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Lou Dobbs Tonight

Unemployment Rate Rises; Tanking Economy Puts Presidential Candidates on the Spot; Illegal Alien Farm Worker Dies

Aired June 06, 2008 - 19:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


LOU DOBBS, HOST: Well thank you.
Tonight, another new setback for our middle class. A big jump in the unemployment rate, skyrocketing crude oil prices and tumbling stock prices. We'll have complete coverage tonight.

And a federal judge in Oklahoma defying the will of the people, blocking part of a law to punish employers of illegal aliens. The Oklahoma lawmaker who sponsored the legislation joins me.

And tonight, a special report on the tragic death of an illegal alien farm worker, an illustration of one of the consequences of corporate America's exploitation of cheap, illegal alien labor.

All of that, all the day's news and much more from an Independent perspective, straight ahead here tonight.

Good evening, everybody.

New evidence tonight the crisis could be much worse than anyone is acknowledging. The unemployment rate jumped in May to 5.5 percent, up from 5 percent. That is the largest monthly increase in 22 years. And crude oil prices today hit a new record high, $139 a barrel. And the Dow Jones Industrial's plunged in reaction, down nearly 400 points. The Bush administration appears to have absolutely no idea of how to respond to a crisis that is worsening. The Obama and McCain campaigns expressed concern but they too have no policy prescriptions to deal with this crisis.

We have extensive coverage tonight and we begin with Kate Bolduan at the White House -- Kate?

KATE BOLDUAN, CNN CORRESPONDENT: Hi there, Lou.

Well, you said it, it's been a tough day for the economy and President Bush took time to talk about that during a ceremonial swearing in of the new housing and urban development secretary Steven Preston. While staying away from calling it a recession, the president did say that the country is in a time of economic uncertainty, noting the new unemployment numbers that are coming out today as we've mentioned. The unemployment rate rose to 5.5 percent. Here's the president.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: This rise was caused in part by a surge of new young entrants into the job market. But it's clearly a sign that is consistent with slow economic growth.

(END VIDEO CLIP)

BOLDUAN: Labor Secretary Elaine Chao, the woman who oversees the country's work force, she made similar comments on CNN earlier today.

(BEGIN VIDEO CLIP)

ELAINE CHAO, LABOR SECRETARY: There are other indicators that show that our economy, while weaker than we would like, is not really in recession yet. The loss on jobs actually has not been as great as usual past recessions.

(END VIDEO CLIP)

BOLDUAN: Now, on the economy, the president did take the opportunity during his comments today to press Congress to make permanent the tax cuts passed during his presidency. He also pressed them to reform Fannie Mae and Freddie Mac and to go ahead and modernize the Federal Housing Administration.

All of these things have long been priorities of the Bush administration. But when asked if the administration was taking new steps to boost the troubled economy, Press Secretary Dana Perino said while they continue to look at a range of things, or the economic team does, continue to look at a range of things they can use, she did add that the economic stimulus package is still working on rolling itself out and she says that that itself will help to stimulate job growth and grow he economy, Lou.

DOBBS: Thank you, Kate.

Kate Bolduan from the White House.

With crude oil prices hitting a new record high and unemployment rising, it is no surprise that our worsening economy is the most important issue for voters in this presidential campaign. According to a CNN/Opinion Research Corporation poll, 42 percent of voters now say the economy is the top issue. The war in Iraq is a distant second, 24 percent. Health care, terrorism and illegal immigration are the next biggest concerns for voters.

Senators McCain and Obama today appeared as clueless as President Bush on this economy and what to do about it. Senator McCain acknowledged the difficulties faced by our middle class, but has no new ideas. Senator Obama said nothing in public at all about the economy, but did issue a statement expressing his concern.

Kitty Pilgrim has our report.

(BEGIN VIDEOTAPE)

KITTY PILGRIM, CNN CORRESPONDENT (voice-over): Today, economic worry came home to haunt middle class Americans - 49,000 jobs were lost in May. Oil prices shot up $11, setting a record and are predicted to hit $150 by the Fourth of July. The housing slump slashed 34,000 jobs in construction and the credit crisis eliminated 1,000 jobs in financial firms.

The most vulnerable workers in the labor force felt the brunt -- 30,000 temporary workers lost their jobs and many teens looking for summer jobs will never get them. The teen unemployment rate soared to 18.7 percent.

Senator Obama called the news "deeply troubling" in a statement and pitched his plan for middle class tax cuts. Earlier this week, he likened Senator McCain's economic approach to an extension of failed Bush policies.

SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: It's not change when he offers four more years of Bush economic policies that have failed to create well-paying jobs or ensure our workers or help Americans afford the skyrocketing costs of college.

PILGRIM: McCain, campaigning in Florida today.

SEN. JOHN MCCAIN (R-AZ), PRESIDENTIAL CANDIDATE: These numbers are very disturbing. The worst in 22 years, I'm told. Americans are hurting. American families are hurting. American homeowners are hurting. And this is a very, very serious situation.

PILGRIM: McCain is campaigning on a lower taxes, smaller government and free trade platform. Others blame a massive job erosion in American industries. This month, manufacturers cut another 26,000 jobs.

