Updated

This is a rush transcript from "The Five," January 2, 2017. This copy may not be in its final form and may be updated.

(COMMERCIAL BREAK)

ERIC BOLLING, CO- HOST: Hello, everyone. Happy New Year.

DANA PERINO, CO- HOST: Oh, my god. That's terrible.

BOLLNG: I'm Eric Bolling along with Kimberly Guilfoyle, Juan Williams, Dana Perino and Greg Gutfeld. Its 5:00 in New York City and this is "The Five."

We hope you had a wonderful holiday, 2017 -- yes, there was a little bit of a flop. I know it was kind of fun

GREG GUTFELD, CO- HOST: That's the Obamacare of New Year's Eve party favors.

KIMBERLY GUILFOYLE, CO- HOST: Oh my gosh.

BOLLING: Oh, producers. All right, anyway, a new year in America, we'll soon have a new president for the first time in eight years. Big changes are in store for the country, good changes. President-elect Donald Trump has a massive agenda to tackle and he's promised to deliver. We're going to take a look at some of his biggest campaign pledges, starting with a complete overhaul of Obamacare.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT-ELECT: We have to repeal it and replace it with something absolutely much less expensive and something that works where your plan can be tailored. We have to get rid of the lines around the state, artificial lines, where we stop insurance companies from coming in and competing.

(END VIDEO CLIP)

BOLLING: All right KG -- let me get rid of --

GUILFOYLE: Oh, my goodness. I am telling you this should be -- this is like daily excitement for 13-year-old girls. They love all the colors and sparkle.

BOLLING: So, Obamacare. Weeks before the election, Obamacare premiums soared. A lot of people said that was a lot of reasons why President Donald -- presiednt-elect Trump is now going to be president Trump.

GUILFOYLE: Yes, in fact -- yes, very soon. OK, so here's the deal. Obamacare is going to fail and die and fall on its own sword, that's the problem, or on its own mandate, which is the centerpiece, the tent pole of Obamacare keeping it going with the funding because there's not enough like to be able to keep it going.

So unless the president-elect goes ahead and repeals and revises, it's going to die a slow death, which is really problematic to all the people that are signed up for it. So, this is something that has to be done in very quick order to make sure the people are covered with quality choices and quality care for their families.

BOLLING: How quickly can, Dana, can he start on dismantling or replacing Obamacare?

PERINO: Well, I was just taking a couple of notes because I was thinking - - he could start right away and in fact there's a push by some people who say repeal it on day one so, walk from the Capitol when -- as he's sworn in, as he passes by, hand the baton to Paul Ryan and say, OK, now go do your work on Obamacare and get that done on the first day.

I think there is resistance some Republicans who say, now, this is a little more complicated than that especially when, as Greg has pointed out. When you take something away from people, it is harder than giving something new to them. And I think the big question will be what do the Democrats do? So, they have a choice to make. They can sit on their hands and say, we're not going to help you. You want to dismantle it? Fine.

And I don't think that will be possible for them to do for very long because the constituents are going to demand something better. They're not going to be in a better situation in terms of fixing Obamacare and there are so many red state Democrats who are up for election in 2018 that I think that eventually after some hemming and hawing, they will come to the table and try to work on improving their version of Obamacare. If they don't like the repeal and replace, I do think the Democrats eventually come to the table, but it will be ugly.

BOLLING: Juan, would it be wise for the Democrats to come to the table? Obamacare is so widely unpopular. Do they want to be seen as the ones who want to keep Obamacare?

JUAN WILLIAMS, CO- HOST: It's not widely unpopular. It's widely unpopular with Republicans specifically but even less so of recent vintage were you see the numbers going up in terms of popularity and the turn out just this past year in terms of people signing up, even during the election, was breaking records. So, there is still a demand. There's a market for it.

The question is about the political promise, Eric and I think the political promise is loud and clear on the Republican side. Repeal Obamacare. But I don't think this is going to happen anytime soon. Dana points out that the Democrats have -- Republicans will need 60 votes.

They'll need Democratic cooperation in the Senate if there is any new law. In addition to which Donald Trump has already said on "60 Minutes" there are elements he wants to keep. So, it's going to be a fight.

GUTFELD: You know what, imagine Christmas day and you give some little brat a present and it's like a bicycle. She didn't want a bicycle. She wanted a pony. Try to take that bicycle away from her. Even though she didn't want the bike, she wants the bike.

So, you give a social program or a government program to America even though they claim that they hate it, you don't want to be the anti-Santa Claus that then comes along and says I'm taking it back unless you've got something better to offer and if he comes out with the plan.

And he's going to name it. The no-Obamacare. Going from Obamacare to No- Obamacare and it has, you know, private savings accounts. You can keep your doctors. There's competition across state lines. All of a sudden, it's like this is better than the bicycle. It's a flying bicycle.

BOLLING: Or a pony.

GUTFELD: Or a pony.

BOLLING: Ponycare.

GUILFOYLE: The way your mind works.

BOLLING: How about this one --

(CROSSTALK)

BOLLING: -- and that's where another huge item on the president-elect's agenda, immigration.

(BEGIN VIDEO CLIP)

TRUMP: We will build a great wall along the southern border. And Mexico will pay for the wall. On day one, we will begin working on an impenetrable physical, tall, powerful, beautiful southern border wall.

(END VIDEO CLIP)

BOLLING: Big and beautiful.

