'Meet the Press' transcript for Nov. 23, 2008

MR. TOM BROKAW: Our issues this Sunday: After another down week of terrifying news in the financial markets, President-elect Obama unveils a massive new plan to stimulate the economy. He is expected to name the current head of the New York Fed, Tim Geithner, as his new secretary of the Treasury. What can be done now, and how will the president-elect address this continuing economic meltdown come January? Insights from two political heavyweights--a man who served President Reagan as secretary of the Treasury and George Bush 41 as secretary of state, Jim Baker; and an adviser to Obama's transition team, the secretary of commerce for President Bill Clinton, William Daley of Chicago.

Then, he was the Democratic vice presidential nominee in 2000 but supported Republican John McCain in 2008. After a fight to keep his key chairmanship in the Senate, does Joe Lieberman have any regrets? We'll ask him. An exclusive interview with Connecticut's independent senator, Joe Lieberman.

Plus:

(Videotape)

REP. NANCY PELOSI (D-CA): ...they show us the plan, we cannot show them the money.

(End videotape)

MR. BROKAW: Prospects for a Detroit bailout fade on Capitol Hill. The very latest on the Obama transition and his expected Cabinet picks. Insights and analysis from our political roundtable: the anchor of CNBC's "Street Signs" and co-anchor of CNBC's "Squawk on the Street," Erin Burnett; the former Detroit bureau chief for The Wall Street Journal, Pulitzer Prize winner Paul Ingrassia; Washington Post columnist Eugene Robinson; and NBC News political director Chuck Todd.

But first, the subject on the minds of everyone these days, the economy. And now two men who have served the economic teams of former presidents, former Treasury secretary for President Reagan James Baker, former commerce secretary for Bill Clinton, now an adviser to the Obama transition team, Bill Daley of Chicago.

Welcome to both of you.

Mr. Daley, let's begin by hearing what the president-elect had to say in his radio address to the country yesterday as it played out on his Web site, about what he has in mind.

(Videotape)

PRES.-ELECT BARACK OBAMA (D-IL): I have already directed my economic team to come up with an economic recovery plan that will mean 2.5 million more jobs by January of 2011, a plan big enough to meet the challenges we face that I intend to sign soon after taking office. We'll be working out the details in the weeks ahead, but it will be a two-year nationwide effort to jump-start job creation in America and lay the foundation for a strong and growing economy.

(End videotape)

MR. BROKAW: We're beginning to hear some of the details this morning. Is this going to be an FDR public works kind of project?

MR. WILLIAM DALEY: I think what you're going to see, Tom, is a combination of, yes, there must be infrastructure, we must rebuild our roads, our bridges, as the president-elect said. We must modernize our schools. Those are investments. But at the same time, there'll be a host of other things that the economic team will look at. The president-elect is intent on this being done over the next number of weeks, ready to be introduced even before he's sworn in so that the Congress can deal with it over those three--two and a half weeks and then hopefully pass it and have it ready to be signed. But it will be large enough to be meaningful and will hopefully set a predicate for laying a stronger economy, so then he can deal with the longer term issues that have been neglected for so long, starting in hopefully '10 and '11.

MR. BROKAW: We're going to get to Detroit in a moment, but will he also be addressing manufacturing in states like Ohio, and the issues of trade, which were so contentious during the campaign?

MR. DALEY: I think you'll see, in this economic recovery legislation, across-the-board look at what, what needs to be done; how large must this action be to really make an impact in the two years to create those or save those two and a half million jobs. It has to be a very large package, but it has to be a combination of things, tax cuts, the president-elect has been intent on trying to bring tax relief to the vast majority of the middle class in America.

MR. BROKAW: We want to get to taxes in a moment, but first, let's get the reaction, if we can, of Secretary Baker who's in Texas this morning.

Do you think that the Republican Party is prepared to go along with a massive public stimulation program that is directed by the government, Mr. Baker?

MR. JAMES BAKER: Well, I think it depends entirely, Tom, on what's in it. We don't really know that yet. I will say this, I think the president-elect has pinpointed a very serious problem that we all know we're living through right now. I happen to believe that we are a very resourceful people and a resourceful country, and we're going to come out of this all right, but it is, it is very serious. It's far worse than the downturn that we saw back in the 1987 when we had a stock market collapse when I was Treasury secretary. That one was much less broad and severe, but even that took us two years to come out of. So some sort of an infrastructure program could be part of, of a recovery program, but I don't know that that would be the centerpiece of it, as far as the Republicans in Congress are concerned. This is also a bad time, Tom, and, and Bill Daley knows this as well as anybody, to be doing any talk about backsliding on trade. Everybody knows that free trade creates economic winners, more winners than losers, so we ought not to be thinking about raising taxes or backsliding on foreign trade.

