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Government Shutdown; Five Most Outrageous Shutdown Numbers; Business Groups not Happy with Shutdown; Senate Rejects Latest House Bill

Aired October 01, 2013 - 09:30   ET

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

CAROL COSTELLO, CNN ANCHOR: All right. Welcome back to the NEWSROOM.

We want to take you live to Capitol Hill because the Senate is now back in session. On the agenda, a decision on the House's proposal to talk it out in a conference with their Senate colleagues. They're now performing a roll call to reject that House bill. Let's listen.

UNIDENTIFIED MALE: Mrs. Boxer (ph)?

COSTELLO: OK, they're just starting their roll call now. We'll check in a little later. Actually, this could be setting the stage for yet another standoff. The Senate majority leader, Harry Reid, you hear him speaking now in the background, he vows he won't agree to a chat until the House presents a funding bill without any Obamacare changes. Again, we'll take you back when some action happens in the Senate.

When it comes to those House members, though, my next guest calls them, quote, "frauds on the hill who are targeting President Obama." Roger Simon is the chief political correspondent for Politico. He now joins me from Washington.

Good morning.

ROGER SIMON, CHIEF POLITICAL CORRESPONDENT, POLITICO: Good morning, Carol.

COSTELLO: Care to make a prediction on how long this partial shutdown will last?

SIMON: I was here for the last shutdown and I'm more pessimistic this time. I think there's sort of a meanness of spirit that has crept into our politics and into our daily lives that's become the new normal. And people are going to say, well, 800,000 people are out of work. That's OK. I've got my job. Let's just keep it this way.

COSTELLO: Really, you've become that cynical?

SIMON: Well, you know, I don't think it's cynical this time. I really think it's realistic. I mean look at one of the few things this House has actually done. Week before last, they passed a bill to cut $40 billion from food stamps. Food stamps! I mean, do we really need to use food as a political weapon? That makes me pessimistic about who we're dealing with. COSTELLO: You write in your piece last night, you wrote, quote, "we live in a time when outright buffonnery passes for statesmanship, when a 21-hour non-filibuster filibuster by Senator Ted Cruz leads not to general hilarity, but serious consideration of how it will help Cruz run for president in 2016." Now, in fairness, many conservative Republicans admire Ted Cruz for doing just this because they're afraid that Obamacare will affect their lives adversary.

SIMON: They do. And you use the use - you use the word fairness, and that's a proper use - proper word to use. Nothing would please me more than to say, Republicans are partly guilty, the Democrats are partly guilty. Come on, you guys, just hug it out. Let's solve this thing. But rarely have I seen an instance when one party is so much more responsible, guilty, than the other. You've screened (ph) right --

COSTELLO: You know what - you know what Republicans out there are saying right now? You're just partisan and Politico is a liberal blog.

SIMON: I'm not partisan. I am a columnist. I'm allowed to have opinions. I've run columns attacking the president. But I don't have to prove my journalistic, you know, instincts and credo by attacking a side that shouldn't be attacked. The extreme right wing of the Republican Party has taken that party hostage, at least in the House of Representatives. The speaker of the House, John Boehner, is a decent man. He's not an extremist. But he's a weak man. The old phrase comes to mind, I could carve a better man out of a banana. He is not going to challenge the extremists in his own party because he wants to hang on to his job.

COSTELLO: But -

SIMON: One - yes.

COSTELLO: But wouldn't you argue - I mean there is a Democratic president in the White House and the Democrats still control the Senate. So why are they powerless, you know, against this small group of what you call extremists in the House of Representatives?

SIMON: Because all they can do is block things if you only control one house of Congress. We are a system when both houses of Congress have to agree to pass things, including a budget. And this isn't the dilemma we are in. The Republicans are saying, give into us because we don't want -- we would rather shut down the government than extend health care to 11 million people. That's our position. The other side, the Democrats, should accept that as the starting point and then we'll let people go back to work. The Democrats are saying, Obamacare was passed by Congress, signed by the president, upheld by the Supreme Court. He ran on it a second time in 2012 and was re-elected by 5 million votes. This is the law. It's operating today. That is the flaw in the Republican thinking.

COSTELLO: Right.

SIMON: Even shutting down the government does not shut down Obamacare. So what are they accomplishing? COSTELLO: Well, we'll see if they accomplish anything today. Roger Simon, thanks for sharing your thoughts. And by the way, President Obama will be making another statement later this afternoon, 12:25 Eastern Time in the Rose Garden. Of course, we'll carry that live. Roger Simon, many thanks.

Still to come in the NEWSROOM, it's the first day of the government shutdown. So, which of these do you think is the least popular among Americans right now? Root canal, head lice, Brussel sprouts or Congress? The answer, next.

(COMMERCIAL BREAK)

COSTELLO: Washington, we have a problem. NASA overcame the force of gravity, beat the Russians in the race to the moon, landed rovers on Mars, but they are no match for a high-stakes game of chicken. With today's government shutdown, most of the U.S. space program shut down. CNN business anchor Christine Romans has more on what else is affected by this partial government shutdown.

