This is a RUSH transcript from "The O'Reilly Factor," February 3, 2014. This copy may not be in its final form and may be updated.
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BILL O'REILLY - One of my, uh, points on the Factor is that poverty is driven by the dissolution of the American family, that is the prime mover, okay. On your watch, median income has dropped seventeen percent among working families in this country. That's not a good record, it's not all your fault, part of it was this terrible recession, we all know that. Everybody knows that.
PRESIDENT OBAMA - Okay.
O'REILLY - All right. But 72 percent of babies in African-American community are born out of wedlock.
PRESIDENT OBAMA - Yeah.
O'REILLY - Why isn't there a campaign by you and the first lady to address that problem very explicitly?
PRESIDENT OBAMA - Actually, Bill, we address it explicitly all the time. I-I'll send you at least 10 speeches I've made since I've been president talking about the importance of men taking responsibility for their children. Talking about the importance of, uh, young people, uh, delaying gratification. Talking about the importance of, uh, when it comes to child rearing, paying child support, spending time with your kids, reading with them. So, whether it's getting publicity or not is a whole different question.
O'REILLY - But -
PRESIDENT OBAMA - This is something that we focus on all the time.
O'REILLY - Would you say it's been a hallmark of your administration to make that issue, because I don't believe it has. I know you've given the speeches, and I know you know - understand the problem, because you're a community organizer from Chicago.
PRESIDENT OBAMA -Yes.
O'REILLY - All right? But I don't see the pressure from the Federal government to go in and say, this is wrong, this is - this is killing, um, futures of babies and children.
PRESIDENT OBAMA - Well first of all, I've just got to say, Bill, we talk about it all the time, we'll continue to talk about it, we're convening, for example, philanthropists and business people, city by city, who are interested in addressing these kinds of problems at the local level. There is an economic component to it as well, though.
PRESIDENT OBAMA - Because - because what's interesting, when you look at what's going on right now, you're starting to see in a lot of white working class homes, similar problems - when men can't find good work, when the economy is shutting ladders of opportunity off from people, whether they're black, white, Hispanic, it doesn't matter. Then that puts pressure as well on the home. So you've got an interaction between the economy that isn't generating enough good jobs for folks who traditionally could get blue-collar jobs even if they didn't have a higher education, and some legitimate social concerns, uh. That compound the problem and so we want to hit both. We want to make sure that we're putting folks back to work and making sure that they're well-paid -
O'REILLY [OVERLAP] - But this is -
PRESIDENT OBAMA [OVERLAP] - We also want to make sure that we're dealing with some of the social issues that you're addressing.
O'REILLY - The secret to getting a je - good job is education. And in these chaotic families, the children aren't well-educated because it isn't - it isn't, um, encouraged at home as much as it is in other precincts. Now, school vouchers is a way to level the playing field. Why do you oppose school vouchers when it would give poor people a chance to go to better schools?
PRESIDENT OBAMA - Actually - every study that's been done on school vouchers, Bill, says that it has very limited impact if any -
O'REILLY - Try it.
PRESIDENT OBAMA - On - it has been tried, it's been tried in Milwaukee, it's been tried right here in DC -
O'REILLY [OVERLAP] - And it worked here.
PRESIDENT OBAMA - No, actually it didn't. When you end up taking a look at it, it didn't actually make that much of a difference. So what we have been supportive of is, uh, something called charters. Which, within the public school system gives the opportunity for creative experiments by teachers, by principals to-to start schools that have a different approach. And -
O'REILLY [OVERLAP] - You would revisit that? I-I just think - I used be, teach in a Catholic school, a-and I just know -
PRESIDENT OBAMA [OVERLAP] - Bill - you know, I - I've taken, I've taken - I've taken a look at it. As a general proposition, vouchers has not significantly improved the performance of kids that are in these poorest communities -
O'REILLY [OVERLAP] [INAUDIBLE] -
PRESIDENT OBAMA - Some charters - some charters are doing great. Some Catholic schools do a great job, but what we have to do is make sure every child -
O'REILLY [OVERLAP] - I got three more questions.
PRESIDENT OBAMA - Go ahead.
O'REILLY - All right. Keystone pipeline, new study comes in, environmental impact, negligible. Forty-two thousand jobs. You're gonna okay it, I assume.
PRESIDENT OBAMA - Well first of all, it's not forty two thousand. That's - that's not, uh, correct, it's a couple thousand to build the pipeline, but -
O'REILLY [OVERLAP] - Forty-two all told.
PRESIDENT OBAMA - Well, that, bottom line is what we're gonna do is to, uh, the process now goes agencies comment on what the State Department did, public's allowed to comment, Kerry's gonna, uh, give me a recommendation, uh -
O'REILLY [OVERLAP] - All right, so I assume we're gonna do that, after five years -
PRESIDENT OBAMA [OVERLAP] [INAUDIBLE] -
O'REILLY - Okay. I'll take that as a yes. Little Sisters of the Poor, come on, give them the little waiver that they don't have to -
PRESIDENT OBAMA [OVERLAP] - They have, you know -
O'REILLY [OVERLAP] - Come on, the Little Sisters of the Poor? Give them what they want.
PRESIDENT OBAMA - Bill, I -