the debt deal and sent it on to the president for his signature, harry reid explains how they got to this compromise. the two sides worked to come up with a bill neither party likes, just how bad is this bill for the middle class? we'll break it down for you, the ed show starts right now. >> everyone's going to have to chip in, that's only fair. >> reporter: democrats with the super committee to put tax increases on the table. big shocker, republicans disagree. >> this joint committee will look at tax reform as well. we hope to get the rates down. >> reporter: emmanuel cleever joins us on the latest. and republicans are freaking out over something the vice president says he didn't say. >> quite appalling, quite vile. >> we'll get to the bottom of it all. one week away from the recall elections in wisconsin,

and polling looks better than ever for democrats. john nichols of the nation is here. and a hollywood star caught on tape supporting public education. >> it's like saying a teacher is going to get lazy when they have tenure. a teacher wants to teach. we'll show you matt damon's stand on teachers. >> with the debt ceiling legislation passed, congress rewarded itself today with a vacation until september 7th. most lawmakers in the house were already home when the senate voted to approve the deal. president obama signed the bill into law early this afternoon. you see no one's around them, who's going to want all those pens. then he took to the rose garden to lament washington's self-inflicted wounds. >> our economy didn't need washington to come along with a manufactured crisis to make things worse. that was in our hands. it's pretty likely the uncertainty surrounding the raising of the debt ceiling has

been unsettling, and just one more impediment to the full recovery that we need, and it was something that we could have avoided entirely. >> wall street reacted negatively on the heels of this finalized deal, the dow jones industrial average dropped more than 100 points. the s&p 500 closed at a record low for the year. and moodie's announced today they will keep its aaa credit rating. the ratings outlook remains negative. a new cnn poll shows 52% of americans oppose legislation, with 54% in favor of it. 77% said politicians acted like spoiled children during the debate. only 17% say they acted like responsible adults. harry reid sounded downbeat today today. >> in the end the two sides came together, that's how our system

works. neither side got what they wanted. each side lamented some of the things we had to give up, but that's the way it is. >> republican leaders in the house were not convinced that neither side got what it wanted. this is what john boehner told cbs news yesterday. >> when you look at the final agreement that we came to in the white house, i got 98% of what i wanted. i'm pretty happy. >> congressman paul ryan who will lead the budget fight next year, said he got two thirds of the cuts he wanted. while the republicans boasted about getting the better end of the deal. democrats reacted by emphasizing a commitment to job creation. >> the number one job we have as a congress must be creating jobs for the american people. >> we don't like the deal, it's a done deal, it's time for us to completely focus on jobs. >> we have to do everything in our power to grow this economy and put america back to work. >> it's hard to understand how the government can create jobs now that the debt bill cut

spending to restrictive levels. the economic policy institute estimates that the spending cuts in the deal will cost the economy 323,000 jobs next year. while lack of a payroll tax holiday for unemployed could cost an additional 1.5 million jobs. and the time spent on the debt ceiling debate has cost taxpayers more than $18 million in lost interest payments. joining me now is dean baker, the co-director for the center for economic policy and research. without the payroll tax holiday, unemployment benefit extensions in this bill, explain how the economy is going to suffer over the long run. >> we're in a situation where the economy's been barely growing,.2% unemployment. we get to the end of this year, the end of 2011 and suddenly people are paying higher payroll taxes. we also end unemployment benefits, extended benefits that

people have been getting since the start of the downturn, that's taking a lot of money out of people's pockets. people are spending much of that money, if they are getting less, they're going to spend less, that's not what the economy needs right now. less demand in the economy is means fewer jobs. >> the president continues to talk about tax reform, he did so today, listen to this. >> i've said it before, i will say it again, we can't balance the budget on the backs of the very people who have bore the biggest brunt of this recession. we can't make it tougher for young people to go to college or ask seniors to pay more for health care or ask scientists to give up on promising medical research because we couldn't close a tax shelter for the most fortunate among us. >> he's saying that the ink is drying after signing this bill. does the fact that the president continues this message talking about tax reform indicate that they will insist on it, when these negotiations come up again? so many people saying this is

