BREAKING NEWS: REMARKS BY THE PRESIDENT ON BUDGET TALKS: “WE HAVE MADE SOME PROGRESS TODAY; GOING TO BE WORKING AROUND THE CLOCK TO CLOSE A DEAL”
REMARKS BY THE PRESIDENT
ON BUDGET TALKS
James S. Brady Press Briefing Room
9:33 P.M. EDT
THE PRESIDENT: I just completed another meeting with Speaker Boehner and Leader Reid, and I wanted to report again to the American people that we made some additional progress this evening. I think the staffs of both the House and the Senate, as well as the White House staff, have been working very hard to try to narrow the differences. We made some progress today. Those differences have been narrowed. And so once again the staff is going to be working tonight around the clock in order to see if we can finally close a deal.
But there is still a few issues that are outstanding. They’re difficult issues. They’re important to both sides. And so I’m not yet prepared to express wild optimism. But I think we are further along today than we were yesterday.
I want to reiterate to people why this is so important. We’re now less than 30 hours away from the government shutting down. That means, first of all, 800,000 families — our neighbors, our friends, who are working hard all across the country in a whole variety of functions — they suddenly are not allowed to come to work. It also means that they’re not getting a paycheck. That obviously has a tremendous impact.
You then have millions more people who end up being impacted because they’re not getting the services from the federal government that are important to them. So small businesses aren’t seeing their loans processed. Folks who want to get a mortgage through the FHA may not be able to get it, and obviously that’s not good as weak as this housing market is. You’ve got people who are trying to get a passport for a trip that they’ve been planning for a long time — they may not be able to do that. So millions more people will be significantly inconvenienced; in some ways, they may end up actually seeing money lost or opportunities lost because of a government shutdown.
And then finally, there’s going to be an effect on the economy overall. Earlier today one of our nation’s top economists said — and I’m quoting here — “The economic damage from a government shutdown would mount very quickly. And the longer it dragged on, the greater the odds of a renewed recession.”
We’ve been working very hard over the last two years to get this economy back on its feet. We’ve now seen 13 months of job growth; a hundred — 1.8 million new jobs. We had the best report, jobs report, that we’d seen in a very long time just this past Friday. For us to go backwards because Washington couldn’t get its act together is unacceptable.
So, again: 800,000 federal workers and their families impacted; millions of people who are reliant on government services not getting those services — businesses, farmers, veterans; and finally, overall impact on the economy that could end up severely hampering our recovery and our ability to put people back to work.
That’s what’s at stake. That’s why it’s important to the American people. That’s why I’m expecting that as a consequence of the good work that’s done by our staffs tonight, that we can reach an agreement tomorrow.
But let me just point out one last thing. What I’ve said to the Speaker and what I’ve said to Harry Reid is because the machinery of the shutdown is necessarily starting to move, I expect an answer in the morning. And my hope is, is that I’ll be able to announce to the American people sometime relatively early in the day that a shutdown has been averted, that a deal has been completed that has very meaningful cuts in a wide variety of categories, that helps us move in the direction of living within our means, but preserves our investments in things like education and innovation, research, that are going to be important for our long-term competitiveness.
That’s what I hope to be able to announce tomorrow. There’s no certainty yet, but I expect an answer sometime early in the day.
All right. Thank you very much, everybody.
SEPTEMBER IS NATIONAL PROSTATE CANCER AWARENESS MONTH
NATIONAL PROSTATE CANCER AWARENESS MONTH, 2010- – - – - – -
BY THE PRESIDENT OF THE UNITED STATES OF AMERICAA PROCLAMATION
Although its mortality rate has steadily fallen in the last decade, prostate cancer is still the second leading cause of cancer deaths among men in the United States. This year alone, nearly 218,000 men will be diagnosed with prostate cancer, and more than 32,000 men will die from this disease. National Prostate Cancer Awareness Month gives us the opportunity to renew our commitment to fight this disease by finding better ways to prevent, detect, and treat it.
The exact causes of prostate cancer are not known, but awareness can help men make more informed choices about their health. Researchers have identified several factors that may increase a man’s risk of developing prostate cancer, including age, race, and family history. According to the National Cancer Institute, avoiding smoking, losing weight, maintaining a healthy diet, and exercising may all help prevent certain cancers. We must ensure that more men are informed about all aspects of this disease, including early detection and possible treatment. I encourage men to talk with their doctors about risk factors, prevention, and preventative screenings. And I invite all Americans to visit Cancer.gov for more information and resources about the symptoms, diagnosis, and treatment of prostate and other cancers.
Until we find a cure for this disease, my Administration will continue promoting awareness of this illness and supportingprostate cancer research and treatment, including research to help determine why prostate cancer affects some racial and ethnic groups more than others. The National Cancer Institute, the Centers for Disease Control and Prevention, and the Department of Defense all play vital roles in reducing the burden of prostate cancer through critical investments in research.
The health care reforms included in the landmark Affordable Care Act also address specific needs of individuals fighting cancer, including removing annual and lifetime caps on insurance coverage, prohibiting insurance companies from dropping coverage after an individual gets sick, and guaranteeing insurance coverage for individuals participating in clinical trials, the cornerstone of cancer research.
