>> this week on the journal editor ral report. the granite state. with a double digit lead there, mitt romney. and blue collar, is he the best hope for the working class. the return of the presidency, mr. obama makes recess points when congress isn't in recess. what would senator obama think about that? welcome to the journal, editorial report. i'm paul gigo it:

one candidate lighter after michele bachmann's departure. the g.o.p. pac blanketed the state. and rick santorum hoping to capitalize on his iowa motor tumult and newt gingrich hoping for a comeback and mitt romney, the double digit lead in the polls there. joining the panel. this week, diary editor, jason riley, assistant editorial page editor, james freeman and dorothy rabinowitz and washington columnist, kim strassel. so, james, is rick santorum the most serious threat so far to mitt romney or not? >> he's a major threat. i think that santorum could win this thing and it hits romney's vulnerabilities. obviously we saw in iowa speaking to the values voters that santorum has the edge there and quickly pivoted to the economy and what you find is a better spending reform plan and better tax cutting plan than mr. romney and as we go to republican primaries and

caucuses, that usually does well. >> kim, what about san form's weaknesses, he's attacked for some of his senate record, the fact that he supported earmarks and isn't a libertarian on the economy in terms of government. >> i was pushed back on james' analysis. and i think you see candidate after candidate try to emerge as a coalition to the right of mr. romney and fail to do that once they're analyzed by voters. a look with mr. santorum, very good on taxes, but on earmarks and spending, many view him as part of the spending crowd in that period of time. and he's got some issues, a protectionist stance and anti-trade votes and that's going to get put through the wringer. >> and paul, he's got issues in terms of style and presentation, he's not the most nuanced and how you say things matters so much as what

you say. >> what do you mean? >> he could be a little dour. and james, the issue here is that 60% of iowa caucus voters were evangelical. he's not going to see those percentages in the primary going forward and that helped him. >> it shows you, he can play in other issues, the tuesday night speech after the iowa voting, yes, he did the political equivalent of tebowing, and thanked god and the economic issues, a strong speech and basically about the obama war on business and he's make thing-- making the case. >> stressing freedom and working class, do are think. >> he can stress all he wants to. not the most nuanced statement of the year. you can't trust from your core. and as i was walking around the apartment on the radio and every room.

it was surreal, every voice was citing from the horror lists that candidate santorum said. it's startling, the gay things, the-- >> the gay thing, what, he's against gay marriage. >> and so is barack obama. >> wait, it's, wait the discussion of bestiality, it's detailed. it's the discussion of whether you should use contraceptives and that's very detailed. this is a-- >> i heard him this week that he's not against contraception? >> there are those quotes. he says he's not against and look, all of these are after the fact and the list is terrorizingly long. >> what he was criticizing, the contraception point. he was criticizing the supreme court decision in the 1960's, and the privacy that led to row v weighed. where is he? obviously he's not going to win in this city, but for most of the country this would be a problem for barack obama going

up against that agenda. >> let me talk and get kim in here on mitt romney, that's the best-- romney has a huge lead in new new sham shire. what can the rest hope to do? dent them some? >> new hampshire is a staging ground where the device go, the goal and the only way that you stop mitt romney if you're one of his opponents, you somehow manage to coalesce a group of voters to his right. this is staging ground and they're going to try out their messages, it has to be on the economic front and you've got gingrich running a contrast campaign saying he is the growth candidate versus the timid massachusetts governor. you're going to have santorum trying to ref up his own credentials and perry, too, and staging for south carolina and florida, not going to be in new hampshire. >> let me ask you about john huntsman, made new hampshire an attempt to break through

and put his resources through, who how is he going to do? >> i think he'll do well, but considering romney's lead, he'll have to do very well. he'll have to do almost as well as santorum did against romney in iowa and he's not going to do that. what romney really has her is history on his side as well. the last candidate to win both iowa and new hampshire and not win the party nomination, ed mustski, 1972. he's got the money-- >> you want to roll this thing up already. >> there's an argument, paul, a long drawn out contest will help romley and make him battle ready, i'm not so sure and the press republican turnout. >> newt gingrich is staying in, a lot of people say he's staying in to hurt romney, he thinks he could be the last one standing. >> that's right. the assembled press and uniformly stated of course he is doing this out of spite. and that isn't really true. he's had a considerable sense

of his own success and it's been, you know, mirrored in the response to him even today, so he didn't win in iowa, he's going forward because he really believed that he can set off a spark and he will be helping the upcoming debate that are coming up and it's simply nothing to show that sheer malice is driving him. it's a convenient notion to people who have essentially, wanted him out of the race and i have to say that the idea that one should simply sacrifice yourself so as to get this uniform. but as long as the field is divided. the nonromneys are splitting the vote. romney can continue to do 25% and rack up the delegates. >> you'll probably see someone emerge. gingrich has the tax plan, most pro growth. santorum, his is good, too, beyond manufacturing. >> hold that thought.

we'll talk about that in the next block. when we come back, the candidates and the working class. rick santorum has the blue collar background and not afraid to use it. is he an about thor bet than mitt romney to take on president obama and the class war strategies? when you have diabetes... your doctor will say get smart about your weight. i tried weight loss plans... but their shakes aren't always made for people with diabetes. that's why there's new glucerna hunger smart shakes. they have carb steady, with carbs that digest slowly to help minimize blood sugar spikes. and they have 6 grams of sugars. with 15 grams of protein to help manage hunger... look who's getting smart about her weight. [ male announcer ] new glucerna hunger smart. a smart way to help manage hunger and diabetes.

