• This is a rush transcript from "The Journal Editorial Report," January 30, 2010. This copy may not be in its final form and may be updated.

    PAUL GIGOT, HOST (voice-over): This week on the "Journal Editorial Report"...


    PRESIDENT BARACK OBAMA: Jobs must be our number-one focus in 2010. And that's why I'm calling for a new jobs bill tonight.



    GIGOT: President Obama retools his agenda, putting just jobs front and center. But will his proposals do anything to get Americans back to work.

    And Ben Bernanke gets the green light for another four years at the Fed, but what did he promise Harry Reid in return?

    All that, and the growing political backlash over trying terrorists in civilian courts, especially in New York City.


    OBAMA: People are out of work. They're hurting. They need our help. And I want a jobs bill on my desk without delay.


    GIGOT (on camera): Welcome to the "Journal Editorial Report." I'm Paul Gigot.

    That was President Obama in his State of the Union address Wednesday night promising to make jobs his number-one priority in the coming year, but will the policies he's proposing really put Americans back to work?

    Joining the panel this week, Wall Street Journal columnist and deputy editor, Dan Henninger; columnist, Mary Anastasia O'Grady; assistant editorial page editor, James Freeman; and senior economics writer, Steve Moore.

    So, Steve, president down playing a little bit health care and cap-and-trade on the agenda from a year ago, pressing jobs. You must be happy. What do you think of his jobs agenda?

    STEVE MOORE, SENIOR ECONOMICS WRITER: Well, look, I thought we were going to see an Obama 2.0 in this State of the Union speech with a kind of new message that was more moderated, that was more oriented towards reaching out across the aisle to the Republicans. But that's not exactly what I heard. I heard a lot of blaming George Bush for the problems over the last eight years. I think that the president did say, look, we're going to move forward with health care and a lot of the other jobs initiatives, the spending initiatives that were the hall mark of his first year. So I would say that I didn't see the change agenda that you might have thought after what might have happened in Massachusetts.

    GIGOT: Wait a minute. Wait a minute. He proposed a capital gains tax cut for small businesses. He also said — you've been telling me that small business can't get credit. And he proposed $30 billion from TARP to go to community banks for lending. Don't you think those will make a difference?

    MOORE: No, I really don't. I think if you look at those tax cuts, they're all small ball, Paul. We've always believed that the way it get growth going is to cut marshal tax rates for small businesses and investors. The one thing that the Barack Obama administration will not do is cut tax rates, which is probably what the economy needs most right now.

    GIGOT: Well, Mary, fourth quarter GDP came in and the economy grew 5.7 percent after only 2.2 percent in the third quarter, but that suggests we really do have a recovery here that's underway. Good news, no?