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Vice President Biden, President Obama Hold Town Hall in Tampa Covering SOTU Ideas

Aired January 28, 2010 - 13:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

ALI VELSHI, CNN ANCHOR: I'm Ali Velshi, and I'll be with you for the next two hours, today and every weekday. And what I'm going to do, is I'm going to try and break down every important we cover -- break down every topic that we cover that's important to you, and give you a level of detail that will help you make important decisions about your voting, your spending, your safety, and your security.

Now, we're going to start with the president's State of the Union speech and a trip that he's made to Tampa this morning for a town-hall meeting.

But before we go to the president's announcement and town hall in Tampa, let's break down some other news of the day for you. The Toyota recall goes global. Gas pedal issues now affect more than 5 million Toyotas in the U.S., Europe, and China. The pedal's manufacturer said it's already shipping a new design to Toyota factories, and it's scrambling to come up with a fix for cars already on the road.

The World Food Program is expected to add more food distribution points in Port-au-Prince, but more than two weeks after the quake, getting food and clean water to everybody who needs it continues to be a challenge. The U.S. military says that's partly because new tremors have re-damaged the newly-reopened seaport.

And we're watching Capitol Hill, where senators are tasked to make -- poised to cast a make-or-break vote for a second term for Ben Bernanke. It could be close, but the Senate's never rejected a nominee for chairman of the Federal Reserve, probably won't today either, but it could be close. The Senate has just voted to raise the country's debt ceiling to more than $14 trillion.

We'll talk about that, but we also want to talk about last night's State of the Union address and why the president is in Tampa this morning for a major announcement and a town-hall meeting.

Let's go to Mark Preston. He's in D.C. White House correspondent Suzanne Malveaux is in Tampa, and she's covering the president's announcement.

Good morning to both of you.

Mark, let's start with you. The town-hall meeting -- the State of the Union address last night, you've digested everything. You've watched it in great detail. You were analyzing it. How's it playing out this morning?

MARK PRESTON, CNN POLITICAL EDITOR: You know, by and large, I think congressional Democrats, Ali, just focusing on Congress right now, are pretty happy with what they heard President Obama talk about last night.

He talked about the economy. He talked about jobs. He talked about lifting up small businesses. He talked about trying to keep the economy moving forward, and the economy would be number one. So congressional Democrats, by and large, very happy.

There is some anger about health care. Senator Mary Landrieu had some sharp comments for the president. Our own Ted Barrett has a story up on CNN.com right now, Ali, talking about some frustration that there wasn't a map put forward on health care.

Republicans on the other side, Ali, they're taking a step back. They're being very cautious. There is some criticism about the speech, and we'll see how it plays out in the next few days.

VELSHI: Here's something interesting. Our the polling that was conducted during and after the speech, right after.

Before the speech we asked people, "Will Obama's policies move the country in the right direction?" Fifty-three percent said yes before the speech; 71 percent of respondents said yes after the speech.

The number of people who said no, that they would not move the country in the right direction, was 43 percent before the speech, 27 percent after the speech.

How do you explain that shift in sentiment?

PRESTON: You know, basically, I think President Obama can deliver a speech. You know, whether you're a Republican or a Democrat, a supporter, an opponent, President Obama knows how to deliver a speech.

Seventy-one minutes last night, Ali. I mean, it seemed like the speech would never end. And I think that everybody would agree with that. Yet he was able to keep people's attention. President Obama knows how to deliver, and we saw him do that last night, by and large.

VELSHI: Knows how to work a crowd. In the bottom right of your corner, you can see we've got our cameras on a town hall in Tampa. Suzanne Malveaux is there.

Suzanne, what are we expecting? What is the president doing in Tampa, aside from the town hall?

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Ali, at least for the folks that I spoke with here, more important than listening to the State of the Union address last night is really, what is he going to do moving forward, and what is he going to do for the state of Florida? He's addressing what he calls this deficit of trust with the federal government. He's trying to show, "OK, I'm going to create jobs, help create jobs. It's my number one priority. I'm in tune with the American people."

That's why he's gathering here with the town hall. This is the kind of venue that he generally performs well. He connects with people very well.

