For Immediate Release
December 11, 2008

  

     MODERATOR: The following is an unrehearsed interview with Iowa Senator Chuck Grassley speaking to you live from Washington.  Participating in today's public affairs program are Jeff Bayer with KZAT Radio in Tama and Glenn Schreiber with the Dayton Review in Dayton. 

 

     The first question will be from Jeff Bayer. 

 

     BAYER:  The auto industry bill, I think, is going to be up for a vote this afternoon.  Even though a lot of people are saying this is about Detroit and the Big Three, here in Iowa, there are a lot of little companies, especially in my area, that do make parts for the auto industry. 

 

     What's your feeling on how the voters are going to go today?  And what reassurances can you give the people in my area that do this job making these car parts for the Big Three that have had some difficulties? 

 

     GRASSLEY:  Well, on the helping the auto industries, I have mixed emotions about it.  I'm a person that drives American-built cars, and they happen to be built by Detroit companies.  Ford and General Motors and Chrysler, you know, are kind of like apple pie and motherhood. They're a big part of America. 

 

     They've been bad managed.  Before I will vote to give money to them, I've got to be assured that executives that have mismanaged the company are not still going to be running them, that we're going to renegotiate contracts, and that government regulation that has had something to do with bringing companies to some of their financial plate needs to be lifted for a short period of time. 

 

     And I think that there are some bills out there that will do it, but I'm not sure that the bill that was worked out between the White House and the Congress is the one that is going to restructure the company so that we know we get our taxpayer dollars back.

 

     SCHREIBER:  Senator Grassley, job losses for December were more than expected and consumer confidence is quite low right now because of job cutting, increasing unemployment, stock market declines, and declining values on homes. 

 

     What can businesses and individuals do to help turn this around, and what role should the role of Congress be in assisting the process of stimulating job growth and economic development? 

 

     GRASSLEY:  Well, I can tell you what consumers and investors and borrowers ought to do.  They ought to spend their might be.  They ought to borrow if they can borrow.  And banks ought to lend in they can lend. 

 

     And there's plenty of that around but nobody wants to do anything.  And just this morning, I met with the trade commissioner from Europe, and it's a problem worldwide that she talked about – not just in the United States.  Everybody's being cautious.  Nobody has confidence. 

 

     So building upon my meeting, then, that I had yesterday with Secretary-designee Geithner of the Treasury Department, we – he talked about things getting worse before they get better and that government didn't step in the 1930's soon enough and the sooner we step in the better. 

 

     We've already stepped in to some step.  We haven't seen quite the benefit of it that we ought to from the liquefying the banks so that we can, in turn, help Main Street and small businesses because that's not -- that's just not all about Wall Street. Got to make sure that the local banks and the local businesses are helped as well. 

 

     So that's one step.  The second one is what we're going to do in January with the stimulus package.  And as long as that stimulus package is balanced between tax policy changes that encourage investment which will bring about employment long term, I think I can go along with -- with what you called infrastructure spending to create jobs -- you know, highways, et cetera. 

 

     But I think too many people in Washington just want to spend money and they don't want tax policy that will encourage investment and create jobs long term.  So it's got to be a balanced stimulus package.  If it's not, I'm going vote against it.

 

     And we passed is a stimulus package, as you remember, with the $600 rebate check back in January of this year.  And we honestly thought it would keep us out of recession because we had rebates in the 2001 tax bill and it really did stop the recession.  But people didn't spend their money.  And so only about 20 percent of it got into what you call stimulating the economy through consumer spending. 

 

     And so it didn't do the good we did.  So we're -- we're not looking at just rebate checks.  We're looking at tax policy that encourages investment.

 

     BAYER:  Senator, I'd like your take on the situation in Illinois with the governor and the Senate seat situation.  What's your feeling?  And what do you think of this story? 

 

     GRASSLEY:  Well, I'm shocked.  And maybe when you consider Chicago politics and the reputation, you shouldn't be shocked that that happened in Illinois.  And you look at a governor who fought hard to be governor, you wonder what's wrong with him.  So you're appalled at what happened.  And criminal actions have happened, and they're going to have to be prosecuted.  So it's all in the hands of prosecution at this point. 

 

     It would be best for the United States Senate if he would resign and the lieutenant governor would take over and they'd appoint somebody who would get the Senate seat filled.  Who -- in Iowa, they'd figure you lost your last brain if you were trying to sell a Senate seat or buy a Senate seat, either way. 

 

     And so if the lieutenant governor took over and appointed somebody, or maybe better yet, the legislature is talking about a special election.  They've got to change the law to do that.  That would be the best thing to do.

 

 

     SCHREIBER:  Senator, you know, it isn't hard to find negative things in our state and national economics right now -- in the economies.  But what are some of the good, positive things that you see happening? 

 

     GRASSLEY:  Well, as President Bush leaves office, I would think it's very positive that 9/11 never happened again.  He kept Americans safe. 

 

     I think that the spiritual foundation of our nation is strong and that's going to help us get out of this economic crisis we're in. 

 

     Families, as the (inaudible) work of our society, are strong. 

 

     Americans have a great work ethic, maybe more in the Midwest than the country as a whole, but still a good work ethic. 

 

     We've been through these things before, and we'll get through them now.