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tv   The War Room With Jennifer Granholm  Current  May 21, 2012 6:00pm-7:00pm PDT

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let america know that they are the hold out that refuses to accept-- >> eliot: i hate to say the clock runs. but people can see the website the link down at the bottom of the page. thank you for your time. stay right here. see "the war room" with jennifer granholm. thanks for watching. ♪ >> in "the war room" tonight time to take mitt romney to school. >> he's bought houses. he has bought companies. heck, he has even bought horses. >> i have a missouri foxtrotter. >> so when it comes to business, why is mitt romney putting 2 and 2 together and coming up with purple. you don't need a nobel prize to set him straight but it sure helps. paul krugman helps us to take mitt romney behind the woodshed. tonight on "the war room."
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and that's way america works. some people experience a loss in this case because of a bad decision. by the way there was someone who made a gain. the $2 billion jpmorgan loss, someone else gained. >> somebody gains. that's mitt romney showing his utter disconnect. the huge loss at jpmorgan should be another teachable moment that we need more rules. and here we have noble prize winning economist, paul krugman. it's my privilege to welcome you into "the war room." >> hi. >> doing a book tour? >> yeah.
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>> you wrote a column this morning saying jpmorgan and mitt romney were sort of poster children for why we need some additional regulation and actually you even called mitt romney clueless. is he clueless or shrewd? >> he is talking incredible nonsense and the question is does he know better than that, and i have been working under the assumption that he knows better. but scientists believe he does not understand the economy at all. >> so when he says someone won, that's just the creative destruction of the economy. isn't that just an accepted economic theory? >> not when it comes to banks. adam smith in the wealth of nations in 1776 said banks need to be regulated.
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everybody, i thought understood that apparently not mitt romney. lehman brothers lost money, but when it fails, it nearly destroyed the world economy. that's a huge lesson, and the practice of jpmorgan will be bailed out. if they lose a lot of money, they will be bailed out, which means they are gambling with taxpayer's money. >> so the idea is that it's not just the banking sector it affects the entire economy which is why every day citizens should care about whether common sense regulations are intact. >> yeah, you have a steak as a taxpayer deposits are insured. jpmorgan has insured deposits which means if they go bust you as a taxpayer end up paying part
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of the bill. we just had the worst financial crisis since the great depression, we are still suffering the effects of that. so my god for somebody to say what does it matter if jpmorgan chase it turns out is taking huge risks, and it's teachable because jpmorgan is supposed to be the bank that doesn't take big risks. >> right. >> we don't need regulation because people like me are prudent. we don't need people in washington telling us what we shouldn't do. guess what turns out that not only were they taking big risks they were making exactly the same kind of risky plays that caused the world economy to go into a terrible crisis. >> so they are playing with what was traditionally bank money, they are risking, and on the private equity side that too is
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a risky position and this weekend defending essentially private equity and the president coming back at him today. take a listen to what the president said in his press conference at the nato summit. >> right. >> my job is to take into account everybody. not just some. this is not a distraction. this is what this campaign is going to be about is what is a strategy for us to move this country forward in a way where everybody can succeed. >> cory booker was cite sizing the president's team's aedes is that fair game? >> totally. mitt romney was a one-term governor of massachusetts, why should he be president? and his answer is, i'm a businessman. i know how to run things. i know how to run his economy. so his business career is
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perfectly fair game. he made a lot of money in ways that often not good for workers, that's certainly worth talking about, and it is important to point out that what a president needs to do is not what you need to do if you are trying to make a bunch of money for private equity investors. if they imagine to layoff a lot of workers is doing a good thing, pat who provides over the same thing is being restrictive. >> this is exactly what the point is. >> right. >> that you need pick somebody who will be concerned about all and not just making profits. this is a great political argument as well. and in this book you make the argument for more intervention more government involvement in the economy in order to help
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create jobs. the democrats right now are worried that the republicans are going to sabotage the economy. and that -- there was an ap story out today about that. is it possible for political figures in a short amount of time to sabotage the economy for the purpose of winning an election? >> it is certainly possible. there is a fair bit of evidence that the debt ceiling crisis was a significant hit to the economy, that the republicans by playing chicken over the debt ceiling actually knocked us doubt that we would be some distance along further in the recovery if that hadn't happened. if a political party shows it is willing to do anything just to make trouble, sure that will be bad for the economy. realistically, the pace of job creation over next few months is going to have a big bearing on the election.