But the other thing that he's going to do, he's using this opportunity to announce that he's giving Florida federal dollars, federal funds to create a high-speed rail. This is something -- a project that would lay about 85 miles of track between here, where we are, Tampa, and Orlando, with some stops in between. It would allow a train to travel more than 160 miles per hour.

Florida officials have asked for $2.6 billion for the project. They don't expect they're going to get that much, perhaps half of it, but they say, Ali, it's going to create up to 23,000 construction jobs here in the state. So, it's a very big deal. You talk to the folks here, it's a big deal for this state to get those federal dollars.

It is a part of a larger initiative and a larger program that the president is going to talk about, some $8 billion to create 15 of these high-speed rails across the country, involving 31 different states.

And Ali, what's important to note is that this is a long-term project. In Florida they don't expect that this will get done, say, any earlier than 2014 or so. These are looking at projects that, yes, will offer construction jobs, development, these type of things, but you're not going to see the real results until years later.

So, people, once again, are going to have to be patient. That is one of those messages that we're going to hear from the president, as well.

VELSHI: Mark, over the last couple of weeks, we've been talking about the turn that the president needs to make, whether it's a public relations turn or whether it's a policy turn. Do you think that -- that the White House feels, at least, do you think that there's been some shift as a result of everything leading up to last night's State of the Union? Do you think the president is back on message about addressing the middle class's needs, dealing with taxes and dealing with being responsible about spending?

PRESTON: You know, Ali, I was talking to strategists all this morning, up until airtime, just asking them, "How is this going to play out politically? How is this going to play out in 2010?" Because this is what this is all about. This is about the midterm elections. Yes, it's about jobs. Yes, it's about policies. But it's very much about politics.

The word they kept on saying to me over and over again, Ali, was a pivot. They -- President Obama last night used that speech to pivot. He didn't give up on any of his goals, necessarily; he just kind of reordered them. Health care wasn't thrown out the door. He just didn't spend as much time on it.

So I think congressional Democrats, by and large, again, are pretty happy. They think that he has pivoted forward and he is focusing on issues that are very important to parts of the country, such as the industrial Midwest, where Suzanne is down in Florida right now, where you're talking about taking a shovel, putting it into the dirt and putting someone to work.

VELSHI: Suzanne, your sense of the same -- I'm going to ask you the same question. Do you think the president, successfully, at least, got that pivot off to a start last night?

MALVEAUX: Well, to a start. We'll see how it goes. I thought those numbers were very impressive, the poll numbers you showed afterwards. But clearly, there are more Democrats who are tuning in to the president's State of the Union address.

But I want to add to what Mark said, as well, is that there's no mistake here why we're in Florida, Tampa, Florida, today. This is very strategic on the part of the White House, a swing state. Independent voters, that is what the president is trying to do. He's trying to reach those voters, essentially, that he's lost.

And if you look at some of the local polls here in Florida, the independent voters have really abandoned this president. And this was a state where we spent so much time during the campaign.

VELSHI: Right.

MALVEAUX: Where the president was able to win them over. He's starting to lose them, and that is because there's a lack of jobs, that 10 percent unemployment number that you keep hearing about. Folks are very frustrated. So he is here specifically to reach out to those groups of voters, those people. And those are the voters that are going to help the Democrats in those really tough re-election races.

VELSHI: Suzanne, thanks so much for joining us. Our White House correspondent, Suzanne Malveaux, and our political editor, Mark Preston. We'll check in with you as the afternoon proceeds.

We, of course, will be taking that town hall live with the president and the announcement on the rail. Stay with us. We're going to continue this coverage of this trip of the president's to Tampa and of his discussion after the State of the Union address last night. Stay with us.

(COMMERCIAL BREAK)

VELSHI: We're learning from the Associated Press that they are reporting that "Catcher in the Rye" author J.D. Salinger has died at the age of 91 in New Hampshire. The author's son has said in a statement through the author's literary representative that Salinger died of natural causes at his home. He's lived for decades in a small, remote house in Cornish, New Hampshire. This is according to the Associated Press. Author J.D. Salinger, author of "Catcher in the Rye" has died at his New Hampshire home at the age of 91.

