English subtitles for clip: File:President Obama Speaks at the Associated Press Luncheon.webm
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1 00:00:03,761 --> 00:00:07,531 The President: Well, good afternoon, and thank you to Dean Singleton and the 2 00:00:07,528 --> 00:00:12,228 board of the Associated Press for inviting me here today. 3 00:00:12,227 --> 00:00:16,357 It is a pleasure to speak to all of you -- and to have a 4 00:00:16,361 --> 00:00:18,091 microphone that I can see. 5 00:00:18,094 --> 00:00:21,564 (laughter) 6 00:00:21,561 --> 00:00:25,331 Feel free to transmit any of this to Vladimir if you see him. 7 00:00:25,328 --> 00:00:30,528 (laughter) 8 00:00:30,528 --> 00:00:34,998 Clearly, we're already in the beginning months of another 9 00:00:34,994 --> 00:00:38,594 long, lively election year. 10 00:00:38,594 --> 00:00:42,864 There will be gaffes and minor controversies, 11 00:00:42,861 --> 00:00:48,291 be hot mics and Etch-a-Sketch moments. 12 00:00:48,294 --> 00:00:52,624 You will cover every word that we say, 13 00:00:52,628 --> 00:00:56,658 and we will complain vociferously about the 14 00:00:56,661 --> 00:01:00,261 unflattering words that you write -- unless, of course, 15 00:01:00,261 --> 00:01:02,931 you're writing about the other guy -- in which case, good job. 16 00:01:02,928 --> 00:01:07,928 (laughter) 17 00:01:07,928 --> 00:01:12,228 But there are also big, fundamental issues at stake 18 00:01:12,227 --> 00:01:16,797 right now -- issues that deserve serious debate among every 19 00:01:16,795 --> 00:01:22,395 candidate, and serious coverage among every reporter. 20 00:01:22,394 --> 00:01:26,864 Whoever he may be, the next President will inherit an 21 00:01:26,861 --> 00:01:30,431 economy that is recovering, but not yet recovered, 22 00:01:30,428 --> 00:01:33,458 from the worst economic calamity since the Great Depression. 23 00:01:35,695 --> 00:01:39,725 Too many Americans will still be looking for a job that pays 24 00:01:39,728 --> 00:01:43,458 enough to cover their bills or their mortgage. 25 00:01:43,461 --> 00:01:46,961 Too many citizens will still lack the sort of financial 26 00:01:46,961 --> 00:01:50,731 security that started slipping away years before 27 00:01:50,728 --> 00:01:52,728 this recession hit. 28 00:01:54,227 --> 00:01:57,157 A debt that has grown over the last decade, 29 00:01:57,161 --> 00:02:00,991 primarily as a result of two wars, two massive tax cuts, 30 00:02:00,994 --> 00:02:04,064 and an unprecedented financial crisis, 31 00:02:04,061 --> 00:02:06,061 will have to be paid down. 32 00:02:07,528 --> 00:02:10,458 In the face of all these challenges, 33 00:02:10,461 --> 00:02:13,891 we're going to have to answer a central question as a nation: 34 00:02:16,061 --> 00:02:20,231 What, if anything, can we do to restore a sense of security for 35 00:02:20,227 --> 00:02:22,527 people who are willing to work hard and act 36 00:02:22,528 --> 00:02:24,528 responsibly in this country? 37 00:02:25,928 --> 00:02:30,198 Can we succeed as a country where a shrinking number of 38 00:02:30,194 --> 00:02:33,424 people do exceedingly well, while a growing number struggle 39 00:02:33,428 --> 00:02:36,158 to get by? 40 00:02:36,161 --> 00:02:39,991 Or are we better off when everyone gets a fair shot, 41 00:02:39,994 --> 00:02:42,924 and everyone does their fair share, 42 00:02:42,928 --> 00:02:45,428 and everyone plays by the same rules? 43 00:02:48,594 --> 00:02:51,564 This is not just another run-of-the-mill 44 00:02:51,561 --> 00:02:53,561 political debate. 45 00:02:55,328 --> 00:02:58,198 I've said it's the defining issue of our time, 46 00:02:58,194 --> 00:03:00,864 and I believe it. 47 00:03:00,861 --> 00:03:02,661 It's why I ran in 2008. 48 00:03:02,661 --> 00:03:05,091 It's what my presidency has been about. 49 00:03:05,094 --> 00:03:07,094 It's why I'm running again. 50 00:03:08,761 --> 00:03:11,061 I believe this is a make-or-break moment for the 51 00:03:11,061 --> 00:03:13,331 middle class, and I can't remember a time when the 52 00:03:13,328 --> 00:03:18,198 choice between competing visions of our future has 53 00:03:18,194 --> 00:03:20,194 been so unambiguously clear. 54 00:03:24,227 --> 00:03:27,657 Keep in mind, I have never been somebody who believes 55 00:03:27,661 --> 00:03:30,361 that government can or should try to solve every problem. 56 00:03:32,461 --> 00:03:35,031 Some of you know my first job in Chicago was working with a group 57 00:03:35,027 --> 00:03:39,327 of Catholic churches that often did more good for the people in 58 00:03:39,328 --> 00:03:42,128 their communities than any government program could. 59 00:03:45,628 --> 00:03:48,628 In those same communities I saw that no education policy, 60 00:03:48,628 --> 00:03:51,898 however well crafted, can take the place of a parent's 61 00:03:51,895 --> 00:03:53,895 love and attention. 62 00:03:55,561 --> 00:03:58,231 As President, I've eliminated dozens of programs that weren't 63 00:03:58,227 --> 00:04:02,697 working, and announced over 500 regulatory reforms that will 64 00:04:02,695 --> 00:04:06,665 save businesses and taxpayers billions, 65 00:04:06,661 --> 00:04:10,431 and put annual domestic spending on a path to become the smallest 66 00:04:10,428 --> 00:04:14,028 share of the economy since Dwight Eisenhower held this 67 00:04:14,027 --> 00:04:19,927 office -- since before I was born. 68 00:04:19,928 --> 00:04:22,898 I know that the true engine of job creation in this country is 69 00:04:22,895 --> 00:04:25,265 the private sector, not Washington, 70 00:04:25,261 --> 00:04:28,531 which is why I've cut taxes for small business owners 17 times 71 00:04:28,528 --> 00:04:30,528 over the last three years. 72 00:04:32,261 --> 00:04:35,991 So I believe deeply that the free market is the greatest 73 00:04:35,994 --> 00:04:37,994 force for economic progress in human history. 74 00:04:41,094 --> 00:04:43,994 My mother and the grandparents who raised me instilled the 75 00:04:43,994 --> 00:04:47,724 values of self-reliance and personal responsibility that 76 00:04:47,728 --> 00:04:50,058 remain the cornerstone of the American idea. 77 00:04:52,928 --> 00:04:58,528 But I also share the belief of our first Republican President, 78 00:04:58,528 --> 00:05:03,028 Abraham Lincoln -- a belief that, through government, 79 00:05:03,027 --> 00:05:07,697 we should do together what we cannot do as well for ourselves. 80 00:05:10,795 --> 00:05:13,625 That belief is the reason this country has been able to build a 81 00:05:13,628 --> 00:05:17,598 strong military to keep us safe, and public schools to educate 82 00:05:17,594 --> 00:05:20,094 our children. 83 00:05:20,094 --> 00:05:22,824 That belief is why we've been able to lay down railroads and 84 00:05:22,828 --> 00:05:27,098 highways to facilitate travel and commerce. 85 00:05:27,094 --> 00:05:29,564 That belief is why we've been able to support the work of 86 00:05:29,561 --> 00:05:33,531 scientists and researchers whose discoveries have saved lives, 87 00:05:33,528 --> 00:05:36,828 and unleashed repeated technological revolutions, 88 00:05:36,828 --> 00:05:39,398 and led to countless new jobs and entire industries. 89 00:05:43,261 --> 00:05:46,091 That belief is also why we've sought to ensure that every 90 00:05:46,094 --> 00:05:50,094 citizen can count on some basic measure of security. 91 00:05:52,728 --> 00:05:55,858 We do this because we recognize that no matter how responsibly 92 00:05:55,861 --> 00:06:01,491 we live our lives, any one of us, at any moment, 93 00:06:01,494 --> 00:06:05,824 might face hard times, might face bad luck, 94 00:06:05,828 --> 00:06:10,128 might face a crippling illness or a layoff. 95 00:06:10,127 --> 00:06:12,527 And so we contribute to programs like Medicare and Social 96 00:06:12,528 --> 00:06:15,828 Security, which guarantee health care and a source of income 97 00:06:15,828 --> 00:06:19,128 after a lifetime of hard work. 98 00:06:19,127 --> 00:06:20,827 We provide unemployment insurance, 99 00:06:20,828 --> 00:06:24,858 which protects us against unexpected job loss and 100 00:06:24,861 --> 00:06:27,161 facilitates the labor mobility that makes our 101 00:06:27,161 --> 00:06:29,161 economy so dynamic. 102 00:06:30,895 --> 00:06:35,025 We provide for Medicaid, which makes sure that millions of 103 00:06:35,027 --> 00:06:39,257 seniors in nursing homes and children with disabilities are 104 00:06:39,261 --> 00:06:41,261 getting the care that they need. 105 00:06:42,994 --> 00:06:46,024 For generations, nearly all of these investments -- from 106 00:06:46,027 --> 00:06:49,857 transportation to education to retirement programs -- have been 107 00:06:49,861 --> 00:06:52,191 supported by people in both parties. 108 00:06:54,561 --> 00:06:57,691 As much as we might associate the G.I. Bill with Franklin 109 00:06:57,695 --> 00:07:00,925 Roosevelt, or Medicare with Lyndon Johnson, 110 00:07:00,928 --> 00:07:03,328 it was a Republican, Lincoln, who launched the 111 00:07:03,328 --> 00:07:08,158 Transcontinental Railroad, the National Academy of Sciences, 112 00:07:08,161 --> 00:07:10,161 land grant colleges. 