Fox News "Fox & Friends"- Transcript
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MS. CARLSON: Senate Republicans have taken a stand against the big three automakers, but they aren't the only ones opposed to the bailout. Two governors say they don't want that bailout either.
MR. KILMEADE: Rick Perry, he's governor of Texas; Mark Sanford isn't -- and he's the governor of South Carolina. Both join us today. They're friends and alike in thought this way.
First off, Governor, here on the couch -- great to see you.
GOV. PERRY: Good to be here.
MR. KILMEADE: And last night, about 9:30 Eastern Time, we found out that there will not be a bailout coming from this Senate. They only had 35 votes -- 35 Republican votes for it.
So you're happy that the big three are not going to be bailed out.
GOV. PERRY: Yeah. We've been sounding the alarm, if you will, on this bailout for a long time -- since the first one. The 700 billion (dollars) wasn't right. When you start putting debt upon debt and telling our kids that, "Hey, this is the right thing to do", it's not.
It's pretty simple: They ought to quit spending, cut taxes and be responsible with their programs. The idea that you're going to pitch all of this money on top of an already debt-laden country is just irresponsible public policy.
MS. CARLSON: The two of you, as governors, wrote an op-ed piece together -- I believe it was in The Wall Street Journal.
GOV. PERRY: That's correct.
MS. CARLSON: And you basically said that General Motors and the like should file for bankruptcy.
Governor Sanford, we're just hearing now this morning that General Motors has, in fact, hired bankruptcy counsel -- your thoughts?
GOV. SANFORD: Yeah, I mean, everybody -- whether it's Rick or I or I think scores of folks across America -- want those big three automotive companies ultimately to succeed, because we do think that domestic manufacturing is important in America.
But the question is how do you get more quickly to the point wherein on a long-term basis, they're going to be viable in the global competition of which they're apart? And a lot of folks have looked at this issue of bankruptcy, Chapter 11, and the scores of different companies that have actually been through the bankruptcy process here in America. And at the end of the day, more often than not, they've come out again stronger for it, because they can make choices and make changes that they couldn't make outside of Chapter 11.
MR. KILMEADE: Now, Governor, it looks like what stopped everything last night was labor -- UAW and the Republicans and the Democrats were not able to come together on a new deal.
Meanwhile, straight ahead, we're going to ask the governors to stay aboard.
MR. KILMEADE: The bailout's not going to happen at least at this hour -- 52-35 last night. You probably went to bed or doing other stuff. You found out, if you did, that Republicans have not gotten onboard so they only had 52 votes for this; therefore they didn't get the 60; therefore there's going to be no bailout for GM, Ford and Chrysler.
Joining us to talk more about this -- or rejoining us -- Texas Governor Rick Perry, right on our couch; South Carolina Governor Mark Sanford.
Mark, you were talking last time, so we're going to start with the governor from Texas.
It really came down to labor. That's what happened. UAW, Corker and Dodd in a room and they had no deal.
GOV. PERRY: Yeah. And I think when you look at the structure of where the money is from the standpoint of going forward in the automobile manufacturing industry, those labor union contracts are what are really onerous.
That's what I think a lot of Americans are concerned about is that -- and it's why, I will tell you, that I don't have a problem with them going back into a Chapter 11 restructuring process and looking at those labor union contracts and trying to get that worked out where it's not just this burden that a company cannot maintain through the future.
MS. CARLSON: Governor Sanford, one of the things that I've been discussing this week is the fact that Congress gave $700 billion to the banks and they didn't have to come up with any plan. And now you're talking about $15 billion, which is still a heck of a lot of money, but at least the carmakers had to come up with some sort of a plan. And then there's breaking news this morning that Bank of America got 25 million (dollars) of that first bailout. They're cutting 35,000 jobs!
So is there an answer in any of this?
GOV. SANFORD: As Rick was pointing out earlier, the answer certainly doesn't lie in borrowing a bunch of money to cut a bunch of checks for money you didn't have in Washington, D.C. and in that process, stack debt on top of debt.
I think we've got to look much more holistically at the whole idea of economic stimulus. It goes to competitiveness issues like car check. It goes to what's our practice on trade; it goes to what's our practice on taxes. It's a bunch of different things well beyond simply money coming out of Washington, D.C.
MR. KILMEADE: Is this about southern states with foreign car manufacturers, as opposed to northern states with domestic manufacturers, Governor? Because you have Senator Shelby -- he's got a whole bunch of foreign companies here and he's dead set against this. Are they just looking out for their own?
GOV. PERRY: Well, I think there is something to the states that are right-to-work states that manufacture -- car manufacture. We've got a big GM plant in Arlington that are making the hybrids there and I think they're going to be very healthy.
Part of this is just restructuring for the future and making good decisions. Obviously, when Toyota came into San Antonio, Texas, one of the reasons they came were we were a right-to-work state. I got an idea that in the Carolinas that Mercedes Benz is over there because they're a right-to-work state and they're not going to have those onerous union contracts.
So it's a big issue and one that I think is coming to a head here -- as it rightfully should!
MS. CARLSON: But -- as I was going to say "president" -- Governor Sanford, what should the president do now?
GOV. SANFORD: What he should do is begin with, I think, leveling with the American public and recognizing the fact and just laying it out that look, we grew debt as a country three times GDP over the last 15 years. And we have over-levered as, in some cases, individuals, businesses and most certainly as governments. And we're going to go through a deleveraging process and it's going to be very painful.
But rather than sticking a bunch of band aides over problems that will grow worse and fester with, you know, with one bailout after another after another after another, we've got to look at some of those core issues of competitiveness.
I think that that's where the conversation starts.
MS. CARLSON: All right.
Both of you governors -- not presidents yet -- Rick Perry, Mark Sanford -- Republican governors of South Carolina and Texas -- thanks so much for joining us.
GOV. PERRY: You bet, Gretchen. Thank you.