THE WHITE HOUSE
Office of the Press Secretary
_______________________________________________________________________________________
FOR IMMEDIATE RELEASE
October 29, 2009
Remarks of President Barack Obama – As Prepared for Delivery
Small Businesses and Health Insurance Reform
Washington, DC
I asked you here today to talk about health insurance reform, and why it is so critical to the success of small businesses across our country. But before I do, let me take a minute to talk about the new economic numbers that were released this morning.
I am gratified that our economy grew in the third quarter of this year. We’ve come a long way since the first three months of 2009, when our economy shrunk by an alarming 6.4 percent. In fact, the 3.5 percent growth in the third quarter is the largest three-month gain we have seen in two years. This is obviously welcome news and an affirmation that this recession is abating and the steps we’ve taken have made a difference.
But I also know that we have a long way to go to fully restore our economy, and recover from what has been the longest and deepest downturn since the Great Depression. And while this report today represents real progress, the benchmark I use to measure the strength of our economy is not just whether our GDP is growing, but whether we are creating jobs, whether families are having an easier time paying their bills, whether our businesses are hiring and doing well. And that’s what I’m here to talk with you about today.
I know many of you have come from different corners of our country to be here and looking out at all of you, I’m reminded of the extraordinary diversity of America’s small businesses. You’re owners of coffee shops, diners, and hotels. You’re florists, exterminators, and builders. Each of your shops and firms reflects different passions, different ideas, and different skills.
But what you share is a willingness to pursue those passions, take a chance on those ideas, and make the most of those skills. What you share is an entrepreneurial spirit, a tireless work ethic, and a simple hope for something better that lies at the heart of the American ideal. Businesses like yours are the engine of job-growth in America. Over the past decade and a half, America’s small businesses have created 65 percent of all new jobs in this country. And more than half of all Americans working in the private sector are either employed by a small business or own one.
Now, even in good economic times, starting a business isn’t easy. It takes moxie, gumption, and ingenuity, and failure is often more likely than success. But I don’t have to tell all of you that it’s been particularly difficult over the past few years. From the middle of 2007 through the end of 2008, small businesses lost 2.4 million jobs. Thousands have shut their doors altogether. And because of the credit crunch, banks have shrunk back from lending, making it harder to get loans to branch out, finance your inventories, or even make payroll. Maybe you’ve had to forego raises. Maybe you’ve had to do the unthinkable and lay off friends or family.
So, I know how tough these times have been for small businesses. That’s why we made sure the Recovery Act included a number of measures to help small businesses weather this economic storm. We’ve put a tax cut into the pockets of the vast majority of small businesses owners and employees. We’ve supported nearly 35,000 loans to small businesses – more than $13 billion in new lending. More than 1,200 banks and credit unions that had stopped issuing SBA loans when the financial crisis hit are lending again today. And just last week, we proposed increasing the cap on what are called 7(a) and 504 loans – some of the loans most frequently handed out by the SBA.
But given the enormous problems small businesses and all Americans are facing today, these steps are by no means enough. If we’re serious about strengthening small businesses; if we’re serious about creating a climate where our entrepreneurs can succeed; if we’re serious about giving you the chance to prosper and grow, then we need to pass health insurance reform in the United States of America.
Few have a bigger stake in what happens than all of you. Few have a bigger stake than the men and women who own a small business, work at a small business, or rely on someone who does. Few have a bigger stake in what happens because few are struggling more under the status quo.
We all know that family premiums have skyrocketed more than 130 percent over the past decade. But small businesses have been hit harder than most. A story in the paper just the other day said that many small businesses may see their premiums rise about 15 percent over the coming year – twice the rate they rose last year. And in part because small businesses pay higher administrative costs than large ones, your employees pay up to 18 percent more in premiums for the very same health insurance policies.
In one national survey, nearly three quarters of small business that don’t offer benefits cited high premiums as the reason. Is anyone surprised by that?
The bottom line is that too many Americans like you can’t afford to build the kinds of businesses you’d been hoping to build. And too many budding entrepreneurs can’t afford to take a gamble on a smart idea because they can’t give up the health insurance they get in their current job. That’s bad for our economy, it’s bad for our country, and it’s what we’ll change when health insurance reform becomes law.
Just this morning, the House of Representatives released its version of health reform legislation, and I want to commend Speaker Nancy Pelosi and the Democratic Caucus for their leadership in achieving this critical milestone. There is no doubt that this legislation – and the legislation that’s now being drafted in the Senate – would benefit millions of small businesses. It is being written with the interests of Americans like you and your employees in mind.
And yet, there are those with a vested interest in the status quo who are claiming otherwise, using misleading figures and disingenuous arguments. So, let me try and explain as clearly as I can exactly what health insurance reform would mean for small business owners like you and the workers you employ.
