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