Here is a transcript from Freep.com of the debates. I’m posting the selected portions of the first segment, cleaning up some of the transcription oddities, and the answers I would give (the correct ones). Still, it is rather lengthy, so it isn’t all going on the main page.
BARTIROMO: The economy is America’s greatest strength. In a recent poll by the Wall Street Journal and NBC News, two-thirds of the American people said that we are either in a recession or headed toward one. Do you agree with that? And, as president, what will you do to ensure economy vibrancy in this country?
THOMPSON: I think there is no reason to believe that we’re headed for a recession. We’re enjoying 22 quarters of successive economic growth that started 2001 and then further in 2003 with the tax cuts that we put in place. We’re enjoying low inflation. We’re enjoying low unemployment. The stock market seems to be doing pretty well.
I see no reason to believe we’re headed for an economic downturn.
As far as the economic prosperity of the future is concerned, I think it’s a different story. I think if you look at the short term, it’s rosy. I think if you look at a 10-year projection, it’s rosy.
But we are spending money we do not have. We are on a mandatory spending lockdown that is pushing us in a direction that is unsustainable. We’re spending the money of future generations, and those yet to be born. That has to do with our mandatory spending problem.
Everyone knows that we have to address that. And it’s the fundamental and foremost challenge, I think, facing our country economically.
Much as with global warming, consensus does not mean fact, and opinions are not reality. By definition of a recession as two consecutive quarters of negative growth, I’d have to say we’re not in one. So yes, I disagree with the two thirds of those polled. Secondly, as president it wouldn’t be my job to be the caretaker of the economy. What you’re implying is some level of management over what should be a laissaz-faire free market economy. Quite honestly, any move in that direction is a bad idea in my opinion.
BARTIROMO: Senator, you painted a very nice picture. The Dow and the S&P 500 today at new highs — tonight — record numbers. And, yet, two-thirds of the people surveyed said we are either in a recession or headed for one.
Why the angst?
THOMPSON: Well, I think there are pockets in the economy that, certainly, they’re having difficulty. I think they’re certainly — those in Michigan that are having difficulty. I think you always find that in a vibrant, dynamic economy.
I think that not enough has been done to tell what some call the greatest story never told, and that is that we are enjoying a period of growth right now and we should acknowledge what got us there and continue those same policies on into the future.
I have no idea why people in the most wealthy country in the world insist on seeing economic hardship forever just over the horizon. Maybe it is some sort of willful denial of reality in order to demonize republicans, or to gain support for social programs. Maybe for some inexplicable reason they still actually believe the mainstream media. Really, I have no clue
BARTIROMO: Governor Romney, here in Detroit, Michigan, alone, one in every 29 homes went into foreclosure in the first six months of the year. Whose job is it to fix this problem? The government or private enterprise?
ROMNEY: It’s everybody’s job. It’s inexcusable that Michigan is undergoing a one-state recession, that the rest of the country is growing and seeing low levels of unemployment, but Michigan is seeing ongoing, high levels of unemployment, almost twice the national rate. Industry is shrinking here, jobs are going away. This is just unacceptable. And, therefore, everyone’s going to have to come together to solve the problem.
And that means, from the president’s standpoint, the president’s going to have to stand up and say — you know what? — to the auto industry: The door’s always open. We’re ongoing to work with you and make sure that you have a listening ear and someone who will participate with labor and with management.
Number two, we’re going to make sure that we invest in technology and research. A lot of that relate into energy, fuels, automotive research like material sites to help boost Michigan once again.
We’re going to have to fix the schools, as Newt Gingrich pointed out. 22 percent of Detroit kids don’t — excuse me, 22 percent graduate from high school. That’s unacceptable.
We’re also going to have to do a better job keeping our taxes down. Jennifer Granholm has made a big mistake by raising taxes. I was, frankly, a little nervous to — about being here tonight. I figured she was going to pot a tax on the debate before we got finished.
(LAUGHTER)
ROMNEY: So…
(APPLAUSE)
And we’re going to have to go to work, as well, to make sure that there’s a level playing field around the world, as we compete, to make sure that American goods are pushing into other markets, but goods coming overseas aren’t getting an advantage, as they do now, with embedded taxes.
There’s a lot we can do to strengthen Michigan. And in some respects, what Michigan is seeing, the entire nation is going to see, unless we take action now to get Michigan stronger.