(END VIDEOTAPE)

PILGRIM: Now, McCain calls himself a free trader and warns about protectionism, but so-called free trade policies are not working. The stores are filled with cheap foreign imports and thousands of Americans are losing their manufacturing jobs. Retailing lost 27,000 jobs this month alone, Lou.

DOBBS: Kitty, thank you very much, appreciate it.

Tonight's poll question is: Do you believe $139 barrel oil and a 400 point loss in the Dow Jones Industrials and the biggest increased in the unemployment rate we've seen in two decades suggest perhaps that we need new economic leadership?

Yes or no? We'd like to hear from you on this. Cast your vote at loudobbs.com. We'll have the results here later.

Senators Clinton and Obama tonight trying to put on a display of unity after their bitter primary battle. Senator Clinton tomorrow is expected to publicly endorse Senator Obama for the first time after Clinton and Obama held a private and supposedly good natured meeting in Washington D.C. last night.

Suzanne Malveaux with our report.

(BEGIN VIDEOTAPE) SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT (voice-over): All eyes are on Hillary Clinton, set to make her concession speech Saturday to formally acknowledge he won. A realization Barack Obama is already relishing.

OBAMA: In 2016, I'll be wrapping up my second term as president.

MALVEAUX: But first things first, making amends with Hillary Clinton. Late Thursday, Obama and Clinton had a secret face-to-face meeting in Washington after Obama ditched his press corps in a highly orchestrated rouse. They met at Senator Dianne Feinstein's house where they chatted alone for an hour in her living room.

SEN. DIANNE FEINSTEIN (D), CALIFORNIA: This is a deeply personal time, too. You're sorting out your feelings.

MALVEAUX: Those familiar with her discussion say there were no substantive break thoughts. They expressed relief that the primary was over and pledged to work together. They did not talk about her prospects of her joining the ticket. Feinstein said they emerged laughing, the first stop to healing wounds.

ROBERT GIBBS, OBAMA COMMUNICATION DIRECTOR: The No. 1 thing is for them was to talk about coming together and bringing this party together.

MALVEAUX: Both the Clinton and Obama camps recognize they've got a lot of work to do to unite the warring factions who have been fighting for 17 months.

DAVID GERGEN, CNN SR. POLITICAL ANALYST: Each of them has to, massage in effect, the egos and the interests and the emotions of the supporters and bring this together.

MALVEAUX: Obama needs her voters, largely working women, white working class. Clinton needs a new role in the campaign and some help in paying off her $20 million debt. Both are on the table, but Democratic leaders say what's most important now is making up for lost time.

SEN. HARRY REID (D-NV), MAJORITY LEADER: People need to understand that the primary is over. We have a candidate, his name is Barack Obama.

(END VIDEOTAPE)

MALVEAUX: And Lou, I'm told that in the Clinton/Obama, meeting it was really just the two trying to get comfortable with one another. Because many of those supporters are going to be watching the body language, listening to the words and taking their cues from that. Lou?

DOBBS: Suzanne, thank you for very much - Suzanne Malveaux from Washington.

Much more ahead on the presidential campaign. We'll have the latest on the Obama-McCain match up.

Also tonight, tragedy in California, an illustration of one of the human costs of our illegal alien crisis.

Casey Wian will have our report -- Casey.

CASEY WIAN, CNN CORRESPONDENT: Lou, of course, cheap labor has its price. Coming up, we'll tell you about the death of a young illegal alien farm worker and the companies that employed her -- Lou.

DOBBS: Casey, we look forward to that report, thank you.

A United Nations human rights investigator is not going to Mexico or to China, but rather to the front lines of our illegal immigration crisis. No doubt at all about his agenda. We'll have a special report for you next.

Stay with us. We're coming right back.

(COMMERCIAL BREAK)

DOBBS: There's disturbing new evidence tonight of the consequences of this nation's addiction to cheap, illegal alien workers, the death of a young farm worker, a woman in this country illegally. A tragedy that puts a human face on the federal government's total refusal to control our illegal alien immigration crisis.

Casey Wian with our report.

(BEGIN VIDEOTAPE)

WIAN (voice-over): Most Americans who buy the popular inexpensive Charles Shaw wines probably don't give much thought to the people who pick the grapes for the company that makes what's affectionately known as Two Buck Chuck. But one of the people working indirectly for the company that makes Charles Shaw is now dead. State investigators say apparently from heat exposure and dehydration suffered in the sweltering grape fields of central California.

Maria Isabel Vasquez Jimenez was a 17-year-old illegal alien was two months pregnant when she fell ill while tying grape vines last months. Her fiancee was working alongside her that day.

FLORENTIO BAUTISTA, FARM WORKER (through translator): He said that there was water available, but the water was roughly about 10 minutes away and the foreman that was overlooking the production kind of frowned upon the workers going to get the water because it would take time away from the crop.

WIAN: Her fiancee also says Vasquez Jimenez arrived at the hospital with a 108-degree temperature. She died two days later. California Governor Arnold Schwarzenegger attended her funeral, consoling mourners and promising action. Farm workers held a four-day march from the fields to the state capital. Vasquez Jimenez was hired by Merced Farm Labor, a subcontractor working for a division of Bronco Wine, producer of Charles Shaw and many other low-cost wines.

