american and i am proud of the united states. and i agree that we need to create jobs, we need to go back to production, we need to produce things in america. but i would like to see, although it is minor, i would like to see it produced in united states of america. >> ok. >> insteadis the south american? is a north america? it is the united states of america that we want. america that we want. >> he is a senior adviser at the white house. he's the ceo of general electric. electric. the package totals about four

under $47 billion. a continuation of a tax cut extending and expanding its third 2012. also a tax holiday for any new employees. it draws from west bloomfield michigan. how long have you been out of a job? >> since last school year. i feel like his plan will help teachers you are thinking about getting out of education did to the constant layoffs and closing of schools. of schools. the morale is so low that i do

not know how effective they can be. >> she is joining us from the democrat's line. >> i thought the speech was wonderful. we have two sides against each other. if we can never come together the president what suggested, we will still have teachers that are teaching. our kids are not learning. you are not learning the same things that they're learning. things that they're learning. if we can together and work hard

to do what the president has suggested, we will be better off as a country. clients senator mitch mcconnell said this is not a job speech but the president's reelection speech. they indicated there would not be a republican response. the president traveled to richmond, va. tomorrow. to further out line. he packed this tonight. in case you missed it, you can check it out online. if is 7:54 our west coast viewers. next is market joining us on the republican line. where do you live?

>> a small town east of the morning -- des moines. he has been unwilling to take ownership of the economy. i say give him what he wants. this is not that much. you say this is the head of his jobs program. with the imaging. he did not pay the taxes. he gave the president everything he wants. it will not get him anywhere. he will try to manipulate the business cycle. it cannot be done. >> thank you. how long have you been out of how long have you been out of four decks >> what did you

to be for your laid-off? do you have any interviews that's correct i am actively looking. i am trying to find something. the prospects in the detroit area are poor. i did this 30 years ago. i do not want to do it again. >> the president was in detroit on monday talking about jobs in the economy. will the ideas where? >> the extensions to credit.

those will last as long as the credits will last. there's no particularly good reason for businessmen to plan to hire more people. everything is going to revert to the way it was on the address. nothing about regulations other than the general situation. these agreements have been on the desk. >> you're talking about colombia and panama? >> ps. -- yes. those could have been adjusted about a speech. as far as being a democrat or republican, i have been

entiredent mighty career. clive thank you for waiting. >> i like the president's speech. i believe what he says. i hate that both parties cannot come together to make a decision. it seems that one is for the rich. one is for the. one is for the. it seems like they could care less about the middle class. >> thank you for the call. there were $447 billion. obama is urging passage of this jobs package. nancy pelosi was sending a

letter to her colleagues asking them to push the republican chair of the committee to ahead. the evening. -- good evening. >> there's also talk about more spending. it seems a more spending. i am a college student. where's my look into the future? where is the actual expansion? it seems that more and more of a socialist movement in my opinion. >> are you optimistic or pessimistic about the future? is look at myan do future.

he wants to make it more socialist ticket. >> when you graduate, what do you want to do? >> i'm still undecided. >> thank you for the call. chicago, how have you been out of 4? >> six months. >> what'd you do before? >> i was a student. i think the speech was very great. i think it could create more jobs. greg thank you for the call. if you miss the speech, it will rebroadcast here. it is also available online at c-span.org. we will continue this tomorrow morning on "washington journal."

we would get his perspective on the president's speech. the president's speech. the cochairs of the commission are a member of the house of representatives. the first session took place on the house side. they are outlining their mission for this commission. c-span is committed to covering them.

[captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2011] >> the joint committee will come to order. if the photographers would please remove themselves. i welcome my colleagues from the house.

my co-chair i think for during to serve on the committee. today's inaugural meeting is for the purpose of organizing the committee. there are two items on the agenda. each have an opportunity to make an opening statement. they will make the rules after which we will adjourn. i wish to announce that my co- chair has agreed to alternate sharing our hearings and meetings perhaps by alphabetical order or some are cherry

criteria. before the chair yields to himself, if they wish to remind all of our guests that any manifestation of approval or disapproval, including the use of signs or placards is a violation of the rules of the house. we wish to thank our guests in advance for their cooperation in maintaining order and decorum. the chair might yield to himself for an opening statement. the late spanish philosopher wrote that those cannot remember the past are condemned to facility. call in 2009, -- and so still it." the world paints a tragic mosaic of high unemployment, currency debasement, civil unrest, lost economic growth, and in extreme cases, the collapse of the nation. this is a path that we in

america do not want to fulfil. unfortunately, when it comes to our own debt crises, the needle on the gauge has entered the red zone. our debt threatens our jobs. speak to any fortune 500 ceo or any small business -- it is clear that our debt hangs with the sword of damocles over their hiring decisions. as one person in my district put it, i know, somehow, someday, i'm going to have to pay for all of this debt, so now is not the time i'm going to take this risk of buying a bunch of new equipment or hiring a bunch of folks.

as his elected representative, how can i possibly ignore such sentiment, especially when i hear it everywhere, and i know it is shared by thousands and thousands of job creators from coast to coast. i hope they would be obvious to all the deficit reduction and a path to fiscal sustainability are themselves a jobs program. secondly, our debt threatens our national defense. no less an authority than the chairman of the joint chiefs of staff, mike mullen has said a call the single biggest threat to our national security is all -- "the single biggest threat to our national security is our nation's debt." in interest rates alone, we are enabling china to buy two jetfighters a week. is it not our public duty to respond to this warning that would be summoned to defeat any other threat to our nation? finally, our debt threatens our children's future. spending has grown from its historic norm of 20% of our economy, to 24%, and it is on a

path to grow to 40% and beyond in they course of a generation. financed through borrowing, interest rates alone would crush our economy. financed through taxes, the tax burden would more than half to double, a burden never dreamed up by the american people and businesses that employ them. should we let this happen, i fear we would be the first generation in america's history to leave the next with less freedom, few opportunities, and a lower standard of living. i will not sit idly by and watched the american dream disappear from my nine-year-old daughter, and my seven-year-old son, and i believe that is a sentiment shared by all my colleagues. so, what exactly is driving our debt? president obama has said "the major driver of all long-term liabilities -- everybody knows it -- is medicare, medicaid, and our health care spending. nothing comes close kirkcaldy,

i agree. the president has also said "-- close." i agree. the president has also said we will run out of money, and we will not be able to sustain that go up. it is not an option to sit by and do nothing. again, i agree. the statements and deficit reduction -- "i had many hopes, i hope we were able to bring about pro-growth tax reform to bring up our revenue, able to prioritize spending, as businesses and families do every day. i hope we are able to reform many different programs in order to make them efficient and effective, but in order to succeed, i know this committee must be primarily about the business of saving and reforming social safety net programs that are not only failing many beneficiaries, but growing broke -- going broke at the same time." i approach our task with a

profound sense of some urgency. our task to achieve $1.5 billion a bipartisan deficit reduction will the be easy, but it is essential. as we proceed, like any other committee in congress, there will be public hearings, ample opportunities for the public to have their opinion heard. like in any other committee of congress, there will be some discussion of members that will not be public, however no public -- no final product will be adopted without ample public notice and a public vote according to the rules. whatever this committee may achieve, i hope we can at least degree it is past time to keep

spending money that we do not have, keep darling 42 cents on the dollar, much from the chinese, and sending the bill to our kids and grandkids. i do not believe this committee alone will solve our nation's debt crisis, but a bipartisan, negotiated a reduction in the growth of our nation's debt would be a wonderful, needed, hopeful step in the right direction. beyond this committee and this congress, when day this generation will be judged. will history record that we wrote the first chapter of america's decline, or will history record that we kept faith with the founding fathers and previous generations and left the next generation with greater blessings of liberty and vaults of limitless opportunities? the choice is ours. but the work begin. -- let the work begin.

the co-chair now yields to the gentle lady from washington, senator murray. >> thank you for agreeing to co- chair this committee, and all of the work you have put into it so far, and of the commitment we have in the coming weeks to put together this challenge in front of us. i want to thank all of our committee members as well. like all of us, i have spent a lot of time this past month traveling around my home state and talking to struggling families. i heard from people from all walks of life, with different challenges, hopes, and ideas, about where we need to go as a nation, but the one question i got from so many of them was what is going on in washington, d.c.? they are worried. many are scared about what the future holds. they are frustrated. if they want this country to works, and they know it can. many are worried the government is broken, and at times it is easy to show their fear. this committee has the opportunity to show the american people we can still come together, put politics aside, and solve a problem that is plaguing our country. we each got into politics for a different reason, but i am quite certain none of us came here to engage in the kind of petty bickering that has dominated the discourse in washington, d.c.,

recently. we might not all agree on the solutions to our problems, or even what the biggest problems are, but i know that everyone of us understand our great nation faces serious challenges. i hear from so many families about the jobs crisis that is devastating the middle-class that we need to work together on as a nation to address. if i hear from businesses that are struggling, especially small businesses that are having a tough time creating the jobs and millions of americans are desperate to fill, and because of this sluggish economy, as well as for structural and policy region -- reasons, our federal government is facing deep short and long-term deficit, and a growing national debt that if left unchecked would be an overwhelming burden handed down to our children and our grandchildren. there is no doubt our country faces deep and serious problems.

the growing national debt will be an overwhelming burden handed down for our children and grandchildren to bear. there is no doubt that our country faces deep and serious problems. i'm confident we can face them together and, stronger. our country has faced greater. we can move beyond them and flourish. that is why i agreed to co-chair the joint committee on deficit reduction. i am proud to work with our members to have shown they are also serious about the challenge in front of us. certainly not because i believe the task where charged with is going to be easy or pain free. it is because i believe we owe

it to the families we represent to finally come together, put their needs first, and work together to find a solution that will put our nation on a solid path forward. this is made up of six democrats and six republicans. we come with their own strong set of principles, believes, and priorities for the country's we love. what none of us will ever betray our principles, there is much more that binds us as americans than divides us. we must all be open to viewpoints of others. i hope we are allowed the room

to come to a balanced agreement. there is broad understanding among the is. job creation is the best way to reduce the deficit and debt. we have some real differences on how to achieve that. we must come together around a plan that can pass the this committee with bipartisan support, passed through both chambers of congress, it gets signed into law, that we can be proud to take to the american people. this will not be one that anyone of us would have written on our own. it will have to include compromises on all sides. we have not been given much time to accomplish this. we're not starting from scratch. we can build on the work of many from both sides of the aisle who worked hard on deficit reduction proposals. now families are looking to this

committee to take those last few steps and get this done. they set at their own kitchen tables making tough choices about their fiscal future. this will not be easy. we can do it. i've a forward to work with my colleagues on this critical and serious task. today we will be discussing a set of rules that i have worked all closely with the rep. i want to echo what he said about them. i am confident they will give the committee the structure they need to get input from experts and members of the public and work together to pass a bipartisan plan that works here. i believe these rules allow us to do that.

we look at how they operate. it has the ability to meet among members to discuss this issue. this product will be public. quite thank you. my chairman recognizes the senator from ohio. >> you have laid out the critical task before us. nothing else has worked. signs are all around us. the bond rating was downgraded for the first time in the history of our country.

an economy burdened by excessive government spending. it does a great job. an economy failing to create jobs such as the government's resources even further. it desecrate the revenue needed to fix the gap. these are the twin challenges of our time. most besmust be addressed. it can be achieved. in must be achieved. they are cutting 3.5 projected spending.

they had to do much more in the past two years. some ask whether it should not be doing more. they're using data. of the next 10 years, the debt is likely to increase by 13 trillion dollars. they can reduce that by about 12% pim. we should aim higher. we should do what is necessary to bring a long stem -- long- term financial stability to the markets. agencies are looking for this. future generations will be inheriting this debt. >> long-term sustainability also means of reaching the 10-year targets is not enough. the quality of reforms matter

more than the quantity over the next 10-shares. this could that to warm -- added to $1.50 trillion i answer that there could be a debate. the long-term deficits projected are caused by rising spending and not declining revenues. even if he were to keep them where they are today, the laws have to be changed for 2001 and 2003, the cbo shows revenues was still exceed the 18% a g.d.p. historical average. spending has already done from his historic average. in future decades, is projected to soar will be on that.

we should aim for structure reform that preserve the entitlement programs and make sure the benefits are there. we can rein in costs that threaten to bankrupt the programs. this doesn't mean we should ignore taxes. we should try to fix the tax code. it can eliminate unjustified tax preferences and encourage savings. a look for to working with my colleagues. >> we now recognize the gentleman from california. >> of light of knowledge are

cochairs along with all my colleague did i would like to acknowledge our cochairs -- i would like to acknowledge my cochairs as long with my colleagues. will we let these cynics carry the day? we should start this process is without limitations. we need to step up and not oucor from the challenge. we must believe failure is not an option. they have been telling this time and time again to put on the same uniform and were not as democrats and republicans but as americans to treat everyone

fairly. there is the job status is as they restore fiscal responsibility. this is the best decade and job creation in a generation. times of change. we must identify the drivers of the deficit and shine a light through any loopholes. these are honest folks you're out there right now looking for an honest day's work.

this is the best way to reduce the deficit, put a millions of americans back to work. we set out to answer any plan does not get in the way of any american willing to work. that is only part of the solution. policies promote economic investment. we can leave our country to find a sound solution to our fiscal troubles. i look forward to working with each and every one of my colleagues for a solution. let's get to it. >> a thank you. we now recognize the gentleman from michigan.

>> thank you. the problem is obvious. too few private sector jobs are being created. a quick look at the facts show this committee has its work cut out for it. there's zero net jobs created in the month of august. 40 million americans remain out of work. the total debt for fiscal year 2010 and reached $13.60 trillion. it is growing at an astronomical and unsustainable rate. the debt will exceed our gdp this year. this current debt to gdp

ratio has are the costs as 1 million jobs. the seven decades in the making. its reacts to the necessary and unknowns solutions. washington has over promised and underperformed. it takes another step sarcoid making get back on track. as i stated, the final product must be looked at their job creation. will the recommendations we make help or hurt? >> will the gentleman suspend until the disturbances taking care of?

[unintelligable chanting] >> if the staff will please shut the doors. [unintelligible chanting]

[unintelligible chancing]

houle [unintelligible chanting] >> if the staff to the best of their ability shut the door and we will continue our proceedings. the chair believes the american people want to see this committee 60's. if members could speak a little more loudly.

the chair recognizes the gentleman from michigan. >> i did not mean for my remarks to empty the room. let me continue by saying that by reducing the burden it places on employers, we can help get the country back on track. comprehensive tax reform would spur economic growth and should be part of our discussion. this is daunting. it does not lend itself to quick fixes. i urge my colleagues to be bold and focus on the short-term and long-term impact. while i am not naive, i am optimistic we can succeed. i look forward to working with you on the committee. >> the chair now recognizes the gentleman from montana, senator baucus. >> we could not hear

representative camp. >> i will make sure you get a copy of my remarks. >> we call this room at the big house. we're getting ready for the night game against notre dame. >> i do not know when the disturbance in the hallway will of so of like for us to proceed to the american people can hear our statements. it is being recorded. >> when i was in montana and climbing on a mountain, about 10,500 feet high up. myself on rank. he asked if i wanted to be on this committee.

i got off the mountain. in the years i've been in public service, i've never seen so many people say the exact same thing to me with such enthusiasm. we're glad you're on the committee. we feel sorry for you. it is a big task. we wish you the very best. it has to be accomplished. in that expresses a lot of wisdom of the american people. we have a huge problem ahead of us. have a couple of points. i think that we should aim higher rather than lower. it goes with reducing the deficit. i think we should try to do more. we will be able to get our fiscal house in order.

we also must recognize ithat we are at a real crossroads. the country is looking at us. consumers are looking at us. there's a lot of uncertainty in the world today. if we can get our act together, this will address a lot of the uncertainty that existed. they're asking is not to treat the jobs they wanted us to create. we have to balance is. we have to be fair. many groups saw a lot of ground. people worked hard for people

trying to solve that problem. we clearly should take advantage of their work. since the commission there is an egregious cry for jobs. more jobs means more growth. more growth means more revenue. we asked our colleagues -- lyndon johnson has said that one cannot solve very much by oneself. it takes cooperation and working together. you'll only do what the american people want us to do if we work together and keep our eye on the

ball and not get distracted and a deep. thank you. >> the chair now recognizes the gentleman from pennsylvania. >> thank you. several of my colleagues have addressed the magnitude of this problem. it is huge. it is my hope our response of a commiserated. the mess we are and threatens our livelihoods and prosperity. we have an extraordinary opportunity to do something about it, to begin to put our government on a sustainable fiscal half in a way that will encourage economic growth in the job creation we know we badly need. the challenge calls for a bold response. we could use to nibble around the edge of the problem and look

for obsolete programs. we need to do that. it might need to be that it will add up to $1.50 trillion. but that is all we do, then i would suggest we would not be doing all that is necessary to press on a pro-growth sustainable path. if we're going to meet the challenge we face, we need to address the big entitlement programs that we know are driving this fiscal problem. it is that easy for any of us. it means we would have to make real changes. we can put them on a bible and sustainable path. we can only do it in a bipartisan fashion. this is a big opportunity.

