Day Three: Government Shutdown

President Obama discusses ripple effects of shutdown on American economy.
44:19 | 10/03/13

Coming up in the next {{countdown}} {{countdownlbl}}

Coming up next:



Skip to this video now

Now Playing:


Related Extras
Related Videos
Video Transcript
Transcript for Day Three: Government Shutdown
This is the special -- -- company -- -- CBC news digital special report President Obama. Taking the budget battle on the road this morning he is visiting a construction company in Maryland. Calling on congress to reopen the government and raise the nation's debt ceiling that lobbying effort being taken directly to the American people coming. As the government shutdown is now entering its third day and neither Republicans nor Democrats appear to be willing to budge on their dispute over the president's. Affordable Care Act. Joining us now to talk about headlines this morning as -- political director -- and Washington DC and outside the White House. Mary Bruce -- was there with you why the president -- spaniel. -- the president's trying to take his message directly to the American people he's about to speak. At a construction company nearby here in Maryland. And this is a company that received funding through the Small Business Administration that's the kind of funding that is now. Essentially on hold because the government shut down to the president is gonna highlight this company is an example. Of the benefits of that kind of funding and also to show how companies will hurt. It during this shutdown this is part of a broader effort by the White House to try to show the ripple effects of the shutdown and how. Private businesses and small companies are now going to start to feel the impact now that -- -- -- three. So it's public sentiment that is really driving the message -- -- focus this morning from the White House to -- wanted to ask you what's happening on Capitol Hill. -- an interesting prayers we have the senate chaplain say I'll deliver us from madness here we've had a prayer as punditry and that's about the most consequential thing that's been happening right now on capitol because. Durables done paintings back and forth there are negotiations to speak of and as of now there is no progress -- Rick critic Jeff just -- go to the president now and Merrill. Let's start by. Recognizing three public servants who fight hard every day -- Maryland families and businesses a personal congressman Chris van Holland is there. -- Congressman John -- is there. And we had. The acting head of the Small Business Administration. Jamie -- is there. And I also want to give a big banks to your bosses. This bill and -- for being such gracious host I had a chance to meet them at the White House. Now I know where they got their good looks from it could lead to estimate mom. And bad and they're they're beautiful families and it's I'm so glad to be here and I had a chance to to learn all about the historic. So when their parents brought them from Portugal to America. Almost forty years ago. No one in the family spoke -- -- of -- But that doesn't stop their father Manuel and their mother -- -- from. Having a big -- Believing that if they worked hard they could get ahead. -- even though they've never had any schooling. Maybe their daughters could go to college. Maybe in America you could make if you tried. That's what they believe so they started their own construction company with a pick up truck. At a wheelbarrow. And when. It's a daily and that's -- that turned fourteen. They began to help cleaning tools. Translating documents. And they became the first American -- going to go to college. And after graduation they start their own business and later they bought the family business from their parents. So today. -- -- construction is a sixty million dollar company -- about 250. Employees. And I understand you're opening your -- office at the end of this month. So. This story is what America's all about. You start off maybe you don't have a lot where -- -- to work hard. You put in the time. Opportunities out there. And you're able to pass on an even better life to your family. Your children your grandchildren. And it's good news that after. How hard the construction industry got hit during the recession. -- -- -- -- -- -- -- Remember it was just five years ago that our economy whether -- -- fall. Businesses were shedding hundreds of thousands of jobs every single month. And the recession ultimately cost millions of Americans their jobs their homes. Their savings everything -- worked hard to build. Today. Over the last three and a half years our businesses batted seven and a half million new jobs. Our deficits are falling. Our housing market is healing which means construction is improving. Manufacturing is growing auto industry is back. Americans on pace to become the number one energy producer in the world this year. More small businesses have gotten loans so they can grow and make it -- dislike him always -- With the help of the small business jobs act that I signed three years ago so that's part of what allowed. This company to grow. We're still have a long way to go -- a lot of work to do. Especially to rebuild the middle class or making steady progress. And the reason I'm here is we can't afford. To threaten that progress right now. Right now hundreds of thousands of Americans. Hard -- and