The state of California is starting the process to revoke Merced Farm Labor's license, alleging previous failures to follow heat illness prevention standards.

ARTURO RODRIGUEZ, PRESIDENT, UNITED FARM WORKERS: Both the farm labor contractor and the landowner, they had been cited for previous violations of this very same thing. And so they knew well what the law was, and they just didn't take any action.

WIAN: A statement from Merced Farm Labor says Jimenez "made no complaint of any heat-related problems and had been working without any apparent distress." Before she fainted near the end of her third day working for the company.

The labor contractor also says her fiancee initially refused medical attention and took her to a nearby store, not to a fire station next door. The fiancee says the company had them driven to the store.

Bronco Wine declined to comment.

Schwarzenegger says additional allegations may be added when criminal and civil investigations surrounding the death of Maria Isabel Vasquez Jimenez have been completed.

(END VIDEOTAPE)

WIAN: An attorney for Merced Farm Labor says all of the company's workers fill out I-9 forms attesting to the fact that they are legally authorized to work. But the attorney could not say what documentation Vasquez Jimenez provided to the company. In a statement, he also said Merced Farm Labor is a legally compliant, well-regarded business in a highly regulated industry.

But Lou, earlier this week in an unrelated class not involving Merced Farm Labor, state and federal investigators found a 12-year-old boy working in a cherry orchard for another farm labor contractor, Lou.

DOBBS: Well farm labor contractors are a long-standing, I mean decades-long subterfuge and a way in which to avoid direct responsibility on the part of the growers, whether they be wineries or citrus growers or whatever the produce. To understand better, you had a spokesman from the United Farm Workers Union there.

Was the UFW representing these workers for Merced?

WIAN: You know Lou, I don't know that if these workers were organized. I don't think they were. But they are now taking up the cause for these workers.

DOBBS: Taking up the cause and the workers with her. Heat stroke is a very direct, easily diagnosed and obvious condition.

Why in the world did her fellow workers, her fiancee not help this young woman?

WIAN: You know, there are two stories here. The company said she showed no signs of any distress throughout the working day. Her boyfriend, fiancee tells a much different story. He says when she collapsed that a foreman for the company sat and watched for awhile, then decided to have her taken to a nearby store, buy some rubbing alcohol, put a cold cloth on her head, put her in a hot van in hopes of reviving her.

DOBBS: Well obviously the young woman was asking for water. And for someone not to respond to that, well -- we're going to have a lot of questions to have answered here. And that investigation is under way, correct?

WIAN: There are multiple investigations underway. Three state agencies are investigating this. The local district attorney is looking into this. The state attorney general has offered his assistance. There's a lot more to come out of this, Lou, I'm sure.

DOBBS: All right Casey, thank you very much, a tragedy and again, just another representation of our illegal immigration crisis and its impact. In this case a tragic, tragic result.

Casey Wian from Los Angeles.

A United Nations human rights investigator has been invited to Prince William County, Virginia to observe that county's new efforts to crackdown on illegal immigration. A local ethnocentric special interest group that calls itself Mexicans Without Borders invited Jorge Bustamante. Bustamante says his visit is unofficial and he will not be filing a United Nations official report.

But as Louise Schiavone reports, his point of view on the issue is already very, very clear.

(BEGIN VIDEOTAPE)

LOUISE SCHIAVONE, CNN CORRESPONDENT (voice-over): The same United Nations investigator who reported this spring that quote, "xenophobia and racism towards migrants in the United States has worsened since 9/11" visits Prince William County, Virginia next week. Jorge Bustamante tells CNN he was invited by an organizer for Mexicans Without Borders. He'll talk to county officials, too.

COREY STEWART, PRINCE WILLIAM COUNTY BOARD OF SUPERVISORS: Whether he writes a report or for whatever reason, he wants to examine our illegal immigration policy, that's fine with us. We're not violating any human rights. We're happy to speak with him.

SCHIAVONE: Stewart says the county's policy to inquire about the immigration status by all individuals stopped by police for infractions great and small is a legal exercise to protect legal county residents.

STEWART: What's disturbing about this is that Mr. Bustamante's mission according to the United Nations is worldwide. He's supposed to be scouring the globe looking for migrants and immigrants who are being tortured or killed or who have other human rights violations committed against them. There are places all over the globe where this is happening.

SCHIAVONE: The U.N.'s Bustamante is Mexico-born, a U.S. citizen and college professor and a long-time critic of U.S. efforts to contain illegal immigration.

MARK KRIKORIAN, CENTER FOR IMMIGRATION STUDIES: This is the last person in the world -- a supposedly objective foreign body would be sending anyway. He's a life long crusader for open borders. I mean, he's the father of Mexico's dual citizenship law.

SCHIAVONE: For his part, having already published his report this past spring, Bustamante believes the illegal immigration issue is something that can only be resolved by lawmakers in the U.S. and Mexico working together. He tells CNN he's visiting Virginia because he was invited. This is not an official visit.

(END VIDEOTAPE)

SCHIAVONE: And Lou, how's it been going since Prince William County launched its new policies? Officials say lines are shorter in emergency room, schools are less crowded and crime is down -- Lou.

DOBBS: Thank you very much, Louise.

