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Mr. Carney:
Good afternoon,
ladies and gentlemen.
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Thank you for being here.
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I apologize for the
delay this afternoon.
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I have with me the President's
Chairman -- or rather the
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Chairman of the President's
Council of Economic Advisers
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Alan Krueger, recently
confirmed by the Senate.
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He is here to discuss with you
the economic importance of the
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payroll tax cut, extending and
expanding it into next year,
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as well as the importance it has
had to our economy and to 160
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million Americans this year.
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So what I would like to do
is have him go at the top,
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for you to address whatever
questions you have on the policy
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issues to him.
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You may have some
political questions,
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which are more appropriately
directed towards me;
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I will remain here to take them
for you -- from you, rather.
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And then I will let Alan go back
to his important and difficult
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work, and then I will
remain to take questions
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on other subjects.
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With that, I give
you Alan Krueger.
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Mr. Krueger:
Thanks, Jay.
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I thought I'd say a few words
about how the economy is doing
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and the importance of
extending and expanding
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the payroll tax cut.
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This is a critical
time for the economy,
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and I think it's a time where
the economy can use more
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medicine to strengthen
and sustain the recovery.
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As you know, a year ago
the Congress passed and
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the President signed a
2-percentage-point reduction
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in the payroll tax.
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That tax cut has provided
important support for the
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economy, especially at a time
when the economy was hit with
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some shocks such as rising
gasoline prices and supply-side
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shocks from the earthquake
in Japan, problems in Europe.
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The President has proposed
expanding the payroll tax cut
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to 3.1 percent on
the employee side,
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as well as cutting payroll
taxes for employers,
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focusing the payroll tax cut for
employers on small businesses
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and businesses
that are expanding.
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I think the economic
argument for these proposals
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is quite compelling.
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I think across the spectrum
of economists you would find
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support for applying this type
of medicine to the economy now.
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The economy has been
recovering; we've had
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nine quarters of growth.
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But the pace of growth
has been moderate.
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We still have a great many
underutilized resources.
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Unemployment rate
is still 9 percent.
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We still have underutilized
factories and resources.
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Fundamentally, the economy is
facing weak aggregate demand.
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That's economist-speak for not
enough spending in the economy.
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And I think you can trace the
reasons for the weak demand
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directly to the problems that
caused the economic crisis:
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Families borrowed too much in
the run-up to the crisis --
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they're now paying down debt;
we had a severe bubble in the
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housing market; and residential
construction has been quite flat
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in the recovery -- really
unprecedented to have a recovery
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where residential construction
has not been increasing.
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And then on top of that,
state and local governments,
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which retained employees when
they were getting support from
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the Recovery Act, have
been laying off workers.
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So I think those are the reasons
why the recovery has not been
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stronger, and at the same
time, I think it's important to
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provide insurance for the
economy against further shocks,
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possible shocks down the road.
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If the payroll tax
is not extended,
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then the typical family with
$50,000 in earnings would face
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a $1,000 tax increase
starting in January.
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What the President has proposed
is extending that tax cut and
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expanding it so the typical
family would have about a
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$1,500 tax cut, and as I
mentioned, other components
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in the jobs act, the
employer side, tax cuts,
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as well as extending
unemployment benefits.
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So, with that, I'm happy
to take some questions.
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Mr. Carney:
Ben Feller.
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The Press:
Thank you very much.
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Are you asserting that the
extension of the cut would
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actually make the
economy better,
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or are you just saying that
allowing it to expire would
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make the economy worse?
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Mr. Krueger:
I think both are true.
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The President proposed extending
and expanding the tax cut,
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so the beneficial effect
that we saw from the last
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round would be larger.
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I also think that the tax
cuts on the employer side are
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particularly well designed.
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The CBO has concluded that the
type of incremental payroll tax
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that the President has proposed
has pretty high bang for the
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buck, compared to other things
that could be done to strengthen
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the economy.
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And if the tax cut expires,
as I said, that will be a
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$1,000 increase in taxes
for the typical family,
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which would be a drag on
economic growth going forward.
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And you can see economists from
across the spectrum who have
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noted that this could pose a
severe drag for growth going
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forward if it's
allowed to expire.
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The Press:
But if it's extended
at the same level,
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which is something that the Hill
has talked about, 2 percent,
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that wouldn't actually do
anything to increase demand,
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increase spending.
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I mean, people are
already getting that cut.
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Mr. Krueger:
Well, compared to
letting it expire,
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it certainly would
support the economy.
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The Press:
In terms of
unemployment insurance,
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the extension that we just --
because that's the other part
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the President seems to be
talking about -- failure to
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extend that, would that
have a similar effect on
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aggregate demand?
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Mr. Krueger:
If you look at CBO's list
-- I think they looked at
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11 different policies that are
currently being considered --
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extending unemployment
benefits, they concluded,
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had the biggest effect on
the economy per dollar spent.
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And the unemployed tend to have
a very high propensity to spend
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their benefits, because they pay
bills and little income coming
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in, running down savings.
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So I think extending
unemployment benefits
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as well would help to support
the recovery going forward.
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Mr. Carney:
Matt.
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The Press:
Senate Majority Leader Reid
has said -- has warned that
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the failure to extend the tax --
the payroll tax cuts could push
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the U.S. economy into
recession; some independent
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economists say the same.
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Do you agree or
disagree with that?
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Mr. Krueger:
I think what's clear is that
extending the payroll tax cut
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will strengthen the recovery.
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Without it, it will be a
drag on economic growth.
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The forecasts, if you look
at private sector forecasts,
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are for fairly moderate growth,
perhaps not strong enough to
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bring down unemployment without
the extension of the payroll tax
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cut, which is why the
President proposed extending
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it and expanding it.
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The Press:
Enough to cause a
recession or not?
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Mr. Krueger:
What I can say, from
looking at the evidence,
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is that this is the medicine
that we can use in the near term
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to help strengthen the recovery
and to help to provide insurance
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against shocks that
might be coming.
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The Press:
And you mentioned the
problems in Europe,
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obviously the eurozone
debt problems.
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How much of a drag on the U.S.
economy and on GDP growth do you
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expect for the rest of this
year as well as for next year?
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Mr. Krueger:
A number of economists have
pointed out that the problems
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in the eurozone are a
potential threat to the U.S.
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economy and economies worldwide
through both financial channels
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and through our exports
-- about 20 percent of our
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exports go to Europe.
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I think if one looks at the
potential problems for economic
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growth coming from Europe, it
even strengthens the argument
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for strengthening our
own demand here at home.
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The payroll tax cut is I think
an extremely sensible way of
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doing that.
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So, looking around at
the developments in the
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world I think helps to
strengthen the argument
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for the President's proposal.
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Mr. Carney:
Jake.
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The Press:
Given that the payroll tax goes
to the Social Security trust
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fund, are you not
concerned at all, A,
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that this will have an effect
possibly on the solvency of the
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Social Security trust fund?
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And also, B, why
do this every year?
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What you're calling for -- what
the President is calling for,
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the tax increase will just be
delayed until January 2013.
