The Journal Editorial Report: 10/10

" This week on The Journal Editorial Report Obama's Afghanistan decision in the White House ways its next step. And find a four star antagonist for its wartime jitters and health cares big break the CBO breathes new life into the Democrats reform plan. And offers political covered a skittish members of congress plus. The administration touts this excessive -- stimulus as unemployment hit new highs so where are those jobs all that. And the president's peace prize next."

" Welcome to The Journal Editorial Report I'm -- you go eight years after the beginning of the war enemy that trumped up dispute with his top commander. President Obama met with his national security team this week to consider his next step in Afghanistan. The president appears to be undecided about how to respond to the proposal. By general -- crystal for a major troop buildup in a report that was partially leak last month -- general warned that the war Afghanistan could be lost. Without a new injection of US forces and he has reportedly asked the president to send him up to 40000 more soldiers. Kimberly Kagan is the founder and president of the institute for the study of war she served as a member of general customer crystal strategic assessment team in June and July. Of this year can Kagan welcome good to have you here. Thank you very much so you know so general crystal has submitted his plan for a counter insurgency strategy in Afghanistan you support that why."

" I do. In order -- have -- correct strategy for a war we actually have to understand first the nature of the conflict in the nature of the conflict in Afghanistan. He is an insurgency that -- to say there are elements of the population. That are rejecting the legitimacy of the government and trying to you overthrow that government and establish a government up there -- Of course that key movements among -- are at the column on led by mullah Omar and his Cletis Iraq. And they've really see themselves as the legitimate government of Afghanistan so in order she -- It's a success in Afghanistan we have to start by understanding that we have an insurgency -- indigenous insurgency in sees itself. As the government of Afghanistan that's what it's trying to do."

" However here's the argument that you're the opponents say look Afghanistan is much bigger than -- it's got enormous amount of territory in its -- goblins. And therefore you can't -- 40000 troops even 40000 more troops. Really won't be enough troops to practice a proper counter insurgency -- that large an environment and that ungovernable a place how do you respond of that."

" Afghanistan first of all in government all -- and threat recent history has been -- with the exception of the past thirty years when Afghanistan has been torn by civil war. In order to succeed with the counterinsurgency strategy but we need to do is protect the population of Afghanistan. From the campaign of intimidation. And -- of assassination. That the Talabani is engaged in in critical areas and -- critical areas I mean those that are important to the tall -- Those that are important to the government and those that are important to us so in order to secure Afghanistan we have to generate population security -- we don't have to generated. Across the whole country we need to generated in the posture in areas where the insurgency it's real. And where basically -- have historically supported the government or historically -- its top on but over time. Because we haven't been able to protect people have turned ever more up passively and actively supporting the -- on. Because it's their only choice -- rather than securing a whole kind."

" Treatment just need to secure certain parts so do you think that 40000 troops is really enough because we have to what do what do we have -- 140000. Afghanistan's soldiers and police. And that's not nearly the same number we had in Iraq even though that we have a bigger territory here so as 40000 really adequate word or or would -- should we need more."

" I think that 40000 is -- the quantity that you need in order to people she changed the dynamics that the fight. The enemy now has momentum it now has initiative. Throughout the posture in areas in the south 40000 troops gives us enough I think -- secure some areas the south. That are really critical -- Honda -- around -- on. And perhaps some areas in the east that are also critical around -- and and other places. And reverse that the process by which the enemy has taken control of these areas would about it enough -- I don't know but it's certainly enough to change the direction of."

" The fight what about the argument that in fact the column -- really isn't the United States enemy the United States enemy the people who attacked us on 9/11 -- al-Qaeda. And we can go after al-Qaeda in the border areas and Afghanistan and Pakistan -- a counter terrorism strategy that is go back to our bases. You search and destroy missions from those bases. And go after al-Qaeda and the Taliban really isn't our fight it's the Afghans fight but it's not our fight what's wrong without argument."

" First I think we must be clear that in fact. I'll cutter recognizes. The Talabani is the legitimate government of Afghanistan and -- its hollow -- And have Connie network -- major -- that we're fighting in eastern Afghanistan. Have have longstanding ties to you all Qaeda and in particular to Osama bin Laden. And in fact were responsible for inviting him into the country in those -- persist. Today. On so let's not think that just because the Talabani sees itself as the government of Afghanistan. I -- it doesn't see backed government of Afghanistan as part the overall spectrum. All Qaeda governance. Throughout. Throughout the region and indeed throughout the zeroes are just the province of Afghan."

