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American Morning
Kodak Cutting Jobs; White House Disappointed in GOP; The Case for Doing Nothing; Obama Great Expectation
Aired January 29, 2009 - 08:02 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KIRAN CHETRY, CNN ANCHOR: Well, we're two minutes after the hour right now. A look at the top stories this morning. Breaking news. We're following Ford Motors is reporting a loss of $5.9 billion for the fourth quarter. Despite the loss, the nation's number two automaker says it still has no plans to seek federal money.
Right now, Wall Street bracing for a number of key economic reports, and that includes the latest jobless numbers. Experts are predicting the number of people filing for first-time unemployment benefits last week will come in at around 500,000. That's down from the week before. Again, these are just estimates. We're going to bring you those numbers as soon as we get them.
And the Postal Service looking to save money by possibly stamping out a six-day delivery. The postmaster general telling Congress Wednesday that they face a projected $6 billion loss this year, attributing part of that to people e-mailing more. 23 billion less pieces of mail, meaning fewer pieces of mail being delivered. Some lawmakers say that cutting back services should be a last resort because businesses will look elsewhere for mail delivery.
And just in to CNN, Kodak, the latest company to announce job cuts. Our Christine Romans joins us now with more on what's going on with this company.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: OK. So, how big are the job cuts? That's the question. 3,500 to 4,500 positions will be eliminated at Kodak. That's about 14 percent to 18 percent of the total workforce. This will happen during 2009. There already had been some job cuts that has been expected. I think maybe 1,500 of those we had known about, but the company saying altogether now 3,500 to 4,500 positions will be eliminated.
Look, you know, it's very tough environment for Kodak. They're talking about the global recession and the things that they have to do to try to keep up with it. Tough stuff here. I mean, this is a company that is cutting up to 18 percent of its workforce to keep going. So that just tells you some of the pressures that are in a lot of these companies.
There's also an earnings report from Colgate-Palmolive, which, I think, is kind of an interesting thing to look at quickly. It's fourth quarter profit was up 20 percent. Colgate-Palmolive, of course, is Colgate, Ajax, Science Diet -- the pet food, a lot of things that people even in a recession still are going to buy. And in some cases, we are seeing that drugstore sales are the only things that aren't declining. That's because people are cutting back everywhere else, but they're still buying their tooth whitening toothpaste or whatever. So, that's sort of interesting trend there.
Also, Colgate-Palmolive, they're saying that the operating environment is very tough, obviously, but that they have done very, very big cost- cutting to help them here, and they've had new products that have helped them as well.
So, two different kinds of stories. Eastman Kodak, Colgate-Palmolive, kind of a tale of two different kinds of consumer companies.
CHETRY: All right. Christine, thank you.
ROBERTS: President Obama scored a solid win in the House on his stimulus bill, but he did it without a single Republican vote, and now the White House is talking about that. Our Suzanne Malveaux just scored an interview with White House spokesman Robert Gibbs a few minutes ago.
Suzanne, what did he say to you?
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, obviously, they're disappointed with this. I mean, this is a president who ran on the sense of bipartisanship, unity, bringing the two sides together. They recognized that yes, he has used some political capital here in reaching out personally to both Democrats and Republicans, but also there is a sense, too, that he -- you know, eight days that he's been the president, he still has a lot of political capital left and that this is really just the beginning of the process. I want you to take a listen to what he said.
(BEGIN VIDEO CLIP)
ROBERT GIBBS, WHITE HOUSE PRESS SECRETARY: I think he's a little disappointed that the Republicans decided to vote as a block in opposition to a plan that has garnered support from across the political spectrum, because economists know, liberals and conservatives, that it will put people back to work.
I think the president understands that he can't change the way Washington works in nine or 10 days, but he hopes that members of the House and the Senate from either party will not look at this through a political lens, but instead, what will work to get this economy moving again to put money back into people's pockets and to create -- save and create 3 or 4 million new jobs.
MALVEAUX (on camera): What will the president do differently in reaching out on the Senate side? Is he going to be personally involved in trying to get Democrats to offer more concessions to Republicans on the Senate side?
GIBBS: Well, you know, I think what we need to do is make sure that we get a plan that works. This president has reached out to House Republicans. He reached out to House Democrats. He'll do the same thing in the Senate.
I think it's important for the American people to know that just because of one vote doesn't mean that this president isn't going to try to -- isn't going to stop trying to change the way Washington works and stop trying to reach out to Democrats and Republicans. Just 30 minutes after the vote, we had Republican leaders here at the White House, again, reaching out and trying to get something done.
MALVEAUX: And one of those Republicans, Congressman John Boehner said, I guess if they're inviting the skunks to the garden party, I'll go and I'll smile. Is that the strategy? Is that the sense that keeps these guys talking to each other to develop a relationship?
GIBBS: Well, look, I think that Washington has had a tendency to -- people will get in a room and go to one side or the other. I think what this president wants to do is try to bring those parties together to work in tandem to get something for the American people.
