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CNN Live At Daybreak
State of the Union; 'Business Buzz'; 'America's Voice'; Tsunami Relief
Aired February 03, 2005 - 06:28 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.
CAROL COSTELLO, CNN ANCHOR: And good morning to you. Welcome to the last half-hour of DAYBREAK. From the Time Warner center in New York, I'm Carol Costello, along with Chad Myers.
"Now in the News."
Georgia's prime minister and a deputy in his government have died of apparent gas poisoning in Tbilisi. It's believed the gas leak in the deputy's home killed the two men.
The top investigator of the U.N.'s oil-for-food program for Iraq says the program was tainted from top to bottom. Paul Volker issues his interim report today on the oil-for-food corruption investigation.
The Senate is expected to vote on President Bush's nominee for attorney general today. Alberto Gonzales faced tough questions from a number of Democrats during his confirmation hearings, but the Senate is expected to give him the job.
Jennifer Lopez and Ricky Martin have signed up, and Alicia Keys and Sting will also perform. It's a special MTV concert for tsunami relief. It's being held in Bangkok, Thailand, and we'll take you there live later on DAYBREAK.
(WEATHER REPORT)
COSTELLO: Let's talk about the president's State of the Union address last night. Did you hear the moaning and groaning? You know, when the president talked about Social Security? Listen closely.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: By the year 2042, the entire system would be exhausted and bankrupt. If steps are not taken to avert that outcome, the only solutions would be dramatically higher taxes, massive new borrowing or sudden and severe cuts in Social Security benefits or other government programs.
(END VIDEO CLIP)
COSTELLO: All right. You heard the moans and groans. President Bush's plan is not going to be an easy sell.
Joining us live now, Congresswoman Allyson Schwartz, a Democrat from Pennsylvania, and Congresswoman Deborah Pryce, a Republican from Ohio. Welcome to you both.
REP. ALLYSON SCHWARTZ (D), PENNSYLVANIA: Thank you very much, Carol.
REP. DEBORAH PRYCE (R), OHIO: Hi. It's good to be here.
COSTELLO: Congressman (sic) Pryce, let's start with you. You heard the boos. Many Democrats said, and may experts say, the Social Security system is not headed for bankruptcy as the president said last night. So, why use such a divisive word?
PRYCE: Well, it is. The fact of the matter is the numbers speak for themselves. It's a classic case of Democrat denial. Today's young workers are paying into the system that they will never see any benefits from if we don't do something now.
A true leader doesn't postpone problems. They fix them. And every year that we wait, it will become more and more and more expensive for this country to face up to.
COSTELLO: But, Congresswoman Pryce, why use that particular word when you know you have to go to Congress to sell your plan?
PRYCE: Well, because that's the word that's appropriate. There's no silver lining here. We're not trying to pretty it up. That's exactly where it's going. The actuarials, all of the people, the economists who have looked at this agree that we will have two people paying for every one. And we have set the system where there were 16 people paying for every one in the beginning. It was set up at a time when people retired at age 65, but the lifespan was 62. Most people didn't even collect Social Security then.
COSTELLO: Congresswoman Schwartz, the president did release some details of his plan. And allow me to expound for just a second. He says if you're 55 years old or older, you don't have to worry about anything, because nothing will change for you. If you're younger, you can contribute up to 4 percent of your wages into private accounts in the first year, and I think the cap on that would be $1,000. The plan is voluntary and would begin in 2009. Will Democrats by at least part of that plan?
SCHWARTZ: No. And the reason is, is that the president did overstate the situation of Social Security, which doesn't mean that we shouldn't be addressing some of the financial difficulties we'll be seeing in 50 years. In 50 years, we will have about 80 percent of the money we need to pay full benefits. So, we have to look at that, and we have to take some serious actions.
What the president is recommending is that we completely undermine the principles underlying Social Security that has worked for older Americans for 60 years. It's kept older Americans out of poverty. And what the president wants to do is to cut benefits almost in half for future older Americans.
PRYCE: That is just not true.
SCHWARTZ: And to have them to be able to rely on their own savings. And there's no question that we are deeply concerned about privatizing Social Security.
COSTELLO: Well, you know, the...
SCHWARTZ: Having said that...
COSTELLO: I know that Democrats are also deeply concerned about Social Security. The president also said he's open to ideas. Do Democrats have ideas of their own?
SCHWARTZ: Well, there's no question we could reach a solution, a bipartisan solution for some of the financial problems that we face in Social Security. But what we will not do is to change the basic guarantee that we have made to Americans: that they will not die in poverty.
PRYCE: Allyson, what's your solution?
SCHWARTZ: And that's what Social Security has done.
PRYCE: There are no solutions coming forward from the Democrats. They're the party of no. They're obstructing every idea Republicans have. We would just like them to come up with some ideas to put on the table.
SCHWARTZ: Well, let me just say...
(CROSSTALK)
COSTELLO: Hold on a second. One at a time. One at a time.
SCHWARTZ: I'm sorry.
COSTELLO: Congresswoman Pryce, I must ask you this. The president made no mention of how he'd pay for a change in Social Security.
PRYCE: That's right.
COSTELLO: How much will it cost?