GUILFOYLE: It sounds attractive.

BOLLING: That's good.

PERINO: So for years, going back two administrations, the idea was to try to do immigration reform in a comprehensive way so that you get everything done because you wouldn't get enough people to come to the table for let's say H-1B visas that you were for border security and vice versa so they wanted to do it altogether.

I think one of the ways Donald Trump would be able to advance his agenda on immigration is to dispel with that thinking and to do it piecemeal and to do border security first. I do think that would actually pass and then try to do some of the other stuff in terms of visas.

BOLLING: Greg, your analogy on the other -- on the Obamacare applies to Republicans on the wall.

GUTFELD: Imagine Christmas morning, and the night -- for weeks you've been promising little Billy a giant wall and he can't sleep at all. And he wakes up in the morning and he opens it up and it's a fence. But I wanted a wall! It's just like a wall but it's a fence. No, it's not. I can tear it apart.

GUILFOYLE: And he threw it.

GUTFELD: So, he's got to come up with something. This is his USP. His unique selling point -- is that what it is, USP. When you get Donald, you get the wall. That's what you expect. So, I don't know how he's going to get around not giving the wall.

BOLLING: KG, I still contend he will build a physical barrier, a wall.

GUTFELD: I think he has to.

GUILFOYLE: Yes.

BOLLING: With the vast majority of the whole southern border being, you know, separated by a wall with Mexicans.

GUILFOYLE: The wall excites me. I like when he talks about the wall. It's big. It's beautiful. It sounds like, you know, a sight to behold. One of the -- we'll make it like the eighth wonder of the world. But here I think it's going to be --

GUTFELD: An even better wall. Remember --

GUILFOYLE: An even better wall, correct. Now, here's the thing. I think it's going to be more complex than that because it will have like quick response teams. It will have surveillance It will have drones. It will have all of these different things encompass so that you have kind of all of the elements to be able to put it together, not just a physical barrier. And he also said they would be a door.

BOLLING: Big, beautiful door.

GUILFOYLE: Like, I hope it's like the door in Trinity College in Dublin, Ireland. They have this gigantic big door like a castle and you have to knock on and hello, let me in.

BOLLING: Can we get in? Hello? Can we get in?

WILLIAMS: Yes, you can get in. You can just fly right over. Everyone else does. But I must say, this is the point where everything starts to collapse. Where Gregory's analogy is the kid goes wild, starts screaming and you say, hey, calm down. It's OK. It's OK. We've got fencing. And we already have drones. And we already have increased border security because we got more border agents.

And then the Republicans on Capitol Hill say, yes, we're going to give you even more border agents, but there's no wall. And they say, well, we can't do a wall. It doesn't make sense. It never did make sense. And then Newt Gingrich says, well, it was just something to get him elected.

And Paul Ryan says, you know, it's just a waste of money. And guess what, Mitch McConnell in the Senate says, you know, it's not on our agenda right now. We have other important things to do.

BOLLING: You imagine how many people you could employ by building a 2,000 -- 800 -- 500 --

GUTFELD: Imagine all the --

PERINO: But that's like Paul (inaudible) argument.

GUTFELD: That's where there's an alien invasion.

(CROSSTALK)

GUTFELD: There's a point here though that it is an infrastructure. Infrastructure -- you could take the undocumented workers and hire them.

BOLLING: This is how you get Mexico to pay for it.

PERINO: And make Mexico pay for that.

(CROSSTALK)

BOLLING: Mexican labors build the wall.

GUILFOYLE: Oh, this is a sign (ph).

(LAUGHTER)

WILLIAMS: Of course, I know --

BOLLING: Before even getting into office, President-elect Donald Trump saved 1,000 jobs or so by negotiating with Carrier to keep its plant in Indiana instead of moving their jobs to Mexico. And he's not stopping there. Mr. Trump says jobs will be the focus of his administration.

(BEGIN VIDEO CLIP)

TRUMP: We have to stop our jobs from being stolen from us. We have to stop our companies from leaving the United States and with it, firing all of their people.

Companies will come. They will build. They will expand. New companies will start and I look very, very much forward to doing it.

(END VIDEO CLIP)

BOLLING: Surely, Juan, that's pretty cool, right. Keeping jobs in America.

WILLIAMS: I'm all for it. So how's he going to do it? So, his plan it seems to me, at best, because I want to give Donald Trump a chance is you do tax cuts and you do some kind of regulatory relief. And I think that has a chance on Capitol Hill.

The problem is, tax cuts, regulatory relief, guess what, there's a lot of it in place, especially with tax cuts. Then it's a minor expense for big business. That's not comparable to payroll. And if you compare the payroll of Mexico versus the payroll in Texas and Indiana --

BOLLING: Can you just explain that.

WILLIAMS: Yes.

BOLLING: But if I'm saving a dollar on taxes versus having to spend an extra dollar on payroll --

WILLIAMS: Yes.

BOLLING: -- it's the same dollar.

WILLIAMS: No, but I said payroll. Payroll is -- let's say you pay a Mexican worker $3.69 an hour and you pay $30 an hour to the guy up in Missouri. As you're a businessman, that says pretty clearly, I'm moving to Mexico. And Donald Trump can't stop that. What he can do, Eric, he can try to impose some tariffs but that's going to start all kinds of trade wars and problems.

BOLLINF: Dana, your thoughts on the program that Donald Trump is putting together as Juan correctly points out, reducing tax burdens on corporations and even, you know, the punitive damages of fear (ph) attacks.

