are two americas today one comprised of the working class that's in the grip of a second republican great depression and the other comprise are millionaires and billionaires who are relatively unscathed thanks to the wall street bailout and the news media filled mostly with millionaires don't want to discuss. that's reality but i do you don't have to take my word for it on this tale of two economies take alan greenspan the former chairman of the federal reserve is what word for it when he appeared on meet the press last year. oh problem basically is that we have a very distorted economy in the sense that there has been a significant recovery in a limited area of the economy amongst high income individuals who have just had eight hundred billion dollars for one k.'s i'm spending it i don't care what consumption their lives large banks who are doing much better and you know it's corporations and. when it's going to you know. the rest of the economy small business small banks and a very significant amount of the labor force which is a project unemployment and long term unemployment how does pulling the

that's the exact endgame the republicans are trying for with their scorched earth strategy they'll do anything to win back the white house even if it means another great depression for the rest of us that's why republicans are playing hardball this case but what the republicans don't realize and i'm not even sure the president realizes this is that while republicans may have the armed with machetes in this budgetary knife fight president obama has a chainsaw and that chainsaw is a power that the office of management and budget has given to treasury secretary tim geithner back in one nine hundred eighty five there was a debate going down just like today over raising the debt ceiling and one senator from oregon bob packwood had a question so we wrote a letter to the government accountability office basically asking how and in what order our debt obligations would be paid off if congress failed to raise the debt ceiling and what he received back in response is incredible here's the letter to the honorable bob packwood chairman son of your committee on finance and sits on it you have requested our views on whether the secretary of the treasury has authority to deter

more misery after the worst recession since the great depression, but republicans and democrats still can't get on the same page. they are having the great economic debate with 14 million americans looking for a job stuck in the middle. >> it is a battle over economic policy. they each believe their way out of this economic difficulties is the right way and we're still going to have a battle toward the end of the summer. >> republicans believe cutting taxes, cutting regulations and government. let the private sector lead. democrats say invest, stimulate with infrastructure projects and more money for education and research. it's time to raise tax rates on the rich which are lower than they were a decade ago. now a deadline, the national debt ceiling has been hit. within months the nation's could default on the debt but arguing over the proper course continues. >> i think the closer we get to the economic cliff is the closer the parties will come together for a compromise. even though the debt issue, politics will drive the debate has millions remain in the unemployment lines. >> in th

more misery after the worst recession since the great depression. but republicans and democrats still can't get on the same page. they're having the great economic debate with 14 million americans looking for a job stuck in the middle. >> reduce the deficit and the debt. >> get our spending under control. >> increase in the debt limit. >> pull back regulations. >> reporter: it is a battle over economic policy. >> but they each believe that their way out of this economic difficulty is the right way, and we're still going to have a real battle going into the end of the summer. >> reporter: republicans believe the way to grow the economy is cutting taxes, cutting regulations in government, let the private sector lead. democrats say invest. stimulate the economy with infrastructure projects and more money for education and research and it's time to raise tax rates on the rich which are lower than they were more than a decade ago. and now a deadline. the national debt ceiling has been hit. within months the nation could default on its debts, yet the arguing over the pro

republicans seem to be playing one. drudge is all over this everybody's freaking out right now market housing double dip moody's threatening to downgrade our credit bad job numbers are we on the verge of a great depression this year and then on top of that these republicans saying oh it will really matter if we default if we don't raise the debt ceiling what is the reality here are we facing a great depression if they don't raise the debt ceiling is this is the ceiling at all. i think i'm in a try to say a few things yeah one minutes to be tricky but i'd say a few things one is the housing market has already and bigger is the double dip that never really came back because we've never really responded to the problem we have three to five million households facing foreclosure we have ten percent of people who can't pay their mortgage and we've done very close to nothing but throw money at some of the bondholders which isn't changed anything with wages flat to no going nowhere and unemployment at nine percent this problem won't fix itself and that's basically what we've been banking on if u.s. government does default it will have huge psychic and other responsibilities and i think that we have real serious

