Tea party's one goal starts to fracture the GOP

Updated: Thursday, September 19, 2013
Tea party
KALAMAZOO, Mich. (NEWSCHANNEL 3) - 12 days and counting to see if the right-wing opposition to the Affordable Care Act will bring about another government shut down.

Tonight in Tom's Corner, Tom Van Howe says it's another risky act in the world of high-stakes political theater.

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It seems almost too incredible. The Republican Party here in Michigan and in Washington gauges what it does out of fear of the tea party.

Not because the tea party has so many members, but because it has oodles and oodles of money.

Money it is willing to spend when the least bit offended by a candidate here or there who steps over a line drawn by the tea party.

Remember Senator Tom Casperson? He's the conservative Michigan Republican from the U.P. who finally switched his vote two weeks ago so the State Senate could pass Medicaid expansion.

Well, that extra healthcare is a part of the Affordable Care Act.

That means Obamacare.

As a result, Casperson is already being targeted by the tea party.

Congressman Aaron Schock is a conservative Illinois Republican who two years ago voted to increase the debt ceiling and last year said 'yes' to a last-minute spending bill to avoid a government shutdown.

He, too, is being targeted by his friends in the tea party. So are ten of his colleagues.

The tea party is funded by people like Americans For Prosperity,  a Koch Brothers enterprise, and by less transparent groups like the Club For Growth, or the National Liberty Federation, and others, who don't have to tell us where their money comes from.

As noted in the New York Times yesterday, these people—these right-wing conservatives—are now spending more money attacking Republicans than Democrats are. Imagine that!

Forget the fact our economy is still on shaky ground, that our middle class is disappearing, that our educational system stacks up poorly against other wealthy countries, or that we have a host of other problems at our feet.

The tea party has one goal: To repeal or defund Obamacare. Forget the fact there have been more than 40 failed efforts in Congress already to do just that. Each one voted down.

These radical conservatives are therefore prepared, instead,  to shut down the government.

What happens in a shutdown? For starters, Social Security checks would most likely not be mailed.

Non-essential government employees would be furloughed. Parks and embassies would be shut down.

On-going projects would be put on hold. Contractors would not be paid. And it would open the door for concerns about our government defaulting on its bond obligations.

If that happened it would put the United States on a level with the city of Detroit.

The world financial community see us as a sadly out of control joke of a country on the brink of blowing its legs off.

Polls indicate the majority of Americans would blame Republicans in the event of a shutdown.

But the cash-rich tea party is willing to risk that in the name of getting rid of Obamacare, a fools errand if ever there was one.

To begin with, any legislation would have to get the President's signature. And that is simply not going to happen.

This morning, the Wall Street Journal called this wingnut war a kamikaze mission. The conservative National Chamber of Commerce is urging House Republicans to back off. Even Karl Rove said today he thinks the whole defunding effort is self-defeating.

Undaunted, the tea party continues its march toward shutdown.

It appears the only way Americans can shed themselves of this yoke called the tea party is to turn out in huge numbers on election day and quite literally vote against any candidate being supported by them.

And for moderate republicans to stand up for themselves.

The word moderate is not a dirty word.

Its time to tell the tea party and all of its wealthy backers to stop wasting our time.

In this corner, I'm Tom Van Howe.

Business News

Last Update on October 24, 2014 17:58 GMT

NEW HOME SALES

WASHINGTON (AP) -- U.S. sales of new homes were essentially flat in September, after the government sharply revised downward what was initially an August surge in buying.

The Commerce Department says new-home sales edged up 0.2 percent last month to a seasonally adjusted annual rate of 467,000. The report also revised down the August sales rate to 466,000 from 504,000.

The pace of sales for newly built homes has improved a mere 1.7 percent so far this year compared to 2013. Only the South has experienced gains in buying year-to-date.

Housing has struggled to fully rebound since the recession ended more than five years ago. Many potential buyers lack the savings and strong credit history needed to afford a home, causing them to rent or remain in their existing houses instead of upgrading.

EARNS-FORD

DEARBORN, Mich. (AP) -- Ford's net income dropped 34 percent to $835 million in the third quarter, dragged down by the cost of launching its new F-150 pickup.

The company closed its Dearborn truck plant for five weeks during the quarter and cut back on truck sales in order to preserve inventories while it readies the new aluminum-sided truck. That hurt pretax profits in North America, which fell 39 percent to $1.4 billion.

Ford earned 21 cents per share, down from 31 cents in the July-September period a year ago. Without one-time items, including separation costs in Europe, Ford earned 24 cents. That beat Wall Street's expectation of 19 cents, according to analysts polled by FactSet.

Revenue fell 2.5 percent to $34.9 billion, better than the forecast of $33.7 billion.

UPS-HOLIDAYS

ATLANTA (AP) -- UPS is expecting an 11 percent jump in December shipments as the holiday shopping season heats up.