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Why not just do a whole
structural change so that we
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don't have to have this same
conversation every year?
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Mr. Krueger:
Well, on your first question, I
don't think this jeopardizes the
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Social Security trust fund or
the solvency of Social Security.
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The trust fund is made
whole by general revenues.
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The Social Security chief
actuary has stated that this
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does not affect the
solvency of Social Security.
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Moreover, the President proposed
a way to pay for the extension
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and expansion of the payroll
tax cut as well as the other
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components of the American Jobs
Act, so over the 10-year period,
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the budget would be held neutral
with respect to these cuts.
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On the second question, looking
at the pace of recovery,
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looking at the threats
that we face today,
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I think it's critical that
we extend the payroll tax
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cut and expand it.
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Down the road, we expect that
the economy will be stronger
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and that the natural process
of recovery takes over --
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The Press:
In 2013, do you expect?
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Mr. Krueger:
Let me just say that recovery
has been more sluggish than one
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might expect coming out of a
recession because of the nature
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of the problems that created
the crisis -- because consumers
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built up so much debt that
they're working their way down,
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because of problems
in the housing market.
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We're seeing the economy
heal; it's just not healing
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fast enough.
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So these measures would help
to sustain the recovery and,
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down the road, such
measures won't be necessary.
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The Press:
Can I just do a quick follow-up?
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I'm sorry. It seems the language
that many in the White House and
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the administration are using
about whether or not the payroll
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tax cut extension would be paid
for is shifting a little bit in
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terms of how important it is
that the pay-for is actually
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passed in combination
with the extension.
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Would the President sign
legislation that extended
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the payroll tax cut if
it weren't paid for?
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Mr. Krueger:
The President proposed a way to
do this and a way to pay for it.
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The Senate Democrats came up
with an alternative way to pay
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for it, which the President
has said that he could support.
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I think both of those approaches
are sensible approaches.
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And I think what we need to do
is look for a way to extend the
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proposal -- extend the tax cut,
which makes economic sense.
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Mr. Carney:
Norah, and then Mara.
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The Press:
It appears the Joint Tax
Committee has said that
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about a third of small
businesses would be taxed
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additionally if you
have the pay-for --
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the so-called "millionaires tax."
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Wouldn't that be hurtful to
the economy, that pay-for,
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in terms of it hurting small
businesses in that way by taxing
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them additionally
to pay for this?
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Mr. Krueger:
The tax on incomes above
a million dollars a year
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I think would hit very
few small businesses.
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The vast majority -- one
figure I saw was 99 percent
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of individuals with small
business income would not
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be affected by this.
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So the vast majority of
employers would be unaffected
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by what was proposed to pay
for the payroll tax extension.
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Mr. Carney:
Mara.
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The Press:
Mitch McConnell has said
that you're proposing to
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put a permanent tax on
millionaires in exchange
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for this temporary tax cut.
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What would be the effect of
the surtax on millionaires,
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the economic effect?
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Mr. Krueger:
Well, the way to analyze
economic effect is to say,
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when does the tax
cut take effect?
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When does the tax increase
to pay for it take effect?
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Those are not at the same time.
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The tax cut would be immediate.
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It would be for virtually
all working families,
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focused on families
with moderate incomes.
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So then look at what's the
marginal propensity to spend
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out of income for the different
groups that are affected by the
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tax cut and the way
that it's paid for.
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The families that would be
affected by the tax cut tend
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to have a higher marginal
propensity to spend,
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which would provide more support
for the economy right away.
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00:13:01,767 --> 00:13:05,367
Those in upper-income groups
with incomes above a million
238
00:13:05,367 --> 00:13:07,632
dollars a year tend to
have a lower marginal
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00:13:07,633 --> 00:13:09,300
propensity to consume.
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00:13:09,300 --> 00:13:11,433
So I think if you're thinking
about how is this going to
241
00:13:11,433 --> 00:13:13,333
affect the economy in the
short run and the long run,
242
00:13:13,333 --> 00:13:16,199
this is the right fiscal path
for strengthening the economy
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00:13:16,200 --> 00:13:21,166
now and ensuring that it's done
in a fiscally responsible way.
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00:13:21,166 --> 00:13:22,700
The Press:
And can you just
clarify something?
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00:13:22,700 --> 00:13:25,233
You said it would be a $1,000
tax increase if this isn't
246
00:13:25,233 --> 00:13:29,132
passed, but it would be a
$1,500 tax cut if it is.
247
00:13:29,133 --> 00:13:30,700
How can that be?
248
00:13:30,700 --> 00:13:32,567
Mr. Krueger:
The question is what
baselines you use.
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00:13:32,567 --> 00:13:36,333
So if you compare
the status quo,
250
00:13:36,333 --> 00:13:40,300
if the payroll tax
cut is not extended,
251
00:13:40,300 --> 00:13:44,233
that would mean starting in
January an increase in payroll
252
00:13:44,233 --> 00:13:47,834
taxes for virtually all
workers of 2 percent.
253
00:13:47,834 --> 00:13:51,834
For a family earning
$1,000 -- earning $50,000,
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00:13:51,834 --> 00:13:54,867
that equates to a
$1,000 tax increase.
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00:13:54,867 --> 00:13:59,800
What the President has proposed
is extending and expanding the
256
00:13:59,800 --> 00:14:03,266
payroll tax cut, so the 3.1
percent compared to if it's
257
00:14:03,266 --> 00:14:04,666
allowed to expire.
258
00:14:04,667 --> 00:14:07,667
Mr. Carney:
Let's do Ed, then Laura.
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00:14:07,667 --> 00:14:09,834
The Press:
Can I just ask -- the
President wants to extend
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00:14:09,834 --> 00:14:10,666
unemployment benefits.
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00:14:10,667 --> 00:14:13,166
You did a study a few months ago
suggesting the longer people are
262
00:14:13,166 --> 00:14:16,033
out of work the less time
they end up spending looking
263
00:14:16,033 --> 00:14:17,500
for work.
264
00:14:17,500 --> 00:14:19,867
So how does that square with
trying to give people more
265
00:14:19,867 --> 00:14:24,500
benefits and stay
unemployed longer?
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00:14:24,500 --> 00:14:26,066
Mr. Krueger:
And I hope you've
read the study.
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00:14:26,066 --> 00:14:27,266
The Press:
Not the entire --
268
00:14:27,266 --> 00:14:28,433
Mr. Krueger:
That's all right.
269
00:14:28,433 --> 00:14:30,934
The Press:
It was written
about extensively.
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00:14:30,934 --> 00:14:34,500
Mr. Krueger:
So there's a lot of research
on the effect of extended
271
00:14:34,500 --> 00:14:36,433
unemployment benefits,
unemployment benefits
272
00:14:36,433 --> 00:14:37,433
more generally.
273
00:14:37,433 --> 00:14:39,367
I think there's a fair amount
of consensus in the economics
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00:14:39,367 --> 00:14:42,699
profession that there
are tradeoffs involved,
275
00:14:42,700 --> 00:14:46,533
that particularly if you look at
normal times when we're close to
276
00:14:46,533 --> 00:14:52,066
full employment, that higher
benefits or extended benefits
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00:14:52,066 --> 00:14:54,467
do have some effect
on search activity.
