'This Week' Full Transcript: Dec. 13, 2009

STEPHANOPOULOS: What's the one idea?

WILL: The one idea that we seem to have dropped, happily so -- remember the phrase was "shovel-ready"? We were going to create government jobs.

It put me in mind of a great story Milton Friedman used to tell. He went to Asia in the 1960s and was proudly taken by the government to see a public works project. They were building a canal. He was struck everyone was digging the canal with shovels. Friedman says, why no heavy earth-moving equipment?

They said, oh, this is a jobs program. So Friedman says, why don't you give them spoons instead of shovels?


I think we understand, now, the sterility of government trying to create jobs.

STEPHANOPOULOS: We will take -- we will take a break on that. We're going to be back in just a minute, and we're going to answer the question, why were Sarah Palin and Newt Gingrich praising President Obama?

And later, the Sunday funnies.


SETH MEYERS, "SATURDAY NIGHT LIVE" CAST MEMBER: During the Kennedy Center Honors on Sunday, President Obama presented an award to Bruce Springsteen, saying, "I'm the president, but he's the boss," at which point Springsteen ordered our troops out of Afghanistan.




OBAMA: I am at the beginning and not the end of my labors on the world stage.

NEWT GINGRICH, FORMER SPEAKER OF THE HOUSE: He clearly understood he had been given the prize prematurely.

OBAMA: There may be times when nations find use of force not only necessary, but morally justified.

PAT BUCHANAN, MSNBC CONTRIBUTOR: It was realistic about what the world is like.

OBAMA: Clear eyed, we can understand that there will be a war and still strive for peace.

SARAH PALIN, FORMER VICE PRESIDENTIAL CANDIDATE: I liked what he said, war is the last thing any American, I believe, wants to have to engage in, but it's necessary.


STEPHANOPOULOS: President Obama drawing an unlikely ally with his Oslo speech, accepting a Nobel Peace Prize. Let's debate it here on the roundtable. I'm joined again by George Will, Ed Gillespie, April Ryan, John Podesta and Arianna Huffington.

And George, a lot in that speech. The president clearly justifying the use of force but also emphasizing engagement with our enemies in saying that, "When we fight, we must hold ourselves to a higher standard." Does it all add up to an Obama doctrine?

WILL: I don't think so. St. Thomas Aquinas was late to the game talking about just wars so people are arguing that there is such a thing as a just war for a long time. I thought the most interesting part was his acceptance of the fact that ethnic and sectarian fighting is the new cause of turmoil in the war. This marks the end of what Pat Moynahan used to call the liberal expectancy, that was the faith that once science and progress and education had reached a certain level, that we had reached presumably in the 20th century, that religion and ethnicity as driving forces would lose their saliency. In fact, they're now more virulent than ever.

STEPHANOPOULOS: And rejection of utopianism in all its forms.

HUFFINGTON: Well this is good and of course I don't think there are many people who would argue there are no reasons for wars. I mean, after all, this is the peace prize, it's not the pacifist prize, so I didn't quite understand all that big defense of the necessary wars.

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