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Lou Dobbs Tonight
States Prepare to Ration Flu Shots; President Bush Signs Medicare Bill
Aired December 08, 2003 - 18:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
LOU DOBBS, CNN ANCHOR: Tonight: The number of Americans out of work for six months or longer is at the highest level in two decades, as more American companies outsource jobs overseas. Peter Viles will have a special report in tonight's "Exporting America."
Sticker shock: The House of Representatives has passed a huge spending bill that will finance our government, but it also adds billions of dollars in pork-barrel spending.
After the two largest flu vaccine-makers ran out of supplies, health officials in some states are now preparing to ration flu shots. Medical correspondent Holly Firfer reports.
Tonight, we begin our special report, "America Works." This week, we celebrate the men and women in all kinds of jobs who make this country work. Tonight, we introduce you to a Milwaukee waitress, Peggy Rodofski (ph).
And rebuilding Iraq: The coalition and the Iraqi Governing Council face the challenge of reconstruction amidst a war against insurgents and terrorists. I'll be joined by the coalition's director of private sector development and Iraq's newly appointed ambassador to the United States.
ANNOUNCER: This is LOU DOBBS TONIGHT for Monday, December 8. Here now, Lou Dobbs.
DOBBS: Good evening.
President Bush today signed the new Medicare bill into law. It is a law that will give seniors a prescription drug benefit for the first time ever. The White House hopes this Medicare law will help win the presidential win next year's presidential election. The government says the bill will cost $400 billion over the first 10 years. But some critics say the cost could rise to $2 trillion over the next 20 years.
Senior White House correspondent John King reports.
(BEGIN VIDEOTAPE)
JOHN KING, CNN SR. WHITE HOUSE CORRESPONDENT (voice-over): This signing ushers in major changes to the Medicare program, including a new prescription drug benefit. And this sign says it all when it comes to how a Republican president seeking reelection hopes to benefit on an issue long-associated with the Democrats. GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We kept our promise and found a way to get the job done.
KING: The measure creates a new Medicare prescription drug benefit in 2006, provides for drug discount cards during the two-year transition, carries a $400 billion 10-year price tag, and allows private insurers to care for Medicare patients.
BUSH: Medicare is a great achievement of a compassionate government. And it is a basic trust we honor.
KING: Some Democrats support the changes, but the party's presidential hopefuls rush to criticize the measure. Former Vermont Governor Howard Dean called it a boondoggle that prohibits the government from negotiating lower drug prices. North Carolina Senator John Edwards says the legislation surrenders Medicare to the drug companies and HMOs.
And Massachusetts Senator John Kerry called it a $139 billion holiday gift for big insurance companies and drug companies and a raw deal for America's seniors. The elderly vote is critical in the coming campaign. And the Medicare changes are getting mixed early reviews; 46 percent of seniors favor the new drug benefit; 39 percent oppose it. And only 38 percent of those aged 65 and over support the other changes in Medicare, while 44 percent oppose them.
Nearly six in 10 seniors think the new law benefits drug companies and nearly half worry it is to complicated. The White House will try to ease those concerns with a series of town halls across the country.
(END VIDEOTAPE)
KING: And Democrats are hardly alone in complaining. Many conservatives call this big government at its worst. They say the true price tag will be billions and billions of dollars more than advertised.
But, Lou, here at the White House, the Bush team insists this is both good policy and, for the president, good politics.
DOBBS: John, reinforcing good politics, let me share with you and our viewers elements of the poll that you just referenced, the Gallup poll, the CNN/"USA Today"/Gallup poll. Support for the president's handling of Iraq has risen by five percent age points to 50 percent. Mr. Bush's handling of the economy has also risen slightly.
Overall, the president's approval rating, John, has climbed steadily. What is the White House reaction to this rise in the overall approval rating?
KING: Well, Lou, they insist here they don't follow the polls. And they certainly say they don't follow the polls week to week. But they're heading into the reelection campaign. They do pay attention to our polls and their own polls. Privately, most administration officials and especially the Bush political team believe the rise in his approval rating is mostly tied to the recent better economic news. The gross domestic product numbers are up. The employment rate dropped last month. Most of it, they believe, is because of the encouraging economic news. They do think the president's Thanksgiving visit to Baghdad perhaps helped a little bit. They do understand, though, they still have some questions to answer when it comes to Iraq. And they're hoping the economy continues on its recent upswing, Lou.
DOBBS: And begins creating jobs.
KING: That's right.
DOBBS: John King, thank you very much.
Well, as President Bush signed the Medicare legislation, the House of Representatives today passed a massive spending bill to finance the federal government. The $330 billion bill will pay for items such as education and transportation, of course, the State Department and the FBI. But -- here is a surprise -- the bill also includes billions of dollars for lawmakers' favorite projects back in their home districts. Less elegantly, it is called, simply, pork- barrel spending.
Louise Schiavone reports.
(BEGIN VIDEOTAPE)
LOUISE SCHIAVONE, CNN CORRESPONDENT (voice-over): With Christmas just around the corner, House passage of the mammoth bill was more a function of end-of-year desperation than a test of broad satisfaction.
REP. TOM DELAY (R-TX), MAJORITY LEADER: For a year that began with a struggling economy and pressing needs at home and abroad, that we have held the growth of discretionary spending to 3 percent is a titanic achievement in fiscal restraint.
REP. DAVID OBEY (D), WISCONSIN: But I'm perfectly willing right here and now to give the majority leader the Pulitzer Prize for fiction, because this is the same Congress and this is the same White House that has shown so much fiscal responsibility that, in three short years, they have taken us from a $230 billion surplus to a record $375 billion-plus deficit.
SCHIAVONE: Some fiscal conservatives within the Republican Party broke ranks to protest the pet projects that are earmarked for lawmakers' home districts.
REP. JEFF FLAKE (R), ARIZONA: Under Republican control, we have gone, I believe, in 1994 from about 2,000 earmarks per year to over 10,000. And that is not the way that we ought to conduct business. I think that it is going to come back to bite us. It well ought to.
SCHIAVONE: Specialty projects like funds for Cleveland's Rock 'n' Roll Hall of Fame, Hawaii's statehood celebration, a Coca-Cola building in Macon, Georgia, and millions for projects in Alaska, the home state of Senate Appropriations Committee Chairman Ted Stevens, and for the home district of House Appropriations Committee Chairman Bill Young of Florida, it is all part of the deal-making that gets bills passed in an extremely close Congress.
BRIAN RIEDL, HERITAGE FOUNDATION: In that situation, leadership will do anything to get those last few members of Congress to vote for a bill.
SCHIAVONE: Also slipped into the bill, policy changes that Congress has been resisting, such as changes in overtime payrolls, modified changes in media ownership regulations, and a delay in country-of-origin food labeling requirements.
(END VIDEOTAPE)
SCHIAVONE: Lou, sources tell CNN that, at today's Medicare bill signing, President Bush urged Senate Majority Leader Bill Frist to get the omnibus bill passed in the Senate. But those sources say it is now beginning to look like the leadership may not have the votes it needs yet, even if Frist did call the full Senate back this week -- Lou.
DOBBS: Are you suggesting, Louise, that the Senate is ready to get rid of that pork-barrel spending?
(LAUGHTER)
SCHIAVONE: No, Lou, I'm suggesting that they're ready to just give it up for the rest of the year. What they're going to do is come in tomorrow morning at 10:00 a.m., try to bring that bill up. They'll immediately get Democratic objections. And just a couple hours after that, it is likely they're going pack it in for the rest of the year and come back the week of January 20 -- Lou.
DOBBS: Louise Schiavone, reporting from Washington, thank you.
Former Vice President Al Gore is set to endorse Howard Dean for the nomination for the Democratic Party tomorrow. Sources tell CNN that Gore will appear with the former Vermont governor in Harlem in New York City tomorrow. The two will then travel to Iowa, where recent polls show Dean leading his rivals for the Democratic presidential nomination. Dean already has a commanding 30-point lead in New Hampshire, according to the latest Zogby poll.
Another piece of political news tonight concerning government spending and unemployment benefits. Democrats today pressed the Bush administration to extend those benefits to millions of Americans. Two million Americans have been out of work for six months or longer, the highest level of long-term unemployment since the early '80s. Economists are now saying what we have been reporting on this broadcast for months and months. The growing practice of exporting American jobs overseas to cheap labor markets is a significant reason for slowed jobs growth in this economy.
Peter Viles reports. (BEGIN VIDEOTAPE)
PETER VILES, CNN CORRESPONDENT (voice-over): While the president was signing what amounts to a $400 billion benefit to seniors, Democrats were asking for $1 billion to help the jobless.
REP. BEN CARDIN (D), MARYLAND: The Christmas present we're going to be giving to American workers, about 80,000 to 90,000 every week, who exist their state unemployment insurance benefits, is that there is no help for you. You can't find a job.
VILES: Long-term unemployment is at a 20-year high. Two million people have been out of work six months or longer. And, increasingly, economists believe the outsourcing of jobs to cheap labor markets, notably China, is causing unusually high levels of long-term unemployment.
JARED BERNSTEIN, ECONOMIC POLICY INSTITUTE: Of the 2.4 million jobs that we're down right now since the recession began, I wouldn't be surprised if well over 300,000 were attributable to outsourcing and offshoring, both in blue-collar and white-collar occupations.
VILES: Democrats want to extend a program that gives 13 weeks of additional aid to unemployed workers who have exhausted their state benefits. Congress first gave extended benefits in March of last year, when 1.3 million people had been out of work for six months or longer.
Since then, the level of long-term unemployment has actually gone higher, two million Americans now unemployed six months or longer.
(END VIDEOTAPE)
VILES: Congress is now finally studying the effects of outsourcing on American workers, with a focus on the outsourcing of high-tech jobs -- a report on that topic expected from the GAO this spring.
DOBBS: It is that lack of information, despite these disturbing, even shocking numbers on outsourcing, that is one of the reasons we have started listing the companies who are outsourcing.
The estimates here range from 300,000 to 100,000 jobs, in point of fact, being exported every month.
VILES: Sure.
