Five Signs the Democratic Party Is in Trouble

This is a rush transcript from "Hannity," September 8, 2010. This copy may not be in its final form and may be updated.

SEAN HANNTIY, HOST: And tonight in Your America, Democrats watching as their party plummets in the polls leaving many to believe that a Republican tsunami could take place this November.

But beyond the poll numbers we are seeing additional signs that the GOP gains could be on the way.

And Democrats, these are the five ways you know your party is in big, big trouble.


HANNITY (voice-over): Number five, top Democratic donors are bailing on the party. An analysis of the Houston Chronicle reveals 126 businesses that supported Senate Democrats in 2008 are now almost all supporting Republicans.

Number four, the party that once praised Obamacare is now changing its tune. This is what we heard from Nancy Pelosi in March.

REP. NANCY PELOSI (D-CALIF.), SPEAKER OF THE HOUSE: We believe that this act that was passed tonight is an all-American act.

HANNITY: But now Democrats are running away from that so-called all-American act. And of the 219 House Democrats who voted for Obamacare, none of them have released campaign ads highlighting their vote.

Number three, most Democrats want nothing to do with their party's leader. Now earlier today the Associated Press published an article under a headline that read, quote, "Fewer Democratic Candidates Seek Obama's Help."

Now the AP's report highlighted how an unpopular president could hurt vulnerable Democrats all around the country. Arkansas Governor Mike Beebe talked about the phenomenon with reporters yesterday.

GOV. MIKE BEEBE, D-ARK.: I think judging from the polls I've seen on approval ratings President Obama couldn't help many people in Arkansas. That's about as candid as I know how to be.

HANNITY: Number two, it appears Democrats still think it's the year 2004 because they can't seem to stop talking about the former president, George W. Bush.

SEN. HARRY REID (D-NEV.), SENATE MAJORITY LEADER: I don't have any hand in what took place during the Bush administration.

OBAMA: They have not come up with a single solitary idea that is any different from the policies of George W. Bush.

HANNITY: But are Americans buying the strategy? According to a Wall Street Journal/NBC News poll, the answer is no. In fact, 58 percent of those surveyed said if the GOP wins control of the Congress they'll bring new ideas to the table.

And that brings us to the number one way Democrats know their party is in trouble. Under a Democratically-controlled Congress Americans' dissatisfaction with the federal government has reached its highest point in 18 years.


HANNITY: Wow. And joining me now with reaction to this growing list of concerns for the Democrats are Sandra Smith from the Fox Business Network, and Kate Obenshain from the Young America's Foundation.

You both are smiling.


HANNITY: It's bad.

SANDRA SMITH, FOX BUSINESS NETWORK: If you weren't convinced before, you are now.

HANNITY: Well, first of all -- look, if Democratic donors -- they're looking out for their business interest. They go with the flow.

SMITH: It's not a business-friendly administration. They're not making -- conducive to doing businesses right now. Businesses still aren't hiring. And at the end they see health care costs rising, taxes going up.

They're not confident. You see the -- the employees at those 126 companies. They gave their money to Democrat two years ago.


SMITH: This time they're saying this isn't working out for us.

KATE OBENSHAIN, YOUNG AMERICA'S FOUNDATION: Yes. I mean Democrats are saying that the reason for that is that they're hedging their bets that these businesses are just protecting their own interests. It's because they are so shocked they've been burned by these policies.

The financial institution supported Obama in 2008 by and large. But now they are shifting. But something we have to keep in mind, too, are the unreported donations. I mean, still, even though it looks good for Republicans, you have to keep in mind union donations and 547s --

HANNITY: That's a good point. It's going to be a lot.

OBENSHAIN: The Democrats still have a major fundraising advantage.

HANNITY: George Soros is still out there helping.

OBENSHAIN: Absolutely.

HANNITY: All right. One of the things I'm finding humorous is that Democrats -- you'd think they'd run on passing health care, 219 Democrats. Not one of them is running an ad.

OBENSHAIN: Not a single one. In fact they're running ads against it.

HANNITY: The Democrats have voted against it. "I wasn't one of those guys. I had nothing to do with what that party did."

