidate -- that if one entity takes steps and it's not followed by other countries taking steps, be it regulation, stability or stimulus, that you're likely to see capital flows change all around the world, you could -- we certainly saw it back in September.
The President talked about -- again, the candidate Obama talked about that in September, working together in unison, all of these countries.  And I think you'll hear more about some of those specific plans as we lead to and get closer to going in April to the second round of this in Europe.
Q    Back to Iran, the President of Iran, President Ahmadinejad's speech yesterday calling for profound changes in U.S. policy, an end to support of murdering Zionists, and an apology for U.S. crimes.
MR. GIBBS:  I think it's best to instead focus not on what the leader of -- one of the leaders of Iran might have said, but instead what the President believes:  that we must use all elements of our national power to protect our interest as it relates to Iran.  That includes -- as the President talked about in the campaign -- diplomacy where possible, and that we have many issues to work through.  An illicit nuclear program by the Iranians, the sponsorship of terrorism, and the threatening of peace in Israel are just a few of the issues that this President believes the Iranian leadership should address.
Q    The dialogue you speak of, can the President have a dialogue with someone who speaks in those terms?
MR. GIBBS:  Well, as the President said back in the campaign, it's unclear who -- exactly who that dialogue would be with in Iran.  Again, if -- in order for this to happen, there has to be some preparation and an understanding and a responsibility by both sides in understanding what's going to be talked about, and the responsibilities that each side has.
Q    Now that the Congress has acted, or I guess not acted, where is the President on the digital TV conversion?  Does he believe that doing it as scheduled on February 17th is going to cause undo hardship and confusion?  And if so, is there anything unilaterally he can do to postpone it?
MR. GIBBS:  A good question that -- let me take.  I don't -- obviously during the transition the President's team asked that Congress consider this.  The Senate did and the House did not.  So let me take that question and --
Q    Can I follow that up?
MR. GIBBS:  Yes, sir.
Q    Thank you so much.  A number of Democrats in Congress want to restore the so-called Fairness Doctrine, which before it was repealed applied to only electronics media and not to any print or media --
MR. GIBBS:  Lester, I thought we were -- I thought we were talking about DTV.
Q    Well, does the President believe that -- (laughter) -- this is on the same planet --
MR. GIBBS:  I'm pretty sure I did not -- I don't think I got an answer to my question.  I think we were talking about DTV, and now we seem to be somewhat -- I'm going to go back to baseball -- far field on the Fairness Doctrine.
Q    Since you mentioned it, from the field, does the President believe -- (laughter) -- does the President believe --
Q    Lester, far field?
Q    Does the President believe that the selectivity of some media and not others is fair?  And if so, why?
MR. GIBBS:  I have no information on the Fairness Doctrine, and I will endeavor to get some clarity on DTV. 
Sheryl.
Q    Robert, something you said earlier struck me.  You said that it's going to take longer than 10 days to sort of change the ways of Washington.  Does the President believe that the vote in the House was the result of sort of the deep ingrained patterns of the parties voting along party lines, or does he think that it was the result of philosophical differences over whether this bill would in fact work?
MR. GIBBS:  Well, I think that's in many ways a question to ask those that exercised that vote yesterday.
Q    Well, no, you're assessing the bill and the vote and the way --
MR. GIBBS:  It's hard for me to speak to the mindset of -- either collectively or individually -- members of Congress.  The President and his team formulated a proposal that they thought, and a framework and principles, that they thought would put money back in people's pockets and spend money to create jobs.  That's what we endeavor to do, and what the process endeavors to do as it moves forward.
Q    Can I follow on that, though?
Q    Robert, you're the one that said, "changing the ways of Washington."  What did you mean by that?
MR. GIBBS:  Well, I think there's any number of ways.  I mean, obviously we've had a several-day discussion about bipartisanship.  We've had -- we've talked about different vote counts.  We've talked about nominations and confirmations.  And we've seen somebody -- certainly some people in this room seem surprised at the lengths the President will go to to reach out to the other party, regardless of the results that happen on any given day. 
But that's not going to change the President's desire to do that reaching out, and to try, as I said earlier, figure out a way that even while we disagree we don't have to do it in a way that's disagreeable. 
Q    Well, I guess the question is, doesn't your statement imply that it was politics as usual?  If you say, there were no Republicans, it's going to take awhile to change the ways of Washington, doesn't that imply that it was a political move by the Republicans? 
MR. GIBBS:  Again, I'd leave it some to them to figure out motivations.  I think we all believe -- Democrat or Republican, Congress or the executive branch -- that we're going to be held accountable to the American people to get something done.  Again, whether it's unemployment claims, whether it's GDP numbers, whether it's layoffs, we're in a crisis that requires us acting quickly to get something done. 
Q    Robert, real quick on Iran, a follow-up.  Is it the President's view that the military option with Iran is still on the table?
MR. GIBBS:  The President hasn't changed his viewpoint that he should preserve all his options.
David.
Q    On the question of bipartisanship, you keep talking about the President wanting to reach out and continue to take in ideas.  The House Republican Whip just sent out an email this afternoon, even while you were talking, accusing the White House of issuing political threats rather than engaging in bipartisan activity, and actually naming you as one of the people making threats.  Can you engage in bipartisan activity if you're being accused of making political threats against the Republicans? 
MR. GIBBS:  I don't think I've been -- I don't –
Q    That's what Cantor is saying.
MR. GIBBS:  Again, it's hard for me to step into the mindset of any individual and talk about the motivations for why they think I'm threatening people.  I don't --
Q    You're really innocent?  You're really innocent?
Q    But is there a fallacy --
MR. GIBBS:  I guess --
Q    You're talking --
MR. GIBBS:  I think many people in this room have written that -- when I seem to be overbearing, in their words, that I don't think I leave a lot of misimpression as to what that overbearing might be.  So I think I've been fairly mild-mannered today.  I don't think I've -- at least to my knowledge, not threatened anybody.
But, you know, again, I -- I think this is a little bit about what I talked about, about changing the way Washington works, you know?  You know, I mean --
Q    Can you change -- but what I'm asking --
MR. GIBBS:  But let me finish --
Q    -- can you change it from just one end of Pennsylvania Avenue?
MR. GIBBS:  No, but I don't think we're going to.  I think the American people will demand that we change it at both ends.  And I don't think that we're going to be able to address America's problems unless or until we do so.  But, you know, I think it's important not to get caught up in a typical email back and forth between this podium and the Congress and that sort of thing, you know.  As I said, the President understands that old habits die hard, and that's not going to stop him from working each and every day to make sure that something gets done worthwhile for the American people.
Jonathan.
Q    Robert, is there anything -- is there anything -- two questions.  Is there anything in the stimulus bill that the President considers as sacrosanct?  And then -- that he wouldn't  negotiate over.  And then secondly, the President's home team, the White Sox, as you know, had invited him to toss out the opening pitch -- a long tradition for Presidents.  Is he going to do that at Comiskey, or will he choose perhaps the Nationals here in Washington or the new Yankee stadium up in the Bronx?
MR. GIBBS:  Wow.  A plethora of choices.  (Laughter.)  See, Washington -- we have choices for questions.  I saw the invitation from the White Sox.  I will check on that.  He did that before and it was a lot of fun.
Q    -- double-header.
MR. GIBBS:  There you go.  We could go to the Nationals game and maybe the White Sox, too.
Q    He wants to, I assume, right?
MR. GIBBS:  And -- oh, he loves that.  So -- I'm sorry, your first --
Q    Is there anything in the stimulus package that he considers as sacrosanct, that he wouldn't be able to negotiate over?
MR. GIBBS:  Well, I think you've heard the President talk about believing that the "Make Work Pay" tax cut that he ran on in the campaign and -- that is part of this bill -- is something that he believes quite strongly in.  And I think -- as he listens to other ideas, I think he's -- I think he's decided both as a campaign platform and, more importantly, what makes good economic sense is to put money back into the pockets of people who have watched their wages decline as they've worked harder, as their bills have gotten more expensive, as their expenses have mounted.  And I think that's something that in the meeting both here at the White House and up on Capitol Hill -- I think it's been reported that he said that he felt comfortable with those provisions.
Q    Could I follow up on the rationale on that?
MR. GIBBS:  Yes. 
Q    Could I just follow up on the rationale on that?  Because one of the major problems out there is consumer debt and you're saying that, first of all, you'd like to discourage savings like --
MR. GIBBS:  Hold on, hold on, hold on.  Let me just stop you about halfway.  The question that was asked was about Mr. Feldstein's op-ed as it related to a lump-sum payment.  And all I -- I did not discourage -- I hope everyone saves money -- I didn't discourage savings.  I simply said that if you look at the economic principles of a lump-sum payment in the form of a $300 check, as been given before, or a $500 check for a worker in this plan, or a $1000 check for a family that has two workers, that economic studies show that lump-sum payments tend not to be spent out as quickly or as fully because people and consumers recognize that it's a one-time payment that they're not going to see during their next paycheck. 
The point of an economic stimulus plan is to get money into people's hands and into people's pockets so that they use their hand to reach in their pocket and spend that money.  That's what a payment like the one we have structured will do because, again, it provides that money out over a period of time where they get used to spending that money every two weeks.
So I'm not discouraging savings.  I don't -- I'm pretty sure that my answer was quite clear on the fact that that was not the case.
Q    I guess the question, though, is consumer behavior.  And with the rebate, it was hoped that people would spend it, when in fact many of them ended up using it to pay off credit card debt, paying for, you know, higher price of gas.  And I guess if you're just giving out a small portion per pay period, aren't people just as likely to use that as paying off their credit cards than to spend money that they don't have?
MR. GIBBS:  Let me try this -- let me -- I'm going to swing a third time and see if I can hit this baseball.  I'll try to do it -- I know, I had to get to it.
Again, I think economic studies show -- and I will endeavor to get you one of these economic studies -- is that if you want to get people -- through a tax cut -- money that they're more likely to save -- or I'm sorry -- more likely to spend faster is to do so by spreading it out so that their consumer behavior is augmented by the fact that they understand that that money is coming every pay period; versus giving it to them in one lump sum where, attitudinally, they understand that it's not likely to change.
So I think that's the reason why the structure of our tax cut in terms of "Make Work Pay" is done that way.  It's tilted toward lower- and middle-income individuals and families who are likely to take that money and spend it and get this economy moving again.
Yes, sir.
Q    The President seems to have deferred a little bit to the House Democrats during this process and now, presumably, he'll let the Senate process run its course.  When you get to negotiations between the two houses -- I realize I'm getting a little ahead of the game, but we're kind of curious -- will the President get involved personally at that level or will he leave it to his economic team?  Does he intend to sit down with the leaders of the two parties to try to work out a deal?
MR. GIBBS:  I wouldn't -- I don't know the exact answer.  I wouldn't -- I think that's a strong possibility.  I mean, I think he's largely, in some ways, out of the legislative process by dint of trading one job for the next.  But I don't think I would close the door in any way on the notion that he'll get involved.
Q    Corollary to that, Robert, when the President went to the Hill on Tuesday, Republicans told him they had been shut out of the negotiations.  Might he have leaned on Speaker Pelosi a little more to facilitate negotiations?
MR. GIBBS:  Again, Kirk, you know, when the -- I guess I don't altogether agree with that notion, largely because you can see provisions in this bill that are directly reflective of the input that they've given.  Net operating loss is a provision in there that I think some wanted to take out, but then the President and his team asked that it be kept in.  The -- there's certainly energy provisions in there that are reflective of work that Democrats and Republicans have done together on important issues that will increase the number of clean energy jobs in this country. 
And I think I used this example yesterday with my -- of my friend, who apparently is emailing around, that the Whip said to the President of the United -- to the President-elect then, you know, it would be -- give the American people great confidence if we put these projects up on the Internet and for everyone to see how the money was spent and how the jobs would be created.  And that's exactly the intention that the President and his team have.
So I think the input of -- the input has been there.  I think the legislation is reflective of that.  And I think the President will continue, again, to listen to those ideas so that anybody that has a good idea will be heard.
Q    So you've got no regrets about how you all handled it?
MR. GIBBS:  Again, I think we -- you know, sometimes it might not all look like it pays off at the beginning, but I think the President believes that the time that he's spent here and on Capitol Hill and talking to members was time well spent and time that he'll continue to do.
Q    Thank you.
MR. GIBBS:  Thanks, guys.
END                  3:05 P.M. EST
 
THE WHITE HOUSE

Office of the Press Secretary
_________________________________________________________________

For Immediate Release

January 29, 2009

Oval Office

3:27 P.M. EST

Remarks By The President After Meeting With The Vice President And The Secretary Of The Treasury

THE PRESIDENT: Well, it's good to see you guys. I just had a terrific conversation with my Secretary of the Treasury, the Vice President, as well as the rest of our economic team, about the steps that we need to move forward on -- not only on the economic recovery and reinvestment package, but also on making sure that we begin the process of regulating Wall Street so that we can improve the flow of credit, banks start lending again, so that businesses can reopen, and that we can create more jobs -- but also to make sure that we never find ourselves in the kind of crisis that we're in again, that we've seen over the last several months.

And Secretary Geithner is hard at work on this process. We expect that even as the reinvestment and recovery package moves forward -- as I said, that's only one leg of the stool, and that these other legs of the stool will be rolled out systematically in the coming weeks so that the American people will have a clear sense of a comprehensive strategy designed to put people back to work, reopen businesses and credit flowing again.

One point I want to make is that all of us are going to have responsibilities to get this economy moving again. And when I saw an article today indicating that Wall Street bankers had given themselves $20 billion worth of bonuses -- the same amount of bonuses as they gave themselves in 2004 -- at a time when most of these institutions were teetering on collapse and they are asking for taxpayers to help sustain them, and when taxpayers find themselves in the difficult position that if they don't provide help that the entire system could come down on top of our heads -- that is the height of irresponsibility. It is shameful.

And part of what we're going to need is for folks on Wall Street who are asking for help to show some restraint and show some discipline and show some sense of responsibility. The American people understand that we've got a big hole that we've got to dig ourselves out of -- but they don't like the idea that people are digging a bigger hole even as they're being asked to fill it up.

And so we're going to be having conversations as this process moves forward directly with these folks on Wall Street to underscore that they have to start acting in a more responsible fashion if we are to together get this economy rolling again. There will be time for them to make profits, and there will be time for them to get bonuses -- now is not that time. And that's a message that I intend to send directly to them, I expect Secretary Geithner to send to them -- and Secretary Geithner already had to pull back one institution that had gone forward with a multimillion dollar jet plane purchase at the same time as they're receiving TARP money. We shouldn't have to do that because they should know better. And we will continue to send that message loud and clear.

