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Bush Arrives at Forum; Interview with Ron Brownstein

Aired August 13, 2002 - 10:01   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

DARYN KAGAN, CNN ANCHOR: First up this hour on CNN, an equation of politics, perspectives, and put it all together. President Bush is hosting an economic forum today.
Our White House correspondent, Suzanne Malveaux, is covering the gathering. It is at Baylor University in Waco, Texas, and it has a very interesting invitee list -- Suzanne, good morning.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Good morning, Daryn. Well, the president arrived here about a half hour ago at Baylor University. This is about 30 miles east of his Crawford ranch.

Now, this forum is really aimed at allowing the president and the administration to really show that they are engaged with the American people's frustrations, their concerns over the volatile stock market as well as the sluggish economy. The president is going to be talking about his economic agenda. We are told both about the strength, as well as the negatives. There are going to be more than 240 participants. We are talking about the president, the vice president, eight cabinet members, and really a who's who of CEOs of top corporations in this country. But we are also told as well there will be farmers, there will be truckers and housewives who will participate in this as well.

The president is going to be attending four of eight sessions. We expect they will be getting underway very shortly. Those sessions, first of all, small investors and retirement security is the first one. Secondly, one on recovery and job creation. The third on corporate responsibility, and a fourth on health care security.

Now, Daryn, we do have a little bit of news for you. That is at the plenary session, the president is going to be making an announcement. He says that he is rejecting $5.1 billion spending that Congress has already approved. This is part of a supplemental bill that he signed August 2 for Homeland Security and Pentagon defense spending, but the administration saying that he is rejecting this, first of all, because they say the government already has the funds. The Office of Management and Budget announcing today there is some $14 billion that hasn't been spent.

The second point, they say that the fiscal 2002 will be over in about three months or so, and finally they make the point that there is a huge deficit -- projected deficit here of $165 billion, that Congress really has to reign in the spending.

And so this is all a part of the president's effort, the administration's effort, to show that, Yes, we are doing things, we are trying to strengthen the economy, and turn things around -- Daryn.

KAGAN: Suzanne, just want to mention for our viewers, of course, that President Bush has already arrived, and as you mentioned, he will attending about half the sessions, four of eight. We expect to be hearing from the president in a bit, and we will carry those comments live.

Want to get back to you about the topic of about who is there and who is not there. I understand there are very few New Yorkers, very few Wall Street executives, and basically no one from the oil, gas or energy industry. These are all kind of touchy points for the administration, these are not things they want to be associated with as they try to associate themselves with an economic turnaround.

MALVEAUX: Well, certainly, a very good point. I mean, it was really a very touchy subject, who actually gets on this invite list. The administration is saying we did not look at party affiliation, we didn't look at what people are contributing when we actually made up this list, but there are not too many people that are against the Bush economic policy that are going to be speaking. Most of them pro-Bush economic policy, and as you may have heard over the last couple of days, Democratic lawmakers certainly making a big deal over that invite list. They were not asked to come to the forum. They wanted to have what they called an economic summit in January. They were rejected. They say this is all a public relations show because you take a look at participants, 240 of them, many of them big time Republican donors. They say this is all about promoting Republicans for the midterm congressional elections. The Bush administration saying, well, we know of at least 43 big time Democratic contributors who are here as well, but we're not looking at that. We are just moving ahead. But we are probably not going to hear a lot of criticism of the Bush economic policy, at least in this forum.

KAGAN: You will be tracking it, Suzanne Malveaux, in Waco, Texas at Baylor University. Thank you so much, and once again, when the president speaks, we will carry those comments live here on CNN -- Leon.

LEON HARRIS, CNN ANCHOR: Let's talk some more right now about how much of this, what is happening in Waco is all about politics, or whether it is actually about policy and making something happen. Joining us this morning, Ron Brownstein with the "L.A. Times." He is with us with his insight this morning of what's happening in Texas -- good to see you, Ron, from Washington today.

RON BROWNSTEIN, "L.A. TIMES": Good morning, Leon.

HARRIS: Let me ask you about that. Do the Democrats there have a good point to make, considering the fact that they really -- they were not invited, and there is almost no criticism on the agenda here at all?

BROWNSTEIN: Well, yes and no. I mean, I think that obviously, when any White House organizes a forum like this, it is going to be tilted toward their own supporters. Kind of economists who are there, people like George Gilder and Martin Feldstein, or people associated with Ronald Reagan and supply set (ph) economics, not Alan Blinder or someone who was on the Clinton team.

On the other hand, I think the premise of the criticism is somewhat mistaken. I mean, there really is no evidence that the Bush administration is looking for a debate here, or for a new direction. They pretty much know what they want to do about the economy. They have been very consistent from the beginning. When circumstances change, President Bush really adopts them into a new rational for what he wanted to do in the first place, and in this case, I think that is going to be the case again. He has a very clear idea. He wants to continue reducing taxes, he wants trade promotion authority, which he has. He wants to reduce regulation, and there really is no evidence that he is looking for a different direction, so I think the Democratic criticism that that is not being provided to him is somewhat beside the point.

HARRIS: Well, let me ask you about this, because it seems like there could be a chance for a couple of potholes to come up later on this week. You know, tomorrow is supposed to be the day that all these CEOs across the country are supposed to be signing off and verifying with their own names the reports put out by their companies as well as Alan Greenspan, he is supposed to be meeting with the Federal Reserve today to talk about whether or not there should be an interest rate cut. If either of the two pictures painted by those other two different events paint a totally different picture than what we are hearing coming out of here in Waco, doesn't that seem to pose a problem for the administration?

BROWNSTEIN: Yes, I think so. My rule of thumb, when it comes to presidential elections, especially, is that reality counts. Reality counts more than anything else, and the president can paint any portrait he wants of the economy today, but ultimately voters are going to assess it based on their own experience, and one of the problems the White House has had in the last few months is that optimism about the economy and the state of the country overall has cratered along with the Dow. I mean, you have a majority of people now saying they think the country is in recession. So really whatever he says, I think your point is right, that ultimately the proof will be in what people see around them. In the markets, in these corporate certifications, and in their overall sense of hiring and the strength of the economy in their local neighborhoods.

HARRIS: All right. Speaking of reality, going into the campaign and whatnot, the first months of the administration taking over, the reality was that Dick Cheney was going to be the biggest asset this administration had because of his experience as a CEO. Now Democrats are trying to make some hay with that particular issue, since the Halliburton, with which Mr. Cheney was affiliated, is having some problems right now. What kind of a role does or can Mr. Cheney play, with this kind of -- this talk now about the economy that President Bush is engaged in?

BROWNSTEIN: It is remarkable to see him out in public here today. Look, he is an extraordinarily influential player behind the scenes, but his public usefulness has been reduced by the questions about Halliburton, and also, to some extent, about the energy task force that he headed last year. The risk for the administration, I think, politically, is not so much that people are going to see them as dishonest. The public is very resistant to that judgment about Bush. I think they have a very strong initial sense that this is someone they can trust. On the other hand, the polls show there is more vulnerability on the question of do they think they are in touch with what ordinary people are going through, which is part of what is going on here today to show that -- to try to make the case that they are, and also whether they are too close to corporate America. And in that sense, Cheney's background, which had seemed like an asset, becomes a bit of a liability, as does the connections of some of the other people in the cabinet.

HARRIS: So he may continue being the invisible man. All right. We shall see. Ron Brownstein, thank you very much. Good to see you again.

BROWNSTEIN: Thank you.

HARRIS: Take care.

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