Americans. Suddenly aren't receiving their paycheck. Right now they're worrying about missing their -- or their mortgage. Or even make -- make. We can all relate to that imagine that suddenly. You weren't sure whether you're gonna get your next -- -- But all the bills that might be mounting up. Well that's what's happening right now hundreds of thousands. Americans across the -- Companies like this one worried that their businesses are going to be disruptive. Because obviously particularly an area like Maryland Virginia. Where there a lot of federal workers you don't know how that's gonna impact the economy. Veterans. Seniors. Women. They're -- worrying that the services they depend on will be disrupted -- Then. The worst part is this time it's not because of a once in a lifetime recession. This isn't happening because of some. Financial crisis. It's happening. Because of a reckless Republican shut down in Washington. And we've also in the offices. Is locked down. The monuments closed. We've heard about services -- Weeks heard about benefits that are delayed. But the impacts of the shut down. Go way beyond. Those things that you're -- and on television. Those hundreds of thousands of Americans. A lot of whom live around here. Don't know when they're gonna get -- next paycheck and that means stores and restaurants right here don't know -- the -- many customers. Across the country you've got farmers. In rural areas and small business owners who deserve alone but they're being left in the -- right now. They might have an application pending as we speak but there's nobody -- almost process -- The SBA gives a billion dollars. Of loans a month to small business. A billion dollars a month and goes to small businesses all across country right now those can't -- process because there's nobody -- process. Veterans deserve our support are getting less help. Little kids who deserve. A head start. Have been sent home. From the safe places where they learn and grow every single day. And of course their families -- have to scramble to figure out what to do. And the longer this goes on. The worse it won't be. And it makes no sense. The American people elected their representatives. To make their lives easier. Not harder. And there's one way out of this reckless and damaging Republican shut down. Congress has to pass a budget. That funds our government. What no partisan strings attached. I want -- might understand what's happened because sometimes when this gets reported on. Airbag got thanks well you know both sides -- problem Democrats and Republicans they're always argument. So neither -- Behaving properly out on -- -- understand what's happened. The Republicans. Passed a temporary budget. For two months. At a funding level that we as Democrats actually -- his way too low because we're not. Providing help for. More small businesses -- one more for early childhood education doing more to rebuild our infrastructure but we said -- while we're still. Try to figure out this budget were prepared. To go ahead and take. The Republican. Budget levels that -- propose. So the senate passed that -- no strings attached not because it had everything the Democrats want him back to that. Very -- the Democrats want but we said. Let's go ahead and just. Make sure that other people are hurt while negotiations are still taking place. So that's -- -- pass the senate. And we know -- -- not Republicans and Democrats. To vote. In the House of Representatives. For the same thing. I want -- might understand this there are enough Republicans and Democrats. In the House of Representatives today. That if the speaker of the house John Boehner simply let the bill get on the floor. For an up or down vote. Every congressman. Could vote their conscience. The shutdown would end today. The only thing that is keeping the government shut down. The only thing preventing people from going back to work. And basic research starting back up and farmers and small business owners getting -- -- The only thing that's preventing all that from happening right now today in the next five minutes. Is that speaker John Boehner won't even let the bill get a yes or no vote. Because he doesn't want to anger the extremists in his part. That's that's all. That's what this whole thing has about. We've heard a lot from congressional Republicans the past couple days saying they don't want -- shut down. Well there's a simple way to prove it. Send the bill to the floor. Let everybody vote. -- all parents. Send me the bill I will sign it. The shutdown will be over and we can get back to the business of governing and helping the American -- The next. -- -- National parks monuments. Officers. Would all reopen immediately. Benefits and services would resume again. Hundreds of thousands of dedicated public servants. Were worrying about whether -- -- -- pay the mortgage. Or -- the car note. -- are gone back to work right away. So my simple message today is. Call -- vote. -- -- -- Put -- on the floor. Let every individual member of congress make up there -- -- And they can show the American people are euphoric shut down or not. If you're not first -- not your fault vote for the bill if your four shut on you won't vote for bill. -- not to twist my arms but that wave the American people will be clear. About who's responsible for the -- Or alternatively more hopefully. -- be clear that this is