• This is a rush transcript from "Your World With Neil Cavuto," April 28, 2009. This copy may not be in its final form and may be updated.

    NEIL CAVUTO, HOST: All right, you might have heard this once or twice on the network, but Arlen Specter’s switch giving Democrats possibly a filibuster-proof majority, possibly for the first time since the Carter administration, though that didn’t work out well for Jimmy Carter, did it?

    Reaction now from former Republican presidential candidate Rudy Giuliani.

    Mayor, good to see you.

    RUDOLPH GIULIANI (R), FORMER NEW YORK MAYOR: Good to see you.

    CAVUTO: All right. I know you’re a little under the weather.

    GIULIANI: A little bit of a laryngitis, but I am doing OK.

    (CROSSTALK)

    GIULIANI: Some people prefer when I’m like this.

    (LAUGHTER)

    CAVUTO: Yes.

    (LAUGHTER)

    CAVUTO: Most of my viewers prefer it when I get...

    (LAUGHTER)

    CAVUTO: Let me ask you about this Specter switch.

    He was arguing, in so many words: "I didn’t leave the Republican Party. It left me."

    (LAUGHTER)

    GIULIANI: No, he left the Republican Party.

    I am very disappointed. I campaigned for Arlen many, many times, including his — his last very close race in the Republican primary, where the White House...

    CAVUTO: Right.

    GIULIANI: ... where the White House went way out for him, and I went way out for him, and so did many others.

    So, I am very disappointed. Now, Arlen has to make his own decisions. He is a friend of mine. And, in many ways, he has had problems in terms of the thinking of the Republican Party for quite some time, even the economic conservative part.

    CAVUTO: All right, now, many had the same kind of rap about you, this maverick Republican, who, on the core economic, you know, security issues was a Republican, but, on social issues, was not.

    And that caused some...

    (CROSSTALK)

    CAVUTO: ... agita in the party, right?

    GIULIANI: It did. I think they interpreted me incorrectly.

    I am a Republican, for what I consider to be the two main reasons, the economy, national security. I made a deliberate choice to become a Republican before I was ever in elected office. And I made it because I thought the Democratic Party had become too weak on national defense.

    (CROSSTALK)

    CAVUTO: And you became a Republican, what, in the first years of the Reagan administration.

    GIULIANI: I did. And I was very impressed with President Reagan.

    CAVUTO: Right.

    GIULIANI: And it was basically over strong or weak national defense, and realistic economic policies or unrealistic economic policies.

    And when I look at what the Obama administration is doing, it convinces me more that I should be a Republican, because these are terrible mistakes they are making in handling our domestic economy.

    CAVUTO: So, what do you make of Specter’s argument that the Republican Party is now dominated by the extreme right, and they’re marginalizing themselves?

    GIULIANI: Well, if people like Arlen leave, that doesn’t help.

    The reality is, the Republican Party is made up of a lot of people. There is a very strong contingent that has a very right-wing view on a lot of social issues. That is where I have disagreements, consider myself a moderate on social issues.

    But, on economic policy and on national security, I am very comfortable being a Republican, and I am very comfortable being a conservative.

    CAVUTO: Yes.

    I knew you were coming, Mayor, so I wanted to talk to you about this Air Force One dustup. They were doing this P.R. picture-taking thing over the streets of Manhattan.