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President Obama Talks About What Health Reform Would Mean for Small Business; Health Reform Bill Unveiled; Deciding Future of Afghan War

Aired October 29, 2009 - 11:53   ET

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

TONY HARRIS, CNN ANCHOR: All right, let's get you now to the Eisenhower Executive Office Building, where the president is making remarks and outling a plan to help small businesses.

(JOINED IN PROGRESS)

(APPLAUSE)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: The other individual who is on his way and will be here in a hot second but we didn't want to keep everybody waiting is a dear friend of mine, a great former governor of Virginia, is now the senator from the great state of Virginia and a huge supporter of small business, and trying to help figure out how to help all of you, and that's Senator Mark Warner.

So, when he comes in, please...

(APPLAUSE)

OBAMA: ... give him a smile.

I asked you here today to talk about health insurance reform and why it's so critical to the success of small businesses across our country. But before I do, let me talk a minute just briefly about the new economic numbers that were released this morning. I am gratified that our economy grew in the third quarter of this year.

We've come a long way since the first three months of 2009, when our economy shrunk by an alarming 6.4 percent. In fact, the 3.5 percent growth in the third quarter is the largest three-month gain we have seen in two years. This is obviously welcome news and an affirmation that this recession is abating and the steps we have taken have made a difference.

But I also know that we've got a long way to go to fully restore our economy and recover from what's been the longest and deepest downturn since the Great Depression. And while this report today represents real progress, the benchmark I use to measure the strength of our economy is not just whether our gdp is growing, but whether we're creating jobs, whether families are having an easier time paying their bills, whether our businesses are hiring and doing well.

And that's what I'm here to talk with you about today. I know many of you have come from different corners of our country to be here, and looking out at all of you, I'm reminded of the extraordinary diversity of America's small businesses. You're owners of coffeeshops and diners and hotels, you're florists, exterminators, builders. Each of your shops and firms reflects different passions and different ideas and different skills.

But what you share is a willingness to pursue those passions, take a chance on those ideas and make the most of those skills. What you share is an entrepreneurial spirit, a tireless work ethic and a simple hope for something better that lies at the heart of the American ideal. Businesses like yours are the engines of job growth in America.

Over the past decade and a half, America's small businesses have created 65 percent of all new jobs in this country. And more than half of all Americans working in the private sector are either employed by small business or own one.

Now, even in good times, starting business, as all you know, is not easy. It takes moxie, it takes gumption, it takes ingenuity, and failure is often more likely than success. But I don't have to tell you that it's been particularly difficult over the past few years.

From the middle of 2007 through the end of 2008, small businesses lost 2.4 million jobs. Thousands have shut their doors altogether. And because of the credit crunch (AUDIO GAP) or finance your invest -- your inventories or maybe even to make payroll. Maybe you've had to forgo raises. Maybe you've had to do the unthinkable and lay off friends or family.

So, we know how tough times have been for small businesses. That's why I made sure the Recovery Act included a number of measures to help small businesses weather this economic storm.

We've put a tax cut, a tax cut -- not a tax hike -- a tax cut into the pockets of the vast majority of small business owners and employees. We supported nearly 65,000 loans to small businesses, more than $13 billion in new lending. More than 1,200 banks and credit unions that had stopped issuing SBA loans when the financial crisis hit are lending again today. And just last week, we proposed increasing the cap on what are called 7a and 504 loans, some of the loans most frequently handed out by the SBA. But given the enormous problems small businesses and all Americans are facing today, we're aware that these steps are by now means enough.

If we're serious about strengthening small businesses, if we're serious about creating a climate where entrepreneurs can succeed, if we're serious about giving you the chance to prosper and grow, I believe, this administration firmly believes, that we need to pass health insurance reform in the United States of America.

Now, few have a bigger stake in what happens than all of you. Few have a bigger stake than the men and women who own a small business, work at a small business or rely on someone who does. Few have a bigger stake in what happens because few are struggling more under the status quo. You all know the story. We all know that family premiums have skyrocketed more than 130 percent over the past decade. They have more than doubled. But small businesses have been hit harder than most. A story in the paper just the other day said many small businesses may see their premiums rise about 15 percent over the coming year, twice the rate they rose last year.