when the two mechanize economic growth and job creation. if we can find a way to create policies that will encourage an old-growth and expand just one% per year faster than it otherwise would, that generates $3 trillion in additional revenue. how do we do this? i would observe cutting spending and reducing the deficit. it removes the chilling affect that obsessive deficits have. it has lower marginal rates. it would encourage economic growth. both parties are guilty of giving it to the point where it is now.

we have credits that are bad policies. they can pay little or no income taxes. and the 20 to wipe out the special interest players. it does generate more revenue, and jobs. it is a big challenge a face fierce -- challenge we face. >> it is a roeal pleasure for me to join me.

enthusiastic reaction to my constituents and others has caused me to reflect on having been growing up in a passage. we're not the chosen 12. i enter these deliberations with a clear vision and the willingness to find common ground. if the distance between me and an opponent is five steps, i do not mind taking three of them. i am hoping we will not allow our political differences to get in the way of economic common sense.

there is an unemployment rate of 17.5%. the three neighboring counties have jobless rates ranging from 70 to 19.8%. people did not want to hear a lot about fancy washington talk. they wanted to hear about jobs. they want the government to work. we need to make budget cuts. it does not need to be accompanied by cutting social services.

it is just plain wrong. it to squeeze in the middle class. we need to work together to address is an urgent priorities. economic fairness and common sense call for reducing inequities and closing unfair loopholes. it should be intertwined into a strong code of job creation and tax reforms. neither one of them was sufficiently restored.

they comment on us to work together and get the job done. >> thank you. >> thank you. i want to thank the two chairs for their leadership in a few short weeks since this panel was named. as the to both of you there out august. i appreciate the quick action. we will take all the other the physical steps to allow us to hit the ground running. i spent all last month at home in michigan meeting with my constituents and in all the things we do. they built their on american trade. our state produce some of the world's greatest inventions.

it was an economics of. manufacturing jobs have disappeared. more jobs have disappeared because of economic uncertainty. i do not think any state is that more -- is at more -- is more at stake. it puts us on a long-term fiscal footing. removing economic uncertainty will help spur job growth. if i heard one thing consistently it was this. the american people want us to succeed. this is not an easy one. all of us were sent to do what

was night for the nation. american people know how high the stakes are. let me read you something from this week's national journal. for the first 10 months, revenues are up about eight% over last year. spending has risen less than 10%. taxes. even the congress cuts payroll taxes. the good news ends there. economic growth slowed to a crawl. the economy will grow less than suzanne. if it turns out to be right, the deficit will be hundreds of billions of dollars. cutting spending is essential to

jump-start our economy. if we do not succeed, we risk further damage to our credit rating. both of these will worsen the cycle. my goal is to begin by seeking common ground. every taxpayer dollar that we spend, every program on the books -- are we spending the people's money wisely? are we supporting judd gregg? >> thank you. we now recognize the gentleman from massachusetts.

quite they saw -- >> they said we shall see the the the only affect the short-term and long- term fiscal imbalance of the federal government. they reduced it by least $1.50 trillion. the only way to meet this challenge is to achieve a larger achievement that grows our economy and put america back to work. this comes from the american people. they wonder if we can and desperately want us to sit down like adults and make congress work so that our economy can work again. we're here to examine the

numbers. we also examine our consciousness and beyond narrow consideration and ideology. we also have a jobs deficit. the cannot fix our budget without fixing jobs. we cannot fix jobs without fixing our budget. the world is watching. our strength at home determines our strength in the world. the only need to deal with five countries. america was not one of them. none of us were sent here to except an economic future were the united states is not make the list. less than 13 years if we do not

take significant steps. our government on the be able to fund the interest of our national debt. it has to be funded by any measure. today's fiscal staff is unsustainable. america does cherish a basic set of values. we believe caring for the sick. every young person deserves opportunity. we believe the americans must always prepare for that. we need to grow our economy. some of us were here in the 1980's. we made that decision and committed ourselves. we can do it again.

we can spend thousands of hours to find common ground. them all built a foundation. we do not agree with the proposal. we have to put our shoulder to the will. we can ignore the demands of history. there are determine partisans. these are changes we must sit in. they found common ground.

it is our turn. bipartisan consensus waiting. of the 12 less are willing to sit down and forge it and make it real. this is our mission. that is our charge. i look forward to getting to work. >> we recognize the gentleman from arizona, a senator kyl. >> thank you. i am struck by and suspect by the commonality of views expressed here. they're on hearing the same things. there is a strong connection everyone has acknowledged.

there's hope we can do more. it ms. b on? 2 title -- is there anything on that? it did help in ultimate economic growth. i would like to end with a challenge to my colleagues and an admonition to those who think this will be easy. i have been involved in three different sessions and discussions, and having gone through all of that, and having seen how difficult it is to reach an agreement, i think a dose of realism is called for here. this is tedious, a time- consuming work, and it is going to require going through a lot

of budget numbers line by line. we have already had a lot of hearings in both the house and senate. it is time, i think, for us to get down to the hard decisions that are required for as to go through those line by line items. as chairman marie pointed out, the time is short as well, which complicates our job. not only must we act by november 23rd, but we have to have anything that we would make public 48 hours in advance, the cbo must score everything, and that can take weeks based on some of the complicated things that we must do, so the reality is we really have to act by sometime -- by the end of october, realistically, which means we essentially have about six weeks to construct our package. this is a long way of saying that we're only going to succeed if we can avoid by partisanship and try to limit the demands on the committee, as well as the

staff, so that we can collectively work to achieve this goal. the more demands that are made on the committee and its membership, the more challenging it would be. it is true, as my colleague said, the american people want us to succeed. i'm going to do everything within my power to succeed within this challenge that the american people and our colleagues have laid before us. the future of our country is at stake. >> thank you. the chair now recognizes the gentleman from maryland. >> thank you. before i make a few remarks, i ask unanimous consent to give our colleague, mr. camp, a brief opportunity to complete his remarks. >> without his -- without objection. >> i appreciate the sentiment. i do not think that will be necessary. when i have to say, i will post online. i appreciate the sentiment, i will yield back. >> the domain from maryland is recognized. >> thank you.

i join my colleagues here today and recognizing that we have a big responsibility to the american people, a responsibility to meet the twin challenges of doing everything in our power to put americans back to work and put america on a steady, predictable path to deficit and debt reduction. these are not competing goals. they overlap. every day that the economy is stalled is another day that the american people are hurting and another day that the deficit is growing. so the quickest, most effective way to reduce the deficit in the short term is to help pro jobs -- help grow jobs. indeed, the cbo has projected that for each one-tenth of 1% increase in gdp over the next decade, we reduce the deficit by about $310 billion. the biggest obstacle to economic growth rate now is weak consumer demand. it is simple. businesses are not going to hire employees unless they have customers for their goods and services. i know the american people are

looking forward to the president's jobs plan tonight, and the president is going to need a partner in congress to get the economy back on track. i hope we will work with him in a bipartisan fashion to do just that. getting the economy moving again is just part of the solution. it will not in itself reduce the deficit. we know that. it must be coupled with a credible deficit reduction plan. the good news, as my colleague from massachusetts said, is we do not have to start from scratch. we have two recent bipartisan commissions as well as the work of the gang of six that have provided a framework for the general approach we can take. i do not agree with every proposal made by these groups and i know they're probably none of us do, but they do provide some overall scaffolding in the framework for serious deficit reduction plans. the bipartisan commission's have several things in common. first, they warn against any action that could harm the economy. they recommend boosting consumer

demand. second, they attack the long- term deficit challenge from both the spending and revenue size of the equation. they take a balanced approach. they recognize that we need to modernize certain programs to achieve savings. they also recognize that we need to simplify and change the tax code by cutting the pork and removing the benefits for a slew of special interests. we have just 77 days left to complete our work. the clock is ticking. there are plenty of ideas out there for reducing the deficit that have been thoroughly debated, and we have a menu of options. i think all of us would agree that if the committee were to fail -- and i am confident it will not -- but it would not be for a lack of ideas, but for a lack of political will. there are some who believe that the next election will somehow bring about a huge new political alignment that will either allow

republicans or democrats to get 100% of what they won in the way they wanted. both party suffer from that illusion from time to time. it is a dangerous illusion that will put the long-term economic health of our nation at risk. it is time for both sides to bite the bullet, to put the country first, to get the economy moving, and to implement a long-term deficit- reduction plan. i stand ready to reach a reasonable compromise for the good of the country. compromise is not a dirty word. it is the difference between a divided government that works and a dysfunctional government that does not. this sunday, we all know, march the 10th anniversary of the awful day when we were attacked. in the aftermath of that awful september day, our nation showed its true character as we rally together to meet a common challenge. we must unite now to put america back to work, to get our fiscal house in order, and to ensure a brighter future for our children

and our country. thank you mr. chair. >> thank you. the chair now calls on the rules of the joint committee and asks the clerk to report. >> propose rules on the joint committee of deficit-reduction. without objection, the first reading of the rules is dispensed with. the rules will be open for amendment at any point. so ordered, the chair recognizes himself. i think as all members know, these rules were negotiated on a bipartisan basis. they're designed to comport to the rules of the standing committees of the house with those of the senate to ensure that this body can operate as closely as possible to any standing committee of either body. i urge their adoption and i yield back. is there any other discussion of

the proposed joint committee rules? >> mr. chairman. >> the chair recognizes the co- chaired. >> i do want to enter into colloquy to discuss the meaning of the term meeting as discussed in these rules. rolled to 11 of the house and rule 26 of the standing rules of the senate provide for the immediate transaction of business which includes markups of legislation and reports. the house and senate rules provide similar transparency requirements for those meetings as we have proposed in the rule of the joint select committee. i want to clarify that the use of the term meeting in these roles has the same traditional use -- traditional meaning as in both houses and is not have any meetings that would not be covered by the house and senate rules in a normal, ordinary court. >> if the gentle lady will yield, the distinguished co- chair is correct. that reflects our understanding

as we have been working on this particular rules package. is there any other discussion of the rules package? >> mr. chairman. >> the gentleman from maryland is recognized. >> would this be the appropriate time to inquire about the hearing schedule? >> the gentleman -- >> thank you. i know we have our first hearing scheduled for next week. i know we also have a requirement appropriately that we have one week's notice before hearings. i know the could-chairs are now involved in trying to decide what the -- co-chairs are now involved in trying to decide what the hearing schedule would be. i just want to underscore a point that a couple of us made. a number of us on both sides referenced the work of thattisan commission's

have met within the last year. we have some symbols, a diminishing and the gang of six. -- simpson-bowles, diminichi and the gang of six. given the time constraints, i would suggest we use their input, because they spend a lot longer than we have to address these issues and they can provide some guidance. i would inquire what the status of putting together the hearing schedule is. >> the code-chair and i have been working through a series -- co-chair and i have been working through a series of proposals.

we hope to have a proposal to all of our members very quickly. we will be working through that. the seven-day notice obviously puts intense pressure on us. we will be working through that and we intend to get to all of our committee members as quickly as possible our proposal for hearings. >> i certainly associate myself with my cochairs remarks. does the gentleman yield back? is there further discussion on the rules package? if there is no further discussion, the question now workers on favorable reporting of the rules. all those in favor? those opposed? the ayes have it and the rules are favorably reported. without objection, staff is authorized to make technical and conforming changes to the rules approved by the joint committee today. so ordered, the joint committee now stands adjourned. [captioning performed by national captioning institute]

[captions copyright national cable satellite corp. 2011]

>> in a few moments, federal reserve chairman ben bernanke says lawmakers need to come up with a long-term plan for deficit reduction and avoid short-term cuts that may hurt economic growth. in a little more than half an hour, an update on how terrorist finances have been disrupted since the 9-11 attacks, including comments from treasury secretary timothy geithner. after that, president obama's

job speech to congress. >> the day after the 9-11 terrorist attacks, this weekend on american history tv on c- span. senate floor speeches from september 12th from senators schumer, clinton, warner and alan. artifacts from the smithsonian, recovered objects from new york, the pentagon, and pennsylvania. also this weekend, from lectures and history, northwestern univ. prof. on how a societal changes in the first half of the 19th century led to the birth of the women's rights movement. get the complete schedule at c- span.org, or get our schedule e- mail directly to you. >> fed chairman ben bernanke says that at the september 21st meeting, the federal reserve board will consider new steps to promote economic growth. mr. bernanke also said lawmakers

need to come up with a long-term plan for deficit reduction and avoid short-term cuts that may hurt economic growth. this is a little more than a half hour. >> press is very much. -- thank you very much. thank you for that very nice introduction. i am very happy to be back in minneapolis. good afternoon. i am delighted to be in the twin cities and would like to thank the economic club of minnesota for inviting me to kick off its 2011-2012 speaker series. today i will provide a brief overview of the u.s. economic outlook and conclude with a few thoughts on monetary policy and on the longer-term prospects for our economy. in discussing the prospects for the economy and for policy in the near term, it bears

recalling briefly how we got here. the financial crisis that gripped global markets in 2008 and 2009 was more severe than any since the great depression. economic policymakers around the world saw the mounting risks of a global financial meltdown in the fall of 2008 and understood the extraordinarily dire economic consequences that such an event could have. governments and central banks consequently worked forcefully and in close coordination to avert the looming collapse. the actions to stabilize the financial system were accompanied, both in the united states and abroad, by substantial monetary and fiscal stimulus. despite these strong and concerted efforts, severe damage to the global economy could not be avoided. the freezing of credit, the sharp drops in asset prices, dysfunction in financial markets, and the resulting blows to confidence sent global production and trade into free

fall in late 2008 and early 2009. it has been almost exactly three years since the beginning of the most intense phase of the financial crisis, in the late summer and fall of 2008, and a bit more than two years since the official beginning of the economic recovery, in june 2009, as determined by the national bureau of economic research's business cycle dating committee. where do we stand? there have been some positive developments over the past few years. in the financial sphere, our banking system and financial markets are significantly stronger and more stable. credit availability has improved for many borrowers, though it remains tight in categoriessuch as small business lendingin which the balance sheets and income prospects of potential borrowers remain impaired. importantly, given the sources of the crisis, structural reform is moving forward in the financial sector, with ambitious domestic and international efforts under way

to enhance financial regulation and supervision, especially for the largest and systemically most important financial institutions. nevertheless, it is clear that the recovery from the crisis has been much less robust than we had hoped. from recent comprehensive revisions of government economic data, we have learned that the recession was even deeper and the recovery weaker than we had previously thought; indeed, aggregate output in the united states still has not returned to the level that it had attained before the crisis. importantly, economic growth over the past two years has, for the most part, been at rates insufficient to achieve sustained reductions in the unemployment rate, which has recently been fluctuating a bit above 9 percent. the pattern of sluggish economic growth was particularly evident in the first half of this year, with real gross domestic product [gdp] estimated to have increased at an annual rate of less than 1 percent, on average, in the first and

second quarters. some of this weakness can be attributed to temporary factors, including the strains put on consumer and business budgets by the run-ups earlier this year in the prices of oil and other commodities and the effects of the disaster in japan on global supply chains and production. accordingly, with commodity prices coming off their highs and manufacturers' problems with supply chains well along toward resolution, growth in the second half looks likely to pick up. however, the incoming data suggest that other, more persistent factors also have been holding back the recovery. consequently, as noted in its statement following the august meeting, the federal open market committee [fomc] now expects a somewhat slower pace of recovery over coming quarters than it did at the time of the june meeting, with greater downside risks to the economic outlook. one striking aspect of the recovery is the unusual weakness in household spending.

after contracting very sharply during the recession, consumer spending expanded moderately through 2010, only to decelerate in the first half of 2011. the temporary factors i mentioned earlierthe rise in commodity prices, which has hurt households' purchasing power, and the disruption in manufacturing following the japanese disaster, which reduced auto availability and hence salesare partial explanations for this deceleration. but households are struggling with other important headwinds as well, including the persistently high level of unemployment, slow gains in wages for those who remain employed, falling house prices, and debt burdens that remain high for many, notwithstanding that households, in the aggregate, have been saving more and borrowing less. even taking into account the many financial pressures they face, households seem exceptionally cautious.