113 00:07:11,661 --> 00:07:14,331 It was Eisenhower who launched the Interstate Highway System 114 00:07:14,328 --> 00:07:19,128 and new investment in scientific research. 115 00:07:19,127 --> 00:07:23,557 It was Richard Nixon who created the Environmental Protection 116 00:07:23,561 --> 00:07:26,631 Agency, Ronald Reagan who worked with Democrats to 117 00:07:26,628 --> 00:07:29,158 save Social Security. 118 00:07:29,161 --> 00:07:31,861 It was George W. Bush who added prescription drug 119 00:07:31,861 --> 00:07:33,861 coverage to Medicare. 120 00:07:36,961 --> 00:07:41,291 What leaders in both parties have traditionally understood 121 00:07:41,294 --> 00:07:43,624 is that these investments aren't part of some scheme 122 00:07:43,628 --> 00:07:45,958 to redistribute wealth from one group to another. 123 00:07:49,828 --> 00:07:54,158 They are expressions of the fact that we are one nation. 124 00:07:54,161 --> 00:07:57,731 These investments benefit us all. 125 00:07:57,728 --> 00:08:01,198 They contribute to genuine, durable economic growth. 126 00:08:04,094 --> 00:08:07,424 Show me a business leader who wouldn't profit if more 127 00:08:07,428 --> 00:08:11,858 Americans could afford to get the skills and education that 128 00:08:11,861 --> 00:08:13,861 today's jobs require. 129 00:08:15,061 --> 00:08:18,831 Ask any company where they'd rather locate and hire workers 130 00:08:18,828 --> 00:08:21,828 -- a country with crumbling roads and bridges, 131 00:08:21,828 --> 00:08:23,758 or one that's committed to high-speed Internet 132 00:08:23,761 --> 00:08:26,191 and high-speed railroads and high-tech research 133 00:08:26,194 --> 00:08:28,194 and development? 134 00:08:30,061 --> 00:08:33,091 It doesn't make us weaker when we guarantee basic security for 135 00:08:33,094 --> 00:08:35,524 the elderly or the sick or those who are actively 136 00:08:35,528 --> 00:08:38,228 looking for work. 137 00:08:38,227 --> 00:08:40,757 What makes us weaker is when fewer and fewer people can 138 00:08:40,761 --> 00:08:45,061 afford to buy the goods and services our businesses sell, 139 00:08:45,061 --> 00:08:47,791 or when entrepreneurs don't have the financial security to take a 140 00:08:47,795 --> 00:08:49,795 chance and start a new business. 141 00:08:52,328 --> 00:08:56,998 What drags down our entire economy is when there's an 142 00:08:56,994 --> 00:09:00,094 ever-widening chasm between the ultra-rich and everybody else. 143 00:09:03,828 --> 00:09:07,458 In this country, broad-based prosperity has never trickled 144 00:09:07,461 --> 00:09:10,991 down from the success of a wealthy few. 145 00:09:10,994 --> 00:09:13,524 It has always come from the success of a strong 146 00:09:13,528 --> 00:09:15,528 and growing middle class. 147 00:09:17,261 --> 00:09:19,591 That's how a generation who went to college on the G.I. 148 00:09:19,594 --> 00:09:22,964 Bill, including my grandfather, helped build the most prosperous 149 00:09:22,961 --> 00:09:24,961 economy the world has ever known. 150 00:09:27,561 --> 00:09:30,991 That's why a CEO like Henry Ford made it his mission to pay his 151 00:09:30,994 --> 00:09:34,594 workers enough so they could buy the cars that they made. 152 00:09:34,594 --> 00:09:40,064 That's why research has shown that countries with less 153 00:09:40,061 --> 00:09:45,861 inequality tend to have stronger and steadier economic growth 154 00:09:45,861 --> 00:09:47,861 over the long run. 155 00:09:51,695 --> 00:09:54,765 And yet, for much of the last century, 156 00:09:54,761 --> 00:09:59,031 we have been having the same argument with folks who keep 157 00:09:59,027 --> 00:10:03,227 peddling some version of trickle-down economics. 158 00:10:05,561 --> 00:10:09,031 They keep telling us that if we'd convert more of our 159 00:10:09,027 --> 00:10:12,127 investments in education and research and health care into 160 00:10:12,127 --> 00:10:18,627 tax cuts -- especially for the wealthy -- our economy 161 00:10:18,628 --> 00:10:20,628 will grow stronger. 162 00:10:21,761 --> 00:10:24,061 They keep telling us that if we'd just strip away more 163 00:10:24,061 --> 00:10:29,831 regulations, and let businesses pollute more and treat workers 164 00:10:29,828 --> 00:10:33,798 and consumers with impunity, that somehow we'd all be 165 00:10:33,795 --> 00:10:35,795 better off. 166 00:10:37,161 --> 00:10:39,391 We're told that when the wealthy become even wealthier, 167 00:10:41,628 --> 00:10:44,398 and corporations are allowed to maximize their profits by 168 00:10:44,394 --> 00:10:47,324 whatever means necessary, it's good for America, 169 00:10:47,328 --> 00:10:49,858 and that their success will automatically translate into 170 00:10:49,861 --> 00:10:52,691 more jobs and prosperity for everybody else. 171 00:10:52,695 --> 00:10:54,695 That's the theory. 172 00:10:58,227 --> 00:11:01,797 Now, the problem for advocates of this theory is that we've 173 00:11:01,795 --> 00:11:06,625 tried their approach -- on a massive scale. 174 00:11:06,628 --> 00:11:09,558 The results of their experiment are there for all to see. 175 00:11:12,961 --> 00:11:14,931 At the beginning of the last decade, 176 00:11:14,928 --> 00:11:17,698 the wealthiest Americans received a huge tax cut 177 00:11:17,695 --> 00:11:23,865 in 2001 and another huge tax cut in 2003. 178 00:11:23,861 --> 00:11:25,761 We were promised that these tax cuts would 179 00:11:25,761 --> 00:11:27,761 lead to faster job growth. 180 00:11:29,161 --> 00:11:31,161 They did not. 181 00:11:32,294 --> 00:11:35,564 The wealthy got wealthier -- we would expect that. 182 00:11:35,561 --> 00:11:40,461 The income of the top 1% has grown by more than 275% 183 00:11:40,461 --> 00:11:45,831 over the last few decades, to an average of $1.3 million a year. 184 00:11:48,895 --> 00:11:50,995 But prosperity sure didn't trickle down. 185 00:11:53,594 --> 00:11:57,264 Instead, during the last decade, we had the slowest job growth in 186 00:11:57,261 --> 00:11:58,261 half a century. 187 00:11:58,261 --> 00:12:03,661 And the typical American family actually saw their incomes fall 188 00:12:03,661 --> 00:12:06,491 by about 6%, even as the economy was growing. 189 00:12:06,494 --> 00:12:12,494 It was a period when insurance companies and mortgage lenders 190 00:12:14,695 --> 00:12:17,925 and financial institutions didn't have to abide by strong 191 00:12:17,928 --> 00:12:21,398 enough regulations, or they found their ways around them. 192 00:12:21,394 --> 00:12:24,264 And what was the result? 193 00:12:24,261 --> 00:12:27,261 Profits for many of these companies soared. 194 00:12:27,261 --> 00:12:30,261 But so did people's health insurance premiums. 195 00:12:30,261 --> 00:12:32,191 Patients were routinely denied care, 196 00:12:32,194 --> 00:12:35,424 often when they needed it most. 197 00:12:35,428 --> 00:12:38,328 Families were enticed, and sometimes just plain tricked, 198 00:12:38,328 --> 00:12:41,798 into buying homes they couldn't afford. 199 00:12:41,795 --> 00:12:43,925 Huge, reckless bets were made with other people's 200 00:12:43,928 --> 00:12:45,158 money on the line. 201 00:12:45,161 --> 00:12:48,561 And our entire financial system was nearly destroyed. 202 00:12:53,494 --> 00:12:55,494 So we tried this theory out. 203 00:12:57,094 --> 00:13:00,824 And you would think that after the results of this experiment 204 00:13:00,828 --> 00:13:06,398 in trickle-down economics, after the results were made painfully 205 00:13:06,394 --> 00:13:11,594 clear, that the proponents of this theory might show some 206 00:13:11,594 --> 00:13:15,394 humility, might moderate their views a bit. 207 00:13:17,594 --> 00:13:19,124 You'd think they'd say, you know what, 208 00:13:19,127 --> 00:13:22,157 maybe some rules and regulations are necessary to protect the 209 00:13:22,161 --> 00:13:25,861 economy and prevent people from being taken advantage of by 210 00:13:25,861 --> 00:13:27,591 insurance companies or credit card companies 211 00:13:27,594 --> 00:13:29,594 or mortgage lenders. 212 00:13:30,628 --> 00:13:33,858 Maybe, just maybe, at a time of growing debt and widening 213 00:13:33,861 --> 00:13:37,631 inequality, we should hold off on giving the wealthiest 214 00:13:37,628 --> 00:13:40,058 Americans another round of big tax cuts. 215 00:13:43,194 --> 00:13:45,924 Maybe when we know that most of today's middle-class jobs 216 00:13:45,928 --> 00:13:49,258 require more than a high school degree, 217 00:13:49,261 --> 00:13:52,691 we shouldn't gut education, or lay off thousands of teachers, 218 00:13:52,695 --> 00:13:54,895 or raise interest rates on college loans, 219 00:13:54,895 --> 00:13:56,895 or take away people's financial aid. 220 00:14:01,795 --> 00:14:04,765 But that's exactly the opposite of what they've done. 221 00:14:07,994 --> 00:14:10,394 Instead of moderating their views even slightly, 222 00:14:13,061 --> 00:14:16,391 the Republicans running Congress right now have doubled down, 223 00:14:18,428 --> 00:14:22,398 and proposed a budget so far to the right it makes the Contract 224 00:14:22,394 --> 00:14:23,894 with America look like the New Deal. 225 00:14:23,895 --> 00:14:28,895 (laughter) 226 00:14:28,895 --> 00:14:32,195 In fact, that renowned liberal, Newt Gingrich, 227 00:14:32,194 --> 00:14:37,094 first called the original version of the budget "radical" 228 00:14:37,094 --> 00:14:40,824 and said it would contribute to "right-wing social engineering." 