something that doesn't make sense and we should go ahead and. Make sure there were looking up for the American people it should be that simple. But as -- said the problem we've got. Is that there's one faction. Of one party in one half of one it branch of government. That's so far has refused to allow that yes or no vote unless they get. Some massive partisan concessions. In exchange. -- -- -- -- -- -- In exchange for knowing what everybody. Else agrees is necessary and they won't agree to end the shutdown until they get their way. And and you may think I'm exaggerating but. Just another day one Tea Party Republican. Called the idea to shut down wonderful. Another sad that a -- is exactly what we want. Well they got exactly what they want. -- they're trying to figure out how to get out of it. Just yesterday -- house Republican said I'm quoting here -- -- -- make sure. People understand I didn't make this up. One house Republicans said we're not going to be this respected. We have -- get something out of this and I don't know what that -- this. -- -- -- -- we're not going to be -- respected. We gotta get something out of this and and I don't know. What -- minutes. About that. You have -- gotten the opportunity to serve the American. There's no higher honor the -- -- gotten them the opportunity to help. Businesses like best. Workers like -- -- the American people aren't in the mood to. Give -- goodie -- to go whether. What you get is our intelligence professionals being back on the job. What you get is our medical researchers back on the job. What you get. Our little kids back in the head start. What you get our national parks and monuments open again. What you get -- the economy not stalling but continuing to grow. What do get our workers continuing to be -- and that's why you. That's what you should be asking for take a boat stuff that's -- -- -- -- -- -- If -- in this respect it is because of that -- -- attitude you've got. You deserve to get some them for doing your job. -- body -- does does their job. Right. You don't if your work done here. In the -- that you just stopped and said -- a lot. I want to get something but I don't know. I don't -- -- -- among debt but. I was gonna stop working until I guess I ever address avenue are shut down -- hopeless. Until I get something. Does because the deal -- you -- gotten. -- You've got a job. You're getting -- paycheck. And so you also are getting the pride of doing a good job. And contributing to business and looking -- or your fellow workers that's what you're getting. Shouldn't be any different for member congress. Now. Unlike past -- I want to make sure nobody understands this -- again sometimes. The tenants say well both sides are all. This one has nothing to do -- deficit or spending or budgets. Our deficits are falling at the fastest pace in sixteen years. We've cut the deficit in half since I took office. And some other thing the Republicans are asking for right now would actually. To our deficits. Service. So this is not about spending and this is -- about fiscal responsibility this whole thing is about one thing. The republic an obsession. -- dismantling -- Affordable Care Act and denied affordable health insurance to millions of Americans that's all this has become about. That's they have to be the only thing that unites the Republican Party these days. Through this whole fight. They said the American people don't want Obama cares so we should shut down the government. To repeal. Or delay. But here's the problem that the government's now shut down. But Affordable Care Act is still open for dozens. So they're not even accomplishing what they say they want to accomplish. And by the way in the first two days since the new marketplace is basically big group plans that we've set up first today -- they open. Web sites where you can compare purchase new affordable insurance plans maybe get tech tax credits to -- -- cross. Millions of Americans have made it clear they do want help insurance. More than 66. Million people visited. The website healthcare dot -- the day it opened nearly 200000. People picked up the phone and called the call center. In Kentucky alone. The state Friday -- when Kentucky's. So solid you know I know they weren't -- for many. -- -- nearly 111000 people. Applied for new insurance plans in the first two days just in one state Kentucky's. And many Americans are finding out when they go on the web site that they'll save a lot of money. Or get health insurance for the first time. So. Mike I would think that if in fact this was going to be such a disaster that the Republicans say it's going to be. There was going to be so unpopular they would have to shut down the government they could wait. Nobody show any interest -- be like two people on the web site. You know. Everybody would then. Vote for candidates who want to repeal it. It's not as if Republicans haven't had a chance to debate the health care law if passed the House of Representatives -- pass the senate. The Supreme Court ruled -- constitutional you remember all this. Last November voters rejected the presidential candidate. That ran on a platform to repeal it. So. The Affordable Care Act has gone through every single democratic process all three branches of government. If the wall -- It's here to stay. I've said Republicans if there are specific things you'd think can improve. The