updated 12/12/2013 3:14:35 PM ET 2013-12-12T20:14:35

ALL IN with CHRIS HAYES
December 10, 2013
Guest: Kasie Hunt, Senator Bernie Sanders, Howard Fineman, Maya Wiley,
Margarette Purvis, Neera Tanden, Chef Tom Colicchio

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY
BE UPDATED.

CHRIS HAYES, MSNBC HOST OF "ALL IN" SHOW: Good evening from New York. I
am Chris Hayes and we begin with breaking news. The unveiling tonight of a
two-year bipartisan budget deal to avert another disastrous government
shutdown.

(BEGIN VIDEO CLIP)

PATTY MURRAY, (D) WASHINGTON SENATOR: This is not the plan I would have
written on my own; I am pretty sure Congressman Ryan would not have written
it on his own. I was disappointed that we were not able to close even a
single corporate tax loophole.

I know many Republicans had hoped this would be an opportunity to make some
of the kinds of changes to Medicare and Social Security they have advocated
for. But, Congressman Ryan had set aside our differences. We have made
some compromises. And, we have worked together to get something done.

PAUL RYAN, (R) WISCONSIN CONGRESSMAN: This is not easy. This is the first
divided government budget agreement since 1986. The key here is, nobody
had to sacrifice the core principles. Our principles are do no waste
taxes, reduce the deficit.

(END VIDEO CLIP)

HAYES: The deal sets overall spending about halfway between what the
senate was calling for and what the house was calling for each of their
respective budget while that might sound like the very definition of
compromise, let`s take a look at this new deal in context.

That big bar on the left that is President Obama`s budget, followed by the
much smaller senate budget even smaller senate continuing resolution and
the teeny-tiny bond on the right, that is the Ryan Paul budget -- Paul Ryan
budget. Here is the bipartisan compromise deal announced tonight by Patti
Murray and Paul Ryan. Take a moment to appreciate how much closer it is to
Paul Ryan`s budget than it is to President Obama`s.

Replace of the some of the upcoming sequestration cuts about half of the
cuts plan for next year about a quarter for the cuts plan for 2015. But,
those cuts are all set by other spending cuts by fees on things like
airline tickets and increased contributions for federal workers to their
pensions.

It is an actual to your budget, which is stability. But, there is a lot
being left out in this deal. Probably the biggest, most outrageous mission
is help for the long-term unemployed, benefits as we have reported here for
1.3 million unemployed Americans are set to expire three days after
Christmas and this budget deal does nothing for those people and their
families. Joining me now MSNBC news political reporter, Kasie Hunt.
Casey, you have been following this all day on Capitol Hill. How did this
deal come about?

KASIE HUNT, MSNBC NEWS POLITICAL REPORTER: So, Patty Murray and Paul Ryan
have been behind closed doors actually for months. These talks have been
ongoing behind closed doors ever since the senate first started putting
this budget on the floor -- Patty Murray`s budget and they made reference
out today, you know?

They kept those talks going even as other measures -- other efforts by
leadership were failing and even as we went through that government
shutdown. So, they cast this as a success of basically two budget policy
wonks who sat down and were able to hammer out their differences. And, you
saw the culmination of that tonight, just minutes or hours, really, before
the deadline. They had to file this bill before midnight tonight to get it
out this week.

HAYES: So, the timeline now is they had until Friday right? I mean Friday
is the last day, are they going to get this thing passed? Is it going to
be passed? We are already seeing condemnations from a number of house
republicans. Speaker Boehner has been supportive and a state -- represent
the positive step forward. Only one party has led efforts to bring fiscal
sanity back to Washington -- Are they going to have the votes for this in
the house?

HUNT: Well, that is what we are still waiting to see. It seems as though
leadership has made a commitment to bring it to the floor, that is what
Paul Ryan said tonight in his press conference, so -- and you saw as you
just read positive statements from the leadership.

But, the house had to get this finished by the end of this week. They are
as you said, out on Friday. They are going home for the holidays. The
senate still has another week, so there is a little bit more time. But, we
are going to start to see beginning tomorrow morning whether this is going
to fall apart in the face of conservative republican opposition.

They are going to present this to the conference at a meeting here at the
Capitol tomorrow morning. And, so we will start to see the reaction then.
You know, when House Speaker John Boehner has pushed for deals in the past,
he has faced rebellion from that caucus, you saw one congressman tonight on
CNN come out and say that he is a no. Senator Marco Rubio has already said
he`s a no.

But, on the other hand, what I thought was actually really interesting
having watched Paul Ryan on the trail in 2012, as Mitt Romney`s vice
presidential nominee. He got up there tonight and made a very forceful
case for why this is a down payment on conservative principles and as you
sort of walked through at the beginning of the show, there are some things
that democrats are leaving on the table.

And, Paul Ryan made this argument that while they have not tackled major
entitlement reform, the way that some of his previous budgets have
addressed it, it is making a down payment. They are making small changes
to things like pensions for federal workers.

They are looking at the sort of built in costs of the budget that are going
to have to be controlled in the long-term at least from the perspective of
debt and deficit hawks. So, he is already facing fire from groups like
Heritage Action from people who have embraced him in the past.