You have sort of two categories here. One is jobs that have been lost in the past. The other is jobs that are not being created right now because they're being created somewhere else. The estimate we heard last week, 100,000 jobs per month not being created in this economy, partly because of outsourcing, partly because of higher productivity.
DOBBS: Or people working much too long.
(CROSSTALK)
DOBBS: All right, Peter Viles, thank you very much.
Well, as we have said, each night, we are reporting here the list of companies, American companies, exporting jobs to cheap labor markets overseas. We have been asking for your help in identifying those companies that are exporting America. Now, we have already received thousands and thousands of e-mails from you. And, of course, we have to confirm here, our staff does, with each company, that those companies are indeed exporting those jobs.
It is a laborious, time-consuming process, but one that we are fully committed to. Friday, we reported to you first set of corporate names. Tonight, we add to the list the companies confirmed to be exporting America. And over the next weeks and months, we will be bringing you thousands of them, it appears, but tonight, Aetna, AIG, AT&T, Boeing, Cigna, Cisco Systems, Coca-Cola, EDS, KANA Software, Lucent, Maytag, NCR Corporation, a leading maker of ATM machines, by the way, based in Dayton, Ohio, and Prudential Insurance added to the list.
Obviously, we knew that there was a tremendous problem for our economy in the shipping of these American jobs to cheap labor markets overseas. That's why we began our series of special reports on "Exporting America" about a year ago. But I have to tell you, we have all been stunned at the number of companies all over the country that we are finding out are exporting jobs.
So we ask you to continue sending us the names of the companies you work for or you happen to know are exporting jobs to cheap foreign labor markets. Please send them us to at LOUDOBBS@CNN.com. We'll continue to report them to you each week as many evenings as we possibly can and to continue what has become a nightly dialogue on this critical issue.
Coming up next here: Tensions between Taiwan and Beijing are rising to dangerous levels tonight, as Taiwan's talk about hopes for independence could lead to the brink of war. Our Mike Chinoy reports from Taipei.
And a huge global effort to reverse environmental damage may be finally paying off. Lisa Sylvester reports from Washington.
And "America Works," our series this week on the American worker. We celebrate those who keep this country running. Tonight, we'll introduce you to a Milwaukee waitress who loves to work on Fridays. Bill Tucker will have her story.
(COMMERCIAL BREAK)
DOBBS: Chinese Premier Wen Jiabao has arrived in the United States for a visit during a time of rising trade tensions between the two countries. This is Premier Wen's first visit to the United States. The premier today rang the opening bell on Wall Street and met with business leaders, all of this coming just weeks after the United States imposed sanctions against Chinese textiles and television imports.
The trade concerns are expected to be a focus of tomorrow's meeting between the Premier Wen and President Bush. The White House says the president will again urge the premier to take steps to float China's currency. The United States has accused China of keeping the currency artificially weak to maintain cheap prices on the goods it exports.
Another source of controversy between the United States and China is Taiwan. On the eve of Premier Wen's meeting with President Bush, the White House today warned Taiwan not to take any further steps toward independence. That warning comes just months before Taiwan is due to vote on a referendum that many fear could inflame tensions between Beijing and Taiwan.
Mike Chinoy reports.
(BEGIN VIDEOTAPE)
MIKE CHINOY, CNN CORRESPONDENT (voice-over): Ever since Richard Nixon became the first American president to visit Beijing, the relationship between the U.S. and China has been underpinned by a masterpiece of diplomatic ambiguity, a U.S. willingness to accept that, in principle, at least, Taiwan is part of China.
But today, Taiwan, a democracy, has a freely elected president, Chen Shui-bian, who rejects Beijing's claim that the island is a breakaway Chinese province and believes it should be an independent country. Now running for a second term, Chen has made separation from China his central campaign theme and has called for a referendum on Election Day to demand that Beijing renounce the use of force against Taiwan.
It is a step China's leaders view as a thinly disguised move towards independence, since Beijing has long believed only the threat of force has kept Taiwan from taking that step. And the Chinese military, which fired missiles near Taiwan during the island's 1996 presidential campaign, has now warned, any referendum that promotes independence would be considered grounds for war.
For the Bush administration, which is Taiwan's main weapons supplier and has vowed to defend the island if China attacks, the escalating tension is very bad news.
KENNETH LIEBERTHAL, FORMER NATIONAL SECURITY COUNCIL ASIA EXPERT: George Bush doesn't need any other crisis in his in-box at this stage of the game. I think it is especially true now, when the U.S. and China are working very closely together over North Korea and when the U.S. is also distracted in Iraq.
CHINOY: Fueling Washington's concern is a widely held view that Chen is deliberately trying to provoke Beijing to win votes. And, amid Chinese demands that Washington rein Chen in, the precedent set by holding a plebiscite on sensitive issues affecting China led the State Department to issue a blunt warning. RICHARD BOUCHER, STATE DEPARTMENT SPOKESMAN: We would be opposed to any referenda that would change Taiwan's status or move towards independence.
CHINOY: But this view runs counter to President Bush's own calls to expand democracy around the world. And it has angered pro-Taiwan conservatives in Washington. It leaves Mr. Bush, who has worked hard to improve ties with Beijing, juggling a series of sharply conflicting pressures as he prepares to meet China's visiting premier.
(END VIDEOTAPE)
CHINOY: Lou, the challenge for President Bush in his meeting with Premier Wen Jiabao is to convince the Chinese that the administration is seriously concerned about not wanting to see Chen Shui-bian push the envelope, but to do so without antagonizing Taiwan and its many conservative supporters in the United States, but to be sufficiently convincing that the Chinese will continue to cooperate with the United States on key international issues and, perhaps most importantly of all, so that Beijing will not decide that it has to rein Chen Shui-bian in itself -- Lou.
DOBBS: Mike, thank you very much -- Mike Chinoy reporting live from Taipei.
At the conclusion of Premier Wen Jiabao's visit, I'll be interviewing the premier in his first ever appearance on American television. The premier and I will be discussing, of course, Taiwan, the exploding trade deficit between the United States and China, and the global war on terrorism. We will have that interview with Premier Wen here Thursday evening. Please join us.
President Bush and Premier Wen are also expected to be discussing the North Korean nuclear threat. The United States, China and South Korea have now agreed on a proposal that would offer North Korea security guarantees if it ends altogether its nuclear program. That plan calls for North Korea to disarm in coordinated steps. The United States, China, South Korea, Japan and Russia hope the proposal will lead to a second round of nuclear talks with North Korea, perhaps as early as this month. The first round ended in August with little if any, progress.
Coming up next: a dangerous flu outbreak spreading across the country tonight. And now some doctors are resorting to drastic measures to treat their patients, as many of them as possible. Medical correspondent Holly Firfer reports.
Stay with us.
(COMMERCIAL BREAK)
DOBBS: As we reported here Friday, the country's two largest flu vaccine-makers report they have run out, this during what may become the worst influenza outbreak in many years. Now health officials in the hardest-hit parts of the country are preparing to ration vaccine.
Medical correspondent Holly Firfer reports.
(BEGIN VIDEOTAPE)
HOLLY FIRFER, CNN CORRESPONDENT (voice-over): The line for flu shots numbers in the hundreds.
UNIDENTIFIED FEMALE: We waited two hours on Saturday for my husband and I to get ours.
FIRFER: This is Des Moines, Iowa, but could be anywhere USA.
UNIDENTIFIED MALE: We did about 500 shots between Friday and Saturday alone, plus the roughly 170 we had left today.
FIRFER: The health departments in 13 states, seen here in blue, have reported widespread flu outbreaks. And with reports of deaths in Texas and Colorado, some doctors say they are running out of vaccine and can't get any more.
In a typical year, 70 to 75 million Americans get flu shots. This year, 83 million doses were produced, but have all been used.
TOMMY THOMPSON, HEALTH AND HUMAN SERVICES SECRETARY: We're making a survey through CDC of all the state health departments, a lot of the major clinics and a lot of individual doctors' offices and hospitals throughout America, just to find out what is available.
FIRFER: The CDC says manufacturers made plenty of vaccine. It is likely just a distribution issue.
DR. JULIE GERBERDING, CENTERS FOR DISEASE CONTROL: The vaccine manufacturers may have sold all of their vaccine, but there still is vaccine available in many communities.
FIRFER: And there are alternatives. If you are between the ages of six and 49 and in good health, you can get the flu mist vaccine. Adults don't need a doctor's prescription. Just see your pharmacist.
Holly Firfer, CNN.
(END VIDEOTAPE)
DOBBS: In our special report, "Broken Borders," the House of Representatives says American consumers must wait two years before we are entitled to know the country of origin of imported food we consume. Grocers and foodmakers won't have to label meat, fruits and vegetables until 2006, the two-year delay part of the $370 billion so- called omnibus spending bill that would fund government agencies.
This comes after a deadly hepatitis-A outbreak in four states were traced to Mexican scallions. The Senate is expected to vote on that bill Tuesday.
Republican Congressman Tom Tancredo of Colorado called upon the California governor, Arnold Schwarzenegger, to help him squash what Tancredo calls the misguided efforts of a handful of so-called environmental groups. As we reported last week, several groups oppose the extension of a security fence at California's border with Mexico because of environmental concerns.
In a letter, Tancredo told Schwarzenegger that not extending that fence is what will hurt the environment. The congressman said, few things hurt the environment more than massive illegal immigration.
Turning now to tonight's poll question on long-term unemployment. As we reported, long-term unemployment in this country is at its highest level in two decades. The question: Do you think Congress should extend again unemployment benefits, yes or no? Please cast your vote at CNN.com/Lou. We'll have the results for you later in the broadcast.
Up next: American forces in Afghanistan have launched an all-out offensive against al Qaeda and Taliban. Senior Pentagon correspondent Jamie McIntyre will report.
And, after 13 years, Iraq and the United States have taken a major step forward in repairing diplomatic relations. Iraq's new ambassador to the United States, Rend al-Rahim, is our guest.
(COMMERCIAL BREAK)
DOBBS: In Afghanistan, the Army has launched its biggest ever offensive against remnants of the Taliban and al Qaeda, code-named Operation Avalanche. The offensive is designed to make eastern and southern Afghanistan safe for international aid workers, Afghan government officials and, of course, coalition troops.
