'This Week' Transcript: Barbara Walters Exclusive with Massachusetts Senator-Elect Scott Brown

WILL: Paul has been consistent, here and elsewhere, for many months, saying the big danger is 1937, when we got a recession within a depression, because in Paul's judgment and some others, the government flinched, that it declared victory prematurely.

Now, Paul would like a bigger, better stimulus program. Paul's administration won't even use the S word, stimulus is so out of favor.

KRUGMAN: There's only so much politically that Obama can do to create jobs, because he doesn't have a political capital now. This is, you know, early on in the administration, I was frantic, saying, you have to go big, because you are going to get one shot at this, and they didn't. And so that's -- that is where we are now.

But now to buy into the notion that we're going to start reducing the deficit when the unemployment rate is still at 10 percent, is a very bad thing.

AILES: Jobs is the second issue, in my view.

WALTERS: What's the first?

AILES: Safety and sovereignty of the United States, and I think people, when they see a guy get all the way over Detroit to (inaudible) his underpants, but he could have, and now we're in a situation where we're going to have to either -- we took everybody's shoes off; now we're going to have to take everybody's underpants off. But the fact is, that's not going to stop. We've got to get much tougher. We've cut the hands off the CIA. We can't -- it's the Norwegians that are doing this. We know who it is. We can't seem to say it. So sooner or later, we're going to have to toughen up on all this stuff. And the American people know it, they feel it, and they're worried about it.

WALTERS: Let me just go around for our last moments. The state of the union. Did the president -- people seemed to think in general that it was a good speech. Did he get his footing back? Did it make a difference? Yes, no?

WILL: State of the union addresses rarely make a great difference. They have a captive audience, but the audience is usually unmoved.

WALTERS: Arianna?

HUFFINGTON: They focus-group tested it within an inch of its life. You know, there was an applause line for every constituency, and his grand vision, which got him elected, was really missing. As the New York Times call it, it's the opposite of bold.

KRUGMAN: The give-and-take with the Republicans was what the state of the union should have been. That was where...

WALTERS: Did that make a big difference?

KRUGMAN: It made some difference. The president said that the Republicans of the party have no ideas, and they demonstrated it on the spot, that they are in fact the party of no ideas. That's where he needs to go.

WALTERS: What do you think?

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