the cbo has looked at infrastructure investments. do you believe that is an effective way to boost job growth especially given the fact that we have over 40% unemployment in the construction sector? >> yes, we think it variety of government spending programs for government tax revenues reduced would spur economic activity in the next few years. >> i know the cbo has also analyzed different forms of investment to see which would be more effective. there are many folks unemployed through no fault of their own. one of the most effective ways to boost consumer demand which is a big soft spot would be to an extent support for people who are out of work through no fault of their own, is that right? >> yes, congressman. >> another issue that is looming on the horizon as of the beginning of next year, the current payroll tax holiday which is in effect for all working americans will collapse unless the congress takes action. if that were to lapse, that would mean that working people have less disposable income, that would also dampen demand i

cbo i know has looked at infrastructure investments.e way to try and boost job growth especially given the fact that we have over 14% unemployment in the construction sector? >> yes, congressman. we think a variety of government spending programs have increased or government tax revenues if reduced would spur economic activity in the next few years. >> and i know cbo has also analyzed different forms of investment to see which would be more effective. there are a lot of folks out there who are unemployed through no fault of their own who are continuing to work for work. as i looked at your analyses. one of the most effective ways to boost consumer demand which, of course, is a big soft spot would be to extend support for people who are out of work through no fault of their own; is that right? >> yes, congressman. >> thank you. and another issue that is looming on the horizon is as of the beginning of next year, the current payroll tax holiday, which is in effect for all working americans will lapse unless the congress takes action. and

cbo's projections for economic growth are weaker for 2011 and 2012 than cbo projected earlier this year correct? >> yes, that's right. we have not written formal projections but it would be weaker than in august. >> nearly all the economists are telling us the growth and continues to suffer from a significant weakness in demand and many are warning against pursuing overly aggressive measures of austerity in the short-term. i wanted to ask you, do you agree that a lack of demand is one of the key factors holding back our economic recovery? >> yes, think it is a widespread view among analysts that lack of demand for the services is the key factor holding back recovery. the further question of course is the source of that lack of divan. >> okay so how does a reduction in government spending generally affect demand on the economy and during an economic downturn? >> reduction in government spending will generally reduce the demand for goods and services either because the government is buying less itself or because it is providing lower transfers to individuals to purchase goods themselves.

and reiterating that the broadbased cbo participation be applied and not just one or two cbo's, becauseveryone has their own constituency. also, want to reiterate the opportunity here for the world cup. america's cup. it being a world-class event. this is a perfect opportunity to apply local hire. it can be held up as a standard for the world. union-scale jobs of participation by all unions across the board, for everyone. we also ask that you please, please make sure they include local businesses, whether it be contractors on the construction site or local lenders on all of the other services and the opportunities that exist for this great event. thank you. >> good afternoon, supervisors. executive director of young community developers. i do not want to spend too much time and echoing the sentiments of a lot of my colleagues. i think we're all on the same page in terms of what we want to see with the america's cup opportunity. one thing i do want to talk about is a credibility in terms of standards and expectations. -- the credibility in terms of standards and expectations. we got lots

so says the authoritative non- partisan cbo, congressional budget office, released last week in their report. over the past 30 years, the wealthiest 1% of americans had incomes that rose by, get this, 275%. the average salary for that top 1% of the wealthiest americans for one year of work was $352,000. where isas the middle, 60% of americans, aka the middle- class, saw children come increase by just 40%. the average salary for a middle- class american rose to just under $50,000 a year.

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under cbo rules, the class failure will cost the american payers $86 billion, the most recent cbo projection of savings from the class act. if class was in effect, it would have increased the deficit by the third decade. how much will the rest of obamacare cost us? what's the hidden long term costs? when will the administration tell us the truth about that? >> the chair thanks the gentleman and recognize the ranking member of the subcommittee in oversight and investigation, mrs. degette for five minutes. >> thank you, mr. chairman. i want to thank the colleagues, present and past here today, patrick kennedy, it's good to see you here today. i know we all feel that way. i hope this helps us to develop a blain -- plan to provide and pay for long term care. many individuals and families face this challenge today and tens of millions more face it in the future. the class agent was an effort to address these burdens. the program was added to the health care bill in this committee on a bipartisan voice vote designed as a voluntary insurance program to provide beneficiaries with the cash benefit to

cbo says it's neutral. looking for a way to fund it.eral advocacy groups are upset with the white house. they think the white house pulled the rug out from under them. they were supporters, like you saw in the clip, senators and advocacy groups, aarp for seniors said this is a good thing and why we want obama healthcare proposal. let me just say, the american people are not with republicans when they say repeal it. republicans again are overreaching. going crazy. american people like this stuff. >> andrea: but the administration gave us a pony unpaid for covered in manure. are you happy with that? >> juan: cbo thought they had a way to do it but they don't. >> andrea: government shouldn't get in the business. >> juan: right, leave it to insurance company so they rip you off. >> dana: getter rick in here. when the actuary says it's not workable and then they find out nine months later it's unworkable. whose fault is it? republicans who said initially it wasn't workable or who was sold a bill of goods? >> eric: again, we go to this all th

so it's a matter of coordinating the court's with with the cbo mediation. so have you a problem of lack of coordination where you have some great programs but they are not supported by the court. juvenile probation. they do need to work together that is respected and used by all the agencies. otherwise students don't believe in these. in the school district doesn't follow or adhere to the outcome. >> thank you. questions? >> i go to civic center secondary school. i was wondering what quality sources do have you for young women? >> we have the wellness center that provides a lot of youth lines and they also provide you with girl's group. i know we have mission's group. there were 4 girls for different ages of girls. they taught us about pregnancy and birth controls and a lot of stuff like that. so the wellness center is something that helps >> at the middle school level, we have safe passage centers. we have all kinds of different community groups coming in to help us with interest around stopping violence, helping kids feel better about themselves and their

wait until you see the numbers from the non-partisan cbo. they are astounding. it seems like the top 1% is taking the money from the 99 rather dramatically, and you'll see it in the numbers. what do the republicans talk about when they groan about it looks like one of the classes is winning the war. you're watching "hardball," only on msnbc. you know when you push your hair to the breaking point? pantene said, "breakage and split ends? get pantene breakage to strength." [ female announcer ] the keratin protection pro-v system helps prevent then repair split ends. zero fear of breakage, 100% more strength. pantene. >>> more numbers now from the "new york times" poll. here it is. americans tend to support the occupy wall street protest that have sprung up across the country now. nearly half of those polled, 46%, say the wall street protesters reflect the sentiment of most americans. only one in four say the same about the tea party. we'll be right back. >>> back to "hardball," the republicans like to accuse president obama of engaging in class warfare. paul ryan j

it will take a while for the cbo to produce a final report.ee it days in advance, not at the final minute before they vote. martha: how meaningfully that is the most important word here, cut $1.2 trillion in the budget by thanksgiving? >> i'm mixed emotions. i think less than 50/50 they will make meaningful cuts. i think they get the number but a hodgepodge of nicks at edges but no big changes. entitlement have to be reformed. social security, medicare medicaid and health care reform. martha: we'll see, doug, thank you. doug holtz-eakin, former head of the cbo, congress pull out all the stops to get this done. the national debt goes on and on. our debt increased by $360 billion since the beginning of august. that is $4.2 billion a day since the deal to reduce the debt was made 85 days ago. that puts us about 60 billion away from 15 trillion in red ink that would be a 100% debt-to-gdp ratio. that is not where you want to be to be healthy. martha: the super-committee is at work. they are really a last resort that was designed to circumvent a sin

the cbo charted income grow for 30 years, from 1979 to twin. the top 1% saw their incomes grow 275%. that's real terms, unbelievable increase compared to everyone else. americans in the top 81% to 99% grew their incomes 65% in that same period. for the bottom 20% incomes increased another 18%. here's another look at the rising inequality. the richest 1% of us doubled their share of the national pie from 8% to 17% while the rest of america, the 99%, saw their share of the pie get smaller. the richest 1% grew their share changes to increasing incomes and more favorable tax policies at the expense of the other 99%. basically the rich truly are getting richer and everyone sells losing out. for more we're joined which chris cillizza and managing editor of post politics didn't come and jen sakie who is a white house spokesperson. in effect, what is the president going to do with this fact, that we now have on the table thanks to the non-partisan cbo that everything the wall street occupiers are saying, everything that he's been implying is true, than

