CQ Transcriptswire

ABC’s “THIS WEEK”

SPEAKERS: GEORGE STEPHANOPOULOS, HOST

REP. RAHM EMANUEL, D-ILL.

[*] STEPHANOPOULOS: The day after his barrier-breaking win, President-elect Barack Obama went to work. After a trip to the gym, his first piece of business, convincing Congressman Rahm Emanuel to sign on as chief of staff. The hard-charging veteran of Bill Clinton’s White House worried the job would take a toll on his family and his ambition to become the first Jewish House speaker.

But he couldn’t say not to his new president and old friend. Obama says “Rahm gets things done.”

Privately, he adds that Rahm’s “got his back.” At a roast three years ago, Obama joked about it.

(BEGIN VIDEO CLIP)

PRESIDENT-ELECT BARACK OBAMA: Rahm studied ballet for years. In fact, he was the first to adopt Machiavelli’s “The Prince” for dance.

(LAUGHTER)

It was -- it was an intriguing piece.

(LAUGHTER)

As you can imagine, there were a lot of kicks below the waist.

(LAUGHTER)

(END VIDEO CLIP)

STEPHANOPOULOS: And Congressman Rahm Emanuel joins us this morning from Chicago.

Congratulations, Congressman.

EMANUEL: Thank you. I wish you played the rest of that tape.

(LAUGHTER)

STEPHANOPOULOS: Well, we might get back to it later.

(LAUGHTER)

But let’s begin. You know, you’ve also received some praise from Republicans. Senator Lindsey Graham said you were a wise choice.

But the Republican National Committee also put out this press release. They said, “Obama’s Broken Promise: After promising change, Obama selects hyper-partisan.”

The Republican leader in the House, John Boehner, said, “This is an ironic choice for a president-elect who has promised to change Washington, make politics more civil, and govern from the center.”

Your response?

EMANUEL: Well, President Obama is very clear, as you look at his career, both in the state senate, U.S. Senate, and the campaign that we have to govern in a bipartisan fashion. And if you look at the way his campaign is run and also the ideas, he has always said that we have to be bipartisan. The challenges are big enough that there’s going to be an ability for people of both parties, as well as independents, to contribute ideas to help meet the challenges on health care, energy, tax reform, education.

So that is the tone. That is the policy. And that is exactly how we’re going to go forward. And he has said it for us.

STEPHANOPOULOS: On Tuesday night, Senator McCain pledged to do everything he could to help President-elect Obama. And in your book that you wrote with Bruce Reed, “The Plan,” you had special praise for Senator McCain’s ideas on taking on corporate welfare.

Is that one specific idea that President-elect Obama and Senator McCain can work together on? And what are some others?

EMANUEL: First of all, they had -- as you know, they had a very good phone call. It would be presumptuous of me to say, that’s where they’re going to work. Obviously, President-elect Obama reached out to him.

As I said, they had a good call. They’re going to be talking about a series of things, not only domestically but internationally, on where they can work together.

And the good news is that John McCain has said, you know, as a total patriot throughout the campaign, and cares about his country, he’s going to be supportive of what we’ve got to do.

Because the challenges, as you noted in the introduction, George, whether on the national security front or on the economic, are looming large, and they’re going to require both parties and leaders of both parties, as well as independents, to offer up ideas to how to meet those challenges.

STEPHANOPOULOS: Let’s get to...

EMANUEL: So there will be places, a lot of places to work together. and Senator McCain, I think -- obviously, I wasn’t privy to the conversation -- he has, throughout his career, when the campaign is over, the work of solving the problems of the country begin.

And, I’m sure, will be a partner in helping do that.

STEPHANOPOULOS: Let’s get to some of the news on those economic challenges. Just last night, Speaker of the House Nancy Pelosi and Democratic leader in the Senate, Majority Leader Harry Reid , sent a letter to the administration, urging the Treasury secretary to tap that $700 billion rescue fund in order to help the auto industry.

