BLITZER: And welcome back to LATE EDITION. I’m Wolf Blitzer in Washington. For my next guest, a precarious situation in the U.S. automobile industry is certainly a family affair. The former Massachusetts Governor Mitt Romney’s father led American Motors back in the 1950s. Some have suggested that Governor Romney would be a good choice, by the way, to spearhead the industry’s recovery, to in effect become the car czar. We’re going to talk about that, the economy, and a lot more. The governor is joining us from Salt Lake City.
But first, I want to get your reaction, Governor Romney, to what’s happening in the Middle East right now. Are you with the Israelis? Are you with the Palestinians right now? Where do you see this situation unfolding?
ROMNEY: Well, you look at the — their current circumstances in Gaza, and you say to yourself, why in the world did Israel allow the rockets to be blasted into Israel year after year, 6,400 rockets shot into Israel without real military response?
From the very beginning, there should have been response to say this is unacceptable. Hamas was very clearly not a government intent on helping their people. When sovereignty was give on the Palestinians in the Gaza Strip, they didn’t build roads, they didn’t build hospitals, they didn’t build schools or businesses. Instead, they bought rockets, millions and millions of dollars worth of rockets. They were intent on destroying Israel. And in a circumstance like that, Israel has no choice but to take military action. They’re taking it now. It’s terribly unfortunate. But the cause of this is the constant attack over the last several years by Hamas.
BLITZER: The Hamas leader Khaled Meshaal in Damascus on Friday railed against Barack Obama , and he said this. I’m going to play the little clip and translation.
(BEGIN VIDEO CLIP)
KHALED MESHAAL, HAMAS LEADER (through translator): Mr. Obama, your beginning is not good. You got involved and you had a statement regarding the issue of Mumbai, but you would not get involved and say anything about the enemy’s crime against Gaza. Enough of your double standards, oh, western nations.
(END VIDEO CLIP)
BLITZER: Do you have confidence that the incoming president is, from your perspective, going to do the right thing as far as the Middle East is concerned?
ROMNEY: I believe that Barack Obama is firmly behind Israel’s right to protect itself. He said so time and time again in debates as well as in statements since his election. The United States is committed to doing what’s right here. This is obviously a big question for a lot of countries because they look at the opportunity to trade with over a billion Muslims, many of them angry with regards to the Palestinian effort. But, in fact, Israel is in the right in this circumstance. They are an independent nation. They’ve been attacked time and time again by Hamas. And an independent nation has a right to protect itself against this kind of attack.
BLITZER: What do you think of this national security team that he’s putting together, the president-elect, with Hillary Clinton becoming secretary of state, Jim Jones, the retired U.S. marine corps commandant, the national security adviser, and holding onto Robert Gates as defense secretary?
ROMNEY: I think you have to be pretty encouraged. If you’re a conservative, obviously conservatives have had some difficulty with Hillary Clinton over the years, but she does have experience and she has some perspective with regards to foreign policy that I think will be useful. And General Jones and of course continuing with Secretary Gates is very, very encouraging. These are people who have been tested time and time again. I don’t think you’re going to see a dramatic departure from the historic commitment that we have to peace and prosperity in the world and the cause of democracy.
BLITZER: He’s talking about a $750 billion economic stimulus package. He wants it to be passed as soon as possible. It’s unclear if whether it can be passed before he’s inaugurated on January 20th. What do you think about this proposal?
ROMNEY: Well, I frankly wish that the last Congress would have dealt with the stimulus issue and that the president could assign that before leaving office. I think there is need for economic stimulus. Americans have lost about $11 trillion in net worth. That translates into about $400 billion a year less spending that they’ll be doing, and that’s net of additional government programs like Medicaid and unemployment insurance. And government can help make that up in a very difficult time. And that’s one of the reasons why I think a stimulus program is needed.
I’d move quickly. These are unusual times. But it has to be something which relieves pressure on middle-income families. I think a tax cut is necessary for them as well as for businesses that are growing. We’ll be investing in infrastructure and in energy technologies. But let’s not make this a Christmas tree of all of the favors for various politicians who have helped out the Obama campaign, giving them special projects.
That would be wrong. You’ll see Republicans fight that tooth and nail if that happens. Let’s do what’s right for the economy, and let’s not do what’s a political expedient move.
BLITZER: The economic bailout that the president approved for Chrysler and for General Motors just a couple of weeks or so ago, you’re not thrilled by that, are you?