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republicans have every incentive to make mischief. >> of course, they will say it is because of their philosophy about austerity. you say if you have austerity now it will damage the economy. >> yes. and that's -- yeah which is -- i mean we have just had what amounts to a massive -- i like to say a massive unethical human experiment. and has confirmed what we should have known to begin with which is flashy spending at times like these is a terrible thing. it makes the economy much, much worse. >> you have said in this book using an as example the cuts to the public sector if you had a $300 billion infusion for those public jobs to be taken back you will have a significantly lower unemployment rate. >> right. >> and how politically feasible
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do you think a $300 billion stimulus would be? >> this is not a stimulus -- although it is -- but phrase it as we need those school teachers those firefighters, those police officers, we are starving essential public services. >> isn't that exactly what grover norquist would like to happen? starve away so the private sector could pick up where the public sector left off. >> i think that right-wing rhetoric depends on people thinking the bureaucrats doing god knows what? it is that person teaching your kids the police officer keeping you safe. then they become a lot less
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susceptible to that kind of right-wing propaganda. >> you have been very forceful about saying that the leadership inside and outside the government should articulate a strong position the right position. even though it is not necessarily politically popular, because eventually you make room for those who are in decision-making positions to come in that direction. >> you have to move the window of discussion. >> yeah. >> if i have a criticism for president obama it was for too long he accepted the republican's proposition -- i was horrified when he adopt the belt tightening phrase. the other thing to say is elections are won by results. you ask voters what they want that will -- they will say slash spending, but they don't understand or care. they look at what is actually happening to their jobs and
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their neighbors jobs. so govern by what is right, and the voters will reward you. >> don't you think republicans have a simpler argument on it? >> sure, but in 1936 powe said that people wanted franklin roosevelt to cut the budget and lower taxes. and he did that. >> we'll talk about the policies of growth versus austerity and all of that after the break. and after the break we'll go to europe where they are learning the merits of choosing austerity over growth. and of course, we'll catch up on all of the day's political us in as well. you are watching "the war room" it is only on current tv. ♪ lives and loves. >>you never know someone until you travel with them, because it takes people out of their
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we're back inside "the war room," i'm jennifer grandholm along with noble prize winning economist paul krugman. he is the author of two books, including his latest "end this depression now." love the command. over the weekend the g-8 meet, and it looks like now they will be focusing on growth policies rather than austerity. and it was see of some sort of deceit of -- >> yeah. >> do you feel indicated? or are they learning? >> yeah, they are learning. >> politically though, they are learning? >> yes, but slowly. the rhetoric has changed, which is a good start, the policies not so much, not yet anyway. >> what do they need to do as opposed to us. >> europe is very close to the
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edge now. we are just a few more bank runs of a total break down of the whole euro system. so they need to move fast. the european central bank has to open up the taps because otherwise this whole thing is going to fall apart. and i think greece will have to be dropped out. >> out of the union, or their debt has to be dealt with -- >> their debt is already -- i think they are going to have to leave the euro. >> wow. what happens to us if that happens? >> it partly depends on how the rest of europe cooks. if it contains it, which means lots of money from the central bank more money printing and if our federal reserve deals with panic here, not so bad. europe is a customer but we only sell about 2% of what we need to europe so we can handle it.
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spirals into a full-blown financial crisis, of course nobody is safe. but it has been a race between us and them to see who can do worse in this crisis and at the moment they are winning. >> it's good for us from our own little silo but we're not in a silo obviously, so it will impact us. you talked about the financial transactions tax, that might be one step that they could do, but certainly not enough. >> right and that's a longer-term issue. the problem is not raising more money or slowing down hot money. there is an unsustainable position. there is 50-plus% percent youth unemployment. >> it will force the leaders to do something more concrete than just give lip service. >> i think the fact that greece is really cracking may be doing
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europe a favor. otherwise they would just drag on with this thing doing ever-more damage. >> well, you are very clear about all of the data. in your book you document the data about what works and what doesn't work, and the frustrations you have expressed for example, in your column today about the economists that don't seem to rely upon data about what works to get an economy under control and to create jobs. >> we just had a mammoth test of opposing views of how the economy works. there is a change in view which said that cutting government spending in a depression will make the depression worse, and the alternative view which was very much the opposite. but the fact is we just had a tremendous test of that point of view. clearly the view that says that now is the time for the
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government to support employment has won on the data, and yet a lot of my colleagues i'm sorry to say are clinging to their positions. >> to their positions despite data. >> that's right. >> how can you be an economist when you are flying in the face of clear data? >> well, human beings are human, they don't like to admit mistakes. >> name names. who are those that -- >> there is a long list of people. many but not all of them come from the university of chicago, but it's really a terrible thing, and i have to say at a time like this it's one thing to be defending your intellectual, but when the human suffering is so large because we are following the wrong policies then defending your turf becomes a moral issue, and that's a bad thing to be doing.