(END VIDEO CLIP)
MALVEAUX: So, John, he recognizes that the president does have a tough sell and President Obama, when he was an Illinois senator, he used to basically have these poker games where he participate and there'd be Republicans and Democrats, weekly poker games. This is really what he's used to doing. It's working with both people, both sides in a social kind of way. But they also recognize some real philosophical differences and some real hard facts that he's got to come up against, that a lot of Republicans just don't believe that this is the right approach.
John?
ROBERTS: Maybe the next time he plays poker, he actually has to -- you know, bet for votes or something like that. What about the Senate? Is he expected to get more bipartisan support than he got, which wouldn't be hard considering he got none in the House?
MALVEAUX: Yes. They're expecting that it will look a little bit different on the Senate side, that there will be more of a sense of bipartisanship. They're also looking to -- it is expected to be even a bigger bill on the Senate side, but they're looking at ways that they can trim it a little bit. They're already taking a look at that. And he's already reaching out, once again, to the Republicans as well as Democrats to see how can they craft this, how can they make this work.
There were some CEOs that were here at the White House yesterday, John. You know, IBM, Honeywell, BET. Talked to a couple of them and they said, look, we're on board when it comes to this stimulus package, we certainly hope it works, we just hope it works. There's a sense here that they just don't know whether or not it's going to work, and that this is a leap of faith. The White House acknowledges that, that they need to convince the Republicans and the Democrats to take this leap of faith.
ROBERTS: Certainly a lot of varying opinions on whether or not it will work. Suzanne Malveaux at the White House this morning. Suzanne, thanks.
CHETRY: Well, now, as President Obama makes his case for the Senate to pass the stimulus package, one group of economists warning Washington is dead wrong. We're going to find out why they say the stimulus package is not the answer to reviving America's economy.
Also, great expectations. African-Americans hoping the Obama presidency will be a life-changing experience. But will he be able to deliver on those great expectations? It's 9 minutes after the hour.
(COMMERCIAL BREAK)
CHETRY: Welcome back to AMERICAN MORNING. You know, it's not just the politicians that are debating the stimulus package. There's a small but vocal group of economists and libertarians who believe that the massive spending plan is not the answer to the economic crisis.
In fact, one D.C. newspaper dubbing the group the "Do Nothing Crowd." The CATO Institute is part of that group. They've taken out a full page ad in some major newspapers to make their point. And joining me now is a senior fellow at the CATO institute, an economist, Alan Reynolds.
Thanks so much for being with us this morning.
ALAN REYNOLDS, SENIOR FELLOW, CATO INSTITUTE: Glad to be here.
CHETRY: So right now, of course, we all can agree on one fact and that is that, you know, the economy is in a really, really tough spot. Arguably one of the worst that we've seen in modern times. We're looking at record unemployment, news of layoffs, and there are some who say we should do nothing. How do you make that argument work?
REYNOLDS: Well, the folks who signed the letter we're talking about -- there's 250 economists, three Nobel laureates. I know quite a few economist who are on the list. Alberto Alesina at Harvard, Robert Barro at Harvard, Harold Hughley (ph) at (INAUDIBLE) in Chicago.
Basically, the research is that government spending, deficit spending, if you will, is rarely helpful. I mean, somebody should ask for one -- they're not saying do nothing. The Fed is doing a lot. Probably a good idea.
Tax policy sometimes, if it's clever, can help. But basically you've got over indebted firms, you've got housing prices went too high. Some of these things we just have to work our way out. We always do. And we did, prior to before there was a fed and before there were TARP plans and things like that, recessions lasted about ten months. This one is actually a little on the long side. Not very deep yet, contrary to what everybody is saying, but it will get -- it's a bad one, it's not the worst.
CHETRY: Very interesting. Well, in yesterday's "Wall Street Journal" you argued that stimulus investments in health and education are misplaced because they actually don't address the areas of highest unemployment. President Barack Obama actually spoke to that issue. Listen to what he said, and I'd like to get your reaction.
REYNOLDS: OK.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES OF AMERICA: But even as this plan puts Americans back to work, it will also make the critical investments in alternative energy and safer roads, better health care and modern schools, because that's how America will retain and regain its competitive edge in the 21st century.
(END VIDEO CLIP)
CHETRY: So the argument seems to be if we're going to spend money to put people back to work, we may as well invest in future crucial parts of our future like schools, like education. What do you think about that?
REYNOLDS: You can call anything an investment. Some of it is. The government does some investing. What he's basically saying is you're going to expand the government. More than half of the money either goes directly to government or to education which is primarily government-run. And health. I'm a little bit for that.
Are these good things? Sure. Lots of things are good things, but they compete with the private sector for real resources, and that is the problem. When we see a government go up, private investment tends to go down, including investment in housing. And I cite some of that research in the "Wall Street Journal" article and also in another one, in "National Review." They're both at cato.org.
CHETRY: Yes. And it's also interesting because in this full page ad that is going out, one of the -- one of the points made is that more government spending by Hoover and Roosevelt did not pull the U.S. economy out of the Great Depression in the 1930s, and it also didn't solve Japan's, quote, "Loss decade in the 1990s."
