good afternoon. i'm ari melber. it's wednesday, december 11th. and the holiday spirit has gripped the nation's capital. >> this isn't the greatest agreement of all-time. >> this isn't the plan i would have written on my own. >> a do no harm deal. >> do you ever think a piece of legislation you were responsible for would be called not conservative enough? >> it's a strange new normal, isn't it? >> the white house called it a good first step. >> if we can get a step in the right direction. >> do recognize the value of coming to a decision. >> we're not going to get everything we want. >> they spoke to each other. what a revolutionary thing. >> have consequences. >> it is the best bad deal that conservatives can get. >> plenty of fire from the right. >> he has led to make a compromise that sells out what actually needs to be done. >> you just called him a sellout. >> we've already seen

conservative groups bashing this deal. >> you mean the groups that opposed it before they saw it? >> i don't know that he has seen the contents of it. >> this is ridiculous. >> ask not what your country can do for you. ask what you can you can stop your country from doing. here's one four-letter word you rarely hear associated with congress these days. deal. last night, house and senate negotiators unveiled an $85 billion bipartisan plan to fund the government. and this one would prevent shutdowns next year, slated to run through the fall of 2015. the deal raises military and domestic spending to just over $1 trillion for 2014, rolls back $63 billion in those sequester cuts and also finds $23 billion in savings with cuts to medicare providers, pensions for public employees that are hired next year, and a few other tweaks. those changes do help cut the long-term deficit. so everyone is thrilled.

>> we know that this budget agreement doesn't come close to achieving what we want to achieve on our ultimate fiscal goals. but, again, if we can get a step in the right direction, we're going to take that step. >> we would have preferred something quite different. but we do recognize the value of coming to a decision so that we can go forward with some clarity. >> okay. everyone's luke warm at best. but for a congress that is this divided, it's a luke warm cup of holiday egg nog that is at least half full. remember, this time last year, house republicans were hitching up their wagons, ready to take us all over that famous fiscal cliff. as for the ringing in of this year, speaker boehner has a brand-new plan. >> obama care continues to wreak havoc on american families, small businesses and our economy. i think when we get to january 1st, it will be clear more americans will have lost their health insurance than will sign up under the new obama care policies. >> you can't make it up.

that is right. with the budget done, republicans can get back to their favorite past time attacking the affordable care act. and as you can imagine, today's latest grilling of hhs secretary, kathleen sebelius, was a chorus of holiday harmony. >> delays. it seems like every holiday brings another delay. so what should we expect for christmas/& new year. >> i'm going to try to be nice and polite and kind. >> all right, we got it. we're going to agree to disagree. it's like talking to the republic of korea or something. >> that was him trying to be nice. all right. we are going to get to a very strong panel right here in new york. we have tamara drought, vice president of dmos and political strategist angela rye, and dana mill bank, political columnist for "washington post." tamara, i want to start with you. everyone looks at this deal and just about everyone says it's not good enough. no matter where you stand.

having said that, is it a type of progress, particularly in getting rid of some of those damaging sequester spending cuts next year? >> yeah, sort of meets the definition of compromise, right? like, both of them -- everybody on each side is a little bit upset. yes, it does. the great thing is, it restores some of the deep spending cuts. but i think one of the things we forget to do is step back in the midst of these really pitched budget battles. the reality is, though, ari, we are still at a real low in terms of how much as a nation we spend on discretionary spending. and that's on basically meeting some fundamental, national and basic human needs. things like child care, food stamps, college pell grants. you know, we restored some of the deep cuts, but the reality is, we need to be doing more as a nation to help people really get ahead in this economy and meet their basic needs. >> i'm glad you hit on that. i know dmos looks at long-term domestic spending, some of which

as you know, when you start an education is good for the long-term deficit, actually, if you take a more preventive long-term approach. angela, i want to bring you into that, in the context of that deficit reduction. listen to what the "new york times" says. basically domestic programs here would farewell because of the 2% health cut, kept in place. and that alleviates cuts to programs like health research, education and head start. angela, what do you think of that piece of this? >> i think that we still have a massive problem here. and that is the fact that they're just now starting to talk. and as you said in your intro, this is major in and everybody is happy about it. that is not indeed the case. the fact that not only are there cuts to medicare which caused a major problem for those folks that rely on this type of health insurance and they're generally more low-income. people that ariing going to suffer from this, as well as the fact that unemployment insurance has not been dealt with. unemployment, or folks who suffered from losing their jobs, are not just democrats.