Having said that, I am confident that with the recovery package moving through the House and through the Senate, with the excellent work that's already been done by Secretary Geithner in consultation with Larry Summers and Paul Volcker and other individuals, that we are going to be able to set up a regulatory framework that rights the ship and that gets us moving again. And I know the American people are eager to get moving again -- they want to work. They are serious about their responsibilities; I am, too, in this White House and I hope that the folks on Wall Street are going to be thinking in the same way.

All right. Thank you, guys.

Q The Steelers or Cardinals, sir?

THE PRESIDENT: I have to say, you know, I wish the Cardinals the best. Kurt Warner is a great story and he's closer to my age than anybody else on the field, but I am a long-time Steelers fan. Mr. Rooney, the owner, was just an extraordinary supporter during the course of the campaign. Franco Harris was campaigning for me in Pittsburgh. So --

THE VICE PRESIDENT: Coach signed up with you, too.

THE PRESIDENT: Right, Coach Tomlin was a supporter. So I -- you know, I wish the best to the Cardinals. They've been long-suffering; it's a great Cinderella story. But other than the Bears, the Steelers are probably the team that's closest to my heart.

All right.

END 3:31 P.M. EST

 

Cleaning house

Interior Secretary Ken Salazar kicked off the daily press briefing today with his plans for cleaning out a department that has become famous for scandal.
"Over the last eight years, the Department of Interior has been tarnished by ethical lapses, of criminal behavior that has extended to the very highest levels of government," he said.
He’s taking over a Department plagued by Jack Abramoff-related scandals and another involving sex and drug use by Interior employees, and promised to clean house.
"We will work to reform the Department of the Interior, to restore the public's trust and confidence in the highest levels of ethics and accountability that the American people deserve," he said.
He then took a couple of questions, before handing the podium over to Press Secretary Gibbs. Highlights below – you can read the full remarks below.

On off-shore drilling:

Salazar: With respect to the Outer Continental Shelf, as President Obama made very clear during the campaign, we will look at the OCS in connection with a comprehensive energy program for the nation.  One of the signature issues that President Obama will work on very hard, has worked on very hard, and will continue to work on very hard is the development of a comprehensive energy strategy.  We need to address the economic opportunity here at home, the environmental insecurity that comes from global warming, and also the national security issues. And so, as we move forward with the development of our oil and gas resources, both onshore and offshore, it has to be a part of a set of a comprehensive energy program.

On oil and gas exploration on federal lands:

Salazar: There are a number of different regulations and actions that were taken by the Bush administration, some of them in the midnight hour as their term expired here, and we have all of those on the table and we're taking a look at them.  There are some which are bad and which need a new direction.  There are probably some which will be kept in place.  [Regarding] the approach to oil and gas development -- it has to be done in the context of a comprehensive energy plan.  And it also has to be done with the right kind of balance.  There are places where it is appropriate to explore and to develop oil and gas resources, and there are places that are not appropriate. 

On President Obama’s meeting today with Pentagon officials:

Gibbs: With the status of forces agreement that puts an end date on our involvement there -- we're no longer involved in a debate about whether, but how and when. That's a process the President wants to take seriously; wants to ensure the safety of our troops as we remove our combat brigades; wants to, as I've said repeatedly, provide the responsibility and the opportunity for the Iraqis to do more in governing their own country; and as I said, to do this in a way that seeks the consultation of all those leaders….Everyone understands that our force structure there will change, but that we have to do so in a way that protects the troops that we have there now.

On specific elements of the economic stimulus package (which several hours later the House approved):

Gibbs: Let's focus on the larger picture...As we get focused on this number and that number and 2/100ths of 1 percent and all this kind of stuff, understand what we've seen in just the last 48 hours: 70,000 people since Monday have gotten pink slips from the companies that they work for, right? The unemployment figures that came out just yesterday from the Bureau of Labor Statistics found every state in the country's -- every state in the country saw job loss....We think if members focus on this bill they'll see that it moves the economy forward; that money will be spent in this economy, 75 percent of it in the first 18 months; that jobs will be created, jobs will be saved, money will get put back into people's pockets. This, along with a financial stability package, reregulation, and a plan to deal with home foreclosures, will push this economy forward and put people back to work. And hopefully one day we can come up here and I won't have to answer a question based on the fact that another company has decided to lay off 2,000 or 10,000 or 20,000 people.

On Secretary Gates' comments yesterday that, "We need to be very careful about the nature of our goals we set for ourselves in Afghanistan":

Gibbs: [Yes], it's going to take quite some time and we have to be realistic about both that timeline and those goals. The President said that Afghanistan and the border between Afghanistan and Pakistan represent the central front on the war on terror; that today in those places, terrorists likely plot their next steps both against governments in that region, as well as against us. And the safety and the security of the American people are utmost on the President's agenda. Through that comprehensive review, we'll adjust whatever we need to, to meet goals and time lines as it relates to Afghanistan.

On the rate of spending of the stimulus plan:

Gibbs: The reason that some of this money isn't completely spent out in '09 and 2010 is ... I don't think we're going to wake up on January 1, 2011, you know, like Dorothy in the Wizard of Oz, and we're going to go from black and white to color. We're still going to have a lot of battles to face and economic hardship to move the economy to a better place. So that the investment and the stimulus that happen as a result of this legislation don't drop off like a cliff, some of that money bleeds into 2011. The CBO I think talked in its report about the fact that that money would then -- would create jobs in 2011. I don't want to get hung up on sort of these rigid times and not understand that we're going to wake up the beginning of 2011 and want people to be employed, families to be borrowing money to buy the things that they want to, like cars or loans for their kids to go to school, and to have healthy small businesses that are creating jobs.  All that stuff has got to happen; it's not just going to all happen overnight.

On the President's upcoming trip to Canada:

Gibbs: I think it is safe to say that the health of each economy and the health of the global economy will be a large part of that agenda. And I strongly anticipate, as was the case when the then President-elect met with the leader of Mexico, that trade will be a part of that docket.