What does history teach us then as new generation is looking at this and this is a problem that many of them are going to inherit because of the deficits. What is the solution?
REYNOLDS: Well, the only deficit we've seen of this magnitude, and we're talking about a deficit of about 12 percent GDP, at least 11. And the only thing that came close among industrial countries was Japan in 1998. They came close to 11 percent. Did that stimulate the economy? No. That's just part of the same loss decade. They doubled national debt.
Basically, when you borrow from Peter to pay Paul, you've got to pay Peter some interest. And at the present time, the interest is low, but we start rolling over $2 trillion dollars of debt, it's going to be a little hard to sell.
And some of the folks who are now with the administration, notably Peter Orszag, OMB director, warned against deficits that were much smaller than this and said that they are going to hurt the economy in the long run. They are absolutely right. And the long run isn't that far away. To say that this is going to create 3 million or 4 million jobs -- look, we got out of two deep recessions, the one in the early '80s, for example, creating 7 million to 10 million jobs in three years and there was no program of this sort. This is just basically wasting money.
CHETRY: Very interesting point of view. And as you said, it's all available for people to read on cato.org.
Alan Reynolds, thanks so much for joining us this morning.
REYNOLDS: Thank you.
ROBERTS: Well, his approval ratings are sky high. But President Obama's honeymoon could be short-lived with a surprising group of supporters -- African-Americans. We'll tell you why. 16 minutes after the hour.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
CONAN O'BRIEN, HOST, "LATE NIGHT WITH CONAN O'BRIEN": President Obama still has not gotten used to the White House, apparently. This is true. Today on his way into the Oval Office, he tried to mistakenly open a window that he thought was a door. That's true. Yes. White House employees said at first it made them laugh, then a wave of nostalgia washed over them.
(END VIDEO CLIP)
ROBERTS: Yes. Welcome back to the "Most News in the Morning." Barack Obama came into the White House promising change that people can believe in. Expectations for his presidency are sky high particularly among African-Americans. But Obama's most ardent supporters could be in for a let-down. Jason Carroll here this morning following this story.
Hi, Jason.
JASON CARROLL, CNN NATIONAL CORRESPONDENT: Hello to you. And you know he's got a lot on his plate. He is obviously not going to be able to please everyone. President Obama has to deal with an economic crisis and not one, but two, wars. Even with those challenges, some still say that he has a long to do list they want him to achieve during his presidency.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: Breaking news at this hour.
CARROLL (voice-over): It's a modern version of "Great Expectations."
UNIDENTIFIED MALE: He should create a, you know, viable socioeconomic situation for people who have been marginalized, a lot of them black or Hispanic or other minorities. CARROLL: Callers phoning in with hopes of how President Barack Obama will change their lives. Sirius XM radio host Mark Thompson has heard it all.
MARK THOMPSON, HOST, "MAKE IT PLAIN WITH MARK THOMSPSON": People are really feeling good about things, in spite of all of the problems. There still is a feeling that there are solutions on the horizon.
CARROLL: One recent poll showed 98 percent of African-Americans approve of Obama so far. Is it optimism? Unrealistic expectations headed for a letdown or both?
MELISSA HARRIS-LACEWELL, PROFESSOR, PRINCETON UNIVERSITY: I know the line is everybody wants such great things that we will be disappointed, but you know, Obama is in certain ways, fulfilling what I see as a very common trope or narrative in black communities, the son that makes good.
CARROLL: But the black community is not monolithic in its thinking. Allison Samuels says some hope Obama can fix the myriad of problems facing the community, high incarceration rates of black males, access to quality education, ending discrimination. Samuels explored the issue in a "Newsweek" magazine article, "The Audacity of Hoping."
ALLISON SAMUELS, REPORTER, NEWSWEEK: Some were saying, you know, hey, look, I think my whole world is going to change because Obama is in office. I think that he's going to be able to get me a job. He is going to stop my foreclosure. He is just going to change my life.
CARROLL: Unrealistic expectations, Samuel says needing a reality check.
SAMUELS: We're coming off such a disastrous administration, where hopes were just, you know, down to nothing. So we're expecting him to sort of do so many different things that I think are pretty unrealistic.
CARROLL: Obama is facing many problems -- the economy, two wars, African-American scholars say some in the community may not realize if he can fix those, everyone benefits.
ELLIS COSE, COLUMNIST, NEWSWEEK: Yes, the president is going to disappoint some people, of course, it is. But it has less to do with the fact that he's black, I think, but the fact that he comes at a time where there's just so much to be done and so many expectations about him doing it.
(END VIDEOTAPE)
CARROLL: And many people we spoke to for the story say another point is while Obama received overwhelming support from the African-American community during his campaign, he did not want to make race the cornerstone of his campaign. He wanted to represent all people. The key really here is patience.
I mean, this is what we're getting from a lot of people. Obviously, it's not just African-Americans who are expecting a lot. It's whites, it's black, it's Latinos -- there are a lot of people. He's obviously not going to be able to do everything for every person.
