President Obama announced today that it’s time to get health care reform done. He didn’t mention reconciliation directly, but that’s what Obama wants.

Here’s the complete transcript and video of Obama’s speech today. The video and transcript were provided by the White House.

Remarks by the President on Health Care Reform
East Room

1:50 P.M. EST

THE PRESIDENT: Thank you so much, all of you, for joining us today. And I want to thank Julie, Barbara, Roland, Stephen, Renee, and Christopher, standing behind me — physicians, physicians assistants, and nurses who understand how important it is for us to make much needed changes in our health care system.

I want to thank all of you who are here today. I want to specially recognize two people who have been working tirelessly on that — on this effort, my Secretary of Health and Human Services, Kathleen Sebelius — (applause) — as well as our quarterback for health reform out of the White House, Nancy-Ann DeParle. (Applause.)

We began our push to reform health insurance last March, in this room, with doctors and nurses who know the system best. And so it’s fitting to be joined by all of you as we bring this journey to a close.

Last Thursday, I spent seven hours at a summit where Democrats and Republicans engaged in a public and very substantive discussion about health care. This meeting capped off a debate that began with a similar summit nearly one year ago. And since then, every idea has been put on the table. Every argument has been made. Everything there is to say about health care has been said — (laughter) — and just about everybody has said it. (Laughter.) So now is the time to make a decision about how to finally reform health care so that it works, not just for the insurance companies, but for America’s families and America’s businesses.

Now, where both sides say they agree is that the status quo is not working for the American people. Health insurance is becoming more expensive by the day. Families can’t afford it. Businesses can’t afford it. The federal government can’t afford it. Smaller businesses and individuals who don’t get coverage at work are squeezed especially hard. And insurance companies freely ration health care based on who’s sick and who’s healthy; who can pay and who can’t. That’s the status quo. That’s the system we have right now.

Democrats and Republicans agree that this is a serious problem for America. And we agree that if we do nothing -– if we throw up our hands and walk away -– it’s a problem that will only grow worse. Nobody disputes that. More Americans will lose their family’s health insurance if they switch jobs or lose their job. More small businesses will be forced to choose between health care and hiring. More insurance companies will deny people coverage who have preexisting conditions, or they’ll drop people’s coverage when they get sick and need it most. And the rising cost of Medicare and Medicaid will sink our government deeper and deeper and deeper into debt. On all of this we agree.
So the question is, what do we do about it?

On one end of the spectrum, there are some who’ve suggested scrapping our system of private insurance and replacing it with a government-run health care system. And though many other countries have such a system, in America it would be neither practical nor realistic.

On the other end of the spectrum, there are those, and this includes most Republicans in Congress, who believe the answer is to loosen regulations on the insurance industry — whether it’s state consumer protections or minimum standards for the kind of insurance they can sell. The argument is, is that that will somehow lower costs. I disagree with that approach. I’m concerned that this would only give the insurance industry even freer rein to raise premiums and deny care.

So I don’t believe we should give government bureaucrats or insurance company bureaucrats more control over health care in America. I believe it’s time to give the American people more control over their health care and their health insurance. I don’t believe we can afford to leave life-and-death decisions about health care to the discretion of insurance company executives alone. I believe that doctors and nurses and physician assistants like the ones in this room should be free to decide what’s best for their patients. (Applause.)

Now, the proposal I put forward gives Americans more control over their health insurance and their health care by holding insurance companies more accountable. It builds on the current system where most Americans get their health insurance from their employer. If you like your plan, you can keep your plan. If you like your doctor, you can keep your doctor. I can tell you as the father of two young girls, I would not want any plan that interferes with the relationship between a family and their doctor.

Essentially, my proposal would change three things about the current health care system. First, it would end the worst practices of insurance companies. No longer would they be able to deny your coverage because of a preexisting condition. No longer would they be able to drop your coverage because you got sick. No longer would they be able to force you to pay unlimited amounts of money out of your own pocket. No longer would they be able to arbitrarily and massively raise premiums like Anthem Blue Cross recently tried to do in California — up to 39 percent increases in one year in the individual market. Those practices would end.

Second, my proposal would give uninsured individuals and small business owners the same kind of choice of private health insurance that members of Congress get for themselves — because if it’s good enough for members of Congress, it’s good enough for the people who pay their salaries. (Applause.)

The reason federal employees get a good deal on health insurance is that we all participate in an insurance market where insurance companies give better coverage and better rates, because they get more customers. It’s an idea that many Republicans have embraced in the past, before politics intruded.
And my proposal says that if you still can’t afford the insurance in this new marketplace, even though it’s going to provide better deals for people than they can get right now in the individual marketplace, then we’ll offer you tax credits to do so — tax credits that add up to the largest middle-class tax cut for health care in history. After all, the wealthiest among us can already buy the best insurance there is, and the least well off are able to get coverage through Medicaid. So it’s the middle class that gets squeezed, and that’s who we have to help.
Now, it is absolutely true that all of this will cost some money — about $100 billion per year. But most of this comes from the nearly $2 trillion a year that America already spends on health care — but a lot of it is not spent wisely. A lot of that money is being wasted or spent badly. So within this plan, we’re going to make sure the dollars we spend go towards making insurance more affordable and more secure. We’re going to eliminate wasteful taxpayer subsidies that currently go to insurance and pharmaceutical companies; set a new fee on insurance companies that stand to gain a lot of money and a lot of profits as millions of Americans are able to buy insurance; and we’re going to make sure that the wealthiest Americans pay their fair share on Medicare.

The bottom line is our proposal is paid for. And all the new money generated in this plan goes back to small businesses and middle-class families who can’t afford health insurance. It would also lower prescription drug prices for seniors. And it would help train new doctors and nurses and physician assistants to provide care for American families.

Finally, my proposal would bring down the cost of health care for millions — families, businesses, and the federal government. We have now incorporated most of the serious ideas from across the political spectrum about how to contain the rising cost of health care — ideas that go after the waste and abuse in our system, especially in programs like Medicare. But we do this while protecting Medicare benefits, and extending the financial stability of the program by nearly a decade.

Our cost-cutting measures mirror most of the proposals in the current Senate bill, which reduces most people’s premiums and brings down our deficit by up to a trillion dollars over the next two decades — brings down our deficit. Those aren’t my numbers; those are the savings determined by the Congressional Budget Office, which is the Washington acronym for the nonpartisan, independent referee of Congress in terms of how much stuff costs. (Laughter.)

So that’s our proposal. This is where we’ve ended up. It’s an approach that has been debated and changed and I believe improved over the last year. It incorporates the best ideas from Democrats and Republicans — including some of the ideas that Republicans offered during the health care summit, like funding state grants on medical malpractice reform, and curbing waste and fraud and abuse in the health care system. My proposal also gets rid of many of the provisions that had no place in health care reform — provisions that were more about winning individual votes in Congress than improving health care for all Americans.

Now, despite all that we agree on and all the Republican ideas we’ve incorporated, many — probably most — Republicans in Congress just have a fundamental disagreement over whether we should have more or less oversight of insurance companies. And if they truly believe that less regulation would lead to higher quality, more affordable health insurance, then they should vote against the proposal I’ve put forward.

Now, some also believe that we should, instead of doing what I’m proposing, pursue a piecemeal approach to health insurance reform, where we tinker around the edges of this challenge for the next few years. Even those who acknowledge the problem of the uninsured say we just can’t afford to help them right now — which is why the Republican proposal only covers 3 million uninsured Americans while we cover over 31 million.

The problem with that approach is that unless everyone has access to affordable coverage, you can’t prevent insurance companies from denying coverage based on preexisting conditions; you can’t limit the amount families are forced to pay out of their own pockets. The insurance reforms rest on everybody having access to coverage. And you also don’t do anything about the fact that taxpayers currently end up subsidizing the uninsured when they’re forced to go to the emergency room for care, to the tune of about a thousand bucks per family. You can’t get those savings if those people are still going to the emergency room. So the fact is, health reform only works if you take care of all of these problems at once.

Now, both during and after last week’s summit, Republicans in Congress insisted that the only acceptable course on health care reform is to start over. But given these honest and substantial differences between the parties about the need to regulate the insurance industry and the need to help millions of middle-class families get insurance, I don’t see how another year of negotiations would help.

Moreover, the insurance companies aren’t starting over. They’re continuing to raise premiums and deny coverage as we speak. For us to start over now could simply lead to delay that could last for another decade, or even more. The American people, and the U.S. economy, just can’t wait that long. So, no matter which approach you favor, I believe the United States Congress owes the American people a final vote on health care reform. (Applause.)

We have debated this issue thoroughly, not just for the past year but for decades. Reform has already passed the House with a majority. It has already passed the Senate with a supermajority of 60 votes. And now it deserves the same kind of up or down vote that was cast on welfare reform, that was cast on the Children’s Health Insurance Program, that was used for COBRA health coverage for the unemployed, and, by the way, for both Bush tax cuts — all of which had to pass Congress with nothing more than a simple majority.

I, therefore, ask leaders in both houses of Congress to finish their work and schedule a vote in the next few weeks. From now until then, I will do everything in my power to make the case for reform. (Applause.) And I urge every American who wants this reform to make their voice heard as well — every family, every business, every patient, every doctor, every nurse, every physician’s assistant. Make your voice heard.

This has been a long and wrenching debate. It has stoked great passions among the American people and their representatives. And that’s because health care is a difficult issue. It is a complicated issue. If it was easy, it would have been solved long ago. As all of you know from experience, health care can literally be an issue of life or death. And as a result, it easily lends itself to demagoguery and political gamesmanship, and misrepresentation and misunderstanding.

But that’s not an excuse for those of us who were sent here to lead. That’s not an excuse for us to walk away. We can’t just give up because the politics are hard. I know there’s been a fascination, bordering on obsession, in this media town about what passing health insurance reform would mean for the next election and the one after that. How will this play? What will happen with the polls? I will leave it to others to sift through the politics, because that’s not what this is about. That’s not why we’re here.

This is about what reform would mean for the mother with breast cancer whose insurance company will finally have to pay for her chemotherapy. This is about what reform would mean for the small business owner who will no longer have to choose between hiring more workers or offering coverage to the employees she has. This is about what reform would mean for middle-class families who will be able to afford health insurance for the very first time in their lives and get a regular checkup once in a while, and have some security about their children if they get sick.