278
00:14:55,367 --> 00:15:00,467
That effect is greatly reduced
now when we have over four job
279
00:15:00,467 --> 00:15:02,967
seekers for every vacancy.
280
00:15:02,967 --> 00:15:10,633
The effect of any individual
perhaps taking more time to find
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00:15:10,633 --> 00:15:13,867
a job that's suitable for him or
her is going to have less effect
282
00:15:13,867 --> 00:15:17,433
when there are other job seekers
available for those positions.
283
00:15:17,433 --> 00:15:18,433
That's on the one hand.
284
00:15:18,433 --> 00:15:22,066
On the other hand, another
effect of unemployment benefits
285
00:15:22,066 --> 00:15:25,033
is that it provides critical
income support for families when
286
00:15:25,033 --> 00:15:26,667
they're going through
a very difficult time.
287
00:15:26,667 --> 00:15:30,000
I mentioned earlier that the
unemployed tend to have a high
288
00:15:30,000 --> 00:15:34,533
marginal propensity to spend out
of benefits that they receive to
289
00:15:34,533 --> 00:15:36,800
pay for their mortgages,
and that helps to prevent
290
00:15:36,800 --> 00:15:39,400
foreclosures, and pay
for food and so on,
291
00:15:39,400 --> 00:15:42,165
which supports the
economy more generally.
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00:15:42,166 --> 00:15:44,633
The CBO, when it looked at this
and weighed these different
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00:15:44,633 --> 00:15:48,233
factors, came to the conclusion,
which I think is a sensible
294
00:15:48,233 --> 00:15:51,733
conclusion, that extending
unemployment benefits provides
295
00:15:51,734 --> 00:15:56,533
the biggest bang for the buck
in terms of strengthening
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00:15:56,533 --> 00:15:59,133
consumption in the
economy and creating jobs,
297
00:15:59,133 --> 00:16:02,233
taking all of those
factors into account.
298
00:16:02,233 --> 00:16:03,800
Mr. Carney:
Laura.
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00:16:03,800 --> 00:16:06,000
The Press:
Thank you. I want to follow
up on Jake's question,
300
00:16:06,000 --> 00:16:10,567
which was whether the White
House would accept a payroll
301
00:16:10,567 --> 00:16:13,867
tax cut or the UI extension
without it being paid for.
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00:16:13,867 --> 00:16:16,500
You mentioned that the President
had a proposal and the Senate
303
00:16:16,500 --> 00:16:19,900
Democrats have a proposal and
that they both make sense,
304
00:16:19,900 --> 00:16:23,533
but I think what I'd like to
know is whether it would be okay
305
00:16:23,533 --> 00:16:25,900
to do it without either one of
those and just -- would that be
306
00:16:25,900 --> 00:16:29,567
one acceptable outcome,
given the economics involved?
307
00:16:29,567 --> 00:16:32,066
Mr. Krueger:
I don't want to go into what
might happen when the Senate
308
00:16:32,066 --> 00:16:37,667
still hasn't voted on the bill
that Senator Casey has proposed;
309
00:16:37,667 --> 00:16:39,266
they're going to vote
on that later this week.
310
00:16:39,266 --> 00:16:42,533
I can tell you that
from my perspective,
311
00:16:42,533 --> 00:16:46,934
and I believe from the
administration's perspective,
312
00:16:46,934 --> 00:16:49,433
doing this in a way that
makes economic sense is
313
00:16:49,433 --> 00:16:50,600
the way to proceed.
314
00:16:50,600 --> 00:16:55,734
And I'm sure that the President
would consider whether it's a
315
00:16:55,734 --> 00:16:58,000
sensible economic
strategy going forward.
316
00:16:58,000 --> 00:17:03,166
But I think it's first important
that the Senate consider the
317
00:17:03,166 --> 00:17:06,233
legislation that's before it,
which does pay for this with
318
00:17:06,233 --> 00:17:09,399
a way that the Senate
Democrats have proposed.
319
00:17:09,400 --> 00:17:12,133
The Press:
And some would say that it
makes economic sense to --
320
00:17:12,133 --> 00:17:14,800
in a recession to have
some upfront spending,
321
00:17:14,800 --> 00:17:18,233
even if it does increase
the deficit long term.
322
00:17:18,233 --> 00:17:19,899
Would you agree with that?
323
00:17:19,900 --> 00:17:24,367
Mr. Krueger:
You know, I would need to look
at what the proposals are and
324
00:17:24,367 --> 00:17:25,800
wait until that point.
325
00:17:25,800 --> 00:17:27,433
But hopefully Jay
can have me back.
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00:17:27,433 --> 00:17:29,200
Mr. Carney:
I'll definitely have you back.
327
00:17:29,200 --> 00:17:31,867
The Press:
That was what -- so
you don't have --
328
00:17:31,867 --> 00:17:32,567
Mr. Carney:
Well we're not going to --
329
00:17:32,567 --> 00:17:34,734
The Press:
In a perfect world,
you don't -- I mean,
330
00:17:34,734 --> 00:17:37,934
does it make sense in this
economy to actually find a
331
00:17:37,934 --> 00:17:41,734
pay-for for this?
332
00:17:41,734 --> 00:17:44,132
Mr. Krueger:
I don't want to go into
specifics about what kind
333
00:17:44,133 --> 00:17:45,033
of -- finding a pay-for.
334
00:17:45,033 --> 00:17:46,667
Some pay-fors make
sense, some don't.
335
00:17:48,266 --> 00:17:52,133
All I can tell you is, I think
at this point the right fiscal
336
00:17:52,133 --> 00:17:56,633
path for the country is to try
to support the economy in the
337
00:17:56,633 --> 00:18:00,100
short run, and to do it in
a fiscally responsible way,
338
00:18:00,100 --> 00:18:04,199
which is over a period of, say,
a 10-year window -- which is
339
00:18:04,200 --> 00:18:07,767
common -- to have
it be paid for.
340
00:18:07,767 --> 00:18:10,100
That's what the
President has proposed.
341
00:18:10,100 --> 00:18:10,699
The Press:
But you're open to not --
342
00:18:10,700 --> 00:18:11,567
Mr. Carney:
Let's just do --
343
00:18:11,567 --> 00:18:13,800
The Press:
You're open to
not paying for it?
344
00:18:13,800 --> 00:18:15,899
Mr. Carney:
Let me just take it.
345
00:18:15,900 --> 00:18:17,934
I think I've gotten this, Alan's
now gotten it three times.
346
00:18:17,934 --> 00:18:21,899
We're not going to speculate
about what might happen if
347
00:18:21,900 --> 00:18:24,900
Senate Republicans do not hear
the call of the vast majority of
348
00:18:24,900 --> 00:18:28,367
the American people to vote in
favor of extending and expanding
349
00:18:28,367 --> 00:18:31,966
the payroll tax cut, and paying
for it in a way that is entirely
350
00:18:31,967 --> 00:18:36,934
economically responsible
and broadly supported by the
351
00:18:36,934 --> 00:18:40,466
American people, Americans
of all political persuasion.