they are also republican. they are also independents. that is a problem for our country in general. not just one party. it cannot just be about a big tent party. it's got to be about a big tent country. we've got to look out for everyone. >> the word compromise itself can have so many meanings. what you're saying, angela, really goes to the idea that if we're talking about compromise between deficit hawks and, what, military contractors, fine. that's two polls. to your point, there's a lot of people, regardless of party or what kind of political power they have, who need a bridge in this economy. and we do have, obviously, a deal on the table here, dana, that does not get to the unemployment long-term picture. so i want you to speak to that. but first, take a listen to some of the conservative reaction, which you could call cold. labrador says i haven't decided whether i'm a strong no or just a no. and hillscamp says it could be

hillary's second term before you see real deficit reduction. walk us through some of the initial signs from our conservative friends. >> you wonder if they're going to give congressman labrador a hell no button he can press when he votes tomorrow. as a policy matter, this thing is a nothing burger, right? so it doesn't do a whole lot on the deficit, it doesn't do anything in terms of tax reform. doesn't do anything to entitlements. doesn't really fully replace the sequester. doesn't deal with unemployment. that's why nobody is happy. but you know what it does do, they agreed on something. and things are just so atrocious in this town lately that the very fact that they agree not to shut the government down for the next 21 months is an extraordinary victory. and what else is exciting here is you have, you know, the entire arsenal of the right wing, the club for growth, heritage action, all these other powerful groups. and you've got john boehner, and you've got even a lot of conservatives saying, you know what, we're going to go ahead and vote for this ryan plan anyway. and i was there listening to them come out of their cake can you say meeting this morning.

and there were labrador and a few others. but a lot of these serious conservatives saying you know what, i don't like it. i'm going to go with it. because we've got to show that we're grown-ups and we can govern. and i suspect that will last 24 hours at most. but i'm going to celebrate it while it's going on. >> yeah, and dana, i do think that's actually an important point. we can say, well, things have gotten worse, big picture, let's keep an eye on the trend lines. on the other hand, there's more than one fight here, between what you might call the more responsible or technocratic republican leaders who actually know that it costs all more money to do short-term budgets. the brinksmanship has hurt the economy and their wall street backers say that, as well. also hurts people who need food assistance. also hurts people who are unemployed with that much uncertainty in the markets for political reasons. all that seems to be shifting back. and tamara, i want your thoughts on just that piece of it, right? the idea that some of the folks, like paul ryan who we think of as a conservative idea log seems

to be standing up to the heritage action wing that says no. let's hold everything hostage forever. >> yes and no. i mean, but i don't think the conservatives really gave up too much here. in fact, they got even more deficit reduction with this baby bargain plan. so, yes, he is showing a little bit more courage. i think mainstream republicans have shown more courage since the elections. everybody is sort of realizing that there was an election. and the far right sticking with him is not always the best idea. so -- but we're still such a long way, you know, from getting back to filling the fundamental promise in this country, right? and that is that we need to walk and chew gum at the same time. we have to repair long-term fiscal issues, but not at the cost of not investing in our people today. we are going to take away the incomes of 1.3 million people by not extending the long-term unemployment insurance. >> and let me go back to angela on that. angela? >> yes. i thought you were going to

