THE PRESIDENT: Hello, everybody! (Applause.) Oh, it is good to be in L.A.! (Applause.)It is colder in D.C.at the moment, colder in Chicago, and 70-degree weather is something tobethankful for.

　　And it is great to be atDreamWorks Animation. I would like towork here. (Laughter.) I haveasked Jeffrey. The only concern I had was the lights werekind of dim in the offices and -- (laughter) -- I’m pretty sure I’d fallasleep. But there’s a natural connectionbetween me andDreamWorks. I don’t knowif you know this, but my ears were one of the inspirations for “Shrek.” (Laughter.) That’s true. True story.

　　Mellody was being very modestwhen she said she had a front-row seat. Mellody was one ofmy earliest supporters back when nobody couldpronounce my name. And her and JohnRogers atArial Capital helped to co-chair some of my first fundraisers. Andthey’d have to drag somestraggly group in, kicking and screaming, and write acheck and listen to this young senatorwho had a lot of ideas but notnecessarily any realistic prospects to win. And she went througha lot of ups and downs with me and my career and isjust a great, great friend. So I wanttothank her publicly for all the support that she’s given us. (Applause.)

　　We’ve got some folks here who arefighting for the people of Southern California every singleday and I just wantto acknowledge them. We’ve got the Mayorof Glendale, Dave Weaver. (Applause.) We’vegot three of your outstanding members of Congress -- Brad Sherman, AdamSchiff,Karen Bass. They are all doing a greatjob. (Applause.)

　　I want to thank all of you forbeing here. And I want to thank yourCEO, Jeffrey Katzenberg,for inviting me. (Applause.) Jeffrey, like Mellody, has been a friend and a supporterthroughthick and thin. And I think hisplace in the entertainment industry is legendary -- I don’t needto puff him uptoo much. (Laughter.) He has a healthy sense of self. (Laughter.) But he is agreat friend and somebody whose counsel and advice I value.And I’m incredibly grateful to behere at this wonderful institution that hehelped to build

　　And I’ve come here today becausethis is one of America’s economic engines. Not justDreamWorks, but this whole cluster of companies thatgenerations have grown up knowing --Disney and Warner and Universal andothers. When you think about it, whatfinance is to NewYork, what the auto industry is to the Midwest, what technologyis to Northern California,entertainment is to this part of the country.

　　And most of us have spent a lotof time thinking about our favorite movies or TV shows, butwe don’t oftenthink about the entire infrastructure and industry behind the scenes. Hundreds ofthousands of middle-class jobs --they’re not always on the marquee -- jobs for electricians, andcarpenters, andsound mixers, and makeup artists, and designers, and animators depend onthisincredible industry here in southern California.

　　Entertainment is one of America’sbiggest exports. And every day, you sella product that’smade in America to the rest of the world. Every time somebody buys movie tickets, orDVDs, ordistribution rights to a film, some of that money goes back to thelocal economy right here.

　　And believe it or not,entertainment is part of our American diplomacy. It’s part of whatmakes us exceptional, partof what makes us such a world power. Youcan go anywhere on theplanet and you’ll see a kid wearing a “Madagascar”T-shirt. (Laughter.) You can say, “MaytheForce be with you” -- they know what you’re talking about. (Laughter.)

　　Hundreds of millions of peoplemay never set foot in the United States, but thanks to you,they’ve experienceda small part of what makes our country special. They’ve learned somethingabout our values. We have shaped a world culture through you.

　　And the stories that we telltransmit values and ideals about tolerance and diversity andovercomingadversity, and creativity that are part of our DNA. And as a consequence of whatyou’ve done, youhelped shape the world’s culture in a way that has made the world better.

　　They might not know theGettysburg Address, but if they’re watching some old movie,maybe “Guess Who’sComing to Dinner,” or “The Mary Tyler Moore Show,” or “Will and Grace”and“Modern Family,” they’ve had a front-row seat to our march towards progress,even if theirown nations haven’t made that progress yet. And young people in countries all around theworldsuddenly make a connection and have an affinity to people who don’t looklike them and maybeoriginally they might have been fearful of, and nowsuddenly they say, oh, this person is likeme -- which is one of the powers ofart, but that’s what you transmit.