Louise Schiavone report from Washington.

Well up next here, remember the presidential race of 2000? Well, 2008 could be a very close election as well. We'll have a report for you on how the votes may tally up.

And big business and an activist judge. They're standing now in the way of Oklahoma's efforts to deal with its illegal immigration crisis. I'll be joined by State Representative Randy Gerald here next.

Stay with us. We're coming right back.

(COMMERCIAL BREAK)

DOBBS: New poll numbers show Senator Obama's efforts to cast himself as the candidate of change and his efforts to link Senator McCain to an increasingly unpopular president, well that just isn't working. The beginning of the general election campaign finds that Senator Obama is locked in a virtual dead heat with Senator McCain.

Bill Schneider has our report.

(BEGIN VIDEOTAPE)

WILLIAM SCHNEIDER, CNN SR. POLITICAL CORRESPONDENT: If you liked 2000, you may love 2008, because the race between Barack Obama and John McCain looks like a close one. Right now, Obama's leading McCain by three points. That's within the margin of error. Here's the big puzzle in this election. President Bush's job rating is 32 percent. McCain is getting 46. Shouldn't the Republican presidential be dragging the Republican candidate down with him?

Obama thinks so.

OBAMA: He is running for George Bush's third term.

SCHNEIDER: McCain does not think so.

MCCAIN: Why does Senator Obama believe it's so important to repeat that idea over and over again? Because he knows it's very difficult to get Americans to believe something that they know is false.

SCHNEIDER: Right now, 16 percent of all voters disapprove of President Bush, but are still voting for McCain. Obama's going after them.

OBAMA: There are many words to describe John McCain's attempt to pass off his embrace of George Bush's policies as bipartisan and new, but change is not one of them.

OBAMA: Does Obama have a problem with white voters?

Most whites are not voting for Obama, but white voters have not voted for a Democrat for president since Lyndon Johnson. Obama is getting 42 percent of the white vote. John Kerry got 41 percent, Al Gore got 42, Bill Clinton got 43, Michael Dukakis got 40. Obama is not doing any worse with white voters than other Democrats.

Are Democrats happy with Obama as their nominee? Nearly 60 percent say yes. Thirty-five percent would prefer Hillary Clinton.

Are Republicans happy with McCain?

Only 55 percent say yes. Forty-four percent of Republicans say they would prefer somebody else.

McCain clinched his party's nomination three months ago, but Obama's actually done a better job solidifying his base.

(END VIDEOTAPE)

SCHNEIDER: One reason why the election is close? Independent voters are split down the middle -- 45 percent for Obama, 45 percent for McCain. Now we saw in the primaries that Obama and McCain both appeal to Independents. Now that they're running against each other, Independents can't make up their minds. They're too damn independent -- Lou?

DOBBS: Darn right. Thank you, Bill.

Bill Schneider report.

The next president must deal with Communist China's growing power and influence. The United States already sending sensitive American technology to the Communist Chinese government. The "Washington Times" Bill Gertz reporting that the Bush administration approved the export of sensitive U.S. equipment and know how to Communist China's military and police forces for the Beijing Olympics.

The Commerce, Defense and State Departments all have reportedly approved the export license, some 15 of them for $5 million worth of equipment normally restricted for export. That equipment includes U.S. military communication systems, explosive detection equipment and hazardous chemical identification systems. Some of that Defense Department equipment reportedly may remain in China after the Olympics.

Up next here, seething anger after a federal judge supports big business and its lobby and blocks part of law to deal with Oklahoma's immigration crisis.

And America facing an identity crisis. We'll have a special report tonight on the divisive impact on this country of group and identity politics.

And Senators Clinton and Obama trying to find unity or at least an image of it. I'll be joined by three political analyst who analyze whether that's reality or illusion. We'll be right back.

(COMMERCIAL BREAK)

DOBBS: A major setback today for middle class working men and women and our economy. The unemployment rate jumped in May to 5.5 percent from 5 percent.

DOBBS: The unemployment rate jumped in May to 5.5 percent from five percent, that's the largest monthly increase in 22 years. And crude oil prices today, hitting a new record high, and exploding up $11, crude oil now at $139 a barrel.

And the DOW Jones Industrials reacted as investors started selling. The DOW plujing nearly 400 points today, that is the sharpest decline in the DOW this year. Senator Clinton tomorrow is to publicly endorse Senator Obama for the first time. She and Senator Obama, last night, held a private meeting in Washington. The meeting, we are told, was good humored.

And also tonight, a CNN Opinion Research Corporation poll showing senators Obama and McCain in a statistical dead heat. We should note, however, that more than one in five voters say that they could change their minds between now and November. Well, with five months of campaigning ahead of us, that shouldn't be a surprise.

And a federal judge has sided with big business and blocked part of Oklahoma's new law to deal with its illegal immigration crisis. Oklahoma state representative, Randy Terrill, sponsored that legislation and he said, "What you have an example of the judiciary thwarting the will of the citizens of Oklahoma."

Randy Terrill joins us tonight, from Oklahoma City. Good to have you with us, Randy.

REP RANDY TERRILL (R), OKLAHOMA: Good evening, Lou, always great to be with you.