raise another question. >> no, unemployment is something you were mentioning earlier and also shaking your head at part of the idea that republicans here may have been brushed back. >> sure. i think, again, since sitting here thinking about the fact that you said he was hitting back against heritage. we don't know that. all of this hits the fan. they have held congress hostage all year long. so there are some other dynamics we don't know about. we do know for sure that unless there are some decisions made, there will be unemployed people right after christmas that aren't going to really know what to do. and the only thing that the republicans are saying is, right after this, folks, we're back to repealing obama care, as usual. that's the one thing they know how to do. boehner said he wanted to be judged by how many bills he repeals. he's going to fail tattoo. >> yeah, he's got that one bill he's not actually repealing very effects effectively. and we saw, of course, secretary

sebelius grilled again today. hhs showing an enrollment surge. i don't know what else you could call it. in the first two months a total of 365,000 people selecting plans through a state orrel from a marketplace. and at the same time, a new poll showing the president in a large hole, to be real about where the country is at. if obama care continues on this improvement, at state and from a exchanges and over half a million people in medicaid, do you think those poll numbers go back up? >> well, of course, they do. i don't think the president is -- he's lost something permanently in terms of the trust that he has. but certainly, obama care's numbers go up and so do the president's as this thing starts to improve and i guess in a cynical way that may be why the republicans were willing to deal here so they could get back on to their favorite subject. i'm told in the caucus meeting this morning they went the entire hour without talking about repealing obama care. and you can imagine how painful that must have been for the republicans in that room to be away from their favorite subject for so long. >> and you said there's no progress. you know? i'm hearing progress all

throughout the day. >> however, things are looking up -- >> exactly. very low bar. >> tamara drought, angela rye and dana milbank, thank you. we'll have more later in this broadcast with gene spurling for his take and a reaction from the right. we're going to ask republican member of the house for his thoughts on the budget deal and how he plans to vote. so stay with us. people join angie's list for all kinds of reasons. i go to angie's list to gauge whether or not the projects will be done in a timely fashion and within budget. angie's list members can tell you which provider is the best in town. you'll find reviews on everything from home repair to healthcare. now that we're expecting, i like the fact i can go onto angie's list and look for pediatricians. the service providers that i've found on angie's list

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coming up, the day's top lines. but first, we want to share with you a note on the week-long memorial in south africa for

nelson mandela. today thousands lined the streets to pay their respects to the late icon who will lie in state for three days. mandela will be laid to rest sunday in his hometown of qunu. also today, our first behind the scenes look at president waobams journey aboard air force one with the company of former president and first lady george and laura bush. and former secretary of state, hillary clinton. and at a service at the national cathedral in washington, vice president biden took the lead today in honoring mandela. >> the most impressive man or woman i've ever met in my life. president mandela taught us that trust is possible. reconciliation is possible. justice is possible. change can come. [ female announcer ] make every smile

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clearer skin is possible. from popes to pop stars, here are today's top lines. all will be revealed. >> from presidents to popes to pop stars. >> from presidents to pop stars to the pope. >> who is your pick for the person of the year? all will be revealed as "time" magazine will share their choice with us. >> we've got edward snowden at number two. >> you weren't going for the whole ed snowden thing? >> and pope francis at number one. all right. >> pope francis, denounced trickle-down economics as unfair to the poor. >> he calls unfettered capitalism a new tyranny. >> i disagree with the pope who doesn't like free market capitalism. >> ah! you're going up against the pope? >> i think free market capitalism is a great liberator. >> you're going up against the pope on how to help the poor? >> he is saying, we are about the healing mission of the church. and not about the theological

police work. >> this is just pure marxism. >> look at the beard. the guy is clearly a marxist. >> to me you sound kind of liberal. >> i don't want to keep beating a dead horse here. >> to shake the hand of cuban president raul castro. >> did i say dictator? >> i don't want to beat a dead horse. >> do you think that is smart? >> bill, i am so outraged by this. >> what should we expect for christmas and new year. >> why do i have to drive around with my kids to look for nati nativity scenes. >> another strange story yesterday. >> and be like oh, yeah, kids, look, there's baby jesus behind the festivus pole made out of beer cans. >> may have noticed a sign language interpreter there standing next to the podium. >> fake holiday. >> according to multiple organizations, the interpreter was a fake. >> fake holiday. >> one official said, quote, he was moving his hands around, but there was no meaning in what he used his hands for. >> all right. let's get right to our panel.