This is about what reform would mean for all those men and women I’ve met over the last few years who’ve been brave enough to share their stories. When we started our push for reform last year, I talked to a young mother in Wisconsin named Laura Klitzka. She has two young children. She thought she had beaten her breast cancer but then later discovered it had spread to her bones. She and her husband were working and had insurance, but their medical bills still landed them in debt. And now she spends time worrying about that debt when all she wants to do is spend time with her children and focus on getting well.

This should not happen in the United States of America. And it doesn’t have to. (Applause.)

In the end, that’s what this debate is about. It’s about what kind of country we want to be. It’s about the millions of lives that would be touched and, in some cases, saved by making private health insurance more secure and more affordable.

So at stake right now is not just our ability to solve this problem, but our ability to solve any problem. The American people want to know if it’s still possible for Washington to look out for their interests and their future. They are waiting for us to act. They are waiting for us to lead. And as long as I hold this office, I intend to provide that leadership. I do not know how this plays politically, but I know it’s right. (Applause.) And so I ask Congress to finish its work, and I look forward to signing this reform into law.

Thank you very much, everybody. Let’s get it done. (Applause.)

END
2:09 P.M. EST

Congressman Paul Ryan (R-WI) said at Thursday’s Blair House Health Care Summit that health care reform is budget reform. Therefore, he essentially made the case that Democrats can use budget reconciliation to pass health care reform. Both the House and the Senate have a reconciliation rule.

Sen. Harry Reid (D-NV) addressed reconciliation on Tuesday and told Republicans to stop crying.

Today, Rachel Maddow called out Republicans for their lies about reconciliation.

Republican senators are calling reconciliation the “nuclear option.” That’s not at all true. The nuclear option was a threat by Republicans to ban filibusters over judicial nominations in 2005.

The fact is that Republicans have used reconciliation 16 times out of the 22 times it’s been used. They’re on the record supporting the use of reconciliation.

And according to Maddow, NPR reported that the number of health care bills passed without the use of reconciliation can be counted on one hand.

Reconciliation is how we do health care reform – love it or leave it.

It lasted more than seven hours. It was often unbelievably boring. A bunch of mostly old white guys sitting around a table bickering at one another. That was today’s health care summit and nothing of substance will come of it.

The bottom line for Republicans is that they want to kill health care reform no matter what. And the bottom line for Democrats is that have to get health care reform through congress one way or another.

So one side is unequivocally opposed and the other a staunch proponent of health care reform.

There was an exchange between President Obama and Iowa Senator Chuck Grassley that highlights this deadlock.

“First of all,” Grassley said, “if anybody says that Medicare Advantage is a subsidy going to insurance companies, let me say what the statute says. The statute says that … 75 percent goes to beneficiaries and benefits, and 25 percent to the federal government.”

“I’m sorry Chuck, I just want to make sure about that,” Obama said, “that doesn’t sound right to me because that would mean 100 percent of it is going either to the benefits or the federal government, which means that the insurance companies aren’t making any money of it.”

“Seventy-five percent to beneficiaries and benefits,” Grassley snapped, “and 25 percent to the federal government.”

At which point Obama turned to Vice President Biden and presumably said something along the lines of, “What the hell is talking? That’s 100 percent. The insurance companies don’t get any money for selling prescription drugs to seniors. Is he drunk?”

“Probably Mr. President,” Biden threw his hand up in disgust.

“It takes 60 votes in the Senate to overrule them, so I’m not questioning the CBO,” Grassley said fidgeting in his chair.

Actually, the Congressional Budget Office does not create law and does not rule over the Senate in any way, shape or form. Grassley is making up Senate rules out of whole cloth.

“For the first time in the 225 year history of the country,” Grassley said, “the federal government’s telling you you’ve got to buy something.”

The Iowa Senator said he knows his constituents and “that just doesn’t make a lot sense to people in the grassroots of the Midwest.”

Actually the United States has been around for 233 years and citizens are forced to pay federal income taxes, Medicare and Social Security.

“Do you think we’re going to sit around in rural American, or even urban, downtown urban America, in the poverty parts of the city,” Grassley said, “that we’re going to let hospitals close down?”

Who’s closing hospitals?

At the end of his speech Grassley said, “You’ve got to take into consideration the consequences of the actions, or the unproven promises of cuts that aren’t going to materialize.”

His argument was that the Democrats bill relies on future congresses to make cuts and Grassley said that they aren’t going to have any more guts than we do, and this Congress doesn’t even have the stomach to mess with Medicare.

Obama seemed a bit shocked by Grassley’s remarks and tone, and had this to say.

“If the notion is that we can’t make some hard decisions about how entitlements work, because it’s just not realistic. Nobody’s going to have the guts to do it. Then we’re in big trouble.

Because that means that federal and state budgets, and then business budgets and family budgets, they’re all going to be gobbled up by this thing.

So I hope that we’ve got the courage to make some of these changes.”

Newsweek just published a poll showing that nearly half of all Americans think Obama’s health care reform sucks. When respondents learn more about it, they think it’s actually pretty cool.

“When asked about Obama’s plan (without being given any details about what the legislation includes), 49 percent opposed it and 40 percent were in favor,” reported Newsweek’s Sarah Kliff. “But after hearing key features of the legislation described, 48 percent supported the plan and 43 percent remained opposed.”

So this either means Americans are stupid, Republicans are amazing spinmeisters or Democrats are incompetent. More likely it means that Americans are pretty dumb, Republicans are compulsive liars and Democrats are a gaggle of bumbling fools.

Health care reform is arguably the biggest legislation to wind its way through our dysfunctional excuse of a democratic process in decades. But that doesn’t stop Americans from not giving a shit. Too many happily lap up the bullshit Fox News and the GOP throw in their bowl. Dumb.

Democrats are compulsively incompetent tools. They bicker with each other, each hoping they can be the one on TV tonight. Joe Lieberman was the vice president candidate in 2000. Now he takes any chance he can get to portray himself the biggest egomaniac in the party – the American people and his party be damned.

Republicans, knowing just how disengaged the American public is from politics, glibly spread lies and misinformation that Americans gobble up without nary a question raised. Mmm that’s good chum.

What poll after poll proves is Americans are woefully ignorant of the legislative process, Congress, public policy and they frankly have no idea what the hell is wrong with the country.

What we need to do as members of the media is a better job. What Americans need to do is read. What politicians need to do is go home. Publicly funded campaigns would be a great way to throw the bums out.

Please take my Blog Reader Project survey.

New York Times columnist Frank Rich wrote that Sarah Palin may just be the smartest politician in America today.

Well, he didn’t say that exactly. What he did say was that while liberals, including White House Press Secretary Robert Gibbs, were yucking it up over Palin’s hand-scrawled Tea Party cheat sheet, she was building her base.

“You had to wonder if Palin, who is nothing if not cunning, had sprung a trap,” Rich wrote. “She knows all too well that the more the so-called elites lampoon her, the more she cements her cred with the third of the country that is her base. Her hand hieroglyphics may not have been speaking aids but bait.”

Maybe Rich is right, perhaps Palin is just playing the fool to pander to American goobers who relate to her while baiting the liberals into acting like elite assholes. If so, she’s one hell of an actress.

I think Palin is the real deal. I think she’s as ignorant on the issues as she appears to be because she knows that her base doesn’t care. Palin followers don’t care that she campaigned as governor of Alaska on the so-called “bridge to no one” and then claimed to say “no thanks” when running for vice president.

Palanistas really believe that being the mayor of Wasilla, Alaska (population 6,700) and the governor of Alaska for a few months gives her international bona fides, because you know, Russia is right there.

They just don’t care.

These are the same people that voted for George W. Bush because he seemed like someone they’d like to have a beer with at a backyard BBQ.

And this is what has liberals so riled up.

For the left, it’s inconceivable that anyone could look at Palin and see the next president, but her base certainly does.

While Rich is right, the Obama administration should spend less time poking fun of Palin and more time ripping into Wall Street fatcats, Palin’s success is not their fault.

Palin’s a rising star in politics for the same reason Glenn Beck has millions of viewers in a pretty crappy time slot – millions of Americans just don’t care about politics. And because they don’t care, they don’t take the time to understand really complex problems, and so they gravitate towards people who appear to offer “common sense solutions.”

Palin says those words over and over again – “common sense solutions.”

Beck mocks liberals and other intellectuals for claiming he’s stupid, or you’re stupid, because you just don’t understand. Beck then proceeds to break it down for his viewers. Sadly, his viewers really don’t understand the issue, and therefore think Beck makes perfect sense – intellectual heads explode.

Palin panders to that huge swath of America that thinks politics is stupid, politicians are crooks and all that’s needed are some simple “common sense solutions” to fix the whole kit and kaboodle.

The problem is that many of the problems this nation faces are not simple. Health care, two wars, energy policy, the economy, terrorism, and the list goes on are not going to be solved with simple sound-bite solutions, and as far as common sense goes, that’s subjective.

Democrats need to stand for something and stop wavering. They need to come out strong against greed and corruption. They need to stand by the average American and say we’re here to help you and not them. For some reason Democrats don’t do that. They’d rather position themselves with the Wall Street executives and corporate fatcats while the Palinistas and Beckheads write them off as elite assholes.

But Democrats just aren’t going to win over Palin supporters – it’s impossible. What they need to do is focus on the huge majority of Americans who really do get it. It worked in 2006 and it worked in 2008, but making Palin jokes, that’s not going to cut it.

–

Read Rich’s column “Palin’s Cunning Sleight of Hand.”

President Obama held a news conference following a bipartisan meeting with House and Senate Republicans and Democrats. Here is the full transcript of the president’s remarks and complete video of the news conference. Press Secretary Robert Gibbs spoke for about 30 minutes but that is not part of the transcript. The transcript was provided by the White House and downloaded from WhiteHouse.gov on Feb. 10, 2010 at approximately 10:00 a.m. Eastern.

1:38 P.M. EST

THE PRESIDENT: Hello, everybody. I am glad to see that all of you braved the weather to be here. A little while ago I had a meeting with the Democratic and Republican congressional leaders, and it went very well. In fact, I understand that McConnell and Reid are out doing snow angels on the South Lawn together. (Laughter.) Can you picture that, Chuck? Not really?