As we observe National Prostate Cancer Awareness Month, we stand by the fathers, brothers, husbands, and sons battling prostate cancer, as well as their families and the health care providers, researchers, and advocates who are working to combatthis disease and save lives. By joining together to raise awareness of prostate cancer and supporting research, we can continue to make progress against this devastating disease.
NOW, THEREFORE, I, BARACK OBAMA, President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States, do hereby proclaim September 2010 as Prostate Cancer Awareness Month. I encourage all citizens, Government agencies, private businesses, nonprofit organizations, and other groups to join in activities that will increase awareness and prevention of prostate cancer.
IN WITNESS WHEREOF, I have hereunto set my hand this thirty-first day of August, in the year of our Lord two thousand ten, and of the Independence of the United States of America the two hundred and thirty-fifth.
BARACK OBAMA
Statement by President Barack Obama on the Release of Nuclear Posture Review
Statement by President Barack Obama on the Release of Nuclear Posture Review
One year ago yesterday in Prague, I outlined a comprehensive agenda to prevent the spread of nuclear weapons and to pursue the peace and security of a world without them. I look forward to advancing this agenda in Prague this week when I sign the new START Treaty with President Medvedev, committing the United States and Russia to substantial reductions in our nuclear arsenals.
Today, my Administration is taking a significant step forward by fulfilling another pledge that I made in Prague—to reduce the role of nuclear weapons in our national security strategy and focus on reducing the nuclear dangers of the 21st century, while sustaining a safe, secure and effective nuclear deterrent for the United States and our allies and partners as long as nuclear weapons exist.
The Nuclear Posture Review, led by the Department of Defense, recognizes that the greatest threat to U.S. and global security is no longer a nuclear exchange between nations, but nuclear terrorism by violent extremists and nuclear proliferation to an increasing number of states. Moreover, it recognizes that our national security and that of our allies and partners can be increasingly defended by America’s unsurpassed conventional military capabilities and strong missile defenses.
As a result, we are taking specific and concrete steps to reduce the role of nuclear weapons while preserving our military superiority, deterring aggression and safeguarding the security of the American people.
First, and for the first time, preventing nuclear proliferation and nuclear terrorism is now at the top of America’s nuclear agenda, which affirms the central importance of the Nuclear Non-Proliferation Treaty. We have aligned our policies and proposed major funding increases for programs to prevent the spread of nuclear weapons around the world. Our nuclear security summit next week will be an opportunity for 47 nations to commit to specific steps to pursue the goal of securing all vulnerable nuclear materials around the world within four years. And next month in New York, we will work with the wider world to strengthen the global non-proliferation regime to ensure that all nations uphold their responsibilities.
Second, we are further emphasizing the importance of nations meeting their NPT and nuclear non-proliferation obligations through our declaratory policy. The United States is declaring that we will not use or threaten to use nuclear weapons against non-nuclear weapons states that are party to the Nuclear Non-Proliferation Treaty and in compliance with their nuclear nonproliferation obligations. This enables us to sustain our nuclear deterrent for the narrower range of contingencies in which these weapons may still play a role, while providing an additional incentive for nations to meet their NPT obligations. Those nations that fail to meet their obligations will therefore find themselves more isolated, and will recognize that the pursuit of nuclear weapons will not make them more secure.
Finally, we are fulfilling our responsibilities as a nuclear power committed to the NPT. The United States will not conduct nuclear testing and will seek ratification of the Comprehensive Test Ban Treaty. The United States will not develop new nuclear warheads or pursue new military missions or new capabilities for nuclear weapons.
As I stated last year in Prague, so long as nuclear weapons exist, we will maintain a safe, secure and effective arsenal that guarantees the defense of the United States, reassures allies and partners, and deters potential adversaries. To that end, we are seeking substantial investments to improve infrastructure, strengthen science and technology, and retain the human capital we need to sustain our stockpile, while also strengthening the conventional capabilities that are an important part of our deterrent. The nuclear strategy we’re announcing today therefore reaffirms America’s unwavering commitment to the security of our allies and partners, and advances American national security.
To stop the spread of nuclear weapons, prevent nuclear terrorism, and pursue the day when these weapons do not exist, we will work aggressively to advance every element of our comprehensive agenda—to reduce arsenals, to secure vulnerable nuclear materials, and to strengthen the NPT. These are the steps toward the more secure future that America seeks, and this is the work that we are advancing today.
APRIL IS NATIONAL FINANCIAL LITERACY MONTH, 2010
NATIONAL FINANCIAL LITERACY MONTH, 2010
- – - – - – -
BY THE PRESIDENT OF THE UNITED STATES OF AMERICA
A PROCLAMATION
In recent years, our Nation’s financial system has grown increasingly complex. This has left too many Americans behind, unable to build a secure financial future for themselves and their families. For many, financial literacy can mean economic prosperity and protection against fraud and predatory banking practices. During National Financial Literacy Month, we recommit to teaching ourselves and our children about the basics of financial education.