ROMNEY: No. I think we lost an opportunity there, and maybe we can get the opportunity again in the next several months. But frankly, the U.S. auto industry, the domestic manufacturers, have every reason to thrive and to succeed in this country. There’s no reason for them to continue to lose share as they have over the past 20 years, if they are restructured. And if the excessive costs which they have in health care, in retiree benefits, in work rules, and in labor rates, if those things are brought in line with the foreign manufacturers who make cars here in the U.S., if they’re brought in line, the domestic manufacturers can succeed.
But we had the opportunity to do that, to bring the costs in line, the UAW balked, the industry balked, managers balked in the various company, and the job didn’t get done. And just bailing them out and funding a continuation of the historic loss of market share is not good for the industry long term. I want this industry to thrive and grow, and it can.
BLITZER: Do you think that they can come up with a plan, the auto industry, by the end of March, which they’re supposed to do, now that they’ve been given this lifeline?
ROMNEY: Well, it doesn’t take very long to come up with a plan. The answer for what’s necessary for the industry is pretty straightforward. The question is whether management and the unions will actually take the necessary action. And the only way that they’re going do that is if they realize they don’t have any alternative. And when government is willing to write checks and became them out and continue the status quo, they’re just funding a continuation of the decline of the industry.
You’re going to have to stand up to the UAW and to management and say, these are the changes that have to happen, and if you do these things, we’ll give you the financial relief you need, and if you don’t, we’re not going to help you at all. And that’s the only kind of leverage I think that’s going to get the UAW and management to take the necessary action.
BLITZER: You said you liked the president-elect’s national security team he’s putting together. What do you think about his economic team?
ROMNEY: You know, there are some very good people there. I’m very pleased with the person that’s going to be running Treasury. He’s a capable, experienced individual, having run the Federal Reserve or been chief of the Federal Reserve in New York. I’m very hopeful.
ROMNEY: Look, this is a time when we’re all hopeful for the president-elect. He was kind enough to call our home when my wife was ill, and he said that he and Michelle had my wife in their prayers, and I said, Mr. President-elect, Ann and I have you in our prayers. And we do.
All Americans — Republicans, Democrats, Independents — want to see this president successful. He’s chosen good people. If they do the right thing and put politics to the side and instead focus on what’s right for the nation at such a critical time, we’re all going to be behind him.
BLITZER: I notice in “The Wall Street Journal” on December 27th they ask you for your 2009 resolutions. Among your professional resolution, you said this, “I want to help restore balance in Washington. Our democracy needs two strong parties if we are to deal effectively with the challenges our nation faces.”
On a personal note, you said stop wearing a suit and tie to bed, which was very cute. But let’s talk a little bit about the Republican Party right now in opposition. Who is the leader right now of the Republican Party?
ROMNEY: Well, the great thing about our party right now is there’s no one leader. We have voices from Washington as well as across the nation. You just heard from Governor Sanford, but there are other great governors across the country that are making a real difference, Haley Barbour , Bobby Jindal . I won’t go through the whole list, but you’ve got quite a group of Republican governors and then of course in the Senate and the House, you’ve got strong voices.
And we’ll be listening to those voices. Senator McCain continues to have an influence in the party of significance. And I think you’re going to find that we will, as a party, represent a strong and viable pathway for America to strengthen our economy. That’s issue number one right now, is to get this economy going again, not with old political favors being paid back and earmarks being applied but, instead, by taking action to reduce taxes on the American people and on American business.
BLITZER: Who’s your choice to be the next chairman of the Republican National Committee?
ROMNEY: You know, I haven’t weighed in on that, Wolf. There are several good people who are running. In some respects, I’d hope for a very visible and prominent name to step forward. But that hasn’t happened to date. I don’t think it’s likely to at this stage, but there’s some folks who have been running the state parties and their respective states and some have also been running the national republican committee already.
So, among them, I think you’ll find that the committee chooses someone who can guide our party at a critical time. But really, I think the most powerful voices of the party are going to be elected officials in the Senate, in the House, and in governors’ offices.
BLITZER: You’d probably be a pretty good candidate if you wanted to throw your hat in the ring. Is that something you’re interested in doing?
ROMNEY: Not interested in that race, thanks. I’m going to continue to fight for electing conservative Republicans across the nation. I’m going to do that by fund raising, by giving speeches, by writing op-eds, doing whatever I can to talk about the need to have a strong second party in this country and balancing the overwhelming lead that the Democrats have in Washington right now.
BLITZER: Governor Romney, happy new year to you and your family. Thanks very much for joining us.
ROMNEY: Thanks, Wolf. Good to be with you.