about the long term war than it was about this one battle. >> he's done a lot of insisting that he's backed down on. he should be saying we don't have a debt crisis. we have an economic crisis created by the collapse of the housing market. he said that the deficit projected for when he came into office was over a trillion, then we got the recession. no, he and his advisers know it was about 200 billion. it was not a large deficit until we got the recession. the whole story here is the recession, and he should be telling the american people that. it's not government out of control, it's the recession caused by the collapse of the housing bubble. it's that simple. >> stocks dropped sharply today. there's another jobs forecast coming out this week. in your estimation, what can the government do to push these numbers in the right direction, if their hands are tied by the

cut that is have come down on this debt ceiling bill? >> you have to keep looking for every possible venue, one of the things the fed has ammunition, and principle -- we prodded bernanke to not do anything. push him, get him to get the dollar down. germany's had great success with work sharing. if we can't create more jobs, how about dividing the jobs we have. germany's rate is lower than the start of the downturn. >> both sides used the phrase jobs killer in reference to how this conversation went. if we don't have revenues this is a jobs killer. if there are tax revenues, that's a jobs killer, who's going to come out being the proven winner on this. job growth in the near future is going to be relying on the private sector. >> it looks like the republicans are winning at the moment. they can't change the reality. most of us are old enough to remember the clinton years,

we're creating 3 million jobs a year, the taxes were not killing them. we go back a little further, those of us old enough to remember the '60s, we had a great economy, 3% unemployment growth and much higher tax rates. if you have a high tax rate, that can be a drag on the economy. we've had really good growth, really good job creation. >> dean baker, great to see you. thanks for your time tonight. i want to bring in emmanuel cleever, the chairman of the national black caucus. the national average is just above 9% for african-americans, 16% more unemployed and six stalled jobs bills in congress currently. how is either party going to create the jobs in this climate that both sides continue to talk about? >> well, first of all, i think it's important for us to understand that there is only

one particular piece of legislation that democrats and republicans agree on, that could create jobs, that's a transportation bill. everyone agrees on it, and the problem is the fury inside the beltway. it's at such a high level, it's almost impossible to sit down and discuss something like the need for a highway bill. we just laid off, unfortunately, furloughed over 4,000 employees because there's an attempt to kill unions in the aviation industry. it's difficult for us to have any kind of sustained effort to reduce the high level, the intolerably high level of unemployment, because washington has turned into a mean-spirited town, and i don't think it's going to be getting us going in the right direction.

when you talk about reducing spending, you're also talking about eliminating jobs. real human beings, real americans will lose jobs. the congressional black caucus, for example, we're going on a six city tour beginning next monday to -- and with major corporations, over 100 major corporations, we're going to guarantee over 10,000 jobs. that's a drop in the bucket. >> right. >> the government has a role. >> ironically, though, people from the house left for a month-long vacation today, taking off for airports, you bring up the fact that the faa has furloughed over 4,000 employees. they left without bringing any type of closure to the budget. since 2007 they've gotten 20 different types of pushes in terms of having a budget, but never really coming to a clear consensus on the type of money that they should have. but everybody left today anyway, taking a month off.

>> august has been the month we recess probably for the last 100 years. the reason that the leadership felt like we could go home in the house at least, because that legislation can't even get out of the committee. and if it gets -- if they bring it to the floor, you know, with something that is acceptable in the senate, then there's a call for us to come back, but right now the bill that came out of committee came to the floor, was approved in the house, with democratic opposition, went to the senate and they did the appropriate thing, they said, you mean, we have to destroy unions in order to maintain the aviation industry of the united states? and the senate said, we're not going to do it, and the president has already announced he would veto any effort to bring such legislation to his desk. >> senate minority leader mitch mcconnell has made it clear that no future president or congress

is going to be able to avoid a replay of the debate we saw with this debt ceiling crisis. here's what he had to say on cnbc. >> in the future, any president, this one or another one, when they request us to raise the debt ceiling, it will not be clean any more. >> this is just the first step. we anticipate it will take us into 2013, whoever the new president is, it's probably going to be asking us to raise the debt ceiling again. then we'll go through this process again, and see what we can continue to achieve in connection with these debt ceiling requests of presidents to get our financial house in order. >> sir, how do you react to that? is this the new blueprint for the future? >> this is so sad for the american public. it should have people cringing all across this country. we've had a debt ceiling since 1917 and we've never connected it with anything. all of a sudden, this year, we have this immaculate connection. we connect the deficit reduction to the debt ceiling.

