tv Today in Washington CSPAN January 31, 2011 10:00am-12:00pm EST
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someone other than them as a victim and they are not a part of it. it is hilarious. host: all right, that is his view. before we go, what resources are available at the national center for victims of crime? guest: the stalking resource center as resources for professionals, service providers, and all professionals, as well as resources for victims looking for information about how to make themselves safer, options for legal recourse. i would recommend people to get our website. we have a number of resources for victims and for professionals. host: any movement on capitol hill to introduce new laws dealing with stalking? guest: on january 7, the stalkers act was introduced to keep everyone reliably safe. it would amend the federal statute to make it broader and to increase the penalties if the stalking happens in violation of
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a protective order. we see the federal law or an attempt to move it to more accurately reflect the realities of stalking. host: she's the director of the stalking resource center. thank you of. [captions copyright national cable satellite corp. 2011] host: we wanted to give to a joint news conference. we're expecting to hear from secretary tom vilsack, the agriculture secretary and hhs secretary new dietary guidelines for americans.
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phones off or put them on vibrate. turn your cell phones off and put them on vibrate, please. thank you. >> live pictures this morning from george washington university here in the nation's capital where agriculture secretary tom vilsack and health secretary kathleen sebelius will be announcing the latest dietary guidelines for americans. those guidelines are updated every five years and they aim to reduce the risk of chronic diseases and obesity by encouraging improved nutrition and physical activity. this is live coverage here on c-span. >> good morning. i amylin goldman, dean of the school of public health and health services here at the george washington university. it's my pleasure to welcome you this morning. i'm particularly proud our school is part of today's announcement. our dedicated research faculty work every day on issues related
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to food safety, obesity, policy, and epidemiology and public health students, many of whom are in attendance today, are studying how these issues affect the public's health. i also have to acknowledge and thank our wonderful staff as well as the staff at the usda and hhs for putting this event together this morning. we at g.w. share the commitment to promote health, wellness, and nutrition. our urban food task force is working to identify ways the university can support scholarship and instruction on sustainable urban food policies and provide practical information on healthy eating and food preparation to the greater g.w. community. i want to particularly acknowledge diane robinson napp wife of g.w. president. for her work and involvement in leading this effort. thank you very much. we are honored to have here today two of our country's leading health and nutrition
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advocates, secretary of health and human services kathleen sebelius, and secretary of agriculture, tom vilsack. as a state insurance commissioner, governor of kansas, and today as the country's highest ranking health official, secretary sebelius has been a leader on health care, family and senior issues for more than 20 years. secretary sebelius is guiding the implementation of the historic affordable care act. she also is at the forefront of the obama administration's efforts to build a 21st century health care system for putting a new focus on prevention to promoting electronic health records to expanding the primary care work force. the partners across the cabinet, she has launched new efforts to make government work better for the american people, including working with secretary vilsack to build a 2112 century food safety system and new guidelines to be announced here today. throughout his distinguished career in public service as
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mayor, state senator, and governor of iowa, secretary vilsack has had a remarkable record of making positive change in the lives of those who he has served. in the past two years usda supported struggling farmers and ranchers, provided food aid to one in four americans, and implemented the recovery act to create jobs and build a foundation for future economic growth. under secretary vilsack's leadership, usda is working to conserve america's forests and private working lands, clean our water supply, and revitalize rural communities. at the same time usda's strengthening the american agricultural economy, promoting agricultural production and exports, and working to combat hunger around the world. secretary vilsack is committed to improving the health of america's children by providing the nutritious and balanced meals, encouraging increased physical activity, and improving our food safety system. ladies and gentlemen, please join me in welcoming secretary
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of agriculture tom vilsack. >> thank you very much. good morning, to everyone. i want to thank the dean and also thank president napp and the george washington university community for giving us this great forum for an important set of announcements and discussions today. that are important to this country, as i'm acknowledging folks let me start by acknowledging dr. van horn who was the chair of our advisory group who was working for a number of years in establishings these guidelines. her leadership was very much appreciated. working with folks from h.h.s. and usda they really put a great deal of effort into these guidelines as reflected by the detailed nature of the guidelines and the important work that's involved. also want to thank all those who were involved in publicly commenting on these guidelines. when we reach out to the public, we obviously have a more
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informed set of guidelines as we try to address to the needs of the american population and to folks who are very concerned about the situation involving food and nutrition in the united states. so this is an opportunity for us to celebrate the work of this advisory group, to acknowledge that what we announce today is certainly based deeply and steeply in science. the science behind these guidelines is unquestioned. and certainly it's important for us to send a message to american families that these guidelines are designed to provide them an opportunity for healthy eating habits and healthy lifestyles. the president in his state of the union address talked about an america that outinnovated, outeducated and, and outbuilt the rest of the world. it's extremely difficult to do any of that unless we are a healthy nation. i want to acknowledge the leadership of secretary sebelius in particular as she is helping
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us sort of redesign our health care system as the dean indicated. a system that will be focused on wellness and prevention and not simply sick care. and it's a system that obviously we are in need of in this country. when we take a look at the high levels of obesity among adults and among children, it is important to have guidelines that will help us deal with that issue of obesity. certainly pleased that congress last year passed the healthy and hunger free kids act of 2010, designed to allow us to do a better job in school lunches and breakfast programs and our nutrition programs in schools. and today's announcement is yet another step in the right direction. today we announce guidelines. these are basically an opportunity for families to understand and appreciate how to make sure that the calories in and calories out are balanced. i must admit personally that i had never read the dietary
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guidelines until i got this job. but i read them in detail. i read all of them. and i realized how significantly different my eating habits were from what constituted a healthy patern. so personally my life has changed by virtue of these dietary guidelines and my kristi and i are following the guidelines. we have our little sheet every day. we record what we eat. and we are very, very concerned about calories in and calories out. there are two concepts incorporated in these guidelines that i want to comment on before i turn the podium over to my good friend, secretary sebelius. one of them is this notion of proper balance. if folks want to maintain a healthy weight, they obviously have to be sensitive to the calories in and calories out. and these guidelines basically talk about the need to balance good eating habits with physical activity. the first lady's let's move initiative has focused attention and resources on this notion of
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getting people, particularly children more physically active. that is certainly incorporated in these guidelines today. when we talk about calories in and calories out, we also talk about the density, nutritional density of those calories. not every calorie is the same. and these guidelines graphically point this out. we want to place a greater emphasis on meal paternses -- patterns that focus on lean proteins, including fish and seafood. we want to move away from our overreliance in the past on sugar and sodium and saturated fat. we want to make sure that folks understand that eating real food as opposed to necessarily fortified or dietary supplements is probably the best way for you to make the best use of your calories. and the guidelines clearly point that out. we try to provide healthful hints to folks as they begin to try to maintain that healthy balance. foods to avoid.