352
00:18:40,467 --> 00:18:42,200
So that vote hasn't
happened yet.
353
00:18:42,200 --> 00:18:45,233
We certainly hope that
enough senators vote for it,
354
00:18:45,233 --> 00:18:48,300
that it will then move
to the House, pass there,
355
00:18:48,300 --> 00:18:50,466
and be signed into
law by the President.
356
00:18:50,467 --> 00:18:53,567
It would certainly be nice if a
simple majority of senators were
357
00:18:53,567 --> 00:18:56,233
allowed to vote on this, pass it
and send it to the President --
358
00:18:56,233 --> 00:18:58,200
send it to the House and
the President's desk.
359
00:18:58,200 --> 00:19:00,266
We certainly know that a vast
majority of the American people
360
00:19:00,266 --> 00:19:01,266
support it.
361
00:19:01,266 --> 00:19:04,533
So we're not going to speculate
about endgames if certain things
362
00:19:04,533 --> 00:19:06,300
do or don't happen
in the Senate.
363
00:19:06,300 --> 00:19:08,600
I got a couple more for
Alan because I have a hard
364
00:19:08,600 --> 00:19:09,533
out for me.
365
00:19:09,533 --> 00:19:11,033
(laughter)
366
00:19:11,033 --> 00:19:12,065
Mr. Krueger:
Knew there was a
reason you wanted me.
367
00:19:12,066 --> 00:19:13,100
Mr. Carney:
Mark. Yes.
368
00:19:13,100 --> 00:19:15,533
The Press:
Can I ask you about
the national debt?
369
00:19:15,533 --> 00:19:18,966
It topped $15 trillion
a couple of weeks ago,
370
00:19:18,967 --> 00:19:24,233
and it's now bearing down
on 100 percent of GDP.
371
00:19:24,233 --> 00:19:25,800
Does that worry you?
372
00:19:27,500 --> 00:19:29,567
Mr. Krueger:
I think it's very important
that we get on a sustainable
373
00:19:29,567 --> 00:19:30,734
fiscal path.
374
00:19:30,734 --> 00:19:32,766
I think it's also important we
measure the debt in the right
375
00:19:32,767 --> 00:19:35,633
way, looking at net
debt held by the public.
376
00:19:35,633 --> 00:19:37,266
But hold that aside.
377
00:19:37,266 --> 00:19:42,934
The President has proposed -- in
September gave a proposal to the
378
00:19:42,934 --> 00:19:46,899
super committee or joint
committee of Congress to help
379
00:19:46,900 --> 00:19:49,100
put us on a fiscally
sustainable path.
380
00:19:49,100 --> 00:19:52,265
And I think that as we
strengthen the economy in the
381
00:19:52,266 --> 00:19:57,433
short run, we need to do two
things at once: We need to
382
00:19:57,433 --> 00:19:58,800
strengthen the economy
in the short run,
383
00:19:58,800 --> 00:20:03,399
and we need to return to a
fiscally sustainable path.
384
00:20:03,400 --> 00:20:05,934
The Press:
If Congress just extends
it at the 2 percent,
385
00:20:05,934 --> 00:20:09,166
would that lower the
unemployment rate next year?
386
00:20:09,166 --> 00:20:12,300
Mr. Krueger:
I think if you look at
independent estimates from
387
00:20:12,300 --> 00:20:18,767
across the spectrum, they would
predict that extending the
388
00:20:18,767 --> 00:20:24,200
payroll tax cut or expanding it
would lead to stronger economic
389
00:20:24,200 --> 00:20:28,133
growth and more employment than
would otherwise be the case.
390
00:20:28,133 --> 00:20:29,767
The Press:
But just the extension,
just the 2 percent,
391
00:20:29,767 --> 00:20:32,467
that would lower the
unemployment rate?
392
00:20:32,467 --> 00:20:35,233
Mr. Krueger:
I think that that would create
more jobs compared to the
393
00:20:35,233 --> 00:20:37,200
situation if it's not extended.
394
00:20:37,200 --> 00:20:38,567
The Press:
What would that do
to the actual rate?
395
00:20:38,567 --> 00:20:39,500
I'm sorry.
396
00:20:39,500 --> 00:20:42,233
Mr. Krueger:
If you compare it to what the
unemployment rate would be if
397
00:20:42,233 --> 00:20:45,000
it were not extended, I think
because we would have more job
398
00:20:45,000 --> 00:20:48,133
growth by extending
it, all else equal,
399
00:20:48,133 --> 00:20:50,400
it would lead to a
lower unemployment rate.
400
00:20:50,400 --> 00:20:54,800
But the important thing is to
compare it to how does it affect
401
00:20:54,800 --> 00:20:56,533
economic growth, how does
it affect job growth,
402
00:20:56,533 --> 00:20:59,600
compared to extending it
versus not extending it.
403
00:20:59,600 --> 00:21:00,667
Mr. Carney:
Let me do one more.
404
00:21:00,667 --> 00:21:03,766
The Press:
To follow on that then, would
the White House consider,
405
00:21:03,767 --> 00:21:07,200
regardless of the pay-for,
simply extending the payroll
406
00:21:07,200 --> 00:21:08,967
tax cut without an expansion?
407
00:21:08,967 --> 00:21:11,400
I haven't heard that.
408
00:21:11,400 --> 00:21:12,834
Mr. Krueger:
I'm going to rewind
what Jay said.
409
00:21:12,834 --> 00:21:13,533
Mr. Carney:
Yes.
410
00:21:13,533 --> 00:21:17,332
Mr. Krueger:
The Senate is considering
a bill later this week,
411
00:21:17,333 --> 00:21:19,166
which has a way to pay for it.
412
00:21:19,166 --> 00:21:20,934
The President proposed
a way to pay for it.
413
00:21:22,100 --> 00:21:26,000
And we're open to economically
sensible ways of trying to
414
00:21:26,000 --> 00:21:30,633
strengthen the economy and do it
in a fiscally responsible way.
415
00:21:30,633 --> 00:21:33,467
Mr. Carney:
Thank you, Alan. Appreciate it.
416
00:21:33,467 --> 00:21:34,500
Thank you all.
417
00:21:34,500 --> 00:21:39,333
I will now let Alan get
back to his economic work,
418
00:21:39,333 --> 00:21:41,066
and will take your
questions on other issues.
419
00:21:41,066 --> 00:21:45,166
I, regrettably, have to leave
here in about 15 minutes.
420
00:21:45,166 --> 00:21:47,533
Before I take questions,
I just wanted to note,
421
00:21:47,533 --> 00:21:50,867
as I'm sure all of you saw, that
the Vice President landed in
422
00:21:50,867 --> 00:21:55,300
Baghdad earlier
today on a visit,
423
00:21:55,300 --> 00:21:57,166
I think his eighth
as Vice President,
424
00:21:57,166 --> 00:22:05,066
and an even higher number since
he was a senator or in the last
425
00:22:05,066 --> 00:22:06,066
eight or 10 years.
