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American Morning

Social Security Reform Among Key Issues of State of the Union; Pope's Condition Improves

Aired February 03, 2005 - 08:00   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.


BILL HEMMER, CNN ANCHOR: Good morning.
Democrats grumbling, but President Bush sticking to his Social Security reform plan last night. Today, he takes it out for a road test across the country.

The latest bulletin from the Vatican. Pope John Paul II appears to be making yet another recovery.

And after five weeks of jungle survival, nine tsunami survivors back in safe hands on this AMERICAN MORNING.

ANNOUNCER: This is AMERICAN MORNING with Bill Hemmer in New York and Soledad O'Brien reporting today from Washington.

SOLEDAD O'BRIEN, CNN ANCHOR: And good morning.

And welcome from the Canon Office Building, next to the U.S. Capitol in Washington, D.C.

The National Prayer Breakfast is set to begin here in Washington this hour. President Bush is going to speak directly to powerful conservative religious leaders; also members of Congress, obviously; and foreign dignitaries, as well. The religious leaders, though, are those who take the credit in many ways, for getting him reelected. We're going to that to you live when he begins speaking.

Also, we're going to check in with one of the president's biggest critics, Senator Barbara Boxer, and get her opinion of the president's State of the Union address last night.

Plus, Jeff Greenfield will join us. He's going to talk about the president's chances of success in reforming Social Security -- Bill.

HEMMER: Soledad, good morning to you down in D.C.

Another headline we're watching this hour, there's a lieutenant general who made some comments about being in battle and some consider those comments to be outrageous. What does the Pentagon think? We'll get a live report in a moment on that.

Also, Jack is back here with me -- good morning.

JACK CAFFERTY, CNN CORRESPONDENT: Good morning, Bill.

Coming up in the "Cafferty File," Martha Stewart taking her house arrest bracelet to prime time TV. "Feng Shui For Your Shorts," that's the kind of headline I really wish Soledad was here, because when I say something like that, her head turns like that woman in "The Exorcist." So...

O'BRIEN: OK. How was that?

CAFFERTY: And one more. An Eagles fan who has absolutely gone around the bend.

HEMMER: Nice.

CAFFERTY: "The File" is coming up in less than an hour.

HEMMER: Good deal.

Sounds great.

To the headlines again, here's Carol Costello -- good morning.

CAROL COSTELLO, CNN ANCHOR: Good morning.

HEMMER: Keep your neck on straight.

COSTELLO: I'm going to try.

Good morning, Jack.

CAFFERTY: Hi, Carol.

COSTELLO: Good morning, everyone.

Now in the news, workers for a U.S. contractor in Iraq coming under fire. Gunmen killed four Iraqis and wounded two others in an area of western Ba'qubah. The victims work for the Halliburton subsidiary, Kellogg, Brown & Root.

The newly sworn in secretary of state, Condoleezza Rice, is heading overseas this morning. In about two and a half hours, Rice begins an eight day swing through Europe and the Middle East. She'll use the visit as an opportunity to mend ties with European allies and to push for peace in the Middle East.

In the meantime, a symbolic goodwill message from Israeli officials to their Palestinian counterparts. Within the last couple of hours, the Israeli cabinet has approved the release of some 900 Palestinian prisoners. It also says Israeli forces will withdraw in the coming days from the West Bank town of Jericho. The move comes ahead of a Mideast summit scheduled for next week in Egypt.

And in Bangkok, Thailand, superstars just about to hit the stage to raise money for tsunami victims. Alicia Keys, she's spearheading this Asia relief effort. Within the last couple of hours, they've been setting the stage to raise money for tsunami victims. MTV Asia AID will begin, as I said, in just a few moments, with host Alicia Keys. The lineup includes performances from Sting, Ricky Martin, Jennifer Lopez, Green Day and Moby. CNN is also involved in this -- Soledad.

CNN like created these special vignettes of survival stories in order to raise more money for UNICEF during that concert.

O'BRIEN: Oh, wonderful. Let's hope they raise lots and lots and lots of money, right -- Carol.

COSTELLO: Um-hmm.

O'BRIEN: All right, thanks, Carol.

Well, we should take you now to the Washington Hilton Hotel.

President Bush is arriving at the National Prayer Breakfast right now. Of course, this is an annual event. It's on the first Thursday in every February. It's been held since 1953. Expensive event, $425, more or less, to have breakfast with the president and other world leaders. A hundred and sixty dignitaries from foreign countries, as well, are invited. We're going to have more on this, obviously, and bring it to you live when the president actually starts to address the folks who've gathered. Some 3,000 people expected to attend this morning.

Well, Social Security reform was the top domestic issue in President Bush's State of the Union address last night. Today, Mr. Bush is going to begin a five state tour to convince Americans that his plan is necessary.

Suzanne Malveaux is CNN's White House correspondent -- hey, Suzanne, good morning.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Good morning, Soledad.

President Bush used his State of the Union address to really urge Americans to consider reform of some of the most important social programs here in the country, here at home; and, of course, also urging Americans to remain committed to the U.S. mission in Iraq. The president announcing a new phase to help train the Iraqi forces to take care of themselves.