　　And that is a remarkablelegacy. Now, it’s also a bigresponsibility. When it comes toissueslike gun violence, we’ve got to make sure that we’re not glorifying it, becausethe storiesyou tell shape our children’s outlook and their lives. Earlier this year, leaders from this townsatdown with Vice President Biden to talk about what Hollywood could do to helpkeep our kidssafe. This was in the wakeof Sandy Hook. And those conversationsneed to continue. The storieswe tellmatter. And you tell stories morepowerfully than anybody else on the Earth.

　　But I want to make clear, even aswe think long and hard about the messages we send, weshould never waver fromour commitment to the freedom that allows us to tell those storiessowell. Protecting our First Amendmentrights are vital to who we are. And it’salso goodbusiness, because in the global race for jobs and industries, thething we do better thananybody else is creativity. That’s something that can’t be copied. It’s one of the reasons whyeven with newmarkets and new technologies, there’s still no better place to make moviesandtelevision and music than right here in the United States.

　　Entertainment is one of thebright spots of our economy. The gapbetween what we can doand what other countries can do is enormous.

　　AUDIENCE MEMBER: Woo!

　　THE PRESIDENT: Yes, that’s worth cheering for. (Applause.) And that means that we’vegot todo what it takes to make sure that this industry, and every great Americanindustry, keepsthat competitive edge so that more folks can find career pathslike many of you have, and getgood middle-class jobs that allow you to supporta family and get ahead.

　　Nothing is more important thanthat right now. And as Mellodymentioned, when I came intooffice, we were going through a severe crisis. Five years later, America has largely foughtourway back. We’ve made the toughchoices required not just to help the economy recover, but torebuild it on anew foundation for stronger, more durable economic growth.

　　We refocused on manufacturing andexports, and today, our businesses sell more goods andservices made in thiscountry to the rest of the world than ever before. Our manufacturers areadding jobs for thefirst time since the 1990s, led by an American auto industry that’scomeroaring back. American cars are reallygood now. (Laughter.)

　　We decided to reverse ourdependence on foreign oil. So today, wegenerate more renewableenergy than ever -- doubled our renewable energy --more natural gas than anybody. For thefirsttime in nearly 20 years, America now produces more of our own oil than webuy from othercountries. It’s goodnews. (Applause.)

　　When I took office, Americainvested far less than countries like China did in wirelessinfrastructure andwe’ve now narrowed that gap, and we have helped companies unleash jobsandinnovation and become a booming app economy that’s created hundreds ofthousands ofjobs. Six years ago, only 5percent of the world’s smartphones ran on American operatingsystems. Today, more than 80 percent do. (Applause.)

　　And, yes, we decided to fix abroken health care system. (Applause.) And it’s interesting-- Iwas talking to some of the studio execs here, and I said, look, therollout of the new health caremarketplace was rough and nobody was morefrustrated about the problems with our websitethan I am. And yet, here in Southern California and hereacross this state, there are thousandsof people every single day who are gettinghealth care for the first time -- for the first time --because of this. (Applause.) And, by the way, the website is continually working better, socheck itout. (Laughter.)

　　But as a country, we’re nowpoised to gain health coverage for millions of Americans,starting on January1st, and that includes more than 350,000 here in California who havealreadysigned up. And thanks in part to theAffordable Care Act, health care costs are growing atthe slowest rate in 50years. Employer-based health care costsare growing at about one-third therate of a decade ago. And that means that if the studios here oryour employers aren’t havingto spend as much on health care, they can hiremore folks and reinvest more in the business,and come up with those cooltechnologies that -- I don’t exactly understand how they work, but--(laughter) -- were really neat to look at. (Laughter.)

　　And, by the way, we’ve done allthis while bringing down our deficits. (Applause.) After yearsoftrillion-dollar deficits, we reined in spending. You would think sometimes listening to folksinWashington that we haven’t made any progress on that front. We wound down two wars. Wechanged a tax code that was too skewedtowards the wealthiest Americans at the expense of themiddle class. You add it all up, we’ve cut our deficits bymore than half, and they continue to godown faster than any time since WorldWar II. (Applause.)