PERINO: Well, in the Obama administration there was actually nearly an agreement on the rate for corporate taxes. Donald Trump would go lower and I think that's fine, but actually the Republicans and Democrats were hovering around between 25 and 27.5 percent so, you could probably work a deal somewhere there, and I'm all for that. The regulations, obviously that's hampering business so that's another thing you could do.

But the other piece I think that is sort of missing from this idea is the education and job training. One of the things that IBM said was that, yes, we'll keep some jobs here. We'll invest more but we want federal money for job training and retraining for workers whose jobs have been automated, and that would be my third point, which is CEO's, and he wants to be the CEO of America -- CEO's think 10 to 15, 20 years ahead for their businesses.

So thinking that far ahead for America and also the world is that these jobs, just from an efficiency standpoint, will go away as technology improves. So how do you retrain those workers in order to keep jobs in America not from going overseas but from going to robots.

WILLIAMS: Let me just jump in real quick to interrupt to say, on coal, which is his big point, I'm going to bring back coal jobs. Just no way. I just, I mean talk about the Grinch --

GUILFOYLE: You’re a little hung up on that.

WILLIAMS: I don't see how, I mean because --

GUILFOYLE: Why are you throwing so much shade on between coal?

(CROSSTALK)

BOLLING: Do you ever see how much of our electricity usage is fired by coal? About 40 percent.

WILLIAMS: Yes. But do you understand that people are replacing that with - -

GUTFELD: OK, let me use your analogy. Bill, it's Christmas, right?

UNIDENTIFIED FEMALE: Yes.

GUTFELD: Billy says he wants to a bicycle but he demands that the bicycle be made in America. So Billy's parents go and get the bicycle and it's made in America by robots. The fact is increasing productivity is happening with fewer workers. Even Carrier took the incentives from the deal and invested it in automation, not in jobs. So the biggest job feat is progress. And you can't tax progress because that's immoral.

BOLLING: True.

PERINO: And impossible.

BOLLING: But that's going to happen with or without lower corporate taxe and you still --

GUILFOYLE: Right. There are other things to do to.

BOLLING: Manufacturing -- yes, it's becoming more efficient, but that's where the line of these jobs are going to -- were going to keep according to Donald Trump in America versus going to areas where as Juan correctly points out labor is far cheaper.

GUILFOYLE: Right. So that's what we have to do. We have to create incentive-based programs. There are number of ways to do that. How about lowering taxes? Tax cuts for corporations, reduction in regulatory costs, lower energy costs from increased production in general. We talked about infrastructure jobs. The whole focus and mantra is going to be, yes, America first. Hire in America.

Produce and manufacture in America and make us you know, enticing for other countries to be able to purchase our goods instead of always importing. We want to have friendly trade relations but it's got to be both ways. It's a two-way street. OK, we're going to buy some stuff from China. They got to buy some stuff here too.

And we should be holding on to the American companies. There is something wrong if American companies are feeling squeezed and boxed in and have no other egress but to go out and take their companies and take those jobs out of this country.

BOLLING: We're going to leave it right there. Up next, how president-elect Trump is likely to reshape the Supreme Court, and later, our predictions for this coming year, our resolutions and more. Stay tuned.

GUILFOYLE: Oh my God.

(COMMERCIAL BREAK)

GUILFOYLE: Welcome back. We're taking a look tonight at some of president- elect Trump's campaign pledges as he prepares to be sworn in on January 20th. There is still a vacancy on the Supreme Court that needs to be filled following the passing of Justice Scalia. And there could be other vacancies to come during Mr. Trump's term on office. Here is how he's pledging to put his stamp on the high court.

(BEGIN VIDEO CLIP)

TRUMP: We are going to appoint justices of the United States Supreme Court who will uphold our laws and our constitution. The replacement of our beloved Justice Scalia will be a person of similar views, principles, and judicial philosophies. Very important. This will be one of the most important issues decided by this election.

(END VIDEO CLIP)

GUILFOYLE: All right Dana, you made a prediction of this you just --

PERINO: I know, we're going to talk predictions a little bit later in the show, but one of the things that I said --

GUTFELD: Are you predicting that?

PERINO: I will predict that. Thank you. There's another one I can cross --

GUTFELD: I predicted you would say that.

(LAUGHTER)

PERINO: So do you have a list too?

GUTFELD: Yes.

GUILFOYLE: I predicted you would say that (ph).

GUTFELD: I predicted that.

PERINO: So there is Supreme Court vacancy before the election. That was my prediction. I did not know who it would be and sadly it was Antonin Scalia.

So, now you have a situation where the Democrats are going to be in a box. And I have to say that I think most valuable player award on the Supreme Court issue goes to Senator Mitch McConnell who early on under enormous pressure and terrible press coverage was the first to say we will not hold a vote for Merrick Garland, President Obama's Supreme Court choice. We will not do it.

And he just got pilloried in the press and he was right to just hold because now that will go away and Donald Trump will have a chance, I think probably before inauguration to announce who that replacement will be and they'll probably start hearings because it will take a while for that to get done.

GUILFOYLE: Are you calling on yourself because --

GUTFELD: Yes. I think that, you know, we've talked about how this country needs to be unified. What can president-elect Trump do to unify the country? Nominate President Obama to the Supreme Court because he's a lawyer. He would probably look really good in a robe and it would unify the country. If President Trump nominated Barack Obama to the Supreme Court, people would go, oh my God, that's genius. And he would be seen as a wonderful person.