law to make it even better for people as opposed to just getting at and -- point five million people without health insurance unhappy to talk to you about that. But. A Republican shutdown won't. Change the fact that millions of people need health insurance. And that the Affordable Care Act is being implemented the shutdown does not change that. All -- shut down is doing is making it harder for ordinary Americans. To get -- and harder for businesses to create jobs at a time when our economy is just started to gain traction again. You've heard Republicans saying that obamacare will hurt the economy but the economy has been growing and creating jobs. The single greatest threat to our economy and for our businesses. Like this one. Affordable Care Act if -- and willingness of Republicans in congress to stop re fighting. They settled election or making the demands that have nothing to do with a budget. They need to move on to the actual business of governing that's what we'll help the economy that's what will. Grow the economy that's what we'll put people back to work. And more than that house Republicans need to stop careening from one crisis to another. Everything that you have you noticed that. Since -- -- and they've taken over the House of Representatives. We have one of these crises every three months. Have you noticed. And you keep bumping -- while this government -- that I can do this again. And then they do it again. I know you're tired of it. I'm tired of it. It doesn't mean that the wrong on every single issue. I've said I'm happy to negotiate with the on anything. I don't think any one party has a monopoly on wisdom. But you don't negotiate by putting a gun to the other person said. Or worse yet by. When the gun to the American people said by threatening to shut down. And by the way even after congress reopens your government. It's gonna have to turn around very quickly and do something else and that's pay America's bills all of -- spent little time on this it's called. It's something called raising the debt ceiling and it's got a lousy name so a lot of people -- Baghdad -- I don't think we should raise our debt ceiling because if it -- Sounds like we're raising our debt. But that's not what this is a back. It doesn't cost taxpayers a single -- It doesn't grow our deficits by a single -- it doesn't allow anybody to spend any new money whatsoever so it's not something. That raises our debt. What it does is allow the US treasury. The US government. To pay the bills that congress has already racked up. What you think about this. If you go to a restaurant order a meal eat it maybe -- -- -- They get to last one. -- -- And then you look at the tab it's pretty expensive. And you decide I'm not gonna pay the bill. Well you're not saving money. You're not being formal. Just let me. If you buy -- house. And you just saw it and this month -- I'd rather go on vacation somewhere. So I'm not gonna pay my mortgage. You don't just save yourself some money. Here is gonna get -- closed -- So you don't save money by not paying your bills. You don't reduce your debt by not paying your bills -- -- going is making yourself. On reliable and hurt your credit right. And he'll start did most phone calls -- -- notice in the mail. And the next time you try to borrow. Some I've -- -- say -- -- if you don't pay your -- -- deadly. Well the same is true for countries. The only thing that that the debt ceiling does is to let. The US treasury pay for what congress has already bought. That's why it's something that has been a routine. Traditionally it's not it's not a big deal congress is -- at 45 times since Ronald Reagan took office. It was just cover routine part of keeping the government run. The last time the house Republicans. Flirted whatnot raising the -- -- back in 2011 -- remember this. Our economy took a bad hit our country's credit rating was downgraded for the first time. Just like you'd be downgraded to -- mortgage. This time they are threatening to actually force the United States to default. Audits have obligations for the very first time in history. An ideal leader John Boehner and and then Mitch McConnell and these other problems -- we don't want to fall. But. Everybody knows it's written about and all the papers that their basic areas. -- of the shutdown doesn't work. -- we are going to try to get. Some extra concessions out of the president will put like a long laundry list all the things that we want that we can't get passed on our own and we don't get it. We'll tell them we don't. We we won't vote. Pay at the country's bills. -- of the country to -- I'm just making this up -- minutes it's common knowledge. Every reporter knows it. And I want you to understand the consequences of this as reckless as they government shut down its. As many people as being as are being hurt by a government shutdown. Economic shut down. That results from default. Would be dramatically worse. In a government -- Social Security -- still go out on time. In an economic shut down if we don't raise the debt ceiling. They don't -- -- time. In a government shutdown disability benefits still arrive on time in economic shut down. They don't. In a government shutdown millions of Americans not just federal workers. Everybody faces real economic hardship. In an economic shut down. Falling pensions and home values. And rising interest rates