Obama warns of doom and gloom as spending cuts near

This is a rush transcript from "Hannity," February 19, 2013. This copy may not be in its final form and may be updated.

SEAN HANNITY, HOST: Here to try and defend his old boss, former chair of the president's Council of Economic Advisers, professor at the University of Chicago Business, Austan Goolsbee, along with Fox News contributor Tucker Carlson.

Austan, let's go to the video tape. This was back in 2011 and this was Obama's idea. Let's listen to your old boss.


PRESIDENT BARACK OBAMA: Already some in Congress are trying to undo these automatic spending cuts. My message to them is simple. No. I will veto any effort to get rid of those automatic spending cuts, domestic and defense spending. There will be no easy off-ramps on this one.


HANNITY: Whoops. So I guess he's the one that's not fair, not smart, and he's the one that's hurting the economy, because it was his idea.

AUSTAN GOOLSBEE, FORMER COUNCIL ECONOMIC ADVISER: No, now, first of all, Sean you better hope all of those movies were 20th Century Fox movies or you're going to be in major violation of copy right laws.

HANNITY: That's all right, don't worry about it. I know you're looking out.

GOOLSBEE: Recall that the context of the quote that you just played from 2011 was that Republicans in Congress were trying to revisit the sequester and make it only on the discretionary part and go take out the defense money, he said no, I'll veto it if you try to do it.

HANNITY: It was his idea, the sequester, it was his brilliant idea. He brought it to Harry Reid.

GOOLSBEE: Sean, if you remember, wait a minute, wait a minute. Why did he go to Harry Reid? Why did he go?

HANNITY: Because he wanted it.

GOOLSBEE: Anybody who was watching this show, knows that I tried to bet you before the election that the loser would shave their head, and you wouldn't do it.

HANNITY: I'm not stupid. I knew it was going to be close, I predicted on this program it'd be close. And I said razor thin margin.


HANNITY: I got the videotape.

GOOLSBEE: Say I had lost the bet. Say I had lost the bet and I shaved my head, that doesn't mean that the fact that I proposed the bet doesn't mean I want to shave my head.

HANNITY: All right. I've got it.

GOOLSBEE: This was supposed to motivate the --

HANNITY: This was the president's idea, Bob Woodward said it, too. Let me go to Tucker Carlson.

Tucker, I think we've just got to throw in the towel. Let me go to the president, all the scare tactics, if you're conservative in this country, you want to poison the air and water, you don't care about children with autism, Down syndrome, you don't care about the elderly. We've got a fear mongering demagogue in the White House that doesn't like us and thinks we're evil. Watch, for example.


OBAMA, APRIL 18, 2012: I wasn't born with a silver spoon in my mouth. Michelle wasn't. But somebody gave us a chance. It's like these folks up here are looking for a chance.

OBAMA, APRIL 3, 2012: This Congressional Republican budget is something different altogether. It is a Trojan horse, it is thinly veiled social Darwinism.

OBAMA, OCT. 17, 2011: My plan says we're going to put teachers back in the classroom, construction workers back to work rebuilding America.

And then you got their plan, which is let's have dirtier air, dirtier water.

OBAMA, APRIL 13, 2011: Who are these 50 million Americans? Many of somebody's grandparents, some are middle class families who have children with autism or Down syndrome. These are the Americans we'd be telling to fend for themselves.


HANNITY: Obama, president demagogue, what else can you say, Tucker? It's actually funny at this point.

TUCKER CARLSON: Well, it's remarkable. I covered him in his 2008 campaign, I remember the one of his big applause lines was, I'll never try and give you candy, I'll never try to pretend this easy choices, I'll tell you the truth even if you don't like it. And how far we have come from there to this point where he said today, Republicans would like nothing more than just to hurt first responders for the sake of doing so in order to help their friends in the financial services business.

He actually with a straight face said this is a clear choice between making the rich pay more or hurting the rest of us, as if you could balance the budget on the backs of the rich. That's just a lie. As a math question that's a lie and he knows it's a lie and he says it anyway. I think that's pretty low, and by the way, it's a change, he didn't used to talk this way. In his first campaign, he didn't, people voted for him thinking he was a uniter and he's ceased trying. And this is not a partisan point, watch the tape.

HANNITY: You know, Austan, if I'm going to use the president's standard. Let's play a little word association game here. If he's going to say that conservatives want dirty air and water and throw granny over the cliff and kids with autism.

GOOLSBEE: He didn't say that they wanted dirty air and dirty water--

HANNITY: Their plan -- I'll play it again. Their plan, wait a minute. Their plan, let's have dirty air and water --

GOOLSBEE: That's not what he said.

HANNITY: Let me read it to you, "Then you have your their plan which says, let's have dirty air and dirty water." That was his words.

GOOLSBEE: No, he said their plan --

HANNITY: I just played it for you.

GOOLSBEE: Their plan gives you dirtier air and dirtier water, that's just a budget matter and factual matter --


HANNITY: That's not what he said, you're adding a whole bunch of words that he didn't use.

GOOLSBEE: Do the math on it.

HANNITY: All right. Here's my idea. I've got a good idea. If he uses those standards that we want to throw granny over the cliff, don't get -- kids with autism and Down syndrome.


GOOLSBEE: He never said -- it was nothing personal about you.

HANNITY: We just played it.

Wait a minute, then I'm going to call the president using his same tactics, I think the president is a thief. I think he's stealing -- when we borrow 46 cents of every dollar, he's stealing from our kids. Now, if I said that, would I be over the top? Would I be a demagogue?

GOOLSBEE: You have said that, you've said that many times and you've said it to me.

HANNITY: I think he's stealing from our kids. Tucker, is he stealing from our children? Breaking open their piggy banks and taking their pennies, because he went borrowing 46 cents of every dollar.

GOOLSBEE: Look, if you're concerned about the deficit then let's come up with a reasonable plan that has some revenues, that have some entitlement cuts, that has some discretionary cuts.

HANNITY: Republicans passed two plans.

GOOLSBEE: I disagree with what Tucker said, he never proposed doing it only with high income revenue, he absolutely did not on --

CARLSON: Did you listen to what he said. It's just not serious.


CARLSON: For example he said, if the sequestration goes through, we'll have to cut Head Start. Now, we have had Head Start for 48 years, we know an awful lot about how effective it is, and the evidence is in, it doesn't work. It produces no measurable change in the education levels of kids. If you can't get cut Head Start, you're the not serious about cutting anything. Period.

HANNITY: Hold it right there, we've got to take a break --

GOOLSBEE: I will send you the evidence on Head Start.

HANNITY: We're going to come back with a former Obama economic adviser who is adding words to what Obama says, Austan Goolsbee.

GOOLSBEE: I didn't!

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