• With: Austan Goolsbee

    This is a rush transcript from "Hannity," March 1, 2013. This copy may not be in its final form and may be updated.

    SEAN HANNITY, HOST: This is a Fox News alert. Despite dire warnings from president panic, I am happy to report that at this very hour, there are no major delays at airports all across the United States nor is a pandemic gripping the countryside, and day cares, believe it or not from coast to coast, they are still operational at this hour.

    Now miraculously all that remains true despite the fact we have arrived at the day when the Obama sequester starts to kick in. Now tonight, we'll have complete coverage of this developing story with former Obama economic adviser, Austin Goolsbee, Charles Krauthammer will joins and also the Ragin' Cajun James Carville.

    Plus the man who had the courage to speak truth to power and that, of course, being Dr. Benjamin Carson. He is here live to give us his take on the sequester, the automatic budget cuts beginning to take place in Washington.

    But first, earlier today, to no one's surprise, an 11th-hour meeting inside the Oval Office between the president and congressional leaders failed to result in any progress. Why? We do have a stubborn commander- in-chief who is incapable of conquering his obsession, his addiction, raising your taxes and spending your hard earned money.

    Now House Speaker John Boehner addressed that issue moments after meeting with the president. Here is what he said.


    REP. JOHN BOEHNER, R-OHIO, HOUSE SPEAKER: Let's make it clear that the president got his tax hikes on January 1st. This discussion about revenue in my view is over. It's about taking on the spending problem here in Washington.


    HANNITY: Now not to be upstaged, "The Anointed One" soon after fled to the safe haven that is the press briefing room in order to field some real hardball questions from his friends in the mainstream media, in other words, the state run lap dog media. Take a look.


    JESSICA YELLIN, CNN CHIEF WHITE HOUSE CORRESPONDENT: To your question, what could you do, first of all, couldn't you have them down here and refuse to let them leave the room until you have a deal?

    PRESIDENT BARACK OBAMA: You know, Jessica, I am not a dictator. I'm the president. So ultimately if Mitch McConnell or John Boehner says we need to go to catch a plane, I can't have Secret Service block the doorway.


    HANNITY: No, Mr. President, you are not a dictator but you are certainly not a leader either, because while you want the blame this entire mess on Republicans, the fact of the matter is, the sequester, that was your idea and put back in place way back in 2011, which leads me to my next question.

    What have you been doing the past two years? Now we have heard all your apocalyptic prophecies about what will happen because of these budget cuts, which by the way, are not really cuts. So why didn't you do anything to stop them?

    Now we here at "Hannity," we actually think we have found the answer to this mystery. It's because our celebrity president has been busy, well very, busy with important other things. Watch.


    OBAMA, FEB. 19: Congress allows this meat cleaver approach to take place -- it will jeopardize our military readiness. It will eviscerate job creating investments in education.

    OBAMA ON "LATE NIGHT WITH JIMMY FALLON"/NBC: Now is not the time to make schools more expensive for our young people.

    OBAMA, FEB. 26: Early education like head start and early start would be eliminated for nearly a thousand children.

    OBAMA, FEB. 19: Border patrol agents will see their hours reduced. FBI agents will be furloughed.

    OBAMA, FEB. 19 & FEB. 26: Federal prosecutors will have to close cases and potentially let criminals go.

    OBAMA (singing): I am so in love with you.

    OBAMA, FEB. 19 & FEB. 26: Air traffic controllers and airport security need to be cutbacks.

    OBAMA, MARCH 1: Many middle-class families will have their lives disrupted in significant ways.

    OBAMA ON "THE TONIGHT SHOW WITH JAY LENO"/NBC: This all dates back when we were growing up together in Kenya.

    OBAMA, MARCH 1: All of this will cause a ripple effect throughout our economy.


    DAVID LETTERMAN, HOST: You haven't seen me naked.

    OBAMA: We're going to keep it that way.

    OBAMA, MARCH 1: The longer the cuts are in place the more damage to the economy.

    OBAMA, FEB. 26: Congress might allow a series of immediate, painful, arbitrary budget cuts to take place known in Washington as the sequester.


    HANNITY: A just few moments ago, President Obama signed an order to begin the sequester cuts. Joining me now to react to his old boss' inability to avoid this mess, his decision, is the former chairman of the Council of Economic Advisers. He is a currently professor at the University of Chicago, School of Business, Austan Goolsbee, sir, is back with us.

    President panic, doom and gloom, apocalyptic. I thought he was going fix this mess. We can cut $44 billion out of $3.5 trillion. Help me out! Beam me up, Scotty!

    AUSTAN GOOLSBEE, FORMER OBAMA ECONOMIC ADVISER: I never took you for the jealous type, Sean. You saw Michelle at the Oscars and now you want best editing and best acting Oscar. Is that what this is about? You got a good drama thing going. I'll give you a prize. I'll send you a prize. What do you want?

    HANNITY: Wait a minute. We're going to either cut poor kids or disabled kids. This is what he said this week. Let's see, our military readiness, education, energy, early education, border patrol, airport security, doom and gloom. Wait a minute, here is the question --

    GOOLSBEE: You change your tune on me, Sean. You remember I was here three years ago, the summer of recovery, which you love to mock. You were willing to blame every traffic jam in America on the repaving of roads from the stimulus. Now when we're actually going to cut a bunch of programs that are going to lengthen the lines at the airport, we're going to cut military readiness. Now you don't want to do it.