Henry Paulson's Goldman Sachs Stripes

This is a partial transcript from "Your World with Neil Cavuto," May 30, 2006, that was edited for clarity.

NEIL CAVUTO, HOST: He was the cheerleader for our economy, but maybe not cheery enough.

Treasury Secretary John Snow out, Goldman Sachs chairman Henry Paulson in. Even Democrats like this choice, Senator Chuck Schumer calling the president's nominee, in his words, the best pick for America. But does Paulson have enough time to get the president's message out?

With us now, former Commerce Secretary Don Evans, who was also said to be on the short list this Memorial weekend, when he was spending time hobnobbing with the president of United States at Camp David.

But you didn't want it, right? Is that the deal?

DON EVANS, FORMER COMMERCE SECRETARY: Hey, listen, I wouldn't have picked myself, if I knew Hank Paulson would do it.


EVANS: I will tell you, what a great choice. What a spectacular choice. And I am just thrilled that Hank is willing to...

CAVUTO: So, what happened today, Don? Any correlation between the markets selling off...

EVANS: Zero. Zero. None.



EVANS: None.


EVANS: I mean, the market is, as we are talking earlier, strong. I mean, the economy is strong.

When you have 4.7 percent unemployment, when you have got five millions job created in the last two-and-a-half years, the growth is spectacular. This economy is the marvel of the world.

CAVUTO: But it must be falling on deaf ears. What's the deal?


EVANS: Well, you know, I don't know.

I mean, gasoline prices out, obviously, you have got people a little bit excited. But it is hard to get that message out there through the war against terrorism. I mean, that is what dominates the space on the TV screen.


CAVUTO: Well, a confidence survey bears out what you are saying.

So, am I hearing you right, that the job would be easier for Paulson if the numbers and the improvement got more noteworthy in Iraq?

EVANS: Well, I think so, yes, yes, because, look, if you look at the numbers of the economy, we are the marvel of the world. We are the engine of growth for the world.

It is just phenomenal, the kind of growth we have been experiencing since the president started implementing his pro-growth fiscal policy, tax cuts in '02, '03, '04. So, yes, I think it would make it easier.

But you know what, Neil? You have just got to stay out there. You have got to be out there every day, telling America that, you know, there is lots of reason to be proud of where our economy is. And I tell you what else. It is important to deliver the message how we have to continue....

CAVUTO: But you need someone who is good at delivering that. And I knew Paul O'Neill. I knew John Snow, both wonderful, decent men, but maybe not good on the cheerleading thing.

But Paulson doesn't strike me as a cheerleader, but he doesn't want middlemen, I'm told, telling him what to do. He wants to be his guy at Treasury, calling the shots. Will he be?

EVANS: What he knows is, we have got to make sure we don't take this strong economy for granted, and we have got make sure we are pursuing the kind of policies in this country that make sure we are competitive as we move into the 21st century.

CAVUTO: But isn't his Wall Street land worried about these deficits? Is that part of the problem, too?

EVANS: They are worried about the entitlement liabilities, those deficits that we look at out in the next decade. Those are the real deficits.


CAVUTO: And that is going to be his agenda?

EVANS: That's his agenda.


EVANS: That's his agenda.

You know, the Financial Services Forum conducted a survey among its CEO members, and, what are the big issues you are worried about with respect to the economy?

CAVUTO: Well, that is where you and Paulson kind of hooked up, right?


EVANS: That's where we became very good friends. I saw him in action. I talked to him about the global economy, the concerns and challenges about our own domestic economy.

And right there at the top of the list are entitlement liabilities, what the president has been talking about since he ran for office in 1999 and 2000. What are we going to do with Social Security as we move into the next decade and baby boomers begin to retire? What are we going to do about Medicare and Medicaid?

It's those entitlement liabilities, those federal debt issues that Wall Street is really concerned about. It is not today's federal deficit. I mean, you know, yes, look at it and it is something to think about. It is not today's federal debt level. It is really the entitlement liabilities that we face as we enter into the next decade.

CAVUTO: Because then everything hits the fan, right?


CAVUTO: All right.

EVANS: Absolutely.

CAVUTO: Don Evans, always good seeing you.

EVANS: Thank you, Neil.

Content and Programming Copyright 2006 FOX News Network, Inc. ALL RIGHTS RESERVED. Transcription Copyright 2006 Voxant, Inc. (www.voxant.com), which takes sole responsibility for the accuracy of the transcription. ALL RIGHTS RESERVED. No license is granted to the user of this material except for the user's personal or internal use and, in such case, only one copy may be printed, nor shall user use any material for commercial purposes or in any fashion that may infringe upon FOX News Network, Inc.'s and Voxant Inc.'s copyrights or other proprietary rights or interests in the material. This is not a legal transcript for purposes of litigation.