English subtitles for clip: File:3-20-09- White House Press Briefing.webm

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(Inaudible)
MR. GIBBS: I had to save

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you from your 12 min. stand up there-- Q: Thank you.

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MR. GIBBS: I'd like to extend my
offer to do that for any of you

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at your request. just kidding.

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Q: Which game where you trying to watch?

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MR GIBBS: I should start by apologizing that I've severally

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cutting into your last three minutes of the a Fridays first

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round games.

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Major I don't know if you have an announcement later on as

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to who's doing how in the pool but a it's certainly not me.

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Q: How is the (inaudible) doing in his pool?

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MR. GIBBS: He picked a couple of upsets last night but a--

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Q: (Inaudible) 16

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MR. GIBBS: oh 11 to 16.

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Its good in baseball and probably not so good in the

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NCA pool's so--.

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Let me start out
giving you a little bit of the

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sense of the week ahead
and an announcement on some

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commencements that the
President has accepted for May.

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The President will travel to
Camp David tomorrow morning and

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return to Washington
mid-morning on Monday.

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When he returns he'll have an
event here at the White House to

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discuss innovation, clean
energy and his budget.

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A couple of events on Tuesday.

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The President will meet with
Australian Prime Minister Rudd

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during the day.

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And as you all know, later
that evening we'll have a news

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conference in the East Room.

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Q: Do you have a time on that?

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MR. GIBBS: Eight
p.m., eastern time.

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On Wednesday the President will
have events at the -- have an

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event at the White House, as
well as deliver remarks to the

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Senate Democratic
Caucus in the afternoon.

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Q: He's going there?

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MR. GIBBS: Yes, I believe
that -- yes, that's correct.

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In the evening he will attend
a fundraiser on behalf of the

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Democratic National Committee.

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On Thursday the President
will -- Q: Is that open?

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MR. GIBBS: I believe
we'll have pool coverage.

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On Thursday the President will
attend meetings here and have an

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event at the White House.

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And the same for Friday, before
traveling to Camp David next

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Friday evening.

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Obviously the focus -- a lot of
the focus next week will be the

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run-up to the budget.

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In terms of commencements, on
May 13th the President will give

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the commencement address at
Arizona State University.

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On May 17th the President will
give the commencement address at

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Notre Dame.

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And on May 22nd he will speak
to graduates of the U.S.

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Naval Academy.

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All right, let me get
slightly more organized.

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Yes, ma'am.

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Q: Robert, the new CBO numbers
out today indicate that the

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deficit will be much larger than
expected and that the White

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House had anticipated, and that
over the course of time it would

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be 4 to 5 percent of GDP.

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So at this point is 4 to
5 percent sustainable?

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And does this give the White
House an inclination to consider

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raising taxes or
scaling back the agenda?

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MR. GIBBS: Well, the premise by
which the President constructed

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the budget sent to Capitol Hill
was, as I've said repeatedly

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from here, to cut in half the
inherited budget deficit over

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the course of his first term and
to make critical investments in

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health care, energy independence
and education reform in order to

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make critical investments in
our long-term economic growth.

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None of the numbers today
change the President's either

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objectives or his ability to
achieve that deficit reduction.

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The main change in the outlook
from CBO is a change or a

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difference in what they see in
terms of long-term economic

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growth largely in the
out years of the budget.

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The Fed sees in that long-term
outlook between 2.5 and 2.7

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percent economic growth.

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The Blue Chip forecast
is 2.6 percent.

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And the government's
forecast is 2.6 percent.

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I believe the average -- I don't
have the number in front of me

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-- the average for CBO is lower,
which is why the out year

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numbers are different;
obviously, as you get farther

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out the numbers change.

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But it doesn't change what the
President's focus is in terms of

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his objectives and making
critical investments and doesn't

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change his ability to halve
the deficit in four years.

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Q: But I go back, is 4 to 5
percent of GDP sustainable?

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MR. GIBBS: Well, you know, I
think the President's budget

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presents a number that
is less than that.

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Again, there's -- and you all
have covered this over the

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years, the pretty large
difference on occasion between

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CBO and OMB.

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I believe that just in looking
at the growth numbers in the GDP

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you have basically a plus or
minus $900 billion swing because

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the numbers at CBO represent
about a 50 percent -- there's a

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50 percent likelihood that
they'll be different, up or

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down.

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So they don't change the
President's long-term

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objectives.

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And most importantly, the
President has outlined a plan to

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bring fiscal responsibility and
fiscal sustainability to a town

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that hasn't seen it
for quite some time.

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The President looks forward to
working with members of Congress

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throughout the next few weeks
to get that budget passed in a

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timely way, make those critical
investments and put ourselves on

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that fiscal responsibility path
that will cut the deficit in

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half in four years.

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Yes, ma'am.

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Q: Robert, the President has
made the latest in a series of

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public overtures toward Iran,
and I would guess that a lot of

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thought went into the timing and
the format for how he did this.

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And I'm just wondering if you
could maybe go into why it was

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decided to do it in this
way, at this particular time.

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And do you expect this effort
to show results anytime soon?

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MR. GIBBS: Well, let me --
obviously the message is --

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follows the Persian New Year.

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The President believed that the
New Year marks -- marked a good

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time for us to demonstrate the
tone for the type of respectful

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engagement that we believe can
be had with the people of Iran.

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And we also believe it gives
Iran the opportunity for a

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similar new beginning.

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Again -- quote the President's
message: as a way of reaching

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out to the people, but
understanding that there are

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rights and responsibilities.

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In terms of reaction or what we
hope to get out of it, I think

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in many ways that's up to Iran.

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Q: So there's an offer on the
table for Iran to attend the

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conference at the end of
the month on Afghanistan.

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Is it the President's hope that
in making this gesture, that

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that will encourage them
to attend that conference?

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And is the timing in any way
taking that into consideration?

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MR. GIBBS: No, I think the
invitation -- that went out

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previously -- we hope is
accepted because the conference

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is intended to -- the conference
is intended to bring about

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Afghanistan's neighbors in that
troubled region of the world.

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And obviously Iran is one of
those neighbors and we believe,

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if it wants to, can work
constructively with the

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international community to help
the country of Afghanistan.

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But again, I think it's
important that the President

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wanted to deliver this unique
message directly to the people

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and to the leaders, to
understand that there's a

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rightful place in the community
of nations with -- that there's

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a rightful place in that
community without terror or arms

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or violence, and that through
peaceful actions the two

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countries can work together
toward their mutual ends.

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Jake.

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Q: Doesn't the fact that the
CBO projects an additional $2.3

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trillion long-term deficit
negate the fact that the

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President is talking about
being able to cut $2 trillion?

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I mean, it's basically, there it
went and now here's another $300

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billion.

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MR. GIBBS: I have not seen the
final report -- and I know

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Director Orszag will have a
call, not long after this and

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he'll have a better sense of
some of the numbers in terms of

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the savings.

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But I think, again, the numbers
that you're talking about in

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many ways accumulate, again,
farther down the road based on a

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change in their assumption about
long-term economic growth.

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But the President remains
confident that he has put

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forward a budget that meets the
critical investments that he

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thinks America must be making
in order to move past the

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bubble-and-bust economic era
into some sustained economic

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growth, while cutting that
deficit in half in four years.

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The President remains
confident that he can do so.

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Q: What would your message to
the American people be when they

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hear about the CBO projecting
this much larger deficit, $400

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billion additional this year,
$400 billion next year?

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Do you think their numbers
are -- I know you cited other

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numbers that are more
optimistic in terms of growth.

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Do you think -- do you
reject the CBO numbers?

