MICHELE NORRIS, Host:
From NPR News, this is All Things Considered. I'm Michele Norris.
MELISSA BLOCK, Host:
And I'm Melissa Block. Capitol Hill lawmakers are wrangling over a future stimulus package and also over the economic rescue package passed last year. The latter debate is over how to use the second half of the $700 billion TARP funds. Eric Cantor of Virginia is the House Republican whip and he wants restrictions imposed. He says the TARP money hasn't been used in the way it was intended.
NORRIS: Given the track record with some of those TARP monies going to specific industries like the auto industry, it gives me a great deal of pause, because the TARP funds is not supposed to be a pool of money available for ailing industries. That TARP money is supposed to be there to try and insure that our credit markets are functioning.
BLOCK: Are you hearing assurances from either the incoming Obama administration or from the House Democratic leadership that in fact the restrictions you're talking about, the oversight you're talking about would apply?
NORRIS: No, I'm not and that is the difficulty that I'm having in seeing my way to approving the further use of the TARP funds and that's why I believe you've got a lot of doubt on the part of House Republicans as to whether we should support the further expenditure of these monies.
BLOCK: Congressman Cantor, I want to ask you about a separate financial package heading your way, and that's the stimulus package. The Democrats' proposal looks to be about $825 billion; it breaks down as about two-thirds of spending, one-third in tax cuts. Do you see that as being about the right balance?
NORRIS: I think that that question is the wrong jumping-off point.
BLOCK: Uh-huh.
NORRIS: We ought not be focusing necessarily on the size of the package, although that does give me great pause when you're talking about close to a trillion dollars, but the real focus of any stimulus bill should be the protection, the preservation and the creation of jobs. And it doesn't necessarily happen from government spending and this is, I think, the focus of what the battle of ideas is going to be over the next several weeks through out the country, not just here in Washington. I am very concerned about the level of spending and this notion that somehow, if we just unleash hundreds of billions of dollars for infrastructure projects or whatever type of projects, that that necessarily is going to create jobs. I know a big part of the, you know, the reporting now of what this package will look like will go towards states and local governments. Again, that is going to fill the shortfalls that those governments are experiencing - instead I would ask, why aren't those governments and those entities tightening their belt the way that every American family is having to do in these difficult times?
BLOCK: I'm sure the governors of those states would say they've tightened their belts to the point of extreme pain, but let me ask you a separate question - I mean, there certainly is a robust counterargument, which would be that if you're looking at creating new jobs, then increased government investment in public works and construction, things like that, are far more efficient than tax cuts. Tax breaks for businesses, things like that.
NORRIS: I think you will find so much evidence to the contrary. There is a CBO report that has just been released that 24 cents on every dollar spent in the first year in an infrastructure project is all that gets into the economy. And then overall, these are temporary moves. We want long-lasting changes that will promote job creation.
BLOCK: The speaker of the house, Nancy Pelosi, has said that they need this stimulus package passed and signed before Congress leaves for the President's Day recess in February or she says she won't dismiss the House. Do you think that actually will happen?
NORRIS: I think that, you know, that is the spirit in which President-elect Obama spoke to us when I met with him last week, and there is no reason in the world nor should the American people have to wait for us to drag our feet to try and do the people's business. Of course we should be able to produce a package that is transparent, that is full of accountability, by then. And one of the suggestions that I had for the president-elect last week was that he post online every bit of public expenditure that he is proposing, because there is no quicker way than to engage the American people in a national debate than by putting it online.
BLOCK: And how did he respond to that?
NORRIS: He committed to it - he said that's a great idea, that he and his administration were already in thought process to design such a program to promote transparency. I thought we'd already have seen it by now. I'm anxiously awaiting it.
BLOCK: We've been talking with Congressman Eric Cantor of Virginia. He is the House Republican Whip. Congressman, thank you so much.
NORRIS: Thank you.