>> production assistance for "inside washington" was provided by allbritton communications and "politico," reporting on the legislative, executive, and political arena. >> i am at so looking forward to representing the people the 26th district and fighting for the issues i know they care about in washington. >> this week on "inside washington," why all the fuss about one special election? think paul mwai and's medical plan. medicare plan. >> israel will not return to the indefensible boundaries of 1967. >> the american president discovers his inner irishman,

dines with the queen, and wrestles with heavy issues at the g8. >> i am running for president of the united states. >> pawlenty is in, mitch daniels all doubt, on spent discovers new hampshire, and bachmann and palin edged closer. >> i have that fire in my belly. >> we will get back to sarah palin and others in a moment, but first, i want to go look at "politico's" thursday headline. this week, democrat kathy hochul defeated her opponent, republican jane corwin, in the special election for new york's 26th congressional district. this district is a solidly republican, and generally, but does with the key issue was? >> jane corwin supports a budget that essentially ends medicare. >> what do you say to these we

need republicans? >> they are going to run these attack ads regret this. this is a time for leaders to be leaders. >> we will hear from paul ryan later on. democrats tied republican jane corwin to ryan's plan, which makes major changes to medicare. what did we learn from this, mark? >> when they change seats and one party wins and the other part of this is, they get attention. the especially get attention when it rolls out a single issue that captures the american people's attention. republicans are on the defensive, but democrats are on the offensive. let it be noted that kathy hochul was a far better candidate than gencorp when, but that the ways that medicare --

then jane corwin, but medicare helps democrats and republicans. >> colby? >> she is in the middle of this ocean and all of a sudden this 50-pound weight called medicare since her to the bottom of the ocean. >> evan, you predicted that this would be demagogued. >> demagoguing works. to be apocalyptic about this, if the democratic system cannot figure out what to do about this problem, it is a big trouble oil country. >> charles, what is the lesson from this? >> evan's wisdom, demagoguery works. republicans are linked to this proposal, there is no escaping it. all house republicans supported it, all but five in the senate. you cannot run away you have to

know how to defend it, and you do it or you are dead. >> senate democrats enforce a symbolic roll-call vote of the medicare plan that passed the house. it failed in the senate. when paul ryan and bill clinton bump into each other at the reagan building, listen to what the former president said. >> i said, i am glad we won this race, but democrats, don't use it as an excuse to do nothing. >> will democrats use it as an excuse to do nothing? >> i love this coming from bill clinton. bill clinton in 1995 -- let's roll the tape -- newt gingrich actually succeeded in reducing medicare. what this bill clinton do? he demagogued medicare.

look at the ads and they ran, it was all about throwing granny in the snout. it worked. what did he do? nothing. he did not lift a finger -- >> obama has clearly made the same decision that clinton did in 1995. he did not speak about entitlements on the budget, which, incidentally, went to a vote in the senate and was defeated 97-0 this week. he is completely running on the following that -- americans are against it and get in the abstract, but if you touch anything in entitlements, you will lose. between now and election day, democrats will do absolutely nothing of entitlements except demagogue it. >> mark? >> let me dissent from my two colleagues. first of all, this is a republican fiasco this is not

scripture, paul ryan's -- it is a political solution offered, terribly, terribly un. not only is that slot, but it will provide 1/3 of the cost and 20 years for people on medicare, but the politics of it are terrible. they all voted for it, and now newt gingrich, who did have the nerve to say it was a flawed proposal, was beaten on the head and shoulders and has become a litmus test and a loyalty oath to every republican presidential candidate who has to walk the plank to support it, and each of them is except mitt romney. they will be tagged with it, and they are stuck with a flawed plan and they never should have not brought it to a vote. >> colby? >> demagoguery is not the special province of any one party. remember the health care bill?

that was demagogued by republicans against democrats. the differences, democrats ran from it, they did not try to stand up and defend it. republicans better come up with arguments to defend it. >> the president is in ireland, great visuals. he was with the cream, white tie, great visuals. he is that the -- the queen, white tie, great visuals. he is at the normandy coast, great visuals. >> at the same time, joplin, missouri is essentially wipe off the map, and the president essentially says, "see you on a sunday." if bush had said that, that would have been had one all across america. >> i don't think so. the president had a well-laid- out schedule. >> he did not have to do ireland. ireland happened right after joplin. ireland was a trip that was

optional. the g8 is not, i understand, but the g8 was much later. >> he was on his way to ireland, if i'm not mistaken, when joplin happened. i want to say something as an irish-american. i am proud to share my heritage with the president. i have not seen him smile as openly and as naturally as he did in ireland in two years. >> all kinds of action on the republican presidential front. take am going to c different approach. i'm going to tell you the truth. the truth is, washington, d.c. is broken. >> that is a former minnesota gov. tim pawlenty, who declared his presidency -- declare his candidacy for the republican presidential nomination. washington is broken. how does he propose to fix it? >> i think he is a down-the-line acceptable to all cam's republican, and he has a pretty good chance of winning the nomination. he could be the last man

standing. others have a lot of baggage. at least he has small luggage year when he starts his campaign with the oldest cliche in the book. i wish he had used another, ore felicitous phrase. >> michele bachmann is talking about going to iowa next week. >> gov. palin is reemerging with the national tour. tim pawlenty is it the least acceptable to the greatest number. that is -- least unacceptable to the greatest number. that is what he has going for him now. he has fewer flaws and other presumed front-runners -- than the other presumed front- runners. you have to list jon huntsman and mitt romney in reverse order. >> mix santorum -- rick santorum pledged his campaign were his grandfather once worked.

santorum, 2% among rank-and-file republicans, pawlenty, a 6%, palin 15, ron paul, 10%. what do those numbers tell you, evan? >> absolutely nothing. at this stage they are just about name recognition, completely meaningless numbers . >> that put a damper on your point. >> that is all right. palin is in a feature film, "the undefeated," premiering in iowa. what a coincidence. she is beginning a bus tour, going to ennew hampshire. nice way to see the country, by bus. >> she is a star in the republican party. whether she is going to run is another question. the republican party is rich in

candidates. i don't know why people are so down. you have to contain. no one has talked about herman cain. -- you have herman cain. no one has talked about herman cain. how about a herman cain-ron paul ticket? >> i will not take the bait. [laughter] >> herman cain has been honest enough about the paul ryan plan. he endorsed it. sarah palin is a threat to michele bachmann. bachmannes go, the candidacy dies. the advantage right now is to mitt romney. met ronnie is the front runner. every day that goes by when you do not talk about the front runner or criticizing him is a good day for any front runner. >> the question is huntsman.

mitch daniels was going to be great, except he does not want to do it and i guess -- except his wife did not want to do and he is gone. hudson has -- huntsman has charisma, which pawlenty and blacks. he is a moderate, liked by people like me, which is a problem. >> absolutely a problem. >> that is what will cost him, that he is moderate? >> "moderate." that is like democrats saying that if you support the ryan plan, we will kill you because you are moderate. there are parties of the right -- republicans are the party of the fight, democrats of the left. romney has a bigger issue, romney care. his front runner-ship will hinge on how he handles those attacks and a debate. if he shows he can answer it, he

will win the nomination but if he cannot, it will be extremely difficult. >> mthe former speaker of the house, no one is talking about him. >> his campaign is over. he had the worst launch since the hindenburg. >> but he is still flying br. >> what about the tiffany's thing? >> it is like the john edwards hair cut. it says something about what people think, people's taste, character. this guy is supposed to be so for go and yet he is spending this money -- >> you mean to john edwards was about to be indicted, that one? >> yes. >> it is not about tiffany's.

had he said that the plan was flat and he at an alternative, that would have been one thing. he said it is right wing social engineering pro. >> spoke truth to power. >> exactly, and that is why he will not win the nomination. the plan was, incidentally, proposed by the clinton commission in 1999. if you cannot support that, you say it, but if you call it social engineering, you have given the democrats a talking point. even clinton said to ryan that something has to be done. >> june 13, new hampshire, first major debate. newt gingrich -- watch him, listen to him. he will make news. >> let's talk the politics of the pre-1967 borders. >> when obama in white's daylight between us and israel, in most injured. -- when obama opens up daylight

between us and israel, it invites danger. >> that is tim pawlenty speaking in florida about obama's recent statement that the borders of israel and palestine should be based on 1967 lines with agreed swaps. earlier we heard plenty promised -- we heard pawlenty promised to tell the truth. is he telling the truth about this, colby? >> i listened to bibi netanyahu speak before the congress, which was well received -- >> i'll say. >> treated like a rock star there. i had a sense of sadness, that you can see what is inevitable. the peace talks will go nowhere , and that means that the confrontation is almost inevitable. what i cannot understand, and

maybe somebody can explain it to me -- the statement that said that the united states believe that parties can agree on an outcome that has an independent, viable state based on a 1967 lines, and the israeli goal of a jewish state that recognizes subsequent to the elements -- subsequent developments. that statement was issued by hillary clinton and netanyahu last fall. when the president of united states essentially says the same thing, there is a big uproar. >> there is never -- they are never going to solve this problem. netanyahu is never going to do it. he is just incapable of doing it. and the palestinians are incapable of doing it.