The meeting did go well, and I appreciate them making the trek. We had a good and frank conversation and it’s one that I hope we can continue on a more regular basis.

We all understand that there are legitimate and genuine differences between the parties, but despite the political posturing that often paralyzes this town, there are many issues upon which we can and should agree. That’s what the American people are demanding of us. I think they’re tired of every day being Election Day in Washington. And at this critical time in our country, the people sent us here expect a seriousness of purpose that transcends petty politics.

That’s why I’m going to continue to seek the best ideas from either party as we work to tackle the pressing challenges ahead. I am confident, for example, that when one in 10 of our fellow citizens can’t work, we should be able to come together and help business create more jobs. We ought to be able to agree on providing small businesses with additional tax credits and much needed lines of credit. We ought to agree on investments in crumbling roads and bridges, and we should agree on tax breaks for making homes more energy-efficient — all of which will put more Americans to work. Many of the job proposals that I’ve laid out have passed the House and are soon going to be debated in the Senate. We spent a lot of time in this meeting discussing a jobs package and how we could move forward on that. And if there are additional ideas, I will consider them as well. What I won’t consider is doing nothing in the face of a lot of hardship across the country.

We also talked about restoring fiscal responsibility. There are few matters on which there is as much vigorous bipartisan agreement, at least in public, but unfortunately there’s also a lot of partisan wrangling behind closed doors. This is what we know for sure: For us to solve this extraordinary problem that is so many years in the making, it’s going to take the cooperation of both parties. It’s not going to happen in any other way.

I’m pleased that Congress supported my request to restore the pay-as-you-go rule, which was instrumental in turning deficits into surpluses during the 1990s. I’ve also called for a bipartisan fiscal commission. Unfortunately this measure, which originally had received the support of a bipartisan majority of the Senate and was cosponsored by Senators Conrad and Gregg, Democrats and Republicans, was blocked there. So I’m going to be creating this commission by executive order. And during our meeting I asked the leadership of both parties to join in this serious effort to address our long-term deficits, because when the politics is put aside, the reality of our fiscal challenge is not subject to interpretation. Math is not partisan. There ought to be a debate about how to close our deficits. What we can’t accept is business as usual, and we can’t afford grandstanding at the expense of actually getting something done.

During our meeting we also touched briefly on how we can move forward on health reform. I’ve already announced that in two weeks I’ll be holding a meeting with people from both parties, and as I told the congressional leadership, I’m looking forward to a constructive debate with plans that need to be measured against this test. Does it bring down costs for all Americans as well as for the federal government, which spends a huge amount on health care? Does it provide adequate protection against abuses by the insurance industry? Does it make coverage affordable and available to the tens of millions of working Americans who don’t have it right now? And does it help us get on a path of fiscal sustainability?

We also talked about why this is so urgent. Just this week, there was a report that Anthem Blue Cross, which is the largest insurer in the largest state, California, is planning on raising premiums for many individual policyholders by as much as 39 percent. If we don’t act, this is just a preview of coming attractions. Premiums will continue to rise for folks with insurance; millions more will lose their coverage altogether; our deficits will continue to grow larger. And we have an obligation — both parties — to tackle this issue in a serious way.

Now, bipartisanship depends on a willingness among both Democrats and Republicans to put aside matters of party for the good of the country. I won’t hesitate to embrace a good idea from my friends in the minority party, but I also won’t hesitate to condemn what I consider to be obstinacy that’s rooted not in substantive disagreements but in political expedience. We talked about this as well, particularly when it comes to the confirmation process. I respect the Senate’s role to advise and consent, but for months, qualified, non- controversial nominees for critical positions in government, often positions related to our national security, have been held up despite having overwhelming support. My nominee for one important job, the head of General Services Administration, which helps run the government, was denied a vote for nine months. When she finally got a vote on her nomination, she was confirmed 96 to nothing. That’s not advise and consent; that’s delay and obstruct.

One senator, as you all are aware, had put a hold on every single nominee that we had put forward due to a dispute over a couple of earmarks in his state. In our meeting, I asked the congressional leadership to put a stop to these holds in which nominees for critical jobs are denied a vote for months. Surely we can set aside partisanship and do what’s traditionally been done to confirm these nominations. If the Senate does not act — and I made this very clear — if the Senate does not act to confirm these nominees, I will consider making several recess appointments during the upcoming recess, because we can’t afford to allow politics to stand in the way of a well-functioning government.

My hope is that this will be the first of a series of meetings that I have with leadership of both parties in Congress. We’ve got to get past the tired debates that have plagued our politics and left behind nothing but soaring debt and mounting challenges, greater hardships among the American people, and extraordinary frustrations among the American people. Those frustrations are what led me to run for President, and as long as I’m here in Washington, I intend to try to make this government work on their behalf.

So, you know, I’m going to take a couple of questions, guys.

Major.

Q After meeting with you, John Boehner came out and told us, “The House can’t pass the health care bill it once passed; the Senate can’t pass the health care bill it once passed. Why would we have a conversation about legislation that can’t pass?” As a part of that, he said you and your White House and congressional Democrats should start over entirely from scratch on health care reform. How do you respond? Are you willing to do that?

THE PRESIDENT: Well, here’s how I responded to John in the meeting, and I’ve said this publicly before. There are some core goals that have to be met. We’ve got to control costs, both for families and businesses, but also for our government. Everybody out there who talks about deficits has to acknowledge that the single biggest driver of our deficits is health care spending. We cannot deal with our deficits and debt long term unless we get a handle on that. So that has to be part of a package.

Number two, we’ve got to deal with insurance abuses that affect millions of Americans who’ve got health insurance. And number three, we’ve got to make health insurance more available to folks in the individual market, as I just mentioned, in California, who are suddenly seeing their premiums go up 39 percent. That applies to the majority of small businesses, as well as sole proprietors. They are struggling.

So I’ve got these goals. Now, we have a package, as we work through the differences between the House and the Senate, and we’ll put it up on a Web site for all to see over a long period of time, that meets those criteria, meets those goals. But when I was in Baltimore talking to the House Republicans, they indicated, we can accomplish some of these goals at no cost. And I said, great, let me see it. And I have no interest in doing something that’s more expensive and harder to accomplish if somebody else has an easier way to do it.

So I’m going to be starting from scratch in the sense that I will be open to any ideas that help promote these goals. What I will not do, what I don’t think makes sense and I don’t think the American people want to see, would be another year of partisan wrangling around these issues; another six months or eight months or nine months worth of hearings in every single committee in the House and the Senate in which there’s a lot of posturing. Let’s get the relevant parties together; let’s put the best ideas on the table. My hope is that we can find enough overlap that we can say this is the right way to move forward, even if I don’t get every single thing that I want.

But here’s the point that I made to John Boehner and Mitch McConnell: Bipartisanship can’t be that I agree to all the things that they believe in or want, and they agree to none of the things I believe in and want, and that’s the price of bipartisanship, right? But that’s sometimes the way it gets presented. Mitch McConnell said something very nice in the meeting about how he supports our goals on nuclear energy and clean coal technology and more drilling to increase oil production. Well, of course he likes that; that’s part of the Republican agenda for energy, which I accept. And I’m willing to move off some of the preferences of my party in order to meet them halfway. But there’s got to be some give from their side as well. That’s true on health care; that’s true on energy; that’s true on financial reform. That’s what I’m hoping gets accomplished at the summit.

Q Do you agree the House and Senate bill can’t pass anymore?

THE PRESIDENT: What I agree with is that the public has soured on the process that they saw over the last year. I think that actually contaminates how they view the substance of the bills. I think it is important for all of these issues to be aired so that people have confidence if we’re moving forward on such a significant part of the economy as health care, that there is complete transparency and all of these issues have been adequately vetted and adequately debated.

And this gives an opportunity not just for Democrats to say here’s what we think we should do, but it also gives Republicans a showcase before the entire country to say here’s our plan; here’s why we think this will work. And one of the things that John Boehner and Mitch McConnell both said is they didn’t think that the status quo was acceptable, and that’s, right there, promising. That indicates that if all sides agree that we can’t just continue with business as usual then maybe we can actually get something done.

Q Mr. President, one of the reasons Anthem said — Anthem Blue Cross says that it’s raising its premiums is because so many people are dropping out of individual coverage because the economy is so bad and that leaves the people in the pool who are people who need medical care driving up costs. One of the reasons why businesses are not expanding right now, in addition to some of the credit issues you’ve talked about, at least according to business leaders, is they say there’s an uncertainty of what they need to plan for because of the energy bill, because of health care. That’s what they say. I’m not saying it’s true or not, but that’s what they say. What do you say when you hear that?

THE PRESIDENT: Well, I think that the biggest uncertainty has been we just went through the worst recession since the Great Depression and people weren’t sure whether the financial system was going to melt down and whether we were going to tip into a endless recession. So let’s be clear about the sources of uncertainty in terms of business investment over the last several years: A huge contraction, trillions of dollars of losses in people’s 401(k)s; people have a lot of debt coming out of the previous decade that they still haven’t worked out; the housing market losing a whole bunch of value.

So the good news is that where we were contracting by 6 percent the economy is now growing by 6 percent. The CEOs I talked to are saying they are now making investments, and I anticipate that they’re going to start hiring at a more rapid clip. What I’ve also heard is them saying that we would like to feel like Washington is working and able to get some things done.
There are two ways of interpreting the issue of uncertainty. One way would be to say, well, you know what, we’ll just go back to what we were doing before on, let’s say, the financial markets. We won’t have the regulations that we need; we won’t make any changes in terms of “too big to fail.” That will provide certainty — until the next financial crisis.

That’s not the kind of certainty I think that the financial markets need. The kind of certainty they need is for us to go ahead and agree on a bipartisan effort to put some rules of the road in place so that consumers are protected in the financial markets; so that we don’t have banks that are too big to fail; that we have ways of winding them down and protecting the overall system without taxpayer bailouts. That requires legislation. The sooner we can get that done, the better.

The same would be true when it comes to health care. A lot of CEOs I hear from will say, boy, we’d like you to get health care settled one way or another, but they will acknowledge that when they open up their latest invoice for their premiums and they find out that those premiums have gone up 20 percent or 25 percent, that’s the kind of uncertainty that also tamps down business investment.