The White House has already signaled they’re opposed. Is President-elect Obama for using that fund to help the auto industry?

EMANUEL: George, as President-elect Obama has said throughout the campaign, and as I think as recently as Friday, first, the auto industry is an essential part of our economy, an essential part of our industrial base.

Second, they should look at accelerating the $25 billion that was offered for retooling for the industry, going forward.

Third, there are other authorities within the administration they should use at this immediate time.

And, fourth, President-elect Obama has asked his economic team to look at different options of what it takes to help bridge the auto industry so they are a part of not only a revived economy but part of an energy policy, going forward, where America is less dependent on foreign oil.

Those are the parts that is necessary for...

(CROSSTALK)

STEPHANOPOULOS: So the administration...

EMANUEL: ... both the auto industry and the economy.

STEPHANOPOULOS: ... it does have the authority to tap that rescue fund. Do you think they should?

EMANUEL: Well, he has been very clear that they’re part of any sustained economic activity in this country. They’re an industrial base. They employ 3 million Americans. And it’s very, very important that they -- that anything that’s been done, A, you’ve got to tap the $25 billion that’s been offered.

B, there’s all this other authorities within the administration and within the government that they should do to help the industry.

And, fourth, he has asked his own economic team to come up with proposals, at this point, that would help the industry bridge toward a point in the future where they have a restructured, retooled auto industry that is part of not only our -- an essential part of our economy, essential part of our energy policy, which is less dependent on foreign oil.

And that is the most important thing to be done. And I think that the administration needs to -- and Congress -- work with the auto industry, at this time, to deal with the problems.

But, remember, it’s all toward an eye of a very important part, as he has said throughout the campaign, an important part of our economy; that is, the auto industry.

STEPHANOPOULOS: So there’s no reason to think he’s opposed to what Speaker Pelosi and Senator Reid want?

EMANUEL: George, I just outlined the four basis points. There’s authorities, both on the $25 billion that’s been laid out, as well as other authorities to help the auto industry, but all part of a strategy that’s going forward on a retooled auto industry that’s focussed on our energy independence and our economy.

STEPHANOPOULOS: OK. Let’s move on to the stimulus plan. President-elect Obama said he wants that to happen sooner rather than later.

The White House has certainly signaled its reluctance, but they’ve also signaled that, perhaps, if Congress attached the Columbia Free Trade Agreement to a stimulus package, then the president could sign on this year.

Is that something -- is that a trade worth taking?

EMANUEL: Look, first of all, as President-elect Obama said on Friday, when the unemployment numbers came out, you have 10 million Americans who are without work.

Earlier in the week, you had a steep drop-off in retail sales. The American people, right now, need help, economically.

You have a package there that -- economic recovery act that deals with extending unemployment insurance, and given Friday’s numbers, that’s essential; aid and assistance to states to provide health care to those who are losing it.

You don’t link those essential needs to some other trade deal. What you have to deal with is what’s immediate here, and the lame duck is for immediate things that are important. That’s what should be the focus, right now. There’s an economic recovery package in front of the Congress. Washington should get it done.

I think the economic news, as the president-elect has said this week, both retail sales and unemployment, indicate we have a crisis here. There’s not time to waste. Let’s get on with helping the American people.

STEPHANOPOULOS: Speaker Pelosi suggested that the broader stimulus package that they want to consider, on Capitol Hill, in January, should include a permanent tax cut. Do you agree?

EMANUEL: There is no doubt that a larger economic recovery act, as President-elect Obama has said repeatedly, must do two things. One, get people working rebuilding our roads, our bridges, our schools, our basic infrastructure that allows the economy to be very productive.

Second, there should be a tax rebate to the middle class. Why? Because, over the last seven years, American middle class are working harder, earning less and paying more.

Median household income has gone down $2,000, while costs for energy, health care, as well as -- health care, education and energy have all gone up $4,800. It is essential that we focus on the stress and strains on the middle class.

