MSNBC "1600 Pennsylvania Avenue" - Transcript

Interview

MSNBC "1600 Pennsylvania Avenue" - Transcript

MSNBC "1600 PENNSYLVANIA AVENUE" INTERVIEW WITH SENATOR OLYMPIA SNOWE (R-ME) INTERVIEWER: DAVID SHUSTER

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MR. SHUSTER: The White House was certainly describing that can- do attitude for our next guest, Republican Senator Olympia Snowe. She was a key architect of the Senate bill that is now, of course, making its way through to passage.

First of all, Senator, on the news involving Judd Gregg, what do you make of it?

SEN. SNOWE: Well, obviously it is a surprise, but not for the reasons that Senator Gregg indicated, because we know he has strongly held views when it comes to fiscal policy. He's certainly been one of the major contributors in designing Republican budgets here in the United States Senate over the years in his capacity as ranking member of the Budget Committee. So I know he feels very strongly about these issues, and to his credit, that he recognized that, acknowledged it, and made what was obviously a very difficult decision.

MR. SHUSTER: Did you get any inkling over the past couple of days that this was coming? Was there any talk in any of these meetings? There were a lot of White House representatives on the Hill the past couple of days. Any sense that this was coming?

SEN. SNOWE: No, not at all. You know, I did happen to see Senator Gregg in Leader Reid's office yesterday just in passing. But there was no discussion, no speculation whatsoever, that this was about to happen.

MR. SHUSTER: What about the substance of Senator Gregg's argument that he simply did not like the stimulus plan, that he disagreed? The Republicans, some of your colleagues, have suggested it's too much tilted toward spending, not enough towards tax cuts.

SEN. SNOWE: Well, you know, I think that's obviously one of the fundamental issues concerning the stimulus package. The question is not whether it's spending or whether it's tax cuts; it's whether or not what is going to work. So I think that's the issue. And some spending is stimulus. Certainly unemployment and food stamps is the maximum stimulus that you can have for any provision, for that matter.

So some spending is important; improving infrastructure, roads and bridges, in energy development and technology. That's going to create jobs immediately in many instances. So some spending is stimulative, as are some tax cuts. Not all tax cuts are stimulative. So you have to have a combination to make it work.

MR. SHUSTER: Senator, you and Senator Gregg are essentially two people who have both been out on a limb. Senator Gregg has decided he doesn't like it out there. You're still out there. What's it going to be like talking to him? And what's been going through your mind as a lot of these sort of slings and arrows have been slung at you?

SEN. SNOWE: Well, you know, we always have our, you know, differences, but we manage to reconcile those differences, irrespective of which side of the position that we take on a given issue. And I respect Senator Gregg immensely. I served with him on the Budget Committee, as a matter of fact. So I understand his perspective and frame of reference.

But again, it's a different point of view. We have to make the process work. And more importantly is to have a stimulus package. And Republicans, Democrats and independents almost universally believe we should have a stimulus package. Economists of all political and philosophical persuasions believe that we do. So the question is the content and the composition.

I happen to think it strikes the right balance. It's not everything I would want. It's certainly not perfect. But the fact is, inaction is not an option at this point in time, and you have to contribute to the ultimate product. That's what we did as Republicans, the few of us who were part of that process, you know, to build the bipartisanship, and more importantly, the consensus that's so essential and critical to developing a solution to the great problem that this nation is facing.

MR. SHUSTER: Some of the House Republicans have been particularly critical of you and the others who came up with this deal, including John Boehner, who's the House minority leader. I want to play for you what he said and get your reaction. Here's Congressman Boehner earlier today.

HOUSE MINORITY LEADER JOHN BOEHNER (R-OH): (From videotape.) I think if this process continues to be controlled by the White House, we're opening the door to politicize the Census and to shift billions of dollars, tens of billions of dollars, around to states based on inaccurate data.

MR. SHUSTER: Now, two issues there. A lot of Republicans have complained that the Census, which should be done by the Commerce Department, is being shifted to the White House. But again, he's also making the argument that this is shifting a lot of money to the states, essentially based on faulty data. How do you respond?

SEN. SNOWE: Well, you know, obviously you have to look at the facts, and I have not looked at those facts in terms of the way that Representative Boehner has indicated. The point is, we have to make sure that these programs work. Shifting money to the states is important overall. I mean, that's why we have Medicaid assistance. That's why we have the stabilization fund, because 45 states are facing budget deficits, with a collective decline of more than $350 billion in revenues.

That's going to have a tremendous and pervasive impact on the overall health of our economy. It means the loss of jobs in the millions. So they'll either be drastically cutting their own programs or raising taxes in order to meet their constitutional requirement to balance the budget. So we have to assist in that process in making sure that we can stave off, you know, job losses to the degree that it's possible. Obviously they're still going to have to make some very difficult decisions with respect to their expenditures.

MR. SHUSTER: Well, finally, Senator, you've mentioned the key, of course, is whether this works. Clearly Judd Gregg felt very strongly that this will not work. How confident are you that this economic recovery plan will?

SEN. SNOWE: Well, you know what? I think that everybody agreed that we needed to do something. I certainly do think it'll have an impact. But it has to go hand in hand -- and I mentioned this last night; I mentioned this to the president and to the vice president as well and to Rahm Emanuel during the negotiations -- is that we have to get lending occurring among the financial institutions, bankers, and providing access to capital and credit to small businesses across this country.

You have to have the lending happening. It has to go hand in hand with fiscal stimulus. But fiscal stimulus will not stand on its own without these other parts happening, and most especially having credit activity begin. And that's what hasn't happened, and that is of deep concern to me. You can't have one without the other if we think we're going to jump-start this economy.

MR. SHUSTER: Senator Olympia Snowe of Maine, a power broker in all this, a Republican power broker. Senator, thanks for joining us. We appreciate it.

SEN. SNOWE: Thank you, David.

END.

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