tv Your Money CNN October 19, 2013 2:00pm-2:30pm EDT
business, let alone the largest economy. business itself is pushing back. the dysfunction in washington has trade groups re-evaluating conventional wisdom about the close relationship between business and the gop. pop quiz, which is the party of business? republicans or democrats? >> it had been assumed that business and republicans were in bed together. now all of a sudden you see the new breed of republicans, mostly from the tea party, who are not all that friendly with wall street or banks or big business. it's really scrambled traditional thinking. >> the united business in the gop for decades, a philosophy famously articulated by president ronald reagan. >> government is not the solution to our problem. government is the problem. >> and embraced by the party's standard bearer in 2012. >> corporations are people, i many friend. >> but a willingness by the right wing to threaten default and shut down the government is
threatening to damage that historic alliance. >> i say there are a lot of republicans, mostly all tea party republicans, who may not get their phone calls answered when they ask big business for contributions. >> those contributions have kept republican war chests flushed with cash. the $32 million went mostly to gop candidates. the majority of contributions also benefited republicans. could they benefit from a split within the party? >> we are not going to blindly endorse one party or the other. >> i think it would be a stretch to say that all of a sudden democrats will get along much better with business. the basic interest of wall street and banks and business still is better represented by republicans than by democrats. >> case in point, obama care. the president's signature health care reform, small business, highly critical of the affordable care act. now, that's health care. on wall street, they are no fan of his financial reforms. remember this 2009 interview?
>> i did not run for office to be helping out a bunch of fat k cat bankers on wall street. >> they have pockets. some retail and manufacturing trade groups have already said that's their plan. former republican senator olympia snow told me business groups who want to see more moderate republicans elected to congress must speak up and contribute to those candidates. >> they have to be engaged. it affects them and their employees each and every day and it's affecting the future of this country. >> so will business firmly take sides in the gop's internal division? david frum is a cnn contributor and for "the daily beast." he knows something about the republican brand. will cane is a cnn contributor and analyst for "the blaze."
you said that tea party extremist ruins the brand for the republicans. should big business come to the rescue here? >> i think the republicans need help. one thing that needs to be stressed, even in the package you just did, it was not a strike against wall street but government suppliers. the interest on the debt would have been paid. what would not have been paid are the invioices. the u.s. government is the biggest purchaser of supplies on earth and instead of being paid in 15 days, who knows. and those are the people who would have been stiffed. businesses big and small are federal contractors and those are businesses that can make their voices heard and say we want to run the government, not close the government. >> you heard privately these trade associations are people who are too lack days cal, they are going to be a lot more
aggressive in primaries to make sure that the right candidates are in the right place to make sure something like this doesn't happen again, david. >> well, the republican -- the tea party candidates in 2010 and 2012, the bad candidates that won republican primaries probably cost five or maybe even six senate seats and that's the difference between a republican majority in the senate and republican minority today. we would have had mike castle voting to run the government instead of having christine o'donnell and having the republican lose their ability to run the government. >> will, i want to show you some polls here, the rift within the republican party growing. in four months, just four months, moderate republicans' views of the tea party have dropped 19 points. many business executives do support the tea party principles, right, of less government spending and ending obama care. so is this more over tactics or goals. >> it's a disagreement over short term versus long term.
not businesses who get obama care waivers and payments from the government. we need to represent government as a whole. that is the goal. the difference between the tea party and republican brand right now and businesses supporting principles that you're talking about, what we're looking at is short termism. they want everything to go well right now. but in the long run, obama care and government spending economy have a depressing effect and you have to look at long-term implications. >> it is interesting. i was at the conference this weekend and i will tell you that those businesses are not looking short term. they are being looking long term at the dysfunction in the u.s. government right now and how they think that's going to play out over the weeks and months and how it's not good for the american economy. david, $24 billion is how much the 16-day government shutdown took out of the u.s. economy. this is an estimate of standard & poor's. we could be back here in three months. how bad is this for consumers, everyone? >> i don't know how everybody comes up with quantifying it but here's what i do know.
i will use the term default. because a contract with the united states is constitutionally protected under the fifth amendment. it's a sacred obligation as a debt instrument is. if you don't pay the grocer you go just as bust as a mortgage. so would not have paid people with constitutionally protected obligations. the risk of that used to be zero. today, the risk of that is not zero. what that costs, i don't know. going from zero to a universe of the united states as a riskless commitment and the united states as a not a riskless commitment is a change that happened in 2011 and it's happening again now. it's disturbing and any business owner would be concerned about it for the long term of the country, the long term of american business. >> we'll be hashing this out, i'm sure, at least three of those calendar dates between now and february. will, david, nice to see you. thanks, guys. everyone has advice for washington these days, including israeli prime minister benjamin
netanyahu. >> with all of its flaws, the american system is probably the best system in the world but we improved on one thing. >> up next, i'm going to tell you what that one thing is and how that one thing could end the dysfunction in washington. i was made to work. make my mark with pride. create moments of value. build character through quality. and earn the right to be called a classic. the lands' end no iron dress shirt. starting at 49 dollars.
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bargain. the idea, solve all of our fiscal issues all at once, reform entitlements, improve and update the tax code, slow our rapidly rising debt and shrink the deficit. seems impossible but it may be essential to break the gridlock in washington. so how does it get done? i'm going to give you three possible paths. number one, lock them up. lawmakers only. no aides, no press, no food. how about that? in one location, the woods, they can't leave until they come up with the best plan. they can use all of these other deficit reduction plans. maybe just pick one. or we should adopt a system used in israel. here's benjamin netanyahu telling our piers morgan how it works there. >> see, in our case, if you don't get a budget by december 31st, an automatic budget goes in 1/12 of last year's budget each month. and if you still don't get a budget six months later, we all
go to elections. you know what, piers, we always get a budget. >> there you go. that's solution number two. throw them out if they don't make a budget. now, hold elections after six months if they don't get a budget, that could get lawmakers talking and could produce a grand bargain. finally, solution number three, what's your idea? maybe the answer comes from the people, not from the people who the lawmakers haven't been able to figure it out. i want you to tweet me @christineromans. washington needs some fresh thinking. we've invited brian, a washington correspondent for the new yorker. brian, will any of these solutions work or do you have a better one? >> well, i like the israeli system but they have a parliamentary system and we have a presidential system. we need a political reform commission. we need a commission that will
look at all of the political processes in this country and come up with solutions that are practical and, you know, stuff that doesn't require a constitutional amendment. so on my list would be actually five things, okay? return a little more money in politics. yes, more money in politics. allow john boehner to buy votes. they got rid of earmarks and pork. that takes away one of the tools in the leadership in the house and the parties need to be -- have -- they need to have more money in elections and all of the influence flows to these outside very ideological groups. so if you could raise the contributions that parties were allowed to give candidates, you would empower the parties a little bit more and the parties are moderating influences, right? >> well, here's the thing. we've been complaining about business as usual for so long. you know, complaining about it and then you get businesses not
usual, which is the tea party influence and senator ted cruz and his influence and then we're complaining about the upstarts. so no matter what, it's the american people who don't like what the solution is. let me give you another solution. there's this idea in tech, right, in the silicon valley, disruptive innovation. harvard business professor defines it. a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves up the market. so on the one hand you want to disrupt and get a solution and on the other hand i think tea party supporters think that's who they are. they are the disrupters who are creating better change. >> that's absolutely right. that's the most disruptive influence in our politics, has been the tea party. unfortunately, the core ideology of the tea party is no compromise. that is the problem, right? and in our system, our system is
premised on compromise. if we don't have compromise in congress, nothing gets done because we have this separation of powers where congress and the president are co-equal branches of government. very, very different than netanyahu's parliamentary system. and if you have one party at its core that says no compromise, then you cannot get anything done. >> so let me bring this to you, because i'm going to get a screaming and raging e-mail, no one is holding the president accountable, how is he going to go into the next round of budget negotiations which starts now and how he is going to be able to lead better this time than the last time? >> i hate to be so pessimistic but this is the ninth time that they are trying to get the grand bargain. the silver lining is maybe out of this chaotic situation, boehner has a little bit more credibility with his radicals and he can sell them on a deal
and the president has a little bit more interest in his -- in furnishing his legacy and finally getting a deal. but, look, i hate to say this but there's been -- the problem has been -- >> leave me with the silver lining and don't say anything else. cut his mike. brian lizza calling for more money in politics, more earmarks and just leave me with that. nice to see you again. >> thanks, christine. al gore tried to buy twitter, the former vice president told bloomberg tv he and former current tv founder joel hyatt went after the social network. twitter has remained independent but pretty soon you'll have an opportunity to buy a piece of the economy. >> low wages and you pay. a new study finds 52% of fast food companies get aid. programs like food stamp and
medicaid. twitter is he had hadding to the new york stock exchange. the debut drawing a lot of attention, it's a big loss for the nasdaq followed by last year's botched facebook ipo. apple just hired its only female executive. angela will head up the e-mail arm next year. she will join nine men in apple's executive suite. netflix reportedly in talks with comcast and others to make netflix available on cable boxes. quid pro panda? beijing has 50 pandas on loan to zoos around the world. the loans tend to follow trade investment deals with china. and finally, congratulations to a new friend of the show, robert shiller. just because nothing was accomplished as a result of the shutdown, doesn't erase the fact that the shutdown did matter.