　　So all told, our businessescreated 7.8 million new jobs over the past 44 months. Americahas gone farther, recovered fasterthan most other industrialized nations. But, as Mellody said,we’ve got more work to do. The stock market is doing great, corporateprofits soaring, but toomany Americans aren’t sharing in that success. And everybody here who works at DreamWorks--a really good place to work. I’m goingto ask Jeff if maybe I can work here. (Applause.) But allof you havefriends and family and neighbors who aren’t as lucky. And you know there are still alot of folkswho are struggling out there. And my top priority is making sure that thiscountryremains a country where everybody who is willing to work hard can getahead.

　　And we’d be a lot further alongwithout some of the dysfunction and obstruction we’veseen in Washington. (Applause.) We would be a lot further along if we could just get folks to actwithsome sense -- (laughter) -- if we didn’t have one wing of one party that was alittle lessobsessed with repealing health care for 40 million people, moreconcerned with making surethe law works. If they hadn’t spent 40 votes trying to repeal the Affordable Care Act,theymight have actually taken some votes on rebuilding our infrastructure, orinstituting earlychildhood education for young people across this country, orinvesting more money in basicresearch that helps to create the amazingtechnologies that many of you utilize. Any of theserious proposals I’ve put forward that would be creatingjobs right now, they could have beentaking votes on that.

　　Instead of rooting for failure,or refighting old battles, Republicans in Congress need to workwith us toimprove those things about the Affordable Care Act that aren’t working as wellas theyshould, and implement policies to strengthen the middle class andcreate jobs. (Applause.)

　　A couple of weeks ago, HouseRepublican leaders handed out a piece of paper to theirmembers and on the topit said, “Agenda 2019.” I’m not makingthis up. Below that, it wasblank. (Laughter.) It was a blank sheet of paper -- nothing to create jobs or grow theeconomyor strengthen the middle class.

　　And I’ve put forward my plans tocreate new jobs and even the odds for the middle class.And I’ve put forward plans that gives someRepublicans some of the things that they want inexchange for ideas that willcreate good jobs right now. And so far,they won’t consider them.

　　Some people have heard me say mylist of top five movies -- “The Godfather,” one and two,have to be on it. But it turns out Marlon Brando had it easy,because when it comes to Congress,there’s no such thing as an “offer they can’trefuse.” (Laughter.) I mean, I just keep on comingback. (Laughter.) I’m going to keep on trying, though. (Laughter.) I am, because we’vegot nochoice. (Applause.)

　　The American people agree with usthat jobs, growing the economy should be our number-one priority. And we’ve got to make some investments tomake that happen. And we’ve got togivea better bargain to the middle class and everybody who is working to join themiddle class.And that means building onthose cornerstones of what makes for a strong middle class -- goodjobs, a goodeducation, a home of your own, health care when you get sick, a secureretirementeven if you’re not rich. Sowe can help manufacturers bring more jobs back to America byinvesting inAmerican clean-energy technology, and putting people to work building roadsandbridges and schools and high-speed broadband networks that attract businessesfrom aroundthe world.

　　We can prepare our children andour workers for the global competition that they’ll face --expandinghigh-quality preschool education, redesigning our high schools, investingincommunity colleges and job training, and tackling rising college costs, so thatyoung peoplecan afford it. We can helpresponsible homeowners afford a mortgage or refinancing at today’slow rates,help build a rock-solid housing system for decades to come, instead of boom andbust.

　　We can bring the promise of asecure retirement back to reach for middle-class families,finding new ways tomake it easier for workers to save, and strengthening Social Security,andgetting immigration reform done so that undocumented workers are paying theirfair shareof taxes, but they’re not living in the shadows -- (applause) -- andwe’re attracting the best andthe brightest from all around the world.

　　As I was getting a tour ofDreamWorks, I didn’t ask, but just looking at faces, I could tellthere weresome folks who are here not because they were born here, but because they wanttobe here and they bring extraordinary talents to the United States. And that’s part of whatmakes Americaspecial. And that’s part of what, by theway, makes California special, because it’salways been this magnet of dreamersand strivers. And people coming fromevery directionsaying to themselves, you know, if I work hard there I can havemy piece of the AmericanDream.