GUILFOYLE: And help ObamaCare.

BOLLING: So --

GUTFELD: They do that after that.

BOLLING: So if you have a little brat and you want Obama on the Supreme Court but yet you get, say, Ted Cruz on the Supreme Court --

(CROSSTALK)

BOLLING: Then --

GUILFOYLE: You wish you got the bicycle?

GUTFELD: Yes.

PERINO: You realize the wisdom of that gift later on in your life.

GUILFOYLE: Schwinn Cruiser.

BOLLING: That could be -- look, whoever, you know, Donald Trump put out a list of 11 candidates and all of them are constitutional conservatives.  And I think he's going to be -- I think we're going to be pleasantly surprised with whoever he picks. And again, I do think Ted Cruz would make a great Supreme Court justice.

WILLIAMS: I think the worry here is on the Republican side, if you don't get someone like a Justice Souter who came on the court as a conservative and people say, oh my gosh, he's kind of wish he watching (inaudible). They want another Justice Scalia. But remember Democrats have a say in this and that's why it's not the choice, it's not the person that Donald Trump nominates. It's the process. It's the confirmation hearings.

First and foremost, Mitch McConnell -- Dana is absolutely right, I think Mitch McConnell is my winner on Capitol Hill last year because in part he was rewarded for obstructing Merrick Garland by saving the seat for a conservative. But guess what, now that has energized the Democrats to say why would we treat a Republican any differently? They're going to try to slow things down unless Mitch McConnell goes ahead and employs a nuclear option on a Supreme Court nomination and says we don't need 60 votes. It's just going to be a majority.

GUILFOYLE: Yes. It's a very good --

WILLIAMS: And that will blow up --

GUILFOYLE: Change it up for four years

BOLLING: Who push the nuclear option through? Who was that again?

(TECHNICAL DIFFICULTY)

(CROSSTALK)

BOLLING: Well, its Harry Reid will look into this --

WILLAMS: You are confusing --

GUILFOYLE: I'm really sorry Reid is going to be Bolling?

BOLLING: No, I'm not. I'm talking about who brought that --

WILLIAMS: Well, I'm just telling you. That's the rules. Right now as it stands, it will take 60 votes and Democrats are going to stop it.

GUILFOYLE: Yes. OK, little Billy. Another campaign pledge of Mr. Trump, make America safe again. One way to prevent new attacks here at home, keep terrorists out and stop taking in refugees from Muslim countries who can't possibly be properly vetted.

(BEGIN VIDEO CLIP)

TRUMP: We should only admit into this country those who share our values and respect our people. The time is overdue to develop a new screening test for the threats we face today. I call it extreme vetting. I call it extreme, extreme vetting.

(END VIDEO CLIP)

GUILFOYLE: It has a ring to it? Extreme vetting, Bolling. Are you all in?

BOLLING: Yes, but my promise -- how extreme can you be when you don't know where the vast majority of the refugees -- not where they're coming from or what their lives were about when they were there, when they were in Syria, Afghanistan, Iraq, Yemen.

They're coming over with no history of, clearly no work histories, no school histories, no criminal record histories and these countries aren't very willing to turn them over to us. So yes, you can extreme vet and try and figure out what they're about now but --

GUILFOYLE: That's the point, unless you can verify and cross (ph) to verify.

BOLLING: Listen, extreme vetting is better than what we have now but we're still -- I mean we are still very vulnerable. Let anyone in that you don't know a history of, you're vulnerable anyway.

GUILFOYLE: Well that's the thing. So Dana, what do you do? There's an obligation for public safety and try to prevent terror attacks. So there is a sense where you have to do your due diligence. You have to properly vet people. You have a responsibility and obligation to do so.

PERINO: All true. And I would agree with all that. It depends on how they decide to do it because he has answered differently depending on the interview, and I think that he recognizes that there are innocent people like the children. He knows they are not criminals, but the parents? Like he doesn't know that.

So anyway, so how they decide to do that, but I would flip the question and say that the United States should have a different policy, posture going forward. That our goal would be to not create or to help prevent refugee crises from happening in the first place, and that is a very different posture for the United States in terms of the last eight years, which would probably cost some heartburn amongst the country and across Capitol Hill, but you solve the problem at its source and then you don't have a refugee problem.

GUILFOYLE: That's part -- very interesting you bring that up because that is very true. You have to preempt to get ahead of the game. But he's also said that you should create safe places and havens for them in their own country and make sure that they can be properly taken care of and really assist and yes, put dollars towards that to be able to do it so that there isn't this migration that is very problematic, fraught with problems in terms of verification in the process. So it's like the two can go hand-in- hand.

PERINO: Agree.

GUILFOYLE: All right, (inaudible). OK, Greg.

GUTFELD: Well, you know, whenever you talk about any kind of vetting, people immediately bring up the idea of profiling. Oh, my god, you're being bigoted and whatnot. It's not really about clothing. It's about doctrine. It's about shared values. It's not about that appearance of how people look but being -- but fearful of appearances that you might appear to be a bigot. You might appear to be racist.

And I think what we're going to see in the future hopefully is more manpower in dealing with this problem and less PC-controlled rules of engagement dealing with vetting that you know what, maybe you've got to take a risk and appear to be, I don't know, discriminating when in fact what you're doing is trying to save people's lives.