Our recent economic crisis was the result of both irresponsible actions on Wall Street, and everyday choices on Main Street. Large banks speculated recklessly without regard for the consequences, and other firms invented and sold complex financial products to conceal risks and escape scrutiny. At the same time, many Americans took out loans they could not afford or signed contracts without fully understanding the terms. Ensuring this crisis never happens again will require new rules to protect consumers and better information to empower them.
The new Consumer Financial Protection Agency I have proposed will ensure ordinary Americans get clear and concise financial information. We must put an end to confusing loan contracts, hidden fees attached to mortgages, and unfair penalties that appear without warning on bank statements. The Credit Card Accountability Responsibility and Disclosure Act of 2009 began reining in some of these deceptive tactics when it recently took effect. The President’s Advisory Council on Financial Capability is also looking for new ways to help
individuals make informed decisions and to educate our children on core financial competencies.
While our Government has a critical role to play in protecting consumers and promoting financial literacy, we are each responsible for understanding basic concepts: how to balance a checkbook, save for a child’s education, steer clear of deceptive financial products and practices, plan for retirement, and avoid accumulating excessive debts. To learn more, visit: MyMoney.gov or call toll-free 1-888-MyMoney for helpful guidance and resources.
Our Nation’s future prosperity depends on the financial security of all Americans. This month, let us each take time to improve our own financial knowledge and share that knowledge with our children. Together, we can prevent another crisis and rebuild our economy on a stronger, more balanced foundation.
NOW, THEREFORE, I, BARACK OBAMA, President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States, do hereby proclaim April 2010 as National Financial Literacy Month. I call upon all Americans to observe this month with programs and activities to improve their understanding of financial principles and practices.
IN WITNESS WHEREOF, I have hereunto set my hand this
second day of April, in the year of our Lord two thousand ten, and of the Independence of the United States of America the two hundred and thirty-fourth.
BARACK OBAMA
White House to Host Childhood Obesity Meeting
White House to Host Childhood Obesity Meeting
WASHINGTON, D.C. — On Friday, April 9, the White House will host a meeting on childhood obesity to discuss ways to combat the growing health epidemic. Experts and practitioners from across the country will join First Lady Michelle Obama, Administration officials and Childhood Obesity Task Force members to discuss challenges, trends, empowering parents, access to healthy, affordable food, and more.
In February, Mrs. Obama launched the Let’s Move! campaign to solve the childhood obesity epidemic within a generation. As part of this effort, and President Barack Obama established the Task Force on Childhood Obesity to develop and submit an interagency plan that details a coordinated strategy, identifies key benchmarks, and outlines an action plan to fight childhood obesity. This meeting is part of a broader effort by the Task Force to gather input for this action plan.
Participants and coverage details will be announced next week.
HOUSING PROGRAM ENHANCEMENTS OFFER ADDITIONAL OPTIONS FOR STRUGGLING HOMEOWNERS
U.S. Treasury Department
Office of Public Affairs
FOR IMMEDIATE RELEASE: March 26, 2010
Contacts: Treasury Public Affairs, (202) 622-2960
HUD Public Affairs, (202) 708-0980
HOUSING PROGRAM ENHANCEMENTS OFFER ADDITIONAL
OPTIONS FOR STRUGGLING HOMEOWNERS
Refinements to Existing Administration Programs Designed to Help Unemployed,
Underwater Borrowers While Helping Administration Meet its Goals
WASHINGTON – Today, as part of its ongoing commitment to continuously improve housing relief efforts, the Administration announced adjustments to the Home Affordable Modification Program (HAMP) and to the Federal Housing Administration (FHA) programs. These program adjustments will better assist responsible homeowners who have been affected by the economic crisis through no fault of their own. The program modifications will expand flexibility for mortgage servicers and originators to assist more unemployed homeowners and to help more people who owe more on their mortgage than their home is worth because their local markets saw large declines in home values. These changes will help the Administration meet its goal of stabilizing housing markets by offering a second chance to up to 3 to 4 million struggling homeowners through the end of 2012. Costs will be shared between the private sector and the Federal Government; the Federal cost of these changes will be funded through the $50 billion allocation for housing programs under the Troubled Asset Relief Program (TARP).
Housing Policy Overview
The Administration’s goal is to promote stability for both the housing market and homeowners. To meet these objectives, the Administration has developed a comprehensive approach using state and local housing agency initiatives, tax credits for homebuyers, neighborhood stabilization and community development programs, mortgage modifications and refinancing, and support for Fannie Mae and Freddie Mac. The Administration’s efforts for homeowners have focused on giving responsible households an opportunity to remain in their homes when possible while they get back up on their feet, or to relocate to a more sustainable living situation. Today, mortgage rates are at record lows and, thanks in large part to these programs, more than four million homeowners have refinanced their mortgages to more affordable levels helping to save more than $7 billion annually, more than one million are saving an average of over $500 per month through the Administration’s modification program, home equity increased by more than $12,000 for the average homeowner in the last three quarters last year and the economy is growing.