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percentages of foods to avoid. and foods that you want to consume more of. over the course of time, we are going to supplement these guidelines with additional educational information that will make it easier for the american public to understand how to follow these guidelines. and these guidelines also place an additional emphasis on food safety which i certainly appreciate and i know that secretary sebelius does as well. we want to talk about clean, separate, cook, and chill as ways in which we can better handle food so we can substantially reduce the number of food-borne illnesses that are still far too high in this country. whether it's maintaining a healthy balance, instructions in terms how you might be able to lose weight with calories in and calories out, focus on nutritionally dense calories as opposed to empty calories, the notion of physical activity and food safety, this is a comprehensive science-based effort we announce today. so with that, i'd like to turn
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the podium over to my good friend, kathleen sebelius, as the dean was correct there is no person more passionate about healthy lifestyles than secretary sebelius. she is a runner. early in the morning i suspect. the rest of us are sort of jogging later in the day. we -- i just can't get up early in the morning. but the secretary has been tremendous advocate and has an extraordinary responsibility with the affordable health care act and doing a great job. kathleen? >> thank you. >> i'm going to start by also thanking the dean and president knapp and those of us on the g.w. faculty and staff and students for having us back here. the last time i was here we were making an important announcement on tobacco and we are back to talk about the new dietary
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guidelines. i think it's appropriate to be here at g.w. which has had such a leadership role in the health of all americans. and it's great to be here with my good friend and partner, agriculture secretary tom vilsack. you have heard the dean say that we both were governors and we are governors from food states, kansas and iowa. so our work on these issues did not begin with our new assignments. they have been long-standing and a great collaboration. we also have worked on issues from food safety to making sure we reach out to children with healthy insurance programs and the partnership with usda has really been invaluable and continues to be, i think, an important initiative moving forward we have had a great team
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on the expert advisory committee that has been hard at work and i particularly want to recognize our leadership team who has been part of that effort and led by assistant secretary howard koh who is here who if you have tough questions he gets to answer them. later on. but there have been lots of dedicated public servants who make sure that we were basing today's announcements on the best science available and that we move this effort forward. the mission that we have at health and human services is to improve the health and well-being of every america. we know we can't just concentrate on what happens when people come in contact with hospitals or go to a doctor's office. we also need to pay attention to what impacts everyone's health, that's the air we breathe, food we eat, the lifestyles we lead.
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and the obesity epidemic, secretary vilsack has mentioned, carries a really steep cost. obesity brings a far higher risk of heart disease, stroke, certain cancers. chronic diseases like these still account for seven out of every 10 deaths in america and most are preventable. 3/4 of our health care costs are directly related to chronic diseases. the costs also weigh heavily on business owners, government budgets, also our ability to grow and innovate as a nation. you can't be educated if you're sick each and every day. you are not a good student. you won't be as productive or innovative as a working member of this society if your health condition is debilitating.
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this has a tremendous cost overall on america's prosperity. and it's why the administration has really launched a broad agenda to help give americans the tools they need, the information they need to stay healthy, stay well, and thrive and prosper. and one of the most important things we can do is to get people information based on the latest science and research. and we are updating that information all the time. so they can make the best choices for themselves and their families. that's what the latest edition of the dietary guidelines are all about. concrete steps every family can take to incorporate into their everyday lives and improve the lives of themselves and their children. steps like controlling calorie intake, moving more and sitting less so you burn more calories. and altogether eating a healthier diet. more fruits and vegetables and
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whole grains. less sodium, sugar, and saturated fat. we know if we want to become a healthier, stronger, more competitive country we need to give americans the tools they need to make healthy choices. of so we have as a result a healthier student force and a healthier work force. and these guidelines are really powerful tools. now, we know there are also other obstacles to living a healthier lifestyle. if you are going to a grocery store and have one or two children tugging on your arms, you don't always have time to read nutrition facts on the back of a bottle. so we are working on updating that information and making it easier to find and easier to read on the front of a pack. when you go out to eat, sometimes it's difficult to tell if you want to make a healthy choice what are the healthy choices? and that's why the nutrition information will be more readily available on menu boards.
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we are taking steps to get that information into people's hands. to work with the food industry, work with restaurant industry to give people additional information. and that's all part of the affordable care act passed last year. calorie information right at the front of a menu where customers can again take that information in and make the choices they want to make. the health care law also is reducing some of the financial barriers that have prevented millions of americans from getting preventive care. we want to make sure that folks can access key screenings at no extra cost. to find out if they have high cholesterol or high blood pressure, then work on getting those conditions under control. even when people have the best information and a clear plan to translating it, there can still be challenges.
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when you have to walk two miles in some neighborhoods to get fresh producer at the near supermarket but only a block away it's easy to get chips or other kinds of high calorie foods, that makes it very difficult to eat nutrition meals. when it's not safe to play outside or send your children outside, it's very tough for kids to get the exercise they need. so again the recovery act is helping neighborhoods and cities invest in ways to make it easier for people to make healthier choices from serving health irschool lunches to designing more walkable neighborhoods. what all these examples have in common is that our understanding that underneath the sticks about -- the statistics about our health care system are families and human beings. there are children and families, workers who really do want by and large to do the healthy thing, to eat the right diet,
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exercise more, follow the doctor's instructions. but they are not always the easiest things to do and often there are financial challenges to make healthier choices. with this new addition of dietary guidelines, we are putting some best information in people's hands and that's a real step forward. it's going to help us become a healthier country, a more productive country, and more competitive country. so thank you all again for being here today. i think we are going to invite tom vilsack to come back to the mike. >> dr. post is from usda and dr. koh from h.h.s. just in case there are questions that require detailed scientific answer which the secretary and i would like to try to answer but probably won't do as much as you guys can. so with that we'd like to open it up to quiss folks might have
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about the guidelines -- questions folks might have about the guidelines. yes, sir. >> good morning, my name is james reed, a reporter for the campus radio here at g.w. i know as a teenager still growing there are not specific guidelines for teenagers and having noticed my friends in college and my family back home, many who like to eat more than the recommended guidelines, exercise more, or often eat less and exercise less, what recommendations would you give to teenagers at such a critical time for their developing bodies and their health? >> before i turn it over to either one of these two doctors to respond to that question, i think it is important to note that these guidelines are beginning to distinguish between various stages in life and there
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are adjustments that have to be made as we move through various stages of life. which is reflected in the guidelines generally in terms of focusing on meal patterns. i don't know if one of you want to address the issue of teenagers. >> we stress these guidelines apply to all adults and to children over age 2. so the general theme is that both secretaries have put forward apply to teenagers as well. we are concerned about child obesity because one of three kids are overweight or obese. these major themes are calorie balance and focusing on nutrient dense foods and also making sure that kids are active and meet physical activity guidelines. these are all themes that are relevant to teenagers. as well as adults. >> and i can also add there is an excellent resource that's found in the dietary guidelines that gives you a couple of different meal patterns or
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eating patterns that embody the dietary guidelines. so you will be able to find your needs at the various calorie levels and that could 24e7b be individualized so you -- could be individualized so you could find out what you need. >> at the usda website you have the ability to type in information about yourself, what kind of lifestyle you have, how much physical activity you are engaged in on a daily basis, and then that gives you a sense of how many calories you should consume if you want to maintain weight or lose a weight how you do it in the proper way. so there are ways in which you can at usda.gov determine for yourself a personal eating. that's what my wife and i are basically doing right now. >> this report says that people should reduce their daily sodium intake to less than 2,300
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milligrams and people over 51 and some others should reduce it to 1,500 milligrams and also less than 300 milligrams of cholesterol. can you tell us what is the current level of consumption for the average american? how big a change would this be? >> i think it's 3,400 milligrams of sodium. this is obviously a significant reduction that's being proposed. and one that we hope food processors in particular will take into account. again these two gentlemen could probably talk a little about that. >> major recommendation from this report is that virtually all americans could benefit from a reduction in their sodium intake. and those two targets that you mentioned do apply to first the general population and then to specific populations. we are particularly concerned about the specific populations who need a 1,500 milligram target because that represents
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about half the general population and most adults. so there's been a lot 6 attention -- lot of attention to that issue for the guidelines. we thank you for your attention to that. >> currently men are getting over the 300 milligram a day target whereas women are getting somewhat less. we are hoping that's a reachable target for the future. >> katherine with the american dietetic association representing 70,000 dieticians across the country. thank you so much for putting these guidelines together. i have a question. it's interesting that the secretary mentioned that he had never read these guidelines before he became secretary. and i think there's a problem in the way these guidelines, as excellent as they are, are marketed.