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MR. GIBBS: No, no, I think --
again, I think there are a

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series of numbers, opinions that
range, as I said -- in terms of

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economic growth, from the Fed
to Blue Chip indicators, growth

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forecasts, to the federal
government and to the

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Congressional Budget Office.

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Look, I think what the American
people should understand is that

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for quite some time we have --
we've had budget deficits and an

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accumulation of budget debt
that the President believes is

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unsustainable; that his budget
takes actions to cut the deficit

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in half in just four years; and
believes that the steps that his

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administration is taking, as
it relates to recovery and

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financial stability, will put
us, as well as the investments

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in the budget, will put us on a
more robust and sustained path

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towards that economic growth
that will help the deficit in

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many of those out years.

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Obviously it is exceedingly hard
to project seven or 10 years

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into the future.

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But the President remains
confident that the forecast,

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though, demonstrates that he can
cut the budget deficit in half

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by the end of his first term.

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Yes, sir.

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Q: Robert, every time when the
President talks about health

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care or education, he always
frames it as part of -- being

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part of the economy and the
economic recovery and investment

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in the future.

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What does he actually mean by
that -- I mean, in terms of, you

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know, the actual amount of
dollars that this will, you

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know, present to turning
the economy around?

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MR. GIBBS: Well, I mean,
obviously a business's ability

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to grow is impacted by
their health care bill.

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And a business's ability to grow
is impacted by the growth rate

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in their health care spending.

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A business's ability to grow
is in many ways dependent upon

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having a work force that is well
trained and well educated in

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order to do the jobs of the
future that the President hopes

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to create.

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And obviously on energy
independence, we all understand

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what $4-a-gallon gasoline can do
to stifle the economic growth of

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a small business, a large
business, or impede the budget

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of a family of four.

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There's no doubt that the budget
and the investments contained in

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the President's budgets are
inextricably linked to our

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long-term economic growth.

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We cannot sustain the jobs of
the future that help us compete

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on a global economic stage with
countries throughout the world

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unless we bring our health care
costs under control; unless we

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educate our children for a
21st-century global economy; and

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if we don't get ourselves out of
a cycle of dependence on foreign

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fuel sources -- that all of
those play a huge part in our

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ability to govern our own
path for economic growth.

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Q: On Iran, is the videotape
sort of the beginning of what

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this administration hopes will
be an ongoing dialogue, and sort

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of the next step is perhaps
a face-to-face meeting --

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high-level?

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MR. GIBBS: Well, let me -- I
mean, I think without getting

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into what next, obviously
there's an evaluation overall of

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our policy as it
relates to Iran.

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But the President believes that
today marked an appropriate time

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with which to seek a different
relationship with a country, if

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that country is willing to
accept responsibilities to

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become part of a greater
community of nations.

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Q: But there's a not step
two on paper at this point.

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MR. GIBBS: Well, there is, but
-- and there are many more, but

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none of which I'm going
to get into today.

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Chip.

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Q: A pretty tough week for
the President this week.

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He seemed to be losing the
message war almost every day.

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It was -- every day he had some
economic plan out there, and

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every day it was AIG, or
Geithner, or the comments on

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Leno.

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Are you worried that this may be
kind of a watershed week when

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he's losing control
of the message?

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MR. GIBBS: No.

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(Laughter.) Q:
Can you elaborate?

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How's he going to get back on?

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How's he going to get
back on track here?

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00:15:55,200 --> 00:15:59,330
MR. GIBBS: You know, Chip, I --
I'm going to hesitate to rant on

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my good friends on cable, which
-- Q: I don't watch cable, so --

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00:16:02,500 --> 00:16:04,830
(laughter.) Q: Chip
doesn't have a TV.

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(Laughter.) MR. GIBBS:
Which is ironic.

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He has those radios
that I was given.

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You know, Chip, I think on the
-- I think on the President's

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00:16:17,867 --> 00:16:22,967
trip to California, I think
there is rightly concern and

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00:16:22,967 --> 00:16:27,437
outrage for the events of the
past week, and there's rightly

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concern and frustration about
the economic challenges that

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this country face.

253
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You heard from teachers that are
doing a good job but face the

254
00:16:38,500 --> 00:16:42,470
prospect that they won't have
their job for the next school

255
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year.

256
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You have, I think, all sorts of
economic stories that denote the

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00:16:52,400 --> 00:16:57,930
great challenges with which this
President was presented when he

258
00:16:57,934 --> 00:16:59,934
first walked into
this White House.

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The President is, as you've
heard him say before and you've

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00:17:03,033 --> 00:17:08,503
certainly heard me say before,
less interested in the

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00:17:08,500 --> 00:17:14,100
day-to-day score-keeping which
has always counted him down and

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00:17:14,100 --> 00:17:18,230
counted him out.

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We've been called idiots before.

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We understand that.

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But the President isn't focused
on -- isn't focused on that.

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The President is focused on the
decisions that he has to make to

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00:17:33,600 --> 00:17:39,270
get the pillars for economic
progress in place, whether it's

268
00:17:39,266 --> 00:17:43,366
ensuring that the Recovery Act
is done in a way that gives

269
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people confidence about the
money that's being spent to

270
00:17:46,200 --> 00:17:52,670
create jobs, and put money back
in their pockets; that we're

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taking steps through the
budget to make those critical

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investments.

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The President isn't focused on
the ups and downs of day to day

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score-keeping; he's
focused on looking ahead.

275
00:18:04,734 --> 00:18:07,734
Q: So he's not really feeling
frustrated that this week the

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00:18:07,734 --> 00:18:09,834
message kept slipping away
and getting only chatter.

277
00:18:09,834 --> 00:18:11,404
MR. GIBBS: I didn't go to
California, but it looked like

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00:18:11,400 --> 00:18:14,230
he was having a good time.

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00:18:14,233 --> 00:18:17,163
Q: On Geithner, is the
administration sticking to --

280
00:18:17,166 --> 00:18:21,466
are you sticking to this March
10th date for when he found out

281
00:18:21,467 --> 00:18:22,367
about this?

282
00:18:22,367 --> 00:18:27,097
Because I -- he was asked about
it in Congress a week before --

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00:18:27,100 --> 00:18:27,900
Q: It was March 9th.

284
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Q: March 9th.

285
00:18:28,633 --> 00:18:31,733
He was asked a week
before, specifically.

286
00:18:31,734 --> 00:18:33,834
MR. GIBBS: And I think the
Treasury Department addressed

287
00:18:33,834 --> 00:18:40,834
that in the newspaper
this morning.

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00:18:40,834 --> 00:18:53,034
Look, I think there's -- there
has been -- obviously, the

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00:18:53,033 --> 00:18:57,503
Treasury has talked about taking
responsibility for knowing more

290
00:18:57,500 --> 00:18:59,330
about the timeline.

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00:18:59,333 --> 00:19:05,863
Q: When Secretary Geithner
talked about that yesterday, he

292
00:19:05,867 --> 00:19:07,137
really parsed words.

293
00:19:07,133 --> 00:19:10,463
He said, on Tuesday, March 10th,
I was informed about the full

294
00:19:10,467 --> 00:19:15,167
scale and scope of
these specific bonuses.

295
00:19:15,166 --> 00:19:17,966
He's not saying that was the
first time he learned about it

296
00:19:17,967 --> 00:19:20,597
-- MR. GIBBS: Well -- Q: A very
careful parsing of words here,

297
00:19:20,600 --> 00:19:22,900
suggesting he did know
about it before then.

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00:19:22,900 --> 00:19:26,370
MR. GIBBS: No, I -- I think if
you read carefully the report

299
00:19:26,367 --> 00:19:31,537
you're discussing, the Treasury
Secretary takes responsibility,

300
00:19:31,533 --> 00:19:33,663
as the President does -- Q: But
he's sticking by that October

301
00:19:33,667 --> 00:19:36,967
10th date -- excuse me, March
10th date -- MR. GIBBS: Right, I

302
00:19:36,967 --> 00:19:38,897
-- Q: -- even though he clearly
knew about it before then.

