President Obama is scheduled to meet with House Minority Leader Nancy Pelosi at the White House on Friday to discuss the ongoing debt ceiling negotiations. This meeting comes on the heels of Thursday's meeting that included Obama and bipartisan leaders from both chambers, including Pelosi at the White House. Following Thursday's meeting President Obama remained hopeful about a deal but also said major differences remained on a "wide range of issues."
A similar battle over public finances is being waged - on a smaller scale - in Minnesota where the government has been shutdown since last Friday. In an ironic twist, the shutdown over $5 billion budget deficit is costing the state millions of dollars. The North Star State's economy may lose about $23 million a week from the shutdown, according to Tom Stinson, the state's economist.
The state is losing about $1.25 million daily on lottery revenue, $1.68 million in tax revenues because state compliance officers are not tracking down money. In addition, Minnesota expects to spend $8.5 million a week in unemployment insurance for the laid-off state workers and pay $4.7 million to cover their health insurance weekly.
In the accompanying clip, taped ahead of Friday's grim jobs data, Former Michigan Governor Jennifer Granholm blames the Republican Party - in both Minnesota and in Washington - for taking such a hard line on spending cuts, seemingly at the expense of all else.
All the cost cutting in the world is not going to revive the state or national economy or increase revenues says Granholm, who dealt with her own state government shutdown in 2007. "All of that slashing" Michigan did during her tenure "did not translate into economic growth," she recalls. "In fact, it exacerbated the problem."
Granholm says it's time the GOP negotiate in good faith. "Many in the current GOP think that 'compromise' is a dirty word. Compromise is how you get things done," says Granholm. "It's the exact same argument that's being played out on the federal level."