ROBERTS: Yes, and so much to fix as well. It's like, you know, coming in to a hotel room that Keith Moon was staying in. Where do you start? Jason, thanks so much.
CARROLL: All right.
ROBERTS: Kiran?
CHETRY: While we're seeing companies slash jobs left and right -- very interesting analogy this morning -- the federal government may have something for you. A look at who is hiring.
Also ahead, an ex-CIA officer working in an Arab land -- working in a Muslim land accused of rape. The explosive charges and what the White House is saying. It's 22-1/2 minutes after the hour.
(COMMERCIAL BREAK)
CHETRY: You know nearly half of Americans want to live someplace else? That's according to a new study by the Pew Research Center. So, where to then? It turns out the number one choice if you could live anywhere in our United States of America, Denver -- thanks to its low humidity, eight professional sports teams, and proximity to the Rocky Mountains. Also San Diego. Hey, the weather is always beautiful in San Diego, isn't it? Seattle. Those were other top picks.
Detroit, the least favorite place to call home, along with Cleveland and Cincinnati. (INAUDIBLE). High foreclosure and unemployment rates right now. Other interesting findings on the study, wealthy people twice as likely to live in Boston and Republicans would rather live in Phoenix. Democrats prefer San Francisco. How about that?
Well, would you like to apply for a job with the biggest employer in the country, one that is increasing, it's hiring every single year? We're not talking about Wal-Mart.
Gerri Willis joins us now on her ongoing series to talk about working for Uncle Sam.
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: That's right.
(CROSSTALK)
CHETRY: The federal government right now.
WILLIS: That is where the jobs are, and they are growing. Let's talk about how many folks the federal government employs. Some 1.93 million people and full time and part-time work. That's right. A ton of people. It grows every single year.
Let's take a look at how much it grows. Check this out. Thousands and thousands of people added every single year, and if you look at what happened in 2008 just last year, 91,000 people added, that was for the half year, just through the first six months. As many people as were added total in 2006. So the federal government is growing like top seed, no big surprise there.
So if you're sick and tired of hearing about layoffs, you're worried you are going to lose your job, the federal government is a great place to go. Bottom line, you can find about any job you find in the private sector in the public sector. So let's take a look at some of those jobs that might be available to you - Chemists, biologists, doctors, nurses.
At one time, the IRS even employed art appraisers. They don't anymore. But you get the idea you can find any job you want with Uncle Sam. And they have the usual stuff -- office managers, personnel assistants, engineers. But I bet you'd like to hear about some unusual jobs?
CHETRY: Yes. Tell us about some of the most unusual.
WILLIS: All right. So I had to come up with this list for you, because I knew you would be interested in this. Bowling equipment repairer.
CHETRY: Bowling?
WILLIS: Bowling.
CHETRY: You know you always have to page the guy when you're on the lane, it gets stuck, you know, it won't clear. Someone has got to help you out!
WILLIS: You know there is a bowling alley in the White House.
CHETRY: Yes.
WILLIS: These are federal employees.
CHETRY: Not for long, though, right?
WILLIS: Yes, exactly. It's supposed to go. Aircraft attendant, these are the folks that stand and make those planes park and they're always moving their arms.
Lamplighters.
CHETRY: Love it.
WILLIS: Charwomen and sextons. Yes, I know.
ROBERTS: What kind of a lamplighter?
WILLIS: Well, I mean, have you ever been to federal properties that are historic? Sometimes they have those old-fashioned lamps? I'm telling you, it's absolutely true. We talked to the office of personnel management. There are all kinds of wild jobs out there.
CHETRY: We always need (INAUDIBLE) in church, but I didn't know that lamplighter is for the federal government.
WILLIS: Yes. They don't let little kids do it.
ROBERTS: What's a charwoman?
WILLIS: A charwoman is a person who cleans a building, so she is responsible for cleaning up the building. I know it sounds like something out of Dr. Seuss or something.
ROBERTS: Or Dickens -- lamplighter, charwoman and a sexton?
CHETRY: Right. Head to Jamestown.
WILLIS: Don't call the federal government old-fashioned, right? One thing I want to add here, though, if you are really serious and you do want to look for a job with the federal government, because I know a lot of people out there are really worried about employment right now, go to usajobs.gov. That's where you can search for these jobs.
Remember, only 12 percent of these jobs are actually in Washington, D.C. They are all over the country. So you may not even have to move.
CHETRY: How about that? All right. Thanks so much, Gerri.
WILLIS: My pleasure.
ROBERTS: It's coming up now on 29 minutes after the hour. And breaking this morning, a nasty ice storm cutting power to more than a million people from Oklahoma to West Virginia. They could be in the dark for days, maybe even weeks. With tree limbs snapping and power lines cased in ice, utility crews say that they are shooting for mid- February in the hardest-hit areas. President Obama has declared federal emergencies in Arkansas and Kentucky. States are reporting at least 17 storm-related deaths.
