Thompson Talks Economy in S.C.

ABC News’ Christine Byun Reports: Campaigning in South Carolina Monday, Republican candidate Fred Thompson said he would consider an economic stimulus package to combat the effects of a recession.

"I think [there are] a lot of people out there who think we’re headed in that direction,"  Thompson told reporters outside his campaign event in Aiken, South Carolina when asked how he would combat a recession. "We need to make sure we don’t overreact, as well as doing the right thing."

During the campaign stop, Thompson took questions from people in a crowded barbecue restaurant. He was asked by a local resident how he would keep jobs from going overseas.

"My friend, I think the answer is that we’re going to have to come up with new jobs," Thompson answered, adding, "When you lose one over here, you got two over here."

He also said the country needs to remain competitive by enticing corporations to stay within the U.S by slashing corporate tax rates.

The former Tennessee senator said the country’s economy would have to "rely on the [Federal Reserve] to have responsible policies." He said he would consider proposals like eliminating the lower tax bracket for a year, increasing the child care credit and providing a tax rebate for those who participate.

He also offered the idea to "revamp our depreciation schedules for businesses to allow the deduction of certain capitol expenditures."

Thompson will remain in South Carolina through Saturday’s primaries. Thompson taped a new ad yesterday in Virginia that he plans to release in the Palmetto State.