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CNN Live Saturday

Republicans Worried Sliding Economy Could Cost Votes

Aired July 20, 2002 - 12:09   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.
FREDRICKA WHITFIELD, CNN ANCHOR: Stock prices have fallen so far so fast in the past few months, it's being called the summer of the bear. At the White House, the worry is the stock slide, and it could cost Republicans a lot of votes in the fall. CNN's Kelly Wallace is in Washington with the latest from there. Hi there, Kelly.

KELLY WALLACE, CNN WHITE HOUSE CORRESPONDENT: Hi there, Fredricka. That is the worry, because even though the president's approval rating remains sky high, the sense is is that if investor confidence keeps declining and the markets keep sliding, the party in power, the party controlling the White House, will take the blame in November. And so that is why we saw the president throw down the gauntlet today, using his radio address to call on lawmakers to send him a corporate responsibility bill to his desk by August. Mr. Bush hoping to prevent Democrats from having an issue to use against Republicans in November.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Some in Congress have predicted that it will take two months for the House and Senate to send a bill to my desk. There's no good reason for the legislative process to take that long. I call again on Congress to pass a bill before the August recess. It's time to act decisively, to bring a new era of integrity to American business.

(END VIDEO CLIP)

WALLACE: And I'm told another thing we will see the president continuing to give speeches to try to boost consumer confidence. That's what he did last week in Birmingham, Alabama when the president said the fundamentals of the American economy are strong.

Privately, though, aides say if consumer confidence continues to sag, Republicans could be hurt in the congressional elections, but publicly one of the top Republican leaders in the House was sounding very optimistic. Congressman Tom DeLay telling CNN "SATURDAY EDITION" he believes Republicans already have a lock when it comes to controlling the House of Representatives.

(BEGIN VIDEO CLIP)

REP. TOM DELAY (R-TX), MAJORITY WHIP: Every incumbent that is our vulnerable incumbents are leading double digits in their internal polls. We feel very confident that we already have the majority in the bag and we're working hard to grow our majority. We think we're going to pick up seats, not very many, but we can pick up anywhere from five to 10 seats.

(END VIDEO CLIP)

WALLACE: And no surprise, Democrats see things differently. They believe the economy and also the question of Republican ties to big business are winning issues that they will use against Republicans in November. So Fredricka, fair to say let the campaigning begin. Lawmakers, the president expected to be in heavy campaign mode when everyone leaves town in August -- Fredricka.

WHITFIELD: All right. Thanks very much, Kelly Wallace in Washington.

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