great depression. >> a number of republicans though argue they are not unwilling to raise the debt limit they agree that it needs the race but there needs to be in agreement on how to cut the debt. and they think it's unhelpful for the administration to keep saying it would be calamitous and that it would be better to focus on the cuts and how to get the debt down. >> what we have said is we are doing both. and i think the president's leadership on this is very clear. not only did he lay out his plan and his vision for how to achieve $4 trillion in deficit reduction over 10 to 12 years. he then passed the vice president of the united states to leave these very serious and so far productive negotiations with congress with both parties in both houses to achieve a compromise on significant deficit reduction. within the same timeframe that we need to address the vote on raising the debt ceiling. i think that demonstrates his commitment to both necessities. what we have said all along is that it sends the wrong signal and it would be a mistake to directly link, tire hold hostage one to the other because of t

during the great depression the government i mean we build dams and roads and bridges and and built the infrastructure that allowed the economy to recover but you know i don't understand why republicans don't want to do what dwight eisenhower did in the one nine hundred fifty s. and use government money in between the g.i. bill and the eisenhower highway program he set the table for up to three decades of economic growth while why are republicans unwilling to do what republicans traditionally do. at the top of our story by the way that i was ninety one percent . and i said in there how much percentage of the you know what you go look at is you've got issues where you've got over a glacier and burdening the country you've got issues where we are who we are it is the banks are let less well regulated now than they were during the eisenhower administration i'm glad you labeled a problem during the eisenhower administration you don't have that now we have we have removed regulations that were in place during years and capitalism was never meant to be completely without regulation adam smith talked about the invisible hand this idea that this is you know suddenly this free open market wil

like the great depression for the working class and it's getting worse and worse and worse because our government that spender and employer of last resort has been handcuffed by the republican party. f.d.r. had a little bit easier in the anti-government zite guys that i nine hundred twenty only lasted about a decade or f.d.r. came to power so he was able to right the ship a little easier unfortunately for president obama today's anti-government naima has been entrenched for over thirty years starting with great government is not the solution to our problem government is the problem. all of us need to be reminded that the federal government did not create the states or the states created the federal government the answer to a government that's too big is to stop feeding its groove an ancient chinese philosopher now truth. governor great nation as you would cook a small fridge do not do it even after i leave office i would never stop campaigning for the tools needed to limit the insatiable fiscal appetite of government and it was carried on ironically by bill clinton. we have work to give the american people a smaller less bureaucratic government in washington and we have to

great depression. because food prices going through roof and republicans have proposals for how to make it better instead of it worse and the include regulatory relief, lower taxes, fewer health care mandates, more exports, a series of steps we could be taking as a government to make it easier and cheaper to create private sector jobs. >> it's pretty clear with this administration is doing isn't working. it's making matters worse. and as the leader said and senator alexandre said when chief of staff bill daly was in front of the national association and defectors questioned by small business person about of the regulations and burdens being placed on small businesses, finally concluded and i quote, you can't defend the indefensible. and so, the administration acknowledges that there are policies not working. so they ought to change them and do something about it and they can start by reining in the epa and of these agencies that are imposing new burdens, new mandates, new costs, making it more expensive and difficult for small businesses in this country to create jobs. bottom line is job creation and if

great depression. that was an example of place where we didn't spend the right way and we pulled up a little too fast. republicans have scored a lot of points with the tea party by advocating trillions of dollars in cuts as part of a deal to raise the debt ceiling. this recovery, the way it's going right now, do you expect any of the republicans in monday night's debate might back off the idea of severe and deep cuts to this economy? >> reporter: no n a word, no. why? because it's an old rule in politics. you wage this campaign based on the last campaign. remember, these republicans are competing in a primary first. we're not in the general election. they're not appealing to all of america. they're appealing to conservative voters in iowa and conservative republicans and independent voters here in new hampshire. their lesson is in 2010, they were concerned about spending deficits. that's where they're tracking their appeals. in terms of any stimulus to the economy, it would come through cutting taxes not government spending. they believe they need to frame themselves as against president obama. >> stephen moore i