Now, while the president did not actually give any kind of timetable for the withdrawal of U.S. troops, he did make the case that he believed that the successful Iraqi elections really built his case for building democracy throughout the world and that it was in the U.S.' interests, security interests, that we do so.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: In the long- term, the peace we seek will only be achieved by eliminating the conditions that feed radicalism and ideologies of murder. If whole regions of the world remain in despair and grow in hatred, they will be the recruiting grounds for terror. And that terror will stalk America and other free nations for decades.

(END VIDEO CLIP)

MALVEAUX: Now, Soledad, as you mentioned, of course, the centerpiece of his domestic agenda was reforming Social Security to allow younger workers to actually divert some of their payroll taxes into private accounts to make the system solvent, the president giving a few more details about that, saying that the highlights, that he would believe that people born in 1950 or later would be eligible. It would be a voluntary program beginning in 2009, that workers could invest up to 4 percent of their wages, that Social Security's guaranteed benefits, however, would be reduced and that the government estimates it would cost $754 billion in transition costs to make all of that happen.

There are critics and some other independent organizations who say it would cost a lot more, perhaps as high as $2 trillion. But the president, of course, says, you know, he's got a busy morning there with the National Prayer Breakfast, but he is also making the rounds, trying to sell his Social Security plan. We are talking about five states in two days. He's heading to Fargo, North Dakota; Great Falls, Montana; Omaha, Nebraska; Little Rock, Arkansas; and Tampa, Florida.

And, Soledad, these are all the states, the red states, of course, that he won in the election, but also states, he believes, where there are some Democratic senators are vulnerable -- Soledad.

O'BRIEN: Yes, well, once the speech is over, the sell begins, right, Suzanne?

MALVEAUX: Absolutely.

O'BRIEN: All right, Suzanne Malveaux at the White House for us this morning.

Suzanne, thanks a lot.

CNN's senior analyst Jeff Greenfield is in Los Angeles for us this morning -- hey, Jeff, good morning to you and thanks for getting up very early, obviously.

JEFF GREENFIELD, CNN CORRESPONDENT: Good morning.

O'BRIEN: You know, people have said in this speech they felt like the president was a little bit of a different man, relaxed, in control, after, obviously, in the wake of his reelection.

How does his position now, Jeff, compare with past presidents?

GREENFIELD: Well, in one sense he's in the cat bird seat. It's really interesting, you have to go back 40 years, to Lyndon Johnson in 1965, to find a president return to office with his party in control of both houses. And that has tremendous advantages. It means that the procedural road map to legislation is in the hands of his own party. It means there won't be any hostile congressional investigations launched by the other party, as Democrats did to Reagan and Republicans did to Clinton. On the other hand, his approval ratings are lower than other reelected passengers. So I think there's a sense there of, that there's some concern that he doesn't have an over arching mandate. And I think you can see that when you watch the way he talked about Social Security reform that Suzanne Malveaux mentioned, citing Democrats who had put ideas for reform on the table and then phrased it this way.

Let's take a listen.

(BEGIN VIDEO CLIP)

BUSH: Fixing Social Security permanently will require an open, candid review of the options. Some have suggested limiting benefits for wealthy retirees. Former Congressman Tim Penny has raised the possibility of indexing benefits to prices rather than wages. During the 1990s, my predecessor President Clinton, spoke of increasing the retirement age. Former Senator John Breaux suggested discouraging early collection of Social Security benefits. The late Senator Daniel Patrick Moynihan recommended changing the way benefits are collected.

All these ideas are on the table.

(END VIDEO CLIP)

GREENFIELD: Now you see, Soledad, all of those people he mentioned were Democrats and it's a way of saying look, my proposal is not to be looked at as a partisan effort. I think that tells you where he thinks his situation is -- Soledad.

O'BRIEN: You know, Jeff, obviously at these speeches, you look for specifics -- how are you going to pay for something, what's a political strategy specifically. But was there a big picture message, not specifics, but a big picture political message that the president was giving us last night?

GREENFIELD: Yes, I think to a large extent there was, and the message was -- and it's been a prominent theme of Republicans and conservatives for a long time -- uncouple the idea of a better life from the government that will give you that better life. He cast Social Security as a great idea from the last century. And he seemed to be saying, in effect, you no longer need a powerful federal government to keep you healthy -- that's medical savings accounts -- or keep you secure in your old age.

But you can also see what a mine field this is by watching how the president phrased what Social Security reform would and wouldn't do. He was at pains to say, look, we're not just going to throw this over the side out of some ideology.

Take a listen to the cautionary notes that he used here.

(BEGIN VIDEO CLIP)

BUSH: We must make Social Security permanently sound, not leave that task for another day. We must not jeopardize our economic strength by increasing payroll taxes. We must ensure that lower income Americans get the help they need to have dignity and peace of mind in their retirement. We must guarantee there is no change for those now retired or nearing retirement. And we must take care that any changes in the system are gradual, so younger workers have years to prepare and plan for their future.