indeed, readings on consumer confidence have fallen substantially in recent months as people have become more pessimistic about both economic conditions and their own financial prospects. compared with the household sector, the business sector generally presents a more upbeat picture. manufacturing production has risen nearly 15 percent since its trough, driven importantly by growth in exports. indeed, the u.s. trade deficit has narrowed substantially relative to where it was before the crisis, reflecting in part the improved competitiveness of u.s. goods and services. business investment in equipment and software has also continued to expand. corporate balance sheets are healthy, and although corporate bond markets have tightened somewhat of late, companies with access to the bond markets have generally had little difficulty obtaining credit on favorable terms. but problems are evident in the business sector as well:

business investment in nonresidential structures, such as office buildings, factories, and shopping malls, has remained at a low level, held back by elevated vacancy rates at existing properties and difficulties, in some cases, in obtaining construction loans. also, some business surveys, including those conducted by the federal reserve system, point to weaker conditions recently, with businesses reporting slower growth in production, new orders, and employment. why has this recovery been so slow and erratic? historically, recessions have tended to sow the seeds of their own recoveries as reduced spending on investment, housing, and consumer durables generates pent-up demand. as the business cycle bottoms out and confidence returns, this pent-up demand, often augmented by the effects of stimulative monetary and fiscal policies, is met through increased production and hiring. increased production in turn boosts business revenues and increased hiring raises household incomesproviding further impetus to business and household spending.

improving income prospects and balance sheets also make households and businesses more creditworthy, and financial institutions become more willing to lend. normally, these developments create a virtuous circle of rising incomes and profits, more-supportive financial and credit conditions, and lower uncertainty, allowing the process of recovery to develop momentum. these restorative forces are at work today, and they will continue to promote recovery over time. unfortunately, the recession, besides being extraordinarily severe as well as global in scope, was also unusual in being associated with both a very deep slump in the housing market and a historic financial crisis. these two features of the downturn, individually and in combination, have acted to slow the natural recovery process. notably, the housing sector has been a significant driver of recovery from most recessions

in the united states since world war ii, but this timewith an overhang of distressed and foreclosed properties, tight credit conditions for builders and potential homebuyers, and ongoing concerns by both potential borrowers and lenders about continued house price declinesthe rate of new home construction has remained at less than one-third of its pre- crisis peak. depressed construction also has hurt providers of a wide range of goods and services related to housing and homebuilding, such as the household appliance and home furnishing industries. moreover, even as tight credit for builders and potential homebuyers has been one of the factors restraining the housing recovery, the weak housing market has in turn adversely affected financial markets and the flow of credit. for example, the sharp declines in house prices in some areas have left many homeowners "underwater" on their mortgages, creating financial hardship for households and, through their effects on rates of mortgage delinquency and

default, stress for financial institutions as well. as i noted, the financial crisis of 2008 and 2009 played a central role in sparking the global recession. a great deal has been and continues to be done to address the causes and effects of the crisis, including extensive financial reforms. however, although banking and financial conditions in the united states have improved significantly since the depths of the crisis, financial stress continues to be a significant drag on the recovery, both here and abroad. this drag has become particularly evident in recent months, as bouts of sharp volatility and risk aversion in markets have reemerged in reaction to concerns about european sovereign debts and related strains as well as developments associated with the u.s. fiscal situation, including last month's downgrade of the u.s. long-term credit rating by one of the major ratings agencies and the recent controversy surrounding the raising of the u.s. federal

debt ceiling. it is difficult to judge how much these events and the associated financial volatility have affected economic activity thus far, but there seems little doubt that they have hurt household and business confidence, and that they pose ongoing risks to growth. while the weakness of the housing sector and continued financial volatility are two key reasons for the frustratingly slow pace of the recovery, other factors also may restrain growth in coming quarters. for example, state and local governments continue to tighten their belts by cutting spending and reducing payrolls in the face of ongoing budgetary pressures, and federal fiscal stimulus is being withdrawn. there is ample room for debate about the appropriate size and role for the government in the longer term, butin the absence of adequate demand from the private sectora substantial fiscal consolidation in the shorter term could add to the headwinds facing economic growth and hiring.

the prospect of an increasing fiscal drag on the economy in the face of an already sluggish recovery highlights one of the many difficult tradeoffs currently faced by fiscal policymakers. as i have emphasized on previous occasions, without significant policy changes to address the increasing fiscal burdens that will be associated with the aging of the population and the ongoing rise in health- care costs, the finances of the federal government will spiral out of control in coming decades, risking severe economic and financial damage. but, while prompt and decisive action to put the federal government's finances on a sustainable trajectory is urgently needed, fiscal policymakers should not, as a consequence, disregard the fragility of the economic recovery. fortunately, the two goalsachieving fiscal sustainability, which is the result of responsible policies set in place for the longer

term, and avoiding creation of fiscal headwinds for the recoveryare not incompatible. acting now to put in place a credible plan for reducing future deficits over the long term, while being attentive to the implications of fiscal choices for the recovery in the near term, can help serve both objectives. let me turn now from the outlook for growth to the outlook for inflation. prices of many commodities, notably oil, increased sharply earlier this year. higher gasoline and food prices translated directly into increased inflation for consumers, and in some cases producers of other goods and services were able to pass through their higher costs to their customers as well. in addition, the global supply disruptions associated with the disaster in japan put upward pressure on motor vehicle prices. as a result of these influences, inflation picked up significantly; over the first half of this year, the price index for personal consumption

expenditures rose at an annual rate of about 3-1/2 percent, compared with an average of less than 1-1/2 percent over the preceding two years. however, inflation is expected to moderate in the coming quarters as these transitory influences wane. in particular, the prices of oil and many other commodities have either leveled off or have come down from their highs. meanwhile, the step-up in automobile production should reduce pressure on car prices. importantly, we see little indication that the higher rate of inflation experienced so far this year has become ingrained in the economy. longer-term inflation expectations have remained stable according to the indicators we monitor, such as the measure of households' longer-term expectations from the thompson reuters/university of michigan survey, the 10-year inflation projections of professional forecasters, and the five-year-forward measure

of inflation compensation derived from yields of inflation-protected treasury securities. in addition to the stability of longer-term inflation expectations, the substantial amount of resource slack that exists in u.s. labor and product markets should continue to have a moderating influence on inflationary pressures. notably, because of ongoing weakness in labor demand over the course of the recovery, nominal wage increases have been roughly offset by productivity gains, leaving the level of unit labor costs close to where it had stood at the onset of the recession. given the large share of labor costs in the production costs of most firms, subdued unit labor costs should be an important restraining influence on inflation. although the fomc expects a moderate recovery to continue and indeed to strengthen over time, the committee has responded to recent developmentsas i have already notedby marking down its outlook for economic growth over coming quarters. the committee also continues to

anticipate that inflation will moderate over time, to a rate at or below the 2 percent or a bit less that most fomc participants consider to be consistent with the committee's dual mandate to promote maximum employment and price stability. given this outlook, the committee decided at its august meeting to provide more specific forward guidance about its expectations for the future path of the federal funds rate. in particular, the statement following the meeting indicated that economic conditionsincluding low rates of resource utilization and a subdued outlook for inflation over the medium runare likely to warrant exceptionally low levels for the federal funds rate at least through mid-2013. that is, in what the committee judges to be the most likely scenarios for resource utilization and inflation in the medium term, the target for the federal funds rate would be held at its current low level for at least two more years. in addition to refining our forward guidance, the federal reserve has a range of tools that could be used to provide additional monetary stimulus. we discussed the relative

merits and costs of such tools at our august meeting. my fomc colleagues and i will continue to consider those and other pertinent issues, including, of course, economic and financial developments, at our meeting in september and are prepared to employ these tools as appropriate to promote a stronger economic recovery in a context of price stability. let me conclude with just a few words on the longer-term prospects for our economy. as monetary and fiscal policymakers consider the appropriate policies to address the economy's current weaknesses, it is important to acknowledge its enduring strengths. notwithstanding the trauma of the crisis and the recession, the u.s. economy remains the largest in the world, with a highly diverse mix of industries and a degree of international competitiveness that, if anything, has improved in recent years. our economy retains its traditional advantages of a

strong market orientation, a robust entrepreneurial culture, and flexible capital and labor markets. and our country remains a technological leader, with many of the world's leading research universities and the highest spending on research and development of any nation. thus i do not expect the long- run growth potential of the u.s. economy to be materially affected by the financial crisis and the recession ifand i stress ifour country takes the necessary steps to secure that outcome. economic policymakers face a range of difficult decisions, and every household and business must cope with the stresses and uncertainties that our current situation presents. these are not easy tasks. i have no doubt, however, that those challenges can be met, and that the fundamental strengths of our economy will ultimately reassert themselves. the federal reserve will

certainly do all that it can to help restore high rates of growth and employment in a context of price stability. thank you for your attention today. [applause] >> let me grab the microphone somewhere here. chairman to allow the to stay at the roster to answer these questions. i have been assigned the task of posing questions that have been submitted by others, and i'm going to start with from our co-chair, who many of you may know is also the co-chair of the committee for a responsible federal budget, and therein may lie the nature of his question. his question is this. in your excellent presentation

at jackson hole, you said the country would be well served by a better process for making fiscal decisions. the negotiations that took place over the summer disrupted financial markets and probably the economy as well. here is the conclusion of the question. individuals and groups have had little apparent success with process changes. policy makers do not seem to like change. what form might these policy changes take and can you tell us where we might look for the first signs of possible fed gerald -- federal budget process improvements? >> as i discussed in my speech at jackson hole, fiscal policy is difficult because it involves multiple objectives. first and very importantly, we need to have long-term sustainability. our budget is not on a sustainable path. we need to address that. that is a long-term issue. it is a very important issue.

secondly, as i mentioned in my remarks today, in doing so, we also need to be attentive to what is happening in our economy today. we need to make sure what we do is constructive in terms of what we -- what is happening in our economy. third, we have to make good choices. we have to think about how to invest on the spending side, how to reform and improve our tax code on the revenue side so that our fiscal policies are most conducive to long run growth, and then finally, and very importantly, we have to do this all in a way that is not disruptive to financial markets, as the discussions over the summer did prove to be. we need a better process so that we do not have the same consequences that we saw with a downgrade and with some of the financial volatility that was part of the process this summer. now i am not really going to be able to give you a detailed

recipe for a new fiscal process. of course, that is a priority of congress, but i can make a couple of observations. first of all, as i indicated, fiscal sustainability is a very long run process. it takes a long run out to think about how we're going to address -- outlook to think about how we're going to address the rising costs of health care, pensions, military, and the various parts of our budget. therefore, i hope congress will look at a long horizon and think that the entire horizon in the process. secondly, it is important that there be some kind of guide, some kind of metric. there are many possibilities. one possibility would be the amount of debt outstanding relative to gdp, for example, that there are many other possibilities. but we need to have some

metrics. economists love metrics. we need something to measure our success and failure in terms of actual predictive monetary policy. now, the actual process -- again, i can i get into great detail. we have seen some interesting devices supplied with the super committee, up and down vote, and so on, and i would just point out that there are a number of countries around the world -- switzerland is one example -- where fiscal rules have been in place that have helped provide a framework for policy makers to make it, coherent long-term decisions. i do think it is important that we make our decisions in a way that is not as destructive as it was this last time around, and that will provide a good, sensible fiscal outlook for as the will help our economy both recover from this recession and also to grow in the long term.

>> our second question was submitted by andy of founding properties, elsie. you just spoke to this in part to us now, and also touched on this briefly in your remarks -- in part just now, and also touched on this briefly in your remarks. teaching the volatile markets were a response to the death -- to the downgrade of our credit or to the limited action taken by congress to deal with the deficit? >> i pointed out that the downgrade was really not providing any information. everybody knows what the fiscal

situation is, what needs to be done. in that respect, there was not much new information. treasury interest rates are actually lower today than they were before the downgrade, as though there has not, so far at least, then a permanent effect on our interest costs, although some of the downgrade affects have actually flowed through to some other borrowers besides the u.s. treasury. i think if you listen to what s&p said, they did not make the claim that the u.s. did not have the economic resources to achieve fiscal sustainability. we do. it is not a question of economics. this is a very rich country. i am sure we could find ways to achieve our objectives, have a growing economy and have a sustainable budget. what s&p pointed to was the process. again, they said they were concerned that given the way things have evolved, they were concerned there was not an

adequate political process that would bring about the necessary changes. let me not make light of that in any way. there are real political controversies, obviously, real disagreements, and those need to be worked out, but, you know, we do need to work together to find solutions and to achieve what we know we can achieve, which is a sustainable budget for the u.s. government. >> there is a second part to his question, and i would preface it by saying, respectful of your remarks about the near-term fragility of the economy, he asks if you have a sense of the magnitude of fiscal spending to reductions that should take place in the next 10 years. the super committee has been charged with $1.50 trillion. some groups, including the

committee for is the responsible federal budget have said something closer to $5 trillion or $6 trillion. how do you view that? >> these numbers are numbers that have come from a responsible budget committee, the congressional budget office and so forth. i was not hazard any particular number, but i would say that there is general agreement among all the players, congress, the administration, cdo, outside experts and so on that the steps that were taken while certainly constructive, is only a first step. more will need to be done to create long-term sustainability, but clearly we have to move in that direction. the exact number depends on how quickly we want to stabilize the debt to gdp ratio, one other considerations we have. but the $1.20 trillion or $1.50

trillion, depending on how you measure it, is just one step in the direction of sustainability. >> the third question comes from ronald, and there is a related question that comes from john of northwest equity partners, and i'm going to kind of merge the two because they have to do with fed policy in the value of the dollar. there has been much in the press about the value trend of the u.s. dollar and the potential for other reserve currencies to emerge. this is kind of a two-part question. how important is it to the fed's effectiveness that the u.s. dollar remained the world's primary reserve currency, and do you see the fed changing its position on the dollar to try to strengthen it vis-a-vis other currencies around the globe? >> i would make a general disclaimer that the u.s. treasury speaks for the u.s. government on dollar policy.

i think that is important to say. a couple of comments in response to the question. first of all, the fact that the dollar is the primary reserve currency does provide some benefit to the u.s. economy, makes our interest rates probably a bit lower than they otherwise would be. so there is some effect there. the dollar does remain, by some margin still, the currency in which the majority of international reserves are held. there is, after all, no official reserve currency. it is a choice made by each government, each central bank and each private investor or company. the dollar at this point remains the currency of choice. i suspect that will continue to be the case for some time. a lot of reasons for that, including the underlying strength and vitality of the u.s. economy, but also their importantly, the size, depth and

liquidity of our financial markets, which again, is something we do not want to use. we want as markets to be liquid, reliable, and deep, and the ability to buy, sell, and transact easily is important. that is one of the reasons that the dollar has remained a key currency. the federal reserve's policy is mandated, according to congress, and to address two objectives. one is to promote recovery and reduce unemployment. the second is price ability, that is, in keeping inflation low. those of the objectives that we address. price stability, a low inflation, is saying something about the dollar. low inflation means that the buying power of the dollar

regains stable over time. we have achieved -- the federal reserve generally, not just the current fed, but the federal reserve going back to paul volcker in the mid-80's has maintained a very good record of low and stable inflation, which means stable purchasing power for the dollar in terms of domestic goods and services. low inflation domestically does not always mean immediately that the foreign-exchange value of the dollar will be high or low. that moves according to a whole variety of factors, including how much risk aversion there is in the market, what is happening to our trade balance, and a variety of other things. in the longer term, there is a close connection between our mandate and the value of the dollar, specifically, in the medium term, the value of the dollar depends on two things. it depends on our inflation rate relative to other inflation rates in other countries, and it depends on the strength of our

economy. again, we kept inflation low and inflation in the u.s. has been lower than most countries in the past couple of years. in that town, by keeping inflation low and purchasing power stable, we're going to enhance the dollar. by trying to get the economy back to a point where it can grow and be strong again, that can make the u.s. and attractive destination for investment and that will be the other half of the equation. ultimately, the policy of employment and price stability is consistent with a strong dollar policy and that is the way we think about it. >> i'm going to take the moderator's prerogative to inject a question of my own. there has been publicized in recent weeks the fact that there was dissension on the open market committee and at your recent meeting. may not be any development that

there are disagreements within the committee, but it seems knew that it has become a more public conversation. bomb how do you -- how did you view dissension within the committee and how do think that affects the rest of us? >> there is a reason there is a committee. there are 19 people around the table when we need to discuss monetary policy, and my attitude has always been if two people always agree, one of them is redundant. the reason we have a committee is to bring different points of view and different analytical approaches, a different perceptions of the economy, different views on communication and on strategy, and i have always tried -- i think this is the best way to make policy -- i have tried to encourage both inside and outside debate and discussion about what is the white approach -- right

approach. one thing that is evident is that currently we are in a situation that in many ways is unprecedented. the problems afflicting our economy, the nature of monetary policy given that we have already reduced short-term interest rate close to zero. we have been looking at alternative ways to stimulate the economy. different views on what the problem is, in some sense. so it is natural to have some disagreement. we have different points of the is, there is obviously no hiding that, and i have no desire to hide that. again, i think it is ultimately constructive. i encourage debate and construction. and i would add that i think it is important that when we have these discussions internally it is always with the highest level of collegiality and respect. conversations are extremely cordial, and i think that represents the best that the policy-making community can do,

which is to bring all the points of view together and try to fashion as best we can consensus. that will not always be available, but we will do our best to find a middle ground. >> a closing question submitted by the former ceo of general mills and a member of our economic club board. how would you rate actor paul g. mahdi -- giamatti's portrayal of view of, and for that matter, the portrayal of other principals in the recent movie "too big to fail" ? >> i did not see that movie. i saw the original. [laughter] [applause] i think paul is an excellent actor. i met with him. he asked to come meet with me so i had lunch with him at the

federal reserve. the first thing i found out about him was that his father was the commissioner of baseball. what do you think we talked about all lunch? gregg's i think that will give. help me -- >> i think that will do. tell me thank the chairman bernanke. [applause] >> in a moment, an update on how terrorist finances have been disrupted since the 9-11 attacks. in a little less than an hour, president obama's jobs speech to congress. the super committee is beginning its work on finding more than $1 trillion in cuts. in washington journal tomorrow morning, we will focus on president obama's plans for creating more jobs and the first meeting of the joint deficit- reduction committee. our guest will be tim bishop of new york and ran jenkins, a republican from kansas.