We are on the story of the president, who has taken no break from the State of the Union last night. He's off to Tampa. That's a live shot of the room in which he is holding a town-hall meeting. He hasn't started yet. We have Suzanne Malveaux there. She's covering it.

And, of course, we will cover the town-hall meeting where he's certain to get questions about his State of the Union speech and the priorities that he laid out there, including creating jobs, dealing with health care, and dealing with -- with the banks and financial institutions.

The president will be in Tampa, where he has announced a major spending project for high-speed rail corridors across the country, including one between Tampa and Orlando. This is something that is estimated to create over 20,000 jobs over the course of the next year.

As you know, all week here on CNN, we have been following the stimulus money and the jobs created by it. We'll be continuing to do that. Stay with us. As soon as the president gets in, we'll be covering that live.

(COMMERCIAL BREAK)

VELSHI: All right. As we told you, we're covering the president's town-hall meeting in Tampa. That's the vice president, Joe Biden. He is with the president. He's setting up for the president to walk in. Let's listen in for a second.

JOE BIDEN, VICE PRESIDENT OF THE UNITED STATES: ... today and I really hope you all got to hear the president's speech last night. Wasn't it good?

I think the president laid out, with clarity and power, what we've done, what we're going to do, and how we're committed to getting it done. He laid out a clear and ambitious plan, a plan that flows from our core principles, the principles we ran on, our core mission, that we said we were going to do when we took office a year ago. And that was very simple: to restore the middle-class in America.

Look, because of the president's bold leadership, we weathered the most ferocious economic storm this nation has seen since the Great Depression, keeping us from sliding into a depression, as some leading economists suggested.

The president, from the outset, has understood that it's all about jobs. But there's a lot of business to attend to, just to keep us from sliding off the edge. Well, ladies and gentlemen, the president knows one other thing: in a sense, it's more than about jobs. A job is more than a paycheck. It's about dignity, and it's about respect, and too many people have lost it.

Ladies and gentlemen, President Obama understands that the longest walk a mother or father can make is the trip up a short flight of stairs to their child's bedroom to say, "Honey, I'm sorry, you're not going to be able to stay at Stewart Middle School next year," or "You can't play on west Tampa's Little League next year, honey. We're going to have to move," because Mommy or Daddy lost their job, or because the bank said we can't keep our house.

My dad made that walk, when I was a kid, at our home in Scranton, Pennsylvania. I remember vividly my father walking up the stairs and I sitting in the bed with my sister, Valerie, the only one old enough to understand what he was talking about.

He said, "I'm sorry, honey, but I'm going to have to move."

First thought I had was, "God, they're getting divorced," literally. That's what worried me.

He said, "I've got to move, honey. You and Val are going to stay here with Mom and Jimmy, and you're going to stay here with Grandpa, because dad has to move to Delaware. I'll be back. It will take about a year, but I'll come back and forth. But we're going to be OK."

Once I got older, I realized how hard that must have been for my father to make that walk. How hard it must have been for him to go into the kitchen before that walk and say to his father-in-law, "Ambrose, can you do me a favor? Can you keep my family? Can Jean and the kids stay here with you? I'll try to do it as quick as I can, but there's no jobs."

Ladies and gentlemen, too many Floridians have had to make that walk over the last few years. And the president and I understand. We understand. And we're determined to make sure that every hardworking Floridian, every hardworking American, is able to walk into his child's room and say, "Honey, it's going to be OK."

That's what this is all about. That's what this is all about.

As you heard last night, that's why we're putting in place the policies that will enable us to reduce the debt we inherited and deal with the spending required to keep us from falling off the cliff this year.

And during that process, you heard him say how we are reordering our country's priorities. We're investing in health care, education, energy information, technology, health technology, electric vehicles and batteries, investments that will help us build a new economy for the 21st century. Investments that will allow to us lead in the 21st century, as we did in the 20th.

Ladies and gentlemen, we're determined to restore America to its rightful place at the leading edge of innovation, with bold ideas that will create jobs immediately and serve as the foundation, a new platform. A new platform to build this economy on that will serve not just our immediate needs, but future generations. Ideas like wind power, solar energy, a smart grid, broadband. And high-speed rail.