Senior Pentagon correspondent Jamie McIntyre has the report -- Jamie.
JAMIE MCINTYRE, CNN MILITARY AFFAIRS CORRESPONDENT: Well, Lou, this comes in response to a wave of attacks against aid workers, U.S. soldiers and Afghan government officials.
Some 2,000 American soldiers now will fan out over the southern and eastern part of Afghanistan, along with some Afghan national army troops, to try to hunt down Taliban and al Qaeda remnants before they can hunker down for the winter. The last operation like this, called Mountain Resolve, focused on the northeast part of the country. And that only involved about 1,000 troops, making this latest operation twice as big.
(BEGIN VIDEO CLIP)
LT. COL. BRYAN HILFERTY, COALITION SPOKESMAN: This one is the largest we have ever designed. This will cover the entire eastern, southeastern and southern portion. We want to give the enemy no sanctuary. He's not going to know where we hit. He's not going to know what we're doing but throughout the entire area, we have operations going on.
(END VIDEO CLIP) MCINTYRE: Now, one effort to stop the attacks went awry this week weekend when the U.S. used an A-10 tank killer jets to target a man they suspected of killing two contract workers. The suspect was killed, but so were nine children at this remote village. The U.S. says it didn't know that they were nearby.
Now, the villagers insist the man killed was the wrong man. Pentagon officials dispute that. But a U.S. military investigation is now underway into this entire incident to try to figure out what went wrong -- Lou.
DOBBS: And Jamie, the efforts to find Osama bin Laden and Omar, are they part of this operation, or is there a ratcheting down in the efforts to find them?
MCINTYRE: No, there's still -- one of the primary focus to find both of those men.
These operations are not specifically designed on -- about intelligence, about their location, but they're hopeful, again, that by rounding up people they'll begin to close in on them. They're continuing to look for actionable intelligence that would allow them to capture bin Laden, who remains a top priority.
DOBBS: Jamie, thank you very much. Jamie McIntyre, senior Pentagon correspondent.
Defense Secretary Donald Rumsfeld is taking issue with Army officials who say only two out of ten active duty divisions will be uncommitted and ready for war next year.
Secretary Rumsfeld has just returned from Iraq, Afghanistan and other countries in the region. The secretary of defense said the Army's rating system for combat readiness may be out of date and inappropriate during wartime.
The Army says four divisions will return from Iraq next year, but they will neat six months for rest and retraining and repairing of their equipment to be combat ready.
As violence against U.S. forces and Iraqis continues, my next guest plans to renew diplomatic ties between Washington and Baghdad, saying her duty is to reflect a true and accurate picture of the new Iraq.
Joining me now is ambassador Rend al-Rahim, recently appointed the Iraqi ambassador to the United States.
Ambassador, good to have you with us.
REND AL-RAHIM, IRAQI AMBASSADOR TO U.S.: Thank you.
DOBBS: You have perhaps one of the most difficult diplomatic jobs one could imagine. Your country, effectively, in occupation, working for a governing council.
At this point what would you say is your number one job as ambassador to this country?
AL-RAHIM: I think the first thing that I must achieve is to give an Iraqi face, an Iraqi voice to the emerging sovereignty and independence of the Iraqi nation.
For 13 years there hasn't been an Iraqi representative here in Washington, and commentators have commented on the situation in Iraq of different nationalities, Americans, of Arabs. There has not been an Iraqi official voice that can represent the Iraqi people. That is my No. 1 job.
DOBBS: Ambassador, the idea that security has to be established in Iraq is important for the Iraqi people obviously, for American coalition forces there and for the future of Iraq, that is for those who would rebuild Iraq.
Your best judgment as to how that process is going, what more needs to be done.
AL-RAHIM: I think the most important thing that needs to be done is to bring Iraqis into the process of maintaining security. This is something that we have said all along.
We have to have Iraqis who police the streets, who are civil defense force, who are border police and so on and so forth. This has been a requirement of Iraqis all along, because that's the only way that you can secure the country.
Only Iraqis know how to secure their country. They are the ones who are able to get intelligence. They are the ones who know each other, who know the factions and so on.
I'm glad to say that this process of bringing Iraqis into the security system is accelerating. And I think this is going to be the one item that is going to improve the situation there.
DOBBS: Great concern, the U.S. military has knocked down reports that militia are being invited into a peace -- a order, a security role, saying again, though, that individual Iraqis would be welcome to be under U.S. command.
Is it your judgment that there are a sufficient number of trained Iraqis, who are not connected to the Ba'athist regime of Saddam Hussein, who are available to maintain a security role?
AL-RAHIM: Well, first of all, I think that there clearly is still a great number of people who need to be brought into the police and civil defense force. We do not have nearly enough.
As for the question of militias, I think this is a complete misunderstanding.
What we're doing is finding people who are actually committed to the new Iraq who we know have no allegiance to the old regime, who will become the new order. These are the people that are being brought in to be trained. This is not a new militia that is being created. These people are to come in as their individual capacity and be under U.S. training and U.S. command.
So we need more of those people rather than fewer. And I think we have to begin to build up the numbers as quickly as possible, as we go along.
DOBBS: The issue of violence much lies before you, your government as you proceed toward establishing a permanent government, a government, obviously, in Iraq.
But I want to project just a bit beyond that to ask you what do you see as a principle challenge? First, would it be a contest among Shiah, the Sunni, the Kurds? Do you see it in terms of a resurgence of the elements of the old regime? Are radical Islamists influenced that could develop strongly within Iraq?
Which would you see as a principle challenge?
AL-RAHIM: I think the most important thing that we're going to confront, and I think it will be solved in mechanisms that are being devised right now, is to keep every group inside the country involved and interested in the country.
In other words, this is a multidimensional country with many groups and many religions, and they have to all have a vested interest in the maintenance of this country.
So it's going to be a question of balancing the interests, checks and balances amongst these groups. I think this is the most important achievement that we could have.
DOBBS: Ambassador al Rahim, we thank you very much for being with us.
AL-RAHIM: Thank you.
DOBBS: Coming up next, rebuilding Iraq means rebuilding an economy. And Thomas Foley is in the business of building that economy. He joins us next.
(COMMERCIAL BREAK)
DOBBS: Iraq continues, of course, to suffer from more than three decades of a state run economy, a dictatorial government and the widespread looting of businesses that followed the war against Saddam Hussein.
Joining me now is long time venture capitalist, very successful businessman, who has taken on what is a daunting task for any person: to rebuild and to revitalize Iraq's economy. The coalition provisional authority's head of private sector development, Thomas Foley.
Tom, good to have you here. THOMAS FOLEY, COALITION PROVISIONAL AUTHORITY HEAD OF PRIVATE SECTOR DEVELOPMENT: Thank you very much.
DOBBS: This is a -- $20 billion is the starting point. How soon will that money start making the economy of Iraq better? Noticeably?
FOLEY: Well, we hope as soon as in the first quarter when many of the contracts are left, that that money will start being spent and will create new Iraqi jobs.
DOBBS: Now the first quarter would be moving pretty quickly, if we're talking about major projects. We start to see huge electric power progress. We start seeing the construction of buildings, new schools, whatever the -- roads, infrastructure.
Is that what you have in mind?
FOLEY: Exactly. The beginning of the expenditure of those funds could be as soon as the first quarter.
DOBBS: Now, when we talk about Iraq, most of us still think of it in -- in Saddam -- frankly, in terms of prewar. It is a country of 25 million people. A workforce that is some estimates range as high as 60 percent of them still unemployed.
Give us -- you're on the ground, you know best. Give us the best assessment of the labor force, how many are unemployed, how many you can get back to work?
FOLEY: Well, there are about million in the labor force, we estimate. We think that the actual unemployment rates more likely in the 20s, maybe as high as 30 percent.
But when the supplemental funds are spent, they could create as many as a half million or possibly even a million jobs, which would bring that number down into the teens, which would be...
DOBBS: That half million number, those people would be working for state-run operations or private business?
FOLEY: No, they'd probably -- they could be working for state- run enterprises, but they'd probably would be more likely to be working for private vector businesses who would be contractors.
DOBBS: Contractors, multinationals, international firms or domestic Iraqi firms?
FOLEY: Well, foreign firms could hire Iraqis, which would contribute to Iraqi employment, but my job is to help stimulate the private sector in Iraq. So we're hoping that Iraqi businesses get a big portion of these contracts, as well.
DOBBS: Obviously critical in rebuilding Iraq is a workforce that is sufficiently skilled and educated to be contributive, to be driving forward. Are the Iraqis -- do they have a workforce that will be, from jump street, successful in helping rebuild their economy? FOLEY: Absolutely. The Iraqi workforce is very intelligent, hard working and resourceful people.
In some cases they're going to need some training because many of the developments in the last 20 years have not been available to them in technology and systems. But with that they're going to do just fine.
DOBBS: And you have read and heard, in some cases hear the accounts of concerns about all of this money is going to go to Bechtel; it is going to go Halliburton; it's going to go to unnamed French companies in the rebuilding and too little of that money will move directly into the economy of Iraq.
What are you going to do to be sure you forestall the misallocation of funds and huge amounts of funds?
FOLEY: Well, right now we have a team of people who are working to make sure the request for proposals for these contracts are written in ways that will make sure that Iraqi businessmen and Iraqi jobs are maximized in the expenditure of the funds.
DOBBS: One of your advisers, Michael Fleisher (ph), said in talking about the economy that you're going to try to help build and create with Iraqi partners. "Only the best of you will survive," he said, he is quoted as saying to Iraqi entrepreneurs and businessmen.
Now, for people who've lived in the state-run economy, for three decades, that's got to be chilling, a little concerning to say the least. Do you have any fear that you're moving a little fast on free markets and highly competitive environments in building this economy?
FOLEY: Well, I don't necessarily agree with that. The Iraqi businessmen are very astute, and many of them have been able to be active in the global economy. And we think they're going to do quite well.
But they do need to be able to modernize their systems. They're going to need some training, and they will need to be able to respond to free markets, as you said.
