June 7, 2009
Posted: June 7th, 2009 10:35 AM ET
Obama senior adviser David Axelrod discussed the economy and health care reform in an interview that aired Sunday on CNN's State of the Union.
Obama senior adviser David Axelrod discussed the economy and health care reform in an interview that aired Sunday on CNN's State of the Union.

WASHINGTON (CNN) - President Barack Obama's $787 billion stimulus package is beginning to work, his senior adviser told CNN's "State of the Union" on Sunday.

David Axelrod cited the latest unemployment figures that showed the rate of new job losses slowing.

Although those figures showed the overall unemployment rate at a 26-year high, Axelrod said the stimulus money takes time to infiltrate the economy.

"Hopefully that is a sign that this is turning," Axelrod said. "It feels as if we're moving, and the stimulus package now is not nearly done, it's just really at its beginnings."

In a wide-ranging interview with CNN's John King, Axelrod also said Obama believes that capping tax deductions for high-income Americans is the best way to help offset the cost of expanding national health care.

An estimated 45 million Americans lack health insurance, and Congress is drafting plans for health care reform. Democrats and Republicans are sharply divided on both how to pay for it and how large a role the government should play.

Obama campaigned on the concept of high-income Americans paying more taxes to address needed spending. Axelrod said the president is pushing that idea with congressional leaders for health care reform.

Obama is "not foreclosing on anything," but told the legislators "'I really think my idea is best,'" Axelrod said.

Sen. Edward Kennedy, D-Massachusetts, who heads the Health, Education, Labor and Pensions committee, is circulating a proposed bill that includes a government-run insurance option to give all American access to health care benefits.

Republicans have developed their own proposals that emphasize choice. GOP leaders oppose any bill that offers a government-run option.

Axelrod said the bottom line is bringing down the cost of health care.

"If we do that and make it affordable, people are going to buy it, mandate or no mandate," he said. "People want health care."

Speaking from Paris after accompanying Obama on his trip to Saudi Arabia, Egypt, Germany and France, Axelrod also said the president's Cairo speech candidly stated the truth about the U.S. reaction to the Sept. 11 terror attacks in order to "clear away the debris" in international relations - not to criticize his predecessor.

In the June 4 speech, Obama called the Iraq conflict a war of choice, and said the response to the Sept. 11 attacks caused the United States to act contrary to its traditions and ideals – a reference to controversial interrogation techniques such as waterboarding. Both comments referred to policies of former President George W. Bush.

Obama also used the speech to call on Israel and the Palestinians to fulfill their negotiated obligations in seeking peace, and for the Muslim world to reject extremists who sow terror.

"You can't be candid about other people's actions and responsibilities and not your own," Axelrod said. "It wasn't meant to criticize any one person. It was meant to … discuss in an open and honest way where we've been in order to, as I've said, clear away the debris so we can move forward."

Filed under: David Axelrod • Economy • Health care • State of the Union


jpam   June 7th, 2009 1:08 pm ET

if the govt had just let GM fail and file bankruptcy the out cry from the rebubs would be heard in anartica, not to mention the american people. the repubs would have cried that P-obama let capitalism fail.
he let the auto industry down.
now they cry that govt shouldn't have intervened. pretty soon they will be saying the sun should set in the east.

Donna from Colorado Springs   June 7th, 2009 1:02 pm ET

The economy is starting to show small signs of progress and that terrifies Republicans. They want nothing more than to have the economy tanking for many years so they can say that Limbaugh was right! They are pathetic! They are so afraid that the president did the right thing with the stimulus money, and that they will be proven wrong with all their insane attacks and predictions of doom. I just love it!!!!!!!!!!!

Ed   June 7th, 2009 12:52 pm ET

I see no indication anywhere that the "stimulus" is working in any other way than to line the pockets of political contributors.

Claudia in Houson   June 7th, 2009 12:45 pm ET

Never thought it wouldn't work but what would not have worked was to do nothing as the Republicans suggested. Thank you Mr. President.

German,Irish American   June 7th, 2009 12:44 pm ET

Remember when Obama said that if the unread "stimulus" bill wasn't passed, unemployment would reach 8.5%? That number would look pretty good now, compared to the Obama caused current rate of 9.4%. Can you imagine what the media and liberals would say if job losses were"ONLY" 350,000 during the peak summer months if Bush were President? How about the rising gas prices? Obama also said during the campaign that he didn't think $4 gas was out of line. Is he now letting oil prices rise so Bush/Cheny and their big oil buddies can get richer?