Good morning, Christine.

CHRISTINE ROMANS, CNN BUSINESS ANCHOR: Good morning. Deep sighs, Carol, deep sighs here.

Have you seen NASA TV? I want to show you what NASA TV is showing. No cool space walks to see today, just a message saying on its board, NASA TV is unavailable due to a lapse in funding. That's what you see. Oh, Carol, it's so sad.

And that brings me to the five most outrageous numbers of this government shutdown. Let me start with the number 55. Happy birthday, NASA. It's your 55th birthday. But there will be no cake, Carol. Almost everyone was sent home, except for a few people to man mission control.

Here's another number, Carol, 3,346. That's what a typical member of Congress will take home in his or her paycheck this week. That's right, they're still getting paid, even though they shut down the government and didn't do their jobs. By the way, that's four times the typical worker, Carol.

Here's my number three. Outrageous number, number three. Ten. As in 10 percent. That's the Congress approval rating. For some context, during the Watergate scandal, Richard Nixon's approval rating was 24 percent. Root canals, Brussels sprouts, head lice, and colonoscopies have higher approval ratings than you Congress, America.

Here's my number - number four, ready, 24. Carol, it's the number of potential bridezillas in D.C. The government says it's working with 24 couples who were planning October wedding events on the mall, on the National Mall and monuments. Couples have been informed those events can't take place if the government stays shut down.

And my most feared number, the most outrageous number, number 16. That's the number I fear the most. That's the number of days until the U.S. Treasury, Carol, doesn't have enough money to pay all of its bills. A government shutdown, what we see right now, does not halt social security payments but a debt limit crisis could halt Social Security, veterans benefits, Medicare, Medicaid reimbursements. That's the number - that's the number that I find very outrageous, Carol.

COSTELLO: Well, there could be kind of a silver lining. Dare I say it? Maybe so many Americans will be angry about the partial government shutdown that when the debt ceiling thing comes along, you know, and they have to -- maybe they'll get together and they'll realize they can't play around with the debt ceiling and they'll vote to raise it, as they always have through the history of America.

ROMANS: OK, Carol, you just solved the problem. Pick up the phone. Can you call - call somebody. Make that happen.

COSTELLO: I'll do my best. Christine Romans, thanks so much.

Still to come in the NEWSROOM, some of the nation's biggest trade and special interest groups fired off a letter to Congress. Their biggest concern about the first shutdown in 17 years will affect your bottom line. We put -- that's what they say. We'll have that story next.

(COMMERCIAL BREAK)

COSTELLO: Republicans in Congress could feel the wrath of one of the most powerful special interest groups in the nation because of this partial shutdown -- the U.S. Chamber of Commerce. I'm not talking about your small town chamber of commerce, but the U.S. chamber, a group that gave $30 million to Republican politicians in the last election cycle.

And it is not happy with the GOP today. We know that because it wrote a letter that reads, in part, "It is not in the best interest of employers, employees or the American people to risk a government shutdown that will be economically disruptive and create even more uncertainties for the U.S. economy."

Chuck Konigsberg is with the National Electrical Manufacturers Association, one of the groups that signed the letter. He is also a federal budget expert who served as assistant director of White House Office of Management and Budget during the 1995 government shutdown.

Wow, that was a mouthful. Welcome.

CHUCK KONIGSBERG, V.P., STRATEGY & POLICY, NATIONAL ELECTRICAL MANUFACTURERS ASSOCIATION: Good morning.

COSTELLO: Good morning. So you're a double whammy. Care to point a finger of blame this morning?

KONIGSBERG: Well, I don't think the blame is important. What I think is important is ending the shutdown as quickly as possible. It has very serious economic consequences and we're also facing a debt ceiling crisis on October 17th, which is even more dangerous to the economy. COSTELLO: Ok. Before we go on with the question and answer, just bear with me. Because we're going to take our viewers live to Capitol Hill right now to listen to the Senate voting down the most recent House bill to end this thing. Let's listen.

UNIDENTIFIED MALE: Schumer, Stabenow, Tester, Udall of Colorado, Udall of New Mexico, Warner, Warren, Whitehouse, Wyden. Mr. Merkley -- aye, Mr. Manchin -- aye.

Senators voting in the negative: Alexander, Ayotte, Boozman , Burr, Chambliss, Coats, Coburn, Cochran (ph), Collins, Corker, Cornyn, Crapo, Cruz, Fischer, Flake, Graham, Grassley, Hoeven, Inhofe, Isakson, Johanns, Johnson of Wisconsin, Lee, McConnell, Moran, Murkowski, Paul, Roberts, Rubio, Scott, Toomey, Wicker. Mr. Hatch, Mr. Hatch, no. Mr. Chiesa, Mr. Chiesa, no. Mr. Barrasso, Mr. Barrasso, no. Mr. Shelby, Mr. Shelby, no. Mr. Sessions, Mr. Sessions, no. Mrs. Shaheen, Mrs. Shaheen, aye. Mr. Blunt, Mr. Blunt, no.