PRYCE: It will cost more and more and more each year we wait. That's why true leaders don't postpone problems for other presidents and other congresses. The sooner we act the less it will cost. And the sooner we come to agreement with our Democratic colleagues, the less it will cost. But if we...
COSTELLO: Congresswoman Schwartz, can you address that? How much do you think it will cost?
SCHWARTZ: Absolutely. Well, everyone, the president has said, and at least some of his people have recognized, that we're talking about -- the president is talking about borrowing -- because we don't have the money -- borrowing $2 trillion in order to take 40 percent of the Social Security money out of the system and put it into private accounts. That is a huge, huge fiscally irresponsible move on the part of the president, who has already put this country into deep debt. We're already borrowing trillions of dollars from foreign countries just to meet the obligations we have now.
What the Democrats are saying and certainly what I'm saying is that we need a fiscally-responsible solution that meeting...
PRYCE: You have to propose one.
SCHWARTZ: ... Social Security and bringing the deficit down.
COSTELLO: Last word from Congresswoman Pryce. Go ahead.
PRYCE: Yes. The Democrats are great at saying no, no, no. But they haven't come up with a plan. They just want to stand in the way of progress. This is the responsible thing to do, because every minute we wait it gets more expensive for this country. There are ways to finance this. We spent two days discussing it last weekend, and it's imperative that we do it. The president isn't doing this just because he feels like it. He knows it has to be done.
COSTELLO: So, it will be a battle royal in Congress. That much is for sure. Congresswoman Pryce from Ohio, Congresswoman Schwartz from Pennsylvania, thanks to both of you for joining DAYBREAK this morning.
The president paid tribute to the men and women of America's armed forces last night as well. And one wounded soldier had a special seat for the speech.
CNN's Bill Hemmer has more from that soldier on "AMERICAN MORNING."
Good morning -- Bill.
BILL HEMMER, CNN ANCHOR: Hey, Carol, good morning to you.
We'll talk to Army Staff Sergeant Naberto Lora (ph). Sergeant Lora (ph), invited last night, represented the U.S. Army during the State of the Union address. He lost his right arm last year when an RPG hit his Humvee in Iraq. He'll share his story of what happened that day and how he felt to represent the U.S. Army last night. So, we'll talk to him this morning.
Also, more on that very poignant moment toward the end of the speech last night when that woman from Iraq who had just voted on Sunday turned around to hug the mother of a member of the U.S. military killed in Falluja recently. It was a moment that many observers down in Washington say, Carol, they have never seen in a State of the Union address at any point. So, we'll have that for you at the top of the hour.
COSTELLO: Oh, you're right. It was so touching. Thank you, Bill. We'll catch you in about 20 minutes.
HEMMER: Sure.
COSTELLO: Don't go anywhere. We've still got a lot more to tell you about on DAYBREAK. It's not easy to find a job when you first get out of the joint. But Martha Stewart already has one lined up. Our Carrie Lee joins us live from the Nasdaq Marketsite at 44 minutes past with that.
Plus, helping the victims of December's tsunamis. We'll take you live to Bangkok for a look at a concert to raise money for the victims. That's coming up at 51 minutes past.
But first, here's a look at what else is making news this Thursday morning.
(COMMERCIAL BREAK)
COSTELLO: It's time now for a little "Business Buzz." From a prison cell to the boardroom. Carrie Lee joins us live from the Nasdaq Marketsite with word on Martha Stewart's post-prison plans.
They sound pretty good, actually.
CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Yes. You know she wasn't just going to sit around, Carol. The lady always keeps busy. And now, Martha Stewart is planning to host a new version of the reality show called "The Apprentice Martha Stewart."
Now, it's going to be separate from Donald Trump's version. The premise here, though, is sort of similar. They're expected to film in either New York or Connecticut with about 16 to 18 contestants competing for a one-year job with her company and a $250,000 salary. Casting has already begun. A graphic with Stewart's face touting "Apply now to be Martha Stewart's apprentice" has already popped up on NBC's Web site.
Now, Stewart is not allowed to conduct business while she's in prison. She comes out in March. So, the deal was reportedly completed before she started her five-month jail sentence back in October.
In September, she's also going to revive her daily show. It's going to be a little bit different with things like celebrity guests. And shooting for "The Apprentice" could start in March. No official word on whether she's going to use that same tag line, "You're fired." But Donald Trump himself says probably not.
I have an idea for a tag line. How about, you're cooked? I don't know. I still need to work on that one, I guess.
COSTELLO: I like that, Carrie.
LEE: Yes.
COSTELLO: Thank you.
LEE: OK. COSTELLO: Most of those who watched the president's State of the Union address gave it a positive review. But it should be noted that most of those who watched were Republicans. Presumably, they're already in the president's corner.
A report on the CNN/"USA Today"/Gallup Poll from Frank Newport, editor-in-chief. He's live in Princeton, New Jersey, this morning.
Good morning, Frank.
FRANK NEWPORT, GALLUP POLL EDITOR-IN-CHIEF: Good morning, Carol.
That's not unusual. Usually, a president's party faithful are those who tend to watch the speech.