and if we have to do this each time we raise the debt ceiling, it's going to create such chaos in this country. we're the only industrialized nation in the planet with the debt ceiling. other nations realized that if you did the politicians would engage in historyonics to the point that they would be to shut down government. i think it's unfortunate, because the next president is going to face the same thing, and then if a republican president should come to office, unfortunately, the democrats are going to say, well, you know, turnaround is fair play. that's how the tit for tat things become a part of the environment here in washington, d.c.. >> thanks for your time. the super committee we've been talking about is going to have to decide on major reforms by thanksgiving. liberals want congress to stop

acting like a bunch of turkeys. we're just one week away from the wisconsin recall elections. ed will be in madison. will you? stay tuned for those details. ts as a heart attack. the doctor leaned over and said to me, "you just beat the widow-maker." i was put on an aspirin, and it's part of my regimen now. [ male announcer ] be sure to talk to your doctor before you begin an aspirin regimen. go see your doctor now. ♪ let me make you smile ♪ let me do a few tricks ♪ some old and then some new tricks ♪ ♪ i'm very versatile ♪ so let me entertain you ♪ and we'll have a real good time ♪ [ male announcer ] with beats audio and flash, you can experience richer music and download movies straight to the new hp touchpad with webos.

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look at how this bill was written. can you say it was done openly? >> yes!

>> with transparency and accountability? >> yes. >> without backroom deals struck behind closed doors? hidden from the people? no, you can't. >> that was john boehner talking about the health care law back in 2010. now speaker boehner is saying yes to a 12-member super committee, who is going to make a backroom deal behind closed doors. boehner and senate minority leader mitch mcconnell will pick six members of the super committee. nancy pelosi and harry reid will pick the other six. only 7 members of the committee will have to agree on a deal. that means republicans only need one democrat to come ove t deliver the plan to coress by thanksgiving. congress has to vote on the recommendations by friday december 23rd.

president obama and the democrats expect the committee to recommend a tax increase in return for any cuts in entitlements. here's where the problem comes in for the democrats. take a look at what senator mcconnell said yesterday. >> the chances of any kind of tax increase passing, with the appointees john boehner and i are going to put on there are pretty low. >> there you have it. no interest in raising taxes, but he does think the super committee might lower taxes. >> it's anticipated that the joint committee will look at entitlement reform and tax reform, everybody, you talked about it, i talked about it, the president has talked about it. our corporate tax rate is way too high. this joint committee will look at tax reform as well. we hope to get the rates down for both individuals and corporations. take a lot of the preferences out of the code, flatten it out. it has the opportunity to do that, as well as the entitlement reform.

>> democrats are very worried their leaders will buckle to political hostage taking of the republicans just like they did on the debt ceiling earlier today. joining me now is president of momentum analysis. why do you believe this super committee could be so dangerous? >> well, i think it's -- i understand why people are frustrated with how this process went and how democrats in particular are frustrated with how the tea party seemed to take this process hostage. i think it would be a mistake to look at this and say republicans haven't paid any political costs and that's going to translate to something even worse down the road. remember the republicans now, all these members are going home to their districts, they're going to be listening to the voters who they expect to say thanks for not raising my boss's -- closing my boss's tax loopholes. really they're going to be saying, what were you thinking. all the polls i've seen the last week, voters show obama did a

better job than republicans. republicans have paid a far larger cost in public opinion. and they're going to feel that when they go home, and there's going to be incentive for them to not stack the committee or to look at it in a way that's not balanced, that's not a reasonable debate. >> you think republicans may come back to washington after this recess and be a touch reformed? to the point where they could capitulate on taxing the rich? >> it's not so much taxing the rich, i think it's important to remind people this isn't about raising the tax rate for everybody. it's really just closing some loopholes. i think the way this is set up, the way the committee is set up, is that it will be balanced, it will be six and six from each side. whatever they come up with is going to go to an up or down vote. it's not going to be subject to amendments and the filibuster

process we've seen, kind of add to the complexity and the political wrangling that goes on. you don't have that element there. there have been some proposals, whether it's the gang of six or boehner himself, that have gotten some republican support. it's not as if every single republican in both chambers is opposed to anything resembling revenue increase, because that's not true. and then worst case scenario, insist on having this very political attitude that voters have really rejected. clearly. there's another option. there are other options. this last debate there were a few other options in the committee -- the trigger goes off, and everybody has to suffer. there's no committee agreement, then you end up seeing more military cuts. and we already had a variety of military cuts. i don't think the republicans are going to want to see that happen.

>> margie omero. thank you. if you think democrats caved in for the debt ceiling fight, you won't believe what they may be caving in on next. and was the tea party called terrorists? the safety of onstar is now available for your car. ♪ [ recorded voice ] onstar. we're looking for city hall. i'm sending directions to your car. [ recorded voice #2 ] turn right on hill street.

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while we're on the topic of infrastructure, there's another

stalemate in congress right now involving our aviation industry, which has stalled airport construction projects all around the country. and put the jobs of tens of thousands of construction workers and others at risk. because of politics. it's another washington inflicted wound on america, and congress needs to break that impasse now. hopefully before the senate adjourns so these folks can get back to work. >> president obama is referring to the 12-day furlough of some 4,000 faa employees because congress -- wait for it -- can't agree on an extension of a short-term funding bill. the delay has put a halt to aviation projects across the country that employed almost 80,000 construction workers during the busy construction season. like the multiple times congress passed a debt ceiling extension before. congress has also passed 20 short term measures to keep the faa running since 2007. here's the politically manufactured prices.

republicans self-admittedly sneaked an anti-poison pill into this project. any non-vote on a union election would equal a no vote. steny hoyer blasted republicans today. >> they were prepared to walk away from here and leave almost 95,000 people without a job. why? because they passed a bill and said to the united states senate, either you take it our way or there will be no runway and no highway and no way. that is a perfect example of the politics not of persuasion, not of compromise of coming together, but the politics of confrontation. >> house democrats have fought the good fight for unions, harry

reid opened the door for more capitulation in the face of this issue. >> sometimes you have to step back and find out what's right for this country and not be bound by some your own personal issues. >> even president obama's transportation secretary is giving in to the job killing anti-union provision. after calling for a clean bill earlier this week. and today, during a conference call, transportation secretary ray lahood said we need the senate to pass the house bill before they go on their vacations to put 4,000 people back to work, and 70,000 construction workers. at this hour, the senate democrats and the president have not caved to the republican confrontation, and we will bring you up to date as soon as they do. the coke brothers block the vote. malan mitchell will join me. president obama met with labor leaders today and vowed to renew his focus on jobs.

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we're one week away from election day in wisconsin and the right wing is doing all it can to block the vote. astroturf americans for prosperity is sending absentee ballots to revive the democratic voters in at least two districts. the ballot instructs voters to fill out the form and return it by august 11th. the elections are on august 9th. democrats need to hold on to their two seats and win three of the six republican seats to win back the state senate. the party chair thinks they're in position to do this. mike tate told reporters that every race is imminently winnable. we have leads in three races,

and we are dead tied in three. a reminder that ed will be broadcasting from madison next week, outside the capitol building on the corner of east washington august 8th and 9th. joining me now from madison is the washington correspondent for the nation magazine john nichols. john, i want to start with you, what we're talking about from the coke brothers, it's a coke funded group using pressure tactics. weren't they responsible for scott walker's election in the first place? >> they absolutely were. they were the core contributors to the governor campaign, the koch brothers gave significantly to the campaign. they poured money into the republican governor's association, which did extensive spending in wisconsin on some of

scott walker's behalf. additionally, we know the famous crank call to governor walker when he thought one of the koch brothers was calling, and in the midst of the whole controversy, he spent 20 minutes talking to someone he thought was one of the koch brothers. clearly he's got an interest in and a connection to these fellows. >> as i was saying before in the intro here, mike tate is telling reporters every race is eminently winnable. are you that optimistic about that? >> i am that optimistic. just like what john talked about. i have the absentee ballots, it says send in your absentee ballot by august 11th. we all know august 9th is the election.

