our new year's resolutions for this show should be. i'd love your feedbook. on facebook and twitter, i'm brian steltser. i'll see you next week. state of the union with candy crowley begins right now. for all lauld lang syne, wh they tell you about this past year and the next one. ladies rule. special edition of "state of the union." women have their take on 2013, including politicians behaving badly. >> these were anonymous people on the internet. >> a story here for same-sex couples. >> and i declare you spouses for life. >> and -- >> there was a time when i was a young invincible. after five years in this office, people don't call me that anymore. >> -- the president's anis

harebelis. this is "state of the union." good morning, i'm candy crowley. it's a dreary day in the nation's capital. dreary and devoid of politicians. the president is on his annual christmas vacation in hawaii. and after a noisy year on capitol hill, leaders of both parties have gone silent over the holidays, some of them haven't tweeted in more than a week. that is some serious quiet. it gave us time to think about the year that was. as inaugural years often do, 2013 started with a newly re-elected president buoyed by strong approval ratings pushing a bold agenda. >> our journey's not complete until our wives, our mothers, and daughters can earn a living equal to their efforts. our journey is not complete until our gay brothers and sisters are treated like anyone else under the law. our journey is not complete until we see the striving, hopeful immigrants who still see america as a land of

opportunity. my fellow americans, we are made for this moment, and we will seize it so long as we seize it together. >> joining me now to sort out the 2013 moments that may have some shelf life into 2014 a collection of gal pals. essy cupp, a crossfire host, near rattan dem, and cnn political commentator donna brazile and anna navarro. one of my favorite ways to end the year is with you guys. i want to start out with something i thought was pretty amazing, we call the shrinking presidency. president started out with a 55% approval rating. and by the end of the year, he was at 41%. this caught my attention. it was when he -- with healthcare, it happened in december, and i framed the year nicely, and here's what he said. >> there was a time when i was a young invincible. [ laughter ]

after five years in this office, people don't call me that anymore. >> he is no longer young and invincible. it happens to presidents after four years. what happens to him next year? >> well, four out of the last five two-term presidents have experienced some setback in their fifth year. so president obama's like the other presidents, he gets the fifth-year itch, and clearly he's resilient. i think he has an agenda going forwa forward -- immigration, implementation of health care, making sure all americans can feel the rebound in the economy. i wouldn't count him on. it was a rocky year, in large part towards end of the year with the health care initiative, the website glitches, but this website will come back. >> there were other things, as well. >> it was not a great year. if you compare the year and what actually got done to this sweeping agenda he laid out in his inaugural address, it's

really hard not to notice how little happened. now, we could argue about who's responsible for all of that. but, you know, donna, if you look back at other presidents in their fefth year, or the first year of the first term, george bush, for example, had terrible approval numbers and didn't bounce back. there isn't historical precedent for a president with these numbers bouncing back. he'll need something significant to get there. >> i think a lot of people talk about the variety of forces. we have a house republican caucus that's said no to a lot of the items on the president's agenda, from immigration to guns. and i think the fact that washington has been so dysfunctional, people are taking that out on everybody. i mean, they're taking it out on the president. they're taking it out much worse on congressional republicans. i do think as we go into next year, things like health care will be behind him, and that seems to be improving, his numbers can improve from there. >> look, what's going to happen in 2014 was your question. he can either go down, or he can

go up. frankly, if obama care -- >> like gravity. >> basically -- >> the two offers on the table. if obamacare continues to be a problem, the corporate mandate goes into effect and it is as much a catalyst for anger amongst people as the individual mandate has been, then it's going to be a continued problem for him. i think the big problem is that he came in as hope and change, as a uniter. we haven't seen that. but the biggest problem the president had this year is those trustworthiness numbers that we saw that have dropped tremendously. and i'm telling you, all of us have been in relationships, we know what we're talking about. it's a lot harder to regain trust than to establish it in the first place. >> candy, he's still the decider, and as the decider, he can still shape the agenda, and he can also -- >> well, he hasn't fired anybody, and nothing has -- >> he can decide on a number of fronts, including some of the executive actions he can take,