UPS recently announced that it would hire up to 95,000 people to handle the tremendous volume. That's up from last year when the Atlanta company initially planned to hire 55,000 seasonal workers. Major U.S. shipping companies were overwhelmed by a shift in American shopping habits, namely the success of Amazon.com. with its free shipping, and UPS was forced to hire an additional 30,000 people.

United Parcel Service Inc. also maintained its guidance Friday for 2014 adjusted earnings between $4.90 and $5 per share. Analysts polled by FactSet predict $4.95 per share.

PROCTER & GAMBLE-DURACELL

Procter & Gamble removes the batteries

CINCINNATI (AP) -- Procter & Gamble is removing the batteries and making Duracell a stand-alone company.

P&G, which acquired Duracell in 2005, announced earlier this year that it would shed more than half its brands around the globe over the next year or two.

If a split off occurs, P&G said that its shareholders would have the option of exchanging some, none or all of their P&G shares for shares of the newly formed Duracell company.

The Procter & Gamble Co., based in Cincinnati, said Friday that it is also considering a spinoff, sale or other options for Duracell.

CHIQUITA-FYFFES

CHARLOTTE, N.C. (AP) -- Chiquita shareholders have rejected plans to merge with Irish fruit importer Fyffes that would have made the world's largest banana supplier.

Chiquita Brands International Inc. said Friday that the shareholders didn't approve a revised transaction agreement between the two companies during a special shareholders meeting.

Chiquita said it now expects to enter talks with investment firm Safra Group and juice company Cutrale Group on their competing offer of $14.50 per share. Chiquita previously rejected buyout bids from the two Brazilian companies.

CHILD SEAT RECALL

DETROIT (AP) -- Evenflo is recalling more than 202,000 rear-facing infant seats because the buckles can become difficult to unlatch.

The recall affects Embrace 35/9999 models with an AmSafe QT1 buckle. Documents posted by U.S. safety regulators say that if the buckles don't release easily, it may be difficult to get a child out of the seat in an emergency.

The affected seats were made at various times from December 2011 through May of 2013.

Not all Embrace 35 models are covered by the recall. For others, the company will provide replacement buckles if requested by customers.

The recall comes after an investigation by the National Highway Traffic Safety Administration.

Owners with questions can call Evenflo at (800) 490-7591.

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IOWA CITY, Iowa (AP) -- The founder of a popular brand of food for observant Muslims has been indicted on charges that he shipped beef to Malaysia and Indonesia that didn't meet those countries' import requirements.

A federal grand jury returned the indictment Thursday against Bill Aossey Jr., who founded the Midamar Corp. in 1974. The Cedar Rapids company grew into the leading U.S. halal brand, selling more than 200 products in the U.S. and abroad.

A 19-count indictment charges Aossey with directing employees to change labels and fabricate documents to make beef products appear that they originated from a slaughterhouse that met Malaysia and Indonesia's strict requirements. Halal meat is supposed to be killed in ritual slaughter.

Aossey's attorney called the indictment unfair Friday, saying the allegations were "a minor regulatory violation" at most.

NBC INTERNS-SETTLEMENT

NEW YORK (AP) -- NBCUniversal will pay $6.4 million to settle a class action lawsuit brought by unpaid interns who worked on "Saturday Night Live" and other shows who claim they are owed wages, according to court documents.

The interns claim NBCUniversal wrongly classified them as non-employees in an effort to avoid labor laws. NBCUniversal said in court documents that even though it is settling the suit, it denies the allegations and doesn't admit any wrongdoing.

The average amount that class-action members of the suit will receive is $505, although the main plaintiffs will receive more. The number of class members is capped at 8,975.

The interns had been seeking recovery of unpaid wages, attorneys' fees, interest and liquidated damages. The settlement still has to be approved by a judge. The lawsuit was filed in federal court in New York.

NBCUniversal is owned by Philadelphia-based cable provider Comcast Corp.

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S&P upgrades Cyprus on commitment to bailout deal

NICOSIA, Cyprus (AP) -- Rating agency Standard & Poor's has given Cyprus a one-notch upgrade to its credit grade, raising it to B+.

The agency cited the country's commitment to the terms of its bailout program and better-than-expected economic growth. It also said the outlook for Cyprus is stable, with good economic progress offset by lingering challenges to its banking system, which is still burdened with a huge amount of bad loans.

BRITAIN-ECONOMY

LONDON (AP) -- Official figures show Britain's economic recovery is continuing, despite a gloomy global environment.

The Office for National Statistics said gross domestic product grew 0.7 percent in the three months through September compared with the previous three months. That is down slightly from a 0.9 percent quarterly rate in the April-June period but remains among the strongest growth rates among developed economies.

Compared with a year earlier, the economy was 3.0 percent larger.

Treasury Chief George Osborne says the figures show Britain "continues to lead the pack in an increasingly uncertain global economy."

Samuel Tombs, the senior U.K. economist for Capital Economics, says growth in Europe's third largest economy has become broader-based, though recent falls in stock markets, manufacturing surveys and eurozone growth have intensified concerns over the recovery.

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