Public knows Obamacare is 'abysmal failure,' Walker says

President Barack Obama's Affordable Care Act is a "wet blanket" on the U.S. economy, Gov. Scott Walker, R-Wis., told CNBC.

"They made a promise that nobody could actually deliver on, not just in terms of the website, but on the overall policy of Obamacare, which is an abysmal failure" he said in an interview Tuesday on "The Kudlow Report."

The New York Times reported Monday that, according to documents from a House panel, McKinsey & Co. consultants had briefed senior administration officials as early as March about trouble with

That news came on the heels of millions of plan cancellations by insurers, even after the president repeatedly promised, "If you like your plan, you can keep it."

(Read more: Officials were warned about Obamacare site woes)

Host Larry Kudlow suggested that people are just as angry about misinformation as they are about the law itself, and Walker agreed.

"Either they're not listening to the facts or they're not being informed," he said of the Obama administration. "In either case, it's rather frightening."

Walker, who favors repealing the law, said Obamacare will be a defining issue in the 2014 midterm elections.

Scott Walker
Chris Maddaloni | CQ Roll Call | Getty Images
Scott Walker

"No doubt about it," he said. "Political issues are most significant when you are telling people something they know to fundamentally be true. The longer this goes on, the more Democrats are going to run for the hills."

Walker warned Republicans not to revel in the troubled Obamacare launch, however.

"As much as many of us pointed to these problems earlier on, raised the red flag of concern, I think we need to empathize with many of our fellow citizens who are going to suffer because of these failures and try to find solutions, not just be the ones trying to push it over the cliff," he said.

(Read more: Obamacare site tip of the iceberg: Ex-Medtronic CEO)

"Conservatives need to show that we are indeed compassionate, but compassion doesn't always come through more government programs," Walker said. "Compassion's by empowering people to control their own lives and their own destinies."

Walker said the strongest candidate in the 2016 presidential race will be a Washington outsider—a governor with executive experience.

"It's pretty clear the Republicans are going to run against an institutional Washington insider—that being Hillary Clinton," he said.

Walker pointed to campaign misdirection in Mitt Romney's loss in 2012 and highlighted contrasts between Romney and Ronald Reagan in his new book, "Unintimidated."

"Mitt Romney's a great man, would have been a great President, but I think he got poor advice in this campaign, that it all had to be about Barack Obama," he said. "I think the misnomer of the campaign was they looked at that closing argument in that last debate where Reagan said, 'Are you better off today than you were four years ago?' and mistakenly thought that was his entire argument."

(Read more: Obama does not expect another debt-ceiling crisis)

Kudlow asked Walker if he would consider a presidential bid if he wins the next Wisconsin gubernatorial race. Walker said he doesn't know what the future holds, but for the time, he's concentrating on being governor.

"For me, there's a lot of challenges in my state that still need my attention," he said. "I'm going to spend a lot of my attention focused on the needs of my people."

—By CNBC's Krista Braun