So I guess my answer would be this: The sooner the business community has a sense that we’ve got our act together here in Washington and can move forward on big, serious issues in a substantive way without a lot of posturing and partisan wrangling, I think the better off the entire country is going to be. I absolutely agree on that.

What I think is important is not to buy into this notion that is perpetrated by some of the business interests that got a stake in this who are fighting financial reform, for example, to say, boy, we’d be doing fine if we just didn’t try to regulate the banks. That I think would be a mistake.

Q Just to play devil’s advocate on that — a small business, let’s say, not somebody who’s going to be affected by the regulatory reform, small business — you have proposed, you would acknowledge, a bold agenda. And a small business might wonder, I don’t know how the energy bill is going to affect me, I don’t know how the health care reform bill is going to affect me — I’d better hold off on hiring.

THE PRESIDENT: The small businesses I talk to — and I’ve been talking to a lot of them as I’ve been traveling around the country over the last several months — their biggest problem is right now they can’t get credit out of their banks so they’re uncertain about that. And they’re still uncertain about orders — do they just have enough customers to justify them doing more.

It’s looking better at this point. But that’s not the rationale for people saying, I’m not hiring. Let me put it this way. Most small businesses right now, if they’ve got enough customers to make a profit and they can get the bank loans required to boost their payroll, boost their inventory, and sell to those customers, they will do so. Okay?

Let’s see, let’s get a print guy here. David.

Q You heard McConnell talk about nuclear power, offshore drilling, free trade — that’s a lot of Republican stuff. Is your party going to go for that if you decide to support that –

THE PRESIDENT: You know, I think that on energy there should be a bipartisan agreement that we have to take a both/and approach rather than an either/or approach. What do I mean by that? I am very firm in my conviction that the country that leads the way in clean energy — solar, wind, biodiesel, geothermal — that country is going to win the race in the 21st century global economy. So we have to move in that direction.

What is also true is that given our energy needs in order to continue economic growth, produce jobs, make sure our businesses are competitive around the world, that we’re going to need some of the old, traditional energy sources as we’re developing these new ones and ramping them up. So we can’t overnight convert to an all-solar or an all-wind economy. That just can’t happen. We’re going to have needs in these traditional sources.

And so the question then is, are we going to be able to put together a package that includes safe, secure nuclear power; that includes new technologies so that we can use coal — which we have in abundance and is very cheap, but often is adding to our greenhouse gases — can we find sequestration technologies that clean that up; can we identify opportunities to increase our oil and natural gas production in a way that is environmentally sustainable? And that should be part of a package with our development of clean energy.

And my hope is that my Republican friends, but also Democrats, say to themselves, let’s be practical and let’s do both. Let’s not just do one or the other; let’s do both. Over time I think the transition is going to be more and more clean energy and over time fossil fuels become less prominent in our overall energy mix. But we’ve got to do both.

Q How confident are you there will be that kind of consensus for that double-edged approach?

THE PRESIDENT: I am just a eternal optimist — (laughter) — and so — it’s the right thing to do. And all I can do is just to keep on making the argument about what’s right for the country and assume that over time people, regardless of party, regardless of their particular political positions, are going to gravitate towards the truth. Okay?

I’m going to take two more. Let’s see –

Q How about the back? (Laughter.)

THE PRESIDENT: Well, I just want to make sure that I was getting a balance here, so — go ahead, Chuck.

Q Awwww –

THE PRESIDENT: Why is everybody moaning about Todd?

Q He’s too good. His questions are too precise. (Laughter.)

Q Iran — we got the news today that they’re doing more of these — trying to enhance this uranium even more. Obviously Secretary Gates today in Paris was quoted as saying basically the dialogue seems to be over and now the question is sanctions. Where are we on sanctions? How close is this? I know you had sort of an end-of-the-year deadline when you stood up there with Sarkozy and Brown. It’s now February. How quickly is this moving along?

THE PRESIDENT: Well, it’s moving along fairly quickly. I think that we have bent over backwards to say to the Islamic Republic of Iran that we are willing to have a constructive conversation about how they can align themselves with international norms and rules and reenter as full members of the international community.

The most obvious attempt was when we gave them an offer that said we are going to provide the conversion of some of the low-enriched uranium that they already have into the isotopes that they need for their medical research and for hospitals that would serve up to a million Iranian citizens. They rejected it — although one of the difficulties in dealing with Iran over the last several months is it’s not always clear who’s speaking on behalf of the government, and we get a lot of different, mixed signals. But what’s clear is, is that they have not said yes to an agreement that Russia, China, Germany, France, Great Britain and the United States all said was a good deal, and that the director of the IAEA said was the right thing to do and that Iran should accept.

That indicates to us that, despite their posturing that their nuclear power is only for civilian use, that they in fact continue to pursue a course that would lead to weaponization. And that is not acceptable to the international community, not just to the United States. So what we’ve said from the start was we’re moving on dual tracks. If you want to accept the kinds of agreements with the international community that lead you down a path of being a member of good standing, then we welcome you. If not –

Q Haven’t they responded, though? I mean, by deciding to do what they did, with these –

THE PRESIDENT: Well, I’m getting to that.

Q Okay.

THE PRESIDENT: And if not, then the next step is sanctions. They have made their choice so far, although the door is still open. And what we are going to be working on over the next several weeks is developing a significant regime of sanctions that will indicate to them how isolated they are from the international community as a whole.

Q What do you mean by “regime of sanctions”?

THE PRESIDENT: Well, meaning that there’s going to be a –

Q Some will be U.N. and some will be –

THE PRESIDENT: We are going to be looking at a variety of ways in which countries indicate to Iran that their approach is unacceptable. And the U.N. will be one aspect of that broader effort.

Q China will be there? You’re confident?

THE PRESIDENT: Well, the — we are confident right now that the international community is unified around Iran’s misbehavior in this area. How China operates at the Security Council as we pursue sanctions is something that we’re going to have to see. One thing I’m pleased about is to see how forward-leaning the Russians have been on this issue. I think they clearly have seen that Iran hasn’t been serious about solving what is a solvable dispute between Iran and the international community.

All right? I’m going to make this the last question. And I’ll take somebody from the back — yes.

Q Me?

THE PRESIDENT: Yes.

Q Thanks for doing this. It’s been a while. (Laughter.) On health care, the Republicans are asking whether the February 25th session will include economists and public interest groups and people supporting your side, or will it just be the members of Congress? And on Anthem Blue Cross, do you have the authority to go in and tell a private company they can’t charge that — how will you stop them?

THE PRESIDENT: Well, I don’t have the authority as I understand it — I can’t simply issue an executive order lowering everybody’s rates. If I could I would have done that already and saved myself a lot of grief on Capitol Hill. That’s why reform is so important. That’s why the status quo is unacceptable.

But there is no shortcut in dealing with this issue. I know the American people get frustrated in debating something like health care because you get a whole bunch of different claims being made by different groups and different interests. It is a big, complicated, tough issue. But what is also true is that without some action on the part of Congress, it is very unlikely that we see any improvement over the current trajectory. And the current trajectory is premiums keep on going up 10, 15, 20, 30 percent. The current trajectory is more and more people are losing health care.

I don’t know if people noted, because during the health care debate everybody was saying the President is trying to take over — a government takeover of health care. I don’t know if anybody noticed that for the first time this year you saw more people getting health care from government than you did from the private sector — not because of anything we did, but because more and more people are losing their health care from their employers. It’s becoming unaffordable. That’s what we’re trying to prevent.

We want people to be able to get health care from their employers. But we also understand that you’ve got to fix the system so that people are able to get it at affordable rates and small businesses can afford to give their employees insurance at an affordable rate. And that’s not happening right now.

To your question about the 25th, my hope is that this doesn’t end up being political theater, as I think some of you have phrased it. I want a substantive discussion. We haven’t refined exactly how the agenda is going to go that day. We want to talk with both the Democratic and Republican leaders to find out what they think would be most useful. I do want to make sure that there’s some people like the Congressional Budget Office, for example, that are considered non-partisan, who can answer questions.

In this whole health care debate I’m reminded of the story that was told about Senator Moynihan, who was I guess in an argument with one of his colleagues, and his colleague was losing the argument so he got a little flustered and said to Senator Moynihan, “Well, I’m entitled to my own opinion.” And Senator Moynihan said, “Well, you’re entitled to your own opinion, but you’re not entitled to your own facts.” I think that’s the key to a successful dialogue on the 25th or on health care.

Let’s establish some common facts. Let’s establish what the issues are, what the problems are, and let’s test out in front of the American people what ideas work and what ideas don’t. And if we can establish that factual accuracy about how different approaches would work, then I think we can make some progress. And it may be that some of the facts that come up are ones that make my party a little bit uncomfortable. So if it’s established that by working seriously on medical malpractice and tort reform that we can reduce some of those costs, I’ve said from the beginning of this debate I’d be willing to work on that. On the other hand, if I’m told that that is only a fraction of the problem and that is not the biggest driver of health care costs, then I’m also going to insist, okay, let’s look at that as one aspect of it, but what else are we willing to do?

And this is where it gets back to the point I was making earlier. Bipartisanship cannot mean simply that Democrats give up everything that they believe in, find the handful of things that Republicans have been advocating for and we do those things, and then we have bipartisanship. That’s not how it works in any other realm of life. That’s certainly not how it works in my marriage with Michelle, although I usually do give in most of the time. (Laughter.) But the — there’s got to be some give and take, and that’s what I’m hoping can be accomplished. And I’m confident that’s what the American people are looking for.

So, all right?

Q Jobs question?

THE PRESIDENT: Okay, since there wasn’t a jobs question –

Q Well, I just –

THE PRESIDENT: I’ll make this the last one, jobs question.

Q At the stakeout, the Republicans were saying, well, the jobs package we’ve seen, it’s not really ready yet, we’re a little worried about the cost. Are you satisfied that there is something that can be quickly moved through Congress on jobs?

THE PRESIDENT: Well, my understanding is — first of all, the House has moved forward a jobs package that has some good elements in it. My understanding is, is that there is bipartisan talks taking place as we speak on the Senate side about some elements of a package.

