WALLACE: White House Chief of Staff -- you mention him -- Rahm Emanuel. You called him out. He used the "R" word. He said, "retarded." He has now apologized for using that word, met with activists, said he's going to join the campaign to try to eliminate use of that word --

PALIN: Oh, you know, Rahm Emanuel, I think he had some indecent and insensitive ways of being, including his language. And as I said for a variety go reasons, giving the President poor advice and his heavy handedness. I think he should step down.

I'm not politically correct. I am not one to be a word police. But I do believe that his insensitivity, in a time when I had just promised in my GOP convention speech that those with special needs and families and those who love those with special needs would have a friend, and a advocate in the White House if John McCain and I were so blessed as to be elected.

That didn't stop me because our votes didn't carry the day, we didn't win. That didn't stop my passion, my commitment to reaching out and to helping the special needs community when they asked for it. And they did ask for it on this one. They reached out to me and said, can you kind of highlight the problem that we have the White House, with both the President and his Chief of Staff being so insensitive to the special needs community. And I said, I'm here. Send me. I will do so.

WALLACE: OK. But Rush Limbaugh weighed in this week. And he said this:
"Our politically correct society is acting like some giant insult's taken place by calling a bunch of people who are retards, retards."

PALIN: He was satirical (ph) in that -
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WALLACE: Wait a minute, let me finish.

PALIN: OK.

WALLACE: "I mean, these people, these liberal activists are quote, kooks."
Should Rush Limbaugh apologize?

PALIN: They are kooks, so I agree with Rush Limbaugh. Rush Limbaugh was using satire to bring attention to what this politically correct--

WALLACE: But he used the "R" word.

PALIN: Using satire. Name calling by anyone -- I teach this to my children, you teach it to your children and your grandchildren, too.
Name calling by anyone, it's just unnecessary. It just wastes time.
Let's speak to the issues and --

WALLACE: But you know what some people are going to say, Governor, and have said. They say, look, when it's her political adversary Rahm Emanuel, she's going to call him out, he's indecent, apologize. But when it's a political friend like Rush Limbaugh, oh it's satire.

PALIN: I didn't hear Rush Limbaugh calling a group of people whom he did not agree with "F-ing retards." And we did know that Rahm Emanuel, it's been reported, did say that. That's a big difference there.

But again, name calling, using language that is insensitive by anyone-- male, female, Republican, Democrat, it's unnecessary, it's inappropriate and let's all just grow up.