 
PRESS BRIEFING
BY PRESS SECRETARY ROBERT GIBBS
AND SECRETARY OF INTERIOR KEN SALAZAR
January 28, 2009
James S. Brady Press Briefing Room
MR. GIBBS: Good afternoon, guys. Before we get started, I wanted to introduce Secretary Salazar, who is going to make his second trip as our Secretary of the Interior tomorrow -- he's going to go out West. And I've invited him here to talk a little bit about the reform agenda that he's going to take with him on that trip, and answer a few questions. And then we'll get back to our regularly scheduled programming. So, Secretary.
SECRETARY SALAZAR: Thank you, Robert.
President Obama has immediately set high ethical standards for all of government as part of his reform agenda. As part of that commitment and implementing the reform agenda, I intend to do my part in the Department of Interior to make sure that scandals that have occurred in the past are properly dealt with, and that the problems that we uncover are fixed so that they don't occur again.
President Obama immediately made clear that the type of ethical transgressions, the blatant conflicts of interest, waste and abuses that we have seen over the last eight years will no longer be tolerated. Nowhere is President Obama's commitment to reform and to cleaning up the waste, fraud and abuse of the past more important than at the Department of Interior, which I now lead on his behalf.
Over the last eight years, the Department of Interior has been tarnished by ethical lapses, of criminal behavior that has extended to the very highest levels of government. The former deputy secretary of the department under the Bush administration, Steven Griles, was sent to prison. It is a department that the American people associate with Jack Abramoff. And it is a department that was tarnished by a scandal involving sex, drugs and inappropriate gifts from the oil and gas companies that the employees were in charge of overseeing.
The Lakewood, Colorado, office of the Minerals Management Service is taxed with making sure that taxpayers, the American taxpayers, collect their fair share from oil and gas development on their public lands. Last year that office collected $23 billion. That's $23 billion on behalf of the American people. Yet during the last administration, some of the employees of that office violated the public trust by accepting gifts and employment contracts from the very oil and gas companies that they were supposed to be holding accountable.
Some employees engaged in blatant and criminal conflicts of interest and self-dealing. It is one of the worst examples of corruption, abuse and of government putting special interests before the public interest.
Tomorrow I will be traveling to the Lakewood MMS office to meet with the employees. I there will be announcing our own review of what happened, what has been done to address it, and what additional steps need to be taken.
It will be clear that we will no longer tolerate those types of lapses at any level of government, from political appointees or career employees. This is only the first step of our long-term effort to enact comprehensive top-to-bottom reforms within the Department of Interior. The American people should be proud of their government, all of their government. Those who work for the government should be proud of their service to the American people. We will work to reform the Department of the Interior, to restore the public's trust and confidence in the highest levels of ethics and accountability that the American people deserve.
And with that, I'd be happy to take a few questions from the audience.
Q Secretary, what about -- can you clarify where the administration is right now on whether you're going to overturn the Bush policy on exploring offshore oil and gas drilling, et cetera?
SECRETARY SALAZAR: With respect to the Outer Continental Shelf, as President Obama made very clear during the campaign, we will look at the OCS in connection with a comprehensive energy program for the nation. One of the signature issues that President Obama will work on very hard, has worked on very hard, and will continue to work on very hard is the development of a comprehensive energy strategy. We need to address the economic opportunity here at home, the environmental insecurity that comes from global warming, and also the national security issues.
And so, as we move forward with the development of our oil and gas resources, both onshore and offshore, it has to be a part of a set of a comprehensive energy program.
Q So do you believe there should be more?
Q Does that mean it's on hold? It means there will be no drilling under this order until you've done this review; is that what that means?
SECRETARY SALAZAR: No, not at all. The current status of the OCS --
Q I mean, no expansion -- obviously there is some now -- but expansion -- are you saying that expansion is on hold pending this comprehensive energy policy?
SECRETARY SALAZAR: The status of the OCS right now is that the five-year plan of the Department of Interior that governs the OCS has been opened up, okay? And so it is now a plan that is being formulated. And as that plan gets formulated it is going to have to fit in with a comprehensive energy plan that President Obama wants for the nation, which is a signature issue and one in which the Department of Interior will be intimately involved in supporting the President's goals to get America to a point of energy independence for all the reasons that I articulated earlier.
Q Mr. Secretary, during the transition, the co-chair of the transition for President Obama, John Podesta, said that the President would be overturning some of the executive orders and presidential orders President Bush had put into place about oil and gas exploration on federal lands. We have not seen any executive orders or presidential orders overturning them, and I'm wondering if they're pending, and if you think it's wise to limit where the United States is able to explore for energy during this time of energy crisis, where we're getting all our oil from abroad.
SECRETARY SALAZAR: The answer to that question is that there are a number of different regulations and actions that were taken by the Bush administration, some of them in the midnight hour as their term expired here, and we have all of those on the table and we're taking a look at them. There are some which are bad and which need a new direction. There are probably some which will be kept in place. And so we are now in the process, having now been in the Department of Interior's position, really, for only about a week, at taking a look at all of these regulations.
On the more fundamental issue which I think you are addressing, which is the approach to oil and gas development -- it has to be done in the context of a comprehensive energy plan. And it also has to be done with the right kind of balance. There are places where it is appropriate to explore and to develop oil and gas resources, and there are places that are not appropriate. And so that's part of what we'll move forward with in the agenda at the Department of Interior.
Q Of the incidents that you cited in your opening statement, were most of those political appointees? Were some career? And in the week in which you've been in office, have any ongoing ethics violations been brought to your attention?
SECRETARY SALAZAR: The report the Inspector General referred to -- there are actually three investigations that were conducted by the Inspector General -- some of them had to do with very high-level employees within the Department of Interior and engaging in self-dealing and other kinds of inappropriate relations with outside interests. Some of the -- two of the investigations dealt with gifts and sex and drugs actually taking place in transactions in the very government buildings where MMS has its responsibilities. So we're taking a look at that, and tomorrow we'll have some additional announcements on where we want to take all those issues.
Q But are they political appointees, or are they career people who are still working for you?
SECRETARY SALAZAR: They're both. They're both.
Thank you.
MR. GIBBS: Thank you.
SECRETARY SALAZAR: Now you get the hot seat.
MR. GIBBS: Exactly. (Laughter.)
SECRETARY SALAZAR: Can I sit up here and watch you -- (sits in Helen Thomas's seat.) (Laughter.)
MR. GIBBS: He wants to sit -- there you go. (Laughter.)
Q Don't block my view. (Laughter.)
MR. GIBBS: Under one condition, that I don't get any hard questions from you in the middle of that -- in the middle of that chair. I might have --
Q -- questions to ask him.
MR. GIBBS: I might have spoken far too soon.
Q Ask him something we don't know about -- (laughter.)
MR. GIBBS: Yes. And definitely no talking to those guys on either side of you who -- I'm going to get asked about some acreage leasing on --
Q The first time we have a Secretary in the first row.
MR. GIBBS: He's -- well, I want to say this was helpfully provided to my by CBS News so that I would -- (laughter) -- this is day nine of the Obama presidency -- a service of CBS News. So I thought I would -- got a kick out of that. I thought that was pretty good.
Let me make a few announcements before we entertain everyone but Secretary Salazar's questions. The President has made a call to President Motlanthe of South Africa. And we'll have a readout on that at the conclusion of this. The President met -- had his economic daily briefing this morning in the Oval Office. In addition to Secretary Geithner and Dr. Summers, he was joined by Paul Volcker, who, as you know, is in charge of the President's Economic Recovery Advisory Board. And the main topic of discussion was financial reregulation, a topic that the President spoke about yesterday on Capitol Hill, and you'll hear certainly more of as we move forward.
Lastly, as you all know, the President intends to make his first foreign trip as President to Canada. He will make that trip on February the 19th. Canada is a vitally important ally, and the President looks forward to the opportunity to speak with Prime Minister Harper and visit our neighbor to the north. So please add that to your appropriate planning schedules.
And lastly, the President looks forward to the House's action this evening on a recovery and reinvestment plan that he believes tonight is likely to take an important first step in getting our economy back on track and saving -- plan to save or create 3 or 4 million jobs, as I said, begin to get our economy moving again. The President looks forward to that vote, and we'll have some comments on that later. I think, again, tonight starts the beginning of what we know is going to be a long process as it relates to that, but I think tonight will be a very important first step.
With that -- Jennifer.
Q Thanks. I want to talk about the meeting he's having at the Pentagon this afternoon. You talked, and Secretary Gates has talked about a process that's underway. There was the meeting last week, there's the meeting today, there's going to be one specifically on Afghanistan next week, there will be others. But can you talk a little bit more about how long you guys expect this process to take, how it works? I mean, you said yesterday that he has to go through all this in order to make decisions on the troop posture. And there are several different options, different formulations being put together at the Pentagon, being presented to him of how he can do what it is he wants to do. So can you just explain more about how this is going to work?
MR. GIBBS: Yes. Well, I think the most important thing -- and the President spoke about this, as many of you heard, throughout the campaign, and both during the transition and now as President of the United States -- that -- and as I said yesterday, the Secretary of Defense was very clear on this -- that he wanted to put everybody that was involved in these decisions in front of the President so the President could hear all of their advice.
The President committed, as a part of this process, to speak with commanders both on the ground in Iraq and Afghanistan, as well as region-wide commanders, to get their perspective as he laid out a new mission for Iraq. I think everybody understands that the developments over the past few months in Iraq, with the status of forces agreement that puts an end date on our involvement there -- we're no longer involved in a debate about whether, but how and when. That's a process the President wants to take seriously; wants to ensure the safety of our troops as we remove our combat brigades; wants to, as I've said repeatedly, provide the responsibility and the opportunity for the Iraqis to do more in governing their own country; and as I said, to do this in a way that seeks the consultation of all those leaders.
The process began on the 21st, as you guys know, in the Situation Room, continues today at the Pentagon. I think there will be at least one more meeting that will involve General McKiernan to discuss specifically Afghanistan.
I don't anticipate the process will take an inordinate amount of time. I think one of the things the President expects to hear today, and one of the -- what we all heard yesterday in the testimony from Secretary Gates is how important improving our position in Afghanistan is, and secondly, how we are at a point now where many of our forces are stretched very, very thin, and the burden that we put on not just the soldiers every day, but on the many family members that stay here and pray for their loved ones and care for their children.
So I think we've got a deliberate process that the President will be able to receive that information and make some key determinations as we change that mission in Iraq.
Q So can you be more specific about when we might hear from him?
MR. GIBBS: I think it will be relatively soon. I don't want to set an exact date, though I think it will be relatively shortly. I think the President and -- the President has received a lot of information; the Pentagon has been planning for quite some time -- partly because of the new agreements. They understand -- everyone understands that our force structure there will change, but that we have to do so in a way that protects the troops that we have there now.
Q Robert, can you talk about the policy toward Afghanistan? Specifically, the New York Times article today said that there was going to be a shift in the policy, more emphasis on fighting insurgents, less emphasis on development. Can you talk about that?
MR. GIBBS: Yes, let me -- I guess before I get into some of the back-and-forth, let me try to clarify some of I think what we believed was erroneous reporting overnight.
As I just said, there is a review of our policy in Afghanistan. That policy review continues in order to ensure our success in that region, but that that policy review is not yet completed. Secondly, we support the democratically elected President of Afghanistan. And lastly, the President has emphasized in the campaign and in the transition and emphasizes now the importance of long-term development both in Afghanistan and in the region.
I mean, I think one of the interesting things when we were involved in the meeting on Iraq was you didn't just have, sitting around that table or on the video conference, you didn't just have members of the military or the military planning. You had Ambassador Crocker, who was providing a very important political update on upcoming elections and the political environment in Iraq, as well as at that meeting the State Department was represented by former Ambassador Burns.
The President has long believed that whether it's in Iraq or in Afghanistan, that there -- though it's the central front on the war on terror in Afghanistan, or whether it relates to Afghanistan or Iraq, that there's not simply a military solution to that problem; that only through long-term and sustainable development can we ever hope to turn around what's going on there.
So I would caution you -- I know the importance of getting stories out into newspapers; they may not altogether be finished by the time they get printed.
Q But he's talked about the Europeans may be focusing more on the development, so the development wouldn't be forgotten about, but the Americans would focus on fighting insurgency. Is that part of it realistic --
MR. GIBBS: Well, I think that the -- and I think the President certainly has talked about this; you all heard him talk about it particularly on his trip overseas during the campaign and in his speech in Berlin, and in his discussions recently with leaders in Europe, he's talked to them not only about increased troop commitments, but also on that development piece that's so crucial.
But again, before we read too much into what was in that report, I think it's important to understand that the review -- the comprehensive review that this administration has undertaken about our policy in Afghanistan is not yet complete. So I caution you to say that a lot of decisions have thus been made based on an incomplete report.
Q Okay. Also, his relationship with Karzai -- he met with Karzai last July -- the article suggests that he's no longer going to be doing the video conferences that President Bush did.
MR. GIBBS: That's -- well, again, that's part of the policy review, and when that's completed, we'll have a better sense of what that is. Again, we support the democratically elected President of Afghanistan, and look forward to working with him and with others to ensure peace and stability and safety in the region.
Q Robert, building on the eloquent comments of Secretary Salazar about ethics and accountability in government, is the President bothered at all that Secretary Geithner has picked as his chief of staff a former lobbyist for Goldman Sachs who has obviously -- that company has benefitted from government bailouts. Doesn't that punch a hole in what the President signed just last week in terms of preventing lobbyists like that from serving in his administration?
MR. GIBBS: No, the President -- well, let's -- again, let's step back and talk about the broader issue of ethics and transparency in this administration. As I've said from this podium, and as you all read in papers throughout the country, that the ethics and transparency executive orders that the President signed the first day institute a policy that covers this administration unlike any policy we've seen in any previous administration in the history of our country. The President spoke about this during the campaign, but he also spoke about the notion that no policy was going to be perfect. The President, in his election campaign, didn't take money from lobbyists or from PACs -- again, not a perfect policy, but a step in the right direction of changing the way Washington works.
We've talked about the fact that there are people that are good public servants who wish to serve their government again, who are -- through some stringent ethics requirements and recusals, they will be able to participate in helping this government. But we have, again, the strongest ethics and transparency policy that govern the executive branch and the workings of this White House that we've seen in the history of our country.
Q But if it's a strong -- even if it's a strong policy, does it mean anything if people are getting waivers to go around it?
MR. GIBBS: Well, again, you know, let's caution ourselves as to the number of people that are going to work both in this building and in the executive branch and how many waivers we have. Again, I think if the people that follow this issue most closely, whether it's political analysts or think tanks throughout this city who have seen the way this city works, have seen the revolving door and watched how administrations conduct their business, have rendered the conclusion that the policy that we have is the strongest that any administration in the history of our country has had, I think that speaks for itself.
Those very same people that labeled that policy the strongest of any administration in history also said they thought it made sense for a limited number of waivers to ensure that people could continue to serve the public.
Q Senator Mitchell, in fact, right now is in the Mideast, and Bloomberg has reported that the firm that he chaired -- they have all kinds of lobbying clients in the Mideast, for example. So how can he go to the Mideast when his -- the firm --
MR. GIBBS: Let's not take a lot of things and misconstrue, right? You know, let's not take --
Q Which part is misconstrued?
MR. GIBBS: Well, has Senator Mitchell lobbied?
Q He is not registered lobbyist, but he is chair --
MR. GIBBS: Okay. So let's not --
Q -- business, so isn't that another way to get around it?
MR. GIBBS: I assume that maybe media organizations are owned by different businesses that conduct different things that might not altogether represent the interests of the media interest in general. But let's not take a group and an example and try to squish it into something that it's not.
Q He's been the head of a firm that has all kinds of lobbyists with business in the Mideast and all around the world --
MR. GIBBS: But you asked me about --
Q -- website says they have all these contacts in the Mideast. And so, even if he's technically not lobbying, this firm is making money off of his --
MR. GIBBS: I hate to be ticky-tack about it, but technically he's not lobbying.
Q He's not a registered lobbyist, but you know how --
MR. GIBBS: But, Ed, to lobby the federal government you have to be registered. I mean, I hate to -- I understand the semantic hurdles that you're setting forward for the policy, but let's understand, he wasn't a lobbyist, he wasn't registered to lobby, and if you're not registered to lobby you can't be a lobbyist. That's why people have rendered the policy to be the strongest that it's been for any administration.
Q But, Robert, the broader point is what's the point of having the strongest policy if you're going to have waivers, especially at key posts that are some of the most high-profile and most important --
MR. GIBBS: Let me -- we will distribute to you the quotes from the people that rendered the decision that we have the strongest lobbying and transparency proposals, but also spoke out for a limited number of waivers to ensure that highly qualified people can serve in the public interest.
But again, we have a policy that governs this White House and this administration unlike anything that has been covered from this room or has been seen in this city. That's the bottom line, and that's irrefutable.
Jake.
Q Robert, on the stimulus package, the President yesterday told a closed-door meeting of House Republicans that there was spending in the bill that he didn't like. And obviously he took action, calling Congressman Waxman to remove the part having to do with birth control. Now, there is a $335 million provision for education for sexually transmitted diseases. There still is in the bill $50 million funding for the National Endowment for the Arts. And that's the House. And I understand your emphasis in the Senate, but in the Senate there are earmarked projects, as well: $70 million for a supercomputer for NOAA, $75 million for education for smoking cessation. President Obama can tell these Democratic senators and members of the House, take the stuff out of the bill. He obviously did so with Congressman Waxman. Why doesn't he do it for all these earmarks?
MR. GIBBS: Well, let me talk a little bit about what he said yesterday at these meetings, because he said that there's no doubt this will produce a process whereby every person does not like 100 percent of every part of the bill, but that would be true whether Democrats were writing the bill, or Republicans were writing the bill. And he said that to two rooms full of Republicans, of which I think there was pretty broad agreement.
This is a process based on a series of principles and framework that our economic team and the President sent to Capitol Hill to create a plan that we believe will move this economy along. I know there is a tendency, and there always will be, to focus on, as I mentioned yesterday, 2/100ths of 1 percent of a piece of legislation. I have a hard time believing that the 98/100ths of the other 99 percent aren't the large focus of members of Congress that are going to vote both today and over the course of the next few weeks.
Q President Obama had that problem, calling Chairman Waxman and telling him to remove 2/100ths of 1 percent from the bill when he saw that it was a hurdle.
MR. GIBBS: But again, let's focus on the larger picture. Let's focus on the fact that we have $275 billion in tax cuts to put money directly into the pockets of hardworking Americans that will spend that money and get our economy moving again. Let's focus on the fact that there is $550 billion in spending that will put people back to work.