Whose job is it to fix the problem of houses going into forclosure? Is this a serious question? You’re really serious about this? Okay… well, I hear rumors that once upon a time people didn’t buy beyond their means, that they actually considered terms to agreements, and that they didn’t let desire or a sense of deservedness overrule financial sanity. So to answer your question, it isn’t up to the government or private industry to fix this problem, this problem belongs to individuals.
Matthews:Congressman Paul, I think you have questions and concerns about the bonanza in the hedge fund industry. Do you?
PAUL: Yes. I think this is not a consequence of free markets. What’s happening is, there’s transfer of wealth from the poor and the middle class to the wealthy. This comes about because of the monetary system that we have. When you inflate a currency or destroy a currency, the middle class gets wiped out.
So the people who get to use the money first which is created by the Federal Reserve system benefit. So the money gravitates to the banks and to Wall Street.
That’s why you have more billionaires than ever before. Today, this country is in the middle of a recession for a lot of people. Michigan knows about it. Poor people know about it. The middle class knows about it. Wall Street doesn’t know about it. Washington, D.C., doesn’t know about it.
But it’s because of the monetary system and the excessive spending. As long as we live beyond our means we are destined to live beneath our means.
And we have lived beyond our means because we are financing a foreign policy that is so extravagant and beyond what we can control, as well as the spending here at home.
And we’re depending on the creation of money out of thin air, which is nothing more than debasement of the currency. It’s counterfeit. And it is a natural, predictable consequence that you’re going to have people benefit from it and other people suffer.
So, if you want a healthy economy, you have to study monetary theory and figure out why it is that we’re suffering. And everybody doesn’t suffer equally, or this wouldn’t be so bad.
It’s always the poor people — those who are on retired incomes — that suffer the most. But the politicians and those who get to use the money first, like the military industrial complex, they make a lot of money and they benefit from it.
This isn’t an answer, just a note. I was tempted to remove what Congressman Paul said and replace it with <insert democrat talking points>, but I figure the more people that see how completely bonkers this guy is, the better.
Now for the answer. It isn’t the president’s job to set monetary policy. That falls to the legislature and to the Fed.
See how easy that was Ron? No class warfare involved!
MATTHEWS: Thank you, Congressman.
(APPLAUSE)
BARTIROMO: Senator McCain, what about that? How are you going to win the middle class back?
Wall Street executives are making millions of dollars every year, paying tax rates of 15 percent, while the average guy out there is paying 30 percent in taxes.
Is this system fair?
MCCAIN: Everybody is paying taxes and wealth creates wealth. And the fact is that I would commend to your reading, Ron, “Wealth of Nations,” because that’s what this is all about. A vibrant economy creates wealth. People pay taxes. Revenues are at an all time high.
What’s the problem? It’s not just here in Michigan. It’s in the heartland of America. We’re losing industrial jobs and we’re not taking care of those who are left behind.
Every town hall meeting that I have people say, “I don’t know if I’m going to have health insurance or now.” We’re going to have to bring costs under control of health care if we’re going to assure people that they’re going to have retirement and they’re going to be able to have the much needed medical care that they are — need, as
they grow older. The fact is that Social Security is going broke.
The fact is that Medicare is going broke. That’s a little straight talk and we’ve got to fix it.
And we have to get spending under control and we Republicans who came to power in 1994 to change government, government changed us.
And unless we get spending under control and eliminate all this waste and pork-barrel spending, the latest is this public works, $21 billion worth of pork barrel projects in public works, which the president should veto.
Another one he should veto is the SCHIP program, which he should say, “Take the ‘C’ out of, because now it’s for everybody, like every other entitlement program.” And, by the way, a dollar a pack increase for cigarettes? So we want to take care of children’s health and we want everybody to smoke? I don’t get it.
And we’ve got to get wasteful spending under control.
(APPLAUSE)
BARTIROMO: So you’re saying, Senator — so you’re saying the system is fair?
My question was: Is the system fair?
MCCAIN: Sure, it’s fair.
Should we — because the bulk of the taxes are paid by wealthy people. Should we reform our tax code, which is completely broken, which no one understands, no living American understands? Absolutely, we should fix our tax code.
And we should fix it immediately. And we should have Congress either vote up or down on a freer, fairer, simpler tax code.
(APPLAUSE)
And I believe that Americans deserve that.
No, the system isn’t fair. And whats more, its unfair across the board. Government takes far too much money from taxpayers. It’s also not the president’s job to fix the system. I lay this one directly at the feet of congress.