Even with this success, we continue to see challenges. Servicers were slow to implement HAMP, resulting in a slow start for the program. Recent improvements in the program have accelerated the pace of modifications, and the adjustments announced today will improve performance. But our strategy to address the crisis must evolve because our challenges have also evolved.
Our housing initiatives must balance the need to help responsible homeowners struggling to stay in their homes, with the recognition that we cannot and should not help everyone. The President has said: “We can’t stop every foreclosure.” And in fact, we can’t maintain the balance described above if we assist every borrower. For example, investors and speculators should not be protected under our efforts, nor should Americans living in million dollar homes or defaulters on vacation homes. Some people simply will not be able to afford to stay in their homes because they bought more than they could afford. Instead, the Administration must focus on providing responsible homeowners opportunities to obtain a modification or to refinance and prevent avoidable foreclosures and, when necessary, must facilitate the transition to a more sustainable housing situation. The adjustments announced today are tailored to accomplish these goals by helping a targeted group of borrowers.
Eligible homeowners for modifications under HAMP must, for example: live in an owner occupied principal residence, have a mortgage balance less than $729,750, owe monthly mortgage payments that are not affordable (greater than 31 percent of their income) and demonstrate a financial hardship. The new flexibilities for the modification initiative announced today continue to target this group of homeowners.
The FHA refinance options being announced today will provide more opportunities for lenders to restructure loans for some families who owe more than their home is worth. This is a voluntary program for lenders and homeowners. The population eligible for a FHA refinance must be current on their mortgage. This rewards responsible homeowners and creates stabilizing incentives in the housing market.
Taken together, the Administration’s broad housing initiatives and the new flexibilities announced today will offer a second chance to millions of responsible, middle-class American families struggling to stay in their homes and will help to stabilize our households, neighborhoods and communities.
Background on Housing Program Initiatives to Date
The Administration has taken a broad set of actions to stabilize the housing market and help American homeowners. These efforts are having an impact on our housing markets – we are seeing signs of stabilization. Looking back to over a year ago – stress in the financial system had severely reduced the supply of mortgage credit, limiting the ability of Americans to buy homes or refinance mortgages. Millions of responsible families who had made their monthly payments had fulfilled their obligations saw their property values fall, and found themselves unable to refinance at lower mortgage rates.
In February 2009, less than one month after taking office, President Obama announced the Homeowner Affordability and Stability Plan. As part of this plan and through other housing initiatives, the Administration has taken the following actions to strengthen the housing market:
Actions Supporting Market Stability and Access to Affordable Mortgage Credit · Provided strong support to Fannie Mae and Freddie Mac to ensure continued access to affordable mortgage credit across the market; · Together, Treasury and the Federal Reserve have purchased more than $1.4 trillion in agency mortgage backed securities, which have helped keep mortgage rates at historic lows, allowing homeowners to access credit to purchase new homes and refinance into more affordable monthly payments; and
· The FHA has played an important counter-cyclical role, providing liquidity for housing purchases at a time when private lending has declined.
Actions Helping Homeowners Purchase Homes, Refinance and Modify Mortgages to More Affordable Payments, Prevent Foreclosures and Stabilize Communities · Launched a modification initiative to help homeowners reduce mortgage payments to affordable levels and to prevent avoidable foreclosures; · Supported expanding the limits for loans guaranteed by Fannie Mae, Freddie Mac, and FHA from previous limits up to $625,500 per loan to $729,750;
· Expanded refinancing flexibilities for the Fannie Mae and Freddie Mac loans, particularly for borrowers with negative equity, to allow more Americans to refinance;
· Launched a $23.5 billion Housing Finance Agencies Initiative which is helping more than 90 state and local housing finance agencies across 49 states provide sustainable homeownership and rental resources for American families;
· Supported the First Time Homebuyer Tax Credit, which has helped hundreds of thousands of responsible Americans purchase homes. · Through the Recovery Act is providing over $5 billion in support for affordable rental housing through low income housing tax credit programs and $2 billion in support for the Neighborhood Stabilization Program to restore neighborhoods hardest hit by concentrated foreclosures; and · On February 19, 2010, the Administration announced the $1.5 billion HFA Hardest Hit Fund for housing finance agencies in the nation’s hardest hit housing markets to design innovative, locally targeted foreclosure prevention programs.
Historically low mortgage rates along with expanded refinancing flexibilities for Fannie Mae and Freddie Mac loans have helped more than four million American homeowners with Fannie Mae and Freddie Mac loans to refinance, saving an estimated $150 per month on average and more than $7 billion in total. HAMP has provided more than 1 million struggling homeowners a second chance to stay in their homes – with each homeowner in a modification saving more than $500 per month on average.
Together, these initiatives are having an impact – strengthening the housing market, helping responsible homeowners prevent avoidable foreclosures and rebuilding communities and neighborhoods. Today mortgage rates remain at historic lows – the primary interest rate is now about 5 percent, lower than at any time in the three decades before the crisis. We are also seeing encouraging signs in housing indicators – home prices and the pace of home sales have stabilized in recent months.
