FOX News "Your World" - Transcript
FOX NEWS CHANNEL "YOUR WORLD" INTERVIEW WITH GOVERNOR MARK SANFORD (R-SC)
SUBJECT: STATES SEEKING ECONOMIC BAILOUT ASSISTANCE INTERVIEWER: NEIL CAVUTO
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MR. CAVUTO: Nancy Pelosi in Washington talking up this idea of an auto bailout and what the Big Three might have conceded to get that bailout money. Most say it's just a matter of when not if they get that money. Stocks up on the day on indications, at least from one of the Big Three, that while they'd love a bailout, they might not need it. Ford Motor Company indicating today that it could survive 2009 without a bailout. It could envision a merger among the Big Three, didn't say who, when or what or why. But that surprised a lot of folks. You're going go the government well, but you're saying, well, we're doing fine. And then to add to that, GE, a crucial Dow component, indicating that it's going to continue paying its dividend through next year. This is sort of a primo for stock holders, an extra Benny you get for holding GE stock. That conglomerate has been under incredible duress lately. Just by indicating it's going to continue paying that dividend, it was greeted favorably on the Street today.
To the next local dash for cash from states, President-elect Obama meeting with the nation's governors today, promising them that help is on the way.
PRESIDENT-ELECT BARACK OBAMA: (From videotape.) We're going to need action, and we're going to need action swiftly. That means passing an economic recovery plan that helps both Wall Street and Main Street. And this administration does not intend to delay in getting you the help that we need.
MR. CAVUTO: Two Republican governors today saying thanks but no thanks. Rick Perry of Texas coming up in a minute. First, to South Carolina Governor Mark Sanford.
Governor, you just are leery of this whole bailout trend. Explain.
GOV. SANFORD: Well, you know, the presupposition there is that economic security and, you know, a revival in terms of the economic prospects of this country rests in whatever comes out of Washington. And I think that nothing could be further from the truth.
I think that at the end of the day, the biggest thing that has to do with what comes next with regard to economic stimulus is that kid in a basement working on the product of tomorrow. And that goes to the heart of this bailout mentality that we're now facing as a country. Because if we go far enough down this road, we move to a political economy rather than a market-based economy where if you got the best lobbyist in Washington, whether you're a Big Three automotive company or somebody else, you can get some cash. And I don't think that's a road we want to go down. So I think there are a lot of us very, very concerned about the direction we're taking.
MR. CAVUTO: I'm sorry, we're tight for time, sir. Governor Arnold Schwarzenegger of California indicated he's looking at an $11.25 billion deficit, all but tipping his hand that he needs some money from Washington in its hand. What do you make of that?
GOV. SANFORD: Well, if you want to talk about, again, rewarding bad behavior with regard to economics, this is it. I mean, California grew by 95 percent over the last 10 years while even the federal government grew by 71 percent. So the rate of growth of California government was far higher than even the federal government's.
So what are we going to do? We're going to tax people around the rest of the country to bailout California. Mind you, this is the same state that just a couple of years ago issued long-term bonds to continue to run its operations. In other words, rather than dealing with reform or cutting back on spending, which is what a lot of other states have done, they've continued the spending trend.
So I think that there is, you know, a bit of distaste, if you want to call it that, from other governors, other states that have tried to hold the line on spending.
MR. CAVUTO: All right. Governor, thank you very much, sir. We appreciate it.