Does Obama Have a Plan to Fix the Economy?

Will president's new proposal actually create jobs?


This is a rush transcript from "The Five," August 17, 2011. This copy may not be in its final form and may be updated.


PRESIDENT OBAMA: I will be presenting before the joint committee a very detailed, specific approach to this problem that allows to us grow jobs right now, provide folks who need help the help they need, and still gets our deficit and debt under control.


DANA PERINO, CO-HOST: I have a feeling that there's nobody in America who wants the Obama bus tour to end more than President Obama. He's got a new plan that's going to be coming out.

Reuters had a report today, Eric, I wanted to ask you about this, that basically suggests there is not a lot of new coming, that it will be like rinse and repeat.

ERIC BOLLING, CO-HOST: Yes. You think?

PERINO: My question is if because there isn't a ton of new things that might be coming out of this, do you think employers will be satisfied enough with anything to hire again?

BOLLING: Yes. Here's what I think he's done -- he is trying to buy time. He's clearly out of ideas and tried everything he knows in the far left socialist playbook, which is tax some more, spend some more, take from the wealthy, redistribute the wealth -- which we know he said in the past.

That game ain't working, so he is trying to figure out going forward.

What they really -- you want to create some jobs, you have to drop the corporate tax rate. You just have to drop it. At 35 percent we're not competitive with the rest of the world. That's the only way to create the jobs.

PERINO: If he does come up with that, do you think, Kimberly, this all of a sudden will give some people some comfort? Like could we see wholesale tax reform be proposed by President Obama?

KIMBERLY GUILFOYLE, CO-HOST: He needs to come up with something. But right now I'm not impressed with these two ideas. OK, you want to create jobs but what are your specific plans? How are you going to do this?

Even people within his party feel that he is failing miserably. You have people like Maxine Waters coming out of town hall meetings criticizing the president, saying, what are you doing to create jobs in the country?

Do I think it's going to be enough to motivate corporations and businesses and entrepreneurs and people that own small businesses to say I want to hire and I want to take additional payroll on? No. They see an abdication of leadership. I don't think that they believe and/or trust him that he has what it takes or fresh ideas to do something other than tax and spend.

PERINO: I want to ask Greg based on the two-part plan you mentioned. You have an interesting take on that.

GREG GUTFELD, CO-HOST: Well, you know, I watch a lot of "Top Chef," it's one of my favorite shows. And there's always one bad chef on there when it gets to the final where you are only supposed to cook one meal but he decides to cook two, because he knows the other one sucks.

That's what President Obama is doing. He's over-delivering even though he is delivering the same quality muck.

The problem here is he is creating a plan to somehow solve the problems of a previous plan. So, in about six months, he's going to need another plan to solve the problems of this plan, which is trying to solve the problems of another plan. It's plans that will never end.

PERINO: Well, we want to get Bob in here because I have a question, Bob. I think I've realized something that they're going to do. I know you're so bored, but if you could pay attention for one second --

BOB BECKEL, CO-HOST: No, no, I'm not bored at all. I'm reading the socialist handbook to find out what our next plan is.

PERINO: Good. Because out of 26 percent of --

BOLLING: The book is much thinner than that, Bob. It's like a pamphlet. Tax the wealthy and redistribute to the poor.

PERINO: But I think what he's going to do is announce something that he knows the GOP House will never be able to pass. And then he'll say it's a do-nothing Congress.

BECKEL: I think that's probably pretty much on the money. Listen, I think what he's going to do is ask for two things. He's going to ask this committee to go beyond its intended purpose and to continue the payroll tax cut, which I think makes sense and does put money in the economy.

And, secondly, I think he's going to ask for infrastructure bank, $1 matched by another $5 to put people to work. The GOP will turn it down. And once again, as usual, they'll turn down anything that creates jobs until Obama is gone.

At that point we turn around and just say what we should be saying all along. It's a do-nothing Congress and it's being tied up by the Tea Party.

GUTFELD: But wait a second, it took him 1,000 days -- nearly 1,000 days to come up with a plan. He's not a president. He's a procrastinator. It's not the Congress fault. He had a Senate and House behind him.

BECKEL: Yes. You don't read the socialist book. In socialism, we have plans, you know? Central plans. You all keep calling for central plans. That's what the communist do.

GUTFELD: No one is calling --

BECKEL: Where is this great free market developing all these jobs?

BOLLING: Well, you can't create jobs in America with 35 -- now the number one highest corporate tax rate of the developed world. I mean, we were second to Japan. Now, we're first.

Let's talk about --

BECKEL: Name me one corporation that pays 35 percent.

BOLLING: Let's talk about what you just said, Bob. Number one, part one of his plan is to extend the payroll tax holiday, right?



BECKEL: Why not?

BOLLING: Lower taxes work and they actually might create jobs.