And in part because small businesses pay higher administrative costs than larger ones, your employees pay up to 18 percent more in premiums for the very same health insurance. In one national survey, nearly three-quarters of small businesses that don't offer benefits cited high premiums as the reason, and that's not surprising.

The bottom line is that too many Americans like you can't afford to build the kinds of businesses you'd been hoping to build. Too many budding entrepreneurs can't afford to take a gamble on a smart idea because they can't give up the health insurance they get in their current job. Too many of you not only can't afford to provide health insurance to your employees, too many of you are having a tough time just affording health insurance for yourselves.

That's bad for our economy, it's bad for our country, and that's what will change when health insurance reform becomes law. Now, just this morning the House of Representatives released its version of health reform legislation, and I want to commend Nancy Pelosi and the Democratic caucus for their leadership in achieving this critical milestone. They forged a strong consensus that represents a historic step forward.

This bill includes reforms that will finally help make quality insurance affordable. Importantly, this bill is also fully paid for and will reduce the deficit in the long term.

Now, there is no doubt that this legislation and the legislation that's being drafted in the Senate would benefit millions of small businesses. It's being written with the interests of Americans like you and your employees in mind. And yet, there are those who have a vested interest in the status quo, who are claiming otherwise, and they're using misleading figures and disingenuous arguments. So I want to try to explain as clearly as I can what exactly health reform would mean for small business owners like you and the workers you employ.

The first thing I want to make clear is that if you are happy with the insurance plan that you have right now, if the cost you're paying and the benefits you're getting are what you want them to be, then you can keep offering that same plan. Nobody will make you change it. What we will do is make the coverage that you're currently providing more affordable by offering a tax credit to small businesses that are trying to do the right thing and provide coverage for their employees.

Under the House and Senate bills, millions of small businesses would be eligible for a tax credit of up to 50 percent of their premiums. That's in the legislation that's already been proposed. We'll also make your coverage more stable and more secure. Right now, if just one of your workers falls seriously ill, it could spell disaster for your entire business. You could see your premiums shoot up and you could face a painful choice: do you eat the costs and ask your workers to contribute more? Do you seek another insurance plan without any guarantee that you'll be able to find one that's affordable? Or do you just scale back benefits or drop coverage altogether?

Now, I don't think that you should have to make that choice in the United States of America. Under health insurance reform, we put an end to the days when an insurance company could use one worker's illness to justify jacking up premiums for everybody. We'll crack down on excessive overhead charges by setting standards on how much of your premium can go towards administrative costs, and requiring insurers to give you a refund if they violate those standards.

It will be against the law for insurance companies to deny you coverage because of a pre-existing condition. And it will be against the law for insurance companies to drop your coverage when you get sick or water it down when you need it the most.

They'll no longer be able to place some arbitrary cap on the amount of coverage you can receive in a given year or a lifetime. If you get your insurance through your employer, we'll change the cutoff on how old your kids can be to remain on your plan. We'll raise that to 26 years old.

We'll place a limit on how much you can be charged for out-of- pocket expenses. And insurance companies will be required to cover, with no extra charge, routine check-ups and preventative care like mammograms and colonoscopies, because there is no reason we shouldn't be catching disease like breast cancer and colon cancer before they get worse and cost more money. That makes sense, it saves money, and it saves lives.

So, that's what we'll do for all the small businesses that have insurance, that are currently providing insurance. And for all the small businesses that can't afford to provide insurance right now, and small business owners who can't even afford to get coverage themselves, we'll finally make quality coverage affordable. And here's how we'll do it.

One of the biggest problems in our health care system right now is if you're a small business owner or you're self-employed, you often have such a small number of workers that insurance companies aren't all that interested in your business. It's basic economics. You don't have a lot of leverage as a small customer. And as a result, you end up paying higher costs than big businesses that can get better deals because they've got more workers, they've got more purchasing power.