" So your argument -- secondly but -- I did just second take care of your argument would be if if in fact the column on does begin to take over parts of of -- Afghanistan which might happen if we if if we withdrawn part -- whole. That al-Qaeda would in fact come back in use that -- those areas as a sanctuary."

" I I do -- believe that that is the case because -- Qaeda has explicitly said that it recognizes the Talabani. As the legitimate leadership and hopes for its return. For that reason and al-Qaeda needs a safe haven and a sanctuary. So we mustn't delude ourselves into thinking that these are two different groups. That have no common ideology or objectives so indeed I do think that that's a great risk. But I think we should also talk about the problem is that pure counterterrorism. Strategy that has been discussed in the White House. Because what we've learned from our experience in Iraq and also from our experiences in Pakistan. And from Afghanistan is that in fact we need to have troops on the ground in order to provide the intelligence that we need in order to conduct -- kinds of strikes. That we would like to -- conducted against high value terrorists can you and without forces on the ground we cannot succeed nick how."

" and you can't get that kind of intelligence unless you actually have boots on the ground OK Kimberly Kagan thanks so much for joining us. Thank you very much when we come back health cares big parade momentum -- ahead of Tuesday's finance committee vote. The CBO score give skittish senators the cover they need. And some prominent Republicans voiced their support. For the Obama overhaul. Democrats -- big sigh of relief this week after the Congressional Budget Office declared the baucus health care bill would reduce. The federal deficit by 81 billion dollars. The much anticipated CBO score may give political cover to skittish members of both parties just as some prominent Republicans hop aboard the reform train joining the panel this week Wall Street Journal columnist and deputy editor Dan -- Senior editorial page writer Joe -- And senior economics writer Steve Morse code Joe we learned this week that miracles do happen through it and have a new entitlement for millions of people. It will reduce the deficit. How did they conjure this smear --"

" Well you know where to begin -- stuff. You know you've got ten years of program six years of revenue. Because it spending on this program doesn't begin until what twenty of 24 to fourteen but the taxes. Begin -- here next year and a half. I mean if you've gotta you've got all sorts of phantom spending cuts that will never happen in practice you've got big. Tax increases on the health insurance industry that will be passed -- Paulson and others -- 190 billion dollars worth of tax increases on insurers on device makers on. Pharmaceutical -- on -- on hospitals those are gonna reduce the cost of health care if you tax somebody in the past that more and they passed the cost on to consumers won't that raise the price in other offense part of the reason the situation is so absurd and and and you know that the way the media and and the -- and that the political classes taken us. You'd think they'd be a little bit more. Skeptical of what's -- on the and you believe this or this is a faith based exercise."

" Well I think it's a faith based exercise but I also think maybe they're playing with fire clearly the Democrats have decided they're gonna get something out of this no matter how they have to do it. But I think you know the town halls were real -- that anxiety was real people look. 67%. At a minimum have no idea what's going on. With this bill and I think people going to their doctors they ask him the doctors probably say -- you know I have some concerns in my own. And if what they -- then causes problems in the medical system of the sort that we've been writing about for months. I think this going to be a backlash against what they've done in a backlash against the Democrats with an activist."

" But you know Steve the there's -- it appears to be some momentum behind this because you have Bob Dole come out this week and say he was in favor of summer for the president's reforms in principle -- Arnold Schwarzenegger the governor of California say the same thing you would Bill Frist former majority leader of the Senate. Come out only backtracked a bit but he endorsed it. In principle. Doesn't this bill have new momentum."

" It does but Paul I don't think that you're gonna see many Republicans in the end vote for anything like the baucus bill. Possibly they might get Olympia Snowe. Maine and maybe one or two possible other -- Republicans. But I don't see I don't see this as it being anywhere near a bipartisan bill the up. And I want to say something about this Congressional Budget Office score because you know you call you and I've been in this game a long time. And and we know that what has been driving these enormous opposites that we've seen for the last. 120 years and what's driving the forecasts of enormous deficits and the future is precisely runaway entitlement costs we create these programs and that costs it gallop out of control we simply cannot. Get them under control and so this idea that somehow we're gonna -- this trillion dollar new entitlement and it's gonna reduce the deficit -- that doesn't pass the laugh test to me."