BECKEL: I think it's sort of puts the money --


BOLLING: Let me finish. The second part of your plan is create an infrastructure bank that's going to be funded how?

BECKEL: You're going to be part from the federal government and part from states and part from businesses who build --

BOLLING: Tax. Class warfare. Tax. Tax. Tax.

BECKEL: Name a corporation in America that pays 35 percent in tax -- real 35 percent? You can't. You know why? The average --

BOLLING: I'll tell you who paid zero, that's the friends of Obama --

BECKEL: Corporations don't pay 35 percent in tax. That's just a bunch of crap. The fact of the matter is they all get the write-offs, there's corporate welfare. I don't know of one major corporation. And if you're out there, write us, will you, that pay 35 percent tax.

It's another excuse to get rid of Obama.

PERINO: Kimberly, one of the things that has dogged the administration since February of 2009 is that their economists said unemployment would go to eight percent if the Congress passed the stimulus plan, which they did without Republican support.

Let's now listen to Jared Bernstein for eating a little crow for having said that.


JARED BERNSTEIN, FORMER WHITE HOUSE ECONOMIST: At the time, we simply didn't have good information. We now know with revised data that in the very quarter where we made that wrong projection, the economy is contracting at a rate of almost nine percent. So, the statistics were way off at the time.

It's also the case that that forecast that we gave back then was the consensus forecast of the economics community. I mean, it wasn't just that we were wrong. Everyone was wrong.


BECKEL: Thank you, Jared, buddy. It's good to know this now.

PERINO: He is proving that almost only counts in horseshoes.

And I wanted to ask Kimberly -- would that hold up in a court of law?

GUILFOYLE: No. And it's ridiculous. He is saying, listen, we weren't just wrong. Everybody was wrong. We've all like missed the boat on this one.

Well, that's not very encouraging news. Bigger picture-wise for 2012, it's not going to drop below eight percent in time for this guy, Mr. Obama/where's the jobs plan to get re-elected.

But I'm telling you, they made promises. They made predictions. They failed miserably. And now, you know what Obama is doing, he's passing the buck to the "super committee."


BECKEL: Kimberly, I'm not taking a shot here at Dana's former employer, but the fact is they cut taxes (INAUDIBLE) big employment. It didn't happen.

PERINO: They did -- 52 consecutive month of job growths.

BECKEL: And mostly in the low rate jobs.

BOLLING: And a 5.4 percent unemployment.

PERINO: Actually, I think --


BOLLING: The fact is it was a bad call. He now tells us this, after frankly a few of us went on and defended it. But it is not a figure that is going to beat Obama. Somebody has got to beat Obama and it's somebody who is not generic, somebody doesn't use Brylcreem all the time.

PERINO: We actually have an interesting thing I want to ask Greg about.

In D.C., you can buy a lot of souvenirs.


PERINO: You know, Republicans and Democrats, it kind of depends. What I remember when we first left the White House, the "Obama love" t-shirts where everywhere.


PERINO: And then you have, like, a small section that says "Don't blame me, I voted for McCain." But now, we have a souvenir shop owner that says he can predict election based on products sold.


GUILFOYLE: He's right.

GUTFELD: Well, because he claims that the souvenirs are dying off. But the thing is, it's not -- they're not coming up with souvenirs that fit Obama, like you need a food stamp wallet. That would be nice. Or -- you know, because there are millions of people on food stamps right now.


GUTFELD: What about Obama sweatpants, something you wear while you're unemployed.

GUILFOYLE: Oh, my goodness!

BECKEL: Listen, let me just say that Obama has sold more memorabilia than any other presidents combined, number one. Number two, you have to look at the market. They all bought something, including Eric. I know what you feel bad about, I've figured this out.


BOLLING: You want tattoo removal?

BECKEL: I think that's a great idea.

BOLLING: I've got a better idea and I'll let you be a business partner with me. Obama bumper sticker removal.

PERINO: Actually, Eric, on my neighborhood in Capitol Hill on D.C., you actually have people that still have like John Kerry stickers. They're sort of faded.

GUTFELD: That's holding their car together because it's a beat up Volvo. If you peel the stickers off, the car just falls.

BECKEL: I figured out why Eric has got this thing. You really did vote for Obama, didn't you and you just don't want to admit --

PERINO: Well, there's nothing more sad than a lover scorned.

GUILFOYLE: Dana, do you remember before the election the Obama t-shirts were selling like hotcakes, and there's this one lady at the Capitol, she was selling them and dancing, and she's like, "$5, Barack Obama," right? Now they can't even give away --


BECKEL: How many, "Don't blame for me, I voted for McCain." How many of those did you see?

PERINO: How about my favorite one which is "Miss me yet?" President Bush.

GUILFOYLE: Yes, that's a good one.

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