>> chris: i'm chris wallace and this is "fox news sunday." house republicans win big tuesday. now, the hard part. turning their ideas into laws. from creating jobs to cutting taxes, to shrinking government. we'll talk about the g.o.p. agenda with eric cantor who is expected to become the new majority leader. paul ryan, set to head the budget committee. and darrell issa, poised to take over the oversight committee and investigate the obama white house. cantor, ryan, and issa, only on "fox news sunday." then, president obama looks ahead after the midterm defeat. >> we can't spend the next two years mired in gridlock.

>> chris: we'll ask our sunday panel will the white house really work with republicans? and we'll take a final look at the 2010 elections "on the trail." all right now on "fox news sunday." and hello again from fox news in washington. with their big election victory, house republicans must now prepare to start governing. here to talk about their plans, we're delighted to have the man who is set to become the next house majority leader, eric cantor. congratulations. welcome back to "fox news sunday." >> good to be here, chris. >> chris: nancy pelosi announced friday that she is going to run to stay on as the leader of democrats in the house. now the republican national committee, which had a sign outside its building in washington that said, "fire pelosi" during the campaign promptly changed that to "hire pelosi." question: why are republicans so happy that nancy pelosi will likely remain as the

face of the house democrats? >> well, the democratic members in the house elect nancy pelosi as their leader. it's almost as if they didn't get the message from the voters this election. i mean, the volters outright -- voters outright rejected the agenda that she has been about. here, they are going to put her back in charge. in fact, over the last two years, in fact, almost four at this point, she has refused to even meet with republican leadership to talk about any way forward together. i mean this is the woman who really i think puts ideology first, and there have been no results for the american people. that seems the direction they want to take again. it just doesn't make sense. >> chris: are you saying it's thumb in the eye to voters if she becomes the house democratic leader? >> i don't think there is any question that this says to voters, we're not listening to you. we think we're right and we'll continue the same path. >> chris: meanwhile, president obama has been giving his analysis of the democratic defeat. now today in india, he said

the election means he will have to make some "midcourse corrections." here is what he said in his weekend internet address. here it is. >> this week, americans across the country cast their votes and made their voices heard. the message was clear. you're rightly frustrated with the pace of our economic recovery. so am i. you are fed up with partisan politics and you want results. i do, too. >> chris: based on those comments, does the president get it? does he understand what voters were trying to say on tuesday? >> well, chris, i'm worried that he doesn't. just as it's worrisome to see nancy pelosi will maintain leadership in the house. because what the voters said, number one, we're tired of the 20-month agenda we have seen under the obama administration, because number one, it hasn't produced results. but number two, it is expansion of government and the fact that we need to keep

cranking up the spending machine of money we don't have, it's government getting into more and more aspects of the economy that the voters outright rejected. when you hear the president say things like we did a poor job of explaining what we were trying to do, i think that that is indicative of his not getting it, because the voters have had enough of the obama agenda. >> chris: okay. you are among the congressional leaders who has been invited to the white house to have dinner with the president on november 18. what do you intend to say to him about how republicans will deal with him? >> i feel, chris, it will be incumbent on us to say mr. president, we are here to talk with you, to try and work out solutions. but if the message from the voter voters is anything, it is we need to stop the direction in which your administration has been heading. and we need to go back toward a common sense agenda which starts with limiting government, cutting spending, so we can get jobs created

again. that's what it's about. we have to demonstrate that we heed the message from the people and he will come along with us. >> chris: are you hopeful he will receive that and respond? >> the president did say this week he's willing to work with us. listen, are we willing to work with him? first and foremost, we're not going to work with him on the expansive liberal agenda he's been about but if he is serious about working with us on earmarks, for instance, he said he would work with me on, that i'm absolutely hopeful we can do that. i hope he called harry reid the first thing to get the senate to go along with the house position. >> chris: let's talk specifics. the bush tax cuts are going to be the big issue in the lame duck session of congress, which will come in a few days. if the president says extend the tax cuts for the middle class permanently and i'll agree to a two or three-year extension for tax cut for the

wealthy, could you buy that? >> set the record straight. no one is getting a tax cut. one of two things will happen january 1. that is your rates are either going to go up and staying the same. the notion that somehow we're passing tax cuts is just not true. so, no, i am not for decoupling the rates. all that says to people looking to go back in and put the capital to work and invest or create jobs, you are going to get taxed on any return that you can expect. i am not for raising taxes in a recession, especially when it comes in job creators that we need to desperately start creating jobs again. >> chris: you talk about compromise. if he says to you, all right, we'll extend all of the bush tax cuts or keep the rates as they are now, but only for a few years, could you accept that? >> chris, i am not for sending any signal to small businesses in this country that they will have the tax rates go up.