(END VIDEO CLIP)

GREENFIELD: So this is not the libertarian conservative dream of simply throwing Social Security over the side and saying to workers, OK, go into the market, if it works, great; if not, you're on your own. It was a much more cautionary note than that, I think -- Soledad.

O'BRIEN: Any surprises for you last night, Jeff?

GREENFIELD: Yes. When he talked about funding for DNA tests so that innocent people wouldn't be convicted, when he talked about trying to get youth out of gang life, when he talked about increasing funds for lawyers in capital cases, which is somebody, by the way, as governor of Texas he was accused of ignoring, in terms of the number of people on death row that were executed in Texas without, some said, proper legal representation, those are all concerns that have been raised by the Congressional Black Caucus and other African-American groups who see, with some evidence, a clear racial tilt in the criminal justice system.

And I think you can look in those particular items I just mentioned and see a kind of olive branch to the African-American community. In fact, the prayer breakfast that you'll be covering today is another area where the president and his political advisers see some potential gains by stressing conservative cultural values. That's a theme that many African-American clerics are also stressing.

So I think there's a kind of a fit between that somewhat surprising message from last night's speech and what the president's up to this morning -- Soledad.

O'BRIEN: Yes. And, in fact, we should mention that, of course, we're expecting to hear from the president at that breakfast, giving remarks, they've been calling it, or speeches. There it is, the breakfast right now. Various people will be coming up and sharing some prayers. The president, we're going to hear from in about 25, maybe 30 minutes or so.

Jeff Greenfield for us this morning with some analysis.

Jeff, as always, thank you very much.

And special thanks for getting up really early for us. Obviously you're on the West Coast this morning -- Bill.

HEMMER: All right, Soledad.

A few other notes this morning to pass along. The Vatican now saying that medical tests on the pope are satisfying that his condition is improving today. Still not certain how long the 84-year-old pontiff will stay in the hospital. The pope's been suffering from the flu for several days, and Tuesday night he was rushed from his Vatican apartment to a Rome hospital. Apparently he had difficulty breathing and this morning he is listed in stable condition.

Vatican sources say the pope is expected to deliver his regular Sunday address this weekend, but from his window at Gemelli Hospital there in Rome, Italy.

Also, back in this country now, a follow-up to a story we watched live here yesterday. Federal investigators say they hope to interview the pilot and the co-pilot of the corporate jet that skidded off that runway in New Jersey. It happened yesterday right around this time, Teterboro Airport, just about 12 miles from midtown Manhattan.

The plane never got off the ground. Instead, it hurtled through fences, careened across a busy roadway and then slammed into a clothing warehouse. There were eight passengers, three crew members on board that Chicago bound flight. All are OK, miraculously. The co-pilot sustained the most serious injuries -- a broken leg. Two people in cars that were hit by the plane were injured. One listed still in critical condition.

Investigators have the cockpit voice recorder, which does not indicate what went wrong. But one of the pilots can be heard saying, "Discontinue takeoff."

And if you look at this, Chad, it is remarkable that anyone walked out of that. The rescue workers said that the passengers on board the plane were outside of the plane inside the warehouse before they even showed up.

CHAD MYERS, CNN METEOROLOGIST: Yes.

HEMMER: That is a miracle. And whatever the pilot did to slow that plane, an absolute hero after what we watched yesterday.

MYERS: Well, we saw the reverse thrusters were open.

HEMMER: Yes.

MYERS: Some of the other flaps were on, too. So -- and clearly the impact that that plane had with the building, if it was going much, much faster, would have destroyed the plane and destroyed the building, or went right through the building. So we know that, really, that guy did -- the pilot and the co-pilot did a phenomenal job at getting that plane at least slowed down.

(WEATHER REPORT)

O'BRIEN: We should mention that we are waiting to hear from President Bush. He's expected to speak at the National Prayer Breakfast. We're waiting to hear his words, probably in about 25 minutes or so. We're going to bring that to you live, of course, when it happens.

Coming up, though, she says the president's Social Security plan could put millions of Americans in jeopardy. One of Mr. Bush's toughest critics, Senator Barbara Boxer, is going to join us just ahead.

Also, a top U.S. general draws fire for what some think was a shocking remark about the war in Iraq. What he said is ahead on AMERICAN MORNING.

We're coming to you live from Capitol Hill.

Stay with us.

(COMMERCIAL BREAK)

HEMMER: Lieutenant General James Mattis has been one of the most critical commanders throughout the entire Iraq war. But now he is raising some eyebrows this morning. He reportedly told a San Diego audience that it is "fun to shoot some people."

Those comments obviously getting a mixed reaction this morning.

To the Pentagon and Barbara Starr tracking this -- Barbara, what are you hearing on this?

BARBARA STARR, CNN CORRESPONDENT: Well, Bill, this story just breaking at the Pentagon and getting a lot of very, shall we say, sensitive and anxiety ridden reaction this morning here in the hallways of the Pentagon. Marine Corps Lieutenant General James Mattis commanded the 1st Marine Division, as you say, in Iraq, crucial to the war effort there.