And that's why we're here today. Having made over 7,900 roundtrips, literally, on Amtrak, 250 miles a day, I am very familiar with rail. And today you have no idea how pleased I am to talk about the announcement that we made yesterday, awarding in total, nationwide, nearly $8 billion from the recovery act, funding to move us in the direction of developing a high-speed rail service and 13 travel corridors covering 31 states all across this country.

Ladies and gentlemen, these investments -- these investments have several goals. First, to improve existing rail lines to make train service faster and more reliable. Two, to pull cars -- cars off the road, reducing congestion, cutting pollution, and increasing productivity. And, three, to begin to develop new corridors for high- speed trains that will go from 169 to 230 miles an hour.

Ladies and gentlemen, like the corridor, right here, from Tampa to Orlando. So you'll be able to get on a train here in Orlando in less than an hour, without battling traffic or congestion, arrive at your destination.

Ladies and gentlemen, this single investment is not going to solve all our transportation issues overnight. Instead, with more than $55 billion of proposals from 50 states all across the country, we're providing $8 billion in seed money. And today's awards provide only initial funding for the rail system, like Tampa to Orlando route. More funding is going to come in the future, as progress is made.

We have committed to another $5 billion in funding over the next five years. It's a down-payment on a truly national program that's going to reshape the way we travel. It will change the way in which we go from place to place, change the ways we work and live, and it will connect communities with each other in a way that in the past was impossible. Just like the interstate highway structure did back in the mid-'50s, it will have far-reaching consequences.

Let me ask you a question. How can we, the leading nation in the world, be in a position where China, Spain, France, and name all the other countries, who have rail systems that are far superior to yours? Ladies and gentlemen, it's about time we moved.

But this time -- but this time -- we're not only going to be providing a better way to transport. We're going to take cars off of congested highways, reducing carbon emissions, and saving billions of dollars in human productivity loss just sitting in traffic jams, as studies point out.

Most important, we're creating jobs, good jobs, construction jobs, manufacturing jobs, and we're going to be creating them right now! We're going to spur economic development in the future, and we're making our communities more livable, all in the process.

And, ladies and gentlemen, it's now my pleasure to introduce the man who's leading us into this new era of innovation, the president of the United States of America!

President Barack Obama!

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Thank you, everybody. Hello, Tampa! Thank you so much. Thank you, everybody. It's great to see you.

All right, everybody in this room just, you know, make yourselves comfortable. We're going to be here for a little bit. Thank you! Thank you.

We've got -- we've got some special guests that I want to make sure we acknowledge. Florida CFO Alex Sink is in the house. Representative Kathy Castor, your representative. Representative Alan Grayson. Representative Kendrick Meek. Representative Debbie Wasserman Schultz. Your own mayor, Pam Iorio. The mayor of Orlando, Buddy Dyer. The president of University of Tampa, Ronald Vaughn.

And two very special -- two very special guests, Brian C. Smithee (ph) and Roger J. Picard (ph). I want you guys to know who these folks are. They are the members of the FEMA Florida Task Force Team Two canine search specialists. They went down to Haiti and worked 26- hour-long shifts, staying with victims until they were rescued. The Florida task force team saved -- saved seven lives. Brian worked at a school where his dog, Powder, found a young adult female buried in the rubble three to four days. So, these are the kind of heroes that make America proud, and I want everybody to give them a big round of applause.

Stand up. Stand up. Right there. Great job. I'm proud of you. Thank you. Thank you.

And I haven't spotted him in the crowd yet, but I've got to do this. Even though I know you all are upset that he took all that success to the Colts, he made his name here in Tampa, and he's -- he's not just a great coach, but he's just a model individual and leader. We're very proud to have him in the house. Coach Tony Dungy!

Any of you want some analysis about the upcoming Super Bowl, Coach is free to give -- no.

It's good to see you, Coach.

All right. Now, first of all, let me say, it's good to be back in the Sunshine State. It is especially good to be back in January. And it's always nice to get out of Washington. It is. And spend a little time with the people who sent me to Washington.

(APPLAUSE)

OBAMA: Now, last night I spoke with you about where we've been over the past year and where I believe we need to go. And I said what all of you know from your own lives. These are difficult times. These are challenging times for our country.