the election result reflect the fact that people get, washington does not have a revenue problem. it has a spending problem. >> chris: are you saying it's permanent extension of the bush tax cuts or nothing? >> no, we have to come to grips with the fact the money will be spent one way or another. the fundamental issue the obama position has been, we think government ought to be spending this money, not the people who earn it. that's what this election has been about. government doesn't know best. people in america know they want to strive for opportunity. they're willing to take responsibility through risking their capital. >> chris: i'm trying to get a specific answer. would you accept temporary extension of all the tax cuts or are you saying all of it has to be permanent? >> chris, at this point, i really want to see that we can come together and agree upon the notion that washington doesn't need more

revenues right now. to sit here and say well, we're going to just go about halfway, or send a signal that is going to be uncertain for job creators and investors to put the capital to work, that's what we don't need right now. we need limit uncertainty. >> chris: house republicans set ambitious goal for spending cuts and we are going to get in the detail with paul ryan, head of the budget committee at the moment. you want to cut non-defense discretionary spending by $100 billion in the first year -- non-defense discretionary is only 16% of the total federal budget. cutting $100 billion from there would amount to a 22% cut in those programs. do you really think that's possible? >> chris, if we don't change direction in this country, we will not see the opportunity that most americans have had in their lives. we have not gotten where we are overnight.

we have to go and orient this congress back toward a cost-cutting and a job creating congress. that is going to mean, we are embarking on a regular diet of spending cut bills, being brought to the floor weekly. that would be my -- >> chris: and 22% from non-defense discretionary is not excessive? >> chris, look, these are 2008 levels i think that most americans would agree. the sun rose and set in 2008. you know, you see people around their kitchen tables, and small business people tightening the belt. and large business people trying to cut payrolls, trying to cut expenses so we can make it through the tough times. we'll have to make tough decisions. that's what this election is about. people are disappointed that there were no results and frankly because the promises made in 2008 have fallen flat and results haven't been there. >> chris: you say you want to make tough decisions. in your statement this week, your governing document, you said you want to see a moratorium on earmarks.

why not make a tough decision and say earmarks dead, forever? >> it is essentially a suspension for the entire congress is what we're saying. i believe that that is necessary because earmarks are a symptom of a culture gone bad here in washington. if we're unable to make the decisions on the things like earmarks, we are certainly not going to have the credibility to make the big decisions on the kind of cuts you're talking about or the ability for us to address entitlements. >> chris: you are also going to face a vote by may on whether or not to raise the debt ceiling for this country. republicans are apparently planning to demand even further spending cuts from the president in return for raising the debt ceiling. if he refuses, does that mean that you are willing to let this country go in to default? >> look, chris, a vote on either side of the issue of debt limit ceiling increase has serious consequences.

okay? but before we even get to that vote, we have three or four months to demonstrate this is going to be a cost-cutting congress. that we're going to get spending under control. we cannot sit here and continue the path that we've been on over the last 20 months and beyond, continuing to spend money we don't have without any signal we'll get the country back to a path of fiscal sustainability. that is the job i'm going to hopefully be about in the next three or four months to make sure we demonstrate our commitment to fiscal discipline, which has been sorely lacking here of late. >> chris: fair enough. i think it's fair to say that the last time that the republicans took control of congress in 1995, the gingrich congress, they got in trouble by overstepping and ending up -- you can argue who caused it, but the result was a government shutdown. and republicans got blamed. so let me ask you, some people say that would be a way for the obama white house to show that you guys are too extreme. are you willing to say right now we're not going to let

the country go in default and we won't allow a government shutdown? >> chris, look at this now. the chief executive, the president is as responsible as any in terms of running this government. the president has got a responsibility as much or more so as congress to make sure that we are continuing to function in a way that the people want. so instead of saying hey, this is going to be a congressional test one way or the other, i look at it to say look, this president certainly has seen his own words took a shellacking by the voters. they are looking at him to try to come to the middle and satisfy the extreme agenda he's been about that killed jobs and created the most uncertainty that businesses can even remember. it is time for him to try to come meet us and say fine, let's get back to kind of things that americans are about, living within our means and making the tough decisions to see america prosper and lead again. >> chris: to flip it around, you're saying if there were to be a default on the debt or government shutdown it's

