Updated

This is a rush transcript from "Glenn Beck," February 8, 2010. This copy may not be in its final form and may be updated.

GLENN BECK, HOST: Oh, look how beautiful it is. There it is — the sunny skies of California. You see —- what you can't see there are the streets and the potholes and everything crumbling, the wailing and gnashing of teeth.

By the way, we're in California all week and I have the red phone with me. As you can see — it's — I didn't even plug it in, because it's — I don't like being far from my red phone but I have actually, in the studio, do we have — do we have Harry there? Can we show Harry?

In the studio in New York — there he is. Hi, Harry. We just have him reading — reading up on Mao. You know, that way, in case, you know, they call, he's got something to talk to them about. You know, we get something wrong, the administration can call. They have the number to the red phone and we are manning it.

Now, California is important because — as California goes, so goes the rest of the country. And California I think is sliding into the ocean in two different ways. We wanted to talk to some people who think they have a clue as to, you know, what to do, how to do some CPR. Although, I thought about bringing Penn Jillette on — you know, maybe a magician would be able to resuscitate California at this point.

Carly Fiorina is running for the Senate. She's a Republican and she is here now.

How are you?

U.S. SENATE CANDIDATE CARLY FIORINA, R-CALIF.: I'm great. Thanks for having me, Glenn.

BECK: Good to see you. Absolutely.

• Watch Beck's interview

OK. I'm skeptical of every single politician I meet — every single one.

FIORINA: I am, too.

BECK: Are you?

FIORINA: And I'm not one.

BECK: Yes, well, you're not yet. But have — I mean, can you tell me, first of all, how do you go to Washington and not lose your soul?

FIORINA: Well, I think that's a really important question. And I think you go to Washington and not lose your soul by staying in touch with the people who sent you there. But you know, I've never run for public office before.

And our Founding Fathers intended ours to be a citizen government — by, for and of the people. Our Founding Fathers were businesspeople and farmers. And they went to Washington and they left after a while with great relief. And I'm sure, if I'm lucky enough to be sent to Washington, I don't want to stay there forever.

BECK: Oh, yes.

FIORINA: But things are too dire now. Citizens have to get involved. And as you pointed out, so goes California, so goes the nation, because I see policies being pursued in the nation's capital are the same policies that got this state into deep trouble.

BECK: This state — could you have — could you have run Hewlett-Packard from here? Did you have started Hewlett-Packard here?

FIORINA: Well, I did run it for six years here in California. And they made it very difficult.

BECK: I mean, today. Could you do it today?

FIORINA: Could you start it — no. Bill Hewlett and Dave Packard could not start Hewlett-Packard today in California. I started out as a receptionist in a little company called Marcus & Millichap here in California, nine people. I typed and filed and answered the phones. That company couldn't be started today.

BECK: I — you know, I talked to you off the air that I looked at California — I grew up in the Pacific Northwest. I love California. It's great.

FIORINA: Well, we all love California.

BECK: Yes, it's great. Yes.

But I love — I love California. But — I mean, I looked at starting, you know, putting my business here. There's no way. There's no way. I'm in Manhattan.

FIORINA: Yes.

BECK: I can't do business here because, at least occasionally in Manhattan, you'll have somebody who says, "Hey, by the way, we don't want to suck the blood out of business."

FIORINA: Well, and it's not just the policies here in California.
There are also policies that come from Washington. So, for example, this morning was — I was with a group of businesspeople of family-owned business. They immigrated — the grandfather immigrated from Italy many years ago.

The government, because of Endangered Species Act, something the Senate oversees — because of the Endangered Species Act, 30 acres of their land was confiscated by the federal government and they have to pay taxes on it. Why? Because we're trying to protect a fly. That's insane.

BECK: So, how do you stop this?

FIORINA: Well, I think we have to stop it with two very simple but profound things. First, no more money, government. No new taxes on anything. It's why I sign the taxpayer protection pledge. But, you know, if your teenager has a spending problem, what do you do? You cut off the money.

