Bill O’Reilly and Bob Beckel debated the economy and President Obama’s popularity. O’Reilly said in his Talking Points Memo that a popular president, a bad economy and Americans paying more in taxes just simply doesn’t add up.

Beckel said that the economy, compared to when President Obama first took office, is doing much better … in people’s minds. O’Reilly interjected, “Is it doing much better or is it in people’s minds?”

When it comes to American politics, Beckel argued perception and how people feel trumps reality.

O’Reilly chimed, “I can’t argue that with a 60 percent approval, they think [Obama’s] doing a good job, but it’s crazy land.”

The Factor host couldn’t fathom how people can approve of President Obama, “even though the economy is bad after all this massive spending.”

“You say it’s bad, it is better than it was,” Beckel said. “You’re just wrong about this O’Reilly.”

Watch their full exchange below: