Private Residence Los Angeles, California

5:13 P.M. PDT

THE PRESIDENT: Hello, everybody. (Applause.) Hello, Los Angeles. Oh, this is a nice looking crowd. You all got dressed up. (Laughter.) Dont you look cute? Everybody, have a seat. Have a seat. Relax.

It is good to be in Los Angeles. Let me first of all say thank you to Shonda for opening up this unbelievable space and arranging for perfect weather. Give Shonda a big round of applause. (Applause.) Ive gotten to know Shonda over the last couple years, and for somebody who is just so successful and is doing so much, you cant ask for somebody who is more humble and more thoughtful and has shown incredible kindness to me and my family. And I am very, very proud to know her and to call her a friend. So I just want to say thank you so much for everything you do, not just for me, but for a lot of people who shes given unbelievable opportunities to. So give Shonda a big round of applause. (Applause.) We love Shonda.

Kerry Washington I want to thank. Kerry -- there are few people who worked harder on my campaign, even back when people didnt pronounce my name right -- (laughter) -- than Kerry Washington. And she has been -- shes not a latecomer. She didnt jump on the bandwagon. She pushed when the wagon was stuck in the mud -- she was out there. (Laughter.) And shes just been a great friend. Plus she showed me her baby pictures, and that is one cute baby. And I want to thank her and the entire host committee for helping to set this up.

My girl, Janelle Monae. (Applause.) Janelle has performed at the White House, like, 15 times. And we -- theres going to be an official Janelle Monae room in the White House. (Laughter.) We love her. Michelle and I love Janelle. We love her energy. We love her talent. But we most of all love her character. And anybody who gets a chance to talk to her, this is just a remarkable, strong, smart young lady.

And I have to say nice things about her because she may be the only person in possession of a video in which I try to keep up with her and Usher on the dance floor. (Laughter.) Now, this is top secret. She has promised that this will never be released. But she can blackmail me at any time. (Laughter.)

MS. MONAE: I love you!

THE PRESIDENT: I love you back. You do have that video, though, dont you?

MR. MONAE: I do. (Laughter.)

THE PRESIDENT: Now, tell the truth, though, Janelle -- I wasnt bad, though, was I? (Laughter.) Im just saying. Go ahead, testify just a little bit.

MS. MONAE: (Off mic.)

THE PRESIDENT: Let me say I did not drop in splits. (Laughter.) But I did bust a move. That I did do. (Laughter.)

Finally, let me say thank you to somebody whos been tireless on behalf of the Democratic Party. She is a great congresswoman, but she is also an outstanding chair of the DNC -- Debbie Wasserman Schultz, all the way from Florida. (Applause.) Wheres Debbie? Shes around here somewhere.

So a little over five years ago, I took office at one of the most difficult times in our history. And when I reflect back on those five years, and every gray hair that I have to prove that five years have passed, I dont think its an exaggeration to say that by almost every economic measure were better off now than we were then. (Applause.) Ronald Reagan used to ask when he was campaigning, Are you better off than you were four years ago? Well, you know what, I dont mind answering that question, mostly because of the skill and resilience and strength of the American people, but also because we put in place some wise policies.

Weve seen the unemployment rate drop faster this past year than any time in the last 30, and we now have an unemployment rate thats lower than it was before the financial crisis. We have seen the deficits drop by more than half. Weve seen millions of people get health care that didnt have it before. Weve seen health care inflation at the slowest rate in 50 years. (Applause.) High school dropouts are down. College graduations are up. An auto industry that was on the brink of bankruptcy is now thriving. Manufacturing, the strongest that its been since the 1990s.

When I came into office, you asked investors around the world whats the best place to invest in, and they would say China. Today they say the United States of America. (Applause.) So economically weve made enormous progress. Socially weve made progress.

When I came into office, we still saw that there were people who were serving this country, putting their lives on the line, who couldnt tell the truth about who they were and who they loved. And we ended don't ask, don't tell, and we helped to argue against DOMA. And ultimately, weve now seen this amazing transformation in terms of how our LGBT brothers and sisters are treated all across the country. (Applause.)

Weve ended one war; were in the process of ending another. Weve made sure that millions of those returning veterans are able to get the kind of college education or skills that they need in order to find a job.

Across the board, you could argue that were in a better place. But -- and heres the but. You knew there was a but, otherwise there wouldnt be much of a call to arms here. The truth is, is that people across the country still feel anxious. And the question is, why? Well, one of the reasons they feel anxious is because even though the stock market has hit record highs, and even though corporate profits have hit record highs, for the vast majority of folks in the middle class or people striving to get into the middle class, their wages, their incomes have flat-lined. No matter how hard they work, they feel as if theyre treading water. And thats not a one-year trend, thats not a five-year trend -- although the Great Recession made it much worse -- thats a 20, 30-year trend.