229 00:14:40,828 --> 00:14:42,828 This is coming from Newt Gingrich. 230 00:14:46,828 --> 00:14:51,458 And yet, this isn't a budget supported by some small rump 231 00:14:51,461 --> 00:14:54,861 group in the Republican Party. 232 00:14:54,861 --> 00:14:57,591 This is now the party's governing platform. 233 00:14:57,594 --> 00:15:00,064 This is what they're running on. 234 00:15:02,861 --> 00:15:05,631 One of my potential opponents, Governor Romney, 235 00:15:05,628 --> 00:15:09,598 has said that he hoped a similar version of this plan from last 236 00:15:09,594 --> 00:15:12,064 year would be introduced as a bill on day one of 237 00:15:12,061 --> 00:15:13,531 his presidency. 238 00:15:13,528 --> 00:15:17,228 He said that he's "very supportive" of this new budget, 239 00:15:17,227 --> 00:15:20,257 and he even called it "marvelous" -- which is 240 00:15:20,261 --> 00:15:23,761 a word you don't often hear when it comes to describing a budget. 241 00:15:23,761 --> 00:15:30,431 (laughter) 242 00:15:30,428 --> 00:15:32,328 It's a word you don't often hear generally. 243 00:15:32,328 --> 00:15:38,958 (laughter) 244 00:15:38,961 --> 00:15:44,331 So here's what this "marvelous" budget does. 245 00:15:47,761 --> 00:15:51,031 Back in the summer, I came to an agreement with Republicans 246 00:15:51,027 --> 00:15:56,157 in Congress to cut roughly $1 trillion in annual spending. 247 00:15:56,161 --> 00:15:59,191 Some of these cuts were about getting rid of waste; 248 00:15:59,194 --> 00:16:02,124 others were about programs that we support but just can't afford 249 00:16:02,127 --> 00:16:05,097 given our deficits and our debt. 250 00:16:05,094 --> 00:16:09,024 And part of the agreement was a guarantee of another trillion in 251 00:16:09,027 --> 00:16:12,257 savings, for a total of about $2 trillion in deficit reduction. 252 00:16:15,494 --> 00:16:18,524 This new House Republican budget, however, 253 00:16:18,528 --> 00:16:23,298 breaks our bipartisan agreement and proposes massive new cuts in 254 00:16:23,294 --> 00:16:27,394 annual domestic spending -- exactly the area where we've 255 00:16:27,394 --> 00:16:30,564 already cut the most. 256 00:16:30,561 --> 00:16:33,591 And I want to actually go through what it would mean 257 00:16:33,594 --> 00:16:37,994 for our country if these cuts were to be spread out evenly. 258 00:16:37,994 --> 00:16:38,994 So bear with me. 259 00:16:38,994 --> 00:16:42,464 I want to go through this -- because I don't think people 260 00:16:42,461 --> 00:16:49,131 fully appreciate the nature of this budget. 261 00:16:49,127 --> 00:16:54,327 The year after next, nearly 10 million college students would 262 00:16:54,328 --> 00:16:57,158 see their financial aid cut by an average of more than 263 00:16:57,161 --> 00:16:59,161 $1,000 each. 264 00:17:00,928 --> 00:17:05,728 There would be 1,600 fewer medical grants, 265 00:17:05,728 --> 00:17:09,298 research grants for things like Alzheimer's and cancer and AIDS. 266 00:17:11,394 --> 00:17:15,394 There would be 4,000 fewer scientific research grants, 267 00:17:15,394 --> 00:17:18,564 eliminating support for 48,000 researchers, 268 00:17:18,561 --> 00:17:20,561 students, and teachers. 269 00:17:22,094 --> 00:17:24,694 Investments in clean energy technologies that are helping 270 00:17:24,695 --> 00:17:27,295 us reduce our dependence on foreign oil would be cut by 271 00:17:27,294 --> 00:17:29,294 nearly a fifth. 272 00:17:32,361 --> 00:17:35,791 If this budget becomes law and the cuts were applied evenly, 273 00:17:35,795 --> 00:17:41,095 starting in 2014, over 200,000 children would lose their chance 274 00:17:41,094 --> 00:17:45,594 to get an early education in the Head Start program. 275 00:17:45,594 --> 00:17:48,794 Two million mothers and young children would be cut from a 276 00:17:48,795 --> 00:17:51,095 program that gives them access to healthy food. 277 00:17:53,328 --> 00:17:57,128 There would be 4,500 fewer federal grants at the Department 278 00:17:57,127 --> 00:18:02,357 of Justice and the FBI to combat violent crime, financial crime, 279 00:18:02,361 --> 00:18:05,591 and help secure our borders. 280 00:18:05,594 --> 00:18:09,364 Hundreds of national parks would be forced to close for part or 281 00:18:09,361 --> 00:18:12,231 all of the year. 282 00:18:12,227 --> 00:18:15,227 We wouldn't have the capacity to enforce the laws that protect 283 00:18:15,227 --> 00:18:19,357 the air we breathe, the water we drink, or the food that we eat. 284 00:18:21,828 --> 00:18:25,398 Cuts to the FAA would likely result in more flight 285 00:18:25,394 --> 00:18:29,594 cancellations, delays, and the complete elimination of air 286 00:18:29,594 --> 00:18:31,964 traffic control services in parts of the country. 287 00:18:34,394 --> 00:18:37,724 Over time, our weather forecasts would become less accurate 288 00:18:37,728 --> 00:18:41,098 because we wouldn't be able to afford to launch new satellites. 289 00:18:41,094 --> 00:18:43,964 And that means governors and mayors would have to wait longer 290 00:18:43,961 --> 00:18:46,891 to order evacuations in the event of a hurricane. 291 00:18:50,461 --> 00:18:53,391 That's just a partial sampling of the consequences 292 00:18:53,394 --> 00:18:55,394 of this budget. 293 00:18:58,594 --> 00:19:02,264 Now, you can anticipate Republicans may say, well, 294 00:19:02,261 --> 00:19:06,291 we'll avoid some of these cuts -- since they don't 295 00:19:06,294 --> 00:19:08,324 specify exactly the cuts that they would make. 296 00:19:10,928 --> 00:19:14,798 But they can only avoid some of these cuts if they cut even 297 00:19:14,795 --> 00:19:17,665 deeper in other areas. 298 00:19:17,661 --> 00:19:20,131 This is math. 299 00:19:20,127 --> 00:19:23,097 If they want to make smaller cuts to medical research that 300 00:19:23,094 --> 00:19:26,224 means they've got to cut even deeper in funding for things 301 00:19:26,227 --> 00:19:28,457 like teaching and law enforcement. 302 00:19:28,461 --> 00:19:30,291 The converse is true as well. 303 00:19:30,294 --> 00:19:32,794 If they want to protect early childhood education, 304 00:19:32,795 --> 00:19:36,195 it will mean further reducing things like financial aid for 305 00:19:36,194 --> 00:19:39,764 young people trying to afford college. 306 00:19:39,761 --> 00:19:45,191 Perhaps they will never tell us where the knife will fall -- but 307 00:19:45,194 --> 00:19:49,424 you can be sure that with cuts this deep, 308 00:19:49,428 --> 00:19:52,558 there is no secret plan or formula that will be able to 309 00:19:52,561 --> 00:19:55,631 protect the investments we need to help our economy grow. 310 00:19:58,994 --> 00:20:01,924 This is not conjecture. 311 00:20:01,928 --> 00:20:04,758 I am not exaggerating. 312 00:20:04,761 --> 00:20:06,761 These are facts. 313 00:20:08,661 --> 00:20:11,231 And these are just the cuts that would happen 314 00:20:11,227 --> 00:20:13,227 the year after next. 315 00:20:14,795 --> 00:20:18,965 If this budget became law, by the middle of the century, 316 00:20:18,961 --> 00:20:21,891 funding for the kinds of things I just mentioned would have to 317 00:20:21,895 --> 00:20:25,995 be cut by about 95%. 318 00:20:25,994 --> 00:20:27,394 Let me repeat that. 319 00:20:27,394 --> 00:20:30,064 Those categories I just mentioned we would have 320 00:20:30,061 --> 00:20:32,731 to cut by 95 percent. 321 00:20:32,728 --> 00:20:37,428 As a practical matter, the federal budget would basically 322 00:20:37,428 --> 00:20:41,028 amount to whatever is left in entitlements, defense spending, 323 00:20:41,027 --> 00:20:43,127 and interest on the national debt -- period. 324 00:20:45,328 --> 00:20:47,758 Money for these investments that have traditionally been 325 00:20:47,761 --> 00:20:53,031 supported on a bipartisan basis would be practically eliminated. 326 00:20:55,594 --> 00:20:58,094 And the same is true for other priorities like transportation, 327 00:20:58,094 --> 00:21:00,864 and homeland security, and veterans' programs for the men 328 00:21:00,861 --> 00:21:03,761 and women who have risked their lives for this country. 329 00:21:03,761 --> 00:21:05,531 This is not an exaggeration. 330 00:21:05,528 --> 00:21:07,528 Check it out yourself. 