He spoke yesterday in San Diego and got quite a reaction from his audience there when he made these remarks, which we'll listen to in just one minute. But he speaks about it, as you say, being fun to fight, being a hell of a hoot and he says, "it's a hell of a lot of fun to shoot them," referring to insurgents.

Let's listen to what General Mattis had to say.

(BEGIN VIDEO CLIP)

LT. GEN. JAMES MATTIS, U.S. MARINE CORPS: Actually, it's a lot of fun to fight. You know, it's a hell of a hoot. It's fun to shoot some people. I like brawling.

(END VIDEO CLIP)

STARR: So, as you see, Bill, he talks about it being "fun to shoot some people when you like brawling." And he goes on and says, "It's a hell of a lot of fun to shoot them."

Now, the reaction here in the Pentagon, Bill.

Some members of the U.S. Marine Corps have already said to CNN this morning they really don't see a problem with these remarks. They don't understand why anybody would think these are newsworthy, that General Mattis is a very outspoken general.

Other people that I have spoken to in a more senior leadership position here in the Pentagon this morning have expressed their concern. They say they are concerned about the example these remarks do give to the younger members of the United States military.

A spokesman for Defense Secretary Donald Rumsfeld simply says to CNN: "General Mattis is one of this country's bravest military leaders."

We are told the commandment of the Marine Corps, General Mike Hagee, is working on a statement that will be issued later today -- Bill.

HEMMER: I was with him three years ago in Afghanistan for a period of about six weeks, Barbara. It's tough to get him on record. Time after time after time he refused to do any interviews. He would say always go to talk to my men, meaning the Marines, and they had nothing but praise for him at every turn when you would ask them about his service. So, we'll follow that...

STARR: These are...

HEMMER: Go ahead.

STARR: I was just going to say, it's very clear already this morning this is very sensitive around the hallways of the Pentagon. People are having a lot of very individual opinions about that, these remarks. They are expressing them very strongly. And to be quite clear, we are finding people on all sides of the fence on this. Some people find these remarks problematic in the military, some military people do not -- Bill.

HEMMER: Thank you, Barbara.

Let's get a break here.

In a moment, more than a month after the tsunami disaster in Southeast Asia, you will not believe where rescuers found a new group of survivors. Their story in a moment as we continue live here in New York City, 23 minutes past the hour on a Thursday morning.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everybody.

Here's Jack, the Question of the Day.

CAFFERTY: That's a kind of a nifty shot there, isn't it?

HEMMER: Oh, yes.

CAFFERTY: It's like those big Hollywood sound stages where they make those movies. The game is on.

We're over here now.

Social Security is going broke. It's just a matter of when. President Bush wants to change the program so it won't go broke. He wants to create these individual investment accounts, take money out of the government's hands, give it back to the taxpayers. The guys on the other side of the aisle, like Harry Reid from Nevada, they're already screaming, can't do it, won't do it, ain't going to happen.

The upcoming fight, boys and girls, will be breathtaking. And I can't wait. This will be one of the great battles ever fought down there.

The question is this: will President Bush succeed in reforming Social Security?

Larry in Wurtsboro, New York: "Jack, why don't you get it? I'm 36 years old. I've been paying into the system for 20 years. It's unfair to people in my situation to now change the rules. I want what I was promised. Is that so wrong?"

Steve in Arlington, Virginia: "Jack, maybe while you're on one of your rants, you can explain how taking money out of the Social Security system makes it more solvent. Frankly, I think you've lost it."

Chris in Princeton, New Jersey: "I'm a blue voter from a blue state but I don't understand why the Democrats are opposing the president on Social Security by denying that there's a problem. What do the Democrats want to do, wait 10, 20, 30 years to fix this? Rather than waste their time suggesting there isn't a Social Security crisis, they should propose a sound and stable plan for reforming Social Security."

And Douglas in Louisville, Colorado: "With Social Security reform, that giant sucking sound you hear will be your retirement savings going to fund an investment analyst's second or third home in the Hamptons. The Jack Grubmans of the world are still out there.

HEMMER: Oh, my.

CAFFERTY: So. A lot of mail.

HEMMER: Must see TV, you say?

CAFFERTY: Oh, yes, they should have this on Pay-Per-View. It's going to be a bloodletting.

HEMMER: Pay up.

Thank you, Jack.

CAFFERTY: All right.

The Christians and the lions.

HEMMER: There is a remarkable story of survival we're going to relay to you. You can see it on our Web site, in fact, right now, at cnn.com. More than 38 days after the disaster of the tsunami, nine people have been found on a remote island in the Indian Ocean -- five men, two women, two children rescued earlier today off of the Nicobar Islands. This is off the coast of India.

Officials say the survivors were emaciated, though they suffered no serious health problems other than that. The group survived by eating boar and coconuts and wild shoots. They're now receiving medical treatment. So many weeks later, so many headlines from that story.

Here's D.C. again and Soledad down there.

O'BRIEN: All right, Bill, thanks.

You are, and we are, keeping an eye on the National Prayer Breakfast here in Washington, D.C. We're expecting to hear from President Bush in the next 10 minutes or so. Will he say anything to the evangelicals this morning that they wanted him to say last night?