SMITH: Health care costs are rising so much faster than anybody anticipated. Just today two health care insurers, Aetna, Blue Cross/Blue Shield said that your premiums for the average American are going to go up between one and nine percent within weeks, Sean. This is happening so much faster than anybody anticipated. This is -- only speed the progress for Republicans heading into November.

HANNITY: Between not running on what they voted for, their agenda because it's failed the American people and the polls show that, but they don't want to be seen with Obama. They don't want to be seen with Pelosi. They don't want to be seen with Harry Reid.

OBENSHAIN: Well, Obama demonstrated today he's tone-deaf. I mean you're not supposed to talk about health care and you're certainly not supposed to talk about stimulus packages. But what is he out there doing talking about a $50 billion stimulus package when over half of the --

HANNITY: And telling us he's going to raise taxes.

OBENSHAIN: Yes, exactly, to pay for a stimulus package after half of the trillion dollar stimulus package still hasn't been spent yet.

SMITH: The thing that really got to a lot of people was -- I mean that continues to get everybody, that denial that we see from the administration.


SMITH: Yesterday, Sean, Robert Gibbs stood at the White House and said by any measure the economy is better today than it was two years ago. When employment -- unemployment was 6.1 percent two years ago, now we're at 9.6?

HANNITY: What is this man smoking? I mean --


HANNITY: He can't even believe his own propaganda. I do get a kick out, although I get frustrated with this fixation, blame Bush, blame Bush, blame Bush. He promised us 20 months ago, he begged to be president. He's president.

Mr. President, I told you this before, man up. Sit at the table, put your pants on. Take responsibility.

It's his debt. It's his deficit. It's his economy. This was his health care bill, his stimulus, his budget. How does this obsession with blaming Bush?

OBENSHAIN: All the things that Bush did they criticized Bush for Obama has done and overdone and continue to do. The stimulus spending. He's done even more stimulus spending. On spending in Afghanistan. Spending, spending, spending.

So it's hard for them to say that they are taking a different tact from Bush. But their tact against Bush is indicative of what they're going to do in the fall. They are going to smear. They are going to try to tie Republicans to Bush.

But they're also going to do what they do so well. And that is try to smear good, decent human beings, good decent Republicans.

HANNITY: That's already started.

OBENSHAIN: As extremists. Yes.

HANNITY: With the class warfare.

OBENSHAIN: They're pretty good at that.

HANNITY: You know, I tell you. We pointed out in that piece there that the dissatisfaction with the government is at its highest level in 18 years. So that's an ominous sign.

You look at, you know, all the polling data. We've been through it now in the last couple of days right here on the show. But I'll tell you, the one thing that concerns me the most is the nearly 2/3 of Americans that think America is now in decline.

That speaks volumes. They've been in control. They've had Congress for four yeah. The White House for two.

SMITH: Right. Right. And we found more evidence of that today at Beige Book (ph) basically said that there's still a decline in all measures of the economy. They pointed to housing, they pointed to employment, they pointed to the health of the consumer.

There's just nothing really that the Democrats heading into November can point to and say, "We did this. We're happy about this." In fact Harry Reid standing in Nevada -- talking about this --

HANNITY: "It's not my fault."

SMITH: "It's not my fault."

HANNITY: Fourteen percent unemployment.

SMITH: "I didn't want anything to do with this economy. "

OBENSHAIN: It's absurd. It was absurd on his part. And it looked so pathetic. But what is really important for Republicans to do right now is not just assume that the demise is going to get them in.

HANNITY: Their agenda.

OBENSHAIN: But to be articulate.

HANNITY: I agree.

OBENSHAIN: And putting people out there like Michele Bachmann and the people who have positive, proactive ideas.

HANNITY: Absolutely. They need to put the ideas on paper.


HANNITY: They need to run on it.

OBENSHAIN: Well, they have. I mean -- a lot of the young guns have done that.

HANNITY: No, that's true. The young guns have.

OBENSHAIN: And it's exciting. Paul Ryan and Mike Pence.

HANNITY: Eric Cantor and Pence and Bachmann.

OBENSHAIN: And some of those folks are doing a great job. But they have to be aggressive.

HANNITY: All right.


HANNITY: Guys, good to see you. Thank you both for being here.

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