• This is a rush transcript from "Your World With Neil Cavuto," November 6, 2009. This copy may not be in its final form and may be updated.

    CONNELL MCSHANE, GUEST HOST: Well, unemployment is soaring, and the administration is scrambling.

    To a guy now who is hiring. Google CEO Eric Schmidt just talking to Neil, and only to Neil.


    NEIL CAVUTO, HOST: You have very good relations with the Obama administration, and that of course the subject of a "Fortune" cover in the latest issue.


    CAVUTO: On one level, I guess that`s very flattering, but on the other, you must have been banging your head against the wall, because there`s no way you come out winning with that.

    SCHMIDT: Well, you don`t want to be too close to any particularly administration, and they don`t want to be close particularly to you.


    CAVUTO: Well, take it from us here at Fox, that`s not a worry. But go ahead.


    SCHMIDT: And, so, from our perspective, the Obama administration has done a number of things that are important from a Google perspective, most important focusing on a national broadband plan, which is something that all of us can agree will bring great prosperity to America and give us an opportunity to really innovate.

    CAVUTO: But they are not above looking into your business or antitrust issues, because, with your success, a lot of their other friends say, well, you know, they are getting too big for their britches.

    SCHMIDT: We expect that. And the regulators have a job to do. And we expect it, not just in the United States, but also especially in Europe.

    From our perspective, if you look in terms of my message to the administration, it is really about innovation, that Google is an example of a company that can help invent new industries in America, that can really bring jobs back, can really bring the kind of America that all of us want to be part of, the advanced manufacturing, biotech, and the other things that America is a world leader in.

    Investments there and encouraging the private sector, which is where jobs are created, that works.

    CAVUTO: The president likes you personally. You are on his — variety of advisory boards, I guess. How do you like him?

    SCHMIDT: On a personal basis, I like him a lot. He`s very, very smart. He is a tough thinker.

    And one of the things about President Obama that people didn`t see on the campaign was how decisive he was. And given the set of problems that he has been handed, I think he has been quite decisive.


    CAVUTO: Yes, but I know you backed him and all that, but do you think — you are a pretty good manager — that he has spread himself too far, too wide?

    SCHMIDT: I don`t, but I think that he has — I don`t believe he has spread himself too far, but I do believe that our system gets in the way of being a proper CEO. After all, the Constitution calls for the Congress to exist and to do its thing.

    And if you look at what is happening with legislation, which is true, by the way, in the previous administration as well, the Congress is riddled, if you will, with special interests, their own motivations, representation that could — this is how our system works.

    CAVUTO: Yes. Yes.

    SCHMIDT: It`s very difficult to manage through that, whether you are President Bush or President Obama. And my heart goes out to both of them on that.

    CAVUTO: But as a pretty important global executive, does it bother you that the tone not only at the White House, but in Washington, it has been kind of open season on executives and their wealth? And whether they`re in the financial industry or the health insurance industry, they have a big old bullseye on them.

    SCHMIDT: It is easy to demonize people, especially after the harm that was done to the average person in our society by the powerful and the elite, who essentially precipitated both the credit supply and then the collapse. I understand the anger.

    I would tell you that there is an opportunity now to fix this. We have technology. We have measurement systems. We have open systems and transparency.


    CAVUTO: But do you think it has gone a little far?

    SCHMIDT: Do I think that personally? Absolutely it has gone too far.

    But I understand it. And I think the solution is not to spend all the time talking about what happened, but rather say, how do we avoid these crises in the future? How do we avoid creating all that — all the mess? How do we put it to bed forever?

    CAVUTO: Right.

    SCHMIDT: And we can do that, by the way, using transparency and how computers talk to each other and making — remember that, in the Web, people have a lot of ability to monitor what our government is doing, and that is a good thing.

    CAVUTO: Well, maybe you can make software to fix it or software to just come up with these numbers, because part of the way they`re going to for health care and some other things is they think that you can get savings.

    But you`re a good number cruncher as well. Can you leave it at taxing the top three-tenths-of-one-percent, raising their taxes another five percent, in other words, in a couple of years, bring the top rate another 10 percentage points higher?

    Now, for guys like you, billionaires, I guess, you could afford it, but do you worry about the direction?

    SCHMIDT: I worry that the math doesn`t work, and I worry that it doesn`t work because when I add up the growth in health care costs and the likely trajectory and the lack of effective cost controls, that we will continue to have an underfunded program.


    CAVUTO: OK. So just taxing the rich alone won`t do it?