But as we get focused on this number and that number and 2/100ths of 1 percent and all this kind of stuff, understand what we've seen in just the last 48 hours, Jake: 70,000 people since Monday have gotten pink slips from the companies that they work for, right? The unemployment figures that came out just yesterday from the Bureau of Labor Statistics found every state in the country's -- every state in the country saw job loss. Every state in the country. The layoffs continue today, with Boeing announcing an additional 10,000 jobs that will be shed over the course of the year.
Q That's precisely my point. Wouldn't it be better to take that $75 million, instead of sending it to a smoking cessation program, to send it to these people that are out of work?
MR. GIBBS: Well, I think the vast majority, the great bulk of that bill, does exactly that. We hope that Republicans and Democrats alike look at not just whatever page you're focusing on but whatever other pages they've decided not to focus on, and understand that the program that is being crafted -- and it will change -- there's a great tendency, and we've done this over the last few days in this room, to try to figure out what the score of the baseball game is after the third inning, okay? My team would probably be great if we stopped doing that. This is a long process that we hope is concluded by President's Day recess, because -- and the President heard this from CEOs today -- we can't afford to wait. We have to act.
Tonight the House, we believe, will take an important step. We think if members focus on this bill they'll see that it moves the economy forward; that money will be spent in this economy, 75 percent of it in the first 18 months; that jobs will be created, jobs will be saved, money will get put back into people's pockets. This, along with a financial stability package, reregulation, and a plan to deal with home foreclosures, will push this economy forward and put people back to work. And hopefully one day we can come up here and I won't have to answer a question based on the fact that another company has decided to lay off 2,000 or 10,000 or 20,000 people.
Q The President was incredibly well received yesterday by Republicans. They called him everything from sincere, to nice, to brilliant. One said he talks more like a Republican than a Democrat. I mean, they obviously like him and they think he's very serious about this. Yet it appears he has had no effect on the vote -- perhaps a handful or a couple of votes. Is it frustrating or disappointing to him to go up there, to be so well received and have no effect on the vote?
MR. GIBBS: No, again, this is a many-vote, many-day process. There will be a vote tonight, there will be a vote next week, there will be votes the weeks after that, until we eventually have what we think will be a bipartisan proposal to get this economy moving again. Again, I hesitate to call the game after the third inning. I hate to declare the winner. I hate to declare that -- I know we'll have analysis to write, but let's not stop after the third inning and tell us who won in the ninth. It's a long process --
Q But don't --
MR. GIBBS: Hold on -- look, I don't -- the President, as I said from this podium yesterday, believes that the three or so hours he spent on Capitol Hill were well spent yesterday. We're having bipartisan leaders come down to the White House tonight. Congress Wamp of Tennessee said that what he saw from the President yesterday was not a PR stunt, that it was sincere, as the quotes that you read suggest. The President is very serious about this. Whether it all happens overnight in terms of votes, we'll wait and see. But my sense is that over the long run, listening to both parties, changing the way this town works and listens to each other is important not just as we focus on this piece of legislation, but as we focus on the many ideas and the many pieces of legislation that are going to have to be undertaken in order to move the economy forward.
Q Can I, Robert, follow up -- and I'd like to give it to Secretary Salazar, if I could -- no. I want to ask about --
MR. GIBBS: He's going to ask me a softball --
Q -- the cocktail party tonight. What was the genesis of that idea? And it's evenly divided, six and six, I believe, from the House, and five and five, party-wise from the Senate --
MR. GIBBS: That's so the basketball games are easier. (Laughter.)
Q Is that going to be the way it is around here? Is he going to have just as many Republicans visiting him here as Democrats? And is he going to see the Republicans just as often on the Hill as the Democrats? Is it going to be that bipartisan?
MR. GIBBS: Well, I think the second part -- as I said yesterday, I don't -- the offer was made; he accepted that offer to come to Capitol Hill yesterday. Congressman Pence invited him back and said the door was always open. And I said I thought the President would likely take him up on that opportunity. He's serious about that.
I don't know the particular ratios of tonight. I think it's -- we have an equal number of leaders on both sides of the aisle and in both the House and the Senate that the President looks forward to getting to know better, to being able to establish a strong working relationship with, to move the priorities of the American people forward.
At the end of the day, the President understands that both he and Congress will be judged by what we can all do for the American people. And I think that is a step in this process toward being able to work together and provide some hope and hopefully some better times for the American people.
Q Robert, the head of the CBO went up to the Senate Budget Committee today and said that the TARP, the financial bailout, hundreds of billions of dollars short. Do you guys concur with that assessment from the CBO?
MR. GIBBS: I have -- I did not see that report before I came out here. I know that, as I've said, the economic team continues to work on a series of proposals for the President to look at. Again, during the economic daily briefing the President had today, he had Mr. Volcker in to talk about financial reregulation. What we talked about yesterday on Capitol Hill was not one thing or one aspect that will solve our economic crisis, but instead, how an economic recovery and reinvestment plan, a financial stability package, and a reregulation package all together can help move the economy forward.
The one thing I did see -- now that you've mentioned our good friends at the CBO -- the CBO says that without stimulus, "the shortfall in the nation's output relative to its potential would be the largest -- in terms of both length and depth -- since the Great Depression." I think those are clear words from the Congressional Budget Office in understanding if anyone needed any more numbers to understand how very important it is that the House take these important steps tonight and that the Senate soon follow, and ultimately we get to the President's desk a recovery and reinvestment plan.
Q It's my understand that the conversation with Senate Republicans with the President had to do a lot with the bigger picture --
MR. GIBBS: It did.
Q -- of the economic environment. Did he get suggestions of how -- because if this CBO report is true, and it sounds like you believe -- you like to quote from the CBO, so you must believe that they --
MR. GIBBS: There are occasions in which I have read the CBO.
Q -- this is accurate reporting -- did they give you suggestions of how you can sell the American people on this idea that you're going to have to get billions of more dollars in taxpayer money?
MR. GIBBS: I think the main message -- and I struggle every day just to be the spokesperson for one individual in this town, so I very much hesitate to speak for an entire group --
Q But you were in the room.
MR. GIBBS: I was in the room, so let me give you my impression, which was, the main message that I heard -- and I heard it again on cable this morning from members -- Republican members of the Senate -- was that -- and this is a concept the President agrees quite strongly with -- and that is that one aspect of this alone isn't going to solve our problems and isn't going to fully or adequately address the economic crisis; that only by addressing each of the legs of this stool will we create something that can stand on its own.
I don't think they got -- I don't recall, at least, getting into specific numbers. You know, they -- I think both the President and Senate Republicans understand the urgency of the next set of funds being used differently, more transparently, with a far greater eye to actual lending of money. We've all been reminded in the last couple days how entities can get money from the American taxpayers and seek to use it poorly. And thankfully, that, I think because of the outrage of Capitol Hill and some phone calls, got stopped. But the focus was more on the notion that many things had to happen in order for our economy to get moving again. I think Senate Republicans and I think the President are heartened that there is agreement that tackling one won't solve it; we are going to have to work together and on parallel tracks to address many of these problems over the course of --
Q Is it fair to characterize it that he wasn't just lobbying for a stimulus, he was lobbying for all three legs of the stool --
MR. GIBBS: I think he was agreeing with the discussion that each of these aspects is extremely important if we are to see the economy recover and Americans get put back to work.
Q Robert, all of these pages that you see as being selectively picked apart when questions are raised about they add up to a lot of money in tight times -- to what extent do you see any further paring of those kinds of programs before this thing comes out of conference and goes to a final vote?
MR. GIBBS: I think this largely proves my somewhat maybe possibly weak baseball analogy that, again, this is a -- if the vote is happening in the third inning, we've still got six more innings to go. So you can look at each one of these things each and every day; I think it's more important to see where we end up.
Q They keep score each inning.
MR. GIBBS: They do. They do. But they don't declare winners -- you get up and stretch at one point during the game and there's a man that says you can't buy beer after a certain time. But the umpire doesn't declare the game over except for one point in the game. (Laughter.) So I guess I would stress that even if you get up to stretch and buy beer, they only call one winner. So let's hope that that one winner is the American people because both teams have worked together.
Q Oooh!
Q Wow!
MR. GIBBS: I'll take two. I'll -- (laughter.) Yes, sir.
Q To follow up on that, the President today and previously has talked about skepticism. Aren't these the very kinds of programs that engender skepticism? Smoking cessation programs and these kinds of things?
MR. GIBBS: Well, again, here's my point, is let's write a story on the money that's going to go to rebuild schools that the President visited, like the ones in South Carolina that haven't been refurbished or redone since I think it was 1899. Right? I think there's a lot more money that goes to something like that, that will put people back to work in South Carolina, which has seen its unemployment rate grow to 9.5 percent, according to the Bureau of Labor Statistics just yesterday. Or let's focus on building roads and bridges in a place like Michigan, that's watched its unemployment rate increased to 10.6 percent as of yesterday, according to the Bureau of Labor Statistics. Or any other investments in jobs, or health care, or energy in a place like California that watched 80,000 jobs be shed just last month, according to the Bureau of Labor Statistics.
I think we can get focused on a lot of different things. I think it is important to understand and to look at the long view of this, to understand that there are committee processes, there's votes, there's the Rules Committee, there's the floor, there's amendments, there's final passage -- there's all these fancy legislative terms. But let's look at the final product that we get, and understand that the President hopes, sincerely hopes, that each person looks at the totality of the package and what it will do to get the economy moving again.
Q Robert, a logistical question -- can we expect to hear from him after the House vote?
MR. GIBBS: We will have something for you after that vote. I'm not entirely sure what form it will take.
Q Robert, I'd like to go back to the oil drilling, OCS. Is it the goal, or once this review is completed, will there be more oil drilling? Or will there be little change?
MR. GIBBS: Let me get some legislative advice on this as it relates to where we are in the policy. I know that Congress did not renew the ban on offshore oil drilling. The President, as the Secretary said, supports some new drilling as it relates to a larger and more comprehensive energy independence plan. I think you heard the President say throughout the campaign, much like the financial crisis that we face, that it's not one thing that's likely to -- that we're likely to do on any given day and wake up and be far less dependent on foreign oil. It's not going to just be drilling offshore, just like it's not just going to be wind or solar energy, or just going to be biofuels. It's going to be all of those things taken together. I think that's what the President hopes to do. I think a down payment on that larger investment to getting ourselves to energy independence is contained within the recovery and reinvestment plan that he thinks and hopes will move forward.
Q I understand that. But he shifted his position when the gas was about 4 bucks a gallon.
MR. GIBBS: I think both candidates shifted their position. Amazing how politicians can do that as it relates to the whims of their constituents.
Q But what I'm getting at is will there likely be more drilling once this review --
MR. GIBBS: I think that, as I said yesterday, the President supports increased exploration, domestically, for more energy, just as the President also believes that that will only make a difference if we take a whole series of steps to both reduce the demand, as well as increase an energy supply to make ourselves truly energy independent.
Q Robert, I want to start with Afghanistan. And if you'd be kind enough, I want to ask a follow-up on the economic stimulus. Yesterday, Secretary Gates said the following: "We need to be very careful about the nature of our goals we set for ourselves in Afghanistan." He also said, "The civilian casualties are doing U.S. and NATO forces enormous harm." As the review goes forward, can you tell the American people what are the specific goals for this new policy in Afghanistan, and how will the implementation of that policy confront this issue of civilian casualties?
And also on Afghanistan, Secretary Gates said he believes NATO nations are now more prepared than they were under President Bush to offer more forces in Afghanistan. Since you've given us written readouts on the President's calls with NATO leaders on Afghanistan, is Secretary Gates right in making this assertion?
MR. GIBBS: Well, I'm certainly not going to question Secretary Gates' assertion. I think those are backed up by discussions that both the President has had as well as the Secretary has had. I think honestly the best answer to what our goals are in Afghanistan, as well as the path that we have to take to ensure that we meet those goals, is best contained in what Secretary Gates said yesterday, that it's going to take quite some time and that we have to be realistic about both that timeline and those goals.
The President said that -- and as I restated earlier -- that Afghanistan and the border between Afghanistan and Pakistan represent the central front on the war on terror; that today in those places, terrorists likely plot their next steps both against governments in that region, as well as against us. And the safety and the security of the American people are utmost on the President's agenda. Through that comprehensive review, we'll adjust whatever we need to, to meet goals and time lines as it relates to Afghanistan.
Go ahead.
Q That's it on Afghanistan? Okay. On the economic stimulus, Alice Rivlin -- Democrat, supporter of this President -- has looked at spending to create jobs both from a congressional perspective and from the Office of Management and Budget -- said yesterday that she's concerned that, structurally, the stimulus plan doesn't focus all of its attention on immediate job creation; that there's programmatic things -- some of them have been raised here in the briefing today -- that while it may be preferable and maybe should be done, shouldn't be in a stimulus plan; that the stimulus plan should focus 100 percent of its spending and legislative intensity on immediate job creation. Is the structural debate over what's going to be in this bill over as far as the White House is concerned, and it's a just a matter of the overall dollars? How do you evaluate that, I would probably say, from her point of view, helpful criticism of the way this bill is currently structured?
MR. GIBBS: Well, look, I think there are probably opinions on either side of this debate. The President believes that the rough outlines of the plan as they are now, both in tax cuts and in direct spending, present the best way forward in helping the health of our economy. Obviously, as I said yesterday and as the -- the President will meet with Republicans today, or see Republicans today -- he's listening to ideas. I think the structure of what that might ultimately -- that ultimate structure is certainly something that will be -- that will move around and be debated not just this afternoon and tonight on the floor of the House, but later on in the Senate and in committees. And the President is ready, willing, and able to listen to good ideas, as I said yesterday. The President believes ultimately we have to get a good plan quickly to the American people.
There are, I think, some disagreements, and I would disagree with some of the characterizations of -- I've seen -- again, I've seen people say that hiring cops isn't a stimulus program. As I said yesterday, if you're about to fire cops, hiring cops is a stimulus program; it creates jobs.
I think increasing Pell grants and letting kids go to college without having to borrow tens of thousands of dollars helps our economy grow. The President is committed to ensuring that 75 percent of the money in this plan is spent out in 18 months to create jobs, but also to lay the groundwork for long-term investments and long-term economic growth. We are not going to be out of the woods after only a certain period of time. There are obviously going to be time periods after that where we're going to have to continue to do -- we're going to have to continue to make investments in order to continue that economic growth and that job growth.
This isn't a one-time deal. We are going to have to work actively, not just this year, not just next year, but likely the year after that. The stimulus program isn't going to, in and of itself, solve every problem. We've got a lot of work to do, and it's going to take a long time to get that done.
Q Robert.
MR. GIBBS: Yes.
Q To follow up on Major, by your own definition, only 75 percent of this is short-term stimulus, or 65 percent, according to CBO. What was the reason for not taking that extra whatever it is, 25 or 35 percent -- which is a lot of money -- $900 billion -- since it's not short-term stimulus, however worthy an investment it might be, and actually paying for it, instead of just adding it to the deficit, since by your definition it's not short-term stimulus?
MR. GIBBS: Let's understand -- let's take the larger question for a second, because the President has said -- and they talked about this yesterday, particularly in the House, and I forget whether this came up a lot in the Senate -- but if we don't take steps right now to grow our economy, a $1.2 trillion deficit that this President inherited from his predecessor is not going to get any better. We're not going to grow the economy, we're not going to see a lessening of those deficits if unemployment hits 10 percent, or if nobody can borrow money because banks can't lend it and people don't have jobs to do it.
So the first thing we have to do -- we have to take actions necessary in the short-term to ensure economic growth that will ultimately reduce that deficit once the economy begins to grow again.
The reason that some of this money isn't completely spent out in '09 and 2010 is precisely what I just talked to Major about. I don't think we're going to wake up on January 1, 2011, you know, like Dorothy in the Wizard of Oz, and we're going to go from black and white to color. We're still going to have a lot of battles to face and economic hardship to move the economy to a better place.
So that the investment and the stimulus that happen as a result of this legislation don't drop off like a cliff, some of that money bleeds into 2011. The CBO I think talked in its report about the fact that that money would then -- would create jobs in 2011. I don't want to get hung up on sort of these rigid times and not understand that we're going to wake up the beginning of 2011 and want people to be employed, families to be borrowing money to buy the things that they want to, like cars or loans for their kids to go to school, and to have healthy small businesses that are creating jobs. All that stuff has got to happen; it's not just going to all happen overnight.
Q One other thing. I don't want to nitpick, but yesterday you were very eloquent in your defense of re-sodding the Mall, which is no longer in the plan.
MR. GIBBS: I almost made it out of here without -- (laughter.)
Q So have you changed your mind on that now that it seems like Congress has decided that that wasn't as stimulative as you very convincingly presented yesterday? (Laughter.)
MR. GIBBS: I should make you a committee chair. I think it demonstrates the perils of playing umpire in the third inning. (Laughter.)
Goyal, I said I would call on you, so I will call on you now.
Q Thank you, Mr. Gibbs. Two questions, please, quick ones. Before my question I first want to really bring my best wishes and congratulations to President Obama and the First Lady from the Indian American community and 1 billion-plus people in India.
MR. GIBBS: I will pass that along.
Q And my question is that, many people around the globe are expecting too much from the President because of the change is coming --
MR. GIBBS: You mean people in this room? (Laughter.)
Q No, people around the -- in the region of South Asia, let's say, and India. What change are we expecting as far as U.S.-India relations are concerned, and especially the terrorism in the region that President has been talking about, and including you?
MR. GIBBS: Well, without getting into a lot of specifics, Goyal, I think that the President believes that obviously the U.S. and India are natural friends and natural allies. The President looks forward over the course of this term to deepen the partnership that's been built between the two countries over these past many years, to strengthen those ties. He will have more to say about that in the future.
And I think the President -- the President would like to certainly express and extend his best wishes to the Prime Minister as he recovers from surgery, and looks forward to talking to him soon. And I can come give you guys a readout on that.
Q And second, as far as -- I met a lady at the 15th and K Street on a wheelchair, very old lady and disabled, of course, and I asked her that -- she said, you go to the White House. I said, yes. "Can I -- can you pass on my message to the President Obama." I said, what do you want from him? And she said, tell him, please, increase in the disability payments.
MR. GIBBS: Increase the disability payments?
Q Yes.
MR. GIBBS: I will pass that along to both the President and his advisors.
Q And on the trip to Canada -- what will the President's message to Canada be regarding the economic crisis given that Canada is the U.S.'s largest trading partner?
MR. GIBBS: Well, I think -- without getting into what a bilateral agenda might be for that trip, I think it is safe to say that the health of each economy and the health of the global economy will be a large part of that agenda. And I strongly anticipate, as was the case when the President met -- then President-elect met with the leader of Mexico, that trade will be a part of that docket.
Q When might he meet with McKiernan?
MR. GIBBS: I will try to see if that -- I don't know that it's been slated in the schedule yet, but I know that it has --
Q Days? Weeks?
MR. GIBBS: Let me try to see if I can get a little bit better guidance on that.
END 2:29 P.M. EST
Press Briefing by Press Secretary Robert Gibbs and Secretary of Interior Ken Salazar