WILLIAMS: See, I think there is much more about keeping in constant with who we are as an American people and our values and the Statue of Liberty and welcoming people. And we have a great history of welcoming political refugees, take the Cuban refugees fleeing Castro. If you just get to this country, we will take you in. I think we have to be very careful. Now --

GUTFELD: I was denying that --

PERINO: But he used that against them too.

WILLIAMS: I think that you want to make sure, but where I disagree with Eric is we do so much already. It takes years for people to come through the current vetting process, and I think a lot of this is really a euphemistic language employed by Trump who initially wanted to ban all Muslims who now says, oh, we got to ban people who are coming from territories or states where we know there is terrorist activity.

GUILFOYLE: Well, they should have heightened scrutiny coming from those areas.

WILLIAMS: I agree but I think so much of it already exists.

GUILFOYLE: Well.

GUTFELD: I mean, to your point, there are homegrown terrorists so what do you do about that? You know.

WILLIALMS: That's right.

GUTFELD: Now we're talking about is the origin, the doctrine, the kernel of idea that leads to this.

WILLIAMS: Yes.

GUILFOYLE: Yes. Let's go. Next, 2016 --

GUTFELD: Where we going?

GUILFOYLE: Nowhere with you.

(LAUGHTER)

GUILFOYLE: It was certainly a rough year for Democrats. Will they change their message in 2017? That's ahead.

(COMMERCIAL BREAK)

GREGG JARRETT, FOX NEWS ANCHOR: I'm Gregg Jarrett at the Fox News headquarters in New York.

The sentencing phase begins tomorrow for a man who killed nine people at an historic black church in South Carolina in 2015. Dylann Roof representing himself. He said he will not call any witnesses or present any evidence.

You break it, you own it. That from House Minority Leader Nancy Pelosi on Republican plans to repeal and replace ObamaCare. President Obama meeting this week with House and Senate Democrats to talk about his signature health care law. President-elect Trump said he might keep parts of it.

Mariah Carey's team tried to explain her performance New Year's Eve. She stopped singing, blaming technical issues. Her reps claimed producers sabotaged Mariah, but the production company calls that absurd.

Stay with Fox News Channel, America's most trusted source for news. I'm Gregg Jarrett.

WILLIAMS: 2016 was the year that many Democrats, including me, gee, we'd like to forget about it. We lost the White House, failed to retake control of the Senate after big losses on election night. So will the party change its message moving forward? Democrats seem mixed on how to regain the trust of the white middle-class, in specific.

(BEGIN VIDEO CLIP)

VICE PRESIDENT JOE BIDEN: You have to talk to them.  You have to engage with them. You have to -- you have to go and let them know that you understand their anxieties.

UNIDENTIFIED MALE: Even our members from the coastal areas recognize that we are not a national party right now. There's -- we can't claim to be.

REP. NANCY PELOSI, D-CALIF., MINORITY LEADER: I don't think people want a new direction. Our values unify us; and our values are about supporting America's working families. That is one that everyone is in agreement on.  What we want is a better connection of our message to -- to working families in our country.

(END VIDEO CLIP)

WILLIAMS: Dana, how do -- how do you hear that?

PERINO: I -- see, it's like, if you were to clean out your closet, and you find that dress that you looked great in 20 years ago.

GUTFELD: OH, yes.

PERINO: And you think, "I haven't won this in 15 years. Should I get rid of it?" And I think, "No. You know what? It could come back in style."

It just feels like it's the same thing over and over again, and they don't get it. I really don't think they do.

Right before Christmas, Chuck Schumer, the new leader of the Senate Democrats, fired the entire digital video team of the Senate. Many of them had worked there for years. As if they're the problem, as if the message is the problem.

Instead, when I hear Joe Biden say that, I think it's fine to talk differently, but it's the results that matter. If the results were good, then they wouldn't have had a problem. But the results are bad in those areas, and that's why they said they want to change.

WILLIAMS: K.G.

GUILFOYLE: Yes, I mean, it's really true that it's kind of a recipe for disaster, because it just keeps going back to the same cookie recipe. It just doesn't matter.

And what you saw in this election, that the president-elect, Donald Trump, and his team were really sophisticated in terms of their use of social media and other outlets to be able to drive the messaging and also the use of rallies.

When you look at like, the numbers compared to Democrat spending, like 1.2 billion compared to Trump's 560 million. He was able to really monetize, you know, those dollars and those resources for maximum outcome. And they should take a look at that, like an honest look at it and say, "Wow, this is -- the game has changed now. We could have and should have done better than we did with those dollars." And they didn't put them to work in the right way that they needed to.

WILLIAMS: Eric, you know, one of the interesting arguments coming out of Democrats in Washington is, "You know what? Donald Trump is a phenomenon.  He's a one-time deal." And if they change their message, they think, "You know what? It's not going to do anything if you run into a Trump, but guess what? There's no other Trump coming.

BOLLING: So I'm blown away at the speed of which four years ago, remember, after the Romney loss, the GOP came out with their autopsy. Everyone said, "Wow, what's going on here? Is the Republican Party on its heels? Have we just now gone completely liberal in the country?"

In one election cycle, the 2016 cycle, it's gone from that to now the Democrats have to perform an autopsy. Have -- have the last ten years or maybe longer, have they become an outdated entity? And I think they have.  It's ten years of flat wages. It's ten years of minorities who they're supposed to represent and embrace, underperforming the rest of the economy.  Both Africans-Americans and Hispanics.

