Recession is officially over, but anxiety lingers

Although he avoided business-bashing rhetoric, Obama defended his history on a range of policies, pushing back against the idea that his record on health-care reform, financial regulation and intervention in the automobile business has hurt the markets and business community. He said that Wall Street is thriving, pointing out billion-dollar bonuses, and that the auto sector has been revived.

And he did not let up in his support for allowing the George W. Bush administration's tax cuts for the wealthy to expire. Business leaders, Republicans and moderate Democrats have opposed any tax increases, saying the economic recovery is too fragile.

"What the Republicans are proposing is that we . . . provide tax relief to primarily millionaires and billionaires. It would cost us $700 billion to do it. On average, millionaires would get a check of $100,000," he said. "And, by the way, I would be helped by this, so I just want to be clear. You know, I'm speaking against my own financial interests. It is an irresponsible thing for us to do. Those folks are the least likely to spend it."

That line drew applause from the audience of about 200 or so at the Newseum, but it probably won't fare as well on Wall Street. One investor at the forum, Anthony Scaramucci, said the administration has been "whacking at the Wall Street pinata."

Obama said he has tried to strike a balance between being pro-business and being practical.

"I think most folks on Main Street feel like they got beat up on, and I'll be honest with you, there's a big chunk of the country that thinks that I have been too soft on Wall Street. . . . What I've tried to do is just try to be practical," he said.

"If you're making a billion a year, after a very bad financial crisis where 8 million people lost their jobs and small businesses can't get loans, then I think that you shouldn't be feeling put upon," Obama said. "The question should be, how can we work with you to continue to grow the economy."

Yet Obama has not been able to shake the big-government, anti-business label, despite recent outreach by the White House to top business executives. A recent Forbes cover story cast the president as hostile to private enterprise.

Harwood asked Obama whether he would have a Bill Clinton moment and declare the end of big government.

"My entire focus right now is to make sure that the private sector is thriving, is growing, is investing. As I said, that's why we haven't increased taxes on corporations. We are not proposing . . . taxation on dividends to go up above 20 percent. I think we've been very responsible stewards," he said. "I do believe that we've got to make sure that basic rules of the road are in place and that consumers, workers, ordinary folks out there aren't taken advantage of by sharp business practices. And I don't think that there's anything about that that's inherently anti-business."

Obama said his administration is looking at the possibility of a payroll tax holiday, in addition to the research-and-development tax breaks for corporations already proposed.

"We are willing to look at any idea that's out there that we think will help. But we've got to do so in a responsible way. We've got to make sure that whatever it is that we're proposing gives us the best bang for the buck. A lot of ideas that look good on paper, when you start digging into them it turns out that they're more complicated and they may end up not working the way they're supposed to."