Sen. Ted Cruz on shutdown: This is all about 'political, saving Chuck Schumer's rear end'
By CNBC Television
Key Concepts
- Government Shutdown
- Air Traffic Controllers
- TSA Workers
- Schumer Shutdown
- Obamacare Subsidies
- Affordable Care Act (ACA)
- Continuing Resolution (CR)
- SNAP Benefits (Food Stamps)
- Performative Art in Politics
- Political Extortion
Government Shutdown and its Impact
The discussion centers on a government shutdown that has lasted for 29 days, with significant implications for federal workers and public services. Senator Ted Cruz of Texas, Chairman of the Commerce Committee, has introduced the "Keep America Flying Act" to ensure air traffic controllers and TSA workers receive pay during the shutdown. These workers are experiencing their first day without pay, highlighting the tangible consequences of the shutdown.
The "Schumer Shutdown" and Democratic Strategy
Senator Cruz labels the current shutdown as the "Schumer shutdown," asserting it is "stupid" and occurring for "literally no reason." He argues that the shutdown is driven by Senate Majority Leader Chuck Schumer's political problem, particularly in New York, where he faced pressure from the left-wing base of the Democratic party after allowing the government to stay open in March. The shutdown, according to Cruz, is a tactic for Schumer to appease this base and signal his opposition to Donald Trump.
Key Points:
- Republicans have voted 13 times to open the government and pay federal workers.
- Democrats have consistently voted against these measures, advocating to keep the government shut down.
- Cruz predicts the shutdown will continue for another week or two, with some retiring Democrats potentially being the first to break ranks due to insulation from primary elections.
- He characterizes the situation as "performative art" rather than genuine public policy, driven by political self-preservation for Chuck Schumer.
Obamacare and Premium Increases
The conversation shifts to the Affordable Care Act (ACA), commonly referred to as Obamacare, and its impact on health insurance premiums. A study highlighted in an op-ed in the Journal by the Paragon Institute is cited to break down the causes of premium increases.
Data and Findings:
- 83.3% of the base premium increase is attributed to the Affordable Care Act itself.
- 13.3% of the increase is due to other factors in 2026.
- 3.3% of the increase in premiums this year is due to the expiration of the COVID credit.
- Only 3.3% of soaring costs for individuals are due to the expiration of Obamacare subsidies.
Senator Cruz recounts his 2013 fight against Obamacare, including a 21-hour filibuster, where he predicted skyrocketing premiums and unaffordable health insurance. He notes that even the Washington Post, not considered a right-wing publication, has admitted that the ACA is "not remotely affordable" and has caused premiums to skyrocket.
Economic Argument: Cruz applies basic economic principles: to lower prices, one needs either increased supply or decreased demand. Since demand for health insurance is steady and growing, the only way to lower prices is to increase supply. He argues that Obamacare artificially restricts supply by limiting the options health insurance companies can offer consumers, leading to price hikes.
Proposed Solution vs. Democratic Approach:
- Cruz's Solution: Expand consumer choices and allow individuals to purchase the health insurance policies they need. This increased competition, he believes, will lower prices.
- Democratic Solution: The "Obamacare subsidies," which Cruz describes as "direct payments to a handful of giant health insurance companies" and "corporate welfare on steroids." He points out that since Obamacare's passage, the profits of the largest health insurance companies have more than doubled. He criticizes Democrats for telling working people their insurance costs will continue to rise while simultaneously giving billions to insurance companies that have doubled their profits, forcing people to buy a product they may not want.
The Impact of the Shutdown on Air Travel and Public Safety
The discussion returns to the immediate consequences of the government shutdown, specifically on air travel and public safety. While acknowledging the desire to pay essential workers, the idea of paying them piecemeal is questioned.
Concerns Raised:
- Gary Con, former NC Director: Suggests that paying workers piecemeal will prevent the government from being fully reopened, as it removes the pressure point needed to force a resolution.
- Senator Cruz's Counterpoint: Highlights the "reckless shutdown" causing "real harm."
- SNAP Benefits: On November 1st, SNAP benefits for 40 million Americans will not be distributed. Democrats voted against paying for these benefits.
- Federal Employees: Democrats also voted against paying federal employees.
- Air Traffic Control and TSA:
- 50,000 TSA agents and 14,000 air traffic controllers are working without pay.
- Secretary Duffy states that the stress on these workers makes air travel "unquestionably less safe."
- Data on Delays:
- Monday: 3,300 delays.
- Sunday: 8,700 delays.
- Expectation of more delays, ground stops (seen in Houston and LA), and longer security lines due to shortages.
Reckless Democratic Stance: Senator Cruz quotes a senior Democratic aide who told Politico, "We the Democrats are going to keep this shutdown going until planes start falling out of the sky." He labels this sentiment as "reckless and irresponsible" and indicative of the modern Democratic party.
Republican Position and Union Support
Senator Cruz reiterates that Republicans have repeatedly voted to open the government. He mentions that the American Federation of Government Employees, the largest government employee union, has explicitly stated that "The Republicans are right. Open the government. Pass a clean CR." The air traffic controllers union has also expressed similar sentiments.
Continuing Resolution (CR): The concept of a "clean CR" (Continuing Resolution) is mentioned as a potential solution to reopen the government. However, Cruz expresses a reluctance to engage in "peace meal" payments, believing that everyone should be paid and the government reopened simultaneously. He views piecemeal solutions as extending the shutdown's duration.
Conclusion and Takeaways
The core argument presented is that the current government shutdown is a politically motivated act by Democrats, specifically Chuck Schumer, to appease a radical left-wing base, despite the significant negative consequences for federal workers, public services, and national safety. Republicans have consistently offered solutions to reopen the government, which Democrats have rejected. The discussion also critiques the Affordable Care Act for its role in escalating health insurance premiums and advocates for market-based solutions to lower costs. The shutdown's impact on air travel and the potential for reduced safety are highlighted as critical concerns.
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