Bush got pretty good marks last night, but not the best that he has seen. This is the percent of speech watchers who said that his speech was very positive. That's the grade they would give it. It was 60 percent last night at the top of the list.
I've compared it to his speech last year, which was kind of a bomb. Only 45 percent then. But go back to 2002, 74 percent, that was after 9/11. But even his first speech in 2001, 66 percent.
All of those are higher than Clinton back in 1998. However, Clinton's speech actually moved the needle on his approval rating despite those fairly low positive ratings.
Here's a little comparison of before and after the speech. These are speech watchers. They moved, thought more positively about his handling of the economy on the left there. They really thought that he did a better job on Social Security after the speech than they did before the speech. See the big jump there of about 15 points, thinking that he would move the country in the right direction on SS, Social Security. A little movement on Iraq over there to the right- hand side.
Did he make a convincing case for Social Security, which you were just talking about with your House of Representative guests there, Carol? Well, 74 percent said yes. And we compared that in his big speech in January, his State of the Union address in January of 2003, he was trying to convince Americans about going into Iraq. And just 67 said he made a convincing case then. So, he actually did a pretty good job on Social Security based on the watchers of his speech last night -- Carol.
COSTELLO: Yes, but those same watchers, do they believe that Social Security should be the top priority now?
NEWPORT: No. Even after all of the attention that he gave it in his speech, Iraq and terrorism still beat out Social Security when we gave the watchers last night some choices and said, what's the highest priority? You can see the top two. Social Security comes in third, and then the economy and health care -- Carol.
COSTELLO: Interesting numbers. Frank Newport live from Princeton, New Jersey. Thank you.
Your news, money, weather and sports. It is 6:44 Eastern. Here's what's all new this morning.
Condoleezza Rice is starting her trip abroad as secretary of state among friends. Britain is first up followed by a major speech in France to mend fences over Iraq, and then she'll stop briefly in the Middle East.
Potential jurors in the Michael Jackson case answered dozens of written questions ranging from their health history to their feelings about race relations. Attorneys in Jackson's child molestation case are scheduled to question the jurors directly starting on Monday.
In money news, Blockbuster is upping the ante in its hostile takeover bid for Hollywood Video. The cash and stock offer now stands at more than a billion dollars. The movie rental giant is trying to derail Hollywood's pending sale to Movie Gallery.
In culture, the ballots are in the mail. Oscar ballots were sent out to more than 5,800 voting members of the Academy of Motion Picture Arts and Sciences. The ballots must be returned by February 22. That's five days before the Academy Awards.
In sports, the Wake Forest Demon Deacons survived a late rally by the Duke Blue Devils for a 92-89 win. Chris Paul of the Demons with 23 points.
(WEATHER REPORT)
COSTELLO: Those are the latest headlines for you this morning.
Still ahead on DAYBREAK, a devastated landscape, but help is on the way for victims of the tsunamis. MTV's charity concert has brought the stars to Bangkok, Thailand. And we'll take you there, too, in a moment.
(COMMERCIAL BREAK)
COSTELLO: In just a short time from now the president will take part in a prayer breakfast with some of the nation's most prominent preachers.
CNN's Soledad O'Brien will be speaking with one of them this morning. She's live in Washington with a look ahead to "AMERICAN MORNING."
Good morning -- Soledad.
SOLEDAD O'BRIEN, CNN ANCHOR: Hey, Carol, good morning to you.
The president's State of the Union address last night, obviously Mr. Bush spent some of that speech addressing issues important to evangelicals. But was it enough to satisfy that base, which was really crucial to his re-election? This morning, we talk to one of the president's spiritual advisors. The Reverend Franklin Graham is our guest this morning on "AMERICAN MORNING" coming up at the top of the hour -- Carol.
COSTELLO: We look forward to it. Thank you, Soledad.
Nine tsunami survivors have been rescued from an island off the coast of India. They had been living and hunting in a forest since the tsunami destroyed their village 38 days earlier. It's people like them who are the focus of the Asia Aid concert in Bangkok, Thailand, today. And that's where we find CNN's Aneesh Raman.
Good morning -- Aneesh.
ANEESH RAMAN, CNN CORRESPONDENT: Carol, good morning to you.
A lot of activity behind me at the red carpet ahead of what is going to be a massive concert. It's about to begin in about an hour or so. The intention here is not just to commemorate those perished in the tsunamis, but really to empower the young generation to get involved in the relief effort.
Now, artists from all over the world are here to perform, some of them from the hardest-hit countries by the tsunamis. From the U.S., Alicia Keys, Kelly Clarkson, Good Charlotte, Simple Plan just to name a few.
Alicia Keys herself will the host of tonight's event. We spoke to her earlier to find out what the goal of tonight is.
(BEGIN VIDEO CLIP)
ALICIA KEYS, TSUNAMI CONCERT HOST: This vision, this sight of all of these musicians coming together, these packages that are put together to really bring you face to face with what's going on, what happened and where we're going and how you can make a difference.
(END VIDEO CLIP)
RAMAN: Now, Carol, this event is being organized by MTV with partners, including CNN. The goal is to have a potential viewing audience of more than one billion people worldwide. They're distributing this concert free of rights to anyone that wants it. They're hoping that donations will be high. The majority of that money will go to UNICEF, the United Nations Children's Fund, as well as among local charities here in Thailand.