426
00:22:06,066 --> 00:22:10,300
I just want to note
that President Obama,
427
00:22:10,300 --> 00:22:11,867
when he was running
for this office,
428
00:22:11,867 --> 00:22:14,633
made clear that if
elected he would end
429
00:22:14,633 --> 00:22:17,734
the war in Iraq responsibly.
430
00:22:17,734 --> 00:22:21,699
What we're seeing happen in
these final six weeks of the
431
00:22:21,700 --> 00:22:23,834
year is the fulfillment
of that promise,
432
00:22:23,834 --> 00:22:29,266
where we're withdrawing
the remaining U.S. forces
433
00:22:29,266 --> 00:22:34,166
from Iraq and we are
ending that war responsibly
434
00:22:34,166 --> 00:22:39,367
and giving the Iraqi people the
chance for a better future that
435
00:22:39,367 --> 00:22:43,133
they deserve and also
maintaining an important
436
00:22:43,133 --> 00:22:45,633
strategic relationship
with Iraq.
437
00:22:45,633 --> 00:22:47,333
I would note that
having, as you know,
438
00:22:47,333 --> 00:22:49,500
worked for the Vice President
during his first two years here,
439
00:22:49,500 --> 00:22:53,734
that it was a measure of the
President's seriousness about
440
00:22:53,734 --> 00:22:57,500
Iraq and seriousness about
fulfilling his commitment that
441
00:22:57,500 --> 00:22:59,934
he asked the Vice President to
take on day-to-day management
442
00:22:59,934 --> 00:23:02,734
of this policy, which is why
he has traveled, as you know,
443
00:23:02,734 --> 00:23:06,833
so often to Iraq over the
last nearly three years.
444
00:23:06,834 --> 00:23:08,367
And with that, I will
take your questions.
445
00:23:08,367 --> 00:23:09,367
Jake.
446
00:23:09,367 --> 00:23:11,500
The Press:
I've heard from a lot of
Democrats in the last few
447
00:23:11,500 --> 00:23:14,000
weeks who are concerned about
President Obama possibly
448
00:23:14,000 --> 00:23:16,633
granting an exemption
to Catholic churches,
449
00:23:16,633 --> 00:23:19,900
hospitals and universities
from the requirement that
450
00:23:19,900 --> 00:23:23,800
all insurance plans
cover contraception.
451
00:23:23,800 --> 00:23:27,133
I'm wondering if you could shed
any light on this decision.
452
00:23:27,133 --> 00:23:29,567
I know the President has
not yet made a decision,
453
00:23:29,567 --> 00:23:32,100
but I think these Democrats,
a lot of them in the abortion
454
00:23:32,100 --> 00:23:34,233
rights community, are
concerned that this is
455
00:23:34,233 --> 00:23:36,066
even being discussed.
456
00:23:36,066 --> 00:23:39,333
Could you explain why the
President is considering an
457
00:23:39,333 --> 00:23:42,533
exemption, and what's going
into his decision-making?
458
00:23:42,533 --> 00:23:44,632
Mr. Carney:
Well, part of the process,
Jake, as you know,
459
00:23:44,633 --> 00:23:49,200
was seeking and receiving public
input before the guidelines that
460
00:23:49,200 --> 00:23:54,900
were announced by the Secretary
of Health and Human Services
461
00:23:54,900 --> 00:23:56,033
would go into effect.
462
00:23:56,033 --> 00:24:00,567
That process did
result in public input,
463
00:24:00,567 --> 00:24:07,500
as well as resulted in numerous
comments from various folks who
464
00:24:07,500 --> 00:24:10,567
have concerns about this issue.
465
00:24:10,567 --> 00:24:13,667
The President has -- this
decision has not yet been made.
466
00:24:13,667 --> 00:24:18,466
You can be sure that we want to
strike the right balance between
467
00:24:18,467 --> 00:24:22,800
expanding coverage of preventive
services and respecting
468
00:24:22,800 --> 00:24:23,767
religious beliefs.
469
00:24:23,767 --> 00:24:26,100
And that's the balance
that will be sought as
470
00:24:26,100 --> 00:24:28,533
this decision is made.
471
00:24:28,533 --> 00:24:29,632
Ben.
472
00:24:29,633 --> 00:24:31,700
The Press:
Believe it or not, I had a quick
follow-up on the payroll tax.
473
00:24:31,700 --> 00:24:33,567
Mr. Carney:
Sure.
474
00:24:33,567 --> 00:24:36,000
The Press:
I know you don't want to comment
about a Senate vote that hasn't
475
00:24:36,000 --> 00:24:38,133
happened yet, and I'm
not asking about that.
476
00:24:38,133 --> 00:24:39,467
I understand your point on that.
477
00:24:39,467 --> 00:24:41,400
What I'm asking is about the
President's point when he
478
00:24:41,400 --> 00:24:44,567
unveiled the payroll tax at
the end-of-September speech.
479
00:24:44,567 --> 00:24:47,967
He said then that every idea
in his plan will be paid for,
480
00:24:47,967 --> 00:24:52,900
and he has said it dozens
of times since then.
481
00:24:52,900 --> 00:24:55,600
I'm just wondering if he stands
by that, that he has proposals,
482
00:24:55,600 --> 00:24:57,734
including this
payroll tax extension,
483
00:24:57,734 --> 00:24:59,399
he wants Congress to pass
them and he wants them to
484
00:24:59,400 --> 00:25:01,900
be paid for.
485
00:25:01,900 --> 00:25:09,266
Mr. Carney:
I will repeat what Alan said
and add a little bit to it.
486
00:25:09,266 --> 00:25:11,567
As you noted, in September
the President put forward a
487
00:25:11,567 --> 00:25:14,066
comprehensive proposal,
the American Jobs Act,
488
00:25:14,066 --> 00:25:17,467
that included within it the
extension and expansion of the
489
00:25:17,467 --> 00:25:22,433
payroll tax cut for 160 million
Americans -- a tax cut that goes
490
00:25:22,433 --> 00:25:26,133
right to hardworking
middle-class Americans,
491
00:25:26,133 --> 00:25:30,533
a tax cut that has given
this year an average of $1,000
492
00:25:30,533 --> 00:25:36,065
extra in the average
family's wallet, and would,
493
00:25:36,066 --> 00:25:40,800
if expanded next year,
result in a $1,500 tax cut.
494
00:25:40,800 --> 00:25:42,265
That's very important
for those families,
495
00:25:42,266 --> 00:25:45,266
to help them make ends meet as
we continue to emerge from the
496
00:25:45,266 --> 00:25:49,166
worst recession in our lifetime,
since the Great Depression.
497
00:25:49,166 --> 00:25:50,466
And it's important
for the economy,
498
00:25:50,467 --> 00:25:57,166
because as Alan noted earlier,
the payroll tax cut is widely
499
00:25:57,166 --> 00:25:59,899
viewed by economists --
independent economists and
500
00:25:59,900 --> 00:26:02,967
forecasters to have a very
positive impact on economic
501
00:26:02,967 --> 00:26:05,800
growth and job creation.
