central's world news headquarters in new york s this is "the daily show" with jon stewart. ["daily show" theme song playing] [cheers and applause]

welcome to dale day my name is jon stewart. what a program for you tonight. democratic minority leader nancy pelosi will be joining us to explain how a bill becomes a bill. we don't really know. herman cain was on tv. i love that guy. >> some people don't want to see herman cain get the republican nomination. while a businessman by the name herman cain stepped forward. here i am. that's the person herman cain is. that's the thing about herman cain is that the person people don't know. some people don't want herman cain to become president of the united states of america. >> jon: wow, now herman cain is acting like he never met herman cain. [ laughter ] who talks in the third person. maybe herman cain is the hulk. herman cain sad.

either way jon stewart isn't proud. [ laughter ] tuesday's press conference shows that since we heard aboutg6m cs old employer the national restaurant association settling two claims of sexual harassment against him more than a week ago, we swiftly moved to stage four of a political sex scandal. stage one was last monday. i have no idea what you are talk bsmg stage two was that same night. oh, right, that thing. and stage three was the rest of the week -- i'm not going to talk about this anymore. which brings us back to stage four the press conference to assuage the damage caused by how badly he handled steps 1-3. he kicked things off at a local wholesale flag warehouse with a definitive denial. >> i have never acted inappropriately with anyone period. [ laughter ]

> jon: unless you think offering a job in exchange for a roadside hummer is in appropriate question mark. you know how it is semi colon, closed paretheses. the deny is what he should have been saying all along. he has one important person in his corner. >> i have been married for 43 years to my glora. my wife said and this was aq direct quote, i have known you for 46 years. that doesn't even sound like anything would you do to anyone. >> jon: what kind of marriage would you have if when you get accused of putting your hands up other women's skirts you are

wife goes, that is so you. that is so you, herman. that is so you. she's your wife! of course she doesn't know you do that (bleep). i bet your wife doesn't know yourer in bet is wrowzer has a clear history button on it. it's your wife, herman. you have to do better than that. >> would you be willing to do a lie detector test to prove your honesty in something like that? >> yes. go ahead. yes, i absolutely would. >> jon: now you are cooking with gas herman cain. this is beautiful. as long as you don't immediately undercut the power after this statement. >> i would but i'm not going to do that unless i have a good reason to do that. >> jon: a good -- [ applause ] [ laughter ] let me think of a good reason. oh, oh, i got one! you are standing in front of five flags being accused of sexual harassment threatening tl

campaign. that's a pretty reason. [ laughter ] i think my favorite part of press conference was this next nugget. the fact is: these anonymous allegations are false and now the democrat machine in america has brought forth a troubled woman to make false accusations. >> jon: aahh, the democrat machine. i believe i've seen one of those. [ laughter ] the democrat machine -- i don't know if you know anything about it, from what i understand it costs billions of dollars. i runs on solar energy and it turns hope into disappointment. [ laughter ] yeah (bleep) deal with it. [cheers and applause] [ laughter ] really that sound like that joke physically hurt them.

hoping do disappoint me. oh, my balderos. [ laughter ] mr. cain, nothing personal but i don't think the democrats are trying1/l to sabotage your campn because a we all know democrats don't think sexual misconduct disqualifies you from holding the presidency. [ laughter ] (bleep) deal with it. [cheers and applause] and, b, they've seen you debate. >> gentlemen, before we leave the medicare discussion, defined benefit plan or premium support? >> a defined -- you go first, newt. [cheers and applause] >> jon: you know, ah, yeah, you know, so many specific thoughts about defined benefit v

premium support i need to organize them in a matter of this very knewance, smoke bomb! [ laughter ] herman cain if you want to blame a political party for you having to address the sexual harassment claims blame the republicans. you are getting this level ofvol scrutiny because you are the front runner and you are only the front runner because you are up against the keystone conservatives. the only people who haven't led so far are the so called reasonable one and the one whose name is synonymous with ass [cheers and applause]