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the budget behind the guidelines , the material is excellent. the scientists put two full years into coming the -- combing the evidence and put together a comprehensive report for the committee. and then the staff at the center for nutrition policy and promotion work very hard to put excellent guidelines together for the public which almost no one sees. so how can this be remedied? what needs to be done? >> let me talk from the usda perspective and i would like secretary sebelius to weigh in. she did an excellent job of pointing out the number of initiatives taking place today that have not been taking place for some time in this space. for example, in areas that we are involved with, our snap program, the supplemental nutrition assistance program, is currently working on a program to try to see if we can innocent the purchase of fruits and vegetables. that's not been done before. it's being done now because we
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are aware of the need for more fruits and vegetables in folks' diets. the issue of food deserts, we have a healthy financing initiative that h.h.s., usda, and treasury department are working on. so many in the areas in the country do not have access to a full-scale grocery store. we are working with the food industry on labeling which the secretary mentioned. so within schools we are excited about the potential for their healthy and hunger free kids act of 2010 to engage schools in a meaningful way to improve school breakfast and lunch and do a better job of educating parents and students about the choice that is they make and making sure that the choices are consistent. so this is the dietary guidelines fit into this and allow sort of a road map, if you will, in all of these spaces to help inform. i think grocers, food producers, are becoming much more concerned about the obesity issue and are
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trying through the first lady's let's move initiative, to focus on this. i think there is a lot of energy in this space that hasn't been the case before. we are always looking for more creative ways to get information out. >> i think the secretary's right. not only have a lot of this information been sort of opaque in the past, but there really hasn't been much of a focus on how this impacts us as a nation. how it impacts our students. and i think that in addition to these specific initiatives that the secretary outlined, there also is a very exciting set of programs going on around the country, putting communities, putting prevention to work efforts which is in everything from schools to neighborhoods trying to determine what are the best strategies to really begin to impact folks' behavior and how to get people's attention. so not only i think the
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information available that never has been available in an easy to read, easy to understand way, but understanding that information is step one, and having access to choices is really a critical piece of the puzzle. and we, frankly, have one of the best spotlight microphones with the first lady leading this effort. i think americans who have never really thought about this or didn't know where to get the information or didn't have an understanding of how this impacted themselves and their children now will have a great opportunity to do that. i think what you are going to find is a lot more attention to the science. a lot more information being spread on a regular basis and a lot more ability of people to make better choices for themselves and their families. >> and also to add the -- to the discussion that you heard, there is a very good resource that is
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part of this dietary guideline that's found in the appendix. it's actually a listing of the key consumer behaviors and strategies to implement them. so we hope that this is a different approach than in the past in the dietary guidelines and that will be the jump-off point for a lot of our partners to take that information and magnify it. >> can you go into more details about the incentives for fruits and vegetables. how those programs would work? >> we are currently experimenting in the state of massachusetts with an effort to see whether or not we can within the electronic benefit transfer card itself, we can incorporate a discount procedure where the grocer basically gets paid full value for the fruit or vegetable being purchased but it is -- it's only credited 70% or 80% on
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the card so it allows the snap beneficiary to expand, if you will, their purchasing power. we've got a year-long scientific review of this to determine whether or not that actually moves the needle in terms of purchasing decisions. >> recently i think it's been in the last few years the w.i.c. program has been expanded so that under the women, infant, and children program now fruits and veggables are able to be purchased. with that -- vegetables are able to be purchased with that buying power. we also have as part of this community putting prevention to work effort, i know in louisville they are now subsidizing fruits and vegetables in what are basically dollar stores to make it much more convenient for people to buy fresh fruits. mayor bloomberg has a green cart
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strategy that literally is coming into neighborhoods in a way that old milkmen came throughout neighborhoods delivering milk. this is delivering fresh fruits and veggables in areas that they weren't available. i know secretary vilsack has done a great job mapping the food desert areas that we really couldn't even identify before because there wasn't a very careful calculation of how far people had to go and working with local leaders on strategies. part of it is access and part of it is pricing and i think both are being addressed as we move forward. >> one other program is in farmers' markets. again making snap benefits beneficiaries available to use their cards at farmers' markets and many farmers' markets are developing discounts where you essentially for every dollar of fruits and veggables you -- vegetables you purchase you get a 50 cent discount if you will
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so you will be able to purchase twice as much. a lot of different opportunities here. >> i'm an mph student here at g.w. apart from what you just mentioned about fruit and vegetables. how can we recognize the fact a lot of other foods recommended by the guidelines are much more expensive than the foods we are supposed to avoid? >> well, one of the things that we are trying to do is to provide people with information at least on the usda website about recipes and ways in which you can stretch your food dollar and still purchase foods that are good for you. it doesn't always have to necessarily be that it's more expensive. particularly if you know how to use these foods in very creative ways. one thing we have been doing is accumulating recipes and making that information available on our website.
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the second thing is, by encouraging community gardens, farmers' markets, and things of that nature, i think there is a growing supply which makes it perhaps potentially more accessible and possibly more affordable depending upon the local market. sometimes you don't have as much transportation expense involved in pricing those. the first lady's recent announcement with wal-mart is a good example of the kind of purchasing power that will potentially result in some of those products being far less expensive than they have been in the past. i think there is a lot going on in this space, but our view is there are creative ways. don't necessarily have to concede it's always more expensive. >> marion, politico. at the very first dietary goals back in the 1970's said eat less meat for which george mcgovern was roundly criticized.