DOBBS: Good to be here. What is your reaction to this development?Are you surprised?

TERRILL: Well, you know, I'm disappointed but not surprised, frankly, at this 17-page opinion and two-page order that effectively enjoins three different parts of House Bill 1804 that we collectively refer to as the Private Employment Provisions. The reason I'm disappointed, Lou, is, obviously it isn't the result we had hoped for. It will unnecessarily prolong this litigation and almost certainly guarantee an appeal to the 10th Circuit Court of Appeals and possibly on to the U.S. Supreme Court.

And also, frankly, this decision is troubling, is why I'm disappointed, it conflicts with recent rulings in other cases, most notably in Missouri and Arizona and even here in the northern district in Tulsa where there was a similar challenge brought against this rule -- against this bill.

But, the reason I'm not surprised is because Judge Robin Cauthron, who issued this opinion, is perhaps the most liberal judge in the Western district of Oklahoma.

DOBBS: So, you're confident that you'll win on appeal. I just want to point out to our viewers here, that this legislation passed the Oklahoma House By a margin of 88-9, it passed the Senate by a margin of 41-6. The governor signed it into law in May of last year. What has been the impact of the legislation?

TERRILL: Well, it's had a tremendous impact. Obviously, illegal aliens began leaving the state of Oklahoma, even before the law was passed. And Lou, I think there is no more glaring example of the success of this legislation then the fact that Oklahoma's unemployment is running several percentage points below the national average. And obviously there are a lot of things that at play there, but one of them is House Bill 1804.

DOBBS: Well, let me ask you this, because it's the Chamber of Commerce there in Oklahoma, the National Chamber of Commerce, as the plaintiffs in this case, it's big business saying they don't want to be responsible for verify citizenship status of employees. I mean, that's height of corporate irresponsibility. TERRILL: It is absolutely outrageous. This is all about big business, organizations, preserving the availability of and their access to cheap illegal alien slave labor, it's about that.

DOBBS: All right, so let me -- you said it straightforwardly, but what is the reaction there to business?I mean, you're state House, the state legislature, the state House, and the state Senate, overwhelming passage, signed by your governor. What is the pushback against your business leaders in Oklahoma?I mean, this is outrageous that you would even put up with their nonsense.

TERRILL: That's exactly right. And I've got to tell you, you're absolutely right. This bill passed the House and Senate by overwhelming, bipartisan, veto-proof margins and was signed by a Democrat governor. The public strong strongly supports House Bill 1804, in fact, polls by the opposition indicate that it enjoys over 88 percent plus approval. Lou, they even did push polling to try to drive support for the bill down and every time they ask employment- related questions, it actually drove support for the bill up and so, the public overwhelmingly supports this piece of legislation. And frankly, they are outraged at the fact that the U.S. Chamber of Commerce has interfered with Oklahoma's business and that our state Chamber is bringing this lawsuit against a bill that enjoy enjoys that kind of popularity.

DOBBS: Well, Oklahoma represents, now, one of the few states in the nation that really has control of its own destiny. Nearly every other state is dominated by business interest, special interest, and the people of Oklahoma are actually making their will known and making certain their government is following that will. What's going to be the reaction amongst the public, there?

TERRILL: Well, I think it's going to be a reaction of outrage. And you're absolutely right, Oklahoma, as well as a few other states, Georgia and Arizona have captured control of their destiny with regard to the illegal immigration issue. They are now the model states that other states are beginning to mirror to get control of this problem.

DOBBS: Randy Terrill, thank you very much for being us.

TERRILL: You bet. Thank you, Lou. God bless.

DOBBS: We reported last night that the "Washington Post" fact checker gave Senator Obama four Pinocchio's, that's the worst rating possible, for making what the "Washington Post" termed "widely inaccurate statements" about me and his attack on me for our reporting on illegal immigration and linking me to an increase, a doubling, as Senator Obama put it, in hate crimes.

Well, in spite of the fact that Senator Obama was demonstrably wrong, I said it at the top of the time, the "Washington Post" confirmed it, a few journalists obviously don't care. They're part of a network, a closed loop, if you will, of radical left-wing, open borders, amnesty-seeking advocates. One of them is a columnist by the name of Ruben Navarette, who knows, really, in my opinion, nothing about the issue of illegal immigration or the economics of it and certainly even less about journalism.

He attacked me in a column in the "San Diego Union Tribune" on the same basis. He even titled is column, "Stirring up Anti-Latino Sentiment." In it, Navarette conceded that Senator Obama, well, he acknowledged that it could be the wrong track, but he didn't go out to go specifically to that. He said he was on the height (ph) crimes, but said he was on the right track.

This is the kind of nonsense you get from these ridiculous, small-time, closed-loop journalists seeking amnesty and open borders. Navarrette is a racially based columnist. He said some cable hosts and radio talkers grow their ratings by pander to the anti-immigrant crowd. What is Ruben Navarette doing but pandering to the socio- ethnocentric special interest groups that are part of this network, now, a closed loop of left-wing groups that are dedicated to their own ethnocentric self-interest including amnesty and open borders. They're not interested in the national interests nor obviously in the facts and apparently don't even read the "Washington Post," which would be a good idea.