James S. Brady Press Briefing Room
1:36 P.M. EST
MR. GIBBS:  Good afternoon, guys.  Before we get started, I wanted to introduce Secretary Salazar, who is going to make his second trip as our Secretary of the Interior tomorrow -- he's going to go out West.  And I've invited him here to talk a little bit about the reform agenda that he's going to take with him on that trip, and answer a few questions.  And then we'll get back to our regularly scheduled programming.
So, Secretary.    
SECRETARY SALAZAR:  Thank you, Robert. 
President Obama has immediately set high ethical standards for all of government as part of his reform agenda.  As part of that commitment and implementing the reform agenda, I intend to do my part in the Department of Interior to make sure that scandals that have occurred in the past are properly dealt with, and that the problems that we uncover are fixed so that they don't occur again.
President Obama immediately made clear that the type of ethical transgressions, the blatant conflicts of interest, waste and abuses that we have seen over the last eight years will no longer be tolerated.  Nowhere is President Obama's commitment to reform and to cleaning up the waste, fraud and abuse of the past more important than at the Department of Interior, which I now lead on his behalf.
Over the last eight years, the Department of Interior has been tarnished by ethical lapses, of criminal behavior that has extended to the very highest levels of government.  The former deputy secretary of the department under the Bush administration, Steven Griles, was sent to prison.  It is a department that the American people associate with Jack Abramoff.  And it is a department that was tarnished by a scandal involving sex, drugs and inappropriate gifts from the oil and gas companies that the employees were in charge of overseeing. 
The Lakewood, Colorado, office of the Minerals Management Service is taxed with making sure that taxpayers, the American taxpayers, collect their fair share from oil and gas development on their public lands.  Last year that office collected $23 billion.  That's $23 billion on behalf of the American people.  Yet during the last administration, some of the employees of that office violated the public trust by accepting gifts and employment contracts from the very oil and gas companies that they were supposed to be holding accountable.
Some employees engaged in blatant and criminal conflicts of interest and self-dealing.  It is one of the worst examples of corruption, abuse and of government putting special interests before the public interest.
Tomorrow I will be traveling to the Lakewood MMS office to meet with the employees.  I there will be announcing our own review of what happened, what has been done to address it, and what additional steps need to be taken.
It will be clear that we will no longer tolerate those types of lapses at any level of government, from political appointees or career employees.  This is only the first step of our long-term effort to enact comprehensive top-to-bottom reforms within the Department of Interior.  The American people should be proud of their government, all of their government.  Those who work for the government should be proud of their service to the American people.  We will work to reform the Department of the Interior, to restore the public's trust and confidence in the highest levels of ethics and accountability that the American people deserve.
And with that, I'd be happy to take a few questions from the audience.
Q    Secretary, what about -- can you clarify where the administration is right now on whether you're going to overturn the Bush policy on exploring offshore oil and gas drilling, et cetera?
SECRETARY SALAZAR:  With respect to the Outer Continental Shelf, as President Obama made very clear during the campaign, we will look at the OCS in connection with a comprehensive energy program for the nation.  One of the signature issues that President Obama will work on very hard, has worked on very hard, and will continue to work on very hard is the development of a comprehensive energy strategy.  We need to address the economic opportunity here at home, the environmental insecurity that comes from global warming, and also the national security issues.
And so, as we move forward with the development of our oil and gas resources, both onshore and offshore, it has to be a part of a set of a comprehensive energy program.
Q    So do you believe there should be more?
Q    Does that mean it's on hold?  It means there will be no drilling under this order until you've done this review; is that what that means?
SECRETARY SALAZAR:  No, not at all.  The current status of the OCS --
Q    I mean, no expansion -- obviously there is some now --  but expansion -- are you saying that expansion is on hold pending this comprehensive energy policy?
SECRETARY SALAZAR:  The status of the OCS right now is that the five-year plan of the Department of Interior that governs the OCS has been opened up, okay?  And so it is now a plan that is being formulated.  And as that plan gets formulated it is going to have to fit in with a comprehensive energy plan that President Obama wants for the nation, which is a signature issue and one in which the Department of Interior will be intimately involved in supporting the President's goals to get America to a point of energy independence for all the reasons that I articulated earlier.
Q    Mr. Secretary, during the transition, the co-chair of the transition for President Obama, John Podesta, said that the President would be overturning some of the executive orders and presidential orders President Bush had put into place about oil and gas exploration on federal lands.  We have not seen any executive orders or presidential orders overturning them, and I'm wondering if they're pending, and if you think it's wise to limit where the United States is able to explore for energy during this time of energy crisis, where we're getting all our oil from abroad.
SECRETARY SALAZAR:  The answer to that question is that there are a number of different regulations and actions that were taken by the Bush administration, some of them in the midnight hour as their term expired here, and we have all of those on the table and we're taking a look at them.  There are some which are bad and which need a new direction.  There are probably some which will be kept in place.  And so we are now in the process, having now been in the Department of Interior's position, really, for only about a week, at taking a look at all of these regulations.
On the more fundamental issue which I think you are addressing, which is the approach to oil and gas development -- it has to be done in the context of a comprehensive energy plan.  And it also has to be done with the right kind of balance.  There are places where it is appropriate to explore and to develop oil and gas resources, and there are places that are not appropriate.  And so that's part of what we'll move forward with in the agenda at the Department of Interior.
Q    Of the incidents that you cited in your opening statement, were most of those political appointees?  Were some career?  And in the week in which you've been in office, have any ongoing ethics violations been brought to your attention?
SECRETARY SALAZAR:  The report the Inspector General referred to -- there are actually three investigations that were conducted by the Inspector General -- some of them had to do with very high-level employees within the Department of Interior and engaging in self-dealing and other kinds of inappropriate relations with outside interests.  Some of the -- two of the investigations dealt with gifts and sex and drugs actually taking place in transactions in the very government buildings where MMS has its responsibilities.  So we're taking a look at that, and tomorrow we'll have some additional announcements on where we want to take all those issues.
Q    But are they political appointees, or are they career people who are still working for you?
SECRETARY SALAZAR:  They're both.  They're both.
Thank you.
MR. GIBBS:  Thank you.
SECRETARY SALAZAR:  Now you get the hot seat.
MR. GIBBS:  Exactly.  (Laughter.)
SECRETARY SALAZAR:  Can I sit up here and watch you -- (sits in Helen Thomas's seat.)  (Laughter.)   
MR. GIBBS:  He wants to sit -- there you go.  (Laughter.) 
Q    Don't block my view.  (Laughter.) 
MR. GIBBS:  Under one condition, that I don't get any hard questions from you in the middle of that -- in the middle of that chair.  I might have --
Q    -- questions to ask him.
MR. GIBBS:  I might have spoken far too soon.
Q    Ask him something we don't know about -- (laughter.) 
MR. GIBBS:  Yes.  And definitely no talking to those guys on either side of you who -- I'm going to get asked about some acreage leasing on --
Q    The first time we have a Secretary in the first row.
MR. GIBBS:  He's -- well, I want to say this was helpfully provided to my by CBS News so that I would -- (laughter) -- this is day nine of the Obama presidency -- a service of CBS News.  So I thought I would -- got a kick out of that.  I thought that was pretty good.
Let me make a few announcements before we entertain everyone but Secretary Salazar's questions.  The President has made a call to President Motlanthe of South Africa.  And we'll have a readout on that at the conclusion of this.  The President met -- had his economic daily briefing this morning in the Oval Office.  In addition to Secretary Geithner and Dr. Summers, he was joined by Paul Volcker, who, as you know, is in charge of the President's Economic Recovery Advisory Board.  And the main topic of discussion was financial reregulation, a topic that the President spoke about yesterday on Capitol Hill, and you'll hear certainly more of as we move forward. 
Lastly, as you all know, the President intends to make his first foreign trip as President to Canada.  He will make that trip on February the 19th.  Canada is a vitally important ally, and the President looks forward to the opportunity to speak with Prime Minister Harper and visit our neighbor to the north.  So please add that to your appropriate planning schedules.
And lastly, the President looks forward to the House's action this evening on a recovery and reinvestment plan that he believes tonight is likely to take an important first step in getting our economy back on track and saving -- plan to save or create 3 or 4 million jobs, as I said, begin to get our economy moving again.  The President looks forward to that vote, and we'll have some comments on that later.  I think, again, tonight starts the beginning of what we know is going to be a long process as it relates to that, but I think tonight will be a very important first step.
With that -- Jennifer.
Q    Thanks.  I want to talk about the meeting he's having at the Pentagon this afternoon.  You talked, and Secretary Gates has talked about a process that's underway.  There was the meeting last week, there's the meeting today, there's going to be one specifically on Afghanistan next week, there will be others.  But can you talk a little bit more about how long you guys expect this process to take, how it works?  I mean, you said yesterday that he has to go through all this in order to make decisions on the troop posture.  And there are several different options, different formulations being put together at the Pentagon, being presented to him of how he can do what it is he wants to do.  So can you just explain more about how this is going to work?
MR. GIBBS:  Yes.  Well, I think the most important thing -- and the President spoke about this, as many of you heard, throughout the campaign, and both during the transition and now as President of the United States -- that -- and as I said yesterday, the Secretary of Defense was very clear on this -- that he wanted to put everybody that was involved in these decisions in front of the President so the President could hear all of their advice.
The President committed, as a part of this process, to speak with commanders both on the ground in Iraq and Afghanistan, as well as region-wide commanders, to get their perspective as he laid out a new mission for Iraq.  I think everybody understands that the developments over the past few months in Iraq, with the status of forces agreement that puts an end date on our involvement there -- we're no longer involved in a debate about whether, but how and when.  That's a process the President wants to take seriously; wants to ensure the safety of our troops as we remove our combat brigades; wants to, as I've said repeatedly, provide the responsibility and the opportunity for the Iraqis to do more in governing their own country; and as I said, to do this in a way that seeks the consultation of all those leaders.
The process began on the 21st, as you guys know, in the Situation Room, continues today at the Pentagon.  I think there will be at least one more meeting that will involve General McKiernan to discuss specifically Afghanistan. 
I don't anticipate the process will take an inordinate amount of time.  I think one of the things the President expects to hear today, and one of the -- what we all heard yesterday in the testimony from Secretary Gates is how important improving our position in Afghanistan is, and secondly, how we are at a point now where many of our forces are stretched very, very thin, and the burden that we put on not just the soldiers every day, but on the many family members that stay here and pray for their loved ones and care for their children. 
So I think we've got a deliberate process that the President will be able to receive that information and make some key determinations as we change that mission in Iraq.
Q    So can you be more specific about when we might hear from him?
MR. GIBBS:  I think it will be relatively soon.  I don't want to set an exact date, though I think it will be relatively shortly.  I think the President and -- the President has received a lot of information; the Pentagon has been planning for quite some time -- partly because of the new agreements.  They understand -- everyone understands that our force structure there will change, but that we have to do so in a way that protects the troops that we have there now.
Q    Robert, can you talk about the policy toward Afghanistan?  Specifically, the New York Times article today said that there was going to be a shift in the policy, more emphasis on fighting insurgents, less emphasis on development.  Can you talk about that?
MR. GIBBS:  Yes, let me -- I guess before I get into some of the back-and-forth, let me try to clarify some of I think what we believed was erroneous reporting overnight.
As I just said, there is a review of our policy in Afghanistan.  That policy review continues in order to ensure our success in that region, but that that policy review is not yet completed.  Secondly, we support the democratically elected President of Afghanistan.  And lastly, the President has emphasized in the campaign and in the transition and emphasizes now the importance of long-term development both in Afghanistan and in the region. 
I mean, I think one of the interesting things when we were involved in the meeting on Iraq was you didn't just have, sitting around that table or on the video conference, you didn't just have members of the military or the military planning.  You had Ambassador Crocker, who was providing a very important political update on upcoming elections and the political environment in Iraq, as well as at that meeting the State Department was represented by former Ambassador Burns. 
The President has long believed that whether it's in Iraq or in Afghanistan, that there -- though it's the central front on the war on terror in Afghanistan, or whether it relates to Afghanistan or Iraq, that there's not simply a military solution to that problem; that only through long-term and sustainable development can we ever hope to turn around what's going on there.
So I would caution you -- I know the importance of getting stories out into newspapers; they may not altogether be finished by the time they get printed.
Q    But he's talked about the Europeans may be focusing more on the development, so the development wouldn't be forgotten about, but the Americans would focus on fighting insurgency.  Is that part of it realistic --
MR. GIBBS:  Well, I think that the -- and I think the President certainly has talked about this; you all heard him talk about it particularly on his trip overseas during the campaign and in his speech in Berlin, and in his discussions recently with leaders in Europe, he's talked to them not only about increased troop commitments, but also on that development piece that's so crucial.
But again, before we read too much into what was in that report, I think it's important to understand that the review -- the comprehensive review that this administration has undertaken about our policy in Afghanistan is not yet complete.  So I caution you to say that a lot of decisions have thus been made based on an incomplete report.
Q    Okay.  Also, his relationship with Karzai -- he met with Karzai last July -- the article suggests that he's no longer going to be doing the video conferences that President Bush did.
MR. GIBBS:  That's -- well, again, that's part of the policy review, and when that's completed, we'll have a better sense of what that is.  Again, we support the democratically elected President of Afghanistan, and look forward to working with him and with others to ensure peace and stability and safety in the region.
Q    Robert, building on the eloquent comments of Secretary Salazar about ethics and accountability in government, is the President bothered at all that Secretary Geithner has picked as his chief of staff a former lobbyist for Goldman Sachs who has obviously -- that company has benefitted from government bailouts.  Doesn't that punch a hole in what the President signed just last week in terms of preventing lobbyists like that from serving in his administration?
MR. GIBBS:  No, the President -- well, let's -- again, let's step back and talk about the broader issue of ethics and transparency in this administration.  As I've said from this podium, and as you all read in papers throughout the country, that the ethics and transparency executive orders that the President signed the first day institute a policy that covers this administration unlike any policy we've seen in any previous administration in the history of our country.  The President spoke about this during the campaign, but he also spoke about the notion that no policy was going to be perfect.  The President, in his election campaign, didn't take money from lobbyists or from PACs -- again, not a perfect policy, but a step in the right direction of changing the way Washington works.
We've talked about the fact that there are people that are good public servants who wish to serve their government again, who are -- through some stringent ethics requirements and recusals, they will be able to participate in helping this government.  But we have, again, the strongest ethics and transparency policy that govern the executive branch and the workings of this White House that we've seen in the history of our country.
Q    But if it's a strong -- even if it's a strong policy, does it mean anything if people are getting waivers to go around it?
MR. GIBBS:  Well, again, you know, let's caution ourselves as to the number of people that are going to work both in this building and in the executive branch and how many waivers we have.  Again, I think if the people that follow this issue most closely, whether it's political analysts or think tanks throughout this city who have seen the way this city works, have seen the revolving door and watched how administrations conduct their business, have rendered the conclusion that the policy that we have is the strongest that any administration in the history of our country has had, I think that speaks for itself.
Those very same people that labeled that policy the strongest of any administration in history also said they thought it made sense for a limited number of waivers to ensure that people could continue to serve the public.
Q    Senator Mitchell, in fact, right now is in the Mideast, and Bloomberg has reported that the firm that he chaired -- they have all kinds of lobbying clients in the Mideast, for example.  So how can he go to the Mideast when his -- the firm --
MR. GIBBS:  Let's not take a lot of things and misconstrue, right?  You know, let's not take --
Q    Which part is misconstrued?
MR. GIBBS:  Well, has Senator Mitchell lobbied?
Q    He is not registered lobbyist, but he is chair --
MR. GIBBS:  Okay.  So let's not --
Q    -- business, so isn't that another way to get around it?
MR. GIBBS:  I assume that maybe media organizations are owned by different businesses that conduct different things that might not altogether represent the interests of the media interest in general.  But let's not take a group and an example and try to squish it into something that it's not.
Q    He's been the head of a firm that has all kinds of lobbyists with business in the Mideast and all around the world --
MR. GIBBS:  But you asked me about --
Q    -- website says they have all these contacts in the Mideast.  And so, even if he's technically not lobbying, this firm is making money off of his --
MR. GIBBS:  I hate to be ticky-tack about it, but technically he's not lobbying. 
Q    He's not a registered lobbyist, but you know how --
MR. GIBBS:  But, Ed, to lobby the federal government you have to be registered.  I mean, I hate to -- I understand the semantic hurdles that you're setting forward for the policy, but let's understand, he wasn't a lobbyist, he wasn't registered to lobby, and if you're not registered to lobby you can't be a lobbyist.  That's why people have rendered the policy to be the strongest that it's been for any administration. 
Q    But, Robert, the broader point is what's the point of having the strongest policy if you're going to have waivers, especially at key posts that are some of the most high-profile and most important --
MR. GIBBS:  Let me -- we will distribute to you the quotes from the people that rendered the decision that we have the strongest lobbying and transparency proposals, but also spoke out for a limited number of waivers to ensure that highly qualified people can serve in the public interest.
But again, we have a policy that governs this White House and this administration unlike anything that has been covered from this room or has been seen in this city.  That's the bottom line, and that's irrefutable.
Jake.
Q    Robert, on the stimulus package, the President yesterday told a closed-door meeting of House Republicans that there was spending in the bill that he didn't like.  And obviously he took action, calling Congressman Waxman to remove the part having to do with birth control.  Now, there is a $335 million provision for education for sexually transmitted diseases.  There still is in the bill $50 million funding for the National Endowment for the Arts.  And that's the House.  And I understand your emphasis in the Senate, but in the Senate there are earmarked projects, as well:  $70 million for a supercomputer for NOAA, $75 million for education for smoking cessation.  President Obama can tell these Democratic senators and members of the House, take the stuff out of the bill.  He obviously did so with Congressman Waxman.  Why doesn't he do it for all these earmarks?
MR. GIBBS:  Well, let me talk a little bit about what he said yesterday at these meetings, because he said that there's no doubt this will produce a process whereby every person does not like 100 percent of every part of the bill, but that would be true whether Democrats were writing the bill, or Republicans were writing the bill.  And he said that to two rooms full of Republicans, of which I think there was pretty broad agreement.
This is a process based on a series of principles and framework that our economic team and the President sent to Capitol Hill to create a plan that we believe will move this economy along.  I know there is a tendency, and there always will be, to focus on, as I mentioned yesterday, 2/100ths of 1 percent of a piece of legislation.  I have a hard time believing that the 98/100ths of the other 99 percent aren't the large focus of members of Congress that are going to vote both today and over the course of the next few weeks.
Q    President Obama had that problem, calling Chairman Waxman and telling him to remove 2/100ths of 1 percent from the bill when he saw that it was a hurdle.
MR. GIBBS:  But again, let's focus on the larger picture.  Let's focus on the fact that we have $275 billion in tax cuts to put money directly into the pockets of hardworking Americans that will spend that money and get our economy moving again.  Let's focus on the fact that there is $550 billion in spending that will put people back to work.