That is what President-elect Obama has said throughout the campaign. You cannot have a strong and resilient economy that does not have a strong and resilient middle class.

They have been squeezed, over the last number of years. And it is essential to have an economic strategy that strengthens them going forward.

STEPHANOPOULOS: I know that...

EMANUEL: Those are the core of his policies, whether that be in education, whether that be in health care, whether that be in the tax code -- all focused on a middle class that is strong and resilient, going forward.

STEPHANOPOULOS: I know that the president-elect also believes he has the right economic plan, overall, which includes a tax increase on wealthy Americans.

But is he willing to consider postponing that tax increase until the country has emerged from the recession?

EMANUEL: George, President-elect Obama and Vice President -- President-elect Obama and Vice President Joe Biden have all said that their economic plan at this juncture is based on giving 95 percent of the working Americans a tax cut, about $1,000.

EMANUEL: It is a net tax reduction.

It was built around this basic premises, as I just outlined, that the fact over the years, the middle class have been squeezed consistently by rising costs on education, health care and energy, as well as a diminishing income. And their median household income has declined $2,000. And you must have an economic program that focuses on them.

It was not built for any particular, you know, data at this particular moment. It was built on the fact that the middle class had been hurt, and to have a strong recovery and a sustained recovery over a period of time means that the middle class must be the focus of the economic strategy.

STEPHANOPOULOS: And I understand that, that’s going to be the focus, but clearly, you just said that the president-elect is going to move on the middle class tax cut right away. I’m just asking if he wants to postpone, not cancel but postpone, the tax increase on the wealthier Americans.

EMANUEL: The core economic part of his strategy is the middle class. That is the basis of it, George. And the economic plan was built on that. And whether -- when it’s dealing with, A, the first year of the tax cut, but also the immediate things of dealing with the reforms that are related to both education, health care, energy, taxes.

Those immediate -- those issues that are usually referred to as long-term are immediate, and this opportunity in crisis provides, as the president-elect has said repeatedly, the opportunity to do things that Americans have pushed off for years.

Health care costs for median -- seven years ago, the health care costs were $5,000 plus for a family of four. Today they’re $12,000. Today, we export $700 billion of our wealth to foreign countries. You cannot sustain an economy for the middle class and for the entire country in which two issues -- just take energy and health care -- are really squeezing the middle class.

So this provides an opportunity to finally tackle the issues that for too long have been postponed, kicked down the road, kicked down the road basically. And so that’s what he says. We should use this opportunity, this crisis, to finally tackle the issues that have hurt the economy, both in the immediate basis as well as over the long term. STEPHANOPOULOS: I think we’re going to put off that question for now. But let me just ask two quick political questions before I let you go.

No. 1, Senator Reid...

EMANUEL: Thanks.

STEPHANOPOULOS: ... signaled that he’s going to -- wants to deny the chairmanship of the Homeland Security Committee to Senator Lieberman. Do you think that’s appropriate, or in the interests of getting beyond this election should Senator Lieberman be allowed to retain his position?

EMANUEL: This is -- look, as the chief of staff for the new president, he’s going to be focused on the basic problems facing the country. As you outlined, it’s the first time in four decades we have -- there’s going to be a transfer of power while you have American troops fighting not just one but two wars.

Second, we have a huge economic crisis here at home that is looming large. That is going to be the focus of his policies.

What happens on the House and Senate, on chairmanship is their business. But the business of what we have to do when we get sworn in is focusing on what the American people care about. Priority one is the economy.

STEPHANOPOULOS: Final question, Barack Obama ’s confidante and transition co-chair Valerie Jarrett. WLS TV in Chicago reported this morning that she’s his choice to become the new senator, to replace him as senator from Illinois. Is that true?