303
00:19:38,900 --> 00:19:40,370
He was asked about it in
Congress -- MR. GIBBS: But,

304
00:19:40,367 --> 00:19:42,937
again -- but again, Chip -- Q:
-- and he was overseeing the AIG

305
00:19:42,934 --> 00:19:43,934
bailout.

306
00:19:43,934 --> 00:19:46,034
I mean, is it -- MR. GIBBS: What
committee -- Q: It just doesn't

307
00:19:46,033 --> 00:19:46,903
seem credible.

308
00:19:46,900 --> 00:19:48,000
MR. GIBBS: That
was Ways and Means?

309
00:19:48,000 --> 00:19:49,300
Q: Yes.

310
00:19:49,300 --> 00:19:50,870
But he was specifically
asked the question.

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00:19:50,867 --> 00:19:51,937
MR. GIBBS: No, I understand.

312
00:19:51,934 --> 00:19:52,734
I understand.

313
00:19:52,734 --> 00:19:56,334
And I think he's addressed that
and I think that's addressed in

314
00:19:56,333 --> 00:20:02,633
both the reports today and
what he said yesterday.

315
00:20:02,633 --> 00:20:07,403
Chip, we're -- we understand and
the President shares the outrage

316
00:20:07,400 --> 00:20:11,100
and the frustration
that everybody has.

317
00:20:11,100 --> 00:20:15,170
The administration is taking
steps to recoup money that's

318
00:20:15,166 --> 00:20:22,636
gone out, as well as to put in
place a financial stability plan

319
00:20:22,633 --> 00:20:25,833
and to seek progress on getting
our economy moving again.

320
00:20:25,834 --> 00:20:26,934
Q: Let me just ask
you specifically.

321
00:20:26,934 --> 00:20:29,604
When he says, on March 10th he
was informed about the full

322
00:20:29,600 --> 00:20:32,730
scale and scope, is he saying
that's the first he learned

323
00:20:32,734 --> 00:20:33,764
about it at all?

324
00:20:33,767 --> 00:20:37,097
MR. GIBBS: Chip, the question is
predicated on the report in the

325
00:20:37,100 --> 00:20:40,100
paper and I think the report in
the paper answers your question.

326
00:20:40,100 --> 00:20:42,630
Q: So he did know
about it before then?

327
00:20:42,633 --> 00:20:45,163
MR. GIBBS: Chip, I will --
can somebody go get a dollar and

328
00:20:45,166 --> 00:20:48,066
buy Chip a newspaper so
that he can read the report?

329
00:20:48,066 --> 00:20:51,096
Again, I think it's pretty
clear -- Q: Been read.

330
00:20:51,100 --> 00:20:52,070
MR. GIBBS: Excellent.

331
00:20:52,066 --> 00:20:54,036
Then I believe
it's been answered.

332
00:20:54,033 --> 00:20:55,903
Q: Robert, can I follow
on that real quick?

333
00:20:55,900 --> 00:20:59,030
Why did you tell us that it was
March 10th, then, that you found

334
00:20:59,033 --> 00:20:59,903
out?

335
00:20:59,900 --> 00:21:01,970
The statement from the White
House was very specific, he

336
00:21:01,967 --> 00:21:03,397
found out March 10th.

337
00:21:03,400 --> 00:21:06,630
MR. GIBBS: Again, I would point
you to the report that the

338
00:21:06,633 --> 00:21:09,733
Secretary of the Treasury takes
responsibility, as does the

339
00:21:09,734 --> 00:21:14,564
administration, with knowledge
about the structure and the

340
00:21:14,567 --> 00:21:15,737
scope of those bonuses.

341
00:21:15,734 --> 00:21:18,864
Q: But we were accidentally or
however misinformed about the

342
00:21:18,867 --> 00:21:20,197
day that he found out.

343
00:21:20,200 --> 00:21:25,430
MR. GIBBS: Well, let's -- let's
not -- I'm just going to leave

344
00:21:25,433 --> 00:21:26,263
it at that.

345
00:21:26,266 --> 00:21:27,936
I think the report is pretty
clear and so are the answers.

346
00:21:27,934 --> 00:21:28,704
Chuck.

347
00:21:28,700 --> 00:21:30,200
Q: Did he misinform the White
House about when he found out?

348
00:21:30,200 --> 00:21:31,370
MR. GIBBS: Chuck.

349
00:21:31,367 --> 00:21:34,637
Q: Well, I do watch cable TV and
apparently Congresswoman Maxine

350
00:21:34,633 --> 00:21:37,633
Waters had a question.

351
00:21:37,633 --> 00:21:40,663
I'll let you answer her
question: What took place

352
00:21:40,667 --> 00:21:43,867
between Treasury
and Senator Dodd?

353
00:21:43,867 --> 00:21:46,467
What do you guys now know that
took place between Treasury and

354
00:21:46,467 --> 00:21:47,767
Senator Dodd?

355
00:21:47,767 --> 00:21:51,067
MR. GIBBS: Well, again, I would
point you to exactly what the

356
00:21:51,066 --> 00:21:53,096
Treasury Secretary said on CNN
yesterday -- that the Treasury

357
00:21:53,100 --> 00:22:00,700
Department had concerns about
lawsuits involved in the

358
00:22:00,700 --> 00:22:02,230
provisions.

359
00:22:02,233 --> 00:22:06,633
The provision that ultimately
passed provides a clawback and

360
00:22:06,633 --> 00:22:11,663
recoupment look to bonuses
through the TARP, at the

361
00:22:11,667 --> 00:22:15,697
discretion of an investigation
by the Secretary of the

362
00:22:15,700 --> 00:22:17,630
Treasury.

363
00:22:17,633 --> 00:22:20,963
Again, I think that the Treasury
Secretary has answered this and

364
00:22:20,967 --> 00:22:22,467
has the confidence
of the President.

365
00:22:22,467 --> 00:22:24,597
Q: Do you feel like her
criticism is sort of a -- she

366
00:22:24,600 --> 00:22:27,130
needs to (inaudible) interview,
or -- MR. GIBBS: I would point

367
00:22:27,133 --> 00:22:31,133
you to that interview, and -- Q:
I'm not asking -- her questions,

368
00:22:31,133 --> 00:22:34,333
so that means you want to --
MR. GIBBS: I appreciate that

369
00:22:34,333 --> 00:22:37,633
you're now doing this on
behalf of members of Congress.

370
00:22:37,633 --> 00:22:39,203
(Laughter.) Q: She
seemed to be concerned.

371
00:22:39,200 --> 00:22:40,570
Let me follow-up on something
that the President said last

372
00:22:40,567 --> 00:22:42,597
night.

373
00:22:42,600 --> 00:22:47,370
He said -- he talked about this
issue of the bonuses, that they

374
00:22:47,367 --> 00:22:50,197
were looking at it from a legal
term, but that Treasury wasn't

375
00:22:50,200 --> 00:22:53,400
looking at it from a moral or
ethical sort of -- sort of

376
00:22:53,400 --> 00:22:55,870
through a moral or ethical --
didn't get the exact quote --

377
00:22:55,867 --> 00:22:57,937
from a moral and ethical aspect.

378
00:22:57,934 --> 00:23:01,634
So does the President believe
Treasury was wrong not to think

379
00:23:01,633 --> 00:23:03,463
about the moral and
ethical consequences?

380
00:23:03,467 --> 00:23:08,837
MR. GIBBS: Well, Chuck, I would
-- I think the President would

381
00:23:08,834 --> 00:23:13,034
say that to everybody involved.