MR. BROKAW: And let's talk about taxes for just a moment ,if we can. The New York Times is reporting today that "in light of the downturn, Mr. Obama is also said to be reconsidering a campaign pledge: his proposal to repeal the Bush tax cuts for the wealthiest Americans. According to several people familiar with the discussions, he might instead let those tax cuts expire as scheduled in 2011, effectively delaying any tax increase while he gives his stimulus plan a chance to work." Is that your understanding of what may happen?

MR. DALEY: That looks more likely than not, Tom, but the president-elect is very committed to the fact that there must be greater equity in, in the responsibility of, of taxes in this country. We must bring tax relief to the middle class. He has said this now for two years as he's been out there on the campaign, and he's going to deliver on that. That's an integral part of his economic recovery package next year is to bring some tax relief to the American people and the vast majority who are in the middle class, not those of us who do much better than that. So I, I think he's going, he's, he's got a great team he's putting together: Tim Geithner, Larry Summers, a whole host of other people, that he's charged with putting this plan together. I think he's gone out to get the most competent, qualified, experienced people to put this together. We are, as Secretary Baker said, in the middle of an unprecedented economic crisis. We will come out of it, but these are times that no one's ever seen, and it's a global issue. And of all the people he's put forward in these major jobs are very experienced in a global setting of economics also.

MR. BROKAW: And, Secretary Baker, keeping the Bush tax cuts in place, will that be central to winning any Republican support for a massive public stimulus program of some kind?

MR. BAKER: Well, it depends on which you mean by keeping them in place. If that means he's not going to try to repeal, not going to try to increase taxes during this very critical next two-year period, then, yes, it would be and probably would be if it means that he's going to abandon the idea of, of keeping them, keeping taxes low thereafter. But let me, let me second what, what Secretary Daley said about the team that the president-elect is putting together. I think he's appointed some extraordinarily capable people, and we're going to see some more, as I understand it. And I think he's to be commended for that. Bill Daley knows and I know that any new president has got to surround himself with competent advisers, and that's even more so today when we're facing the kind of economic crisis we're facing.

May I say one other thing, Tom? I, I think that a lot of what we're seeing out there today is a lack of confidence, and the president-elect and, as a matter of fact, the current president have to face this problem over the next 60 days. It's unfortunate that we're in this interregnum of a transition, but I think that something very useful might even come out of the two of them sitting down together and addressing not the, not the midterm, not the mid and long-term problem that we face that was the subject of the president-elect's speech, but the--but facing--but addressing stability of our financial system and to see if there isn't something that they could do jointly, together, over the next 58 to 60 days that would help us make sure that the--that the financial system is stabilized and, and secure. Because if that goes under, then this thing is even, believe it or not, going to get worse. And I think just the mere fact of their sitting down together and seeing if there's not one thing that they could come together on would do a lot to restore confidence and, and remove the anxiety and fear that's out there.

MR. BROKAW: Mr. Daley, I know there's some wariness on the part of your team about getting too close to the outgoing administration, taking ownership, in effect, of some of the policies that they believe that have failed. But isn't that a reasonable idea?

MR. DALEY: Well, I think the--what you've seen is probably the, the best transition by, by President Bush of any administration outgoing. There has been great coordination, great discussions between President-elect Obama's team, the president-elect himself, and the secretary of Treasury and the, and the Fed. So there's a lot of interaction going on.

I, I agree with Secretary Baker that confidence is what's lacking. Senator Obama, in his address yesterday, put forward a very positive program. He is appreciative of President Bush's consultations with him, and they will continue that. No question, this 60-day period is, in, in some ways, is an opportunity to get a team together, get a plan together to act. We only have one president during that period, but there is great consultation going on. And, and, and all the major decisions that this, this administration is moving on, they are consulting. And as President-elect Obama's team gets put together, starting tomorrow, they'll be a greater opportunity for--to work even closer.

MR. BROKAW: You've walked all the way around the simple question, however.

MR. DALEY: Yeah.

MR. BROKAW: Secretary Baker...

MR. BAKER: Tom, Tom, I agree.

MR. BROKAW: Anyway, secretary...

MR. BAKER: I agree. I agree 100 percent. We can only have one president at a time, but nothing would do more to create confidence and, and eliminate the fear and anxiety that's out there, particularly in the finance--in financial markets, than to see the incoming president and the outgoing president get together on a--on some sort of a proposal or, or program over the short term. I'm not talking about the, the mid, the mid-term or, or long-term correction of the economy, but something that would do a little more perhaps to make sure that our, that our banks don't continue to slide down and, and that would stabilize our financial system, which is critical.

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