I think there are some things that a lot of people agree on. Just to give you an example, the idea of eliminating capital gains for small businesses — something we can all agree on. I talked about it at the State of the Union address. My hope would be that we would all agree on a mechanism to get community banks who are lending to small businesses more capital, because that is something that I keep on hearing is one of the biggest problems that small businesses have out there.

So I think that it’s realistic for us to get a package moving quickly that may not include all the things I think need to be done, and it may be that that first package builds some trust and confidence that Democrats and Republicans on Capitol Hill can work together and then we move on to the next aspect of the package and so forth. It may take a series of incremental steps, but the one thing I’m absolutely clear about is, is that we’ve got an economy that’s growing right now, a huge boost in productivity — that’s the good news. The bad news is, is that companies still haven’t taken that final step in actually putting people on their payroll full-time.

We’re seeing an increase in temporary workers, but they haven’t yet taken on that full-time worker. And so providing some additional impetus to them, right as the economy is moving in a positive direction, I think can end up yielding some good results.

All right? Thank you, guys. That was pretty good, thanks.

END
2:11 P.M. EST

Sarah Palin has achieved what Ralph Nader never could – she’s the leader of a populist revolution. Palin is successful because she appeals to the lowest common denominator and progressives, like Nader, appeal to high level intellect.

Palin sees the world in black and white. She often refers to her “solutions” as simple and common sense. Palin’s for freedom, free markets and lower taxes. These are easy concepts for her to sell because Palin avoids detailing any proposals that would actually solve any of the problems this country faces. Her speech at the tea party convention last weekend was a series of poorly written slogans and catch phrases. She told the audience everything they wanted to hear.

Progressives on the other hand see the world in shades of gray. They understand that health care reform is a complex problem, the solution therefore is necessarily complex and requires more than three words to explain and understand.

I’m not saying that all Americans are stupid, but 300 million collectively are not that intelligent. And the anti-intellectual streak that permeates our culture makes it difficult to explain complex problems. Some things are require more than “Got Milk?” marketing tricks. Also, unfortunately critically thinking is just not taught in most high schools – that’s hurting us as the world becomes much more complicated and politicians hone their ability to lie.

But rather than offer counter proposals and honestly challenging the Democrat’s health care reform, conservatives resort to slogans and misinformation. They call the president a communist. They accuse Democrats of nationalizing health care and setting up death panels. It’s easier for conservatives to just push American’s buttons. Communist. Socialist. Death panels. Prominent conservatives today are just not honest brokers in the nation’s political discourse.

So when it comes to global warming, health care reform, unemployment and fixing the economy, progressives are labeled as pointy headed intellectuals while conservatives mock them and spread lies appealing to their base’s base instincts.

Rather than trying to “reach across the aisle,” Democrats should just go it alone. If Republicans want to filibuster their legislature – let them. They held up civil rights legislation in the ’60s for almost three months.

Force Republicans to bring our legislative process to a halt and see how that works out for them. While they might not succeed, if Democrats truly embrace the progressive agenda and educate the people about their policies, enough people will get it and those that don’t – oh well.

This is the complete text of President Obama’s State of the Union delivered on Jan. 27, 2010 and transcribed by the White House.

Madam Speaker, Vice President Biden, members of Congress, distinguished guests, and fellow Americans:

Our Constitution declares that from time to time, the President shall give to Congress information about the state of our union. For 220 years, our leaders have fulfilled this duty. They’ve done so during periods of prosperity and tranquility. And they’ve done so in the midst of war and depression; at moments of great strife and great struggle.

It’s tempting to look back on these moments and assume that our progress was inevitable — that America was always destined to succeed. But when the Union was turned back at Bull Run, and the Allies first landed at Omaha Beach, victory was very much in doubt. When the market crashed on Black Tuesday, and civil rights marchers were beaten on Bloody Sunday, the future was anything but certain. These were the times that tested the courage of our convictions, and the strength of our union. And despite all our divisions and disagreements, our hesitations and our fears, America prevailed because we chose to move forward as one nation, as one people.

Again, we are tested. And again, we must answer history’s call.

One year ago, I took office amid two wars, an economy rocked by a severe recession, a financial system on the verge of collapse, and a government deeply in debt. Experts from across the political spectrum warned that if we did not act, we might face a second depression. So we acted — immediately and aggressively. And one year later, the worst of the storm has passed.

But the devastation remains. One in 10 Americans still cannot find work. Many businesses have shuttered. Home values have declined. Small towns and rural communities have been hit especially hard. And for those who’d already known poverty, life has become that much harder.

This recession has also compounded the burdens that America’s families have been dealing with for decades — the burden of working harder and longer for less; of being unable to save enough to retire or help kids with college.

So I know the anxieties that are out there right now. They’re not new. These struggles are the reason I ran for President. These struggles are what I’ve witnessed for years in places like Elkhart, Indiana; Galesburg, Illinois. I hear about them in the letters that I read each night. The toughest to read are those written by children — asking why they have to move from their home, asking when their mom or dad will be able to go back to work.

For these Americans and so many others, change has not come fast enough. Some are frustrated; some are angry. They don’t understand why it seems like bad behavior on Wall Street is rewarded, but hard work on Main Street isn’t; or why Washington has been unable or unwilling to solve any of our problems. They’re tired of the partisanship and the shouting and the pettiness. They know we can’t afford it. Not now.

So we face big and difficult challenges. And what the American people hope — what they deserve — is for all of us, Democrats and Republicans, to work through our differences; to overcome the numbing weight of our politics. For while the people who sent us here have different backgrounds, different stories, different beliefs, the anxieties they face are the same. The aspirations they hold are shared: a job that pays the bills; a chance to get ahead; most of all, the ability to give their children a better life.

You know what else they share? They share a stubborn resilience in the face of adversity. After one of the most difficult years in our history, they remain busy building cars and teaching kids, starting businesses and going back to school. They’re coaching Little League and helping their neighbors. One woman wrote to me and said, “We are strained but hopeful, struggling but encouraged.”

It’s because of this spirit — this great decency and great strength — that I have never been more hopeful about America’s future than I am tonight. (Applause.) Despite our hardships, our union is strong. We do not give up. We do not quit. We do not allow fear or division to break our spirit. In this new decade, it’s time the American people get a government that matches their decency; that embodies their strength. (Applause.)
And tonight, tonight I’d like to talk about how together we can deliver on that promise.

It begins with our economy.

Our most urgent task upon taking office was to shore up the same banks that helped cause this crisis. It was not easy to do. And if there’s one thing that has unified Democrats and Republicans, and everybody in between, it’s that we all hated the bank bailout. I hated it — (applause.) I hated it. You hated it. It was about as popular as a root canal. (Laughter.)

But when I ran for President, I promised I wouldn’t just do what was popular — I would do what was necessary. And if we had allowed the meltdown of the financial system, unemployment might be double what it is today. More businesses would certainly have closed. More homes would have surely been lost.

So I supported the last administration’s efforts to create the financial rescue program. And when we took that program over, we made it more transparent and more accountable. And as a result, the markets are now stabilized, and we’ve recovered most of the money we spent on the banks. (Applause.) Most but not all.

To recover the rest, I’ve proposed a fee on the biggest banks. (Applause.) Now, I know Wall Street isn’t keen on this idea. But if these firms can afford to hand out big bonuses again, they can afford a modest fee to pay back the taxpayers who rescued them in their time of need. (Applause.)

Now, as we stabilized the financial system, we also took steps to get our economy growing again, save as many jobs as possible, and help Americans who had become unemployed.

That’s why we extended or increased unemployment benefits for more than 18 million Americans; made health insurance 65 percent cheaper for families who get their coverage through COBRA; and passed 25 different tax cuts.

Now, let me repeat: We cut taxes. We cut taxes for 95 percent of working families. (Applause.) We cut taxes for small businesses. We cut taxes for first-time homebuyers. We cut taxes for parents trying to care for their children. We cut taxes for 8 million Americans paying for college. (Applause.)

I thought I’d get some applause on that one. (Laughter and applause.)

As a result, millions of Americans had more to spend on gas and food and other necessities, all of which helped businesses keep more workers. And we haven’t raised income taxes by a single dime on a single person. Not a single dime. (Applause.)

Because of the steps we took, there are about two million Americans working right now who would otherwise be unemployed. (Applause.) Two hundred thousand work in construction and clean energy; 300,000 are teachers and other education workers. Tens of thousands are cops, firefighters, correctional officers, first responders. (Applause.) And we’re on track to add another one and a half million jobs to this total by the end of the year.

The plan that has made all of this possible, from the tax cuts to the jobs, is the Recovery Act. (Applause.) That’s right — the Recovery Act, also known as the stimulus bill. (Applause.) Economists on the left and the right say this bill has helped save jobs and avert disaster. But you don’t have to take their word for it. Talk to the small business in Phoenix that will triple its workforce because of the Recovery Act. Talk to the window manufacturer in Philadelphia who said he used to be skeptical about the Recovery Act, until he had to add two more work shifts just because of the business it created. Talk to the single teacher raising two kids who was told by her principal in the last week of school that because of the Recovery Act, she wouldn’t be laid off after all.

There are stories like this all across America. And after two years of recession, the economy is growing again. Retirement funds have started to gain back some of their value. Businesses are beginning to invest again, and slowly some are starting to hire again.

But I realize that for every success story, there are other stories, of men and women who wake up with the anguish of not knowing where their next paycheck will come from; who send out resumes week after week and hear nothing in response. That is why jobs must be our number-one focus in 2010, and that’s why I’m calling for a new jobs bill tonight. (Applause.)

Now, the true engine of job creation in this country will always be America’s businesses. (Applause.) But government can create the conditions necessary for businesses to expand and hire more workers.

We should start where most new jobs do — in small businesses, companies that begin when — (applause) — companies that begin when an entrepreneur — when an entrepreneur takes a chance on a dream, or a worker decides it’s time she became her own boss. Through sheer grit and determination, these companies have weathered the recession and they’re ready to grow. But when you talk to small businessowners in places like Allentown, Pennsylvania, or Elyria, Ohio, you find out that even though banks on Wall Street are lending again, they’re mostly lending to bigger companies. Financing remains difficult for small businessowners across the country, even those that are making a profit.