wait until you see the numbers from the non-partisan cbo. they are astounding. it seems like the top 1% is taking the money from the 99 rather dramatically, and you'll see it in the numbers. what do the republicans talk about when they groan about it looks like one of the classes is winning the war. you're watching "hardball," only on msnbc. [ male announcer ] you are a business pro. your core competency is...competency. and you...rent from national. because only national lets you choose any car in the aisle...and go. you can even take a full-size or above, and still pay the mid-size price. i'm getting an upgrade. [ male announcer ] as you wish, business pro. as you wish. go national. go like a pro. now through january earn a free day with every two rentals. find out more at nationalcar.com. >>> more numbers now from the "new york times" poll. here it is. americans tend to support the occupy wall street protest that have sprung up across the country now. nearly half of those polled, 46%, say the wall street protesters reflect the sentiment of most americans. onl

obviously that will really factor into the budget balancing process, and our cbo/stakeholder process was very successful last year is already underway, and we have already convene the meeting of that group of stakeholders that will be ongoing throughout the next year. the bottom line, i think, as far as the current year, cautiously optimistic. we have said the vigorous, but we're seeing good news on local revenues. i am hopeful we will be able to get through this year without having to do a round of mid-year cuts, but it is by no means certain we will not have to do that. in any event, with the looming deficit next year, we may look to get current year savings in anticipation to help balance next year's budget. for example, we could issue targets that require departments to come in with a certain amount of their cut so that we achieve the savings over the next 18 months in what less of an impact on services and programs. projected deficits persist. costs are growing faster than our revenues. it is a fact we have to address, and we need to implement a five- year plan. and continue fis

>> you have to look at the independent assessments of cbo and others. the conclusions they reach, and it is with them at the supports, is that those programs will are a substantial positive return to the taxpayer. current estimates are over $10 billion, but that is not the most important benefit they had. the most important benefits investments at banks is that it helped take an economy that was up falling off a cliff when the president took office, and economic growth began again in the second quarter of 2009, just three months after the president took office, because of the scope of the measure that congress helped the president enact, including the programs put in place to make sure that banks were more stable, deposits were more stable, statements were protected, and we did not face the catastrophic collapse week had in the great depression. these capital programs, and it is true sblf, cdfi fund, tarp- related investments in banks, are set by any measure it the most efficient use of taxpayer money we have had, because every dollar of capital you mak

now one other point from this really fascinating cbo study that really bears on this.the things they do in that study is they figure out how has the tax system affected this inequality problem over time? we still have a progressive system of taxes and some of the government benefits. it has become less progressive over time. that is, the growth of income inequality has been greater after tax, after we have attaches and government programs in the picture than it has become tax. so in a sense, the tides of inequality have been rising but the levies that we have to push back against them have been less effective. the last thing we need is to take those down further. >> so in simple term,s, when eric cantor, john boehner, when mitt romney say get rid of regulations. cut taxes. reduce the tax burden. and then the economy will flourish, and jobs will be created, you say -- >> i say mr. boehner, mr. cantor, when i hear your agenda, it sounds to me like you think america's big problem is that rich people aren't wealthy enough. that isn't america's big problem. america's big pr

what he's really saying is they haven't proposed anything and if you tried to bring it to cbo, cbo wouldn'to say the republicans would be create any jobs. >> exactly. the republicans' idea about creating jobs is basely is think government and somehow by shrinking government you get more jobs though most americans understand shrinking government means fewer teachers, firefighters, fewer social workers, fewer police officers, fewer government contractors, fewer people who are working for all the government contractors. so it's hard to imagine how by any scoring or any logic it is possible to understand how a shrinking government is going to create jobs. >> the president's news conference yesterday seemed to at a certain level up the anxiety level for him. i mean, he seemed to be saying, look, this economy could go very badly if we don't do something very quickly. this is a very tricky spot for the president to be in because, of course, he doesn't want to say anything that shakes confidence in any way but at the same time he somehow has to inspire urgency. how should he do that? >> well, i thi