WEEKLY ADDRESS: President Obama to Send Updated Elementary and Secondary Education Act Blueprint To Congress on Monday
WEEKLY ADDRESS: President Obama to Send Updated Elementary and Secondary Education Act Blueprint To Congress on Monday
WASHINGTON – In his weekly address, President Barack Obama announced that on Monday, his administration will send to Congress the blueprint for an updated Elementary and Secondary Education Act that will overhaul No Child Left Behind. The plan will set the ambitious goal of ensuring that all students graduate from high school prepared for college and a career, and it will provide states, districts and schools with the flexibility and resources to reach that goal.
The audio and video will be available online at www.whitehouse.gov at 6:00 am ET, Saturday, March 13, 2010.
Remarks of President Barack Obama
As Prepared for Delivery
Weekly Address
March 13, 2010
Lost in the news of the week was a headline that ought to be a source of concern for every American. It said, “Many Nations Passing U.S. in Education.” Now, debates in Washington tend to be consumed with the politics of the moment: who’s up in the daily polls; whose party stands to gain in November. But what matters to you – what matters to our country – is not what happens in the next election, but what we do to lift up the next generation. And the fact is, there are few issues that speak more directly to our long term success as a nation than issues concerning the education we provide to our children.
Our prosperity in the 20th century was fueled by an education system that helped grow the middle class and unleash the talents of our people more fully and widely than at any time in our history. We built schools and focused on the teaching of math and science. We helped a generation of veterans go to college through the GI Bill. We led the globe in producing college graduates, and in turn we led in producing ground-breaking technologies and scientific discoveries that lifted living standards and set us apart as the world’s engine of innovation.
Of course, other nations recognize this, and are looking to gain an edge in the global marketplace by investing in better schools, supporting teachers, and committing to clear standards that will produce graduates with more skills. Our competitors understand that the nation that out-educates us today will out-compete us tomorrow. Yet, too often we have failed to make inroads in reforming and strengthening our public education system – the debate mired in worn arguments hurled across entrenched divides.
As a result, over the last few decades, we’ve lost ground. One assessment shows American fifteen year olds no longer even near the top in math and science when compared to their peers around the world. As referenced in the news report I mentioned, we’ve now fallen behind most wealthy countries in our high school graduation rates. And while we once led the world in the proportion of college graduates we produced, today we no longer do.
Not only does that risk our leadership as a nation, it consigns millions of Americans to a lesser future. For we know that the level of education a person attains is increasingly a prerequisite for success and a predictor of the income that person will earn throughout his or her life. Beyond the economic statistics is a less tangible but no less painful reality: unless we take action – unless we step up – there are countless children who will never realize their full talent and potential.
I don’t accept that future for them. And I don’t accept that future for the United States of America. That’s why we’re engaged in a historic effort to redeem and improve our public schools: to raise the expectations for our students and for ourselves, to recognize and reward excellence, to improve performance in troubled schools, and to give our kids and our country the best chance to succeed in a changing world.
Under the leadership of an outstanding Education Secretary, Arne Duncan, we launched a Race to the Top, through which states compete for funding by committing to reform and raising standards, by rewarding good teaching, by supporting the development of better assessments to measure results, and by emphasizing math and science to help prepare children for college and careers.
And on Monday, my administration will send to Congress our blueprint for an updated Elementary and Secondary Education Act to overhaul No Child Left Behind. What this plan recognizes is that while the federal government can play a leading role in encouraging the reforms and high standards we need, the impetus for that change will come from states, and from local schools and school districts. So, yes, we set a high bar – but we also provide educators the flexibility to reach it.
Under these guidelines, schools that achieve excellence or show real progress will be rewarded, and local districts will be encouraged to commit to change in schools that are clearly letting their students down. For the majority of schools that fall in between – schools that do well but could do better – we will encourage continuous improvement to help keep our young people on track for a bright future: prepared for the jobs of the 21st century. And because the most important factor in a child’s success is the person standing at the front of the classroom, we will better prepare teachers, support teachers, and encourage teachers to stay in the field. In short, we’ll treat the people who educate our sons and daughters like the professionals they are.
Through this plan we are setting an ambitious goal: all students should graduate from high school prepared for college and a career – no matter who you are or where you come from. Achieving this goal will be difficult. It will take time. And it will require the skills, talents, and dedication of many: principals, teachers, parents, students. But this effort is essential for our children and for our country. And while there will always be those cynics who claim it can’t be done, at our best, we know that America has always risen to the challenges that we’ve faced. This challenge is no different.
As a nation, we are engaged in many important endeavors: improving the economy, reforming the health care system, encouraging innovation in energy and other growth industries of the 21st century. But our success in these efforts – and our success in the future as a people – will ultimately depend on what happens long before an entrepreneur opens his doors, or a nurse walks the rounds, or a scientist steps into her laboratory. Our future is determined each and every day, when our children enter the classroom, ready to learn and brimming with promise.
It’s that promise we must help them fulfill. Thank you.