joining us now is krystal ball, co host of "the cycle." jonathan capehart and james saul. i want to start with a quote from the pope himself as the person of the year. he has rawritten that humanity s experienced a turning point in history. to improve people's welfare and health and education. and yet the majority of our contemporaries are living barely from day to day. inequality is increasingly evident. and he talks about the commandment thou shall not kill. he says we should take the same approach to an economy of exclusion and inequality. he wrote that such an economy kills. pretty strong language. is that kind of emphasis and leadership he has offered a part of why he was selected, do you think? >> absolutely. pope francis was named person of the year simply for bringing back christianity to fundamental christianity 101.

which is that, you know, christ came to bring good news to the poor. and i just want to say, isn't it refreshing, can't we celebrate the fact that someone who was named person of the year for their beliefs, like critiquing free market economics, rather than for introducing us to twerking? >> yeah. i mean, it's true. and krystal, i don't know if you have a pro or anti twerking position. >> you know, i'm uncomfortable going on the record on that. >> okay. we'll come back -- >> we can table that. >> when asked about in your campaign. but actually, these comments on inequality and james' point about picking someone for their beliefs and their leadership. you've written and talked a lot about this issue. how important is that? because people describe this as a religious pick. it's that, but more. >> well, and he's almost -- he's saying the thing that is so obvious. and so apparent. but because of his position and because of how plainly and directly he speaks it, it is incredibly powerful. and you know, speaking from an american perspective, as i do,

we have this sense that our capitalist markets have always been more or less the same. we have always had sort of the same brand of capitalism. when, in fact, that's not really true. you know, we used to have workers who were much more empowered, who had much more of a voice in the workplace to serve as a counter balance against the unfettered capitalism that we have now. and we also are in this cycle where the more money that corporations and that the top 1% acquires, the more power they have politically and more they are able to perpetuate their status at the top of the pack. so we've gotten into this cycle. and i think the pope speaks of a turning point. i think we all really feel that deeply, intuitively and that's why it's so powerful. >> your point about the power of whatever you want to call it, the 1% or financial elites and how it hasn't been this way is critical, right, because what is controversial is in part defined and sometimes corrupted, right, by some of those efforts. and i know you've been writing about this, jonathan.

you said it's a controversial choice in certain quarters. and you wrote this week that not even the pope is off limits to the fury of the far right. the pope's words against the down side of capitalism make him sound more like a follower of the teachings of jesus christ and many of his holier than thou critics. >> there was a time here in the united states, among the people in the far right, especially for liberals, religious leaders and especially the pope, were off limits. you criticize anyone in that group, and you are -- you were -- you were denounced. and your friends had to denounce you. now the idea that you have people on the far right blasting the pope. the person who wrote that article saying that the pope is the catholic church's obama, god help us. and you have to read the piece. it's jaw-dropping stuff. that a pope who actually -- who espouses unashamedly and unabashedly the teachings of jesus christ and pulls the

church back to where he believes it's supposed to be. and he opens the church up to people like me, who, you know -- i mean, i'm not catholic. but when the pope speaks now, this pope -- pope francis speaks, i listen. because when he speaks, he actually makes it possible for -- he makes me feel welcome. when he said that -- when he told folks in the church, stop obsessing over social issues. i -- i don't judge people who are gay. i don't judge the woman who has had to have an abortion. that's not -- that's not for me to judge. i want to welcome them into the church. how could i not listen? >> and james, as you listen to jonathan explain that perspective, and as i look at this as something like the person of the year leads someone like me who is no -- by no means that familiar with catholic doctrine to read about the pope, the article was in depth about the fact that he has not only spoken about this, but cracked down, audited the vatican bank, looked for more transparency, looked to the social issues as a