People dont feel as if the basic American Dream -- if you work hard and you act responsibly you can get ahead -- that that is sufficiently realized for all Americans. So we got some folks who are doing very well, but there are a whole lot of folks who still arent.

People are still feeling anxious because some of the paths of opportunity for people who were born in a tough situation, those paths seem to be narrower and narrower. Its harder to get money to go to college. If you do get to college, youre loaded up with a whole lot of debt. The jobs that might be available if you go may not allow you to service those debts. And so young people start feeling anxious; theyre not sure whether their hard work will pay off in the future.

Obviously, people are concerned about some of the turmoil thats taking place around the world. And they look at the Middle East and they see a transition from an old order to a new order, and theyre not sure how thats going to happen, and the terrible violence that occurs as a result.

But the conflict that probably makes people most discouraged is the conflict they see in Washington, where members of Congress cant seem to do anything; where all we hear about is gridlock, and all we hear about is posturing, and all we hear about are phony scandals. And no offense, Scandal is a great show -- (laughter) -- but its not something that we necessarily want to be living out day in, day out. And the truth is, is that what we see on the nightly news or on cable news is just this constant clamor of hot air, and folks posturing and opinionating but not actually doing any work that focuses on the people who sent them there.

And those two things are connected -- the idea that the economy is not working for everybody and that the government isnt working for anybody. Because the truth of the matter is, when you look at our history, our economy has always grown best when it grows from the middle out, from the bottom up, not from the top down. When everybody gets a chance, everybody does well.

But typically throughout our history, the way that has happened is that the entrepreneurship and drive and energy and focus of the American people is then combined with some collective efforts through our government to give people a shot. The G.I. Bill for folks coming back from World War II. Medicare and Medicaid and Social Security for seniors; if theyve worked a lifetime, they shouldnt be living in poverty. The ability for me or Michelle to go to college because somebody was out there providing grants and loans that were affordable. Decent public schools. Decent public parks. A sense of community, and a willingness to invest in the next generation -- even if our kids were going to be okay, we decided, you know what, we want every child to have that same shot.

Thats how we grew this economy. Thats how we became an economic superpower. And so when government doesnt work at all, it means that its much harder for folks to get a handle, an ability to climb up those ladders into the middle class

Now, I know I may be preaching to the choir here, but let me just be clear: The reason government is not working is not because both parties are just at fault and a plague on both their houses; nobody has integrity; politicians are all the same, theyre all -- no. Democrats are not perfect. No -- (laughter) -- we got some strong partisan Democrats here. (Laughter.) Let me just say, Democrats are not perfect. There are some times where weve done some stupid stuff. There have been times where weve been on the wrong sides of issues. There are Democrats who are more interested in getting elected than getting things done. There are Democrats who sometimes cater to special interests.

But the truth of the matter is that the reason right now we dont have a government thats working for the American people is because the Republican Party has been taken over by people who just dont believe in government; people who think that the existing arrangements where just a few folks who are doing well, and companies that pollute should be able to pollute, and companies that want to cheat you on your credit card should be able to do that, and that anything goes -- thats their philosophy. And as a consequence, they have no interest in seeing anything work. The people theyre fighting for and working for, stuff is working for them just fine.

And so they obstruct, and they obfuscate, and they bamboozle, and they sometimes dont tell exactly whats true -- that was a euphemism. (Laughter.) And the reason it works for them is because so often we look at whats happening and we say, you know, we dont really like the Republicans and what theyre doing, but if nothing is working, its not worth my time to get involved. And people grow cynical, and people grow discouraged. And over time they start thinking, you know what, all politicians are the same. And most folks dont have the time to sort out all the intricacies of Obamacare or Benghazi, or this or that. They dont have time for that. All they know is its not working for them. And so people then pull out and they drop out, and they dont work. And that further entrenches those who are protecting an unjust status quo.

And so Im here today -- and I hope you are here today -- to help to break that cycle of cynicism. We cant afford to be cynical. Weve got so much to do. As much as weve done over the last five years, weve got so much more to do. And the truth of the matter is, is that if we are serious about helping the middle class and people trying to get into the middle class, we know what to do. We know that if we raise the minimum wage, then there are 28 million who are helped. Janelle has spoken movingly about her family and her mom working, cleaning other folks mess. I tell you what, there are a whole bunch of folks out there who if they have a higher minimum wage, it helps them. It makes a difference in their lives. We know it. And, by the way, if they have more money in their pockets, that means theyre spending more money and businesses are doing better, not worse.