331 00:21:11,728 --> 00:21:14,828 And this is to say nothing about what the budget does 332 00:21:14,828 --> 00:21:16,828 to health care. 333 00:21:19,328 --> 00:21:21,698 We're told that Medicaid would simply be handed over to the 334 00:21:21,695 --> 00:21:25,425 states -- that's the pitch: Let's get it out of the 335 00:21:25,428 --> 00:21:27,528 central bureaucracy. 336 00:21:27,528 --> 00:21:29,798 The states can experiment. 337 00:21:29,795 --> 00:21:32,395 They'll be able to run the programs a lot better. 338 00:21:35,127 --> 00:21:36,597 But here's the deal the states would be getting. 339 00:21:36,594 --> 00:21:40,664 They would have to be running these programs in the face of 340 00:21:40,661 --> 00:21:46,161 the largest cut to Medicaid that has ever been proposed -- a cut 341 00:21:46,161 --> 00:21:47,831 that, according to one nonpartisan group, 342 00:21:47,828 --> 00:21:53,898 would take away health care for about 19 million Americans -- 343 00:21:53,895 --> 00:21:55,895 19 million. 344 00:21:57,161 --> 00:21:59,161 Who are these Americans? 345 00:22:01,661 --> 00:22:05,861 Many are someone's grandparents who, without Medicaid, 346 00:22:05,861 --> 00:22:08,961 won't be able to afford nursing home care without Medicaid. 347 00:22:12,094 --> 00:22:14,094 Many are poor children. 348 00:22:16,027 --> 00:22:19,957 Some are middle-class families who have children with autism or 349 00:22:19,961 --> 00:22:21,961 Down's Syndrome. 350 00:22:23,528 --> 00:22:27,198 Some are kids with disabilities so severe that they require 351 00:22:27,194 --> 00:22:29,624 24-hour care. 352 00:22:29,628 --> 00:22:31,628 These are the people who count on Medicaid. 353 00:22:36,394 --> 00:22:38,394 Then there's Medicare. 354 00:22:39,961 --> 00:22:42,891 Because health care costs keep rising and the Baby Boom 355 00:22:42,895 --> 00:22:46,525 generation is retiring, Medicare, we all know, 356 00:22:46,528 --> 00:22:49,528 is one of the biggest drivers of our long-term deficit. 357 00:22:49,528 --> 00:22:53,498 That's a challenge we have to meet by bringing down the cost 358 00:22:53,494 --> 00:22:56,564 of health care overall so that seniors and taxpayers can share 359 00:22:56,561 --> 00:22:58,561 in the savings. 360 00:22:59,661 --> 00:23:01,961 But here's the solution proposed by the Republicans 361 00:23:01,961 --> 00:23:04,891 in Washington, and embraced by most of their candidates for 362 00:23:04,895 --> 00:23:08,425 president: Instead of being enrolled in Medicare when they 363 00:23:08,428 --> 00:23:12,658 turn 65, seniors who retire a decade from now would get a 364 00:23:12,661 --> 00:23:16,531 voucher that equals the cost of the second cheapest health care 365 00:23:16,528 --> 00:23:18,528 plan in their area. 366 00:23:19,895 --> 00:23:23,865 If Medicare is more expensive than that private plan, 367 00:23:23,861 --> 00:23:26,391 they'll have to pay more if they want to enroll in 368 00:23:26,394 --> 00:23:29,264 traditional Medicare. 369 00:23:29,261 --> 00:23:33,891 If health care costs rise faster than the amount of the voucher 370 00:23:33,895 --> 00:23:36,595 -- as, by the way, they've been doing for decades -- 371 00:23:36,594 --> 00:23:39,294 that's too bad. 372 00:23:39,294 --> 00:23:41,294 Seniors bear the risk. 373 00:23:43,227 --> 00:23:46,297 If the voucher isn't enough to buy a private plan with 374 00:23:46,294 --> 00:23:51,364 the specific doctors and care that you need, that's too bad. 375 00:23:51,361 --> 00:23:53,591 So most experts will tell you the way this voucher 376 00:23:53,594 --> 00:23:56,324 plan encourages savings is not through better 377 00:23:56,328 --> 00:23:57,998 care at cheaper cost. 378 00:23:57,994 --> 00:24:01,294 The way these private insurance companies save money is by 379 00:24:01,294 --> 00:24:04,664 designing and marketing plans to attract the youngest and 380 00:24:04,661 --> 00:24:08,191 healthiest seniors -- cherry-picking -- leaving 381 00:24:08,194 --> 00:24:11,524 the older and sicker seniors in traditional Medicare, 382 00:24:11,528 --> 00:24:13,758 where they have access to a wide range of doctors 383 00:24:13,761 --> 00:24:14,761 and guaranteed care. 384 00:24:14,761 --> 00:24:17,761 But that, of course, makes the traditional Medicare program 385 00:24:17,761 --> 00:24:21,691 even more expensive, and raise premiums even further. 386 00:24:23,761 --> 00:24:26,061 The net result is that our country will end up spending 387 00:24:26,061 --> 00:24:29,261 more on health care, and the only reason the government will 388 00:24:29,261 --> 00:24:32,091 save any money -- it won't be on our books -- is because we've 389 00:24:32,094 --> 00:24:34,164 shifted it to seniors. 390 00:24:34,161 --> 00:24:36,261 They'll bear more of the costs themselves. 391 00:24:40,795 --> 00:24:44,665 It's a bad idea, and it will ultimately end Medicare as 392 00:24:44,661 --> 00:24:49,891 we know it. 393 00:24:49,895 --> 00:24:52,465 Now, the proponents of this budget will tell us we have 394 00:24:52,461 --> 00:24:56,461 to make all these draconian cuts because our deficit is so large; 395 00:24:56,461 --> 00:25:00,791 this is an existential crisis, we have to think about future 396 00:25:00,795 --> 00:25:04,025 generations, so on and so on. 397 00:25:07,328 --> 00:25:11,558 And that argument might have a shred of credibility were it not 398 00:25:11,561 --> 00:25:18,261 for their proposal to also spend $4.6 trillion over the next 399 00:25:18,261 --> 00:25:20,161 decade on lower tax rates. 400 00:25:24,094 --> 00:25:27,294 We're told that these tax cuts will supposedly be paid for by 401 00:25:27,294 --> 00:25:30,924 closing loopholes and eliminating wasteful deductions. 402 00:25:34,695 --> 00:25:39,525 But the Republicans in Congress refuse to list a single tax 403 00:25:39,528 --> 00:25:42,558 loophole they are willing to close. 404 00:25:42,561 --> 00:25:44,561 Not one. 405 00:25:46,928 --> 00:25:50,158 And by the way, there is no way to get even close 406 00:25:50,161 --> 00:25:56,431 to $4.6 trillion in savings without dramatically reducing 407 00:25:56,428 --> 00:26:01,798 all kinds of tax breaks that go to middle-class families -- 408 00:26:01,795 --> 00:26:05,965 tax breaks for health care, tax breaks for retirement, 409 00:26:05,961 --> 00:26:07,961 tax breaks for homeownership. 410 00:26:11,127 --> 00:26:14,327 Meanwhile, these proposed tax breaks would come on top of more 411 00:26:14,328 --> 00:26:18,098 than a trillion dollars in tax giveaways for people making more 412 00:26:18,094 --> 00:26:20,364 than $250,000 a year. 413 00:26:23,461 --> 00:26:28,761 That's an average of at least $150,000 for every millionaire 414 00:26:28,761 --> 00:26:36,191 in this country -- $150,000. 415 00:26:36,194 --> 00:26:41,764 Let's just step back for a second and look at what $150,000 416 00:26:41,761 --> 00:26:46,391 pays for: A year's worth of prescription drug coverage 417 00:26:46,394 --> 00:26:49,224 for a senior citizen. 418 00:26:49,227 --> 00:26:53,027 Plus a new school computer lab. 419 00:26:53,027 --> 00:26:57,457 Plus a year of medical care for a returning veteran. 420 00:26:57,461 --> 00:27:01,891 Plus a medical research grant for a chronic disease. 421 00:27:01,895 --> 00:27:06,725 Plus a year's salary for a firefighter or police officer. 422 00:27:06,728 --> 00:27:11,258 Plus a tax credit to make a year of college more affordable. 423 00:27:11,261 --> 00:27:13,561 Plus a year's worth of financial aid. 424 00:27:13,561 --> 00:27:19,991 One hundred fifty thousand dollars could pay for all of 425 00:27:19,994 --> 00:27:25,094 these things combined -- investments in education and 426 00:27:25,094 --> 00:27:27,994 research that are essential to economic growth that benefits 427 00:27:27,994 --> 00:27:31,164 all of us. 428 00:27:31,161 --> 00:27:36,661 For $150,000, that would be going to each millionaire and 429 00:27:36,661 --> 00:27:38,331 billionaire in this country. 430 00:27:38,328 --> 00:27:42,298 This budget says we'd be better off as a country if that's how 431 00:27:42,294 --> 00:27:43,164 we spend it. 432 00:27:47,294 --> 00:27:50,464 This is supposed to be about paying down our deficit? 433 00:27:53,994 --> 00:27:54,894 It's laughable. 434 00:27:57,861 --> 00:28:04,431 The bipartisan Simpson-Bowles commission that I created -- 435 00:28:04,428 --> 00:28:11,098 which the Republicans originally were for until I was for it -- 436 00:28:11,094 --> 00:28:12,764 that was about paying down the deficit. 437 00:28:12,761 --> 00:28:17,831 And I didn't agree with all the details. 438 00:28:17,828 --> 00:28:24,198 I proposed about $600 billion more in revenue and $600 billion 439 00:28:24,194 --> 00:28:27,894 -- I'm sorry -- it proposed about $600 billion more in 440 00:28:27,895 --> 00:28:31,295 revenue and about $600 billion more in defense cuts than I 441 00:28:31,294 --> 00:28:32,864 proposed in my own budget. 442 00:28:35,394 --> 00:28:37,694 But Bowles-Simpson was a serious, honest, 443 00:28:37,695 --> 00:28:40,295 balanced effort between Democrats and Republicans 444 00:28:40,294 --> 00:28:41,664 to bring down the deficit. 