382
00:23:13,033 --> 00:23:15,863
I think the President would
say that you have a financial

383
00:23:15,867 --> 00:23:21,037
company that entered into
contracts in April of 2008 that

384
00:23:21,033 --> 00:23:26,363
also didn't understand, as
taxpayers have been outraged, as

385
00:23:26,367 --> 00:23:31,267
he's been outraged, about the
lack of common sense and the

386
00:23:31,266 --> 00:23:44,036
sheer breadth of -- the sheer
breadth of understanding that

387
00:23:44,033 --> 00:23:50,703
bonuses generally reward
success, not failure; that the

388
00:23:50,700 --> 00:23:52,330
-- Q: Does the President
believe he can legislate this

389
00:23:52,333 --> 00:23:55,103
compensation issue, or that
ultimately -- MR. GIBBS: Well,

390
00:23:55,100 --> 00:24:02,030
let me finish this -- the
President understands that,

391
00:24:02,033 --> 00:24:09,363
again, the frustration of the
American taxpayer, as we watch

392
00:24:09,367 --> 00:24:13,567
the fact that we have -- as he
said on "The Tonight Show," that

393
00:24:13,567 --> 00:24:20,337
there's -- that executive
compensation and bonuses and the

394
00:24:20,333 --> 00:24:22,763
thinking around a lot of that
over the past few years has

395
00:24:22,767 --> 00:24:26,137
gotten wildly out of control.

396
00:24:26,133 --> 00:24:27,433
Q: Does he think he
can legislate it?

397
00:24:27,433 --> 00:24:28,803
MR. GIBBS: Executive
compensation?

398
00:24:28,800 --> 00:24:30,130
Q: Yes.

399
00:24:30,133 --> 00:24:33,433
MR. GIBBS: Well, I think, you
know, you stood here in this

400
00:24:33,433 --> 00:24:37,503
room and heard the President
in the Oval Office talk quite

401
00:24:37,500 --> 00:24:42,770
clearly and convincingly
about proposals that were the

402
00:24:42,767 --> 00:24:51,497
strongest in American history
to put limits on executive

403
00:24:51,500 --> 00:24:56,330
compensation for firms that
are receiving extraordinary

404
00:24:56,333 --> 00:24:59,503
assistance under the Troubled
Asset Relief Program.

405
00:24:59,500 --> 00:25:01,630
Q: But he seemed to talk about
the whole moral climate, but

406
00:25:01,633 --> 00:25:04,863
outside of this, does he think
out -- companies outside the

407
00:25:04,867 --> 00:25:06,097
TARP -- MR. GIBBS:
Well, absolutely.

408
00:25:06,100 --> 00:25:07,370
Absolutely.

409
00:25:07,367 --> 00:25:12,597
The President in his -- has long
been a supporter of, and has

410
00:25:12,600 --> 00:25:18,370
contained in this proposal that
shareholders should have a

411
00:25:18,367 --> 00:25:22,697
non-binding vote that through
the power of their opinion can

412
00:25:22,700 --> 00:25:27,230
demonstrate for whatever company
they're a shareholder in that

413
00:25:27,233 --> 00:25:34,163
the compensation that's involved
matches the success of the

414
00:25:34,166 --> 00:25:41,166
company, the success for
shareholders, and that all of

415
00:25:41,166 --> 00:25:45,866
this has to be in some line
with reasonable expectations.

416
00:25:45,867 --> 00:25:52,397
You know, study after study
denotes the huge increases in

417
00:25:52,400 --> 00:25:58,370
where we were just a few decades
ago with what a worker made in

418
00:25:58,367 --> 00:26:00,997
relation to a CEO
and where we are now.

419
00:26:01,000 --> 00:26:05,530
Obviously we have seen outsized
compensation and bonuses and

420
00:26:05,533 --> 00:26:10,633
salaries that have long
gotten out of whack.

421
00:26:10,633 --> 00:26:11,733
Mark.

422
00:26:11,734 --> 00:26:14,864
Q: On a related issue, Robert,
does President Obama believe

423
00:26:14,867 --> 00:26:19,667
that the bill passed by the
House yesterday to tax the bonus

424
00:26:19,667 --> 00:26:22,467
money is constitutional?

425
00:26:22,467 --> 00:26:25,537
MR. GIBBS: I have not asked
the President about the

426
00:26:25,533 --> 00:26:27,903
constitutionality of the bill.

427
00:26:27,900 --> 00:26:33,630
I read in the papers that some
experts believe the bill to be

428
00:26:33,633 --> 00:26:35,533
constitutional.

429
00:26:35,533 --> 00:26:41,603
I don't know that -- I don't
know that constitutionality has

430
00:26:41,600 --> 00:26:43,230
specifically been
looked at here.

431
00:26:43,233 --> 00:26:49,963
I know that the White House is
evaluating legislation from the

432
00:26:49,967 --> 00:26:56,737
House and whatever legislation
might come from the Senate in

433
00:26:56,734 --> 00:27:00,604
order to look at two objectives.

434
00:27:00,600 --> 00:27:08,670
The first is understanding that
taxpayer anger and frustration

435
00:27:08,667 --> 00:27:13,867
that I talked about with Chuck
-- understanding, as the

436
00:27:13,867 --> 00:27:18,737
President has talked about, that
the way this system has gotten

437
00:27:18,734 --> 00:27:23,504
completely out of whack; that it
lacks common sense; that we are

438
00:27:23,500 --> 00:27:29,570
rewarding not success
but in some ways failure.

439
00:27:29,567 --> 00:27:34,267
But also looking at whatever
legislation comes out of this

440
00:27:34,266 --> 00:27:42,536
process to ensure that our
ability to stabilize the

441
00:27:42,533 --> 00:27:50,333
financial system and ensure that
credit flows from banks and

442
00:27:50,333 --> 00:27:53,703
lending institutions to families
and small businesses and big

443
00:27:53,700 --> 00:27:57,070
businesses through capital and
what they need to run their

444
00:27:57,066 --> 00:27:57,636
business.

445
00:27:57,633 --> 00:28:03,203
So there's -- there is the dual
objective that the White House

446
00:28:03,200 --> 00:28:04,530
will evaluate.

447
00:28:04,533 --> 00:28:07,833
Q: Well, if the House bill were
to reach his desk, would he sign

448
00:28:07,834 --> 00:28:08,664
it?

449
00:28:08,667 --> 00:28:11,967
MR. GIBBS: Well, that's the
evaluation that is being

450
00:28:11,967 --> 00:28:15,597
undertaken here.

451
00:28:15,600 --> 00:28:21,870
I do believe the President and
the White House have concern --

452
00:28:21,867 --> 00:28:24,267
we have to ensure, again, that
both of these objectives are

453
00:28:24,266 --> 00:28:29,466
met; that the frustration -- the
real frustration that taxpayers

454
00:28:29,467 --> 00:28:33,037
and the President have about the
situation that we've seen with

455
00:28:33,033 --> 00:28:37,363
AIG, but also ensure, for
instance, that a community bank

456
00:28:37,367 --> 00:28:43,797
that took some TARP funding, not
because it was necessarily in

457
00:28:43,800 --> 00:28:47,400
trouble, but because we all
understand that additional

458
00:28:47,400 --> 00:28:52,530
capital through something like
that can help their balance

459
00:28:52,533 --> 00:28:57,163
sheets, and that families and
small businesses can see the

460
00:28:57,166 --> 00:29:01,336
return of flow of capital to
ensure that there is enough for

461
00:29:01,333 --> 00:29:06,563
housing loans and auto loans and
college loans, and that all of

462
00:29:06,567 --> 00:29:11,737
that will be evaluated
throughout the process when a

463
00:29:11,734 --> 00:29:12,964
bill gets to his desk.

464
00:29:12,967 --> 00:29:13,697
Ed.

465
00:29:13,700 --> 00:29:17,200
Q: Robert, how concerned is the
White House that the new deficit

466
00:29:17,200 --> 00:29:21,600
numbers today might further
erode support on Capitol Hill

467
00:29:21,600 --> 00:29:26,330
for the budget, for the
President's other initiatives?

468
00:29:26,333 --> 00:29:28,963
MR. GIBBS: You know, obviously,
again, the President shares the

469
00:29:28,967 --> 00:29:35,737
frustration of many about where
we've gone relating to fiscal

470
00:29:35,734 --> 00:29:38,234
irresponsibility over
the past several years.

471
00:29:38,233 --> 00:29:42,903
That's why not only did
he present a budget that

472
00:29:42,900 --> 00:29:46,430
accomplishes the goal of cutting
the deficit in half in his first

473
00:29:46,433 --> 00:29:49,833
term, but does so in an honest
and transparent way so that we

474
00:29:49,834 --> 00:29:53,934
begin accounting for our efforts
in Iraq and Afghanistan,

475
00:29:53,934 --> 00:29:58,134
disasters that we know --
natural disasters that we know

476
00:29:58,133 --> 00:30:00,163
will occur.

477
00:30:00,166 --> 00:30:04,496
But the President remains
confident that we can pass the

478
00:30:04,500 --> 00:30:07,900
budget that he sent up, making
the critical investments that we

479
00:30:07,900 --> 00:30:13,600
need, and that we'll have
success not just on this but on

480
00:30:13,600 --> 00:30:15,600
other legislative
initiatives this year.

481
00:30:15,600 --> 00:30:17,530
Q: You don't expect
much erosion in support?

482
00:30:17,533 --> 00:30:22,133
MR. GIBBS: Well, we're -- we
want to work with both sides of

483
00:30:22,133 --> 00:30:26,103
the aisle to ensure that the
President's budget of fiscal

484
00:30:26,100 --> 00:30:29,930
responsibility and critical
investment moves forward, and we

485
00:30:29,934 --> 00:30:31,034
think we can do that.

486
00:30:31,033 --> 00:30:32,033
Major.

487
00:30:32,033 --> 00:30:34,363
Q: Robert, whether it's been
a good week or a bad week, it

488
00:30:34,367 --> 00:30:37,137
appears there is some evidence
-- at least in the minds of

489
00:30:37,133 --> 00:30:39,663
Democrats, maybe just a small
number on Capitol Hill -- for

490
00:30:39,667 --> 00:30:41,567
the first time, the confidence
and credibility of this

491
00:30:41,567 --> 00:30:43,367
administration is at
least open to question.

492
00:30:43,367 --> 00:30:46,597
Maxine Waters said this morning
on the radio about this

493
00:30:46,600 --> 00:30:49,630
Geithner-AIG issue, "Maybe the
President is not up to speed on

494
00:30:49,633 --> 00:30:51,203
what is going on.

495
00:30:51,200 --> 00:30:53,830
I think this is all going
to have to be clarified."

496
00:30:53,834 --> 00:30:55,764
To what degree do you agree
with that assessment from

497
00:30:55,767 --> 00:30:57,097
Congresswoman Waters?

498
00:30:57,100 --> 00:30:58,470
MR. GIBBS: I think I
answered that with Chuck.

499
00:30:58,467 --> 00:31:03,797
I think what the Secretary of
Treasury has talked about over

500
00:31:03,800 --> 00:31:06,500
the past few days
is quite clear.

501
00:31:06,500 --> 00:31:08,200
Q: That's all the clarification
the nation requires?

502
00:31:08,200 --> 00:31:13,200
MR. GIBBS: No, I -- well, I
think we -- I think what the

503
00:31:13,200 --> 00:31:18,270
Secretary of Treasury talked
about demonstrates actions that

504
00:31:18,266 --> 00:31:24,836
were taken, concerns that were
expressed, and I would point her

505
00:31:24,834 --> 00:31:26,164
to those comments.

506
00:31:26,166 --> 00:31:27,896
Q: Actions that were taken when?

507
00:31:27,900 --> 00:31:31,400
I mean, the country seems to be
trying to still figure out, and

508
00:31:31,400 --> 00:31:34,230
to a certain degree the Treasury
Department is still trying to

509
00:31:34,233 --> 00:31:37,703
figure out, exactly when the
Treasury Secretary became aware

510
00:31:37,700 --> 00:31:41,200
of this: Asked about it March
30th in congressional testimony;

511
00:31:41,200 --> 00:31:43,830
representations here by senior
officials and he was first

512
00:31:43,834 --> 00:31:45,604
informed of it on March 10th.

513
00:31:45,600 --> 00:31:49,900
I mean, it seems you can't
even get the sequence properly

514
00:31:49,900 --> 00:31:50,700
aligned.

515
00:31:50,700 --> 00:31:54,430
How can the country then digest
whether the policy responses

516
00:31:54,433 --> 00:31:57,903
were correct if we can't even
get a firm grasp on when

517
00:31:57,900 --> 00:32:00,070
knowledge was obtained and
when actions were taken?

518
00:32:00,066 --> 00:32:03,266
MR. GIBBS: Well, again, Major, I
don't want to repeat the answers

519
00:32:03,266 --> 00:32:06,166
I've given, I think, to both of
those questions from Chip and

520
00:32:06,166 --> 00:32:07,166
Chuck.

521
00:32:07,166 --> 00:32:12,796
But I'd point you to those
reports and those answers.

522
00:32:12,800 --> 00:32:16,630
Q: On the budget, is it the
administration's point of view

523
00:32:16,633 --> 00:32:19,203
that this is essentially a
disagreement between economists;

524
00:32:19,200 --> 00:32:22,200
it's kind of a rounding error as
far as economic projections are

525
00:32:22,200 --> 00:32:24,200
concerned over
the next 10 years?

526
00:32:24,200 --> 00:32:27,470
And though $2 trillion sounds
like a lot of money, Americans,

527
00:32:27,467 --> 00:32:30,297
seeing it on their front pages
of the newspapers tomorrow,

528
00:32:30,300 --> 00:32:33,000
hearing it as they drive home,
shouldn't be alarmed that the

529
00:32:33,000 --> 00:32:36,330
deficit is higher than $2
trillion, or -- what's --

530
00:32:36,333 --> 00:32:38,003
MR. GIBBS: No, let me -- Q:
What's the takeaway that --

531
00:32:38,000 --> 00:32:40,500
people will hear this number,
and they'll say, whoa, $2

532
00:32:40,500 --> 00:32:42,830
trillion, that sounds
like a lot of money to me.

533
00:32:42,834 --> 00:32:46,664
MR. GIBBS: I can
assure people it is.

534
00:32:46,667 --> 00:32:49,937
I can also assure people of this
-- that the President has a

535
00:32:49,934 --> 00:32:54,304
budget that institutes, for the
first time in quite some time, a

536
00:32:54,300 --> 00:32:59,000
return to a sane fiscal path
that cuts the budget deficit in

537
00:32:59,000 --> 00:33:05,000
half during his first term; that
puts us back on a framework of

538
00:33:05,000 --> 00:33:09,630
an honest budget where we
actually begin to pay for our

539
00:33:09,633 --> 00:33:14,633
international and
domestic endeavors.

540
00:33:14,633 --> 00:33:17,203
Again -- and I think that -- Q
Economists are bound to go by

541
00:33:17,200 --> 00:33:18,400
these numbers.

542
00:33:18,400 --> 00:33:19,500
MR. GIBBS: I understand.