washington journal is live on c- span everyday at 7:00 a.m. eastern. >> book tv features 9/11 authors this weekend. also this weekend on afterwards, pulitzer prize- winning washington post reporter suggests that the federal government efforts to protect america after september 11th are secretive, dangerous, and need to be exposed. she is interviewed by the former undersecretary of defense. also, dick cheney talks about his experiences during 9/11, and the lessons he has learned since then. you can also look for the former vice president interviewed by bob woodward on afterwards. in the complete schedule online. >> treasury secretary timothy

diner and the undersecretary joined the white house terrorism adviser -- timothy geithner and the undersecretary joined the white house terrorism adviser on how finances have been disrupted since the 9/11 attacks. this is a little less than an hour. >> thank you. i want to welcome all of you here today and pay tribute to your work in the work of so many others in helping strengthen our national security. we meet today, of course, in the shadow of a tragedy 10 years past. on september 11th, 2001, our nation suffered an attack that killed thousands and shook the nation. i would like to start by asking all of us to observe a moment of silence in remembrance of that day.

>> those attacks were brutal. they were sophisticated. and they were well funded. in the aftermath of those attacks, our government revamped its national security structure to fight the terrorist threat more effectively. as we begin to fully understand the complexity of al qaeda and other terrorist organizations, it became increasingly clear that it was crucial to disrupt their ability to fund their operations.

well terrorism is very different from conventional military threat, it has something in common. it needs cash, money. two and a half thousand years ago, the greek historian wrote, "war is a matter not so much of arms as of money." two and a half years ago, in a chilling echo of those words, a senior al qaeda leader in afghanistan explained, "without the money, jihad stops." that is why the work of the people in this room and the subject of this symposium are so important. the long arc of treasury's efforts to counter terrorist financing began before 9/11, with the work of secretaries ruben, summers and a meal to combat money laundering. -- rubin, summers and o'neil to

combat money laundering. after 9/11, secretary snowe established the office of terrorism and financial intelligence. president bush appointed stuart levy, his first undersecretary. stuart, together with a remarkably talented group of individuals, build a comprehensive strategy to combat terrorist financing armed with an innovative and powerful set of tools. their accomplishments have fundamentally changed and strengthened the way we fight terrorism. that team, which is led today by david cohen and others, continues to carry on the work that stewart and secretary paulson were instrumental in establishing. let me explain how this noble endeavor works. it brings together four key things, intelligence, targeted

sanctions, international cooperation and private sector engagement. a comprehensive strategy to identify donors, financiers and facilitators of terrorist organizations and to disrupt their ability to fund them. we are obtaining, analyzing and acting on intelligence to constrain the activities of those who would fund terrorism, and to hold them accountable for sanctions. in the harsh -- the harsh and direct consequences of the sanctions have succeeded in deterring crime graders across the globe. -- car robber raiders -- deterring people across the globe. institutions have adopted new standards and there is visible public support for

increased financial transparency. the private sector plays an important role, acting as a key partner. the vigilance of financial institutions to identify and block money for terrorist activities reinforces the ability of governments to target their funders. because of this strategy, donors, financial institutions and facilitators across the world are no longer free to fund and facilitate terrorism. the pool of money is shrinking. it has grown harder to hide and move funds. this is no small accomplishment. tin years ago al qaeda's ability to access it is partitive donors and move money through the system allowed it to carry out the deadliest attack in our country's history.

today they struggle to secure steady financing. it can no longer rely on a thick rolodex. in may, its leader of some loan -- osama bin laden was killed. as al qaeda and other terrorist groups look for new methods to raise and new money, we will continue to develop creative and inspected strategies to stop them. today's forum provides a chance to reflect on the state of the threat.

they receive recognition around the world. it make sure to be an integral part of our nation. as the move forward, credit is owed to many people in the room today into the hundreds of other dedicated and talented people here. they will continue to do so in the years to come. we owe them our gratitude. this is a solemn gratitude. thank you. [applause]

lease to me in thanking them. when al qaeda struck the united states on september 11, 2001, killing thousands, of the american people demanded a swift and powerful response.

to punish those behind the attacks, to leverage all elements of national power. and to make sure nothing like the attacks ever happen again. our military, with the help of our action, destroyed the training camps and shifted the ability to plan, coordinate, and launch another attack. it is understood that more could be done and needed to be done to fight al qaeda including the financial foundations. in the decade since 9/11, of the united states government has undertaken an unprecedented effort to choke off the networks. the strategy ies have placed

departments with in the forefront of the battle to deprive al qaeda of the financial wherewithal to operate. treasury is not alone in this fight. this is surely the whole of government effort involving the state and defense departments comedy law enforcement community. nor is the united states in this fight. we work closely with the u.n. which has an extensive framework. we work closely with dozens of countries, many of whom are represented here this morning, to stop the flow of funds to terrorists. we work closely with the international banking community to prevent them from using the formal financial sector to receive, store, move, and use

funds. i like to share the treasury department's assessment of al qaeda's financial situation. and the last two years, it became clear that al qaeda was encountering financial difficulties. by 2010, we believe they were in the worst financial position in years. we assess that the increasingly precarious situation would not only impair the ability to operate but extend al qaeda in search of new sources of funding. recent intelligence confirms that it devotes efforts to managing the budget. we have learned that al qaeda kept meticulous statements on operating costs such as weapons and salaries.

that amounted to little more than $1. we have learned that al qaeda posed a shaky bottom line attracted the attention of senior leaders who in early 2010 lamented that al qaeda was experiencing great financial hardship. these difficulties are not a theoretical concern for al qaeda's leaders. the shortfall had begun to affect the operational capabilities. new information revealed that al qaeda is not only was stressed financially but it was struggling to allocate funds to execute attacks against the u.s. and western interests. this led al qaeda to explore new avenues. further last year, they were seeking to fund-raiser another method, kidnapping for answers. the picture we have been able to piece together includes good and bad news.

while it was heartening to get confirmation to disrupt the financing from we are reminded that al qaeda remains an innovative and adaptive adversary. we will continue to innovate and adapt as well to maintain the impact we began to see in recent years. with that in mind, let me turn to the key areas where we will be focusing our energy. first and foremost, we will keep the pressure on. the recent death of osama bin laden and others capped off efforts to attack al qaeda and has left it weekend. for us the treasury, that means continuing to concentrate on the support networks. yesterday we designated three cockeyed leaders including al

qaeda commander, the deputy until his death last month. a longtime al qaeda fighter in terms of the terms as early as last year. he was arrested by pakistani authorities. these actions follow a set of designations we announced in july. it runs through i ran into pakistan. it depends on an agreement between al qaeda and the government and allows them to operate. job one is to continue our focus on shutting down the pipeline.

we need other countries to work with us to combat al qaeda, the affiliate's, and other terrorist organizations. this is especially true for kuwait. it has become environments for funders. there's no question that they are strong allies of the united states and that we share many important goals and work closely together on many important initiatives. the fact remains that kuwait is the only country in the gulf that has not penalize the financing. in a mutual evaluation, the imf emphasized that this deficiency hampers the ability to combat financing. although they enacted a good law a year ago, implementation has lagged. the approach taken poses a danger to them into all of us.

we will continue to work with them and urge them to take the necessary steps as others in the region have done over the past decade. as al qaeda of falls and the threat changes, we will continually adapt and expand our efforts to meet this challenge. we are increasing efforts to combat the support network for al qaeda in the arabian peninsula, al-shabab, and others affiliated with al qaeda. attacking these groups financial support gives new challenges.

working with our colleagues and our partners we will devices structures with the way they move money. on emergingng trends and how terrorists raise money. most importantly, the increased use of kidnapping for ransom. it is a critical funding source for al qaeda and the affiliate's. we have information that they have raised tens of millions of dollars since 2008 your kidnapping for operations. it is easy enough to say that no one should pay ransoms. at the personal level, when a colleague our job is being held hostage, it is hard to hear to the no ransoms policy.

few do. turning to kidnapping for ransom. the u.s. government has a policy against paying ransoms. we believe this dissuades some from targeting americans. really a big share we're planning to target mainly europeans and not americans for kidnapping for operations. they believe they would pay ransom by the u.s. government. in addition to bolstering the approach, the community must make kidnapping harder in the first place to improve security measures. we must make it more difficult for groups to move and use that cash. as a sharpen our efforts to continuew ones, we'll

efforts to stay ahead of new ways they store and move money. are growing success in driving them out of the former financial center has led them to rely increasingly on formal methods of moving money. it has sparked an interest in exploiting new technologies and a payment methods. such as storer by you cards in transactions by cell phones. it brings people are around the world into the sector. it is a critically important goal. these new methods also create new vulnerabilities if not adequately covered. as we continue to disrupt specific actors in networks, we will work to build a more transparent financial system with a robust safeguards that

is increasingly inhospitable. as we remember the victims of the 9/11 attacks, this important milestone also provides us with an opportunity to reflect on progress to have made. more so than anyone would have predicted three years ago. this is things to many people in this room the route the treasury department, across the u.s. government and around the world had dedicated their careers to this cause. as a survey the challenges ahead from terrorism to other threats, the effective deployment of financial measures will continue to be central to our strategy and success. i speak for all of my colleagues

when i say we relish the opportunity to use these tools to make our country safer. thank you. and >> thank you for this very kind words. thank you for inviting me to this very distinguished meeting which i am honored to be a part of. my boss called. i can attest to this. his role and value in the counter-terrorism efforts are evident to all of us who work with him. i want to thank the office of

intelligence for the extraordinary work you do to deprive our adversaries of the funds that feel they're dangerous ambitions. you're on the front lines of the fight. carnation is much safer. i want to thank secretary timothy geithner for sponsoring this symposium today. a displeasing to see so many friends and colleagues. i see the color is back in his cheeks. he looks much younger. his clothes are a step up from one u.s. and work. there is life after the government. it is good to see you again. in three days will mark the 10th anniversary of the 9/11 attacks. it is right would take a hard look at the work we have done to disrupt this. of like to summarize the threats we still face.

the death of osama marked a milestone. the be on it, the leadership strings have been decimated. over the past 2.5 years, more bidders have been eliminated in rapid succession since anytime says 9/11. every major affiliate has lost the key leader. more than half of the leadership has been eliminated. al qaeda cotton continues to get pummeled. this is not mark the end of al qaeda or the continued plotzing. the preeminent threat remains outcry debt and its affiliates and its appearance. since of timber 11th, the objective of the united states has been aimed at preventing the recurrence of attacks by al

qaeda on the u.s. comment. they continue to identify operatives overseas and develop new methods to bring them to attack this at home. this was taken root far beyond the leadership. including in the middle east, east africa, central asia, and southeast asia. although each group is unique, they all aspire to advance the regional and global agenda. by attacking u.s. and other interests and of plotting to strike the u.s. homeland. in south asia, they continue to pose a threat from their base of operations. an order to make this comment is a launching pad to carry out attacks against the homelands.

the united states faces today of counter-terrorism unit. the direct threats posed and the large volume of financial support from individuals that flow from backup region to other ones. i want to emphasize the severing the pipelines is a major counter-terrorism priority. in northwest africa, it has shifted its activity it to the relatives say haven'safe haven. the tactic not only endangers taurus the supplies them with an influx of cash. al qaeda seats to inspire

conflict against the united states. al qaeda has had some success in rallying in the villages. in addition to plus directed and plan from overseas, the appearance, individuals who are there are engaged in terrorism. other organizations continue to threaten u.s. national security interests. they seek to undermine the security and stability of allies. or engage in other activities that amenable to u.s. ones. we receive the support from the government of a run. it has an expansive organization.

hezbollah receive support from iran and supplement its budget through drug and criminal activities as well as remittances from sympathizers. this backing helps fund the global terrorist operation, security, and weapon system. it allows them to increase their political influence. it is with in this environment that the administration developed the counter-terrorism from where. our national strategy is clear. our goal is to disrupt, dismantle, and defeat al qaeda and allies. in june we released the strategy. this strategy is just one part of president obama's larger security strategy. our policies do not define our form policy.

they are vital and reinforcing elements of our broader national security interests. our counter-terrorism efforts are essential to keeping them safe and secure. when it the key objectives is to deprive terrorists of their finances. our strategy set out u.s. policy to expand and enhance efforts to block the flow of financial resources to and among terrorist groups and to disrupt facilitation and support activities. pursuing prosecution to enforce prosecution. our efforts include a wide range of activities. collectively, our activities seek to use all elements of power to sever the funding. it disrupts the ability to raise

in move material support stock, prevent terrorist of use of systems and of the charitable sector. improve cooperation with partnering countries. improve our insight into tears finances and activities. in pursuit of these objectives, we have made important progress in combating this. since 2001, the united states and partners have put relentless pressure on al qaeda and reducing the reporters to the group and inflicting severe the give leadership losses. no doubt where making it harder for them to find and apply operatives around the world. we're making it harder for them to use money, all of which makes it much more difficult and much

more time consuming to carry out attacks. the arabian peninsula is the most important source for oxide and its affiliates. will it to our partners in the region to take the lead with u.s. support and insistence rigid and assistance. progress has been made by our partners. for that we of gratitude. unfortunately, lots of countries in the region have made the same commitment to prioritizing terrorism finance. they remain relatively permissive for all the answers and facilitators. we seek stronger engagement with them on other groups that are fund-raising in these gulf

nations. we will continue to push for actions by these government xbox. -- by these governments. reacting to the core finance of difficulties and the affiliate's have required less support as they plan am out terrorism attacks care of the court continues to revise strategic guidance, some have turned to crime to generate funding, particularly kidnapping for ransom. and at times drug-trafficking. the use of kidnapping reflects a broader concern about the crime. we have concerns that as they come under more pressure they will turn increasingly to criminal networks to facilitate their operations. this is an issue that the president feels strongly about.

they continue to feel the forces of terrorism. this is something the president has raised on numerous occasions fed ransom payments only make them more of a threat. the nexus of crime and corruption is extremely worrisome. bakery new findings. they continue to have sufficient resources to sustain the training infrastructure, conduct the tax as well as against the united states. on the multilateral front, we have worked to halt funding to terrorist networks and individual terrorists who the chansons raising -- who the regime was 1267.

it is amenable to finance years under 1267. the regime came under attack because of increased judicial scrutiny particularly in europe. it is not provide adequate due process. we have worked diligently with our partners on the security council, for to fill with those in europe to seek a solution. these culminated in june. this strengthened the mandate of the committee to respond to criticism about the fairness and transparency. going for, we hope to see the european union established mechanisms that are able to withstand the european due

process concerns. many terrorist networks including home loss and hezbollah have established legitimate charities and exploited legitimate ones. the united states has taken action. it freezes the assets under u.s. jurisdiction and prevents them from doing business. i want to be very clear. while government actions with respect to charities have been infrequent, they have had unintended killing effects on well-intentioned done activity. president obama acknowledged this in his speech in cairo. we are working with muslim americans to increase awareness of existing policy and remove unnecessary hurdles.

finally, i would note that our efforts to combat the financing are shaped by strategic events. in the last seven months, we have witnessed extraordinary political change sweep across the middle east and north africa. it is the most profound change in modern history. al qaeda has been left on the sidelines watching history passed them by. president obama has placed the united states on the right side of history, pledging our support for the universal human rights that people in the region are demanding. these come with both opportunities and risks. we will have to remain vigilant to make sure that it does not create new opportunities for tears financiers'. we must make sure we're able to take advantage of these new

opportunities to continue our efforts against the finance years. i would like to say a word about the evolution of the community. what started as an analytic niche has evolved into a flu bonn -- full-blown the community. these dedicated experts have proven the power of financial intelligence. this has given us insight and understanding of terrorist networks as never before. it has helped expose the inner workings and intentions.

a decade after september 11, and the finance commitee continues to evolve and thrive. for this year, he established a new manager. this new position will coordinate the activity across all national security threats. our progress is the result of many people spanning many years working hard. they include the distinguished ones here today.

it also includes a multitude of experts and institutions who had a novel idea of the destruction that finances. they protect our citizens from attacks. it is a told the president obama and his evisceration rely upon. i want to think secretary geithner. he is participating in this important event.

thank you. [applause] >> the day after the 9/11 terrorist attacks. this weekend on american history television. on american artifacts from the american history museum. also this weekend, and northwestern professor of how societal changes in the first half of the century led to the birth of the women's rights movement. if the complete schedule c- span.org/history.

this feature's 9/11 authors. sunday. polishthe washington pres reporters as they are secretive and dangerous and need to be exposed. she is interviewed by douglas. also in my time, a political memoir. it can also look for the former vice presidents. find our complete schedule online. >> president obama outlined his plans to create new jobs through a joint session of congress. you'll see the speech in about 20 minutes.

leading up to that, we will show you some members of congress said about the president's proposal. >> come on over. >> 0 been they would bring fresh ideas. this sounds like another stimulus package. we have over a ninth term unemployment in this country. we're looking for more details. overall, i'm disappointed that we're trying to do the same thing.