But perhaps most importantly, Carol, if that world attention is once again on the lingering aftermath of that tsunami -- Carol.
COSTELLO: Aneesh, can you hear me?
RAMAN: Yes.
COSTELLO: You can hear me. I just wondered what was going on behind you. Is that the actual stage? RAMAN: Right behind me is actually the red carpet. The stage is inside an enclosed arena. As you can imagine, it's 10 times crazier in there as it is out here. People are just starting to arrive. The concert is a little over an hour away. Some 12 acts will be performing live, some 34 people total. Sting, 50 Cent have all given videotaped messages. Really, an outpouring of support from the artist community to try and empower young kids to get involved in this effort.
COSTELLO: It will be quite a show for them. Aneesh Raman, thank you for that report.
This is DAYBREAK for a Thursday morning.
(COMMERCIAL BREAK)
COSTELLO: Now for some great pictures for you out of Hawaii. Lava from the Kilauea volcano has carved two new paths into the ocean. Amazing pictures, Chad.
CHAD MYERS, CNN METEOROLOGIST: It's coming out of the Pu'u O'o vent here just to the new side of Mauna Loa. And a lot of folks don't really realize how tall these volcanoes really are, this Pu'u O'o vent over there by Kilauea.
The entire area there, the big island is 13,600 feet high at Mauna Loa. But it extends all the way down to the ocean floor, Carol. If you go from the ocean floor to the top of Mauna Loa, it is a 56,000-foot mountain.
COSTELLO: Wow!
MYERS: This is obviously one of the most active volcanoes in the entire world right now. That water, steam being steamed by obviously that 3,000-degree magma lava, if you will.
COSTELLO: Well, I like the way you said that. Magma.
MYERS: Well, you know. But it is a -- I just saw this about maybe half a year ago. And it is an amazing sight. You drive down the road that you're supposed to go see this. It's called the end of the road, the end of the trail. And as you drive down there, there is just lava right over the road. And the signs, the 35-mile-per-hour signs are right in the middle of the road. And lava, it's all around it. You can't obviously go any farther. You have to park your car and walk.
COSTELLO: That's just amazing.
MYERS: Just amazing shots coming out of the Kilauea, the Pu'u O'o vent.
COSTELLO: I like the way you say that, too, Chad.
MYERS: I try. COSTELLO: You know, I'm perusing the morning headlines. And, frankly, to be honest with our viewers, I haven't had much time, because I was concentrating on Social Security.
Some of the details of the president's plans are listed in the papers this morning, and it's very interesting. Eligibility: people born before 1949 would not be affected at all. If you're younger, you'd be affected, though. People born in 1950 or later could divert up to 4 percent of income subject to Social Security taxes into private accounts up to $1,000 a year, and that cap would eventually be phased out.
Now, all of this would be phased in between 2009 and 2011. But you heard from our debate earlier between the Republican congresswoman and the Democratic congresswoman that any Social Security plan, it's going to be rough-going.
MYERS: It is. And, you know, we've been getting a lot of e- mails saying that, you know, this plan does not allow you to buy Enron-type companies, so that you get your whole nest egg wiped out. This is going to be, according to his plan, a very small area, a small arena of potential investments that are very safe and straight on through.
COSTELLO: The interesting part, too, for many of our viewers e- mailing in this morning, many of them don't feel the Social Security system is broke.
MYERS: Yes.
COSTELLO: So, the president will have to convince the American people, or a great number of them, because a lot of people do believe, too, that there is something wrong with the Social Security system. But he's really going to have to sell that; that Social Security really needs change at this particular time.
MYERS: And that's our major focus right now.
COSTELLO: Exactly. Three youngsters, Chad, from Camden, New Jersey, got a cool prize for their hard work.
MYERS: Yes, they did.
COSTELLO: They really did. They're going to the Super Bowl. They got tickets.
MYERS: They wrote a great essay.
COSTELLO: They did. Tickets and transportation were given by an anonymous donor as the prize for a Camden Boys and Girls Club essay contest. The kids will fly to Jacksonville on Sunday just in time for the big game.
(BEGIN VIDEO CLIP)
RONNIE LEARY, TICKET WINNER: I'm ecstatic. I'm hyped right now. My heart won't stop pounding right now.
DANIELLE WEATHERS, TICKET WINNER: They're giving back to the community, and I love watching the Eagles play. So, it means a lot to me.
FATIMAH DALE, TICKET WINNER: They made me a more positive person, because this is a positive place for kids.
UNIDENTIFIED MALE: Ronnie Leary.
(END VIDEO CLIP)
COSTELLO: Oh, the winning essays were about the positive effects of the Boys and Girls Club.
MYERS: You don't think any of them are going to be rooting for New England, do you?
COSTELLO: Well, I don't know. I don't think they really care.
MYERS: No, I know.
COSTELLO: I just think they want to go the party. And that would be enough for me, too, I must say.
MYERS: It sure would.
COSTELLO: From the Time Warner center in New York, I'm Carol Costello, along with Chad Myers. "AMERICAN MORNING" starts right now.