COSTELLO: All right, we're going to step away from the drama in the Senate chamber and continue our conversations with Chuck Konigsberg, he is -- was an assistant director of the White House Office and Management during the '95 shutdown.

So in listening to all that's going on this morning, I mean does it feel the same in '95? Does it feel worse? How do you characterize this?

KONIGSBERG: Well, 1995 was pretty bad. It was the longest shutdown in U.S. history, lasted for three weeks. This one, this one feels that it could be as bad, because of the level of gridlock that is currently in place right now.

COSTELLO: Roger Simon from "Politico", he just said this feels different from '95 because he said that legislators are meaner. I mean there is no -- there is no cooperation between the two sides at all. Do you agree with that? I mean no wiggle room at all.

KONIGSBERG: I agree with the comment about the atmosphere being meaner. I started working on the Hill in the 80s. I worked on both sides of the aisle for Democrats and Republicans. And in the 80s and 90s, there was an ability for both sides, and no matter how difficult the issue, to come together and arrive at compromise and solve problems.

Now there is such an ideological bent to many of these issues that it's difficult to overcome the gridlock.

COSTELLO: Is it more that politicians want to keep their jobs and they're thinking selfishly or is it that politicians need to please their constituents to keep their jobs and because their districts are, you know, set up at an ideological way, let's say, they have no choice.

KONIGSBERG: Well, I think a lot has to do with gerrymandering of districts where many Republican members, instead of focusing on the general election, where people tend to tack towards the political center are more worried about primary challenges from the far right. And I think that's -- that's part of what's going on here.

Also, fund-raising is an issue. Members don't spend nearly as much time in Washington working together as they did in the past. They spend a great deal of time running back home, raising money for the next elections, so they don't get to know each other in the same way that members of Congress used to.

COSTELLO: Ok. Let's look at the bigger picture, because you were one of the people who signed this letter from the U.S. Chamber of Commerce saying "Please don't do this, Congress. Please don't shut down the government because it is going to have far reaching effects."

In your mind, how could this affect the economy?

KONIGSBERG: This is very damaging to the economy. First of all, you have 800,000 furloughed federal workers, all of whom are consumers and aren't being paid. You have contractors who are not being paid. And then we're facing, of course, in two weeks the debt ceiling crisis which is an even greater threat to the economy because you face the prospect of the treasury not being able to honor U.S. financial commitments. So there is a double whammy happening at nearly the same time.

COSTELLO: Chuck Konigsberg, thank you so much for joining us this morning. We appreciate it.

KONIGSBERG: Happy to be here.

COSTELLO: We'll have more on the government shutdown, but first, a check of other "Top Stories" at 55 minutes past the hour.

Five hikers have been killed in a rock slide in central Colorado. Officials say rain may have created unstable conditions. Crews did rescue a 13-year-old girl from the rock slide. She was flown to Children's Hospital in Denver, her condition is unknown.

In Chicago, police are still looking at how an empty commuter train crashed into another train carrying passengers. More than 40 people were hurt. Investigators want to know if someone tampered with the first train. The collision also delayed the morning commute.

More job cuts at drug maker Merck. The company announced today it will slash more than 8,000 jobs; that's in addition to the 7,500 cuts previously announced. Merck's CEO says the cuts are intended to make the company more competitive and drive innovation. The company hopes the cuts will help it save about $2.5 billion a year by 2015.

COSTELLO: Nearly $500,000, that's how much a New York woman is accused of scamming a non-profit benefiting Boston marathon bombing victims. Police say Andrea Goss claimed she was injured in the bombings. Officials began investigating after getting a tip she was not even in Boston at the time of the marathon. They say much of the money has been recovered.

The next hour of the CNN NEWSROOM after a break.

(COMMERCIAL BREAK)

COSTELLO: Good morning. I'm Carol Costello. Thanks so much for joining me.

Let's head right to Capitol Hill because the Senate is now about to reject the latest House vote to keep the government up and running because, of course, it includes Obamacare -- defunding it in some way so the government remains partially shut down this morning.

Erin McPike is in Washington to tell us more about how this is affecting the whole country. Good morning, Erin.

ERIN MCPIKE, CNN CORRESPONDENT: Good morning, Carol. Well I am standing in the middle of several federal buildings. Behind me and to my left you'll see some Department of Transportation buildings. Well, a lot of people are coming around this area and talking about what's been happening to them. One guy just came out of the building right in front of me, said he came to work this morning, just to sign a furlough notice. Paperwork that says he promises not to work while the government is shut down. And he was furious.

So he came out and said he's going to walk five blocks down that way to march right into the Capitol and talk to his Congressman because he's so angry about it.

Now, contractors for the FAA have said that they don't know what's going to happen. They said it's very disorganized.