Friday, February 26, 2010

EMBARGOED: Weekly Address: President Obama Says Washington Must Use This Opportunity to Enact Health Reform

THE WHITE HOUSE
Office of the Press Secretary
______________________________________________________________________________
EMBARGOED UNTIL 6:00 AM ET, SATURDAY, February 27, 2010

WEEKLY ADDRESS: President Obama Says Washington Must Use This Opportunity to Enact Health Reform

 

WASHINGTON – In his weekly address, President Barack Obama said that the nation cannot lose the current opportunity to finally enact meaningful health care reform.  At Thursday’s meeting on reform, both sides were able to find several areas of agreement, but there were some differences.  While the President is willing and eager to move forward with members of Congress from both parties, American families and businesses cannot afford to wait another generation for reform.

 

The audio and video will be available online at www.whitehouse.gov at 6:00 am ET, Saturday, February 27, 2010.

 

Remarks of President Barack Obama

As Prepared for Delivery

Weekly Address

February 27, 2010

 

As the Winter Olympics draw to a close this weekend, I just want to take a minute to congratulate all the athletes who competed in these games.  And I especially want to say how proud I am of all the American men and women have achieved over the last few weeks. 

 

Whether it was the men’s hockey team’s stunning upset of the Canadians on their way to the gold-medal game, Lindsey Vonn’s heroic gold-medal comeback from a shin injury, or Apolo Ohno becoming the most decorated American winter Olympian of all time, you can’t help but be inspired by the sheer grit and athletic prowess on display in Vancouver.

 

And it’s not just the medal count that’s inspiring – though we’ve certainly done great on that score.  What’s truly inspiring is the character of the men and women who have won those medals.  The sacrifices they’ve made.  The integrity they’ve shown.  The indomitable Olympic spirit that says no matter who you are or where you come from or what difficulties you may face, you can work hard and train hard and still triumph in the end.  That is why we watch.  That is why we cheer.  That is why in the middle of an extremely challenging time for America, we’ve been able to come together as one nation for a few weeks in February and swell with pride at what our citizens have achieved. 

 

Now, when it comes to meeting the larger challenges we face as a nation, I realize that finding this unity is easier said than done – especially in Washington.  But if we want to compete on the world stage as well as we’ve competed in the world’s games, we need to find common ground.  We need to move past the bickering and the game-playing that holds us back and blocks progress for the American people. 

 

We know it’s possible to do this.  And we were reminded of that last week when Democrats and Republicans in the Senate came together to pass a jobs bill that will give small businesses tax credits to hire more workers.  We also saw it when Democrats and Republicans in the House came together to pass a bill that will force insurance companies to abide by common-sense rules that prevent price-fixing and other practices that drive up health care costs. 

 

We need that same spirit of cooperation and bipartisanship when it comes to finally passing reform that will bring down the cost of health care and give Americans more control over their insurance.  On Thursday, we brought both parties together for a frank and productive discussion about this issue.  In that discussion, we heard many areas of agreement.  Both sides agreed that the rising cost of health care is a serious problem that plagues families, small businesses, and our federal budget.  Many on both sides agreed that we should give small businesses and individuals the ability to participate in a new insurance marketplace – which members of Congress would also use – that would allow them to pool their purchasing power and get a better deal from insurance companies.  And I heard some ideas from our Republican friends that I believe are very worthy of consideration. 

 

But still, there were differences.  We disagreed over whether insurance companies should be held accountable when they deny people care or arbitrarily raise premiums.  I believe they should.  We disagreed over giving tax credits to small businesses and individuals that would make health care affordable for those who don’t have it.  This would be the largest middle class tax cut for health care in history, and I believe we should do it.  And while we agreed that Americans with pre-existing conditions should be able to get coverage, we disagreed on how to do that. 

 

Some of these disagreements we may be able to resolve.  Some we may not.  And no final bill will include everything that everyone wants.  That’s what compromise is.  I said at the end of Thursday’s summit that I am eager and willing to move forward with members of both parties on health care if the other side is serious about coming together to resolve our differences and get this done.  But I also believe that we cannot lose the opportunity to meet this challenge.  The tens of millions of men and women who cannot afford their health insurance cannot wait another generation for us to act.  Small businesses cannot wait.  Americans with pre-existing conditions cannot wait.  State and federal budgets cannot sustain these rising costs. 

 

It is time for us to come together.  It is time for us to act.  It is time for those of us in Washington to live up to our responsibilities to the American people and to future generations.  So let’s get this done. 

 

Thanks for listening. 

 

Wednesday, February 24, 2010

EMBARGOED: Remarks of the President to the Business Roundtable

THE WHITE HOUSE

Office of the Press Secretary

_______________________________________________________________________________________

EMBARGOED UNTIL DELIVERY

February 24, 2010

 

Remarks of President Barack Obama – As Prepared for Delivery

Speech to the Business Roundtable

Wednesday, February 24, 2009

Washington, DC

 

It is great to be back here with the men and women of the Business Roundtable.  Over the last year, we have worked together on a number of issues – from economic recovery and tax policy to education and health care.  And more often than not, we’ve found common ground.

 

This is important, because we meet at a time of great economic anxiety and sharp political divisions.  We are still emerging from the worst economic crisis since the Great Depression.  Eight million Americans have lost their jobs over the last two years.  Home values in too many parts of the country have plummeted.  Too many businesses are still reluctant to invest and expand. 

 

What’s more, this recession follows what some have called a “lost decade” – a decade in which the average family income fell while the costs of health care and tuition skyrocketed; a decade in which a continued erosion of America’s manufacturing base hollowed out many communities and put too many good jobs out of reach.

 

No wonder, then, people are frustrated with both business and government.  They’re angry at a financial sector that took exorbitant risks in pursuit of short-term profits, and they’re angry at a government that failed to catch the problem in time.  They’re angry at the price they paid to prevent a financial meltdown they didn’t cause, and they’re angry that recovery in their own lives seems to be lagging the recovery of bank profitability.  They’re angry at the lobbyists who use their influence to put their clients’ special interests ahead of the public interest.  And although both parties are predictably scrambling to align themselves with people’s frustrations, neither the usual answers from the left or right seem to inspire much confidence. 