In the last two years, we've gone through the deepest recession since the Great Depression. Think about that. A big chunk of the people here, certainly the younger people here, have never even seen a recession. They don't even -- it doesn't register on their minds. This is by the far the toughest thing that the country's gone through economically since the 1930s. In Tampa, like so many communities across our country, has felt the lash of shuttered businesses and lost jobs and home foreclosures and vanished or dwindling savings. And this storm came at the end of what some call "a lost decade," because what happened between 2000 and now, it was a decade in which paychecks shrank and jobs barely grew. And the costs to everything from health care to college education went up. Irresponsibility from Wall Street to Washington left good, responsible Americans who did everything right still struggling in ways they never imagined.

Joe and I took office in the middle of this raging storm. We ran for office, the highest office, because we have been hearing stories like this day in, day out, for years, even before the financial crisis hit. So, we're not going to rest until we've rebuilt an economy in which hard work and responsibility are rewarded and businesses are hiring again and wages are growing again, and the middle-class can get its legs underneath it again.

(APPLAUSE)

OBAMA: We will not rest until we build an economy that's ready for America's future. Now, to do that, the first thing we had to do was break the back of this recession. And that required some tough -- in some cases, unpopular, but unnecessary -- all which were necessary steps.

I mean, I mentioned this last night. None of us wanted to have to stabilize the banking sector. Particularly since they helped create this mess. But, as I explained last night, if we hadn't, the financial system literally could have melted down. And that would have taken our economy -- entire economy, and millions more families and businesses, with it.

But because of the steps we've taken, now the markets have stabilized. The economy is growing again. The worst of the storm has passed.

But I think all of you understand the devastation remains. One in 10 Americans still can't find work. That's why creating jobs has to be our number one priority in 2010.

(APPLAUSE)

OBAMA: The true engines of job creation here in America are America's businesses. There's several steps we can take to help them expand and hire new workers. Last night, I proposed taking $30 billion of the money that went to Wall Street banks but have now been repaid and use it to help community banks give small businesses the credit they need to stay afloat.

(APPLAUSE)

That will help.

(APPLAUSE) I also proposed a new tax credit for more than 1 million small businesses that hire new workers or raise wages. And while we're at it, I believe that we should eliminate all capital gains taxes on small business investments and provide a tax incentive for all businesses to invest in new plants and equipment.

As Joe mentioned, we're going to put more Americans to work rebuilding our infrastructure. And we -- and building our infrastructure of the future. I mean, it's important to repave our roads. It's important to repair our bridges so that they're safe.

But we want to start looking deep into the 21st century. And we want to say to ourselves, there is no reason why other countries can build high-speed rail lines and we can't. And that's what's about to happen right here in Tampa. We are going to start building a new high-speed rail line.

(APPLAUSE)

Right here in Tampa, building for the future. Putting people to work.

(APPLAUSE)

OBAMA: I'm excited. I'm going to come back down here and ride it.

(LAUGHTER)

OBAMA: Joe and I -- you all have a date. When that thing is all set up, we'll come down here and check it out. And, by the way, this high-speed rail line is being funded by the Recovery Act.

(APPLAUSE)

OBAMA: And one other thing we can start doing for jobs here in America that I mentioned last night. I talked about this all through the campaign. We put this proposal in our budget. We keep on getting resistance, but we are going to keep on pushing to end tax breaks for companies that ship our jobs overseas and give those tax breaks to companies that create jobs right here in the United States of America.

(APPLAUSE)

OBAMA: It's the right thing to do. It's the right thing to do. It's the right thing to do.

Now, I have to say this. The steps that I just mentioned will help accelerate job growth in an economy that is already beginning to grow. But the steps we take alone won't make up for the 7 million jobs we lost over the last two years. I mean, keep in mind, when we were sworn into office -- that December, we had lost 650,000 jobs. January, as we were being sworn in, we lost 700,000 jobs. February, 650,000 jobs.

So, before we could even put in place the Recovery Act, you had already seen millions of jobs lost. That's a deep hole that we're going to have to fill, and the only way to do that is to lay a new foundation for long-term economic growth and finally address the struggles that middle-class families have been grappling with for years.