balance -- as jonathan capehart is talking about. how does all of that truck with the idea among his followers that he's infallible. >> well, infallibility aside, that's a very specific element of the pope's teaching authority. he's reaching millions of people and inspiring a culture. unfortunately, that message isn't necessarily being embraced by even leaders within the catholic church. we know, you know, for example, there are a number of american catholic bishops who are in many ways questioning his leadership. and that speaks to the double standard that you all just discussed. you know, just yesterday, there was a bishop in rhode island who on the occasion of nelson mandela's funeral, started to talk about the church's social teachings on abortion. and really calling nelson mandela shameful. this is not what pope francis wants the church to be known for. and it shows how much of an

attitude adjustment that is still needed, even within the american catholic church. >> yeah, and krystal, as we think about who the person of the year should be, one of the best parts is not just the decision, but all these other names or people on the list and a lot more we can think of off the list. is there anyone else in your mind when we think about politics or on the international front that should have also or could have also been the person of the year? >> well, the number three choice, edie windsor, someone powerful, the plaintiff in the supreme court doma case. and i think of her not just in terms of what she has meant to lgbt rights in the united states, but i do think of her as an international figure. i mean, when you think about what's going on in russia and discussion happening there, gay rights are becoming the sort of signature human rights issue of our time, where it defines which nations are committed to human rights, which nations are really committed to treating all of their people as citizens and as equal. >> and jonathan, you know edie windsor. tell us about her. >> edie windsor is a spitfire.

you look at her, she is 80 something years old, 84 years old, so lively. and when her wife, thea spyer died -- they had been together for more than 40 years and you see the old pictures of them when they first met when they were young. they were a vibrant, dynamic, fun-looking couple. they had to have been a fun couple, because you meet edie windsor and she is full of life. >> firecracker. >> and if there is anybody who can wear the mantle of sort of the betsy ross of the gay rights movement, of gay liberation, it's her. and she gladly wears it. >> well, and the last time i saw, you were introducing her when she was receiving an award for her service, definitely recognized for things this year. and she had to cut her speech short. so she started throwing the papers around. and everyone was like this woman is awesome. >> amazing. >> and an important part of history. jonathan capehart, krystal ball, thank you so much. thanks to james for talking to us about what this pope means.

coming up next, back to the budget and rather mixed reaction from the right. we're going to ask a republican member of the house for his thoughts on this deal. but first, with a budget deal, presumably out of the way, what self-imposed crisis will greet us next? >> american families could see milk prices spike to $7.a gallon if congress can't pass a farm bill by the end of the year. >> oh, no! my precious white gold! no! ♪ people don't have to think about

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deal. take a listen. >> mr. speaker, most major conservative groups have statements blasting this deal. >> you mean the groups that came out and opposed it before they ever saw it? >> yes, those groups. are you worried -- >> they're using our members, and they're using the american people for their own goals. this is ridiculous. listen, if you're for more deficit reduction, you're for this agreement. >> strong stuff. joining us now to talk about the budget and the conservative response is republican congressman, jason chaffetz of utah. welcome. >> thanks for having me. appreciate it. >> you've been a leader or nsa surveillance. first, let's talk about this budget deal. we know what's in it. are you going to vote oh for it? >> right now, i'm a whip leaned yes. i'm inclined to vote for it. i want to take the next 24 hours or so to make sure there isn't something we missed along the way. but right now i am inclined to support the budget deal. it's not exactly the perfect

package. it is compromise. but i do think it's moving us in the right direction. >> okay. and as you know, and as your speaker was talking about, there's some outside conservative groups, which often put all kinds of minneso money pressure on these races who seem to be opposing this deal. heritage action calls it a step backwards. and club for growth slams it as smoke and mirrors. do you think they're just wrong on the economics here? >> they're entitled to their opinion. but i report not to them but to the people of utah. and i -- again, it's not perfect. there are things i don't like about it. but i do think it is better than doing nothing. and so i'm inclined to support it. >> and congressman, you voted against the package to reopen the government. so is it fair to interpret this as a feeling among some of the conservative folks like yourself that you've gotten enough out of this? >> no, i like to remind people 14 times in a row, i voted in favor of keeping the government open. it was the final package, which really lifted the debt ceiling by close to $500 billion without