but he can also continue to make sure that we make tremendous progress at home, especially on the -- >> well, he decided to bring in your former ceo john -- >> it's not like there isn't fresh blood coming in. >> i found it fascinating when i asked you for a top of top moments, and essy you're on both different ends, and both picked the pope, a couple moments of the pope. >> yeah. it was a big year for the pope. he was "time's" person of the year, whatever currency that has. and there were iconic moments. the pope's selfie was an iconic moment. the pope taking pictures with disfigured parishioners, spoke to the chasm that the pope is trying to close between the vatican and the layty. and i know liberals are real excited about what they see as a

progressive message coming from this pope. but his goal with the church, in limiting its authority, is actually considerably conservative. he wants to make a smaller church, a church with a small seat, a church that is of the people. it's a really interesting year for the vatican, and interesting to see how what he does shapes catholicism for americans and south americans and catholics around the world. >> it's interesting to me how the pope quickly became sort of a political figure in the u.s. >> yeah. >> and one of the things that you mentioned was the pope's debunking, i guess you could call it, of capitalism and the free market as some way of trickle-down economics, that that would help the poor. part of what he said was this opinion, meaning trickle-down economics, which has never been confirmed by the facts, expresses a crude and naive trust in the goodness of those

wielding economic power, and in the sacrolized workings. >> the pope has made strong statements, and he's really talking about this issue of increasing equality. he has made powerful statements about how the catholic church should be open to people of different views and some of the touchstone issues. obviously, he's not changing the church's position on abortion or same-sex marriage, but has signaled an openness to really include people of different views in the discussion. and i think it's this mixture of really focusing on economic inequality, focusing -- really debunking the basis of conservative economic policy as a strategy going forward, that makes a lot of people around the world -- not just in the u.s. -- open to him. >> look, the pope is not republican. the pope is not democrat. and i wish people in this country would stop trying to get -- >> amen. >> -- on the bandwagon of being

against somebody or with somebody that is high profile. what the pope has done, and i remember, donna, i was in your class, teaching the class the day he was elected. >> that's right. >> and he has changed the tide on the catholic church in the nine months that he's been in office. he has led by example. he has led with humility. he has put the focus back on the people. but more than anything, he is an inclusive pope who has shown that the church is not about being judgmental, it's about love and inclusion. i wish he were running for president. >> well, you don't want him to be political. >> you don't want him to be political! >> i don't say for what party, you know? >> and if he decided to run for pope, i would back him. >> he got our vote. >> he has our vote. and let me just say this, it has been a tremendous year for the catholic church. he's refreshing. to see someone who not just talk about what jesus said but

actually go out there and try to live as an example of what jesus would do. washing the feet of prisoners. being with prostitutes, can i say that, yeah, with prostitutes. he reminds us scriptures say we're all sinners but there's a road to salvation, and this pope is opening up the church for those who want to seek that salvation. >> switching now, on what we call a hard turn here, men behaving badly. >> oh, boy. i think it's the opposite. >> we're going the opposite. >> it's important what you just said, "men behaving badly." >> begin with the first word in that sentence. >> we can behave pretty badly, too. >> maybe in 2014. >> i think when you kind of look at -- anthony weiner, you had the san diego mayor had to quick, the toronto mayor, which holy cow, and then florida republican from trey radel. so 2 seems to me when i looked at this list, it's funny how

transient that is, how quickly we move past these things. >> thank god. >> no, the truth is that in new york, eliot spitzer, anthony weiner, didn't win, people do make a valued -- you know, it's these stories that mpop up and down. >> we saw the rise of weiner, the fall of weiner. >> yeah, wow. >> a sunday morning! wow. >> i think as fun as it was for "new york post" headline writers to get anthony weiner back this year, i think he actually really did impact politics in new york. i believe you could argue we have bill de blasio as a mayor because of weiner, allowing him to come up. and bill de blasio along with elizabeth warren are these progressive rock stars bringing