MYERS: See you tomorrow.
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Aired February 3, 2005 - 06:28 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: And good morning to you. Welcome to the last half-hour of DAYBREAK. From the Time Warner center in New York, I'm Carol Costello, along with Chad Myers.
"Now in the News."
Georgia's prime minister and a deputy in his government have died of apparent gas poisoning in Tbilisi. It's believed the gas leak in the deputy's home killed the two men.
The top investigator of the U.N.'s oil-for-food program for Iraq says the program was tainted from top to bottom. Paul Volker issues his interim report today on the oil-for-food corruption investigation.
The Senate is expected to vote on President Bush's nominee for attorney general today. Alberto Gonzales faced tough questions from a number of Democrats during his confirmation hearings, but the Senate is expected to give him the job.
Jennifer Lopez and Ricky Martin have signed up, and Alicia Keys and Sting will also perform. It's a special MTV concert for tsunami relief. It's being held in Bangkok, Thailand, and we'll take you there live later on DAYBREAK.
(WEATHER REPORT)
COSTELLO: Let's talk about the president's State of the Union address last night. Did you hear the moaning and groaning? You know, when the president talked about Social Security? Listen closely.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: By the year 2042, the entire system would be exhausted and bankrupt. If steps are not taken to avert that outcome, the only solutions would be dramatically higher taxes, massive new borrowing or sudden and severe cuts in Social Security benefits or other government programs.
(END VIDEO CLIP)
COSTELLO: All right. You heard the moans and groans. President Bush's plan is not going to be an easy sell.
Joining us live now, Congresswoman Allyson Schwartz, a Democrat from Pennsylvania, and Congresswoman Deborah Pryce, a Republican from Ohio. Welcome to you both.
REP. ALLYSON SCHWARTZ (D), PENNSYLVANIA: Thank you very much, Carol.
REP. DEBORAH PRYCE (R), OHIO: Hi. It's good to be here.
COSTELLO: Congressman (sic) Pryce, let's start with you. You heard the boos. Many Democrats said, and may experts say, the Social Security system is not headed for bankruptcy as the president said last night. So, why use such a divisive word?
PRYCE: Well, it is. The fact of the matter is the numbers speak for themselves. It's a classic case of Democrat denial. Today's young workers are paying into the system that they will never see any benefits from if we don't do something now.
A true leader doesn't postpone problems. They fix them. And every year that we wait, it will become more and more and more expensive for this country to face up to.
COSTELLO: But, Congresswoman Pryce, why use that particular word when you know you have to go to Congress to sell your plan?
PRYCE: Well, because that's the word that's appropriate. There's no silver lining here. We're not trying to pretty it up. That's exactly where it's going. The actuarials, all of the people, the economists who have looked at this agree that we will have two people paying for every one. And we have set the system where there were 16 people paying for every one in the beginning. It was set up at a time when people retired at age 65, but the lifespan was 62. Most people didn't even collect Social Security then.
COSTELLO: Congresswoman Schwartz, the president did release some details of his plan. And allow me to expound for just a second. He says if you're 55 years old or older, you don't have to worry about anything, because nothing will change for you. If you're younger, you can contribute up to 4 percent of your wages into private accounts in the first year, and I think the cap on that would be $1,000. The plan is voluntary and would begin in 2009. Will Democrats by at least part of that plan?
SCHWARTZ: No. And the reason is, is that the president did overstate the situation of Social Security, which doesn't mean that we shouldn't be addressing some of the financial difficulties we'll be seeing in 50 years. In 50 years, we will have about 80 percent of the money we need to pay full benefits. So, we have to look at that, and we have to take some serious actions.
What the president is recommending is that we completely undermine the principles underlying Social Security that has worked for older Americans for 60 years. It's kept older Americans out of poverty. And what the president wants to do is to cut benefits almost in half for future older Americans.
PRYCE: That is just not true.
SCHWARTZ: And to have them to be able to rely on their own savings. And there's no question that we are deeply concerned about privatizing Social Security.
COSTELLO: Well, you know, the...
SCHWARTZ: Having said that...
COSTELLO: I know that Democrats are also deeply concerned about Social Security. The president also said he's open to ideas. Do Democrats have ideas of their own?
SCHWARTZ: Well, there's no question we could reach a solution, a bipartisan solution for some of the financial problems that we face in Social Security. But what we will not do is to change the basic guarantee that we have made to Americans: that they will not die in poverty.
PRYCE: Allyson, what's your solution?
SCHWARTZ: And that's what Social Security has done.
PRYCE: There are no solutions coming forward from the Democrats. They're the party of no. They're obstructing every idea Republicans have. We would just like them to come up with some ideas to put on the table.
SCHWARTZ: Well, let me just say...
(CROSSTALK)
COSTELLO: Hold on a second. One at a time. One at a time.
SCHWARTZ: I'm sorry.
COSTELLO: Congresswoman Pryce, I must ask you this. The president made no mention of how he'd pay for a change in Social Security.
PRYCE: That's right.
COSTELLO: How much will it cost?
