Priebus on State of GOP: Political Capital (11/08)

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Nov. 8 (Bloomberg) -- This week on Political Capital, Republican National Committee Chairman Reince Priebus talks with Al Hunt about the state of the Republican Party after the election, Bloomberg's Rich Miller on the October jobs report and Margaret Carlson and Ramesh Ponnuru debate the 2016 GOP frontrunners. (Source: Bloomberg)

This week on "political capital", rants previous talks about the state of the republican party after the election.

We discuss what is next for president obama rich miller on the october jobs report.

Then, a debate on the 2016 gop front-runner.

We begin the program with the rnc chairman.

Thank you for being with us.

Hat he to be here.

Let's start with chris christie.

A huge reelection success.

Is this a model for 2016? if you're going to have that success and copy it all over america, i will take that model.

He is a special type of candidate.

He is the type of candidate who makes a promise and keeps a promise.

What this party and would both parties need are people of their word that win elections and govern like they have campaign.

Is chris christie the front runner for the next presidential race?

I don't know about that.

I think we have a pretty deep bench.

He is going to be a prominent figure in our party moving forward.

There is no front runner right now?

I don't think so.

It is three years away.

Certainly, he has a case to be made as well as a few others.

We are proud of what he did.

Bastad but virginia.

Can -- let's talk about virginia.

Cuccinelli blames a lack of support from the national rnc.

That's not true.

The support was very much appreciated.

It was other groups.

Some of them point the finger at you in that campaign.

I've talked to them.

They said that they were down.

You gave them $3 million for that ground game.

But four years earlier, the rnc gave 9 million.

The 09 race was a lot easier than this race.

What is unique about 09 is that mccain palin transferred into the rnc $23 million.

Do you think that ken cuccinelli lost because of insufficient funds or because of a flawed candidacy?

You can talk about money, you can't talk about all kinds of issues and tactics.

If there was a few more days, i think he would have won.

The reason is because of obamacare plane into care -- coming into play late.

So, when they say that you left money on the table.

You had it in the bank.

He is dead wrong?

I don't think that he is saying that.

Yes, he is.

The circumstances are different.

I also took over a republican party that was $26 million in debt.

Everything is different.

I am not criticizing the decision to spend 9 million.

When you start with 23 million and use it down with the other party committee and you divide out, how are we going to spend this money?

Let's take some of his 23 million from mccain palin and put some of that on television.

And the rga can spend 6 million.

This year we got together and the decision was that the rnc would spend the 3 million to fund the ground game and the rga would spend 8 million.

Basically, you think you did everything you could have done.

Under the circumstances.

Do the elections of 2013 presage anything for 2000 14? absolutely they do.

You cannot go for broke in 2013 when you have house races, senate races which you need to find next year.

The reason we are optimistic is because a week ago, ken was down with double digits with obamacare coming into play.

He closed the gap.

Certainly, we want to win.

That should give us hope for next year.

Let me ask you about obamacare, the rollout has been horrible, as you know.

There will be a continuing resolution again in january.

Given how bad the rollout is, should the republicans say the condition for approval should be to defend obamacare -- defund obamacare?

I don't know what the strategy will be.

Paul ryan and jeff sessions are trying to get something done as far as budget.

That is their goal.

I don't think that a shutdown is smart for us.

I don't want to see that.

How about the debt ceiling?


mcconnell made the pledge there will not be a shutdown.

Your postelection growth and opportunity project, the rnc that latinos and asian- americans consider the party unwelcoming and they must " embrace and chanting immigration reform." the senate has done that.

Would it hurt republicans if the house does not follow suit and refuses to pass a bill?

Lex i'm not sure what they will do.

-- i'm not sure what they will do.

The idea that a multi tiered approach will not happen by the end of the year, i don't think that that is necessarily true.

I think paul ryan wants that to happen.

If it shouldn't happen -- it could happen next year.

I don't think there is a midnight hour here.

You think the house will pass a major immigration bill in this congress?

You think so?

-- i think so.

Comprehensive immigration reform to you could be these four things and to me it could be six things.

As far as what terminology want to use, it is your prerogative.

I do think that something significant is going to happen.

Obviously, mass deportation is not an option.

I don't think that doing nothing is not an option.