I mean, so Trump's brilliant line was, "Hey, what have you got to lose?"  That resonated, and he's right. What did they have to lose? And guess what? I think they'll -- I think everyone will be pleasantly surprised.

WILLIAMS: So Greg, I think this comes down to maybe people. People whose names you might recognize. Bernie Sanders, Elizabeth Warren...

GUTFELD: No.

WILLIAMS: ... Cory Booker. Are they the future of the Democrats?

GUTFELD: No, the future is Oprah.

WILLIAMS: Another celebrity?

GUTFELD: You've got to match star power with star power. And the left has -- liberals have a lot of famous people that are of that -- of that star...

GUILFOYLE: Caliber.

GUTFELD: ... caliber. And Oprah is No. 1, at least in my book.

Look, the overarching answer in terms of message, they have to jettison all the identity buckets and just see what happens. Try it for a month. Or do it for Lent, 40 days of divisive-free rhetoric. Because identity -- when you think about it, identity politics, like all ideologies, are addicting; they're addictive. And the reason why they're addictive is because they provide an answer for everything.

Identity politics, you can say anything, and all you have to say is, "Well, that's because you're white." Or "that's because, you know, it's white privilege." You can have the -- and that's why it's so easy to do.

So just try it for 40 days. And it can't hurt. Maybe your life will get better. Maybe you'll have more friends. You know? Maybe -- maybe America will fall in love with you all over again.

WILLIAMS: Yes, maybe you could repent for your sins.

Anyway, next, our predictions for 2017. Did our predictions from last year come true? Dana Perino cites (ph). Find out ahead.

(COMMERCIAL BREAK)

PERINO: Welcome back. It's time now for our annual predictions for the new year. If you're wondering how our soothsaying turned out from last year, take a look.

GUILFOYLE: Oh, my God.

(BEGIN VIDEO CLIP)

WILLIAMS: I think the power game of the year is going to be vice-presidential selection.

I would guess that Julian Castro, my bet he is part of the ticket for the Democrats going in 2016.

GUILFOYLE: You know it. In just a matter of hours, it is going to be the most amazing New Year's Eve show ever.

BOLLING: I'll make my prediction, as well.

GUILFOYLE: I'm excited.

BOLLING: I'll jump on that one.

PERINO: I believe that there will be a vacancy on the Supreme Court before the election in 2016.

GUTFELD: My prediction and who will fill that vacancy...

PERINO: Yes.

GUTFELD: ... Elisabeth Hasselbeck.

PERINO: Oh.

GUTFELD: That's -- my prediction is, as we know, Elisabeth Hasselbeck has left "Fox & Friends." Who will replace her? My prediction will be Donald Trump.

(END VIDEO CLIP)

WILLIAMS: Oh, my gosh.

GUTFELD: I was off slightly. Well, he was on "Fox & Friends" a lot.

WILLIAMS: I think you were right. I think you got it.

PERINO: Let's start with you, then. What is your prediction for this year?

GUTFELD: I actually have a fairly serious one. I've noticed a rise in non-binary pronouns. These are pronouns that are not "he" or "she" but like "ze," for people who reject identities. Now we're seeing other kin.  These are people who identify as animals and plants.

So my prediction is in identity-specific adaptation, where people are going to identify as other people. Like what could stop me from saying, "I'm Oprah Winfrey." If I feel that I'm Oprah Winfrey, why can't I say I'm Oprah Winfrey if that is my identity? If I can choose to be a plant or a kangaroo, or a male or female, or a transgendered flying buttress, why not?

GUILFOYLE: Can you just stick with purple penguin?

GUTFELD: Purple penguin.

PERINO: An interesting prediction.

GUTFELD: Identity-specific adaptation.

PERINO: Kimberly, what do you have?

GUILFOYLE: Well, I predicted it was going to be an amazing New Year's Eve.  Wasn't it, Bolling?

BOLLING: It was amazing.

GUILFOYLE: Wow. Wow.

BOLLING: Crushed it. Crushed it.

GUILFOYLE: Let's do it again. Oh, we just did. OK, perfect.

OK, so here's the deal. I'm going to -- I'm visualizing, instead of, like, candy canes and treats and salami, I'm visualizing jobs. I'm visualizing a robust 2017, jobs for people for the working men and women that were left behind. Happy families around the dinner table with money in their wallets.

PERINO: OK, we only have 90 seconds, so Juan, you're next.

WILLIAMS: I think that the confirmation fights early in the year are just going to be spectacular blowups. And my guess is that one of Donald Trump's cabinet picks is not going to make it through the confirmation process.

PERINO: That's typical, though.

WILLIAMS: I would look at Tillerson. I would look at Sessions. I would look at Carson as the leading candidates to fall by the wayside.

PERINO: There's always one that doesn't get through.

Eric.

BOLLING: OK, so with the wave of populism -- Brexit -- nationalism and populism -- Brexit and Trump -- I think it will continue to spread throughout 2017. I think globalism is on its way out, and nationalism will be on its way in, which means trade deals will be renegotiated. And also this one, very importantly. Security deals may be renegotiated. With the trade, I think of NATO -- I'm sorry, of NAFTA, and with the security, I'm thinking of maybe some NATO deals going on.

