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This week on the journal editorial.
For historic gains give Republicans a new clout in Washington but will it be different this time around we'll ask former.
And future Republican senator Dan Coats plus lessons from the election what Tuesday taught us about the Tea Party candidates.
And why the Republican -- did not sweep the posts and the return of dividing government now that Republicans have the house.
What will they -- event.
Welcome to The Journal Editorial Report I'm -- if you go well among the wins for Republicans on Tuesday night -- six senate pick -- including the -- in Indiana.
Being vacated by retiring Democrat Evan -- in that -- Dan -- defeated democratic congressman Brad Ellsworth returning to the seat.
He laughed in 1999.
After serving a decade in the senate.
I spoke with senator -- earlier and asked him what he thinks will be different this time.
-- last time we were running relatively balanced budgets we had a number of issues but by the same token.
This year we are looking at us an entirely different situation from up for the fiscal standpoint our government is.
Really in top shape.
We are plunging into debt and spending money that we don't have.
Clearly we need to take bold action now no more little incremental things we've got to.
Address this economic downturn in economic stagnation that we're currently in companies are not hiring who they are not buy new equipment they -- not.
Expanding their plans.
The future of America from an economic standpoint in growth absolutely has to be part of the equation here.
Along was stopping some excessive spending in Washington.
We've got to get this country back on track everything flows from that whether we support our military -- foreign policy initiatives and many many other domestic programs.
If we don't get our economy in shape and get in shape as soon or at least -- a target.
We're gonna continue to have a lot of problems -- and I'm told.
Do you have been saying to people and correct me if I'm wrong that you think the United States senate has to change the way it's been doing business.
Is that right now clearly hot and -- and Heidi Heidi change they still got that sixty vote filibuster rule which they had when you were there.
And that's a barrier to really bold action as -- -- It is a barrier I think it.
The very least we need to -- remove the the sixty vote rule for bringing -- -- the floor and actually debating it in voting on it.
The American people deserve that we are transparent -- them that we take one item at a time.
That we register our -- and register and days and be accountable the American people for what we've done.
It's been too much gathering everything at the end throwing it into one big package too much.
Combining bills some people say well I voted for because.
I know it's got some bad stuff but the good outweighed the bad.
We need one issue one time one debate one vote -- -- expedited schedule.
The -- there's just too much.
Need for moving forward -- action to address.
Are serious economic situation and a number of the other issues to not go forward on that basis on -- work to try to streamline the situation in and move things forward.
Let me ask you but the debate on the Republican side it's already to -- speaker presumptive John Boehner has said that he wants an earmark ban -- moratorium.
The majority minority leader in the senate Mitch McConnell says no he doesn't -- -- who said he -- Well listen there's a middle ground here what I want in it goes -- the first answer that I gave you.
I want a procedure a process in place where something is an added it's that discussed in committee gets voted it's brought before the floor.
People have an up or down vote out of what I don't want.
Are earmarks that are simply attached at the end or put into -- bill and we only found it find out about it later.
Every item if it's controversial ought to have the opportunity for us to say yes or no.
And so there's there's a definition of earmark that I think it needs to be stopped and is the definition of specialists.
That projects that ought to be discussed debated and voted out.
You know you were there in the 1990s when Republicans tried to cut spending and they were attacked by the Democrats for.
I'm -- school lunches from throwing grandma in the snow.
Trying to cut Medicare how do you how -- you cut spending when you -- -- republic as Republicans wanna do when you said you wanna do and avoid those kinds of those kinds of attack that ultimately.
Did slow the Republican.
Republicans back to the path back to balanced budget in the 1990s.
Well look if I'm a Democrat they ought to be looking at the results of the 2010 election.
But the people want is action real action on this spending.
The super majority of people across the country express that desire on Tuesday evening.
I'm hoping that we can get past the silly stuff you know if you get a reduce.
Funding for national public good television it doesn't mean the first thing you cut -- Sesame Street but I don't I miss some adult.
About what's needed in this country in about the seriousness of this financial plight that were in.
Now if people aren't willing to step up to that I think it's gonna become transparent to the public.
We need to make our case and say this deserves again an adult discussion and -- debated people to stand.
Show the American people where they stand if not they're gonna throw up just as they did it.
