This is a rush transcript from "Hannity," December 3, 2012. This copy may not be in its final form and may be updated.
SEAN HANNITY, HOST: A brand new Gallup poll only re-confirms our fears about where the country is headed. And it might be downright scary to you when asked if they react positively or negatively to the word socialism, a staggering 53 percent of Democrats said, well, they react positively while only 23 percent of Republicans did. Now, that is a 30 point difference.
And on the flip side, when they were asked how they react to the word capitalism, 72 percent of Republicans felt positively about the term. Only, 55 percent of Democrats said they did. And the results of the next poll should not come as a surprise. Seventy five percent of Democrats feel positively about the term the federal government. Only 27 percent of Republicans do.
So in other words, the left puts the federal government ahead of capitalism, freedom, liberty. Some very telling numbers. Here with reaction, former Alaska Governor, Fox News contributor Sarah Palin. Governor, your reaction to that. Do you think that shows the country has shifted?
SARAH PALIN, FOX NEWS CONTRIBUTOR: Well, hopefully people realize what Margaret Thatcher had explained. That the problem with socialism is eventually you run out of other people's money. But I think what the survey represents, Sean, is perhaps some survey recipients who answered the question are confusing corrupt dirty crony capitalism with genuine free market capitalism which is the good kind of capitalism. You know, we've shown a bright light on the problems caused by crony capitalism in recent months and in the last year or two. And I think that perhaps capitalism in general has taken a hit because of this new public awareness, because of that light that's been shown on crony capitalism. And perhaps, people are believing that capitalism in general isn't such a good thing. Of course, that's a mistake to believe that.
HANNITY: All right. So, we're about to hit this debt ceiling debate, 16.3 trillion. And at the time in 2008 when Obama's running, he says, it's irresponsible to take a credit card in the name of our kids to the Bank of China. We have to pay that money back. Now it's 16.3. They're running out of money once again, so Republicans are saying, all right, we've got to eat our spinach, we've got to eat our broccoli. We've got to study, we've got to turn off the TV, turn off the video games and do our homework. Is that as appealing as Democrats saying, free health care, free day care, we'll redistribute the wealth. I mean, it seems like there's a battle for the heart and soul of the country. Where does America come down, and where was America traditionally?
PALIN: Yes. Well, first let's address President Obama's flip flop on his philosophy there when it comes to raising the debt ceiling. He certainly condemned President Bush in those years of raising the debt ceiling, and then look at where he's taken this country. He's taken us into a state of bankruptcy with his changed idea on it being a good thing to raise the debt ceiling. A very scary proposal was recently revealed too by Geithner essentially saying, let the president have free reign on raising the debt ceiling to whatever level he wants.
HANNITY: Can you believe that?
PALIN: That's a very scary thought because Barack Obama is a socialist. He believes in socialism, in redistributing wealth, in confiscating hard-earned dollars of our small businessmen and women so that they cannot reinvest their dollars and hire more people and grow and expand. Instead, he believes in these failed socialist policies. And I say that not to personally condemn our president, but I say it because I face reality, and I see what's going on, and I see the path that we are on and the fact that Barack Obama has not had a budget in the four years that he's been in office and not been worried about it and continues to spend recklessly other people's money, and that is a sign of that idea of loving socialism.
HANNITY: Look. The bottom line is the math isn't there. But the mindset of the country has shifted and people want free stuff from the government. You said to the Republicans, though, and this was at the top of the program we were debating this. You said, Republicans, don't go wobbly, don't be a bunch of wusses as it relates to this. And I see some weakening among the Republicans and they feel they've got to go and get along. They fear they may lose the PR battle. What is your response to that in a little more detail?
PALIN: Well, I guess I shouldn't call politicians names.
HANNITY: Why not?
PALIN: So, I apologize for calling the wobbly ones wusses. Because that distracts from the point that has to be made. And the point is that we are a bankrupt country. Sixteen trillion dollars in debt, and with entitlement future looking -- we're really were 60, 70, 80 trillion dollars in debt. There isn't enough money in the world to pay back the future generations that we've stolen from and foreign countries that we have borrowed from and through quantitative easing, the money that's been printed out of thin air, so I say Republicans, go back to what the planks in your platform represent. It represents reining in government, putting back the power and the responsibility in the individual, not in the state, not in government again that gets us towards socialism. What goes beyond socialism, Sean, is communism. And I know, you know, I'm going to get slammed for speaking so bluntly about what's going on here, but that's exactly what is going on. Just, you know, read history. See how these very mighty empires have fallen because of government being so burdensome on the people and taking away opportunity and freedom, taking away an individual's work ethic. That leads to the downfall of that country, of that empire.
HANNITY: All right, Governor Palin, good to see you again. And good admonition and warning. And we're going to see where the country goes. We'll watch these Republicans closely, and if they go wobbly, well, we'll call them out on it. Thank you for being with us.
PALIN: Thank you.
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