FULL 'This Week' Transcript for Nov.29, 2009

But they don't really know exactly what to do. I mean, they have already extended unemployment. They've already extended tax credits for first-time home buyers. Now they're talking about trying to lean on lenders on mortgages, but their solution there is to try to make them feel shame. And it doesn't seem to be working for any of the -- Wall Street people don't seem to feel shame.

STEPHANOPOULOS: The president's going to push on them again tomorrow, on the banks.

DOWD: I think this is the president's political problem that he has, and I don't think this jobs summit is going to do anything to solve that problem. I actually think the American public thinks that the stimulus package that was passed eight months ago was supposed to be a jobs bill, and never actually created any jobs that the American public has seen. So, now, he's going to have a meeting, a summit, an event, he's going to have a meeting and say, oh, here's some stuff we're going to do. And I think the public sits there and is going to say, well, I don't have a job, my brother doesn't have a job, what have you been doing for nine months?

STEPHANOPOULOS: But, but (inaudible) the White House political problem there, is that they're arguing that it could have been worse...


DOWD: Nobody out there in America, will say oh, yes, we would have lost more jobs if you hadn't done that. All they're thinking about is...


STEPHANOPOULOS: So what would make a difference right now?

KRUGMAN: If you could get $300 billion...


KRUGMAN: If you could get some significant amount of money. It doesn't have to be as big as the first one. There are things you can do to create jobs more cheaply than the kinds of things they did before. You can have tax credits for businesses that hire more people. You can have direct employment programs, WPA type stuff, you know, short-term employment things that are quite cheap per job created, because they create poor-paying jobs, but it's better than nothing. You can provide another round of aid to state and local governments, which are going to be in desperate straits and are going to be really laying off a lot of people.

STEPHANOPOULOS: Prevent teacher layoffs.

KRUGMAN: So you can -- Economic Policy Institute has a plan that is going to be announced tomorrow that is a $400 billion thing. And it looks plausible. It could create quite a few jobs. It would make a big difference.


STEPHANOPOULOS: ... businesses wouldn't just (inaudible)?

KRUGMAN: There are some mixed evidence. But what we know is that -- and what everybody talks about is Germany, which basically has a system of subsidizing, subsidizing companies to keep workers on. Not to -- reduce their hours, but don't lay them off. Which has been spectacularly successful.

Germans have had as deep a recession as we have had, but with hardly any increase in unemployment. And that suggests that, yes, providing some financial incentives to keep workers on, to add more workers for those companies that are expanding, would work.

WILL: It's an old axiom in Washington, the title of legislation is like the title of a Marx Brothers movie. Tells you nothing about what's in it. "Duck Soup," "Horse Feathers."

We will have a legislation that will try -- and this will be a challenge -- to not use the S world, stimulus. Because we've had -- and I keep saying this, and...


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