this is obviously cockamamie propaganda. yesterday our gop decided to flip-flop so to speak on unemployment benefits. extending the 13 weeks of unemployment benefits, they once said it would be okay to not have that waiver, that one week wake just to get $360 a week. the republicans shot that down. they said, no, we want that one week waiver. it passed in the senate. this is not just about unions, collective bargaining, this is about wisconsinites that will not see unemployment benefits for one week, just to save a couple dollars for our state. >> you report that under scott walker unemployment is increasing in wisconsin at twice the rate it is nationally, so explain to all of us, what are the six republican senators running on? >> well, it's a very interesting thing, they're not running on their association with scott walker. i just did the better part of a 600 mile trip around the state. i was in most of the districts,

i looked at the literature, ads, radio commercials, and you saw no mention in the republican campaigning of scott walker. what they are claiming, of course, is that they really are much more liberal than you thought, they really are in favor of public education, in favor of public services, it's a bit of a smoke and mirrors campaign attempting to fuzz the issues. the thing i thought, i went around the state, everywhere i was, people are conscious that this is a referendum on scott walker's policies and on the people who chose to align with scott walker rather than mahlon mitchell and the republican employees and teachers of the state. >> they're paying attention. mahlon, explain to us if the democrats take back the state senate. what does it mean to you and your fellow firefighters. >> it means we're going to have a stopgap, a firewall, so to speak, stops the rubber stamping of legislation that kills the premise of what wisconsin is all

about, that's middle class workers. what we have is a checks and balances so to speak, we won't have a governor that's telling us everything we need to do and shoving down our throats. we actually have some debate about it. we're going to be able to sit down and have a voice at the table or a seat at the table and be able to talk about different things happening in our state. >> as we've been saying, it's a week from today, do you see what's going to take place there? these elections as a dress rehearsal for 2012? >> absolutely. you cannot imagine the amount of money that's flowing into this state, it's literally tens of millions of dollars, television is filled with advertising, mailboxes are filled with mailings, and you're seeing a lot of intensive campaigning by these new independent groups that have been empowered by the supreme court citizens united rulings there's no question that their test marketing and testing

their strategies and style of campaigning for 2012. if progressive forces and grassroots activists beat them back, i think that's going to send a powerful message. by the same token if all these outside groups with huge amounts of money, that's going to be a terribly bad signal not just for wisconsin but the country. >> we're sending our big guns to you. john nichols, mahlon mitchell, appreciate your time tonight. democrat leaders in congress challenged republicans to focus on jobs for the first time since john boehner took the gavel. will our divided government be able to bridge their differences for the good of the american people? helps defends against occasional constipation, diarrhea, gas and bloating. with three strains of good bacteria to help balance your colon. you had me at "probiotic." [ female announcer ] phillips' colon health.

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american sociological association shows those two facts are much more common than economists previously thought. between 1973 and 2007 private sector deunionization has accounted for 20% of the rise in wage inequality among women. it explains a third of the growth of inequality among men. those numbers are comparable to the effect education disparity had on the wage inequity. the red line is the union membership rate, the blue line is the middle class share of national income. both have experienced sharp drops since the early 1970s. up next, president obama meets with members of the aflcio. with congress on a steady diet of spending cuts, can the president successfully tackle unemployment. ♪ let me make you smile

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it shouldn't take the risk of default, the risk of economic catastrophe to get folks in this town to work together and do their jobs. because there's already a quiet crisis going on in the lives of a lot of families, in a lot of communities all across the country. they're looking for work, and they have been for a while. or they're making due with fewer hours or fewer customers. we have to do everything in our power to grow this economy and put america back to work. that's what i intend to do, and i'm looking forward to working with congress to make it happen. >> now that the debt ceiling drama is over, democrats are vowing to prioritize jobs. and president obama met privately with the lead hes this morning and was expected to get an earful about the debt ceiling deal. meanwhile, democratic leaders in congress, echoed the president's call for a renewed focus on jobs.