EMANUEL: I haven’t seen that story. She is a very, very dear friend, as you know, of the president-elect, and I don’t think there’s been any decision or any discussion that I’ve seen to that basis. But people should know that Valerie Jarrett is -- and people do know -- she is a very dear friend of the president-elect and a valuable ally of his, not only prior to running for president, in his Senate life, and just personally for Michelle and Barack.

STEPHANOPOULOS: OK, Congressman Emanuel, thanks very much for your time this morning.

EMANUEL: Thank you.

END

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CQ Transcriptswire

CBS’S “FACE THE NATION”

SPEAKERS: BOB SCHIEFFER, HOST

REP. RAHM EMANUEL, D-ILL.

JOHN HARRIS, POLITICO.COM

DAVID BROOKS, NEW YORK TIMES

[*] SCHIEFFER: Today on “Face the Nation,” the transition of Barack Obama .

It’s decision time for the president-elect, but the problems won’t wait until he’s sworn in January 20th. He must decide now what role he’ll play in the coming lame-duck session of Congress, which is considering yet another rescue package for the economy. What about a bailout for the auto industry? How should he deal with the Bush White House? All questions for his new chief of staff, Congressman Rahm Emanuel .

We’ll get analysis from David Brooks of the New York Times and John Harris of Politico, then I’ll have a final word on how communicating sometimes means remaining silent.

But first, after the election on “Face the Nation.”

And good morning again. Joining us this morning from Chicago, Illinois, Congressman Rahm Emanuel , who will be the new president’s chief of staff at the White House. Congressman, welcome to “Face the Nation.” I hope we’ll see you many times along the way here.

EMANUEL: Good to see you, Bob. How are you.

SCHIEFFER: Let’s get right to it. How soon is the president- elect going to get his economic team in place?

EMANUEL: Well, he is -- President-elect Obama, as you saw Friday, met with a group of economic advisers outside to talk about the economy and get a report from them on what they’re seeing and hearing. He has been working tirelessly with the transition team on the development of his economic team. As you heard, he said Friday, Bob, which is he wants us to move with deliberate haste-- emphasis on deliberate-- as well as equal emphasis on haste.

And he has been going through the names. The transition team has been developing. Those names earlier than the election, and so he has a good group of people that he’s looking at.

But you should know -- one cautionary note. In past times, there hasn’t been announcements until December. But he has already been meeting, going through the names. He’s already participated in a couple of meetings to review people for key economic slots.

SCHIEFFER: But in past times, we haven’t had this severe economic crisis. In past times, we haven’t had a lame-duck session of the Congress looming.

Just give us a little timeframe here. I’m not asking for a specific date. Do you think he’s going to begin to make some announcements in the next week or so, or before December? I mean, just a ballpark.

EMANUEL: Well, as the chief of staff, I’m not going to get in front of the president, Bob. I think the -- let’s cue off of what he said Friday. He wants us to move with deliberate haste, equal emphasis on both deliberate and haste. He has those -- he has names in front of him. He’s been reviewing those names. He’s known a number of the people. And he will be making the decision. Obviously, when we’re ready or when he’s ready, we’ll hear about it.

SCHIEFFER: All right, so we’re not going to get an answer to that this morning.

EMANUEL: No.

SCHIEFFER: OK. The second thing. This lame-duck session of the Congress, which is quite unusual for a transition here, is going to start Monday, a week. The Congress is going to be thinking about some sort of economic stimulus package.

How will he insert himself in that? Is he going to come? He’s obviously a member of the Senate. He’ll be here. I assume he would vote on whatever the Senate comes up with. But is he going to take a leadership role in that?

EMANUEL: Well, listen. Obviously, what you said, Bob, on the first question, which is about creating the economic team he wants. He has to -- the president-elect has to -- and what we’re going to help him do is set up his White House, as well as his cabinet.

The second is, he’s asked, as he said Friday at the press conference, for the Washington now to begin to work on the economic recovery act that deals with the Friday unemployment numbers that we have now, 10 million Americans without work who are ready to work. The retail sales that show a decline in sales across the country where there’s a great deal of contraction, and the fact that people are losing -- because they’re losing jobs, losing health care.