BECK: But there's — let me show the — I'm sorry to get you into the shot. Don't worry about it. This is a 5:00 show.

(LAUGHTER)

I'd just show — show the chalkboard here. I mean, look at this. They'll say — everybody will tell you, the Wall Street Journal just, I think, came out — and it was today — oh, you got to spend money. You got to have.

FIORINA: That's why I believe —

BECK: You got to raise taxes, they say.

FIORINA: Wrong. Wrong. Because what happens every time we raise taxes, then people in Sacramento or in Washington say, "Oh, whew, we can put off the discipline and the tough choices necessary to actually cut spending."

So first, no new taxes. Secondly, we have to return to the people who create the American dream — innovators, entrepreneurs, small business owners — the ability to actually run their businesses. And we're killing that today.

And third, we actually have to cut spending. Cut it. Not freeze it.

BECK: What are you going to cut?

FIORINA: Well, let's start with the fact that in President Obama's budget, federal government employees are growing by 14.5 percent. And those are more bureaucrats to do more things. Let's start with the fact that there are many bipartisan estimates that suggest that there's half a trillion dollars worth of waste in the federal budget today.

The GAO estimates that half of the purchases on government credit cards are waste or for fraudulent purposes. You know, lingerie, jewelry. I mean, that's our money. That's our money. Or —

BECK: I don't want to think of the people at the (INAUDIBLE) with lingerie.

FIORINA: Well, exactly. Or the census ad that you just referenced — I mean, 2.5 million bucks is real money.

BECK: Yes, I understand that. But here's the — here's the problem.
We have — go back and read — I read it last night, Calvin Coolidge and his — first, his inaugural speech. OK?

He knew what the problem was. The problem was the progressives. The problem in Washington are the progressives. The problem in California, the progressives. And the progressives in the Democrat and the Republican Party.

FIORINA: Yes. And so —

BECK: Until you — until somebody stands up and says, "You know what, John McCain and Barack Obama had many of the same traits."

FIORINA: Well, and let's start with the most fundamental. You know, one of the things that you have done so well and so many other citizens across this great nation have done, and they're here in California, too, where voters say the number one issue.

BECK: Oh, I know.

FIORINA: ... is jobs and out-of-control government spending, is to give people the information.

So, for example, technology can help. I'm from the technology industry. Let us put every agency budget up on the Internet for every citizen to see. People would be outraged. Let us put every piece of legislation up on the Internet for everyone to see before they vote on it.

BECK: People know. People know. They just don't think that anybody is going to pay attention to them.

FIORINA: Well, and — well, I think we demonstrated over the last several months, you demonstrated, that when the pundits and the politicians discount the American people, they do so at their own peril. You know, the old movie, "I'm mad as hell and I don't want to take it anymore" — that's how they feel in this state and in this nation.

BECK: I know.

FIORINA: People all across California who love this state are saying, "You know what? We know what happens with bigger and bigger government, higher and higher taxes, and more and more regulation." We drive jobs away.

BECK: OK. So, you tell me — I know I have to go — but will you tell me that you're not going to be in bed with because — I mean, here you are from California. You're not going to be in bed with the Sierra Club and Save the Whales people and —

FIORINA: Barbara Boxer who is the opponent.

BECK: But you won't. You tell me now —

FIORINA: But no, I certainly will not.

BECK: You won't get into bed with all of those people.

FIORINA: No.

BECK: OK.

FIORINA: This is about the voters of California wanting someone in Washington who's not a career politician, who's not afraid to make the tough choices or ask the tough questions, and who actually knows how the real world works. I know how the real world works. It's the world I've been living in, like you, for the last 55 years in my case.

BECK: Good. All right. Thank you very much.

FIORINA: Great to see you.

BECK: Great to see you.

FIORINA: It's nice to see you.

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