" Well on that point -- say they're gonna get. Several hundred million dollars out of Medicare of course without reducing any kind of quality of care but they are gonna do -- and how they manage that. I think he'll be real cut -- about a 120 billion dollars that comes out of a program called Medicare Advantage which gives. One out of five seniors private options -- Medicare -- private insurance private insurance options with within the Medicare program. But you know they it is one thing that happens every year -- automatically cuts fees to doctors which. Congress then promptly reverses and collect eggs and -- you just take you take these you know 200 billion dollars of -- off the books and then. -- and every so when you're passing something you can you can say -- using it to pay for it when in fact of savings never happen and that's why the -- is one reason the deficits -- future there's one other thing I wanna ask about that is Medicaid this bill is gonna expand Medicaid in the states it's a joint state federal program really got tens of billions of dollars. But there's some senators -- getting -- carve out for some of their states tell us about that. Well you know Harry Reid senate majority majority leader about a it is it there's a big population in in Nevada that's going to go on Medicaid and normally those costs to be split with the with the states and and congress. He gets a huge bail out Michigan gets -- huge bailout. -- there's other element York Chuck Schumer a New York -- Chuck Schumer you know they've they've got this tax on. High costs insurance policies all sorts of politically connected Democrats get a pass for their states on those. So you're you're you're really seeing. Health care for for -- but not for me."

" It's good to be the king all right thanks Joe when we come back vice president Joe Biden declares mission. Accomplished he says the economic stimulus plan has succeeded beyond his. Quote wildest dreams on quote. So where are those jobs."

" We have great and is safe somewhere between 750. And a 1200000. Jobs in America. We're reinvesting. We're reinvesting in getting people off their knees and back to work."

" That was vice president Joe Biden on Monday touting the success of the administration's economic stimulus plan but where are all of those jobs -- remark came just. Three days after the Labor Department announced another 260. Thousand lost jobs in September bringing the unemployment rate to a 26 year high of nine point 8%. Overall the economy has shed two point eight million jobs since the stimulus passed in -- we're back with Dan -- And Steve Moore and also joining the panel editorial board member Jason Riley so Steve. We've got three to 4% growth that people are saying that third quarter and probably into the fourth quarter. That's a growing economy not great from those blows but it's growing so where are the jobs."

" Well you know you played that Joe Biden Clapton and the -- in Washington these days polished that up Barack Obama's gonna want to trade him. Joe Biden under the cash for clunkers program if you keep -- this because. Nobody really believes that we're creating jobs as you said we lost 260000. Jobs last month we've lost almost three million jobs since the stimulus. Plan was not illegal originate that he why are we love those jobs why are we why why are we seeing some new job creation with the recovery. Where where would they come from -- everything that we have done in the last year I would argue has been bearish for jobs I mean we keep loading new costs on small businesses we have you know bailouts add that huge stimulus plans that the government spending does not create jobs and I can't think of a single thing that we're doing and -- That is inspiring businesses to expand. And two and the hire new workers and back that would argue just the opposite all of the new taxes and all of the new -- and all of that threats of inflation from all the money creation is actually causing businesses to confront their operational us."

" 800 billion dollars worth of stimulus have heard me that's a lot of money. And they promise that if you had the stimulus would have an appointment below 8% with with with the stimulus below 8% without it they said it would get -- bottom -- it's nine point eight. Why hasn't that created jobs a lot of that stimulus money has not kicked in yet it hasn't been used their 400 billion of -- at least in the meantime what -- think Steve -- out. Is that we've raised the minimum wage benefit increase the cost of hiring he particularly for low skilled particularly for low skill and experience what the -- unemployment rate now 26. And for -- for astronomical for -- black male teenager even more 50% it's even -- But -- to Steve's point where is the growth gonna come from a pure auction for nor. What prospects do you see out there where you in the Obama economic agenda is going to increase taxes on and on dividends and capital gains -- gonna increase taxes on the top earners. These are the most productive members of our society for the people create jobs who expand businesses and build factories. What do they have to look forward to and Obama's economic stimulus collaborated on this -- that there's a lot of talk around Washington."