DOBBS: And the bids that are going out, just for the record, are they going to be competitive?
FOLEY: Absolutely. Sure.
DOBBS: And when I said the Bechtel and Halliburton, the issue here for everyone is in those firms, a great deal of expertise resides and they have to be there. At the same time I didn't want to imply that I was being entirely negative about those great firms, who are providing great expertise either. But at the same time I want you watching everybody.
FOLEY: Don't worry.
DOBBS: Tom Foley, thank you very much for being here. FOLEY: Thank you.
DOBBS: We wish you the best of luck in a very important task.
FOLEY: Thank you very much.
DOBBS: Coming up next, your thoughts on exporting America and the growing list of companies that are choosing cheap overseas labor over American workers
And good news on the environment tonight as the worldwide effort to reverse global warming shows some halting; early signs of progress.
Lisa Sylvester reports from Washington.
(COMMERCIAL BREAK)
DOBBS: All this week the United Nations-sponsored climate change conference is taking place in Milan. Participants are pushing for greater government action after the Kyoto Treaty has all but collapsed.
One area of concern is the hole in the southern ozone layer, which is the second largest ever observed. It stretched nearly 11 square -- 11 million square miles. It is at various points larger than the entire continent of North America.
But scientists now say there is promising news.
Lisa Sylvester has that promising news.
(BEGIN VIDEOTAPE)
LISA SYLVESTER, CNN CORRESPONDENT (voice-over): You may see nothing but snow falling. But the earth is also being bathed with ultraviolet rays, and scientists are measuring more rays than ever as the hole in the Antarctic's protective ozone layer grows larger.
But there's good news. Ozone depletion is peeking and should start to reverse itself in a few years, giving naturally created ozone a chance to shrink the hole.
ROBERT WATSON, WORLD BANK CHIEF SCIENTIST: The message is we're moving in the right direction. Governments have been working with the private sector and with the scientists to improve the situation. We will expect a recovery of the ozone layer, but it will take about 50 years.
SYLVESTER: The ozone layer is made up of three oxygen atoms. Bound together they create a blanket that keeps ultraviolet rays out. But substances like chlorine and chlorofluoro carbos, or CFCs, breaks the oxygen molecules apart, tearing a hole in the ozone layer.
As part of the 1987 Montreal Protocol, industries began phasing out the use of chlorofluro carbons in products, including common household goods. The level of CFCs in the atmosphere is slowly being reduced. Scientists say the international effort is paying off.
KRISTALINA GEORGIEVA, WORLD BANK ENVIRONMENT DIRECTOR: Twenty million less cases of skin cancer are due to action taken already by all of us in rich and poor countries alike.
SYLVESTER: But reversing decades of use of CFCs will take time, because chlorine can stay in the atmosphere for years. Scientists say it's important to stay on course by developing alternatives that do not deplete the ozone layer.
HENRY HABICHT, GLOBAL ENVIRONMENT AND TECHNOLOGY FOUNDATION: Technology plays a very big role in the ability of industry to step up to the plate and work with government, and for government to find ways to provide incentives for industry to accelerate the introduction of substitutes has been the key to success of this effort.
SYLVESTER: Cutting CFC emissions is a rare example of widespread global cooperation on an environmental issue.
(on camera) The lack of squabbling has been notable. Developed and developed countries often have different agendas, but the two sides are working together on this issue, along with the business and scientific communities.
Lisa Sylvester, CNN, Washington.
(END VIDEOTAPE)
DOBBS: Taking a look now at some of your thoughts on exporting America.
From New York City: "Lou, many thanks for your requests for information on companies that are offshoring... I believe many of your viewers would be shocked to learn the offshored jobs cover a broad and rapidly expanding spectrum of high-value white-collar jobs, including state-of-the-art research and development. Many people are convinced that offshoring doesn't directly affect their livelihoods, and they may be right - for now. But that could all change, and with astonishing velocity." Phil Stephens.
From Omaha, Nebraska: "I'm not an economist and understand it may be cheaper for the companies to export work, but if they hired and bought American for their products, wouldn't we all ultimately have more money to spend more on their higher priced products? Even though I'm far from rich, I would be willing to spend more to keep Americans working." Colleen Assman.
From Ten Sleep, Wyoming. Now that happens to be one of my favorite town names of all time. "Maybe companies should be looking at relocating in smaller populated and lower income areas in the United States. We have many people in our area who would love to have an $8 an hour year round job! Most of our population lives on less than $2,000 a month per family now with two people working!" That from J. Michael. And it's a great point. From Salt Lake City, Utah: "Isn't it ironic that the same Eli Lilly that outsources jobs is the same Eli Lilly that is trying to keep people like myself from going to Canada for my medicine?" JoAnn Bergsma.
From Indian River Shores, Florida: "Dear Lou, I think the answer to the loss of jobs overseas is fairly simple. Let's outsource the executive positions, too. The same could be done with boards of directors. Once the job losses begin to hit the executive suite, I think the problem will solve itself." Roy Sowley.
From Emerson, New Jersey: "The same Congress that passed record breaking deficits and a pork loaded Medicare 'reform' bill can't bring itself to pass an unemployment benefits extension?" Tom Browne.
And from Punaluu, Hawaii: "Many thanks for a CNN program that does not concentrate on Laci, Michael, et cetera. It's great to get an hour of serious news, whether I agree with your point of view or not." J.W. Kilkenny.
We love hearing from you. E-mail us: LouDobbs@CNN.com. Please include your name and your hometown.
Now for some news just, in from Flandreau, South Dakota. A jury has just found Congressman Bill Janklow guilty of all charges in a reckless driving case. Janklow accused of second degree manslaughter, speeding, reckless driving and running a stop sign.
The Congressman's car hit a motorcyclist from Minnesota, killing him. Janklow faces as much as ten years in prison and a fine of up to $10,000 after being found guilty on all counts.
On Wall Street today, the Dow Jones Industrials within 35 points of 10,000. The Dow gained 102.59. The NASDAQ rose just over 11 points, while the S&P 500 up almost eight.
The widening investigation into mutual fund misconduct has caused many investors to pull their money from the once thriving funds. However, a new report has found some of the wealthiest Americans changing their minds about mutual funds long before this scandal.
Christine Romans is here.
Long before?
CHRISTINE ROMANS, CNN CORRESPONDENT: Long before. The past couple of years rich Americans have come their mutual fund holdings in half. Instead, they're putting their money into hedge funds and real estate.
A recent survey shows these ultra high net worth investors -- these are people who have $5 million or more to invest -- they're seeking higher returns in hedge funds, real estate, reducing their traditional mutual fund holdings to just six percent of their assets. Lou, here is what the average rich portfolio looks like. A quarter in managed accounts, a fifth in individual stocks, 10 percent in bonds, then nine percent in alternative investments like hedge funds. And that's been growing. IRAs and cash each also getting nine percent. Mutual funds, only six percent. Restricted stock options, three percent.
That leaves about eight percent left over for futures, collectibles, charity foundations, other investments.
The survey showing growing distrust of brokers and the investment community, and among those rich investors. Yet 67 percent plan to invest directly into the stock market next year.
DOBBS: Terrific. Sounds like good news for the stock market and investors.
Christine, thanks. Christine Romans.
Coming up, "America Works," our special report this week as we celebrate the people who really keep this country running. Stay with us.
(COMMERCIAL BREAK)
DOBBS: Our poll results tonight: 92 percent of you say Congress should extend unemployment benefits. Eight percent said no. I think this is an issue that has apparently crossed party lines.
Tonight, we begin a series of special reports this week: "America Works." All this week, we will be meeting Americans who have a passion for what they do and with their hard work keep this country running.
We begin our weeklong celebration tonight with a Wisconsin woman. She's been waitressing at Herb's Mug in South Milwaukee for the past 20 years.
Bill Tucker has her story.
(BEGIN VIDEOTAPE)
BILL TUCKER, CNN CORRESPONDENT (voice-over): The day begins early for Peggy Wranovski and her husband Bruce, a firefighter with the South Milwaukee Fire Department.
Peggy's oldest daughter drops her son off on the way to work. Peggy will then get her 4-year-old grandson and her 9-year-old daughter packed and off to school.
PEGGY WRANOVSKI, WAITRESS: My family is very close. We hang out all the time together. I mean, I talk to my mom every day. My sister is, at least once or twice a week, my brothers. I mean, we all call each other and that kind of thing.
So, yes, it's very, very nice. It's -- we're a very close-knit family.
TUCKER: After playing school bus driver, Peggy has time to stop and smell the coffee.
WRANOVSKI: This is my time in the morning where I just get to relax.
TUCKER: Before heading back out the door and off to work.
WRANOVSKI: I like the fast pace. I like lunch where they have to get in and out, and because I'm a mover. I love working Fridays because they're in, they're out, there's a lot of commotion going on. I like that. I like getting jazzy with the people.
TUCKER (on camera): Waitressing is one of those jobs that people barely notice, until they're looking for one. And rarely do they remember their waitresses' name.
WRANOVSKI: It is tough when you have somebody demanding, and you're back and forth and back and forth and back and forth. And they leave you less than 10 percent.
I mean, I'm not their slave, you know, per se, and it's like sometimes they just -- they don't get it.
And then you get people that have been gone for a few years and they come back and they're like, "Oh, my God, Peggy, you're still here," you know. So that's always nice. And that they remember me.
TUCKER (voice-over): Peggy's always earned enough to support herself, and she and her husband own their own home. During her years at Herb's, Peggy has become a part of the place. And the manager, as well.
WRANOVSKI: I love the people I work with. And all the people that come in here are -- it's nice. I do like it. I don't think I'd be here for 20 years. I mean, I came in for a part time job one night, filled out my application. And 20 years later I'm still here, you know.
TUCKER: Bill Tucker, CNN, Herb's Mug, South Milwaukee, Wisconsin.
(END VIDEOTAPE)
DOBBS: Nobody at Herb's Mug would forget Peggy's name, and now a lot of people all over the country won't forget it either.
That's our show for tonight. Thanks for being with us. Tomorrow, in "America Works," we bring you a day in the life of a man who loves his job, loves his family and a plumber you will remember.