>> that's why i like this show the cbo said nobody is going to buy this until you get sick.se selection. >> greta: estimating what we think people would pay in it using money to make it deficit neutral. >> greta: that's a little nuts, isn't it. >> not only was it dumb it's dangerous. you are selling a product. you are taking the premium money instead of putting the money aside to pay for people when they want their health care under the private you sold you took the money and used it to finance obama health care and somebody in cbo finally woke up and said you know what the republicans said about this a year and a half ago is actually true. so they killed the program. now they are saying today well it's not really dead. we are going to introduce legislation in the senate this week to kill this program. >> greta: last week i think it was hhs secretary sebelius who said it was dead. >> yeah because it won't work. >> greta: over the weekend they got some heat from people -- >> -- here is the big news. this bill was coming unraveled. obama health care is coming unraveled. the su

the cbo, i know, has looked at infrastructure estimates. do you believe that is an effective way to try to boost job growth, especially say we of over 14% unemployment in the construction sector could >> yes, we think the variety of government programs or tax revenues would spur economic activity in the next few years. >> yes, and i know cbo has analyzed different forms of investment to see which would be more effective. there are a lot of folks out there who are unemployed through no fault of their own and are continuing to look for work. as i looked at one of your analysis is, one of the biggest ways to increase consumer demand, which is a big support group, is to expand help for those who are out of work through no fault of their own. is that correct? >> yes. >> another issue moving on the horizon is that beginning next year, the current payroll tax holiday, which is in effect for all working americans, that will lapse. if that were to lapse, and that would mean that working people have less disposable income, especially at this point in

the cbo study found that the 1%er-tax income of the top between 1979 and 2007. middle class of their income 40%. >>> of the occupied wall street showing no signs of easing. hundreds of protesters marched city hall. police made several arrests. protestors have been rowing greed andrporate power. for bettero calling health care. oakland police say an investigation will be launched police conduct during a clash with protesters. it led to one veteran a after sendingured head.in and his the injury caused by a police projectile. is president obama americans whoith pay theirng to student loan debt. he said if it the first lady and nearly one decade to pay out their $120,000 loss school debt. he shared the story as he introduced a plan to allow reduce loan payments and consolidate loans. ormitt romney is the head in first republican primary state. finding.he he continues to be the where --ing front in new hampshire. tied for the top with cain in i web. he made his first public campaign yesterday. the republican headquarters. parties battle for control of the virginia st

the cbo s can do something and the police. i worked so hard with that parent and inspectors. not a single person has mentioned parent. how can we make them accountable. >> i just needed to put that the word parent out there. we need to make more accountability. most of the kids are reacting. my kid, has severe ptsd. unless we can heal the wounds. it's not just on the streets of sunnydale. >> yes. the family, what makes up a family, parents children. ultimately, we have to also deal with our families who have their children who are placed with these acronyms over their head that follows them all through their lives. when working with the child. not only are we working with the families and their friends and the places they go before they get home. so the ultimate thing is building that family unit. i was going to run to that. life goes on. we all have a duty not just to the child. but to the family. because the child comes from a family and most the children that we're working with. the families are broken. the homes are broken. so they lived through this years and years. the

the cbo director telling congress today it has just two weeks to come up with a debt plan, so the cbo can review it before a november 23rd deadline. they have to come up with $1.2 trillion in deficit cuts. failure to do so may rattle market confidence and worse bank of america, merrill lynch says failure to come up with a big deal with result in america getting its credit cut again. stu varney is varney & co. stu we talked about this before. congress has an even shorter deadline to come up with this deal than we thought because of the warning from the cbo says you can't give it to us at the last minute, we need time to score it. >> that's correct. the skrept sis eupl that a deal will be done and stay done is rising. point number one. they are saying this morning i need more time to score this thing. he also said, megyn, even if you get a deal done that deal could be undone by a future congress. so it's not set in concrete. here is another item for you. moody's, that's the rating agency which assesses the status of america's debt, it has said that if they fail to come up with this big

