have talked to tell me that they are not growing, they are afraid to expand. they are afraid to hire anybody because of what government is going to do to them next. a man walked up to me a few weeks ago and said i was a businessman, i lived through clinton and bush. they did not bother me. i could run my business, no problem. but this president -- i have to get out here. i had to get involved. i'm spending half of my days complying with new regulations. tell me how to run my business. the president of the united states last year alone -- over 150 regulations were passed that cost the economy over $100 million a year. that is two and a half times the normal rate. this is a president who thinks he knows best. not just to run your health care but to run -- if you are a

farmer or a manufacturer or an insurance agent or a banker, he will tell you how to run every aspect of your business. whatever it is. they know better. they are going to micromanage us. because you are incapable of freedom. that is what they believe. that is what the kings and emperors and queens of old will leave. but we rebelled against those leaders -- believe. but we rebelled against the leaders and stood up and said we believe we are capable of building a great society, a great economy. so i put forth an economic plan that says every single obama regulation that cost the economy more than $100 million a year will be repealed on day one of my administration. [applause]

we need to stimulate its economy not by spending more federal dollars but by letting you keep more of your dollars. that is what my tax plan does. it goes to do you believe in? president obama belize the stimulus package was government allocating resources, borrowing money, giving it to certain groups they favor and that would help the economy. -- believes the stimulus package was government allocating resources, borrowing money, giving it to certain groups they favor and that would help the economy. they said it failed because it was not big enough. it failed because it was not the way america solves its problems. america sells its problems -- solves its problems by taking on

the responsibility themselves, giving them the ability to resources and get government out of the way to take this spirit and pursuance of their dreams instead of building up dependency programs so people rely more on the government. we put a tax plan in place, a corporate tax plan that cuts the corporate tax which is at 35% today. the highest in the world as of april 1. we take a corporate tax -- the effective rate of that tax if you look at the corker revenue -- corporate revenue, it is about 18%. there are so many exemptions, deductions, loopholes. companies spend all sorts of money trying to avoid paying taxes. and hire a lot of people and spend a lot of money and structure their business not to

optimize but to optimize in some cases their tax returns. what we do is say let's get rid of all the junk, cut the corporate tax to 70.5%, to make it a attacked -- make it a flat tax. [applause] you expense everything. simple. the smallest business and the biggest business spend the same amount of time on their taxes. that level the playing field for the little guy who does not have all those people who can restructure his business to optimize his tax return. this is pro-growth. it does not have a huge impact on the revenues to the federal government. in fact, it will increase it. businesses will be more efficient and grow. one sector of the economy -- i

believe in reducing taxes. you heard me say that. our income tax for individuals, we cut the top rate down to 20%. that was the top rate under ronald reagan. if it was good enough for ronald reagan, it is good enough for me. [applause] we simplify the code, we throw it out and replace it with five deductions. children, charities, pensions, health care and housing. everything else goes. make it a very simple code. something that everybody can -- there is a reason i do this. i actually do my own taxes. i always felt if i was going to be a member of congress and voting on tax bills, i should have to do my own taxes as penalty for doing the things we

do to the tax code, right? see what everybody else in america has to go through. i believe in practicing what you preach. i believe in going out there and saying what i believe and then doing what i say i am going to do. when it comes to this tax code, i will talk about how we're going to create in one sector of the economy incentives to bring the jobs that built northeastern ohio and southwestern pennsylvania. that is the manufacturing sector of our economy. it created an economic boom for this area and put america on the map economically. we have people in this country who do work hard, who want to work. they came here because they wanted the freedom and opportunity. i do not know if any of you ever go back to the countries from which your ancestors came.

i have. my ancestors came from italy, northern italy. i have gone back there and they are great folks. great food. but they are different. they are different than my grandfather when he came to this country. my grandfather did not to be ruled. just like your ancestors. they wanted their freedom. they wanted to be able to work hard because he did work hard. they wanted their hard work to pay off in something better for themselves, their family and community. that is why they came here. art -- our dna is different than the rest of the world. people see us as a beacon of hope because america rewards hard work. america allows people to rise if they have a good idea, stick to it in persevere.

that is what america is about. that is why people come here to read you are the descendants of those people. -- come here. you are the descendants of those people. my relatives when i go back and visit, they are nothing like my father. -- grandfather. in many respects, they were happy being ruled and not having to work so hard. but that is not who we are. so when we see a government that is fixated on growing dependency programs, growing the size of government, encouraging states, forcing them to sign more people up to medicare and food stamps, they are doing things that the road -- erode the very foundation, the very dna that americans have that is different from the west of the world -- rest of the world.

my economic program will not be measured on how many people receive government but how many people get off government benefits and get back to work. [applause] so we say to all of those people that want an opportunity to rise again, those who feel like they have been paddling alone because their skills that doesn't quite match up for a lot of the knowledge base economy jobs and the opportunities that does create -- yes, we do need people to go to schools of higher education and get that degree that is important in science and engineering and math. we need that. but we also have to make sure that folks who do not have the

aptitude to do it -- -- the aptitude or desire, they have the opportunity too to apply their skills in meaningful work that creates something. it gives them a chance. to be able to rise in society. [applause] we did that here in eastern ohio and western pennsylvania. we help build america. we had the skill sets, the work ethic. all we need now is an opportunity to prove it. right now we have an uneven playing field. the jobs are shipped out of this country to china, mexico and other places. because america made manufacturers on competitive -- un competitive. it costs 20% more to do business here in america as a

manufacturer that does in our nine top trading partners on average combined. it is a lot more than 20%. some, it is less. the point is -- we have our manufacturers start at a 20% differential, excluding labor costs. even at we paid the same wages, we would still be at a competitive disadvantage. people say why are you treating manufacturing different than the rest of the economy? because i cut the manufacturing tax. i. zero it out. -- i zero it out. [applause] the reason i do is because restaurants, retailers, banks, other businesses here are in this country, construction jobs,

they do not compete against china for those jobs. the manufacturers compete against those countries that want those jobs and will do everything they can to get those jobs. because it creates wealth. it creates opportunities. it does the things, a critz in national security platform were we are making the things we consume in -- it creates a national security platform where we are making the things we consume in the country. we are going to say if you send your jobs overseas and make money overseas, we want you to bring that money back. if you bring that money back, it is taxed at 35% right now. under our plan, it will not be taxed at 35%. if you bring that money back and invested in plant equipment in america, you will not pay any tax. you will see a boom in

manufacturing construction, jobs here in eastern ohio. [applause] we have a lot of work to do to get the economy growing again. energy is a big part of that. part of growing manufacturing. every time you go to the pump when you see a 0 on the pump, does remember zero for o for obama. that is why your pain those extra zeros at the end of that gas bill. [applause] we can do something about energy. it is simple. the dow what is going on here in ohio and pennsylvania -- look at what is going on here in ohio and pennsylvania. the jobs being created. look at what happened to natural gas prices. seven years ago, it was $13.

it is now $2.50. why? supply and demand. you create more supply, prices go down. this is something that is basic. if you listen to the president, he will say the only way -- drill, baby, drill doesn't work. unfortunately a bunch of students here applauded when he said that. if this sort of sad. if you take economics 101, it is supply and demand. president obama took economics 50.5 because he talked just about the man and not supplied. both work to reduce prices. one actually create jobs, increasing supply. the other lois costs for energy and employers the quality of life in america. -- lowers the costs for energy

and improves the quality of life in america. when the president says we want to reduce your energy consumption and drive up the cost of energy, understand what he is saying. the we need to settle for less. we need to except america that is in decline. when you except an america that needs to be managed in its decline from a government who allocate your resources and will deny you the opportunity to go out and get those resources. as the president has done by saying no to offshore drilling and drilling on federal land or drilling in alaska or building the keystone pipeline. no, no, no. we need a president who will say yes to energy production and lower cost of energy in this country. [applause]

we have an economic plan and a regulatory plan that will get this economy humming. but we can do all those things. we also have to understand him that america is built on the bottom up. as much as what we need to do is grow this economy. of course, we need to balance the federal budget and i will balloted within five years. that is a promise i will make you and keep. -- i will budget it within five years. that is a promise i will make you and keith. i will cut several trillion over five years. we can take on the tough battles of entitlements. all of them. we are going to adopt paul ryan's budget. [applause]

kasam are going to make sure that we cut out federal departments, at stake -- we are going to make sure that we cut out federal departments. [applause] if we do all those things, " the economy, cut back on spending -- grow the economy, cut back on spending and we do not focus on building the foundation of our country, then i am not sure we will be successful. a lot of people say you just talk about the economy and jobs. i will, i do. if we're kidding ourselves we think that a country where 40% of the children are born out of wedlock, where parents who are working heroically to try to

raise children in single-parent homes which have a failure rate economically, and poverty rate five times what two-parent families have, now approaching 40% in america every day we are kidding ourselves. if we do not talk about doing things to help restore and encourage the american family and marriage and fathers to give responsibility for their children, building networks of support around individuals and families at the local level. that is how we were able to have government limited. because families were strong. churches were strong. volunteer and civic organizations were strong. people look out for each other in the community. you go into the areas of america, the areas of cleveland when you do not see any fathers,

what do you see? do you see freedom? opportunity? d.c. jobs? d.c. -- do you see jobs, p olice, government? everywhere. that is the reality. it has to be a community effort. it has to be a community effort across this country. but we have to talk about it. and i know people get upset and say why are you talking about this? because that is what allowed america to be free. is that we did not need a big, strong powerful government because we were able to take care of ourselves. and that is now harder. ladies and gentlemen, we need a president who will go out and tell the truth. be honest about the challenges that we face.