So tonight, I’m proposing that we take $30 billion of the money Wall Street banks have repaid and use it to help community banks give small businesses the credit they need to stay afloat. (Applause.) I’m also proposing a new small business tax credit
– one that will go to over one million small businesses who hire new workers or raise wages. (Applause.) While we’re at it, let’s also eliminate all capital gains taxes on small business investment, and provide a tax incentive for all large businesses and all small businesses to invest in new plants and equipment. (Applause.)

Next, we can put Americans to work today building the infrastructure of tomorrow. (Applause.) From the first railroads to the Interstate Highway System, our nation has always been built to compete. There’s no reason Europe or China should have the fastest trains, or the new factories that manufacture clean energy products.

Tomorrow, I’ll visit Tampa, Florida, where workers will soon break ground on a new high-speed railroad funded by the Recovery Act. (Applause.) There are projects like that all across this country that will create jobs and help move our nation’s goods, services, and information. (Applause.)

We should put more Americans to work building clean energy facilities — (applause) — and give rebates to Americans who make their homes more energy-efficient, which supports clean energy jobs. (Applause.) And to encourage these and other businesses to stay within our borders, it is time to finally slash the tax breaks for companies that ship our jobs overseas, and give those tax breaks to companies that create jobs right here in the United States of America. (Applause.)

Now, the House has passed a jobs bill that includes some of these steps. (Applause.) As the first order of business this year, I urge the Senate to do the same, and I know they will. (Applause.) They will. (Applause.) People are out of work. They’re hurting. They need our help. And I want a jobs bill on my desk without delay. (Applause.)

But the truth is, these steps won’t make up for the seven million jobs that we’ve lost over the last two years. The only way to move to full employment is to lay a new foundation for long-term economic growth, and finally address the problems that America’s families have confronted for years.

We can’t afford another so-called economic “expansion” like the one from the last decade — what some call the “lost decade” — where jobs grew more slowly than during any prior expansion; where the income of the average American household declined while the cost of health care and tuition reached record highs; where prosperity was built on a housing bubble and financial speculation.

From the day I took office, I’ve been told that addressing our larger challenges is too ambitious; such an effort would be too contentious. I’ve been told that our political system is too gridlocked, and that we should just put things on hold for a while.

For those who make these claims, I have one simple question: How long should we wait? How long should America put its future on hold? (Applause.)

You see, Washington has been telling us to wait for decades, even as the problems have grown worse. Meanwhile, China is not waiting to revamp its economy. Germany is not waiting. India is not waiting. These nations — they’re not standing still. These nations aren’t playing for second place. They’re putting more emphasis on math and science. They’re rebuilding their infrastructure. They’re making serious investments in clean energy because they want those jobs. Well, I do not accept second place for the United States of America. (Applause.)

As hard as it may be, as uncomfortable and contentious as the debates may become, it’s time to get serious about fixing the problems that are hampering our growth.

Now, one place to start is serious financial reform. Look, I am not interested in punishing banks. I’m interested in protecting our economy. A strong, healthy financial market makes it possible for businesses to access credit and create new jobs. It channels the savings of families into investments that raise incomes. But that can only happen if we guard against the same recklessness that nearly brought down our entire economy.

We need to make sure consumers and middle-class families have the information they need to make financial decisions. (Applause.) We can’t allow financial institutions, including those that take your deposits, to take risks that threaten the whole economy.

Now, the House has already passed financial reform with many of these changes. (Applause.) And the lobbyists are trying to kill it. But we cannot let them win this fight. (Applause.) And if the bill that ends up on my desk does not meet the test of real reform, I will send it back until we get it right. We’ve got to get it right. (Applause.)

Next, we need to encourage American innovation. Last year, we made the largest investment in basic research funding in history — (applause) — an investment that could lead to the world’s cheapest solar cells or treatment that kills cancer cells but leaves healthy ones untouched. And no area is more ripe for such innovation than energy. You can see the results of last year’s investments in clean energy — in the North Carolina company that will create 1,200 jobs nationwide helping to make advanced batteries; or in the California business that will put a thousand people to work making solar panels.

But to create more of these clean energy jobs, we need more production, more efficiency, more incentives. And that means building a new generation of safe, clean nuclear power plants in this country. (Applause.) It means making tough decisions about opening new offshore areas for oil and gas development. (Applause.) It means continued investment in advanced biofuels and clean coal technologies. (Applause.) And, yes, it means passing a comprehensive energy and climate bill with incentives that will finally make clean energy the profitable kind of energy in America. (Applause.)

I am grateful to the House for passing such a bill last year. (Applause.) And this year I’m eager to help advance the bipartisan effort in the Senate. (Applause.)

I know there have been questions about whether we can afford such changes in a tough economy. I know that there are those who disagree with the overwhelming scientific evidence on climate change. But here’s the thing — even if you doubt the evidence, providing incentives for energy-efficiency and clean energy are the right thing to do for our future — because the nation that leads the clean energy economy will be the nation that leads the global economy. And America must be that nation. (Applause.)

Third, we need to export more of our goods. (Applause.) Because the more products we make and sell to other countries, the more jobs we support right here in America. (Applause.) So tonight, we set a new goal: We will double our exports over the next five years, an increase that will support two million jobs in America. (Applause.) To help meet this goal, we’re launching a National Export Initiative that will help farmers and small businesses increase their exports, and reform export controls consistent with national security. (Applause.)

We have to seek new markets aggressively, just as our competitors are. If America sits on the sidelines while other nations sign trade deals, we will lose the chance to create jobs on our shores. (Applause.) But realizing those benefits also means enforcing those agreements so our trading partners play by the rules. (Applause.) And that’s why we’ll continue to shape a Doha trade agreement that opens global markets, and why we will strengthen our trade relations in Asia and with key partners like South Korea and Panama and Colombia. (Applause.)

Fourth, we need to invest in the skills and education of our people. (Applause.)

Now, this year, we’ve broken through the stalemate between left and right by launching a national competition to improve our schools. And the idea here is simple: Instead of rewarding failure, we only reward success. Instead of funding the status quo, we only invest in reform — reform that raises student achievement; inspires students to excel in math and science; and turns around failing schools that steal the future of too many young Americans, from rural communities to the inner city. In the 21st century, the best anti-poverty program around is a world-class education. (Applause.) And in this country, the success of our children cannot depend more on where they live than on their potential.

When we renew the Elementary and Secondary Education Act, we will work with Congress to expand these reforms to all 50 states. Still, in this economy, a high school diploma no longer guarantees a good job. That’s why I urge the Senate to follow the House and pass a bill that will revitalize our community colleges, which are a career pathway to the children of so many working families. (Applause.)

To make college more affordable, this bill will finally end the unwarranted taxpayer subsidies that go to banks for student loans. (Applause.) Instead, let’s take that money and give families a $10,000 tax credit for four years of college and increase Pell Grants. (Applause.) And let’s tell another one million students that when they graduate, they will be required to pay only 10 percent of their income on student loans, and all of their debt will be forgiven after 20 years — and forgiven after 10 years if they choose a career in public service, because in the United States of America, no one should go broke because they chose to go to college. (Applause.)

And by the way, it’s time for colleges and universities to get serious about cutting their own costs — (applause) — because they, too, have a responsibility to help solve this problem.

Now, the price of college tuition is just one of the burdens facing the middle class. That’s why last year I asked Vice President Biden to chair a task force on middle-class families. That’s why we’re nearly doubling the child care tax credit, and making it easier to save for retirement by giving access to every worker a retirement account and expanding the tax credit for those who start a nest egg. That’s why we’re working to lift the value of a family’s single largest investment — their home. The steps we took last year to shore up the housing market have allowed millions of Americans to take out new loans and save an average of $1,500 on mortgage payments.

This year, we will step up refinancing so that homeowners can move into more affordable mortgages. (Applause.) And it is precisely to relieve the burden on middle-class families that we still need health insurance reform. (Applause.) Yes, we do. (Applause.)

Now, let’s clear a few things up. (Laughter.) I didn’t choose to tackle this issue to get some legislative victory under my belt. And by now it should be fairly obvious that I didn’t take on health care because it was good politics. (Laughter.) I took on health care because of the stories I’ve heard from Americans with preexisting conditions whose lives depend on getting coverage; patients who’ve been denied coverage; families — even those with insurance — who are just one illness away from financial ruin.

After nearly a century of trying — Democratic administrations, Republican administrations — we are closer than ever to bringing more security to the lives of so many Americans. The approach we’ve taken would protect every American from the worst practices of the insurance industry. It would give small businesses and uninsured Americans a chance to choose an affordable health care plan in a competitive market. It would require every insurance plan to cover preventive care.

And by the way, I want to acknowledge our First Lady, Michelle Obama, who this year is creating a national movement to tackle the epidemic of childhood obesity and make kids healthier. (Applause.) Thank you. She gets embarrassed. (Laughter.)

Our approach would preserve the right of Americans who have insurance to keep their doctor and their plan. It would reduce costs and premiums for millions of families and businesses. And according to the Congressional Budget Office — the independent organization that both parties have cited as the official scorekeeper for Congress — our approach would bring down the deficit by as much as $1 trillion over the next two decades. (Applause.)

Still, this is a complex issue, and the longer it was debated, the more skeptical people became. I take my share of the blame for not explaining it more clearly to the American people. And I know that with all the lobbying and horse-trading, the process left most Americans wondering, “What’s in it for me?”

But I also know this problem is not going away. By the time I’m finished speaking tonight, more Americans will have lost their health insurance. Millions will lose it this year. Our deficit will grow. Premiums will go up. Patients will be denied the care they need. Small business owners will continue to drop coverage altogether. I will not walk away from these Americans, and neither should the people in this chamber. (Applause.)

So, as temperatures cool, I want everyone to take another look at the plan we’ve proposed. There’s a reason why many doctors, nurses, and health care experts who know our system best consider this approach a vast improvement over the status quo. But if anyone from either party has a better approach that will bring down premiums, bring down the deficit, cover the uninsured, strengthen Medicare for seniors, and stop insurance company abuses, let me know. (Applause.) Let me know. Let me know. (Applause.) I’m eager to see it.