>> he talked a little bit about this. they have these job killing regulation that are spewing out of this administration. it is just a portion of the new dodge/freight bill. it only takes 7 million hours to build the empire state building. it is not for fuel that can go out and create jobs. they have new regulations. that it be a sign from where he is thinking? >> that is a good start. we like to see and do more this kind of things. this is a piece of regulation that was lent to stifle energy

production. this is not as bad as the rest of the country. there are rebuilding places where bridges are falling down penn is there's a real bill legacy in doing that? -- bridges are falling down. is there some robert shiller real ability in doing that act like to have to say with inner moons -- mike bac? we have to stay within our means. it can take three, four, or five years to get a highway project permited. if the president wanted to do something positive he could help us fast track it. >> it is one thing to say something. the other is to take positive

action. >> thank you peerin. >> the president mentioned an experimental jobs program more folks are unemployed can get new skills and mentioned that. how is that working? d think it can work and national level? >> the program was started by her secretary. initially it was for no pay. it is a voluntary program. the partner with companies to work six or eight months.

they showed up early. they stay late. i think this is a good thought. it is the perfect. i was pleased to hear him reference the program. needs is working well. >> do you think the president's goals on job creation and the tax plans are feasible? do you think something will pass? >> he said he passes now. what he did not say is it is for under $47 billion. as more than half of the original stimulus at that past.

the other thing he didn't say is how much additional taxation in regard to the so-called rich. it would have been if you would have come in and said i'm full of balance been i'm standing here tonight. i'm going to endorse a balanced budget amendment. >> what about the extension? >> the part of that i did that is that they would get the payroll tax extension. we did cut in half for the next year. only if they hired additional workers and understand people looking at that closely.

he was not very specific of that. there is a lot on said. the devil is in the details. if yes said let's pass the amendment, and he said we will extend the tax cuts for everybody, we will not let them expire, this is not the time to raise taxes on anybody. let's create the jobs in a rising tide. especially the folks of the middle class. >> thank you for being with us. >> thank you for being with us. >> thank you. >> what did you hear in the speech that he liked? rousing speech.utin

he talks about jobs and economic recovery. we will get more detail to follow. it was on the unemployed. we have lots of those in ohio. some mention next of helping our people. i would be so worried about them. it is paid for. they are willing to fight for his ideas across the country. i was glad to hear that. >> the president said he would fill in more details. how you feel? this is good to be a big help to small businesses that hire and individuals who will be able to have less taxes to pay. he also made a reference to those who have done quite well.

they need to shoulder of for the republic. we expect they will give more efforts. unless you get people back to work, you're not lenticel the deficit problem. do you know how much this yields bac? begins at the dollar and 57 cents. is much more than tax credits. the focus is right. he is embracing the whole country. i thought his whole spirit was 1000 per cent. he is willing to buy for its.

>> what is the unemployment situation in your district? >> it is over 9%. we of chronic unemployment. we are producing one of the most fuel-efficient american peoples. our industries are picking up. the conceit the pieces. is one of the homes. we are trying here we cannot do about the federal government. the president and the congress is pulling with us. i'm excited. i wanted him to talk about jobs. i am very happy.

>> thank you for joining us. >> thank you. how're you? >> i am very well. >> what is your reaction to the president's speech? >> i think he laid out a very common-sense plan to create millions of american jobs. it makes sense. he took ideas from the republicans and democrats, put it in one piece of legislation and said do your work. we have had six weeks. where are the jobs? where suffering at home. help us save our homes.

he touches on the chronically unemployed, teachers were about to lose their jobs. it is a very common-sense plan that we as a congress need to embrace. >> what about the politics of getting it through the house that is what will look like? >> i hope that everyone heard what he had to say. the american people do not have 14 months to wait. they do not have time to settle our differences. they want us to do the american people's work. we help them rebuild our infrastructure and fix our old school building, rebuild our highways and bridges. that is what we should be focused on.

i've heard it from my business people also. as the present state it, he found five under for to 500 regulations that could be revised. i'm willing to look at that and determine what can happen without compromising the other things that impact our society. >> thank you. >> thank you for being here. >> my pleasure. >> what you think of the speech this evening? >> i was so proud of the practicality and urgency. i think that calling on americans for their resilience

and string to stand behind this is jump start it. a is a jolt to our economy. -- is a jolt to our economy. i think he is exactly right. i hope the american people will be able to convince the republican to set their most of the speech. >> this is a different sort of job speech. we'll talk about bringing jobs. mentionnot really any of green jobs. >> we talk about repairing our schools, a lot had a problem with all types of toxic things in the building. i think there is an aspect of grain jobs.

let's put in the pockets of that they can help jump-start some of the businesses and maybe go out to dinner and by their kids' clothes. these are things they said that republicans and democrats have voted for. we need to do it right now. >> when the president talks about the tax rate, do you think the baseline is letting the bush tax cuts expired? >> i introduced a more and line with what one buffett said. it would create new tax rates for millionaires. i think in addition to letting the tax cuts for the wealthiest americans expire that we should do more. he talked about fairness. i was ashamed of some laughed when he said this is not class

warfare but fairness. most americans sense that they're not getting a fair deal. >> thank you for being with us. >> congressman reuss. the to have you with us. building a lot of ever stretcher. clyde is easy to my ears. you talk to business and individuals. they're ready to go. it is not just our crumbling infrastructure. they're rebuilding from natural disasters. these are things we know create jobs.

they have bipartisan support. this is a major piece of getting this economy off. >> how do convince the index house vote to how -- how to convince them that it is not a mini version of the stimulus and it will work more effectively? >> it does not have enough of a percentage of that. we needed more spending on of pressure. most of it applies to route our the economy. i am pleased that this is part of his plan. they have ideas from both parties. in a divided congress with all

of this fighting, it is a smart place. i think it was bold. it was also pragmatic. corrects we have asked this question to a number of other members. where do you see the areas of compromise? what will be agreeable? >> and the structure is a great starting point. looking at some of the tax incentives for businesses, especially targeting some of these important segments. young people, veterans, of those kinds of is people in the work force. we need to put them back to work. i think the figures are among

veterans. can almost double what the national coverage -- national average of unemployment is. we need to be putting them in. >> thanks for joining us. >> years a republican colleague. what do you think about the president's friends rigid plans for rebuilding it? >> i think it is very important. but only do you corrected jobs, once the project is completed, you have something to show for it. that is where the real opportunity comes them. all are concerned are is paying for the things that we do. i have a real concern. we cannot tax and spend embar your way to prosperity.

the people of arkansas are very concerned about that. we have to look at the plan. we saw this with the last stimulus. this is one reason why we're in such a tough time right now. when the spending goes around, jobs go away. do you have to be smart as we go forward. what the present thought about going back next week with some details on how he would pay for it. what is he going to say to the senate and the house to get this there? >> we do need to pay for it. the idea of let's do this and then you find a way to pay for it, that is not going to get it. we're going to need support and things. this is a real concern. many members of congress will not support a plan that is not paid for.

40 cents of every dollar we are spending is borrowed money. this cannot go on. hard torking really find cuts and spend money that is not paid for. >> the president to an end -- drew on the plans of the government. >> i think he made a very credible points. i think you could argue that one of the reasons we had the economic power that we do but it was a wonder of the world. we need to look at these things. greece andg with italy that this is a limit. the cannot spend more than a

have. one of the problems the president has had in the past, somebody asks for him to score the plan that he had. the cbo says he cannot score a speech. we need specifics. i think we're all committed to working together to solve problems. i do believe the way you solve the employment problem is that we have to give some stability. businesses are sitting on the sideline. they do not know of their energy costs are going to beat. they're sitting back. they're very hesitant to hire. >> the bigger issue is the terms of the regulation of the obama administration. they do it before the infrastructure projects and things like that. >> the first thing to attack is

regulation along with everything else. you can play with rules with a business person. renown nobody knows. the last thing any business person is looking for is running out and hiring people. we're making it so difficult because we do not have an energy plan. we see anywhere from 30-80%. employers will pay the fine. there's tremendous uncertainty. employers are not volunteer and not hire a bunch of people on a matter how much money we spend. >> what is the unemployed rate in arkansas that price is about a person lower than the national average. on the other hand, the economy

is so weak. the average arkansan is worried about having a job. >> thank you. >> people commenting on the president's speech this evening. he talked about jobs of a joint session of congress. this is about 40 minutes. >> speaker, as the president of the united states.

>> thank you. thank you.

>> members of congress, i have the high privilege and distinct honor of presenting to you the president of the united states. >> thank you. thank you. thank you so much. thank you. mr. speaker, mr. vice president, members of congress, and fellow americans,

tonight we meet at an urgent time for our country. we continue to face an economic crisis that has left millions of our neighbors jobless, and a political crisis that has made things worse. this past week, reporters have been asking "what will this speech mean for the president? what will it mean for congress? how will it affect their polls, and the next election?" but the millions of americans who are watching right now -- they don't care about politics. they have real life concerns. many have spent months looking for work. others are doing their best just to scrape by -- giving up nights out with the family to save on gas or make the mortgage, postponing retirement to send a kid to college. these men and women grew up with faith in an america where

hard work and responsibility paid off. they believed in a country where everyone gets a fair shake and does their fair share -- where if you stepped up, did your job, and were loyal to your company, that loyalty would be rewarded with a decent salary and good benefits, maybe a raise once in awhile. if you did the right thing, you could make it in america. but for decades now, americans have watched that compact erode. they have seen the deck too often stacked against them. and they know that washington hasn't always put their interests first. the people of this country work hard to meet their responsibilities. the question tonight is whether we'll meet ours. the question is whether, in the

face of an ongoing national crisis, we can stop the political circus and actually do something to help the economy, whether we can restore some of the fairness and security that has defined this nation since our beginning. those of us here tonight can't solve all of our nation's woes. ultimately, our recovery will be driven not by washington, but by our businesses and our workers. but we can help. we can make a difference. there are steps we can take right now to improve people's lives.

i am sending this congress a plan that you should pass right away. it's called the american jobs act. there should be nothing controversial about this piece of legislation. everything in here is the kind of proposal that's been supported by both democrats and republicans -- including many who sit here tonight. and everything in this bill will be paid for. everything. the purpose of the american jobs act is simple -- to put more people back to work and more money in the pockets of those who are working. it will create more jobs for construction workers, more jobs for teachers, more jobs for veterans, and more jobs for the long--term unemployed. it will provide a tax break for companies who hire new workers, and it will cut payroll taxes

in half for every working american and every small business. it will provide a jolt to an economy that has stalled, and give companies confidence that if they invest and hire, there will be customers for their products and services. you should pass this jobs plan right away. everyone here knows that small businesses are where most new jobs begin. and you know that while corporate profits have come roaring back, smaller companies haven't. so for everyone who speaks so passionately about making life easier for "job creators," this plan is for you. pass this jobs bill, and starting tomorrow, small businesses will get a tax cut if they hire new workers or

raise workers' wages. pass this jobs bill, and all small business owners will also see their payroll taxes cut in half next year. if you have 50 employees making an average salary, that's an $80,000 tax cut. and all businesses will be able to continue writing off the investments they make in 2012. it's not just democrats who have supported this kind of proposal. fifty house republicans have proposed the same payroll tax cut that's in this plan. you should pass it right away. pass this jobs bill, and we can put people to work rebuilding america. everyone here knows that we have badly decaying roads and bridges all over this country. our highways are clogged with traffic. our skies are the most congested in the world. this is inexcusable.

building a world--class transportation system is part of what made us an economic superpower. and now we're going to sit back and watch china build newer airports and faster railroads? at a time when millions of unemployed construction workers could build them right here in america? there are private construction companies all across america just waiting to get to work. there's a bridge that needs repair between ohio and kentucky that's on one of the busiest trucking routes in north america. a public transit project in houston that will help clear up one of the worst areas of traffic in the country. and there are schools throughout this country that desperately need renovating.

how can we expect our kids to do their best in places that are literally falling apart? this is america. every child deserves a great school and we can give it to them, if we act now. the american jobs act will repair and modernize at least 35,000 schools. it will put people to work right now fixing roofs and windows, installing science labs and high--speed internet in classrooms all across this country. it will rehabilitate homes and businesses in communities hit hardest by foreclosures. it will jumpstart thousands of transportation projects across the country. and to make sure the money is properly spent and for good purposes, we're building on reforms we've already put in place. no more earmarks. no more boondoggles.

no more bridges to nowhere. we're cutting the red tape that prevents some of these projects from getting started as quickly as possible. and we'll set up an independent fund to attract private dollars and issue loans based on two criteria -- how badly a construction project is needed and how much good it would do for the economy. this idea came from a bill written by a texas republican and a massachusetts democrat. the idea for a big boost in construction is supported by america's largest business organization and america's largest labor organization. it's the kind of proposal that's been supported in the past by democrats and republicans alike. you should pass it right away.

pass this jobs bill, and thousands of teachers in every state will go back to work. these are the men and women charged with preparing our children for a world where the competition has never been tougher. but while they're adding teachers in places like south korea, we're laying them off in droves. it's unfair to our kids. it undermines their future and ours. and it has to stop. pass this jobs bill, and put our teachers back in the classroom where they belong. pass this jobs bill, and companies will get extra tax credits if they hire america's veterans. we ask these men and women to leave their careers, leave their families, and risk their lives

to fight for our country. the last thing they should have to do is fight for a job when they come home. pass this bill, and hundreds of thousands of disadvantaged young people will have the hope and dignity of a summer job next year. and their parents, low--income americans who desperately want to work, will have more ladders out of poverty. pass this jobs bill, and companies will get a $4,000 tax credit if they hire anyone who has spent more than six months looking for a job.

we have to do more to help the long--term unemployed in their search for work. this jobs plan builds on a program in georgia that several republican leaders have highlighted, where people who collect unemployment insurance participate in temporary work as a way to build their skills while they look for a permanent job. the plan also extends unemployment insurance for another year. if the millions of unemployed americans stopped getting this insurance, and stopped using that money for basic necessities, it would be a devastating blow to this economy. democrats and republicans in this chamber have supported unemployment insurance plenty of times in the past. at this time of prolonged hardship, you should pass it again right away. pass this jobs bill, and the typical working family will get a fifteen hundred dollar tax cut next year. fifteen hundred dollars that would have been taken out of

your paycheck will go right into your pocket. this expands on the tax cut that democrats and republicans already passed for this year. if we allow that tax cut to expire if we refuse to act middle--class families will get hit with a tax increase at the worst possible time. we cannot let that happen. i know some of you have sworn oaths to never raise any taxes on anyone for as long as you live. now is not the time to carve out an exception and raise middle--class taxes, which is why you should pass this bill right away. this is the american jobs act. it will lead to new jobs for construction workers, teachers, veterans, first responders, young people and the long--term unemployed. it will provide tax credits to

companies that hire new workers, tax relief for small business owners, and tax cuts for the middle--class. and here's the other thing i want the american people to know -- the american jobs act will not add to the deficit. it will be paid for. and here's how -- the agreement we passed in july will cut government spending by about $1 trillion over the next ten years. it also charges this congress to come up with an additional $1.5 trillion in savings by christmas. toight, i'm asking you increase that amount so that it covers the full cost of the american jobs act. and a week from monday, i'll be releasing a more ambitious deficit plan a plan that will not only cover the cost of this jobs bill, but stabilize our debt in the long run. this approach is basically the one i've been advocating for months.