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>> i can hear my dad's voice saying don't forget about the deficit long term? that's given. everybody hears you and says all he wants to do is increase the deficit. but growth will address the deficit in a lot of ways. >> but not enough. >> right. >> i was furiously opposed to those tax cuts. >> so the most important question is in addition to the public sector job creation what is it that a government can do to create jobs in the private sector in a good economy. >> good education, and particularly higher education affordable for those of all
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classes. government investment in infrastructure, which we are allowing to lag terribly -- >> which by the way are private sector jobs that are created -- >> of course. >> and also we get to use though infrastructure. once in a while it becomes necessary to rescue an industry which is having a crisis as has hand with the auto industry. so there is a bunch of things but basically have the view that we rely on the private sector to make most decisions, but there are times when we can do only what is needed and at those times the government should act. >> despite the depressing title of your book it is encouraging that will are solutions and examples you can point to. really appreciate you coming into "the war room." >> thanks so much for having me
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on. >> you bet. you bet. that's paul krugman, nobel prize winner. and up next the anatomy of a political gasp courtesy of cory booker. everything can cost upwards of...[ whistles ] i did not want to think about that. relax, relax, relax. look at me, look at me. three words, dad -- e-trade financial consultants. so i can just go talk to 'em? just walk right in and talk to 'em. dude those guys are pros. they'll hook you up with a solid plan. they'll -- wa-- wa-- wait a minute. bobby? bobby! what are you doing, man? i'm speed dating! [ male announcer ] get investing advice for your family at e-trade.
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booker said the attacks on private equity are making my nauseous. >> i live in a state, if you look at the totality of bain capital's record they have done a lot to support businesses to grow businesses. >> those comments must have made the obama campaign want to throw up a little. two hours later, booker posted this on his youtube page. >> in fact i believe that mitt romney in many ways is not being completely honest with his role and his record or even while a business person and is shaping it to serve his political interests, and not necessarily all -- and including all of the facts of his time there. >> well the obama campaign said it had nothing to do with booker's attempt at backtracking. but another piece of information came to light today. a financial industry has
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tributed $565,000 to booker's campaign, including from bain capital. now we'll turn to "san francisco chronicle" senior political reporter carla marinucci, and susan kennedy, who knows all about putting out political fires from her time as chief of staff to former california gov northern arnold schwarzenegger. so welcome back to you both inside "the war room." karla let me start with you. it didn't take very long for the romney war room to put out their own response to include cory booker's gaffe in their own video. take a listen to this for one moment, and i'll get your reaction. >> have you had enough of president obama's attacks on free enterprise? his own key supporters have. democrat major cory booker from new jersey. >> i'm not about to sit her and indict private equity.
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>> the romney campaign are drinking the happy juice today. as you mentioned she was a hero -- but call out the hook and ladder truck, this guy's career is toast as the obama surrogate. >> every single day they are talking about bain capital is a good day for the obama campaign. >> it wasn't intentional, no, but i don't think that booker realized the backlash he was going to get for saying something that is pretty damn honest. bain capital has given to a lot of democrats. private equity funds are very important to the pension funds of every union in the country, a lot of retirees and stuff. he said something that was off the campaign message, to some degree, but on the other hand every day they are talking about
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bane is not a bad day for obama. >> but it undercuts the obama campaign -- >> i don't think it does that at all. i don't think it lessens or dulls the message of the obama campaign -- >> but that's what he tried to do in the video -- >> he walked it back because there was a reaction. >> but the obama campaign is not going to have to change their message -- >> i think there is a lot of room to take that bain theme and run with it. we saw it here in california with the meg [ inaudible ] campaign. and it didn't work here -- >> and it won't work anywhere else. >> surrogates aside, a few weeks from now we'll be on to some other nightmare. >> romney could take booker and
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put him on every tv in america, and it would not dull the message. >> they put out a six-minute video saying this is what happened. but that message is a killer message. but let me get to a "war room" kind of issue, which is about surrogates. you have had to reign in counter-productive surrogates before, what do you do in that instance? >> first of all you don't make a big deal out of it unless you want to take the story longer. but the -- the thing -- the best thing to do is to try to make light off of it and pivot off of it. >> in fact, didn't the president handle it well today by saying it is not a distraction. it is the issue. >> yeah, he right to an argument in a very very effective way.
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the fact is he handled it well. i think this whole thing underscores a whole issue in this campaign. these candidates are doing very limited events so we're left with the surrogates and the checkbook events to cover. and that is not good for anybody. >> don't some of romney's surrogates have their own bain issues? >> absolutely right. he is coming here to california and who is his co-chair here meg whitman? she is about to lay down 30,000 people at hewlett-packard. the surrogates, you are right are becoming an essential part of this campaign and i don't think that's good for the discussion and it's not good for the candidates and it's certainly not good for the voters. >> hang on you guys we'll come back for another blog. and now to my point and this is on a slightly separate issue.