 

So we have big challenges before us.  And I think all of us know that we cannot meet them by returning to the pre-crisis status quo – an economy too dependent on a housing bubble, consumer debt, financial speculation, and growing deficits.  That’s not sustainable for American workers, and it’s not sustainable for American businesses. 

 

Instead, we need to build an economy where we borrow less and produce more.  We need an economy where we generate more jobs here at home and send more products overseas.  We need to invest and nurture the industries of the future, and we need to train our workers to compete for those jobs.

 

Nations around the world, from Asia to Europe, have already realized this.  They’re putting more emphasis on math and science.  They’re building high-speed railroads and expanding broadband access.  They’re making serious investments in clean energy because they want those jobs. 

 

These countries know what’s required to compete in the 21st century.  But so do we.  And as I said in the State of the Union, I do not accept second place for the United States of America. 

 

We did not achieve global leadership in the last century by luck or happenstance.  We earned it by working together to define our own destiny and seize the future.  And to maintain our leadership in this new century, we must summon that same resolve.

 

A thriving, competitive America is within our reach.  But only if we move forward as one nation; only if we move past the old debates and crippling divides between left and right; business and labor; private enterprise and the public sector.  Whatever differences we have in this country, all of us have a stake in meeting the same goal:  an America in which a growing prosperity is shared widely by its people. 

 

So today I want to spend most of my time talking about the specific steps we need to take to build this more competitive America.   But before I do, I want to talk about the relationship between business and government in promoting economic growth. 

 

Contrary to the claims of some of my critics, I am an ardent believer in the free market.  I believe businesses like yours are the engines of economic growth in this country.  You create the jobs.  You develop new products and cutting-edge technologies.  And you create the supply chains that make it possible for smaller businesses to open their doors.  So I want everyone in this room to succeed.  I want your shareholders to do well, and I want your workers to do well.  Because I firmly believe that America’s success in large part depends on your success. 

 

But I also believe this:  government has a vital, if limited, role to play in fostering sustained economic growth.  Throughout our history, it has done so in three ways.

 

First, government has set up basic rules of the marketplace – from the enforcement of contracts and managing the money supply to maintaining airline safety standards and creating federal deposit insurance.  On balance, these rules have been good for business, not bad.  For they ensure honest competition, fair dealing, and a level playing field.

 

Second, only government can make those investments in common goods that serve the general welfare but are too expensive for any individual or firm to buy on their own.  Our Armed Forces is the most obvious example.  But government has also built infrastructure – roads and ports; railways and highways that enabled commerce and spurred entire industries.  Government has invested in basic research that led to new crop yields for farmers and the Internet.  Government has invested in our people, through land grant colleges and the GI Bill. 

 

Finally, government has provided a social safety net to guarantee a basic level of security for all of our citizens.  This last role has obviously been a source of great controversy over the last several decades.  But I think most Americans and business leaders would agree that programs like Social Security, Medicare, Medicaid and unemployment insurance have not only saved millions from poverty; they have helped secure broad-based consensus that is so critical to a functioning market economy.

 

The Business Roundtable has always understood that in each of these instances, government hasn’t stepped in to supplant private enterprise, but to catalyze it – to create the conditions for entrepreneurs and new businesses to adapt and thrive. 

 

But I take the time to make these points because we have arrived at a juncture in our politics where reasonable efforts to update our regulations, or make basic investments in our future, are too often greeted with cries of “government takeover” or even “socialism.” 

 

Not only does that kind of rhetoric deny our history, but it prevents us from asking hard questions about the right balance between the private and public sectors.  Too little investment in a competitive infrastructure or education system and we risk falling behind countries that are making these investments today.  On the other hand, if we just throw money at poorly-planned projects or failing schools, we will remain in debt to those same countries for decades to come.  If we do not pass financial reform, we can expect more crises in the future.  But if we design the new rules carelessly, they could choke off the supply of capital to businesses and families.  If we allow our safety net to be weakened, or lose a sense of fairness in our tax code, we can expect more anger and frustration from citizens across the political spectrum; at the same time, if an exploding entitlement state is gobbling up more and more of our tax dollars, there is no way we will retain our competitive edge. 

 

Rather than hurling accusations about big government liberals or mean-spirited conservatives, we will have to answer these tough questions.  And getting this balance right has less to do with big government or small government than it does smart government.  It’s not about being anti-business or pro-government; it’s about being pro-growth and pro-jobs.  And while there are no simple formulas or bumper-sticker slogans, let me discuss a few specific areas where we have to get this right.

 

Our first and most immediate task is to complete the economic recovery by taking additional steps to bolster demand and keep credit flowing.  Along with our efforts to unfreeze credit and stabilize the housing market, the Recovery Act helped do this, and it’s one of the main reasons our economy has gone from shrinking by 6% to growing by nearly 6%.  But we need to do more.  We should make it easier for small businesses to get loans and give them a tax credit for hiring new workers or raising wages.  We should invest in infrastructure projects that lead to new jobs in the construction industry and other hard-hit businesses.  And we should provide a tax incentive for large businesses like yours to invest in new plants and equipment.  That would make a difference now.  

 

We need businesses to support these efforts.  The Business Roundtable supported the Recovery Act, and for that I’m grateful.  But I think one of the reasons businesses haven’t been as vocal about their support is a belief that extraordinary measures like the Recovery Act or our financial stability plan represent a lasting increase in government intervention.  Let me assure you – they do not. 

 

One year ago, we were looking at the possible end of General Motors.  Today, GM has increased production and is paying us back ahead of schedule.  One year ago, there was a chance we would lose most of the $700 billion we spent to rescue the banks.  Today, most of that money has been repaid.  The financial fee we’ve proposed is simply designed to recover the rest and close the books on government’s involvement.  

 

And let me say a word here about compensation.  Most Americans – including myself – don’t begrudge reasonable rewards for a job well done.  What has outraged people are the outsized bonuses at firms that so recently required massive public assistance.  Once that money is fully repaid, I don’t believe it’s appropriate for the government to be in the business of setting compensation levels.  What I do believe is that shareholders should have a say in the compensation packages given to top executives, and that those packages should be based on long-term performance instead of short-term profits.  That’s particularly important in the financial industry, where reckless risks in pursuit of short-term gains helped create a crisis that engulfed the world economy.   

 

So the steps we took last year were about saving the economy from collapse, not expanding government’s reach into the economy.  The jobs bills now working through Congress is similarly designed to be targeted and temporary, and I am pleased that a few hours ago, the Senate just passed a series of tax cuts for small businesses that hire more workers.  This is an important step forward in putting more Americans back to work as soon as possible. 

 

But the larger question is this:  beyond the immediate requirements of recovery, how do we lay the foundation for a more competitive America?

 

I believe it starts with investments in innovation, education, and a 21st century infrastructure.  To build the infrastructure of tomorrow, we’re investing in expanded broadband access, health information technology, clean energy facilities, and the first high-speed rail network in America. 

 

To spur the discovery of services, products, and industries we have yet to imagine, we are devoting more than three percent of our GDP to research and development – an amount that exceeds the level achieved at the height of the Space Race.  We’ve also proposed making the research and experimentation tax credit permanent – a tax credit that helps companies like yours afford the high costs of developing new technologies and new products. 

 

To train our workers for the jobs of tomorrow, we’ve made education reform a top priority in this administration.  Last year, we launched a national competition to improve our schools based on a simple idea:  instead of funding the status quo, we only invest in reform – reform that raises student achievement, inspires students to excel in math and science, and turns around failing schools that steal the future of too many young Americans.  I just met with the nation’s governors this week, and education reform is one of those rare issues where both Democrats and Republicans are enthusiastic. 

 

And to achieve my goal of ensuring America again has the highest proportion of college graduates in the world by 2020, I’m urging the Senate to pass a bill that will make college more affordable by ending the unnecessary taxpayer-subsidies that go to financial intermediaries for student loans.   It’s a bill that will also revitalize our community colleges, which this organization has recognized are a career pathway to the children of so many working families.  And just as government needs to support young people eager to learn, I’m pleased to see that the business community has already begun to bet on the next generation of American talent.  Just yesterday, seventeen high-tech companies announced plans to hire over 10,000 recent college graduates this year. 

 

Finally, we’re investing in innovation that will lead to a more efficient, affordable, and consumer-friendly federal government.  Many of you have harnessed new technologies to build thriving businesses and provide better services to your customers.  There’s no reason government shouldn’t do the same, and give taxpayers a better bang for their buck. 

 

With new technology, we’re creating a single electronic medical record for our men and women in uniform that will follow them from the day they enlist until they day they are laid to rest.  We’re cutting down the time it takes to get a patent approved by cutting out unnecessary paperwork and modernizing the process.  We’re working to give people the chance to go online and book an appointment at the Social Security office or check the status of their citizenship application – services countless businesses already provide.

 

In all of these areas – infrastructure, research, education, and government reform – we are making investments that will lead to new products and services that will help America compete on the world stage. 

 

Of course, winning that competition also means we need to export more of our goods and services to other nations – something that supports more jobs here in America.  Unfortunately, the federal government has not done a good enough job advocating for companies’ exports abroad.

 

That’s why in the State of the Union, I set a goal of doubling our exports over the next five years, an increase that will support two million jobs.  To help meet this goal, my Secretary of Commerce, Gary Locke, recently announced that we’re launching a National Export Initiative where the federal government will significantly ramp up its advocacy on behalf of U.S. exporters.  We are substantially expanding the trade financing available to exporters, including small and medium-sized companies.  While always keeping our security needs in mind, we will reform export controls to eliminate unnecessary barriers.  And we will pursue a more strategic and aggressive effort to open up new markets for our goods. 

 

Now, I know that trade policy has been a longstanding divide between business and labor; Democrats and Republicans.  But to those who would reflexively support every trade deal, I would say that our competitors have to play fair and our agreements have to be enforced.  We simply cannot cede more jobs or markets to unfair trade practices.  And to those who would reflexively oppose every trade agreement, they need to know that if America sits on the sidelines while other nations sign trade deals, we will lose the chance to create jobs on our shores.  Other countries, whether China or Germany or Brazil, have been able to align the interests of workers, businesses, and government around trade agreements that open new markets and create new jobs.  We must do the same. 

 

That’s why we launched the Trans Pacific Partnership to strengthen our trade relations with Asia, the fastest growing market in the world.  That’s why we will work to resolve outstanding issues so that we can move forward on trade agreements with key partners like South Korea, Panama, and Colombia.  And that’s why we will try to conclude a Doha trade agreement – not just any agreement, but one that creates real access to key global markets. 

 

A competitive America is also an America that finally has a smart energy policy.  We know there is no silver bullet here – that to reduce our dependence on oil and the damage caused by climate change, we need more production, more efficiency, and more incentives for clean energy. 

 

Already, the Recovery Act has allowed us to jumpstart the clean energy industry in America – an investment that will lead to 720,000 clean energy jobs by 2012.  To take just one example, the United States used to make less than 2% of the world’s advanced batteries for hybrid cars.  By 2015, we’ll have enough capacity to make up to 40% of these batteries.  

 

We’ve also launched an unprecedented effort to make our homes and businesses more energy efficient.  We’ve announced loan guarantees to break ground on America’s first new nuclear plant in nearly three decades.  We are supporting three of the largest solar plants in the world.  And I’ve said that we’re willing to make tough decisions about opening new offshore areas for oil and gas development.   

 

But to truly transition to a clean energy economy, I’ve also said that we need to put a price on carbon pollution.   Many businesses have embraced this approach – including some here today.  Still, I am sympathetic to those companies that face significant transition costs, and I want to work with organizations like this to help with those costs and get our policies right. 

 

What we can’t do is stand still.  The only certainty of the status quo is that the price and supply of oil will become increasingly volatile; that the use of fossil fuels will wreak havoc on weather patterns and air quality.  But if we decide now that we’re putting a price on this pollution in a few years, it will give businesses the certainty of knowing they have time to plan and transition.  This country has to move towards a clean energy economy.  That’s where the world is going.  And that’s how America will remain competitive and strong in the 21st century.  

 

We’ll also be more competitive if we address those costs and risks that are preventing our economy from reaching its full potential – outdated financial regulations, crushing health care costs, and a growing deficit.

 

Right now, we have a financial system with the same vulnerabilities that it had when this crisis began.  As I said in the State of the Union, my goal is not to punish Wall Street.  I believe that most folks in the financial sector are looking to make money in an honest, transparent way. 

 

But if there aren’t rules in place to guard against the recklessness of a few, and they are allowed to exploit consumers and take on excessive risk, it starts a race to the bottom that results in all of us losing. 

 

That’s what we need to change.  We cannot repeat the mistakes of the past.  We cannot allow another AIG or another Lehmann to happen again.  We can’t allow financial institutions, including those that take your deposits, to make gambles that threaten the whole economy.  We must ensure consolidated supervision of all institutions that could pose a risk to the system.  We must close loopholes that allow financial firms to evade oversight and circumvent rules of the road.  And we need robust consumer and investor protections.  

 

I ask the members of the Business Roundtable to support these efforts.  The lobbyists up on the Hill right now are trying to kill reform by claiming that it would undermine businesses outside the financial sector.  That couldn’t be further from the truth.  This is about putting in place rules that encourage drive and innovation instead of short-cuts and abuse.  And those are rules that will benefit everyone.  

 

Another undeniable drag on our economy is the cost of health care.  Now, I appreciate the willingness of the Business Roundtable to work with us on health care reform, and when you’ve had concerns about specific measures or policies, we’ve listened and in some cases, made changes.

 

Still, I know there are many who have been skeptical of our reform efforts.  In the wake of the extraordinary measures we took to rescue our economy, it’s been an easy political tactic to characterize any effort at health reform as a “big government takeover.” 

 

But the truth is just the opposite.  We have not called for the elimination of private insurance or our employer-based system.  What we’ve called for is an insurance exchange where individuals and small businesses can pool together in order to get a better deal from insurance companies.  In return for getting more customers, we would require insurance companies to stop discriminating based on preexisting conditions or arbitrarily jacking up premiums.  We’ve also incorporated almost every serious idea from across the political spectrum about how to contain the rising cost of health care.  As a result, our proposal would reduce the deficit by as much as $1 trillion over the next two decades.  

 

These steps would provide more certainty for businesses, not less.  Because there is no certainty in a future where premiums rise without limit; a future where companies are forced to drop coverage or cutback elsewhere.  That can’t be good for business.  Our proposal contains good ideas from Democrats, Republicans, and experts from across the spectrum.  And tomorrow, I look forward to a good exchange of ideas at the Blair House.  I hope everyone comes with a shared desire to solve this challenge, and I hope the Roundtable supports our efforts to finally pass this reform.   

 

Now, one of benefits of health care reform is that by bringing down the cost of Medicare and Medicaid, it would significantly reduce our deficit.  I know this an issue of great concern to many of you.  Believe me – it’s been on my mind too. 

 

I walked into office facing a massive deficit, most of which was the result of not paying for two wars, two tax cuts, and an expensive prescription drug program.  And the lost revenue from the recession put us in an even deeper hole. 

 

The steps we took to save the economy from depression last year have necessarily added to the deficit – about $1 trillion, compared to the $8 trillion we inherited.  But I’ve also said that we intend to pay for what we added.  My administration is doing what families and businesses all across the country are doing during these difficult times:  we’re tightening our belts and making tough decisions.  We’re investing only in what we need and sacrificing what we can do without.  We’ve gone line by line through the federal budget, and identified more than 120 programs for elimination – a total of $20 billion in savings for next year.  And starting in 2011, I’ve proposed a freeze on non-security, discretionary government spending for three years – something that was never enacted in the last administration. 

 

I’m also grateful that Congress responded to my request and restored a simple budgeting rule that every family and business understands:  Pay-as-you-go.  And I’ve established a bipartisan, Fiscal Commission that will provide a specific set of solutions by the fall to deal with our medium and long-term deficit.

 

Of course, as many of you have reminded us, budget cuts aren’t the only step we’ve proposed this year to help bring down the deficit.  Which brings me to everybody’s favorite topic:  taxes.  You’ll notice I saved the best for last. 

 

I want to set the record straight on this issue, because it’s been one of the largest sources of tension between our administration and the business community. 

 

During the campaign, I promised a tax cut for 95% of working Americans.  I have kept that promise.  We’ve provided over $150 billion in tax cuts to small businesses and families.  We haven’t raised anyone’s income taxes by a single dime.  This year, I expect to sign into law another $70 billion worth of business tax cuts for 2010 and 2011 – a more than ten percent cut in corporate taxes.  

 

But I also made two other promises during the campaign.  I promised that folks making over $250,000 a year would go back to paying the tax rates they did in the 1990s – a time when businesses did well and many millionaires were made.  I’m not doing this to be punitive – I’m doing it because at a time of two wars and massive deficits, I just can’t justify continuing to give billionaires massive tax cuts.   

 

The other promise I made during the campaign was to ensure that our tax code doesn’t provide relief and a competitive advantage to companies that move jobs and investment outside of the United States.  Now, a number of you have made the point that we shouldn’t discourage anyone from keeping headquarters and operations in America and that we have to balance your need to compete overseas. So after listening to you, we’ve made some modifications in our proposal.  But as president of the United States, my interest is to reward – or at least not disadvantage – companies who are creating more jobs and doing more business within the borders of this country.  That’s not anti-business, it’s pro-America, and I don’t apologize for it.   

 

On all of these issues – from education to health care to taxes – my first question can’t be “Is this good for business?” or “Is this good for labor?” It can’t be “Is this good politics?” or “Will this tag me as liberal or conservative?” It has to be, “Is this good for America?  Does it help us compete?  Does it grow our economy?  Does it create jobs for the middle-class and those trying to join it?   That’s my job as President. 

