'This Week' Transcript: Gov. Arnold Schwarzenegger and Gov. Edward Rendell

RENDELL: Yes, I think basically they do and you know, Mitt Romney is a pretty smart guy. He was very clever there. He said net new jobs. We could fill up every baseball stadium in this country, Terry, with people who got jobs or whose job was saved by the stimulus. There's no ifs, ands or butts about it. Pennsylvania's budget is a little under $28 billion. We get almost $3 billion this year from stimulus. Take that $3 billion away, we've cut most of our program grants to the bone. You'd have to lay off -- I'd have to lay off 37,000 state workers to balance the budget. We have 76,000 state workers.

If we did it with counties, it would be teachers, fireman, police men, emergency workers. So has it saved jobs? You bet it has. Has it created jobs? I'll take Governor Romney out to any construction site in Pennsylvania and then I'll take him -- we'll drive to a construction site, back to the steel plant that provided the steel for the bridge. He knows better.

MORAN: But as Governor Schwarzenegger says, it's politics, but it's politics that gain traction. And I want to ask you, Governor Rendell, big fanfare this week, the Obama administration fanned out across the country, does stimulus work? The president made speeches, sounded a little frustrated that people don't get it, at least the polls show, that they don't understand there were tax cuts and things like that. What do they do while they're playing defense on what was one of major accomplishments? What did the White House, the president do wrong in explaining, presenting itself?

RENDELL: Ironically, the best communicator in the history of political campaigning turned out in his first year in office to not communicate very well. They let the Republicans take the spin right from the beginning. The stimulus got beat up before one dollar was spent. What I would have done, and I've been in charge of the president, is I would have had him Tuesday night -- not Tuesday night was the inaugural ball. Wednesday night I would have had him make a speech to the nation, break down what stimulus because a lot of the stimulus, it wasn't job creation, but was safety net. But not safety net for people on welfare, safety net for hardworking Americans who lost their jobs, extending unemployment benefit. Is there anybody in the Congress -- Republicans aren't going to raise their hands and vote against that, right? Everybody is in favor of that. That was an important component of the stimulus. COBRA, health care benefits, for people who lost their jobs. But we never explained it from the get go and we lost the spin war. The stimulus has done a great job for America, but we lost the spin war. And once you lose it, it's hard to get it back.

MORAN: It's a very aggressive Republican positioning and I want to go back to the CPAC conference. The Republicans reasserted their congressional power. Essentially the massive campaign of obstruction, filibusters more than 100 in one year, 80 percent of major legislation -- and as Mike Pence, congressman from Indiana, one of the Republican conservative leaders in the House put it at CPAC, they're proud of that record.


REP. MIKE PENCE, R-IND.: Sometimes no is just what this town needs to hear. When it comes to more borrowing, the answer is no. When it comes to more spending, the answer is no. When it comes to more bailouts, the answer is no.


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