on things like mortgages and student loans. All those things risk -- putting us back into a bad recession. Which will back this company and those workers and all of you. That's not. That's not my analysis that's. Every economist. Out there is saying the same thing we've never done it before. And you know the United States -- the center of the world economy so if if we screw up everybody gets screwed up. The whole world. Will have problems. Which is why generally nobody's ever thought to actually threaten not to pay our bills. It would be the height of irresponsibility. And that's why said this before amid -- repeat. There will be no negotiations over this. The American people are not pawns in some political game. You don't get that the man. And some ransom in exchange for keeping the government running you don't get to demand ransom in exchange for keeping the economy running. You don't get that demand. Ransom for Dolan. -- most basic job. And the -- that the Republicans in congress heed the warnings. Not just of me here Democrats like Chris job in the warnings of the chamber of commerce. And CEOs and economists and a whole lot of Republicans outside of congress. They're all saying do not do this. They're also in the congress. Do your job. And the sooner you do your job the last -- -- -- to our economy and the businesses like this one. So pass a budget and the government shutdown. Pay our bills for -- economic shut down. Just vote. And the shotgun and you should -- it today so we can get back to growing this economy. -- jobs and strengthening our middle class. Well well it closed just by sharing a story I heard about getting ready to come here today. Many -- you -- you know what. Two years ago a -- factory next to -- reasons. Main equipment storage facility caught fire. And most of the company's equipment was destroyed causing millions of dollars of damage. But even while the fire was still -- Dozens of employees rushed over to the facility and try to save as much as they put some of -- were probably there. When they finished cutting fire lines and spraying down the perimeter. Of their own property they went over to help their neighbors. And afterwards even though all the employees here at -- -- are on salary even though the company had just taken a big financial hit. The dollar -- -- and Natalia paid everyone over time. And along with -- check and they included a personalized note saying just how much they appreciated. The efforts of the workers. And Sebelius said. Everybody says the biggest asset to a business is employees. Some people mean -- some people don't we actually don't. So this company right here is full of folks. Who. Do right by -- -- They don't try to see if -- -- Work every angle. They don't. -- about each other. They'll try to undermine each other. -- -- -- -- -- -- You -- and you look out for one another when somebody gets knocked down -- help them back up. You don't ask what can you get out of -- Because you know that success doesn't depends. On want to -- it depends on all of you working together. -- America's no different. I see that same spirit in so many cities and towns that -- all across the country. Is alive and well. All across the country. -- lobby while in this community or restaurants and businesses are rallying around irregulars. And they're looking out for all the dedicated public servants have been furloughed you've been reading stories about restaurants are saying you know what if -- -- -- on -- come on. We'll give your bird. We'll give -- -- -- help yeah. Anti American ideal. Says. We're working together. Look -- out for one another. Meeting our responsibilities are doing our jobs. Thinking about future generations. And that's why I believe ultimately reason and common sense will prevail. That that spirit at some point will. Infiltrate. Washington as well. Because I think the American people are so good and so -- They're gonna get better behavior from the government the -- And will once again make sure this country where you can make it right. So thank your -- god bless you got busted I -- my. The president in the crowd fired up outside of a construction company in Maryland and Louise construction. That was the backdrop of the White House wanted to use to illustrate the impact that the shutdown has had on companies -- Americans. ABC's Mary -- is outside the White House along with our -- director Rick Klein this scenario DC bureau in -- area let's start with you is this the tactic now the White House is focusing on taking this. Public support building public sentiment. Absolutely of the political impasse continues the White House is focused more on trying to drum up public support against what the president now calls the Republican shut down. Trying to not only point the finger Republicans up on Capitol Hill but to do so in a very public way hoping that some of that pressure from the public. May help to sway Republicans to finally blinked and go ahead and pass a clean bill to reopen the government. And Rick the president said in that speech rent their house speaker Boehner is the only thing keeping the government shut down. I -- find one individual and one individual only for this. That's right it. And I'm tempted to say because with senate sort of ties before that these attempts at public shame on -- an elected official rarely work. The reason though then this may