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if politics is art of addition it's clear that the catholic hierarchy based upon news today is not seeking to be elected. in fact you would think the hierarchy would want to add to their ranks, rather than subtract, but you would be wrong. i don't have to tell you that contraception is the most important form of women's empowerment. contraception enables individual women to control their destinies on their lives. but today the catholic bishops sued the obama administration over contraception claiming their right to freedom of region was violated. this even though the administration made a concession to the church that catholic
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employers can be an exception, but still they sued even though 98% of catholic women have used birth control at some point. even though 58% of catholics agree with president obama that employers should be required to provide health care plans that cover contraception. even though 30 million more people will get health care coverage which obviously is in line with jesus' teachings to care for the most vulnerable, but that was not good enough. so the second frustrating church move from my perch this week was the objection to the commencement speech at georgetown university. she is the head of the department of health and human services, and even though she is a practicing catholic who negotiated the contraception
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issue in favor of the church, and even though her husband and son went to georgetown still it was not good enough. now i'm not going to get into the hype hypocrisy of the church's position on this issue, i just wish more of the church was focused -- like my priest was this sunday on raising money for an orphanage in kenyan. if you are going to file suit take action over the cost of food service programs and it is sad in ohio today the university would rather cut off health care coverage for students than allow an independent ininsurer to offer contraception. really? no wonder parishes are closing,
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and pews are emptying. please choose your battles. you already won this one. please start using your ample outrage to fight for the poor and powerless with at least as much zeal that you might for this position that we parishers overwhelmingly oppose. otherwise you may soon turn to those empty parishes and ask what would jesus do? only to realize that what you have done is not good enough either.
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increases your risk of stroke. ask your doctor if you can reduce your risk with pradaxa. we are in deep solidarity in our conviction that the government is not authorized to force us to violate our consciouses, by making us provide, pay for, and/or facilitate services that are contrary to our religious beliefs. that was fort wayne, south bend indiana catholic bishop explains why he is joining the lawsuit of the catholic church against the obama administration. is this hype that is good or bad for the obama administration?
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>> i think it can only be good for the obama administration. >> really? >> you impassioned commentary said it all, but when you have an issue that is so basic that when women watch their pennies that go into that collection plate to pay for this lawsuit it reminds women of an issue that is a line in the sand. >> republicans have associated themselves with the contraception issue, so voters will see a choice in terms of the quality of life quality of care, and the candidates' positions, and the democrats are in one camp and the republicans are in the other and they are going to be connected with this. >> staying with religion mitt
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romney's mormonism came up yesterday. take a listen to what david axelrod said. >> does the reelect commute tee repudiate the idea that mormonism should is not be on the table? >> absolutely. >> is that good politics? >> absolutely. they should not be the ones debating someone's religion in this campaign. >> i agree. axelrod has these teenage delinquents called super pacs and they will throw anything they want out. >> that's right. we also have teenage delinquents if you will on the democratic side, and there was a -- a very i think unfortunate tweet by
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bill maur today. why listen to mitt romney: karla do you think dtaunt is realistic. mahr is a loud mouth and a jerk and he is trying to be a comedian and provocative. >> he is a rush limbaugh bill mahr you will have that toxic stuff happens throughout the campaign. >> while we're on the topic of social issues there was a really interesting event. the naacp put out a resolution that endorsed gay marriage. will that make a difference in the african american community?
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>> i don't think so. because i think the african american community is going to solidly support republicans and democrats. i think it is incredibly important for the african american community that the naacp did this. >> i agree with you. it takes the venn ur for what has been a religious issue for many african-americans. >> american culture is changing on this issue in a very big way, in ways we never thought possible before. this is just one more example of how people -- people's views that -- their knowledge of -- their sons their daughters are just changing public opinion at every level. >> i think this is a very exciting time in america for those reasons. all right. well you guys thank you, as ever for coming inside "the war
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room." and up next just how far did the apple fall from the tree? we'll look at the failed presidential bid of george romney and what it might mean about his son's run in 2012. that story is next. it is really interesting, and you will only find it inside "the war room."