AMERICAN MORNING comes to you live from Capitol Hill today.

(COMMERCIAL BREAK)

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Aired February 3, 2005 - 08:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Good morning.
Democrats grumbling, but President Bush sticking to his Social Security reform plan last night. Today, he takes it out for a road test across the country.

The latest bulletin from the Vatican. Pope John Paul II appears to be making yet another recovery.

And after five weeks of jungle survival, nine tsunami survivors back in safe hands on this AMERICAN MORNING.

ANNOUNCER: This is AMERICAN MORNING with Bill Hemmer in New York and Soledad O'Brien reporting today from Washington.

SOLEDAD O'BRIEN, CNN ANCHOR: And good morning.

And welcome from the Canon Office Building, next to the U.S. Capitol in Washington, D.C.

The National Prayer Breakfast is set to begin here in Washington this hour. President Bush is going to speak directly to powerful conservative religious leaders; also members of Congress, obviously; and foreign dignitaries, as well. The religious leaders, though, are those who take the credit in many ways, for getting him reelected. We're going to that to you live when he begins speaking.

Also, we're going to check in with one of the president's biggest critics, Senator Barbara Boxer, and get her opinion of the president's State of the Union address last night.

Plus, Jeff Greenfield will join us. He's going to talk about the president's chances of success in reforming Social Security -- Bill.

HEMMER: Soledad, good morning to you down in D.C.

Another headline we're watching this hour, there's a lieutenant general who made some comments about being in battle and some consider those comments to be outrageous. What does the Pentagon think? We'll get a live report in a moment on that.

Also, Jack is back here with me -- good morning.

JACK CAFFERTY, CNN CORRESPONDENT: Good morning, Bill.

Coming up in the "Cafferty File," Martha Stewart taking her house arrest bracelet to prime time TV. "Feng Shui For Your Shorts," that's the kind of headline I really wish Soledad was here, because when I say something like that, her head turns like that woman in "The Exorcist." So...

O'BRIEN: OK. How was that?

CAFFERTY: And one more. An Eagles fan who has absolutely gone around the bend.

HEMMER: Nice.

CAFFERTY: "The File" is coming up in less than an hour.

HEMMER: Good deal.

Sounds great.

To the headlines again, here's Carol Costello -- good morning.

CAROL COSTELLO, CNN ANCHOR: Good morning.

HEMMER: Keep your neck on straight.

COSTELLO: I'm going to try.

Good morning, Jack.

CAFFERTY: Hi, Carol.

COSTELLO: Good morning, everyone.

Now in the news, workers for a U.S. contractor in Iraq coming under fire. Gunmen killed four Iraqis and wounded two others in an area of western Ba'qubah. The victims work for the Halliburton subsidiary, Kellogg, Brown & Root.

The newly sworn in secretary of state, Condoleezza Rice, is heading overseas this morning. In about two and a half hours, Rice begins an eight day swing through Europe and the Middle East. She'll use the visit as an opportunity to mend ties with European allies and to push for peace in the Middle East.

In the meantime, a symbolic goodwill message from Israeli officials to their Palestinian counterparts. Within the last couple of hours, the Israeli cabinet has approved the release of some 900 Palestinian prisoners. It also says Israeli forces will withdraw in the coming days from the West Bank town of Jericho. The move comes ahead of a Mideast summit scheduled for next week in Egypt.

And in Bangkok, Thailand, superstars just about to hit the stage to raise money for tsunami victims. Alicia Keys, she's spearheading this Asia relief effort. Within the last couple of hours, they've been setting the stage to raise money for tsunami victims. MTV Asia AID will begin, as I said, in just a few moments, with host Alicia Keys. The lineup includes performances from Sting, Ricky Martin, Jennifer Lopez, Green Day and Moby. CNN is also involved in this -- Soledad.

CNN like created these special vignettes of survival stories in order to raise more money for UNICEF during that concert.

O'BRIEN: Oh, wonderful. Let's hope they raise lots and lots and lots of money, right -- Carol.

COSTELLO: Um-hmm.

O'BRIEN: All right, thanks, Carol.

Well, we should take you now to the Washington Hilton Hotel.

President Bush is arriving at the National Prayer Breakfast right now. Of course, this is an annual event. It's on the first Thursday in every February. It's been held since 1953. Expensive event, $425, more or less, to have breakfast with the president and other world leaders. A hundred and sixty dignitaries from foreign countries, as well, are invited. We're going to have more on this, obviously, and bring it to you live when the president actually starts to address the folks who've gathered. Some 3,000 people expected to attend this morning.

Well, Social Security reform was the top domestic issue in President Bush's State of the Union address last night. Today, Mr. Bush is going to begin a five state tour to convince Americans that his plan is necessary.

Suzanne Malveaux is CNN's White House correspondent -- hey, Suzanne, good morning.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Good morning, Soledad.

President Bush used his State of the Union address to really urge Americans to consider reform of some of the most important social programs here in the country, here at home; and, of course, also urging Americans to remain committed to the U.S. mission in Iraq. The president announcing a new phase to help train the Iraqi forces to take care of themselves.

