Return to Transcripts main page

American Morning

Bush May Need New People on Economic Staff

Aired July 23, 2002 - 08:47   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.
BILL HEMMER, CNN ANCHOR: It was about yesterday morning when President Bush again talked briefly about the economy. He said he does not give advice on which stocks to buy, and at the same time, he tried to reassure Americans that the U.S. economy right now is in good shape.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I believe that values are improving. I know the economics. The platform for growth is in good shape. Inflation is low, monetary policy is sound, fiscal policy is sound, productivity is up, orders for durable goods are up.

(END VIDEO CLIP)

HEMMER: Sounds like the kind of thing economists like to hear, but the question now, how do we measure the political stock of the president and what Washington can or cannot do about the current economic picture.

Bill Schneider, our senior political analyst, live today from Washington -- good to see you again, Bill. Good morning to you.

WILLIAM SCHNEIDER, CNN SENIOR POLITICAL ANALYST: Good morning, Bill.

HEMMER: I said the economy is relatively on firm ground still. The stock market is absolutely lousy as we have seen day after day. What can the White House do, and specifically the president, in terms of making sure that one does not cross into the other, and bleed into it effectively and hurt both?

SCHNEIDER: He has got to convince voters that he has a plan, something that will restore investor confidence. I don't think people are worried that President Bush is corrupt, but they may be worried that he is clueless, that he doesn't know what do, which is what they worried about with his father.

I think he may have to shake up his economic team, which doesn't have the same stature as his national security team. Take a look.

The national security team includes Dick Cheney, Colin Powell, Condoleezza Rice, Don Rumsfeld, that is a lot of knowledge and front line experience. Now, look at the economic team. Paul O'Neill, Larry Lindsay, Don Evans, Glen Hubbard. It is really not the same caliber. Bush needs a spokesman who can reassure the country and Wall Street that the administration knows what it is doing financially. In other words, they need a Don Rumsfeld on the economy.

HEMMER: OK. Well, listen, let's talk about corporate responsibility then. Many people are saying, well, if you want to reverse course right now, and reinstill that investor confidence across the country, pass the measure in the House and the Senate, have you been able to gauge, Bill, as to whether or not that will truly have an impact if it is signed into law?

SCHNEIDER: Well, it very well might, and I think the smartest thing the Republicans can do right now is to join with the Democrats. The Democrats have much more credibility on the issue of corporate responsibility, which is why, I think, that Republicans might -- they are seriously considering saying, OK, we'll just support the bill that was passed by the Democrats in the Senate. In fact, they're talking about making it even tougher. There are times in politics, Bill, when the smartest thing to do is to say, Me too. Democrats did that on the war, and Republicans might well do that on the issue of corporate responsibility.

HEMMER: Well, we are also seeing some level of politics seep its way into this. I want to take you back about a month ago. Here is Al Gore on the stump on the U.S. economy.

(BEGIN VIDEO CLIP)

AL GORE, FORMER VICE PRESIDENT OF THE UNITED STATES: They ought to wake up and realize that the Bush-Cheney economic policy is a total catastrophe for America. They ought to tear it up and start all over again.

(END VIDEO CLIP)

HEMMER: That was at the end of June, Bill. Curious to know, is talk like this going to make any impact right now, or is this jumping off the ledge too soon?

SCHNEIDER: Well, what the Democrats are trying to say is, Start over. You heard what Al Gore just said a minute ago. Now, what could that possibly mean? Could it mean repeal the tax cut? Well, that's the Democrats' secret longing, it is the policy they dare not speak its name. What Democrats like to say is we have to return to a policy of fiscal discipline, just like we had under president Clinton. But what does fiscal discipline mean? Does it mean cutting spending? On what? The war? They don't want to say that. Repeal the tax cut? Well, that gets them into big trouble. So there is a lot of coded language going on here.

HEMMER: Bill, back to one of your points you made here. Only have about ten seconds left for this. If there is going to be a spokesperson, a lot of people say Robert Rubin was quite effective during the Clinton years, is there anyone at the White House or in Washington that has even been talked about right now in terms of being the mouthpiece for the administration when it comes to the economy?

SCHNEIDER: Not really, and that's the problem. He's going need someone new, someone who has the confidence of the markets. That would be a Bob Rubin figure. President Bush has simply expressed confidence in everybody he has on the team now. He may have to rethink that.

HEMMER: Bill, thanks. Bill Schneider, our senior political analyst, again, in D.C. on this. Thank you, pal. See you again soon, all right?

SCHNEIDER: Sure.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com