in addition to the trillion dollars of spending cuts i've already signed into law, it's a balanced plan that would reduce the deficit by making additional spending cuts, by making modest adjustments to health care programs like medicare and medicaid, and by reforming our tax code in a way that asks the wealthiest americans and biggest corporations to pay their fair share. what's more, the spending cuts wouldn't happen so abruptly that they'd be a drag on our economy, or prevent us from helping small business and middle--class families get back on their feet right away. now, i realize there are some in my party who don't think we should make any changes at all to medicare and medicaid, and i understand their concerns. but here's the truth. millions of americans rely on medicare in their retirement. and millions more will do so in the future. they pay for this benefit during their working years.

they earn it. but with an aging population and rising health care costs, we are spending too fast to sustain the program. and if we don't gradually reform the system while protecting current beneficiaries, it won't be there when future retirees need it. we have to reform medicare to strengthen it. i'm also well aware that there are many republicans who don't believe we should raise taxes on those who are most fortunate and can best afford it. but here is what every american knows. while most people in this country struggle to make ends meet, a few of the most affluent citizens and corporations enjoy tax breaks and loopholes that nobody else gets.

right now, warren buffet pays a lower tax rate than his secretary -- an outrage he has asked us to fix. we need a tax code where everyone gets a fair shake, and everybody pays their fair share. and i believe the vast majority of wealthy americans and ceos are willing to do just that, if it helps the economy grow and gets our fiscal house in order. i'll also offer ideas to reform a corporate tax code that stands as a monument to special interest influence in washington. by eliminating pages of loopholes and deductions, we can lower one of the highest corporate tax rates in the world. our tax code shouldn't give an advantage to companies that can afford the best--connected lobbyists. it should give an advantage to

companies that invest and create jobs here in america. so we can reduce this deficit, pay down our debt, and pay for this jobs plan in the process. but in order to do this, we have to decide what our priorities are. we have to ask ourselves, "what's the best way to grow the economy and create jobs?" should we keep tax loopholes for oil companies? or should we use that money to give small business owners a tax credit when they hire new workers? because we can't afford to do both. should we keep tax breaks for millionaires and billionaires? or should we put teachers back to work so our kids can graduate ready for college and

good jobs? right now, we can't afford to do both. this isn't political grandstanding. this isn't class warfare. this is simple math. these are real choices that we have to make. what'm pretty sure i know most americans would choose. it's not even close. and it's time for us to do what's right for our future. the american jobs act answers the urgent need to create jobs right away. but we can't stop there. as i've argued since i ran for this office, we have to look beyond the immediate crisis and start building an economy that lasts into the future -- an

economy that creates good, middle--class jobs that pay well and offer security. we now live in a world where technology has made it possible for companies to take their business anywhere. if we want them to start here and stay here and hire here, we have to be able to out--build, out--educate, and out--innovate every other country on earth. this task, of making america more competitive for the long haul, is a job for all of us. for government and for private companies. for states and for local communities and for every american citizen. all of us will have to up our game. all of us will have to change the way we do business. my administration can and will take some steps to improve our competitiveness on our own. smallample, if you're a business owner who has a contract with the federal government, we're going to make

sure you get paid a lot faster than you do now. we're also planning to cut away the red tape that prevents too many rapidly--growing startup companies from raising capital and going public. and to help responsible homeowners, we're going to work with federal housing agencies to help more people refinance their mortgages at interest rates that are now near 4 percent a step that can put more than $2,000 a year in a family's pocket, and give a lift to an economy still burdened by the drop in housing prices. other steps will require congressional action. today you passed reform that

will speed up the outdated patent process, so that entrepreneurs can turn a new idea into a new business as quickly as possible. that's the kind of action we need. now it's time to clear the way for a series of trade agreements that would make it easier for american companies to sell their products in panama, colombia, and south korea while also helping the workers whose jobs have been affected by global competition. if americans can buy kias and hyundais, i want to see folks in south korea driving fords and chevys and chryslers. i want to see more products sold around the world stamped with three proud words -- "made in america."

and on all of our efforts to strengthen competitiveness, we need to look for ways to work side by side with america's businesses. that's why i've brought together a jobs council of leaders from different industries who are developing a wide range of new ideas to help companies grow and create jobs. mobilizede've business leaders to train 10,000 american engineers a year, by providing company internships and training. other businesses are covering tuition for workers who learn new skills at community colleges. and we're going to make sure the next generation of manufacturing takes root, not in china or europe, but right here, in the united states of america. if we provide the right

incentives and support and if we make sure our trading partners play by the rules we can be the ones to build everything from fuel--efficient cars to advanced biofuels to semiconductors that are sold all over the world. that's how america can be number one again. that's how america will be number one again. now, i realize that some of you have a different theory on how to grow the economy. some of you sincerely believe that the only solution to our economic challenges is to simply cut most government spending and eliminate most government regulations. well, i agree that we can't afford wasteful spending, and i will continue to work with congress to get rid of it.

and i agree that there are some rules and regulations that put an unnecessary burden on businesses at a time when they can least afford it. that's why i ordered a review of all government regulations. so far, we've identified over 500 reforms, which will save billions of dollars over the next few years. we should have no more regulation than the health, safety, and security of the american people require. every rule should meet that common sense test. but what we can't do what i won't do is let this economic crisis be used as an excuse to wipe out the basic protections that americans have counted on for decades.

i reject the idea that we need to ask people to choose between their jobs and their safety. i reject the argument that says for the economy to grow, we have to roll back protections that ban hidden fees by credit card companies, or rules that keep our kids from being exposed to mercury, or laws that prevent the health insurance industry from shortchanging patients. i reject the idea that we have to strip away collective bargaining rights to compete in a global economy. we shouldn't be in a race to the bottom, where we try to offer the cheapest labor and the worst pollution standards. america should be in a race to the top. and i believe that's a race we can win.

in fact, this larger notion that the only thing we can do to restore prosperity is just dismantle government, refund everyone's money, let everyone write their own rules, and tell everyone they're on their own that's not who we are. that's not the story of america. yes, we are rugged individualists. yes, we are strong and self-- reliant. and it has been the drive and initiative of our workers and entrepreneurs that has made this economy the engine and envy of the world. but there has always been another thread running throughout our history a belief that we are all connected, and that there are some things we can only do together, as a nation. we all remember abraham lincoln as the leader who saved our union. but in the middle of a civil war, he was also a leader who

looked to the future a republican president who mobilized government to build the transcontinental railroad, launch the national academy of sciences, and set up the first land grant colleges. and leaders of both parties have followed the example he set. ask yourselves where would we be right now if the people who sat here before us decided not to build our highways and our bridges, our dams and our airports? what would this country be like if we had chosen not to spend money on public high schools, or research universities, or community colleges? millions of returning heroes, including my grandfather, had the opportunity to go to school because of the gi bill. where would we be if they hadn't had that chance?

how many jobs would it have cost us if past congresses decided not to support the basic research that led to the internet and the computer chip? what kind of country would this be if this chamber had voted down social security or medicare just because it violated some rigid idea about what government could or could not do? how many americans would have suffered as a result? no single individual built america on their own. we built it together. we have been, and always will be, one nation, under god, indivisible, with liberty and justice for all, a nation with responsibilities to ourselves and with responsibilities to one another. members of congress, it is time for us to meet our responsibilities.

every proposal i've laid out tonight is the kind that's been supported by democrats and republicans in the past. every proposal i've laid out tonight will be paid for. and every proposal is designed to meet the urgent needs of our people and our communities. i know there's been a lot of skepticism about whether the politics of the moment will allow us to pass this jobs plan or any jobs plan. already, we're seeing the same old press releases and tweets flying back and forth. already, the media has proclaimed that it's impossible to bridge our differences. and maybe some of you have decided that those differences are so great that we can only resolve them at the ballot box. but know this -- the next election is fourteen months

away. and the people who sent us here the people who hired us to work for them they don't have the luxury of waiting fourteen months. some of them are living week to week, paycheck to paycheck, even day to day. they need help, and they need it now. plan't pretend that this will solve all our problems. it shouldn't be, nor will it be, the last plan of action we propose. what's guided us from the start of this crisis hasn't been the search for a silver bullet.

it's been a commitment to stay at it to be persistent to keep trying every new idea that works, and listen to every good proposal, no matter which party comes up with it. regardless of the arguments we've had in the past, regardless of the arguments we'll have in the future, this plan is the right thing to do right now. you should pass it. and i intend to take that message to every corner of this country. i also ask every american who agrees to lift your voice and tell the people who are gathered here tonight that you want action now. tell washington that doing nothing is not an option. remind us that if we act as one nation, and one people, we have it within our power to meet this challenge. president kennedy once said,

"our problems are man--made therefore they can be solved by man. and man can be as big as he wants." these are difficult years for our country. but we are americans. we are tougher than the times that we live in, and we are bigger than our politics have been. so let's meet the moment. let's get to work, and show the world once again why the united states of america remains the greatest nation on earth. thank you, god bless you, and may god bless the united states of america. [captions copyright national cable satellite corp. 2011]

[captioning performed by national captioning institute]

>> in 1844, henry clay ran for president of the united states, but he changed political history. he is featured in "the contenders." this weekend, friday, 88:00 eastern. >> a few moments, the first meeting of the deficit reduction committee which is beginning its

work in finding more than $1 trillion in spending cuts. then ben bernanke says lawmakers need to come up with a long-term plan for deficit reduction and avoid short-term cuts that hurt economic growth. then an update on how terrorist finances have been disrupted, including comments from timothy geithner. >> tomorrow morning, we will focus on the president's plan for creating more jobs and the first meeting of the deficit rip committee. our guests will be josh earnest, democratic representatives jim bishop and a republican from texas, lynn jenkins. >> the day after the 9/11

terrorist attacks, this weekend on american history tv on c- span3, floor speeches from september 12. american artifacts, recovered objects from new york, the pentagon, and shanksvill, pennsylvania. and then how societal changes in the first half of the 19th century led to the women's rights movement. >> the joint is it committee had its first meeting today. senator john kyl said the committee needs to come up with a plan from the end of october. during this meeting, you will hear protesters chanting outside

the hearing room. >> the joint committee will come to order. if photographers would please remove themselves. today the joint committee convenes its inaugural meeting in conforming with the budget control act of 2011. i welcome my colleagues from the house and senate and like a chair, senator murray, and i think each and every one of you to serve on this committee. today's meeting is for the purpose of organizing the committee. there are two items on the agenda. we will have the opportunity to make an opening statement, and

then the committee will take up consideration of its rules, after which we will adjourn. the joint committee has noticed its intention to hold its first hearing next week on september 13th, entitled the history and drivers of our nation's debt and its threat. dr. elmendorf we are only witness. i wish to announce that my could chair, senator murray, and i have agreed to alternate sharing our hearings and meetings, perhaps by alphabetical order or some other arbitrary criteria, of which i am not aware. it was decided i would share the first meaning. before the chair yields, the chair wishes to remind all of our guests that any manifestation of approval or disapproval, including the use of signs or placards, is a

violation of the rules of the house. chair wishes to thank our guests in advance for their cooperation in maintaining order and decorum. the chair will now yield to himself for an opening statement. the late spanish philosopher george santayana wrote "those who cannot remember the past are condemned to fulfil get." into the line, professors published what may be the seminal work on the subject of the past debt crisis. study in many different examples over a history, they beat a mosaic of high unemployment, currency debasement, civil unrest about lost economic growth," and the collapse of a nation. this is a path that we in

america cannot want to fulfill. unfortunately when it comes to our own debt crises, the needle on the gauge is now -- has now entered the red zone. to begin with, that threatens our jobs. it is clear that our debt hangs like a sword of damocles over their hiring decisions. as one small business person put it, i know somehow, someday i'm going to have to pay for all this debt. so now is not the time i want to take the risk of buying a bunch of new equipment or hiring a bunch of folks. as his elected representative, how can i ignore such sentiment, when i hear it everywhere, and i know it is shared by thousands and thousands of job creators from coast to coast? i would hope it would be obvious to all that deficit reduction and a path to fiscal sustainability is a jobs

program. no less of an authority than the chairman of the joint chiefs of staff, mike mullen said the single biggest threat to our national security is our debt. in interest payments alone, we are enabling china to buy two jetfighters a week. is it not our public duty to respond to this kind of warning with the same alarm and resolve that would be summoned to defeat any other threat to our nation? finally, our debt threatens our children's future. ominously, spending has grown from its normal to 24% and might grow to 40% and beyond in the course of a generation. if financed through borrowing, interest payments alone with crushed our economy. if financed with taxes, the

burden would have to more than double, a bird never dreamed of by the american people and businesses which employ them. should we let this happen i fear we would be the first generation to leavea's history the next with fewer opportunities and a lower standard of living. i will not sit idly by and watch the american dream disappear from my nine-year old bottle and my seven-year old son. i believe that is a sentiment shared by all my colleagues. what exactly is driving hard that? president obama has said the major driver of our long-term liability, everybody knows it, is medicare, medicaid, and our health care spending, and nothing comes close. i agree. the president has also said if you look at the numbers,, then medicare in particular will run out of money and we will not be able to sustain the program no

matter how much taxes go up. it is not an option for us to just sit by and do nothing. agree. i greentre i have many hopes, i hope that we are able to bring about tax reform in order to bring about more revenue. i hope we are able to prioritize spending, as families and businesses do every day. i hope we are able to reform many different programs to make them more efficient and effective. but in order to succeed, i know this committee must be primarily about the business of saving and reforming social safety net programs that are not only failing many beneficiaries, but going broke at the same time. i approached artest with a profound sense of urgency, i hopes, and realistic expectations. our task to achieve $1.50

trillion of bipartisan deficit- reduction well not be easy, but it is essential. as we proceed like any other committee, there will be public hearings. there will be ample opportunities for the public to have their opinions heard. like any other committee of congress, there will also be some discussions among members that will not be public. however, no final product will be adopted without ample public notice and a public vote according to the rules. whenever this committee may achieve, i hope we can at least agree time to spend money we did not have. it is past time to quit barring 42 cents on the dollar, and then sending bill to our kids and grandkids. i do not believe this committee alone will solve our nation's debt crisis. but a bipartisan negotiated

reduction in the growth of our nations that would be a wonderful, needed, hopeful step in the right direction. beyond this committee and this congress, one day this generation will be judged. history will record we rode the first chapter of rebecca's the cause, or will it record and let the next generation with greater dozens of liberty and limited list opportunities? the choice is ours. at the work began. the cochaired now yields to the distinguished co-chair of the committee, the gentle lady from washington, senator murray. >> thank you very much. thank you for agreeing to cochairing this committee and for the time you have put into it so far, the commitment, and i want to thank our committee members as well for your commitment to this. like all this, i spent a lot of

time this past month traveling around my home state and talking to struggling families. i heard from people from all walks of life, with different challenges and hopes and ideas about where we need to go as a nation. the one question i got from so many of them was, what is going on in washington, d.c.? they are worried. many of them are scared about what the future holds and frustrated. they want this country to work and they know it can. but many worry that our government is broken and at times it is easy to share their fears. this committee has the opportunity to share the american people we can still come together, put politics aside, and solve a problem that is plaguing our country. we each got into politics for a different reason, but i am certain none of us came here to engage in the kind of petty bickering that has been dominating the discourse recently. we have main -- we may not all

agree on our problems, but may not agree on what the problems are, but i know everyone of us to understand our great nation faces serious challenges. i hear from so many families about the jobs crisis that is devastating the middle-class, that we need to work together on as a nation to address. i hear from businesses that are struggling, especially small businesses, that are having a tough time creating the jobs that millions of americans are desperate to fill. because of the sluggish economy, as well as for structural and policy reasons, our federal government is facing deep short and long-term debt as of, and a growing national debt that has -- that if left unchecked will be an overwhelming burden handed down for our children and grandchildren the bell. there's no doubt that our country faces deep and serious problems, but i'm confident we can face them together and come

