• This is a RUSH transcript from "The O'Reilly Factor," November 18, 2011. This copy may not be in its final form and may be updated.

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    BILL O'REILLY, HOST: Now for the top story tonight: Texas Governor Rick Perry, one of those calling for financial reform in Washington. His campaign is modeled on small government, lower taxes, which has worked in his state. That's not all. Governor Perry apparently feels President Obama has insulted the American people.


    PRESIDENT OBAMA: We have been a little bit lazy, I think, over the last couple of decades.

    RICK PERRY, GOP PRESIDENTIAL CANDIDATE: Do you believe that? That's what our President thinks is wrong with America? That Americans are lazy? That's pathetic. It's time to clean house in Washington.


    O'REILLY: All right, here now is Governor Perry. So, is that a fair ad there you know?

    PERRY: Yes, it's a fair ad absolutely. But this President has traveled around the country making excuses for America. Apologizing for America, saying that America is not an exemplary country and then he gets on TV and talks about that Americans are lazy, that they've lost their ambition, that they've lost their imagination.

    O'REILLY: But then he really -- was he really talking about the folks? Let's run the ad and see what he had to say. Go.


    OBAMA: There are a lot of things that make foreign investors see the U.S. as a great opportunity; our stability, our openness, our innovative free market culture. But, you know, we have been a little bit lazy, I think over the last couple of decades. We've kind of taken for granted -- well people will want to come here and we aren't out there hungry selling America and trying to attract new businesses into America.


    O'REILLY: So he really wasn't talking about the folks. He was talking about trying to get investment to come to the U.S.A.

    PERRY: He said we've been a little lazy is what he said.

    O'REILLY: But we the government.

    PERRY: Well, I don't know, I think he's talking about Americans.

    O'REILLY: Do you really?

    PERRY: Absolutely.

    O'REILLY: Yes that's what you took away from that…

    PERRY: I think -- I think that's exactly what he is talking about. I think this is a man who really, if he believed that Americans were hardworking, that they were ready to ignite this economy, then we wouldn't have the tax policy. We wouldn't have the regulatory policies in place that are killing jobs in this country.

    O'REILLY: Well, he comes at it from a social justice point of view.

    But let me ask you this. Do you believe that Barack Obama, the person, not the president, the person because a lot of conservatives do believe this, doesn't like America?

    PERRY: Listen, I'm not -- I think he -- I think he cares for his country.

    O'REILLY: Do you?

    PERRY: I just think his policies are socialist.

    O'REILLY: All right. So you don't buy into the fact that he goes abroad and says things that to the -- to the other countries, and particularly the Muslim world that diminish America. You think he does love his country and he is trying to do his best.

    PERRY: I think -- I think he cares for his country. Don't get me wrong about that.

    O'REILLY: Ok.

    PERRY: But I think he -- he truly misunderstands what this country was based upon, the values that America was based on, which is free enterprise and having the ability to risk your capital and have a chance to have a return on your investment. That's what he doesn't understand.

    O'REILLY: Do you think he's a socialist? Do you think…

    PERRY: Absolutely.

    O'REILLY: You do -- a hardcore socialist.

    PERRY: Yes, sir I think Barack Obama is a socialist. I think he believes that -- when you -- when you talk about printing money and -- and spending government money, and trying to spread it out as that conversation that he had with "Joe the Plumber," you know, kind of redistribute the wealth.

    O'REILLY: Yes, absolutely.