there is a book written the other day by charles murray. it talked about the breaking apart of white america. he wrote about white america because he wanted to focus on that particular element of society and talk about what is going on in that particular -- he has written books about the minority communities in the past. what he said was -- those of the top end of the income scale actually do have strong families and communities. as i said, those having children out of wedlock are failing and falling apart, those communities and families are struggling in america. he said that those were doing well in society practice all the things that is talked about. but they are too timid to preach

it because they criticized for saying what we know is true. the book -- the brookings institute did a study. is it you do three things, you're guaranteed in american not to be in poverty. work. surprise. that is a big deal, ok. give him credit. give it up to the brookings institute. [applause] so now liberals understand you have to work. this is good. number two -- graduate from high school. no. 3 -- get married. and do not have children until you get married. if you -- [applause]

if you do those three things, the chances that you will ever be in poverty in america is 2%. if you do those three things. if you do those three things, the chances that you will at some point in time in your life be earning money at the top half of income earners in america is 77%. if you fail to do just one of those three things, the chances that he will be in poverty is 74%. and the chance that you will ever in your lifetime earn at the top half of earnings in america -- 4%. we can talk about cutting taxes. balancing the budget. but we're kidding ourselves

unless we have an understanding of what really makes america work. and that is faith and families and communities to build strong net worth of support for those families. [applause] finally, i have to talk about this -- i do not talk about it in all of my speeches. so much is going on overseas. as president has got to stop -- this president has got to stop apologizing for america. [applause]

he has -- his gut reaction is always to blame us, to blame our men and women in uniform. stop it, mr. president. stand up for our troops, stand up for this country. [applause] we are a beacon of hope -- that your ancestors came to this country. but we are not just a beacon of hope for those who came here. we are a light for the world to follow. we should not apologize for being bad light. [applause] others look to us, to the

malaise we represent, to those freedoms to a limited government -- to what we represent, to those freedoms of a limited government. look at the world because of america. we did not only change this country. when our founders wrote the declaration of independence, life expectancy in america and most of the world was 35-40 years of age. it had been that way for thousands of years. because nobody, no country was going to give their subjects freedom to pursue their dreams. no one was going to respect the dignity of every human life. and allow them to achieve great success. without the government confiscating it.

then america came along. and it did 200 years, life expectancy more than doubled. we went from an agrarian society to an industrial age of revolution and it continues. and yet it did not just benefit us, it benefits the world. for those in the world who created the but we have and have added to it as they have, it is because they followed our lead. this is something to be proud of. the world economy -- trade which is so vital in our ability to keep our standard of living high, to create opportunities for other around the world to improve their standard of living -- why didn't that happen before?

did you ever think about that? america as the only country that had the military that patrolled the seas, that did not do it for the benefit, the not confiscate things as people still the seven seas. we did it for everybody's benefit and yet we go around and think we have made so many mistakes. the world as a prosperous place because america's navy is on the high seas, protecting coasts, going around the world. do not apologize for that. [applause] what does the president want to do? pullback. cut the military. when i was born, the military comprise 60% of the federal budget. it now comprises 17%.

and what is the one area this president has cut? the military. twice. he is about to do it a third time. he will not cut any entitlements, he cut -- he creates new 132 trillion dollars worth -- $2 trillion dollars with obamacare. when it comes to protecting our national security interest, treating the opportunities for economic prosperity around the world and people will love us and trade with us and allied with us, no, the president wants nothing to do with that. it is all about building his power base here in america. you think when we pull out of east asia the chinese will be good about shipping goods to and fro unless it is to their benefit?

we do not even think about these things. this is what we take for granted. we take so much for granted. in this administration, if it is reelected, will be lost. cut at the end of that declaration of independence, our founders wrote -- they pledge to each other their lives, their fortunes and their sacred honor. they did that and a time when most rational beings but they were signing a death warrant, execution for treason against the most powerful military in the world. they believe so fervently in freedom, in god-given rights,

the dignity of man and the potential of human spirit being unleashed in the world. that they were willing to take that risk. risk everything. here we are we stand on their shoulders. generations who did just that risk their lives. their fortune. and their honor. what made the greatest generation the greatest generation? because they had higher character, they love this country more than you? no. they eventually recognized when freedom was at stake and they did what was necessary to preserve it. that made them great. no one is asking you to do with the greatest generation has done. no one in these next few days will ask you to go out and

sacrifice your life to make sure that we have an opportunity to win this election and preserve freedom. no one is asking you to put your fortune on the line. although if you go to rick santorum.com when you get home -- [laughter] [applause] you can see my opponent has a little bit more money than i did. but by the way, last month, we got the nation's -- donations. 130,000 donations last month. [applause] we raised -- 2/3 of those donations were small dollar donations, compared to the

person outspending me. 9% of his donations were small dollars. two-thirds were maxed out contributors. i am out here fighting with you with the people of america to make big changes in this country. to take on the old boy network and those who would like only a little change in washington. who believe we win elections by putting a moderates instead of putting up people with clear convictions and a vision consistent with the founders and the greatness that built this country. i am not here sacrificing and putting on my line the last thing our founders did. honor. i stand on the shoulders of the -- an italian immigrant father

and grandfather. who worked and sacrificed. my grandfather in the coal mines, my dad in wwii and serving veterans afterwards. they taught me how special this country was, how privileged i was to be here. they told me about where they came from and they told me to keep our country free. ladies and gentlemen, this is your charge. it is a charge of every generation. we are blessed, and i mean this. we are blessed to be here at a time when america needs you. you are here in ohio where you seem to be the center of the political universe in america.

[applause] when ohio whispers, people listen. when ohio shouts, we want a conservative, this country will stand up and join you. [applause] in 2008, our elections were determined by a candidate who went out and promised that he could solve the problems that confronted america. all you had to do with trust him, that he was able to take on the problems that confronted us in this economic crisis we were

in. if he trusted him, he could turn america around. sometimes that happens in times of crisis. leaders come along and we tend to think maybe they can do things for us. but americans are now a little more sober, understand what has happened and they now realize that what we need is not a president who we can believe in, when needed president who believes in you. -- we need a president who believes in you. [applause] help me out, ohio. sign up at the website. go out and work these next few days. we will bring home a big victory for freedom in america. thank you and god bless you. god bless.

[applause]

>> all right. we are going to wrap this up. i want to thank a few people. [unintelligible] [applause]

my family, my son. i want to bring on -- before we do the benediction. >> mitt romney, chris, pawlenty. >> obama changed the entire dynamic. >> look inside the new hbo movie and book that it the inside story in what happened on the 2008 presidential campaign. >> i love those hockey mothers. the difference between a hockey mother and a pit bull?

lipstick. >> sunday, the co-authors. >> their expectation of that speech was that she wasn't on allied asset to the campaign. for a weaker 10 days after that, she was. -- a week or 10 days after that, she was. they came out ahead of barack obama by as much as five or six points. >> we will talk about game changes sunday at 6:30 p.m. eastern on c-span or any time at c-span.org. now a speech by defense secretary leon panetta at the mcconnell center at the university of louisville. he talks about the dangers of cutting the defense budget while america is at war and facing terrorist threats. mitch mcconnell introduces secretary panetta as a part of lectureonnell center 's series. this is an hour. [applause]

>> if everyone would please be seated, we will get started. it is wonderful to see so many of you here tonight. on behalf of all of us at the university of louisville, welcome. i am especially delighted that in our audience we have numbers of our board of trustees, overseers and others from our university family. we are also delighted to have the mayor and his wife here tonight. many members of metro council and our state legislator and of course our fm -- former senator. we are gratified to see some members of our military unit. it is my great pleasure to also offer the republican leader of the united states, senator mitch mcconnell. he is one of the best friends anybody could ever have been especially if you are the

university of louisville. he is the father of parliament -- prestigious dollars program -- scholars program. i hope you can see what a wonderful young people we have at the university. we are proud that his archives and the civic education center is here at the university. senate mitch mcconnell has made strengthening our universities one of his top priorities. he understands that universities serve as engine for economic growth and solving problems of the future. the senator went about strengthening our universities with his trademark focus and tenacity. he is provided unprecedented support for research in infrastructure project at kentucky's university. u of l has been able to invest in important undertakings like the cardiovascular innovation institute, the center for translational research.