the result is this chart from the cbo study.t shows the distribution of income growth after the government has gone in and done its redistributing. what do we say? the shape of the graph is still radically unequal. our tax system has taken the unequality problem and made it worse. it's so inequal it looks like the disruption of unequalistan. where one single jheroic job secretor -- they have a flat tax which means the vastly unequal distribution of income is preserved entirely in its pristine state. lo and behold this is what the republican primary candidates are rallying around. herman cain has unveiled his famous 9-9-9 tax plan which will reduce the tax burden of someone earning a million dollars merely by half. rick perry would allow millionaires to opt into a 20% flat rate and would also be kind enough to end taxes on their estates, dividends and capital gains. in other words, faced with growing inequality and a government that's doing less and less to rectify the situation, with thousands in the treats across the country de

for decades and for years by folks and it wasn't until the occupy wall street protesters and now the cbotests of people saying describe your country. we would give them different tests that would show this kind of income inequality and then something that was more equal distribution, never equal but more proportionate distribution, and virtually no one would pick the correct way the united states income curve was actually shaped. no one in the country really knew this before. >> it is hard for americans to believe the united states is the most unequal of all advanced industrial democracies. we are more unequal than western europe for instance. and most explanations is this is the economy and labor market but this is due to plix and tax policy. our policy has changed over the last0 years so that the top rate at 70% at one point is down to 28. we have policies that we tried to update like the minimum wage, for instance. in 1968 the minimum wage was worth $10 an hour and today it is 7.25. we have a broken labor law. so that one in three workers may try to join a union, get fired from their

white up, the school district, mayor's office, and the number of city cbo's partner together to plan and implement a very special program. three weeks ago, august 25 through 28, our department in the above-mentioned partners, a team together to make 37 our risk youth, ages 14 to 17 to the camp. campers participated in activities such as interpreter of heights, the navigation classis, fishing, sports and athletics come early morning runs and hikes, archery, aquatics, conflict resolution. the producer did it in a talent show, and a very memorable trip to hit tetchtch hetchy. we hope to identify teenagers that could move into the department work -- recreation program, use leadership program, and potentially to become leaders to keep some of our outdoor courses in extreme forces its sports. thi10 of those students are beig selected immediately to begin work this october. they will put throughout the city in different competencies' to start providing some of those services. that is a really great thing. i would like to recognize some of our staff that planned this for weeks and weeks. we

have somebody at their side all the time to help with the needs of the student and the principle and cbo get up and meet every morning. they were total partners in making this a community school. then i will be through. i had the opportunity to go to another school at 9 o'clock at night where i thought it was going to be closed. i walk into the school in upper manhattan and it is lit up like a christmas tree. we have to light up every school. it changed the whole neighborhood. it was a beacon of wonderfulness. it was full of activity. of young people. parents. esl. everything. i got so excited about the potential could be. and it changed the neighborhood and young people. if you want to talk about safety. i think we can make a joint commitment to this philosophy and start making it happen in san francisco. >> i really, i completely agree with margaret. when you look at this list, the reason some schools have this is because those schools go out and hustle funds. we are blessed because d.c. yf. we have the city that helps us. we have prop h. but the reality, the bottom route is our state

i want to quote a former cbo officials. they wrote, what remains most perplexing in this whole episode is why cbo played along with the class shawn rate. they had access to all the same actuarial data as everyone else. their own numbers showed the program was unstable beyond 10 years. the gregg amendment gave the excuse that class would never be launched because it could never be viable without massive taxpayer subsidies. yet they kept showing a surplus in the arrest appeared among the many questions about this sorry episode that are worth pursuing is the role of cbo. mr. chairman, as a physician who has dealt with many patients, i was a cardiac surgeon and i saw a lot of these complex conditions and solve the entire spectrum of care and the needs that are out there. i can surely tell you that as a physician there are many, many other options that are much more responsible, fiscally irresponsible, and sustainable than what this program was. my colleague dr. burgess mentioned a number of options. beyond class, we must contin