We know that if we were helping more families with child care and early childhood education, our kids would be better. Every dollar we put into early childhood education we get seven dollars back -- (applause) -- and lower dropout rates, and lower teen pregnancies, and lower substance abuse. And, by the way, then parents are helped because they dont have the worry of whether or not somebody is going to be looking after their children safely and properly when they have to go off to work. We know that. Other countries are able to provide that. Why arent we, wealthiest nation on Earth?

We know that women are still getting paid 77 cents on the dollar. Weve proposed to make sure that we strengthen the laws that ensure equal pay for equal work. Ive got two daughters -- I dont want some boy getting paid more than my daughters for doing the same job. (Applause.) And thats not just good for women, thats good for America. When women succeed, America succeeds. We know that. Why arent we moving forward on that? (Applause.)

We know we could be doing more to make college more affordable, helping young people lower their costs so that they start a family or start a business when they -- when I graduated from college in the 80s, I didnt have any money. I was relying on loans and grants, and working during the summer and working during the year. But I was able to pay off most of my debt in about a year -- and I wasnt making a lot of money that first year.

Young people now, theyre averaging $25,000, $26,000 in debt when they come out of school. And they start in a hole -- I said average. There are some folks who have got more. We could be helping them. Why arent we?

We could be rebuilding America right now. Weve got $2 trillion in deferred maintenance. Shonda just moved into this house. She was telling me how shes going to have to do a few renovations. (Laughter.) Well, you know what, America is still relying on roads and bridges and dams and water systems that were built in the 30s and 40s and 50s and 60s. When we had a sense of common purpose -- why arent we rebuilding all that stuff? We could be putting folks to work right now, retraining young men and women to be out there rebuilding our roads, our bridges, our ports, our electrical grid, our airports, all of which would make our economy more efficient and would help families right now.

So we know what to do. The problem is, is that theres no political will to get it done. And thats where you come in. Thats where you come in. I know that sometimes people got so excited back in 2008, they though, all right, we elect Barack and thats it. (Laughter.) Thats it. Despite the fact that some of you remember -- some of you were there in 2008; you might have gone to an early rally in 2007, 2008. And what would I tell you? I told you at the time this is not about me, this is about getting our democracy to work, getting everybody involved and engaged. And when we win, thats not the end, thats the beginning. It gives us the opportunity to start doing stuff, and we have to continue to be involved. And that means that Ive got to have a Congress that has some sense and is willing to work -- (applause) -- and is willing to compromise, and is focused on the American people. And we dont have that right now. And since we dont have it right now, were going to have to work a little harder to get a Congress that works on behalf of the American people.

Now, one of the problems with Democrats is were real good on presidential elections. We get real excited. But during midterm elections, people dont even know theres an election -- dont know who their congressman is, dont know who their senators are. And as a consequence, the other side tends to vote at higher rates. Were disproportionately young. Were disproportionately minority; disproportionately single women. And we dont vote at the same rates. And so the midterms come around, and lo and behold were surprised when John Boehner is the Speaker of the House. Say, well, how did that happen? (Laughter.) What happened to Nancy Pelosi? What happened was you all didnt work. Thats what happened. (Laughter and applause.) And then all kinds of -- (laughter) -- stuff happened. (Laughter and applause.) Thats what it was -- stuff. (Laughter.)

So weve got to step it up in the midterms -- not when its easy, not when its sexy, not when theres Hope posters and Janelle singing, and its all cute. Weve got to be in the trenches when its hard. And its hard right now, but now is exactly when everybody has got to step up. (Applause.) You got to step up. And if you do step up, then were going to make progress. Were not going to solve every problem, but well make progress.

Well be able to continue to develop our energy in this country in a way that also protects our environment and prevents climate change. Well be able to put people to work rebuilding cars for the future that have twice the fuel efficiency -- save you money, save our environment.

If you work hard, we will get a minimum wage increase that will help millions of people. If you are willing to engage, well get equal pay for equal work legislation passed. If youre willing to work hard, well rebuild some roads and bridges and put people back to work. If you are willing to work hard, then we can help to transform our criminal justice system so we dont just have a pipeline from schools to jails, but instead we got pipelines from schools to college to jobs -- if youre willing to work. (Applause.)

If youre willing to work, then the incredible progress weve already made on the Affordable Care Act will be expanded, and more states will make sure that more people have the health care that they need, and they wont go bankrupt if they get sick. Well be able to make college more affordable. Well make progress.