The first thing I want to make clear is that if you’re happy with the insurance plan you have right now; if the costs you’re paying and the benefits you’re getting are what you want them to be – then you can keep offering that same plan. Nobody will make you change it.
What we will do is make your coverage more affordable by offering a tax credit to small businesses that are trying to do the right thing and provide coverage for their employees. And we will also make your coverage more stable and more secure. Right now, if just one of your workers falls seriously ill, it could spell disaster for your entire business. You could see your premiums shoot up and you could be faced with a painful choice: Do you eat the costs and ask your workers to contribute more? Do you seek another insurance plan, without any guarantee that you’ll be able to find one that’s affordable? Or do you scale back benefits or drop coverage altogether?
Well, I don’t think you should have to make a choice like that in the United States of America. Under health insurance reform, we will put an end to the days when an insurance company could use a worker’s illness to justify jacking up premiums. We’ll crack down on excessive overhead charges by setting strong standards on how much of your premiums can go toward administrative costs and requiring insurers to give you a refund if they violate those standards. It will be against the law for insurance companies to deny you coverage because of a pre-existing condition. And it will be against the law for insurance companies to drop your coverage when you get sick or water it down when you need it most.
They will no longer be able to place some arbitrary cap on the amount of coverage you can receive in a given year or a lifetime. If you get your insurance through your employer, we’ll change the cutoff on how old your kids can be to remain on your plan – we’ll raise it to 26 years old. We’ll place a limit on how much you can be charged for out-of-pocket expenses. And insurance companies will be required to cover, with no extra charge, routine checkups and preventive care, like mammograms and colonoscopies – because there’s no reason we shouldn’t be catching diseases like breast cancer and colon cancer before they get worse. That makes sense, it saves money, and it saves lives.
That’s what we’ll do for all the small businesses that have insurance. And for all the small businesses that don’t, we’ll finally make quality coverage affordable. Here’s how we’ll do it. One of the biggest problems in our health care system right now is that if you’re a small business owner or if you’re self-employed, you often have such a small number of workers that insurance companies aren’t all that interested in your business. As a result, you end up paying higher costs than big businesses that can get better deals because they have more workers.
So, what we’ll do is set up what we’re calling an exchange that will pool small businesses together. That will mean it’s not just you bargaining with insurance companies, it’s you and many others. With all that additional leverage, you’ll be able to get better deals than you ever could have received on your own. In fact, small businesses that choose one of the plans in this exchange could save 25 percent on their premiums by 2016. And we’ll also offer tax credits to make insurance even more affordable for millions of small businesses. Meanwhile, by expanding coverage for more Americans, we’ll help eliminate the “hidden tax” of more than $1,000 that workers pay to cover the medical expenses of the uninsured.
Now, it is true that when reform becomes law, businesses of a certain size who do not offer their workers health coverage may be required to contribute to the costs. Opponents of reform have tried to use this to mislead small business owners by claiming that you would be subject to this penalty. But the fact is, about 90 percent of all small businesses would be exempt from this requirement – about 90 percent. So, if your business is anything like the vast majority of small businesses out there, this requirement simply won’t apply to you – because I don’t think it’s fair to impose a penalty on small businesses.
That’s what health insurance reform would mean for you and for all our small businesses. It will reduce your costs. It will prevent small business owners from facing exorbitant rates. And it will make coverage affordable for all the small businesses that can’t afford it right now.
But it will also do something more. It will help remove the worry that if you have the courage to strike out on your own and open a business, you’ll be doomed from the start. It will help give entrepreneurs and all Americans the assurance of knowing they won’t go broke when they get sick. It will help ensure that no small business owner in America has to choose between being a successful employer or a decent one. It will help us be the kind of country we know ourselves to be.
What’s at stake, then, isn’t just the success of our businesses or the strength of our economy or even the health of our people. What’s at stake is that most American of ideas – that this is a place where you can make it if you try; where you can be your own boss; where the only limits to what you can achieve are your smarts, your savvy, and your dreams; where you can pass on to your children a better life than you inherited.
That’s what’s at stake. That’s what we are fighting for. And I am absolutely confident that if we do what must be done; if we can build an economy that works for all Americans; if we can promote innovation, foster growth, and build a better health care system – then not only will we ease the burdens on entrepreneurs, not only will we give our small businesses a big boost, and not only will we produce the kind of growth we so desperately need in this country, but we will secure the blessings of America for our children and grandchildren. Thank you, God bless you, and may God bless the United States of America.
WASHINGTON, DC -- In a video announcement sent to supporters today, President-elect Obama announced the formation of Organizing for America. This is the next phase for the organization that was built during the campaign, offering volunteers the continued opportunity to work for change in their communities by organizing in support of reform in Washington.