the party leftward. i think what anthony weiner did in that mayoral race was fairly significant and we'll see that. >> it's not clear to me white he took votes from christine quinn as opposed to bill de blasio. >> he took momentum. >> yeah, he took momentum from everybody. so i don't think he had a political effect. i think he took a huge amount of attention, and it moved away. and i think bill de blasio won -- >> if anthony weiner hadn't gotten in -- >> well, i still believe that public service is a noble calling. and these politicians behaved badly. clearly in the case of bob filner. i mean -- >> the mayor of san diego? >> yeah. 18 women. i mean, it was, like, at one point, "dude, move on, move away, we don't want to pay for your therapy." they get a sense of entitlement, the arrogance of power. somehow impacts male politicians more than female politicians. >> and then you go to rehab for sexual harassment?

does that work? is there rehab for sexual harassment? >> apparently not. apparently not. it didn't work. >> then, in 2014, do you think there are a lot of women candidates running who can take advantage of the interest in having kind of a clean sweep and a new kind of voice? there's great candidates in georgia, michelle nunn, allison grimes in kentucky, really are embracing a, you know, time to kind of have a new voice in washington. >> closing out this one. are there -- i remember when anthony weiner and eliot spitzer, they decided to run, and we said, it's new york, they don't care about these things, but it turns out the new york voters did. >> well, think of that. >> they probably looked at mark sanford in south carolina, you know, maybe we can go on the appalachian trail and come back from whatever. >> yeah, but they couldn't, which is the big difference. >> yeah. >> i couldn't believe mark sanford got re-elected, but there was a difference in his case. and he was running against

terrible, terrible democrat candidate. >> but bill de blasio, we have a real leader, will tackle unemployment. >> i certainly hope so. >> these are asterisks in history, basically? >> hopefully. >> hopefully. i don't think thin wants to see anthony weiner mount a comeback. i think we're all -- >> you think huma doesn't want to -- >> for the record, candy, we just talked about the pope. i believe in second chances. >> so there you go. >> there you go. >> a good place for us to -- >> -- they're going -- for weiner, it would be a third. that's stretching it. >> it would be a third turn. but forgiveness, all that stuff. okay. we are saying good-bye to 2013. but there were a lot of moments in 2013 that made us think of 2016 and some possible presidential picks. and anna is going to reveal one of her top picks next. [ male announcer ] here's a question for you: the energy in one gallon of gas is also enough to keep your smartphone running for how long? 30 days?

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i am back with our girl power panel. we're taking a look at some of the political moments of the top ones in 2013. next up, the 2014 republican breakup. how far is this going to go? it was interesting to me at the end of the year, john boehner, the republican speaker of the house, did what his moderates have been begging him to do all year, which is slam the conservatives. >> they pushed us into this fight to defund obama care and the shut down the government. the day before the government reopened, one of the people -- one of these groups stood up and said, well, we never really thought it would work. are you kiddin' me? [ laughter ] >> i gotta love that. and any republicans here, republican-leaning people, offended by that. >> no. it seems like john boehner had been waiting a very long time to do that.

and he could do that with very minimal blowback. he didn't need those people to get that budget deal passed. so it was sort of a win-win for him. i think the other interesting republican breakup this year, though, looking ahead, was rand paul and chris christie. chris christie gave a speech basically scolding paul, we're not a debating society, we have to win elections. i think that crystallizes the gop fight of the year -- do we win elections or stand on principles? >> this is the big question going into 2014, right? it's not like john boehner was listening to conservatives because he wanted to. house republicans -- senate republicans have been really worried about primary fights. look at mitch mcconnell dancing this whole year around energi energizing conservatives, opposing conservatives. so i think the big question going in, that is unanswered, is are republicans -- are the conservative tea party activists going to have the power to be no out more and more moderates? and as democrats might enjoy

that, right, because it will help in the 2014 elections, but it will move the republican party farther and farther to the right, so john boehner has been saying no. >> that's a question that's going to get answered through the primaries starting in march and going into the summer. and i think one of the things that's going to come out of this election in 2014 is that we're going to see the traditional -- the more mainstream republican, people like mcconnell, like john cornyn, mccain, cornyn, traditionally he can be called a conservative, i don't know where -- i think you're going to see them win their primaries, because they've taken it seriously, they're campaigning hard, raising the money and doing what they have to do. they're not about to get richard lugar. i think the republicans did -- >> they see it coming now? >> with john boehner, the far conservatives, they tried to force his hand, and in the process of forcing his hand in the shutdown, they strengthened his hand. because there is this consensus of being fed up and wanting to