Now, Florida, that's why Joe and I asked for the chance to serve as your president and vice president. Because what -- look, no. Look, we didn't seek this office to push our problems off or take the easy road through the next election. We ran to solve problems, problems that have been nagging at America for decades. We want to solve them for the next generation. We ran to get the tough stuff done.

So -- so, as I mentioned last night, I make no apologies for trying to fix stuff that's hard.

(APPLAUSE)

OBAMA: Because -- I'll be honest with you, I'll be honest with you. Joe and I are both pretty smart politicians. We've been at this for a while.

(LAUGHTER)

OBAMA: The easiest way to keep your poll numbers high is to say nothing and to do nothing that offends anybody.

(LAUGHTER)

OBAMA: That's true. No, no, no. You know, you just wave and smile and -- no, that's how you do it. The minute you actually start doing something, somebody's going to disagree with you.

But -- but that's what I promised. Remember, I -- some of you remember the campaign. I said I wasn't just going to tell you what you want to hear. I was going to tell you what you need to hear.

So, none of this is new. There's nothing that we have talked about since we entered the White House that we didn't talk about during the campaign. And so long as we have the privilege of serving you, we will not stop fighting for your future. No matter how many lumps we've got to take to get it done.

(APPLAUSE)

OBAMA: I do also just have to mention, I'm going to mention -- you know, I love you in the media, but I will mention this little aspect of our media. Our friends with the pads and the pencils -- last week I went to Ohio. And I started saying what I'm saying now, had is which is I'm going to fight for your future. And they got all worked up. They got worked up last week. They said, is he trying to change his message? Is he trying to get more populist? Is this a strategy that he's pursuing to boost his -- this, that, the other. Is this something new?

(LAUGHTER) OBAMA: I just have to do a little rewind here of how we ran our grassroots campaign. Because I've got some news. I've got some news of my own here. I've been fighting for working folks my entire adult life. That's why I entered public service, to fight for folks in Chicago. That's why I ran for the state Senate. That's why I ran for the U.S. Senate. That's why I ran for president. To fight for people here in Tampa and people here in Florida and to fight for people all across the United States of America.

(APPLAUSE)

OBAMA: I seem to remember coming to Tampa two weeks before the election.

And do you know what I said -- this is a quote. People can check. I'm sure -- I'm sure it was reported in the newspapers. I said, "Change never comes without a fight." That was true then. It's true now. Change never comes without a fight, Florida. So, I won't stop fighting. I know you won't either. We're not going to stop fighting to give our kids a world-class education, to make college more affordable, to make sure that by 2020, we have the highest rate of college attendance of any country in the world.

So, we've proposed that graduates should only pay 10 percent of their income to pay back their student loans and ...

(APPLAUSE)

OBAMA: ... students like that.

And what I've said is we'll forgive student loan debt after 20 years, but after 10, if you choose a career in public service -- because if you decide you want to be a teacher, if you decide you want to be a cop, if you're not -- if you're not making huge amounts of money, we don't want to discourage you from that, because -- because of the cost of college.

And, by the way, I've been there and Michelle's been there. It took us 10 full years to pay off Michelle's student loans, 15 to pay mine off. So, I've been there. And our belief, and I think your belief is, in the United States of America nobody should go broke because they chose to go to college. We want everybody to go to college. And we don't want them going broke doing it.

(APPLAUSE)

OBAMA: We -- we won't -- we won't stop fighting to spark innovation and ignite a clean-energy economy where America's workers are building solar panels and wind towers and cutting-edge batteries for automobiles. Because the nation that leads the clean-energy revolution will be the nation that leads the global economy.

And, as I said last night, other countries aren't waiting. They want those jobs. China wants those jobs. Germany wants those jobs. They are going after them hard, making the investments required. We're not going to stop fighting to give every American a fair shake. The first bill I signed into law was making sure that there was equal pay for equal work for women. The Lilly Ledbetter Act because...

(APPLAUSE)

OBAMA: ... because I think you should be paid the same for doing the same work. That's just fair.

(APPLAUSE)

OBAMA: And, by the way, men, you should have been standing up clapping for that, because -- because most families today are depending on two paychecks, not one, to get by.

