Full Excerpts: Charlie Gibson Interviews GOP Vice Presidential Candidate Sarah Palin

PALIN: And you're right, our economy is weak right now and we've got to strengthen it, and government can play an appropriate role in helping to strengthen the economy.

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PALIN: Our 6.1 percent unemployment rate is unacceptable, also, across our nation. We need to put government back on the side of the people and make sure that it is not government solely looked at for all the solutions, for one.

Government has got to get out of the way, in some respects, of the private sector, being able to create the jobs that we need, jobs that are going to allow for the families to be able to afford health care, to be able to afford their mortgages, to be able to afford college tuition for their kids. That's got to be the principal here, reform government, recognize that it's not government to be looked at to solve all the problems.

Taxes, of course, I think is one of the most important things that government can obviously control and to help with this issue.

GIBSON: What you said to me at the beginning I don't think anybody in the Bush administration would disagree with. What do you change in the Bush economic plans?

PALIN: We have got to make sure that we reform the oversight, also, of the agencies, including the quasi-government agencies, like Freddie and Fannie, those things that have created an atmosphere here in America where people are fearful of losing their homes.

People are looking at job loss. People are looking at unaffordable health care for their families. We have got to reform the oversight of these agencies that have such control over Americans' pocketbooks.

GIBSON: So let me summarize the three things that you'd change in the Bush economic plans. One, two, three.

PALIN: Reduce taxes, control spending, reform the oversight and the overseeing agencies and committees to make sure that America's dollars and investments are protected.

GIBSON: So let me break some of those down. You talk about spending. How much smaller would a McCain budget be? Where would you cut?

PALIN: We're going to find efficiencies in every department. We have got to. There are some things that I think should be off the table. Veterans' programs, off the table. You know, we owe it to our veterans and that's the greatest manifestation that we can show in terms of support for our military, those who are in public service fighting for America. ...It's to make sure that our veterans are taken care of and the promises that we've made to them are fulfilled.

GIBSON: So you'd take military off the table, the veterans' benefits. That's 20 percent of the budget. … Do you talk about entitlement reform? Is there money you can save in Social Security, Medicare and Medicaid?

PALIN: I am sure that there are efficiencies that are going to be found in all of these agencies. I'm confident in that.

GIBSON: The agencies are not involved in entitlements. Basically, discretionary spending is 18 percent of the budget.

PALIN: We have certainly seen excess in agencies, though, and in -- when bureaucrats, when bureaucracy just gets kind of comfortable, going with the status-quo and not being challenged to find efficiencies and spend other people's money wisely ... then that's where we get into the situation that we are into today, and that is a tremendous growth of government, a huge debt, trillions of dollars of debt that we're passing on to my kids and your kids and your grandkids ... It's unacceptable.

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