seven times they get is for an answer and they never do. >> mark? >> according to a poll in israel, a 57% of is rea -- israelis believe netanyahu would have -- should have supported obama's approach. a fairly -- apparently israelis are more supportive of that position that our members of congress, which was essentially who loves you more, jumping jacks in the house and senate. i thought republicans would nominate netanyahu to go directly to iowa if they could overcome the birth certificate problem. >> what about colby -- >> the jumping jacks in the house and senate responding to

the prime minister of a beleaguered democracy attacked relentlessly and receiving support and pressure from the united -- support from the united states -- the reason why this speech got a remarkable response and the congress is that it was churchillian in the sense that we believe in the same things, the only democracy in the region. of all the arabs in that part of the will come only when million who out civil rights and they are all israeli arabs. he said, "i accept a palestinian state, as well as all of israel." mr. abbas, say these five words -- "i want a jewish state." he will not. there is no leader of the palestinians who will say or resig "-- who will say or ever

say "i accept the jewish state." >> let's talk about paul ryan again. >> did you just cost republicans control of the house? >> i think we were elected in this last election to take a stand on fixing this countries fiscal problems. >> what about your political career? >> i don't care about that. >> rising star, potential presidential candidate. >> this is not the time to be concerned about political careers. >> is he getting a raw deal here? >> turnabout, because you go back and look at some of the things that paul ryan said about the health plan. he got to the point of demagoguery, too. >> is he throwing granny under

the bus? >> no, he is not. you of commercials of someone going over the hill -- >> somebody had to go first. we can argue the policy -- >> no, i gave him credit for stepping up. >> mark? >> it is a political disaster. let's be blunt about it -- the democrats ran on health care in 2008. they won a big election on it. they have been on the defensive on that issue ever since. they passed it without any republican votes. the republicans passed this without any democratic votes. you do not pass large initiatives on single-party votes and not expect to have a reaction. >> however maladroit it was,

somebody had to start, and both parties were absolutely paralyzed on this, on an issue that is paramount to our national survival. if we don't do it, we will have a lower standard of living and a deep depression in this country bu. >> the fact that it did cause a political disaster in buffalo politicals disaster in buffalo is to the credit of republicans, a more willing to go off a cliff politically. corwin never defended it, try to run away, she cannot explain it. alas republicans successfully explained and defended, -- unless republicans successfully

explained and defended, it will be a disaster. >> historically, when democrats organize a firing squad, they go in a circle. republicans are doing the same thing. >> evan, you want to give up all my aunt and metal for starting the debate -- give paul ryan a medal for starting the debate. even clinton says we have to do something. >> everyone is faced with this reality, that if we do not take control of our debt situation, which is driven by entitlements, we will have a lower standard of living and in this country, for sure. we will have high inflation, and people will live less well. is even more than at. liberal democracies are not good at cutting back, about dealing with less. we have never really been challenged this way. putin is dealing with this now, and is a -- britain is dealing

with this now, and it is kind of the canary in the coal mine. charles, maybe it is apocalyptic to say we will decrease, but we could have social unrest -- we will be greece, but we could have a social unrest. >> these are not affected by plan.amn that is the demagoguery. >> it was voters in the 30's who have parents in their 50s, expecting them to be on medicare. all of a sudden, they are faced with the prospect that they will have to pick up the tab, not just to be good children and tended to their interests, but to provide the income that will be needed. nobody denies that medicare is unsustainable in its present finance level. nobody can argue that.

the question is, who you want making the cuts? do you want the people who opposed to this program from the very outset, who oppose government, who are disciples of ayn rand, or do you want people who are committed to this program and its safety? >> that is a ridiculous argument -- >> if you are under 55 -- >> can i respond to that? if a republican proposes a cut in entitlements, in an of itself is a plan one ought to reject because of republican history. that is like saying that democrats on civil rights in the 1960's should be ignored and announce because of the democratic is of having 100 years of -- racism the democratic a saugh -- having 100 years of racism.

if you are in your 30's, you are worried about the help of your parents in the 50's, what you ought to be worried about is a president who will do nothing about it and make it and solve it in five or 10 years. -- make it insolvent in five or 10 years. >> they had been told that this would be yanked out from under them. >> which is a lie. ippy-inton said don't t toe arawn this issue. the administration's response said that we have taken steps with health care reform. they just have to go to the next step and come up with specific changes in the entitlement programs. >> it is not an insoluble problem. in this country, 17% of our

country goes to it. in other countries, it is like 10% or 11%. in singapore is like 4%. we are unbelievably efficient. >> i would suggest that a liberal democrat who opposes cuts in defense spending is viewed suspiciously at skeptically. the republicans want last fall -- on a -- won last fall on that democrats would cut medicare and it would defend it. >> last word, see you next week. for a transcript of this broadcast, log on to insidewashington.tv. captioned by the national captioning institute --www.ncicap.org--