Now, while the president did not actually give any kind of timetable for the withdrawal of U.S. troops, he did make the case that he believed that the successful Iraqi elections really built his case for building democracy throughout the world and that it was in the U.S.' interests, security interests, that we do so.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: In the long- term, the peace we seek will only be achieved by eliminating the conditions that feed radicalism and ideologies of murder. If whole regions of the world remain in despair and grow in hatred, they will be the recruiting grounds for terror. And that terror will stalk America and other free nations for decades.

(END VIDEO CLIP)

MALVEAUX: Now, Soledad, as you mentioned, of course, the centerpiece of his domestic agenda was reforming Social Security to allow younger workers to actually divert some of their payroll taxes into private accounts to make the system solvent, the president giving a few more details about that, saying that the highlights, that he would believe that people born in 1950 or later would be eligible. It would be a voluntary program beginning in 2009, that workers could invest up to 4 percent of their wages, that Social Security's guaranteed benefits, however, would be reduced and that the government estimates it would cost $754 billion in transition costs to make all of that happen.

There are critics and some other independent organizations who say it would cost a lot more, perhaps as high as $2 trillion. But the president, of course, says, you know, he's got a busy morning there with the National Prayer Breakfast, but he is also making the rounds, trying to sell his Social Security plan. We are talking about five states in two days. He's heading to Fargo, North Dakota; Great Falls, Montana; Omaha, Nebraska; Little Rock, Arkansas; and Tampa, Florida.

And, Soledad, these are all the states, the red states, of course, that he won in the election, but also states, he believes, where there are some Democratic senators are vulnerable -- Soledad.

O'BRIEN: Yes, well, once the speech is over, the sell begins, right, Suzanne?

MALVEAUX: Absolutely.

O'BRIEN: All right, Suzanne Malveaux at the White House for us this morning.

Suzanne, thanks a lot.

CNN's senior analyst Jeff Greenfield is in Los Angeles for us this morning -- hey, Jeff, good morning to you and thanks for getting up very early, obviously.

JEFF GREENFIELD, CNN CORRESPONDENT: Good morning.

O'BRIEN: You know, people have said in this speech they felt like the president was a little bit of a different man, relaxed, in control, after, obviously, in the wake of his reelection.

How does his position now, Jeff, compare with past presidents?

GREENFIELD: Well, in one sense he's in the cat bird seat. It's really interesting, you have to go back 40 years, to Lyndon Johnson in 1965, to find a president return to office with his party in control of both houses. And that has tremendous advantages. It means that the procedural road map to legislation is in the hands of his own party. It means there won't be any hostile congressional investigations launched by the other party, as Democrats did to Reagan and Republicans did to Clinton. On the other hand, his approval ratings are lower than other reelected passengers. So I think there's a sense there of, that there's some concern that he doesn't have an over arching mandate. And I think you can see that when you watch the way he talked about Social Security reform that Suzanne Malveaux mentioned, citing Democrats who had put ideas for reform on the table and then phrased it this way.

Let's take a listen.

(BEGIN VIDEO CLIP)

BUSH: Fixing Social Security permanently will require an open, candid review of the options. Some have suggested limiting benefits for wealthy retirees. Former Congressman Tim Penny has raised the possibility of indexing benefits to prices rather than wages. During the 1990s, my predecessor President Clinton, spoke of increasing the retirement age. Former Senator John Breaux suggested discouraging early collection of Social Security benefits. The late Senator Daniel Patrick Moynihan recommended changing the way benefits are collected.

All these ideas are on the table.

(END VIDEO CLIP)

GREENFIELD: Now you see, Soledad, all of those people he mentioned were Democrats and it's a way of saying look, my proposal is not to be looked at as a partisan effort. I think that tells you where he thinks his situation is -- Soledad.

O'BRIEN: You know, Jeff, obviously at these speeches, you look for specifics -- how are you going to pay for something, what's a political strategy specifically. But was there a big picture message, not specifics, but a big picture political message that the president was giving us last night?

GREENFIELD: Yes, I think to a large extent there was, and the message was -- and it's been a prominent theme of Republicans and conservatives for a long time -- uncouple the idea of a better life from the government that will give you that better life. He cast Social Security as a great idea from the last century. And he seemed to be saying, in effect, you no longer need a powerful federal government to keep you healthy -- that's medical savings accounts -- or keep you secure in your old age.

But you can also see what a mine field this is by watching how the president phrased what Social Security reform would and wouldn't do. He was at pains to say, look, we're not just going to throw this over the side out of some ideology.

Take a listen to the cautionary notes that he used here.

(BEGIN VIDEO CLIP)

BUSH: We must make Social Security permanently sound, not leave that task for another day. We must not jeopardize our economic strength by increasing payroll taxes. We must ensure that lower income Americans get the help they need to have dignity and peace of mind in their retirement. We must guarantee there is no change for those now retired or nearing retirement. And we must take care that any changes in the system are gradual, so younger workers have years to prepare and plan for their future.

(END VIDEO CLIP)

GREENFIELD: So this is not the libertarian conservative dream of simply throwing Social Security over the side and saying to workers, OK, go into the market, if it works, great; if not, you're on your own. It was a much more cautionary note than that, I think -- Soledad.