2010 or 2000 Nader 2006.
The public wants action they don't want this silliness.
All right let me ask you one more question if the president says extend.
But I'm willing he's willing to extend the tax cuts for one year and everybody but just one year do you take that deal.
No I don't like that deal the reason is it just sends it another signal to all the job creators across the country.
That they've got a year but then it's -- who knows what's coming down it's uncertainty today in the economic picture.
About the future and what kind of taxes regulations and mandates are going to be imposed on our businesses that job creators of the of the country.
All that does is perpetuate the uncertainty we need some certainty going forward as to what the policies will be.
Relative to business in America our corporate rates -- stayed double the level of our competitors overseas.
Are we get a load up with the restrictions and mandates that they -- enough.
I have no choice but to go overseas are we gonna make it business friendly.
They need some assurance that on the long term going forward we're gonna have business friendly policies that encourage staying in the United States.
Manufacturing here providing jobs here -- that's not happening under this administration all right senator -- welcome back to Washington will be watching.
When we come back lessons from the election what Tuesday taught us about Tea Party candidate and why the Republican wave did not.
Sweep the colts -- panel tackles those topics and takes a look at the most important and under reported Republicans -- In the state legislature.
While Republican gains in congress grab the headlines this week perhaps the biggest wins in two on Tuesday came in state legislatures where they GOP picked up a whopping 680.
-- Republicans now control both legislative chambers in 26 states.
Giving the party -- big advantage coming to next year's host of representatives re districting process for more I'm joined by.
Wall Street Journal columnist and deputy editor Dan -- Washington columnist -- straw so.
Editorial board member Jason Riley and wsj.com.
Columnist John fund so -- Why are these large and significant these gains in the legislature's.
Because for the next ten years we are going to be governed.
By the district lines that are going to be drawn next year by the state legislatures so this election.
It's going to pick the legislate tours who literally redraw the entire map the fact that Republicans -- so many seats.
Means they will have more control over -- process they've ever had.
About 200 house seats will be in states Republicans control all of the map it.
A Democrat only about sixties seats.
Where they -- -- map that's a big change from 201990.
And 1980 in 1990 Republicans controlled.
The mapping in states -- only five.
All right well and Jason in terms of governance this gives the Republicans in -- states -- real opportunity to be laboratories for reform and take on these problems -- pensions and public employee pay and and the rest of the things that are way down the states right now and we're talking about some big states -- Ohio.
Michigan they have pension problems and perhaps I'm cool with the redistricting though we'll build -- from.
-- -- -- -- -- There is a part of the country where this wave.
Really just crashed on the on the border and that's the West Coast and parts of the East Coast California and New York.
-- explained that.
Well I don't know maybe has some to have the waves lapping California shore all the time they wanted to and on both sides right.
Well there -- several issues going on there first of all both states are very heavily unionized state workers and certainly I know in New York City if you put your trash out be picked up Tuesday morning it didn't get picked up.
They get the -- FF.
-- It was still sitting at.
Another thing and in California which is really kind of interesting is that.
22% of the vote their -- and you exit polls was Hispanic.
And they voted two to one for Jerry Brown.
And that suggests that the Republicans continue to have a problem with Hispanic voters they're gonna have to make peace California may be gone but -- -- other states -- zone and Nevada.
Where they've got New Mexico Texas where they're gonna have to address that problem.
Also our democratic voters out.
Number Republicans in California by about two million voters and party there has sent -- Meg Whitman -- out there are are one point eight million votes fewer than Arnold Schwarzenegger gotten 2006.
So there is a sense I think in which California news.
-- on to the Republican Party and New York it's pretty much the same thing how he ever.
And you know middle class people keep moving out -- that's I -- I -- that's -- -- I think the economy when you when the economy struggles -- if the lot of these.
Workers and Hollywood.
And finance and and tactic makes so much money that they'll cares much about tax -- -- lot of the middle class does.
So that hurts the economy and move to Nevada.
-- -- Denver.
And the jobs go elsewhere.
And not those cultural -- you're talking about they just make up by much bigger proportion of states like new York and California than the rest of the country.
You know one other thing about this -- it has to be noted.
California new Yorker -- -- -- of the problems you get when you.