>> today we made sure that america will pay its bills, now it's time to make sure that all americans can pay theirs. >> with this debt reduction package completed. the decks are now cleared for a single minded focus on jobs in september. >> enough talk about the debt, we have to talk about jobs. jobs, jobs, jobs, jobs, jobs. you cannot say it enough. >> yeah, where are the jobs. for more, let me bring in the mayor of lansing, michigan. it's nice to have you on tonight. we just saw and lived through how hard it was to get what used to be a simple debt ceiling hike through congress. how are they going to get anything going if they can't make something clean out of what used to be something so simple? >> with all due respect to those folks, i mean, we hear the words, we hear words, here on main street we need action. we need those jobs, and we're working like the dickens to make it happen. we're hurting out here in middle america, in places like lansing,

michigan and all over this country. our infrastructure is crumbling, roads, sewers, schools, you name it, things that people don't think about like the sewers, they need to be maintained, they're falling apart, we need help, we're doing everything we can, our tax base is shrinking, nothing's been done about the mortgage foreclosure crisis. we have thousands, millions, losing their homes, being put out in our shelters and soup kitchens are busting at the seams. then we get this debt ceiling package, it's like pouring water on a drowning man. i hope they get the jobs, will they have the resources to get the jobs. anyone knows you have to look at revenue and expenses, and they ignored the two sides, they only did one side of the coin. they focused on the spending, but did nothing about the revenue. the tax cuts for the filthy rich continue. when you give away, you do nothing to add to the revenue, what money will they have to

help stimulate the economy, how will they help us to invest in education and infrastructure. the things that are the basic in economic development. >> take a look at this, this is what steny hoyer said as he laid out the key elements of the jobs plan today. >> the american innovation, invention and manufacturing creates middle class jobs and is essential to the growth of our whole economy. we need our own effective game plan to outproduce, outinnovate, outbuild and yes, outinvest our competitors around the world. >> so hoyer mentioned manufacturing, but july's manufacturing sector had its slowest growth in two years, what do you think washington needs to do to turn that around, and take into account the fact that there's this growing disparity in the country that's

putting the middle class to the lower class? >> let me tell you something, i know something about manufacturing, lansing is one of the leading manufacturing cities. we're grateful to have general motors and a lot of other businesses investing and growing. we make things here in lansing, and we're proud of that. washington for too long has been focusing on trade agreements -- they can start with fair trade, not free trade, but fair trade agreements, and we can tax companies who choose to invest overseas, instead of rewarding them and incentivizing them to take our jobs overseas. nasa has cost us millions of jobs, they better put a halt on any future trade agreement, and focus on bringing jobs here. look at other countries like germany, who invest in vocational education. too many of them are falling by the wayside, we need new investments, new equipment. we have to stop this notion that every child needs to go to college to be successful.

there's lots of things that can be done, we need to help mom-and-pop businesses as well. some of these businesses are falling by the wayside, there's plenty of things we can do. we need gross domestic product. >> great to see you, thanks for your time tonight. the vice president says she did not compare tea party republicans to terrorists. sarah palin still thinks he did. hey, check it out. she's using the mr. clean magic eraser bath scrubber. i've heard of it, but i haven't seen one up close. what's the word around the sink?

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this has been a horrible decade for teachers. i can't imagine how demoralized you guys must feel. please, please, please know that there are millions of us behind you. you have an army of regular people standing right behind you, and our appreciation for what you do is so deeply felt. we love you. we thank you, and we will always have your back.