>> we traveled all the way here to see this cemetery. and we get this. >> washington's dysfunction felt thousands of miles away from u.s. shores. one of the most sacred sites for families and military veterans shut down. that's next. humans. even when we cross our "ts" and dot our "i's", we still run into problems. that's why liberty mutual insurance offers accident forgiveness with our auto policies. if you qualify, your rates won't go up due to your first accident. because making mistakes is only human, and so are we. we also offer new car replacement, so if you total your new car, we'll give you the money for a new one. call liberty mutual insurance at... and ask us all about our auto features, like guaranteed repairs, where if you get into an accident and use one of our certified repair shops,
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veterans and their families. two dozen cemeteries closed but they kept mowing the lawn even though they were technically off the clock. jim bitterman has this story. >> we take care of pride of our headstones and the grounds. we want to do this for the men and women that are buried here. these men and women sacrificed their lives for our country. the least we can do is take care of them. >> reporter: in normal time, this area attracts hundreds and thousands of visitors each year. family plan their trips long in advance. but if they didn't see the brief notice on the commission's website or hear about the shutdown ahead of time, they were in for a disappointment. emotions have run high. >> we traveled all the way here
to see this cemetery and we get this. i am never voting for republicans again. ever. >> reporter: and it's not just americans put out by the closings. >> it is a problem between the different parties why should it affect a cemetery? >> reporter: from sweden, he drove his ailing father here to visit the d-day beaches and cemeteries, one of his last wishes which now may not be fulfilled. >> if there's time, it might be a possibility but i doubt it. >> reporter: the shutdown felt around the world has already taken not only an economic toll but an emotional one far out side american borders, jim bittermann, france. >> thankfully that cemetery is now opened but it's little consolation to those shut out by the shameful shutdown in washington. up next, 3-year-old maliki rhodes got a lesson.
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each expanding the influence of our proud university of phoenix network. that's right, university of phoenix. enroll now. we've got a frame waiting for you. short-term thinking, long-term problems in washington and families ever where suffer. here's an example. president obama has made it a goal to expand early childhood education but they are playing defense in washington, not improving or expanding early childhood ed but managing through cuts. the forced budget cuts known as sequesters shut out 50,000 children this year from head start preschool programs. this is maliki rhodes. he has autism.
he's been getting regular speech therapy here in bridgeport, connecticut. he was lucky he did not lose his spot there because of the sequester but when the government shut down, his school shut down, too. he got back to school after a few days because of a private donation. i recently asked arnie duncan about this climate. >> politicians think short term. they think about the next election. they think short term. early childhood education is a long-term investment. >> long term. so few people are focused on the long term and that prevents some parents like melanie, a single mom, from planning long term in her own life. she was worried she'd have to give up her new job as a school bus driver when her son lost his spot. she has a message for congress. >> y'all need to work together, stop, you know, fighting amongst
each other, think about us. think about the single parents, think about the ones that need daycare to take of our children. >> we couldn't agree more. we hope everyone keeps that in mind. secretary duncan, a democrat, recently told me how he loves getting out of dysfunctional washington, similar distaste from a republican that i interviewed this week. former republican olympia snowe. she told me this new class of podium thumping blej rens she calls them and sheryl sandberg, i wanted to leave you with this exchange. >> please raise your hand if you were called boss see as a child. that's great. keep your hands up. please keep your hand up if your brother was called bossy. please raise your hand if you've been told that you're too aggressive at work. please