his responsibility, not yours? >> i would say it's as much his responsibility. in fact, he is the one that sets the agenda. as the chief executive and as the president of this country. congressional role is to look to and account for expenditures that have been made to make sure that his administration is following through on the mission and the will of the people. right now, what people are asking us to do is to make sure that his administration through the bureaucracy is not doing that which they were unable to do in the legislative body in congress. >> chris: okay. i got a minute left and i want to get in one last area. there could be as many as 90 members of the tea party in the new house. that would be more than a third of all republicans. michele bachmann, the congresswoman from minnesota is running for the number four position in leadership. but you, and a lot of your colleagues in the leadership are backing a member of the

republican establishment, jeff henserling instead for that. instead of listening to the new members, let's listen to you, isn't this the old boy network saying to the tea party wait your turn? >> first of all, chris. we are fortunate in the republican congress to have two good conservatives running for this position. both jeb and michelle have a reputation being some of the most common sense committed conservative, constitutional conservatives in our conference. and, you know, i endorse jeb because i feel that we have had a history of working together. >> chris: yeah, but that's the old boys network. >> we had a history of working together and jeb can produce results. >> chris: doesn't the party deserve something for the role they played in this election? >> listen, the fact is again, you have two conservatives in this race. incoming class that is probably more diverse and more reflective of a growing conservative majority in this

country than i've seen since i have been here in washington. these individuals are allowed to vote for which conservative they choose. again, these are two conservatives. neither individual could ever be accused of being anything of a conservative. >> chris: but you're not willing to guarantee that there would not be in that position a member of the tea party in the leadership? >> i think if you look at the tea party, the tea party, you know, it's an organic movement that played a tremendously positive role in this election. certainly it produced an outcome beneficial to our party when you are picking up at least 60-some seats. that is something that i think that the tea party has done which is fiscal discipline and we're going to be focussed on that. >> chris: congressman cantor, thank you so much for coming in, after an intense campaign. please come back, sir. >> thank you, chris. >> chris: up next, two congressmen ready to take control of powerful committees. we'll be right back. [ male announcer ] how can rice production in india

affect wheat output in the u.s., the shipping industry in norway, and the rubber industry in south america? at t. rowe price, we understand the connections of a complex global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment objectives, risks, fees, expenses,

and other information to read and consider carefully before investing. you do? your medicare card. [ laughing ] but don't let me or anyone see it except your doctor or their staff. and don't tell anyone your card or social security number over the phone. guard your card. [ woman 2 ] i hear unauthorized card use is a big source of fraud. the new healthcare law lets us crack down on criminals and win against fraud. making medicare stronger. and speaking of winning... [ man 2 ] not again!

[ man ] learn more at stopmedicarefraud.gov. that lets business owners handle payroll on the go. or, like adp, you can dream it and do it. adp lists on nasdaq, the world's most innovative can-do exchange. >> chris: the obama administration must now deal with two key republican congressmen.

paul ryan is set to take over the house budget committee, handling spending and entitlements and he joins us from his home state of wisconsin. congressman darrell issa is expected to head the committee on oversight and government reform, which means he will be issuing subpoenas to administration officials. congressmen, welcome back to "fox news sunday." >> thank you for having me back and thanks for -- >> thanks for having me. >> -- covers election night in a fair and balanced way. >> chris: always. let's start with a brief overview. congressman issa, i'll start with you. what do you see with your role on the oversight committee dealing with the obama administration? >> the most important thing my committee can do is seek the truth. we're the investigation committee, we're the accountability committee. paul can't be effective if the underlying facts and assumptions is not mutually agreed. it's one of the problems we have in the previous two years. we couldn't agree what the facts were, the conclusions were different and each side blamed the other. that has to end. >> chris: i'll get to

specifics in a minute. congressman ryan, what are your plans for the budget committee dealing with the obama agenda? s>> take the budget in a different direction than it's been going. this is electoral fiscal repudiation. get the budget on right glide path and prevent huge tax increase in the future to get job creation. i will get the budget going in the right direction. it's been going in the wrong direction for a long time. >> chris: let's get into -- i said i was going to get into it with eric cantor, but let's discuss the specifics. pledge the republicans made is cuss non-defense discretionary spending by $100 million in the first year. the democrats say it would mean cuts in head start and pel grant for college students. $6 of billion cut in the national institute of health. and the f.b.i. will have to cut 2700 agents. congressmen ryan, do you think the american people want that? >> this is a washington