Remarks of President Barack Obama – As Prepared for Delivery
Remarks of President Barack Obama – As Prepared for Delivery
National Export Initiative
Washington, DC
March 11, 2010
Thank you, John, for that generous introduction, and congratulations to you, Fabienne and Luis for the recognition your companies deserve. Thank you to the Chairman of the Export-Import Bank, Fred Hochberg, for having me here; and for all the important work the Ex-Im Bank is doing to help American businesses sell their ideas to the world. I also want to recognize the Secretary General of the OECD, Angel Gurría, for his leadership at that institution.
Let me also acknowledge some members of my economic team who are here today – my Commerce Secretary, Gary Locke, who’s just returned from a trip to Brazil; and our United States Trade Representative, Ambassador Ron Kirk. And I want to thank them for doing a great job in the work of moving this country forward in tough times.
That’s been our most pressing priority over the first year of my administration. Guiding the American economy through its most serious crisis since the Great Depression. To do that required difficult, sometimes unpopular steps to rescue our financial system and jumpstart an economic recovery. But we took those steps. And because we did, we can stand here just over a year later, and say that we prevented another depression, we broke the back of the recession, and the economy that was shrinking a year ago is growing today.
What’s also clear is that we have a long way to go. More than eight million Americans have lost their jobs since the start of the recession. Millions more remain underemployed; including those doing part-time work or odd jobs. And middle-class families across this country have felt their economic security eroding for longer than they care to remember. That’s why we continue to do everything we can to foster private sector job creation and to restore some of that security.
But the fact is, if we want to once again approach full employment; if we want to create broad, shared, and lasting wealth for our workers and our families; if we want an America that is ready to compete on the global playing field of the 21st century – then we cannot slide back into an economy where we borrow too much and put off tough challenges. We cannot return to an economy where too much of our prosperity is based on fleeting bubbles and rampant speculation. We have to rebuild our economy on a new, stronger, more balanced foundation for the future – a foundation that will advance the American people’s prosperity at home, and support American leadership in the world.
That is precisely what we’ve begun to do. We’re catalyzing a new clean energy industry that has the potential to employ millions of workers in good jobs. We’re investing in the skills and education of our workers; and reforming our education system with a goal to once again lead the world in the proportion of college graduates by the end of this decade. We’re building a better health care system that works for our people, our businesses, and our government alike. We’re establishing clear, commonsense rules of the road for Wall Street that encourage innovation and creativity over recklessness or irresponsibility; rules that prevent firms from taking risks that threaten the entire economy.
And we are rebuilding an economy where we generate more American jobs in more American industries by producing and exporting more goods and services to other nations. In my State of the Union Address, I set a goal of doubling America’s exports over the next five years – an increase that will support two million American jobs. And I’ve come to the Export-Import Bank Conference today to discuss the initial steps we’re taking to achieve that goal.
Now, I know the issue of exports and imports; the issue of trade and globalization; have long evoked the passions of a lot of people in this country. I know there are differences of opinion between Democrats and Republicans; business and labor; about the right approach.
But I also know we’re at a moment where necessity has tempered the old debates. Those who would once support every trade agreement now see that other countries have to play fair and agreements have to be enforced. Those who once would once oppose any trade agreement now understand that there are new markets and new sectors out there we need to break into if we want our workers to get ahead.
Meanwhile, if you ask the average American what trade has offered them, they won’t say that their televisions are cheaper, or productivity is higher. They’d say they’ve seen the plant across town shut down, jobs dry up, and communities deteriorate. And you can’t blame them for feeling that way. Other countries haven’t always played by the same set of rules. America hasn’t always enforced our trade rights, or made sure that the benefits of trade are broadly shared. And we haven’t always done enough to help our workers adapt to a changing world.
There’s no question that as we compete in that global marketplace, we’ve got to look out for our workers. But to look out for our workers, we’ve got to compete in the global marketplace. Because it’s never been as important an opportunity for America.
In a time when millions of Americans are out of work, boosting our exports is a short-term imperative. Our exports support millions of American jobs. In 2008, we exported more than one trillion dollars of manufactured goods, supporting more than one in five manufacturing jobs – jobs that pay about 15 percent more than average. We led the world in services exports, which supported 2.8 million jobs. We exported nearly $100 billion in agricultural goods. And every $1 billion increase in exports supports more than 6,000 additional jobs.
It’s also critical for our long-term prosperity. Ninety-five percent of the world’s customers and the world’s fastest-growing markets are outside our borders. We need to compete for those customers. Because other nations are.
They’re investing in the skills and education of their people. They’re investing in the high-demand industries of the future. They’ve benefited from American consumers, made themselves into export-based economies, and positioned themselves for those jobs. They’re pursuing trade agreements with growing markets – agreements that would give their companies access to those markets and put our workers and businesses at a disadvantage.
If we stand on the sidelines while they go after those customers, we’ll lose out on the chance to create the good jobs our workers need right here in America. But standing on the sidelines is not what we do. We still have the most innovative economy in the world. We have the most productive workers in the world. We have the finest universities in the world. We have the most dynamic and competitive markets in the world.
And we remain the number one exporter of goods and services in the world. But we shouldn’t be satisfied with being number one. We shouldn’t assume our leadership is guaranteed. When other markets are growing, and other nations are competing, we need to get even better. We need to secure our companies a level playing field. We need to guarantee American workers a fair shake. We need to up our game.