O'BRIEN: Any surprises for you last night, Jeff?

GREENFIELD: Yes. When he talked about funding for DNA tests so that innocent people wouldn't be convicted, when he talked about trying to get youth out of gang life, when he talked about increasing funds for lawyers in capital cases, which is somebody, by the way, as governor of Texas he was accused of ignoring, in terms of the number of people on death row that were executed in Texas without, some said, proper legal representation, those are all concerns that have been raised by the Congressional Black Caucus and other African-American groups who see, with some evidence, a clear racial tilt in the criminal justice system.

And I think you can look in those particular items I just mentioned and see a kind of olive branch to the African-American community. In fact, the prayer breakfast that you'll be covering today is another area where the president and his political advisers see some potential gains by stressing conservative cultural values. That's a theme that many African-American clerics are also stressing.

So I think there's a kind of a fit between that somewhat surprising message from last night's speech and what the president's up to this morning -- Soledad.

O'BRIEN: Yes. And, in fact, we should mention that, of course, we're expecting to hear from the president at that breakfast, giving remarks, they've been calling it, or speeches. There it is, the breakfast right now. Various people will be coming up and sharing some prayers. The president, we're going to hear from in about 25, maybe 30 minutes or so.

Jeff Greenfield for us this morning with some analysis.

Jeff, as always, thank you very much.

And special thanks for getting up really early for us. Obviously you're on the West Coast this morning -- Bill.

HEMMER: All right, Soledad.

A few other notes this morning to pass along. The Vatican now saying that medical tests on the pope are satisfying that his condition is improving today. Still not certain how long the 84-year-old pontiff will stay in the hospital. The pope's been suffering from the flu for several days, and Tuesday night he was rushed from his Vatican apartment to a Rome hospital. Apparently he had difficulty breathing and this morning he is listed in stable condition.

Vatican sources say the pope is expected to deliver his regular Sunday address this weekend, but from his window at Gemelli Hospital there in Rome, Italy.

Also, back in this country now, a follow-up to a story we watched live here yesterday. Federal investigators say they hope to interview the pilot and the co-pilot of the corporate jet that skidded off that runway in New Jersey. It happened yesterday right around this time, Teterboro Airport, just about 12 miles from midtown Manhattan.

The plane never got off the ground. Instead, it hurtled through fences, careened across a busy roadway and then slammed into a clothing warehouse. There were eight passengers, three crew members on board that Chicago bound flight. All are OK, miraculously. The co-pilot sustained the most serious injuries -- a broken leg. Two people in cars that were hit by the plane were injured. One listed still in critical condition.

Investigators have the cockpit voice recorder, which does not indicate what went wrong. But one of the pilots can be heard saying, "Discontinue takeoff."

And if you look at this, Chad, it is remarkable that anyone walked out of that. The rescue workers said that the passengers on board the plane were outside of the plane inside the warehouse before they even showed up.

CHAD MYERS, CNN METEOROLOGIST: Yes.

HEMMER: That is a miracle. And whatever the pilot did to slow that plane, an absolute hero after what we watched yesterday.

MYERS: Well, we saw the reverse thrusters were open.

HEMMER: Yes.

MYERS: Some of the other flaps were on, too. So -- and clearly the impact that that plane had with the building, if it was going much, much faster, would have destroyed the plane and destroyed the building, or went right through the building. So we know that, really, that guy did -- the pilot and the co-pilot did a phenomenal job at getting that plane at least slowed down.

(WEATHER REPORT)

O'BRIEN: We should mention that we are waiting to hear from President Bush. He's expected to speak at the National Prayer Breakfast. We're waiting to hear his words, probably in about 25 minutes or so. We're going to bring that to you live, of course, when it happens.

Coming up, though, she says the president's Social Security plan could put millions of Americans in jeopardy. One of Mr. Bush's toughest critics, Senator Barbara Boxer, is going to join us just ahead.

Also, a top U.S. general draws fire for what some think was a shocking remark about the war in Iraq. What he said is ahead on AMERICAN MORNING.

We're coming to you live from Capitol Hill.

Stay with us.

(COMMERCIAL BREAK)

HEMMER: Lieutenant General James Mattis has been one of the most critical commanders throughout the entire Iraq war. But now he is raising some eyebrows this morning. He reportedly told a San Diego audience that it is "fun to shoot some people."

Those comments obviously getting a mixed reaction this morning.

To the Pentagon and Barbara Starr tracking this -- Barbara, what are you hearing on this?

BARBARA STARR, CNN CORRESPONDENT: Well, Bill, this story just breaking at the Pentagon and getting a lot of very, shall we say, sensitive and anxiety ridden reaction this morning here in the hallways of the Pentagon. Marine Corps Lieutenant General James Mattis commanded the 1st Marine Division, as you say, in Iraq, crucial to the war effort there.

He spoke yesterday in San Diego and got quite a reaction from his audience there when he made these remarks, which we'll listen to in just one minute. But he speaks about it, as you say, being fun to fight, being a hell of a hoot and he says, "it's a hell of a lot of fun to shoot them," referring to insurgents.