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>> if we have someone, we go out to western pennsylvania and ohio and michigan and indiana and wisconsin and iowa and missouri and appeal to the voters that have been left

behind by a democratic party that wants to make them dependent instead of battling their work, we will win this election. >> and that was rick santorum after the strong finish in iowa. he's playing up his working class roots making the case that he is the republican candidate best suited to appeal to a broad swath of blue collar voters and making it a central theme of his reelection campaign. kim, what do you think of the strategy of santorum, first of all as politics? >> identity politics is not a bad thing and often works in america, you go out there and say, i'm one of you and you really make a connection with voters and that's something that i think was behind his rise in iowa and will be a big strength of his going forward. one of the problems though, when you get politically to the contrast of obama is santorum from the? are of the agenda is not just identify with a lot of the

white, working glass people, but to tailor his policies to help them with things like a zero corporate tax on manufacturing or tripling the tax deductions for children and the problem is that that's in its own sense sort of what president obama does with the tax code and the democrats and you muddy the field there and it's difficult to start making the contrasts with the president. >> paul: you also, maybe, sacrifice economic growth to the extent that you play favorites, for example, and you can run the risk of misallocating capital. and you can use that economic argument and a less efficient economy. >> it operates from the assumption that you're telling working class people that you're in the condition that you're in because other people are rich in this country and it's playing, it's playing on the democrat's battlefield. >> the explosive message from santorum and this is why i think he has great potential, he talks about how the burdens of government, regulations and taxes are hurting businesses

and causing layoffs and this is really, republicans have looked for years for someone who could make the government burden on government a kitchen table issue and tax and regulate companies that can't hire people, he seems to be that guy. even if you're not a manufacturer, you get a tax cut. >> it's a different message than mitt romney, for example, the white house is will already saying that mitt romney doesn't identify with any of you, he's a rich guy, the multiple homes and santorum, they can't make that argument against you. >> that's true, but you can cannot be the person who says, you have been oppressed, that whine is simply not going to reach out to electorate. >> didn't he put it further on business? and what about james' point, that's what i hear santorum making the case, i can lift you up, not that we can take

away from the other guys. >> you're hearing the words. some people can hear the music. the music is the grievance. the music is the same thing that-- >> well, unlike, unlike romney, he hasn't designed a tax plan to make sure that no rich person ever benefits. if you're part of the upper class and you're worried about santorum, there's stuff in that plan for you, too, i mean, he's got the end of the death tax and simple, lower raets for everyone. >> i think this is politically short sighted on the part of both romney and santorum going after the white working class vote. the republicans do well with the vote and the idea that the obama campaign is writing it off i think is also oversem phied. john mccain beat obama among white working class voters by 18 points in 2008. and you can't write off something you didn't have. now, obama will appeal to the folks and say this is what the auto bailouts are about and

what the republicans want to do take away medicare, social security, and make the case to the voters. the fact is he won last time largely without them. >> paul: kim, what do you think about the point from jason. >> look, i think this is overdone. what mr. romney understands and mr. santorum understands, the margin of victory among this particular group of voters, increasingly been forming part of the republican voting block that could win them a presidential victory. president obama got 43% of the white working class vote, yet, by 2010. 63% of those people have voted for republicans, if you have margins like that going into the presidential election, it becomes much harder for democrats to keep the white house and that's why romney and santorum are targeting this group so hard. >> and the keystone pipeline decision where it's opposed by the president's well-to-do environmental supporters, but supported by his union working class representatives, that would seem to be an example of the president siding with the

well-to-do, so-called knowledge class workers. what do you think he's going to do 0en that, kim? >> well, i think it's not just that. it is keystone, it's his epa agenda which also appeals to that group of people. it's the fact that he's been putting in enormous amount of time campaigning in states like virginia and north carolina, where this class is sort of educated voters, more prominent and democrats won in 2008 and they'd like to keep that and trying to do, build a cushion for themselves in case they don't do as well among white working class voters in ohio and pennsylvania. >> last word. when we come back, president obama makes a fight with congress, making recess appointments without the recess. is it a smart strategy. feel the power my young friend. mmm! [ male announcer ] for unsurpassed fru and veggie nutrition... v8 v-fusion. could've had a v8.