So he said there’s not a time to waste for Washington now to get to work and do that -- its work on helping the American people through these -- through this basic contraction that is going on in the economy, this recession. And it’s time for them to get that going.

And he called for them to pass an economic recovery act.

SCHIEFFER: Well, I understand all that. But is he going to be on the Senate floor, as a senator from Illinois, or will he stay in Chicago and work on his economic team? I mean, surely you can give us a little detail or a little insight into that?

EMANUEL: Bob, I think that the basic approach has been he’s going to be here in Chicago, setting up his economic -- not only his economic team, but the policies he wants to outline for the country as soon as he gets sworn in, so we hit the ground running, and it’s imperative that this time in Washington be used to deal with the type of reports that we just saw last week.

EMANUEL: There’s two different reports showing the type of constraints and strains that are being put on the economy that Washington should get to work passing that immediate action to help both states provide health care for those who are losing it, unemployment insurance for those who are losing their jobs.

That economic recovery act exists today in Washington. It should be worked, with people from both parties, to getting it done and getting to it the president’s desk so we can help the American people who are hurting right now.

SCHIEFFER: So do I take it he’s going to leave the lame duck session to the Senate and to the congressional leaders; he’s not going to take any role in that?

EMANUEL: Well, he called for action. And I think, you know, as you said, this is an unusual time.

And so we have -- he has repeated, A, you have Washington ready to work to get to work to help the American people. We have one president at a time that should work on -- he’s going to, as he did on Friday, encourage Washington to move immediately, because of what’s happening to the economy, which means what’s happening to the American people.

And he will also, do because he doesn’t want to waste a single day getting his Cabinet, his government and his policies in place to move forward on January 20, as soon as he is sworn in and as his Cabinet is sworn in.

(CROSSTALK)

SCHIEFFER: Does he intend to urge the White House and the members of Congress to help in some sort of a bailout plan for the auto industry?

They say they’ve got to have some help, here.

EMANUEL: Right.

SCHIEFFER: I know he says they need to be part of any economic plan. But is he going to be for, and will he advocate that the White House go along, and the White House team go along with what Senator Reid and Congresswoman Pelosi are advocating?

EMANUEL: Well, first of all, Bob, President-elect Obama has repeated that there’s one president, one administration at a time, and so you don’t want to get in front of that.

Second, as it relates to the auto industry, he has said throughout the campaign, and as recently as Friday, they are an essential part of our economy and our industrial base. Second, Washington needs to look at fast-forwarding the $25 billion that has been provided for retooling the factories for basically a more fuel- efficient auto fleet.

Third, there are existing authorities within the government today that the administration should tap to help the auto industry.

Fourth, President-elect Obama has asked his economic team and advisers to come up with a series of proposals that would help the auto industry retool, restructure, and refit, all with an eye toward a future where you have an auto industry that is part of a strong economy and also focused on reducing America’s dependence on foreign oil.

So all four of those have been -- he has called for, with the primary premise underscoring that you have the auto industry as an essential component of our economy.

SCHIEFFER: Will he push for permanent tax cuts for the middle class, as president?

And would he consider postponing the tax increases on the upper- income folk until we get past this economic crisis we’re in right now?

EMANUEL: Let me take both of those questions. First of all, President-elect Obama’s economic plan was developed on the premise that the middle class is working harder, earning less and paying more.

Median household income has declined by $2,000, while energy costs, health care costs, as well as educational costs have all gone up $4,800.

And the basic strategy was we need to deal with the stress and strains on the middle class. So his economic plan, not limited to but focused on the tax side, is to provide the middle class, working Americans, 95 percent of them, with $1,000 tax cut.

His tax plan is a net tax reduction. He was focused on the middle class.