But as we get focused on this number and that number and 2/100ths of 1 percent and all this kind of stuff, understand what we've seen in just the last 48 hours, Jake:  70,000 people since Monday have gotten pink slips from the companies that they work for, right?  The unemployment figures that came out just yesterday from the Bureau of Labor Statistics found every state in the country's -- every state in the country saw job loss.  Every state in the country.  The layoffs continue today, with Boeing announcing an additional 10,000 jobs that will be shed over the course of the year.
Q    That's precisely my point.  Wouldn't it be better to take that $75 million, instead of sending it to a smoking cessation program, to send it to these people that are out of work?
MR. GIBBS:  Well, I think the vast majority, the great bulk of that bill, does exactly that.  We hope that Republicans and Democrats alike look at not just whatever page you're focusing on but whatever other pages they've decided not to focus on, and understand that the program that is being crafted -- and it will change -- there's a great tendency, and we've done this over the last few days in this room, to try to figure out what the score of the baseball game is after the third inning, okay?  My team would probably be great if we stopped doing that.  This is a long process that we hope is concluded by President's Day recess, because -- and the President heard this from CEOs today -- we can't afford to wait.  We have to act. 
Tonight the House, we believe, will take an important step.  We think if members focus on this bill they'll see that it moves the economy forward; that money will be spent in this economy, 75 percent of it in the first 18 months; that jobs will be created, jobs will be saved, money will get put back into people's pockets.  This, along with a financial stability package, reregulation, and a plan to deal with home foreclosures, will push this economy forward and put people back to work.  And hopefully one day we can come up here and I won't have to answer a question based on the fact that another company has decided to lay off 2,000 or 10,000 or 20,000 people.
Q    The President was incredibly well received yesterday by Republicans.  They called him everything from sincere, to nice, to brilliant.  One said he talks more like a Republican than a Democrat.  I mean, they obviously like him and they think he's very serious about this.  Yet it appears he has had no effect on the vote -- perhaps a handful or a couple of votes.  Is it frustrating or disappointing to him to go up there, to be so well received and have no effect on the vote?
MR. GIBBS:  No, again, this is a many-vote, many-day process.  There will be a vote tonight, there will be a vote next week, there will be votes the weeks after that, until we eventually have what we think will be a bipartisan proposal to get this economy moving again.  Again, I hesitate to call the game after the third inning.  I hate to declare the winner.  I hate to declare that -- I know we'll have analysis to write, but let's not stop after the third inning and tell us who won in the ninth.  It's a long process --
Q    But don't --
MR. GIBBS:  Hold on -- look, I don't -- the President, as I said from this podium yesterday, believes that the three or so hours he spent on Capitol Hill were well spent yesterday.  We're having bipartisan leaders come down to the White House tonight.  Congress Wamp of Tennessee said that what he saw from the President yesterday was not a PR stunt, that it was sincere, as the quotes that you read suggest.  The President is very serious about this.  Whether it all happens overnight in terms of votes, we'll wait and see.  But my sense is that over the long run, listening to both parties, changing the way this town works and listens to each other is important not just as we focus on this piece of legislation, but as we focus on the many ideas and the many pieces of legislation that are going to have to be undertaken in order to move the economy forward.
Q    Can I, Robert, follow up -- and I'd like to give it to Secretary Salazar, if I could -- no.  I want to ask about --
MR. GIBBS:  He's going to ask me a softball --
Q    -- the cocktail party tonight.  What was the genesis of that idea?  And it's evenly divided, six and six, I believe, from the House, and five and five, party-wise from the Senate --
MR. GIBBS:  That's so the basketball games are easier.  (Laughter.)
Q    Is that going to be the way it is around here?  Is he going to have just as many Republicans visiting him here as Democrats?  And is he going to see the Republicans just as often on the Hill as the Democrats?  Is it going to be that bipartisan?
MR. GIBBS:  Well, I think the second part -- as I said yesterday, I don't -- the offer was made; he accepted that offer to come to Capitol Hill yesterday.  Congressman Pence invited him back and said the door was always open.  And I said I thought the President would likely take him up on that opportunity.  He's serious about that. 
I don't know the particular ratios of tonight.  I think it's -- we have an equal number of leaders on both sides of the aisle and in both the House and the Senate that the President looks forward to getting to know better, to being able to establish a strong working relationship with, to move the priorities of the American people forward.
At the end of the day, the President understands that both he and Congress will be judged by what we can all do for the American people.  And I think that is a step in this process toward being able to work together and provide some hope and hopefully some better times for the American people.
Q    Robert, the head of the CBO went up to the Senate Budget Committee today and said that the TARP, the financial bailout, hundreds of billions of dollars short.  Do you guys concur with that assessment from the CBO?
MR. GIBBS:  I have -- I did not see that report before I came out here.  I know that, as I've said, the economic team continues to work on a series of proposals for the President to look at.  Again, during the economic daily briefing the President had today, he had Mr. Volcker in to talk about financial reregulation.  What we talked about yesterday on Capitol Hill was not one thing or one aspect that will solve our economic crisis, but instead, how an economic recovery and reinvestment plan, a financial stability package, and a reregulation package all together can help move the economy forward.
The one thing I did see -- now that you've mentioned our good friends at the CBO -- the CBO says that without stimulus, "the shortfall in the nation's output relative to its potential would be the largest -- in terms of both length and depth -- since the Great Depression."  I think those are clear words from the Congressional Budget Office in understanding if anyone needed any more numbers to understand how very important it is that the House take these important steps tonight and that the Senate soon follow, and ultimately we get to the President's desk a recovery and reinvestment plan.
Q    It's my understand that the conversation with Senate Republicans with the President had to do a lot with the bigger picture --
MR. GIBBS:  It did.
Q    -- of the economic environment.  Did he get suggestions of how -- because if this CBO report is true, and it sounds like you believe -- you like to quote from the CBO, so you must believe that they -- 
MR. GIBBS:  There are occasions in which I have read the CBO.
Q    -- this is accurate reporting -- did they give you suggestions of how you can sell the American people on this idea that you're going to have to get billions of more dollars in taxpayer money?
MR. GIBBS:  I think the main message -- and I struggle every day just to be the spokesperson for one individual in this town, so I very much hesitate to speak for an entire group --
Q    But you were in the room.
MR. GIBBS:  I was in the room, so let me give you my impression, which was, the main message that I heard -- and I heard it again on cable this morning from members -- Republican members of the Senate -- was that -- and this is a concept the President agrees quite strongly with -- and that is that one aspect of this alone isn't going to solve our problems and isn't going to fully or adequately address the economic crisis; that only by addressing each of the legs of this stool will we create something that can stand on its own. 
I don't think they got -- I don't recall, at least, getting into specific numbers.  You know, they -- I think both the President and Senate Republicans understand the urgency of the next set of funds being used differently, more transparently, with a far greater eye to actual lending of money.  We've all been reminded in the last couple days how entities can get money from the American taxpayers and seek to use it poorly.  And thankfully, that, I think because of the outrage of Capitol Hill and some phone calls, got stopped.  But the focus was more on the notion that many things had to happen in order for our economy to get moving again.  I think Senate Republicans and I think the President are heartened that there is agreement that tackling one won't solve it; we are going to have to work together and on parallel tracks to address many of these problems over the course of --
Q    Is it fair to characterize it that he wasn't just lobbying for a stimulus, he was lobbying for all three legs of the stool --
MR. GIBBS:  I think he was agreeing with the discussion that each of these aspects is extremely important if we are to see the economy recover and Americans get put back to work. 
Q    Robert, all of these pages that you see as being selectively picked apart when questions are raised about they add up to a lot of money in tight times -- to what extent do you see any further paring of those kinds of programs before this thing comes out of conference and goes to a final vote?
MR. GIBBS:  I think this largely proves my somewhat maybe possibly weak baseball analogy that, again, this is a -- if the vote is happening in the third inning, we've still got six more innings to go.  So you can look at each one of these things each and every day; I think it's more important to see where we end up.
Q    They keep score each inning.
MR. GIBBS:  They do.  They do.  But they don't declare winners -- you get up and stretch at one point during the game and there's a man that says you can't buy beer after a certain time.  But the umpire doesn't declare the game over except for one point in the game.  (Laughter.)  So I guess I would stress that even if you get up to stretch and buy beer, they only call one winner.  So let's hope that that one winner is the American people because both teams have worked together. 
Q    Oooh!
Q    Wow!
MR. GIBBS:  I'll take two.  I'll -- (laughter.)  Yes, sir.
Q    To follow up on that, the President today and previously has talked about skepticism.  Aren't these the very kinds of programs that engender skepticism?  Smoking cessation programs and these kinds of things?
MR. GIBBS:  Well, again, here's my point, is let's write a story on the money that's going to go to rebuild schools that the President visited, like the ones in South Carolina that haven't been refurbished or redone since I think it was 1899.  Right?  I think there's a lot more money that goes to something like that, that will put people back to work in South Carolina, which has seen its unemployment rate grow to 9.5 percent, according to the Bureau of Labor Statistics just yesterday.  Or let's focus on building roads and bridges in a place like Michigan, that's watched its unemployment rate increased to 10.6 percent as of yesterday, according to the Bureau of Labor Statistics.  Or any other investments in jobs, or health care, or energy in a place like California that watched 80,000 jobs be shed just last month, according to the Bureau of Labor Statistics. 
I think we can get focused on a lot of different things.  I think it is important to understand and to look at the long view of this, to understand that there are committee processes, there's votes, there's the Rules Committee, there's the floor, there's amendments, there's final passage -- there's all these fancy legislative terms.  But let's look at the final product that we get, and understand that the President hopes, sincerely hopes, that each person looks at the totality of the package and what it will do to get the economy moving again.
Q    Robert, a logistical question -- can we expect to hear from him after the House vote?
MR. GIBBS:  We will have something for you after that vote.  I'm not entirely sure what form it will take.
Q    Robert, I'd like to go back to the oil drilling, OCS.  Is it the goal, or once this review is completed, will there be more oil drilling?  Or will there be little change?
MR. GIBBS:  Let me get some legislative advice on this as it relates to where we are in the policy.  I know that Congress did not renew the ban on offshore oil drilling.  The President, as the Secretary said, supports some new drilling as it relates to a larger and more comprehensive energy independence plan.  I think you heard the President say throughout the campaign, much like the financial crisis that we face, that it's not one thing that's likely to -- that we're likely to do on any given day and wake up and be far less dependent on foreign oil.  It's not going to just be drilling offshore, just like it's not just going to be wind or solar energy, or just going to be biofuels.  It's going to be all of those things taken together.  I think that's what the President hopes to do.  I think a down payment on that larger investment to getting ourselves to energy independence is contained within the recovery and reinvestment plan that he thinks and hopes will move forward.
Q    I understand that.  But he shifted his position when the gas was about 4 bucks a gallon. 
MR. GIBBS:  I think both candidates shifted their position.  Amazing how politicians can do that as it relates to the whims of their constituents.
Q    But what I'm getting at is will there likely be more drilling once this review --
MR. GIBBS:  I think that, as I said yesterday, the President supports increased exploration, domestically, for more energy, just as the President also believes that that will only make a difference if we take a whole series of steps to both reduce the demand, as well as increase an energy supply to make ourselves truly energy independent.
Q    Robert, I want to start with Afghanistan.  And if you'd be kind enough, I want to ask a follow-up on the economic stimulus.  Yesterday, Secretary Gates said the following:  "We need to be very careful about the nature of our goals we set for ourselves in Afghanistan."  He also said, "The civilian casualties are doing U.S. and NATO forces enormous harm."  As the review goes forward, can you tell the American people what are the specific goals for this new policy in Afghanistan, and how will the implementation of that policy confront this issue of civilian casualties?
And also on Afghanistan, Secretary Gates said he believes NATO nations are now more prepared than they were under President Bush to offer more forces in Afghanistan.  Since you've given us written readouts on the President's calls with NATO leaders on Afghanistan, is Secretary Gates right in making this assertion?
MR. GIBBS:  Well, I'm certainly not going to question Secretary Gates' assertion.  I think those are backed up by discussions that both the President has had as well as the Secretary has had.  I think honestly the best answer to what our goals are in Afghanistan, as well as the path that we have to take to ensure that we meet those goals, is best contained in what Secretary Gates said yesterday, that it's going to take quite some time and that we have to be realistic about both that timeline and those goals. 
The President said that -- and as I restated earlier -- that Afghanistan and the border between Afghanistan and Pakistan represent the central front on the war on terror; that today in those places, terrorists likely plot their next steps both against governments in that region, as well as against us.  And the safety and the security of the American people are utmost on the President's agenda.  Through that comprehensive review, we'll adjust whatever we need to, to meet goals and time lines as it relates to Afghanistan.
Go ahead.
Q    That's it on Afghanistan?  Okay.  On the economic stimulus, Alice Rivlin -- Democrat, supporter of this President -- has looked at spending to create jobs both from a congressional perspective and from the Office of Management and Budget -- said yesterday that she's concerned that, structurally, the stimulus plan doesn't focus all of its attention on immediate job creation; that there's programmatic things -- some of them have been raised here in the briefing today -- that while it may be preferable and maybe should be done, shouldn't be in a stimulus plan; that the stimulus plan should focus 100 percent of its spending and legislative intensity on immediate job creation.  Is the structural debate over what's going to be in this bill over as far as the White House is concerned, and it's a just a matter of the overall dollars?  How do you evaluate that, I would probably say, from her point of view, helpful criticism of the way this bill is currently structured?
MR. GIBBS:  Well, look, I think there are probably opinions on either side of this debate.  The President believes that the rough outlines of the plan as they are now, both in tax cuts and in direct spending, present the best way forward in helping the health of our economy.  Obviously, as I said yesterday and as the -- the President will meet with Republicans today, or see Republicans today -- he's listening to ideas.  I think the structure of what that might ultimately -- that ultimate structure is certainly something that will be -- that will move around and be debated not just this afternoon and tonight on the floor of the House, but later on in the Senate and in committees.  And the President is ready, willing, and able to listen to good ideas, as I said yesterday.  The President believes ultimately we have to get a good plan quickly to the American people. 
There are, I think, some disagreements, and I would disagree with some of the characterizations of -- I've seen -- again, I've seen people say that hiring cops isn't a stimulus program.  As I said yesterday, if you're about to fire cops, hiring cops is a stimulus program; it creates jobs.
I think increasing Pell grants and letting kids go to college without having to borrow tens of thousands of dollars helps our economy grow.  The President is committed to ensuring that 75 percent of the money in this plan is spent out in 18 months to create jobs, but also to lay the groundwork for long-term investments and long-term economic growth.  We are not going to be out of the woods after only a certain period of time.  There are obviously going to be time periods after that where we're going to have to continue to do -- we're going to have to continue to make investments in order to continue that economic growth and that job growth.
This isn't a one-time deal.  We are going to have to work actively, not just this year, not just next year, but likely the year after that.  The stimulus program isn't going to, in and of itself, solve every problem.  We've got a lot of work to do, and it's going to take a long time to get that done.
Q    Robert.
MR. GIBBS:  Yes.
Q    To follow up on Major, by your own definition, only 75 percent of this is short-term stimulus, or 65 percent, according to CBO.  What was the reason for not taking that extra whatever it is, 25 or 35 percent -- which is a lot of money -- $900 billion -- since it's not short-term stimulus, however worthy an investment it might be, and actually paying for it, instead of just adding it to the deficit, since by your definition it's not short-term stimulus?
MR. GIBBS:  Let's understand -- let's take the larger question for a second, because the President has said -- and they talked about this yesterday, particularly in the House, and I forget whether this came up a lot in the Senate -- but if we don't take steps right now to grow our economy, a $1.2 trillion deficit that this President inherited from his predecessor is not going to get any better.  We're not going to grow the economy, we're not going to see a lessening of those deficits if unemployment hits 10 percent, or if nobody can borrow money because banks can't lend it and people don't have jobs to do it.
So the first thing we have to do -- we have to take actions necessary in the short-term to ensure economic growth that will ultimately reduce that deficit once the economy begins to grow again. 
The reason that some of this money isn't completely spent out in '09 and 2010 is precisely what I just talked to Major about.  I don't think we're going to wake up on January 1, 2011, you know, like Dorothy in the Wizard of Oz, and we're going to go from black and white to color.  We're still going to have a lot of battles to face and economic hardship to move the economy to a better place. 
So that the investment and the stimulus that happen as a result of this legislation don't drop off like a cliff, some of that money bleeds into 2011.  The CBO I think talked in its report about the fact that that money would then -- would create jobs in 2011.  I don't want to get hung up on sort of these rigid times and not understand that we're going to wake up the beginning of 2011 and want people to be employed, families to be borrowing money to buy the things that they want to, like cars or loans for their kids to go to school, and to have healthy small businesses that are creating jobs.  All that stuff has got to happen; it's not just going to all happen overnight.
Q    One other thing.  I don't want to nitpick, but yesterday you were very eloquent in your defense of re-sodding the Mall, which is no longer in the plan.
MR. GIBBS:  I almost made it out of here without -- (laughter.)
Q    So have you changed your mind on that now that it seems like Congress has decided that that wasn't as stimulative as you very convincingly presented yesterday?  (Laughter.)
MR. GIBBS:  I should make you a committee chair.  I think it demonstrates the perils of playing umpire in the third inning.  (Laughter.)
Goyal, I said I would call on you, so I will call on you now.
Q    Thank you, Mr. Gibbs.  Two questions, please, quick ones.  Before my question I first want to really bring my best wishes and congratulations to President Obama and the First Lady from the Indian American community and 1 billion-plus people in India.
MR. GIBBS:  I will pass that along.
Q    And my question is that, many people around the globe are expecting too much from the President because of the change is coming --
MR. GIBBS:  You mean people in this room?  (Laughter.)
Q    No, people around the -- in the region of South Asia, let's say, and India.  What change are we expecting as far as U.S.-India relations are concerned, and especially the terrorism in the region that President has been talking about, and including you?
MR. GIBBS:  Well, without getting into a lot of specifics, Goyal, I think that the President believes that obviously the U.S. and India are natural friends and natural allies.  The President looks forward over the course of this term to deepen the partnership that's been built between the two countries over these past many years, to strengthen those ties.  He will have more to say about that in the future. 
And I think the President -- the President would like to certainly express and extend his best wishes to the Prime Minister as he recovers from surgery, and looks forward to talking to him soon.  And I can come give you guys a readout on that.
Q    And second, as far as -- I met a lady at the 15th and K Street on a wheelchair, very old lady and disabled, of course, and I asked her that -- she said, you go to the White House.  I said, yes.  "Can I -- can you pass on my message to the President Obama."  I said, what do you want from him?  And she said, tell him, please, increase in the disability payments.
MR. GIBBS:  Increase the disability payments?
Q    Yes.
MR. GIBBS:  I will pass that along to both the President and his advisors.
Q    And on the trip to Canada -- what will the President's message to Canada be regarding the economic crisis given that Canada is the U.S.'s largest trading partner?
MR. GIBBS:  Well, I think -- without getting into what a bilateral agenda might be for that trip, I think it is safe to say that the health of each economy and the health of the global economy will be a large part of that agenda.  And I strongly anticipate, as was the case when the President met -- then President-elect met with the leader of Mexico, that trade will be a part of that docket.
Q    When might he meet with McKiernan?
MR. GIBBS:  I will try to see if that -- I don't know that it's been slated in the schedule yet, but I know that it has --
Q    Days?  Weeks?
MR. GIBBS:  Let me try to see if I can get a little bit better guidance on that.
                                     END             2:29 P.M. EST