HAYES: Well, Heritage Action was already blasting the deal before the deal
was announced.

HUNT: Right.

HAYES: In fact, they were going to score the vote and attack republican
who has voted for it before the controversial deal was announced. It seems
to me, the basic compromise is kind of a mutual nonaggression pact on big
stuff. Social insurance cut which democrats do not want to see or the
majority of the democratic caucus does not want to see and essentially any
tax raises, which republicans do not want to see. Those are all taken out
and the rest is done in the margins. Kasie Hunter, NBC News, thank you so
much for your time. I appreciate it.

HUNT: Thanks, Chris.

HAYES: Joining me now independent Vermont Senator Bernie Sanders, so
senator, what do you make of this deal?

BERNIE SANDERS, (I) VERMONT SENATOR: Well, this is a very, very modest
proposal. It will prevent a disastrous government shutdown. On the other
hand, it goes nowhere close to addressing the crises facing this country.
We are not dealing with extending unemployment benefits.

We are not putting the money we need into rebuilding our infrastructure,
creating millions of jobs, investing in energy efficiency, investing in
early childhood education. What I am personally appreciative of is that we
have had to take on every republican, some democrats and the president who
has wanted to cut social security, Medicare and we have prevented that. So
--

HAYES: Yes. I think it seems to me this one take away from this budget
deal is that ship has sailed. I mean if there was a window, if there was a
period of time in which some cuts to social security and Medicare, could
really happen, I think the window is closed on that. Tonight`s deal seems
definitive in that respect.

SANDERS: Well, I think you are right, Chris. But, do not underestimate
the effort that took place. We have to rally the American people against a
huge array of special interests the Koch brothers and Pete Peterson and
every republican -- to make the point that social security is not going
broke.

It is enormously important for 50-plus million Americans. Now, having said
that, on the other hand, what we did not do in this agreement very clearly
is address the absurdity that one out of four corporations in this country
including very profitable corporations at a given year pays nothing in
federal taxes. The huge loopholes that exist by companies putting their
money in the Cayman Islands and in other tax havens, we are losing about
$100 billion a year. That issue was not addressed at all.

HAYES: The most outrageous part of this deal to me seems the omission for
extension for unemployment benefits for the long-term unemployed. There is
a lot of talk going into this, but that there was a demand from the
democratic side that would be included in any deal.

It is not in the deal and that seems to me a signal that those people are
screwed basically the republicans are telling them you are out of luck.
The president today supportive -- White House issuing a supportive
statement saying that a bipartisan budget agreement is a good first step
and sort of praising the fact that we will not have the cycle of short-
sided crisis driven decision making. White House still pressing for
extensional long-term unemployment, but is that dead on arrival now?

SANDERS: I do not think it is dead on arrival. It is the fight that we
have to face. We are looking at 1 .3 million workers who face financial
disaster, if that unemployment comp -- long-term unemployment comp
extension is not passed.

So, this is an issue that clearly we have got to address. But, again, the
other concern is that there are so many important issues facing our
country. Unemployment is much too high. We need to invest in jobs. We
have none of that in this legislation.

HAYES: How do we get the gravity, center of gravity to move in the
opposite direction? We showed that chart at the top. We have shown how --
we are now -- I mean what is crazy about this sequester was this
essentially number plucked from the air to impose very intense austerity at
a time when budget deficits are running at 10% of GDP.

They are now much, much lower. We are seeing the largest reduction of the
deficit in 50 years. We are seeing the labor market lags behind and yet we
are not seeing a reverse in people`s thinking in Washington about what we
need from this budget?

SANDERS: That is because we have very powerful special interests, the
united Republican Party says, "Look, we do not care that unemployment is
13%, not an issue. We do not care in fact that we have reduced the deficit
by 50% over the last four years. We do not care that primary health care
in this country is completely neglected or that so many of our kids have
inadequate early childhood education. We don`t want to invest in that.
Our job, and here is the good news, is on all of these issues, do you ask
the wealthy and large corporations to pay more in taxes? The American
people are saying, yes. Do you invest in creating millions of jobs by
rebuilding our infrastructure? The American people say, yes."

So, I think on issue after issue, we have the American people on our side.
They don`t want to see cuts in social security, Medicare and Medicaid. Our
job is to rally the American people and put the republicans in a position
where they have got to go along with us.

HAYES: You know, often it seems the basic mechanisms of sort of democratic
accountability and the transference of majority opinions particularly the
opinions of working people in the policy in Washington is broken. The one
place where it has succeed in the last three or four years is the fact that
cuts to social security and Medicare are overwhelmingly unpopular and there
are relatively small click of people obsessed with making those happen. We
are unable to. So, that is a victory for American democracy aside from the
substantive policy to victory --

SANDERS: You do not know within the last year or two, how close we came to
losing that fight. But, you are right, the American people understand, you
do not give tax breaks to billionaires and then cut social security,
Medicare and Medicaid.

HAYES: Senator Bernie Sanders, always a pleasure. Thank you.

SANDERS: Thank you.