The paper trail in the Bernard Madoff fraud case has led to a warehouse in Queens, New York. Investigators have discovered boxes and file cabinets stuffed with documents that could reveal more clues in the alleged Ponzi scheme. Investors are sifting through the papers. Though so far they're keeping mum about what they found. Madoff is accused of bilking investors out of more than $50 billion.
We're learning that Barack Obama will make his first foreign trip as president on the 19th of February. He's going to head north of the border to Canada. That's a tradition honored by most presidents in modern history, including Presidents Kennedy, Johnson, Reagan, Bush 41 and Clinton. George W. Bush went to Mexico first and then to Canada.
Day ten of the Obama administration end with a stimulus passing along party lines. Lawmakers are squabbling over how much pork has been crammed into the bill. One of the biggest flash points $335 million for STD education. So what is pork and what isn't? That's the burning question. On Capitol Hill, it depends on who you ask. And our Jim Acosta is live in Washington for us this morning.
Good morning, Jim.
JIM ACOSTA, CNN CORRESPONDENT: Good morning, John.
The Senate's version of the bill? It's going up. Nearly $900 billion is the estimate. The latest estimate on the Senate version of this bill. You know, one Republican congressman slammed the president's stimulus plan as a rampant spending spree. Another said it's one giant earmark. As in these pet projects that slipped into bills in the dark of night. But it's not just republicans who are grumbling.
(BEGIN VIDEOTAPE)
ACOSTA (voice-over): If you listen to some Republicans and even some Democrats, the president's stimulus plan is a $1 trillion bridge to nowhere.
UNIDENTIFIED MALE: There are a lot of congressional bulls here who put their wish list, their pet projects in this bill.
ACOSTA: But one politician's pet project is another lawmakers' worthy program.
UNIDENTIFIED MALE: There is not a single earmark in this bill.
ACOSTA: It all depends on your definition of the word "earmark." Members of Congress are squabbling over $335 million in funding for education on sexually transmitted diseases, and $650 million for digital TV coupons. A growing number of Republicans and Democrats say measures like those don't create jobs.
UNIDENTIFIED MALE: A stimulus bill should do just that.
ACOSTA: Counting his stimulus plan as pork-free, President Obama is urging Americans to track the spending at a new government website, recovery.gov. But note what the site says, the plan can only be tracked after it's passed.
PRES. BARACK OBAMA, UNITED STATES: Most of the money that we're investing as part of this plan will get out the door immediately.
ACOSTA: Technically, the congressional budget office estimates most of the money will be spent by September of 2010.
STEVE ELLIS, TAXPAYERS FOR COMMON SENSE: It all depends on your definition of immediate. Essentially is immediate what most people think, which is tomorrow? No.
ACOSTA: Government watchdogs say while much of the stimulus spending may not meet the criteria of an earmark or pet project, there are agencies like the Army Corps of Engineers that are seeing their budgets double, with no mention of how the money should be spent.
ELLIS: Ask the people in New Orleans what they think about some of the Corps of Engineers projects, particularly the people who live behind the levees. ACOSTA: The White House acknowledged its plan is no silver bullet.
ROBERT GIBBS, WHITE HOUSE PRESS SECRETARY: I don't think we're going to wake up on January 1st, 2011, you know, like Dorothy and "The Wizard of Oz" we're going to go from black and white to color.
(END VIDEOTAPE)
ACOSTA: No. We're not in Kansas anymore. As for that spending on STD prevention, the democratic rationale is that healthier Americans will be more productive and those millions for digital TV coupons, the hope is that money will go to new call centers explaining how the technology works. And John, for the record, I learned how to use my digital TV on my own.
ROBERTS: Good for you! I mean, it's not that difficult but -
ACOSTA: But I didn't think so.
ROBERTS: All right. Jim Acosta this morning. Jim, thanks so much.
ACOSTA: You bet.
CHETRY: All right. Well our own Lou Dobbs is going line-by-line and item-by-item, taking a closer look at what exactly is in this stimulus bill. It's part of his new series "Lou's Line Item Veto." Here is a look.
LOU DOBBS, CNN HOST: Thanks, John, Kiran. The massive so-called stimulus bill passed by the House last night, not a single Republican voted for it, no one in Congress can assure the American people that any part of this legislation will actually stimulate the economy. That is, in part, because so few members have actually read HR-1. We have!
And "Lou's Line Item Veto," we focused on the money slated for climate change research as just an example. That's right. Nearly 400 million dollars of your money slated to go toward climate change research for NASA and the National Oceanic and Atmospheric Administration. NOAA. Democrats say that measure supports "research jobs" but critics say it's just more unnecessary spending for democratic priorities.
And meanwhile, President Obama and the Democrats touting the bill as an infrastructure spending bill, but, actually, only about $150 billion of more than a trillion dollars will actually go to infrastructure and construction projects. That is the construction industry is set to lose a million more jobs this year alone.
Neither political party is providing responsible oversight, nor analysis of this legislation. And no one can assure the American people at this point of any part of this legislation actually stimulating the economy. Watch "Lou's Line Item Veto" tonight at 7:00 p.m. Eastern on "Lou Dobbs Tonight."