it took the republicans eight years to get us the precipice of the worst economic situation since the great depression. >> dick, that is tpha*upb sense. -- nonsense, you know it. you guys controlled the house house and senate. >> no, no, no, no. >> prebush -- come on. >> brad, let me finish. don't be rude now, let me finish. the president has had control of this government for 27 months. bush had it for eight years. you're not -- this is like -- >> we don't control the entire government. >> wait, brad. brad? >> martha: let him finish his thought, then we're going to debate. dick, thin your thought. >> let me finish. this is like riding home with a drunk driver who wrecks the cash puts it in the deck, bends up the axle, then once you restrain him somewhere and start driving home, the car is so damaged, it's going to take a while to get there. you give the keys back to the drunk driver? i don't think so, and i don't think the american people are going to do it next year. the economy is improving incrementally, it's going to take a while but guys, you screwed it up so bad it's going to take us a while to

that did not work during the great depression and the 1950s, '60s, didn't work in the '80s, didn't work in the early 1990s. there is no reason to think the republican government, lower taxes on the wealthy, and deregulation actually helps. we do know, though, because we have a lot of evidence that some of the things that i have suggested, other people have suggested, maybe a little bit more government spending right now, while you have to stimulate the economy because consumers are not going to do it, is critically important and, yes, you've got to have a credible plan for reducing the long-term budget deficit. but the critical most important thing is jobs, right now. >> all right, robert reich, david gergen, great to talk to you. we'll be continuing this conversation in the days and weeks ahead, no doubt. >>> coming up, president obama is feeling the heat to bring the troops home from afghanistan. sebastian junger has been on the ground there. he has a lot to say about what's going on there. you'll want to hear it. stay right there. [ male announcer ] this is james. the morning after the big move starts with back pain... and a choice. take advil n

great depression. >>> mit professor and nobel prize winning economist has withdrawn his nomination to the federal reseven. president obama first nominated peter diamond in april of 2010. republicanseatedly blocked votes on the confirmation arguing that his experience with labor market did not qualify him to conduct monetary policy. diamond says you have to understand the nature of unemployment to know how monetary policy or rather you do not have to understand the nature of unemployment to know how monetary policy can change it. >>> meanwhile one of the worst things about smart phones is how much power they eat it. >> put twice as much on the mole phone and have the same battery life. >> tonight the silicon valley start up that says it can cut the power consumption of computer chips in half. >> plus supreme court and california law allowing illegal immigrants to pay in state california law allowing illegal immigrants to pay in state tuition. we'll be right back look, every day we're using more and more energy. the world needs more energy. where's it going to come from? ♪ that's why right here, in australia, chevron is building one of the biggest natural gas projects in the world.

through multiple wars, and to the grace -- worst recession since the great depression, i have not seen anything like what the republicans are willing to risk today in these budget negotiations, and who they are willing to risk it all for. earlier this week, the bipartisan policy gentle put out a report that was authored by a former bush treasury official about what would happen if republicans continued to play chicken with default, and the administration was forced to make desperate spending decisions in august. those scenarios were extremely gramm. at risk are the benefits and health care that we on our veterans and absurd our nation honorably, social security checks -- that have served our nation honorably, social security checks for seniors, on a point benefits for the millions of workers desperately seeking jobs, and even pay for our active duty military. the question is, were they willing to risk that for? it is for people that are making the most in this country -- companies like exxon mobile, despite reporting a profit, we are paying more for taxes. it is large corporations shipping jobs overseas, and is the very