HAYES: Coming up, an epic battle is brewing in Texas.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE SPEAKER: He came down off the bench after doing his
time. He fought heathens and hellions and all kinds of crime. He was just
getting started, had a long ways to go. We send him to Washington, to the
really big show

(MUSIC CLIP)

Big John, Big John, Big John

UNIDENTIFIED MALE SPEAKER: Big bad John

HAYES: Hear that? That is real. That was Senator John Cornyn trying to
show just how Texas he was in his last election. We can only imagine what
he is going to have to do for this one, after the news dropped yesterday, A
primary challenge from the very far right. And, we will bring you that
next.

(COMMERCIAL BREAK)

HAYES: Big surprising shake-up in the Texas senate race. A primary
challenger for Republican Senator John Cornyn, Congressman Steve Stockman
also of Texas, a man who, and I am saying this totally honestly, when I
first encountered his twitter account, I literally took it to be a parody.

And, the reason is tweets like this, "The best thing about the earth is, if
you poke holes in it, oil and gas come out." "Our campaign bumper sticker:
If babies had guns, they would not be aborted" and "If you love your mom,
you want to get her a bushmaster AR-15. I am giving one away for free,
sign up to Rem." No. It is not a parody. He is a real guy.

(BEGIN VIDEO CLIP)

STEVE STOCKMAN, (R) MICHIGAN SENATOR: Do you remember during Sandy Hook,
the president said you have to turn down the rhetoric. He reserved all the
hatred and all that rhetoric, not for the terrorists, not for that but for
the republicans.

At the same time, we are asking the president to go through the process.
If he thinks his bill is good, his law is good, then he should go through
congress. He is not a king. It reminds me of Saddam Hussein when he used
kids.

It is amazing what they are saying is covered by Obama care. If you decide
to become transgender, you can also get that covered.

(LAUGHING)

(END VIDEO CLIP)

HAYES: Stockman member of the Birther caucus filed yesterday at the last
minute to primary Senator Cornyn. And, today Stockman is out with a
blistering fund racing letter. "If we let John Cornyn back in the senate,
he will go right back to betraying republicans and with a vengeance. Well,
I am sick and tired of the bayoneted in the back by someone in my own
foxhole."

It seems that Stockman is a truly ridiculous figure, but it is not clear
that Cornyn, despite being ranked the second most conservative senator by
the national journal is actually going to win this thing.

Remember that two years ago, everyone knew who was going to be the next
republican senator from Texas, it was going to be David Dewhurst, the
Lieutenant governor, endorsed by Governor Rick Perry for that senate seat.
But, an ambitious former state general got to the right of Dewhurst and
primary then and beat him by double digits in a runoff.

And, that man`s name is Senator Ted Cruz. And, so far, he said he is
staying out of the brewing primary battle. Joining me now, Howard Fineman,
NBC News Political Analyst and Editorial Director of the "Huffington Post
Media Group." All right, Howard, here is the challenge for an MSNBC host,
describing Steve Stockman. It is generally a challenge.

HOWARD FINEMAN, NBC NEWS POLITICAL ANALYST: Right.

HAYES: We use all these words all the time to describe the far right
opposition, that is sort of intent on the president`s demise, that believes
in a whole variety of awful, terrible and ridiculous things and nothing
could not quite capture the dark, weird magic that is Steve Stockman.

FINEMAN: Well, I am tempted to say that the great thing about the earth is
if you poke a hole in it, Steve Stockman comes out. I mean, you say this
stuff coming out of Texas is -- you know? You thought it was a parody. I
question how much time you spent in Texas. I mean Texas is built on being
a parody and they are proud of their Texasness, to a point that it is hard
for others to explain and understand.

In Steve Stockman`s world, it is all about guns. I would say, you know,
you pick different things for different people. With stockman, it is guns.
I mean this is a guy who not only does not want gun free zones around
schools. He basically wants gun filled zones in schools.

HAYES: He has introduced a piece of legislation that would essentially
allow everyone inside a school to be armed. I am not sure if the students
are included. I have not read the bill text in a little while ago.

FINEMAN: I am sure he would include that with the third grade report card.
So, you know, that is stockman. It sounds crazy on one level, but
interestingly, the rather sophisticated people behind the senate
conservative fund, you know, who are backing some Tea Party candidates.
This is the Jim Demint Group.

HAYES: Yes.

FINEMAN: That`s backing people in Kentucky and now maybe North Carolina
and Mississippi and elsewhere, picking their spots carefully, not Kansas.
They did not endorse Steve Stockman, but they obliged him by going after
John Cornyn with both guns blazing tonight. So, they paid Stockman the
complement of giving him a free round of attacks on Cornyn, which is an
ominous sign for Cornyn.

HAYES: That is right and you have a remarkable dynamic now. Cornyn got a
few advantages. He is first of all the incumbent senator from Texas. He
got 7 million cash on hands. Stockman got $32,000. And, so at first you
would say, "Well, this is, you know, this is not a contest." But that
other people have said that before, Mike Castle of Delaware, of course,
probably thought that when he lifted Christine O`Donnell overall on the
other side of the campaign trail.

But, the issue here is Ted Cruz, so far he has said he is remaining
neutral. Now, in Kentucky, you got a dynamic where Rand Paul essentially
gives Mitch McConnell cover. He is the darling of the Tea Party right and
he has endorsed Mitch McConnell and Mitch McConnell can draw on that
credibility.