And then please let your elected officials exactly how you feel about all of this stimulus. John, Kiran, back to you. ROBERTS: Just in to CNN this morning. New jobless numbers. Christine Romans is "Minding Your Business." She joins us now. And the upward trend continues.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Yes, it really does. 588,000 people lined up for the first time last week for unemployment benefits. That's an increase of about 3,000. But you know we've been seeing these numbers trend above half a million a week. A half a million a week people lining up for the first time to get unemployment benefits.
Just think of it this way. Last year, in the very same week, 366,000 people did. So you can see every over the past year, things have deteriorated. In fact, that deterioration coming quickly in the last four or five months. You now have 4.8 million people, an all-time high, continuing to collect jobless claims.
And of course, we know that the stimulus package, if it goes all the way through, will provide more time for people to continue to get jobless benefits and will also put a little bit more money in those checks, maybe $25 in each check extra, according to the House version of the bill. We'll see how it goes with the Senate.
So we do know that more and more people are losing their jobs. Filing for unemployment benefits. We know that number keeps going up. We know the stimulus bill has some provisions in there trying to attack that and we know that what has really been happening over the past few months is deteriorating even more sharply over the past few months.
Of course, we've been sitting here for three days now and every day, 71,000 job cuts Monday, another, you know, 10 or 15 Tuesday and another 10 yesterday. I mean this happens. It's just going and going. So we'll see these numbers continue to move higher, probably.
CHETRY: Unfortunately. Christine, thank you.
Well, we have other breaking news this morning. Another potential black eye for the U.S. overseas. An ex-CIA officer accused of rape. What the White House is saying this morning.
Also looking for a leader. The RNC getting ready to choose a new chairman as Republicans line up against the president on Capitol Hill. We're going to talk to a man who wants the job and ask him whether a minority has to fill the post. It's 36 1/2 minutes after the hour.
(COMMERCIAL BREAK)
ROBERTS: The grand old party looking to the future. Elections for RNC chairman take place tomorrow and it seems like the Republicans are getting back to basics in their opposition to Barack Obama's $819 billion stimulus package.
My next guest thinks that he is the man to lead the Republican party. Former Ohio Secretary of State Ken Blackwell joins us now live from Washington this morning. Ken, it's good to see you. Thanks for being with us. KEN BLACKWELL, CANDIDATE RNC CHAIRMAN: Good to be with you, John.
ROBERTS: So let's take a look at the results of the November election. The Republican party lost among the two biggest voting blocks, women and moderates. You lost in two formerly safe Republican states, Indiana and North Carolina. You lost in the key suburbs. What are you going to do to turn this party around as chairman?
BLACKWELL: Well, we're going to create a 50-state party. We played in 2000 and 2004 in just 28 states seriously when Barack Obama, Hillary Clinton, and all led by Howard Dean played in 50 states. We have to play the full field and that is the sort of leadership that I want to bring to the Republican party.
ROBERTS: But you know, playing 50 states or playing 28 or playing two, Indiana and North Carolina, you're on losing ground right now. How do you turn that around in those particular states that used to be Republican strongholds?
BLACKWELL: Well, we have to inspire our base. We have to go back to basics. We can't, you know, campaign like Ronald Reagan and then govern like Jimmy Carter and say that we are a viable alternative. We have to advance what I consider to be a center right agenda to a center right country. We can get that done.
But a leader that has been the mayor of his hometown, Cincinnati, Ohio, and undersecretary of HUD, a U.S. ambassador working with John Bolton to re-structure the United Nations and make sure that our national interests are protected in the world community. That is the sort of leadership experience and I've done that.
ROBERTS: So you say energize the base. Do you still believe that the right wing represents the majority of the Republican party?
BLACKWELL: No. I think we are center right country. And I believe that a conservative alternative to the Democrat advancement is what is called for. Look. We have a very clear picture right now. We have TARP and the stimulus bill. That's two trillion in increased government spending and no accountability. I think the Republican party has to put a responsible program in place that, once again, grows our economy, creates jobs and we can do that.
ROBERTS: What about expanding the Republican - you look back at the Republican National Convention in Minnesota. St. Paul, Minnesota. 36 out of 2,380 delegates were African-American. Barack Obama won 95 percent of the African-American vote. What can you do to expand the tab?
BLACKWELL: Well, we have to in fact advance an agenda that really does address the needs of all Americans. We can't play racial politics, but if we advance an agenda that helps families not only put food on the table, creates jobs and helps them improve the schools in their neighborhoods, that's a Republican party that minorities, majorities, and folks all across the country can respond to.
ROBERTS: Let me just point out some comments that you made recently on gays and lesbians. You at one point compared homosexuality to arson or kleptomania. You later clarified your statements to say it was a compulsion that can be controlled. How were those statements being inclusive? How are those statements broadening the Republican tent?
BLACKWELL: Well, essentially what I advance is that we are the most diverse democracy in all of human history. It is the promise of the individual. One race, one sexuality should not be advanced as a special agenda in our democracy.