be an exception is we have already seen Republican moderates -- we've seen them. Expressed public discomfort with the course that they are on President Obama is trying to tap into that and to exacerbated because he knows. The only thing they can move speaker -- office position is the feeling that he's no longer represented his members so you can get Republicans that the only -- to feel the heat to pass. Eight clean extension of government funding. That's the only way that he's gonna change this it it stagnated situation. And Rick other collection of those moderate Republicans how many are we looking at right now because I know that that was the group that speaker -- addressed yesterday. Essentially saying trust me. Our current count hasn't it at eighteen house Republicans who say they are now willing to go on the record and say we -- to just continue -- for the government essentially. Waive the right what the white -- Others -- -- this somewhere in the low twenties it's not much more than that camp that is enough to tip the balance of the house the president is right when he says the votes appear to be there. To have -- clean extension of government funding for at least three months like this and this -- But there's a difference between going on record -- do that and actually -- -- house speaker John Boehner to go ahead and into the procedural vote. Vote against the party line would be inactive -- betrayal and it is the last resort for many of these numbers so it's not clear. That they will actually play this out on the floor as they try to move speaker Boehner on this but the fact that there are cracks in the armor is -- -- the president is very aware of. Mary last night the White House -- and an invitation to congressional leaders. To have a meeting about 530 yesterday in the media understand lasted about ninety minutes what was the White House response to that. That's our congressional leaders met here at the Oval Office with the president but they -- more divided than amber -- it's now day three and there is. No deal in -- not even a glimmer of a deal no progress at all. So you know we saw Republican speaker Boehner come out here after the meeting -- he blasted the president for continuing to refuse to negotiate. But he did say it was a polite conversation. And we -- the Democrats come out and slammed the Republicans. For this continued impasse blaming them for the fact that they will not go ahead and stop using obamacare -- a negotiating tool and go ahead. And pass a clean bill to fund the government so right now there's absolutely no and -- the. There's a lot of focus a lot of emphasis on the rhetoric that is being used -- -- president actually issued some of his own today in that speech that he dismayed at -- construction company in Maryland. I want to play a bit of a speech just a little bit earlier on where he was making reference to a statement that a Republican congressman had given an interview yesterday. Think back what -- one. Now they're trying to figure out how to get out of it. Just yesterday one house Republican said I'm quoting here because -- want to make sure. People understand I didn't make this up. One house Republicans said we're not going to be this respected. We have to get something out of this -- -- Don't know what that -- this. Rick who was that that the president was referring to. Back quote belongs the congressman marlin Stutzman he's a Republican from Indiana part of the Tea Party wave. Of 2010 relatively young and junior member but -- been at the forefront. Of these efforts to make sure that obamacare -- funded -- weakened as part of this and and let me tell you -- we've been calling his office for clarification. We're getting busy sales -- -- a busy signal these days with modern phone technology but you can imagine what the -- over congressman such -- officer doing. This quote encapsulates what the White House -- as the Republican position right now that they are so far out there entrenched in this that they. Don't even know what they're fighting for any -- -- fact you have more Republicans think we don't know what the end game is here so this appears to be one of those classic Washington gaps where you make the mistake of telling the truth. And in this is one of those issues in fact even alluded to the fact that that perhaps the reason why we're not able to get through is because of the shut down that a lot of -- out has spent. Either reduced or eliminated to congressional offices as well advancing various reports it. Some senators themselves -- -- answering their phone calls as opposed to action means that handle that Rick I want to ask you about this if you look at congressman Stutzman his comments. And you look at senator Ted Cruz and some of that promise that he has been criticized for by members of his own party is that the biggest hurdle -- what speaker Boehner is facing right now. Here's my read on it -- is that there has to be offering here Republicans have fought too far and too long to this actual -- capsule surrender. I can't remember that ever happening in Washington where you fight something out and it once -- says okay you got me it's over that's not how it works you have to find some kind of -- concession. That you're able to come back and say look this is what I got out of despite this is the reason that we shut down the government for a period of