he is off to make higher education more affordable. setting aside the label education act is helping thousands of families send their children to college. this law and encourages families to invest in savings plans like the kentucky education savings plan trust and the affordable free paid tuition program. the senator has been one of the most outstanding champions of higher education in the history of the commonwealth. we have been very fortunate to have him as our senator and i have been fortunate to call him my friend. senator mitch mcconnell. [applause] >> good evening. thank you so much. you guys are doing a fabulous job running this university which is getting better and better every year. i also want to an analysis of performance of dr. gary, thank you for the wonderful job you

are doing. [applause] i also want to welcome this evening our many men and women in uniform, especially our friends from fort knox, fort campbell, the bluegrass army depot, the kentucky national guard, the reserve forces from all of our services and all of our heroic veterans. thank you very much for your service to our nation. [applause] i also want to take a moment to recognize the sacrifice of lieutenant-colonel john loplis who was killed in kabul, last saturday. he was an air force officer. he leaves behind a wife and two daughters. i know everyone here, including

our honor speaker, grieves. we are celebrating a first tonight. this is the first sitting secretary of the events we have had in the 21 year history of this program. it is an honor to have him here. more than 10 years after september 11, america remains a nation facing a changing balance of power. our position of primacy in global affairs must be reconciled with a national debt that exceeds the size of our economy and such -- the president relies on the secretary of defense to provide civilian leadership of armed forces as they engage with enemies across the world. fortunately for us, the secretary of defense is leon panetta, a man who has never

shied from a challenge. he has proved his mettle -- medal often in the most difficult jobs in public service. paramount among his many accomplishments is the one that will go down in the history books and still be steady decades from now when today's mcconnell scholars are running the world. he presided over the hunt for an operation that led to the killing of osama bin laden. [applause] the success of the mission to strike the leader of al qaeda is one history making moment, albeit one of the brightest in a history making career. leon panetta believes deeply in public service and it is america's good fortune that he is answer the call to serve again and again. secretary panetta served in

uniform in the 1960's as an army intelligence officer. lt. panetta received the army commendation medal for his service which helped him better understand some of the sacrifices are men and women in the military make, and understanding that guide him today in his role heading up the department of defense. he represented the central california district in congress for 16 years, served the last four of those as house budget committee chairman. his death of knowledge on budget issues led to his appointment by president clinton -- his depth of knowledge on budget issues led to his appointment are pressing clinton. he became a white house chief of staff and a crucial point in our political history and congress and the president are able to pass needed and meaningful reforms in an era of divided

government. after his congressional and white house service, no one could have blamed him if he had enough of public life. but the secretary believes public service is an honored calling. out of government, he and his wife created the institute for public policy based at california state university, monterey. much like the center here, the institute's goal is to instilling in our brightest and the passion -- a passion for public service. we have known each other for many years. i know one thing we have in common is a belief that it is important to find the imaginations of the next leaders, regardless of how the party -- of the party. he has great respect of both sides of the aisle for his confirmation vote last year to become secretary of defense. the tally was 100-0.

every single senator, democrat and republican, were enthusiastic about his selection. he used to be a republican. [laughter] i guess some things, even a former cia director, cannot keep secret. [laughter] regardless of his party and which side of the aisle whoever he is talking to happen to be on, leon panetta has built his career on honesty and by maintaining excellent relations with senior leaders and government of both parties. he can certainly count on the trust and friendship of the senate republican leader. at a time of great challenges to america, our military enjoys the leadership of a secretary of defense who is singularly well- suited to advise the president and those of us in congress on the best ways to preserve america's role in the world. i am hard-pressed to name

another person in government today who believes more in the importance of public service or in the deep gratitude we owe members of our armed forces. ladies and gentlemen, it is my distinct pleasure to present to you the 23rd secretary of defense, the honorable leon panetta. [applause] >> thank you very much. thank you. i deeply appreciate the kind introduction and your warm reception and the opportunity to be here in louisville tonight. i am truly honored. this is a great honor to be at the university of louisville and to see such a large crowd

gathered for this event. this is a great university. this is a great state. north dakota have a great basketball team. -- and you have a great basketball team. [applause] being here was a large audience makes me wonder how many of you thought that the speaker this evening was somebody named patino and not pantta. -- panetta. you are deftly getting an at- tonight -- defnitely getting an italian tonight and both of us to believe a sound defense is a key to winning the game. [applause] i would like to thank the provence -- provost and dr. gary

for hosting me tonight. i would like to particularly thank my friend senator mitch mcconnell for that kind introduction and for inviting me to come down to visit his all modern -- alma mater and to see this great city and the people of louisville. mitch mcconnell and i got our start working in the united states senate as legislative aides in the 1960's. i was working for a republican at that time and so was he. between the two of us, we have over 40 years of experience in washington. you have every right to question our sanity. [applause]

but not our sense of duty. over the decades of working together, i have developed a great respect for mitch and his leadership and his dedication to public service. we have always enjoyed a strong working relationship and a strong friendship. because whether you are the son of an italian immigrants or not the son of a father who fought in world war ii, we both have been blessed with the opportunity to serve this great nation of ours that we love so much. when i learned that i would be coming down here to the bluegrass state to give a speech, my thoughts turned to one of senator mitch mcconnell's distinguished predecessors, henry clay.

he was an extraordinary public servant. he also had a great way withpe h on the floor of the yes, replied clay but he seemed determined to continue speaking until your future audience arrives. [laughter] i promise that i will not be speaking for posterity or internally this evening to alsot the future of the nation. tonight, i want to talk about service to the country. how public servants help force the strong democracy we have today and how we all have an opportunity and responsibility to help secure and strengthen that security for tomorrow. this great university and the

mcconnell center are making vital contributions to education -- educating the citizen leaders who will help confront the challenges and opportunities that facall of us in the 21st century. i had a chance to meet with those students before coming here. it was a great thrill to have that opportunity. my wife and i established a similar public policy institute at california state university, monterey. the purpose is to try to inspire people to get involved and be part of public service. i deeply appreciate the good work that all of these education centers do to try to give young people a chance, the opportunity to see what public

service is all about. that mission is important because all of us have a tremendous stake in how the nation navigates the considerable challenges that we are facing from the economy to energy, for more -- from war to international diplomacy, deficits, defense. all of you have responsibility as citizens to help the country confront the challenges. it is the responsibility that does not just rest with the president and with the elected leaders of the nation. it rests with all of us and with all of you. for more than two centuries, our democracy has survived because our heritage is built on giving

something back to the nation. that is at the heart of what public service is all about. i am a big believer in the responsibility of public service. that goes back to what this country meant not only for me but for my family. as i said, i am the son of italian immigrants who like millions of others, came to this country with few skills and little money in their pocket and very little english language ability. but they understood the dream and that is america. i would ask my father why would you travel those thousands of miles to a strange country? they came from a poor area of

italy but they at least have the comfort of family. why would you pick up, leave your family and travel all that distance? i never forgot his response. he said because your mother and i believed that we could give our children a better life. that is the american dream. to give our children that better life. and it is the fundamental bond that we all share. every sunday at dinner as a boy, we had a tradition in my family. my parents would tell my brother and myself that we had a duty to give something back to this country which gave them so much. with that advice came a set of ballets -- hard work -- values.

hard work and honesty. qualities essential to life and citizenship. as a young boy, i was taught the importance of hard work. my parents ran a restaurant in monterey. my earliest recollections work washing glasses in the back of that restaurant. they believed that child labor was a requirement. [laughter] then they bought a farm and my father planted walnuts. i remember moving irrigation pipes, working with a hoe alongside my father. as the trees matured, my father would go around and knock down the walnuts. my brother and i would be under the trees, picking up the walnuts.

