• This is a rush transcript from "Your World with Neil Cavuto," October 15, 2007. This copy may not be in its final form and may be updated.

    NEIL CAVUTO, HOST: Suffice it to say, we have concerns about the economy again.

    So, for the next president of the United States, that is certainly going to be a topical issue. And wouldn't you know we have a man many consider to be a possibility in that category.

    I'm talking about Fred Thompson, the former senator of Tennessee. Some of you might have seen him on TV now and then, movies. I don't know if it rings a bell.

    But, anyway, Senator Fred Thompson, very good to see you.


    CAVUTO: Thank you very much for coming.

    THOMPSON: Good to see you again, Neil.

    CAVUTO: Thank you.

    THOMPSON: Appreciate you having me. Congratulations on your new show.

    CAVUTO: Thank you very much.

    Let me talk a little bit about the environment for the network. Wall Street less than hospitable to the network's launch. I will leave that to Wall Street later.

    But are you concerned about a recession?

    THOMPSON: No. No.

    You have got to understand that recessions happen, and that we have been in an extraordinarily long period without one. But it's, what, 22 successive quarters now of economic growth...

    CAVUTO: Right.

    THOMPSON: ... ever since the tax cuts kicked in.

    But inflation rates, unemployment rates, all those are good indicators. I think we're part of a healthy global economy. And I think, as long as we stick to the principles we believe in, in this country — and that is market economies, and competition, free Americans with each other, engage in world trade, innovation — we are going to be OK. Clearly, the Fed looked down the road and saw a little something there, and with their drop in rates recently. But they're always trying to stay ahead of the hounds a little bit. And, hopefully, they did.


    CAVUTO: Are they enough ahead?

    THOMPSON: Sure. I think so, for right now.


    CAVUTO: For right now, being — let's say they're going to meet again on Halloween, I believe.

    THOMPSON: Yes, appropriately enough, huh?


    CAVUTO: Yes. Should they do anything more?

    THOMPSON: Oh, I don't know. I think that we will have to wait and see between now and then.

    You know, a couple days ago, the market was up.

    CAVUTO: Yes.

    THOMPSON: You know how that goes.

    CAVUTO: Oh, absolutely. But this view, the doom-and-gloomers who say, hey, get ready for more doom, more gloom, you don't buy that?

    THOMPSON: No. No.

    I don't see — you always have to be mindful in terms of our fiscal policies and what we are doing with the economy, which direction do the people that it's going to go in. I think, if Wall Street decides that we're going to go into a period where we tax-and-spend ourselves into oblivion, then we're all going to be in trouble.

    That's what this next election probably is going to largely hinge on. But I think, for right now, if we stick to the basics, and do what made us a great nation, that there is no reason why we can't continue the prosperous times that we have now.

    CAVUTO: All right.

    You talk about what made a great nation. But also what made the Republican Party a great, dominant party for many years, certainly dating back to Ronald Reagan, is practicing that religion...

    THOMPSON: Yes.

    CAVUTO: ... you know, being fiscally prudent, not going crazy. And now there is some doubt as to whether you guys still have that mojo.


    THOMPSON: Yes. It is not just the Republican Party. You go back to the '20s. Any administration that has lowered taxes, lowered tax rates, Kennedy administration, Reagan administration, and now here, has proven that it grows the economy, and that, you know, after a percentage and a half or thereabouts, the economists say that the revenue to the government starts coming in greater than the economic growth.