Here’s what I ask Congress, though: Don’t walk away from reform. Not now. Not when we are so close. Let us find a way to come together and finish the job for the American people. (Applause.) Let’s get it done. Let’s get it done. (Applause.)

Now, even as health care reform would reduce our deficit, it’s not enough to dig us out of a massive fiscal hole in which we find ourselves. It’s a challenge that makes all others that much harder to solve, and one that’s been subject to a lot of political posturing. So let me start the discussion of government spending by setting the record straight.

At the beginning of the last decade, the year 2000, America had a budget surplus of over $200 billion. (Applause.) By the time I took office, we had a one-year deficit of over $1 trillion and projected deficits of $8 trillion over the next decade. Most of this was the result of not paying for two wars, two tax cuts, and an expensive prescription drug program. On top of that, the effects of the recession put a $3 trillion hole in our budget. All this was before I walked in the door. (Laughter and applause.)

Now — just stating the facts. Now, if we had taken office in ordinary times, I would have liked nothing more than to start bringing down the deficit. But we took office amid a crisis. And our efforts to prevent a second depression have added another $1 trillion to our national debt. That, too, is a fact.

I’m absolutely convinced that was the right thing to do. But families across the country are tightening their belts and making tough decisions. The federal government should do the same. (Applause.) So tonight, I’m proposing specific steps to pay for the trillion dollars that it took to rescue the economy last year.

Starting in 2011, we are prepared to freeze government spending for three years. (Applause.) Spending related to our national security, Medicare, Medicaid, and Social Security will not be affected. But all other discretionary government programs will. Like any cash-strapped family, we will work within a budget to invest in what we need and sacrifice what we don’t. And if I have to enforce this discipline by veto, I will. (Applause.)

We will continue to go through the budget, line by line, page by page, to eliminate programs that we can’t afford and don’t work. We’ve already identified $20 billion in savings for next year. To help working families, we’ll extend our middle-class tax cuts. But at a time of record deficits, we will not continue tax cuts for oil companies, for investment fund managers, and for those making over $250,000 a year. We just can’t afford it. (Applause.)

Now, even after paying for what we spent on my watch, we’ll still face the massive deficit we had when I took office. More importantly, the cost of Medicare, Medicaid, and Social Security will continue to skyrocket. That’s why I’ve called for a bipartisan fiscal commission, modeled on a proposal by Republican Judd Gregg and Democrat Kent Conrad. (Applause.) This can’t be one of those Washington gimmicks that lets us pretend we solved a problem. The commission will have to provide a specific set of solutions by a certain deadline.

Now, yesterday, the Senate blocked a bill that would have created this commission. So I’ll issue an executive order that will allow us to go forward, because I refuse to pass this problem on to another generation of Americans. (Applause.) And when the vote comes tomorrow, the Senate should restore the pay-as-you-go law that was a big reason for why we had record surpluses in the 1990s. (Applause.)

Now, I know that some in my own party will argue that we can’t address the deficit or freeze government spending when so many are still hurting. And I agree — which is why this freeze won’t take effect until next year — (laughter) — when the economy is stronger. That’s how budgeting works. (Laughter and applause.) But understand — understand if we don’t take meaningful steps to rein in our debt, it could damage our markets, increase the cost of borrowing, and jeopardize our recovery — all of which would have an even worse effect on our job growth and family incomes.

From some on the right, I expect we’ll hear a different argument — that if we just make fewer investments in our people, extend tax cuts including those for the wealthier Americans, eliminate more regulations, maintain the status quo on health care, our deficits will go away. The problem is that’s what we did for eight years. (Applause.) That’s what helped us into this crisis. It’s what helped lead to these deficits. We can’t do it again.

Rather than fight the same tired battles that have dominated Washington for decades, it’s time to try something new. Let’s invest in our people without leaving them a mountain of debt. Let’s meet our responsibility to the citizens who sent us here. Let’s try common sense. (Laughter.) A novel concept.

To do that, we have to recognize that we face more than a deficit of dollars right now. We face a deficit of trust — deep and corrosive doubts about how Washington works that have been growing for years. To close that credibility gap we have to take action on both ends of Pennsylvania Avenue — to end the outsized influence of lobbyists; to do our work openly; to give our people the government they deserve. (Applause.)

That’s what I came to Washington to do. That’s why — for the first time in history — my administration posts on our White House visitors online. That’s why we’ve excluded lobbyists from policymaking jobs, or seats on federal boards and commissions.

But we can’t stop there. It’s time to require lobbyists to disclose each contact they make on behalf of a client with my administration or with Congress. It’s time to put strict limits on the contributions that lobbyists give to candidates for federal office.

With all due deference to separation of powers, last week the Supreme Court reversed a century of law that I believe will open the floodgates for special interests — including foreign corporations — to spend without limit in our elections. (Applause.) I don’t think American elections should be bankrolled by America’s most powerful interests, or worse, by foreign entities. (Applause.) They should be decided by the American people. And I’d urge Democrats and Republicans to pass a bill that helps to correct some of these problems.

I’m also calling on Congress to continue down the path of earmark reform. Applause.) Democrats and Republicans. (Applause.) Democrats and Republicans. You’ve trimmed some of this spending, you’ve embraced some meaningful change. But restoring the public trust demands more. For example, some members of Congress post some earmark requests online. (Applause.) Tonight, I’m calling on Congress to publish all earmark requests on a single Web site before there’s a vote, so that the American people can see how their money is being spent. (Applause.)

Of course, none of these reforms will even happen if we don’t also reform how we work with one another. Now, I’m not naïve. I never thought that the mere fact of my election would usher in peace and harmony — (laughter) — and some post-partisan era. I knew that both parties have fed divisions that are deeply entrenched. And on some issues, there are simply philosophical differences that will always cause us to part ways. These disagreements, about the role of government in our lives, about our national priorities and our national security, they’ve been taking place for over 200 years. They’re the very essence of our democracy.

But what frustrates the American people is a Washington where every day is Election Day. We can’t wage a perpetual campaign where the only goal is to see who can get the most embarrassing headlines about the other side — a belief that if you lose, I win. Neither party should delay or obstruct every single bill just because they can. The confirmation of — (applause) — I’m speaking to both parties now. The confirmation of well-qualified public servants shouldn’t be held hostage to the pet projects or grudges of a few individual senators. (Applause.)

Washington may think that saying anything about the other side, no matter how false, no matter how malicious, is just part of the game. But it’s precisely such politics that has stopped either party from helping the American people. Worse yet, it’s sowing further division among our citizens, further distrust in our government.

So, no, I will not give up on trying to change the tone of our politics. I know it’s an election year. And after last week, it’s clear that campaign fever has come even earlier than usual. But we still need to govern.

To Democrats, I would remind you that we still have the largest majority in decades, and the people expect us to solve problems, not run for the hills. (Applause.) And if the Republican leadership is going to insist that 60 votes in the Senate are required to do any business at all in this town — a supermajority — then the responsibility to govern is now yours as well. (Applause.) Just saying no to everything may be good short-term politics, but it’s not leadership. We were sent here to serve our citizens, not our ambitions. (Applause.) So let’s show the American people that we can do it together. (Applause.)

This week, I’ll be addressing a meeting of the House Republicans. I’d like to begin monthly meetings with both Democratic and Republican leadership. I know you can’t wait. (Laughter.)

Throughout our history, no issue has united this country more than our security. Sadly, some of the unity we felt after 9/11 has dissipated. We can argue all we want about who’s to blame for this, but I’m not interested in re-litigating the past. I know that all of us love this country. All of us are committed to its defense. So let’s put aside the schoolyard taunts about who’s tough. Let’s reject the false choice between protecting our people and upholding our values. Let’s leave behind the fear and division, and do what it takes to defend our nation and forge a more hopeful future — for America and for the world. (Applause.)

That’s the work we began last year. Since the day I took office, we’ve renewed our focus on the terrorists who threaten our nation. We’ve made substantial investments in our homeland security and disrupted plots that threatened to take American lives. We are filling unacceptable gaps revealed by the failed Christmas attack, with better airline security and swifter action on our intelligence. We’ve prohibited torture and strengthened partnerships from the Pacific to South Asia to the Arabian Peninsula. And in the last year, hundreds of al Qaeda’s fighters and affiliates, including many senior leaders, have been captured or killed — far more than in 2008.

And in Afghanistan, we’re increasing our troops and training Afghan security forces so they can begin to take the lead in July of 2011, and our troops can begin to come home. (Applause.) We will reward good governance, work to reduce corruption, and support the rights of all Afghans — men and women alike. (Applause.) We’re joined by allies and partners who have increased their own commitments, and who will come together tomorrow in London to reaffirm our common purpose. There will be difficult days ahead. But I am absolutely confident we will succeed.

As we take the fight to al Qaeda, we are responsibly leaving Iraq to its people. As a candidate, I promised that I would end this war, and that is what I am doing as President. We will have all of our combat troops out of Iraq by the end of this August. (Applause.) We will support the Iraqi government — we will support the Iraqi government as they hold elections, and we will continue to partner with the Iraqi people to promote regional peace and prosperity. But make no mistake: This war is ending, and all of our troops are coming home. (Applause.)

Tonight, all of our men and women in uniform — in Iraq, in Afghanistan, and around the world — they have to know that we — that they have our respect, our gratitude, our full support. And just as they must have the resources they need in war, we all have a responsibility to support them when they come home. (Applause.) That’s why we made the largest increase in investments for veterans in decades — last year. (Applause.) That’s why we’re building a 21st century VA. And that’s why Michelle has joined with Jill Biden to forge a national commitment to support military families. (Applause.)

Now, even as we prosecute two wars, we’re also confronting perhaps the greatest danger to the American people — the threat of nuclear weapons. I’ve embraced the vision of John F. Kennedy and Ronald Reagan through a strategy that reverses the spread of these weapons and seeks a world without them. To reduce our stockpiles and launchers, while ensuring our deterrent, the United States and Russia are completing negotiations on the farthest-reaching arms control treaty in nearly two decades. (Applause.) And at April’s Nuclear Security Summit, we will bring 44 nations together here in Washington, D.C. behind a clear goal: securing all vulnerable nuclear materials around the world in four years, so that they never fall into the hands of terrorists. (Applause.)