Steve in Las Vegas,NV   June 7th, 2009 12:43 pm ET

What jobs created by the package pay more than $10.00/hour? Few!

When Obama told businesses not to travel to Las Vegas "on the taxpayers dime", lost jobs galore, lost business and revenue to the city, MILLION$!!! This is not stimulating anything, and yet...NO apology for that either. When he came here to stump for Sen Reid...Didn't mention it. We're still waiting.

And in Detroit....Well, we all know about that.

Just listen to the song "Shutting Detroit down" by John Rich..It's TRUE!!! And it's an American anthem. He really knows what a disaster is going on there!

larry   June 7th, 2009 12:38 pm ET

It took us decades to get in this mess, it will certainly take some time to get us out. And of course, all the members of the "party of NO" will fabricate their lame criticism like the armchair quarterbacks that they are. They had 8 years of destruction that they reaped on this country and now they think anyone with a brain will listen to them? Face it, the GOP is a sad sad group of has beens.
I have confidence in the Obama administration. They got my vote and they have my support. America is moving forward again, what a good feeling to see it start to repair itself.

Dawn in Pa   June 7th, 2009 12:32 pm ET

Bunch of haters here... They said the unemployment is at the same level as it was 26 years ago, and that was under the late President Reagan, it took him a long time until the people were getting employment.

Another thing, does anyone know when our businesses started to go overseas, this is not a trick question, it is for my information

Joe Student   June 7th, 2009 12:27 pm ET

The stimulus was all about timing. The recession is bottoming out, and will probably start to upswing by the end of the year. All this would have happened without the stimulus. All the stimulus did was give America an excuse to put money toward the Department of Transportation (which they should be doing anyway) so they could do what they needed to do years ago: rebuild bridges, roads, and rail lines. All the other pork that was in the bill was just a way for the progressive democrats, like Speaker Pelosi, to get their agenda across. The unfortunate part is all this pork will always overshadow the few billion dollars America needed in infrastructure.

As for all this talk about government socialism, maybe it is warranted. But, I have to think about countries like Switzerland, Luxomberg, and the Netherlands where they have close to 45% percent of private entities controlled, owned, or directly influenced by the government. Granted, smaller countries, but are they ever in the news?

For the GM issue, just ask yourself this:
"If the government let GM declare bankruptcy on their own and perhaps go out of business, wouldn't there be more outrage from the public for the government letting an "American" icon fail?"

Leslie   June 7th, 2009 12:22 pm ET

"JOB LOSSES SLOWING DOWN" – plain common sense. It is slowing down due to the FACT, majority of Americans are already out of work, those who are still working are worried they would be the next to go. Businesses are closing their doors. Over 12 million Americans now are OUT OF WORK, they were laid off. Check the long lines at the welfare office, people applying for help for the first time, check long lines at Food Bank, what used to be single line now is up to three lines. It is heartbreaking to see hardworking Americans OUT OF WORK.

Leslie   June 7th, 2009 12:19 pm ET

Axelrod and the rest of Hussein administration are mentally deranged. Unemployment is now 9.4%. The Porkulus bill is only working for Hussein and his people, they're using the money for campaign trips. Summer job is TEMPORARY,

My neighbors are being laid off from their job left and right, some are now going on welfare so they can get food stamps, some are thrown out of their apartment, they can't afford to pay the rent anymore. Two of my friends lose their house, foreclosed by the bank, they can't afford to pay their mortgage anymore. Yesterday, my neighbor's car was towed (repo man) she can't afford the monthly payment.

How's that hope and change workin' fer ya?

Bob   June 7th, 2009 12:15 pm ET

Some of you apparently don't know much about economics. It is WAY to soon to tell if the package is going to work or not, regardless of early indications. There are many other factors that could be leading to these indicators, but of COURSE the President's advisor will not say that. :)

Give it a year, THEN we'll talk. We'll either know that it's working, or we'll know that we've made a pretty significant mistake and it's going to be a hell of a thing to turn back. I give it a 50/50 chance, but I'm hoping for a recovery.

