NEIL CAVUTO, HOST OF "YOUR WORLD": Well, this is not the first time that the government's bet on a loser.
And Presidential candidate Ron Paul says it probably will not be the last. Congressman, good to have you.
REP. RON PAUL, R-TEXAS, PRESIDENTIAL CANDIDATE: Thank you.
CAVUTO: This is just the type of thing, sir that you warn about when the government starts picking and choosing the technologies of tomorrow, what it gleans to be the technologies of tomorrow. Rarely is it right. But we're here. What do we do now?
PAUL: Well, I think what we -- the thing that we have to do is stop all this as soon as possible.
First, we have all the malinvestment that comes from lower-than-market interest rates, which causes our cycle, the business cycle, but then you have all this affirmative action spending, the bureaucrats and politicians directing capital. And they’re incapable of knowing. No one individual knows the market. The market dictates by pricing and who does the best and who makes profits.
So, no, we should be out of that business totally and completely. So, that means you have to give up central economic planning in all areas, instead of becoming you know, the planner and central economic planning and telling which businesses survive. And they get off on a tangent and all of a sudden green technology is the most perfect thing in the world. Well, how do they know?
CAVUTO: I'm sorry, sir.
But here’s their argument -- and not that we were lucky to get any administration types to talk to us today on this. But the argument for this is pretty much what you just ended with there, that the Chinese and some of these others have heavily subsidized solar industries of their own, and in order to compete with them in the open global market, we have to subsidize, that, if we don’t, we’ll be at risk of just losing this whole burgeoning industry to foreign competitors.
What do you say?
PAUL: Yes. Well, if you believe in free trade and the marketplace, let's say solar was really worthwhile and could outcompete everybody.
PAUL: And China wants to give it to us at one-tenth the cost. Why should we deny that to the consumers? We allow poor people to buy tennis shoes from China and they only pay $10, instead of $100. And we don't think that's a tragedy for the poor people.
But I don't even believe that solar panels are competitive. And I think they're selling them in this country mainly because of this superficial emphasis on this need, and people feel like I'm doing my patriotic duty to buy all these panels and they haven’t had a fair shake with the market.
We should have enough confidence in the market; allow the profit motive to decide whether this stuff is successful, instead of the politicians. This is all special interest politics. I think this incident is just proof-positive of why the government should stay out of this kind of business totally and completely.
CAVUTO: While I have you here, Congressman, I had Vice President Cheney here the other day. And your fine name came up, but not in the most flattering of ways. I want you to listen to this.
(BEGIN VIDEO CLIP)
CAVUTO: He even says we make a big deal over if and when Iran gets nuclear weapons, that that's something for them to settle in that region.
You wouldn't support a nominee like that, would you?
DICK CHENEY, FORMER VICE PRESIDENT OF THE UNITED STATES: There are nominees that I'm not enthusiastic about. They haven't gotten the nomination, not likely to get the nomination.
CAVUTO: So you're ruling Ron Paul out?
(LAUGHTER) CHENEY: I'm ruling out the opportunity here today to indicate who I support.
(END VIDEO CLIP)
CAVUTO: He went on to say, Congressman, he doesn't think you have a chance -- I'm paraphrasing here -- of becoming the nominee, so it's a moot point, and that your ideas particularly with sort of pulling up our boots, soldiers' boots, more to the point, from around the world is risky.
What do you say?
PAUL: Well, we'll have to prove him wrong. I'm quite confident about the foreign policy that I advocate.
But we have to prove him wrong by winning some elections. But when he says he will support all Republicans except some, like myself, which means that he wants to be the dictator and say, I will decide who is a true Republican or not. And I say he doesn't have that authority. The people have this authority. And because we're gaining our support, he might just come up short on his desire.
So we’ll see what happens. And I'm very confident that we're going to continue to surprise a lot of people.
CAVUTO: He physically blanched when I passed along your view on Iran that even if it were to get nuclear weapons, that's something over which we shouldn't interfere, that leave it to Israel, it's none of our business. He was shocked at that view.
What do you say?
PAUL: Well, I don't want them to have a nuclear weapon. I don’t Pakistan to have them. I don't want India to have them. And I wish we had a lot less of them.
I didn't like it when the Soviets had 30,000 and I was drafted into the Cold War, which looked like it was going to become a hot war in the 1960s. So, no, I don’t like 'em. But I also understand it. And I also put it in perspective that if Iran gets one nuclear weapon, why are they more dangerous to us than the Soviet system was when they had 30,000 and we were able to live with that?
(CROSSTALK) CAVUTO: Yes, but the argument is that Iran is nuttier and that Ahmadinejad might be very intent on destroying a lot of Iranians for the sake of killing a lot of Americans or what have you.
PAUL: Well, I think that’s a wrong assessment because I don’t think...
(CROSSTALK) CAVUTO: You don't want to be wrong, though. You don't want to be wrong on that one.
PAUL: Well, OK. Then we have to bomb everybody. What I complain about...
CAVUTO: Well, no, no. I'm just distinguishing, is Iran particularly different in that its past and its history suggests it does have aberrant behavior?
(CROSSTALK) PAUL: How could they have been any worse than Khrushchev telling us we would -- he would bury us? And he had the capacity to do it.
So I would say what we ought to be more cautious about is this glib acceptance that we can go to war in another country, because if you want to stop him, you have to go to war with Iran. And that to me is careless war- mongering, very, very dangerous, much more dangerous than another country having a nuclear weapon that's not on the verge of committing suicide.
And, besides, they wouldn't dare with one weapon, and Israel has 300?
CAVUTO: All right.
PAUL: We have to put this in a proper perspective and get back to our common sense.
CAVUTO: Congressman, I wanted to get your view on that.
It’s always good seeing you. Thank you, sir.
PAUL: Thank you.
CAVUTO: Ron Paul.
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