GOV. PAWLENTY: we appreciate every job, but the idea that government grow it is economy when all they do is extract money from taxpayers, put it back on a political agenda is not growth. that's transferring money.
GREGORY: would the economy have been in worse shape without the stimulus?
GOV. PAWLENTY: well, they said if they didn't pass the stimulus bill unemployment could go as high as 8%. it went to 10%. they promised four million jobs created or saved. you know the math is fuzzy. everybody agrees. they have failed on that objective as well. the economy and government is going to need to focus on growing the private sector. what the stimulus bill mostly did is sustain government.
GREGORY: but you don't disagree with economists including an economist who advised the mccain campaign which you vouched for and could have been on the ticket of, indeed, there is somewhere around two million jobs that have been created by the stimulus. it could have been worse without it.
GOV. PAWLENTY: david, i don't disagree that we need to stimulate and grow the economy, but the way to do it is take the tax code, extend bush tax cuts, cut the payroll tax, encourage growth in the economy by reducing capital gains burdens. don't put more burden on the economy like this grotesque health care bill. don't put on cap and trade legislation. the stimulus bill as a concept, stimulating the economy is a good idea, but they did it the wrong way. they should have stimulated private sector growth.
GREGORY: we have a huge deficit, $1.4 trillion. you have talked about spending caps. as you talk about dealing with a deficit let's look at your record in minnesota balancing the budget. this is what your hometown paper said in minneapolis about your efforts to deal with the budget. governor pawlenty's budget is bad news for low income minnesota yans who rely on state health care and mayors struggling to balance the budget but good news for corporations paying high taxes. is that your vision for america's social service cuts but lower taxes on business?