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so it got to be eat lean meat. why don't your guidelines which specifically discuss fruits and vegetables and whole grains specifically discuss meat? you have to go deep into the guidelines themselves to see that you are suggesting that ground beef might be one place where there's too much fat. why do you call it solid fat instead of porterhouse steak? or why do you call it solid fat and yet in the guidelines on dairy include cheese? it's confusing. >> well, i'll let the two scientists talk about this. the guidelines do mention the need for more consumption of fish and seafood in the lean protein area. that's a specific recommendation which goes to your question. secondly, again the focus on calories in and calories out and food dense foods, i think is an
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important frame that folks are going to use to make decisions about where they want to spend their calories, if you will. once they understand how many minutes or hours they have to be on a treadmill to work off some of the areas that we have talked about in terms of sugar, i think they are going to begin making even more informed decisions. in those guidelines, i think there are specific references here, and we are going to object quousely -- obviously continue to educate folks about that. >> i would also add that dietary guidelines stress variety and also stress building healthy eating pattern. there's a flexibility in building those eating patterns so your protein sources could come from a variety of places as the second mentioned, seafood is one of them. it could be that you have your protein from beans and other nuts and seeds as well. you have the ability to craft a
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pattern that meets your needs within your calorie needs and difference the nutrients you need without focusing on specific foods that should be eliminated from the diet. [inaudible] >> i'm saying, what i'm saying is you do not anywhere specifically -- why don't you specifically say, eat less meat? why not? >> in suggesting that you should have more fish and seafood, you are essentially saying that that is a good substitute and it's a good lean protein. i think it's a way of saying what you're saying. there a he low-foot cheese. -- there's low-fat cheese. it does talk low-fat dairy. it's not as if we are trying to
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eliminate all foods and all categories. it's about making sure that you have a balanced approach to your eating. and that you are focusing on calories in and calories out. >> christopher exercise science here at george washington. i have kind of a two-part question. in the past i think we all agree that whole foods are probably the best way to get a balanced diet. but in the past the guidelines have often recommended foods like liver and kale, sort of foods that are probably not going to hit with the american public at large any time soon. my question is, do the guidelines address supplementation in any way whatsoever? and i ask that question being from exercise science because the portion of the population who is interested in improving their performance it's not a small part of the population, either. people who want to gain lean body mass, it's not a small
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portion of the population. i'm interested in how the guidelines address that population to a certain extent and maybe to the extent that it involves supplementation are we addressing that at all? thank you. >> if you look at the report there are sections on food groups to reduce and then also food groups and minerals to increase. and if you look at the latter chapter you'll see items like vitamin d and calcium and potassium and nutrients like that being discussed. this is all again a part of a broad view on healthy eating and on maintaining healthy weight. and that's where i think your question comes in. >> i'll also emphasize the guidelines are generally for americans 2 and older. we do recognize that there are some subpopulations in need of supplements for promoting health. women who may become pregnant for example. there are specific
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recommendations for populations like that. we do acknowledge where fortfication or supplementation is needed certainly to promote health or to avoid chronic illness. a of alice, national fisheries institute. you say -- you recommend higher seafood or eating more seafood but that differs now from the f.d.a. guidelines. how do we explain that to pregnant or breast-feeding women when they are supposed to be careful about what they eat. they might be worried about differing guidelines on seafood intake. >> well, what we know is with the dietary guidelines become the action now for federal agencies to make changes to their programs in concert with these guidelines because they
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are in fact being national nutrition policy. we'll expect consistency as we move through this year and into the second years. -- into the next years. >> there is a special section on dietary recommendations for pregnant women, the spefpk issue of fish is brought up there. -- specific issue of fish is brought up there. and the balance again is to recommend fish intake for pregnant women while making sure they don't consume certain types that might expose them to mercury. there is dedicated language if you look at the report there. it's carefully put forward. we have time for two more questions. yes, sir. >> peter, with the nutrition and metabolism society. there is a growing body of evidence that restriction of carbohydrate intake has a big impact on reducing obesity, as well as dealing with the chronic
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diseases you mentioned as well as metabolic syndrome and type 2 diabetes which you haven't mentioned. i was wondering if any attention has been given to that in the guidelines. they don't seem to be mentioned at all in the summary that you handed out this morning, thank you. >> we did receive an awful lot of public input on the issue of carbohydrates and the amount to be consumed or perhaps to be concerned concerned with. ultimately the evidence that was considered first by the dietary guidelines advisory committee and then translated in plain language in the document that we are releasing today, really portrays or conveys the eating pattern -- that is one that deals with carbohydrates. most concerned with the empty calories, for example, added sugars, and it does deal with carbohydrates, but it doesn't specify a consideration that carbohydrates should come from any particular type of food or
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in an amount greater or perhaps in concert with those comments. the evidence is just not there to support the views that were expressed and the comments received. >> hi, brook, from the arrye tiss foundation. in your report you mentioned many different chronic diseases, heart disease, obesity, stroke. one thing that i haven't heard mentioned is arthritis which serves as an underlying cause to many of these chronic diseases. what programming or marketing do you-all have going on now catering to the arthritis community which is very hard to reach that promotes these healthy eating habits and guidelines and a prevention of these other chronic diseases.
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>> certainly obesity drives many adverse health outcomes and osteoarthritis is a major source of morbidity for people who are affected. thank you for raising that point. the overall message is a healthy weight can help people avoid adverse outcomes like heart disease, stroke, diabetes, hypertension, and certainly arthritis as you mentioned. >> thank you very much. appreciate the opportunity to be here this morning. this is the first of obviously will be many opportunities for us to highlight the dietary guidelines. [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2011]
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>> starting about 125 minutes the white house will be launching a new initiative to promote entrepreneurship. participants include commerce secretary gary locke, small business administration administrator karen mills, and national economic council director, austin golsby. we'll have that live starting at 11:00 eastern. coming up at 1:00 eastern we'll live again with a review of terror incidents and the outlook for this year. the panelists include charles allen as well as ambassadors from spain and morocco. and at 8:00 p.m. eastern, journalist marvin kalp will look inside "the new york times."
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again coming up at 11:00, the white house will hold a briefing on new entrepreneurship initiative. that's at 11:00 eastern. a look now at the administration's plan to jump-start the economy. from this morning's "washington journal." >> "washington journal" continues. host: mark zandi, chief economist with moody's economy.com, joining us to talk about the state of the u.s. economy. let me show our viewers the front page of the washgton times. "with the gdp recd'economy is back.'" what is your predictn? last year, we greeted 1.3 5 million private sector jobs -- created 1.35 billion private sector jobs. i am hopeful that we can double that. that will bring down
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unemployment, which is very important everyone. host: what is turning this headline on its head here? what could revert this? guest: tre are many things to worry about. i heard your previous conversations about the turmoil in egypt. that could have significant implications of it were to spread to the rest of the middle east. if the price for oil were to rise significantly, that would be a problem. euro's situation is still very unsettled. their debt crisis has not been nailed down. the chinese artrying to slow their economy. they may not get at just right. we have a slew of problems here. state and local governments are cutting back. the foreclosure crisis is ongoing. i could go on, but there is a long list of things to still be very nervous about. host: "the baltimore sun" as
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this headline -- has this headline. do you cut and borrow or invest and grow -- cut and grow, or invest and grow? which is it? guest: we're going to have to do both. we have to cut government spending. we have a very significant, a fiscal problem. our deficits are large, and they are not going to get small enough unless we make changes. it also requires tax increases. it would be prudent to focus on spending cuts. i do not think you want to start the cutting in 2011, because of all the things i mentioned i am nervous about. theconomy needs to be off and running before we engage in real, significant cutting, but we're going to have to do that. and we think about the spending cuts we engage in, we have to thin about it in the context of
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global competitiveness. we do not want to cut back on the things that make our economy tick, our investment in the form of education spending and infrastructure, as well. we're going to have to cut, but we have to be very prudent as to how we do that, so we do not undermine our economy, which is obviously key to addressing your -- your problems -- our long- termroblems. host: what your do we begin cutting -- year do we begin cutting? i do not think it would start in 2011. unemployment is still.4%. the collective psyche is still very fragile, so i do not think i would start its itthis year. -- start it this year. by 2012 or 2013, i think we'll