Again, it's a long journey, folks, and we simply do NOT have the information we need to determine if this is working or not. What IS amusing is that so many Dems that would NEVER believe information from Bush's advisors NOW of course accept Obama's advisor's word as gospel from on high. That's pretty funny. Sad, but funny. TRY LEARNING SOMETHING ABOUT ECONOMICS AND THE WAY THINGS WORK RATHER THAN JUST BEING A GROUPIE!!!!

Mike   June 7th, 2009 12:14 pm ET

The Republicans want all jobs to go out the country and want all car to be imported, I have yet to hear one Republican mention all the jobs going to China or some other low wage country.

Kevin B   June 7th, 2009 12:14 pm ET

Mr Axelrod is correct The GOP did its best to destroy the armerican dream with tax cuts for the wealthy while conducting two wars. (which is unprecedented.)

Because of the stimulus the stock market is posting gains, job losses are slowing and many jobs are being preserved in spite of the horrible set of circumstances inherited by the Obama adminstration.

Only the GOP and Al Queda will see some thing negative in america's economic revival

Joanna   June 7th, 2009 12:11 pm ET

Yes it is work! How do you like the dems now GOP. In your face. Just think if a Republican were in the white house. We would all be standing in line for soup right now!

Have no fear Rev. Wright is here   June 7th, 2009 12:11 pm ET

Post always rejected by cnn, it was only 350 billion given away by bush and 350 billion given away by obama.

Lori   June 7th, 2009 12:10 pm ET

Job losses from last month are down and the Republicans are running scared. They were praying for more job losses and more American suffering so that they could TRY to get reelected in 2010 and 2012. Americans are not that stupid, GOP. Your leadership caused the crisis, you have NO policies that would suggest that we would be at a surplus if your political party was in power in fact your budget still had us at a deficit in the trillions as well (except many Americans would not have benefited from what was in your budget). With our President's policies, he is trying to invest in rebuilding America (not Iraq). GOP politicans-stop complaining and come up with viable solutions or at least propose some that would actually work. Do what we're paying you to do. WORK!!!

Hey Axel head.....   June 7th, 2009 12:05 pm ET

what planet are you on?

Unemployment just rose to 9.4% and people are losing their jobs and houses on a daily basis.

Take a walk outside the White House someday and see what's going on.

All you and Obama do is spend our money....you've fixed nothing.

Mich   June 7th, 2009 12:02 pm ET

ACCORN : Hiding federal money from stimulus
JOBS : Created 150,000 with stimulus package.
JOBS : Lost this month over twice as many that was created.
DOLLOR : Value going down over the whole world.
GAS : Price of gas heading to 4.00 dollors a gallon.
JOBS : Still being outsorced to other countries.
Housing : Homes still being lost to banks.
BONDS : Still on the way down to new lows.
TAXS : Federal goverment gave tax break. Over 12 states trying to raise taxs on it's people. Their goes that tax break.

WHAT IS WORKING ABOUT IT MY FRIEND JUST LOST HIS JOB.

Obama and his people still talking to the dum down american people.

buckwheat   June 7th, 2009 11:56 am ET

You would not have had to send the 75000 to but half the people because tha tis alll that have ever worked.

buckwheat   June 7th, 2009 11:54 am ET

GM is history as much as I hate to see this company go if there is not some kind of miracle. Blame Obama. Take the ACORN money and give it to now what is Government Motors.

buckwheat   June 7th, 2009 11:50 am ET

Must be on another planet. It would have gotten better if this bunch had not chosen to break the treasury. They should be investigating ACORN and all the money taxpayers have paid these secret society members. 'Even the ones who have jumped ship say they need an audit. The mob usually do not have audits.

Post always rejected by CNN   June 7th, 2009 11:48 am ET

I have a big question that none of the republicans have the guts to answer, could anybody else.

Before the democrats started handling the distribution of THEIR stimulus to bring the country back from the mess Obama and they found it, "WHAT HAPPENED TO THE 700 BILLION DOLLARS THAT BUSH AND HIS REPUBLICAN CONGRESS DOLED OUT TO GOODNESS KNOWS WHO".

The republicans would not tell us who or for what they gave this 700Billion dollars. I am still waiting for an explanation. Because YOU KNOW LIKE. YOU KNOW all the republicans are whinning and moaning and messing their shorts about the stimulus package that is being distributed and ACCOUNTED for.