That’s why, for the first time, the United States of America is launching a single, comprehensive strategy to promote American exports. It’s called the National Export Initiative; and it’s an ambitious effort to marshal the full resources of the United States government behind American businesses that sell their goods and services abroad.
This morning, I signed an Executive Order instructing the federal government to use every available federal resource in support of that mission. That order has created an Export Promotion Cabinet, made up of the Secretaries of State, Treasury, Agriculture, Commerce and Labor, along with our U.S. Trade Representative, Small Business Administrator, the Export-Import Bank President, and other senior U.S. officials whose work impacts exports. That cabinet will convene its first meeting next month. I’ve also re-launched the President’s Export Council; the principal national advisory committee on international trade. I’ve named Jim McNerney, the President and CEO of Boeing, as its chair; and Ursula Burns, the CEO of Xerox, as vice chair; and I look forward to their recommendations.
Let me talk a bit about what the National Export Initiative will do. First, we’ll substantially increase access to trade financing for businesses that want to export their goods but just need a boost – especially small businesses and medium-sized businesses.
Some of the biggest factors limiting a firm’s decision to export are the high upfront cost of establishing a foothold in a new market, and the ability of the customers in that market to finance the purchase of their products.
During the financial crisis, as trade finance dried up, the Ex-Im Bank lived up to its mission, stepping in to fill the void. In fiscal year 2009, as part of a broader effort of G20 nations to mobilize trade finance worldwide, this institution authorized $21 billion in loans in support of American exports – an increase of nearly 50 percent over the previous year. I applaud Fred Hochberg’s efforts to increase that pace with the authorization of about $10 billion more in the first quarter of this year alone. And under the National Export Initiative, we’ll continue to increase the amount of trade financing Ex-Im offers, including a new $2 billion per year effort to increase support for our small and medium-sized businesses.
Another obstacle our exporters face is that the federal government just hasn’t done a good enough job advocating for them abroad. That’s why, as the second part of the National Export Initiative, the United States of America will go to bat for our businesses and our workers.
As an example, last week, I signed the Travel Promotion Act; a law that will establish active promotion and marketing efforts to encourage foreign citizens to come visit the most dynamic cities, the most entertaining destinations, and the most beautiful natural resources in the world. Well, the same principle applies for our businesses. We’ve got some of the most innovative companies in the world – and we should be advocating on their behalf to boost local economies and create jobs here.
This is an effort that I will personally lead as President. Next week, I will take my second trip to the Asia Pacific – a region that will be fundamental to America’s ability to create jobs and to thrive in the 21st century. We cannot be on the sidelines – we have to lead, and our engagement must extend to governments, business, and peoples across the Pacific. While I’m there, I plan on visiting Indonesia and Australia, two vibrant economies and democracies that will be critical partners for the United States. In both countries, I will highlight the role that American business plays there, and underscore how strong economic partnerships can create jobs on both sides of the Pacific while advancing regional – and global – prosperity. And going forward, I will be a strong and steady advocate for our workers and companies abroad.
This effort will extend throughout my Administration. Secretary Locke is issuing guidance to all senior government officials who have foreign counterparts on how they can best promote our exporters. Secretary Clinton is mobilizing a commercial diplomacy strategy, directing every one of our embassies to create a Senior Visitor Business Liaison who will manage our export advocacy efforts locally, and when our ambassadors return stateside, we’ll ask them to travel the United States to discuss export opportunities in their countries of assignment. We’re also announcing more than 40 trade and reverse trade missions are scheduled for this year. The Department of Commerce, for example, has sent a trade mission to India this week; and Secretary Vilsack is off to Japan on April 15th.
Third, we’ll unleash a battery of comprehensive and coordinated efforts to promote new markets and new opportunities for American exporters.
Many businesses want to export their products, but just don’t have the resources required to identify new markets or to set up shop overseas. That’s where we can help. We’ll bring together the Ex-Im Bank, the SBA, the Departments of Commerce and Agriculture, and the Trade Development Agency to set up one-stop-shops across the country and in our 250 embassies and consulates abroad, to help American businesses gain a foothold in the fastest-growing markets with the most demand. And we’ll provide a comprehensive toolkit of services – from financing to counseling to promotion – to help potential exporters grow and expand.
We’ll create public-private partnerships to help firms break into new markets with the help of those who have been there – shipping and supply-chain companies, for example.
And we’ll increase funding for existing promotion efforts. We’ll increase funding for the International Trade Administration at the Department of Commerce, and strengthen the USDA’s ability to connect farmers with new customers overseas.
So we’re increasing financing, advocacy, and assistance for American businesses to locate, set up shop, and win in new markets. Those are the first three aims of the National Export Initiative.
The fourth focuses on making sure American companies have free and fair access to those markets. And that begins by enforcing trade agreements we already have on the books.