Coming up here next, America facing a national identity crisis. We'll have that report. And what most Democrats are saying about the possibility, however remote, of a so-called dream ticket. We'll tell you what the latest polls show.

And we'll tell you why thousands of teachers today, well, they walked off their jobs in Los Angeles classrooms, this morning. Quite a protest, quite a mess. We'll be right back.

(COMMERCIAL BREAK)

DOBBS: Senator Clinton will officially end her bid for the White House tomorrow and formally endorse Senator Obama. For a look at what she might be saying and to what degree it is important, I'm joined by three of the best political analysts in the country, including "New York Daily News" columnist, LOU DOBBS contributor, Errol Louis.

Errol, good to have you with us.

New York bureau chief for the "Washington Post," Keith Richburg.

Keith, welcome.

And Democratic strategist, Julie Roginsky.

Good to have you with us, Julie.

All right, how important is it, Julie, for what she does, how she does it?Important at all?

JULIE ROGINSKY, DEMOCRATIC STRATEGIST: Very important. I mean, she needs to make sure that she's not going the Ralph Nader of the 2008 election. She needs to tell all of her supporters they need to get in line behind Barack Obama. They need to put away the fact they're disappointed she's not the nominee, and they need to, you know, do whatever -- she needs to do whatever she can -- Bill Clinton needs to do whatever he can to make sure Barack Obama gets elected. Because the worst thing for her future is if Obama loses and the perception is he lost Clinton supporters stayed home at her behest. I don't think she's going to want to be that person.

DOBBS: What do you think?

ERROL LOUIS, "NEW YORK DAILY NEWS": Well, her maximum amount of influence over her supporters will be, really, tomorrow is important. After that, it really all starts to dwindle away and she becomes one more surrogate in fairly large cast of characters. So, it'll be important she say it emphatically, sincerely, properly. If there's any glimmer of hope that she might become the vice presidential campaign (ph), she'll also have to show a fair amount of humility. And that won't necessarily come easily to her, but that's how we'll know...

DOBBS: I think we should be fair, humility is not one of the leading attributes of any presidential candidate.

Well, that's exactly right, but we saw, you know, it wasn't that long ago we saw George H.W. Bush who ran a spirited, tough campaign against Ronald Reagan, in 1980, all of a sudden, turned into a pal and biggest supporter. It can happen, when power is involved. We'll know tomorrow, I think, whether or not that's still on Senator Clinton's agenda.

DOBBS: Keith, your thoughts?

KEITH RICHBURG, "WASHINGTON POST": You know, I agree. Rom Immanuel, Democratic Congressman, stayed neutral. He had said all along that Democrats can come together, but it's going to depend on if the loser -- how the loser loses. And so far, you know, Hillary, who lost this thing on Tuesday, hasn't lost really gracefully. She didn't endorse him. She let her supporters go out there and start doing this very crude petition campaign to try to get her on as vice president. You just don't do that. And the she'd encouraged this kind of thinking that maybe there's something she can do in Denver. You know, they were chanting "Denver, Denver, Denver," as she was giving her speech. I mean, what was that about?And why keep coming out and saying, "I won the popular vote, I won the Electoral Collage map," when, in fact, Obama is going to be the nominee.

ROGINSKY: The fastest way to not become vice president is to audition for becoming vice president and...

DOBBS: And she was this close to Obama selecting her and she just messed it up.

ROGINSKY: Well, I'm not so sure about. You know, people talked about that all the time, but you've got -- you know, you've got Bill Clinton, who I love, but Bill Clinton, out there in the shadows, how are you going to have Bill Clinton as spouse of the vice president?That's the overarching problem that I think Barack Obama and Hillary Clinton both face in making her the vice presidential pick.

DOBBS: Well, you have thoughts of Jimmy Carter and his help for administrations as he intrudes into international relations. Bill Clinton, by comparison, has been a minor item. I mean, he's behaved himself rather well, in terms of public policy, at least.

ROGINSKY: I think he's behaved tremendously well in terms of public policy. The charity work that he's done. He's become a leader in AIDS research in Africa, but he's got this very volatile, volcanic temper that's erupted in very inopportune times for his wife. Now granted, I understand he's her husband, he obviously feels very impassioned by this. This may be harder for him to watch his wife be criticized and to see himself having been criticized when he was president. But still, he needs to pack it in, in terms of his temper or else he's going to ruin any future that she might have.

RICHBURG: And also, I mean, you know, she lost and the loser doesn't negotiate the terms to the winner. The loser doesn't hold a gun to the head of the winner and say: you have to take me on. It just doesn't work that way.

DOBBS: Governor Rendell of Pennsylvania, he brought adult supervision to the whole matter saying you do not dictate to the nominee, whatsoever.

Here we need adult supervision because we have a government administration that doesn't have a clue what to do about economic policy; I think it is safe to say. Unemployment has risen to 5.5 percent that is the largest single monthly increase in 22 years. A 400-point drop in the DOW today because crude oil moved to $139 a barrel. And that is directly affecting millions and millions of Americans -- working Americans, their families, small business, and we're not hearing any intelligent statement from either one of these presidential candidates. We're not hearing any leadership at all from this administration. In point of fact, Henry Paulson, the treasury secretary, for crying out loud, is in the Middle East seeking foreign capital because the policies that this administration has followed, for almost eight years, have left American business absolutely dependent on foreign capital. I mean, we're in a heck of a mess here. What happens?Where are the candidates?Where is the president?Where is the Congress?