Thanks for being with us. For all of us here, good night from New York.
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Medicare Bill>
Aired December 8, 2003 - 18:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
LOU DOBBS, CNN ANCHOR: Tonight: The number of Americans out of work for six months or longer is at the highest level in two decades, as more American companies outsource jobs overseas. Peter Viles will have a special report in tonight's "Exporting America."
Sticker shock: The House of Representatives has passed a huge spending bill that will finance our government, but it also adds billions of dollars in pork-barrel spending.
After the two largest flu vaccine-makers ran out of supplies, health officials in some states are now preparing to ration flu shots. Medical correspondent Holly Firfer reports.
Tonight, we begin our special report, "America Works." This week, we celebrate the men and women in all kinds of jobs who make this country work. Tonight, we introduce you to a Milwaukee waitress, Peggy Rodofski (ph).
And rebuilding Iraq: The coalition and the Iraqi Governing Council face the challenge of reconstruction amidst a war against insurgents and terrorists. I'll be joined by the coalition's director of private sector development and Iraq's newly appointed ambassador to the United States.
ANNOUNCER: This is LOU DOBBS TONIGHT for Monday, December 8. Here now, Lou Dobbs.
DOBBS: Good evening.
President Bush today signed the new Medicare bill into law. It is a law that will give seniors a prescription drug benefit for the first time ever. The White House hopes this Medicare law will help win the presidential win next year's presidential election. The government says the bill will cost $400 billion over the first 10 years. But some critics say the cost could rise to $2 trillion over the next 20 years.
Senior White House correspondent John King reports.
(BEGIN VIDEOTAPE)
JOHN KING, CNN SR. WHITE HOUSE CORRESPONDENT (voice-over): This signing ushers in major changes to the Medicare program, including a new prescription drug benefit. And this sign says it all when it comes to how a Republican president seeking reelection hopes to benefit on an issue long-associated with the Democrats. GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We kept our promise and found a way to get the job done.
KING: The measure creates a new Medicare prescription drug benefit in 2006, provides for drug discount cards during the two-year transition, carries a $400 billion 10-year price tag, and allows private insurers to care for Medicare patients.
BUSH: Medicare is a great achievement of a compassionate government. And it is a basic trust we honor.
KING: Some Democrats support the changes, but the party's presidential hopefuls rush to criticize the measure. Former Vermont Governor Howard Dean called it a boondoggle that prohibits the government from negotiating lower drug prices. North Carolina Senator John Edwards says the legislation surrenders Medicare to the drug companies and HMOs.
And Massachusetts Senator John Kerry called it a $139 billion holiday gift for big insurance companies and drug companies and a raw deal for America's seniors. The elderly vote is critical in the coming campaign. And the Medicare changes are getting mixed early reviews; 46 percent of seniors favor the new drug benefit; 39 percent oppose it. And only 38 percent of those aged 65 and over support the other changes in Medicare, while 44 percent oppose them.
Nearly six in 10 seniors think the new law benefits drug companies and nearly half worry it is to complicated. The White House will try to ease those concerns with a series of town halls across the country.
(END VIDEOTAPE)
KING: And Democrats are hardly alone in complaining. Many conservatives call this big government at its worst. They say the true price tag will be billions and billions of dollars more than advertised.
But, Lou, here at the White House, the Bush team insists this is both good policy and, for the president, good politics.
DOBBS: John, reinforcing good politics, let me share with you and our viewers elements of the poll that you just referenced, the Gallup poll, the CNN/"USA Today"/Gallup poll. Support for the president's handling of Iraq has risen by five percent age points to 50 percent. Mr. Bush's handling of the economy has also risen slightly.
Overall, the president's approval rating, John, has climbed steadily. What is the White House reaction to this rise in the overall approval rating?
KING: Well, Lou, they insist here they don't follow the polls. And they certainly say they don't follow the polls week to week. But they're heading into the reelection campaign. They do pay attention to our polls and their own polls. Privately, most administration officials and especially the Bush political team believe the rise in his approval rating is mostly tied to the recent better economic news. The gross domestic product numbers are up. The employment rate dropped last month. Most of it, they believe, is because of the encouraging economic news. They do think the president's Thanksgiving visit to Baghdad perhaps helped a little bit. They do understand, though, they still have some questions to answer when it comes to Iraq. And they're hoping the economy continues on its recent upswing, Lou.
DOBBS: And begins creating jobs.
KING: That's right.
DOBBS: John King, thank you very much.
Well, as President Bush signed the Medicare legislation, the House of Representatives today passed a massive spending bill to finance the federal government. The $330 billion bill will pay for items such as education and transportation, of course, the State Department and the FBI. But -- here is a surprise -- the bill also includes billions of dollars for lawmakers' favorite projects back in their home districts. Less elegantly, it is called, simply, pork- barrel spending.
Louise Schiavone reports.
(BEGIN VIDEOTAPE)
LOUISE SCHIAVONE, CNN CORRESPONDENT (voice-over): With Christmas just around the corner, House passage of the mammoth bill was more a function of end-of-year desperation than a test of broad satisfaction.
REP. TOM DELAY (R-TX), MAJORITY LEADER: For a year that began with a struggling economy and pressing needs at home and abroad, that we have held the growth of discretionary spending to 3 percent is a titanic achievement in fiscal restraint.
REP. DAVID OBEY (D), WISCONSIN: But I'm perfectly willing right here and now to give the majority leader the Pulitzer Prize for fiction, because this is the same Congress and this is the same White House that has shown so much fiscal responsibility that, in three short years, they have taken us from a $230 billion surplus to a record $375 billion-plus deficit.
SCHIAVONE: Some fiscal conservatives within the Republican Party broke ranks to protest the pet projects that are earmarked for lawmakers' home districts.
REP. JEFF FLAKE (R), ARIZONA: Under Republican control, we have gone, I believe, in 1994 from about 2,000 earmarks per year to over 10,000. And that is not the way that we ought to conduct business. I think that it is going to come back to bite us. It well ought to.
SCHIAVONE: Specialty projects like funds for Cleveland's Rock 'n' Roll Hall of Fame, Hawaii's statehood celebration, a Coca-Cola building in Macon, Georgia, and millions for projects in Alaska, the home state of Senate Appropriations Committee Chairman Ted Stevens, and for the home district of House Appropriations Committee Chairman Bill Young of Florida, it is all part of the deal-making that gets bills passed in an extremely close Congress.
BRIAN RIEDL, HERITAGE FOUNDATION: In that situation, leadership will do anything to get those last few members of Congress to vote for a bill.
SCHIAVONE: Also slipped into the bill, policy changes that Congress has been resisting, such as changes in overtime payrolls, modified changes in media ownership regulations, and a delay in country-of-origin food labeling requirements.
(END VIDEOTAPE)
SCHIAVONE: Lou, sources tell CNN that, at today's Medicare bill signing, President Bush urged Senate Majority Leader Bill Frist to get the omnibus bill passed in the Senate. But those sources say it is now beginning to look like the leadership may not have the votes it needs yet, even if Frist did call the full Senate back this week -- Lou.
DOBBS: Are you suggesting, Louise, that the Senate is ready to get rid of that pork-barrel spending?
(LAUGHTER)
SCHIAVONE: No, Lou, I'm suggesting that they're ready to just give it up for the rest of the year. What they're going to do is come in tomorrow morning at 10:00 a.m., try to bring that bill up. They'll immediately get Democratic objections. And just a couple hours after that, it is likely they're going pack it in for the rest of the year and come back the week of January 20 -- Lou.
DOBBS: Louise Schiavone, reporting from Washington, thank you.
Former Vice President Al Gore is set to endorse Howard Dean for the nomination for the Democratic Party tomorrow. Sources tell CNN that Gore will appear with the former Vermont governor in Harlem in New York City tomorrow. The two will then travel to Iowa, where recent polls show Dean leading his rivals for the Democratic presidential nomination. Dean already has a commanding 30-point lead in New Hampshire, according to the latest Zogby poll.
Another piece of political news tonight concerning government spending and unemployment benefits. Democrats today pressed the Bush administration to extend those benefits to millions of Americans. Two million Americans have been out of work for six months or longer, the highest level of long-term unemployment since the early '80s. Economists are now saying what we have been reporting on this broadcast for months and months. The growing practice of exporting American jobs overseas to cheap labor markets is a significant reason for slowed jobs growth in this economy.
Peter Viles reports. (BEGIN VIDEOTAPE)
PETER VILES, CNN CORRESPONDENT (voice-over): While the president was signing what amounts to a $400 billion benefit to seniors, Democrats were asking for $1 billion to help the jobless.
REP. BEN CARDIN (D), MARYLAND: The Christmas present we're going to be giving to American workers, about 80,000 to 90,000 every week, who exist their state unemployment insurance benefits, is that there is no help for you. You can't find a job.
VILES: Long-term unemployment is at a 20-year high. Two million people have been out of work six months or longer. And, increasingly, economists believe the outsourcing of jobs to cheap labor markets, notably China, is causing unusually high levels of long-term unemployment.
JARED BERNSTEIN, ECONOMIC POLICY INSTITUTE: Of the 2.4 million jobs that we're down right now since the recession began, I wouldn't be surprised if well over 300,000 were attributable to outsourcing and offshoring, both in blue-collar and white-collar occupations.
VILES: Democrats want to extend a program that gives 13 weeks of additional aid to unemployed workers who have exhausted their state benefits. Congress first gave extended benefits in March of last year, when 1.3 million people had been out of work for six months or longer.
Since then, the level of long-term unemployment has actually gone higher, two million Americans now unemployed six months or longer.
(END VIDEOTAPE)
VILES: Congress is now finally studying the effects of outsourcing on American workers, with a focus on the outsourcing of high-tech jobs -- a report on that topic expected from the GAO this spring.
DOBBS: It is that lack of information, despite these disturbing, even shocking numbers on outsourcing, that is one of the reasons we have started listing the companies who are outsourcing.
The estimates here range from 300,000 to 100,000 jobs, in point of fact, being exported every month.
VILES: Sure.