monument strategy, put out the glaring cuts and show this is how devastating it is. this category of spending, base spending went up 24% in the last two years. with stimulus, it went up 84%. we had spending on a gusher. if borrowing and spending and tax and spend created jobs, and produced prosperity, we would haven't the jobless economy. i think the spending cuts are modest considering the pickle we are in. so what you'll have is we'll try to get spending turning this a different direction, cut spending and get it control and you isle have these tactics play which had will show you that they're not serious about getting our spending under control. instead, they will put spending line on the glide path that's unsustainable to have the big tax increases. >> chris: congressman ryan, we'll get to that in a second. give me, you're the head of the budget committee and you know the budget backward and forward, give me a couple of specific examples of big ticket items that you can cut to get closer to the $100 billion without gutting

programs that people want. >> chris, when you add stimulus, the environmental protection agency got 124% increase in the budget in the last session of congress. there have been so many massive spending increases, 24% in the base budget, 84% when you add stimulus. we need to take all the spending increases back so we can get the deficit in the right direction. and take pressure off tax increases. >> chris: all right. i'm going to get back to darrell issa in a minute but i want to ask you two more questions if i can about the budget. while house republicans and you are talking about cutting $100 billion this week, the federal reserve announced that it is going to create another $600 billion and pump that in the banking system. what is that going to do to the economy? >> it's a big mistake in my opinion. look, we have congress doing tax and spend, borrow and spep. now we have federal reserve doing print and spend. if the quantitative easing,

which is monetizing your debt, the up side is low. we have loose monetary policy. very, very low interest rates. this is going to give us inflation problem in the future and give us an interest rate problem in the future. it's destabilizing investment horizon. the federal reserve should be focussed on sound and honest money, not micro manage the economy in a bad fiscal policy. the fed is trying to bail out the fact that the fiscal policy is so bad, the fed should focus on keeping the money sound and honest, not on doing this, which will give us a big inflation problem down the road. >> chris: one last area. given the fact for the talk of repealing healthcare reform, you are not going to be able to do it as long as barack obama is in the white house. republicans are talking a lot about defunding healthcare reform. but the biggest federal subsidiaries don't kick in until 2014. i read a report this week that the healthcare and human services secretary kathleen sebelius says even if her budget is cut, she will have

enough money to continue implementing healthcare reform. the question is you how much can you do to defund healthcare reform, especially over the next two years? >> well, three things. we can do a lot of oversight, through the budget weighs and means and darrell's committee as well. shed light to the problems we're bringing in. we can defund specific actual roll outs of this law, but then again the president has to sign the bills so that is a challenge. third thing is the attorney general and the court challenge. that is also an avenue we'll pursue. the bad things happen between now and 2013. medicare cuts that put the providers out of business, dump them off the advantages, premium increase and people losing the employer-sponsored health insurance and that happens before the subsidiaries kick in 2014. but to answer the original question, you're right you can't fully repeal and replace the law until you have a new president and better senate. that's 2013 but that's before the law fully kicks in 2014. this big is such a fiscal and

economic train wreck for the country and the healthcare system itself, we will do everything ke to repeal and replace this thing. ultimately, 2013 is when it will be done the right way. >> chris: congressman issa, as congressman ryan mentioned there is a lot of talk about the congressional oversight of healthcare reform. you how much can you slow down the actual plan through committee hearings? >> first of all, i want to answer that. first, it's arrogance by a cabinet officer to say they have enough money to do something. they don't have any money after the continued resolution runs out. congress gives that money, congress can start giving money in the proper way. specific authorization and appropriation for specific projects. can we hold hearings on for example the bending up of the healthcare curve? even aarp is finding out they have a double-digit increase for healthcare for their employees. what a surprise. that is one thing we can do. the other thing we can do, you asked paul and i think you asked eric how do we cut

the $100 billion? we talk about the earmarks. congressional earmarks is a buzz word. administration earmarks, they call them competitive grants, where we give a slush fund like a stimulus to the president. then they come up with who they like and where they like them and they issue the money. congress has to start saying no. you figure out who wins the competitive grant. you come back to us and say i'd like to award this amount of money for this. instead of a budget with blank checks. if you do that, less money awarded and awarded for a meritorious project. >> chris: over the last two years you talked a number of times you'd like to investigate certain things but as the ranking minority member you couldn't. now you're the chairman and you will wield the gavel. as a lightning round go through series of issues and you tell me if you will pursue them as chairman of the oversight committee. will you investigate the justice department handling of the new black panther voter intimidation case? >> i believe that will be handled by judiciary and