You managed to make parts of the industry an extension.
Of the government.
You know look out of it California one of the biggest disappointments was the fact the prop 23 to pass this was the initiative that would -- this halted this global warming business that they are doing for cup.
Love your they have their own cap and trade law on this -- -- essentially said we want him implement that until unemployment falls to five and a half percent that the people promoting that initiative were outspent by something like four -- one the vast majority that money.
Renewable energy companies the exact same guys that are are getting subsidies.
To do this work for -- -- the taxpayers were basically funding these companies to work against this initiative.
I wanted to reach its -- on -- roll back obamacare is.
When you get these exchanges together.
In the next couple of years it will also create -- public health industrial complex the group of people who want more government control over health care.
Because they're going to profit from and be the only beneficiary.
Jason what about New York State your.
-- -- from buffalo and Carl Paladino.
They Republican candidate for governor also from buffalo was a catastrophe for the -- that's one of the lessons from my from Tuesday is don't don't nominate temperatures.
And I think that's.
Up Paladino in New York you -- Ken Buck in Colorado Sharon angle in Nevada Christine O'Donnell in Delaware these -- just that candidates com.
And and that matters -- meaning contrasts what happened to them.
To -- like Marco Rubio in Florida or Ron Johnson in Wisconsin.
Quality candidates they got the job done so matters who -- -- Marco Rubio was said to be a Tea Party candidate but he was a real professional former.
Speaker of the Florida house he -- the Tea Party wave.
But he also knew how to.
But but he was a professional -- to know how to prevail who gets the blame for some of these candidates that.
I've lost again.
Well let me -- -- look it's equal but keep party was out there some of these places -- -- -- candidates in the and that that.
Just we're gonna have a difficult time winning Christine O'Donnell being the number one -- one that.
I would also argue truth is the National Republican Senatorial Committee -- a little -- -- -- and look they had a good night they didn't -- those three it to not -- -- -- I'm talking about the people only they got behind in the beginning.
Some of their candidates in in November -- out what they were Charlie -- no American -- your point they were too much a part of the establishment yet they could not bring the Tea Party on board the way that rubio was able to do some of these candidates that they got behind initially like Crist for instance down -- Florida.
Do you -- this.
Public that wanted change and difference.
As to establishment too much the regular norm and they were begging to be challenged and then when you have that challenge sometimes -- got good candidates sometimes you got -- -- so right.
OK but I think the Tea Party is also responsible for for picking some of these people lost guard still ahead Republicans.
Took back the house.
Our panel's advice to John Boehner what he should and shouldn't do.
When we come back.
The American people have spoken I think it's pretty clear that this.
The Obama Pelosi agenda is being rejected divide the American people that want.
There's less and -- like that want the president to change course and I think -- -- we will.
John Boehner this week suggesting Republicans plan to set a new direction when they take charge of the house in January but with Democrats still in control of the senate.
And having the -- -- pan that may be easier said than done.
OK so Jason.
John Boehner -- some news this week saying that he favors a ban on earmarks Mitch McConnell doesn't think so but does.
John Boehner had it right.
I think he does Paul I think that's one of the lessons of what happened on Tuesday -- a lot of the people who -- ran on reigning and spending.
And this is the way to do so and that because the earmarks amount to have that much money all things considered but it sends the message it's symbolic it's -- right now.
If they're willing sends a message they're willing to discipline themselves.
While they're also willing to cut to a government that spending -- well give us a slow things that purport to stand for and we all know that one of the benchmarks that the conventional wisdom is gonna put down.
For the Republican Party is whether they can quote unquote get along with Barack Obama and normally what that means for Republicans is selling out their principles.
And that is the last thing they can do at this point with this electorate.
They have to make their principles clear that it does mean have to be crazy about it but they're gonna have to put down their own markers so that their voters understand your defend those principle.
I tell you -- him and I heard this week is both Mitch McConnell and John danger Gaynor making an attempt to dampen expectations.
To say look we're not going to be able deliver on everything we'd like to because we don't control everything they are too.
It's very Smart because they can't they're not controlling government they don't run the senate they don't on the White House initials -- mistakes after 1990 four's.
It Newt Gingrich and others coming in and saying.