when i was elected to congress, my father said i was well- trained to go to washington because i had been dodging knots all my life. -- nuts all my life. [laughter] it was good training. along with the inspiration of my parents and 2 years of service in the army, and at that time a young president who said that we should ask not what your country can do for you but what you can do for your country, all of that inspired me to serve. in many ways, kennedy inspired a whole generation. the nation benefited from that, from the impact of a generation that got involved in civil rights and education, work in

the peace corps, and got involved in issues of war and peace. that torch of service and sacrifice has now passed to a new generation. this nation, once again, has benefited from that. it has been a decade of turmoil these last 10 years. of war and crisis. like every such decade in our history, there have been those who are willing to step forward, to give something back to their country. no group has given more than the mena nd women in the united states military -- than the men and women in the united states military. [applause]

the sacrifice that they have made, and that their families and loved ones have made, are true symbols of what public service is all about. stepping forward to serve the country at a time of war takes uncommon courage and uncommon bravery. and millions have done so in the 10 years since our country was attacked on september 11. that includes many here in local -- in louisville. tonight, we are honored to be joined by soldiers from nearby fort knox and by members of the kentucky national guard. this audience includes, as i understand, nearly 800 military veterans now enrolled at the

university of louisville. we are also joined by the newest members of the -- of the military program, cadets from the rotc. they will have the opportunity to join more than 300 louisville rotc graduates who have served in the military. i am also a product of an rotc program at the university of santa clara. that is what led to my serving two years in the army. i really appreciate the benefits of that program in helping young people be able to enter our military. to the cadets i want to say that in volunteering to make this commitment, you have distinguished yourselves in a

profound and honorable way. you have chosen the path of service. i would urge all of you here, even those for whom military service is not an option or a desire, to consider how you can give back to your country that has given us so much. remember that you have a responsibility and an opportunity to contribute and make a difference. i have always said that the test in life is whether somebody made a difference. for those who are serving or planning to serve in uniform, please note that the country is inspired and strengthened by your example. every day, every day that i have

served in the office of secretary of defense, and before that as director of the cia, i have been privileged to see this new generation proving once again the strength, and the resilience of the american spirit and the unflagging commitment of our citizens to be willing to fight and yes, to sacrifice, for the american dream. thanks to their service and sacrifice, our country has, in many ways, reached a strategic turning point after 10 years of war. i believe an historic opportunity to help secure the american dream of a better future for our children. because of their service, because of their sacrifice, we were able to bring the iraq war

to an honorable conclusion and give them the ability to govern and secured themselves. it will not be easy. they will have an opportunity to establish a democracy in a key part of the world. in addition, because of their service and sacrifices, i was able to go to iraq when we cased the colors. it was a ceremony in which we pay tribute to those who sacrificed their lives to allow a iraq to be governed by the iraqi people. last night, at the white house, we honor those who served in the rack. -- in iraq. it was the beginning, not the

end, of a series of attributes that we will pay to the veterans of that country. afghanistan remains an extremely challenging campaign. 2011 was a turning point in that effort as well. we have begun to draw down our troops and transition to afghan- led security and responsibility. we have seen the level of violence go down and the ability of the afghan army to engage in operations and secure areas that we have transitioned to their control. our goal is that by the end of 2014, the afghans will have the responsibility to govern themselves. let me be very clear -- the brutal attacks we have seen over the last few days on our troops will not change and will not alter our commitment to get this job done.

on terrorism, we have successfully weakened al qaeda and decimated its leadership under bin laden. we have demonstrated we will continue to do everything possible to protect our citizens and our security from terrorism. meanwhile, we have reasserted our central global leadership role and shown that we remain an indispensable partner to a stable and secure world. in libya, we lead an international coalition that helped give libya back to the libyan people. i had the chance, recently, to go to tripoli. i was deeply moved by the determination of the libyan people to try to forge that better future for themselves. more broadly, for my travels as

secretary of defense, over the last eight months, a consistent theme has been the desire by countries across the globe, including our allies, old allies, new partners, to increase their partnership with our military forces. all of this has been achieved because there were brave men and women who were able to serve their nation. who were willing to put their lives on the line. who were willing to die to protect this country. we owe it to them to learn the lessons of the past. to build a better future for them and for their children. that means that as they return home, we must embrace them and support them in communities like this. whether it is by helping them

pursue an education at schools like louisville, or providing assistance in starting a job or business. as we turn the corner on a decade of war, it is absolutely vital that we maintain and enhance the very strengths that have allowed us to overcome the challenges that we have faced throughout our history. we must maintain the strongest military in the world, and effective diplomacy and an innovative, dynamic, strong economy. those are all elements of a strong national security. underpinning all of that is the fact that despite all of the frustrations that we have, we have the best system of government on earth.

one that i have said gives all of us the responsibility to govern this nation. that responsibility is a heavy one because, despite what i have just said we have achieved, challenges that still confront us are numerous and complex. there are no simple answers here. there are no simple solutions. we are still a nation at war. in afghanistan. we still face the threat of terrorism. we have confronted it in pakistan. terrorism is still there, still in somalia, still in yemen, still in north africa. they continue to plan attacks on this country. weorea. they continue to strident -- to

threaten global stability. there is a continuing turmoil and unrest in the middle east. rising powers in asia test international relationships. there are growing concerns about cyber-intrusion and cyber- attacks. a whole new area of the war front that can take place in the future. at the same time, we face an additional threat to our national security which must also be confronted. and that is long-term debt and high deficits. as someone who spent much of my time in public service, working on fiscal policy, i believe that if the country does not control and discipline its budgets, it will inflict severe damage on our national security.

it would deprive us of the very resources that we require at the department of defense and it would also hurt the quality of life of the american people. something that is equally important to our broader national security. i refuse to believe that we must be forced to choose between our national security and fiscal responsibility. but to avoid that choice, we have to be willing to make difficult decisions. about how to reshape our defense strategies, how to maintain our military strength for the future. while also doing our part to reduce the deficit. a bipartisan congress, mandated in the budget control act, that

we should reduce the defense budget by $487 billion over the next four years. we have come together as a defense department with the service chiefs, with the combatant commanders, with my undersecretaries, to try to develop a strategy, not just for now but in the future, that would be the basis for making the budget decisions in order to achieve those savings. we have done that. we have stepped up to the plate. this has been an enormous undertaking. but we have developed a plan and a strategy to develop the force that we need for the future. to reduce defense spending by nearly $500 billion over the next decade. of course, for the future, we

will be smaller by necessity. we believe that we must ensure that it is supremely capable and ready and agile and prepared to go wherever we need them to go. in order to defend this country. and that we can maintain that force with a decisive technological edge in order to confront aggression and effectively defend this country in our global interests in the 21st century. we are going to maintain and even enhance our presence in vital regions of the world like the middle east, the asia- pacific region, to develop an innovative force that will establish partnerships and a presence from europe to africa, from latin america to east asia.

let me be clear -- we will be able to defeat any adversary, anytime, anywhere. we must continue to invest in new capabilities like cyber and unmanned systems, space, the continued growth of special operations forces. those technologies will be crucial to our ability to have a strong defense in the future. and we also need to be able to mobilize. that means maintaining a strong national guard. a strong reserve. maintaining our industrial base. so that if we need the ships and tanks, the equipment, that industrial base will be there and we will have the skills and

the crafts that are so important to our national securities, not just now but in the future. to do this, we have to make some painful and politically tough decisions. and we have. i cannot cut $500 billion from the defense budget and not have its impact on the 50 states in some way. let me also say this -- we cannot balance federal budgets on the back of defense alone. we have done our part. now it is time for congress to step up to the plate and make sure that we do not devastate our national defense by allowing this mechanism called sequester to go into effect.

that a sequester would impose another $500 billion in cuts. across-the-board defense cuts that would be devastating to our national defense. additional deficit reduction must be made through a comprehensive and balanced deficit reduction plan. it will involve making decisions not just on defense but on every other area of federal spending and revenues. making these tough decisions is what our forefathers intended when they established this great country. they made this remarkable system of three separate but equal branches of government. it is a wonderful formula for ensuring that our is never centralized in any one branch of government.

it also happens to be a perfect formula for gridlock. the key to breaking that gridlock has to rest with people that are willing to exercise leadership, compromise, and to make sacrifices in order to find answers. as we confront the broader set of choices and decisions that we need to be made to put america's fiscal house in order, all of us in washington need to demonstrate the same leadership, the same leadership that we counted on our troops to display in battle. they made sacrifices in order to achieve their mission. surely, those of us in washington can make sacrifices in order to govern this nation.

we know from our history that the american people have always overcome crisis and adversity. but we cannot just sit back and count on things to work out. it will take leadership. it will take sacrifice. and it will take a willingness to fight to secure that dream for the future. i often tell the story of the rabbi and the priest. they decided they would get to know each other and understand each other's religion. one evening, they thought they would go to a boxing match thinking that if they went to the events together, they would discuss each other's religion. just before the bell rang, one of the boxer's made the sign of the cross. the rabbi nudged the priest and said, "what does that mean?"