" Trying to resurrect the 3000 dollar tax credit for new hires -- for each person that a company would -- you know thousand bucks well -- won't that help. Well no because it. It's essentially a zero sum operation you're basically taking tax money from Peter to hire Paul -- opposing taxes on the company to run for each -- you make -- here were saying well look we're -- and Harry here's here's some relief right temporary. And it also -- is two -- 83 years maybe. It's only the strongest regions like the southeast in the southwest they're likely to take advantage of a tax credit like this the northeast in which is flat on its back is unlikely to -- use this sort of thing to hired to work."

" and the other players that it's temporary and should just mention this this this job that will be created will be only as long as the credit. In most cases I mean if we really want it to stimulate growth permanently. We would lower the payroll tax. That is what businesses -- but Steve some of the Republicans in congress are supporting this nonetheless here -- Who's a member of the house leadership. Has said he likes this idea let's talk about it. What do you think it -- as it is is this is this a real prospect of passing."

" In I don't know but I'll say this I think up -- that they Republicans are playing small ball when it comes to the economy right now I I think this economies and a lot of trouble. I think you know when you look at the collapse of the dollar when you look at the fact that when you count people that that aren't even looking for jobs we've got a 70% unemployment rate. I think we should be talked about major things to create jobs and it goes back to what Jason's that is why don't we do across the board tax cuts either cut the payroll tax or of the income tax rate for small businesses and Jason don't forget your right about the evade the impact of of the payroll tax but if you look at the health care bill that that -- that is passing in the house they actually increase the payroll tax by 8% I think my goodness how -- we possibly be talk about -- the payroll that's when we have fifteen million unemployed Americans."

" So how big a problem is is it is is unemployment going to be here going into next year we can I think we're gonna see some job growth now my worry is it's not going to be really. Great great job growth just -- about your earlier point. Companies have been shedding jobs to. To restore their balance sheet they have been cutting it and it's not. Likely that the going to start hiring people anytime soon. To damage those balance -- well let's hope we get this stuff settled these issues settled in Washington at least remove the uncertainty. And new burdens on the economy so we get back to -- all right we have to take one more break when we come back. Barack Obama and America's other Nobel worry -- our hits and misses of the week."

" Time now for our hits and misses this week we're turning them over to the Nobel Prizes and Jason you."

" Some good things to -- Yes I'm a big hit to the eight American scientists who won Nobel Prizes this week and chemistry. Medicine and physics. Six of them happen to be immigrants as well which is also remarkable you know the debate about immigration this country usually folks -- a low skill immigrants -- especially for Mexico. Especially -- or other parts of Latin America but high skill immigrants should also be part of this conversation. And if we -- going to remain yeah excuse me if we're gonna remain on the leading edge. Of innovation in this country. We need to keep our borders open cast aluminum tonight -- the really big news president Barack Obama wins the Nobel Peace Prize -- I miss the peace treaty that was signed in the last nine months."

" You sure -- well I think what's going on here is that this is an explicit effort by the young Norwegian Nobel committee to influence the foreign policy of the United States. In its announcement it's I'm quoting Obama's diplomacy is founded on the concept that those -- lead the world must do so on the basis of values and attitudes. Shared by the majority of the world's people now look. Obama has to understand that his authority and status and power in the world derived only from the fact that he's president of the United States now -- always says that he will represent the interest of the United States. But I think this price simply adds to the ideological confusion that surrounds Barack Obama. Over whether what he thinks he represents the world or the Americans that he."

" Is -- using -- saying this is an explicit endorsement of the of American president's rejection of traditional American exceptional -- In embracing. A kind of global we are of the world center of set of set of them and I think the Nobel committee is trying to push the United States in that direction as well what does this mean for us today ironic that you think that Mahmoud Ahmadinejad is going to be cowed by the moral force of the Nobel committee -- But I'm not -- hand. The Nobel committee could do a lot worse than Barack Obama and a half that's what -- like Arafat com. He is a uniquely popular public figure and at the Nobel committee wants to give them a prize for his good intentions. -- there's no -- that yeah there's notion that emphasis on good intentions as opposed to results that's it for this week's edition of the journal editorial board thanks to my panel. And to all of you for watching I'm -- we hope to see you right here."