Nothing like that is forthcoming so far for John Cornyn from Ted Cruz and
you got to really wonder what John Cornyn`s voting record is now going to
look like in the next year if he is trying to beat back a Steve Stockman
challenge.

FINEMAN: Well, I think that is a good question, and I think that even
though John Cornyn has like -- I thinks he has a 93% positive rating from
the American conservative union is that other 7% is going to get all the
attention from Stockman and from the Tea Party conservatives around the
country.

They are not going to run away from stockman no matter what crazy
statements he made. And, the interesting about this is -- a part of his
style is -- John Cornyn is a conservative. There is no doubt it. But, he
attended Trinity University in San Antonio. He had an excellent liberal
art school. He went to a good law school. He speaks with a sort of Texas
patrician heir. He used to hang out with George W. Bush. He is an
establishment republican --

HAYES: Right.

FINEMAN: But, a conservative, but an establishment republican. For the
Tea Party people, their whole thoughts is, if you do not make outrageous
statements --

HAYES: That is right.

FINEMAN: -- you are not serious. And, it sounds nuts to a lot of the rest
of the people in the country, but that is the world they live in. That is
what turns them on. That is how they raise their money. That is how they
turned out their vote,

Do not forget in Virginia, in the recent election there, there was a
Lieutenant Governor candidate who said the most outrageous things. He got
46%, 47% of vote. All those people turned out and they will turn out in a
republican primary for Steve Stockman.

HAYES: Cornyn today down playing Stockman`s interest and adversaries focus
in the most recent interim, but there I think six other people, and he said
there is lessons to be learned from Ted Cruz`s victory. The last thing
here is the institutional dynamic. The absolutely breakdown of the
Republican Party as a kind -- is the usual center.

I was trying to think of the last time that a sitting congress member in
the house primaried someone from their own party, an incumbent sitting
senator and I was having a -- I mean this is incredibly rare. It is one
thing for some, you know, ex-dentist to say I am going to get in the race
and I am going to bring the Tea Party message. It is another for someone
from your state`s congressional delegation to primary you.

FINEMAN: Yes and I wish I had the deep knowledge to give you a ready
answer for that. But, this kind of stuff`s been going on for -- well I do
know a lot about Kentucky where I used to be reporter when I started out
and sort of there is the Jim Bunning versus McConnell stuff. I mean there
has been -- that has been an increasingly the flavor in, especially in the
south, and the Border States. Taking on other people and all that sort of
you know sense of standing in line in the Republican Party has gone away.

HAYES: That is out the window.

FINEMAN: It is very interesting. The Republican Party, everybody in the
conventional wisdom was the Republican Party was the loyalist party.
Everybody stood in line. That is totally -- they are in a circular firing
squad now.

HAYES: NBC Political Analyst, Howard Fineman, thanks.

FINEMAN: Thanks.

HAYES: The president and first lady attended Nelson Mandela`s memorial
service today, which resulted in a day of scandal over a hand shake and a
selfie and I will explain, next.

(COMMERCIAL BREAK)

HAYES: Yesterday, President Obama travelled to South Africa to attend the
memorial service for Nelson Mandela. Today, he joined tens of thousands of
others in the Johannesburg Stadium for the four-hour service. And, what
happen there will be written about in history books for years to come.

(BEGIN VIDEOTAPE)

HAYES (voice-over): December 10, 2013, the day the world said goodbye to a
transcended leader. He came for the Obama presidency a day of scandal.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: It is a hand shake everyone is talking about.

UNIDENTIFIED FEMALE: The President Obama shaking hands with Raul Castro.

ERIC BOLLING, FOX NEWS CO-HOST FOR "THE FIVE" SHOW: Our commander in chief
decided to shake hands with Communist Cuban Dictator Raul Castro.

(END VIDEO CLIP)
s
HAYES (voice-over): Yes, the president had not even sat down before this
hand shake shook up the world.

(END VIDEO CLIP)

UNIDENTIFIED FEMALE: Castro, he is shaking hands with Raul Castro.

(END VIDEO CLIP)

HAYES (voice-over): A move so outrageous, it sparked anger across the
cable news networks.

(BEGIN VIDEO CLIP)

UNIDENTIFIED REPORTER: I watched this video, you know -- I don`t know, ten
times today.

BILL HEMMER, FOX NEWS HOST OF AMERICA`S NEWSROOM: We all stopped and said,
"Whoa!" There are two ways to read that, Carol, one is awkward.

MICHAEL GRAHAM, RADIO TALK SHOW HOST: What are they going to discuss.
Tips on how the Cubans can improve the Obamacare website? I don`t know.

(END VIDEO CLIP)

HAYES (voice-over): Thankfully, Fox News asked the question we all wanted
to know, what would Mandela do?

(BEGIN VIDEO CLIP)

HEMMER: A journalist contact as early as today saying this would not have
been in the spirit of Mandela.

(END VIDEO CLIP)

HAYES (voice-over): So, true. We all know that Nelson Mandela would never
have made physical contact with a Castro brother. Fortunately, one
republican leader know the shameless hand shake of appeasement when he sees
it.

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN, (R) ARIZONA SENATOR: Why should you shake hands with
somebody who is keeping Americans in prison? I mean, what is the point?
Neville Chamberlain shook hands with Hitler.