445 00:28:44,928 --> 00:28:46,498 That's why, although it differs in some ways, 446 00:28:46,494 --> 00:28:54,564 my budget takes a similarly balanced approach: Cuts in 447 00:28:54,561 --> 00:28:57,961 discretionary spending, cuts in mandatory spending, 448 00:28:57,961 --> 00:28:59,961 increased revenue. 449 00:29:02,061 --> 00:29:04,361 This congressional Republican budget is 450 00:29:04,361 --> 00:29:06,361 something different altogether. 451 00:29:09,695 --> 00:29:12,325 It is a Trojan Horse. 452 00:29:12,328 --> 00:29:14,628 Disguised as deficit reduction plans, 453 00:29:14,628 --> 00:29:18,698 it is really an attempt to impose a radical vision 454 00:29:18,695 --> 00:29:20,165 on our country. 455 00:29:20,161 --> 00:29:24,191 It is thinly veiled social Darwinism. 456 00:29:24,194 --> 00:29:27,994 It is antithetical to our entire history as a land of opportunity 457 00:29:27,994 --> 00:29:30,424 and upward mobility for everybody who's willing to work 458 00:29:30,428 --> 00:29:35,498 for it; a place where prosperity doesn't trickle down from the 459 00:29:35,494 --> 00:29:38,324 top, but grows outward from the heart of the middle class. 460 00:29:40,661 --> 00:29:43,461 And by gutting the very things we need to grow an economy 461 00:29:43,461 --> 00:29:46,961 that's built to last -- education and training, 462 00:29:46,961 --> 00:29:51,261 research and development, our infrastructure -- it 463 00:29:51,261 --> 00:29:53,261 is a prescription for decline. 464 00:29:55,961 --> 00:29:59,691 And everybody here should understand that because there's 465 00:29:59,695 --> 00:30:02,625 very few people here who haven't benefitted at some point from 466 00:30:02,628 --> 00:30:06,028 those investments that were made in the '50s and the '60s and the 467 00:30:06,027 --> 00:30:07,027 '70s and the '80s. 468 00:30:07,027 --> 00:30:13,027 That's part of how we got ahead. 469 00:30:20,494 --> 00:30:23,594 And now, we're going to be pulling up those ladders up 470 00:30:23,594 --> 00:30:25,594 for the next generation? 471 00:30:28,961 --> 00:30:31,261 So in the months ahead, I will be fighting as hard as I know 472 00:30:31,261 --> 00:30:38,331 how for this truer vision of what the United States 473 00:30:38,328 --> 00:30:40,328 of America is all about. 474 00:30:42,127 --> 00:30:45,197 Absolutely, we have to get serious about the deficit. 475 00:30:45,194 --> 00:30:47,994 And that will require tough choices and sacrifice. 476 00:30:47,994 --> 00:30:50,924 And I've already shown myself willing to make these tough 477 00:30:50,928 --> 00:30:53,958 choices when I signed into law the biggest spending cut of any 478 00:30:53,961 --> 00:30:55,961 President in recent memory. 479 00:30:58,461 --> 00:31:01,731 In fact, if you adjust for the economy, 480 00:31:01,728 --> 00:31:04,358 the Congressional Budget Office says the overall spending next 481 00:31:04,361 --> 00:31:07,831 year will be lower than any year under Ronald Reagan. 482 00:31:07,828 --> 00:31:14,298 And I'm willing to make more of those difficult spending 483 00:31:14,294 --> 00:31:16,724 decisions in the months ahead. 484 00:31:16,728 --> 00:31:20,058 But I've said it before and I'll say it again -- there has to be 485 00:31:20,061 --> 00:31:21,861 some balance. 486 00:31:21,861 --> 00:31:23,931 All of us have to do our fair share. 487 00:31:27,361 --> 00:31:30,331 I've also put forward a detailed plan that would reform and 488 00:31:30,328 --> 00:31:33,658 strengthen Medicare and Medicaid. 489 00:31:33,661 --> 00:31:35,161 By the beginning of the next decade, 490 00:31:35,161 --> 00:31:38,131 it achieves the same amount of annual health savings as the 491 00:31:38,127 --> 00:31:41,497 plan proposed by Simpson-Bowles -- the Simpson-Bowles 492 00:31:41,494 --> 00:31:45,294 commission, and it does so by making changes that people in 493 00:31:45,294 --> 00:31:47,264 my party haven't always been comfortable with. 494 00:31:51,161 --> 00:31:54,031 But instead of saving money by shifting costs to seniors, 495 00:31:54,027 --> 00:31:56,557 like the congressional Republican plan proposes, 496 00:31:56,561 --> 00:32:00,331 our approach would lower the cost of health care throughout 497 00:32:00,328 --> 00:32:02,598 the entire system. 498 00:32:02,594 --> 00:32:04,794 It goes after excessive subsidies to prescription 499 00:32:04,795 --> 00:32:06,165 drug companies. 500 00:32:06,161 --> 00:32:08,531 It gets more efficiency out of Medicaid without gutting 501 00:32:08,528 --> 00:32:10,358 the program. 502 00:32:10,361 --> 00:32:12,991 It asks the very wealthiest seniors to 503 00:32:12,994 --> 00:32:14,864 pay a little bit more. 504 00:32:14,861 --> 00:32:18,231 It changes the way we pay for health care -- not by procedure 505 00:32:18,227 --> 00:32:19,897 or the number of days spent in a hospital, 506 00:32:19,895 --> 00:32:22,365 but with new incentives for doctors and hospitals 507 00:32:22,361 --> 00:32:24,361 to improve their results. 508 00:32:25,628 --> 00:32:29,198 And it slows the growth of Medicare costs by strengthening 509 00:32:29,194 --> 00:32:32,894 an independent commission -- a commission not made up of 510 00:32:32,895 --> 00:32:35,195 bureaucrats from government or insurance companies, 511 00:32:35,194 --> 00:32:38,624 but doctors and nurses and medical experts and consumers, 512 00:32:38,628 --> 00:32:41,728 who will look at all the evidence and recommend the best 513 00:32:41,728 --> 00:32:45,158 way to reduce unnecessary health care spending while protecting 514 00:32:45,161 --> 00:32:47,591 access to the care that the seniors need. 515 00:32:51,594 --> 00:32:55,224 We also have a much different approach when it comes to taxes 516 00:32:55,227 --> 00:32:58,827 -- an approach that says if we're serious about paying down 517 00:32:58,828 --> 00:33:03,458 our debt, we can't afford to spend trillions more on tax cuts 518 00:33:03,461 --> 00:33:08,191 for folks like me, for wealthy Americans who don't need them 519 00:33:08,194 --> 00:33:09,364 and weren't even asking for them, 520 00:33:09,361 --> 00:33:11,361 and that the country cannot afford. 521 00:33:14,194 --> 00:33:16,924 At a time when the share of national income flowing to the 522 00:33:16,928 --> 00:33:20,928 top 1% of people in this country has climbed to levels 523 00:33:20,928 --> 00:33:29,028 last seen in the 1920s, those same folks are paying taxes at 524 00:33:29,027 --> 00:33:31,097 one of the lowest rates in 50 years. 525 00:33:34,428 --> 00:33:37,928 As both I and Warren Buffett have pointed out many times now, 526 00:33:37,928 --> 00:33:40,828 he's paying a lower tax rate than his secretary. 527 00:33:40,828 --> 00:33:41,828 That is not fair. 528 00:33:41,828 --> 00:33:42,828 It is not right. 529 00:33:42,828 --> 00:33:45,128 And the choice is really very simple. 530 00:33:47,161 --> 00:33:51,331 If you want to keep these tax rates and deductions in place -- 531 00:33:51,328 --> 00:33:55,598 or give even more tax breaks to the wealthy, 532 00:33:55,594 --> 00:33:59,224 as the Republicans in Congress propose -- then one of two 533 00:33:59,227 --> 00:34:05,357 things happen: Either it means higher deficits, 534 00:34:05,361 --> 00:34:09,091 or it means more sacrifice from the middle class. 535 00:34:09,094 --> 00:34:11,064 Seniors will have to pay more for Medicare. 536 00:34:11,061 --> 00:34:13,631 College students will lose some of their financial aid. 537 00:34:13,628 --> 00:34:16,758 Working families who are scraping by will have to do more 538 00:34:16,761 --> 00:34:19,761 because the richest Americans are doing less. 539 00:34:23,594 --> 00:34:25,924 I repeat what I've said before: That is not class warfare, 540 00:34:25,928 --> 00:34:27,928 that is not class envy, that is math. 541 00:34:33,061 --> 00:34:35,461 If that's the choice that members of Congress want to 542 00:34:35,461 --> 00:34:38,731 make, then we're going to make sure every American 543 00:34:38,728 --> 00:34:41,528 knows about it. 544 00:34:41,528 --> 00:34:43,428 In a few weeks, there will be a vote on what we've called the 545 00:34:43,428 --> 00:34:46,128 Buffett Rule. 546 00:34:46,127 --> 00:34:49,297 Simple concept: If you make more than a million dollars a year -- 547 00:34:49,294 --> 00:34:52,324 not that you have a million dollars -- if you make more than 548 00:34:52,328 --> 00:34:56,228 a million dollars annually, then you should pay at least the same 549 00:34:56,227 --> 00:34:58,697 percentage of your income in taxes as middle-class 550 00:34:58,695 --> 00:35:00,695 families do. 551 00:35:02,328 --> 00:35:04,898 On the other hand, if you make under $250,000 552 00:35:04,895 --> 00:35:08,925 a year -- like 98 percent of American families do -- 553 00:35:08,928 --> 00:35:10,928 then your taxes shouldn't go up. 554 00:35:12,594 --> 00:35:14,594 That's the proposal. 555 00:35:16,761 --> 00:35:21,631 Now, you'll hear some people point out that the Buffett Rule 556 00:35:21,628 --> 00:35:25,328 alone won't raise enough revenue to solve our deficit problems. 