ROBERTS: All right. Ken Blackwell, good luck to you tomorrow. We will be watching that vote very closely. Good to have you on this morning.
BLACKWELL: Thank you, John.
ROBERTS: All right. Take care. We'll see you soon.
CHETRY: A former CIA officer accused of rape. The explosive charges and what they could mean for the president's efforts to reach out to the Muslim world. It's 43 minutes after the hour.
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CHETRY: Breaking this morning. Explosive charges against a former CIA station chief accused of raping women while working overseas for the U.S. government. Pentagon correspondent Barbara Starr is working this developing story for us. Barbara, first of all, explain what we know about this case right now.
BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, Kiran, obviously, a very delicate, sensitive matter that crosses international boundaries. A source familiar with the investigation has confirmed to CNN that, indeed, it was the CIA station chief in Algiers. That man now under investigation for allegations of raping two women while he served at that post in Algiers.
The identification of Andrew Warren in a government affidavit for a search warrant is simply that he is an employee of the U.S. government in Algiers but, again, sources very familiar, a source very familiar with the investigation, separately confirming to CNN, he was the CIA station chief there.
The allegations now have led to this search warrant. They are looking for evidence of what has happened. The women are alleging they believe that they were subjected to date rape drugs. At least one of the women saying that she believed that she was possibly videotaped.
In the affidavit, this man says that it was consensual sex between him and these women. The matter remains under investigation. Kiran.
CHETRY: All right. Thanks so much, Barbara.
Also this news broke, our White House correspondent, Suzanne Malveaux, got reaction to it from the White House. She spoke with Press Secretary Robert Gibbs. Here is what he had to say about the matter. (BEGIN VIDEO CLIP)
ROBERT GIBBS, WHITE HOUSE PRESS SECRETARY: I've seen the reports but I don't have a lot of information beyond that. I would refer you to the Department of Justice but I think it's important to understand that there are very serious allegations and that they will be looked into and investigated properly.
(END VIDEO CLIP)
CHETRY: And, again, the story just hitting the international press this morning as well. Our teams around the world are monitoring for reaction. It's 48 minutes after the hour.
(BEGIN VIDEOTAPE)
ROBERTS (voice-over): Be a patriot. Buy American.
UNIDENTIFIED MALE: Anybody that turns around and says that we should export more jobs out of this country, maybe they ought to go over to China.
ROBERTS: But what if you can do better overseas?
UNIDENTIFIED MALE: Buying from China is cheaper.
ROBERTS: Should you buy for your country or your wallet? You're watching the most news in the morning.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
JAY LENO, "THE TONIGHT SHOW WITH JAY LENO": Now people are still talking about Michelle Obama's inaugural outfit. You know, I saw the designer of it on one of the cable show. And he said that he didn't even know that Michelle was going to wear his design. He said he was watching the inaugural ball on TV and was surprised to see her wearing it. The designer of Aretha Franklin's hat? He said he was surprised too when he saw Aretha wearing his design on her head because he originally designed it as a tote bag.
(END VIDEO CLIP)
ROBERTS: Welcome back to the most news in the morning.
President Obama's $819 billion stimulus package is encouraging some economic patriotism with two words - buy American. But is that, as some people are suggesting, limit free trade? Opinions sharply divided between some lawmakers and economists over that. And Carol Costello is live for us in Washington this morning trying to sort it all out. So what do you do? Buy American or limit free trade? What do you do, Carol?
CAROL COSTELLO, CNN CORRESPONDENT: Well you know, it's a tough one because people seem to really want to buy American these days. It's kind of the cool thing to do. But critics say a provision in the stimulus plan that requires - that requires people - that requires the government to buy American products will cost America, in the long run, anything, though, wrapped up in patriotism is hard to fight.
(BEGIN VIDEOTAPE)
COSTELLO (voice-over): Love your country? Well then stand up, America. It's time to become an economic patriot.
ANNOUNCER: We must bring our jobs home.
COSTELLO: The Travel Channel's "Made in America" celebrates what is becoming a hot button issue. If you want to make America great again, buy products made in the U.S.A.. If that sounds familiar, it is.
When times are tough like they were back in the 80s, Americans like to practice economic patriotism, and, today, even powerhouse investor Warren Buffett is buying in, urging in an op. ed, those buying stocks, buy American. I am.
OBAMA: An American recovery -
COSTELLO: Economic patriotism is part of President Obama's stimulus package, too. It includes a provision requiring that only steel made in America be used in any infrastructure project.
SEN. SHERROD BROWN (D), OHIO: We're going to spend hundreds of billions of dollars on this stimulus package then we're going to buy products from another country using taxpayers dollars? I don't think so.
COSTELLO: Senator Brown is so passionate about it, he's insisting there will be enforcement provisions included in the stimulus plan to make sure Uncle Sam follows the rules. But many economists aren't so passionate. They say taxpayers ought to get the best bang for the buck.
Buying from china is cheaper. That means we'll have more money to spend on other things. True the money goes to China but also comes back.