PRYCE: It will cost more and more and more each year we wait. That's why true leaders don't postpone problems for other presidents and other congresses. The sooner we act the less it will cost. And the sooner we come to agreement with our Democratic colleagues, the less it will cost. But if we...
COSTELLO: Congresswoman Schwartz, can you address that? How much do you think it will cost?
SCHWARTZ: Absolutely. Well, everyone, the president has said, and at least some of his people have recognized, that we're talking about -- the president is talking about borrowing -- because we don't have the money -- borrowing $2 trillion in order to take 40 percent of the Social Security money out of the system and put it into private accounts. That is a huge, huge fiscally irresponsible move on the part of the president, who has already put this country into deep debt. We're already borrowing trillions of dollars from foreign countries just to meet the obligations we have now.
What the Democrats are saying and certainly what I'm saying is that we need a fiscally-responsible solution that meeting...
PRYCE: You have to propose one.
SCHWARTZ: ... Social Security and bringing the deficit down.
COSTELLO: Last word from Congresswoman Pryce. Go ahead.
PRYCE: Yes. The Democrats are great at saying no, no, no. But they haven't come up with a plan. They just want to stand in the way of progress. This is the responsible thing to do, because every minute we wait it gets more expensive for this country. There are ways to finance this. We spent two days discussing it last weekend, and it's imperative that we do it. The president isn't doing this just because he feels like it. He knows it has to be done.
COSTELLO: So, it will be a battle royal in Congress. That much is for sure. Congresswoman Pryce from Ohio, Congresswoman Schwartz from Pennsylvania, thanks to both of you for joining DAYBREAK this morning.
The president paid tribute to the men and women of America's armed forces last night as well. And one wounded soldier had a special seat for the speech.
CNN's Bill Hemmer has more from that soldier on "AMERICAN MORNING."
Good morning -- Bill.
BILL HEMMER, CNN ANCHOR: Hey, Carol, good morning to you.
We'll talk to Army Staff Sergeant Naberto Lora (ph). Sergeant Lora (ph), invited last night, represented the U.S. Army during the State of the Union address. He lost his right arm last year when an RPG hit his Humvee in Iraq. He'll share his story of what happened that day and how he felt to represent the U.S. Army last night. So, we'll talk to him this morning.
Also, more on that very poignant moment toward the end of the speech last night when that woman from Iraq who had just voted on Sunday turned around to hug the mother of a member of the U.S. military killed in Falluja recently. It was a moment that many observers down in Washington say, Carol, they have never seen in a State of the Union address at any point. So, we'll have that for you at the top of the hour.
COSTELLO: Oh, you're right. It was so touching. Thank you, Bill. We'll catch you in about 20 minutes.
HEMMER: Sure.
COSTELLO: Don't go anywhere. We've still got a lot more to tell you about on DAYBREAK. It's not easy to find a job when you first get out of the joint. But Martha Stewart already has one lined up. Our Carrie Lee joins us live from the Nasdaq Marketsite at 44 minutes past with that.
Plus, helping the victims of December's tsunamis. We'll take you live to Bangkok for a look at a concert to raise money for the victims. That's coming up at 51 minutes past.
But first, here's a look at what else is making news this Thursday morning.
(COMMERCIAL BREAK)
COSTELLO: It's time now for a little "Business Buzz." From a prison cell to the boardroom. Carrie Lee joins us live from the Nasdaq Marketsite with word on Martha Stewart's post-prison plans.
They sound pretty good, actually.
CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Yes. You know she wasn't just going to sit around, Carol. The lady always keeps busy. And now, Martha Stewart is planning to host a new version of the reality show called "The Apprentice Martha Stewart."
Now, it's going to be separate from Donald Trump's version. The premise here, though, is sort of similar. They're expected to film in either New York or Connecticut with about 16 to 18 contestants competing for a one-year job with her company and a $250,000 salary. Casting has already begun. A graphic with Stewart's face touting "Apply now to be Martha Stewart's apprentice" has already popped up on NBC's Web site.
Now, Stewart is not allowed to conduct business while she's in prison. She comes out in March. So, the deal was reportedly completed before she started her five-month jail sentence back in October.
In September, she's also going to revive her daily show. It's going to be a little bit different with things like celebrity guests. And shooting for "The Apprentice" could start in March. No official word on whether she's going to use that same tag line, "You're fired." But Donald Trump himself says probably not.
I have an idea for a tag line. How about, you're cooked? I don't know. I still need to work on that one, I guess.
COSTELLO: I like that, Carrie.
LEE: Yes.
COSTELLO: Thank you.
LEE: OK. COSTELLO: Most of those who watched the president's State of the Union address gave it a positive review. But it should be noted that most of those who watched were Republicans. Presumably, they're already in the president's corner.
A report on the CNN/"USA Today"/Gallup Poll from Frank Newport, editor-in-chief. He's live in Princeton, New Jersey, this morning.
Good morning, Frank.
FRANK NEWPORT, GALLUP POLL EDITOR-IN-CHIEF: Good morning, Carol.
That's not unusual. Usually, a president's party faithful are those who tend to watch the speech.
Bush got pretty good marks last night, but not the best that he has seen. This is the percent of speech watchers who said that his speech was very positive. That's the grade they would give it. It was 60 percent last night at the top of the list.