In addition to that, because of the size and the scope of the crisis, we must deal with our educational reforms, our energy reforms, so we’re not exporting $700 billion of our wealth, that we reduce our dependence on foreign oil while increasing our investments in alternatives; deal with health care reform so we can both contain costs and expand coverage.

All of those, not limited -- as well as a tax reform package that is both progressive, is fair, as well always simplified.

All of those are part of an economic strategy, not just one component, that takes us both not only dealing with the immediate crisis we have, but puts America on a long, sustained recovery and strengthens America for the long term, economically.

SCHIEFFER: When he takes office, obviously, all the things that he promised to do in the campaign, he’s not going to be able to do because of the pressure of this economic situation.

During the debates, I asked both Senator Obama and Senator McCain to give us some priorities, because we asked people to run the numbers on all of the things that they had promised.

SCHIEFFER: And when you add up all of the costs and the spending cuts, it came out that both of their programs would add at least $200 billion to the current deficit.

What are going to be his priorities? Obviously he can’t -- or will he try to do everything at once? The big-bang theory as some are saying, or is he going to put some things first and put them in some order? Give us some sense of that.

EMANUEL: Well, first of all, I would add, Bob -- let me say this. There’s a premise to the question that somehow the challenges we have require that you postpone things. I don’t -- look, we’ve had a health care crisis in this country for well over 30 or 40 years.

SCHIEFFER: But let me just interrupt here. We are also facing what could be a $1 trillion deficit. That’s different, Mr. Emanuel.

EMANUEL: Bob, that’s true. But let me then go at this point. Everybody, Democratic and Republican economists, as President-elect Obama has cited, agree we need a short-term economic recovery act that helps Americans both go to work, by building our roads, our bridges, our schools and our water systems, that have all basically been denied funds over the years.

Second, it also includes a tax rebate for middle-class families who have had strain. Over the long-term, you must have an economic strategy that reforms our education, our health care, our energy, our tax code, as well as putting fiscal discipline back in our economic toolkit.

So you have an immediate problem, as well as a long-term strategy for a sustained economic growth over the long term that strengthens America rather than weakens it.

And here is where the philosophy, I think, is important. The crisis we have today, as he has said, is an opportunity to finally do what Washington for years has postponed and kicked down the road.

We have postponed dealing with an energy crisis since 1974. We had a crisis; we kicked it down the can, and now we are exporting $700 billion of our wealth.

We had a health care crisis. Health care costs were $5,300 for a middle-class family. Today, the premiums are $12,000 for a middle- class family. These are, just taking those two examples, these are crises you can no longer afford to kick down the can. The crisis we have here, the American people know we have one. And they are ready and willing to start to tackle those problems. You cannot afford now to kick those down the can any longer. We have a short-term need of getting the economy moving, which means getting the Americans working, and also a long-term objective of putting us on a sustained road for economic growth over the long term.

SCHIEFFER: All right. Well, perhaps we’ll find out another day how he will line those up and what priorities he will set.

Thank you, Rahm Emanuel . Hope to see you again.

Back in a minute, and we’ll do some analysis on all of this.

(COMMERCIAL BREAK)

SCHIEFFER: And we’re back now with David Brooks of the New York Times, the columnist there. And John Harris, who is the editor of Politico.

Well, gentlemen, I have to preface this by saying I don’t think we found out a lot this morning from Rahm Emanuel . But let me ask you this. The kind of the thing that I found most interesting, he would not say what role Senator Obama is going to play in this coming lame- duck session of the Congress. Why was he being so coy about that, David?

BROOKS: Suddenly the new coy Rahm Emanuel . You know, next thing he’ll be Mr. Peaceful.

He’s been reading the history books. And FDR faced this exact problem in 1932. He was elected, people wanted him to get immediately involved, before the inauguration, and solve the crisis. And he held back, and he took a lot of political hits for it. Because he said on inauguration day, I want that to be the clean break, not election day. And I want to be able to come in on inauguration day totally fresh.