any systemic changes that i had a problem with. but as the speakers pointed -- paul ryan pointed out, i believe the score on this will actually reduce the deficit. and that is a move in the right direction. >> yeah, and i was speaking to some democrats on the senate budget committee today, and they have said that. i think the numbers seem to bear that out from what we understand. it is new numbers. i think the piecemeal votes, people can debate that out. i do want to turn to the nsa surveillance. it's a controversial issue for a lot of people. but also increasingly nonpartisan. as you know, the "washington post" reports the agency now is using google's tracking technology to spy on many people, and there's a senate hearing that i want to play some sound from. take a listen. >> how do you connect the dots? and that's the issue with the meta data program. there is no other way that we know of to connect the dots. and so that gets us back to do we not do that at all? given that the threat is growing, i believe that is an

unacceptable risk to our country. >> that's pretty strong language, congressman. and as you know, the idea that we want to connect the dots is not in dispute. people want our government to do this work to keep us safe. the issue, as i understand it, is whether there is going to be real oversight. speak to us, if you can, about anything you would do on the patriot act provision and new reports on google. >> i'm doing something in conjunction with senator wyden. i'm a pretty conservative republican. we're doing a bicameral, bipartisan. we've got what's called the gps act which basically says you need a probably cause warrant in order to track somebody's geo location. are you going to take suspiciouslesses people and are you going to track their whereabouts? i think we have a reasonable expectation of privacy. i'm not willing to give up every liberty in the name of security. overseas is different than how we deal with it domestically. and we have got to put some limitations. not just on law enforcement. but somebody else who wants to

surreptitiously follow somebody else, and their whereabouts. there's got to be some limits to that. and i think the tech company and community will ultimately embrace this. i think it's just a fair and we're doing it in a bipartisan way. we've introduced this bill two years ago. and i will continue on with it. >> no, and you do see the votes clearly building up bipartisan and that last one had a lot of democrats on board who want some checks here. i also want to get your thoughts on the new enrollment numbers on obama care. it's a major increase from october to november. and on october 30th, you issued a statement that said the rollout of obama care has been a complete and total disaster from its earliest inception to its current implementation. i've got to ask you, congressman. if you were mad when the website wasn't working, are you happy now that it's working and the enrollments are increasing? >> we're talking about people's health care. we're not trying to play some political game here. the least of their problems is going to be the website. now, that's been disaster. it's creating chaos. but what i really think is going

to be shocking to people is how much more they're going to end up paying for this. i think that deductibles are going to be much higher. not going to be able to keep the plan, necessarily. not necessarily going to be able to tea par keep your doctor anda lot of people scratching their head, why do we do this? >> congressman, you may or may not be right about those predictions, about premiums, et cetera. what i'm asking is, on this trend line, we had complaints about the website and people were mad it was having trouble. now that it's working better, are you happy about that or not? >> look, i want the website to work. if somebody is trying to get insurance, i want them to be able to get it, but i expect that information to be encrypted, safe and secure. we're hearing 10 to 25% of the data that is then going to the insurance company is not necessarily accurate. of course we're going to be a hawkish in watching over this. of course we're supposed to do that in a bipartisan way. >> no, and congressman, i get that people want to be tougher, hawkish, and congress has a role for oversight. i think the concern among some,

sounds like you're not joining, is when people seem to be rooting for failure. the other thing i want to give you a chance to respond, to important as we head into the holidays, whether or not we get those unemployment benefits extended, not in this current proposal. if we don't include it, if it doesn't happen, what do you say to those people out there? do you agree with the rand paul view, it's most helpful to not get benefits? >> i want to make sure people cannot only get a job but a career. these unemployment benefits just continuing to extend them in perpetuity is not something i've been supportive. we need to get more involved in teaching people to fish, not just keep handing out the fish. and it is a tough economy. we're trying to do things to improve the economy. so that's really where the focus of the discussion has got to be. >> all right. i love fish too. i'm from seattle. we could have salmon sometime. congressman jason chaffetz, thanks for your time. >> love it. we'll do it. next, we'll head to the white house and hear another side of this debate. the president's chief economic adviser, gene sperling, joins us from the white house. that's next.