You have sort of two categories here. One is jobs that have been lost in the past. The other is jobs that are not being created right now because they're being created somewhere else. The estimate we heard last week, 100,000 jobs per month not being created in this economy, partly because of outsourcing, partly because of higher productivity.
DOBBS: Or people working much too long.
(CROSSTALK)
DOBBS: All right, Peter Viles, thank you very much.
Well, as we have said, each night, we are reporting here the list of companies, American companies, exporting jobs to cheap labor markets overseas. We have been asking for your help in identifying those companies that are exporting America. Now, we have already received thousands and thousands of e-mails from you. And, of course, we have to confirm here, our staff does, with each company, that those companies are indeed exporting those jobs.
It is a laborious, time-consuming process, but one that we are fully committed to. Friday, we reported to you first set of corporate names. Tonight, we add to the list the companies confirmed to be exporting America. And over the next weeks and months, we will be bringing you thousands of them, it appears, but tonight, Aetna, AIG, AT&T, Boeing, Cigna, Cisco Systems, Coca-Cola, EDS, KANA Software, Lucent, Maytag, NCR Corporation, a leading maker of ATM machines, by the way, based in Dayton, Ohio, and Prudential Insurance added to the list.
Obviously, we knew that there was a tremendous problem for our economy in the shipping of these American jobs to cheap labor markets overseas. That's why we began our series of special reports on "Exporting America" about a year ago. But I have to tell you, we have all been stunned at the number of companies all over the country that we are finding out are exporting jobs.
So we ask you to continue sending us the names of the companies you work for or you happen to know are exporting jobs to cheap foreign labor markets. Please send them us to at LOUDOBBS@CNN.com. We'll continue to report them to you each week as many evenings as we possibly can and to continue what has become a nightly dialogue on this critical issue.
Coming up next here: Tensions between Taiwan and Beijing are rising to dangerous levels tonight, as Taiwan's talk about hopes for independence could lead to the brink of war. Our Mike Chinoy reports from Taipei.
And a huge global effort to reverse environmental damage may be finally paying off. Lisa Sylvester reports from Washington.
And "America Works," our series this week on the American worker. We celebrate those who keep this country running. Tonight, we'll introduce you to a Milwaukee waitress who loves to work on Fridays. Bill Tucker will have her story.
(COMMERCIAL BREAK)
DOBBS: Chinese Premier Wen Jiabao has arrived in the United States for a visit during a time of rising trade tensions between the two countries. This is Premier Wen's first visit to the United States. The premier today rang the opening bell on Wall Street and met with business leaders, all of this coming just weeks after the United States imposed sanctions against Chinese textiles and television imports.
The trade concerns are expected to be a focus of tomorrow's meeting between the Premier Wen and President Bush. The White House says the president will again urge the premier to take steps to float China's currency. The United States has accused China of keeping the currency artificially weak to maintain cheap prices on the goods it exports.
Another source of controversy between the United States and China is Taiwan. On the eve of Premier Wen's meeting with President Bush, the White House today warned Taiwan not to take any further steps toward independence. That warning comes just months before Taiwan is due to vote on a referendum that many fear could inflame tensions between Beijing and Taiwan.
Mike Chinoy reports.
(BEGIN VIDEOTAPE)
MIKE CHINOY, CNN CORRESPONDENT (voice-over): Ever since Richard Nixon became the first American president to visit Beijing, the relationship between the U.S. and China has been underpinned by a masterpiece of diplomatic ambiguity, a U.S. willingness to accept that, in principle, at least, Taiwan is part of China.
But today, Taiwan, a democracy, has a freely elected president, Chen Shui-bian, who rejects Beijing's claim that the island is a breakaway Chinese province and believes it should be an independent country. Now running for a second term, Chen has made separation from China his central campaign theme and has called for a referendum on Election Day to demand that Beijing renounce the use of force against Taiwan.
It is a step China's leaders view as a thinly disguised move towards independence, since Beijing has long believed only the threat of force has kept Taiwan from taking that step. And the Chinese military, which fired missiles near Taiwan during the island's 1996 presidential campaign, has now warned, any referendum that promotes independence would be considered grounds for war.
For the Bush administration, which is Taiwan's main weapons supplier and has vowed to defend the island if China attacks, the escalating tension is very bad news.
KENNETH LIEBERTHAL, FORMER NATIONAL SECURITY COUNCIL ASIA EXPERT: George Bush doesn't need any other crisis in his in-box at this stage of the game. I think it is especially true now, when the U.S. and China are working very closely together over North Korea and when the U.S. is also distracted in Iraq.
CHINOY: Fueling Washington's concern is a widely held view that Chen is deliberately trying to provoke Beijing to win votes. And, amid Chinese demands that Washington rein Chen in, the precedent set by holding a plebiscite on sensitive issues affecting China led the State Department to issue a blunt warning. RICHARD BOUCHER, STATE DEPARTMENT SPOKESMAN: We would be opposed to any referenda that would change Taiwan's status or move towards independence.
CHINOY: But this view runs counter to President Bush's own calls to expand democracy around the world. And it has angered pro-Taiwan conservatives in Washington. It leaves Mr. Bush, who has worked hard to improve ties with Beijing, juggling a series of sharply conflicting pressures as he prepares to meet China's visiting premier.
(END VIDEOTAPE)
CHINOY: Lou, the challenge for President Bush in his meeting with Premier Wen Jiabao is to convince the Chinese that the administration is seriously concerned about not wanting to see Chen Shui-bian push the envelope, but to do so without antagonizing Taiwan and its many conservative supporters in the United States, but to be sufficiently convincing that the Chinese will continue to cooperate with the United States on key international issues and, perhaps most importantly of all, so that Beijing will not decide that it has to rein Chen Shui-bian in itself -- Lou.
DOBBS: Mike, thank you very much -- Mike Chinoy reporting live from Taipei.
At the conclusion of Premier Wen Jiabao's visit, I'll be interviewing the premier in his first ever appearance on American television. The premier and I will be discussing, of course, Taiwan, the exploding trade deficit between the United States and China, and the global war on terrorism. We will have that interview with Premier Wen here Thursday evening. Please join us.
President Bush and Premier Wen are also expected to be discussing the North Korean nuclear threat. The United States, China and South Korea have now agreed on a proposal that would offer North Korea security guarantees if it ends altogether its nuclear program. That plan calls for North Korea to disarm in coordinated steps. The United States, China, South Korea, Japan and Russia hope the proposal will lead to a second round of nuclear talks with North Korea, perhaps as early as this month. The first round ended in August with little if any, progress.
Coming up next: a dangerous flu outbreak spreading across the country tonight. And now some doctors are resorting to drastic measures to treat their patients, as many of them as possible. Medical correspondent Holly Firfer reports.
Stay with us.
(COMMERCIAL BREAK)
DOBBS: As we reported here Friday, the country's two largest flu vaccine-makers report they have run out, this during what may become the worst influenza outbreak in many years. Now health officials in the hardest-hit parts of the country are preparing to ration vaccine.
Medical correspondent Holly Firfer reports.
(BEGIN VIDEOTAPE)
HOLLY FIRFER, CNN CORRESPONDENT (voice-over): The line for flu shots numbers in the hundreds.
UNIDENTIFIED FEMALE: We waited two hours on Saturday for my husband and I to get ours.
FIRFER: This is Des Moines, Iowa, but could be anywhere USA.
UNIDENTIFIED MALE: We did about 500 shots between Friday and Saturday alone, plus the roughly 170 we had left today.
FIRFER: The health departments in 13 states, seen here in blue, have reported widespread flu outbreaks. And with reports of deaths in Texas and Colorado, some doctors say they are running out of vaccine and can't get any more.
In a typical year, 70 to 75 million Americans get flu shots. This year, 83 million doses were produced, but have all been used.
TOMMY THOMPSON, HEALTH AND HUMAN SERVICES SECRETARY: We're making a survey through CDC of all the state health departments, a lot of the major clinics and a lot of individual doctors' offices and hospitals throughout America, just to find out what is available.
FIRFER: The CDC says manufacturers made plenty of vaccine. It is likely just a distribution issue.
DR. JULIE GERBERDING, CENTERS FOR DISEASE CONTROL: The vaccine manufacturers may have sold all of their vaccine, but there still is vaccine available in many communities.
FIRFER: And there are alternatives. If you are between the ages of six and 49 and in good health, you can get the flu mist vaccine. Adults don't need a doctor's prescription. Just see your pharmacist.
Holly Firfer, CNN.
(END VIDEOTAPE)
DOBBS: In our special report, "Broken Borders," the House of Representatives says American consumers must wait two years before we are entitled to know the country of origin of imported food we consume. Grocers and foodmakers won't have to label meat, fruits and vegetables until 2006, the two-year delay part of the $370 billion so- called omnibus spending bill that would fund government agencies.
This comes after a deadly hepatitis-A outbreak in four states were traced to Mexican scallions. The Senate is expected to vote on that bill Tuesday.
Republican Congressman Tom Tancredo of Colorado called upon the California governor, Arnold Schwarzenegger, to help him squash what Tancredo calls the misguided efforts of a handful of so-called environmental groups. As we reported last week, several groups oppose the extension of a security fence at California's border with Mexico because of environmental concerns.
In a letter, Tancredo told Schwarzenegger that not extending that fence is what will hurt the environment. The congressman said, few things hurt the environment more than massive illegal immigration.
Turning now to tonight's poll question on long-term unemployment. As we reported, long-term unemployment in this country is at its highest level in two decades. The question: Do you think Congress should extend again unemployment benefits, yes or no? Please cast your vote at CNN.com/Lou. We'll have the results for you later in the broadcast.
Up next: American forces in Afghanistan have launched an all-out offensive against al Qaeda and Taliban. Senior Pentagon correspondent Jamie McIntyre will report.
And, after 13 years, Iraq and the United States have taken a major step forward in repairing diplomatic relations. Iraq's new ambassador to the United States, Rend al-Rahim, is our guest.
(COMMERCIAL BREAK)
DOBBS: In Afghanistan, the Army has launched its biggest ever offensive against remnants of the Taliban and al Qaeda, code-named Operation Avalanche. The offensive is designed to make eastern and southern Afghanistan safe for international aid workers, Afghan government officials and, of course, coalition troops.
