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'Meet the Press' transcript for Jan. 25, 2009
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 Netcast Jan. 25: National Economic Council Director Lawrence Summers joins us to discuss the nation's economic crisis. Then, the GOP response to House Democrats' $825 billion economic stimulus plan and Pres. Obama's order to close the Guantanamo prison camp from Republican Leader Rep. John Boehner (R-OH). Plus, how has the Obama administration fared in its first few days? Our roundtable weighs in: The New York Times' Tom Friedman, The Weekly Standard's Stephen Hayes, and NPR's Michele Norris. |
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DR. SUMMERS: ...$350 billion is so important. Because of course the institutions need to lend more, but they need to lend more in a way that's consistent with their solvency. And that means that crucial is capital adequacy and increased lending. And that's why we focus on the flow of credit, and capital adequacy is part of what you do to maintain the flow of, of credit and permit the increased lending that I think everybody agrees that the economy requires.
MR. GREGORY: Final question here, I want to bring this back to the anxiety that real people all around the country, people watching this are facing; not just those on Wall Street. What do you say to somebody who's trying to prepare for their future? Maybe it's a couple that's--wants to send their child to college in five years, they've been saving in their 529, perhaps they've lost a lot of money in the markets and they have lost confidence, and they're thinking, "I'm five years away from sending my son or daughter to school. What do I do?"
DR. SUMMERS: This is, I believe, why President Obama was elected. And this is why his call for an age of responsibility in what government does for all of us as we manage our own finances, as we do our own jobs is so, is so very important. People need to work hard, they need to play by the rules, and those of us with responsibility for economic policy need to do everything we can to make this economy work. And I've got no doubt that our economy's best days are well ahead of us. We are--we still are as productive as we ever were. Our workers are still as creative, as productive, as educated, as strong--our entrepreneurs--as they've ever been. But we do have a problem in the system right now. That's why we need to take extraordinary actions, and that's why--and maybe this is a good last thought. There are differences on the tactics--how much spending, how much taxes, just how you address the banking system--but I, I hope that we can compromise those differences and move forward quickly.
MR. GREGORY: It's going to get worse, though, before it gets better.
DR. SUMMERS: It--the next few months are, no question, going to be very, very difficult, and, and it may be longer, it may be longer than that. But there's also no question that if we pursue the policies we need to, if we expand this economy with invest--with crucial investments, if we help the financial system recover, if we concentrate on, on housing, that our economic strength is going to be renewed with great benefits for the American people, and for American in the world.
MR. GREGORY: All right, Dr. Larry Summers, good luck in your work.
DR. SUMMERS: Thank you.
MR. GREGORY: Thank you very much.
Coming next, the response from the Republicans. Their leader in the House, Congressman John Boehner, weighs in right here, only on MEET THE PRESS.
(Announcements)
MR. GREGORY: More on the economy. Congressman John Boehner weighs in for the Republicans after this brief station break.
(Announcements)
MR. GREGORY: House Republican leader John Boehner, welcome back to MEET THE PRESS.
REP. JOHN BOEHNER (R-OH): David, thank you.
MR. GREGORY: You've just heard from Larry Summers. You're going to be meeting with the president on Tuesday with fellow Republicans to say, "Hey, we've got some different ideas." What don't you like about this stimulus plan?
REP. BOEHNER: I just think there's a lot of slow-moving government spending in this program that won't work. We know that there's an ailing economy, and Democrats and Republicans agree to that. I think there's agreement between Democrats and Republicans and the president that we need to help our ailing economy, we need an economic rescue package. But we all want one that works; the one that helps small businesses, helps American families, helps create jobs and preserve jobs in America. And what we see with their plan is a lot of spending that I just don't think will work. And so we expressed our concerns to the president on Friday. Eric Cantor, who I had set--had put together a working group of House Republicans, outlined some of our proposals that we think will work better. Let's allow American families and small businesses to keep more of what they earn. Let's make sure that there's incentives for people to invest in our economy, because government can't do this. As you said earlier, there's a $2 trillion hole in our economy this year. Government can't fix this. We can't borrow and spend our way back to prosperity. But what we can do are provide incentives to businesses and families to reinvest in our economy.
MR. GREGORY: Well, let me stop you there, because you say that you can't borrow and spend. Of course, government has done this for a long time when they need to. The reality right now is if you want Americans to spend, they're not doing it. They're worried about their jobs, they're worried about the value of their homes. They're not spending money, they're not borrowing money. They're actually doing the prudent thing right now to do in a downtime, which is to save and to pay down debt. Doesn't the government have to be the spender of last resort?
REP. BOEHNER: Yes, but it's a matter of how we do it. If we allow American families to keep more of what they earn, they're going to save it, invest it or spend it, all of which are good for the economy. And our plan would allow American families, joint filers to keep almost $3200, up to $3200 of their money. They can, they can help multiply the economy, get the economy moving again if the money's in their hands. And this is a--this is why we have Democrats and Republicans in this country, because we do look at these things differently. They believe that all of this spending's going to help. Some of it on infrastructure, if you can get it out the door quick enough, will help.
MR. GREGORY: Mm-hmm.
REP. BOEHNER: But spending 44--or $200 million to fix up the National Mall, $21 million for sod, over $200 million for contraceptives, how does this going to fix an ailing economy?
MR. GREGORY: The administration will say, "Look, we have to take the opportunity here to invest in the kinds of things that will help the economy once there is a recovery." I remember the previous president, George Bush, saying the same thing in the energy sector back when he came into office, and he was resisted. What's wrong with making some long-term plans?
REP. BOEHNER: I can, I can agree with some of the long-term plans. And on the energy side I may not be in full agreement, but it's generally moving in the right direction. But providing $300 billion of this package to states--$166 billion in direct aid to the states, another $140 billion in education funding--this is not going to do anything, anything to stimulate our economy, to help the--our ailing economy. And so at the end of the day, it has to be targeted. It's about preserving jobs and creating new jobs.
MR. GREGORY: Do you think the Bush tax cuts, which as I just talked about with Larry Summers will expire next year, do you think the administration will repeal them this year?
REP. BOEHNER: I've got my doubts whether they'll be bold enough to do that. They may wait till next year. But raising taxes on anyone in an ailing economy is wrong. And the fact is, is that the upper income people they talk about, 75 percent of them are small business people who pay ordinary income tax rates. And to tax small business, the engine of job growth in America, is, is really just not a very good idea.
MR. GREGORY: You talk about bipartisanship. The president's talked about that. You--there was a meeting with the leadership in the White House on Friday. This is how Politico reported one of the exchanges: "President Obama listened to Republican gripes about his stimulus package during a meeting with congressional leaders Friday morning--but he also left no doubt about who's in charge of these negotiations. `I won,' Obama noted matter-of-factly, according to sources familiar with the conversation." You don't have a lot of leverage here as Republicans. Do you think its possible that the stimulus will pass the House without Republican support?
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