Administration of Barack Obama, 2009 / Feb. 6

Remarks on the Establishment of the President’s Economic Recovery Advisory Board February 6, 2009

The President. Thank you. Please have a seat. a young parent has lost their livelihood, and Good morning, everybody. they don’t know what’s going to take its place. Audience members. Good morning. These Americans are counting on us, all of us The President. I have just had the opportuni- in Washington. We have to remember that ty to welcome the members of my Economic we’re here to work for them. And if we drag our Recovery Advisory Board. And I’m grateful that feet and fail to act, this crisis could turn into a I will have the counsel of these extraordinarily catastrophe. We’ll continue to get devastating talented and experienced men and women in job reports like today’s, month after month, the challenging months to come. year after year. It’s very important to under- If there’s anyone, anywhere, who doubts the stand that, although we had a terrible year with need for wise counsel and bold and immediate respect to jobs last year, the problem is acceler- action, just consider the very troubling news we ating not decelerating. It’s getting worse not received just this morning. Last month, another getting better. Almost half of the jobs that were 600,000 Americans lost their jobs. That is the lost have been lost just in the last couple of single worst month of job loss in 35 years. The months. Department of Labor also adjusted their job These aren’t my assessments; these are the loss numbers for 2008 upwards and now report assessments of independent economists. If we that we’ve lost 3.6 million jobs since this reces- don’t do anything, millions more jobs will be sion began. lost. More families will lose their homes. More Americans will go without health care. We’ll That’s 3.6 million Americans who wake up continue to send our children to crumbling every day wondering how they are going to pay schools and be crippled by our dependence on their bills, stay in their homes, and provide for foreign oil. That’s the result of inaction. And it’s their children. That’s 3.6 million Americans not acceptable to the American people. who need our help. They did not choose more of the same in No- I’m sure that at the other end of Pennsylva- vember. They did not send us to Washington to nia Avenue, Members of the Senate are reading get stuck in partisan posturing, to try to score these same numbers this morning. And I hope political points. They did not send us here to they share my sense of urgency and draw the turn back to the same tried-and-failed ap- same, unmistakable conclusion: The situation proaches that were rejected, because we saw could not be more serious. These numbers de- the results. They sent us here to make change, mand action. It is inexcusable and irresponsible with the expectation that we would act. for any of us to get bogged down in distraction, Now, I have repeatedly acknowledged that, delay, or politics as usual, while millions of given the magnitude and the difficulties of the Americans are being put out of work. problem we’re facing, there are no silver bul- Now is the time for Congress to act. It’s time lets, and there are no easy answers. The bill to pass an economic recovery and reinvestment that’s emerged from Congress is not perfect, plan to get our economy moving. but a bill is absolutely necessary. We can con- This is not some abstract debate. It is an ur- tinue to improve and refine both the House and gent and growing crisis that can only be fully Senate versions of these bills. There may be understood through the unseen stories that lie provisions in there that need to be left out; underneath each and every one of those there may be some provisions that need to be 600,000 jobs that were lost this month. Some- added. But broadly speaking, the package is the where in America, a small business has shut its right size, it is the right scope, and it has the doors; somewhere in America, a family has said right priorities to create 3 to 4 million jobs and goodbye to their home; somewhere in America, to do it in a way that lays the groundwork for

53 Feb. 6 / Administration of Barack Obama, 2009 long-term growth, by fixing our schools, mod- twists and turns. Probably, prior to this one, ernizing our health care to lower costs, repair the worst economic crisis we had back in the our roads and bridges and levees and other vi- early eighties, it was Paul Volcker who helped tal infrastructure, move us towards energy in- restore confidence and pull us out of that ex- dependence. That is what America needs. It traordinarily difficult time. will take months, even years, to renew our So I’m glad that Paul has decided to contin- economy, but every day that Washington fails ue his public service at this critical moment. to act, that recovery is delayed. Assisting Paul and the rest of the board will be Now, we also know that no single act can Austan Goolsbee, who’s been one of my clos- meet the challenges of this moment. This pro- est economic advisers, one of the finest young cess is just the beginning of a long journey economists that we have in the country. And back to progress and growth and prosperity. he’s going to ensure that we are making the Given the scope of this crisis, we’ll need all best possible use of this unique resource. hands on deck to figure out how we are going I’m not interested in groupthink, which is to move forward. And I’m pleased to have an why the board reflects a broad cross-section of extraordinary team of folks in my administra- experience and expertise and ideology. We’ve tion: Tim Geithner at Treasury, Larry Sum- recruited Republicans and Democrats, people mers, Christina Romer, Peter Orszag. They’re who come out of the Government as well as all here in the White House. I also want to be the private sector. Not everyone is going to sure that we’re tapping a broad and diverse agree with each other, and not all of them are range of opinion from across the country, be- going to agree with me. And that’s precisely cause a historic crisis demands a historic re- the point, because we want to ensure that our sponse. And that’s why we took the unique policies have the benefit of independent step of creating the new institution whose members have gathered here today. thought and vigorous debate. Put simply, I created this board to enlist And we’re also going to count on these men voices to come from beyond the Washington and women to serve as additional eyes and echo chamber, to ensure that no stone is un- ears for me as we work to reverse this down- turned as we work to put people back to work turn. Many of them have ground-level views of and get our economy moving. the changes that are taking place, as they work Within this group, you’ve got leaders of across different sectors of the economy and manufacturing and leaders of finance. You’ve different regions of the country, and they can got labor, and you’ve got management. You’ve help us see the trends that are not fully got people who work in small businesses and formed, the trouble that may be on the hori- people who work in large businesses. You’ve zon, and the opportunities that have yet to be got some economists and some folks who think seized. I look forward to relying on their input they’re economists. [Laughter] By the way, and recommendations on specific questions as these days everybody thinks they’re an econo- we jump-start job creation and pursue strong mist. [Laughter] We will meet regularly so and stable economic growth. that I can hear different ideas and sharpen my This new institution should send a signal of own and seek counsel that is candid and in- how seriously I take the responsibility of build- formed by the wider world. ing an economic recovery that is broad and en- The board is headed by Paul Volcker—not during. These are extraordinary times. And for only because he’s the tallest among far too many Americans, the future is filled us—[laughter]—but because, by any measure, with unanswered questions: Can I get a job? he is one of the world’s foremost experts on Will my family be able to stay in their home? the economy, one of the most experienced and Will I be able to retire with dignity and see my insightful economic minds that we have. He’s children lead a better life? And these are the advised me for many months. He has helped questions that we will answer affirmatively steer the American economy through many during the course of this administration.