-- is an option.

Something significant is to take place.

What that is, i don't get to make that decision.

The rnc report shows the republicans have a problem with younger voters.

Many of them have a tolerant view of gay marriage.

Anyway, they said it is a gateway.

Gay rights is a gateway in terms of whether they want to be in the party.

The senate passed a ball that outlaws discrimination against gays and lesbians in the workplace.

Should the house do the same?

What's i don't know all the details of the bill.

-- i don't understand all the details of the bill.

There are some problems and 10 localities with some unisex issues which i don't fully understand.

As far as discrimination in the workplace, i don't agree with that.

The problem with that bill is that it includes more than that issue.

I am not a legislator, i don't get to make these decisions.

You don't think that it would affect the party standings with young voters whether the hass passes a bill or not -- whether the house passes the bill or not?

When you look at the libertarian movement, they are young people.

It is good to see you.

Take you for being with us.

What is next for president obama and his signature health care law?

Also, implications for 2014. ? chris christie's big victory was offset by the lost ofs of tea party candidate canken cuccinelli.

We are joined by national correspondent julie davis.

We have a rare disagreement.

You think it was a bad day and an ominous sign for the tea party.

Is certainly showed the limits of the tea party and the appeal for candidates aligned with the tea party and what they can do in these races.

Virginia is a purple state.

Ken cuccinelli campaigned as a tough conservative.

He got beaten.

It was a narrow victory.

But, that was the republican race to lose.

It was an off year election in virginia.

He lost.

There are a lot of recriminations in the republican party.

If i am a tea party person, you gave us john kane mccain, mitt romney.

We give you ken cuccinelli and what do you do?

You don't really help us.

Leaves a lot of recriminations to go around in the party.

The tea party said, we were victorious here.

He came at a striking distance of terry mcauliffe.

That means we are still a big force.

The establishment is not so sure.

Republicans are very nervous that if candidates like this cannot prevail, what can they do to really get their base out and energize them is to win elections?

Also there was in alabama special election, but that was a really flawed example.

You don't think that the business community is going to mount campaigns against many tea party candidates.

They are certainly giving it a try.

We saw this happen in alabama.

There was a new group lost in the last several weeks by a former congressman.

They say they're going to try to bolster republican incumbents being threatened by tea party candidates.

The problem is that they will have a hard time turning up their base if folks feel like they are turning against their roots at the republican party.

How much has chris christie assuaged the movement with his big victory?

I don't think very much.

They feel very nervous.

The narrative here was that if you are a real conservative like ken cuccinelli, you will not be embraced by the establishment.

If you are chris christie and you run in the middle, that is the kind of person that they want.

If they run another mitt romney, another mccain, they will get beaten again in 2016. what does this presage for 2016. it depends on who republicans choose to run against democrats.

They still have a hard road ahead.

They have a lot of things to do.

They have a very narrow senate majority to protect.

It would have been an easier path for republicans a little bit more narrow.

Speaking of navigating, there are 14 senate democrats, they are nervous about the affordable care act.

They went and they met with the president and said, get this right.

That was the most telling moment.

These 14 senate democrats were invited over for this meeting.

It gave them a chance to blow off some steam and the president and the vice president.

It gave them the optics of yelling at the white house.

The fact of the white house recognize that those 14 senate democrats need those optics to win their reelection is something pretty remarkable and it indicates how much the administration understands the clinical damage this whole rollout is having.

Does a lot of this has to do with their own insularity?

The unwillingness to a year or two ago to put someone, maybe someone who was an outsider, but smart in charge of this.

That is something this white house has struggled with.

That is putting it nicely.

It is something that a lot of commentators and columnists have brought up repeatedly.

There is a recognition that they need to bring people in from the outside.

They brought in just -- it was not really from the outside.

He is a smart guy.

May be he can fix the glitches.

How do they handle the political storm in the meantime?

None of this seems to be getting fixed very quickly.

Kathleen sebelius was on the hill giving a sense of the scope of the problem and it sounds pretty severe.

You did a terrific role file of the omb director.

Does she call the shots in these budget negotiations?

The white house is trying to have the hill call the shots on this.

They have recognized it will not be a big deal.

It will be small.

They have stressed that they want to return to normal order.