>> jon: welcome back. [ laughter ] it all ended so suddenly. as you recall, it was just a year ago that the republican party cruised to a massive mid term election victory. once and for all taking america back from the democrats who had themselves taken it back two just years earlier. conservatives in the hizzie and to a lesser quite filibuster-y extent theonyesterday's off yean was the first chance for voters to sew their approval for the new republican agenda. we'll check in. >> ohio voter business a nearly

2-1 margin repealed a new law restricting the collective bargaining rights of state and local unions. >> it's a huge defeat for the republican governor and huge victory for organized labor. >> jon: wow, a huge victory for organized labor. this is what it's come to them for, a huge victory means unions are allowed to continue to exist. this is the biggest night since 1992's we don't have to use a sick day to celebrate christmas victory. [ laughter ] in fact, last night's loss so humiliating for ohio governor that fox news declared him a democrat. that's right. they -- that's how bad it was. no, no new york, no. not a governor, not a friend, a democrat. go home and get your (bleep) on. all right. moving on to mississippi a state so red even the art house movie they're at thes play larry the

cable guy specials. yesterday mississippi voters were considering a state amendment that would have defined embryos as people from the moment of their fertilization, single cell blastola with all rights. >> personhood initiative would have declared life begin as the conception. >> jon: wow apparently they oppose abortion without believing that a woman who uses an iud is a serial killer. screenplay idea. iud's turn normal women into mass murderers. the killer inside me? no, no. fetal destination? no no. the unborn ultimate matum. wait, wait. tomb raider -- we'll right --

how about -- [ laughter ] how bad is it when the camera man goes (bleep) this i'm out of here. [ laughter ] i'm sorry franco. all right. how about arizona? ground zero for a national wave of harsh new antiimmigration laws. a state so red it thinks it's own name is a little too mexican. what happened there? >> arizona voters recalled the republican state senator russell pierce. he sponsored the state's strict immigration law requiring police to check the immigration status of anyone they stopped. >> ironically pierce was beaten so badly in this election that he cracked open and candy spilled out. [cheers and applause] all in all -- [cheers and applause] yeah, yeah. now you love me again.

[ laughter ] all in all a tough night for the conservative revolution. there must be a simple explaination. to the narrative machine. >> did republicans overreach? >> reach too far by the g.o.p. >> itas about overreaching. >> jon: are you aware of their platform. >> we're going to take aim on law enforcement and put them on the bad guy. illegal is not a race. 's a crime. >> we believe that life begin as the conception and at the moment of conception every individual is entitled to the freedoms under the decoration of independence and the 14th amendment of the constitution. >> i don't favor the right to strike of any public employee. they've got good jobs, high pay, great retirement. what are they they striking fo. >> jon: the problem they didn't try to overreach. they tried to do exactly what they said they were going to do. it would be like drinking red [cheers and applause]

>> jon: welcome back. my guest tonight she was the first female speaker of house and now the house democratic leader. please welcome back to the program house democratic leader nancy pelosi. [cheers and applause] [cheers and applause] thanks for joining us again. >> my pleasure. >> jon: how are you?

you know, congress oh, for goodness sakes. they are so sweet. their approval rating right now is slightly below, from what i understand hepatitis c. >> and you wonder who are these people who approve of congress, the 9%? [ laughter ] >> jon: why do you think that is? >> let me -- last time i was here in april of 2009 -- that was the last time i was on the show, democrats were in control congressional rating was 40%. 40%, you remember that? note to self. >> jon: not only do i not remember that. the whole 2009 thing you mentioned that went past me as well. >> we have work to do. >>. >> jon: it feels like they take good intentions. it's where good intentions go to die. >> no. well, not when we were in the majority.

we took them to a place to make survival to success. >> jon: i understand. working class families. look at me pelosi. [ laughter ] it's we'll use the example of this vocal rule. so the idea is banks are using money from customers to finance their sort of speculative hedge fund activities, buying risky debt and all that. so paul volcker writes a memo to the president says, we should stop that. and then congress gets it and they say we should. that three-page memo turns into a 300-page bill the summary of which is 41 pages to the point where paul volcker says, uh, i don't like this anymore. is that why people don't like zmong because what happened is the simple clear rule that would have been easily regulated is

attacked by lobbyists, bankers, special interests and turned into oatmeal. >> well, that's one way of looking at it. the fact is the volcker rule is a very good idea as originally proposed and how that translates to legislative language. that say responsibility we have. it has to turn into legislative -- it didn't add provisions it translated. you know what, that is so insider what is important. >> stephen: what you call insider we call the business of congress. it's not just putting it in legislative language it's people finding what they call exceptions, what we would call loopholes. you how does that get in there to change what is a pretty clean rule? >> even paul volcker as he says in terms of how you right the rule and what the result will be

has a period of public comment. that's the way it is. people have made suggestions to say there may be unintended consequence. why i say it's insider, the fact is what the end products that be is to make sure that what happens by some -- not to paint everyone with the same brush, by some on wall street, the recklessness causes joblessness on main street. what they were doing is not right and that is the legislative process. >> jon: i completely understand. my point is by adding the exemptions by all accounts it has muddled the purpose of rule to the point where he thinks it's no longer quite effective and makes it harder to regulate, harder to enforce. >> i think you should have him on the show because he would explain to youjf very clearly wy he doesn't like the way it is emerging but not what his

original intention was and how congress wrote the bill. >> jon: he feels there's loopholes that make it difficult to recognize. he feels now it's that obscenity rule i'll know it when i see but it's not as clear. it's been watered down. it seems like -- i mean, would you -- let's back it up for a second would you say it's a valid criticism of congress that lobbyists through the power that they exert on legislators often take clear cut legislation and muddle it to the point where it's difficult to impose. >> let's inlarge the issue from there. >> jon: i don't want to be unfair to congress. they are at 9%. you don't want to kick someone when they are done. >> we were at 40 when i was there last ear time. >> jon: that was a solid d. >> we were thinking how can we get more? as you see what is happening now

at the supercommittee. >> jon: sure. >> there's a process. we did not have the 60 votes in the senate. we could not write everything clearly the way we might have if we have the 60 votes. you have to compromise. >> jon: you said the supercommittee. as an outside observer who doesn't understand what what vealy going and can't call paul volcker. we had simpson bowles and another process and the gaping of six. now they tell us the supercommittee is going to do that. it seems like again, like, i don't know at what point do we demand -- you lead the party that believes government can take effective forceful action to change peoples lives. at what point do the democrats have to prove that, prove that government can be agile and effective? >> we don't want any more

government. we have to recognize we have two paths. bless their hearts shall the republicans, they do what they believe. they do not believe in social security, medicare, medicaid, clean air, clean water, public legislation -- [cheers and applause] -- there are some. >> jon: they would somewhat disagree with that characterization. >> maybe some of them would. but i'm not painting them with all with the same brush. a significant number of them will use the debt that we all want to reduce the debt. it's a legitimate concern we have. quite frankly if they cared about the debt they would have squawked when president bush was amassing it. >> jon: no question there. >> some of them will try to use the debt as an excuse to eliminate the public space, all the things i just talked b. what i would like to see -- what is

the point. the point is now to say to the 12 people on supercommittee get in a room, sit down, reach agreement on public television. let's have this transparency and open meeting where we see everybody's proposals and suggestions on the table, an explanation of them, what they would mean, to not that table but the kitchen table of all of america's families. >> jon: thank. this is where it'súib difficult. when the democrats were in charge. they had an opportunity to put forth a budget. and they didn't take it. they didn't take the shot. right before the debt ceiling. remember how right before in the session they could have put forth a budget the specific budget like the one they put forth that triggered the gephart, debt ceiling rule. >> the republicans would have filibustered. let's go to that place. that was a time. >> jon: you know what we should do.

can we -- let's take a commercial because i think we have a beer to sell. [ laughter ] and then we'll come back. you can explain it to me because, again, i'm purely as an outside observer it seemed facata to me and that's jewish that's.

>> jon: that's our show. join us tomorrow night at 11:00. here it is your moment of zen. >> my favorite place for a quick