Secretary Geithner tightens the reins

In one of his first acts as Secretary of the Treasury, Timothy Geithner today announced new rules that will make it harder for banks to lobby for a share of money set aside by the Emergency Economic Stabilization Act.
The new rules restrict the contact that bank lobbyists can have with Treasury officials, as well as what members of Congress can do to secure money on behalf of banks in their home districts.
"American taxpayers deserve to know that their money is spent in the most effective way to stabilize the financial system," Secretary Geithner said. "Today's actions reaffirm our commitment toward that goal."
Introducing him last night before he was sworn in, President Barack Obama spoke to the challenges Secretary Geithner faces, with a nod to the news that seven major American corporations -- including Caterpillar, Sprint/Nextel, and Home Depot -- announced they were cutting tens of thousands of jobs.
"It will take a Secretary of the Treasury who understands those challenges in all their complexities to help lead us forward," President Obama said. "You've got your work cut out for you, as I think everybody knows. But you also have my full confidence, my deepest trust, and my unyeilding belief that you can achieve what is required of us at this moment."
Vice President Biden administered the oath of office to Geithner, who had been confirmed that afternoon.
"We are at a moment of maximum challenge for our economy and our country," Secretary Geithner said in his remarks. "And our agenda, Mr. President, is to move quickly to help you do what the country asked you to do: to launch the programs that will bring economic recovery sooner; to make our economy more productive and more just in the opportunities it provides our citizens; to restore trust in our financial system with fundamental reform; to make our tax system better at rewarding work and investment; to restore confidence in America's economic leadership around the world. I pledge all of my ability to help you meet that challenge, and to restore to all Americans the promise of a better future."
As Secretary Geithner thanked his family for their support, he remarked that he was inspired to enter public service by childhood travels with his family.
"My parents gave me, among many wonderful things, they gave me the important gift of showing me the world as a child," he said. "They took us to live in Zambia and Rhodesia, and then to India and to Thailand. And from those places, I saw America through the eyes of others. And it was that experience seeing the extraordinary influence of America on the world that led me to work in government."
Read last night’s remarks from the President and Secretary Geithner below.

 
REMARKS BY THE PRESIDENT
AT SWEARING IN OF TREASURY SECRETARY TIMOTHY GEITHNER
U.S. Department of Treasury
Washington, D.C.
January 26, 2009
THE PRESIDENT: Thank you, please have a seat. A short time ago, the United States Senate voted to confirm Timothy Geithner as our next Secretary of the Treasury. That deserves some applause. (Applause.) I want to thank Democratic and Republican senators for their show of confidence in Tim, and I want to thank Tim -- and Carole -- for their willingness to serve their country at a time when that service is desperately needed.
I came here tonight because, at this moment of challenge and crisis, Tim's work and the work of the entire Treasury Department must begin at once. We cannot lose a day, because every day the economic picture is darkening -- here and across the globe. Just today we learned that seven major corporations will be laying off thousands more workers. This comes on top of the 2.5 million jobs we lost last year. And it will take a Secretary of the Treasury who understands this challenge and all its complexities to help lead us forward.
When Alexander Hamilton was sworn in as our first Treasury Secretary, his task was to weave together the disparate debts and economies of various states into one American system of credit and capital markets. More than two centuries later, that system is now in serious jeopardy. It has been badly weakened by an era of irresponsibility; a series of imprudent and dangerous decisions on Wall Street; and an unrelenting quest for profit with too little regard for risk, too little regulatory scrutiny, and too little accountability. The result has been a devastating loss of trust and confidence in our economy, our financial markets, and our government. That era must end right now, and I believe it can.
The very fact that this crisis is largely of our own making means that it is not beyond our ability to solve. Our problems are rooted in past mistakes, not our capacity for future greatness. It will take time, perhaps many years, but we can rebuild that lost trust and confidence. We can restore opportunity and prosperity. And I'm confident that Tim, along with Larry Summers and Peter Orszag and the rest of our economic team, can help us get there.
In the coming weeks and months, we will work together to stabilize our financial system and restart the flow of credit that families and businesses depend on to get a loan, make a payroll, or buy a home. But we'll do it in a way that protects the American taxpayer and includes the highest level of transparency and oversight so that the American people can hold us accountable for results.
Together, with both parties in Congress, we will launch a recovery and reinvestment plan that saves or creates more than 3 million jobs while investing in priorities like health care, education, and energy that will make us strong in the future. And I will be working with the entire economic team and Tim to reform and modernize our outdated financial regulations so that a crisis like this cannot happen again. We'll put in place new common-sense rules of the road and we will be vigilant in ensuring they are not bent or broken any longer.
So, congratulations, Tim. You've got your work cut out for you, as I think everybody knows, but you also have my full confidence, my deepest trust, my unyielding belief that we can rise to achieve what is required of us at this moment. Our work will not be easy and it will not be quick, but we will embrace it so that we can carry on the legacy of boundless opportunity and unmatched prosperity that has defined this nation since our earlier days.
And before I step aside from the podium, to all the wonderful staff at Treasury, who have been laboring long and hard over the last several months and years -- but particularly the last several months -- I want to thank you for your dedication and your service. You've been doing yeoman's work at a time when the country needs it, and I hope with Tim at the helm, that that work will result in jobs and businesses reopening and the kind of economic opportunity that the American people deserve.
So, with that, let's get Tim sworn in.