lamar smith. certainly, i will help get the facts for them but it's really a judiciary function and he will lead that, i believe. >> chris: is that something you think should be investigated? >> i think it should be investigated. all voter intimidation and destruction of democracy is a priority. acorn, they're gone but we have to make sure that the voter registration process is sound everywhere in the country by whoever is participating in doing it. >> chris: will you investigate the white house effort to get joe sestak out of the democratic senate primary in pennsylvania? >> chris, i am going to do what president eisenhower suggested. i'm going to take a complicated problem and expand it in order to solve it. people in the bush administration, w. bush said they did the same thing. that means we have an endemic problem, epidemic if you will of the administration thinking it's okay to save their party money by clearing a primary with a government job. i think we have to bring it to an end and look for ways to expose it and bring it to an end for this president and

every president to come afterwards. >> chris: what is the first thing, what is the big investigation you are looking to hold? >> i'm going to go after a lot of things and i'm going to do a lot of investigating. i think finishing off the angelo mozilo, friends of angelo program -- >> chris: countrywide. >> countrywide. where it created the financial meltdown in some small part because freddie and fannie took huge amount of bad loans and have losses. we have to bring it to a successful conclusion and make sure it doesn't happen again. again, that distorted the process of law-making and regulation-making with money that shouldn't have been discounts if you will. shouldn't have gone not just to politicians but all kind of bureaucrats that made bad decisi decisi decisions. >> chris: how do you reconcile? you put the officials on the hot seat and making them take the oath, tell the truth, nothing but the truth, how do you reconcile that, with what

you said on "usa today" last month. put it on the screen. >> that is very true. if you can go down-ticket to the bureaucrat and take care of the problem, you shouldn't bring in the politician or the political appointee. that will be a change. we will look for the person most knowledgeable of our problem and have them before our committee. in many cases we'll do it outside the public where through the depositions with the republicans and democrats both sitting there, because i think we need to do investigations in a less partisan way. >> chris: okay. congressman ryan, a couple minutes left. i want to ask you about another hat you wear. you are a member of the president's deficit commission, which has a december 1 deadline, it seemed a long time in the future but now it's coming up for issuing recommendations to congress. first of all, do you believe that you will be able to get the supermajority of 14 of the 18 members to propose anything, and what are the chances that there will be some kind of grand bargain

when it comes to entitlements? >> i don't think you will see a grand bargain when it comes to entitlements because i don't think there is a majority to redo the healthcare law on the condition. the big problem is healthcare. i hope to make a dent on spending going forward, spending reform and discretionary cap and maybe other categories. we haven't met for a while. we meet next tuesday. then we start deliberating henceforth after that. it's unclear where we're going to go. but i don't think you will see a big grand bargain. my personal hope is a big dent on spending and categories to get common ground on. we'll find out. bulls is a talented democrat and good to bring people together. but we're not interested in growing got and raiding taxes. we're interested to get spend going down. we don't want the revenue line to go down to meet the spending line, we want it to go the other way. hopefully we'll make a dense in the process. >> chris: bowles talked about deficit reduction. two-third spending cut,

one-third revenue increases. could you accept that formula? >> i will give a shorter answer. we don't have a revenue problem. we have a spending problem. let's focus on the problem. >> chris: congressman ryan, congressman issa, thank you for coming in and talking to us. gentleman, we'll follow both of you on capitol hill. >> great. >> chris: up next, we bring in the sunday regulars. we'll get their take on what president obama will do after the democratic shellacking. and we'll discuss nancy pelosi's surprising decision to run for house minority leader.

they said boy, this feels as if there is a huge expansion of government. >> it is a huge expansion of government. >> we were taking the steps not because of a theory to expand government. we had an emergency situation an wanted to make sure the economy didn't go off a cliff. >> chris: president obama on "60 minutes" tonight refusing to concede his party's big losses were a repudiation of his agenda. time now for our sunday group. brit hume, fox news senior political analyst. and contributors mara liasson of national public radio. bill kristol of "the weekly standard." juan williams. i understand that president obama couldn't say this week, hey, you know what? i messed up. the fact is that in india today he did talk about a mid-course correction. but brit, are you a little