I've compared it to his speech last year, which was kind of a bomb. Only 45 percent then. But go back to 2002, 74 percent, that was after 9/11. But even his first speech in 2001, 66 percent.
All of those are higher than Clinton back in 1998. However, Clinton's speech actually moved the needle on his approval rating despite those fairly low positive ratings.
Here's a little comparison of before and after the speech. These are speech watchers. They moved, thought more positively about his handling of the economy on the left there. They really thought that he did a better job on Social Security after the speech than they did before the speech. See the big jump there of about 15 points, thinking that he would move the country in the right direction on SS, Social Security. A little movement on Iraq over there to the right- hand side.
Did he make a convincing case for Social Security, which you were just talking about with your House of Representative guests there, Carol? Well, 74 percent said yes. And we compared that in his big speech in January, his State of the Union address in January of 2003, he was trying to convince Americans about going into Iraq. And just 67 said he made a convincing case then. So, he actually did a pretty good job on Social Security based on the watchers of his speech last night -- Carol.
COSTELLO: Yes, but those same watchers, do they believe that Social Security should be the top priority now?
NEWPORT: No. Even after all of the attention that he gave it in his speech, Iraq and terrorism still beat out Social Security when we gave the watchers last night some choices and said, what's the highest priority? You can see the top two. Social Security comes in third, and then the economy and health care -- Carol.
COSTELLO: Interesting numbers. Frank Newport live from Princeton, New Jersey. Thank you.
Your news, money, weather and sports. It is 6:44 Eastern. Here's what's all new this morning.
Condoleezza Rice is starting her trip abroad as secretary of state among friends. Britain is first up followed by a major speech in France to mend fences over Iraq, and then she'll stop briefly in the Middle East.
Potential jurors in the Michael Jackson case answered dozens of written questions ranging from their health history to their feelings about race relations. Attorneys in Jackson's child molestation case are scheduled to question the jurors directly starting on Monday.
In money news, Blockbuster is upping the ante in its hostile takeover bid for Hollywood Video. The cash and stock offer now stands at more than a billion dollars. The movie rental giant is trying to derail Hollywood's pending sale to Movie Gallery.
In culture, the ballots are in the mail. Oscar ballots were sent out to more than 5,800 voting members of the Academy of Motion Picture Arts and Sciences. The ballots must be returned by February 22. That's five days before the Academy Awards.
In sports, the Wake Forest Demon Deacons survived a late rally by the Duke Blue Devils for a 92-89 win. Chris Paul of the Demons with 23 points.
(WEATHER REPORT)
COSTELLO: Those are the latest headlines for you this morning.
Still ahead on DAYBREAK, a devastated landscape, but help is on the way for victims of the tsunamis. MTV's charity concert has brought the stars to Bangkok, Thailand. And we'll take you there, too, in a moment.
(COMMERCIAL BREAK)
COSTELLO: In just a short time from now the president will take part in a prayer breakfast with some of the nation's most prominent preachers.
CNN's Soledad O'Brien will be speaking with one of them this morning. She's live in Washington with a look ahead to "AMERICAN MORNING."
Good morning -- Soledad.
SOLEDAD O'BRIEN, CNN ANCHOR: Hey, Carol, good morning to you.
The president's State of the Union address last night, obviously Mr. Bush spent some of that speech addressing issues important to evangelicals. But was it enough to satisfy that base, which was really crucial to his re-election? This morning, we talk to one of the president's spiritual advisors. The Reverend Franklin Graham is our guest this morning on "AMERICAN MORNING" coming up at the top of the hour -- Carol.
COSTELLO: We look forward to it. Thank you, Soledad.
Nine tsunami survivors have been rescued from an island off the coast of India. They had been living and hunting in a forest since the tsunami destroyed their village 38 days earlier. It's people like them who are the focus of the Asia Aid concert in Bangkok, Thailand, today. And that's where we find CNN's Aneesh Raman.
Good morning -- Aneesh.
ANEESH RAMAN, CNN CORRESPONDENT: Carol, good morning to you.
A lot of activity behind me at the red carpet ahead of what is going to be a massive concert. It's about to begin in about an hour or so. The intention here is not just to commemorate those perished in the tsunamis, but really to empower the young generation to get involved in the relief effort.
Now, artists from all over the world are here to perform, some of them from the hardest-hit countries by the tsunamis. From the U.S., Alicia Keys, Kelly Clarkson, Good Charlotte, Simple Plan just to name a few.
Alicia Keys herself will the host of tonight's event. We spoke to her earlier to find out what the goal of tonight is.
(BEGIN VIDEO CLIP)
ALICIA KEYS, TSUNAMI CONCERT HOST: This vision, this sight of all of these musicians coming together, these packages that are put together to really bring you face to face with what's going on, what happened and where we're going and how you can make a difference.
(END VIDEO CLIP)
RAMAN: Now, Carol, this event is being organized by MTV with partners, including CNN. The goal is to have a potential viewing audience of more than one billion people worldwide. They're distributing this concert free of rights to anyone that wants it. They're hoping that donations will be high. The majority of that money will go to UNICEF, the United Nations Children's Fund, as well as among local charities here in Thailand.