>> looking pretty good with that summer cut there. that was matt damon at this weekend's save our school's march on washington, d.c. thousands of teachers and supporters of public education rallied in the nation's capital to call attention to the problems facing america's public education system. damon was not the only big name appearing at this event. the daily show's jon stewart sent a taped message. he would have been there in person, but his dog ate his car. for damon, who was introduced by his mom who is a teacher was the real headliner. he drew thunderous applause for teachers and reformers who think they know more about education, than educators themselves. backstage a reporter asked damon why teachers should get tenure if actors don't? the academy award winner schooled the reporter. >> in acting, there isn't job security, right? there's an incentive to work hard and be a better actor,

because you want to have a job. why isn't it like that for teachers? >> you think job insecurity is what makes me work hard? >> it's not an incentive, you take this nba style thinking, it's a problem with that policy right now. it's intrinsically internalistic view of problems that are much more complex than that. it's like saying a teacher is going to get lazy when they have tenure. a teacher wants to teach. why else would you take a [ bleep ] salary and really long hours and do that job unless you really love to do it. >> how do you like them apples? up next, fake right wing outrage about terror in the beltway. host: could switching to geico really save you 15% or more

on car insurance? host: do people use smartphones to do dumb things? man 1: send, that is the weekend. app grapgic: yeah dawg! man 2: allow me to crack...the bubbly!

man 1: don't mind if i doozy. man 3: is a gentleman with a brostache invited over to this party? man 1: only if he's ready to rock! ♪ sfx: guitar and trumpet jam vo: geico. 15 minutes could save you 15% or more on car insurance. sean, if we were real domestic terrorists, president obama would be wanting to pal around with us, wouldn't he? he didn't have a problem palling around with bill ayers back in the day. >> that was half term governor sarah palin. we'll get to her in a minute. they've just been handed a sugarcoated satan sandwich. democrats met with joe biden yesterday about the deal. it was a two-hour closed door meeting. no video or audio recordings, just a few unnamed sources

telling politico what happened behind those closed doors. congress and mike doyle of pennsylvania reportedly told the vice president, we have negotiated with terrorists. this small group of terrorists have made it impossible to spend any money. biden responded, they have acted like terrorists. now, vice president biden denies using the word. he does not believe it's an appropriate term. that does not stop the right from being outraged over what may or may not have happened. republican presidential hopeful michele bachmann is so outraged, she's fund-raising off of it, bachman who's accused president obama of ushering socialism and running a gangster government claims the nonremarks went too far. saying, i'm offended by vice president biden's irresponsible words. and need your support to defend myself and fellow tea party members right away. it's time to bring in michelle

goldberg. welcome, michelle, good to have you on tonight. >> thank you. >> we talk about this former bush treasury secretary. paul o'neill recently said, the people who were threatening not to pass the debt ceiling are our version of al qaeda terrorists. really they're putting our whole society at risk. so were michele bachmann's fund-raising e-mails sent out for that one as well? >> if you're really sensitive terrorist analogies, it's probably a good idea not to take a stand. given the fact that the hostage taking metaphor has been used over and over again throughout this process because it's apt. nobody blames people, you use this kind of language all the time when you're talking about politics. you use metaphors of war,

battle, fight. that was public. this was a behind closed door meeting where something may or may not have been said. the right especially, there's a whole tiresome tradition of faux outrage. but the right thrives on victimization. >> republicans compared themselves to terrorists. pete sessions said the taliban could serve as a model for how republicans could become an insurgency. after those alleged remarks, more offensive than what mr. sessions said about his fellow republicans. sarah palin is bringing back her phrasing of talking about president obama palling around with terrorists. the accusation she made just tonight on fox news. is the dawn of this rhetoric coming back and in full force? >> i don't know that it ever really went away, there might have been a couple moments after

gabrielle giffords was shot where people thought they were going to tone it down. but the idea that the republican party is so unbelievably outraged by political indelicacy, given the unprecedented language that they used, to talk about not just obama, but relatively obscure aides, there's been a fairly -- there's a tradition of faux outrage on both sides. given the unprecedented campaign that's been waged, there's something really rich, but also not really unexpected that they would be kind of milking this possible off the record behind closed doors comment for all its worth. >> do you think now it's time for americans to show the outrage. let the politicians sew their mouths shut for a while? >> what's unfortunate, is so far, it seems there is outrage