543
00:33:19,500 --> 00:33:26,300
I think that the way I would
characterize the differences is

544
00:33:26,300 --> 00:33:29,700
the way I characterized them
earlier, which was there are

545
00:33:29,700 --> 00:33:34,270
differences of opinion between
where the Fed believes economic

546
00:33:34,266 --> 00:33:38,766
growth will be, where blue-chip
economic forecasts are, and

547
00:33:38,767 --> 00:33:44,667
where we are in one package and
where the CBO is in another.

548
00:33:44,667 --> 00:33:46,797
But again -- Q: But by the
Budget Act, they have to go by

549
00:33:46,800 --> 00:33:47,500
the CBO numbers.

550
00:33:47,500 --> 00:33:48,370
MR. GIBBS: I understand.

551
00:33:48,367 --> 00:33:50,537
Q: So you -- you push your
agenda through that set of

552
00:33:50,533 --> 00:33:51,603
numbers.

553
00:33:51,600 --> 00:33:53,530
MR. GIBBS: And I think those
numbers will validate the

554
00:33:53,533 --> 00:33:55,703
objectives that the President
outlined at the beginning of

555
00:33:55,700 --> 00:33:57,500
this discussion.

556
00:33:57,500 --> 00:34:01,770
I think that's what is important
-- again, a decent amount of

557
00:34:01,767 --> 00:34:04,897
this growth -- a decent amount
of this growth is in the

558
00:34:04,900 --> 00:34:09,670
back-year numbers
six through 10.

559
00:34:09,667 --> 00:34:12,467
You know, it's a little bit I
guess like predicting the winner

560
00:34:12,467 --> 00:34:15,597
of your NCAA bracket
in six years.

561
00:34:15,600 --> 00:34:17,630
You can certainly distribute
sheets, we might all give you

562
00:34:17,633 --> 00:34:21,403
$5, but some of the teams you
have in there may not actually

563
00:34:21,400 --> 00:34:23,600
make the tournament.

564
00:34:23,600 --> 00:34:28,000
I'm extending my sports analogy
for yet another important fiscal

565
00:34:28,000 --> 00:34:29,030
issue.

566
00:34:29,033 --> 00:34:32,533
(Laughter.) Helene.

567
00:34:32,533 --> 00:34:37,933
Q: Does the administration think
that its own officials who --

568
00:34:37,934 --> 00:34:41,264
like Jack Lew and Mike Froman,
who received executive bonuses

569
00:34:41,266 --> 00:34:44,966
last year for companies or
institutions that helped lead to

570
00:34:44,967 --> 00:34:47,897
this economic downturn --
should give their bonuses back?

571
00:34:47,900 --> 00:34:49,570
Do you want to set an example?

572
00:34:49,567 --> 00:34:51,937
MR. GIBBS: I don't have
information in front of me on

573
00:34:51,934 --> 00:34:53,064
that.

574
00:34:53,066 --> 00:34:55,266
Q: So you don't think the --
MR. GIBBS: I'd have to look at

575
00:34:55,266 --> 00:35:01,196
the information that -- what
they are and I'd be happy to

576
00:35:01,200 --> 00:35:02,730
take a look at that in a second.

577
00:35:02,734 --> 00:35:03,304
Q: Okay.

578
00:35:03,300 --> 00:35:04,900
Can we -- so can we get
something back on that?

579
00:35:04,900 --> 00:35:06,500
I'd like to also ask you about
-- MR. GIBBS: I think your paper

580
00:35:06,500 --> 00:35:07,870
already has that in to us.

581
00:35:07,867 --> 00:35:11,637
Q: I'd also like
to you about Iran.

582
00:35:11,633 --> 00:35:16,433
Did Israel inform the
administration that Shimon Perez

583
00:35:16,433 --> 00:35:20,033
would be giving out a similar
Nowruz message to the Iranian

584
00:35:20,033 --> 00:35:23,633
people at the same time the
Obama administration was?

585
00:35:23,633 --> 00:35:28,033
MR. GIBBS: Did Israel
inform us or did -- Q: Yes.

586
00:35:28,033 --> 00:35:29,003
MR. GIBBS: I'd have to check.

587
00:35:29,000 --> 00:35:35,070
I know we notified allies about
our message last evening, but I

588
00:35:35,066 --> 00:35:39,896
do not know what specific things
we might have gotten back from

589
00:35:39,900 --> 00:35:41,330
others.

590
00:35:41,333 --> 00:35:41,963
Yes, sir.

591
00:35:41,967 --> 00:35:43,167
Q: Back to the budget briefly.

592
00:35:43,166 --> 00:35:45,196
I understand what you're saying
about the out years being hard

593
00:35:45,200 --> 00:35:48,430
to predict and future NCAA
brackets and all that, but the

594
00:35:48,433 --> 00:35:51,763
difference next year -- the
current -- the budget that's on

595
00:35:51,767 --> 00:35:55,567
Capitol Hill, there's a
difference between $1.17

596
00:35:55,567 --> 00:36:00,697
trillion under your
numbers and $1.4 trillion.

597
00:36:00,700 --> 00:36:04,870
So that's, you know, more than
$200 billion, $250 billion, I

598
00:36:04,867 --> 00:36:07,137
think -- a big
difference right there.

599
00:36:07,133 --> 00:36:09,903
I mean, is this the CBO's way of
saying it's the return of the

600
00:36:09,900 --> 00:36:12,430
rosy scenario; that your numbers
are -- MR. GIBBS: No, again, I

601
00:36:12,433 --> 00:36:16,733
-- again, only if you assume
that the Fed, the blue-chip

602
00:36:16,734 --> 00:36:19,734
forecasts, and us are all
involved in the same rosy

603
00:36:19,734 --> 00:36:24,404
scenario cahoots, which I don't
think obviously is the case.

604
00:36:24,400 --> 00:36:27,800
I think the economic estimations
that we've made that govern the

605
00:36:27,800 --> 00:36:31,330
choices of our budget
demonstrate quite frankly that

606
00:36:31,333 --> 00:36:37,563
we're comfortably in the
mainstream of exactly what those

607
00:36:37,567 --> 00:36:38,967
forecasts are.

608
00:36:38,967 --> 00:36:42,997
But, you know, let's extend not
just one year, but let's extend

609
00:36:43,000 --> 00:36:47,500
to that fourth year and I think
you'll see that the -- what the

610
00:36:47,500 --> 00:36:53,700
President said originally, that
our budget -- the budget that

611
00:36:53,700 --> 00:36:57,470
he's presented will cut the
deficit in half in four years,

612
00:36:57,467 --> 00:37:00,137
is true.

613
00:37:00,133 --> 00:37:05,033
But again, the President has
made some tough choices about

614
00:37:05,033 --> 00:37:08,263
how to put ourselves back
on a path towards fiscal

615
00:37:08,266 --> 00:37:09,836
sustainability.

616
00:37:09,834 --> 00:37:14,004
And certainly the American
people understand that it's

617
00:37:14,000 --> 00:37:16,870
going to take a
while to do that.

618
00:37:16,867 --> 00:37:20,867
The President took specific
actions earlier in the year to

619
00:37:20,867 --> 00:37:24,967
ensure that we had a recovery
and reinvestment plan that we

620
00:37:24,967 --> 00:37:31,837
think will grow the economy,
which ultimately will help both

621
00:37:31,834 --> 00:37:35,164
in the short term and in the
long term with growth and

622
00:37:35,166 --> 00:37:38,166
ultimately the projected
budget deficit.

623
00:37:38,166 --> 00:37:43,496
Q: If Congress does, as pointed
out, stick with the CBO numbers

624
00:37:43,500 --> 00:37:46,400
and makes changes to the budget,
is that -- are those numbers

625
00:37:46,400 --> 00:37:48,570
things that the President is
going to be able to live with?