So, what we'll do is to set up what we're calling an exchange that will pool small businesses together. And that will mean it's not just you bargaining with insurance companies, it's you and many other small business owners and self-employed individuals all across the country. And with all that additional leverage, you'll be able to get better deals than you could have ever received on your own. In fact, small businesses that choose one of the plans in this exchange could save 25 percent on their premiums by 2016, only two years after the exchange has been set up.

And we'll also offer tax credits to make insurance even more affordable for millions of small businesses. So, meanwhile, by expanding coverage for more Americans, we're going to help eliminate the hidden tax of more than $1,000 that the average worker is paying to cover the medical expenses of the uninsured.

Now, nothing is free, and it's true that when reform becomes law, businesses of a certain size who do not offer their workers health care coverage may be required to contribute to the costs, and that makes a lot of small business owners nervous. Opponents of reform have tried to say that you'd be subject to this penalty and it could potentially drive up your costs, but here are the facts, because this has been analyzed repeatedly.

About 90 percent, 90 percent of all small businesses, regardless of what version of this plan you're talking about that's currently going through Congress, 90 percent of all businesses would be exempt from this requirement. So, if your business is anything like the vast majority of small businesses out there, this requirement simply won't apply to you, because I don't think it's fair to impose a penalty on small businesses that are already operating at very narrow margins.

So that's what health insurance reform would mean for you and for all of our small businesses. It would reduce your costs, it would prevent small business owners from facing exorbitant rate hikes, it will make coverage affordable for all small businesses that can't afford it right now. And if you're providing health insurance to your employees, it gives you more predictability, more security, more stability.

It will help remove the worry that if you have the courage to strike out on your own and open a business, you'll be doomed from the start. It will help give entrepreneurs and all Americans the assurance of knowing they won't go broke when they get sick.

It will help ensure that no small business owner in America has to choose between being a successful employer and an employer who cares deeply about the well-being of his employees or her employees. It will help us be the kind of country we know ourselves to be.

So what's at stake isn't just the success of our businesses or the strength of our economy, or even the health of our people. What's at stake is that most Americans have (ph) ideas that that is the place you can make it if you try, where you can be your own boss, where the only limits of what you can achieve are your smarts, your savvy, your dreams, your willingness to work hard, where you can pass on to your children a better life than you inherited.

That's what's at stake. That's what we're fighting for. And I'm absolutely confident that if we do what has to be done, if we can build an economy that works for all Americans, we can promote innovation and foster growth and build a better health care system that is not a drag on each and every one of you. Then not only will we ease the burden on entrepreneurs, not only will we give our small businesses a huge boost, not only will we produce the kind of growth we so desperately need in this country, but we'll secure the blessings in America for our children and grandchildren.

That's what we're fighting for. I need your help to make it happen.

Thank you very much, everybody.

(APPLAUSE)

HARRIS: There you go. President Obama outlining plans to help companies get more access to capital and control health care costs.

The president also, as you heard, making note of the day's top headline on the economy. The government reports that gross domestic product rose at an annual rate of 3.5 percent in the third quarter, the strongest rate of growth seen in two years.

And the number of Americans filing for initial unemployment benefits changed little last week. Five hundred thirty thousand filed jobless claims, down 1,000 from the previous week.

And now to health care reform.

Just a short time ago, House Democrats unveiled their plan to overhaul the nation's medical system. It includes a more moderate version of a public insurance option.

Speaker Nancy Pelosi says it will cover millions more Americans.

(BEGIN VIDEO CLIP)

REP. NANCY PELOSI (D-CA), HOUSE SPEAKER: It reduces the deficit, meets President Obama's call to keep the cost under $900 billion over 10 years, and it insures 36 million more Americans. Thirty-six million more.

(END VIDEO CLIP)

HARRIS: Congressional Correspondent Brianna Keilar live from Capitol Hill.

And Brianna, obviously, it's taken a long time to get here, but does the Speaker believe she has a bill that she can get passed?

BRIANNA KEILAR, CNN CONGRESSIONAL CORRESPONDENT: Yes. We've actually spoken with some Democratic leaders in the House, Tony, and they seem to think that they do.