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be in a ple to do that, and we should be very aggressive. host: do you wait longer to address the medicareprogram? guest: i think medicare and medicaid will be a tough thing to attack, at least in that timeframe. longer run, we're going to have to come back to it. our problems are centered around rising cost of health care is and the cost of those programs. we're going to have to come back to back, but i do not think we can address those problemsn the next couple of years. social security -- think we can begin toackle that. it is a more manageable problem with some very clear solutions. i think that should be part of the discussion on how to rein in government spending over the next couple or three years. host: where did you come down on
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the economic impact of repealing the new health care law and replacing it, or leaving it as is? guest: i do not think the health care law has a significant impact on the economy, certainly not in the next couple, three, four, five years. i think that the impact of the health care reform i that i has insured a large number of the uninsured, and s roughly paid for it. we do not know precisely that it will get it right, but i think it is pretty close. i do not think it would make a lot of sense, at this point, to backtrack significantly on that, at least from an economic rspective. at this point, it is important to nail down what we have done and provide clarity to businesses and people, so they can get on with their business
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and let the economy move forward. the one major disappointment i had with the health care reform, again, from an ecomic perspective, is that i do not think it addressed the long- term growth in health care costs. ultimately, we have to get the growth in health care costs to slow, and i do not see anything in the reform that convies me that will happen. we will have to come back to that at some point, when the political environment is right for it. host: unemployment numbers for january come out on friday. what do you expect? what is your prediction? guest: i think we will probably see a gain of about 150,000 private-sector jobs. that is not bad. we will need more than that, on a consistent basis, to bring down unemployment, but that is prettya good. -- pretty good. unemployment fell sharply in
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december, in part related to statistical issues that are going to a white in this data. unemployment will move up a little bit. it is going to be 9.6% in january, i suspect. just to give you a benchmark, we need to create 150,000 jobs per month, just to maintain that stable rate of unemployment. we have to see job growth that is measurably better than that to start bringing down unemployment. i am hopeful and confident that will happen, but that is still a forecast. host: you are on the air with mark zandi. caller: thanks for your insight. you brought up so many points already. i just want to touch on the health care reform that you talked about. being from massachusetts -- i think they are modeling their system after hours, which is not perfect -- after ours, which is
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not perfect. it is the 800-pound gorilla. i had insurance. i have a laparoscopic -- had a laparoscopic procedure that ended up costing a total of $30,000 for one hour's work. if somebody tells me how would costs $30,000 for one hour of work, that would help me out. ho: let's get mark zandi's perspective on that. guest: you put your finger right on our most significant, long- term economic problem. it is the very high cost of health care and the fact that the cost of health care continues to increased, each and every year, very quickly. overall, health care inflation is running almost double overall inflation.
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that cnot continue, if you do the arithmetic. it will make health care such a large share of the economy, and the cost the government so significant, that it will break. that is exactly the problem that we need to address. the way to address that, ultimately, at the end of the day, is going to require that the cost of health care are going to have to be borne more directly by you and i as consumers of health care. if we feel the pain of those higher costs, weill become much more judicious in our use of health care, and therefore that will slow the growth of costs. i do not tnk we did much in the health care reform bill to adopt that principle. therefore, we will have to come back to this and redesigned health care system again. host: how do you bring the cost surve down -- cost curve down?
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guest: there are a number of ways. one key way is to reduce the tax benefit employers have in providing health care to their employees. i have a very good health care plan. when i get sick, or my family gets sick, i can go shopping for health care. i realldo not think about the cost, or i am not as careful as i ould be in shopping for health care. if we reduce the tax benefits that employers get for providing health benefits to employees -- high-income employees like myself -- then it will start falling on me to start shopping more carefully for health care. once we start shopping more carefully, i think that will have a big impact on the long- term growth of health care costs. host: you get ready of the third-party health insurance relationship.
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guest: i would reduce the insurance that goes to high- income households. or, better put, i would make them bear the cost of that -- those gold-plated health insurance plans. they would have to pay more to get those plans. host: let's go to walkie gone -- waukegan, illinois. you are on the air. caller: why do we trust moody's and all of these other ratings agencies, considering that the exacerbated the downfall of the econom-- they exacerbated the downfall of the economy? host: mark ndi? .
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moody's is recognizing this more explicitly in the ratings they do. it affects the ability to make future debt payments. florida on the republican line. caller: i have a quick caller:is in existence that pay, or do they passed along to their customer? >guest: they do pay taxes. the income tax rate is about 35%. the effective rate after they take advantage of loopholes is more like 25%. that includes federal and state and local income tax. many businesses that is the cost of doing business and will drive
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that through to consumers, but some of them can in some industries where there is less competition or margins are higher. in many industries they bear the burden of that. there are also many f chapter corporations. -- also many s chapter corporations. people pay and individual tax rate on that income. it is not a c corp, but it is profits being taxed. i think businesses pay taxes and they're not able to pass all of that's true to their customers. host: the corporate tax rate was an issue that was brought up by the president during the state of the union address, and he said in exchange for lowering the tax rate he wants to close loopholes, the tax loopholes by corporations.
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what if you do not close the loopholes and you were to then lower the corporate tax rate, what happens? guest: you lose revue. it would be prudent to reduce the loopholes, the corporate tax expenditures. that would raise enough revenue to allow for a reduction in the marginal tax rates that businesses pay. put another way, you brought in the tax rate so you can lower the tax rate, so that can allow u.s. businesses to compete more effectively globally. right now he was income tax rates are relatively high versus the competitors in many countries. eliminating or at least reducing loopholes, broadening the base, generating revenue i think would be very prudent. it woul incentivize u.s. businesses to hire, investcorp
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in united states and expand and grow the economy. i think that is the idea. i think as pretty broad base support in viet ministration and congress and hopefully we are able to execute on that. host: we are talking to mark zandi joining us to talk about outlook of the economy. i want to keep updating you about the situation in egypt. egyptia president starting a new cabinet today. it is saying that it is the most significant change the interior minister who has internal security forces was replaced. his replacement is widely despised by protesters for. caller: you look like a direct
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anhonest person, but i am very angry this morning. i just changed channels, and on the other channel they are saying wall street is about ready to hand out big bonuses. i am watching my fellow americans lose jobs, homes, retirements,eople tried to scuffle to get a job for $9 an hour, and these guys on wall street are handing out billion dollar bonuses. is there a total disconnect on wall street, and the question is should we be out in the street like the egyptians are? i am sorry for being sarcastic, but that is my question. guest: not at all. there does seem to be a disconnect puritan after three years of financial disconnect and hundreds of billions of dollars that were put forward by taxpayers to support that and it's a system and wall street, wall street is back doing quite well and the competition is now
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rising. -- compensation is not rising. the $5 billion you referred to as regard tone of the hedge fund managers. he has done quite well as a traitor. -- quite well as a trader. i am not sure we should begrudge him that. the broader point is, i do think it would be prudent if wall street' were more restrained in the compensation packages that ey provide, and more importantly than that, hopefully one of the reforms that comes out of this is closer look at the way compensation is made on wall street so that the incentives are right so that people have the incentive through their compensation packages to do the right thing, that there incentives are lined up with investors.
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i think that is clear that was not the case and that is one of the reasons we got into this case. hopefully through financial regulatory reform and financial reform, we will see those compensatn packages better designed and compensation on wall street more aligned to investor interest. i sympathize with what you are saying, it is a bitter pill only after three years of the recession for the competition bills to be so large are ready. host: on the democratic line from california. good morning. caer: thank you for this report. i am a green thparty democrat. we want to reclaim the democratic party, just like the democrats have lost their left- wing base. i really appreciate what mr.
