'This Week' Transcript: Christina Romer, George Will, Liz Cheney, Al Hunt, Judy Woodruff and Robert Reich

I think the uncertainty is because people are watching things like the debate over the health care bill here, which has gone on and on and on, the actions by the administration, which I think are actually creating a drag on this recovery. And when you add to the uncertainty in the debate, what's actually in both of the bills, which I know we're going to get to in a minute here, but the new taxes, the new regulations, the new penalties, I think that Ms. Romer had it right, Dr. Romer had it right when she said that the variable here is the private sector.

But the key is for the government to get out of the way so that the private sector can actually begin to...

(CROSSTALK)

STEPHANOPOULOS: I do want to get to health care in just a moment. But, first, Judy, there's also a lot of anger out there, and you saw Dr. Romer there when she was talking about the banks and the bonuses, boy, her head said it all. I think out in the country, there's going to be even more vocal outrage when they see these bonuses this week. Is there any way for the administration to harness that? Or is there actually -- are they actually facing blowback now because they seem to be solicitous with the banks?

WOODRUFF: If they have a way to harness it, George, they haven't demonstrated what that is yet. I mean, they -- they were taken aback by these unemployment numbers that we saw last Friday. There's a reason the administration is putting Christina Romer out there. She's one of the best spokespersons they have on the economy. Even she was struggling to -- to put a happy face on any of this.

I happened to talk to -- to drop a name -- Paul Volcker over the weekend...

STEPHANOPOULOS: Former Fed chair.

WOODRUFF: Former Fed chair, he's head of the President's Economy Recovery Board, who says he sees a very real chance of a relapse. He says, look, there are good signs out there. He said businesses, actually, very few of them comparatively, considering the depth of this recession, have gone under, have actually gone out of business. But still, they are reluctant to hire, and it's this vicious cycle we keep hearing about.

Unemployment goes down. Therefore, demand is down. Businesses -- business is down. How do you come out of that? I don't think the administration has an answer.

REICH: George, there is extraordinary anger out there, and I think we are going to see more of it, because the gap between Wall Street and big business on the one hand and Main Street on the other has never been larger, in my -- in my experience.

I mean, not only is inequality out of control, but also people's sense of who's winning and who's losing in this economy -- big businesses are doing quite well. They continue to do well. Why? Because they're cutting their payrolls, and also they're going global. But, actually, back here at home, people are really in trouble. And how you manage that anger, particularly when you've already bailed out Wall Street, is going to be a very -- very big political challenge.

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