But perhaps most importantly, Carol, if that world attention is once again on the lingering aftermath of that tsunami -- Carol.
COSTELLO: Aneesh, can you hear me?
RAMAN: Yes.
COSTELLO: You can hear me. I just wondered what was going on behind you. Is that the actual stage? RAMAN: Right behind me is actually the red carpet. The stage is inside an enclosed arena. As you can imagine, it's 10 times crazier in there as it is out here. People are just starting to arrive. The concert is a little over an hour away. Some 12 acts will be performing live, some 34 people total. Sting, 50 Cent have all given videotaped messages. Really, an outpouring of support from the artist community to try and empower young kids to get involved in this effort.
COSTELLO: It will be quite a show for them. Aneesh Raman, thank you for that report.
This is DAYBREAK for a Thursday morning.
(COMMERCIAL BREAK)
COSTELLO: Now for some great pictures for you out of Hawaii. Lava from the Kilauea volcano has carved two new paths into the ocean. Amazing pictures, Chad.
CHAD MYERS, CNN METEOROLOGIST: It's coming out of the Pu'u O'o vent here just to the new side of Mauna Loa. And a lot of folks don't really realize how tall these volcanoes really are, this Pu'u O'o vent over there by Kilauea.
The entire area there, the big island is 13,600 feet high at Mauna Loa. But it extends all the way down to the ocean floor, Carol. If you go from the ocean floor to the top of Mauna Loa, it is a 56,000-foot mountain.
COSTELLO: Wow!
MYERS: This is obviously one of the most active volcanoes in the entire world right now. That water, steam being steamed by obviously that 3,000-degree magma lava, if you will.
COSTELLO: Well, I like the way you said that. Magma.
MYERS: Well, you know. But it is a -- I just saw this about maybe half a year ago. And it is an amazing sight. You drive down the road that you're supposed to go see this. It's called the end of the road, the end of the trail. And as you drive down there, there is just lava right over the road. And the signs, the 35-mile-per-hour signs are right in the middle of the road. And lava, it's all around it. You can't obviously go any farther. You have to park your car and walk.
COSTELLO: That's just amazing.
MYERS: Just amazing shots coming out of the Kilauea, the Pu'u O'o vent.
COSTELLO: I like the way you say that, too, Chad.
MYERS: I try. COSTELLO: You know, I'm perusing the morning headlines. And, frankly, to be honest with our viewers, I haven't had much time, because I was concentrating on Social Security.
Some of the details of the president's plans are listed in the papers this morning, and it's very interesting. Eligibility: people born before 1949 would not be affected at all. If you're younger, you'd be affected, though. People born in 1950 or later could divert up to 4 percent of income subject to Social Security taxes into private accounts up to $1,000 a year, and that cap would eventually be phased out.
Now, all of this would be phased in between 2009 and 2011. But you heard from our debate earlier between the Republican congresswoman and the Democratic congresswoman that any Social Security plan, it's going to be rough-going.
MYERS: It is. And, you know, we've been getting a lot of e- mails saying that, you know, this plan does not allow you to buy Enron-type companies, so that you get your whole nest egg wiped out. This is going to be, according to his plan, a very small area, a small arena of potential investments that are very safe and straight on through.
COSTELLO: The interesting part, too, for many of our viewers e- mailing in this morning, many of them don't feel the Social Security system is broke.
MYERS: Yes.
COSTELLO: So, the president will have to convince the American people, or a great number of them, because a lot of people do believe, too, that there is something wrong with the Social Security system. But he's really going to have to sell that; that Social Security really needs change at this particular time.
MYERS: And that's our major focus right now.
COSTELLO: Exactly. Three youngsters, Chad, from Camden, New Jersey, got a cool prize for their hard work.
MYERS: Yes, they did.
COSTELLO: They really did. They're going to the Super Bowl. They got tickets.
MYERS: They wrote a great essay.
COSTELLO: They did. Tickets and transportation were given by an anonymous donor as the prize for a Camden Boys and Girls Club essay contest. The kids will fly to Jacksonville on Sunday just in time for the big game.
(BEGIN VIDEO CLIP)
RONNIE LEARY, TICKET WINNER: I'm ecstatic. I'm hyped right now. My heart won't stop pounding right now.
DANIELLE WEATHERS, TICKET WINNER: They're giving back to the community, and I love watching the Eagles play. So, it means a lot to me.
FATIMAH DALE, TICKET WINNER: They made me a more positive person, because this is a positive place for kids.
UNIDENTIFIED MALE: Ronnie Leary.
(END VIDEO CLIP)
COSTELLO: Oh, the winning essays were about the positive effects of the Boys and Girls Club.
MYERS: You don't think any of them are going to be rooting for New England, do you?
COSTELLO: Well, I don't know. I don't think they really care.
MYERS: No, I know.
COSTELLO: I just think they want to go the party. And that would be enough for me, too, I must say.
MYERS: It sure would.
COSTELLO: From the Time Warner center in New York, I'm Carol Costello, along with Chad Myers. "AMERICAN MORNING" starts right now.
MYERS: See you tomorrow.
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