out stronger because we have done before. as serious as the problems we face now our, our country has faced greater. our people and our political system has always had a way to meet our challenges, move beyond that, and flourish, and that is what i agreed to cochaired this joint select committee on deficit reduction and am proud to get to work with all of our committee members who have shown they are also serious about the challenge in front of us. it is not because i believe this committee is going to solve every one of our problems, and certainly not because i believe the tasks they are charged with is what be easy or pain free. it is because i believe we owe it to the families we all represent the finally come together, put their needs first, and work together to find the solution that will put our nation on a solid path forward. this committee is made up of six democrats and six republicans. we each come to this task with

our own strong set of principles, elise, and priorities for the country that we love. and while none of us will ever set aside or betray our principles, we must keep in mind that there's much more that binds us than divides us, and we must be open to compromise and the viewpoints of others. that is what i have been glad that we have gone this process off the ground over the last few weeks, committee members have refrained from drawing lines in the sand. as we move forward, i hope we can continue to not allow ourselves to be boxed in or pigeonholed by special interest groups or partisans, media, pundits, and we are allowed the room to come to a balanced agreement. there is broad understanding among us that economic growth and job creation are the best ways to reduce the deficit and debt, although we certainly have differences regarding how to achieve that. if we want to get our country back on track, we must come

together around a balanced plan that can pass through this committee with bipartisan support, passed through both chambers of congress, get signed into law, and we can be proud to take to the american people. as -- a successful product for this committee will not be any one that any one of us will have written on our own. it will include compromises on all sides. we have not been given much time to accomplish this, but thankfully we are not starting from scratch, far from it. together we can build on the work of many come from both sides of the aisle who have worked hard over the last few years on deficit reduction proposals. now families across america are looking to this committee to take this last few steps and get this done. the same families that set at their kitchen tables, making tough choices about the fiscal future. this will not be easy, but we can do it, and i am looking

forward to working with my colleagues on this critical and serious task. today we will be discussing a set of proposed that i have worked on closely and i wanted echo what it could share said about them. i am confident they will give the structure we need to conduct our business transparently, get input from experts and members of the public, and work together to pass a bipartisan plan that works for the american people. i believe the american people deserve full access to committee business the way they do in every committee in congress, and i believe these rules law allows to that. we look -- but also have the ability to meet to discuss important issues, and if this committee brings its final product forward, let me make it clear that that product and that process will be public, so my

colleagues and the people will know what the committee has put together. they give. i look forward to working with you. >> could sherman now recognizes the gentleman from ohio. >> thank you, and i want to say that i appreciate the way you and senator murray have laid out the critical task before us. the truth is this committee exists because nothing else has worked to address that crisis before us, one that threatens to sink an already weak economy. signs all around us, of this is thought that, bond rating downgrades, the faltering economy, and the budget problem that we talked about earlier are linked. an economy burdened by excessive spending does not create jobs. an economy failing to create jobs threatens the government's

resources further and fails to agree to revenue needed out to fix the budget problems and pretty coming are the twin challenges of our time, and both must be addressed together. this committee has been tasked with reducing the deficit by $1.50 trillion over the decade. reductions of this level have never been done before. cutting $1.50 trillion can be achieved and it must be achieved. think about it this way -- it means cutting 3.5% of total projected federal spending over the next decade. think of how many families and businesses we all represent the who have had to do much more in the past few years. some of asked why we should not be doing more, and as i calculate it, based on a more realistic policy baseline, using cbo data come over the next 10

years that that is likely to increase by about $13 trillion. our goal of $1.50 trillion would reduce that debt by only 12%. higher.should higheraim the american people what this. future generations will be inheriting this that deserve this. but the said he -- at least hit our target. and let's keep in mind that nearly hitting the target is not enough. the quality of matter matters more than the quantity of reform. to reach a onetime savings could add up to $1.5 trillion over 10 years, but agreed it replaces -- it replaces and out of the

reforms. let's keep in mind that the long-term deficit projected are caused by spending. the laws have to be changed to extend all of the tax cuts from 2001 to 2003. 2003, the cbo shows revenues was still exceed the 18% a g.d.p. historical average. spending has already done from his historic average. in future decades, is projected to soar will be on that. we should aim for structure reform that preserve the entitlement programs and make sure the benefits are there. we can rein in costs that threaten to bankrupt the programs.

this doesn't mean we should ignore taxes. we should try to fix the tax code. it can eliminate unjustified tax preferences and encourage savings. that will create economic growth and generate more revenue. a look for to working with my colleagues. the american people are counting on us and we cannot let them down. >> we now recognize the gentleman from california. >> of light of knowledge are cochairs along with all my colleague did i would like to acknowledge our cochairs -- i would like to acknowledge my cochairs as long with my colleagues. we face a defining challenge. will be embraced this opportunity to lead our economy back on track, orwill we let

these cynics carry the day? we should start this process without limitations. it is precisely because of its difficult nature that we need -- we need to step up and not cower from the challenge. we must believe failure is not an option. we can prove to the american country that representative democracy is still alive and well. we can do this by simply listening to them. they have been telling this time and time again to put on the same uniform and were not as democrats and republicans but as americans to treat everyone fairly. not favoring powerful special interests as we look to spread the pain and the game. they have said to us loud and clear, tackle the biggest deficit, the jobs deficit as we restore fiscal responsibility to our budget. there is the job status is as responsibility.

this is the best decade and job creation in a generation. times of change. -- times have changed. we must be open and honest about what drove us here. we must identify the drivers of the deficit and shine a light through any loopholes. the taxpayers deserve nothing less than complete accountability. these are honest folks you're out there right now looking for an honest day's work. these folks would be happy to be take -- paying taxes again instead of drawing an unemployment check. this is the best way to reduce the deficit, put a millions of americans back to work. america works when americans are working. we set out to answer any plan does not get in the way of any american willing to work. that is only part of the solution.

policies promote economic investment. with smart responsible long-term debt reduction. we can leave our country to find -- we can lead our country to find a sound solution to our fiscal troubles. i look forward to working with each and every one of my colleagues for a solution. let's get to it. i yield back my time. >> a thank you. we now recognize the gentleman from michigan. congressman camp. >> thank you. the problem is obvious. there is too much government spending and too much federal debt, which are repeating our economy's ability to grow. as a result,too few private sector jobs are being created.

a quick look at the facts show this committee has its work cut out for it. there's zero net jobs created in the month of august. 40 million americans remain out -- 14 million americans remain out o of work. the total debt for fiscal year 2010 and reached $13.60 trillion. or 93.1% of gdp and is growing at an astronomical and -- it is growing at an astronomical and unsustainable rate. the debt will exceed our gdp this year. this current debt to gdp ratio has are the costs as 1 million -- has already cost us 1 million jobs. this have been on both parties watch. the seven decades in the making. its reacts to the necessary and unknowns solutions. washington has over promised and underperformed.

we must find $1.5 trillion in further debt reduction so that our economy can get back on track. as i stated, the final product must be looked at their job creation. will the recommendations we make help or hurt? >> will the gentleman suspend until the disturbances taking care of? [unintelligable chanting] >> if the staff will please shut the doors. [unintelligible chanting]

[unintelligible chancing] houle [unintelligible chanting] [unintelligible chanting]

>> if the staff to the best of their ability shut the door and we will continue our proceedings. the chair believes the american people want to see this committee 60's. -- this committee succeed. if members could speak a little more loudly. the chair recognizes the gentleman from michigan. >> i did not mean for my remarks to empty the room. i am from a big family, so i am used to a big -- a lot of background. let me continue by saying that by reducing the burden it places on employers, we can help get the country back on track.

comprehensive tax reform would spur economic growth and should be part of our discussion. this is daunting. it does not lend itself to quick fixes. i urge my colleagues to be bold and focus on the short-term and long-term impact. while i am not naive, i am optimistic we can succeed. i look forward to working with you on the committee. thank you. i yield back. >> the chair now recognizes the gentleman from montana, senator baucus. >> we could not hear representative camp. >> i will make sure you get a copy of my remarks. [laughter] >> i will read them very closely. >> we call this room at the big house. we're getting ready for the night game against notre dame.

>> i do not know when the disturbance in the hallway will be taken care of so of like for us to proceed to the american -- proceed,like for us to rea and certainly, the american people can hear our statements. it is being recorded. >> when i was in montana and climbing on a mountain, about 10,500 feet high up. myself on rank. -- myself phone rang. it was leader reid. he asked if i wanted to be on this committee. i got off the mountain. in the years i've been in public service, i've never seen so many people say the exact same thing to me with such enthusiasm. basically,we're glad you're on the committee.

we feel sorry for you. it is a big task. we wish you the very best. it has to be accomplished. in that expresses a lot of wisdom of the american people. we have a huge problem ahead of us. and the american people want us to solve it, pretty simple. ihave a couple of points. i think that we should aim higher rather than lower. it goes with reducing the deficit. i think we should try to do more. if we can do a little more,we will be able to get our fiscal house in order. we also must recognize that we are at a real crossroads. the country is looking at us. business is looking at us. consumers are looking at us. there's a lot of uncertainty in

the world today. if we can get our act together, we as a country get our fiscal house in order, this will address a lot of the uncertainty that existed. we have to be balanced, clearly. we have to be fair. they're asking is not to treat the jobs they wanted us to create. we have to balance is. we have to be fair. many groups saw a lot of ground. there are lots of proposals out there. people worked hard for people trying to solve that problem. we clearly should take advantage of their work. it is very good work done by very good people. jobs, clearly. since the commission there is an egregious cry for jobs.

-- a greater cry for jobs. more jobs. the efforts we undertake will help find a way to get more jobs. more jobs means more growth. more growth means more revenue. more revenue needs begin solve this problem more easily. we asked our colleagues -- lyndon johnson has said that one cannot solve very much by oneself. it takes cooperation and working together. you'll only do what the american people want us to do if we work together and keep our eye on the ball and not get distracted and -- get distracted by a lot of stuff and dig down deep. it will take digging down deep to get this thing solved. thank you. >> the chair now recognizes the gentleman from pennsylvania. >> thank you.

several of my colleagues have addressed the magnitude of this problem. it is huge. it is my hope our response of a commiserated. -- will be commensurate. the mess we are and threatens our livelihoods and prosperity. we have an extraordinary opportunity to do something about it, to begin to put our government on a sustainable fiscal half in a way that will -- fiscal path in a way that will encourage economic growth in the job creation we know we badly need. the challenge calls for a bold response. we could use to nibble around -- we could choose to nibble a round the edge of the problem and look for obsolete programs. we need to do that. they are out there. it might need to be that it will add up to $1.50 trillion. that is our statutory goal. but that is all we do, then i would suggest we would not be doing all that is necessary to

press on a pro-growth sustainable path. if we're going to meet the challenge we face, we need to address the big entitlement programs that we know are driving this fiscal problem. we all know it is not easy for any of us to do that. we have constituents who rely on these programs. it means we would have to make real changes. we can put them on a bible and -- in a vulnerable way that protect these programs and puts us on a sustainable path. we can only do it in a bipartisan fashion. this is a big opportunity. when the two mechanize economic growth and job creation. if we can find a way to create policies that will encourage an -- annual growth just 1% per year faster than it otherwise would, that generates $3 trillion in additional revenue.

$3 trillion smaller deficits, $3 trillion less in millions and millions of jobs if we can foster economic growth. how do we do this? i would observe cutting spending and reducing the deficit. that itself is pro-growth becauseit removes the chilling affect that obsessive deficits have. the other big opportunity for us is tax reform, you know, a system that has -- it has lower marginal rates. it would encourage economic growth. i think our national tax code is a national embarrassment. both parties are guilty of giving it to the point where it is now. we have credits that are bad policies. we use a tax code to force americans to pay more for an efficient sources of electricity that cost us jobs. and when huge iconic american

corporations pay little or no taxes, that is indefensible. taxes. and the 20 to wipe out the special interest players. it does generate more revenue, and jobs. it is a big challenge a face fierce -- challenge we face. i hope we will rise to the occasion. >> thank you. the co-chair now recognizes the congressman from south carolina, senator clybourn. >> it is a real pleasure for me to join me. -- for me to join vonthe select committee. as i said in my of bed this week, theenthusiastic reaction to my constituents and others has caused me to reflect on having been growing up in a passage. we're not the chosen 12.

i enter these deliberations with a clear vision and the willingness to find common ground. if the distance between me and an opponent is five steps, i do not mind taking three of them. i am hoping we will not allow our political differences to get in the way of economic common sense. and duty to god and country. getting people back to work is the quickest way to restore confidence in us as an elected body, and the country as a land of opportunity. last month i held a town hall meeting in south carolina. there is an unemployment rate of 17.5%. the three neighboring counties have jobless rates ranging from 70 to 19.8%.

-- 17% to 19.8%. people did not want to hear a lot about fancy washington talk. they wanted to hear about jobs. restoring the dignity of work. they want to work. they want the government to work. we need to make budget cuts. targeting waste, fraud and abuse. eliminating unnecessary and duplicative spending and ending military adventurism -- it does not need to be accompanied by cutting social services. and ending benefits like social security, medicare, and medicaid. it must be fair. it is just plain wrong. -- plain wrong to put all the burden of debt and deficit reduction on the elderly, the middle class and the poor. it to squeeze in the middle

class. we need to work together to address is an urgent priorities. economic fairness and common sense call for reducing inequities and closing unfair loopholes. and eliminating outdated and unnecessary tax subsidies. debt and deficit reduction should be intertwined into a strong code of job creation, budget cuts and tax reforms. neither one of them was -- will sufficiently restored. -- restore confidence. the american people are counting on us to work together and get the job done. >> thank you. >> thank you. i want to thank the two chairs

for their leadership in a few short weeks since this panel was named. as the to both of you there out -- i spoke to both of you throughout august. i appreciate the quick action. we will take all the other the physical steps to allow us to hit the ground running. i spent all last month at home in michigan meeting with my constituents and in all the -- and doing all but things we do. michigan is a great state. it is a place where folks were drawn to as they -- they built their on american trade. our state produce some of the world's greatest inventions. it was an economics of. -- an economic hub. it is now on the edge of an economic downturn. manufacturing jobs have disappeared. more jobs have disappeared because of economic uncertainty.

i do not think any state is that more -- is at more -- is more at stake. my constituents know that we need to make the necessary cuts to put us on long-term fiscal footing. removing economic uncertainty will help spur job growth. if i heard one thing consistently it was this. the american people want us to succeed. they know the job of this committee and this congress. it is not an easy one. but all of us, the 12 of us here and everyone of our house and senate colleagues were sent to do what is right for the nation, and they are rooting for us. but me read you something from this week's "national journal." "for the first 10 months of fiscal year 2011, revenues are about 8% over last year and

spending has risen less than 3%. revenue from income and payroll taxes grew, even though congress cut payroll taxes to stoke the economy. but the good news ends there. economic growth slowed to a crawl in the first half of a year. many analysts predicted the economy will grow less than 2% in 2012, about half as fast as many had thought previously. if the gloomy new outlets -- outlook turns out to be right, the next decade will turn out to be hundreds of billions of dollars higher than anyone has forecast. cutting spending is essential to jump-start our economy and prevent the kind of downturn that we are being warned about. if we do not succeed, we risk further damage to our credit rating and deeper erosion in confidence, both of which will worsen the cycle." my goal for this committee is to begin by seeking common ground.

surely, there are areas we can agree. surely, we can identify areas where we are not spending tax dollars wisely and where we can do better. every taxpayer dollar we spend, every program on the books can be viewed through the lens of job creation and fiscal responsibility. are we spending the people's money wisely? are we supporting job growth and economic uncertainty? those are the questions i look forward in working with my colleagues to find the right solutions. i yield back. >> thank you. the co-chair now recognizes the gentleman from massachusetts, senator kerry. >> for us to take on this job about the mission, they said we shall produce recommendations and legislation to significantly affect the short- term and long-term fiscal imbalance of the federal government, reducing the federal debt by at least $1.5 trillion.

the critical words are, "at least $1.5 trillion" and "significantly affect the long- term balance." we can only do this by reducing the deficit, sending the message that congress is serious and prepared us to make the hard choices. in fact, the real mission of this committee comes from the american people, who wonder if we still can, and desperately want us, to sit down like adults and make the congress work, as our economy can work again for the american people. so yes, we are here to examine the numbers, but frankly, we are also here to examine our consciences and look beyond the consideration of party or ideology to address the broader needs of our nation. our national debt is $14.7 trillion, but we also have a jobs deficit.

