GEORGE
STEPHANOPOULOS: We're going to get more into how divided government
will work or won't work. We're going to talk to Tea Party leader Dick
Armey, who is chairman of FreedomWorks and the author of Give Us
Liberty: A Tea Party Manifesto. And here in the studio, Democratic
strategist, James Carville. And James, I want to begin with showing your double on Saturday Night Live, talking about the prospect of a Republican House.
"JAMES CARVILLE" ON SNL: Let them have the House. I mean, have you ever
seen the House of Representative. Good riddance. Have you ever seen the
House of Representatives? It's like a waiting room for jury duty. When
you see the House on C-SPAN, it's like a family reunion that's only
weird uncles.
STEPHANOPOULOS: Well, you were joking there. But, could having
Congress change hands be good for the President, good for the party in
the long run?
CARVILLE:
I don't feel like it today. Congratulations to former Congressman Army
who was instrumental in starting this Tea Party thing, which had a lot
to do with this. It may be. But there's not going to be a lot of common
ground. And whatever side gets its, sort of, sea legs first and is able
to adjust, it will be a really, really new reality in Washington will be
more successful. There's some reasons why the White House can. It's
more unified. It's easier to do. The Republicans are going to be spread.
There's going to be so many things. I would like to announce my
endorsement of Michele Bachmann for that position. I'd like to see her
out there for sure.
STEPHANOPOULOS: I take it that you may second that endorsement of Ms.
Bachmann. Let's get to some of the policies though, as well. James says
he doesn't think there's a lot of prospects for common ground. I was
struck by, you know, Senator Mitch McConnell, the Republican leader in
the Senate, before the election, said the number one job would be to
deny President Obama a second term. He's not backing off that at all.
He's going to give a speech later today where he repeats that and says,
quote, "If our primary legislative goals are to repeal and replace the
health spending bill, to end the bailouts, cut spending and shrink the
size and scope of government, the only way to do all these things is to
put someone in the White House who won't veto any of these things." Is
that the right approach right now?
DICK ARMEY: Well, Let me say, first of all, I think we've got a really
good leadership team. And quite frankly, I was surprised to hear you
characterize Jeb Hensarling as an establishment guy. This is a candidate
that gave the best expressions of opposition and the most depth, deeply
analytical terms to TARP and to the banking reform bill. He's got a
very bright mind. He's very deep. And the reason he's on the TARP
commission, was he was the best voice in opposition to it. So, the fact
is, this is not an insider. This is not an establishment guy. He's a
very bright and able person. And it's going to be a good contest for
good leadership slots. Now, what you see with this leadership team is
what I call quiet competence. John Boehner is not an easy guy. He
doesn't need a lot of attention. He will quietly and quickly focus
resources and resourcefulness on problems and directions. And he's got a
proven ability to work with even the most militant people on the other
side, such as George Miller.
STEPHANOPOULOS: Well, the President signaled that he might be willing
to compromise on tax cuts yesterday. If he extends, is willing to extend
tax cuts for the wealthy for a year, is that something that's
acceptable?
ARMEY: Well, obviously, I think what you do with this, understand the
dilemma they have in dealing with this in a lame duck session, it must
be dealt with in this session, is that when the votes in the House were a
full extension of the tax package, Nancy Pelosi would not allow the
vote to be taken. The fact of the matter, this hasn't changed. It's
probably gone more in the direction of the package that it gives full
extension, is what will pass the House. You don't have time to quibble
about this a whole lot. My guess is that would then be quickly taken up
by the Senate and passed on to the President. So, the President said I'm
perfectly willing to talk about what I know I'm going to get anyway.
STEPHANOPOULOS: And, James, what we'll see is the President trying to
work something out on taxes. Clearly going to draw a line on health
care. That's a clear difference from Speaker-to-be Boehner, from Mitch
McConnell, as well. So, where can they find the common ground?
CARVILLE: Earmarks. The SALT treaty with Russia. I have no idea. The
stuff that we've shown, school nutrition, or something, seems like small
potatoes to me in the middle of a recession, with all of if problems we
have. Maybe if they can find two or three small things they can agree
on, it will come to something else. They're going to have to agree on a
budget. Some things, the business of government has to go on. We were
discussing yesterday, they're going to have to find agreement on this
debt ceiling which is going to be a huge issue when it comes up.
STEPHANOPOULOS: If they don't raise the debt ceiling, the entire
government can go into default. Is that one of the places where
republicans will hold the line, Mr. Armey?
ARMEY: Well, I think everybody is realistically aware of that. The debt
ceiling must be raised. And that a fact that derived from past fiscal
improvements. I would think with the small government conservatives in
the Congress would say is, all right. We'll go work with you on this.
But we do need to have some demonstration on your part of a renewed
commitment to fiscal responsibility going forward.
.
