ROBERT SIEGEL, host:
And we now turn to the Republican race. One of the contenders in South Carolina, where there's a GOP primary on Saturday, is former Tennessee senator Fred Thompson. Welcome to the program, senator.
Mr. FRED THOMPSON (Former Tennessee Senator; Republican Presidential Candidate): Thank you very much. Good to be with you.
SIEGEL: Today, Fed Chairman Bernanke called for an economic stimulus package. John McCain says cut corporate taxes right away. What do you say?
Mr. THOMPSON: I think that we have to be mindful of where the economy is. We're headed in the wrong direction in some respects, like unemployment is now around 5 percent. That used to be considered almost full employment, but now, it certainly is headed in the wrong direction. I think the credit's tightening. It's being seen in the consumer credit market across the board - automobile loans, credit card rates, and things of that nature. So it…
SIEGEL: So is it time to act? Is it time to act then and to…
Mr. THOMPSON: It's reason to be concerned. I think that we have to be prepared to act. I think it would be good to have another indication from the Fed as to what they're going to do. I think probably they will cut interest rates again -probably is the thing to do - while being mindful of long-term inflation considerations. I think that the stimulus package depends on the contents of it. I think that a lot of times, it becomes a Christmas tree and becomes more of a pork-barrel operation than it does something that really affects the economy. I think, for example, you can do things like take the lower rate, 10 percent tax rate, rebate that for one year, maybe add to the child tax credit $500, take it to $1500. I think that would put money into people's hands in a short period of time. And…
SIEGEL: Senator Thompson…
Mr. THOMPSON: …(unintelligible) effect. But we have to be mindful that everything does not depend on the immediate short run. Let's not do anything that's going to make it more difficult for us long run.
SIEGEL: But it sounds to me, because you were quoted earlier in the day by the Associated Press, the reporter who's traveled with you who's there, saying that there is a case to be made for just not doing anything, leaving the economy alone. It sounds to me like during the day, you've become a little bit more bullish on a short-term stimulus package.
Mr. THOMPSON: No, I think there's a case to be made for that. That's why -that, you know, I'm riding on the bus here between Newberry, South Carolina and Madison, South Carolina. I would prefer to be in the White House, talking to all my economic advisers and making sure that I have all of the indicators on where was - where the country was mostly likely going. The economists that I talk to are divided on this subject.
SIEGEL: Do you think…
Mr. THOMPSON: Of course, a case can be made for not doing things, for example, in the housing market that would create a bigger bubble in the future. If these things were black and white issues and open and shut issues, we wouldn't be having discussions about them. They're not, they're complex. And I think we have to be very mindful of them and do the appropriate thing.
SIEGEL: But…
Mr. THOMPSON: But a case can be made for both sides.
SIEGEL: I want to tell you something that our colleague, Michele Norris, has been hearing reporting in South Carolina this week and talking to conservative Republicans down there. They say they like you, they agree with you on the issues, but they're disappointed with the way you've campaigned. You haven't made the sale with them. And they say you ought to be running for office, not walking is the line we heard.
Mr. THOMPSON: Yeah, well, that's clever. That's cute. That's a new one on me. I'm now talking to the people. I'm getting a bit of response, and we'll see on Saturday night.
SIEGEL: How important is Saturday night to you, by the way, in your campaign?
Mr. THOMPSON: Oh, it's very important. Yeah, it's important that I do well here. No question about it. Three different people have won three major races so far in this primary season. And each needed to do that in order to continue on. And this is very, very important to me. And so we will see. According to the polls, I'm moving up, others are moving down. And you know, some people are more interested in style than substance. And that's understandable, that's fine. There's plenty of people commendable for two(ph). But we're doing our thing. We are - we've always been doing it the way we've always done it, which allowed me to win two races in Tennessee by 20-point margins and do a few other successful things in my life. So we'll see how it works out. We feel good about it.
SIEGEL: Before I let you go, I should ask, how do you think Jack McCoy is doing as district attorney in the…
Mr. THOMPSON: Well, I don't know. I hope the boy is up the job. I've been getting reports on him. I think he's got real possibilities. But I've been sorely disappointed that they've been able to struggle along with that show without me.
SIEGEL: Okay. Well…
(Soundbite of laughter)
SIEGEL: …his character may have to run for office soon too, if he…
Mr. THOMPSON: Well, you know, it's a lot easier to run on television than it is out here in real life, but the rewards are greater in real life, too.
SIEGEL: Okay. Fred Thompson, thank you very much for talking with us today.
Mr. THOMPSON: Thanks a lot. Appreciate it.
SIEGEL: Republican presidential candidate Fred Thompson spoke to us from his campaign bus outside Newberry, South Carolina. Barack Obama spoke to us earlier from San Francisco. And you can find a summary of what's at stake in upcoming presidential primaries and what issues are on voters' minds at npr.org.