BROOKS: So that’s what Obama is going to do, I guess. I think he’ll take some more hits, because people are so excited right now. They want something to change right away. And if he’s Mr. No, no, no, I’m not going to Washington, I’m staying back, I think he’ll some take political hits.

SCHIEFFER: Well, did you take it from that, and I’ll go to you, too, John, to get your answer on this, from that that Barack Obama is not coming here for this special session? I mean, I didn’t know what to make of that?

HARRIS: I didn’t hear an answer to that. So I’m assuming that it sounds like he’s going to stay away, or maybe come in only at the last minute.

I think what -- as David described it, is is exactly right, and also smart for Obama, whatever hits he takes. The last thing he wants as a president-elect is accountability without power. So if he gets in the middle of this, he’ll have accountability without the actual power.

And I think also, there’s a question of atmospherics. He wants the nation -- and I think the nation is ready to start seeing him as a president. And so to be down there on the Senate floor haggling over deals, he does not want to be seen as a legislative figure or a deal- making figure.

SCHIEFFER: So what are we going to see in these next months, David? And what is going to happen here?

BROOKS: Well, there’s a huge debate going on in Democratic circles and in the Congress as a whole, how do you -- how fast do you go? And you mentioned in your commentary with him and with Rahm, and I got the impression from him they want to do everything at once. They want, as you called it, the big-bang theory.

I think that’s a disastrous mistake. You’re going to tell me you’re going to solve an incredibly difficult economic crisis, at the same time you’re going to raise -- reorganize 14 percent of the American economy, health care? I think that would be a gigantic overreach.

And there are other people on the other side who say you do this in two stages. The first stage of your administration is stimulus and building faith in Washington. And that includes energy and tax cuts for the middle class. That’s your first. And then after a few months where you’ve built some faith in Washington, then you tackle the other stuff. The health care plan is going to cost at least $100 billion a year, probably way more than that. So if you pile all this together in the first few months, in my opinion you’re going to freak out the country.

HARRIS: The only way he could pursue the big-bang theory is if all the talk about wanting to create a bipartisan tone in Washington, he’s willing to sacrifice that. Because it would only be on an all- Democratic basis that you would get an agenda that ambitious done.

I do think there are sort of two theories of presidential power at stake here. One says you’re never more powerful than on January 21st, the day after inauguration, and you spend down that account, and you better get as much as you can, because it’s going down.

The other, as David suggests, there’s a slow but steady approach that says a president can, by doing modest things first, getting them done, being effective, build up reservoirs, and so you can actually have more leverage, more power in your two, three and four than you do in year one. And we are really looking for clues as to which theory Obama believes.

SCHIEFFER: You know, I always remember what Lyndon Johnson used to say. He said a president has a year. He said whatever a president is going to do, he has to do it in the first year, because he said the second year the Congress starts thinking about itself, starts thinking about getting...

HARRIS: Well, Bill Clinton believed that, and there was a lot of overreach in that first year, where they did try to do too much. And his popularity went down and down and down. He was actually -- had more power after he got his clock cleaned in 1994.

Barack Obama at every turn wants to avoid Bill Clinton’s experience in the first year.

SCHIEFFER: And Clinton got off on gays in the military as his first issue and...

HARRIS: Even in the transition (inaudible)...

SCHIEFFER: ... and really sort of bogged down in that and really never recovered, and went on to lose the Congress in two years.

BROOKS: Obama, I think, will avoid that mistake. But there are only 24 hours in a day. The economic plan is going to be phenomenally complicated. We’ve thrown $300 billion in stimulus at it this year. We have got a $750 billion bailout. So far, there’s little evidence that any of that has worked. Banks are not lending. So you have got to solve that problem. That’s huge.

Then the energy problem. If we could have solved the energy problem easily, we would have done it for 30 years. That’s incredibly complicated.

And then health care. That’s incredibly complicated. You’re going to do all that at once? I just find it mind-boggling.