54 Administration of Barack Obama, 2009 / Feb. 7

We are going to create the jobs that our peo- tor, National Economic Council; Christina D. ple need and the future that this great Nation Romer, Chair, Council of Economic Advisers; deserves. Those are the challenges that I’ve put Peter R. Orszag, Director, Office of Manage- before my economic team, and these distin- ment and Budget; and Austan Goolsbee, staff guished advisers will be tackling those same is- director and chief economist, President’s Eco- sues in the months and years to come. nomic Recovery Advisory Board. The transcript So I’m grateful to them. And before I offi- released by the Office of the Press Secretary al- cially sign this Executive order, I would like so included the remarks by Paul A. Volcker, Paul just to say a quick word. Chairman, President’s Economic Recovery Ad- NOTE: The President spoke at 11:58 a.m. in the visory Board. The Executive order establishing East Room at the White House. In his remarks, the President’s Economic Recovery Advisory he referred to Secretary of the Treasury Timo- Board is listed in Appendix D at the end of this thy F. Geithner; Lawrence H. Summers, Direc- volume.

The President’s Weekly Address February 7, 2009

Yesterday began with some devastating news doubled the national debt, threw our economy with regard to our economic crisis. But I’m into a tailspin, and led us into this mess in the pleased to say it ended on a more positive note. first place. We can’t rely on a losing formula In the morning, we received yet another that offers only tax cuts as the answer to all our round of alarming employment figures, the problems while ignoring our fundamental eco- worst in more than 30 years. Another 600,000 nomic challenges: the crushing cost of health jobs were lost in January. We’ve now lost more care or the inadequate state of so many schools; than 3.6 million jobs since this recession began. our addiction to foreign oil or our crumbling But by the evening, Democrats and Republi- roads, bridges, and levees. cans came together in the Senate and respond- The American people know that our chal- ed appropriately to the urgency this moment lenges are great. They don’t expect Democratic demands. solutions or Republican solutions; they expect In the midst of our greatest economic crisis American solutions. since the Great Depression, the American peo- From the beginning, this recovery plan has ple were hoping that Congress would begin to had at its core a simple idea: Let’s put Ameri- confront the great challenges we face. That was, cans to work doing the work America needs after all, what last November’s election was all done. It will save or create more than 3 million about. jobs over the next 2 years, all across the coun- Legislation of such magnitude deserves the try—16,000 in Maine, nearly 80,000 in Indiana, scrutiny that it’s received over the last month, almost all of them in the private sector, and all and it will receive more in the days to come. of them jobs that help us recover today and But we can’t afford to make perfect the enemy prosper tomorrow. of the absolutely necessary. The scale and scope Jobs that upgrade classrooms and laborato- of this plan is right. And the time for action is ries in 10,000 schools nationwide—at least 485 now, because if we don’t move swiftly to put in Florida alone—and train an army of teachers this plan in motion, our economic crisis could in math and science. Jobs that modernize our become a national catastrophe. Millions of health care system, not only saving us billions of Americans will lose their jobs, their homes, and dollars, but countless lives. Jobs that construct a their health care. Millions more will have to put smart electric grid, connect every corner of the their dreams on hold. country to the information superhighway, dou- Let’s be clear: We can’t expect relief from ble our capacity to generate renewable energy, the tired old theories that, in eight short years, and grow the economy of tomorrow. Jobs that

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