502
00:26:05,800 --> 00:26:08,966
The President believes that the
best way to do this is the way
503
00:26:08,967 --> 00:26:12,066
that he put forward, with the
pay-for that he put forward.
504
00:26:12,066 --> 00:26:14,500
He also believes that the
pay-for the Senate Democrats
505
00:26:14,500 --> 00:26:17,867
have put forward meets the
principles that he laid out.
506
00:26:17,867 --> 00:26:21,233
And he looks forward to the
Senate voting on the proposal
507
00:26:21,233 --> 00:26:24,466
that Senator Casey has put
forward later this week.
508
00:26:24,467 --> 00:26:25,800
It's the responsible
thing to do.
509
00:26:25,800 --> 00:26:28,300
And as I think I
noted the other day,
510
00:26:28,300 --> 00:26:32,767
if only Senate Republicans who
say they will vote against this
511
00:26:32,767 --> 00:26:36,767
express as much passion about
the need to cut taxes for the
512
00:26:36,767 --> 00:26:40,967
middle class as they express to
protect tax cuts and protect the
513
00:26:40,967 --> 00:26:42,900
incomes of millionaires
and billionaires,
514
00:26:42,900 --> 00:26:48,266
we might be able to get this
done without much hullabaloo.
515
00:26:48,266 --> 00:26:53,033
I mean, this after all -- is
anyone here surprised that we're
516
00:26:53,033 --> 00:26:56,199
in a debate with Republicans
about whether or not to cut
517
00:26:56,200 --> 00:26:59,467
taxes is the right thing
to do for the middle class?
518
00:26:59,467 --> 00:27:02,233
I thought they
were for tax cuts.
519
00:27:02,233 --> 00:27:04,734
The President has put forward
this tax cut and expanding it
520
00:27:04,734 --> 00:27:09,833
for the middle class, for 160
million working Americans,
521
00:27:09,834 --> 00:27:11,633
and we'll have a vote
on that later this week.
522
00:27:11,633 --> 00:27:13,767
And what you all are telling me
is that Republicans are going to
523
00:27:13,767 --> 00:27:15,867
vote against it.
524
00:27:15,867 --> 00:27:18,033
They have to explain that.
525
00:27:18,033 --> 00:27:20,632
And the reason they're going to
vote against it they say so far
526
00:27:20,633 --> 00:27:24,633
is because they don't want it
to be paid for in a way that the
527
00:27:24,633 --> 00:27:28,033
vast majority of Americans
support that asks millionaires
528
00:27:28,033 --> 00:27:31,500
and billionaires to pay a little
bit extra -- millionaires and
529
00:27:31,500 --> 00:27:34,633
billionaires who, as you know,
based on the CBO study and many
530
00:27:34,633 --> 00:27:36,834
others, have done
exceptionally well,
531
00:27:36,834 --> 00:27:44,533
have seen their slice of the
American pie grow as the middle
532
00:27:44,533 --> 00:27:48,166
class has been squeezed.
533
00:27:48,166 --> 00:27:52,466
So we certainly hope that Senate
Republicans will hear the call
534
00:27:52,467 --> 00:27:56,400
of their constituents,
reconsider their vote
535
00:27:56,400 --> 00:28:00,467
later this week, and pass this
with more than 60 votes and send
536
00:28:00,467 --> 00:28:01,367
it to the House.
537
00:28:01,367 --> 00:28:03,100
The Press:
Nothing you just said
responds to Ben's question,
538
00:28:03,100 --> 00:28:06,265
which was does he still
stand by his statement?
539
00:28:06,266 --> 00:28:08,900
Mr. Carney:
That is the President's
preferred choice.
540
00:28:08,900 --> 00:28:12,567
You're asking me -- if only it
were the case that what this
541
00:28:12,567 --> 00:28:18,567
President wanted he got
in whole and in full.
542
00:28:18,567 --> 00:28:21,100
And certainly that's what
we would ask of the Senate,
543
00:28:21,100 --> 00:28:23,265
that they would pass the
American Jobs Act in its
544
00:28:23,266 --> 00:28:25,734
entirety as written
by the President,
545
00:28:25,734 --> 00:28:27,100
proposed by the President.
546
00:28:27,100 --> 00:28:29,632
Unfortunately, thus far,
this has not happened.
547
00:28:29,633 --> 00:28:32,867
We have had one modest but
important success working
548
00:28:32,867 --> 00:28:35,200
with the Congress on one
element of the Jobs Act,
549
00:28:35,200 --> 00:28:38,200
and that was the assistance to
veterans, to hiring veterans.
550
00:28:38,200 --> 00:28:41,467
We hope that Congress will
act on the payroll tax cut
551
00:28:41,467 --> 00:28:42,467
and expansion.
552
00:28:42,467 --> 00:28:45,700
I'm not going to speculate
about what Congress might do,
553
00:28:45,700 --> 00:28:49,300
and as Alan said, what pay-fors
they might come up with if they
554
00:28:49,300 --> 00:28:53,367
vote this down, this very
responsible provision or
555
00:28:53,367 --> 00:28:55,000
proposal that will come
forward in the Senate
556
00:28:55,000 --> 00:28:56,000
later this week. Ed.
557
00:28:56,000 --> 00:28:57,934
The Press:
You can't say whether the
President would sign a bill
558
00:28:57,934 --> 00:28:59,533
that is paid for or not?
559
00:28:59,533 --> 00:29:02,800
Mr. Carney:
We don't know what
the end game is yet.
560
00:29:02,800 --> 00:29:08,567
And there is no value in this
process or ultimately for the
561
00:29:08,567 --> 00:29:12,433
American people who want
and deserve this tax cut to
562
00:29:12,433 --> 00:29:15,967
negotiate an end game here
before we've even had a vote.
563
00:29:15,967 --> 00:29:17,867
So I'm not going to go
any further on that. Ed.
564
00:29:17,867 --> 00:29:22,166
The Press:
You do it all the time.
You put out veto threats.
565
00:29:22,166 --> 00:29:25,300
Mr. Carney:
I don't have a bill -- the bill
that Ben is talking about and
566
00:29:25,300 --> 00:29:28,533
others have now asked in
a variety of occasions,
567
00:29:28,533 --> 00:29:33,367
a hypothetical bill that puts
forward either an extension or
568
00:29:33,367 --> 00:29:34,300
an expansion of the payroll --
569
00:29:34,300 --> 00:29:35,000
The Press:
Without a pay-for?
570
00:29:35,000 --> 00:29:36,700
Mr. Carney:
-- does not yet exist.
571
00:29:36,700 --> 00:29:38,867
We put out SAPs when there
are bills to put out SAPs on.
572
00:29:38,867 --> 00:29:41,066
The Press:
That's the idea of rolling
back the sequester --
573
00:29:41,066 --> 00:29:47,266
Mr. Carney:
There is a bill on -- in the
Senate that will be voted on
574
00:29:47,266 --> 00:29:49,900
later this week and we
fully support that bill. Ed.