the priest said, "it does not mean a damn thing if he cannot fight." [laughter] it does not mean a dam thing -- it does not mean a damn thing if we are not willing to fight for it. if we fight for what is right, i believe we can turn crisis into opportunity. and demonstrate to the world that this resilient american spirit will endure for our children, their children, and beyond. capt. stacey blackburn, a 2004 louisville graduate, also a

mcconnell senator scholar, is also what i am talking about. stacey serves in the army as a jag officer and she recently returned from afghanistan. like me, her decision to enter public service goes back to the lessons that were instilled in her by her family. as a young girl, reading her grandfather's poems about serving in world war two as part of the greatest generation. she, for the first time, learned what it was like to be part of something bigger than herself. she is now part of something bigger than herself. part of the next generation that is willing to fight and if necessary, and died for their country. -- if necessary, die for their

country. like her, we all pledged to fight for that dream of a better life, to fight for an america that will always remain the strongest power on earth. most importantly, to fight for an america that will always be governed by it and for all people. thank you very much. [applause] >> thank you, secretary panetta. you can all be seated. we are not done yet. we have time for a few

questions. we have four mcconnell scholar alums in audience. there should be two on the right and two on the left. put up your hand if you have a question now. let's go quickly to the right. i see one right here. >> my name is meredith. he said it was our duty as americans to serve our country. during your time in washington, what you believe has been the greatest difference you have made in service to our country? what marquette you left for future generations? >> -- what mark have you left for future generations? >> the joy of public service is to get things done. i have never thought that people were elected to office to sit on their rear end and try to

survive. the purpose of being elected is to get things done. i had the good fortune of being in congress at a time when both parties worked together. we had the opportunity to get some things done. probably the one thing -- well, there are several things. let me just say -- one thing that i am proud of is the work that i did on the budget. i was chairman of the budget committee. i had the opportunity to work on budget summits. i was involved in the first budget summit with president reagan. he again cent of his secretary of treasury, chief of staff. we gathered in a small room in the capitaol. we worked through and develop a deficit reduction package. it was not easy to do but we did it.

the next opportunity was i sat in the summit at andrews air force base for almost two months working again with bipartisan leadership and representatives cabinet,sident bush's developing a deficit reduction package of about $500 million. it was tough. it was tough politically but it was the right thing to do. that, combined with and which i was omb director, putting the budget plan for president clinton together, also brought the budget down by about $500 billion. having the opportunity to work on that, it was the result of each of those plans, an economy that was able to move forward as a result of washington's showing some fiscal discipline. the consequence of that was we

balanced the federal budget. not only balanced it, but we had a surplus. i look back on that as an important achievement and i regret that we are now back in the same damn hole and having to come out of it again. i do think that if the same kind of leadership comes together, we can get it done. the other thing i am most proud of is the cia, having worked with some great men and women at the cia to not only develop the information on bin laden, but help with the operation that finally brought him down. that is not bad. [applause] >> my name is jesse. i am a student in the political science master's program. my question pertains to the

dictatorship of belarus. americans are bombarded with media reports on the middle east but few even know the country of belarus exists. i find that worrisome given that millions of dollars from russia have just been invested in the country for a nuclear energy program. secretary clinton said that she supported this program if belarus would adhere to national standards and regulations. the country did not seem to be -- from past actions, it does not seem like that is a possibility. what are we doing for our defense to make sure that this threat does not come about? we are worried about nuclear power in iran. is there any possibility that the dictator in belarus could partner up and develop something that is not important for u.s. interests? >> as i said in my speech, one

of the concerns i have is the proliferation of weapons of mass destruction. we have to be very conscious of the danger of that happening. it is what concerns us about iran and north korea. it concerns us about other nations as well. specifically with regards to belarus, i leave that issue in the hands of the secretary of state. as secretary of defense, i want to make sure we are taking the steps necessary to make sure we are doing everything possible to try to eliminate any proliferation of weapons of mass destruction. that means ensuring that no country uses nuclear power as a vehicle to develop nuclear weapons. that is something we have to stop.

>> my name is raul. as secretary of defense, what are the problems that keep you awake at night? [laughter] >> i have a hell of a lot to keep me awake tonight. there are a number of issues that are out there. i have to tell you, i do worry, however, about this new area i talked about -- cyber war. we are literally getting hundreds of thousands of attacks every day that try to exploit information in various agencies and departments and, frankly, throughout this country. this is obviously growing technology, growing expertise in

the use of cyber warfare. the danger is that cyber -- i think the capabilities are available in cyber to virtually crippled this nation, to bring down our power grid system, to impact on our governmental wallems, to impact on o street -- on our financial systems. they could literally paralyzed this country. it is very important for us to understand that we not only have to defend against that kind of attack, but we have to develop the intelligence resources to understand when both possibilities are coming develop greater capabilities in the cyber-arena. one thing i worry about the most

right now is knowing that this is possible and feeling we have not taken all the necessary steps to protect this country from that possibility. >> thank you for being here tonight, secretary panetta. my question is about the arab spring and the situation in the middle east. we have been watching people in syria and egypt struggle with freedom and democracy. how do you feel the events taking place in those countries impact america's national defence? >> we are going through a very historic time in the middle east. the last time we encountered anything like this was the fall of the soviet elite -- soviet union. suddenly, the number of nations is going on their own and trying to develop what their system of governance will be, how to basically put together the institutions that govern, how to

be able to develop the kind of reforms that they need to put in place in order for people to participate in their government. what is happening in the middle east, what happened in tunisia, egypt, what happened in libya, the turmoil we now see in syria -- we see a middle east that is truly in a changing state in which people are, in fact, trying to achieve a chance to be able to have a better life and to be able to govern themselves. we have seen these dramatic changes. i think the important thing is to try to do what we can to make sure these changes move by the right direction. when that kind of literal

revolution takes place, there are all kinds of forces that come into play. there are those that would like to take advantage of those changes that often times represent extremism, that represent the views we do not concur with. those begin to come into play as well. i think the greatest challenge for the united states and the international community is to do what we can to make sure these countries as they go through these changes can develop the institutions of government, can develop the reforms that are important to developing eight country truly represent greater freedom and greater opportunity to govern themselves for the future. that is not easy. it is a tough challenge, but i believe we have a chance to be able to guide these countries in that direction. as this happens, my view is

that, in fact, it further isolates iran. iran is the influence that tries to undermine stability in these nations. the more these changes take place, the more isolated iran will be. ultimately, i think, the greatest challenge we have in the middle east region is to try to do what we can to promote greater stability and greater democracy. [applause] >> we will take one last question. >> good afternoon. thank you are speaking today. a 2008 department of defense report noted how climate change will impact current and future u.s. national security. the department of defense has been progressive in transitioning bases around the world, solar panels, etc. the weather patterns in somalia

have led to difficulties with shabbab.al- could you talk about climate change and the department of defense and could you get senator mitch mcconnell to stop blocking that legislation? thank you. [applause] >> i learned a long time ago, do not mess around with people. state what you think is right and hope that others will follow and be able to incorporate those thoughts in whatever they do. i have tremendous respect for mitch mcconnell. i have always enjoyed the opportunity to discuss with him not only this issue, but other issues as well. climate change -- what we developed at the cia was an

intelligence branch of the cia that focused on that issue for intelligence purposes because of the implications that these changes might have with regards to national security. our example, when we encourage greater drought, when we incur areas that have less rain and are incurring unusual climate impacts, it creates, obviously, an impact in terms of the population. we have to be aware of it because it could create chaos. we have seen it in africa and other parts of the world. we need that type of intelligence. in addition, because of the ice there are indications of rising oceans. we have seen that take place. our concern is how will that

impact our ports, our facilities, our low lighting levels that could be impacted by that. we continue to try to get intelligence on that as well. in addition, obviously, we do look at the polar ice caps and are able through imagery determine what is happening with polar ice caps and how quickly they are melting and what the impact will be as the polar ice cap melts, national security implications are that countries like russia and others are going to be looking for the opportunity to go into those areas and try to go after the resources. they have already made claims to that effect. as it melts and as those opportunities increase, there are countries that are going to assert themselves, trying to gain access to the resources that are there. that also constitutes an issue

that relates to national security. from an intelligence point of view, it is important to keep track of those trends. this is not about the battle of climate change and the issues related to that. this is about what we are seeing happening and the intelligence that flows from that. that is important for us to consider as we look at issues that could threaten our national security. [applause] >> i want to thank the secretary for a wonderful conversation tonight. we appreciate you being here. thank you. [applause]

in addition to thanking the secretary for being here tonight, i want to thank senator mcconnell for having this committee -- for allowing this community to have such a great conversation. thanks all of you for being here tonight. thank you very much. [applause] [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2012] >> if you had said in 2006 that the world would be begging -- everybody would have said you're crazy. >> robert kagan is not only an adviser to mitt romney, but also served on secretary of state hillary clinton's advisory board. >> there is a lot of continuity

in american foreign policy. more than we expect. there is a lot of broad consensus. what you are seeing here is the consensus. there is a lot of opportunity. >> more with robert kagan sunday night at 8:00 eastern on c- span's "q&a". >> a movie on the 2008 presidential campaign titled "the game change clothes "will premiere on hbo. we spoke with mark halperin and john heilemann, co-authors of the book. the full title is "game change: obama and the clintons, mccain and palin, and the race of a lifetime." the interview is just under an hour. >> it is the right thing to do but the wrong way to whewin. >> to try to vet bloomberg.

who can we win with? >> none of them. obama just change the entire dynamic. >> we desperately need a game changer pick. none of these middle-aged white guys are game changers. >> from the new hbo movie based on the book "game change: obama and the clintons, mccain and palin, and the race of a lifetime." the book written by john heilemann and mark halperin. they say the plan was always our mccain to shock the world with his eyes but the dental picks. john heilemann and mark halperin are joining us from new york. thank you for being with us on c-span. >> if it is great to be with you, steve. >> like four years later our people still talking and writing about the 2008 campaign and now your book turned into an hbo film?