ROGINSKY: I don't know. That's a very good question.

DOBBS: But, think about that answer. Think about that answer. We're talking about the government of the United States and the two people who want the lead this country and no one is speaking with authority or vision.

ROGINSKY: This administration took a Rolls-Royce, I don't know, a Cadillac and they trashed it. I mean, I cannot envision a worst shot that they could have done on a variety of issues, but the economy itself is horrible. They should be extending unemployment benefits. I'm not an economist, but they need to do something to stimulate this economy. They need to so something substantive to make sure people don't hurt anymore...

DOBBS: I wish I could say that I agreed with you. This economy is stimulated to the point of -- I mean, it's -- we're having an overdose here in stimulation -- $12 millions a month being spent in Iraq, pumping half a trillion dollars into our banking system. We've just set a record -- all-time record for a federal budget deficit in the first six months of this fiscal year. I mean, we're out of control, here. Are we not?

LOUIS: Sure, well, they're doing the things that we would anticipate will lead to inflation right around the corner. If you look at some of the labor contracts that are being signed, there are big jump, there are big price pressures. The price of things like milk and commodities and the fact that they are rationing rice at Costco's around the country. I mean, there's all kinds of indications that we're heading for a word we haven't heard in a long time -- stagflation.

ROGINSKY: That's right.

LOUIS: Right, where you're got inflation and recession going on at the same time. It's kind of hard to pull it off, but it looks like this administration did it.

DOBBS: But, where the heck is the Democratic leadership of this Congress?Where in the heck are these two presidential candidates -- Keith.

RICHBURG: Well, I think we're going to -- we should start hearing, hopefully, more from the candidates now that the Democratic race is hopefully over, or will be this Saturday. McCain has proposed this series of weekly debates. I don't know if it will happen sooner rather than later, but I'd like to see the two of them standing next to each other and debating some of these issues. And I think that I'd...

(CROSSTALK)

Really shed a light on some things.

LOUIS: It's a great opportunity for Obama. It is an unplowed field for him to rush in and say, listen, if you want more of the same, you go with McCain, if you want something new, and then there's that big question mark. What's it going to be?

(CROSSTALK)

DOBBS: ...whether it's Obama or if it's McCain, they better not be talking nonsense, because we're talking about real pain out there, right now and we better hear real solutions, not rhetoric from both of these candidates. We can surrender on this administration and the leadership of this Congress, I guess. But, we thank you very much for being with us.

Julie, thank you very much. Errol, as always, thank you. Keith, thank you.

Up at the top of the hour, a CNN special report: Something's Happening Here. Campbell Brown with a preview -- Campbell. CAMPBELL BROWN, CNN NEWS ANCHOR: Thanks Lou. It was 40 years ago today that presidential candidate, Robert Kennedy died, a day after he was shot in Los Angeles and it shocked and stunned the country. You can see the disbelief and sorrow in the faces of the two million people who lined the route of his funeral train. Well tonight, we're going to look at the parallels between the tumultuous 1968 presidential campaign and this year. Join me tonight, 8:00 Eastern for an ELECTION CENTER special, "Something's Happening Here" -- Lou.

DOBBS: Thank you, Campbell. Still ahead, the diploma debacle in Ohio. You won't believe the state of education in Westlake, Ohio.

And America's national identity at risk. We'll have that report and "Heroes." We introduce you to a soldier who nearly lost his life saving a comrade. Stay with us.

(COMMERCIAL BREAK)

DOBBS: An alarming new report tonight. The United States, according to that report, is in danger of losing its national identity. The study warns that identity politics and the influence of socio-ethnocentric special interest groups are simply overcoming our common identity as Americans first. Bill Tucker with the report.

(BEGIN VIDEOTAPE)

BILL TUCKER, CNN NEWS CORRESPONDENT (voice over): The report is titled, "E Pluribus Unum," for many, one. It warns that we're in danger of becoming the opposite, from one, many. It is the work of the Bradley project, a non-profit group based in Wisconsin, dedicated to what it calls America's national identity. Its survey of 2,400 Americans contains some troubling findings.

PROF JIM CEASER, UNIVERSITY OF VIRGINIA: There is apprehension, too, about the depth of current division, with 80 percent of Americans registering concern about the amount of the division between ethnic and cultural groups in the United States...

TUCKER: Sixty-three percent of Americans believe our national identity is weakening, 24 percent believe we're so divided that a common identity is not possible. The report lays the blames on our failure to teach and understand our own history, noting America is not a nation founded on a common ethnicity, but an idea. And ideas must actively carried forward, noting, "Knowing what America stands for is not a genetic inheritance. It must be learned, both by the next generation and by those who come to this country."

To nurture and develop our sense of ourselves as Americans the report makes a series of recommendations, because, as the study's author makes clear, many Americans are historically illiterate, points in one example to a question to survey of fifth graders.

JAMES REES, EXEC DIR MOUNT VERNON: Only seven of 100 could explain why the date of July 4, 1776 is significant and why.

