This is a rush transcript from "On the Record," June 28, 2010. This copy may not be in its final form and may be updated.

GRETA VAN SUSTEREN, FOX NEWS HOST: Vice President Joe Biden has a grim message about the economy. Quote "There is no possibility to restore eight million jobs lost in the great recession." Rush Limbaugh is not impressed. Rush thinks we should go back to the policies of another president.

(BEGIN VIDEO CLIP)

RUSH LIMBAUGH, RADIO TALK SHOW HOST: Reagan's policies of lowering taxes, spending restraint, curbs on regulation, fueled a sustained economic boom lasting 92 months. The Reagan boom created 18.5 million new net jobs. Unemployment fell from 7.1 percent in 1980 to 5.3 percent in 1989.

We know how to do this and get back jobs lost but add even more is the point, and we see these guys giving up. And they are doing it by blaming Bush. What's Obama done? Obama's created a gusher. Not only a gusher of oil. He's got a gusher of red ink. He hasn't produced any jobs to justify Obama-nomics.

(END VIDEOTAPE)

VAN SUSTEREN: Joining us live is Steve Moore, senior economics writer for the "Wall Street Journal" editorial page. Vice President Biden is saying we are not going to get those eight million jobs back.

STEVE MOORE, "WALL STREET JOURNAL": Now he tells us, because it was his office that exactly a year and a half ago was saying if we pass this economic stimulus we will create three million jobs. This is quite an admission of failure.

It is interesting listening to Rush Limbaugh talk. I think is reading from the book I wrote a year ago that Reagan had the right formula. Cutting tax rates putting people back to work, I think that strategy would work much better than the Obama spending policies.

VAN SUSTEREN: It is a fair statement when President Obama took office and vice president, the economy was an utter mess.

MOORE: No question about that absolutely.

VAN SUSTEREN: When the stimulus bill was passed by the Democratic Congress and signed by him February of '09, at that point he owned the direct of the economy and where it was going. And so the question is, what is the direction of the economy from February up or down? If up, how quickly up?

MOORE: GDP has increased a little since January of 2009. So we've had some growth in the economy. But what we haven't had is any private sector job growth.

And you are right, starting about February of 2009 we were told this was for shovel-ready projects and it would put Americans instantly back to work. The jobs never really appeared. There were some jobs created.

The problem is, at the same time, the negative effect of all that spending, all that massive increase in debt, I think that had a negative effect on the willingness of private sector employers to create jobs.

VAN SUSTEREN: If we were to give President Obama a scorecard on the economy, we would have to start in February of '09 and look at housing charts, unemployment, private sector, not jobs from the census, the regular indicators. Take all those indicators and see which way it is trending and how quickly or steeply it is trending.

MOORE: We have had some modest growth and GDP growth. What Americans mostly concern themselves with now is jobs. If you look at from February 2009, your starting point, until now, we've lost about 2.5 million additional jobs above the five million jobs we lost before he came into office.

VAN SUSTEREN: And I think we have to put an overlay in terms of deficit and debt.

MOORE: Right.

VAN SUSTEREN: Long term we have to pay for that somehow.

MOORE: That's right.

VAN SUSTEREN: As you group of analysis together, if it is failing, if there is a time when we have to make a statement and change direction --

MOORE: This is my point.

VAN SUSTEREN: We got to have the courage to turn around.

MOORE: We had an experiment, a Keynesian demand side economics of government spending. It didn't work. Let's try something different. And I think the problem a lot of Americans have, the tea party people you interview all the time, they are saying why are we going to spend another $100 billion, another stimulus bill in front of Congress right now to do more of the same?

VAN SUSTEREN: The president needs to sell the American people on this other stimulus bill before they do it. He has to explain it. It is not fair to the American people. If he can convince the American people that you have to wait longer or this new one will work, so be it. But the American people need to understand it and feel comfortable.

MOORE: I think they should pay a price for the false advertising. After all, they told us we wouldn't have an unemployment rate above eight percent.

VAN SUSTEREN: We are at 9.7.

MOORE: That's close to 10.

VAN SUSTEREN: Every percent at this point -- I realize it doesn't take into consideration the people who quit looking and all that, but I'm not saying -- the problem is it is unchanging. It is 9.7 and it was 9.7.

MOORE: If I was the president's adviser I would tell him let's not raise those tax rates in January of 2011. A lot of economists I talk to including myself think the real problem is going to be in 2011 when all those taxes go up. That is going to have a very negative effect on the economy. And the president promises he will do that.

VAN SUSTEREN: New numbers come out this week?

MOORE: Friday.

VAN SUSTEREN: Steve, thank you.