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zandi has been talking about. the thing he has not mention yet is we the tax money to bail out the banks, which were criminally fraudulent against people and damaged our society, but now when it time to bail out state governments, we have no money to do that. the bank should be required to bail out our state governments of zero interest. i also think we need a -- host: let's take the point on whether or not to bail out states or let them filed for bankruptcy. what is the economic impact? guest: first let me stay the state governments have received a significant amount of help throughout the recession. i think if you d it all up, it
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comes close to $175 billion. that has gone up from the federal government to state government for various things, >> checkout c-span.org to see the rest of this segment. to the eisenhower executive building here in washington. >> the success that are proper partners would like to encourage. please join me in welcoming zoe damacella. [applause] >> hello, everyone. thank you for attending. it is exciting for me to be here. i am 18 years old.
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i am an entrepreneur. i grew up in challenging circumstances. my mother is a single mother. i lived in low-income housing for most of my life. everything was kind of a struggle. i never thought my life would get any better. i did not think there was anything out there for me. i discovered this passion i had for entrepreneurship and the business when i was 14. i'm a custom-made clothing for women and girls of all ages. this is something i enjoy. lovemaking close. -- i love making clothes. i had no idea how to make my business. i sold my for stress for $13 --
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$13.d my first addredress for i took a class at my high school. they completely changed my life. i cannot emphasize how much support they gave me. i was taught how to make a business plan, how to price my product. provided me with amazing opportunities and mentors. i competed in business competitions that allowed me to feel more confident about my business as well as getting some experience. there was amazing prize money i was able to reinvest into my business.
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this had a big impact on my life. i had the kind of financial independence i did not have growing up. that led me to amazing, amazing things and places. i was featured on national and international news, oprah's angel network, the "tyra banks" show. i was invited to the oval office to speak with the president. that was incredible. who would have thought that meet liking clothes would one day lead me into the oval office? he was so interested and passionate about helping young entrepreneurs and changing people's lives. by the time i was a senior in high school, i was running my
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business. i had three employees. it has been amazing. watching the state of the union address has reinforced for me just how importance of an investment entrepreneurship education and support of young entrepreneurs really is. it allowed me to bring myself out of poverty and allowed me to create jobs. it is so important to focus on this untapped resources. i have my story. i know so many other young people, especially with nifty, who have such amazing, amazing ideas. i cannot help but imagine what it would be like if all kids had access to these kinds of
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resources. if all on japan norris had these -- if all honorable norris -- entrepreneurs had these resources. i am a freshman at northwestern university. i continue to run my business out of my dorm room. it has been amazing. thank you so much for coming. i would like to introduce austan goolsbee, chairman of the council of economic advisors. [applause] >> thank you, zoe. are here to represent from chicago. i'm the head of the cea. i want to give a brief overview. we'll give the details of the
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start up america program. the place you start is -- just go get the list of fortune 500 -- some of the fastest-growing companies started in somebody's garage as just an idea that they had, and they went from there. whether you look at innovation and new ideas, look at employment or the growth that gives people careers and puts money in their pocket, all of those things are tied to an entrepreneurial ventures in a direct way. the research shows that. you don't need a ph.d. research to tell you that. you know when you see the millions of people starting businesses around this country
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that that is the case. the new firms in the economy have a way disproportionate share of driving job creation, as you might imagine. the president and the administration overall have tried very much to help small business and new start-ups get through what was the worst recession since 1929. the small business jobs act, some of the things you hear today. i think the basic idea that we must address, commercialization of federal research that might take place in the national labs, which has been big job creators, startup creators and innovation drivers. the helping foster the building of an auction to an oral
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culture. -- and entrepreneurialism culture. and so in many countries, they have announced, we're going to build a silicon valley right here. we'll start a brand new city and make it a silicon valley. so far, it has not worked. andstership -- mentor sship having that spirit proves to be somewhat rare and someone special. i taught at a business school in chicago. there was a student that was there from europe and had moved to the united states. the other students asked why he had done that. why didn't he go back to his home country?
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did you want to stay there? he said, where he is from, if you had an idea and you told people, i am thinking of starting a company to do this, everybody would have 10 reasons why you should not. you might not succeed. if you fail, nobody will give you a job again. you will be humiliated. when he got to america, it was the exact opposite. would person he talk to wo say that that is a great idea. that spirit is why even in large companies d.c. a big focus on entrepreneurship. they want to be more entrepreneurial in as big companies because it is the creation of new ideas to keep america the premier economy in the world.
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it is the reason that startup america is so exciting. everybody deserves at least one chance to change the world. i would like to introduce the national economic adviser, the leader of all of us, mr. gene sperling. [applause] >> and not from chicago. [laughter] michigan. i'm happy to be here for the launch of startup america. president put out a statement today which kind of reflect the spirit you just heard from zoe. "star america is a national campaign -- start of america -- startup america is a national campaign." this has been a top party for
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this president from the start. i was proud myself in pushing through the small business jobs act, which was a strong measure on the lending side and on the tax incentive side. we know that that is just the start of what we have to do. we have to build on it. we have an understanding of the public does private partnership. we are announcing a policy measures. we're seeing the private sector coming to join us. there is overt $400 million of private sector commitments being made. these things are linked together. the more we're tearing down barriers, making lending and financing more possible for people, the more you get the momentum from having both a public and private all pulling
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in the same direction. i want to make clear how grateful the president is that steve ks has agreed to share this effort -- that steve case. he is the co-founder of aol. we have had a chance in different lives and different capacities to work with not just him but his wife on the case foundation. steve spoke with the president in the oval. steve said, whether he's doing private sector or public-private partnership like this, it is all the same. it is all about investing with people that can change the world. we are happy he has agreed to take this leadership world. another person is karl tram.
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people know the kauffman foundation. they are front and center every step. you cannot work on this or do is speech on this without looking at what they have produced. and so we are incredibly happy to have them with us. many of us will also work with bob, one of the key people who with carl at the kauffman foundation. this is the exact time to have a startup americas initiative. one thing we know from what we say happens coming out of recessions, what the kauffman foundation has shown is that this is the time when people merge together and create new ideas.
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more than half of the companies in the fortune 500 in 2009 started during the recession or bear market. it is these times when people come together. they take a chance. this is part of our spirit. there is a dignity in having a chance to be your own boss, run your own business, and have a culture where failing is not the end of your career. it is another step to your success. that is the spirit that this president very much wants to promote. on the policy front, i will mention a couple of things that are coming out. one thing the president committed in the campaign was that long term investments in small businesses, there would be the zero capital gains. we passed that in the recovery
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act. we extended that a year in the legislation that happen toward the end of 2009. in our budget, will make a permanent. this is a permanent part of our tax code. we will be calling for reforms to make sure those investments are working for critical real estate investment and low-income areas, but for small business formation. we will expand the new markets tax credit from allowing $3.5 billion a year to $5 billion a year. these are the types of proposals we will be doing that we hope worked hand in glove with the private sector. i want to make clear this is a launch. we're going to come back and show what we're doing.