>> i think several reasons, the main one being you had lots of bigger than life candidates and candidates competing for an open race, open seat for the white house with the kind of plot twists and turns that if you got to hollywood as fiction they would throw you out and say it was to impossible. i could list them all. the election of set -- selection of sarah palin. the story of john mccain's collapsed and the comeback. john and elizabeth edwards and their extraordinary role only revealed far after the fact was going on with them. >> john heilemann, your take on this new hbo film that people will again be talking about, the race four years ago. >> we would have been thrilled to work with hbo on this. they have an incredible standard

they bring to the work they do on episodic tv and the movies they make. mark and i were honored and gratified with a bought the options to do the book. we knew there would have to be some choices made. it is a big book. 500 pages. it was a big campaign. if you did not want to do a miniseries, you would have to pick a story line. jay roach and danny strong were very attracted to the palin story. a woman who was a small-town mayor and had only been governor 18 months before she was snatched out of six -- of security and put all the republican ticket. under the brightest spot light you can imagine. what that was like for her on the human level, the decisions for making that choice and the ramifications -- j and danny were attracted to that story.

also, what the mechanics are of how these things go down in back rooms. that is something we were attracted to. when they were seizing on that story as the store to do from the book, which said that sounds great. they have done an incredible job. the performances are spectacular. we could not be happier. >> mark halperin, let me ask you how the idea for the book came about before the 2008 campaign? when the two of you decided to collaborate and some of the lessons of from 2008? >> we were coming back from annapolis where senator mccain was doing an event on his biography corporate this was a pretty good idea about what senator mccain should do with this time after he won the republican nomination in the defacto way.

it was a great idea to visit all the places he had been. the execution was pretty bad for most of it, including the event in annapolis where he spoke at the navy academy -- naval academy at the football stadium. it was not the best executed event you ever seen. driving back -- we actually part. i with doing something with c- span that day, so we parked in front of c-span. your loyal viewers will be delighted to hear the game change was born right there on north capitol street. what we said to ourselves initially was not about a book. it was in fact about a movie. lookit the characters and house cinematic this whole thing has been. this was in the spring will pour

sarah palin, well before the financial crisis. there is so much here, somebody should make a movie about it. we talked about various ways of doing the story. every political reporter who covers of these presidential campaigns said to themselves, maybe i will get a book contract out of that. it is very hard to publish political books. how could we successfully write and publish a political book in a climate where there is so much news? there is so much about the campaign we do not know. we were covering it every day. we did not know the answers to some basic questions. what role did bill clinton played in every clinton's campaign? how the barack obama decided he could run for president and make an incredible effort to be hillary clinton? lots of questions we did not know the answers to. what if we went back and try to figure out what had actually happened? before too long, we had taken the original conversation, shake

it a little bit, but what we wrote was very good to the idea we had originally. we are basically doing the same thing for this cycle. there is no reason to tamper with a formula that readers seem to like. it is a great way to tell the story of a campaign people are focused on. to try to go back and tell the story through the eyes of the people involved in a way that maybe is not possible to do in daily, weekly, at our monthly journalism. >> we have gone back to your book and selected a couple of quotes that may be best reflect what happened during the process of the campaign. let's begin with the announcement that then senator barack obama day. colin powell had questions for senator obama, but the main one was why now?

>> for the past six years, we have been told that the anxiety americans feel about rising health care cost and wages are an illusion. we have been told the climate change is a hoax. we have been called an ill- conceived war can replace the policy and strategy. when all else fails -- we have been told ices are somebody else's fault. we are distracted from our real failure and told to blame the other party, a day people, or immigrants. as people have looked away in disillusionment and frustration, we know what fills the void. cynics, lobbyist, special interests who have turned our government into a game only they can afford to play. they write the checks and you are stuck with the bill.

they get the access while you get to write a letter. they think they own this government, but we are here to take it back. the time for that kind of politics is over. it is time to turn the page right here and right now. >> john heilemann, at it was not a foregone conclusion that despite his success in boston in 2004, that barack obama would run in 2008. >> not at all. he was inclined not to run in 2008. his wife was very much against the idea at first. the thing you read their from this conversation with colin powell, that scene, the notion this could be his time to run and that there is the right time for a candid it was something very influential to barack obama. he was hearing it from a lot of people.

the conventional thinking was look, you have only been in the senate for a couple of years. you need to wait your turn. you've not done enough. what obama kept hearing from senior democrats throughout the senate and others was that that actually might not be true. the old will likely to be thrown away. if you stuck around the senate for a long time, he was weighed down with all the positions he had to take on controversial matters. he was a fresh face that the country was sick of the clintons and the bushes and wanted to see something new. for that reason, coming out of that incredible turn in boston and coming out in the 2006 election, he raised an incredible amount of money. a superstar of the fund-raising circuit. he had the magic thing. he have the lightning in a bottle. it would be foolish not to recognize so much of the success

in presidential politics is timing. in the end, there were a lot of factors that went into his thinking, but that notion that if they did not go in 2008 he would not have a better opportunity, that was more influential than anything else. >> spring, summer, and early fall, barack obama was lagging in many polls. many expected hillary clinton with the clear front runner. then there was this moment, mark halperin, that you outlined in the book. the plan was set. >> we have a chance to bring the country together in a new majority that finally tackles problems that george bush made far worse, but had festered long before george bush ever took

office. problems that we have talked about a year after year after year after year. and that is why the same old washington textbook campaigns just will not do in this election. [applause] that is why -- that is why i am not answering questions. we are afraid our answers will not be proper. they just will not do. that is why -- that is why telling the american people what we think they want to hear instead of telling the american people what they need to hear just will not do. [applause] triangulating and poll-driven positions because we are worried

about what mitt or rudy might say about us just will not do. [applause] if we are really serious about winning this election, democrats, then we cannot live in fear. this party, the party of jefferson and jackson, of roosevelt and kennedy, has always made the biggest difference in the lives of the american people when we led not by polls, but by principle. not by calculation, but by convention. when we summon the entire nation to a common purpose, a higher purpose. i run for the presidency of the united states of america because

that is the party america needs us to be right now. >> from november 2007. this was a turning point for this democratic race, why? >> because up until that point, although barack obama had gotten into the race in february, he had not been that great a candidate. he had not shown he could break away from the pack -- not only hillary clinton, but john edwards as well. that jefferson-jackson dinner sponsored at the party was a showcase and an opportunity for a candidate to shine. hillary clinton's speech that i was pretty good, i thought. barack obama's speech was a lot better. it introduced in the most prominent way to date this theme, mostly implicit, that the

clinton years had flaws that the democrats should not want to go back to. the same old washington operation personified for a lot of democrats by the clinton years was something the country did not want. >> i am not sure you can reveal sources now that the book is out, but how did you go about getting the inside story of that speech? >> by talking to the people involved and familiar with what happened. >> we cannot reveal the sources now, but as we wrote the book, we were very meticulous about talking to people involved in almost every case and wherever possible, and making sure we have documentation -- handwritten notes, etc. -- to paint the picture. how hillary clinton approached her speech is a pretty interesting tale and a good microcosm of how the campaigns

operated, how the candidates operated. >> the new hampshire primary was another port -- turning point in the race in 2008, a race of hillary clinton won nearly. when it was over, hillary marched down a hallway backstage with her husband by her side. >> i, tonight with a very full heart -- i come tonight with a very full heart. i want especially to thank new hampshire. over the last week i listened to you and, in the process, i found my own voice. [applause]

