Transcript: Senior WH Adviser Valerie Jarrett

WILL: If they had done what Newt Gingrich urged them to do in that district, the district probably would have gone to a Democrat and would have lost a seat. Newt was just tone deaf as were the people who picked this woman. Who is a candidate of among other things the working families party which is a wholly owned subsidiary of the Public Employees Union. She's for tax increases, same-sex marriage. She's for abolishing the right of secret ballot in union elections. There's already a party for people who think like that. It's called the Democratic Party.

MYERS: It was interesting that she was chosen by the county party chairs, 11 people got in a back room and chose her for some reasons that may have to do with state party politics and not to do with winning. But there's no question -- it will be very interesting to see what lessons both Democrats and particularly Republicans take from this. Is this going to be a carte blanche for conservatives to take on more moderate incumbents in primaries?

GILLESPIE: Well, look, Dee Dee's point is a very important one. This nominee, Scozzafava was chosen by 11 people behind closed doors. Disenfranchised Republican primary voters and that led to I think a lot of greater --

STEPHANOPOULOS: It was a caucus process, wasn't it?

GILLESPIE: It's a process but it doesn't make it a good one. The fact is that a lot of Republicans said, wait a second, she wasn't a moderate Republican as George pointed out. She is a liberal Republican. Daily Kos, the left wing Web site endorsed her over the Democrat. The fact is I think Republicans, many of whom support her because she was the Republican Party nominee, and there is an obligation that have you in the party to support the nominee are relieved today at the opportunity to pick up this seat now.

And I think that if you look at the 20 percent that Scozzafava was getting in that poll, I suspect that breaks about 3-1 to Hoffman at the end of the day.

STEPHANOPOULOS: And Ron, the Republicans almost certainly will now win. BROWNSTEIN: It seems the momentum is there. It sends a mixed message for Republicans out of this. On the one hand, I think it's going to be another indication, I think we'll see others on Tuesday, that there is energy in the small government, anti-spending argument at this point.

On the other hand, the fall of the Dede as I think she's known now, I think is a sign that the leash that the base is holding on the party is tightening and that the Palins, the talk radio, the Rush Limbaughs, the FOX, the definition of what is acceptable as a Republican I think is narrowing.

I mean this does come after Arlen Specter essentially was forced to leave the party after voting for the stimulus, after Chuck Grassley faced threats, open threats of a primary challenge if he compromised with Max Baucus.

In the long run -- in the short run, there's clear energy here in the small government, anti-government argument. But in the long run, I do wonder about whether Republicans are going to have the freedom of maneuver they'll need to recover in some of those blue states where they've significantly eroded.

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