surprised he didn't at least give a little more of a bow to idea of moving to the center that what we had was a cool hand luke argument, what we have here is a failure to communicate? >> i am a little bit surprised but not shocked. the president had plenty of warning this was coming. the scott brown election should have given him a sense maybe the best thing to do was not to ram the healthcare bill through, but he did it anyway. there is a deep belief in the agenda this is the right thing for the country. the country doesn't think so. therefore it's a failure to communicate. i guess he doesn't want to call the voters idiots, blame himself for not explaining fully to them what is good for them. at least it's remarkable and perhaps more remarkable is the decision of nancy pelosi to try to remain as the leader of this much smaller group of democrats in the house of representatives. these people need to make peace with reality. the reality is the voters really have rejected mup of their agenda as well as the

results of their agenda. until they do that, it seems to me that they are in the hole and they're still digging. >> chris: we'll get to nancy pelosi in a minute. mara, on the other hand, the president did make it clear he's willing to compromise on tax cut and he basically declared cap-and-trade dead. even if he is not acknowledging it, even he in a substantive step moving to the center? >> the lyrics are there, but the music might not be. he is not going to beat himself with a stick samed he was wrong, but there will be a midcourse correction. he will find a way to communicate it's a change, change in the agenda. and i think it's possible to do without saying he was wrong. the issues are going to be different. the big question is what kind of a president will he be now that he's untethered from the base. he's liberated from the need to be deferential to the

democratic majority to pass the huge pieces of legislation. what is he going to be like? you are seeing him move to center on big issues, energy, trade, and you will see it on the tax cuts. >> chris: first, how much trouble is this president in politically? secondly, if he were to follow conventional wisdom and pull a clinton like the president did after the '94 defeat at the hands of newt gingrich, would it mean? what would he have to do? >> the second question first. good question. people talk as if he can just decide to pivot and magically he is moderate and popular again. not that easy. there is a bunch of legislation passed he is not going to repudiate. bill clinton benefitted by the fact that the healthcare failed that year. he could say the year of the government is over saying you can re-elect me and don't worry about me proposing the healthcare thing again.

obama's healthcare plan is law. 2011, the republicans will repeal of it in the house, and probably won't make it to the senate. delay parts of it. the president tethered the healthcare piece of legislation to himself and it will be a -- if you want to repeal obama care, you have to defeat president obama in 2012. that is a fact. >> chris: can he do? >> he can hope that obama cares get popular and accept modifications to make it less onerous. he can go to the center on taxes and the deficit spending. prosecute the war in administration and fight his own party on that. i wouldn't rule him out. not the great shape, but i think healthcare, people talk as if why isn't he pulling a clinton? but the irony, the fact that clinton's healthcare plan was defeated gave him freedom that president obama doesn't have. >> chris: juan? >> this is a misreading of this election. when you add the voters what happened here, they say it's

about the economy. not about the ideology. >> do you really believe that? >> i wouldn't say it if i didn't believe it. >> you have independents by 23 points and three-quarters of the country, 74% saying they are angry or dissatisfied with the federal government? >> federal government. republicans and democrats. not ideology, chris. as i was saying when they say the economy was the big issue, they blame wall street and still blame president bush and president obama. he's down the way. all the talk about we need to focus, focus, focus, leads to the question: what will you do? how do you get the economy stirred again? i think what the american people want is a greater sense of expression of their anxiety over everything from losing a job to not having a job to pensions and the rest. that is the heart and soul of it and that's on the back of to republicans as much as the back of democrats. to suggest this is all about

the ideology and healthcare, if that is the message that republicans got -- >> i want to take it to pelosi and the surprising decision she made to stay on. it look like she will be the house democratic leader. do you think that's fine for democrats? >> i think it's problematic in the sense that the independents lost in this election, the white people particularly are people who want to see expression of bipartisanship and want to see something get done in washington. nancy pelosi is playing hardball with the republicans. nancy pelosi is an effective leadership. she kept them in line with healthcare and cap and trade that came back to bite her. you have can't say she is not an effective leader. let me tell you, in terms of fund raising for democrats, only barack obama exceeds pelosi's ability to --

>> she has been effective diminishing the numbers of democrats in an historic way. >> she has two things which she goes down in history. incredibly effective majority leader, when and speaker when there was an opposition president. she helped make majority. in the majority, the hammer that got through president obama's agenda and sent it to the senate. however, that's a completely different role than what she wants to do now. she accomplished historic things for democrats and they should send her off in a blaze of glory and adjusting for the new regime. >> the difference between her and winston churchill, churchill was turned off after he led the country to a great victory. nancy pelosi wants to stay on and -- >> that is the point you're missing. >> she led her party to historic losses in the house of representatives. >> after she did a lot of historic things. >> i understand.

but the problem is if you do historic things it's a good idea for the country and itself to do historic things people like. >> we have to take a break. i have to say when i envisioned this panel it never occurred to me we'd be in an argument about whether or not nancy pelosi was or wasn't like winstop church hill. who knows where it will go? that's part of the fun of it. when we come back, we turn to the republicans and the challenges for the new g.o.p. majority in the house.