So let me just -- let me wrap by saying this: Sometimes in life, as well as in politics, we dont get 100 percent of what we want right away. And in life, at least -- I think when Im talking to Malia and Sasha, and they confront a setback or an obstacle, I dont tell them, well, you should just quit. Thats not the lesson I teach them. I tell them, yes, this is what life is like, and as you approach adulthood you will confront more obstacles and more difficulties. But if you apply yourself, if you are persistent, if youre focused, if you have a vision about where you want to go, youll get there.

Well, politics is no different. Sometimes were so steeped in cynicism, we are so convinced that nothing can change and nothing can happen, we forget the kinds of changes that have already been made.

We got interns coming to the White House every six months -- incredibly talented, accomplished, idealistic young people. And they come and theyre having so much fun getting to know each other, and theyre working in our offices. And then at the end I speak to them as a group, and I answer a bunch of their questions, and invariably one of them will ask, well, you know, Mr. President, whats a piece of advice for us about how we can accomplish our goals, or how we can show leadership or what have you. I said, you know, most of it is just persistence. And persistence, however, requires a sense of hope. Persistence requires a sense of optimism. You cant be persistent if youre cynical. You cant be persistent if you dont believe that at some point this work will pay off.

And so I always tell the interns -- I said, listen, if you had a choice of any moment in human history to be born -- and you dont know who youre going to be. You dont know that -- theres no guarantee youre going to be Shonda. (Laughter.) Theres no guarantee that youre going to be rich, theres no guarantee that youre going to be a certain gender or a certain race -- or for that matter, even a certain nationality. Youre just asking -- when should you be born in the history of human race, youd choose now.

Mankind has never been wealthier, healthier, more tolerant, better educated than it is now this moment. And why is that? The reason is, is because 50 years ago and 100 years ago and 200 years ago, some people looked out and said, you know what, I think we can do things better. We can organize society better. We can be more just. We can be more fair. We can give more people opportunity. And they fought for it -- and it didnt always happen right away.

We fought a Civil War in this country that ended in the early 1860s. It took 90 years before the Supreme Court was even willing to affirm what the 13th and 14th and 15th Amendment said, and declare separate but equal unconstitutional. Almost 100 years from the bloodiest war in our history on our soil, just to get the Supreme Court to even acknowledge what had been the object of the fight. And then it took 10 years from the time that Brown vs. Board of Education was passed until 1964 when the Civil Rights Act and the Voting Rights Act started to become law that could actually implement the rulings of the Court. And then it took another 10, 15, 20 years before genuine opportunity opened up for a lot of folks.

And at each juncture, somebody could have said, this is too hard, and it aint getting -- it aint ever going to happen. And in fact, people did, just like they told me I couldnt be President. (Laughter.)

So my point is, nothing worthwhile has ever been accomplished by the cynics and the naysayers. This week is the 45th anniversary of Neil Armstrong landing on the moon. Now, I remember sitting on my grandfathers shoulders when I was six, seven, eight years old -- probably five or six, actually. And I grew up in Hawaii, and Id watch the astronauts come back in the capsules because theyd be picking them up out of the Pacific Ocean. And wed be waving flags, and you could see the capsule from a distance. And I had Buzz Aldrin and Mike Collins and the wife of Neil Armstrong into the Oval Office just to celebrate. And we started talking, and we all agreed it wasnt the cynics and the naysayers that sent a man to the moon. There were a whole bunch of folks who said you couldnt do that. It was the folks who said, no, we can do that, yes we can -- just like it was the folks who said, yes, we can overcome slavery; yes, we can overcome Jim Crow; yes, we can get a voting rights act passed. At every juncture, its not the cynics, but its those who are filled with hope that get things done. Cynicism is a choice. Hope is a better choice.

And so, yes, weve been through five years of tough times, and yes, sometimes politics looks nasty, and yes, it can be discouraging, and yes, were going to have setbacks. And every step forward we take, sometimes well get two steps back, and well start feeling like its not worth it.

But remember, every single one of us here, at some point somebody was fighting for you when it wasnt likely that they would succeed. And weve got the same obligation to Kerrys young daughter, and your sons and daughters, and Malia and Sasha. And if we have that same sense of urgency in this midterm election, I am absolutely confident we can get a Congress that can work.

And Ive got two years left in this presidency. I want to get a whole bunch of stuff done. I need your help. So lets go out there and work.

Thank you, everybody. God bless you. God bless America. God bless Debbie Allen. (Applause.) Love you guys. Thank you. And Berry Gordy, too. Thank you, everybody. (Applause.)

END 5:43 P.M. PDT