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folks who save hundreds of dollars by switching to geico sure are happy. and how happy are they jimmy? i'd say happier than a bodybuilder directing traffic. he does look happy. get happy. get geico. fifteen minutes could save you fifteen percent or more on car insurance. selling the plan. now that a bipartisan budget deal is done, will ambivalent lawmakers actually get behind it? already some griping to go around. >> i'm sure it's the best paul could get. but it's not anything i can support. >> he has led to make a compromise that sells out what actually needs to be done. >> it asks nothing of the wealthiest corporations, no closing of loopholes. it goes back once again to federal employees. there's a lot not to like about this bill. >> and if the deal passes, how does it influence the president's economic priorities in the new year? joining us now, the president's assistant for economic policy, gene sperling, director of the national economic council, a

busy day. thanks for joining us today. >> thanks for having us. we appreciate it. >> absolutely. want to hear your perspective on what this deal does, but specifically respond to the criticisms we just heard, including representative saying this doesn't do the comes oh particular spending we need right now. >> you know, no bipartisan compromise is ever perfect. this is not our ideal budget. but the question is, is it a step forward. and the question is, yes. it's a step forward for jobs. there's no question this will probably add 2, 300,000 jobs to our economy next year. and perhaps more. because of the certainty we provide. the sense we're not in another budget crisis or headed for another budget crisis. the other thing i would say is that had we let that sequester level stay in place, tens and tens of thousands of children on

head start would be staying at home. how many more cancer research grant from top researchers nih would be denied. you can't start to estimate how harmful this would have been. the first year of sequester, you can find a certain amount of money under the cushion. you can delay things. but i think this year it would have hurt very deeply. not just national security but in things i think are very important to investment and education and research. so i can say very clearly, it's not perfect. i understand people's concerns. but is this a positive step forward for investing in the future, for equity, for helping both poor and middle class children get a step up for jobs? absolutely. >> yeah, gene. it's funny. so much of this is obviously politics that everything sounds political. it's not political. it's a policy fact that there was going to be a great deal of cuts to schools, to low-income programs. additional cuts to public defender services, things we have been covering here. and a lot of those are mitigated and less bad next year.

but then as you know, in 2015, some of those same things that you and i seem to be agreeing are bad would kick back in. and take a listen to how paul ryan is selling that today. >> this agreement maintains 70% of the sequesterer in the next year-and-a-half. and it preserves 92% of the sequester over the life of the sequester. >> your response? >> well, you know, i think it is right that this doesn't address the sequester over the long-term. so this still does not reflect the president's ideal long-term budget. but let's look for this next year. on domestic investments, it recaptures two-thirds. that's a lot. so, you know, i never said it was perfect. it's a step forward. >> your point being -- i just want to pin you down. your point being it's good you get more domestic spending back in instead of the military cuts? >> i'm saying that over the next year, particularly. but even over the next two

years. this does -- this does put in a lot of the -- in the first year, over two-thirds of the cuts that would have happened to areas like domestic investment and education and research. and that's positive. but it does not fix the overall sequester. it is a short-term, it's a temporary solution. it's not perfect. but the question really is, is this a step forward. will this help hundreds of thousands of people's lives to do this. yes. are we done? should progressives still be fighting to try to have a more pro growth budget that does more long-term savings that's balanced between mandatories and revenues and allows for more investments in education research in the future? absolutely. our work is not done. is it a step forward? it is. and -- but we still have more to do. and we have more to do right now. because one thing we have to do is make sure that we don't let 1.3 million people lose their unemployment insurance. >> yeah, gene, that is not in

the budget as you is and i know. i would love to get you back to talk about that. and i thank you for making time on a busy day today. >> thank you for having us. >> absolutely, gene sperling. coming up, one year removed from newtown. we're going to talk to a father, one father from those victims' families about the challenges that remain. but first, a note on the economy. sue herrera has the cnbc market wrap. >> yes. and indeed, the markets had a very tough go of it today. here's how we look with stocks going into tomorrow morning's session. the dow finished down almost 130 pound points. the s&p down 21. the nasdaq down 56. we'll see what tomorrow holds. that's it from cnbc, first in business worldwide. [ male announcer ] what if a small company became big business overnight?

