"Face the Nation" transcript, June 10, 2012: Walker, O'Malley, Trumka

(CBS News) Below is a rush transcript of "Face the Nation" on June 10, 2012, hosted by CBS News chief Washington correspondent Bob Schieffer. Guests include: Wisconsin Governor Scott Walker, Maryland Governor Martin O'Malley, AFL-CIO head Richard Trumka, Senator Dianne Feinstein, Rep. Mike Rogers and journalists Bob Woodward and Carl Bernstein.

SCHIEFFER: Today on FACE THE NATION, on the 40th anniversary of Watergate, a new flood of Washington leaks as the president looks for something good to say about a bad election-year economy.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: ... the private sector is doing fine.

(END VIDEO CLIP)

SCHIEFFER: Of course that did not go unanswered.

(BEGIN VIDEO CLIP)

MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: Is he really that out of touch? I think he's defining what it means to be detached.

(END VIDEO CLIP)

SCHIEFFER: Well, on second thought...

(BEGIN VIDEO CLIP)

OBAMA: It is absolutely clear that the economy is not doing fine.

(END VIDEO CLIP)

SCHIEFFER: All that as Wisconsin's Republican governor, Scott Walker, survived an effort by Democrats and big labor to turn him out of office.

(BEGIN VIDEO CLIP)

GOV. SCOTT WALKER (R), WISCONSIN: That voters really do want leaders who stand up and make the tough decisions.

(END VIDEO CLIP)

SCHIEFFER: Does Walker's survival translate into trouble ahead for the president's re-election chances? We'll talk to Walker, AFL- CIO President Richard Trumka, and Maryland's Democratic governor, Martin O'Malley.

Then we'll turn to the firestorm over classified leaks.

(BEGIN VIDEO CLIP)

OBAMA: The notion that my White House would purposely release classified national security information is offensive.

(END VIDEO CLIP)

SCHIEFFER: Late this week the Justice Department opened an investigation. For the latest on that, we'll bring in the chairs of the Senate and House Intelligence committees, Senator Dianne Feinstein and Congressman Mike Rogers.

And speaking of leaks...

(BEGIN VIDEO CLIP)

WALTER CRONKITE, FORMER CBS ANCHOR: First it was called the "Watergate caper." Five men, apparently caught in the act of burglarizing and bugging Democratic headquarters in Washington.

(END VIDEO CLIP)

SCHIEFFER: That was 40 years ago this week. And Bob Woodward and Carl Bernstein, the reporters who broke the story that brought down Richard Nixon, are here to talk about it and give new details they have learned about the case. Because this is FACE THE NATION.

ANNOUNCER: From CBS News in Washington, FACE THE NATION with Bob Schieffer.

SCHIEFFER: And good morning again. Welcome to FACE THE NATION. Wisconsin's Republican governor, Scott Walker, is the first governor in the nation who survived a recall election. And he joins us today from Madison.

Governor, thank you for being with us. You heard in the opening of the program that the president said that the private sector is fine. Mitt Romney of course fired back immediately and used what happened out there in Wisconsin as part of his answer. I want to you listen to what he said here.

(BEGIN VIDEO CLIP)

ROMNEY: Instead he wants to add more to government. He wants another stimulus. He wants to hire more government workers. He says we need more firemen, more policemen, more teachers. Did he not get the message of Wisconsin, the American people did, it's time for us to cut back on government and help the American people.

(END VIDEO CLIP)

SCHIEFFER: So, there you have it, Governor. Is that the message? Do the American people want fewer cops and fewer firemen and fewer teachers or was there a different message, as you saw it?

WALKER: Well, I think it's slightly different. I think in our case what they wanted is people willing to take on the tough issues not only here in Wisconsin but across the country. And I think Governor Romney has a shot if the "R" next to his name doesn't just stand for "Republican," it stands for "reformer."

If he shows my state and he shows Americans that he has got a plan to take on these reforms, I think the real difference with what the president said this week is simple. The president and his allies believe success in government is defined by how many people are dependent on government programs. I think I, Governor Romney, and others, believe that success is just the opposite. How many fewer people are dependent on government programs because they have a job in the private sector where they can control their own freedom, their own destiny and ultimately lead to greater prosperity? That's the real difference there.

SCHIEFFER: Well, do you think Governor Romney is talking about getting rid of more teachers and firemen?

WALKER: No. I think in the end the big issue is that the private sector still needs more help. And the answer is not more big government. I know in my state our reforms allowed us to protect firefighters, police officers, and teachers. That's not what I think of when I think of big government.

I think that the bigger sense is, more government regulations, more stimulus, more things that take money out of the private sector and put it in the hands of the government.

That's not the answer out there. More people on unemployment benefits is not success in America, fewer people on not because we kicked them off but because they have been able to get a job in the private sector, because government got out of the way.

That's the answer to truly stimulate the economy. That's what we saw generation ago when President Reagan signed the Economic Recovery Act of 1981. In '82 we saw at the beginning of that unemployment even higher than we saw even at the height of this recession.

But after it had a time to go in to effect we saw the largest peace-time economic boom in American history. It can happen again.

SCHIEFFER: Let me ask you this. People on both sides out there sort of said, well, you know, I may not agree with the governor on the stand he took, but he was a man of conviction. He stood up for what he thought was right and he was willing to take on people on that.

In your first answer there, you seem to be saying that maybe you said you hope that's what Governor Romney would do. A lot of people -- or some people at least in the Republican Party even are saying that he needs to stand up more for things and not sort of try to be all things to all people.

WALKER: Well, I think he's capable of that. You look at Governor Romney's record in the private sector, he helped turn businesses around. Certainly a decade ago he took what would have been an international disaster with the U.S. Olympics, and turned it around for America and made us great again (AUDIO GAP) Olympics in Salt Lake City.

He has got the capacity to do it. I just hope he takes a page out of President Reagan's playbook in 1980 where it was not only a referendum on the failed policies of President Carter at the time, it was also something where President Reagan laid out a clear plan.

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