Transcript: Health Care Debate

REICH: The stimulus clearly has had a positive effect. I think the problem, though, is that it has not had enough of an effect. And given the gravitational pull of the midterm elections, we're going to see a huge effort in this town very shortly, and immediately upon health care effect (ph), probably before Christmas, to kind of come up with jobs programs. And some of these work and some of them don't work, but it's important in this town to show America that you're trying to do something about...

(CROSSTALK)

ISAACSON: Well, look, you did have 3.5 percent growth rate in GDP in the third quarter. And that's pretty astonishing, given the fact that we thought we might in the greatest financial crisis since the Great Depression a year ago.

The problem with another jobs program and all is you're going to get hundred more type things that George has just talked about, which is, you know, little scandals and all. And, secondly, I think Obama really has to, starting next year, say we're going to put us on a fiscally responsible approach, and we're going to have to start cutting spending, because that's the long-term problem. We're not going to have growth in this economy unless we can have some fiscal responsibility.

REICH: Wait until the -- wait until the bonuses come out at the end of the year on Wall Street. If you think populism is now large and angry, you haven't seen anything yet.

CHENEY: But I think that, you know, there's a fundamental question here, which is, what kind of stimulus? What's the nature of an effective stimulus? And I think you're seeing now increasingly people saying, look, the kind of stimulus we need is a private-sector-driven stimulus. We need the kind of incentives, frankly, that the health care bill gets exactly wrong, that will allow the private sector to hire more people, will allow them to create jobs.

And they're sitting back sort of watching while we've got a stimulus that hasn't worked, because it didn't have enough of the kind of tax incentives and tax cuts that the private sector needs, and a health care bill that's about to really compound that problem.

(CROSSTALK)

STEPHANOPOULOS: ... into the deficit problem that Walter talks about. That's going to cost money, as well. Let's...

WILL: The administration's not worried about deficits, because they

say, their projection is we will have deficits more than three times larger than the post-Second World War average for the next decade, yet economic growth will be faster...

(CROSSTALK)

REICH: There's so much confusion about this deficit issue. Can I just -- in the short term -- that is, until we start to see real growth and jobs coming back -- we want deficits. Deficits are not bad. You know, John Maynard Keynes is being exhumed as we speak.

In the longer term, once we see growth and once we get jobs starting to come back, then we really do have to pull in the money supply and get serious about entitlement reform, but not now.

STEPHANOPOULOS: One of the questions is, how much time will the Chinese give us? President Obama in China this week. Thank you for that segue.

(LAUGHTER)

And -- and -- and real questions over how much -- how much he achieved on this trip. And let's talk about that a little. Let's first show him at a town meeting, I believe in Shanghai.

(BEGIN VIDEO CLIP)

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