We're not going to stop fighting to protect the American consumer. That's why I signed a credit card bill of rights into law to protect you from surprise charges and retroactive rate hikes and other unfair rules. That's why I'm fighting for a tough consumer financial protection agency, to protect you against things like hidden fees that can make an ATM withdrawal cost 30 bucks.

(APPLAUSE)

OBAMA: I just -- you know, I just want to be clear here. For the benefit of my friends in the back.

(LAUGHTER)

OBAMA: We need a strong financial sector. Without it, businesses can't get capital to grow and create jobs, families can't finance a home loan or education. So, we want a healthy financial sector, and there are folks all across the country working in banks who are doing great service to their community.

But we also need some rules of the road for Wall Street, so that reckless decisions made by a few don't take our economy over the side. That's common sense. There's nothing radical about that. In fact, the banks should want it. Because it would create greater stability in the system.

And, yes, we will not stop fighting for a health care system that works for the American people, not just for the insurance industry.

(APPLAUSE)

OBAMA: We won't stop. We want a -- we want a system where you can't be denied care if you have a pre-existing condition. You can't get thrown off your insurance right at the time when you get seriously ill. We want a system where small businesses can get insurance at a price they can afford.

Nobody pays more than small businesses and individuals who are self-employed in the insurance market, because they've got no leverage. We want to change that by allowing them to be able to set up a pool. We want to make sure that people who don't have coverage can find an affordable choice in a competitive marketplace.

We want a system in which seniors don't have these huge gaps in their Medicare prescription drug coverage. And where Medicare itself is on a sounder financial footing. Those are the things that we're fighting for. And I'm not going to stop on this, because it's the right thing to do.

And, by the way, if you are serious about reducing our deficit and debt, you cannot accomplish it without reforming our health care system, because that's what's gobbling up more federal dollars than anything else. I don't understand folks who say they don't want to see government spending out of control, and then are fighting reforms that the Congressional Budget Office says would cut $1 trillion off our deficits over the next two decades. Those aren't my numbers.

We're never going to stop fighting to cut waste and abuse in Washington. We do have to rein in deficits that have been accumulating for too long. Families across the country are tightening their belts and making tough decisions. It's time for the federal government to do the same, and that's why I proposed specific steps last night to bring the deficit down. I am grateful that the Senate just passed as we were flying down here to Florida a rule called pay- as-you-go or pay-go, which is a big reason we had the record surpluses in the 1990s instead of the record deficits that were handed to me when I walked into office.

Look, it is a simple concept this pay-go. It basically just says you have to pay as you go.

(LAUGHTER)

OBAMA: It is sort of how you live. At least after you cut up those credit cards.

Basically, you want to start a new program, start a new program, but you need to end an old one that pays for it. If you want to cut taxes, great. Cut taxes, but you have to figure out how to fill the revenue that results when you lose that tax revenue, so the idea is just honest accounting. That is what is needed.

Let me say one more word about health care, because I have to -- because I am gnawing on this bone a little bit. I know that the longer the process works through on a complicated issue like this, the uglier it looked. You know, there is -- and it doesn't help when you have insurance industry spending several hundred million dollars advertising against it, but -- so, but after a while people didn't know what to think. And they started to ask yourselves, what is in it for me?

And as I said last night, I will take my share of the blame for not explaining our approach more clearly, but this problem is not going to g away. The tough stories I read in letters at night, they are not stopping. I am not walking away from these efforts. I won't walk away from you. I don't think that Congress should walk away, either. We are going to keep working to get this done, and I hope we can get some Republicans to join Democrats in understanding the urgency of the problem.

(APPLAUSE)

OBAMA: On every one of these issues, my door remains open to good ideas from both parties. I want the Republicans off of the sidelines. I want them working with us. To solve problems facing working families. Not to score points. I want a partnership. What we can't do, though -- here is what I am not open to. I don't want gridlock on issue after issue after issue when there are so many urgent problems to solve.

And I don't want an attitude if Obama loses, then we win. I mean, that can't be a platform. You know, even...

(APPLAUSE)

OBAMA: ... even if you, even if you disagree with me on some specific issues, all of us should be rooting for each other. All of us should be rooting for America moving forward and solving problems.