get something done within the republican party. >> you know what? i get e-mails from tea party -- maybe donna brazile is a republican in some other lifetime, but they send me -- i receive -- you know, i read their e-mails out of respect to their point of view. and they're angry with many of these so-called r.i.n.os -- republicans in name only -- >> i call this republicans who are inclusive not obstructionists. >> they're angry. i have this deep, dark red, i'm talking about the tea party -- >> what's your favorite flavor of tea, okay? >> black, of course. because when i add cream, it comes out brown, just like me. [ laughter ] >> there's no place for the tea party. they're angry with the republican establishment. they're much more energized, and if they're able to raise the money -- the last e-mail i received -- they want to raise money to take on the mainstream republican establishment. we have not heard the end of the

tea party. >> absolutely. we should add, before i move on to the next one, that business has now gotten involved, business interests, and they're going to put some money into some of these moderate republican candidates -- >> -- grassroots. >> moving -- >> they do have more money. but moving along to our next one, and that is what does 2013 have to do with 2016? lots of moments that showed us really some candaidacies that were on the rise. we had, you know, one democrat and a number of republicans that we've seen. i want to just kind of give you a refresher course here. >> nothing has frustrated me more than false choices like the one the president laid out tonight. >> i will speak until i can no longer speak. >> i do not like green eggs and ham, i do not like them, sam, i am. >> i no he if we can do this in

trenton, new jersey, maybe the knoll be folks in washington, d.c., should tune in to see how it was done. >> was it because of protest, or some guys out for a walk one fwhiet decided to kill some americans. what difference at this point does it make? >> so, you know, lots of -- anna, you picked the water-sip moment, which actually was -- rubio was picked, marco rubio was picked to respond to the president's state of the union. and his sipping the water got some attention. >> i think the man learned how to get hydrated after a while. let me tell you this, it was a watershed moment. it's something that we talked about for a lot. but he learned how to turn water into money, because he ended up using it to raise funds and raised a couple hundred thousand dollars. >> it's the high water mark. because we really haven't heard a lot from marco rubio since that moment. >> he's under water. it doesn't mean he can't come up. >> which had a lot to do with immigration. >> yeah.

>> that's when he went under water. >> what's interesting about that montage is that a lot of the republicans, like what happened in the primary, a lot of the republicans kind of rose and then fell, rose and then fell, rose and then fell. and i think the big issue going 2014 -- and i'm a personal believer in actually having this conversation in 2013 for 2016 -- is who will speak for the republican party? i think essy's right. there's a big fight between the kind of libertarian wing and the more mainstream wing between chris christie and the rand pauls, and that's the -- who's going to own -- who's going to be the voice of the republican party will be an issue going forward. >> we won't have somebody who owns the voice of the republican party really until we have a nomination. >> until the nomination -- >> we'll have more moments next year to talk about, for another year. >> let me ask you something, because i want to talk about hillary clinton, and ask you -- let me start with donna, and have you chime in, and that is that moment, what difference does it make?

what are the chances, if she runs, we'll see that in the cam main commercial from republicans? >> well, look, the republicans are probably going to go back and get the best of hillary tapes, and that will be one of them. but here's what people should know about her. she's a history maker. and if she remains contemporary, she's going to come out with a book next year, and we're going to be talking about her history, the things that she's been able to accomplish. you know, the policy that -- the policies that she hopes one day to enact when she's president of the united states. so we'll be looking at that video and a lot of other video, but that will not be the defining moment. >> i thought it was an interesting year for hillary. we saw two hillarys. this is what makes her a carnie operative, you saw her elizabeth warren, talking about progressive politics a lot. and on the other, we saw the hi hillary of the '90s. it will be interesting to see which hillary she carves out, because i don't think she can be

both for much longer. >> look. i was -- i was -- i worked for hillary. you know, hillary's been a person who's talked about economic inequality, rising middle class, a fairer shot for the middle class, did it in 2008, done it her entire career. this will not be a new conversation for her, and she'll be one of the strongest people talking about it, because as donna said, she has a long history on these issues. >> we know she's told us we're getting a decision out of her this year. so we'll know -- >> we'll talk about that moment next year. as we count down the best political moments on 2013, whether we return, the supreme court makes some bold decisions and the senate makes a controversial one. [ sneezes, coughs ]