PERINO: So I feel like my colleagues here played it really safe. They didn't want to go out on a limb. So I'm going to do that. I've got three.

And I am three for three in the year.

GUILFOYLE: You're good at these, though.

WILLIAMS: Yes, really.

PERINO: I believe, No. 1 -- you'll like this -- Kate Middleton will and announce she's pregnant with her third child sometime within 2017.

GUILFOYLE: Oh, good. Didn't you predict this before?

PERINO: I did predict it in 2015.

GUILFOYLE: Thank you.

PERINO: I believe that Angela Merkel will resign before the German election.

BOLLING: Wow.

GUILFOYLE: I think that's a strong pick.

PERINO: Strong prediction.

And the third one, I believe Al that Franken will start to position himself to be the challenger to Donald Trump's reelection in 2020.

WILLIAMS: Wow.

GUTFELD: Are you kidding?

BOLLING: Franken?

PERINO: I believe it.

GUILFOYLE: Now, you've Franken-steined me with your...

WILLIAMS: It would be a -- this will be a "Saturday Night Live" election.

GUTFELD: That's a hell of a prediction.

PERINO: So -- I know. Because you know what? I take this segment very seriously.

GUTFELD: You do.

BOLLING: You've been very good at it.

PERINO: All right, next, our resolutions for the New Year and a follow-up on how our resolutions for 2016 panned out. Did we stick to them? Stay tuned.

(COMMERCIAL BREAK)

(MUSIC: "SHE-RA THEME SONG")

GUILFOYLE: That was...

GUTFELD: Time to reveal our resolutions.

GUILFOYLE: ... kind of a little scary.

GUTFELD: All right, Dana, what's your resolution? Is it the dog?

PERINO: All right. OK, so I'm going to go full robot on you...

GUTFELD: Yes?

PERINO: ... in a way. But actually, what I really want to do is to utilize all the new technology that's available that will make life easier for me. So, like, earlier this year -- this year, well, last year -- Kimberly taught me about the Venmo app.

GUILFOYLE: Thank you.

PERINO: That helped. I just learned how to download the little app so that when I go on the train to go to the airport, I don't have to get a ticket. It's just all right here. I just -- I want to know all of that.  I don't want to be the old lady who doesn't know how to use anything.

So you have tips on how my life can be easier with technology, I would love to hear it.

GUILFOYLE: Yes. Starbucks app, Venmo app, AirO or Curve app.

GUTFELD: Get an app app.

PERINO: OK.

GUTFELD: It's an app for your apps. And they have an app for that, too called the App App App. And then there's an app for that, called the App Cubed.

Eric.

BOLLING: Very good. Well done. So they -- all day, like, "What's your resolution going to be?" And I'm -- let's do it this way. Hit me up on Twitter and Facebook. Tell me what my resolution should be. Right. A little -- I'll take it. Be critical if you want. How could I be better?  I'll take it and read some of them.

WILLIAMS: Do you want me to make a suggestion?

GUILFOYLE: Not more tan.

BOLLING: No.

GUILFOYLE: Not more tan, Bolling. Not more tan. You've got that perfect.

BOLLING: I'd like the audience to tell me how I could be better.

GUTFELD: That is going to be fun.

BOLLING: Certainly.

GUTFELD: I'm going to open up some accounts.

GUILFOYLE: That's it for that, actually.

WILLIAMS: This time -- this time of year, I always start -- I always start with the spiritual. So I think, you know, just kind of being more Christian. I think I'd like to be able to love more people. To just open my heart to more people.

GUILFOYLE: OK. (LEANS IN FOR A HUG)

WILLIAMS: Absolutely. You know that. (HUGS HER)

GUILFOYLE: OK.

WILLIAMS: But...

PERINO: Starts at home.

WILLIAMS: And physically -- but physically my problem...

GUILFOYLE: I wasn't up for...

WILLIAMS: ... I love sugar. I am a sugar guy. I mean, if you put a candy bar, if you put a cake, a cookie...

PERINO: Cookies on election night.

WILLIAMS: So I've got to stop eating sugar.

GUILFOYLE: You like sugar? OK. (GIVES HIM ANOTHER HUG)

WILLIAMS: Oh, my God. More sugar.

GUTFELD: Force some sugar on Juan.

BOLLING: Sugar will kill you, brother.

WILLIAMS: You think so?

BOLLING: Oh, yes.

GUTFELD: Both kinds of sugar.

All right, K.G.

GUILFOYLE: OK, fine. So I am going to be resolution buddies with Dana Perino.

PERINO: Yes.

GUILFOYLE: And we're going to keep each other strong in the New Year. And being strong means make life easy.

PERINO: Say no and mean it.

GUILFOYLE: Yes. Say no. Just say no.

GUTFELD: I don't know where this is going.

GUILFOYLE: And then what happens is, you simplify your life.

PERINO: You don't fill up that time with more work.

GUILFOYLE: And what do I do? I'm the worst offender of this. I know this. I'm like -- I know.

PERINO: Better make a resolution.

GUILFOYLE: Namaste.

WILLIAMS: Kimberly, I think there are a lot of men in America who don't want to hear you say no.

PERINO: Oh, boy.

GUILFOYLE: Maybe.

GUTFELD: On that -- so my resolution, I was thinking about, well, how did I do last year. This was my resolution from last year.