COSTELLO: Other economists say this "Buy America" policy may tempt other countries to retaliate by refusing to buy American-made goods. Companies like Caterpillar and General Electric say it will hurt their business. But for steelworkers like Jack Sabolich who was laid off in December, those arguments don't fly.
JACK SABOLICH, STEELWORKER: Anybody that turns around and says that we should export more jobs out of this country, maybe they ought to go over to China.
COSTELLO: Economic patriotism, he says, is what the country needs right now.
(END VIDEOTAPE) COSTELLO: Very strong feelings about this one, John. You know it's a tough issue for the president, too. Because he often talks about policy in global terms, but he is also beholdened to those who helped put him in office and those would be union members. And with this wave of economic patriotism sweeping the country, my guess is that buy American provision will remain in the stimulus plan.
ROBERTS: So many people, so many difference opinions and so many people to satisfy of you know, this idea of buy American in the depths of this recession, it's a difficult one to resist.
COSTELLO: Well, it sounds good. But, you know, economists, some economists have a point. If you can get the goods cheaper elsewhere, you know, you get the best bang for your buck. Isn't that good economics?
ROBERTS: Well, I don't know. As we said, so many opinions. Carol Costello this morning. Carol, thanks so much.
COSTELLO: Sure.
CHETRY: And Barack Obama, the president, is pushing forward with his agenda. Critics are now watching his every move as well. How political cartoonists are penciling the new president. 55 minutes after the hour.
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CHETRY: Welcome back to the most news morning.
While the Obama administration is hard at work, political cartoonists are watching and waiting and hoping to capture any mistake that Mr. Obama makes. Our Lola Ogunnaike got a firsthand look.
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LOLA OGUNNAIKE, CNN ENTERTAINMENT CORRESPONDENT: So I have to see you in action. I want to see you create President Obama.
JIMMY MARGULIES, POLITICAL CARTOONIST: OK.
OGUNNAIKE: And the ears?
MARGULIES: The ears.
OGUNNAIKE: Naturally.
MARGULIES: Yes, right.
OGUNNAIKE: You have to go there with the ears.
MARGULIES: Yes. Right. If he, you know, starts acting a little goofy, maybe I'll draw the ears a little bigger to make him more an object of ridicule, but so far he hasn't gotten to that point yet.
OGUNNAIKE: Some people have said that, you know, Bush was a gift from, you know, cartoonists' heaven. And he was easier to skewer, but President Obama may not be as easier to skewer?
MARGULIES: I mean, you're right. Bush had a - was a god's gift. But, in a way, it was like, it was you'd read something that he said and he said, well, why bother with the cartoon? The cartoon is already in the headline.
OGUNNAIKE: Of course, we can't talk about President Obama without talking about race. Are you ever worried about being too controversial regarding him and the issue of race? Because the cartoonist who did the piece for "The New Yorker" got into a bit of a trouble. There was a big brouhaha surrounding that.
MARGULIES: Right. It's something that I'm conscious of but I guess if I, you know, poke fun of him based upon what he does or his personal characteristics that have nothing to do with race, you know, then I can avoid, you know, having that controversy.
The one time it did come up, I was thinking of doing a cartoon about his appointee for the EPA, Lisa Jackson, who is also a black woman, and I had something with her as sort of having to clean up after Bush and they said, you know, you may want to avoid that, because to portray a black woman as a domestic may be seen, you know, in the wrong light even though you don't mean harm by it.
ERROL LOUIS, COLUMNIST: There is a long and terrible history in this country of racially offensive cartoons. You know, I mean, it has happened all the time. So I don't think anybody wants to join or remind anybody of that tradition.
DONALD DEWEY, "THE STORY OF AMERICAN POLITICAL CARTOONS": At this point, it would be inadvertent, I think. There is certainly no cartoonist, unless of course, you know, he is doing the Ku Klux Klan weekly who is going to allow himself to do that.
LOUIS: I hope they are not going to be too careful because there is no point in being a political cartoonist if you're not willing to offend somebody.
MARGULIES: It's utterly pointless and futile activity, sending Valentines to you know, Obama or anybody else. You know? Whom you think is doing a good job. You know? Go get a Hallmark card if that's what you want.
(END VIDEOTAPE)
CHETRY: All right. Putting the smack down there. You know, it's funny. They made fun of George W. Bush's ears all the time, too, right?
OGUNNAIKE: If two presidents have ears.
CHETRY: They made fun of bill Clinton's nose.
OGUNNAIKE: It's interesting, the ears, apparently as the more ridiculous people get, the bigger the ears are. So if Obama does a great job, then the ears will remain small. If he doesn't do a good job, it'll get bigger and bigger as the years go on.
ROBERTS: And on the other issue just treat them like a normal guy, like every other politician.
OGUNNAIKE: It's not the same. He is the president.
ROBERTS: Exactly. Thanks, Lola.
CHETRY: Thanks, Lola.
ROBERTS: And thanks so much for joining us on this AMERICAN MORNING. We'll see you back here again bright and early tomorrow.
CHETRY: Right now here's "CNN NEWSROOM" begins right now with Heidi Collins.
