'This Week' Transcript: David Plouffe and Lindsey Graham

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NORQUIST: There's been both short-term progress and long-term progress. Short-term progress is, we didn't raise taxes. We are dealing with the overspending problem, clawing it back a little bit.

Long term, we've set the precedent. We're never again doing a 1982 or a 1990 deal where we raise taxes and pretend to cut spending. We're -- and we're going to insist from now on, any time the debt ceiling goes up, dollar for dollar, spending comes down. Those two are long-term progress.

KRUGMAN: Can I ask you, by the way...

(CROSSTALK)

NORQUIST: There's a third part to the problem we face, taxes, spending. There's been a wave of regulations, both -- that have arrived and that are threatened. I think the biggest thing holding back economic growth now is the concern that next week you wake up and the EPA or some other department of government has decided not just what kind of light bulbs you have, but how big your car can be.

KRUGMAN: It's this amazing story that's come into minds, which is that the tax hikes of '82, '90 and '93 were somehow a terrible thing, a bad thing. You know, by the year 2000, we'd had a decade of very good growth. We had a surplus in the budget. All of the squandering took place after that. So those were -- the things that you say we will never again do were actually the things that put us briefly on the road to fiscal sanity.

AMANPOUR: Gentlemen, thank you very much indeed.

And coming up, the next big story. Is the face of terror changing? Should the massacre in Norway be a wakeup call for law enforcement here in the United States? I will ask New York City Police Commissioner Ray Kelly.

(COMMERCIAL BREAK)

AMANPOUR: Two troubling cases this week spotlight the threat posed by the extremists in our midst. In Texas, Army Private Naser Jason Abdo stands accused of planning another deadly attack on Fort Hood. He may have been inspired by the radical Islamic cleric Anwar al-Awlaki.

And in Norway, confessed mass-murderer Anders Behring Breivik has found some unlikely defenders on the far right of the European political spectrum. At least three politicians have come under fire for defending his extremist, anti-Muslim, anti-immigrant views.

But is violent right-wing extremism only a threat abroad? For some perspective, we turn to a man on the front lines, New York City Police Commissioner Ray Kelly.

Commissioner Kelly, thank you so much for joining us.

KELLY: Good morning.

AMANPOUR: We've all heard -- we know all the work that the U.S. law enforcement, yourself, everywhere is doing on Islamic extremism, the homegrown terrorism threat. Is there a possibility, though, that a Norway could happen here?

KELLY: Well, it's something that we have to watch closely, and we are. I think U.S. law enforcement is focused on the issue. I can tell you, in New York City, we have a task force in our intelligence division that looks at white supremacist/anti-government groups and individuals.

In fact, just a few days before the Norway massacre, we had a teleconference with our century partners -- this is 100 law enforcement agencies in the northeast quadrant of the country -- and that was the specific subject. We talked about certain groups and individuals that we're concerned about.

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