575
00:29:49,900 --> 00:29:51,100
The Press:
I want to make sure
before we lose you,
576
00:29:51,100 --> 00:29:53,766
we get you reacting to Iran.
577
00:29:53,767 --> 00:29:57,166
The U.N. Security Council
condemned the fact that the
578
00:29:57,166 --> 00:29:59,399
government there did
not help secure the
579
00:29:59,400 --> 00:30:00,700
British diplomatic offices.
580
00:30:00,700 --> 00:30:01,767
I wonder if you
could react to that.
581
00:30:01,767 --> 00:30:05,667
But also, has the President
instructed any U.S. personnel
582
00:30:05,667 --> 00:30:09,199
to do anything with U.S.
embassies around the world
583
00:30:09,200 --> 00:30:10,200
in other hot spots?
584
00:30:10,200 --> 00:30:13,800
Is there any concern about U.S.
embassies around the world?
585
00:30:13,800 --> 00:30:17,066
Mr. Carney:
I don't have any announcement to
make with regard to the second
586
00:30:17,066 --> 00:30:18,066
part of your question.
587
00:30:18,066 --> 00:30:19,333
You might want to check
with the State Department.
588
00:30:19,333 --> 00:30:25,467
But I'm not aware of anything
related to the events in Tehran.
589
00:30:25,467 --> 00:30:27,800
I put out a statement
earlier today, as you know,
590
00:30:27,800 --> 00:30:30,934
saying that the United States
condemns in the strongest terms
591
00:30:30,934 --> 00:30:34,332
the storming of the
British embassy in Tehran.
592
00:30:34,333 --> 00:30:39,633
Iran, as every
other country does,
593
00:30:39,633 --> 00:30:42,934
has a responsibility to protect
the diplomatic missions present
594
00:30:42,934 --> 00:30:46,533
in its country, and the
personnel stationed in them.
595
00:30:46,533 --> 00:30:50,833
I would also note that Iran
has a responsibility to protect
596
00:30:50,834 --> 00:30:52,967
diplomatic personnel --
not just to protect them,
597
00:30:52,967 --> 00:30:54,300
but not to try to
assassinate them,
598
00:30:54,300 --> 00:30:57,633
which was another issue that
we dealt with not too long ago.
599
00:30:57,633 --> 00:31:00,600
So Iran's behavior outside of
international norms is well
600
00:31:00,600 --> 00:31:07,833
established, and this is
another item in the catalogue
601
00:31:07,834 --> 00:31:12,333
of particulars -- particular
transgressions that the Iranian
602
00:31:12,333 --> 00:31:18,834
regime has perpetrated
over the months and years.
603
00:31:18,834 --> 00:31:20,033
And we strongly condemn it.
604
00:31:20,033 --> 00:31:21,065
The Press:
Very quick follow-up.
605
00:31:21,066 --> 00:31:23,633
You note the storming of
the diplomatic offices,
606
00:31:23,633 --> 00:31:26,367
the embassy, but also the
attempted assassination of
607
00:31:26,367 --> 00:31:27,700
the Saudi ambassador.
608
00:31:27,700 --> 00:31:30,100
Does that not suggest
that sanctions,
609
00:31:30,100 --> 00:31:32,934
while they've hurt
the Iranian economy,
610
00:31:32,934 --> 00:31:36,367
they have done nothing to
stop Iran from operating
611
00:31:36,367 --> 00:31:37,800
outside international norms?
612
00:31:37,800 --> 00:31:42,667
Mr. Carney:
Well, what we know, Ed, is that
we have built an unprecedented
613
00:31:42,667 --> 00:31:45,934
international coalition behind
the effort to isolate and
614
00:31:45,934 --> 00:31:48,533
pressure Iran; to get it
to change its behavior;
615
00:31:48,533 --> 00:31:51,899
to prevent it from
pursuing nuclear weapons.
616
00:31:51,900 --> 00:31:54,600
We have made,
through that effort,
617
00:31:54,600 --> 00:31:58,899
the choice ever more starkly
clear to the Iranian regime that
618
00:31:58,900 --> 00:32:02,200
faces them, which is further
isolation, further pressure,
619
00:32:02,200 --> 00:32:08,367
further scorn in the eyes of
the international community,
620
00:32:08,367 --> 00:32:10,734
or a decision to get
right with the world,
621
00:32:10,734 --> 00:32:13,100
to live up to its
international obligations
622
00:32:13,100 --> 00:32:15,632
and fulfill its
responsibilities.
623
00:32:15,633 --> 00:32:19,033
We have recently, as you
know, put forward even tighter
624
00:32:19,033 --> 00:32:23,000
sanctions on the Iranians --
so have other of our partners
625
00:32:23,000 --> 00:32:25,834
internationally -- and we will
continue in that effort in a
626
00:32:25,834 --> 00:32:27,600
variety of means, not
just through sanctions,
627
00:32:27,600 --> 00:32:30,166
to isolate and pressure Iran.
628
00:32:30,166 --> 00:32:34,567
The Press:
Jay, the President is now in
a TV ad, speaking to camera,
629
00:32:34,567 --> 00:32:37,266
saying the 2012
campaign has begun.
630
00:32:37,266 --> 00:32:39,800
And I know yesterday you guys
were pushing back very hard on
631
00:32:39,800 --> 00:32:44,466
this concept of it just being
a coincidence how many swing
632
00:32:44,467 --> 00:32:45,800
states the President has been.
633
00:32:45,800 --> 00:32:47,600
But tomorrow you're going
to Scranton, Pennsylvania,
634
00:32:47,600 --> 00:32:48,833
a swing state.
635
00:32:48,834 --> 00:32:50,533
How is this not just a
straight-up political trip?
636
00:32:50,533 --> 00:32:52,466
Mr. Carney:
Well, you are an expert,
there is no question, Chuck,
637
00:32:52,467 --> 00:32:53,266
on how this works.
638
00:32:53,266 --> 00:32:55,533
But we did win Pennsylvania
by double digits.
639
00:32:55,533 --> 00:32:58,399
I suppose that it might be
a swing state next year.
640
00:32:58,400 --> 00:33:00,667
You know more about
this than I do.
641
00:33:00,667 --> 00:33:04,033
The point I made yesterday,
which I think bears repeating,
642
00:33:04,033 --> 00:33:08,265
is that Virginia is 10 minutes
away from the Oval Office.
643
00:33:08,266 --> 00:33:10,100
Every President,
including this one,
644
00:33:10,100 --> 00:33:13,466
makes a lot of visits
to Virginia to get out
645
00:33:13,467 --> 00:33:15,066
of Washington.
646
00:33:15,066 --> 00:33:16,233
This President has.
647
00:33:16,233 --> 00:33:20,466
Because he also happened to
have won Virginia in 2008,
648
00:33:20,467 --> 00:33:22,734
it is now viewed as
a battleground state.
649
00:33:25,000 --> 00:33:27,700
Every President ought to be
able to travel everywhere
650
00:33:27,700 --> 00:33:29,133
in the country.