republicans gain power organized laborer is done. along with living wages, access to health care, and the little things like hope. dale writes -- justice after the great depressiono save lives of the working poor. the unions will be necessary to save the lives of the working poor because of the current great depression. paul in nova scotia, canada, i believe organized labor should redefine themselves in order to match up with the times. the old sway over. our postal union is about to become a thing of the past because they don't have the smarts to see the handwriting on the wall and begin to bargain with sense. jeff in georgia writes, i have no issues for or against unionization for the private sector. but i hope that organized labor in the public sector becomes as obsolete as anthony weiner's soon-to-be irrelevant political career. mark in oklahoma writes -- your question is a mute point. how can we form unions around jobs had a don't exist? the highlight of the show still ahead is this true, a story about some guy that married a mannequin? >> we do. jeanne moos will have a most unusual report. stick around and you will enjoy it. >> creeps me out. >> see you to

colorado, whether we're republicans or democrats, independents, and part of that is because we're going through the worst -- coming out of the worst recession since the great depression. by the end of the discussion i was having during the campaign over the last couple of years, there were about four things that people thought might be a good idea. they thought it would be good to have an economy in this country where median family income was actually rising instead of falling, that we were creating jobs in the united states instead of shipping them overseas. they thought it would be a good idea if our energy policy did not require us to send billions of dollars a week to the persian gulf to buy oil. they thought it would be a good idea and as a former school superintendent, i agree with them, a good idea if we were educating our kids for the 21st century. and they thought it would be a good idea if we actually were willing to make some hard choices to deal with our debt and our deficit. and there is a lot of disagreement around here that i don't really understand, but in colorado, the way they would like us to do that is that they would like to see a comprehensive p

republican brethren will believe if we do nothing that life goes on. if this country defaults on its debt, we will be facing a depression that will make the great depressionk like a minor bump in the road. now is not the time for partisan games. this has to be done for our survival in the world. guest: i agree with you. it will be done, probably towards the 11th hour. you are correct. every conservative economists that has spoken out about the debt limit and the need to i raiset has been clear -- and the need to raise it says we have no choice. we have to pay our bills. this is for bills we have already incurred. the focus of bringing in spending is a good thing. it should not necessarily be linked to raising the debt limit. it will be now because it is leverage point for some of my colleagues. host: david from georgia, but independent line. caller: good morning. i know the debt ceiling needs to be raised. no new taxes off the table. that has to go. i am a poor man. raise my taxes. i'm ok with that. host: what about spending cuts? caller: some spending cuts need to take place. host: what about medicare? caller: leave it alone. host: congresswoman. guest:

great depression. poverty is on the rise across america. during these tough times, we could ask millionaires to go without their special tax cuts for one day. instead, republicans are asking some of america's poorest, most vulnerable seniors to go hungry for one day and more. madam speaker, our nation deserves better than that. i yield back. the speaker pro tempore: for what purpose does the gentleman from georgia rise? mr. kingston: mr. speaker, i ask unanimous consent that all members may have five legislative days to revise and extend their remarks and include extraneous material on h.r. 2112. the speaker pro tempore: without objection. pursuant to house resolution 300 and rule 18, the chair declares the house in the committee of the whole house on the state of the union for further consideration of h.r. 2112. will the gentleman from michigan -- will the gentlewoman from michigan, mrs. miller, kindly resume the chair. the chair: the house is in the committee of the whole house on the state of the union for the further consideration of h.r. 2112 which the clerk will report by title. the clerk: a bill making appropriations for agriculture, rural defment, food

fought against repealing the protections put in place, glass-steagall and others after the great depression. republicans and democrats said, no, no, no it's old fashioned. let's take the protections down. within a decade, and so -- the reason that i mention that is it's not done. the remedy -- the financial regulation bill is not nearly enough. too big to fail. there's no restriction against being too big to fail. it's just gambling. we've got financial institutions still trading them on their own accounts. we've got much more to do to bring to bear the financial service industry to say you've got an important role in this economy. let's perform it the way it should be. >> host: you are writing too much books. what will they be about? >> guest: this is from the agent but my first two. the publisher who wanted me to be involved in two books, fiction, dealing with energy. losely called ecothrillers. the first will be out, i think, in march of next year. >> host: more about the president's schedule today, he's also meeting with democratic leaders from the senate, and politico has the story that reid and du