Let's listen to what General Mattis had to say.

(BEGIN VIDEO CLIP)

LT. GEN. JAMES MATTIS, U.S. MARINE CORPS: Actually, it's a lot of fun to fight. You know, it's a hell of a hoot. It's fun to shoot some people. I like brawling.

(END VIDEO CLIP)

STARR: So, as you see, Bill, he talks about it being "fun to shoot some people when you like brawling." And he goes on and says, "It's a hell of a lot of fun to shoot them."

Now, the reaction here in the Pentagon, Bill.

Some members of the U.S. Marine Corps have already said to CNN this morning they really don't see a problem with these remarks. They don't understand why anybody would think these are newsworthy, that General Mattis is a very outspoken general.

Other people that I have spoken to in a more senior leadership position here in the Pentagon this morning have expressed their concern. They say they are concerned about the example these remarks do give to the younger members of the United States military.

A spokesman for Defense Secretary Donald Rumsfeld simply says to CNN: "General Mattis is one of this country's bravest military leaders."

We are told the commandment of the Marine Corps, General Mike Hagee, is working on a statement that will be issued later today -- Bill.

HEMMER: I was with him three years ago in Afghanistan for a period of about six weeks, Barbara. It's tough to get him on record. Time after time after time he refused to do any interviews. He would say always go to talk to my men, meaning the Marines, and they had nothing but praise for him at every turn when you would ask them about his service. So, we'll follow that...

STARR: These are...

HEMMER: Go ahead.

STARR: I was just going to say, it's very clear already this morning this is very sensitive around the hallways of the Pentagon. People are having a lot of very individual opinions about that, these remarks. They are expressing them very strongly. And to be quite clear, we are finding people on all sides of the fence on this. Some people find these remarks problematic in the military, some military people do not -- Bill.

HEMMER: Thank you, Barbara.

Let's get a break here.

In a moment, more than a month after the tsunami disaster in Southeast Asia, you will not believe where rescuers found a new group of survivors. Their story in a moment as we continue live here in New York City, 23 minutes past the hour on a Thursday morning.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everybody.

Here's Jack, the Question of the Day.

CAFFERTY: That's a kind of a nifty shot there, isn't it?

HEMMER: Oh, yes.

CAFFERTY: It's like those big Hollywood sound stages where they make those movies. The game is on.

We're over here now.

Social Security is going broke. It's just a matter of when. President Bush wants to change the program so it won't go broke. He wants to create these individual investment accounts, take money out of the government's hands, give it back to the taxpayers. The guys on the other side of the aisle, like Harry Reid from Nevada, they're already screaming, can't do it, won't do it, ain't going to happen.

The upcoming fight, boys and girls, will be breathtaking. And I can't wait. This will be one of the great battles ever fought down there.

The question is this: will President Bush succeed in reforming Social Security?

Larry in Wurtsboro, New York: "Jack, why don't you get it? I'm 36 years old. I've been paying into the system for 20 years. It's unfair to people in my situation to now change the rules. I want what I was promised. Is that so wrong?"

Steve in Arlington, Virginia: "Jack, maybe while you're on one of your rants, you can explain how taking money out of the Social Security system makes it more solvent. Frankly, I think you've lost it."

Chris in Princeton, New Jersey: "I'm a blue voter from a blue state but I don't understand why the Democrats are opposing the president on Social Security by denying that there's a problem. What do the Democrats want to do, wait 10, 20, 30 years to fix this? Rather than waste their time suggesting there isn't a Social Security crisis, they should propose a sound and stable plan for reforming Social Security."

And Douglas in Louisville, Colorado: "With Social Security reform, that giant sucking sound you hear will be your retirement savings going to fund an investment analyst's second or third home in the Hamptons. The Jack Grubmans of the world are still out there.

HEMMER: Oh, my.

CAFFERTY: So. A lot of mail.

HEMMER: Must see TV, you say?

CAFFERTY: Oh, yes, they should have this on Pay-Per-View. It's going to be a bloodletting.

HEMMER: Pay up.

Thank you, Jack.

CAFFERTY: All right.

The Christians and the lions.

HEMMER: There is a remarkable story of survival we're going to relay to you. You can see it on our Web site, in fact, right now, at cnn.com. More than 38 days after the disaster of the tsunami, nine people have been found on a remote island in the Indian Ocean -- five men, two women, two children rescued earlier today off of the Nicobar Islands. This is off the coast of India.

Officials say the survivors were emaciated, though they suffered no serious health problems other than that. The group survived by eating boar and coconuts and wild shoots. They're now receiving medical treatment. So many weeks later, so many headlines from that story.

Here's D.C. again and Soledad down there.

O'BRIEN: All right, Bill, thanks.

You are, and we are, keeping an eye on the National Prayer Breakfast here in Washington, D.C. We're expecting to hear from President Bush in the next 10 minutes or so. Will he say anything to the evangelicals this morning that they wanted him to say last night?

AMERICAN MORNING comes to you live from Capitol Hill today.

(COMMERCIAL BREAK)

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