(END VIDEO CLIP)

HAYES (voice-over): Yes, the president shaking Raul Castro`s hand and the
hands of other world leaders is just like placating the Nazis. John McCain
knows what he is talking about here. But, the president`s troubles did not
end with the hand shake.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE REPORTER: The other moment from today`s memorial is
getting some attention tonight, a selfie. It instantly went viral.

(END VIDEO CLIP)

HAYES (voice-over): That is right. It is selfghazi. There is the
president. There is the British prime minister David Cameron, and there is
-- well, according to USA today, we are not positive who the other person
in the snap is. Obama Cameron and some random lady also known as the Prime
Minister of Denmark were caught on camera taking a selfie during today`s
events.

And, for the second time today, the world cringed. Even the first lady was
horrified. I mean, one has to ask, what kind of world leader would do such
a thing? Amateur photo analysis done by people on the internet tells the
whole story.

Michelle Obama upset by the inappropriate behavior moves over to separate
the world leaders and forces them to behave and then smiles about it
afterwards -- Yeah, it didn`t make any sense to us either. But the
question remains, can Barack Obama do anything right? The answer is, "Oh,
right. Yes, he can."

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: There are too many leader
who is claim solidarity, even struggle for freedom but do not tolerate
dissent from their own people. Around the world today, men and women are
still in prison for their political beliefs and are still persecuted for
what they look like and how they worship and who they love. That is
happening today.

(END VIDEO CLIP)

(END VIDEOTAPE)

HAYES: Joining me now, Maya Wiley, Founder and President for Center for
Social Inclusion. She helped developed and implement the open society
foundation of South Africa Criminal Justice Initiative under President
Thabo Mbeki. Maya, I thought the freak out of the Raul Castro hand shake,
I guess it was predictable, but honestly what do they think should he have
positively done?

MAYA WILEY, FOUNDER AND PRESIDENT FOR CENTER FOR SOCIAL INCLUSION: Like
talk to the hand?

(LAUGHING)

HAYES: Yes, exactly. Like the Heisman trophy, arm bar. You know, he is
on the context of the president is he is in a receiving line of world
leaders shaking hands --

WILEY: And about to deliver a speech in which he was going to praise
Mandela for his ability to shake hands with his enemies including F.W. De
Klerk, I mean made me forget, not to mention his jailers.

HAYES: Right. And, F.W. De Klerk, let`s also be clear was running the
essentially fashious state of apartheid South Africa that have secretive
police that were persecuting, beating and killing --

WILEY: And, actually, sort of under riding some of the Zulu Nations fights
with the ANC during the negotiations. So, it is not -- it is sort of
silly. It is just silly.

HAYES: You know, I thought that this thing went viral today with the
picture of Michelle Obama, you know, reacting to this selfie moment. And,
you know, it is interesting because this was the image that everyone
saying.

And, it was kind of funny because, you know, you could take the million
pictures. You can narrow down to three, you tell a story, right? And, it
is "Oh, Michelle Obama is disapproving and then she kind of switches seats.

And, I thoughts about it, it is charming; and then I kind of thought about
it and I saw this other picture of her smiling. This image that people are
approaching the first lady with, like she`s the angry black lady, that
she`s the scold and there is something actually kind of ugly about it.

WILEY: Well, Yes. She has had to say before, of course, that I am not the
angry black woman, which actually -- I think it is actually OK to be angry
-- as a black woman, I would like to say that out loud. But, I think it is
-- first of all, I could not even tell what she was actually looking at in
that shot, like is she looking off into the distance or is she actually
looking at the selfie?

HAYES: Wait. You can take a thousand photos that tell us if the reality
show -- if they are edited --

WILEY: It is simply impossible. Frankly, I actually wish he had not have
taken the selfie. I mean I will say it, I wish he had not have taken a
selfie at the funeral. I thought that was a little bit awkward.

HAYES: I was like where are we on the selfie? I think this was generally
like -- maybe not appropriate.

WILEY: It was not the appropriate time for a selfie. But, why are we
trying to get inside the head of Michelle Obama?

HAYES: And, the other thing -- the entire event that theatrics of it. I
mean you have this stadium, the last time that American viewers have seen
it was during the world cup. It feels like the sound of 60,000 people, is
exuberant and joyous when the president is introduced. There is just
absolute -- I think people are approaching and thinking this is a funeral
in which we are dower and we are -- this was a celebration. It was a big
stadium celebration of one of the most celebrated individuals on the planet
who passed away after a long and tremendous life.

WILEY: Yes, absolutely. And, I think we all should rejoice that he got 95
years. I cannot think of something that was not more important to me
personally that Nelson Mandela should get 95 years on this earth after
spending 27 in prison as a freedom fighter.

HAYES: And, there was a long time where it did not looked like he was not
going to get that time.

WILEY: That is right.

HAYES: I thought the president, the one moment that was really stirring to
me in the president`s speech is that he talked about -- he said this one on
the day that Mandela died where he said, "My own first political ethic,
first time I took up any cause, any issue was in college. I went to an
anti-apartheid protest." He said it again today and he talked about how he
sturd his conscience that actually -- the apartheid struggle was -- this is
clear in his autobiography and the writing about Barack Obama, he was kind
of a non-political person in his high school years. He was not really into
causes. It was really the apartheid struggle that was the first entrance
of Barack Obama into social justice, into seeing himself as a vector for
change.