557 00:35:28,795 --> 00:35:33,565 Maybe not, but it's definitely a step in the right direction. 558 00:35:33,561 --> 00:35:36,231 And I intend to keep fighting for this kind of balance and 559 00:35:36,227 --> 00:35:38,957 fairness until the other side starts listening, 560 00:35:38,961 --> 00:35:41,491 because I believe this is what the American people want. 561 00:35:43,761 --> 00:35:46,631 I believe this is the best way to pay for the investments we 562 00:35:46,628 --> 00:35:51,028 need to grow our economy and strengthen the middle class. 563 00:35:51,027 --> 00:35:53,027 And by the way, I believe it's the right thing to do. 564 00:35:57,528 --> 00:36:00,628 This larger debate that we will be having and that you will be 565 00:36:00,628 --> 00:36:04,698 covering in the coming year about the size and role of 566 00:36:04,695 --> 00:36:10,365 government, this debate has been with us since our founding days. 567 00:36:13,094 --> 00:36:15,424 And during moments of great challenge and change, 568 00:36:15,428 --> 00:36:17,928 like the ones that we're living through now, 569 00:36:17,928 --> 00:36:20,528 the debate gets sharper; it gets more vigorous. 570 00:36:20,528 --> 00:36:22,528 That's a good thing. 571 00:36:26,528 --> 00:36:29,928 As a country that prizes both our individual freedom and our 572 00:36:29,928 --> 00:36:33,098 obligations to one another, this is one of the most important 573 00:36:33,094 --> 00:36:35,094 debates that we can have. 574 00:36:37,594 --> 00:36:40,364 But no matter what we argue or where we stand, 575 00:36:40,361 --> 00:36:43,461 we have always held certain beliefs as Americans. 576 00:36:46,261 --> 00:36:49,031 We believe that in order to preserve our own freedoms 577 00:36:49,027 --> 00:36:51,397 and pursue our own happiness, we can't 578 00:36:51,394 --> 00:36:53,994 just think about ourselves. 579 00:36:53,994 --> 00:36:55,794 We have to think about the country that made those 580 00:36:55,795 --> 00:36:57,765 liberties possible. 581 00:36:58,828 --> 00:37:00,928 We have to think about our fellow citizens with whom 582 00:37:00,928 --> 00:37:02,928 we share a community. 583 00:37:04,928 --> 00:37:07,698 We have to think about what's required to preserve the 584 00:37:07,695 --> 00:37:10,125 American Dream for future generations. 585 00:37:10,127 --> 00:37:16,127 And this sense of responsibility -- to each other and our country 586 00:37:20,061 --> 00:37:22,991 -- this isn't a partisan feeling. 587 00:37:22,994 --> 00:37:26,894 This isn't a Democratic or Republican idea. 588 00:37:26,895 --> 00:37:27,895 It's patriotism. 589 00:37:27,895 --> 00:37:34,425 And if we keep that in mind, and uphold our obligations to one 590 00:37:34,428 --> 00:37:37,458 another and to this larger enterprise that is America, 591 00:37:37,461 --> 00:37:41,061 then I have no doubt that we will continue our long and 592 00:37:41,061 --> 00:37:45,491 prosperous journey as the greatest nation on Earth. 593 00:37:45,494 --> 00:37:46,564 Thank you. 594 00:37:46,561 --> 00:37:47,331 God bless you. 595 00:37:47,328 --> 00:37:48,658 God bless the United States of America. 596 00:37:48,661 --> 00:37:56,291 (applause) 597 00:37:56,294 --> 00:37:56,994 Thank you. 598 00:37:56,994 --> 00:38:08,364 (applause) 599 00:38:08,361 --> 00:38:09,061 Thank you very much. 600 00:38:09,061 --> 00:38:13,431 (applause) 601 00:38:13,428 --> 00:38:14,158 Thank you. 602 00:38:14,161 --> 00:38:18,631 (applause) 603 00:38:18,628 --> 00:38:19,958 Mr. Singleton: Thank you, Mr. President. 604 00:38:19,961 --> 00:38:23,031 We appreciate so much you being with us today. 605 00:38:23,027 --> 00:38:25,097 I have some questions from the audience, 606 00:38:25,094 --> 00:38:28,064 which I will ask -- and I'll be more careful than I was 607 00:38:28,061 --> 00:38:30,391 last time we did this. 608 00:38:30,394 --> 00:38:33,224 Republicans have been sharply critical of your 609 00:38:33,227 --> 00:38:35,957 budget ideas as well. 610 00:38:35,961 --> 00:38:39,631 What can you say to the Americans who just want both 611 00:38:39,628 --> 00:38:45,028 sides to stop fighting and get some work done on their behalf? 612 00:38:45,027 --> 00:38:48,257 The President: Well, I completely understand the American 613 00:38:48,261 --> 00:38:56,261 people's frustrations, because the truth is that these are 614 00:38:56,261 --> 00:39:00,231 eminently solvable problems. 615 00:39:00,227 --> 00:39:04,097 I know that Christine Lagarde is here from the IMF, 616 00:39:04,094 --> 00:39:07,264 and she's looking at the books of a lot of other countries 617 00:39:07,261 --> 00:39:10,061 around the world. 618 00:39:10,061 --> 00:39:14,291 The kinds of challenges they face fiscally are so much more 619 00:39:14,294 --> 00:39:19,564 severe than anything that we confront -- if we make some 620 00:39:19,561 --> 00:39:21,961 sensible decisions. 621 00:39:21,961 --> 00:39:25,391 So the American people's impulses are absolutely right. 622 00:39:25,394 --> 00:39:29,664 These are solvable problems if people of good faith came 623 00:39:29,661 --> 00:39:33,631 together and were willing to compromise. 624 00:39:36,261 --> 00:39:44,261 The challenge we have right now is that we have on one side, 625 00:39:44,261 --> 00:39:46,591 a party that will brook no compromise. 626 00:39:48,828 --> 00:39:52,128 And this is not just my assertion. 627 00:39:56,194 --> 00:39:59,464 We had presidential candidates who stood on a stage and were 628 00:39:59,461 --> 00:40:04,961 asked, "Would you accept a budget package, 629 00:40:04,961 --> 00:40:13,891 a deficit reduction plan, that involved $10 of cuts for every 630 00:40:13,895 --> 00:40:17,225 dollar in revenue increases?" 631 00:40:17,227 --> 00:40:23,157 Ten-to-one ratio of spending cuts to revenue. 632 00:40:25,761 --> 00:40:27,761 Not one of them raised their hand. 633 00:40:29,895 --> 00:40:32,295 Think about that. 634 00:40:32,294 --> 00:40:40,264 Ronald Reagan, who, as I recall, is not accused of being a 635 00:40:40,261 --> 00:40:46,731 tax-and-spend socialist, understood repeatedly that 636 00:40:46,728 --> 00:40:49,098 when the deficit started to get out of control, 637 00:40:49,094 --> 00:40:54,094 that for him to make a deal he would have to propose both 638 00:40:54,094 --> 00:40:57,294 spending cuts and tax increases. 639 00:40:57,294 --> 00:40:59,294 Did it multiple times. 640 00:41:00,628 --> 00:41:03,358 He could not get through a Republican primary today. 641 00:41:08,194 --> 00:41:14,194 So let's look at Bowles-Simpson. 642 00:41:14,194 --> 00:41:18,864 Essentially, my differences with Bowles-Simpson were I actually 643 00:41:18,861 --> 00:41:26,731 proposed less revenue and slightly lower defense 644 00:41:26,728 --> 00:41:28,728 spending cuts. 645 00:41:32,628 --> 00:41:37,198 The Republicans want to increase defense spending and take in no 646 00:41:37,194 --> 00:41:42,564 revenue, which makes it impossible to balance the 647 00:41:42,561 --> 00:41:47,031 deficit under the terms that Bowles-Simpson laid out -- 648 00:41:47,027 --> 00:41:50,257 unless you essentially eliminate discretionary spending. 649 00:41:50,261 --> 00:41:52,091 You don't just cut discretionary spending. 650 00:41:52,094 --> 00:41:57,224 Everything we think of as being pretty important -- 651 00:41:57,227 --> 00:42:00,697 from education to basic science and research to transportation 652 00:42:00,695 --> 00:42:03,765 spending to national parks to environmental protection -- we'd 653 00:42:03,761 --> 00:42:05,761 essentially have to eliminate. 654 00:42:09,161 --> 00:42:14,031 I guess another way of thinking about this is -- and this bears 655 00:42:14,027 --> 00:42:15,557 on your reporting. 656 00:42:15,561 --> 00:42:22,391 I think that there is oftentimes the impulse to suggest that if 657 00:42:22,394 --> 00:42:28,664 the two parties are disagreeing, then they're equally at fault 658 00:42:28,661 --> 00:42:30,561 and the truth lies somewhere in the middle, 659 00:42:30,561 --> 00:42:36,561 and an equivalence is presented -- which reinforces I think 660 00:42:40,061 --> 00:42:43,431 people's cynicism about Washington generally. 661 00:42:43,428 --> 00:42:46,328 This is not one of those situations where there's 662 00:42:46,328 --> 00:42:49,228 an equivalence. 663 00:42:49,227 --> 00:42:52,427 I've got some of the most liberal Democrats in Congress 664 00:42:52,428 --> 00:42:55,728 who were prepared to make significant changes to 665 00:42:55,728 --> 00:43:02,598 entitlements that go against their political interests, 666 00:43:02,594 --> 00:43:07,324 and who said they were willing to do it. 667 00:43:07,328 --> 00:43:10,958 And we couldn't get a Republican to stand up and say, 668 00:43:10,961 --> 00:43:14,631 we'll raise some revenue, or even to suggest that we won't 669 00:43:14,628 --> 00:43:20,628 give more tax cuts to people who don't need them. 670 00:43:22,728 --> 00:43:26,928 And so I think it's important to put the current debate in 671 00:43:26,928 --> 00:43:29,158 some historical context. 