like we all spoke from our hearts. i am gratified you responded. together, let's give america the kind of comeback that new hampshire has just given me. >> john heilemann, at the narrative on that day, that moment with hillary clinton. what you're sensing in new hampshire's leading up to that victory and how that became so important to the obama campaign in 2008. >> after obama won in iowa, everyone in the national press and both campaigns, except for hillary clinton and our husband -- barack obama was going to seal the democratic nomination. he was going to win new hampshire on the basis of his momentum. independent voters could be

there -- could vote there. polling showed going into new hampshire at should have been an easy win for obama. the team decided to campaign in a different way picketed he got kind of -- different way. he got kind of disconnected. she got down closer to the voters. her incredible moment a couple of days later where she broke down slightly and showed a side of herself that a lot of democratic voters had been wanting to see and had not seen for most of the past year -- this a very human, very approachable side. we talk about how the obama campaign thought that was kind of a disaster. she had an ed

they saw it immediately as something that could change the momentum dramatically and that's what happened. even leading up to the very day of the primary vote most reporters still thought that barack obama was going to win that primary. the people around him thought he was going to win the primary. the only exception to that rule really were bill and hillary clinton who as they were campaigning they felt like they could feel something shifting. bill clinton knew the politics of new hampshire better than any place on the planet and he felt the tide was turning. so they were the only ones not completedly surprised when she won that victory and she bounced out of new hampshire with a kind of, one of the most remarkable comebacks and people thought, and it would all change again very shortly but people thought now hillary clinton is on her way to

restoring torks being able to put back together her rightful place as the front runner. and things got a lot more complicated after that. >> with mitt romney's win in michigan there was a paralevel to what john mccain felt. he clinching the republican nomination. why such a lag between clinching the nomination in march and determining the nominee late in the summer? >> well, steve, that's an excellent question. it does go to the heart of the question of sara palin. senator mccain had been around presidential politics and he enjoyed i think kind of the

opportunity as the nominee to go through the rituals. one is hiring someone or retaining someone in this case a respected lawyer to go through and begin the process of vetting the background of potential candidates. given that it was a mccain operation which tended to have relatively loose lips and a fair amount of leaking this process was kept confidential in real time. the day we decided -- came up with the idea for game change initially was the day senator mccain decided, went on i'm muss' program and talked about the vetting process. in a way he wasn't supposed to do. and that was one of the last times there was any public window. they looked in the background in kind of the normal way of a lot of candidates some of whom were mentioned in the clip you showed tat top. senator lieberman, a close friend of senator mccain's was at the top of his wish list. but after they did the kind of

standard week's long background checks on a number of candidates and considered on a more surface way any number of others they let themselves, you know, you could argue inexcuseably they left themselves with no one who would they taught be a good pick and someone they thought would be a net plus for them. and as we write, there was serious conversation about senator lieberman, the politics who had been al gore's running mate eight years before and was a liberal on most social issues was something they really grappled with and they thought was not going to be politically effective and would be a political problem. and they turned with just a week to go, again, having effect squandered many months not vetting someone they wanted to pick, with a week to know they not only reached out to sara palin but they began with the standing start and not the normal due diligence to look at her background and decide to pick her even though there

were, as he knew a lot of risks involved. >> there were insilingts of the coauthors of "game change, the 2008 book looking at the obamas and clintons and mccain and palin. inside the book, you write >> i have will the statements of reverend wright which have caused such controversy and in some cases pain. for some nagging dwes remain. did i know him to be an occasionally fierce critic of american domestic and foreign policy? of course. did i ever hear him make remarks that could be considered controversial while i sat in the church? yes. did i strongly disagree with

many of his political views? absolutely. just as i'm sure many of you have heard remarks from your pastors, priests, or rab bies with which you strongly disagree. but the remarks that have caused the recent firestorm weren't simply controversial, they weren't simply a religious leaders efforts to speak out against perceived injustice. instead, they expressed a profoundly distorted view of this country. a view that sees white racism as indemic, and that elevates what is wrong with america above all that we know is right with america. a view that see it is conflicts in the middle east as rooted primarily in the actions of stallwart allies like israel instead of imnating from the per veers and hateful ideologies of radical islam. as such, reverend wright's comments were not only wrong

but divisive, at a time when we need unity, racially charged at a time we need to come together to solve a set of monumental problems. >> that was another defining moment in the democratic race. and as you indicated in the book, this was a speech that he wanted to give for a very long time. >> it was. he was really, as he got closer and closer to being the party's nominee and felt like he was on track to get that, he knew that the question of his race, being the first african american nominee in the party's history, was something that he would have to deal with. he wanted to give a speech. he is also a high-minded guy and he has been grappling with issues of race for a long time and he thought it was would be a teachable moment. and reverend wright's explosion on to the scene was a peril for him. they felt that because of the delegate mass that he was now destined to be the democratic

nominee, but hillary clinton was staging big comebacks, she was winning the ohio primary and the texas primary. there were a lot of states in the future that hillary clinton was going to be strong in and a lot of super dell gants that hadn't decided what to do. and there was a chance that if there was some controversy that disqualified obama, that was the only thing that could knock him off from getting the big prize. and when he appeared on the scene, saying the incindiary things he said, obama immediately moved and said i wanted to give the speech for a while, this was the time to do it. he went and gave that speech, was roundly applauded for it across the political spectrum. and then rerned wright came back on the scene and said even more disquieting things. and that was obama, in doing something he hadn't done in the initial race speech, which was to really sever ties completely with reverend wright, really throw him under the bus.

he didn't want to do that he finally felt he had to do it. and there was a moment in the book, very powerful where he is standing before the press conference where he cuts reverend wright, where he's standing alone, and obama says, is this really how america sees me? is this what people think i'm like reverend wright, i'm an angry black man? that he understood that was not only the wrong perception but how politically dangerous that could be. and even though it was painfully for him personally he had to sever ties completely so that he could get past this and still be a viable nominee and general election candidate in the fall. >> let me pick up that point. because the personalities differ in what we saw in 2008 to 2012. but one of the similarities, many people refering to the lends of the democratic primary in 2008 and said it didn't really hurt barack obama.

can you touch on that point? >> well, as we write in the book and as the country saw, there is an epic nature in the battle in the big personalities that made it exciting. and i think what is clear is that both candidates handled it really well. particularly barack obama used the individual election nights and the elongated process in a mechanical way to build an organization in individual states and around the country to become better as a candidate and to hone a message for his general election. i think if you look at the reception that hillary clinton got, by the end she was elevated as well and she has gone, still to this day, the most respected woman in the country in part i think because of the toughness she showed and the skill she showed in that campaign. in this presidential election, what is at least potentially an elongated republican contest you don't find all those

dynamics, at least not yet. i don't think you've seen much improvement in the candidates and in some ways they've gotten worse and left a trail of errors. i don't think they've been nearly effective in laying the groundwork for a general election, in terms of message and organization as barack obama and even hillary clinton was four years ago. and the final thing is that these candidates in the race now, they are created kind of factions within the party. you don't find a lot of romney supporters enthusiastic about santorum. in the case of hillary clinton and barack obama although it was very contentious and the passions were high amongst their supporters and the candidates, once it became clear barack obama was going to be the nominee, people on board and the party was united and energized to win the white house. i don't see that dynamic yet in the republican race.

that could change. but for the most part the bitterness that exists between the candidates extends to their supporters and leaves them potentially in a much less strong position than barack obama was when he emerged from that battle. >> let's take you and our viewers back to spring of 2008, may and june. you write in the book that the perception that hillary clinton had behaved badly had taken hold in the media and threatened to eclipse everything she accomplished. she had to get behind barack obama quickly and graciously but to do it in a way that served her interest and image. >> as we gather here today in this historic magnificent building, the 50th woman to leave this earth is orbitting overhead. we will some day launch a woman into the white house.