Okay now we're gonna change everything and not being able to deliver on that process so they've got to come out and be very clear with the Tea Party and other groups what they can do.
But they can deliver on an earmark ban you right and that they should because one of the lessons from this election is you have committee chairman.
Would -- thirty odd years -- will restore the king of pork and transportation.
Ike Skelton the king of -- -- the Pentagon.
John Spratt the king of pork and agriculture and budget issues all of them went down to defeat and they had brought millions of dollars of -- right there district didn't matter and and I think that Obama will be looking compromised in some areas for a couple reasons one he wants to get re elected.
And he did -- the Democrats did horribly with independence on Tuesday he needs to get those voters back.
In order to be real but not when it hello OK but on what I'm what -- they -- likely to come while Exxon which you have to look at here's the senate and who's up in 2012.
-- people in conservative leaning states you have Bill Nelson of Florida Claire McCaskill in Missouri.
Jon Tester and Montana these are folks that I think will be willing to compromise and some spending.
And and perhaps on some tax cuts this -- -- lawful Obama will not only have the the pressure to wanna get reelected.
He'll also have some pressure from the doctors -- caucus okay his -- folks like there's but there's still 41 liberals in the senate enough liberals to be able to stop anything that they want to stop and let some of these senate Democrats that Jason talked about.
Vote with Republicans.
Kind of polish their moderate image and yet still kill everything that Republicans do so what should the house do.
Do they passed bills and let a pileup on the senate desk.
Think they passed bills I think they've got -- -- what bills they can't and that's right.
Especially on court things they promised rolling back aspects of the Obama engine in particular health care.
Aspects of financial services 1099.
Which is this part of the small business report according firing him they sent us and it an and and see what.
They can pressure some.
-- there's -- -- there's an operative stimulus bill killed most of the welfare reforms that Bill Clinton signed the law in 1996.
I think those were very popular also very successful.
The Republicans can vote out there restoration of those welfare reform rules and -- of the senate to turn them down because I think that would be a great polarizing issue.
If you pile up these bills beside -- -- these things you show the Tea Party look we did what we promised in the house you elected -- you we did what we promised.
Now the the American public can say to the senate.
Look -- that would just they can look at what's happening in the senator what Barack Obama might Vito and say look you're gonna have to make further change if you wanna get that done.
Now I agree with that I mean they're gonna captives.
Create some issues towards 2012 and the only way they can do that is by challenging the Democrats on things like Obama care.
You know the a -- -- care if it's not just symbolic this is it.
Bill law with substantive problems that are hurting the economy right now.
They have to show a willingness to make an effort to try to defund the worst aspects always you can do that is responsible use of the oversight process holding hearings in the house -- what is going wrong with obamacare and also some of the problems the Obama administration's haven't politicizing places like the Justice Department.
OK John thanks so much we have to take one more break when we come back our hits and misses.
Of the mid term election.
Time now for hits and misses of the week this week the best and the worst on the mid term elections stand for Steve.
Well -- a hit with fingers crossed to John Boehner one of the big questions is where the speaker -- really gets it about the forces that put this victory over.
I was watching John Boehner -- his acceptance speech he started to cry.
-- this kind of strange but -- I let you know John Bayer's shot and a beer guy from Cincinnati the last thing he wants to do is cry in public.
I'm going to go way out on a limb and say I think John Boehner.
Does understand the forces that put them there and it will not be Republican business as usual in his house OK Jason.
Headed for two new congressman Tim Scott will be the first black Republican congressman from South Carolina.
Allen last will be the first -- Republican congress and from Florida since the 1870s.
And it's worth noting -- that both.
-- elected with backing from -- supposedly racist Tea Party movement which might be of interest to the NAACP and others who have been dumping on the two apartment okay John.
Even -- liberal incumbents -- the voters showed a conservative streak on ballot measures -- Washington State.
Where Democrats -- the top races but 65% of voters turned down and state income tax.
And sick all 5%.
And that was backed by Bill Gates and the labor unions Bill Gates senior.
And they also approved -- two thirds requirement to pass any future tax increases -- like California which.
Rid of its two thirds requirement which will not be good for that state.
That's it for this week's edition of The Journal Editorial Report thanks to my panel and especially to all of you for watching I'm -- ago.
We have -- here right here.
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