When I ran for President, I promised that when the United States of America puts its name to an agreement, that agreement will be as good for workers as it is for businesses, and include strong labor and environmental protections that we’ll enforce. My administration is living up to that promise. Ambassador Kirk has been doing a fantastic job as our United States Trade Representative, working to knock down barriers that unfairly keep American companies from markets we belong in, hold our trade partners to their labor and environmental obligations, and crack down on practices that blatantly harm our companies.
The United States offers some of the world’s lowest barriers to trade. That’s why we can often get more out of a trade deal – our borders are largely open. And when we give other countries the privilege of that free and fair access, we can expect it in return. That’s the spirit in which we’ll move forward. We’ll continue to work towards an ambitious and balanced Doha agreement – not just for the sake of any agreement, but for one that enhances market access for American agriculture, goods, and services. We’ll strengthen relations with key partners like South Korea, Panama, and Colombia, with the goal of moving forward with existing agreements in a way that upholds our values. And we will pursue negotiations in the Trans-Pacific Partnership we launched last year with some of the most dynamic economies in Asia – negotiations that I believe will result in a new standard for 21st century trade agreements that aren’t just good for workers, businesses, and farmers; but consistent with our most cherished values.
What’s more, we’ll aggressively protect our intellectual property. Our single greatest asset is the innovation, ingenuity, and creativity of the American people. It’s essential to our prosperity. But it’s only a competitive advantage if our companies know that someone else can’t just steal that idea and duplicate it with cheaper inputs and labor. There’s nothing wrong with other people using our technologies – we just want to make sure that it’s licensed, and that American businesses are getting paid appropriately. And that’s why USTR is using the full arsenal of tools available to crack down on practices that blatantly harm our businesses, including negotiating proper protection, enforcing our existing agreements, and moving forward on new agreements, including a proposed Anti-Counterfeiting Trade Agreement.
We’ll also work within the G20 to continue global recovery and growth. Last year, when the G20 met to coordinate the international response to our global economic crisis, we agreed that in order for that growth to continue, we needed to rebalance our economies. For too long, America served as the consumer engine for the entire world. But we are rebalancing. We’re saving more. We all need to rebalance. Countries with external deficits need to save and export more. Countries with external surpluses need to boost consumption and domestic demand. And as I’ve said before, China moving to a more market-oriented exchange rate would make an essential contribution to that global rebalancing effort. I want to commend Secretary Geithner for his extraordinary work and tremendous leadership throughout his work with the G20, and I know he’ll keep working to encourage a rebalancing of global demand – efforts that will be good for our exports and for our job growth.
Finally, we’re working to reform our Export Control System for our strategic, high-tech industries, which will strengthen our national security. We’ll concentrate our efforts on enforcing controls on the export of our most critical technologies, making America safer while enhancing the competitiveness of key American industries. We’ve conducted a broad review of the Export Control System, and Secretary Gates will outline our reform proposal within the next couple weeks. But today, I’d like to announce two steps that we’re prepared to take.
First, we’ll streamline the process certain companies need to go through to get their products to market – products with encryption capabilities like cell phone and network storage devices. Currently, they endure a technical review that can take between 30 to 60 days – putting that company at a distinct disadvantage to foreign competitors who don’t face those delays. A new one-time online process will shorten that review time from 30 days to 30 minutes, making it quicker and easier for our businesses to compete while meeting our national security requirements.
Second, we will eliminate unnecessary obstacles for exporting products to companies with dual-national and third-country-national employees. Currently, our exporters and foreign consumers of these goods have to comply with two different, conflicting sets of standards. They’re running on two tracks, when they could be running on one. So we’re moving toward harmonizing those standards, making it easier for American and foreign companies to comply with our requirements without diminishing our security. I look forward to consulting with Congress on these reforms, as well as our broader export control reform effort.
So that’s how we’ll help double our exports, open up new markets, and level the playing field for American workers and businesses. And I have every confidence that we can and will succeed in this endeavor.
This is a difficult time for our country. And in times like these, questions have always arisen about whether or not America’s best days are behind us. There have always been naysayers and skeptics. There have always been those who waxed fatalistic, fearing that we lacked the capacity to succeed – at times even to survive – in a changing world.
But what makes America great – what makes America the envy of our competitors; what makes this a place where people come not just to invest but to start lives and businesses and families – is something that has been inexorable and enduring, especially in times of great challenge and great change. It’s that spirit of adventurousness and entrepreneurship that has for generations turned wild-eyed tinkerers into world-changing entrepreneurs; that led us to look westward and then skyward; that led to roads and railways cutting through wilderness; and ships and planes and fiber optic lines carrying American goods and services around the world. It’s the spirit that has advanced America’s leadership in the world and held aloft the American Dream for generations. And it is, ultimately, this spirit that has given us the tools and the toughness to overcome every obstacle and adapt to every circumstance – especially today.
It hasn’t always been easy. And our success is my by no means guaranteed. But if we summon a sense of national purpose equal to the seriousness of these times; if we combine our creativity, our innovation, and our eternal optimism; if we come together in common cause as we have so many times before – then we will succeed. We will define our destiny once again. And we will make this century another American century. Thank you.
The Washington Review & Commentary
Recent Comments