 
REMARKS BY TREASURY SECRETARY TIMOTHY GEITHNER
U.S. Department of Treasury
Washington, D.C.
January 26, 2009
SECRETARY GEITHNER: Thank you, Mr. President. Thank you, Mr. Vice President. And thanks to my many friends and colleagues for being here tonight. My wife Carole stood beside me as I took this oath of office as she has twice before in this building. I want to thank her for her extraordinary grace and support. She has this remarkable capacity for calm wisdom and empathy.
Our children, Elise and Benjamin, are back at school in New York studying for their midterm exams -- I hope they're studying. (Laughter.) I miss them very much and I'm very proud of them.
My terrific family is represented here tonight by my father, Peter Geithner, and my brother, David. My parents gave me, among many wonderful things, they gave me the important gift of showing me the world as a child. They took us to live in Zambia and Rhodesia, and then to India and to Thailand. And from those places, I saw America through the eyes of others. And it was that experience seeing the extraordinary influence of America on the world that led me to work in government.
I first walked into this building about 20 years ago. And I had at Treasury the wonderful experience of working with smart and dedicated people serving their country with the shared goal of making government more effective, in an environment where our obligation was to debate the merits, to do what was right, not what was easy or expedient, drawing on the best ideas and expertise in the nation.
Treasury's tradition is to defend the integrity of policy, to respect the constraints imposed by limited resources, and to limit government intervention to where it is essential to protect our financial system and to improve the lives of the American people. That tradition is critically important today because it is the source of the credibility that makes it possible for governments to do what is necessary to resolve a crisis.
In the world we confront today, Treasury has to be, and Treasury will be, a source of bold initiative. We are at a moment of maximum challenge for our economy and for our country. And our agenda, Mr. President, is to move quickly to help you do what the country asked you to do: to launch the programs that will bring economic recovery sooner; to make our economy more productive and more just in the opportunities it provides our citizens; to restore trust in our financial system with fundamental reform; to make our tax system better at rewarding work and investment; to restore confidence in America's economic leadership around the world. I pledge all of my ability to help you meet that challenge, and to restore to all Americans the promise of a better future.
I want to thank Larry Summers, who has taught me so much about economic policy, a little bit about math, even some things about people. I am fortunate he is willing to work alongside me as we confront the nation's challenges.
Mr. President, I am deeply grateful for your trust and confidence. We will work our hearts out for you. Thank you for giving me this great privilege of working for you. I am eager to get to work.
Thank you. (Applause.)

Timothy Geithner sworn in as Secretary of the Treasury

Timothy Geithner is now officially the 75th Secretary of the United States Treasury.
The Senate confirmed him late this afternoon by a vote of 60-34, and just a few moments ago, following an introduction by President Obama, Vice President Biden administered the oath of office.
Tomorrow, we'll take a closer look at the challenges Secretary Geithner faces in his new role leading the Treasury Department.
THE WHITE HOUSE
Office of the Press Secretary
_________________________________________________________________
For Immediate Release                            January 23, 2009
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
THE DIRECTOR
January 22, 2009
The Honorable Kent Conrad
Chairman
Committee on the Budget
United States Senate
Washington, D.C. 20510
Dear Mr. Chairman:
Thank you for all the time you have taken in reviewing the economic recovery proposal that President Obama is working on with Congress. The President shares your commitment to a package that jumpstarts the economy in the most effective way possible.
The Congressional Budget Office recently released an analysis ofa component ofthe economic recovery proposal; that analysis, however, did not assess the overall package. Our analysis indicates that at least 75 percent ofthe overall package (including its tax component and the other spending provisions that were not analyzed by the Congressional Budget Office) will be spent over the next year and a half (the rest of fiscal year 2009 and fiscal year 2010).
We are committed to maintaining at least a 75 percent spend-out rate for the package as a whole as the legislation moves through the Senate and House and into conference. In addition to jumpstarting the economy in a timely manner, we remain committed to providing unprecedented levels of transparency to the American people and the highest standards of accountability to the taxpayer about how the funds are spent.
These are difficult economic times, and I look forward to working with you, your colleagues, and your Committee's dedicated staff to craft a recovery package that meets these goals.
 
Sincerely,
Peter R. Orszag
Director
Identical Letter Sent to:
The Honorable Daniel Inouye
The Honorable Thad Cochran
The Honorable Max Baucus
The Honorable Chuck Grassley
The Honorable Judd Gregg
The Honorable Harry Reid
The Honorable Richard J. Durbin
The Honorable Mitch McConnell
The Honorable Jon Kyl
The Honorable Robert Byrd
The Honorable Charles Rangel
The Honorable Dave Camp
The Honorable David Obey
The Honorable Jerry Lewis
The Honorable Henry Waxman
The Honorable Joe Barton
The Honorable John Spratt
The Honorable Paul Ryan
The Honorable Nancy Pelosi
The Honorable Steny Hoyer
The Honorable James Clyburn
The Honorable John Boehner
The Honorable Eric Cantor

President Barack Obama's Inaugural Address

Yesterday, President Obama delivered his Inaugural Address, calling for a "new era of responsibility."  Watch the video here:
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Inaugural Address
 
By President Barack Hussein Obama
My fellow citizens:  I stand here today humbled by the task before us, grateful for the trust you've bestowed, mindful of the sacrifices borne by our ancestors. 
I thank President Bush for his service to our nation -- (applause) -- as well as the generosity and cooperation he has shown throughout this transition.
Forty-four Americans have now taken the presidential oath.  The words have been spoken during rising tides of prosperity and the still waters of peace.  Yet, every so often, the oath is taken amidst gathering clouds and raging storms.  At these moments, America has carried on not simply because of the skill or vision of those in high office, but because we, the people, have remained faithful to the ideals of our forebears and true to our founding documents. 
So it has been; so it must be with this generation of Americans.
That we are in the midst of crisis is now well understood.  Our nation is at war against a far-reaching network of violence and hatred.  Our economy is badly weakened, a consequence of greed and irresponsibility on the part of some, but also our collective failure to make hard choices and prepare the nation for a new age.  Homes have been lost, jobs shed, businesses shuttered.  Our health care is too costly, our schools fail too many -- and each day brings further evidence that the ways we use energy strengthen our adversaries and threaten our planet.
These are the indicators of crisis, subject to data and statistics.  Less measurable, but no less profound, is a sapping of confidence across our land; a nagging fear that America's decline is inevitable, that the next generation must lower its sights.
Today I say to you that the challenges we face are real.  They are serious and they are many.  They will not be met easily or in a short span of time.  But know this America:  They will be met.  (Applause.)
On this day, we gather because we have chosen hope over fear, unity of purpose over conflict and discord.  On this day, we come to proclaim an end to the petty grievances and false promises, the recriminations and worn-out dogmas that for far too long have strangled our politics.  We remain a young nation.  But in the words of Scripture, the time has come to set aside childish things.  The time has come to reaffirm our enduring spirit; to choose our better history; to carry forward that precious gift, that noble idea passed on from generation to generation:  the God-given promise that all are equal, all are free, and all deserve a chance to pursue their full measure of happiness.  (Applause.)
In reaffirming the greatness of our nation we understand that greatness is never a given.  It must be earned.  Our journey has never been one of short-cuts or settling for less.  It has not been the path for the faint-hearted, for those that prefer leisure over work, or seek only the pleasures of riches and fame.  Rather, it has been the risk-takers, the doers, the makers of things -- some celebrated, but more often men and women obscure in their labor -- who have carried us up the long rugged path towards prosperity and freedom. 
For us, they packed up their few worldly possessions and traveled across oceans in search of a new life.  For us, they toiled in sweatshops, and settled the West, endured the lash of the whip, and plowed the hard earth.  For us, they fought and died in places like Concord and Gettysburg, Normandy and Khe Sahn. 
Time and again these men and women struggled and sacrificed and worked till their hands were raw so that we might live a better life.  They saw America as bigger than the sum of our individual ambitions, greater than all the differences of birth or wealth or faction.
This is the journey we continue today.  We remain the most prosperous, powerful nation on Earth.  Our workers are no less productive than when this crisis began.  Our minds are no less inventive, our goods and services no less needed than they were last week, or last month, or last year.  Our capacity remains undiminished.  But our time of standing pat, of protecting narrow interests and putting off unpleasant decisions -- that time has surely passed.  Starting today, we must pick ourselves up, dust ourselves off, and begin again the work of remaking America.  (Applause.)
For everywhere we look, there is work to be done.  The state of our economy calls for action, bold and swift.  And we will act, not only to create new jobs, but to lay a new foundation for growth.  We will build the roads and bridges, the electric grids and digital lines that feed our commerce and bind us together.  We'll restore science to its rightful place, and wield technology's wonders to raise health care's quality and lower its cost.  We will harness the sun and the winds and the soil to fuel our cars and run our factories.  And we will transform our schools and colleges and universities to meet the demands of a new age.  All this we can do.  All this we will do.
Now, there are some who question the scale of our ambitions, who suggest that our system cannot tolerate too many big plans.  Their memories are short, for they have forgotten what this country has already done, what free men and women can achieve when imagination is joined to common purpose, and necessity to courage.  What the cynics fail to understand is that the ground has shifted beneath them, that the stale political arguments that have consumed us for so long no longer apply. 
The question we ask today is not whether our government is too big or too small, but whether it works -- whether it helps families find jobs at a decent wage, care they can afford, a retirement that is dignified.  Where the answer is yes, we intend to move forward.  Where the answer is no, programs will end.  And those of us who manage the public's dollars will be held to account, to spend wisely, reform bad habits, and do our business in the light of day, because only then can we restore the vital trust between a people and their government.
Nor is the question before us whether the market is a force for good or ill.  Its power to generate wealth and expand freedom is unmatched.  But this crisis has reminded us that without a watchful eye, the market can spin out of control.  The nation cannot prosper long when it favors only the prosperous.  The success of our economy has always depended not just on the size of our gross domestic product, but on the reach of our prosperity, on the ability to extend opportunity to every willing heart -- not out of charity, but because it is the surest route to our common good.  (Applause.)
As for our common defense, we reject as false the choice between our safety and our ideals.  Our Founding Fathers -- (applause) -- our Founding Fathers, faced with perils that we can scarcely imagine, drafted a charter to assure the rule of law and the rights of man -- a charter expanded by the blood of generations.  Those ideals still light the world, and we will not give them up for expedience sake.  (Applause.)
And so, to all the other peoples and governments who are watching today, from the grandest capitals to the small village where my father was born, know that America is a friend of each nation, and every man, woman and child who seeks a future of peace and dignity.  And we are ready to lead once more.  (Applause.)
Recall that earlier generations faced down fascism and communism not just with missiles and tanks, but with the sturdy alliances and enduring convictions.  They understood that our power alone cannot protect us, nor does it entitle us to do as we please.  Instead they knew that our power grows through its prudent use; our security emanates from the justness of our cause, the force of our example, the tempering qualities of humility and restraint.
We are the keepers of this legacy.  Guided by these principles once more we can meet those new threats that demand even greater effort, even greater cooperation and understanding between nations.  We will begin to responsibly leave Iraq to its people and forge a hard-earned peace in Afghanistan.  With old friends and former foes, we'll work tirelessly to lessen the nuclear threat, and roll back the specter of a warming planet.
We will not apologize for our way of life, nor will we waver in its defense.  And for those who seek to advance their aims by inducing terror and slaughtering innocents, we say to you now that our spirit is stronger and cannot be broken -- you cannot outlast us, and we will defeat you.  (Applause.)
For we know that our patchwork heritage is a strength, not a weakness.  We are a nation of Christians and Muslims, Jews and Hindus, and non-believers.  We are shaped by every language and culture, drawn from every end of this Earth; and because we have tasted the bitter swill of civil war and segregation, and emerged from that dark chapter stronger and more united, we cannot help but believe that the old hatreds shall someday pass; that the lines of tribe shall soon dissolve; that as the world grows smaller, our common humanity shall reveal itself; and that America must play its role in ushering in a new era of peace.
To the Muslim world, we seek a new way forward, based on mutual interest and mutual respect.  To those leaders around the globe who seek to sow conflict, or blame their society's ills on the West, know that your people will judge you on what you can build, not what you destroy.  (Applause.)  
To those who cling to power through corruption and deceit and the silencing of dissent, know that you are on the wrong side of history, but that we will extend a hand if you are willing to unclench your fist.  (Applause.)
To the people of poor nations, we pledge to work alongside you to make your farms flourish and let clean waters flow; to nourish starved bodies and feed hungry minds.  And to those nations like ours that enjoy relative plenty, we say we can no longer afford indifference to the suffering outside our borders, nor can we consume the world's resources without regard to effect.  For the world has changed, and we must change with it.
As we consider the role that unfolds before us, we remember with humble gratitude those brave Americans who at this very hour patrol far-off deserts and distant mountains.  They have something to tell us, just as the fallen heroes who lie in Arlington whisper through the ages. 
We honor them not only because they are the guardians of our liberty, but because they embody the spirit of service -- a willingness to find meaning in something greater than themselves. 
And yet at this moment, a moment that will define a generation, it is precisely this spirit that must inhabit us all.  For as much as government can do, and must do, it is ultimately the faith and determination of the American people upon which this nation relies.  It is the kindness to take in a stranger when the levees break, the selflessness of workers who would rather cut their hours than see a friend lose their job which sees us through our darkest hours.  It is the firefighter's courage to storm a stairway filled with smoke, but also a parent's willingness to nurture a child that finally decides our fate.
Our challenges may be new.  The instruments with which we meet them may be new.  But those values upon which our success depends -- honesty and hard work, courage and fair play, tolerance and curiosity, loyalty and patriotism -- these things are old.  These things are true.  They have been the quiet force of progress throughout our history. 
What is demanded, then, is a return to these truths.  What is required of us now is a new era of responsibility -- a recognition on the part of every American that we have duties to ourselves, our nation and the world; duties that we do not grudgingly accept, but rather seize gladly, firm in the knowledge that there is nothing so satisfying to the spirit, so defining of our character than giving our all to a difficult task.
This is the price and the promise of citizenship.  This is the source of our confidence -- the knowledge that God calls on us to shape an uncertain destiny.  This is the meaning of our liberty and our creed, why men and women and children of every race and every faith can join in celebration across this magnificent mall; and why a man whose father less than 60 years ago might not have been served in a local restaurant can now stand before you to take a most sacred oath.  (Applause.)
So let us mark this day with remembrance of who we are and how far we have traveled.  In the year of America's birth, in the coldest of months, a small band of patriots huddled by dying campfires on the shores of an icy river.  The capital was abandoned.  The enemy was advancing.  The snow was stained with blood.  At the moment when the outcome of our revolution was most in doubt, the father of our nation ordered these words to be read to the people: 
"Let it be told to the future world...that in the depth of winter, when nothing but hope and virtue could survive... that the city and the country, alarmed at one common danger, came forth to meet [it]."
America:  In the face of our common dangers, in this winter of our hardship, let us remember these timeless words.  With hope and virtue, let us brave once more the icy currents, and endure what storms may come.  Let it be said by our children's children that when we were tested we refused to let this journey end, that we did not turn back nor did we falter; and with eyes fixed on the horizon and God's grace upon us, we carried forth that great gift of freedom and delivered it safely to future generations.
Thank you.  God bless you.  And God bless the United States of America. (Applause.)