StudentinTexas   June 7th, 2009 11:40 am ET

I for one have benefitted...I do not have to work two jobs because I got Pell Grant for a year. This has allowed me to leave one of two jobs. Now someone else can get that job and provide for their family. I can go to school, concentrate on getting good grades and work one job. I now have a small garden at the back of my home and this has allow me to save more money so I can purchase the stuff my family needs. More money spending now. Soon I can complete my college education and contribute to society. Thank you.

Ted Tartaglia   June 7th, 2009 11:38 am ET

The party of No started the stimulus program and now they are begrudging its success. What is it about the Republican thinking process that turns success into failure and failure into success? Obama's policies are driving the country to ruin and Bush's policies were successful and did not shift debt to future generations, in a pig's eye. It is no wonder nobody wants to admit to being a Republican. Total idiots are not needed in today's world. Isn't it fun watching the Republicans self-destruct?

Dan, TX   June 7th, 2009 11:34 am ET

I believe this guy is in a fantasy-land. So is Barack Obama. One in six Americans are working for Government now. We are a socialist country. Thanks to radical Barack and his administration.

Have no fear Rev. Wright is here   June 7th, 2009 11:34 am ET

What 150,002 jobs now, great now i feel more confident..

DaBird   June 7th, 2009 11:23 am ET

Why has so little of the money been spent David? I'll tell you why. Obama is waiting to spend it so the economy turns around during voting for the next election or in 2012. Attn sheep: Obama doesn't care if you have a job. Where are ALL those infrastructure jobs???

TCM   June 7th, 2009 11:20 am ET

What a liar! April's numbers are showing that people are reducing their personal debt, and stashing away cash instead of spending. Now, little if any, of the stimulus money has been doled out, and since OBama's been in office the long term interest rates on that money has doubled! AXLEROD's LYING! Americans are personally paying down their debt and saving out of concern that the government is full of incompetents and don't know what they're doing. Despite their love for waffle, the liberals are following suite..they aren't buying, they're paying their debt and saving....it shows a turn against OBama...say what you want libs, the tide will turn and you'll help when obama starts reaching in your wallet!

alvino   June 7th, 2009 11:17 am ET

High gas prices? Been there last summer.

That is why it is important to have a stimulus that can help with energy alternatives to mid east oil.

alvino   June 7th, 2009 11:13 am ET

Proud DHS radical-

If it had been done your way, GM would have been destroyed by bankruptcy in December, and no jobs would have been saved. Isn't that what you right wing nuts wanted way back then?

At least some jobs have been saved, thanks to the Democrats.

ib   June 7th, 2009 11:11 am ET

It is working; just watch how the dollar is dropping like a rock and high inflation is taking over. By the way; who are the liberals going to blame the soaring gas prices on now?? Oh I know it's still Bush's fault.

alvino   June 7th, 2009 11:09 am ET

It has to be hard for the party of "NO!" to accept the recent upturn in the market and the recent positive economic indicators. Evidently, Fox news is not fair and balanced after all.

Proud DHS radical   June 7th, 2009 11:07 am ET

I wonder how that stimulus money is working out for all the soon to be unemployed GM dealership employees? Maybe they can find jobs with ACORN?

alvino   June 7th, 2009 11:01 am ET

Me, me, me. 'It's all about me,' is the rallying cry of the paty of "NO!"

It will take several months for the unemployment numbers to catch up with the other positive economic indicators, and until then, "Long form . . ." will be able to draw unemployment.

alvino   June 7th, 2009 10:59 am ET

The "Swift Boaters against reasonable priced health care" are out in full force again today.

B   June 7th, 2009 10:57 am ET

With all due respect, if you were just laid off, then why am I seeing your flames on every story? Shouldn't you be spending your efforts on the job hunt?

I would think if you spent more time listening and absorbing the context versus spinning these stories to fit your political ideals, you could have an honest political discussion.

makesUwonder   June 7th, 2009 10:53 am ET

Of course the stimulus money is starting to work Mr. Axelrod. Just keep telling yourself that and you might just begin to believe it.

Steve Lyone   June 7th, 2009 10:49 am ET

The stimulus money could have been better spent by sending every taxPAYing family a check for $75,000.00 dollars and let us spend it, or save it to pay our taxes with.........

Long form birth certificate   June 7th, 2009 10:39 am ET

Yup, it's starting to work. I just got laid off. I guess Obama and his wife could skip a night out on the town and that would cover my wages for a year.

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