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welcome back. saturday will mark one year since the sandy hook mass shootings, the murder of 20 children and 6 educators led many to ask whether as a society we are doing everything possible to prevent such an attack. some have focused on changing policy, others question whether our attitudes are part of the root of the problem. many victims' family wrestled with the same questions. >> each of us, each family, is union unique in our even responses following this tragedy. and we each have our own voice and perspective. >> today we are joined by one of the family members, neil lost his 6-year-old son jesse in the shooting. thanks for joining us today. i want to start by asking how you and your family are just marking this anniversary. >> it's been a very difficult year. i think we're just trying to

remember and honor our son jesse. and it's really what i want to focus on this month. and it's been a very difficult month with the holiday, the one-year anniversary. a lot of police reports and -- that have been released. it's been very emotional. very hard. >> yeah. i hear you. it's hard to even talk about it through television cameras. i wish i was in the room with you. because no one really knows what you and your families and your community are going through. and yet as you know, a lot of people around the country want to listen, want to try to understand it. and we wanted to touch on the fact that some of the families have emphasized privacy this week. and some say, look, there's no need to focus on specific policies or gun control. at times, earlier this year, you've decided to speak out, and as many of our viewers know, you testified before the senate

judiciary committee in february about the use of military-style weapons. i want to just play a clip from that. >> those weapons were used in the battlefield of vietnam. they were used in the persian gulf. they were used in afghanistan. and iraq. the sole purpose is to -- put a lot of lead on a battlefield quickly. and that's what they could do. >> and congress, as we know, didn't act. but many individual states have acted. some have specifically cited the murder at sandy hook as one reason, among others. what do you think of what's happened over this year, and why do you think it's important to regulate some of those kind of weapons you mentioned in your testimony? >> well, i think they just have the potential of -- in the wrong hands, of doing the damages of what they did in sandy hook elementary school.

they have the ability to put out a large number of rounds in a short period of time. and less than a handful of minutes, 154 rounds were fired in an elementary school. and 26 lives were lost. and two people -- there were two people that were injured. and i just -- i don't believe -- i believe there's got to be some sort of regulations as to who has these guns and security of them, and storage of them. there's a lot of issues here and a lot of things that -- changes that could happen without infringing on anyone's second amendment. by no means do i want the to see the guns band banned or taken from the hands of the

law-abiding citizens. but the type of weapons that are on the streets now, and -- >> yeah. >> available -- >> no, i hear you. and we wanted to put aside some time to hear your perspective. and as we mentioned, 39 states have tightened some of these laws. it's tough. i think everyone is trying to figure out what we can do and how to mark the anniversary and think about policy. and thank you for spending some time with us today. >> thank you. >> appreciate it. and we will be right back. e's a, you stand behind what you say. around here you don't make excuses. you make commitments. and when you can't live up to them, you own up, and make it right. some people think the kind of accountability that thrives on so many streets in this country has gone missing in the places where it's needed most. but i know you'll still find it when you know where to look. anncr vo: introducing the schwab accountability guarantee. if you're not happy with one of our participating investment advisory services,

we'll refund your program fee from the previous quarter. while, it's no guarantee against loss and other fees and expenses may still apply, we stand by our word.

and "the ed show" starts now. good evening, americans. and welcome to "the ed show," live from new york. let's get to work. ♪ first there are some new numbers out on obama care. >> i love numbers. i love absolutes. i love facts. >> enrollment the on the federal marketplace did ramp up. ♪ can't touch this >>