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i now declare you spouses for life. [ cheers and applause ] >> same-sex wedding ceremony in california, moving on now to the supreme court, gay rights. i mean, just a fundamental shift in the subject that seems to me not just at the supreme court, but elsewhere. >> so fundamental, in fact, that you saw a number of republicans come out this year in favor of gay marriage, and sort of

evolving on that issue. it really has been a watershed year for that issue. and i think it's interesting that in 2016, you're going to have democrats who for the first time have to run as being in favor of gay marriage. that wasn't true in the last election. it's interesting. >> i think what's amazing, it will be as s.e. is saying, this will be a wedge issue on the republican side. i mean, ten years ago, we had republicans pushing a federal marriage amendment in the senate to ban gay marriage, and now it's become an issue, 40% of the country will be in states that are tolerant of gay marriage, or at least civil unions, and that number is only going to grow. and i think it's absolutely the case, every democrat, i believe, will be for same-sex marriage, but -- >> they have to be. >> the question will be, will the libertarian brand of the republican party support this form of equality, really, which will be a question, i think, in the republican party. >> -- most rapidly changing social issue of certainly our lifetime. >> yeah. >> and so, i think we know where

it will be by the end of 2016. by the end of this year, there's 18 states plus the district of columbia, including states like utah -- >> right. >> -- that now have legal gay marriage. so it may be much less of an issue than it is today, just in another 12 months. >> mm-hmm. >> the courts continue acting and acting decisively. >> i think this was a victory for equal justice under the law. the supreme court once again reaffirmed there's no such thing as second-class citizenship in the united states. so it was a major victory. you know, candy, speaking of the supreme court, they got it right on this issue but wrong on the act. the provision in the act that sets the formula for preclearance to ensure that we never go back to the days when, you know, we had hurdles for people -- ordinary citizens who want to register and participate in the political process. they removed that formula. i don't know if congress will be able to reinstate it, but for right now, a key provision on the voting rights act was gutted by the supreme court decision this year.

and shelby versus holder, so i think we can get that one right. >> -- we've seen across the states, conservatives acting to limit voting rights, and i think it just really proves how wrong the supreme court was. >> actually, what i saw is the opposite. i saw the backlash that happened in my state of florida in 2008 because of what happened there with the voting, the long lines and the limitations. and so, the legislature has acted to restore some of the hours to restore some of -- some of the more permissive voting conditions. >> let me move you on to the -- >> -- florida and vote in the same -- [ laughter ] >> that's a formula, huh? >> a big change. >> you would have nothing to talk about in -- >> next up, ladies. continue that elsewhere. >> sorry. >> harry reid, the head of the senate, introduced this next one. >> is the senate working now? can anyone say the senate is

working now? i don't think so. today, democrats and independents are saying enough is enough. >> i call this the most boring big moment that happened this year, because they changed the filibuster rules. democrats said no longer any filibusters on presidential nominees except for the supreme court. and the supreme court, you still need 60 votes to get to the vote. that fundamentally changes the way that the senate works? >> it does. but, look, anytime a party changes rules that benefit that party, they later come to regret it when the next party is in power. and i have to say, this moment, i think, is sort of illustrative of why folks are so uninspired by congress, because process politics is uninspiring stuff. this really doesn't include -- >> -- only thing four of us can

