Does Obama need a Lone Star lesson in job creation?

This is a rush transcript from "Your World," May 9, 2013. This copy may not be in its final form and may be updated.

STUART VARNEY, GUEST HOST: President Obama in Texas today calling for more spending to help create jobs, and he is making his plea in Texas, a state having no trouble creating jobs on its own, thanks to low taxes and few government regulations.

They say, don't mess with Texas, and, Gretchen Hamel says, for good reason.

All right, Gretchen, the president goes, he's recommending policies which has not been wildly successful.


VARNEY: And he is going to a place which has done the exact opposite from the president's policies with great success. What's going on?

HAMEL: Well, you know, you put it very well.

It's the exact opposite. Instead of President Obama having a message for Texas and for the nation, I think Texas had a message for President Obama and for the rest of the American public. And it's follow our lead in what is working.

And the president believes in exactly the opposite of what has actually worked in Texas. The president has been touting higher taxes, more regulation and more government spending. And what we have seen in Texas is that they have lower spending, less regulations, they have more Fortune 500 companies there. They have 37 out of the top 500 Fortune companies there. Houston is second in home to those next to New York City, and then you have to look at taxes. They have no income tax at all. And they have some of the lowest taxes in the nation.

VARNEY: But I see the point, but I see the president went to Austin, Texas, perhaps the most liberal city in the entire state.

HAMEL: Yes. Oh, it is.


VARNEY: But I just don't -- I don't understand what he gets out of it. What does the president gain by going into the heartland of his political opponents?

HAMEL: You know, I think this is a long-term game the president has. He -- he wants to transform America. Let's remember that. He has talked about that for a long time and he has put Texas on his target list. It's a long-term state that he wants to see the Democrats take over in the long haul. And he sees that there is potential there for him.

And let's not forget they have some members from the House of Representatives here in Washington that are Democrats that are in the great state of Texas.

VARNEY: Don't -- don't you have a poll by your group that says...


VARNEY: ... a large majority, 66 percent of people, they -- they want spending cuts?


VARNEY: They don't want spending hikes.

HAMEL: Absolutely.

When you look at -- and you talk to the American people, they believe a lot what Texas believes, and that lower spending, 66 percent of Americans believe that spending should be cut. They believe -- 62 percent believe that taxes, lower taxes would create more economic growth. So you have the American public wanting something to be done on jobs and the economy, as that is their primary concern, but their ends to that mean is lower government spending and lower taxes.

VARNEY: We hear it.

Gretchen Hamel of the Public Notice, thanks for joining us. Appreciate it.

HAMEL: Thank you.

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