- i volunteered. - i was drafted. - i enlisted. - i was nervous. - and there i was in asia. - europe. - the gulf. - and i saw things. - incredible things. - and people you never forget. - i did my job. - for my country. - my buddies. - for total strangers. - and i was proud. - so grateful. - for my family. - my freedom. for all who served and all who serve, we can never thank them enough. gecko: are you ready for your boss: just going over how geico helps people save in even more talkways... ...with good driver discounts, multi-car discounts, defensive driver discounts... woman: you! oh, don't act like you don't recognize me! toledo, '03? gecko: no, it's...i... woman: it's too late stanley. gecko: actually, miss, my name's not stanley. woman: oh...oh, i am so sorry! from behind you look just like him. i'm just.... gecko: well...i'd hate to be stanley. geico. 15 minutes could save you 15 percent.

frankly, if we're successful this will become the number one issue in the presidential election in 2012. there are a lot of tricks up our sleeve in terms of how we can dent this, kick it, slow it down to make sure it never

happens. >> chris: john boehner set to become the next speaker of the house talking about his strategy for dealing with healthcare reform in the new congress. we're back now with our sunday group. so brit, were you surprised that john boehner said he expects healthcare reform, not the economy, not jobs to be the number one issue in the 2012 campaign? >> i think he basically is thinking along the lines that we heard bill kristol outline in the previous panel. and those reasons will all apply. it will be a very big issue indeed. look, convinced they're in the driver's seat. we could have a confrontation with iran between now and then, that would be a major thing. they'll back him on afghanistan. foreign affairs move to the fore, as it does in every presidency. we don't know. healthcare will be a big issue. john boehner seems to me to be doing, however, not making the previous newly elected republican speakers have done; particularly, newt gingrich.

newt gingrich was treated as prime minister of the united states of america by the media and others. you know, he couldn't bring that off. you don't have that much power. republicans are being humble about their power. they're smart to be, because it is a limited grant they have gotten from the voters. a historic turn-around but limited grant nonetheless. one-half of one branch. >> also, on healthcare, i think the republicans need to be careful. this was a very conservative electorate. they were split half and half whether they want to repeal healthcare. in this electorate you think it would have been overwhelming. as they go forward, it's important that they gave at it try to repeal the whole thing, they know they can't, which is the best thing they have going for them because do they really want to get rid of the items in the healthcare bill that are popular? i don't think so. >> chris: i want to pick up on what brit was saying, bill. i think the republican response since election night has been really interesting. one, boehner has been humble.

he said there is no time to celebrate when millions of americans don't have jobs. and we've been given is a second chance. the agenda laid out, spending cut, holding the line on taxes and making sure the regulators don't overstep modest. some conservatives say too modest. >> i think john boehner was there in 1995 and '96 and learned the lessons of that moment. mitch mcconnell was there, too. they've done a good job so far. they will get extension of the current tax rates for two years. either the lame duck session next week or before thanksgiving or first act of the republican congress. that's good. they say we have our fight with president obama, we want the economy to improve. we have given certainty to individuals and businesses in the next two years. that is a good accomplishment. repeal obamacare, let president veto it and let congress decide if they want to pass it or not. not sure it will die in the

senate. let's let democrats with a majority filibuster and repeal -- fine. it's good to happen early in congress. i think boehner and cantor and others thought it through carefully but i think they slightly underestimate the force of the tea party movement. there is still a little bit, those guys will get to learn the ropes here. they should be careful about that. the tea party movement is a big deal and not diminishing or going away and should be taken seriously by the republican leadership in washington. >> chris: let me pick up on that with you, juan. i was surprised, not that cantor said forget jeb henserling, we are going to put michele bachmann in the leadership, the number four spot. but he made no statement that of course there will be a member of the tea party in leadership and we want to hear their voice. >> i think there is a civil war of sorts going on. we don't talk about it much between the republican establishment and tea party people. it's sarah palin/karl rove if

you want to personify it. michele bachmann among the republican leadership, she is seen as grandstanding and seen as quite electrifying force. she is not someone that they see as able to govern. govern means compromise, work with the others who you disagree with. >> chris: raised a lot of money for the party. >> fine. in terms of governing -- i'm admiring of the response we have heard from john boehner, and from eric cantor and others, which is at this modest agenda, which here is where we look for opportunities to work with president obama, john boehner and the same interview on special report said look, we can start off right now with the trade agreements, with columbia, panama, south korea. that is reasonable. i think cutting the deficit should be a priority. they should force it on the democrats. that's all good stuff. the business about obamacare, healthcare, that's what mitch mcconnell said, we want to prevent president obama having a second term.