according to cbo's role of term -- role of thumb regarding economic growth, cbo states "stronger economicgrowth improves the budget's bottom line. weaker growth worsens it." cbo projections are weaker for 2011 and 2012. correct? >> that is right. if you were to do a forecast, it would be weaker. >> nearly all economists are telling us that growth continues to suffer from a significant weakness in demand and many are warning against pursuing overly aggressive measures of austerity in the short term. do you agree that a lack of demand is one of the key factors holding back our economic recovery? >> yes. it is a widespread opinion that lack of demand is a key factor holding back the recovery. >> how does the reduction in government spending is generally affect demand of the economy during an economic downturn? >> reductions in government spending will reduce the demand for goods and services. the government is providing lower transfers to individuals to purchase goods. >> do tax increases or spending cuts have a larger impact in reducing that demand? >> it depends on the specific tax increas

>> the cbo report draws sharp attention to the proposals of republican candidates.h are skewed towards the one gro of citizens who need it the least. >> absolutely nothing is going toappen meaningful on last -- this is a real possibility -- europe has a real meltdown. yes, ty got a bullet, but they haveuge problems to get -- yes, they dodged a bullet, but they still at huge problblems to face. itight produce people getting together and doing something. >> cheerful scenario. [laughteter] >> doomsdayy scenarios -- >> 30 seconds. >> between 2005 and 200 the after-tax income of the t 1/5 isis greater than the other 80% a rising tide lifts all yacachts. the stribution of income, equality is in the final ananalysis 8 national security issue. >> last

what it does draw, the cbo report, attention to is the proposals from the republican candidates, all of which are skewed towards the one group of citizens who need it the least. >> absolutely nothing is going to happen meaningful unless -- this is a real possibility -- europe really does have a meltdown. yes, they dodged a bullet this week, but they still have huge problems to face. it would trigger an american collapse, and trigger a political crisis that might get people to do something. >> cheerful scenario. [laughter] >> doomsday scenarios -- >> 2005 to 2007, the after-tax income of the top 1/5 was greater than all the other income of the other 80%. a rising tide lifts all yachts. the distribution of income, the inequality, is in the final analysis and national security issue, and it has to be examined that way. >> colby, if charles krauthammer were here, he would say that socking it to the rich would not make a difference in the debt could what we need is honest to god tax reform. >> he would say economic growth as well. it is not a matter of soaking the rich, it is a matter of

this is new out today from the cbo, the congressional budget office, on what american money has been like in the last few decades. this is a problem. i mean, the people who nobody needs to worry about, because they are doing better than anybody else in the country, they are the ones who have seen their income rise the most. they are the ones who've been helped the most. wait, hold on. what's that? i'm being told this is not the whole graph. this isn't the whole graph. we got the bottom 20%, the next 20%, the middle 20%, the next 20%. so this part here that shows the richest people in the country, that's not the whole top 20%? that's not the whole thing? okay. this part here that shows how much better off rich people are, how much better off rich people are doing in terms of their income, that apparently only goes up to the 99%. we are missing the top percent. the graph is not complete. if you want to know how the richest 1% of the country, the people who least need a pay raise in the country, how they've done over the last 30 years? we actually have to break that out separately becau

it has some staying power, but the cbo report draws sharp attention to the proposals coming out of the republican candidates, all of which are skewed towards the wonder of citizens who need it the least. -- the one at a group of citizens who need it the least. >> absolutely nothing is going to happen meaningful unless you're really does have a meltdown. yes, they dodged a bullet this week, but their problems with italy, huge problems still to face. you could still have a european clubs that would trigger an american cops, that would triple its political crisis, that might produce people getting together to do something. >> cheerful scenario. [laughter] >> doomsday scenarios -- >> 2005, 2007, the after-tax income of the top 1/5 was greater than the other income of the other 80%. a rising tide lifts all yachts. that is what we're looking at. the distribution of income is come in the final analysis, and national security issue and it has to be examined it that way. >> colby, if charles krauthammer were here, he would say that socking it to the rich is not going to make a difference. we ne