While they want revenue, they have said what the ratio of revenue to cuts would be.

That is by design.

She is involved, she is talking to people all the time, but she is not storming the gates of capitol hill.

The specter of snowden hangs over obama, doesn't it?

They are racing for more revelations from the documents.

They suspect that more things are to come out and they don't know what it is and the white house argues that a lot of those things are misinterpreted by snowden and reporters.

They are doing a report evaluating how they handle intelligence.

This is an issue the white house will be dealing with for months to come that could influence not only domestic politics but their relations abroad.

You would think they would know what is going to come out.

They don't know how it will be picked out or how it will be interpreted.

We were lucky to be able to cherry pick the both of you.

When we return, rich miller breaks down the october jobs report.

Then, a debate on the 2016 republican front runners.

? welcome back.

First, rich miller is here to break down the october jobs report.

Your experts told me it was going to be a lousy jobs report.

It was a good one.

The household survey showed that it went up to 7.3. you can ignore that because that included workers who were furloughed as unemployed.

On the payroll side, or they survey employers, if you were furloughed but you got paid, they counted u.s. employed.

That is good news.

The payrolls rose by over 200,000, the run rate is over 200,000. the gains were widespread.

You had construction, manufacturing.

It was a good report.

It confounded the experts.

The day before the gdp report came out, it was healthy growth but most of it was inventory in the which is not such a good thing.

Some are starting to mark down their forecast for growth in the fourth quarter.

Figuring that some some will have to cut back on production.

You look at underneath this.

This is a rocky balboa recovery.

It keeps getting hit by this and that.

It gets hit by the european crisis, the partial government shutdown, the s&p downgrade.

It keeps on coming.

Underneath it all, we are growing at two percent.

It is not great but it is impressive.

You are advising the federal reserve which will meet on december 18 to say going into the meeting, what will they do?

They have one more employment report before the next meeting.

Obviously they will take a look at that.

The odds that they will taper have not gone up.

What they will be looking at is how the markets react to it.

If the markets could spook like they did in the middle of the summer, by the assumption that they will taper, the fed might not do anything.

You have the first hearings for the federal reserve chairman designate, janet yellen.

Are you looking for fireworks?

The republicans will probably take her to the woodshed and complain a lot about qe.

She will say there was likely a time will we will get out of quantitative easing.

All in all, i think it will be a lot of sound and fury signifying not much.

She will get out of the committee.

Sometime early december, she will pass the senate.

As many as 70 if not more votes.

Like bernanke, 70-30. a huge win for chris christie.

Some say he is the leader of the republican party.

Is he now the front runner?

Is he an hillary clinton land?

I think he has a strong claim.

I think that he is the inevitable nominee, the less he will be.

The same thing is true of hillary.

I don't think that the republican party is in the mood to anoint anyone.

This was unimpressive win in a lot of ways.

He does not want the curse as the front runner.

He did not want to leave the stage this week.

He will be on a couple of shows.

For shows.

He relishes this.

He won the women's vote, explain that to me.

I am saying, if you are not married to him.

You don't mind that kind of bluster of his.

You need a plumber, i am calling a plumber.

He showed that in hurricane sandy.

That is very appealing.

We have the heretic problem, which he is, for many republicans.

We have another race which is rand paul and ted cruz.

Rand paul lost very big this week.

It was not just that he plagiarized but the reaction.

Petulance, i am so busy, blaming it on staff.

Then talking about christie at a hearing.

Ted cruz thrives on controversy and criticism.

You see a cruz vs christie.

Yes, in the small.

Tell me how you see that, ramesh.

Cruz and paul have a diagnosis of what is wrong with the republican party.

We know what is wrong with it, we have the answer and the solution.

What is christie's version of that?

It is possible that he thinks that these guys have the answer.

Maybe in his case, he is the answer, he is the solution.

I don't think that that will play very well.

Lots of times you like a person's approach to the problem.

Many times we don't know what the problems will be so don't give us solutions.

That is the advantage that kristy has over rand paul and ted cruz.

If you want to look at someone else, look at scott walker.

He is the one guy that could come up on the outside.

You always come up on the inside and outside.

Thank you for being with us.

We will see you all again next week.

"political capital" is a production of bloomberg television.


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