soundly agree on, is the senate working? no. >> no. it's not working, because it's ground to a halt from filibusters. i mean, we have huge -- the huge abuse of filibusters. so, i think this is an issue, you should come back next year and say, are things working better, because people can actually get through a process and we can have a functioning government, because you can then have cabinet secretaries instead of people just -- there's no one home at these agencies, because we have crazy use of filibusters. >> all of the president wanted and what harry reid and the democrats agreed to do is get his appointees through the process. >> up or down vote. >> yeah, up or down, vote against them, but to hold on, say, not now, when you have so many vacancies on the district court level, so many cabinet -- subcabinet positions that went vacant. come on. [ overlapping speakers ] >> harry reid has not been a very effective -- >> and let's be honest, i think he's been great. whenever you have a party in the senate that's different than the party in the white house, this

happens, whether it's republicans in the senate or democrats in the senate. and i agree with s.e., i'm a traditionalist. i think this comes back to haunt democrats, and i think it's not a good thing for the senate. >> and, also, i must say it has embittered republicans to the point -- >> of course. >> -- that they're still holding up stuff, using their 30 hours that they get anyway. >> yeah. [ overlapping speakers ] >> here's the thing. we shouldn't be saying a great job for the filibuster, and now there are rules that actually went to what they were for hundreds of years. >> and remind you of this when the republicans take the senate. when we return, we'll continue with our list of top political moments. the president's agenda, what happened to it on capitol hill, the issues that never made it to 2013, the un-moments, one of donna's choices. >> i haven't forgotten those kids. shame on us if we've forgotten. avo: the volkswagen "sign then drive"

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welcome back. we are counting down the big political moments of 2013 as we watch 2013 fade away. with our girl-power panel, next up, congressional gridlock. these were the un-moments, donna. >> yeah. well, this was a moment because of political posturing, partisan differences, the bicammeral differences. divided government. republicans control one-half of the government, and for these reasons, we couldn't get a farm bill out, although it has a provision that would in many ways reduce the deficit. it would help farmers right

away, help the agriculture, help people on food stamps. we didn't get the farm bill. we didn't get anything done on energy this year. we were set to pass immigration reform. that didn't happen. so we have -- we have plenty of reasons to blame the process, but, you know, in the end, it's leadership. it's what john boehner said, you know, in his last press conference. essentially, we can get things done, but people need to move out the way. >> i'll tell you something, before we get people away too depressed starting 2014, we should remember that at the end of the year, we saw a glimmer of hope when it comes to bipartisanship and actually getting things done. we saw it from paul ryan and patty murray. and the way they did it was without the posturing. they negotiated quietly. and they did what has become an anomaly in this town, which is you give a little, you take a little. you sit around the table. you negotiate. you compromise. you realize you're not going to get everything you want, and you realize you're not going to give everything they want. so kudos to them. >> it was so minimalist.

i mean, it was hard -- [ overlapping speakers ] >> like a glass half full, half empty thing. they haven't passed a budget in a long time. it was important for them to come together. i don't think we actually needed grand bargain, the deficit is actually falling, so it's important for us to get something. so i think the big question will be the test of whether this is, you know, a trend, is will the house take up immigration reform next year? and i think the conversation we had about primaries is the big conversation. if the leadership decides they aren't going to be worried about primaries going forward, they will pass immigration reforms, because it will be good for them in the long run. >> i think the president came into 2012 with a lot of momentum. he saw 2012 as a mandate for a progressive agenda, and he laid out that agenda. and because his new term started so soon after newtown, he went right for gun control. i think he burned a lot of capital there, and sort of threw

the agenda off-course. i think immigration would have had a much better chance had that not been a hiccup right after he was re-elected. >> the senate passed immigration reform. i mean, the senate took up -- [ overlapping speakers ] >> -- sat there. >> what was interesting about immigration reform and the budget process was it didn't involve the president. it involved minimal engagement from president obama. it was congress actually taking legislation into their own hands, as they well should, and i hope they continue to do that in 2014. i am optimistic. i do think we're going to see the house move something on immigration reform. if we haven't seen it by early summer, i will then be pessimistic and drinking heavily, but until then, i'm remaining optimistic. >> look, 23 initiatives on guns, okay? the president has tried to lead on that issue. the fact that congress won't move unless the nra says move, that's up to congress and the leadership. but, look, this president led on immigration. he's leading on raising the minimum wage. you know what? it may not happen on capitol