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♪ i want to ask you to go back in history a little bit. back in 1967 your father set a ground breaking standard in american politics. he released his tax returns. he released them for not one year but for 12 years, and he said one year could be a fluke
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perhaps done for show. when you release yours will you follow your father's example? >> maybe. [ laughter ] >> i don't know how many years i will release. >> well that was mitt romney evading the question of whether he would release his multiple tax returns. it was an awkward moment revealing mitt's complicated relationship with his father's political career. that is the subject of a fascinating feature in this week's new york magazine and joining me from baltimore is benjamin wallace-wells. welcome into "the war room," ben. can you hear me? >> yeah, i can. thanks for having me. >> your piece looks at the conflict with the conservatives in the republican party.
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how did they clash? >> the key area of conflict for george romney, and this is something that came to a head in the lead up to the 1968 convention, but really existed throughout the 60s, was overcivil rights and george romney was a pretty successful pro civil rights governor. at that time the republican party were beginning to undergo transformation, and were pretty aggressive about playing to southern voters. so in 1965 and 1966 george romney is writing a series of letters back and forth with barry goldwater and had been encouraged to try to resolve their differences by the fathers of the republican party. and george romney is demanding
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that the extremists give a vow, and again, and again goldwater refuses to do it. what is fascinating to me about this, is that george romney did this. he broke very assertively with the conservative wing of his party at a moment when that wing was very obvious i will ascendant. so here is a man who took a pretty big political risk in order to stand up for a cause that he believed in. theed a advocacy of civil rights in the party. >> george romney was the governor of michigan at the time of the detroit riots, and when he was running for president he took what was basically a urban city tour, and take the media
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there to highlight the inequities. what an amazing thing for a republican to do. >> it really is. almost all of his advisors were against it. the big issue at the moment was vietnam. and richard nixon was beginning to separate himself from romney in the polls. and the tactical thing for him to do would be to say in wisconsin, and go after johnson on vietnam. george romney said no and gives a speech -- after this was in the aftermath of seeing detroit go up in flames -- he said we must arouse ourselves from the slumber as a nation and listen to the voices of the ghetto. >> it's amazing. of all people for him to be
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meeting. >> yeah, absolutely. and there's a -- much of romney's work as governor had been, i think, genuinely devoted to improving the lot of the urban black pour and he won by his last run for governor of michigan more than 30% of the black vote which is pretty remarkable for a republican. and one of the things that was particularly notable about that tour is you just see his -- his sort of -- his politics kind of come up against their own limits, you know. so what he believed in very much was that a progressive belief about how society might change didn't need big government because it could be vested in churches, and charities, and, you know, professional organizations, and he is going around to newark and watts and east st. louis again and again he tells his audiences don't
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look to government to self your problems, look to the independent sector. >> in that sense there may be similarity about people who would pull themselves up that government is not relied upon, but in many other senses in terms of his sounding these themes of civil rights do you think the son is totally different ideologically from the father? can you tell? >> i think some of their basic instincts are the same but they are operating in very different times and to be a republican right now means something very different than it did, you know, 45 years ago, and i think that -- you know, george romney denounced the rugged individualism as a cult that was a cover for greed, you know? i mean this was a man who declined to take bonuses that he would get as an auto executive, because he thought it was unfair to the workers in his company.
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and so i think that there's -- there's certainly a break. i think that mitt romney's moderate republican is just a belief in himself as -- as a informed decision maker. george romney had a really progressive feeling. you know? and those that -- that feeling was not vested in government, it was vested in private groups there's still a -- you know there's still a feeling in his politics that isn't there with mitt romney. >> well, benjamin i encourage people to read it this week it's a fascinating piece, a fascinating look at the father and the son. that's benjamin wallace-wells of "new york magazine." up next a recent mitt romney ad. imagine his first day in office the door brett ehrlich is only all too happy to walk through. >> i have super exclusive secret footage of mitt romney's next
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♪ mitt romney's first campaign ad of the general election gave us a taste of what he might do on his first day in office if elected president. brett ehrlich has a glimpse of what might happen once that first day is done. shhhh, brett's talking now. >> happy monday, everyone. last week mitt romney released the first official ad of his general election campaign. it's called day one. and here it is. >> what would a romney presidency be like? day one, president romney immediately recruits the keystone pipeline. president romney issues orders to begin replacing obamacare with common sense healthcare reform. >> i'm mitt romney, and i approve this message. >> good, positive but this is the actually the first in a
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series of ads. here is any next one. >> what would a romney presidency be like. day two, it's pretty much a flip flop of day one, president romney will immediately unapprove the keystone pipeline. then the whole obamacare thing, that can stay well you know. president romney will fire after of the workforce. and then he'll reveal that president romney is a natural blond. >> i'm mitt romney, and i approve this message. >> i can't wait to see what will happen on day three. i'm done talking now. >> thanks everybody for joining us here on "the war room." on thursday night you'll have to
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