and although we weren't able to shatter that highest, hardest glass ceiling this time, thanks to you it got about 18 million cracks in it. and the light is shining through like never before, filling us all with the hope and the sure knowledge that the path will be a little easier next time. >> and john, that was a quote that obviously hillary clinton made famous but something that sara palin also used in her 2008 acceptance speech. >> well, it was a very powerful image. and hillary clinton at that moment after she decided to stop after the final primaries, she had to make a decision. there were people around her who really wanted her to fight on all the way to denver and

she had senior advisers who didn't want her to drop out of the race, who felt something would happen to obama over the summer in terms of negative information that might come out, that she show should maintain her viability within the nominee. and there were factions about how to proceed. she ultimately made the decision that she needed for both her sake, for the party's sake, for everybody's sake, she needed to not pursue that path and she needed to give a speech that would be a gracious endorsement but also one that would serve her interest, one that would make clear that she had run a historic campaign, one that would touch on -- she had initially run so much as the strong commander in chief, not as the historic candidate of women. once she found her way to that she became a real hero for a lot of democratic women. so she wanted to hit that theme in a very strong way. the glass ceiling line it lives on. it lived on to the point where

sara palin adopted it later. but it lis on to this day. and she began the process by which when mark talked about how barack obama and hillary clinton were enlarnled by the fight, the fact it was not inevitable that would be the case for hillary clinton. if she had lapsed into bitterness, if she had been stinting of her support, it could have diminished her. she made a wise and gracious choice but wise tactically, strategically, in terms of her own future decision to get behind barack obama and do whatever he asked and be as supportive as possible. and that was the beginning of her seizing the mantle of self-enlargement in some ways. she ended up being a bigger figure at the end and she was a big figure when she started but it was very important, fundamental decisions that she had to make and she made them in retrospect -- you can't look back but do anything but

applaud them in the sense that they served her ultimate interest in the best possible way. >> let's turn back to the republican race and john mccain. the answer might be ost but as john mccain was searching for a running meath my question is how much of that was a political decision and how much of it was a decision that john mccain truly felt that sara palin was qualified to be vice president? >> well, that's a great question and i'm not sure that we were able to get to the bottom of that sufficiently to answer it in the spirit in which you intend it. it's clear that they had a lot of political problems they needed to address. that given that john mccain was being tied to george bush who was not popular, they need add game-changing pick. in the perfect world senator mccain would have found someone who would have been unambiguously qualified. most of the other people he

considered seriously all men would have been seen as instantly qualified to be president, sara palin had a higher bar. she was unknown. she did not have the national experience, she hadn't even been governor of a lively populated state for all that long. so i think it's clear that senator mccain took into account the political conversations. i also think it clear that sara palin been given more time to prepare outside of a handful of staffers, even though in charge of figuring out how to launch his vice presidential pick, had they been given more time and framed sara palin as a maverick, as someone who stood up to special interests, as someone who understood the real lives of individual people, i think she should have potentially been not a strong political pick but a strong pick in terms of projecting the image of the ticket for governance. but she did have, as we show in

the book and as the movie shows on hbo, some real challenges that are exacerbated by the fact that she wasn't afforded sufficient time to prepare. >> on that point, lessons for any nominee selecting a running mate you go back to dan quayle. he had been in the u.s. house and the senate but was not a well-known figure when george hesht walker selected him. >> i think steve that the over arching lesson of all vice presidential selections is something mark alluded to. the best political pick is also the best substantive pick. and i think that for a simple reason. most american voters don't make a decision on who they're going to vote for president on the basis of who is on the ticket. i think that vice presidential nominees move very few votes. i think most voters, the way they look at a vice presidential pick is that the first big decision that a party nominee is making and they

evaluate the decision as a reflection of the decision maker and how serious and scrupeluss that nominee is being. so what they want to know first and foremost is has this nominee chosen someone who is unequivocally qualified to be president? and if you meet that bar, you've basically done everything you can for yourself. you think about someone like joe biden, the choice was, whatever you think about joe biden, there's very few people who look at him and say this man's qualified to be president. the same is true with dick cheney. immediately answered the fundamental question, and it said something important about both of those presidential nominees barack obama and george w. bush that they were taking this seriously, they wanted to have someone who could succeed them if something happened to them in office. i think that's a huge important thing that voters look to.

so that is the lesson going forward. if you satisfy that you do yourself a world of good politically and i think the best way to do that is to have the kind of process that barack obama and george bush and other successful nominees have had, which is a serious long excuted vetting process, not something done on the fly. you conduct this thing like a military operation, you try to answer every question in advance, you get serious people on it, give them enough time to do it properly so that nothing that comes up later turns out to be a jack in the box surprise. those are the two key things. vet these guys and pick someone who is obviously in the minds of everyone qualified for the job from day one. >> let me follow up on two moments from the book and one that we cap turred as sara palin accepted the nomination in st. paul minnesota in 2008. >> i love those they say the

difference between a hockey mom and a pit bull? lip stick. so i find out from the p.t.a. because i wanted to make my kids public education even better and when i ran for city council i didn't need focus groups and voter profiles because i knew those voters and i knew their families, too. before i became governor of the great state of alaska, i was mayor of my hometown. and since our opponents in this presidential election seem to look down on that experience, let me explain to them what the job involved.

[cheers and applause] i guess a smalltown mayor is sort of like a community organizer, except that you have actual responsibilities. >> that moment captured in the book and in the gnaw movie. what was happening -- new movie what was happening behind the scenes? >> a lot. the 60-day period from the time she was chosen was pretty packed and what attracted us to that story and hbo to focus on that is the period in which so much happened. sara palin as her supporters point out and is actually true, she performed extraordinarily well at the three biggest

moments of vice presidential nominee has to perform. the day she was announced, and in a debate where she held her own against one of the most experienced politicians, joe biden. she at that moment she was giving the speech, there was a lot going on. her family was being integrated, sort of getting new clothes and briefings and understanding of dealing with the secret service. she was being briefed on how to get ready to do a round of national media interviews and in some way to start preparing for the debate. and the mccain campaign was starting to realize that while they made some assumptions about what her level of knowledge would be to deal with national-international affairs, there would have to be a lot of work to be done to get her through the initial interviews. >> your thoughts on this process in that two-month

period? >> well, i was thinking more when you asked the first question about this, more about the in a more granular way they put her out there on that speech up in st. paul on the convention stage to give that speech, and though she had done well, as mark said in her introduction speech, this was a much bigger deal. this was a national audience of many, many tens of millions, and the pressure was extraordinary. and john mccain was watching back stage with a fair amount of nervousness, not because he didn't trust her because she had never given a speech in front of that kind of audience. and as you will see in the film, he is watching with mounting excitement as she gives this speech. he can't believe how good she is what a red-light performer she has turned out to be. she finishes the speech and mccain is over the moon and someone informs him, i've got to tell you, the most amazing

thing through that is halfway through the speech her teleprompter was malfunctioning. and mccain looks at her and says, i hope that doesn't happen to me. she not only performed under those circumstances but she had another handicap imposed on her by the technology. so you can't really imagine the degree of pressure she was under or how much the campaign was on as they watched her out there and she hit it out of the park. and their expectation was that she was an unallloyd asset to the campaign. and she was. and on the democratic side there was a lot of concern as the mccain-palin ticket came out of that convention ahead of obama. and people were freaking out about the way she injected so much energy into the campaign.

it wasn't until later and the collapse of the financial crisis kicked in that the game changed again and the pick began to have some problems and complications that were hard for the mccain campaign to deal with and the campaign gave obama the opportunity to rise with the occasion to deal with the financial crisis that made a lot of voters confident about his ability to deal with what was ahead. >> and as you both know, more potential stumbles for sara palin as the mccain campaign trying to prepare her for that debate with joe biden. you write in the book that sara palin continued to stumble over an unavoidable element, her rival's name, over and over she referred to obama's running mate as senator oh boyden.

>> can i call you joe? thank you. thank you. >> so take us back to that moment and your reporting on this book. >> well, it is a charming moment because it's one of the rare moments where sara palin seemed to be a little nervous walking out on that stage. but as i said she did pretty well and found her voice. she did refer to him as obiden and they were worried as that would be branded as an illustration of her ability to think on her feet coming after the interview that she did with katie couric that hadn't gone well and had exposed for some of the viewers and voters weaknesses in her ability to think on her feet and to be knowledgeable about things. so for most it would be seen as

a funny gaff. they were worried it would taken larger meaning so they came up with this ideas, call him joe. so she decided to ask him for permission to do that. then of course the irony is in the debate, she did once her to him as obiden. it really didn't get any attention at the time even though she made the very gaff that they had been so concerned about. >> you're laughing, john. what's so funny? >> well, i just, it's a funny story. you are not really sure whether the reason, they were never sure whether she was conflating barack obama's name and turning him into omp biden, or because he is irish american. i just think that's funny that for all of the concern that she made that mistake and literally nobody noticed. you can go back and watch the

tape and you will hear her do it and i don't think there was any press coverage. so it's funny the way campaigns obsess over things. i understand why, for the reasons mark said. but in the end, because she gave such a strong performance in that debate, and there were flaws for sure and there were ways in which you could poke holes into it. by and large, she kind of fought joe biden, a really solid debater, to a draw. and in that context, some of the difficulties they had with her in debate prep, that was a huge win for her. because it went over so well and because she was broadly seen as having held her own, this small error that they had been so concerned about was completely overlooked. the media dynamics are sometimes unpredictable, as you know. >> let me follow up on something john said earlier. it was a best selling book now turned into a movie. but in terms of writing this book and the style in which you book and the style in which you present to the