MATTHEWS: Great transition. Governor Huckabee, tell us about your fair tax. You’re going to get rid of the IRS. You’re going to have a, basically, consumer tax.
Won’t that discourage spending?
The American economy seems to always be driven by people buying things, maybe, they can’t even afford. If you put a tax on spending, as opposed to income, won’t that encourage people to hoard their money, rather than spend it…
HUCKABEE: Now, Chris…
MATTHEWS: … and hurt the economy?
HUCKABEE: You know Americans better than that. Nothing’s going to discourage them from spending money.
(LAUGHTER)
Just go to any shopping center on Saturday. You’ll find that people aren’t having to be begged to go spend money.
No, the fair tax does something that is absolutely phenomenal for the economy: It untaxes productivity.
It untaxes those things which we export. It means that for the first time in a long time in this country, instead of exporting our jobs, we’ll actually be exporting products that we make in America, and we’ll be able to make sure that there’s a level playing field.
It ends the underground economy that right now makes it so that folks like us end up paying taxes, but drug dealers don’t; illegalsdon’t; prostitutes and pimps, they don’t. But we do.
You know, a lot of people are going to be watching this debate, they’re going to hear Republicans on this stage talk about how great the economy is. And, frankly, when they hear that they’re going to probably reach for the dial.
I want to make sure people understand that for many people on this stage the economy’s doing terrifically well, but for a lot of Americans it’s not doing so well. The people who handle the bags and make the beds at our hotels and serve the food, many of them are having to work two jobs.
And that’s barely paying the rent. And you know what else? They don’t think that they can afford for their kids to go to college. They’re pretty sure they’re not going to be able to afford health insurance.
And so I hope, in the course of this, we can talk about how a fair tax really lifts up everybody, including those at the bottom of the economic spectrum and untaxes the poor people in our culture.
I personally support the fair tax as a small step in the right direction, but once again, it isn’t the president’s job to be legislator in chief. It also isn’t the president’s, or government’s job to encourage or discourage behavior in regards to an individual’s spending habits.
Senator Brownback, are you prepared to say, categorically, that under a Brownback administration, there will not be a tax increase?
BROWNBACK: Yes.
And I’d like to use the rest of my answer — and time — to talk about some other things.
(LAUGHTER)
Because, clearly, the last thing we need to do is raise taxes in this country. Currently, the country now, the average citizen works until the first part, the middle of May, just to pay their taxes. We’re taxed to the max.
And I think it’s not enough just to say I’m not going to raise taxes. What should we go to differently? Because the current tax code really is an abomination. People don’t understand it, it’s manipulative, it’s Washington trying to direct people’s lives.
So I put forward a proposal of an optional flat tax. And putting that on the table, saying, “OK, you can pick this — if you want to stay in the code, go ahead, God bless you. But here’s an optional flat tax.”
16 countries around the world have gone to the flat tax. Nobody has gone back away from it, because it creates growth, it creates growth in the economy, and it increases revenue for the government.
And we also — we have to get spending under control. Here you’ve got to change the system. And I’ve been around it long enough to see that Republicans or Democrats in control, the system is built to spend.
Our constituents come in all the time to my office and they say, “I’m a conservative, but could we have this bridge? How about this hospital?” They never say, “We’ve got too much federal money. Would you please cut it?” Nobody has ever told me that.
So I think we need to take that BRAC military process for base-closing, apply it to the rest of government.
So you have an annual process for culling federal spending, that requires a vote of Congress.
I would be unwilling to sign into law a tax increase, and it would take an override by congress.
BARTIROMO: So name one program you would cut.
BROWNBACK: The advanced technology program would be a good one to start with. It goes toward high-end spending, corporate welfare programs. There’s an abundance of those that we’ve gone at. I worked with Senator McCain; a number of us did.
But cutting spending is tough to do because you’ve always got somebody pushing back and seeking more.
That’s why you’ve got to change the system, so that it regularly requires a vote of Congress on things to cut. That’s what will actually reduce spending.
Only one? Once again I’m going to say that you should look to congress for answers on this. Personally I’d be delighted to see all social programs cut. I don’t believe that the federal government should be a charity… a charity with forced donations. I’d even take opting out of programs (and keeping the taxes that would otherwise go into such programs), as a small step in the right direction.