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we are committed to working with steve and carl and so many of the other companies to show some real result, real job creation, real start-ups making a difference. i would like to now introduced someone i first knew when he was the governor of the state there was neither illinois, michigan -- washington. he is now our excellent secretary of commerce, gary locke. [applause] >> thank you, gene. there are many explanations why american experience the slowest job growth since world war ii. america lost sight of its economic strength, which is innovation, technology, scientific progress, and the notion of of entrepreneurs taking risks in the pursuit of
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great ideas. the stop american initiative -- the start up america initiative is all about connecting. building on the success of last year's challenge, a program with the department of commerce can put $6 million, which was matched by nih to put together a 12 million-dollar competitive grant program to reward teams across the country who are taking research out of the labs and getting it into the hands of entrepreneurs. this year we're repeating and proposing to repeat the i6 challenge. this money will be matched by other federal agencies including the department of energy and others. hopefully it'll be a $12 million
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program again. we are spurring the development of clean energy. the i6 challenge represents president obama's approach. local communities are identifying their own assets and prodding the resources that will help them build on those strengths and assets. it is the same thing that the commerce department has been doing to help cities and towns all across america, by funding regional innovation clusters. building on the strengths and assets of particular communities. our economic development administration was part of a multi-agency that awarded $129 million to cultivate a cluster in the -- centered around
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philadelphia's navy yard on the design of efficiency. you'll see more grants like that focusing on innovator clusters. we're also focusing on overhauling the process within the department of path and trademark, part of the commerce department. we have an unacceptably long time friend, almost three years, to get a yes or no on a patent. patent pending might cut it for a major company. if you're an inventor working out of your own garage or basement, you cannot get funding to commercialize a great idea unless you have titles and to show those investors you have the title to that idea.
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we're on a mission to dramatically lower the current three-year processing time on a patent application. we're proposing a flexible process for approving patents, one that would respond to the needs of individual innovators and to the marketplace. under this system, we're coming up with proposals accelerated examination, we call a multi- tiered approach. we will be able to give patens out within 12 months for those who pay a slightly higher fee -- patents out. patten's o innovator can opt for a slower path or track three.
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this will bring the most valuable past as determined by inventors to market faster and it will help meet the needs of our innovators. it is clear that we cannot be content on what we have always done in the face of global competition. not if we want to compete and not if we want to win in the future. we're talking about the kauffman foundation. the most important contributor to a nation's economic growth is the number of start-ups that will grow to a billion dollars of revenue within 20 years. and to maintain america's historic average growth rate, we need 100 companies like that every single year. i know that there are a lot of initiatives being led by many of our innovators and companies. we're going to need all of us working together to get us back to what the president calls a
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society of innovation of technical prowess, of engineering, of breakthroughs. thank you very much. [applause] now it is my pleasure to introduce one of the stars of the administration, secretary of energy, steven chu. >> thank you. countries are moving aggressively to lead in the clean energy innovation. the world will demand these products. the president said this is our sputnik moment. this is a challenge that we have. the united states cannot take care of technological leadership for granted. the entire world -- how can we respond? america leads the world in pure,
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raw innovation. we have the best research institutions. and an outstanding set of laboratories. i encourage the larger businesses to reach out to the universities and national labs and grow stronger ties. this is how we will rev up the machine. by taking the raw genius, we can out-innovate any country in the world. to do this, we need to get our ideas from the laboratory to the factory floor. this is something i have experienced personally. long before i was secretary of energy, i was an adviser to many startup companies.
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we have about a dozen patents. i was an adviser to an incubator company and an investment firm. when i realized during that time was it is not a bright idea. it is how you plan a business plan. how you keep track of these expenses and grow to be competitive. we are going to take this. i am pleased to announce the department of energy in partnership with the small business administration is launching a program to support americans clean energy innovators. this is a pilot program that will connect clean energies start-ups with private business accelerants. they will recruit mentors. it will start with services to advise 100 people from at least
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200 mentors. the goal is to help a clean energy storeart. the program is open to on japan nor'small businesses. one of the measures of a nation's success is "the prospects of a small desk business owner who dreams of turning a good idea into a thriving enterprise." i think we can win the clean energy race. i have seen firsthand the ingenuity and the energy of america's innovators. these are engines of job creation and economic growth. we can compete, we can win in the global market. thank you. and not introduce our business partner, karen mills, administrator of the small
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business administration. [applause] >> thank you, secretary chu and everyone for being here. at the fba, will work tirelessly and have for both main street entrepreneurs and the high-crust entrepreneurs that we're talking about today. we have help the firms like intel and fedex when there were just starting out. i don't think we helped aol. we have helped a few. one of the things that we know is that it is a relatively small number of high-growth firms that create all the net new jobs. these firms come in many forms and across all of the sectors. so that is why today we are calling for leaders from all
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sectors and all industries to come together to ensure that start-ups have the tools that they need so they can grow and they can create jobs. these start-ups are how innovation gets turned into jobs and it is a fuel for the economy. the president talked about winning the future. we talked about these start-ups being the offense. to keep the super bowl analogy's going, we also have taken a look at what we need to keep on winning and help the companies keep on how winning. will we need is to get more of the investors off the sidelines and into the game. that is what we are announcing today from the fdba. an impact investment fund that will use to drive $1 billion into the hands of small firms over the next five years.
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this fund will target having impact in under-served communities and in emerging industries like clean energy. a second announcement today is that we are announcing a billion dollar for an early-stage innovation of fun. one of the things we have heard is that the valley of death has gotten deeper and wider. we need to have capital in this market gap in early stage financing between $1,000,000.5000000 dollars. these funds will be built on top -- between $1 million and $5 million. these funds will will be built on fdic programs. that is a good bang for the b uck for taxpayers. finding capital is just half the battle. it is equally important to give
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mentoring and counseling to those companies as they grow. that is what we have joined with the department of energy on the entrepreneurial mentor corp. and we hope this pilot will expand to many, many more companies. in addition, we have a real commitment to america's veterans. they are starting new bids -- businesses. we will be building business incubators that offer specialized counselling for veteran of entrepreneurs in places where they can come and grow their businesses. we are committed across the administration as these veterans come home to existing businesses or new businesses they want to start, that we have more tools for them.
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it is not about giving entrepreneurs the tools. there is another component, about removing the barriers they get in the way of on to benares entrepreneurs.n-- a specific focus on those that might stifle our innovators and our small businesses. part of startup america, we will roll out an initiative to hear directly from a entrepreneurs about how we continue to build this environment and help them turn innovation into jobs. we're finalizing details for and power and entrepreneurs.
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we want to understand what those barriers are and how we can remove them. we'll announce all those cities and dates soon. they can submit their ideas. across this administration, working together to make sure that startup america initiatives touch all facets entrepreneurs of -- touch all facets of entrepreneurs and creates jobs. thank you. i am pleased -- [applause] as you know, it is all about leadership. i am pleased to announce our private sector leader for this effort and our partner, steve
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case. [applause] >> thank you, karen. thank you all for your service to our country. you shine a spotlight on entrepreneurs and celebrate their activities. i am grateful to president spent some time this morning. he has a lot on his plate, including egypt. we are all in this together, trying to make sure we understand the importance of all entrepreneurial activity. go back 300 years and demonstrate the story that america is the story of entrepreneurship. sailing across the ocean, there was an idea of a new nation. entrepreneurs that was -- he was the first entrepreneur. people like thomas edison, henry
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ford, steve jobs. they have led the world across a whole series of sectors and have created many jobs. that is the core underpinning of what makes this country great. we look at ways to create jobs in this country, which is a priority. startup america that -- that is what startup america is all about. they can take your ideas for a parent wants to export the best programs that already exist. you'll hear about some of those. take those to scale. it is all about celebrating and educating and exploring the activities of entrepreneurship. if you have ideas, we welcome
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them. you can tweet your suggestions. some money entrepreneurs took the time -- so many entrepreneurs took the time to be here. it would not be possible without the leadership of the kauffman foundation. you heard this from several speakers. they have led the way in research and innovation and giving us kind of a road map going forward of where some of the leverage points are. bem delighted that coraarl will joining me. let me turn it over to carl. he will explain why this is an important initiative. [applause] >> thank you, steve. i would join steve in thinking
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our secretaries, secretary mills. nobody could appreciate that this is not a special day for the kauffman foundation. ewing kauffman, an american from kansas city, served his nation as a seller in world war ii, came back to start a vision -- a company. he was born a poor individual on a farm an hour's drive from kansas city. he died a billionaire. his great gift to america was a simple vision, that if he could do would, anybody could do would. america needed many more entrepreneurs. every time we start someone building a business, we strengthen the economy. he had never been to college.