time as the reason that we. Decided to go to the mat over this issue but the president and Democrats if you're unlikely to willing to be -- to get that the fact of the president's giving this speech saying he's not -- negotiate he said it again. In the in the meeting with congressional leaders last night he there isn't that kind of relationship there -- -- that kind of basis for understanding where the house speaker can go to the president under the table and say listen. Give me something here the president doesn't want to give him anything and that's one of the reasons that there is no end in sight as Mary said to the stand -- Rick over talking obviously in day three -- -- -- -- bringing this is such as well in the White House for reaction to this but as far as temperature in DC right now. As at October 17 deadline is fast approaching when the nation will reach its debt ceiling limit. That is an issue that is being sort of it. Underlined and yet now highlighted as we're getting into this that -- into this showdown shut down on into the third day. Is that being more and more closely tied to this budget impasse. Very much the fact that they -- the government shut down as moving into that negotiating window may be up against the deadline itself. Means they eat you there's a growing appetite to take care of full -- -- not take -- As part of that -- negotiation and critical to watch -- you heard the president call on the chamber of commerce or call out the chamber of commerce is supporting this. That dynamic the business community against the Tea Party there's going to be a fight for the soul of the Republican Party to see if cooler heads can prevail on that because you've got some interest to say. Debt ceiling not that big -- deal that's the tea parties that sense by and large they knew that the business sense which is this is a very big deal if you don't do this calamitous things happened so which side wins out in speaker Boehner is mind it's going to be very key. And Mary when asked you about that because as -- pointed out the outside the White House has been making this very public sentiment building effort. -- -- -- the debt ceiling become now one of the key issues. Absolutely as Rick mentioned that's now the deadline and everyone is looking to an especially if Republicans may try. To lump these two together the president is making an all out public effort to really warned of the consequences of that you think it shut down is bad enough. And refusing to raise the debt limit really would have absolutely dire consequences on the economy and that's something that this White House is trying very hard to -- to get across publicly -- that people understand what's really at stake here economically. I also ask you have very briefly at -- there was a moment that was caught by senator Mitch McConnell minority leader and senator Rand Paul. As senator McConnell was getting rich -- interview and there was an exchange of words back and forth when a play that and get your response -- that. -- I'm all wired up here. -- -- rumored in the room come from. Music. I don't think people tested we won't negotiate I think it's awful but to say that. And understand our. -- I don't know bush. -- I think we keep saying we wanted to be -- that we. Now were wounded. -- -- -- no we don't want to be here it's. Are -- I got to ask you is the game plan being created. Essentially on a hot Mike right there. I love that piece of video on so many levels first -- -- the window into how things really operate don't. Don't the meeting to think about its full -- have talking points full -- talk about talking points before they -- -- -- -- it's on cable news and so much of this fight. Is being fought out over the airwaves this battle for public perception the other intriguing thing here is that Rand Paul -- Mitch McConnell actually rivals. They they represented the same state in the senate but they do not come from the same branch of the Republican Party Mitch McConnell wanted Rand Paul's -- to win that senate seat Rand Paul has a very tenuous relationship with Mitch McConnell the fact that they are conspiring -- talking points is intriguing and probably an encouraging sign of -- Republican to know. That those two parts of the Republican Party are still working together in cahoots as a war. It is certainly you know it is very interesting to see that kind of behind the scenes dynamic of how the government actually works. Mary any reaction -- -- White House from that. Not yet to that yet today we know that Jay Carney the president's spokesman will be a briefing shortly here at 1230 today and I suspect that something that may be coming up the that they haven't acted as a public reaction to that just yet. RN of course who will be waiting to see and watching that very much so with your eyes ABC's neighbors outside the White House political director -- in DC. Both of you thank you so much we appreciate the time we have a complete report on For -- on -- that's our New York with this special report.

This transcript has been automatically generated and may not be 100% accurate.

{"id":20465854,"title":"Day Three: Government Shutdown","duration":"44:19","description":"President Obama discusses ripple effects of shutdown on American economy.","url":"/US/video/day-government-shutdownabc-digital-special-report-20465854","section":"US","mediaType":"default"}