they know nothing is going to happen with healthcare, so they are going to use it to beat and you know what? mara said and it was right. if you look at the polls, bill kristol, half and half. half of the american people said leave healthcare alone or extend it. >> look at the question on obamacare. it was phrased weirdly. most americans want it radically change. we consider it bad legislation. what are we supposed to do? i'm sorry, we're the majority and not going to do anything about it? the republican house as moral obligation to repeal obamacare if they think it's bad for the country. >> they had an obligation to pass it with majority when they had it. this is the mirror image. the bases care more about the -- >> that is not true. if you look at what happened in the congressional district, districts voting for obamacare was a killer for the democrats. they tend to lose -- the democrats who voted against obamacare survived more in comparable districts than democrats for obamacare. >> it's on the merit, they should act on merits.

they should compromise with the president. they can't back off the fight against obamacare. >> that's right. they don't have to, because they can't achieve it. say something about the potholes ahead for republicans. are they going to extend benefits when they run out? what do they do about the doc fix and debt limit? there is a lot the majority has to deal with and they have to cut 22% to make good on the promise, 22% on discretionary spending. even paul ryan wasn't able to be specific this morning. >> said debt limit. a vote like shutting down the government was the last time. you can bet that the media as it was in the case of newt gingrich and the house republicans will be sympathetic to on the idea if we have a major crisis and the possibility of a default, it will be all about the republicans. they need to be deft how they handle this. >> chris: we have about ten second left. how about cantor's point.

hey, it's the president who is going to create the crisis, not the republicans? >> that is the argument that was made when the government shut down in clinton years and a big win for clinton. it helped him and his party in the next election. it has to be handled carefully. >> chris: thank you, panel. see you next week now. a quick program note. tonight at 9:00 p.m. on fox news channel, our very own brit hume hosts the first of a six-part series of specials called "the right all along: the rise, fall and future of conservatism." we hope you will watch. check out panel plus where the group here picks up on the discussion on the website foxnewssunday.com. we'll post the video before noon eastern time. up next, we take a final trip on the trail. [ male announcer ] you can dream of completely transforming

how new york city manages i.t. or, like bmc software, you can dream it and do it. bmc lists on nasdaq, the world's most innovative can-do exchange. bmc lists on nasdaq, what are you looking at? logistics. ben? the ups guy? no, you see ben, i see logistics. logistics? think--ben is new markets. ben is global access-- china and beyond. ben is a smarter supply chain. ben is higher margins.

happier customers... everybody wins. logistics. exactly. see you guys tomorrow. affect wheat output in the u.s., the shipping industry in norway, and the rubber industry in south america? at t. rowe price, we understand the connections of a complex global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment objectives, risks, fees, expenses, and other information to read and consider carefully before investing. >> chris: this was the week when the politicians stopped talking and we the people finally had our say. that's when the full magnitude of the mid-term elections took hold. and the storyline changed "on the trail." ♪

♪ >> guess what? i'm going to be governor of ohio. >> we have come to take our government back. >> this was never about me. it was always about us. >> today, nevada chose hope over fear. [ applause ] ♪ ♪ >> i spent my whole life chasing the american dream. [ applause [ applause ] >> i'm not recommending for every future president that they take a shellacking like i did last night. there are easier ways to learn the lessons. >> we believe we did the right thing and we worked verier hard in our campaign to convey it to the american people. >> the white house has a choice. they can change course, or they can double down.

>> the past two years provided a frightening glimpse of what can become of our great nation if we continue down the current path. >> we were so busy and focussed on getting a bunch of stuff done. that we stopped paying attention to the fact that the leadership isn't just legislation. >> i suspect we're going to have a whale of a fight over taxes and spending. the american people spoke on election night. >> chris: you will have a front row seat right here for everything that happens the next two years. that's it for today. have a great week! we'll see you next "fox news have a great week! we'll see you next "fox news sunday." captioned by closed captioning services, inc