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he was one of the greatest economist. he points to something that economics does not understand. the great moments in economics is what a business is started. there is no economic without firms. when we go into a recession, we speak about it like it is some kind of organism. recessions are nothing more or less than firms shrinking current econom. the firm is central. it was wonderful to hear you use the word "dignity." he saw that the way for poor people to strengthen the american a comet is through the dignity. entrepreneurs do something special when they strengthen the economy. they create new jobs. it is nice to know there is a
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leftover kaufman statistic that nobody cited. [laughter] all new net new job creation is in firms less than five years old. we have to create an economy that will grow little companies. ies.ll become the company' america needs higher-growth companies. they only come once a company is started. it is a special day for us. many people come from organizations that we have helped to start, like a nifty. there are many people in the room who have been our beneficiaries because they thought about an important problem with us. prof. goldstein typifies the level of extraordinary economists that we're brought into this important work of thinking through this important ingredient of economics.
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we look into the future, helping small organizations like maybe -- will start on a new project that would call democratizing entrepreneurship. ofl too often, we think on entrepreneurship of young kids doing the mozart thing. 500 fesses businesses are started by people when they are 40 years old. it is important to understand that entrepreneurship is approachable like anybody. it is a fantastic thing today that president obama as put together this group. it is a fantastic thing that steve would share this. the case foundation is joining kaufman in putting the first dollars in to starting this. it is a fantastic thing there
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are other people who have committed to startup america including intel, ibm, and facebook. we're delighted that all these folks would come together under the stewardship and watch july of our public servants. this is good news that the council sees the importance entrepreneurship and start-ups i will and the one more statistic. 40% of our gdp this year comes from firms that did not exist in 1980. this is the dna of america. if america is going to be stronger, this part of our dna has to beat culture. thank you. [applause] >> thank you. now we move to the entrepreneurs.
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the decree jobs and leadership around the world. i want to -- they do create jobs and leadership around the world. gene said the start working over 20 years ago. they have the full support of the white house. now we get to the fun house. we have some entrepreneurs in the room. they are the ones who make things happen. our first speaker can see the important role government can play in calvert flies in -- cataloging something. the development of a browser which was one of the key kind of linchpins of the growth of the internet in the 1990's. we're delighted she has shifted from the university-government
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side of things to be an entrepreneur with geo magic. >> to like, steve -- thank you, steve. i started my business in the middle of a corn field. it has been 10 years. looking back, the path of going from academia to successful commercialization -- there are three factors that contributed to that success path. first is relentless and even stubborn pursuit of excellence and innovation. we believe in living on the edge. if we do not live on the edge, we take up way too much space. whenever stopped working with universities and the best talent around the world.
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the second is that we are a recipient of those public and private foundlings. been01, we would've e --rupt if it wasn't before if the was not for a grant, we would not be here today. we were able to take the company and attract private funding. we are a d.c.-backed company. that funding allowed us to achieve consistent high growth and profitability even in a difficult economic conditions. two years ago, when the market crashed, we made a bold, strategic move. instead of having jobs here and hiring lower-cost people
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overseas, we closed china, hungary, germany, and moved all of our research and development back to the united states. we want to hire people in our own country. we increased our investment in global sales. as a result, even in the most difficult economic conditions, our sales have grown in high double digits. after 2010, our profit grew 160% . we are hiring 20% more employees every year. this year, even the first half year, will hire almost 20% more employees. we don't have space anymore. we need to move into a larger building. a good problem to have. last year i joined the national council advisory council innovation and entrepreneurship
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, two subjects that are dear to my heart. i am very honored to represent small and medium-sized, high- growth companies, as well as women-backed companies. i want to thank the department of commerce and the white house of laws of innovation and technology for listening to us and for creating the very first platform for entrepreneurs to have a voice for policy-making. for all of the on cheaper norris -- for all of the entrepreneurs, there are some grave announcements we have made. jumpstart american and also ncia. don't miss those exciting announcements that will come out today. thank you. [applause] >> thank you. thank you, ping.
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next up is brad felt. you need some startup capital to get going to hurt you also need an ecosystem that is supportive so they can take their idea and build the. brad has been a leader in doing this in a variety of different cities. he will talk what the program and how he can take the notion of incubators and accelerated -- and excel raiders to bring that to -- and accelerators. >> we invest all around the u.s. i have been helping to start companies throughout the country. kin from our friend from "kung fu."
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our goal was to create something tangible for the of entrepreneurial community to rally around. our view was that we needed to create something that engage the on troubadours -- that engage the entrepreneurs to people that had a couple of companies and some successes and some failures, angel investors, all the service providers around the entrepreneur a community. and then entrepreneurs who were retired and figured out what to do next. we became a mentor-driven organization with the goal of integrating all those to different people in the entrepreneurial chain. one of the things that has come out of that, a belief that there are hundreds of cities where significant entrepreneurial
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activity can occur. rather than focus just on very specific areas in the u.s. that are visible, one of the things we can do is focus on enabling entrepreneurship throughout the country in cities big and small. boulder is only one under thousand people. -- boulder is only 100,000 people. today, it is a thriving leader in the tech entrepreneurial ecosystem. you need a clear set of leaders in that community who are entrepreneurs. the entrepreneurs have to be the ones that are driving it in their local communities. they need a long-term view. 20 years is a decent amount of time. i mean 20 years from today, not
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20 years from sometime in the past. a big challenge is that there are four or five years of growth and excitement and activity, and then something happens -- macro global economic climate, downturn, a couple of entrepreneurs who have been leaders moved to hawaii. [laughter] >> it is warmer there. >> cheap shot. the leaders have to do what steve is doing now, continuing to lead the entrepreneurs even after they have been successful. there needs to be things that engage an entire of entrepreneurial community from top to bottom, of any age. this is not just young people and it is not just middle-aged people were just old people. it is anyone.
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this notion that one of the great assets of america is this innovative drive and all the entrepreneurs should be helping each other. anybody who wants to be an entrepreneur should indeed to now. techstars was begun in 2006. it is now in four cities. we are announcing as part of startup america, the techstars network. 60 companies have joined the full network so there are 20 locations that are part of this network. our goal is that within three years to have 5000 mentors mentoring 6000 entrepreneurs that create 25,000 new jobs. we would like to exceed those numbers quite significantly.
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that is nice. let's hear some real on japan a real stories. i wanted to acknowledge some other programs -- let's hear some real entrepreneurial stories. this is not a zero sum game. many overlap is the with group.hstars an extremely exciting first year. expanding opportunities for women-led entrepreneurs. mark, a leader in the fashion and industindustry. the
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