hill, but all throughout this country, states are taking up the initiative. >> yeah, absolutely. >> and taking on some of the issues. >> california set the minimum wage, and i think the democrats will campaign on the minimum wage, and it will be a defining issue. yeah, there will be a bill in the senate. i think -- >> will it pass? will it pass congress? will it get to the president's desk? >> it will pass the senate and then an important issue in the elections -- >> which goes to the description of an election year. >> yeah, right. >> put it on the floor, have it defeated and use it as a talking point. i won't ask you to raise your hands but nod or shake your head. grand bargain on the budget? going to happen? >> no, shouldn't happen. >> immigration, going to happen next year? >> maybe. >> yeah. >> yeah. >> whoa. >> yeah. >> any form of major -- any major form of gun control, going to happen next year? >> absolutely not. >> she's going to personally stop it. and i'm personally going to leave her at home. >> any big changes in energy

policy? >> we need -- we need to have some initiative. i don't see it happening. you know what? max baccus is moving on to become the next ambassador to china, and senator mary landrieu, a strong proponent of energy production in this country, a strong opportunity for us to move forward. >> there's a lot the president can do with executive action. >> like the pipeline. >> yeah. [ laughter ] >> you talked about jobs, in the final press conference. the year, the president said we'll continue to focus on the economy. big major economic bill? more jobs, stimulus? >> -- a job stimulus bill, actually. you know, this is an issue. 75% of republicans support minimum wage. so i say -- >> it's tapering off, so i think you'll see less stimulus, not more. >> the american economy and the american people are so exceptional that despite washington, the economy is slightly improving. >> okay. we're getting on to my top moments, because, as anchor, i

get to pick the last two. the top picks of the moments of 2013 are next. not surprisingly, they will probably end up as campaign issues next year. [ sniffles, coughs ] shhhh!

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welcome back, as we count down the political moments of 2013. my last two, both happened in october. i thought they could both be be number one, so we're going to do this chronologically. number one, the shutdown. the american public took a look at it, and all of the closed signs from the washington monument, et cetera, and blamed republicans.

it immediately was grabbed onto by democrats as the talking point. these people will obstruct anything. but then, in the same month came obamacare. it seems the final two teed up the 2014 elections, which will be a shutdown versus a meltdown. >> absolutely. this will be the story next year, which is worse for what party? was the obamacare rollout, and it's continuing, be more harmful for democrats than the shutdown was for republicans? and if we try to shut down the government again, i mean, you know, you could see that replay. so i think 2014, november, really hinges on how those two stories evolve over the year. >> yeah, and i think what's important is the health care rollout story has already shifted. i mean, there were huge probl s problems. everyone was angry about them. we have new numbers we have a million people from the aca getting coverage. >> 9 million of them -- [ overlapping speakers ]

>> neither one of these is true. we have a 7 million target. if it goes on the same trajectory as massachusetts, we'll hit those numbers. most importantly, who is signing up. 25% in california signing up. [ overlapping speakers ] >> paid political advertisement for barack obama. >> no, oddly enough -- just facts. >> we have not seen obama care shift yet, because i think we need to see how the corporate mandate -- assuming they don't put another, another, another extension, because i've now lost track of how many extensions and delays the white house has given. i don't think the republicans should focus on repealing it, because the white house will repeal it itself. but it will be important to see how the implementation rolls out, how it affects people, and how it plays out politically. we really don't know the answer yet. >> we don't. every month that goes by, a little something else happens. it depends on what is the

dominant theme. is it that, oh, my gosh, here's another problem for obamacare? or is it, look, this entire family got something they couldn't get before? >> you know, candy, we have focused so much time and energy on the process, of how to sign up. for millions of americans who without health insurance, they're finding for the first time that they can truly have affordable health care. it has stabilized premiums. it has given a lifeline to millions. so i'm not going to do the politics as much as i want to believe that it's helpi helping millions of americans. now, the government shutdown, that was a wake-up call for the republicans. you see i want to shift real quick. >> we noticed. >> a huge wake-up call. the republicans figured out -- they could not run in 2014 with the politics of the tea party. the tea party that really put the majority in the house, they cannot run with that kind of politics. so i think the republicans are going to continue to pivot away from the tea party republicans