This announcement follows a dialogue with Obama for America supporters across the country. More than 500,000 completed surveys following the election making clear their vision for the organization, and more than 4,200 hosted house parties in their communities. A clear majority believe that organizing in support of President-elect Obama’s agenda should be the most important goal for the organization.
Organizing for America will partner with Governor Kaine and the DNC.
“Change doesn’t come easy -- our work has just begun,” said Governor Kaine. “President-elect Obama has laid the foundation to meet the great challenges facing our nation, but we can succeed only if we build grassroots support for the administration’s agenda. As the DNC works to elect candidates who will support the change agenda, we will also invest in bottom-up efforts that ensure that the priorities of everyday Americans are heard in Washington.”
Further details about Organizing for America will be announced in the coming days. A link to the President-elect’s announcement, and a transcript, are below.
January 8, 2009
Obama and Biden will cut income taxes by $1,000 for working families to offset the payroll tax they pay.
Obama and Biden believe that trade with foreign nations should strengthen the American economy and create more American jobs. He will stand firm against agreements that undermine our economic security.
Barack Obama and Joe Biden believe that it is critically important for the United States to rebuild its national transportation infrastructure – its highways, bridges, roads, ports, air, and train systems – to strengthen user safety, bolster our long-term competitiveness and ensure our economy continues to grow.
Barack Obama and Joe Biden will increase federal support for research, technology and innovation for companies and universities so that American families can lead the world in creating new advanced jobs and products.
Obama and Biden will strengthen the ability of workers to organize unions. He will fight for passage of the Employee Free Choice Act. Obama and Biden will ensure that his labor appointees support workers' rights and will work to ban the permanent replacement of striking workers. Obama and Biden will also increase the minimum wage and index it to inflation to ensure it rises every year.
Obama and Biden will crack down on fraudulent brokers and lenders. They will also make sure homebuyers have honest and complete information about their mortgage options, and they will give a tax credit to all middle-class homeowners.
Obama and Biden will establish a five-star rating system so that every consumer knows the risk involved in every credit card. They also will establish a Credit Card Bill of Rights to stop credit card companies from exploiting consumers with unfair practices.
Obama and Biden will reform our bankruptcy laws to protect working people, ban executive bonuses for bankrupt companies, and require disclosure of all pension investments.
Obama and Biden will double funding for after-school programs, expand the Family Medical Leave Act, provide low-income families with a refundable tax credit to help with their child-care expenses, and encourage flexible work schedules.
David Crawrford - ManagerOn January 20th, our journey to bring change will officially begin.David...We're organizing the most open and accessible inauguration in our nation's history. And we're doing it without contributions from Washington lobbyists or big corporations. Just like we did on the campaign, we're relying entirely on supporters like you -- ordinary people giving whatever they can afford to make this an event for all Americans. I know we've asked a lot of you. But changing the way business is done in Washington will take a commitment from all of us. Right now, you can help give this administration a strong start. as you know your have been selected to come to Washington, D.C., and be part of the welcome ceremony, the swearing in, the Inaugural Parade, and the Inaugural Community Ball. We have a long road ahead of us, and we're going to face some major challenges as soon as we start. But I know I can count on you every step of the way.Thank you for everything you've done and happy New Year,Barack
STATEMENT OF PRESIDENT ELECT BARACK OBAMAIt is with deep regret that I accept Governor Bill Richardson's decision to withdraw his name for nomination as the next Secretary of Commerce.Governor Richardson is an outstanding public servant and would have brought to the job of Commerce Secretary and our economic team great insights accumulated through an extraordinary career in federal and state office. It is a measure of his willingness to put the nation first that he has removed himself as a candidate for the Cabinet in order to avoid any delay in filling this important economic post at this critical time. Although we must move quickly to fill the void left by Governor Richardson's decision, I look forward to his future service to our country and in my administration.
STATEMENT OF GOVERNOR BILL RICHARDSON
For nearly three decades, I have been honored to serve my state and our nation in Congress, at the U.N., as Secretary of Energy and as governor. So when the President-elect asked me to serve as Secretary of Commerce, I felt a duty to answer the call.I felt that duty particularly because America is facing such extraordinary economic challenges. The Department of Commerce must play an important role in solving them by helping to grow the new jobs and businesses America so badly needs.It is also because of that sense of urgency about the work of the Commerce Department that I have asked the President-elect not to move forward with my nomination at this time.I do so with great sorrow. But a pending investigation of a company that has done business with New Mexico state government promises to extend for several weeks or, perhaps, even months.Let me say unequivocally that I and my Administration have acted properly in all matters and that this investigation will bear out that fact. But I have concluded that the ongoing investigation also would have forced an untenable delay in the confirmation process.Given the gravity of the economic situation the nation is facing, I could not in good conscience ask the President-elect and his Administration to delay for one day the important work that needs to be done.So, for now, I will remain in the job I love, Governor of New Mexico, and will continue to work every day, with Lieutenant Governor Diane Denish, to make a positive difference in the lives of New Mexicans. I believe she will be a terrific governor in the future.I appreciate the confidence President-elect Obama has shown in me, and value our friendship and working partnership. I told him that I am eager to serve in the future in any way he deems useful. And like all Americans, I pray for his success and the success of our beloved country.
