President Obama's worst week ever?

This is a rush transcript from "Hannity," February 1, 2013. This copy may not be in its final form and may be updated.

ERIC BOLLING, GUEST HOST: Only two weeks into his final term President Obama managed already to have his worst week ever and it is all thanks to his inability to get a handle on the economy. Let's run through a couple examples.

On Wednesday, reports emerged that the economy contracted for the first time in more than three years. Then yesterday, we learned that applications for jobless benefits jumped by more than 38,000 in a week, topping out at 368,000. This news coincidentally came the same day team Obama announced it was disbanding its jobs council. Then the icing on the cake hit this morning when we learned the unemployment rate is back up to 7.9 percent, and that number could easily be well over 10 percent if the Labor Department didn't play with the numbers to suit the left wing narrative.

Here with reaction, our radio talk show hosts Hugh Hewitt and Leslie Marshall. Leslie is also a Fox News contributor. But Hugh I will start with you. Tough week for Obama-nomics. But what do you expect when you only spent 5.8 trillion bucks.

HUGH HEWITT, RADIO TALK SHOW HOST: You know, Eric, it was a terrible week, you're absolutely right. It may go down as the worst week as the beginning of the recognition that we are going into an Obama recession, and the president has turned his back on the nation's unemployed. That number going up to 7.9 percent. Everywhere you turn, every arm of the Obama administration is launching a war on jobs. Everywhere you turn. Every agency. And the consequences of these are just beginning to show up and he is indifferent to this and I think it ought to shock a lot of Americans.

Now Leslie, on Wednesday, President Obama said he was disbanding these jobs council. Why? Because the economy is so good, jobs are so good or he is not up for re-election again?

LESLIE MARSHALL, RADIO TALK SHOW HOST: Well, I would think you guys would be really happy about this. I mean, this cuts more spending. And Eric, are you telling me when the market closed at over 14,000 today we have a bad economy today? Corporate America is doing well.

BOLLING: Leslie, what do you mean it cuts more spending? It doesn't cost anything to get Jeff Immelt in the room or on the telephone, does it?

MARSHALL: Let me tell you, corporate America today proved with the market that they are doing fine. It is corporate America the private sector that everybody on the right like my friend Hugh there says should be creating jobs, not the government. It is not the government's responsibility to create jobs so why do we need a jobs council, gentlemen?

HEWITT: Well, Leslie, it is the --

BOLLING: Go ahead.

HEWITT: It is the government's responsibility not to kill jobs. Let me give you three specific examples. The Las Brisas coal plant in Corpus Christi killed by EPA just this week. The Gunnison Sagehan (ph) in Southwestern Colorado, listed by the Department of Interior, going to shut down oil and gas exploration, kill off housing in Colorado.

And then let's talk about the sequestration that looms or in fact the medical device tax, 2.3 percent on gross receipts. Perhaps the biggest job killer of ObamaCare kicked in. That is the government killing jobs. The private sector is doing the best it can Leslie. But your president, your party, your representatives are at every turn killing off jobs in this country. Not the private sector that is not doing its job, it is the federal government that is killing it.

BOLLING: All right. Hang in there both of you. I want you to listen to on Wednesday also when the GDP number came out and showed a contraction for the first time in three and a half years, 5.8 trillion bucks down the drain contracting the economy. ABC kind of talked about it a little bit on the nightly news. NBC disregarded it completely. Didn't even show up. Listen to what Scott Pelley at CBS News had to say about it.


SCOTT PELLEY, CBS NEWS: A shrinking economy over time spells recession. But don't panic yet, this number is likely to be revised as more data come in. Senior business correspondent Anthony Mason found this dark cloud may have a silver lining.

ANTHONY MASON, CBS NEWS: The headline may be disappointing but the underlying economy was showing renewed strength at the end of last year.

MASON: As one economist put it, it is the best contraction in the U.S. economy you are ever going to see.


BOLLING: First of all, I'm not sure Scott Pelley is an economist that works with the department but he may be. So, I don't know how he knows it's going to be revised, and by the way, if it's revised is going to be better?

Anyway, number two, silver lining really a contraction? Number three. Really? That's all. Really?

MARSHALL: Listen. You know, I'm normally a pessimist. But can I make some lemonade with all the lemons that you guys want to see here? We have to look at -- if we want to talk about revision. You, remember when all you guys were saying that the books were cooked before the election and now we see the revisionary numbers for September, October and November up. We see a hundred thousand jobs created in construction in just the past four months.

That tells me, guys, that the housing situation is turning around and you know that is key to our economy. This is not double-dipping. This is not a recession. This is a tenth of one percent difference in the unemployment.

BOLLING: Hold on guys.

MARSHALL: .and the GDP is due to the cuts in the Defense Department you guys know.

BOLLING: Whether the economy is strong or not you may ask the 12 million people out of work whether it is or not. But is there ever a good time to have a contraction, a recession in the economy number one and why is the left leaning left wing media covering up for this?

HEWITT: That CBS report Eric is amazing. This isn't a talking point. These jobs that are killed in Corpus Christi in Colorado across the medical device industry , these aren't talking points, Leslie. These are real people who are losing their futures because this president and his administration are killing jobs. Two point three percent tax on gross receipts is going to take one of our strongest sectors, the medical devices sector, it's got 400,000 people working for it, it's going to contract by 10, 20, 30 percent if this President does not act.

So, it is not a talking point. A contraction in the economy is a disaster for real people. Not Beltway people, not pundits, not CBS reporters but real people. And I can't believe the president is actually not talking to this and is off watching the Super Bowl or something. He has got to be concerned.

BOLLING: Leslie, you rattled of some numbers. If the economy is so good and the Obama recovery is happening and Obama-nomics is working, why are 48 million people on food stamps right now, and the number we are spending on food stamps has tripled since he took over?

MARSHALL: I never said this is a great situation, what I said is this is not going backward. We are not double dipping. We are not in a recession. When you look at those revisionary numbers, when you look at construction, when you look at healthcare by the way which everybody said would cost jobs and has created jobs according to this last report, this is steady. Slow, absolutely, no question. But we are not going in the wrong direction. I think what this shows actually is that we don't need more cuts. I think the spending cuts have actually negatively affected our economy and we saw that with the GDP.

BOLLING: Hugh, I got about 15-20 seconds. Last word.

HEWITT: Well, the sequestration on the Department of Defense is a disaster. The president said it wasn't going to happen. The president has not said a word about stopping it. Once again, he is responsible for the contraction. And Leslie, negative growth is negative growth. It's down one-tenth-of-a-percent. It's the beginning of the Obama recession.

BOLLING: All right. We'll have to leave it there. Hugh Hewitt, Leslie Marshall, thank you, guys.

Content and Programming Copyright 2013 Fox News Network, LLC. ALL RIGHTS RESERVED. Copyright 2013 CQ-Roll Call, Inc. All materials herein are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of CQ-Roll Call. You may not alter or remove any trademark, copyright or other notice from copies of the content.