and the democrats are going to continue to make sure that we implement this in the correct way. hopefully, we can get the states to continue to implement and expand medicaid. and this will be a positive issue a year from now. >> -- i think the shutdown was a wake-up moment for republicans. i hope that it taught some lessons to my party. and i hope that it will then affect how we -- you know, what we do in 2014 and how we campaign in 2014. >> this is an open question, right, because there are a lot of republicans already threatening a default on the debt ceiling. >> on the debt ceiling, exactly. >> and that's going to be a very big question, whether boehner and the leadership can push against those. but when you have paul ryan saying vote for this budget, because we'll threaten a whole host of activities around the debt limit default, that raises questions about which -- who speaks for the party going forward. >> and here's the problem. you did have paul ryan saying, yeah, okay, we got the debt ceiling, and we can make progress there. and the president going, by the way, i am not negotiates over the debt ceiling. isn't that another recipe for --

>> potentially. yeah, potentially. here's the problem. look, this worked out well for paul ryan. his numbers are up. people are crediting him with moving this ball forward, but if you look at ted cruz, he's, like, i got elected and mitt romney didn't. my politics must be doing something right. you're going to have this division, these two sides of the party, having the same fight for the next three years. because they get validation everywhere they go. and it'll really come down to which direction they want to move in. >> so the question is, you th k think -- i cannot imagine the republicans thinking a shut -- dealing over the -- that not raising the debt ceiling will be a great idea. >> they're thinking about it, and the other day at a press conference -- >> they're threatening about it. >> -- they're threatening, but, candy, you say, what do you want in exchange for paying the bills you already accrued? they don't know. so they're threatening it, but it's going to hurt them and it

will hurt the -- >> the president says i don't negotiate, that doesn't poll well either. [ overlapping speakers ] >> both things are true. it's not the right thing to do. if i was advising president obama, and of course he won't listen to me, i would say, you know what, call their bluff. sit with them. say, let's negotiate. he's saying, i'm ready to talk to them and see what they want afterwards. well, what's the difference between afterwards or, you know, there's nothing wrong with negotiation. >> yes, there is, actually. there is something -- >> -- to be able to understand that. >> what creates uncertainty, uncertainty in the markets forever. you know what creates uncertainty? the idea that we'll spend a lot of time negotiating over the debt limits. do you care about economic growth, you'd say, let's stop having the games around it and just pass the bill. >> which i have to -- i have a minute, so an end-of-year question, which you have to tell the truth. is it peace and harmony next year, or is it open warfare?

>> can't we be in the middle? >> no! yes, of course, you can. >> i think it will be a pretty divisive year. >> yeah, if i had to choose, i would think it would be a divisive, but, you know, we'll see if republicans and democrats can make progress on a few little issues. >> they'll be smoking pot in colorado, so maybe it will be peace and harmony there. washington, i'm not sure. >> you know they'll be chilled out, but for the 1.3 million americans who are going to lose their unemployment insurance, let's hope that we have a congress that's fair and will tackle these big issues, including extending the unemployment benefits. >> donna brazile, happy new year, thank you. anna navarra. [ speaking spanish ] >> what she said. >> thank you for coming to do this. s.e., as well, happy new year. thank you, all. thank you for watching "state of the union." i'm candy crowley in washington. head to cnn.com/sotu for analysis and extras. if you missed any part of today's show, find us on itunes,

just search "state of the union." from all of us here at "state of the union," a happy new year to you and yours. fare fareed zakaria is next for our viewers in the united states. welcome to this "gps" special report. i'm fareed zakaria. 2014 will be a year of surpri s surprises. events that no one can predict. but there will be one great spectacle in the spring, an event that never fails to move me deeply. india will hold its national elections. the largest democratic process in human history. more than 700 million people at 800,000 voting booths using 1.3 million machines will cast their ballots. aside from the extraordinary affirmatio d