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>> congress refuses to act.

and as a result, hurts our economy and puts our people at risk. and i had an obligation as president to do what i can without them. >> eager to pick a fight with congress as part of his reelection strategy. president obama bypassed the confirmation process this week and installed richard cordray as the protection bureau and named three members to the national labor relations board and the white house is calling them recess appointment, even though the senate isn't in recess. so, kim, why are republicans so upset about this and they are? >> well, just as you said. the president has appointed these people to the very important agencies and the senate is not in recess. the issue here, they've been holding what are called pro forma sessions and a few senators meet and only briefly. now, the suspects pioneered this process to keep president bush from appointing any recess appointees, they would

hold the brief sessions. now that the republicans are doing the same to president obama, president obama has decided that he's simply not going to abide by pro forma sessions and pretend they're in recess anyway. >> and they said that the sessions are not really sessions. >> they are, but they just passed his tax holiday in december during the pro forma session. when you've got the floor of the house or senate open for business, things can happen. people can raise motion, you may have to call people back to head off a vote and it's open for business, but the point is, the president's own justice department has opined within the last few years that this is not unconstitutional, so, it's shocking. >> and speaking of the president's own justice department. is it not the case of the politicalization and one guy says many' the avenging angel. >> president obama. >> and i'm doing this for you and in the eye and in the face

of the republicans, and it's transparent that this is his effort. and this cannot really look good. the fact that this is so obvious and the fact that it is a violation of the constitution, even people on the left have made this point. >> well, not everyone, there's a debate about this and some people saying, well, look the president has the ability to do the recess appointments and it's in the constitution and the debate is over whether or not what constitutes a recess. what about the politics? >> i think on the merit, they're right on the merit and obama may well lose in court on this issue and he doesn't care, politically, he's not worried about legal-- >>, but think about that second. the president isn't concern about legal, aren't you supposed to care about the constitution if you're the president of the united states. >> we're in full campaign mode and part of obama's election strategy is running against congress, however unpopular obama is, congress is much,

much less popular and the question is, is this a good fight for republicans against the president? this pr fight that they're engaging in or are they playing into obama's hands? we saw with the payroll tax fight at the end of the december, the republican congress didn't do too well and largely, i'm not so sure this is a smart fight for them to engage in. >> dorothy, should they surrender? >> no, this is different from the payroll fight. yes, it looks piddling, but the point of view, the vision of what this means that the president has taken this on unnecessarily, but deliberately in the name of the campaign is another established snow, this is the most political president to use the offices of the government to his end. >> and the hypocrisy by harry reid here is off the charts. i mean, he pioneered this strategy to block bush, a lot of the people advisors said you should do what president

obama has done this time, bush says, no, i don't want to have that fight. i don't believe i have the constitutional authority to do it. obama now that he's done it, harry reid says, hey, great, override us in the senate. >> and it's a debate. eugene generally sensible, a-- >> a legal analyst. >> and saying, but the plain language of the dodd frank bill which created this bureaucratic monster says it-- the senate has not confirmed a director. ultimately it will be bad politics because it's more uncertainty over the economy. every decision that comes out of this building now is going to be-- face a big legal challenge and uncertainty, whether it gets enacted. >> kim, what response should the republicans make to this? and suing probably won't make much difference. what can they do actually using their powers? >> they won't sue, this'll continue to hold pro forma sessions and make this a political issue going forward and making the point that

they've held con temp for congress and if congress is or is not in session and what they'll do is highlight the policy mess that's going to come out of this and just touched on. every decision that comes out of the consumer financial protection bureau and every decision out of the nlrb, is going to be one that is potentially not legal, and the unfortunate, and the mayhem caused for the business community, already not knowing what to expect is immense. >> there's no question, when the new agencies with the appointees, issue rules, they will be challenged in court. not by congress, but by the parties who are-- who claim they'll be hurt by them and they will have standing to sue. all right, we have to take one more break. when we come back, our hits and misses of the week.

>> time now or hits and misses of the week. kim, first you. >> a state appointed panel in california became the latest to state the obvious. and a high speed rail project proposed by jerry brown from los angeles to san francisco is quote, not financially feasible and it's a 98 billion dollar boon dogle in a state that's broke. californians don't want it and it's a long-term money-- and they see it as a gift to the union and green interests. the good news the panels have advised the legislature it not issue the bonds for it. let's hope the legislature is listening. >> paul: jason? >> americans bought a record number of guns over the

holidays according to the fbi background checks. no one is quite sure why. we do know that the british press is quite alarmed about it and writing about it. a hit to americans for offending european senseabilities which i think is always a good thing. >> paul: even, well, they just-- (laughter) >> they haven't liked our guns since the revolution. >> exactly. >> and this is a hit to, excuse me, a miss to the federal regulators, especially the commodity futures trading commission who were supposed to be overseeing that firm known as mf global, it went bust on halloween and more than a billion dollars is in client funds is still missing. it's not accounted for. and this is the same crowd that tells us they can remake the entire derivatives architecture of the financial system. >> paul: there's a registry failure here, james. >> believe it or not. yes, and, i can't quite believe that that could happen. remember, if you have your own hit or miss, send it to us