WILEY: Which is I think is true of a lot of people at his age at that
time, because the civil rights movement was not in the place it had been
in the 60s and nearly 70s. It was really the first opportunity for young
people to get engaged in the major social justice issue and one that is
actually still galvanizing college campuses today and the fossil fuel fight
for example and endowments.

HAYES: Maya Wiley from Center for Social Inclusion, thanks so much.

WILEY: Thank you.

HAYES: We will be right back.

(COMMERCIAL BREAK)

HAYES: New study out this week completely shattered a deeply held
conservative belief about the world. I will tell you what it is, coming
up.

(BEGIN VIDEO CLIP)

HAYES (voice-over): But, first I want to share the three awesomest things
on the internet today. This first most awesome thing comes from Iowa and
it combines two of the most awesome things in the known universe, Legos and
the movie the Blues Brothers. -- For some beautiful reason, put together
an amazingly accurate shot by shot remake of the famous car chase in a
shopping mall scene in the 1980 film done entirely with Legos.

UNIDENTIFIED FEMALE: Anything else?

UNIDENTIFIED MALE: Yes, do you have a Miss Piggie?

HAYES (voice-over): They are on a mission from Lego God and they have
really nailed it in a 12-minute video detailing just how they did it. We
learn it took more than 5,000 individual Lego bricks, more than 2,400
photos, a detailed map of mall, recreated for watching the film and more
than a hundred of hours to produce. It does not leave a whole lot of time
for dating, but do you got to do?

The second most awesome thing on the internet comes to us from Reddit, it
is Christmas season. So, you probably seen the trucks rolling down the
highway, stop the trees, each one destined for some how you dry your living
room somewhere. Do you wonder how they load up those trucks? Well, here
is one way to do it, by helicopter, and like really, really quickly. This
is a shot in the noble mountain Christmas tree farm in Salem, Oregon.

But, expert palette Dan Clark seems to have perfected the art of ticking up
the huge bundles of trees and dropping them into raiding trucking. Biggest
producer of Christmas trees, if you are in the Christmas tree business,
this is your one-time year to move some product. I imagine this is
probably pilot Dan Clark`s favorite time of year to spend a week or two, as
the Reddit poster put it, ruthlessly owning inertia not to mention
ruthlessly abusing the helicopter, always check the car facts, people, even
in whirly bird.

The third most awesome thing on the internet is in fact truly awesome. The
sploid section of gizmodo.com brings us to this video, which is the first
and only video in history to ever show us the moon orbiting around the
earth.

Shot from the vantage point of NASAs genome spacecraft on October 9th.
That little dot is the moon and that slightly bigger dot is the Earth.
And, look, if you are complaining about the quality of this video, I am
sorry, do you have some other video of the earth orbiting the moon you
would like to share with us? No, you don`t, because this is the only one
ever. If you can`t see the awesomeness of that, then perhaps this video is
a little more your speed.

(MUSIC VIDEO)

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

RONALD REAGAN, FMR. PRESIDENT OF THE UNITED STATES: My friends, some years
ago, the federal government declared war on poverty. And, poverty won.
Federal welfare programs have created a massive social problem, with the
best of intentions, government created a poverty trap, that wreaks havoc on
the very support system the poor need most to lift themselves out of
poverty, the family. Dependency has become the one enduring heirloom
passed from generation to the next of too many fragmented families.

(END VIDEO CLIP)

HAYES: That was Ronald Reagan, in his 1988 state of the union address.
They are going to claim that is the real article among the right. That is
the idea when government tries to help the poor, when it gives them food or
money or shelter is only setting a poverty trap that keeps the poor from
moving up the economic ladder.

The amazing new study out from Columbia this week offers a rock solid
rebuttal to that fantacy. It shows a government programs to aid the poor
helps reduce the percentage of American in poverty from 26% in 1967, to 16%
in 2012. Those facts don`t matter to those who want to make cuts of the
social safety net for one simple reason. They genuinely believe the poor
deserved to be in poverty.

And, if you think that is over stating things, let me take you to a two
piece of journalism this week that were both remarkable but for very
different reasons. Yesterday, New York Times introduced us to Desani an
11-year-old girl who lives with her parents, seven siblings and hundreds of
other children at a New York homeless shelter. She makes her home a place
where mold creeps up walls and roaches swarm or feces and vomit plug
commercial toilets or sexual predators have roamed and small children stand
guard for their single mothers outside filthy showers.

It is a remarkable piece of journalism that left many readers lamenting the
challenges faced by the poorest residence of underworld richest city. The
conservative "New York Post" was not one of them. In a jaw dropping
editorial, The Post Huff that The Times and liberal establishment seemed to
think it is the city`s job to create comfortable lives to outrageously
irresponsible parents.

It added that if the city is at fault, it might well be for having been
being too generous providing so much that neither the father nor the mother
seems much inclined to provide for their kids. Most elected republican
leaders are smart enough not to actually talk like this, but the
perspective that grounds this editorial is the same one that is right now
driving republican policy.

