• This is a rush transcript from "The Journal Editorial Report," July 17, 2010. This copy may not be in its final form and may be updated.

    PAUL GIGOT, HOST: This week on the "Journal Editorial Report," the White House hails the stimulus as a success, claiming it created or saved millions of jobs. But business owners aren't buying it. And so far, neither is the public. Can the administration make the sale?

    And President Obama takes on the left, issuing a rare veto threat as House Democrats try to strip funds from his school reform agenda.

    Plus, prosecutors rest their case in the Blagojevich trial, but not before exposing the underside of Chicago politics and some embarrassing details about the Obama White House.

    GIGOT: Welcome to the "Journal Editorial Report." I'm Paul Gigot.

    Well, the White House's so-called summer of recovery rolled on this week. And the latest claim is that $862 billion of economic stimulus has saved or created about three million jobs. But polls show voters are far from convinced. And business owners, facing hundreds of new rules in the financial reform bill that passed this week, aren't buying what the administration is selling either. At the U.S. Chamber of Commerce's job summit Wednesday, Chamber President Tom Donahue took on the Obama White House for what he sees as its job-killing policies.

    (BEGIN VIDEO CLIP)

    TOM DONAHUE, PRESIDENT, U.S. CHAMBER OF COMMERCE: Instead of continuing their partnership with the business community, and embracing proven ideas for job creation, they attacked and demonized key industries. They embarked on a course of rapid government expansion, major tax increases and suffocating regulations, going well beyond what has been done to keep the economy out of a depression.

    (END VIDEO CLIP)

    GIGOT: Joining the panel this week, Wall Street Journal columnist and deputy editor, Dan Henninger; assistant editorial page editor, James Freeman; and Washington columnist, Kim Strassel.

    Kim, let's deal with the White House first. We saw them roll out the big promotion for the stimulus. Is the beginning of the White House campaign for the fall, which is the stimulus worked, happy days are here again? Don't go back to those bad Republican policies?

    KIM STRASSEL, WASHINGTON COLUMNIST: If you can believe it, yes. They got an economy problem and it is coming to settle on two questions: one is the stimulus, which they — $862 billion, big promises, it was going to keep unemployment below 8 percent. It's done no such thing. And so they are trying to plump it right now.

    The other problem is the business community, which sat by, even went along and helped the administration on some issues, like health care, and now is revolting and stepping out and pointing out cap-and-trade and the lack of trade and uncertainty overtax policy and all these things that are killing jobs and making them not hire people. So they are now attack the White House. The White House is on the defense on both of these.

    GIGOT: Right.

    What finally, Dan, turned the business community because, as Kim said, they were, for a long time, trying to do business with this administration?

    DAN HENNINGER, COLUMNIST & DEPUTY EDITOR: Yes.

    GIGOT: Suddenly, you see a turn where they are saying they have to top these destructive policies.

    HENNINGER: Well, obviously, we're discussing this in terms of politics, business community versus the White House. Look, the way I would put it is I think the business community is trying to bailout Barack Obama. The economy doesn't care about the politics. The economy is trying to function, right? And what are they —

    GIGOT: They are saying we just can't function properly —

    HENNINGER: That's what they're saying.