• This is a rush transcript from "Your World With Neil Cavuto," December 4, 2009. This copy may not be in its final form and may be updated.

    NEIL CAVUTO, HOST: In the meantime, the president not putting a price tag on his new jobs plan, but the top House Democrat is. Steny Hoyer says that we are looking at about as much as $150 billion to fund this.

    On the phone with us right now, Democratic Congresswoman Lynn Woolsey of California, who is all for this.

    Congresswoman, you just heard about this AAA credit rating threat to the United States. Is this the time to be pushing any more spending?

    REP. LYNN WOOLSEY (D), CALIFORNIA: Well, actually, we saved money on the TARP, and we will get about $200 billion back, or spend $200 billion less.

    And I am wondering if — how the credit rating went when we were helping the banks on Wall Street, instead of helping individuals on Main Street. I see the savings of the $200 billion being the perfect investment for — on Main Street. People in this country are looking for help where they live, not in the banks.

    CAVUTO: All right.

    But this money was originally intended for the banks, and now we have rewritten the rules, and we`re just giving it out to anyone, right?

    WOOLSEY: Well, no. What — then, we also know that, if we create jobs, then that helps to reduce our deficit. We increase revenues. We increase taxes that are being paid, and we decrease spending on unemployment insurance.

    (CROSSTALK)

    CAVUTO: Well, how about just giving the money — how about just giving the money back to the American people?

    WOOLSEY: Because the people — the American people are in deep doo- doo right now, if you don`t realize it. There are no jobs. People are in the unemployment lines. And we have things we can do, and we need to create jobs. We need...

    CAVUTO: Yes, but, Congresswoman, we have already spent $800 billion on stimulus, right?

    (CROSSTALK)

    WOOLSEY: Well, if I had had my way — if I had had my way, we would have spent a trillion or more.

    (CROSSTALK)

    CAVUTO: Right. You might have wanted to spend more money, but if that was going to have the desired effect, and we are still looking at 10 percent unemployment, and we`re still pouring good money after bad, then maybe the better part of valor would be to put down the spending shovel.

    WOOLSEY: Well, we aren`t — it is not — it is not good money after bad.

    CAVUTO: How do you know? How do you know?

    WOOLSEY: The stimulus is working. It would have been extremely bad right now if we had not helped with the stimulus. And now it is working. Jobs are being created. Unemployment is not as bad.

    CAVUTO: All right, so, leave it at that money that is already spent, that you have argued in the past has been getting out there slowly.

    (CROSSTALK)

    WOOLSEY: But it has not all been spent, and you know it.

    (CROSSTALK)

    CAVUTO: All right. Then, fine.

    (CROSSTALK)

    WOOLSEY: A third of it has been spent.

    CAVUTO: Then, let that money — then, let that money that has already been committed be spent. At least that was money for an express purpose. Now you are tapping into other pots to get money from those pots.

    WOOLSEY: Well, that`s right, because we were very willing to help the banks and help Wall Street. Now we absolutely help — have to help Main Street. And we have to create jobs. And we can create jobs by our improving infrastructure. We all need and know of bridges and roads.

    CAVUTO: But, Congresswoman, do you see what is going on here, ma`am, with all due respect? And I know you have the nation`s interests at heart.

    But you`re saying to the American people, when we say one thing, that we`re going to commit money for one purpose and to one purpose and to a group, we can change the rules after the fact and widen it out.

    If an auto salesman did that to anyone, you would want to make a law to throw him behind bars, wouldn`t you?

    WOOLSEY: Well, this has to come before the Congress. Every one of us works for about 700,000 people. And we will do what we think the people in our districts would prefer us to do. And it will either pass or it won`t.

    CAVUTO: But the people in your district are kind of saying, stick to your word, stick to your knitting, and cool it on the spending...

    WOOLSEY: No.

    CAVUTO: ... because now you have a government watchdog group that is saying, you keep this up, Washington, you are going to be a banana republic.

    WOOLSEY: Well, you keep it up without success. But we will be creating jobs. We will be cutting the deficit. And the sooner we get this money into jobs, the better off our entire nation will be.

    And, certainly, people that live in this country that are standing in the unemployment line, who are working two jobs, who are — are underemployed, they know that we have to do this for them.

    CAVUTO: All right. All right, Congresswoman, very good of you to take the time. We appreciate it.

    WOOLSEY: Thank you for having me.