　　We’re going to continue to makeprogress on all those fronts. And, yes,we are going tocontinue to implement the health care law. The product is good. People want it. And we shouldnot live in a country wherepeople are going bankrupt just because they get sick. And anybodywho is going to keep on pushingagainst that, they will meet my resistance, because I amwilling to fix anyproblems that there are, but I’m not going to abandon people to make surethatthey’ve got health insurance in this country. That is not something we’re going to do. (Applause.) And the good news is,as I said, thousands of Californians are already signing up.

　　I read a really powerful storyover the weekend I just want to mention about uninsured folksin Kentucky whoare signing up in droves in one of the poorest counties in the country. Some ofthem can’t imagine what having healthinsurance would be like. And you read thesestories andyou realize how important it is for folks in Kentucky -- a state,by the way, that did not vote forme -- (laughter) -- and if Kentucky can doit, than every state should be able to do it.

　　We should be able to expandMedicaid all across the country. There are millions of peoplewho, right now,even under the law, may not get health care that they deserve becausetheirgovernors have refused to do it just for political reasons -- expandingMedicaid. Fortunately,California,obviously, is not one of them. But thisis a fight that we’re going to keep fighting,because it’s worth fighting. And that’s what Mellody referred to.

　　It’s true. I’m not an ideological guy, but there aresome things I really believe in. Andpart ofwhat I believe in is that the essence of this country, what makes thisplace special, is this ideathat Hollywood is glorified and held up, but Iactually think it’s true that here, more thananyplace else, no matter what youlook like, where you come from, what your last name is, whoyou love, youshould be able to make it if you’re willing to work hard. That’s what I believe. (Applause.)

　　And there’s certain values thatmake that a reality. I have my critics,obviously, but sincewere here in Hollywood, I want to think about somethingthat the late, great Chicago film critic,Robert [Roger] Ebert said -- and Iwas fortunate to get to know Roger Ebert and was alwaysinspired by how hehandled some really tough stuff. “Kindness,” he wrote, “covers all of mypolitical beliefs.” Kindness covers all of my political beliefs.

　　And when I think about what I’mfighting for, what gets me up every single day, thatcaptures it just about asmuch as anything. Kindness; empathy --that sense that I have astake in your success; that I’m going to make sure,just because Malia and Sasha are doingwell, that’s not enough -- I want yourkids to do well also. And I’m willing tohelp to build goodschools so that they get a great education, even if mine arealready getting a great education.

　　And I’m going to invest ininfrastructure and building things like the Golden Gate Bridgeand the HooverDam and the Internet -- (laughter) -- because I’m investing for thenextgeneration, not just this one. And that’swhat binds us together, and that’s how we’vealways moved forward, based on theidea that we have a stake in each other’s success. Andthat’s what drives me. And that’s what will continue to drive me.

　　I believe that every kid shouldhave opportunity. I believe ourdaughters should have thesame opportunities as our sons. I believe that Jeffrey’s kids should be ableto aspire to whateverthey can dream of, but I also want to make sure that theperson who’s cleaning up Jeffrey’soffice, that their kid has that samepossibility.

　　And we may have different ideasand different policies on how to do things, but thatshouldn’t negate that thatcore vision is what we’re fighting for, and we should be able to sitdowntogether and to keep dreaming and keep working, and to make sure that theAmericanDream that’s been described here in Southern California is sustainedfor generations to come.

　　And what’s stopping us is notpolicy details; it’s not technical issues. It’s to summon thecourage to put politics aside once in a while and rememberthat we’ve got more in common thanour politics would suggest. And as long as I’ve got the privilege ofserving as your President,that’s what I’m going to keep on making sure that Ido -- to put politics aside once in a whileand work on your behalf. (Applause.)

　　So, thank you, DreamWorks, forwhat you do. (Applause.) Thank you, Jeffrey, foryourhospitality. God bless you. God bless America. (Applause.) Can’t wait to see your nextmovie. (Applause.)