Senior Pentagon correspondent Jamie McIntyre has the report -- Jamie.
JAMIE MCINTYRE, CNN MILITARY AFFAIRS CORRESPONDENT: Well, Lou, this comes in response to a wave of attacks against aid workers, U.S. soldiers and Afghan government officials.
Some 2,000 American soldiers now will fan out over the southern and eastern part of Afghanistan, along with some Afghan national army troops, to try to hunt down Taliban and al Qaeda remnants before they can hunker down for the winter. The last operation like this, called Mountain Resolve, focused on the northeast part of the country. And that only involved about 1,000 troops, making this latest operation twice as big.
(BEGIN VIDEO CLIP)
LT. COL. BRYAN HILFERTY, COALITION SPOKESMAN: This one is the largest we have ever designed. This will cover the entire eastern, southeastern and southern portion. We want to give the enemy no sanctuary. He's not going to know where we hit. He's not going to know what we're doing but throughout the entire area, we have operations going on.
(END VIDEO CLIP) MCINTYRE: Now, one effort to stop the attacks went awry this week weekend when the U.S. used an A-10 tank killer jets to target a man they suspected of killing two contract workers. The suspect was killed, but so were nine children at this remote village. The U.S. says it didn't know that they were nearby.
Now, the villagers insist the man killed was the wrong man. Pentagon officials dispute that. But a U.S. military investigation is now underway into this entire incident to try to figure out what went wrong -- Lou.
DOBBS: And Jamie, the efforts to find Osama bin Laden and Omar, are they part of this operation, or is there a ratcheting down in the efforts to find them?
MCINTYRE: No, there's still -- one of the primary focus to find both of those men.
These operations are not specifically designed on -- about intelligence, about their location, but they're hopeful, again, that by rounding up people they'll begin to close in on them. They're continuing to look for actionable intelligence that would allow them to capture bin Laden, who remains a top priority.
DOBBS: Jamie, thank you very much. Jamie McIntyre, senior Pentagon correspondent.
Defense Secretary Donald Rumsfeld is taking issue with Army officials who say only two out of ten active duty divisions will be uncommitted and ready for war next year.
Secretary Rumsfeld has just returned from Iraq, Afghanistan and other countries in the region. The secretary of defense said the Army's rating system for combat readiness may be out of date and inappropriate during wartime.
The Army says four divisions will return from Iraq next year, but they will neat six months for rest and retraining and repairing of their equipment to be combat ready.
As violence against U.S. forces and Iraqis continues, my next guest plans to renew diplomatic ties between Washington and Baghdad, saying her duty is to reflect a true and accurate picture of the new Iraq.
Joining me now is ambassador Rend al-Rahim, recently appointed the Iraqi ambassador to the United States.
Ambassador, good to have you with us.
REND AL-RAHIM, IRAQI AMBASSADOR TO U.S.: Thank you.
DOBBS: You have perhaps one of the most difficult diplomatic jobs one could imagine. Your country, effectively, in occupation, working for a governing council.
At this point what would you say is your number one job as ambassador to this country?
AL-RAHIM: I think the first thing that I must achieve is to give an Iraqi face, an Iraqi voice to the emerging sovereignty and independence of the Iraqi nation.
For 13 years there hasn't been an Iraqi representative here in Washington, and commentators have commented on the situation in Iraq of different nationalities, Americans, of Arabs. There has not been an Iraqi official voice that can represent the Iraqi people. That is my No. 1 job.
DOBBS: Ambassador, the idea that security has to be established in Iraq is important for the Iraqi people obviously, for American coalition forces there and for the future of Iraq, that is for those who would rebuild Iraq.
Your best judgment as to how that process is going, what more needs to be done.
AL-RAHIM: I think the most important thing that needs to be done is to bring Iraqis into the process of maintaining security. This is something that we have said all along.
We have to have Iraqis who police the streets, who are civil defense force, who are border police and so on and so forth. This has been a requirement of Iraqis all along, because that's the only way that you can secure the country.
Only Iraqis know how to secure their country. They are the ones who are able to get intelligence. They are the ones who know each other, who know the factions and so on.
I'm glad to say that this process of bringing Iraqis into the security system is accelerating. And I think this is going to be the one item that is going to improve the situation there.
DOBBS: Great concern, the U.S. military has knocked down reports that militia are being invited into a peace -- a order, a security role, saying again, though, that individual Iraqis would be welcome to be under U.S. command.
Is it your judgment that there are a sufficient number of trained Iraqis, who are not connected to the Ba'athist regime of Saddam Hussein, who are available to maintain a security role?
AL-RAHIM: Well, first of all, I think that there clearly is still a great number of people who need to be brought into the police and civil defense force. We do not have nearly enough.
As for the question of militias, I think this is a complete misunderstanding.
What we're doing is finding people who are actually committed to the new Iraq who we know have no allegiance to the old regime, who will become the new order. These are the people that are being brought in to be trained. This is not a new militia that is being created. These people are to come in as their individual capacity and be under U.S. training and U.S. command.
So we need more of those people rather than fewer. And I think we have to begin to build up the numbers as quickly as possible, as we go along.
DOBBS: The issue of violence much lies before you, your government as you proceed toward establishing a permanent government, a government, obviously, in Iraq.
But I want to project just a bit beyond that to ask you what do you see as a principle challenge? First, would it be a contest among Shiah, the Sunni, the Kurds? Do you see it in terms of a resurgence of the elements of the old regime? Are radical Islamists influenced that could develop strongly within Iraq?
Which would you see as a principle challenge?
AL-RAHIM: I think the most important thing that we're going to confront, and I think it will be solved in mechanisms that are being devised right now, is to keep every group inside the country involved and interested in the country.
In other words, this is a multidimensional country with many groups and many religions, and they have to all have a vested interest in the maintenance of this country.
So it's going to be a question of balancing the interests, checks and balances amongst these groups. I think this is the most important achievement that we could have.
DOBBS: Ambassador al Rahim, we thank you very much for being with us.
AL-RAHIM: Thank you.
DOBBS: Coming up next, rebuilding Iraq means rebuilding an economy. And Thomas Foley is in the business of building that economy. He joins us next.
(COMMERCIAL BREAK)
DOBBS: Iraq continues, of course, to suffer from more than three decades of a state run economy, a dictatorial government and the widespread looting of businesses that followed the war against Saddam Hussein.
Joining me now is long time venture capitalist, very successful businessman, who has taken on what is a daunting task for any person: to rebuild and to revitalize Iraq's economy. The coalition provisional authority's head of private sector development, Thomas Foley.
Tom, good to have you here. THOMAS FOLEY, COALITION PROVISIONAL AUTHORITY HEAD OF PRIVATE SECTOR DEVELOPMENT: Thank you very much.
DOBBS: This is a -- $20 billion is the starting point. How soon will that money start making the economy of Iraq better? Noticeably?
FOLEY: Well, we hope as soon as in the first quarter when many of the contracts are left, that that money will start being spent and will create new Iraqi jobs.
DOBBS: Now the first quarter would be moving pretty quickly, if we're talking about major projects. We start to see huge electric power progress. We start seeing the construction of buildings, new schools, whatever the -- roads, infrastructure.
Is that what you have in mind?
FOLEY: Exactly. The beginning of the expenditure of those funds could be as soon as the first quarter.
DOBBS: Now, when we talk about Iraq, most of us still think of it in -- in Saddam -- frankly, in terms of prewar. It is a country of 25 million people. A workforce that is some estimates range as high as 60 percent of them still unemployed.
Give us -- you're on the ground, you know best. Give us the best assessment of the labor force, how many are unemployed, how many you can get back to work?
FOLEY: Well, there are about million in the labor force, we estimate. We think that the actual unemployment rates more likely in the 20s, maybe as high as 30 percent.
But when the supplemental funds are spent, they could create as many as a half million or possibly even a million jobs, which would bring that number down into the teens, which would be...
DOBBS: That half million number, those people would be working for state-run operations or private business?
FOLEY: No, they'd probably -- they could be working for state- run enterprises, but they'd probably would be more likely to be working for private vector businesses who would be contractors.
DOBBS: Contractors, multinationals, international firms or domestic Iraqi firms?
FOLEY: Well, foreign firms could hire Iraqis, which would contribute to Iraqi employment, but my job is to help stimulate the private sector in Iraq. So we're hoping that Iraqi businesses get a big portion of these contracts, as well.
DOBBS: Obviously critical in rebuilding Iraq is a workforce that is sufficiently skilled and educated to be contributive, to be driving forward. Are the Iraqis -- do they have a workforce that will be, from jump street, successful in helping rebuild their economy? FOLEY: Absolutely. The Iraqi workforce is very intelligent, hard working and resourceful people.
In some cases they're going to need some training because many of the developments in the last 20 years have not been available to them in technology and systems. But with that they're going to do just fine.
DOBBS: And you have read and heard, in some cases hear the accounts of concerns about all of this money is going to go to Bechtel; it is going to go Halliburton; it's going to go to unnamed French companies in the rebuilding and too little of that money will move directly into the economy of Iraq.
What are you going to do to be sure you forestall the misallocation of funds and huge amounts of funds?
FOLEY: Well, right now we have a team of people who are working to make sure the request for proposals for these contracts are written in ways that will make sure that Iraqi businessmen and Iraqi jobs are maximized in the expenditure of the funds.
DOBBS: One of your advisers, Michael Fleisher (ph), said in talking about the economy that you're going to try to help build and create with Iraqi partners. "Only the best of you will survive," he said, he is quoted as saying to Iraqi entrepreneurs and businessmen.
Now, for people who've lived in the state-run economy, for three decades, that's got to be chilling, a little concerning to say the least. Do you have any fear that you're moving a little fast on free markets and highly competitive environments in building this economy?
FOLEY: Well, I don't necessarily agree with that. The Iraqi businessmen are very astute, and many of them have been able to be active in the global economy. And we think they're going to do quite well.
But they do need to be able to modernize their systems. They're going to need some training, and they will need to be able to respond to free markets, as you said.
DOBBS: And the bids that are going out, just for the record, are they going to be competitive?