(BEGIN VIDEO CLIP)

GUTFELD: This year I'm going to try to be less sexy. Last year, a lot of my sexiness got me into trouble. And I decided, you know what? I've got to cut back...

GUILFOYLE: What?

GUTFELD: ... on the sexiness.

GUILFOYLE: You're kidding, right?

GUTFELD: No. I'm serious. My sexiness is, like, out of control.

So I'm just going to try to -- I'm not going to bathe as much. I'm going to probably wear dirty, soiled clothing. I'm just going to try to cut back. It might not stop.

PERINO: Really?

(END VIDEO CLIP)

GUTFELD: So what happened was the update is I failed. I became sexier than ever.

GUILFOYLE: Wow.

GUTFELD: And I left a trail of broken hearts and bodies wherever I went.  So I'm going to try again to be even less sexier than last year.

GUILFOYLE: Poor Dobbs.

GUTFELD: It's going to be hard. It's going to be very hard. I'm -- again, I'm going to bathe less. But that tends to create more attraction.

BOLLING: You cannot get any more sexy. So you'll probably...

GUILFOYLE: I don't know. By the way, I told you I got you the unicorn sweater.

GUTFELD: Yes.

GUILFOYLE: For Christmas secret Santa. And you're like, "No, what are you talking about?" There's the proof.

GUTFELD: Yes.

GUILFOYLE: Where is it?

GUTFELD: I wore it. I have a very bad long-term and short-term memory.

GUILFOYLE: No one knows where it is.

GUTFELD: All right. They're telling me to go. "One More Thing," next.

(COMMERCIAL BREAK)

GUTFELD: All right, time for "One More Thing." I'm going to kick it off.

So 320 million Americans are kept safe every single day of the year, and we want to say thank you to all the 1.3 million members of the -- active members of our military serving around the world and here, everywhere. And also, the 900,000 law enforcement officers who are sworn in and keeping us protected and safe every single day. Thank you to them. And those are a few from Cleveland. So a couple of...

GUILFOYLE: Yes, you took the pictures that you met. Very nice. God bless them all.

BOLLING: Juan, you're up.

WILLIAMS: All right, so 2017, I'm looking forward to the great eclipse.  It's called the Great American Total Solar Eclipse of 2017. For the first time in nearly 100 years, a solar eclipse will sweep across the entire continental USA. NASA says it will be a once-in-a-lifetime opportunity to see, so mark your calendars. August 21, 2017. It's so exciting. They've got a whole web site called Eclipse2017. It has information on science experiments, fun travel, even, like, special traditions or things you can do to take advantage of the moment. Ask somebody to marry you. So go online and check it out. You know I'm going to do it.

PERINO: Looking up.

BOLLING: You're going to ask someone to marry you?

K.G.

GUILFOYLE: OK. So it's time for...

(BEGIN VIDEO CLIP)

GRAPHIC: Kimberly's Food Court

(END VIDEO CLIP)

GUILFOYLE: Oh, "Kimberly's Food Court." I get so, you know enraptured with the dynamics of it.

OK. So some chocolate news.

GUTFELD: Yay.

GUILFOYLE: OK, everybody. You all in?

America is still gobbling up a tremendous amount of chocolate. According to market research, Greg, 2016 sales of chocolate expected to reach $18.8 billion.

GUTFELD: With a "B," Kimberly?

GUILFOYLE: With a "B," up 18 percent since 2011. I think if we make even more chocolate here, we can also help save this country.

GUTFELD: I'm going to make some chocolate later.

GUILFOYLE: Anyway -- eww.

BOLLING: While you eat, can I bring Greg in?

GUILFOYLE: Dark chocolate is good for you. And I like the...

GUTFELD: On a related note.

PERINO: What?

(BEGIN VIDEO CLIP)

GUTFELD: Greg's Nutrition Tips.

(END VIDEO CLIP)

GUTFELD: On top of things. You know, go to the movies. What do you do?  You order popcorn. Don't order popcorn. It's extremely expensive and also fattening.

GUILFOYLE: No, it's not.

(BEGIN VIDEO CLIP)

(MONKEY EATING POPCORN)

(END VIDEO CLIP)

GUTFELD: This little critter here eats popcorn all the time. And it raises a very important question.

BOLLING: What?

GUTFELD: Why does somebody have a monkey in their house?

GUILFOYLE: I asked you that.

GUTFELD: I know.

GUILFOYLE: But also, is it good for their digestive system with the kernels?

GUTFELD: Not good for mine. Those kernels are mighty rough.

GUILFOYLE: Popcorn is healthy for you.

BOLLING: Dana.

PERINO: OK. You guys thought I forgot.

GUTFELD: Oh, no.

PERINO: I did not forget.

GUTFELD: Not another calendar.

PERINO: Time for the Jasper calendar of 2017. I got one for everybody.

WILLIAMS: I can use that.

GUTFELD: Pass to your left.

PERINO: There you go.

GUILFOYLE: Thank you.

PERINO: Greg, sell it on eBay if you want.

BOLLING: Beautiful.

PERINO: Thanks you, Cherilyn Frenn (ph), who made me this. She painted Jasper on a feather.

GUILFOYLE: That's gorgeous.

GUTFELD: Sell it on eBay.

GUILFOYLE: Oh, my God. Look at the ice skating. Oh, my gosh.

GUTFELD: What are naked shots doing in there?

BOLLING: Happy New Year, everyone.

GUILFOYLE: Oh, my God. Felt Jasper.

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