It is what` is behind to push for further cuts to food stamp benefits. It
is what`s kept 25 states from expanding Medicaid coverage with federal
money. It is what has republicans fighting an extension of unemployment
benefits for millions of Americans. It is what happens when instead of
fighting a war on poverty, you declare a war on the poor.

Joining me now, Margarette Purvis President and CEO of a food bank for New
York City, Neera Tanden, President Of Center For American Progress,
President of Think Tank and Chef Tom Colicchio, owner of Craftsteak
Restaurants and a board member of food policy action.

And, Tom I want to begin with you because you guys did a big event today.
There was a time when there was a political consensus around food stamps.
It wasn`t a real partisan issue. It was not particularly polarized issue.
People understand when you have a downturn, unemployment is high. People
are poor, they need to eat. That consensus has come undone recently?

TOM COLICCHIO, CRAFTSTEAK RESTAURANT OWNER: Yes. There is just this idea
that poor people want to stay poor, they do not want to work and we do not
see that. The majority of people that receive food stamps have at least
one member of the family working. Also, when you factor in that 16 million
children are on the food stamp program or SNAP program, 14 million seniors,
do we suggest that we start having children work now in sweat shops and
seniors going back to work? It is just -- it is a talking point, but it`s
not based in reality.

HAYES: And, you guys have introduced a way of trying to create some
accountability on this issue. You introduce scorecards today, where you
are coming out and scoring members of congress on how they are voting as
cuts are being proposed.

COLICCHIO: Right. Food Policy Action -- scorecard today. We graded 113
congress and we look at issues around food in general, not only hunger, but
the way food is manufactured, safety issues around food, farming issues,
environmental issues. And, yes, I think at some point we realize that the
hunger community alone cannot solve these problems.

And, we need to actually bring a large group of people to coalescing around
these issues and find commonality among people who care about animal rights
and people who care about food safety and various other things around a
whole food movement. So, the way food policy action brings the entire food
movement together to create a coalition and that will start voting around
food issues.

HAYES: Neera, you are someone who had a very intimate experience with the
kind of poverty that I think people in America who are of a certain class
do not realize exists, which is people move in and out of poverty because
of big life disruptions. You went through that experience.

NEERA TANDEN, PRESIDENT OF CENTER FOR AMERICAN PROGRESS: Yes. You know,
when I was a child, because my parents got divorce, my father left and I
was -- we used food stamps, I had reduced school lunch vouchers that I
used. I was very lucky to live in a middle class town and be able to stay
in a middle class town because we had section 8 vouchers. And, there was
apartments opening up. So, I think, it is really important, people try to
think that Desani is somebody else`s child, right?

HAYES: Right.

TANDEN: And, The New York Post, the editorial is really -- you think about
the fact that we`re in a holiday season, and it is like Scrooge is writing
that article because they want to think its somebody else`s children. And,
the fact that in America, we like to believe that we are a place of
opportunity where people can move up. How do people move up in poverty?
This study is so important, it shows that actual government program work.
The conservative attack on government is just a strategy to ensure that we
do not have that helping hand to people, so that they can move into the
middle class or even to be our next, you know, millionaires, innovators, et
cetera.

HAYES: The last thing we want poverty -- We declared war on poverty, we
spent a lot of money of reducing the poverty level. We reduced it.

TANDEN: Yes. It worked.

HAYES: Yes. It worked. We then essentially stopped fighting that war,
you know, in the 1980s particularly, it sort of flat lined since then.
Margarette, I want you to talk about what you are seeing on the ground. It
is particularly about this kind of ideology. The ideological bedrock of
this idea about who is the deserving among the deserving poor, right after
we take this break.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

RICK SANTELLI, CNBC BUSINESS NEWS EDITOR: This is America. How many of
you people want to pay for your neighbor`s mortgage who has an extra
bathroom and can`t pay their bills, raise your hand. President Obama, are
you listening?

(END VIDEO CLIP)

HAYES: Rick Santelli, famously launching the Tea Party movement in America
not with a rant against the depredation of big banks as often remembered
what attacking what he called losers who had up more than -- We are back
with Margarette Purvis and Neera Tanden and Tom Colicchio.

Margarette, the idea of that, that the people in poverty deserve to be
there? That is a -- that`s deep and it`s deepen in our political culture
and it`s deep among conservatives on the right and it had effects on how
we structure our policy.

MARGARETTE PURVIS, PRESIDENT AND CEO OF A FOOD BANK FOR NEW YORK CITY: It
does. Well, I will tell you. One of the deepest effects that I am seeing
is almost as if there has been almost a shaming of just regular folks to
speak up, to speak up and ask your elected official, now you do know you
went to Washington to serve the people, not a party?

And, I am honestly shocked that more people are not outraged, that
something like that could have been printed in the post today. I mean I
hear what you are saying, people are seeing that as other people`s
children. But, it is any child. I mean this is a country that screams
that we love children, correct?

HAYES: Right.

PURVIS: It is disgusting that in this city, 22,000 children, more children
than during the great depression have nowhere to safely rest their head at
night.

HAYES: Yes. And -- well, yes, Neera?