FOLEY: Absolutely. Sure.
DOBBS: And when I said the Bechtel and Halliburton, the issue here for everyone is in those firms, a great deal of expertise resides and they have to be there. At the same time I didn't want to imply that I was being entirely negative about those great firms, who are providing great expertise either. But at the same time I want you watching everybody.
FOLEY: Don't worry.
DOBBS: Tom Foley, thank you very much for being here. FOLEY: Thank you.
DOBBS: We wish you the best of luck in a very important task.
FOLEY: Thank you very much.
DOBBS: Coming up next, your thoughts on exporting America and the growing list of companies that are choosing cheap overseas labor over American workers
And good news on the environment tonight as the worldwide effort to reverse global warming shows some halting; early signs of progress.
Lisa Sylvester reports from Washington.
(COMMERCIAL BREAK)
DOBBS: All this week the United Nations-sponsored climate change conference is taking place in Milan. Participants are pushing for greater government action after the Kyoto Treaty has all but collapsed.
One area of concern is the hole in the southern ozone layer, which is the second largest ever observed. It stretched nearly 11 square -- 11 million square miles. It is at various points larger than the entire continent of North America.
But scientists now say there is promising news.
Lisa Sylvester has that promising news.
(BEGIN VIDEOTAPE)
LISA SYLVESTER, CNN CORRESPONDENT (voice-over): You may see nothing but snow falling. But the earth is also being bathed with ultraviolet rays, and scientists are measuring more rays than ever as the hole in the Antarctic's protective ozone layer grows larger.
But there's good news. Ozone depletion is peeking and should start to reverse itself in a few years, giving naturally created ozone a chance to shrink the hole.
ROBERT WATSON, WORLD BANK CHIEF SCIENTIST: The message is we're moving in the right direction. Governments have been working with the private sector and with the scientists to improve the situation. We will expect a recovery of the ozone layer, but it will take about 50 years.
SYLVESTER: The ozone layer is made up of three oxygen atoms. Bound together they create a blanket that keeps ultraviolet rays out. But substances like chlorine and chlorofluoro carbos, or CFCs, breaks the oxygen molecules apart, tearing a hole in the ozone layer.
As part of the 1987 Montreal Protocol, industries began phasing out the use of chlorofluro carbons in products, including common household goods. The level of CFCs in the atmosphere is slowly being reduced. Scientists say the international effort is paying off.
KRISTALINA GEORGIEVA, WORLD BANK ENVIRONMENT DIRECTOR: Twenty million less cases of skin cancer are due to action taken already by all of us in rich and poor countries alike.
SYLVESTER: But reversing decades of use of CFCs will take time, because chlorine can stay in the atmosphere for years. Scientists say it's important to stay on course by developing alternatives that do not deplete the ozone layer.
HENRY HABICHT, GLOBAL ENVIRONMENT AND TECHNOLOGY FOUNDATION: Technology plays a very big role in the ability of industry to step up to the plate and work with government, and for government to find ways to provide incentives for industry to accelerate the introduction of substitutes has been the key to success of this effort.
SYLVESTER: Cutting CFC emissions is a rare example of widespread global cooperation on an environmental issue.
(on camera) The lack of squabbling has been notable. Developed and developed countries often have different agendas, but the two sides are working together on this issue, along with the business and scientific communities.
Lisa Sylvester, CNN, Washington.
(END VIDEOTAPE)
DOBBS: Taking a look now at some of your thoughts on exporting America.
From New York City: "Lou, many thanks for your requests for information on companies that are offshoring... I believe many of your viewers would be shocked to learn the offshored jobs cover a broad and rapidly expanding spectrum of high-value white-collar jobs, including state-of-the-art research and development. Many people are convinced that offshoring doesn't directly affect their livelihoods, and they may be right - for now. But that could all change, and with astonishing velocity." Phil Stephens.
From Omaha, Nebraska: "I'm not an economist and understand it may be cheaper for the companies to export work, but if they hired and bought American for their products, wouldn't we all ultimately have more money to spend more on their higher priced products? Even though I'm far from rich, I would be willing to spend more to keep Americans working." Colleen Assman.
From Ten Sleep, Wyoming. Now that happens to be one of my favorite town names of all time. "Maybe companies should be looking at relocating in smaller populated and lower income areas in the United States. We have many people in our area who would love to have an $8 an hour year round job! Most of our population lives on less than $2,000 a month per family now with two people working!" That from J. Michael. And it's a great point. From Salt Lake City, Utah: "Isn't it ironic that the same Eli Lilly that outsources jobs is the same Eli Lilly that is trying to keep people like myself from going to Canada for my medicine?" JoAnn Bergsma.
From Indian River Shores, Florida: "Dear Lou, I think the answer to the loss of jobs overseas is fairly simple. Let's outsource the executive positions, too. The same could be done with boards of directors. Once the job losses begin to hit the executive suite, I think the problem will solve itself." Roy Sowley.
From Emerson, New Jersey: "The same Congress that passed record breaking deficits and a pork loaded Medicare 'reform' bill can't bring itself to pass an unemployment benefits extension?" Tom Browne.
And from Punaluu, Hawaii: "Many thanks for a CNN program that does not concentrate on Laci, Michael, et cetera. It's great to get an hour of serious news, whether I agree with your point of view or not." J.W. Kilkenny.
We love hearing from you. E-mail us: LouDobbs@CNN.com. Please include your name and your hometown.
Now for some news just, in from Flandreau, South Dakota. A jury has just found Congressman Bill Janklow guilty of all charges in a reckless driving case. Janklow accused of second degree manslaughter, speeding, reckless driving and running a stop sign.
The Congressman's car hit a motorcyclist from Minnesota, killing him. Janklow faces as much as ten years in prison and a fine of up to $10,000 after being found guilty on all counts.
On Wall Street today, the Dow Jones Industrials within 35 points of 10,000. The Dow gained 102.59. The NASDAQ rose just over 11 points, while the S&P 500 up almost eight.
The widening investigation into mutual fund misconduct has caused many investors to pull their money from the once thriving funds. However, a new report has found some of the wealthiest Americans changing their minds about mutual funds long before this scandal.
Christine Romans is here.
Long before?
CHRISTINE ROMANS, CNN CORRESPONDENT: Long before. The past couple of years rich Americans have come their mutual fund holdings in half. Instead, they're putting their money into hedge funds and real estate.
A recent survey shows these ultra high net worth investors -- these are people who have $5 million or more to invest -- they're seeking higher returns in hedge funds, real estate, reducing their traditional mutual fund holdings to just six percent of their assets. Lou, here is what the average rich portfolio looks like. A quarter in managed accounts, a fifth in individual stocks, 10 percent in bonds, then nine percent in alternative investments like hedge funds. And that's been growing. IRAs and cash each also getting nine percent. Mutual funds, only six percent. Restricted stock options, three percent.
That leaves about eight percent left over for futures, collectibles, charity foundations, other investments.
The survey showing growing distrust of brokers and the investment community, and among those rich investors. Yet 67 percent plan to invest directly into the stock market next year.
DOBBS: Terrific. Sounds like good news for the stock market and investors.
Christine, thanks. Christine Romans.
Coming up, "America Works," our special report this week as we celebrate the people who really keep this country running. Stay with us.
(COMMERCIAL BREAK)
DOBBS: Our poll results tonight: 92 percent of you say Congress should extend unemployment benefits. Eight percent said no. I think this is an issue that has apparently crossed party lines.
Tonight, we begin a series of special reports this week: "America Works." All this week, we will be meeting Americans who have a passion for what they do and with their hard work keep this country running.
We begin our weeklong celebration tonight with a Wisconsin woman. She's been waitressing at Herb's Mug in South Milwaukee for the past 20 years.
Bill Tucker has her story.
(BEGIN VIDEOTAPE)
BILL TUCKER, CNN CORRESPONDENT (voice-over): The day begins early for Peggy Wranovski and her husband Bruce, a firefighter with the South Milwaukee Fire Department.
Peggy's oldest daughter drops her son off on the way to work. Peggy will then get her 4-year-old grandson and her 9-year-old daughter packed and off to school.
PEGGY WRANOVSKI, WAITRESS: My family is very close. We hang out all the time together. I mean, I talk to my mom every day. My sister is, at least once or twice a week, my brothers. I mean, we all call each other and that kind of thing.
So, yes, it's very, very nice. It's -- we're a very close-knit family.
TUCKER: After playing school bus driver, Peggy has time to stop and smell the coffee.
WRANOVSKI: This is my time in the morning where I just get to relax.
TUCKER: Before heading back out the door and off to work.
WRANOVSKI: I like the fast pace. I like lunch where they have to get in and out, and because I'm a mover. I love working Fridays because they're in, they're out, there's a lot of commotion going on. I like that. I like getting jazzy with the people.
TUCKER (on camera): Waitressing is one of those jobs that people barely notice, until they're looking for one. And rarely do they remember their waitresses' name.
WRANOVSKI: It is tough when you have somebody demanding, and you're back and forth and back and forth and back and forth. And they leave you less than 10 percent.
I mean, I'm not their slave, you know, per se, and it's like sometimes they just -- they don't get it.
And then you get people that have been gone for a few years and they come back and they're like, "Oh, my God, Peggy, you're still here," you know. So that's always nice. And that they remember me.
TUCKER (voice-over): Peggy's always earned enough to support herself, and she and her husband own their own home. During her years at Herb's, Peggy has become a part of the place. And the manager, as well.
WRANOVSKI: I love the people I work with. And all the people that come in here are -- it's nice. I do like it. I don't think I'd be here for 20 years. I mean, I came in for a part time job one night, filled out my application. And 20 years later I'm still here, you know.
TUCKER: Bill Tucker, CNN, Herb's Mug, South Milwaukee, Wisconsin.
(END VIDEOTAPE)
DOBBS: Nobody at Herb's Mug would forget Peggy's name, and now a lot of people all over the country won't forget it either.
That's our show for tonight. Thanks for being with us. Tomorrow, in "America Works," we bring you a day in the life of a man who loves his job, loves his family and a plumber you will remember.
Thanks for being with us. For all of us here, good night from New York.
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