So that, you know, "you lose, I win" mentality may be good for short-term politics, but it is not a mindset equal to these times. It is not worthy of you, what you deserve is for all of us, Democrats and Republicans, to work through our differences, overcome to politics and do what is hard, do what is necessary to advance the American dream and keep it alive for our time and for all time.

We have come through a tough year and a tough decade, but a new year is here and a new decade is stretching before us. Opportunities are there for the taking. Every business owner working on the innovation of tomorrow. Every student reaching for a better future, everyone ready to roll up their sleeves and play their part in rebuilding America.

AUDIENCE MEMBER: Yes, we can.

OBAMA: Yes, we can. We don't back down. We don't quit. We are Americans and here today with you today, I have never been more hopeful for our future than I am right now. I am confident that we can move forward and make this happen. Thank you very much, Tampa. I love you guys.

Thank you. Thank you.

(APPLAUSE)

OBAMA; All right. I have got -- everybody relax again. Everybody relax. I have got time for a few questions. I will take off my jacket here, just because -- Joe, you want to hold my coat?

JOE BIDEN, VICE PRESIDENT OF THE UNITED STATES: You answer all of the tough questions, and I will hold the coat.

OBAMA: Yes, I know there may be some tough questions here. All right. Here are the only rules to this. You know, I am going the try to get in about five or six questions, and so I won't get to everybody. I apologize in advance. To make sure that it is fair, we are going the go girl-boy-girl-boy.

(LAUGHTER)

OBAMA: All right. So I am going to call on a young lady first, and then I will call on a gentleman, and we will keep on going down the line, and we will get through as many as we can. Everybody is pointing in this young woman in the red here. So, we will start with you. And if you don't mind, introduce yourself, and wait for the microphone, because my microphone will be coming up. All right.

LAYLA DULESEZ (ph), STUDENT, UNIVERSITY OF SOUTH FLORIDA: Hello, Mr. President. My name is Layla Dulesez (ph) and I'm a student at the University of South Florida.

OBAMA: Hey, Layla. Uh-huh, uh-oh, we can all get along here. Tampa, behave yourselves. All right.

DULESEZ: First of all, I would like to say I worked on your campaign and it is great what you did with the community, because you involved us as the youth to understand the grassroots movement and what impact it can make.

OBAMA: Thank you.

DULESEZ: My question is, last night in your State of the Union address, you spoke of America's support of human rights. Then why have we not condemned Israel and Egypt's human rights violations against the occupied Palestinian people, and yet we continue to support financially with billions of dollars coming from our taxes...

OBAMA: Well, everybody has to be courteous. Everybody is answering the question. Let's -- let me just talk about the Middle East generally.

Look -- all right. Everybody, come on. Hold on, hold on. I have to answer my question first, sir. What have you got beads on? Are those New Orleans beads? OK.

(LAUGHTER)

OBAMA: Look, look, look. The Middle East is obviously an issue that has plagued the region for centuries. And it is an issue that elicits a lot of passions, as you heard.

Here's my view. Israel is one of our strongest allies. It has...

(APPLAUSE)

OBAMA: Hold on. Let me just play this out. It is a vibrant democracy. It shares links with us in all sorts of ways. It -- it is critical for us, and I will never waver from insuring Israel's security and helping them to secure themselves in what is a very hostile region. So, I make no apologies for that.

What is also true is that the plight of the Palestinians is something that we have to pay attention to. Because it is not good for our security and it is not good for Israel's security if you have millions of individuals who feel hopeless, who don't have an opportunity to get an education or get a job or what have you.

Now, the history there is long, and I don't have time to go through the grievances of both sides in the issue. What I have said and what we the beginning and when I came into office is that we are seeking a two-state solution in which Israel and the Palestinians can live side-by-side in peace and security.

In order to do that, both sides are going to have to make compromises. As a first step, the Palestinians have to unequivocally renounce violence and recognize Israel, and Israel has to acknowledge legitimate grievances and interest to Palestinians.

We know what a solution could like in the region, but here's the problem that we're confronting right now -- is that both in Israel and within the Palestinian territories, the politics are difficult, they are divided. The Israeli government came in based on the support of a lot of folks who don't want to make a lot of concessions.