672 00:43:29,161 --> 00:43:31,731 It's not just true, by the way, of the budget. 673 00:43:31,728 --> 00:43:36,098 It's true of a lot of the debates that we're 674 00:43:36,094 --> 00:43:38,164 having out here. 675 00:43:38,161 --> 00:43:44,331 Cap and trade was originally proposed by conservatives and 676 00:43:44,328 --> 00:43:51,498 Republicans as a market-based solution to solving 677 00:43:51,494 --> 00:43:53,494 environmental problems. 678 00:43:56,394 --> 00:43:58,094 The first President to talk about cap and trade 679 00:43:58,094 --> 00:44:00,624 was George H.W. Bush. 680 00:44:00,628 --> 00:44:04,698 Now you've got the other party essentially saying we shouldn't 681 00:44:04,695 --> 00:44:07,895 even be thinking about environmental protection; 682 00:44:07,895 --> 00:44:09,895 let's gut the EPA. 683 00:44:11,961 --> 00:44:13,731 Health care, which is in the news right now -- there's a 684 00:44:13,728 --> 00:44:18,598 reason why there's a little bit of confusion in the Republican 685 00:44:18,594 --> 00:44:23,094 primary about health care and the individual mandate since it 686 00:44:23,094 --> 00:44:29,994 originated as a conservative idea to preserve the private 687 00:44:29,994 --> 00:44:33,794 marketplace in health care while still assuring that everybody 688 00:44:33,795 --> 00:44:36,465 got covered, in contrast to a single-payer plan. 689 00:44:38,994 --> 00:44:42,694 Now, suddenly, this is some socialist overreach. 690 00:44:45,994 --> 00:44:49,064 So as all of you are doing your reporting, 691 00:44:51,661 --> 00:44:54,531 I think it's important to remember that the positions 692 00:44:54,528 --> 00:44:59,328 I'm taking now on the budget and a host of other issues, 693 00:44:59,328 --> 00:45:03,228 if we had been having this discussion 20 years ago, 694 00:45:05,828 --> 00:45:10,928 or even 15 years ago, would have been considered squarely 695 00:45:10,928 --> 00:45:12,928 centrist positions. 696 00:45:15,227 --> 00:45:19,157 What's changed is the center of the Republican Party. 697 00:45:22,728 --> 00:45:25,058 And that's certainly true with the budget. 698 00:45:28,194 --> 00:45:31,324 Mr. Singleton: Mr. President, the managing director of the IMF did speak 699 00:45:31,328 --> 00:45:32,798 with us earlier today. 700 00:45:32,795 --> 00:45:37,095 She made an impassionedly -- for continuation of United 701 00:45:37,094 --> 00:45:40,994 States leadership in global economic issues, 702 00:45:40,994 --> 00:45:46,924 and underscored the need for a lower deficit and lower debt. 703 00:45:46,928 --> 00:45:48,458 How can we respond to that plee? 704 00:45:49,161 --> 00:45:57,231 The President: Well, look, she's absolutely right. 705 00:45:57,227 --> 00:46:01,257 It's interesting, when I travel around the world at these 706 00:46:01,261 --> 00:46:07,131 international fora -- and I've said this before -- the degree 707 00:46:07,127 --> 00:46:12,057 to which America is still the one indispensable nation, 708 00:46:14,061 --> 00:46:18,131 the degree to which, even as other countries are rising and 709 00:46:18,127 --> 00:46:24,397 their economies are expanding, we are still looked to for 710 00:46:24,394 --> 00:46:29,224 leadership, for agenda setting -- not just because of our size, 711 00:46:29,227 --> 00:46:30,997 not just because of our military power, 712 00:46:30,994 --> 00:46:35,394 but because there is a sense that unlike most superpowers in 713 00:46:35,394 --> 00:46:40,594 the past, we try to set out a set of universal rules, 714 00:46:40,594 --> 00:46:45,024 a set of principles by which everybody can benefit. 715 00:46:47,861 --> 00:46:49,631 And that's true on the economic front as well. 716 00:46:49,628 --> 00:46:55,098 We continue to be the world's largest market, 717 00:46:55,094 --> 00:46:58,894 an important engine for economic growth. 718 00:46:58,895 --> 00:47:03,365 We can't return to a time when by simply borrowing and 719 00:47:03,361 --> 00:47:07,061 consuming, we end up driving global economic growth. 720 00:47:07,061 --> 00:47:10,191 I said this a few months after I was elected at the 721 00:47:10,194 --> 00:47:11,964 first G20 summit. 722 00:47:11,961 --> 00:47:15,461 I said the days when Americans using their credit cards and 723 00:47:15,461 --> 00:47:19,661 home equity loans finance the rest of the world's growth by 724 00:47:19,661 --> 00:47:23,061 taking in imports from every place else -- those 725 00:47:23,061 --> 00:47:24,291 days are over. 726 00:47:24,294 --> 00:47:29,164 On the other hand, we continue to be a extraordinarily 727 00:47:29,161 --> 00:47:34,631 important market and foundation for global economic growth. 728 00:47:34,628 --> 00:47:40,798 We do have to take care of our deficits. 729 00:47:40,795 --> 00:47:43,595 I think Christine has spoken before, 730 00:47:43,594 --> 00:47:47,394 and I think most economists would argue as well, 731 00:47:47,394 --> 00:47:50,924 that the challenge when it comes to our deficits is not 732 00:47:50,928 --> 00:47:55,058 short-term discretionary spending, which is manageable. 733 00:47:55,061 --> 00:47:57,931 As I said before and I want to repeat, 734 00:47:57,928 --> 00:48:02,428 as a percentage of our GDP, our discretionary spending -- all 735 00:48:02,428 --> 00:48:04,928 the things that the Republicans are proposing cutting -- is 736 00:48:04,928 --> 00:48:10,328 actually lower than it's been since Dwight Eisenhower. 737 00:48:10,328 --> 00:48:15,928 There has not been some massive expansion of social programs, 738 00:48:15,928 --> 00:48:19,958 programs that help the poor, environmental programs, 739 00:48:19,961 --> 00:48:21,191 education programs. 740 00:48:21,194 --> 00:48:25,464 That's not our problem. 741 00:48:25,461 --> 00:48:30,061 Our problem is that our revenue has dropped down to between 15 742 00:48:30,061 --> 00:48:33,931 and 16 percent -- far lower than it has been historically, 743 00:48:33,928 --> 00:48:37,498 certainly far lower than it was under Ronald Reagan -- at the 744 00:48:37,494 --> 00:48:40,694 same time as our health care costs have surged, 745 00:48:40,695 --> 00:48:44,625 and our demographics mean that there is more and more pressure 746 00:48:44,628 --> 00:48:49,128 being placed on financing our Medicare, 747 00:48:49,127 --> 00:48:51,127 Medicaid and Social Security programs. 748 00:48:52,828 --> 00:48:58,898 So at a time when the recovery is still gaining steam, 749 00:48:58,895 --> 00:49:02,265 and unemployment is still very high, 750 00:49:02,261 --> 00:49:05,891 the solution should be pretty apparent. 751 00:49:07,994 --> 00:49:13,794 And that is even as we continue to make investments in growth 752 00:49:13,795 --> 00:49:17,365 today -- for example, putting some of our construction workers 753 00:49:17,361 --> 00:49:20,531 back to work rebuilding schools and roads and bridges, 754 00:49:20,528 --> 00:49:24,558 or helping states to rehire teachers at a time when schools 755 00:49:24,561 --> 00:49:32,731 are having a huge difficulty retaining quality teachers in 756 00:49:32,728 --> 00:49:37,628 the classroom -- all of which would benefit our economy, 757 00:49:37,628 --> 00:49:43,528 we focus on a long-term plan to stabilize our revenues at a 758 00:49:43,528 --> 00:49:50,798 responsible level and to deal with our health care programs in 759 00:49:50,795 --> 00:49:53,525 a responsible way. 760 00:49:53,528 --> 00:49:55,298 And that's exactly what I'm proposing. 761 00:49:57,561 --> 00:50:00,931 And what we've proposed is let's go back, 762 00:50:00,928 --> 00:50:04,358 for folks who are making more than $250,000 a year, 763 00:50:04,361 --> 00:50:09,061 to levels that were in place during the Clinton era, 764 00:50:09,061 --> 00:50:12,191 when wealthy people were doing just fine, 765 00:50:12,194 --> 00:50:16,224 and the economy was growing a lot stronger than it did after 766 00:50:16,227 --> 00:50:18,027 they were cut. 767 00:50:18,027 --> 00:50:24,057 And let's take on Medicare and Medicaid in a serious way -- 768 00:50:24,061 --> 00:50:27,461 which is not just a matter of taking those costs off the 769 00:50:27,461 --> 00:50:32,531 books, off the federal books, and pushing them onto individual 770 00:50:32,528 --> 00:50:36,198 seniors, but let's actually reduce health care costs. 771 00:50:36,194 --> 00:50:40,524 Because we spend more on health care with not as good outcomes 772 00:50:40,528 --> 00:50:47,798 as any other advanced, developed nation on Earth. 773 00:50:47,795 --> 00:50:54,625 And that would seem to be a sensible proposal. 774 00:50:54,628 --> 00:51:00,328 The problem right now is not the technical means to solve it. 775 00:51:00,328 --> 00:51:03,628 The problem is our politics. 