 

But what I also know is that government can’t meet all of these challenges on its own.  When it comes to education, we need parents who are willing to read to their children and help with their homework.  When it comes to energy, we need consumers who are willing to buy more efficient appliances and automobiles, and conserve where they can.  And when comes to an economy that works for every American, we need business leaders like you who understand that private enterprise comes with a public responsibility. 

 

Andy Grove, who most of you know was the CEO of Intel, once gave an interview where he said, “Those of us in business have two obligations in my opinion.  The one that’s un-debatable is that we have a fiduciary responsibility to…the shareholders who put us in our place...There is another obligation that I feel personally, given that everything I have achieved in my career, and a lot of what Intel has achieved in its career, were made possible by a climate of democracy, an economic climate and investment climate provided by our domicile, the United States.” 

 

It is undoubtedly in the short-term interest of individual corporations to pay less in taxes and deal with fewer regulations.  But it is in the long-term interest of all companies to do business in a nation that maintains the world’s best research facilities and universities; a nation with public schools that graduate highly-skilled, highly-educated workers; a nation with functioning railways and airports; a nation that is not dragged down by crushing debt. 

 

If you pay your workers a salary they can raise a family on, they will feel more loyalty to your company.  If we have rules of the road that guard against recklessness in our financial system, it will protect the interests of everyone from the wealthiest CEOs to the lowest-paid workers.  If we give a child in the Bronx a world-class education, it doesn’t just benefit that child, it benefits the company that might hire him down the road and the country he lives in.     

 

To put it simply, we are all in this together.  We face some very big and difficult challenges as a nation right now.  And the only way we’ll get through them – the only way we ever have – is if we align the interests of workers and businesses and government around a common purpose; if we all pick up an oar and start rowing in the same direction. 

 

At a time of such economic angst, it is tempting, and perhaps easier, to turn against one another, and find scapegoats to blame.  Politicians can rail against Wall Street or against each other.  Businesses can fault Capitol Hill.  And all of it makes for easy talking points and good political theater.  But it doesn’t solve our problems.  It doesn’t move us forward.  It only traps us in the same debates and divides that have held us back for far too long. 

 

We can’t afford that kind of politics anymore.  Not now.  We know the way forward.  We know what the future can be.  And I am confident we can get there.  I am confident because we have the hardest-working, most productive citizens in the world.  I am confident because our universities and research facilities are second to none.  And I am confident because of the caliber of the leaders and businesses represented in this room.

 

We will not always agree on every issue or support the same policies.  But I will never stop listening to your concerns and your ideas.  Because we are in this together.  All of us.  And whether we rise or fall as nation does not depend on some economic forces beyond our control.  It depends on us – on the ingenuity of our entrepreneurs, the determination of our workers, and the strength of our people.  I will always believe in that strength, and remain hopeful about our future.  Thank you.    

 

 

 

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Monday, February 22, 2010

EMBARGOED for 10:00 AM -- Summary of the President's Proposal

**Please find attached a detailed summary of President Obama’s reform proposal, EMBARGOED for 10:00 AM. Today’s briefing call will begin at 8:30, also embargoed for 10:00 AM.

 

THE WHITE HOUSE

 

Office of the Press Secretary

_____________________________________________________________________________

For Immediate Release                           February 21, 2010

 

REMINDER: EMBARGOED CONFERENCE CALL TO DISCUSS PRESIDENT OBAMA’S HEALTH REFORM PROPOSAL

 

This morning at 8:30 AM, Administration officials will hold a conference call to discuss President Obama’s health insurance reform proposal, which will be posted on the White House website at 10:00 AM. The call will be on the record but embargoed until the proposal posts.

 

What:     Conference call on the President’s health reform proposal

 

When:     TODAY, February 22, at 8:30 AM EST

 

Embargo:  Embargoed until 10:00 AM

 

Dial-in:  (800) 288-8967 (Participants are encouraged to dial in a few minutes early)

 

          

###

 

Sunday, February 21, 2010

TOMORROW: Embargoed Conference Call to Discuss President Obama's Health Reform Proposal

THE WHITE HOUSE

 

Office of the Press Secretary

_____________________________________________________________________________

For Immediate Release                           February 21, 2010

 

TOMORROW: EMBARGOED CONFERENCE CALL TO DISCUSS PRESIDENT OBAMA’S HEALTH REFORM PROPOSAL

 

Monday morning at 8:30 AM, Administration officials will hold a conference call to discuss President Obama’s health insurance reform proposal, which will be posted on the White House website at 10:00 AM. The call will be on the record but embargoed until the bill posts.

 

What:     Conference call on the President’s health reform proposal

 

When:     Monday, February 22, at 8:30 AM EST

 

Embargo:  Embargoed until 10:00 AM

 

Dial-in:  (800) 288-8967 (Participants are encouraged to dial in a few minutes early)

 

          

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Friday, February 19, 2010

EMBARGOED: Weekly Address: President Obama Says it is Time to Move Forward on Health Care Reform

THE WHITE HOUSE
Office of the Press Secretary
______________________________________________________________________________
EMBARGOED UNTIL 6:00 AM ET, SATURDAY, February 20, 2010

WEEKLY ADDRESS: President Obama Says it is Time to Move Forward on Health Care Reform

 

WASHINGTON – President Barack Obama used his weekly address to call on Democratic and Republican leaders to attend next week’s health care meeting in good faith to find reforms that work for American families and small businesses.  With several health insurance companies announcing steep hikes in their rates – from 10 to over 30 percent – it is clear that the status quo, while good for the insurance industry, is bad for the American people.  After a year of exhaustive debate, it is time to move forward on reform. 

 

The full audio of the address is HERE. The video can be viewed online at www.whitehouse.gov.

 

Remarks of President Barack Obama

Weekly Address

February 20, 2010

 

The other week, men and women across California opened up their mailboxes to find a letter from Anthem Blue Cross. The news inside was jaw-dropping. Anthem was alerting almost a million of its customers that it would be raising premiums by an average of 25 percent, with about a quarter of folks likely to see their rates go up by anywhere from 35 to 39 percent.