HARWOOD: Senator Thompson, in the kind of dynamic economy that you mentioned lots of new jobs are created, but a lot of jobs are lost as well. The Bureau of Labor Statistic says three-fourths of manufacturing workers who lose their jobs and get new ones see their incomes go down.
How would you explain to those people that their shrinking American dream is the price of progress, and what would you do to help them?
THOMPSON: Well, in a dynamic economy there are jobs lost and there are jobs gained, and so far there have been more jobs gained. And to put up barriers and say that so-and-so cannot lose a job would be the wrong thing to do in a free market economy. It’s been so well for us. It’s made us the most prosperous nation in the history of the world.
But there’s some things that you can recognize about the manufacturing industry and how important it is to us and how we can do something for the industry to help them hire more people and keep the wheels rolling.
Government policies, in terms of taxing and spending and regulation — the manufacturing industry is, in large part, an international industry, nowadays, which means prices are set internationally.
Manufacturers cannot do much about that, but they get hit with costs, domestically. We can do a lot about their costs, in terms of taxes and regulation.
We have the second highest corporate tax penalty in the world. We need to do better than that. We need to open up foreign markets. A lot of them are closing their markets to our people. Our people are not afraid to compete, if the markets are open and the currency’s not devalued.
It is the job of neither the president nor the government at large to manage employment or wages. This will probably upset a certain blog owner, but I would be happy to see tarriffs imposed to offset unfair and predatory business practices from abroad.
MATTHEWS: Congressman?
HUNTER: Yes, let me answer that. You know, Senator Thompson, there is one place where the federal government has a role in manufacturing. And that’s ensuring that everybody’s playing by the rules.
Now, when Communist China devalues their currency by 40 percent, they undercut American products around the world. They undercut them so low that we can’t even pay for the cost of materials and meet their prices.
Now, that has put 1.8 million working Americans out of work. And that job, the job of enforcing those rules, is the president’s job. That’s what I intend to do.
MATTHEWS: Let me ask Senator McCain, you know, when a lot of us grew up, in the late ’50s and early ’60s, a young guy could come out of high school, marry his girlfriend from school, get a job at a big industrial plant making planes or making subways, and provide for a family with a middle-class income and his spouse wouldn’t have to work.
Will we ever go back to that world again?
MCCAIN: I’d like to say yes, Chris, but I think we are in the midst of a revolution that we haven’t seen since the industrial revolution. A lot of people don’t know that 50,000 Americans now make their living off eBay.
We know that people have been left behind. We know that the tax code is eminently unfair. We know that one of the big problems right here in Detroit is that when they — before they turn a wrench on a new care it’s a $1,700 legacy cost for health care for their retired employees. For Toyota, it’s $200.
We’re going to have to fix health care. We’re going to have to fix Social Security. And this line about it’s just discretionary spending that’s a problem — the problem is, my friend, the American people no longer have trust and confidence in us that we will fix anything. As president, I’ll fix them.
And the point is, that we need to have job retraining programs. We need to go to the community colleges. We even need, if you’re a senior laid-off worker, who gets another job, to make up in compensation for the amount of money that’s the difference between the job that they lost.
We have to fix these programs.
But, first, we’ve got to go to the American people with clean hands. We’ve got to tell them, we’ve stopped spending $3 million to study the DNA of bears in Montana. I don’t know if that’s a paternity issue or a criminal issue.
(LAUGHTER)
MCCAIN: I’ve got — we’ve got to tell him that we will not spend $2 billion on an aircraft tanker which I was able to stop and save the taxpayers $2 billion because of this incredible, extravagant waste in defense spending today, which is the biggest part of our budget.
None of my business. How families choose to structure themselves isn’t any of government’s business. Regarding the possiblity, sure. Get on your congressmen and senators to cut taxes and it could be possible for a lot more families.
(COMMERCIAL BREAK)
Ugh… no more! Basically my point with this was that currently the powers of the presidency go far beyond what they’re intended to be. The president isn’t supposed to be the chief legislator, the country’s accountant, or the authority figure telling us that cigarettes are bad for us. The fact that none of the republican candidates even brought up the question of what falls under the powers and responsibilities of the president makes the nomination of any of them a rather dubious proposal. Just once I’d have liked to have heard “I’d be happy to give my opinion, but as a matter of policy I don’t believe I have the authority under article II of the constitution to push my personal opinion into the lawbooks”.
Still, I’d take all most some of them over any of the democrat candidates.