776 00:51:03,628 --> 00:51:08,358 And that's part of what this election and what this debate 777 00:51:08,361 --> 00:51:13,231 will need to be about, is, are we, as a country, 778 00:51:13,227 --> 00:51:17,557 willing to get back to common-sense, balanced, 779 00:51:17,561 --> 00:51:22,991 fair solutions that encourage our long-term economic growth 780 00:51:22,994 --> 00:51:25,764 and stabilize our budget. 781 00:51:25,761 --> 00:51:27,861 And it can be done. 782 00:51:27,861 --> 00:51:31,691 One last point I want to make, Dean, that I think is important, 783 00:51:31,695 --> 00:51:34,395 because it goes to the growth issue. 784 00:51:34,394 --> 00:51:40,364 If state and local government hiring were basically on par to 785 00:51:40,361 --> 00:51:45,231 what our current recovery -- on par to past recoveries, 786 00:51:45,227 --> 00:51:48,327 the unemployment rate would probably be about a point lower 787 00:51:48,328 --> 00:51:50,798 than it is right now. 788 00:51:50,795 --> 00:51:56,695 If the construction industry were going through what we 789 00:51:56,695 --> 00:52:00,825 normally go through, that would be another point lower. 790 00:52:00,828 --> 00:52:03,458 The challenge we have right now -- part of the challenge we have 791 00:52:03,461 --> 00:52:06,461 in terms of growth has to do with the very specific issues 792 00:52:06,461 --> 00:52:10,691 of huge cuts in state and local government, 793 00:52:10,695 --> 00:52:14,165 and the housing market still recovering from 794 00:52:14,161 --> 00:52:16,931 this massive bubble. 795 00:52:16,928 --> 00:52:20,098 And that -- those two things are huge headwinds 796 00:52:20,094 --> 00:52:21,564 in terms of growth. 797 00:52:21,561 --> 00:52:24,861 I say this because if we, for example, 798 00:52:24,861 --> 00:52:27,861 put some of those construction workers back to work, 799 00:52:27,861 --> 00:52:32,161 or we put some of those teachers back in the classroom, 800 00:52:32,161 --> 00:52:38,291 that could actually help create the kind of virtuous cycle that 801 00:52:38,294 --> 00:52:42,094 would bring in more revenues just because of economic growth, 802 00:52:42,094 --> 00:52:46,294 would benefit the private sector in significant ways. 803 00:52:46,294 --> 00:52:50,564 And that could help contribute to deficit reduction in the 804 00:52:50,561 --> 00:52:54,631 short term, even as we still have to do these important 805 00:52:54,628 --> 00:52:57,758 changes to our health care programs over the long term. 806 00:52:57,761 --> 00:52:59,991 Mr. Singleton: Mr. President, you said yesterday that it would 807 00:52:59,994 --> 00:53:04,894 be unprecedented for a Supreme Court to overturn laws passed 808 00:53:04,895 --> 00:53:06,795 by an elected Congress. 809 00:53:06,795 --> 00:53:09,195 But that is exactly what the Court has done during 810 00:53:09,194 --> 00:53:10,924 its entire existence. 811 00:53:10,928 --> 00:53:14,528 If the Court were to overturn individual mandate, 812 00:53:14,528 --> 00:53:17,628 what would you do, or propose to do, 813 00:53:17,628 --> 00:53:20,928 for the 30 million people who wouldn't have health care after 814 00:53:20,928 --> 00:53:22,198 that ruling? 815 00:53:22,194 --> 00:53:28,924 The President: Well, first of all, let me be very specific. 816 00:53:28,928 --> 00:53:41,258 We have not seen a Court overturn a law that was passed 817 00:53:41,261 --> 00:53:50,961 by Congress on a economic issue, like health care, 818 00:53:50,961 --> 00:53:55,691 that I think most people would clearly consider commerce -- a 819 00:53:55,695 --> 00:53:59,665 law like that has not been overturned 820 00:53:59,661 --> 00:54:01,291 at least since Lochner. 821 00:54:01,294 --> 00:54:03,724 Right? So we're going back to the '30s, pre New Deal. 822 00:54:08,795 --> 00:54:19,865 And the point I was making is that the Supreme Court is the 823 00:54:19,861 --> 00:54:23,561 final say on our Constitution and our laws, 824 00:54:23,561 --> 00:54:24,691 and all of us have to respect it, 825 00:54:26,728 --> 00:54:31,158 but it's precisely because of that extraordinary power that 826 00:54:31,161 --> 00:54:37,261 the Court has traditionally exercised significant restraint 827 00:54:37,261 --> 00:54:41,661 and deference to our duly elected legislature, 828 00:54:41,661 --> 00:54:42,361 our Congress. 829 00:54:44,528 --> 00:54:50,258 And so the burden is on those who would overturn 830 00:54:50,261 --> 00:54:50,991 a law like this. 831 00:54:53,661 --> 00:55:05,661 Now, as I said, I expect the Supreme Court actually to 832 00:55:05,661 --> 00:55:09,961 recognize that and to abide by well-established 833 00:55:09,961 --> 00:55:12,961 precedence out there. 834 00:55:12,961 --> 00:55:16,861 I have enormous confidence that in looking at this law, 835 00:55:16,861 --> 00:55:24,591 not only is it constitutional, but that the Court is going to 836 00:55:24,594 --> 00:55:30,524 exercise its jurisprudence carefully because of the 837 00:55:30,528 --> 00:55:34,328 profound power that our Supreme Court has. 838 00:55:34,328 --> 00:55:37,128 As a consequence, we're not spending a whole bunch of time 839 00:55:37,127 --> 00:55:40,157 planning for contingencies. 840 00:55:40,161 --> 00:55:44,031 What I did emphasize yesterday is there is a human element to 841 00:55:44,027 --> 00:55:46,827 this that everybody has to remember. 842 00:55:46,828 --> 00:55:51,958 This is not an abstract exercise. 843 00:55:51,961 --> 00:55:59,591 I get letters every day from people who are affected by the 844 00:55:59,594 --> 00:56:01,564 health care law right now, even though it's 845 00:56:01,561 --> 00:56:03,631 not fully implemented. 846 00:56:05,294 --> 00:56:07,724 Young people who are 24, 25, who say, you know what, 847 00:56:07,728 --> 00:56:12,558 I just got diagnosed with a tumor. 848 00:56:12,561 --> 00:56:14,661 First of all, I would not have gone to get a check-up if I 849 00:56:14,661 --> 00:56:16,891 hadn't had health insurance. 850 00:56:16,895 --> 00:56:18,925 Second of all, I wouldn't have been able to afford to get it 851 00:56:18,928 --> 00:56:21,898 treated had I not been on my parent's plan. 852 00:56:21,895 --> 00:56:25,465 Thank you and thank Congress for getting this done. 853 00:56:28,761 --> 00:56:31,731 I get letters from folks who have just lost their job, 854 00:56:31,728 --> 00:56:33,058 their COBRA is running out. 855 00:56:33,061 --> 00:56:39,461 They're in the middle of treatment for colon cancer 856 00:56:39,461 --> 00:56:43,561 or breast cancer, and they're worried when their COBRA runs 857 00:56:43,561 --> 00:56:48,531 out, if they're still sick, what are they going to be able to do 858 00:56:48,528 --> 00:56:53,398 because they're not going to be able to get health insurance. 859 00:56:53,394 --> 00:56:58,324 And the point I think that was made very ably before the 860 00:56:58,328 --> 00:57:03,158 Supreme Court, but I think most health care economists who have 861 00:57:03,161 --> 00:57:05,731 looked at this have acknowledged, 862 00:57:05,728 --> 00:57:09,228 is there are basically two ways to cover people with preexisting 863 00:57:09,227 --> 00:57:12,657 conditions or assure that people can always get coverage even 864 00:57:12,661 --> 00:57:15,661 when they had bad illnesses. 865 00:57:15,661 --> 00:57:20,191 One way is the single-payer plan -- everybody is under a single 866 00:57:20,194 --> 00:57:21,524 system, like Medicare. 867 00:57:21,528 --> 00:57:27,528 The other way is to set up a system in which you don't have 868 00:57:30,761 --> 00:57:37,291 people who are healthy but don't bother to get health insurance, 869 00:57:37,294 --> 00:57:42,264 and then we all have to pay for them in the emergency room. 870 00:57:42,261 --> 00:57:44,391 That doesn't work, and so, as a consequence, 871 00:57:44,394 --> 00:57:47,924 we've got to make sure that those folks are taking their 872 00:57:47,928 --> 00:57:50,498 responsibility seriously, which is what the individual 873 00:57:50,494 --> 00:57:52,524 mandate does. 874 00:57:52,528 --> 00:57:58,558 So I don't anticipate the Court striking this down. 875 00:57:58,561 --> 00:58:02,391 I think they take their responsibilities very seriously. 876 00:58:02,394 --> 00:58:08,424 But I think what's more important is for all of us, 877 00:58:11,061 --> 00:58:16,291 Democrats and Republicans, to recognize that in a country like 878 00:58:16,294 --> 00:58:22,024 ours -- the wealthiest, most powerful country on Earth -- we 879 00:58:22,027 --> 00:58:27,357 shouldn't have a system in which millions of people are at risk 880 00:58:27,361 --> 00:58:29,361 of bankruptcy because they get sick, 881 00:58:31,127 --> 00:58:34,727 or end up waiting until they do get sick and then go to the 882 00:58:34,728 --> 00:58:40,898 emergency room, which involves all of us paying for it. 883 00:58:40,895 --> 00:58:43,425 Mr. Singleton: Mr. President, you've been very, very generous with your time, 884 00:58:43,428 --> 00:58:45,528 and we appreciate very much you being here. 885 00:58:45,528 --> 00:58:46,458 The President: Thank you so much, everybody. 886 00:58:46,461 --> 00:58:47,531 (applause) 887 00:58:47,528 --> 00:58:48,458 Thank you.