TANDEN: In a growing inequality is becoming more of a political problem
for people --

HAYES: Yes. Yes.

TANDEN: -- I mean obviously this city also elected Bill De Blasio by a
huge margin. He made the issue of inequality and the fact that there are
thousands of homeless children --

HAYES: Yes. But at the same time, Washington today -- cut a deal in
Washington. Patty Murray and Paul Ryan cut a deal, which I am glad the
government`s going to stay open, it is going to be three days after
Christmas, more than a million people are going to be told, "Oh, I am
sorry, your long-term unemployment benefits like, you know, go -- good luck
with at."

And, Tome, we are not talking about negotiating food stamp cuts, we are
negotiating between a democratic bill that cuts them a little and a
republican bill that cuts people by a gob smacking whapping $40 billion and
there is a report about how democrats plan to cuts food stamps without
original basis. There is going to be some cuts that come out, that the
middle space is going to be cuts to food stamps at a time when we have a
lot of poor people.

COLOCCHIO: Right, Chris, both sides are spinning right now. You have
democrats that are saying, "Well, this is a cut -- it is a lie heat cut.
There is, you know, still ways for people who are paying heating bills, to
collect full benefits of snap." And then on the republican side, they are
saying, "Well, if you take the airbus cuts, there`s actually $11 billion
cuts, not $5 billion, $11 billion cuts add it into the $8 billion cuts for
the lie heat, you have $19 billion cut.

So, both sides are spinning. I, from what I am hearing, I do not see how
heritage came out today bashing the bills, saying the cuts are not deep
enough. We know we have democrats like Jim McGovern and Rose Delora who
probably are not going to vote for this. So, I do not see how we get to
pass this.

But, Chris, what I am really concerned about here is it seems to me that we
are no longer investing in our most precious commodity and that is people.
When you have 1/6th of the people who can`t actually participate in the
American dream, something is wrong with our entire system. When we see 50
million Americans who are food insecure, this is just a canary in the coal
mine.

HAYES: Right.

COLOCCHIO: This suggests that there are a lot of other problems right now
and things that we need to address. So, I think this is just the beginning
and unless we start addressing this, unless we start changing the
conversation and talk about how we are going to invest in our future,
invest in our children, send them to school with food in bellies so they
can learn, and we are talking about getting people sort of out of
unemployment and get them job training programs, so they can actually get
back to work.

HAYES: Or jobs! How about more employment?

COLOCCHIO: Or jobs. How about more jobs?

HAYES: How about we just -- you know, there`s a graph recovery and there
is this little part of the graph where the recovery -- the jobs recovery
ticks up very dramatically and it is the census hiring and it goes back
down. Let`s just have another census, like for the love of god, people.

TANDEN: What the poverty study that came out today shows which is actually
that the government is doing an effective job. What isn`t working is the
economy.

HAYES: That is correct.

TANDEN: The economy is not producing enough jobs to go up that scale.
And, that is why it`s so vital that we pass minimum wage, should we have
any cuts to food stamps, absolutely not. But, we should not equate the two
parties on the issue of food stamps or the minimum wage or other issues.

HAYES: No.

TANDEN: We should actually increase food stamps, I agree with that and we
should demand a minimum wage increase and that is some issue that we can go
to the republicans on and say, "Pass this bill." Democrats are almost
united on that.

HAYES: And, let`s remember the recovery act was had billions of dollars
for the social safety net and for poor folks and in fact But the hunger
cliff -- the $4 billion cuts came from expiration of increased benefits.
When the democrats were controlling everything with a much better agenda,
Margarette?

PURVIS: Without a doubt. And, I think more than just jobs we have to get
so many people on food stamps, people in shelters have jobs. It is about -
- so about the wage, it is so about the wage as well. But, we also got to
make sure, you know, you talked about this kind ideological -- there is a
little bit poverty in a lot of us. The people are so happy, "Oh, it is not
me --

HAYES: Not me -- right.

PURVIS: -- as long as it is not me, I am kind of OK for it to be you.

HAYES: Right.

PURIVS: But the problem is --

HAYES: But for the grace of God, there is a reason --

PURVIS: There go I.

HAYES: Margarette Purvis from Food Bank for New York City, Neera Tenden
from the Center for American Progress and Chef Tom Colocchio, thank you
all. That is "All In" for this evening. The Rachel Maddow show starts
now. Good evening, Rachel.

RACHEL MADDOW, MSNBC HOST: Good evening, Chris. Thanks, my friend and
thanks to you at home for joining us this hour. Watch.

(BEGIN VIDEO CLIP)

PRES. OBAMA: I cherish the ideal of a democratic and free society in which
all persons live together in harmony and equal opportunities. It is an
ideal which I hope to live for and to achieve but if needs be, it is an
ideal for which I am prepared to die.

(END VIDEO CLIP)

MADDOW: President Obama today in Johannesburg quoting the words of Nelson
Mandela in his extended eulogy at Mr. Mandela`s memorial service today held
in a huge soccer stadium that had been built for the World Cup in
Johannesburg. President Obama was one of five presidents or heads of state
who spoke at the service today. One of the others was Raul Castro, brother
of Fidel Castro and lately the president of Cuba.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY
BE UPDATED.
END

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