626
00:37:48,567 --> 00:37:52,497
MR. GIBBS: Well, the President
believes that, and looks forward

627
00:37:52,500 --> 00:38:01,300
to working with Congress to
create and pass a budget that

628
00:38:01,300 --> 00:38:04,230
accomplishes his two main
priorities -- making the

629
00:38:04,233 --> 00:38:08,663
critical investments that we
have to in cutting the costs for

630
00:38:08,667 --> 00:38:13,097
health care, for putting us on a
sustainable path towards energy

631
00:38:13,100 --> 00:38:16,930
independence and reforming the
way our children are educated;

632
00:38:16,934 --> 00:38:21,264
at the same time, cutting the
budget deficit in half over

633
00:38:21,266 --> 00:38:24,236
those four years from
what he inherited.

634
00:38:24,233 --> 00:38:27,063
The President looks forward to
working with members of Congress

635
00:38:27,066 --> 00:38:30,896
to ensure both of --
both of those outcomes.

636
00:38:30,900 --> 00:38:32,270
Yes, sir.

637
00:38:32,266 --> 00:38:34,466
Q: Secretary Duncan said this
week, "We're going to reward

638
00:38:34,467 --> 00:38:37,867
those states and those districts
that are willing to challenge

639
00:38:37,867 --> 00:38:40,567
the status quo and get
dramatically better."

640
00:38:40,567 --> 00:38:44,067
In line with the President's
comprehensive education agenda,

641
00:38:44,066 --> 00:38:46,996
what national benchmarks are
being set by the President and

642
00:38:47,000 --> 00:38:49,700
the White House to measure
progress, specifically with

643
00:38:49,700 --> 00:38:53,570
respect to college accessibility
and the rising high school

644
00:38:53,567 --> 00:38:54,797
dropout rate?

645
00:38:54,800 --> 00:38:58,700
MR. GIBBS: Well, obviously, I
would point you to Arne in terms

646
00:38:58,700 --> 00:39:05,100
of what changes or what
adoptions of specific national

647
00:39:05,100 --> 00:39:08,600
standards that he's going
to use to evaluate this.

648
00:39:08,600 --> 00:39:12,230
Obviously you've heard the
President talk about -- and

649
00:39:12,233 --> 00:39:18,633
contained in both the recovery
and in the budget are changes in

650
00:39:18,633 --> 00:39:26,833
tax cuts for college tuition
and an increase in Pell grant

651
00:39:26,834 --> 00:39:31,504
funding for individuals.

652
00:39:31,500 --> 00:39:34,370
And obviously the President
has talked about, in both his

653
00:39:34,367 --> 00:39:38,097
address to Congress and in the
larger address to the Hispanic

654
00:39:38,100 --> 00:39:42,830
Chamber a few weeks ago,
specific ideas on reform, both

655
00:39:42,834 --> 00:39:49,564
in -- in the classroom and in
changes not just to college

656
00:39:49,567 --> 00:39:55,397
accessibility that you
mentioned, but efforts to stem

657
00:39:55,400 --> 00:39:59,970
the rising tide of high school
dropouts so that we can educate

658
00:39:59,967 --> 00:40:03,137
the workforce that we need
for the jobs the President is

659
00:40:03,133 --> 00:40:06,063
looking to create
for this country.

660
00:40:06,066 --> 00:40:10,566
I think both the recovery plan
and the budget take important

661
00:40:10,567 --> 00:40:18,667
steps in ensuring that we are
moving towards education reform

662
00:40:18,667 --> 00:40:22,197
so that our children
are prepared.

663
00:40:22,200 --> 00:40:23,370
Q: Just a quick follow-up.

664
00:40:23,367 --> 00:40:26,997
The $5,500, roughly, Pell grant
that has been proposed, the

665
00:40:27,000 --> 00:40:30,230
expanded one, does the President
feel that's adequate, and would

666
00:40:30,233 --> 00:40:33,063
he propose expanding of Pell
grants, specifically for

667
00:40:33,066 --> 00:40:36,536
students who are interested
in service-oriented work?

668
00:40:36,533 --> 00:40:38,903
MR. GIBBS: Well, I think the
President has talked about and I

669
00:40:38,900 --> 00:40:45,030
think Congress is working on
national service legislation.

670
00:40:45,033 --> 00:40:47,503
The President talked about
that throughout the campaign.

671
00:40:47,500 --> 00:40:54,600
Look, the Pell grant has, for a
long, long time, failed to keep

672
00:40:54,600 --> 00:41:02,000
up with, in any moderate way,
with the rapid growth in college

673
00:41:02,000 --> 00:41:03,370
tuition.

674
00:41:03,367 --> 00:41:05,037
The very first piece of
legislation the President

675
00:41:05,033 --> 00:41:11,003
introduced as a member of the
Senate was a bill to change and

676
00:41:11,000 --> 00:41:16,370
increase the amount of money for
Pell grants, because many years

677
00:41:16,367 --> 00:41:22,397
ago a Pell grant would pay for,
for somebody, their entire

678
00:41:22,400 --> 00:41:26,270
education for a year, rather
than now paying for just a small

679
00:41:26,266 --> 00:41:33,536
sliver of their tuition, because
we've seen -- we've seen the

680
00:41:33,533 --> 00:41:37,203
cost of college tuition
skyrocket on the same frame that

681
00:41:37,200 --> 00:41:40,730
we've seen the costs
of health care.

682
00:41:40,734 --> 00:41:41,664
Michael.

683
00:41:41,667 --> 00:41:44,397
Q: Does the President agree with
Chairman Bernanke that it's

684
00:41:44,400 --> 00:41:47,700
important not to grow the
debt-to-GDP ratio for the medium

685
00:41:47,700 --> 00:41:49,170
term?

686
00:41:49,166 --> 00:41:54,066
That the deficit should not be
larger than the growth of GDP

687
00:41:54,066 --> 00:41:55,696
for the medium term, once we get
out of this -- MR. GIBBS: I have

688
00:41:55,700 --> 00:42:00,630
not seen what Chairman Bernanke
said or -- I don't have in front

689
00:42:00,633 --> 00:42:03,533
of me comparison
of those figures.

690
00:42:03,533 --> 00:42:08,733
Again, the President in
outlining his budget took steps

691
00:42:08,734 --> 00:42:15,434
to ensure that where we are
today in the budget deficit that

692
00:42:15,433 --> 00:42:21,403
the President inherited, I think
the ratio is about 10 percent of

693
00:42:21,400 --> 00:42:22,830
GDP.

694
00:42:22,834 --> 00:42:26,164
And obviously that is a
number that is certainly not

695
00:42:26,166 --> 00:42:28,196
sustainable.

696
00:42:28,200 --> 00:42:30,930
But the President -- that's why
the President made some tough

697
00:42:30,934 --> 00:42:35,664
choices, certainly, to bring
that number down over the course

698
00:42:35,667 --> 00:42:37,667
of cutting the deficit
in half in four years.

699
00:42:37,667 --> 00:42:40,567
Q: But that seems to be the
headline of the CBO today, is

700
00:42:40,567 --> 00:42:45,497
that they have the deficit
larger than growth of GDP in

701
00:42:45,500 --> 00:42:48,430
that middle term, you know,
after we get out of this current

702
00:42:48,433 --> 00:42:52,463
rut we're in; they still have
the deficit as larger --

703
00:42:52,467 --> 00:42:56,737
MR. GIBBS: I have not -- I have
not read the full report before

704
00:42:56,734 --> 00:42:58,104
coming out here.

705
00:42:58,100 --> 00:43:03,000
But pose that question to Peter,
because he's got a pocket

706
00:43:03,000 --> 00:43:05,330
calculator that does all that.