 

Now, after their announcement stirred public outcry, Anthem agreed to delay their rate hike until May 1st while the situation is reviewed by the state of California. But it’s not just Californians who are being hit by rate hikes. In Kansas, one insurance company raised premiums by 10 to 20 percent only after asking to raise them by 20 to 30 percent. Last year, Michigan Blue Cross Blue Shield raised rates by 22 percent after asking to raise them by up to 56 percent. And in Maine, Anthem is asking to raise rates for some folks by about 23 percent.

 

The bottom line is that the status quo is good for the insurance industry and bad for America. Over the past year, as families and small business owners have struggled to pay soaring health care costs, and as millions of Americans lost their coverage, the five largest insurers made record profits of over $12 billion.

 

And as bad as things are today, they’ll only get worse if we fail to act. We’ll see more and more Americans go without the coverage they need. We’ll see exploding premiums and out-of-pocket costs burn through more and more family budgets. We’ll see more and more small businesses scale back benefits, drop coverage, or close down because they can’t keep up with rising rates. And in time, we’ll see these skyrocketing health care costs become the single largest driver of our federal deficits.

 

That’s what the future is on track to look like. But it’s not what the future has to look like. The question, then, is whether we will do what it takes, all of us – Democrats and Republicans – to build a better future for ourselves, our children, and our country.

 

That’s why, next week, I am inviting members of both parties to take part in a bipartisan health care meeting, and I hope they come in a spirit of good faith. I don’t want to see this meeting turn into political theater, with each side simply reciting talking points and trying to score political points. Instead, I ask members of both parties to seek common ground in an effort to solve a problem that’s been with us for generations.

 

It’s in that spirit that I have sought out and supported Republican ideas on reform from the very beginning. Some Republicans want to allow Americans to purchase insurance from a company in another state to give people more choices and bring down costs. Some Republicans have also suggested giving small businesses the power to pool together and offer health care at lower prices, just as big companies and labor unions do. I think both of these are good ideas – so long as we pursue them in a way that protects benefits, protects patients, and protects the American people. I hope Democrats and Republicans can come together next week around these and other ideas.

 

To members of Congress, I would simply say this. We know the American people want us to reform our health insurance system. We know where the broad areas of agreement are. And we know where the sources of disagreement lie. After debating this issue exhaustively for a year, let’s move forward together. Next week is our chance to finally reform our health insurance system so it works for families and small businesses. It’s our chance to finally give Americans the peace of mind of knowing that they’ll be able to have affordable coverage when they need it most.

 

What’s being tested here is not just our ability to solve this one problem, but our ability to solve any problem. Right now, Americans are understandably despairing about whether partisanship and the undue influence of special interests in Washington will make it impossible for us to deal with the big challenges that face our country. They want to see us focus not on scoring points, but on solving problems; not on the next election but on the next generation. That is what we can do, and that is what we must do when we come together for this bipartisan health care meeting next week. Thank you, and have a great weekend.

 

 

Thursday, February 18, 2010

EMBARGOED FACT SHEET: Help for the Hardest Hit Housing Markets

THE WHITE HOUSE

Office of the Press Secretary

_______________________________________________________________________________________

EMBARGOED UNTIL 6:00AM EST February 19, 2010

 

 

FACT SHEET: HELP FOR THE HARDEST HIT HOUSING MARKETS
President Obama to Announce Funding to Help Address Urgent Problems Facing Families in States with High Unemployment and Where Home Prices Have Fallen the Furthest

 

Today, President Obama will announce funding for innovative measures to help families in the states that have been hit the hardest by the aftermath of the housing bubble.  In each of these states, the average price for all homeowners in the state has fallen more than 20% from the peak.  Home prices across the country are beginning to stabilize since the Administration's economic policies began to take effect almost a year ago.  But the legacy of price declines, together with the effects of high unemployment, means that many working and middle-class families in these especially hard-hit areas are facing serious challenges, in many cases beyond what their families' resources can handle.

 

President Obama recognizes the challenges facing our families in the nation's housing markets, where local conditions vary considerably. The Administration is setting up an innovation fund to expand the capacity of housing finance and similar agencies in the hardest-hit areas, so that those states and localities can further respond to the most pressing problems in their communities.

 

Help for the Hardest-Hit Housing Markets (4HM)

 

·         $1.5 Billion to Work with State Housing Agencies to Innovate and Help Address the Problems Facing the Hardest-Hit Housing Markets

o   There will be a formula for allocating funding among eligible states that will be based on home price declines and unemployment.

o   HFAs must have program design approved by Treasury.

o   Programs may include:

§  Measures for unemployed homeowners;

§  Programs to assist  borrowers owing more than their home is now worth;

§  Programs that help address challenges arising from second mortgages; or

§  Other programs encouraging sustainable and affordable homeownership.

 

·         Accountability and Transparency for these Housing Programs

o   All funded program designs posted online.

o   Accountability for results – program effectiveness measured and results published online.

 

  • The program will apply to states that have suffered an average home price drop of over 20% from the peak.  State and local Housing Finance Agencies (HFAs) in each state are already familiar with the urgent challenges facing their communities and have demonstrated the ability to address these challenges.  For that reason, we will work with these HFAs to expand their capacity to help address these challenges, with $1.5 billion from the funds set aside for housing under the Emergency Economic Stabilization Act of 2008.

 

  • The HFAs will determine the priorities facing their local markets.  The plans will be under strict transparency and accountability rules.  The increase in HFA resources for these areas should provide meaningful support for families in these markets, when combined with the numerous other steps the administration has taken to address housing markets.

 

  • Funds can be used for innovation to take steps to address difficult, locally-important remaining challenges for the hardest-hit housing markets, including unemployed borrowers, underwater borrowers, and second liens.

 

  • Under this program, HFAs can submit program designs to Treasury.  To be eligible for funding, HFA program designs must meet program goals of providing meaningful support for housing in the hardest-hit markets.  Programs must meet funding requirements under EESA.  These include that the recipient of funds must be an eligible financial institution and that the funds must be used to pay for mortgage modifications or for other permitted uses under EESA.  Treasury will announce maximum state level allocations in the next two weeks, along with rules governing the submission of program designs by HFAs, and provide a period thereafter for HFAs to submit their program designs in order to receive funding. 