651
00:33:29,133 --> 00:33:32,200
It's part of his responsibility,
serving the American people,
652
00:33:32,200 --> 00:33:36,133
to get out and be among them
and to speak with them about
653
00:33:36,133 --> 00:33:37,667
his agenda or her agenda.
654
00:33:37,667 --> 00:33:39,433
This President will
continue to do that.
655
00:33:39,433 --> 00:33:44,100
It is also true that we are
moving forward in what will be
656
00:33:44,100 --> 00:33:45,332
a Presidential election year.
657
00:33:45,333 --> 00:33:50,734
And this President is running
for reelection and fully intends
658
00:33:50,734 --> 00:33:55,500
to carry out his role as a
candidate and to win reelection.
659
00:33:55,500 --> 00:33:59,266
And so that process
is also underway.
660
00:33:59,266 --> 00:34:00,967
But it is a separate process.
661
00:34:00,967 --> 00:34:05,333
And at this point, because
the President faces no primary
662
00:34:05,333 --> 00:34:09,867
challenger, and the President
has enormous responsibilities
663
00:34:09,867 --> 00:34:14,033
as President to fulfill --
principally to do everything
664
00:34:14,033 --> 00:34:17,799
he can, both legislatively and
using his executive authority to
665
00:34:17,800 --> 00:34:20,967
grow the economy and create jobs
-- he is overwhelmingly focused
666
00:34:20,967 --> 00:34:22,533
on that task and
not on campaigning.
667
00:34:22,533 --> 00:34:24,400
The Press:
How much time is he focused on
the campaign on a given day?
668
00:34:24,400 --> 00:34:26,333
Mr. Carney:
On a given day?
669
00:34:26,333 --> 00:34:27,367
I can't do it on a given day.
670
00:34:27,367 --> 00:34:31,300
I would say on a given week
about 5 percent of his time.
671
00:34:31,300 --> 00:34:32,934
The Press:
Question about Pakistan?
672
00:34:32,934 --> 00:34:35,900
Mr. Carney:
Let me get to Stephen,
who's patiently --
673
00:34:35,900 --> 00:34:38,734
The Press:
What does the administration
think about Russia's statement
674
00:34:38,734 --> 00:34:41,799
that it's time for an end
to ultimatums to Syria?
675
00:34:41,800 --> 00:34:46,767
And it certainly seems like
Russia is acting directly
676
00:34:46,766 --> 00:34:49,100
against the U.S. and Arab
League bid to further
677
00:34:49,100 --> 00:34:51,866
isolate Damascus.
678
00:34:51,867 --> 00:34:55,133
Mr. Carney:
Well, I would say
a couple of things.
679
00:34:55,132 --> 00:35:01,700
One, as I noted yesterday,
the chronology here,
680
00:35:03,767 --> 00:35:07,200
with regards to Syria, I think
tells a very significant story
681
00:35:07,200 --> 00:35:14,933
about growing international
consensus that the Assad regime
682
00:35:14,934 --> 00:35:20,734
has behaved reprehensively
-- reprehensibly, rather.
683
00:35:20,734 --> 00:35:25,000
It has perpetrated gross
violations of human rights
684
00:35:25,000 --> 00:35:26,000
against its own citizens.
685
00:35:26,000 --> 00:35:30,667
It has used excessive
violence and force
686
00:35:30,667 --> 00:35:32,165
against its own citizens.
687
00:35:32,166 --> 00:35:35,667
There is broad international
consensus around that idea,
688
00:35:35,667 --> 00:35:38,734
and that is why you see so much
pressure being brought to bear,
689
00:35:38,734 --> 00:35:40,933
not just by the United States,
not just by Western nations,
690
00:35:40,934 --> 00:35:44,333
but also by nations
in the region.
691
00:35:44,333 --> 00:35:48,433
So I think that's
an important point.
692
00:35:48,433 --> 00:35:53,567
We have an important
relationship with Russia
693
00:35:53,567 --> 00:35:56,033
that encompasses
a lot of issues.
694
00:35:56,033 --> 00:35:58,299
We don't agree with
Russia on every issue,
695
00:35:58,300 --> 00:36:01,633
but we certainly have agreed on
many and have made significant
696
00:36:01,633 --> 00:36:06,667
progress as a result of the
agreement that we do have.
697
00:36:06,667 --> 00:36:10,667
The Press:
Is there any concern that in
recent weeks Russia has become
698
00:36:10,667 --> 00:36:14,165
-- perhaps since the transfer
of power was kind of muted,
699
00:36:14,166 --> 00:36:15,867
seems to have become a little
bit more hawkish on the
700
00:36:15,867 --> 00:36:18,033
international stage?
701
00:36:18,033 --> 00:36:23,734
Mr. Carney:
Well, I would simply stand
back and take note of the fact,
702
00:36:23,734 --> 00:36:29,467
with regard to Iran -- subject
we were just discussing -- that
703
00:36:29,467 --> 00:36:34,433
in the bilateral meetings the
President had with President
704
00:36:34,433 --> 00:36:40,533
Medvedev, there was no
debate about Iran's behavior.
705
00:36:40,533 --> 00:36:43,100
There was no disagreement,
rather, about Iran's behavior.
706
00:36:43,100 --> 00:36:47,066
And you noticed that
in the wake of that,
707
00:36:47,066 --> 00:36:51,366
when there was a vote at
the IAEA Board of Governors,
708
00:36:51,367 --> 00:36:55,266
that there was a great
sweeping consensus in
709
00:36:55,266 --> 00:36:57,300
support of that vote.
710
00:36:57,300 --> 00:37:00,967
I think that, again,
we have an important
711
00:37:00,967 --> 00:37:02,600
relationship with Russia.
712
00:37:02,600 --> 00:37:06,567
We have a number of
issues that we agree on,
713
00:37:06,567 --> 00:37:08,467
and obviously we don't
agree on everything.
714
00:37:08,467 --> 00:37:10,300
Jon-Christopher. The last one.
715
00:37:10,300 --> 00:37:14,333
The Press:
Does the decision from Pakistan
to skip the Afghan conference in
716
00:37:14,333 --> 00:37:17,266
Bonn, Germany, on December 5th
trigger any concerns from this
717
00:37:17,266 --> 00:37:20,467
White House that Pakistan
is withdrawing from all
718
00:37:20,467 --> 00:37:22,900
international efforts to
stabilize the region in
719
00:37:22,900 --> 00:37:27,000
Afghanistan before and after
the troop withdrawal on 2014?
720
00:37:27,000 --> 00:37:28,700
Mr. Carney:
Well, I appreciate the question.
721
00:37:28,700 --> 00:37:31,799
We certainly urge Pakistan to
participate in this conference.
722
00:37:31,800 --> 00:37:36,166
It's very important for
the future of Afghanistan.
723
00:37:36,166 --> 00:37:39,133
Pakistan, obviously, will play
an important role in the future
724
00:37:39,133 --> 00:37:41,767
of Afghanistan, and we
urge them to participate
725
00:37:41,767 --> 00:37:42,767
in the conference.
726
00:37:42,767 --> 00:37:43,332
Thank you.
