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Now, I want to emphasize I say this knowing full well we face a very difficult fiscal situation.  I’m looking at the books back in Washington, and folks weren’t doing a real good job with their math for the last decade.  (Applause.)  So now that the threat of a depression has passed, and a recovery is beginning to take hold, reducing our long-term deficit has to be a priority.  And in the long run, we won’t be able to compete with countries like China if we keep borrowing from countries like China.  (Applause.)  We won’t be able to do it.  (Applause.) 

So we’ve already started making some tough decisions.  And they’re unpopular and people get mad, but we’ve got to make some decisions.  I’ve proposed a three-year freeze in all spending that doesn’t have to do with national security.  And I proposed a two-year freeze in the pay for federal workers.  That’s why we’re currently studying recommendations of the bipartisan deficit reduction panel that I commissioned.  We’re going to have to be bold and courageous in eliminating spending and programs that we don’t need and we can’t afford. 

But here’s where there's going to be a debate in Washington over the next year and over the next couple of years and maybe over the next five years, because I will argue and insist that we cannot cut back on those investments that have the biggest impact on our economic growth because -- (applause.) 

I was talking with President Green, and he said much of the equipment here would not be here if it hadn’t been for the assistance of the Recovery Act, the assistance of the Department of Labor.  (Applause.)  All this stuff that we’ve done over the last couple of years that people were questioning, you can see it translated in the classrooms right here.  The work that we’re doing on student loans and Pell Grants, you can see it in the students who are able to finance their retraining right here.  (Applause.)

So we can’t stop making those investments.  The best antidote to a growing deficit, by the way, is a growing economy. To borrow an analogy, cutting the deficit by cutting investments in areas like education, areas like innovation -- that's like trying to reduce the weight of an overloaded aircraft by removing its engine.  It’s not a good idea.  (Applause.)  There may be some things you need to get rid of, but you got to keep the engine.  (Laughter.)

That’s why even as we scour the budget for cuts and savings in the months ahead, I will continue to fight for those investments that will help America win the race for the jobs and industries of the future -– and that means investments in education and innovation and infrastructure.  I will be fighting for that.  (Applause.)    

In an era where most new jobs will require some kind of higher education, we have to keep investing in the skills and education of our workers.  And that’s why we are going -- we are well on our way to meeting the goal I set when I took office two years ago:  By 2020, America will once again have the highest proportion of college graduates in the world.  That's a commitment that we’re making.  (Applause.)

So to get there, we’re making college more affordable for millions of students.  We’ve made an unprecedented investment in community colleges just like this one.  And just like Forsyth, we’ve launched a nationwide initiative to connect graduates that need a job with businesses that need their skills. 

We’re reforming K-12 education –- not from the top down, but from the bottom up.  Instead of indiscriminately pouring money into a system that’s not working, we’re challenging schools and states to compete with each other –- to see who can come up with reforms that raise standards, and recruit and retain good teachers, raise student achievement, especially in math and science.  We call it Race to the Top -- (applause) -- where you get more funding if you show more results -- because part of the argument here is, is that if we’re going to have a government that's smart and helping people compete in this new global economy, then we’ve got to spend our money wisely.  And that means we want to invest in things that are working, not in things that aren’t working just because that's how things have always been done.

Now, once our students graduate with the skills they need for the jobs of the future, we’ve also got to make sure those jobs end up right here in America.  We’ve got to make sure that the United States is the best place to do business and the best place to innovate.  (Applause.)  So it’s time, for example, that we have a tax code that encourages job creation here in America. (Applause.) 

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