 

Illustrations of the Sorts of Programs that May be Funded in the States

 

Housing markets vary considerably from state to state, and often within a single state.  Housing Finance Agencies are intimately engaged already in their local housing markets, and will play the lead role in determining what sorts of programs are most appropriate to local conditions.  Three sorts of problems that may be addressed with funding are unemployed borrowers, underwater borrowers, and second liens:

 

1. Unemployed borrowers.  Since the recession began in 2008, unemployment has hit many families who own homes.  In previous times, when house prices were rising, families with unemployment could often sell their homes for more than they had paid, using the proceeds to tide them over. 

 

Today, by contrast, families in states where prices have dropped more than 20% often find themselves owing more than the house is worth in the current market.  Such homes are often difficult to sell, and families with unemployment often can't pay the current mortgage and may not have enough income to qualify for a modification.

 

In such circumstances, one use of funds would be for HFAs to begin programs to help unemployed homeowners until they have secured a new job.  HFAs can consider a variety of programs to help unemployed borrowers.

 

2. Underwater borrowers.  For states with more than 20% home price declines, a large portion of homeowners are "underwater" -- they owe more than the house is worth in the current market.  Such borrowers often find it difficult to sell their homes -- lenders may not agree to a sale that fails to pay back a mortgage in full.  HFAs may experiment with programs that would assist borrowers to negotiate with lenders to write down mortgages.

 

3. Second liens.  An important problem can arise when borrowers have a home equity line of credit or other second mortgage on their home.  In these instances, the first mortgage lender may be willing to adjust to the home price decline by modifying the loan.

 

Difficulties can emerge, however, in coordinating between the first and second mortgage lender. To smooth this coordination problem, and help assure that homeowners get an overall modification that works best, funds can be used to pay incentives to the second mortgage holders, addressing this potential obstacle to re-setting the market.

 

 

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Tuesday, February 16, 2010

EMBARGOED FOR 8 PM EST: The Vice President's Annual Report to the President on Progress Implementing the American Recovery and Reinvestment Act of 2009

 

 

THE WHITE HOUSE

Office of the Press Secretary

_______________________________________________________________________________________

EMBARGOED FOR 8:00 PM EST

February 16, 2010

The Vice President’s Annual Report to the President on Progress Implementing the American Recovery and Reinvestment Act of 2009

**Embargoed for 8:00 PM EST**

 

WASHINGTON – At tomorrow’s Economic Daily Briefing, Vice President Joe Biden will deliver to President Barack Obama his “Annual Report to the President on Progress Implementing the American Recovery and Reinvestment Act of 2009.”  The report, which summarizes Recovery Act progress to-date and lays out projections for the program in the coming months, can be viewed in full HERE.  Key excerpts from the report are below.

 

KEY EXCERPTS

 

GDP IMPACT

As ARRA funds have begun to work their way through the economy, several key indicators show that they have clearly halted an economic freefall.  In their recently released quarterly report, the Council of Economic Advisers (CEA) found that GDP had been positively impacted by ARRA:

 

“ARRA added between 2 to 3 percentage points to real GDP growth in the second quarter of 2009; between 3 and 4 percentage points in the third quarter, and between 1.5 and 3 percentage points in the fourth quarter.  This is broadly similar to those of a wide range of other analysts.”

 

Figure 1 shows the progression of GDP over the past five quarters.

 

 

 

 

 

 

 

 

 

 

Figure 1.  GDP Progression over the Past Five Quarters

 

EMPLOYMENT IMPACT

GDP is not the only indicator that shows a boost from ARRA funds.   Payroll job losses are also lessening and, ever since a peak in March of 2009, unemployment insurance claims have been generally declining.  Both these trends can be seen in Figures 2 and 3:

 

 

 

 

 

 

 

 

 

 

Figure 2 Payroll Job Losses December 2008 – Present

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Figure 3 Initial Unemployment Insurance Claims, 2007 – Present

It is no accident that we have seen the labor market improve dramatically since the passage of ARRA – abundant evidence and many different experts say it is creating millions of jobs.

***

At the end of September 2009, CEA released their first quarterly report, finding that ARRA had created or saved over 1 million jobs.  In their second quarterly report, CEA found that this positive trend continues, with ARRA having created or saved 1.5 to 2 million jobs  in the fourth quarter of 2009, as shown in Figure 4.  The Congressional Budget Office (CBO), in their latest report on the status of ARRA implementation, also found that ARRA funding has supported a comparable number of jobs – with their estimate being up to 2.4 million jobs supported.

 

 

 

 

 

 

 

 

 

Figure 4.  ARRA Jobs Created or Saved by Quarter, per CEA[1]

These jobs not only span sectors, but also span the entire country as is seen in Figure 5.

Figure 5.  Cumulative ARRA Jobs Created or Saved by State per CEA

 

PACE OF SPENDING

Though each part of the Act was designed to spend at different rates, the Act overall represents one of the largest and fastest infusions of direct funding into the economy.  Just as the Congress understood the urgency of passing the Recovery Act, so too did the Federal agencies and their partners in charge of implementing it.  In fact, Recovery Act funds have not only moved into the economy quickly, but the pace has also exceeded the Congressional Budget Office’s (CBO) original ambitious projection, as shown in Figure 8.

Part of keeping up the pace of moving funds out into the economy is tied directly to the oversight and management capabilities of the Federal agencies.  Agencies have worked diligently to move funds out the door as fast as possible, while not sacrificing the careful selection processes, monitoring, and oversight necessary to make sure that Recovery Act funds are being used in a prudent manner.  Understanding that speed in getting funds into the economy is crucial to achieving the goals of the Act, agencies, such as the Department of Defense, have reallocated funds from projects that, while worthy, are not able to execute in a timely fashion.  In other cases, agencies have realized bid savings on project costs – and have quickly reallocated those “excess” funds to new projects, allowing more projects to be started than originally projected.  For example, in August, the Department of Homeland Security was able to quickly reallocate $240 million in bid savings on current projects to new in-line baggage screening projects at ten additional airports across the country.