707
00:43:05,333 --> 00:43:06,403
(Laughter.) Kirk.

708
00:43:06,400 --> 00:43:07,630
Q: Robert, two things.

709
00:43:07,633 --> 00:43:09,363
One -- two unrelated things.

710
00:43:09,367 --> 00:43:12,067
On health care reform, the
President and everybody in the

711
00:43:12,066 --> 00:43:14,936
administration practically has
stressed the importance of it.

712
00:43:14,934 --> 00:43:18,234
Why then is the administration
deferring so much to Capitol

713
00:43:18,233 --> 00:43:19,763
Hill to draft it?

714
00:43:19,767 --> 00:43:25,667
MR. GIBBS: Well, Kirk, I think
you saw an effort by the

715
00:43:25,667 --> 00:43:28,997
President a few weeks ago to
bring not just the members and

716
00:43:29,000 --> 00:43:31,930
players that will be heavily
involved in this process from

717
00:43:31,934 --> 00:43:37,864
Capitol -- from Capitol Hill
to the White House, but also

718
00:43:37,867 --> 00:43:42,697
members of -- that represent
doctors and pharmaceutical

719
00:43:42,700 --> 00:43:48,730
companies, business, labor --
all of the players involved, to

720
00:43:48,734 --> 00:43:53,704
have the beginning discussion on
a health care reform plan that

721
00:43:53,700 --> 00:43:57,800
will cut costs for
the American people.

722
00:43:57,800 --> 00:44:01,930
This isn't going to be done by
any one person or any one group

723
00:44:01,934 --> 00:44:03,904
of people.

724
00:44:03,900 --> 00:44:07,870
Obviously health care reform and
the health care -- health care

725
00:44:07,867 --> 00:44:13,897
at large is such a huge entity
that all of the players that I

726
00:44:13,900 --> 00:44:18,470
just mentioned are going to have
to be involved, whether they're

727
00:44:18,467 --> 00:44:21,167
in Congress, whether they're in
the White House, whether they

728
00:44:21,166 --> 00:44:26,466
represent constituencies
that will be affected.

729
00:44:26,467 --> 00:44:29,667
But obviously the White House is
going to play a role in that,

730
00:44:29,667 --> 00:44:33,367
Congress is going to play a role
in that, business -- all these

731
00:44:33,367 --> 00:44:35,397
entities will play
a role in that.

732
00:44:35,400 --> 00:44:39,530
I think the President believes
that, as he stated numerous

733
00:44:39,533 --> 00:44:42,303
times throughout the campaign,
that we have to bring -- in

734
00:44:42,300 --> 00:44:45,170
order to reach that consensus,
we're going to have to bring all

735
00:44:45,166 --> 00:44:49,596
of those groups and parties
together to have this discussion

736
00:44:49,600 --> 00:44:53,830
and work out a health care
reform plan that makes sense.

737
00:44:53,834 --> 00:44:55,104
And I think that's the process.

738
00:44:55,100 --> 00:44:55,800
Q: I have one last question.

739
00:44:55,800 --> 00:44:58,570
Has the White House consistently
underestimated the level of

740
00:44:58,567 --> 00:45:02,567
public outrage, whether it's
about failure to pay taxes by

741
00:45:02,567 --> 00:45:05,537
some of your nominees or the
bonuses now to some of the

742
00:45:05,533 --> 00:45:06,633
companies on Wall Street?

743
00:45:06,633 --> 00:45:13,703
MR. GIBBS: No, I would reject
that characterization uniformly.

744
00:45:13,700 --> 00:45:18,600
I think you've seen the
President just this week express

745
00:45:18,600 --> 00:45:19,170
outrage.

746
00:45:19,166 --> 00:45:22,536
I think you've seen the
President do more than just

747
00:45:22,533 --> 00:45:25,803
express outrage about executive
compensation and bonuses and

748
00:45:25,800 --> 00:45:33,230
take crucial and important steps
in order to limit that in a

749
00:45:33,233 --> 00:45:35,833
historical way.

750
00:45:35,834 --> 00:45:38,834
I think the President
understands -- and I think

751
00:45:38,834 --> 00:45:40,704
that's one of the reasons he
is the President -- that he

752
00:45:40,700 --> 00:45:44,930
understands the outrage of
what's happening -- what's

753
00:45:44,934 --> 00:45:49,564
happened inside Washington and
how that is viewed outside of

754
00:45:49,567 --> 00:45:51,467
Washington.

755
00:45:51,467 --> 00:45:54,667
But I think the President
understands that and is taking

756
00:45:54,667 --> 00:45:59,697
steps to ensure that as we go
forward that we're not doing

757
00:45:59,700 --> 00:46:01,830
things the same old way.

758
00:46:01,834 --> 00:46:02,904
Q: Thanks, Robert.

759
00:46:02,900 --> 00:46:03,700
MR. GIBBS: April.

760
00:46:03,700 --> 00:46:04,900
Q: Robert, real fast.

761
00:46:04,900 --> 00:46:07,770
How did the President enjoy and
how did he feel about Jay Leno

762
00:46:07,767 --> 00:46:10,197
last night?

763
00:46:10,200 --> 00:46:11,330
MR. GIBBS: He seemed
to have a good time.

764
00:46:11,333 --> 00:46:13,733
They got back a bit late.

765
00:46:13,734 --> 00:46:19,004
Look, I think the -- you know,
many people in this room lauded

766
00:46:19,000 --> 00:46:30,300
the campaign for its ability to
reach out and talk to people in

767
00:46:30,300 --> 00:46:34,600
society that may have been
disaffected or that weren't

768
00:46:34,600 --> 00:46:37,930
participating and be able to
reach them about their causes

769
00:46:37,934 --> 00:46:43,104
and their concerns, and most
importantly, to give them a

770
00:46:43,100 --> 00:46:46,470
sense and an idea of the
solutions and the path that he

771
00:46:46,467 --> 00:46:52,367
thought this country should be
on to address those challenges.

772
00:46:52,367 --> 00:46:57,337
I think last night was something
very similar to that, and I

773
00:46:57,333 --> 00:47:05,033
think the message that we
released overnight to the people

774
00:47:05,033 --> 00:47:12,963
of Iran was also an extension of
communicating with people where

775
00:47:12,967 --> 00:47:19,997
they are about their cares and
concerns and taking -- making

776
00:47:20,000 --> 00:47:23,770
sure that people understood
where we want to go and the

777
00:47:23,767 --> 00:47:26,337
ideas and the
solutions that we have.

778
00:47:26,333 --> 00:47:29,133
Q: And is the President going
to take the advice, after

779
00:47:29,133 --> 00:47:31,633
understanding the gravity of
what he said about the issue of

780
00:47:31,633 --> 00:47:35,603
Special Olympics, is he going to
take the advice to hire someone

781
00:47:35,600 --> 00:47:38,730
from the Special Olympics, to
bring them here to work here?

782
00:47:38,734 --> 00:47:40,464
MR. GIBBS: I have not seen that.

783
00:47:40,467 --> 00:47:44,767
I know that the President
believes that the Special

784
00:47:44,767 --> 00:47:54,037
Olympics are a triumph of the
human spirit, and I think he

785
00:47:54,033 --> 00:48:02,263
understands that they deserve
a lot better than -- than the

786
00:48:02,266 --> 00:48:05,736
thoughtless joke that he made
last night, and he apologizes

787
00:48:05,734 --> 00:48:06,934
for that.

788
00:48:06,934 --> 00:48:08,204
Thanks, guys.

789
00:48:08,200 --> 00:48:09,130
Q: Have a nice weekend, sir.

790
00:48:09,133 --> 00:48:10,203
MR. GIBBS: You, too.