Return to Transcripts main page
CNN Live At Daybreak
President to Unveil Plan for Homeland Security Today
Aired July 16, 2002 - 07:02 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
PAULA ZAHN, CNN ANCHOR: "Up Front" this morning, President Bush speaks on the economy's strength, but again, worried investors send the market on a very wild ride, indeed. The president's speech Monday came only a week after he tried to reassure Wall Street with a speech on corporate responsibility.
For more now on the president's latest economic push, we are joined by John King live from the White House -- good morning, John.
JOHN KING, CNN SENIOR WHITE HOUSE CORRESPONDENT: Good morning to you, Paula. They insist here at the White House that no one speech by the president is aimed at fixing the turmoil we have seen on Wall Street in recent weeks, but it has been, as you noted, quite an adventure, watching the president yesterday deliver a speech in Birmingham, Alabama on the economy, when he traveled up to Wall Street a week ago, roller coaster days on Wall Street. The market dropping as the president speaks, as Bill just noted, down more than 400 points yesterday, at one point rallied back, ended the day only down about 45.
The White House hoping for some stability in the markets, again though, they say the president not trying to influence any specific days trading, but what the president's goal and they say his urgent mission is to try to convince the American people as they watch the turmoil in the markets, as they hear about WorldCom, potential bankruptcies in other big companies, is that the U.S. economy is fundamentally strong. The president saying yesterday productivity is up, consumer confidence remains strong, although some weakness of late. Mr. Bush's message designed to convince the American people to hang in there, keep spending, if you will.
And there is a political element to this as well. This is the midterm election year, and the one biggest element, both Democrats and Republicans agree, that will help the president or hurt the president when voters go to the poll this fall and decide whether the Democrats or the Republicans should run the Congress, is their faith in the economy.
So the president will keep speaking on this subject, although, as you wait to see what happens in the markets today, no remarks planned by the president on the economy today. Whether that helps you think about buying or selling is a mystery to me -- Paula.
ZAHN: Yes, and you've got people like Senator Biden out there saying maybe the president should give it a rest and stop making speeches for the next couple of days.
KING: Well during the Clinton...
ZAHN: Any validity to that criticism?
KING: There is some criticism of the president that he certainly should not speak specifically to the stock market, and he did not yesterday. Yesterday, he was speaking much more broadly about the U.S. economy.
In the Clinton administration, the practice was, do not discuss the stock market, especially any one or two companies or any one wave up or down. This administration has had a much more open policy, you might say, in discussing the markets. Some think that's a mistake. They simply think the president should not discuss what's going on on Wall Street. Sure, say the economy is strong, say that Washington will do more to help, but don't try to influence the markets on a minute-to-minute basis.
ZAHN: Today, of course, the president will be unveiling his plan for Homeland Security. What about the timing of this announcement?
KING: Well, the timing, most of all, designed to influence the debate in Congress. Some might say the president trying to steer attention away from the economy for a day, but Congress, of course, is considering the president's plan to have a new Department of Homeland Security. Some members of Congress, both Democrats and Republicans, tinkering with the plan, some don't like the president's plans to move certain agencies into this new department.
Overall, it appears the president will get pretty much what he wants, but he will have some key members of Congress here today. He will unveil a new 88-page report. No big headlines, nothing new in that report. It pulls together everything we have heard over the past several months. But the president, again, to try to make the case that in his view, it is urgent that the government combine all of the weapons, if you will, for the domestic war on terrorism under one roof in the federal government, largely designed to try to get Congress to move very quickly in the next week or two on that new Department of Homeland Security.
ZAHN: But, John, if you talk to the heads of state and local governments, they say there is one big headline. It's the cost of this. Who is going to pay for it? The cost assessed of, what, $100 billion a year. Is it clear what portion of that tab local and state governments will have to pick up?
KING: Most of it. Federal government will give money, most of that money in the short term going into things like police department, fire departments, first responders, if you will, emergency medical teams. But over the long run, state and local governments are going to have to pick up the tab here, guarding ports, increasing security at places like nuclear power plants. A lot of that will go to state and local governments. They are complaining about those costs and added in, the subject we were just talking about, with a slow economy, their tax revenues are down, and they are simply saying they cannot afford it all right now.
ZAHN: John King, thanks so much for the preview -- appreciate it.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.