Figure 8 Recovery Act Spending vs. CBO Spending Projection as of September 30, 2009

WHAT’S NEXT

Looking forward, we have a clear goal to disburse (outlays + taxes) 70 percent of Recovery Act funds, or $551 billion, by September 30, 2010. We are on track to achieve this goal.

 

We have disbursed to date nearly $300 billion in outlays and taxes for an average monthly rate of about $27 billion. Of that $27 billion, $11 billion has been in the form of tax relief and $16 billion in spending. 

 

To achieve our goal for a $551 billion in disbursements by the end of September, we will need to disburse $32 billion per month going forward, a pace which we will meet or exceed. From February onwards, monthly tax relief should increase from $11 billion to $18 billion.

 

***

 

Mix of Outlays Changes in 2010, With Projects Spending Accounting for a Larger Share

Just as tax relief will play a major part in 2010 disbursements, so will spending, as outlays comprise the second and critical part to meeting the goal of disbursing 70 percent of the Act by September 30.  In the months ahead, there will be a modest uptick in the monthly outlay rate of the Act.  More importantly however, the mix in spending will shift significantly from being primarily payment driven to being more evenly matched between payments and projects.  In fact, monthly project outlays are expected to more than double compared to the 2009 average.  Since payments were the portion of the Act most quickly disbursed in 2009 to rescue the economy from freefall, 2010 payment outlays may see a slight drop off in pace.  Nevertheless, total monthly outlays will see a modest uptick which will be driven by projects.

Figure 13 Projected Outlays through June 2010

***

Building on the Successes of the First Year

The increase expected in overall outlay pace going forward, as well as in the change in mix, can be directly traced to a groundwork that was laid in the first year of the Act’s implementation.  Through the end of January, a total of $334 billion in spending had been obligated, of which $179 billion had been outlayed.  The portion of obligations made up by payments was greater than the portion made up by projects, but by less than 15 percent.  However, the split within the portion outlayed is dramatically different, with over four times as much going towards payments v. projects.  In other words, less than one fifth of outlays through January were project related outlays.  Thus, project related dollars that are already obligated and working in today’s economy will transition into significant corresponding outlays.  By the numbers, in addition to the money that is left to be obligated, there remains $112 billion in obligated project dollars that have yet to be outlayed, while by contrast, there remains only $43 billion in obligated payment dollars that have yet to be outlayed.

Figure 15.  Obligated and Outlayed Dollars to Projects and Payments, February 2009 through January 2010

Figure 16.  Obligations and Outlays in Projects and Payments, February 2009 through January 2010

Therefore, fueled largely by a strong first year performance of getting dollars awarded and projects obligated and started, the year ahead will see a capitalizing on an inventory of work that is awarded and “ready to go”.  This capitalizing explains much of the increase in outlay pace as well as the change in outlay mix that will be seen in the months ahead.

Further evidence of this lies in reports filed by a portion of Recovery Act funding recipients who, by law, report on the use of their funds every quarter.  These recipients filed reports in January detailing the status and progress made on their awards through December 31, 2009.  Despite the sizeable activity that these recipients depict, their reports tell us that the vast majority of their projects are less than half complete.  This assessment remains the same whether made in terms of project numbers or in terms of dollars as is seen in Figure 17.

 

Figure 17.  Projects and Dollars by Level of Completeness

With a strong and increasing base of awards that have been made, and with large numbers of awards that still have more than half of their work remaining to be done, the level of on-the-ground work being done by the Recovery Act will remain strong and the pace of outlays will accelerate during Fiscal Year 2010.

Signature Projects Come Online

In addition to the increase from standard infrastructure related projects, 2010 will also see work getting underway on several of the longer-term signature investments in the Recovery Act, including the recently awarded High Speed Rail, Health IT and Broadband related grants.  The table below provides some highlights on signature programs – part of the Reinvestment phase of ARRA – that are scheduled to spend out over 2010 and beyond, keeping the Recovery moving forward.

 

Agency

Program

Cost

Awarded?

Still to Obligate

Still to Outlay

Notes

HHS

Health IT

$20B

In process

$19B

$20B

Extension centers and state grants just awarded their first batches of funds, with more to come.  Beacon communities and remaining upfront portions of spend will commence awarding in the months ahead, while the remaining $20B+ in incentive payments for adopting Health IT will start in 2011.

HHS

NIH grants

$10B

In process

~$5B

~$9B

Outlays will be steadily drawn down over 2010 and 2011, with a surge in August and September when multi-year research grants and contracts experience a second infusion of funding

DOE

Smart Grid

$4.5B

Completed

$1.6B

$4.5B

Awards were made in October and, as the funds are placed under contract, awardees will start expanding operations and hiring

DOE

1705 Loan Guarantees

$4B

In process

$3.9B

$4.0B

As loans move from the conditional offer to the contract closing phases, companies will expand and create jobs

DOE

Weatherization

$5B

Completed

$0.2B

$4.5B

Most states have recently finished establishing and training a workforce, and nationwide units weatherized should number in the 10s of 1000s per month going forward

DOT

High Speed Rail

$8B

Completed

$8B

$8B

Rail corridor awards were announced on January 28th.  Now that all awards have been announced, funds will be obligated and drawn down over time.

DOC/ USDA

Broadband

$7.2B

In process

~$6.9B

~$7.2B

First awards were announced in December and January.  Rolling announcements are underway and the program expects to be fully awarded by Sept. 2010.

ED

Race to the Top

$4.3B

Not started yet

$4.3B

$4.3B

Applications have been received  in January.  Awards are expected in the spring.

 

Figure 18.  Signature ARRA Project Status

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[1] CEA: “The Economic Impact of the American Recovery and Reinvestment Act of 2009 Second Quarterly Report” http://www.whitehouse.gov/sites/default/files/microsites/100113-economic-impact-arra-second-quarterly-report.pdf