Now, these diplomatic efforts have also strengthened our hand in dealing with those nations that insist on violating international agreements in pursuit of nuclear weapons. That’s why North Korea now faces increased isolation, and stronger sanctions — sanctions that are being vigorously enforced. That’s why the international community is more united, and the Islamic Republic of Iran is more isolated. And as Iran’s leaders continue to ignore their obligations, there should be no doubt: They, too, will face growing consequences. That is a promise. (Applause.)

That’s the leadership that we are providing — engagement that advances the common security and prosperity of all people. We’re working through the G20 to sustain a lasting global recovery. We’re working with Muslim communities around the world to promote science and education and innovation. We have gone from a bystander to a leader in the fight against climate change. We’re helping developing countries to feed themselves, and continuing the fight against HIV/AIDS. And we are launching a new initiative that will give us the capacity to respond faster and more effectively to bioterrorism or an infectious disease — a plan that will counter threats at home and strengthen public health abroad.

As we have for over 60 years, America takes these actions because our destiny is connected to those beyond our shores. But we also do it because it is right. That’s why, as we meet here tonight, over 10,000 Americans are working with many nations to help the people of Haiti recover and rebuild. (Applause.) That’s why we stand with the girl who yearns to go to school in Afghanistan; why we support the human rights of the women marching through the streets of Iran; why we advocate for the young man denied a job by corruption in Guinea. For America must always stand on the side of freedom and human dignity. (Applause.) Always. (Applause.)

Abroad, America’s greatest source of strength has always been our ideals. The same is true at home. We find unity in our incredible diversity, drawing on the promise enshrined in our Constitution: the notion that we’re all created equal; that no matter who you are or what you look like, if you abide by the law you should be protected by it; if you adhere to our common values you should be treated no different than anyone else.

We must continually renew this promise. My administration has a Civil Rights Division that is once again prosecuting civil rights violations and employment discrimination. (Applause.) We finally strengthened our laws to protect against crimes driven by hate. (Applause.) This year, I will work with Congress and our military to finally repeal the law that denies gay Americans the right to serve the country they love because of who they are. (Applause.) It’s the right thing to do. (Applause.)

We’re going to crack down on violations of equal pay laws — so that women get equal pay for an equal day’s work. (Applause.) And we should continue the work of fixing our broken immigration system — to secure our borders and enforce our laws, and ensure that everyone who plays by the rules can contribute to our economy and enrich our nation. (Applause.)

In the end, it’s our ideals, our values that built America — values that allowed us to forge a nation made up of immigrants from every corner of the globe; values that drive our citizens still. Every day, Americans meet their responsibilities to their families and their employers. Time and again, they lend a hand to their neighbors and give back to their country. They take pride in their labor, and are generous in spirit. These aren’t Republican values or Democratic values that they’re living by; business values or labor values. They’re American values.

Unfortunately, too many of our citizens have lost faith that our biggest institutions — our corporations, our media, and, yes, our government — still reflect these same values. Each of these institutions are full of honorable men and women doing important work that helps our country prosper. But each time a CEO rewards himself for failure, or a banker puts the rest of us at risk for his own selfish gain, people’s doubts grow. Each time lobbyists game the system or politicians tear each other down instead of lifting this country up, we lose faith. The more that TV pundits reduce serious debates to silly arguments, big issues into sound bites, our citizens turn away.

No wonder there’s so much cynicism out there. No wonder there’s so much disappointment.

I campaigned on the promise of change — change we can believe in, the slogan went. And right now, I know there are many Americans who aren’t sure if they still believe we can change — or that I can deliver it.

But remember this — I never suggested that change would be easy, or that I could do it alone. Democracy in a nation of 300 million people can be noisy and messy and complicated. And when you try to do big things and make big changes, it stirs passions and controversy. That’s just how it is.

Those of us in public office can respond to this reality by playing it safe and avoid telling hard truths and pointing fingers. We can do what’s necessary to keep our poll numbers high, and get through the next election instead of doing what’s best for the next generation.

But I also know this: If people had made that decision 50 years ago, or 100 years ago, or 200 years ago, we wouldn’t be here tonight. The only reason we are here is because generations of Americans were unafraid to do what was hard; to do what was needed even when success was uncertain; to do what it took to keep the dream of this nation alive for their children and their grandchildren.

Our administration has had some political setbacks this year, and some of them were deserved. But I wake up every day knowing that they are nothing compared to the setbacks that families all across this country have faced this year. And what keeps me going — what keeps me fighting — is that despite all these setbacks, that spirit of determination and optimism, that fundamental decency that has always been at the core of the American people, that lives on.

It lives on in the struggling small business owner who wrote to me of his company, “None of us,” he said, “…are willing to consider, even slightly, that we might fail.”

It lives on in the woman who said that even though she and her neighbors have felt the pain of recession, “We are strong. We are resilient. We are American.”

It lives on in the 8-year-old boy in Louisiana, who just sent me his allowance and asked if I would give it to the people of Haiti.

And it lives on in all the Americans who’ve dropped everything to go someplace they’ve never been and pull people they’ve never known from the rubble, prompting chants of “U.S.A.! U.S.A.! U.S.A!” when another life was saved.

The spirit that has sustained this nation for more than two centuries lives on in you, its people. We have finished a difficult year. We have come through a difficult decade. But a new year has come. A new decade stretches before us. We don’t quit. I don’t quit. (Applause.) Let’s seize this moment — to start anew, to carry the dream forward, and to strengthen our union once more. (Applause.)

Thank you. God bless you. And God bless the United States of America. (Applause.)

Rep. Nancy Pelosi

New York Times
House Democrats on Thursday unveiled an $894 billion package to remake the health care system, and celebrated by holding an outdoor rally at the Capitol where they asserted that tens of millions of Americans would soon gain affordable insurance.
Read New York Times story

Washington Post
House Speaker Nancy Pelosi (D-Calif.) unveiled a health-care reform bill Thursday that includes a government insurance option, as well as a historic expansion of Medicaid, and seemed to have the potential to draw support from a broad range of Democratic lawmakers.
Read Washington Post story

Wall Street Journal
House legislation to overhaul the health-care system, unveiled Thursday, includes a compromise version of a public insurance option and carries and overall cost of $894 billion over 10 years, House aides said.
Read Wall Street Journal story

It was a joke – I think. But during an interview with Politico, Rep. Gregg Harper, R-Missouri, when asked what the Congressional Sportsmen’s Caucus does, he said “We hunt liberal, tree-hugging Democrats, although it does seem like a waste of good ammunition.”

Harper was probably kidding. Here’s the Politico interview.

I guess we’re supposed to forget all the hyperbole spewing from the orifices of Republican politicians this summer when they were spouting off about “death panels” and a Nazi-esque takeover of health care. Now they’re pissed off about comments by Democratic Rep. Alan Grayson who accurately described the Republican “plan” for health care as one that requires Americans “die quickly.”

The political discourse in Washington continues the race-to-bottom with Republicans leading the pack.

Here’s a Washington Post story about the current kerfuffle over health care reform

It’s stupid to go on and on about the number of people who demonstrated in DC on 9/12.

Certainly there wasn’t 2 million people roaming the streets of Washington, DC, as radio host Alex Jones and other people are alleging. I mean, come on, the Washington Times reported that organizers expected between 25,000 and 50,000 people. Are we really supposed to believe that the city of DC, and the organizers, could have handled 2 million people just dropping by when they were planning on 25,000?

But if you want to get into the futile numbers game, recall back on Feb. 15, 2003 when millions of people did take to the streets. All across the world people protested the pending US invasion of Iraq. There really were millions of protesters.

Now it’s true that some of the largest protests were in Europe, but there was some big ones in the US too – despite state-sponsored suppression of free speech.

In New York, the protesters were denied a permit to march to the United Nations building because the police were concerned they wouldn’t be able to control the crowd. The organizers were forced to have a stationary protest, but the throngs of people walking to the rally area constituted a pseudo-march stretching some 20 blocks down First Avenue. The estimates are that between 300,000 and 400,000 people attended this demonstration in Manhattan.

There was another 20,000 or so in Seattle. I was at this rally and it seemed like hundreds of thousands, but even 20,000 in a city the size of Seattle looks like a lot of people. In San Fransisco about 150,000 people protested the invasion of Iraq.

All of these protests took place when public opinion polls were showing support for the war with Iraq at more than 60 percent.

But you see, it doesn’t matter how many people rally in the streets and how many polls say the nation is for this or against that, because the people aren’t in charge of jack. Everyone has been fooled into thinking that this is a representative democracy – representing the will of the people. It is not now and it has never been.

Let’s face it, this country was formed to be a republic. The idea was, according to James Madison, that virtuous men would fill Congress and the White House and make the right choice for America. That’s called a republic. Unfortunately the virtuous men turned out to be lawyers, bankers, lobbyists and other hucksters.

But that was the plan – a republic. For instance, there was no interest among the founders of this country in the popular election of the president – hence the compromise between state legislators and members of Congress to figure out who will decide who will be the president. This compromise resulted in the goofy electoral college system we have today. And go figure, under the watchful eye of our much heralded founding fathers, no one even bothered to record the popular vote for president until the 19th century.

You see the goal of forming a strong central government, legitimized and empowered by a constitution, was to provide an effective means to control wealth. It just so happened that during Andrew Jackson’s reign in the 1830s, there became a strong desire for more representation of the people (i.e. democracy), and so the Establishment yielded the illusion of power via the ballot box to the people, well, some of the people. But even today when everyone is supposed to able to vote, if you think your vote matters, you’re just not paying attention.

There’s absolutely no evidence to suggest that if millions of liberals protest a war, or millions of conservatives protest health care reform that these outbursts will have any meaningful impact on the political process. When the debate over health care reform ends, no substantive change for the people will have happened, but rather just another shuffling of the deck with corporations, capitalists and the Establishment firmly in charge of the wealth and power in America.

But I guess that’s what conservatives want, so historically the Establishment, or the right, have been winning most of the political battles while the liberals just keep losing one right after the other. It makes sense though, liberals, not Democrats, favor civil rights and equitable redistribution of the wealth, while conservatives, such as Republicans, Democrats and people incapable of abstract thought, favor corporations, capitalists and the Establishment.

Feb. 15, 2003 anti-war protests around the globe