Below is a statement from President-elect Obama:
"Roland Burris is a good man and a fine public servant, but the Senate Democrats made it clear weeks ago that they cannot accept an appointment made by a governor who is accused of selling this very Senate seat. I agree with their decision, and it is extremely disappointing that Governor Blagojevich has chosen to ignore it. I believe the best resolution would be for the Governor to resign his office and allow a lawful and appropriate process of succession to take place. While Governor Blagojevich is entitled to his day in court, the people of Illinois are entitled to a functioning government and major decisions free of taint and controversy,"
CNN LARRY KING LIVE
Interview with Vice-President Elect Joe Biden
Remarks of President-Elect Barack Obama - As prepared for delivery
Good afternoon.
Today, I’m announcing several other appointees who will play an integral role in our efforts to turn our economy around: Congresswoman Hilda Solis as Secretary of Labor; former Congressman Ray LaHood as Secretary of Transportation; Karen Mills as Administrator of the Small Business Administration; and Mayor Ron Kirk as United States Trade Representative. Together with the appointees I’ve already announced, these leaders will help craft a 21st Century Economic Recovery Plan, with the goal of creating two and a half million new jobs and strengthening our economy for the future.
If jobs and incomes are our yardsticks, then the success of the American worker is key to the success of the American economy. For the past eight years, the Department of Labor has not lived up to its role either as an advocate for hardworking families or as an arbiter of fairness in relations between labor and management. That will change when Hilda Solis is Secretary of Labor. Under her leadership, I am confident that the Department of Labor will once again stand up for working families.
President-Elect Barack Obama Holiday Radio Address.
Good morning. This week, Americans are gathering with family and friends across the country to celebrate the blessings of Christmas and the holiday season. As we celebrate this joyous time of year, our thoughts turn to the brave men and women who serve our country far from home. Their extraordinary and selfless sacrifice is an inspiration to us all, and part of the unbroken line of heroism that has made our freedom and prosperity possible for over two centuries. Many troops are serving their second, third, or even fourth tour of duty. And we are reminded that they are more than dedicated Soldiers, Sailors, Airmen, Marines and Coast Guard – they are devoted fathers and mothers; husbands and wives; sons and daughters; sisters and brothers. This holiday season, their families celebrate with a joy that is muted knowing that a loved one is absent, and sometimes in danger. In towns and cities across America, there is an empty seat at the dinner table; in distant bases and on ships at sea, our servicemen and women can only wonder at the look on their child’s face as they open a gift back home. Our troops and military families have won the respect and gratitude of their broader American family. Michelle and I have them in our prayers this Christmas, and we must all continue to offer them our full support in the weeks and months to come. . These are also tough times for many Americans struggling in our sluggish economy. As we count the higher blessings of faith and family, we know that millions of Americans don’t have a job. Many more are struggling to pay the bills or stay in their homes. From students to seniors, the future seems uncertain. That is why this season of giving should also be a time to renew a sense of common purpose and shared citizenship. Now, more than ever, we must rededicate ourselves to the notion that we share a common destiny as Americans – that I am my brother’s keeper, I am my sister’s keeper. Now, we must all do our part to serve one another; to seek new ideas and new innovation; and to start a new chapter for our great country. That is the spirit that will guide my Administration in the New Year. If the American people come together and put their shoulder to the wheel of history, then I know that we can put our people back to work and point our country in a new direction. That is how we will see ourselves through this time of crisis, and reach the promise of a brighter day. After all, that’s what Americans have always done. 232 years ago, when America was newly born as a nation, George Washington and his Army faced impossible odds as they struggled to free themselves from the grip of an empire. It was Christmas Day – December 25th, 1776 – that they fought through ice and cold to make an improbable crossing of the Delaware River. They caught the enemy off guard, won victories in Trenton and Princeton, and gave new momentum to the beleaguered Army and new hope to the cause of Independence. Many ages have passed since that first American Christmas. We have crossed many rivers as a people. But the lessons that have carried us through are the same lessons that we celebrate every Christmas season – the same lessons that guide us to this very day: that hope endures, and that a new birth of peace is always possible. Thank you, and have a wonderful New Year. Obama,.,.