TUCKER: The loss of our identity is not merely an academic issue, note the authors.

(END VIDEOTAPE)

They note that national identity, citizenship is the seed of governments and that we seem to be a nation torn between nationality and globalization. Forty-five percent of Americans between the age of 18 and 34, when asked, responded that international law should trump the U.S. Constitution whenever there is a conflict.

And Lou, if your viewers want to see more of this, they can go to BradleyProject.org and read the entire report.

DOBBS: And I would urge everyone who has time and interest, to do so. The BradleyProject.org. That percentage, again, of young Americans, 18 to 34, who believe that the United States, the Constitution, should be subservient to international laws or bodies of any kind?

TUCKER: Forty-five percent.

DOBBS: You know, there's a book out there, "The Dumbest Generation," and know, the reality is it's my generation has been utterly stupid, because we've not insisted on educational standards that require the teaching of civics in our public schools, we've not insisted on quality public education, which is the great equalizer in our society. This is a frightening, disturbing report because we are failing. we have demonstrably failed a generation of Americans, my generation and that's scary.

TUCKER: It is scary.

DOBBS: Bill Tucker, thank you very much. Appreciate it.

Teachers in Los Angeles, setting an example, they walked off their jobs, walked out of the classroom for an hour, today. They were protesting the new state budget, there. They say that budget will lead to massive cuts in school funding. The protesters said the new budget will cost the school district $353 million and lead to staff layoffs. Those cuts, proposed cuts, come on the heels of more evidence that our public school system is failing a generation of students, and in particular, California.

Last night on this broadcast, we reported that more that a million students who entered high school four years ago, did not graduate this year and will not. That is not surprising, perhaps, considering what happened at Westptlake High School in Ohio. The word "education" was on a diploma, it was misspelled. There were 300 and, I believe 80, diplomas there, and the principal noticed that the school diplomas did not have the spelling of "education" correct. The Westlake school district says those diplomas were sent back to the printer to correct another error that was found earlier when the diplomas came back no one bothered to check them further, which, of course, contained the misspelling of the word "education." Both the school district and the printer have apologized to the 330 students, that's 330 students. New diplomas, we were told, have been printed, now, they have been sent to the students. And as best, the principal and the administrators of that school can tell, there are no further misspellings. Stay tuned.

Still ahead, "Heroes," our weekly tribute to our men and women who serve this nation in uniform. Tonight, the story of a soldier who survived a roadside bomb attack, risking his life for a comrade. Stay with us, we'll be right back.

(COMMERCIAL BREAK)

DOBBS: And now, "Heroes." Tonight, we introduce you to Army Staff Sergeant Tim Bennett. Barbara Starr has his story.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN NEWS CORRESPONDENT (voice over): It was last August when Staff Sergeant Tim Bennett's Humvee hit a roadside bomb in Iraq and exploded in flames.

STAFF SGT TIM BENNETT, U.S. ARMY: And in that split second, I realized, oh my God, I'm on fire and I knew I was on fire head to toe, it was just excruciating pain. I looked up and noticed my gunner was -- you could see he had a compound fracture from the blast on his leg and the strap had tied around his leg and if I left him, he'd die.

STARR: His body on fire, Bennett cut the gunner free, then he turned to his own dire situation, his clothes were melting on his body and he still had to get out of the burning vehicle.

BENNETT: At one point, I'd actually given up. I was like, this is it, this is how I die. And the pain just -- I always had these preconceptions of eventually it's going to hurt to a point it will go away and it just kept getting worse and it never stopped. I sat back and I thought of my wife and kids. I said, I've got to get out of here.

STARR: Now he has one arm amputated, his body a mass of scarring. He wants people to know about burned troops.

BENNETT: We understand that we look kind of ugly, the burns are kind of scary looking. It is OK to ask.

STARR: He often thinks of the man he saved.

BENNETT: You take care of each other because when you are in that situation, really all you have is your buddies or the guys to your left and right. Everybody comes home. That's what counts. Everybody comes home.

STARR: Barbara Starr, CNN, Brooke Army Medical Center, San Antonio, Texas.

(END VIDEOTAPE)

DOBBS: And the people there do a wonderful job. The staff at Brooke Army Medical Center, all of the centers taking care of our wounded warriors, we owe them a great salute, as well. Tonight's poll results -- 97 percent of you say $139 a barrel of oil, a 400 point loss in the Dow and the biggest increase in the unemployment rate we've seen in two decades suggest -- just perhaps suggest -- we need economic leadership.

Let's take a look now at some of your thoughts.

Fred in Florida wrote in about my interview with "Fast Company" reporter, Richard Behar: "Lou, how can you expect American business to invest in sub-Saharan Africa? They're much too involved in investing with communist China."

And Charles in Georgia said: "Lou, would you tell me how to get in touch with those foreign governments that are buying up American assets? I'd like to sell them my house."

Very good point.

Join us, please, on the radio Monday through Friday for "The Lou Dobbs Show." Monday I'll be joined by Jonathan Martin of politico.com, Mike Holland of the "Holland Balanced Fund," Justin Wolfers of the Wharton School. Join us for that Monday on the radio.

For tonight, thanks for being with us. A special report, "Something's Happening Here," begins right now.