SCHIEFFER: Let’s talk about the other party, the Republicans. This is like after the ‘64 election, when Lyndon Johnson beat Barry Goldwater. People said this is the end of the Republican Party. Of course, it wasn’t. Where does the Republican Party go from here?

BROOKS: World of pain. A generation of pain. ‘64, it was so much better than now. In ‘64, they had a coherent belief system. They lost, they didn’t persuade the American people about it, but they understood where they wanted to take the country.

Now it’s just a circular firing squad, with everybody attacking each other, and no coherent belief system, no leaders. You’ve got half the party waiting for Sarah Palin to come and rescue them. The other half is waiting for Bobby Jindal , the Louisiana governor, to come rescue them. But no set of beliefs. Really a decayed conservative infrastructure. It’s just a world of pain.

SCHIEFFER: John?

HARRIS: The Republicans have got to decide, are they looking for another Ronald Reagan to carry them out of the wilderness? By the way, that takes -- often took -- took Reagan years, a full generation to do that. Or are they looking for a Republican version of Bill Clinton? You basically got with respect to the new administration, Obama, the hell no wing of the party and a yes but. The hell no is going to fight him every step of the way, in order to make an ideological -- to get that message that David says is lacking.

HARRIS: The other will say, yes, we agree with a lot of his objectives; we want to do it in a somewhat different way.

It’s really a -- I think goes right to a tactical and philosophical fault line in the Republican Party.

SCHIEFFER: Well, is Sarah Palin -- is she to be taken seriously, do you think, David?

BROOKS: Well, the -- the “hell, no” group is rallying around her. It depends on who she is. And this past week, I don’t think, has been particularly flattering to her, the McCain people -- and the whole thing has been a complete disaster.

They’ve attacked her for her lack of human capital and for being a diva. I’m not sure it’s all fair, but one would not say she has spent her life preparing for an intellectual revolution to lead the party out of the wilderness. Let’s put it that way.

And I’m with the “yes, but.” You know, this is where the American people are. And, fundamentally, the conservative movement failed -- and I’ve been in it my entire life -- because it hasn’t addressed the problems of today, the rise of China and Russia, the rise of inequality, energy, health care.

It’s great to worry about Reagan. I loved Reagan, but those days are over.

SCHIEFFER: All right. Well, gentlemen, thank you very much. I’ll be back with a final thought in just a minute.

(COMMERCIAL BREAK)

SCHIEFFER: Finally today, seeing the television picture of that crowd in Grant Park that had come to celebrate Barack Obama ’s victory was a sight I will never forget.

But I was disappointed, at first, in Obama’s speech. I was expecting another of those rousing, old-time, “Yes, we can” orations that had electrified crowds during the campaign.

He made a fine speech, I thought, but why didn’t he ramp it up, as he had so many times before? Where was the punchline for this one?

Well, the next day, I read something in the paper that helped me understand that wasn’t what he had in mind Tuesday night. I read that his campaign had planned a big fireworks display, but Obama had said no. He understood that the rally that night would speak for itself. There was no need to gild the moment with fireworks, nor would a stem-winding speech that rubbed victory in his opponent’s face have been appropriate.

Tuesday, in his mind, was the night to say thank you, not gloat. The faces in the crowd would tell the story.

That restraint, Obama’s understanding of how it would all look, an ability so often lacking in today’s politicians, may well but what brought him to victory.

Time and again, in a hard-fought campaign, there were lines Obama could have crossed but didn’t.

SCHIEFFER: He made no issue of McCain’s age. He raised no questions about his health. He never went after Sarah Palin . He knew how it would have looked.

Communicating, cutting through, connecting with people is more than just the words we choose. It also means understanding when no words are necessary.

Back in a second.

(COMMERCIAL BREAK)

SCHIEFFER: And that’s our broadcast. We’ll see you next week, right here on “Face the Nation.”

END

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Nov 09, 2008 11:26 ET .EOF

Source: CQ Transcriptions

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