26 million americans looking for work. we cannot fix our budget without fixing jobs, and we cannot fix jobs without fixing our budget. we have to restore confidence and we have to do it in a hurry. the world is watching, and our strength at home determine our strength in the world. only a few days ago, russian prime minister vladimir putin said in today's global economy you only need to deal with five countries, and america was not one of them. none of us were sent here to accept an economic future where the united states does not make the list, let alone topped it. and here at home, americans are watching. in less than 13 years, if we do not take significant steps, our government will only be able to fund medicare, medicaid, social security, and the interest of our national debt. everything else will have to be funded. by any measure, today's fiscal path is unsustainable.

as we face this challenge, we need to remember that america does cherish a basic set of values. we believe in caring for the sick and the elderly and disabled out of the shadows, and that every young person deserves opportunity and future. we also believe that america must always prepare for that. as we engage in this effort, we cannot eat america's seed corn. we need to grow the economy. some of us were here from the 1980's when we make tough decisions and committed ourselves to an ever-increasing poverty or inequality -- to never increasing poverty for inequality. in the 1990's we saw how we saw -- we saw how we balance the budget in a balanced way. we can do that again. three bipartisan groups have spent thousands of hours working to find common ground.

these were bounced -- these are road maps. we do not need to reinvent the wheel. none of us here are so important that we can demand history or the demands of the moment. we have to find not just common ground, but higher ground. many americans have sat we sat and they have tackled the toughest issues throughout our history. and they have found common ground. now it is our turn. i am convinced there is a bipartisan consensus just waiting if the 12 of us are willing to sit down and forge it and make it real. that is our mission and that is our charge and i look forward to getting to work.

>> thank you. the cochaired now recognizes the gentleman from arizona, senator kyl. >> thank you, mr. chairman and colleagues. i am struck by -- and i suspect most of the people in the audience are, too, by the commonality of the views expressed here and a very strong commitment to succeed. we're all hearing the same thing from our constituents back home. there is a strong connection everyone as a -- has acknowledged between the challenge of our deficit and the necessity of job creation. i sense an optimism that we can succeed expressed by all of my colleagues. coupled with the hope that we can do more, starting with the goal of the $1.5 trillion deficit reduction, but hopefully moving beyond that to things like tax reform entitlement reform that all of us acknowledge would help in the alternate goal of job creation

and economic growth. i would like to offer an admonition to my colleagues, and perhaps a challenge, that this will be easy. i have been involved in discussions starting last december. my colleague chris van hollen and i met then, and other talks with vice president biden and max baucus and 10 days of discussions of the white house. having gone through all of that and seeing how difficult it is to reach an agreement, i think a dose of realism is called for. this is tedious, time consuming work and will require going through a lot of budget numbers line by line. the we have already had a lot of hearings in both the house and senate. it is time for us to get down to the hard decisions that are required to go through those line by line items. and as chairman marie pointed out, the time is short as well,

which complicates our job. not only must we act by november 23, but we have to have anything that would make public 48 hours in advance. the cbo must score everything and that can take weeks, based upon some of the complicated things that we must do. the reality is, we have to act by sometime -- by the end of october, realistically. which means we essentially have about six weeks to construct our package. this is a long way of saying that we are only going to succeed if we can avoid partisanship and try to limit the demands on the committee, as well as the staff, so we can collectively work to achieve this goal. the more demands that are made on the committee and its membership, the more challenging it will be. it is true, as one of my colleagues said, the american people want us to succeed. i will do everything within my power to succeed in this

challenge that the american people and our colleagues have laid before us. the future of our country is at stake. >> thank you. the chair now recognizes the gentleman from maryland, congressman van hollen. >> before i make a few remarks, i ask unanimous consent to give our colleague, mr. camp, a brief opportunity to complete his remarks. >> without objection. >> i appreciate the gentleman sentiment. i do not think it is going to be necessary. i will post them on line. i appreciate very much the sentiment and i will yield back. >> the gentleman from maryland is recognized. >> thank you, mr. chairman. i join my colleagues here today in recognizing we have a big responsibility to the american people, a responsibility to meet the twin challenges of doing everything in our power to put americans back to work and put america on a steady, predictable path to deficit and debt reduction.

these are not competing goals. they overlap. every day that the economy has stalled is another day that the american people are hurting and another day the deficit is growing. the quickest and most effective way to reduce the deficit in the short term is to help grow jobs. indeed, the nonpartisan congressional budget office has rejected the offer at each one- tenth of 1% increase in gdp over the next decade, we reduce the deficit by about $110 billion. the biggest obstacle to economic growth right now is weak consumer demand. it is simple. businesses are not going to hire employees unless they have customers for their goods and services. i know the american people are looking forward to the pres.'s jobs plan tonight and the president is going to need a united congress to get the economy back on track. i hope we can work in a bipartisan fashion to do just that. getting the economy back is just part of the solution.

it will not in itself reduce the deficit. it must be coupled with a credible deficit reduction plan. the good news, as my colleague from massachusetts said, we do not have to start from scratch. we have two recent bipartisan commissions, as well as the work of the gang of six to provide a framework for the general approach we can take. i do not agree with every proposal made by these groups, and probably none of us do. but they do provide some overall scaffolding and the framework for serious deficit reduction plans. the bipartisan commissions have several things in common. first, they warn against any-any action that can hurt the economy. it and second, they attack the long-term deficit challenge from both the spending and revenue sides of the equation. they take a balanced approach. they recognize we need to modernize certain programs to achieve savings. they also recognize we need to simplify and reform the tax code by cutting reform and

subsidies and many things that benefit a slew of special interests. simple mathematics shows us $1 of cutting programs will work. the clock is ticking. there are plenty of ideas out there for reducing the deficit and have been thoroughly debated. we have a menu of options. i think all of us would agree that if the committee were to fail, and i'm confident that it will not, but it will not be for a lack of ideas, but for a lack of political will. there are some who believe that the next election will somehow bring about a huge new political alignment heavily there allow republicans or democrats to get 100% of what they want in the way they want it. both parties suffer from that illusion from time to time. it is a dangerous illusion that will put the long-term economic health of our nation at risk. it is time for both sides to bite the bullet, to put the economy first and implement a

long-term deficit reduction plan. i stand for a compromise. compromise is not a dirty word. is the difference between a divided government that works and a dysfunctional government that does not. this sunday marks the 10th anniversary of the awful day when our nation was attacked. in the aftermath of that awful september day, our nation showed its true character as rallied to gather to lead -- together to meet a common challenge. we must unite together to get back to work and get our fiscal house in order to ensure a brighter future for our children and our country. thank you, mr. chairman. >> thank you. the chair now calls of the rules of the joint committee and asks the court to report. -- the clerk to report. >> proposed rules of the joint committee on deficit-reduction.

without of -- >> without objection, the first reading of the rules is dispensed with. the rules will be open for amendment at any point. the chair recognizes himself. as all members know, these rules were negotiated on a bicameral, bipartisan basis. they are designed to comport the rules of the standing committees of the house of those with the senate to ensure this body can operate as closely as possible to any standing committee of either body. i urge their adoption. and i yield back. it is there any other discussion of the proposed joint committee roles? >> mr. chairman. >> the chair recognizes the co- chair. >> mr. chairman, i will do -- i do want to enter into a colloquy to discuss the term meeting as used in these roles.

both clause 2 of 11 in the standing rules of the senate, provides meetings for the transaction of business, which includes markups of reports. the house and senate rules provide similar transparency requirements of those meetings, as we have proposed in the roles. i want to clarify that the use of the term meeting in these roles has the same traditional meeting in both houses and does not include less formal caucuses or working sessions that would not be covered by either the house or senate rules in the normal ordinary court. >> if the gentle lady will yield, the distinguished co- chair is correct. that reflects our understanding as we have been working on this particular rules package. is there any of a discussion of the rules package? >> mr. chairman. >> the gentleman from maryland is recognized. >> would this be the proper time to inquire about the hearing schedule?

but the gentleman is yielded five minutes. >> thank you. we have our first scheduled meeting next week. i think is an important kick off hearing. the head of the cbo office -- i know we have the requirement appropriately that we have a week's notice before hearings. i know the cochairs are now involved in trying to decide what the hearing schedule will be. i want to underscore a point that a couple of others made, a number of us have reference on both sides, reference the work of the bipartisan commissions, other bipartisan commissions that have met with in the last year. as i said, i doubt any of us subscribes to all of the proposals they made, but given the short amount of time we have, about 77 days, i would suggest and hope that it is

appropriate that we get their input as we go along and try to get it as quickly as possible. because they spend a lot longer time than we actually have to address some of these issues, and at least they can provide a menu of options. we can take them or leave them as we wish. i would inquire of the cochairs what the status of putting together the hearing schedule is. >> is the chairman will yield. >> i will yield to this distinguished co-chair. >> thank you for your question. the co-chair and i have been working through a series of decisions, including a number of proposals we have received on the subject and times for hearings. we hope to have a proposal for all of our members. we are quickly working through that. i think we are very conscious of the need to get this done quickly. the seven-day notice obviously puts intense pressure on us and we will be working for that and we intend to get through all of our committee members as with

his possible favorable for the hearings. >> and i will associate myself with my cochairs remarks. does the denman yield back? is there for the discussion on the rules package? if there is no further discussion, the question our curse on favorably reporting the rules. all in favor? those opposed? the eyes appears to have it. the rules are favorably reported. without objection, staff is authorized to make technical and conforming changes to the rules approved by the joint committee today. so ordered, the joint committee now stands adjourned. [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2011]

>> in a few moments, federal reserve chairman ben bernanke says lawmakers need to come out with a long-term plan for deficit reduction and avoid the short-term cuts that may hurt economic growth. in about 40 minutes, an update on how terrorists finances have been disrupted, including comments from treasury secretary tim geithner. and then president obama's speech to a joint session of congress outlining his plans to create more jobs. a couple of life begins to tell you about tomorrow morning. the former vice-president dick cheney will be at the american enterprise institute to talk about how the u.s. responded to

the 9/11 attacks. that is on c-span3 at 9:00 a.m. eastern. also on c-span3 at 11:40 a.m. eastern, president obama will be just south of washington following up on his speech tonight to congress. speaking about jobs and the economy at the university of richmond. >> "book tv" features 9/11 authors the saturday. and sunday, others. also this weekend, pulitzer prize-winning washington post reporter suggests that the federal government's efforts to protect america after september 11 are secretive and dangerous and need to be exposed. she is interviewed by a former undersecretary of defense, douglas vice. also, a political memoir. dick cheney talks about his experiences in 9/11 and the lessons he has learned since

then. you can also look forward to his interview by bob woodward. a complete schedule is online at booktv.org. >> ben bernanke says that at its september 21 meeting, the federal reserve board will consider new steps to promote economic growth. speaking at the economic club in minnesota, mr. bernanke also said lawmakers need to come up with a long-term plan for deficit reduction and to avoid short-term cuts that may hurt economic growth. this is a little more than half an hour. >> i'm very happy to be back in minneapolis and i've been here a number of times. and i have close connections here.

i'm very delighted to be kicking off your speaker series of the economic club of minnesota. thank you for inviting me and thank you for coming. what i would like to do today is provide a brief overview of the u.s. economic outlook and conclude with a few thoughts on monetary policy and on the longer-term prospects for our economy. in discussing the prospects for the economy and for policy in the near term, it appears recalling briefly how we got here. the financial crisis that gripped global markets in 2008 and in 2009 was more severe than any since the great depression. economic policymakers around the world saw the mob -- the mounting risks of a global financial meltdown in the fall of 2008 and they understood the economic -- the dire economic consequences that such an event could have appeared governments and central bank's board forcibly and in close coordination to avoid the

collapse. actions were company both in the u.s. and abroad by substantial monetary and fiscal stimulus. despite these strong and concerted efforts, severe damage to the global economy could not be avoided. the freezing of credit, the sharp drops in asset prices, this function in financial markets, and the resulting blows to confidence sent global production and trade into a free-fall in late 2008 and early 2009. it has been almost exactly three years since the beginning of the most intense phase of the financial crisis, and the late summer and fall of 2008. and a bit more than two years since the beginning of the economic recovery in june of 2009, as determined by the national bureau of economic research. where do we stand today? there has been some positive developments in the last few

years. in the financial year come our institutions are stronger and more stable. credit has improved for many borrowers, although it remained tied for many. the balance sheet and income prospects of many potential borrowers remain impaired. structural reform is given -- is moving forward in the financial sector with ambitious domestic and international efforts under way to enhance financial regulation and supervision, especially for the largest and systemically most important financial institutions. nevertheless, it is clear that the recovery from the crisis has been less robust than we had hoped. from recent comprehensive revisions of government economic data, we have learned the recession was even deeper and the recovery weaker than we had previously thought. indeed, aggregate output in the u.s. has still not returned to the level attained before the

crisis. importantly, economic growth over the past two years has, for the most part, been at rates insufficient to achieve a reduction in the unemployment rate, which has recently been fluctuating above 9%. the pattern of sluggish economic growth was particularly evident in the first part of this year, with real gdp estimated to have increased at an annual rate of less than 1% on average in the first and second quarters. some of this witness can be attributed to temporary factors, including the strain put on consumers' budgets by the russians early this year in the prices of oil and other, -- by the runups early this year in the prices of oil and other commodities. with commodity prices coming off their highs and manufacturers' problems with supply chains well along toward resolution, growth in the second half seems likely to pick up. however, the incoming data

suggests that other, more persistent factors have also been holding back the recovery. consequently, as noted in a statement following the august meeting, the federal open market committee, the fomc, now expects a slower pace of recovery over coming quarters than it did at the time of its june meeting, with greater downside risks to the outlook. one striking aspect to the recovery is the unusual weakness in household spending. after contracting very sharply during the recession, consumer spending expanded moderately through 2010 only to decelerate in the first half of 2011. the temporary factors i mentioned earlier, the rising commodity prices, which has hurt household kowt -- household purchasing power, and the destruction in japanese production which hurt auto sales are parts of the

celebration. but there are other had went as well, including the persistently high level of unemployment, slow gains in wages for those remain them -- remained employed, falling house prices, and debt burdens that remain high for many, notwithstanding the households in the aggregate have been saving more and borrowing less. even taking into account the many financial pressures they face, households today seem exceptionally cautious. indeed, readings on consumer confidence have fallen substantially in recent months, as people have become more pessimistic about both the economic conditions and their own financial prospects. compared with the household sector, the business sector generally presents a more upbeat picture. manufacturing production has risen nearly 15% since its trough, driven partly by a growth in exports. indeed, u.s. trade deficit has risen substantially, relative to where it was before the crisis,

reflecting in part the strength of goods and services. business and software has also continued to expand. corporate balance sheets are healthy, and all the corporate bond markets have tightened somewhat of late, companies with access to the bond market have generally difficult -- little difficulty. problems are of it in the business sector as well. -- are evident in the business sector as well. investment in the business sector in shopping malls remains at a low level, held back by vacancy rates and in some cases, difficulty in obtaining construction loans. in business surveys, uighur conditions recently with businesses reporting slower growth -- weaker conditions recently with business reporting slower growth. why has this recovery been so slow and erratic? historically, recessions tend to

sow the seeds of their own recovery as a reduction in spending generate pent-up demand. as the business cycle bottoms out and confidence returns, the pent-up demand, augmented by stimulus of monetary and fiscal policies is meant to increase reduction -- production and hiring. increased production and business revenues and increased hiring raises household incomes, providing further impetus to business and household spending. an improving income prospects and balance sheets also make household more creditworthy and financial institutions become more willing to lend. normally, these dolmens create a virtuous circle of rising incomes and profits, more favorable financial conditions, allowing the recovery to developmental. these restorative forces are at work today and they will continue over time.

unfortunately, the recession, besides being extraordinarily severe as well as global in its scope, was also unusual in being associated with a deep slump in the housing market and an historic financial crisis. these two features in combination have acted too slow in natural recovery process. notably, the housing sector has been a significant driver of our recovery for most recessions in the united states since world war two. but this time with an overhang of distressed properties, and ongoing hansard by both borrowers and lenders about continuing price declines, the remaining home construction has remained at one-third of its pre-crisis peak. it has also hurt producers of a wide range of goods and services, such as household

appliance and home furnishings. moreover, even as tight credit for builders and potential home buyers has been one of the factors restraining housing recovery, the weak housing market has, in turn, affect the financial markets and the flow of credit. the sharp declines of house prices in some areas has left many homeowners under water in their mortgage crisis. this has led to stress for financial institutions as well. as i noted, the financial crisis of 2008 and 2009 played a central role in sparking the global recession. a great deal has been and continues to be done to address the cause and effects of the crisis, including extensive financial reforms. however, although banking and financial conditions in the u.s. have improved significantly since the death of the crisis, financial corp. -- financial crisis continues to be a significant dragn