Now, they're still going to continue some of that cajoling and arm-twisting that they've already been doing to make sure they have those votes, but obviously they feel like they're going to have them. We could be seeing a vote as soon as the end of next week. So, there are still several days where we can do that arm-twisting.

But this does include a public option, that government-run insurance plan. But it is, as you mentioned, a less liberal form of this.

This definitely could have been more liberal, but House Speaker Nancy Pelosi just found that as she polled all of her Democrats, she couldn't get the votes. There are moderate Democrats who insisted on not having that most liberal form of a public option, so it got moved.

Let's take a look at some of the numbers here.

This does fall, the price tag on this bill, under that $900 billion cutoff mark that President Obama said it would have to fit under the price tag here, $894 billion. And also, it cuts the deficit.

You know, this is such a big sum of money that we're talking about, albeit over 10 years. One of the big concerns has been, how do you basically afford it without just adding money to the deficit and really putting the country more in debt?

Well, this is a deficit-neutral bill. It would actually cut from the deficit $30 billion over 10 years. We're still waiting to see exactly what happens after that 10 years.

And then one of the other big issues about health care, Tony, is just when you look at how the costs of health care just skyrocket so much more than inflation, and ultimately that comes out of our paychecks, one of the big things, one of the big efforts in reform has been to try to cut that skyrocketing growth rate of health care. And Democrats say that the numbers will show that Medicare costs are going to be reduced over the long term here because of this.

But as I said, this is moving along quickly in the House. It seems a vote as early as the end of next week.

HARRIS: Hey, Brianna, we were waiting to try to get to House Minority Leader Boehner's comments. I'm just wondering, has there been any -- well, OK. There we go, live pictures now -- at least I hope so.

Any -- what's been the Republican reaction so far?

KEILAR: They have been really lambasting this, Tony. They are not on board with this bill. They do not like this bill. And they're really hitting Democrats very hard right now for what they say is no transparency operating behind closed doors.

Just take a listen to what the conference chairman, Mike Pence, said a short time ago.

(BEGIN VIDEO CLIP)

REP. MIKE PENCE (R), INDIANA: This is just another version now lurching out of the back rooms after weeks of closed-door negotiations. It just looks like another freight train of big government with more taxes, more mandates and more spending, and that's not what the American people want in health care reform.

(END VIDEO CLIP)

KEILAR: Now, Democrats are definitely feeling this criticism and really trying to push back on it. They say this is not the case at all.

They say that those three committees that put out their bills that essentially were merged into this one bill, they say those bills were online for months for people to read, and they also say that this bill, which is now online right now, Tony -- this is something that just happened -- that it's online for people to take a look at. And it's going to be online as it goes through the whole process before the vote, if any changs changes are to be made.

HARRIS: OK.

Our congressional correspondent, Brianna Keilar, for us.

Brianna, thank you.

This programming. On CNN at 7:00 p.m. Eastern, a "LOU DOBBS TONIGHT" special report. Lou sits down with a panel of doctors to discuss the state of health care and insurance coverage in the country. A special "LOU DOBBS TONIGHT" at 7:00 p.m. Eastern.

A search is going on right now for a man who shot two people at a synagogue in North Hollywood, California. The shooting happened around 6:30 this morning Los Angeles time. The male victims, each shot in the legs, are hospitalized in stable condition. Details still coming in, but police spoke with the media in the last hour.

(BEGIN VIDEO CLIP)

DEPUTY CHIEF MICHEL MOORE, LOS ANGELES POLICE: The LAPD's response has been immediate. We have worked through our (INAUDIBLE) to activate resources, law enforcement resources, and our contact with the Jewish community throughout this region.

We have extra patrols already in place at all of our Jewish schools, as well as the synagogues. We are also working with the FBI, and they are on scene on a more national basis to lean forward, if you will, that should this be a crime that's motivated again by these two men coming here to participate, apparently, in a worship ceremony, that we are being vigilant for any follow-ups that may occur.

(END VIDEO CLIP)

HARRIS: OK. Police plan another news conference later today, and we will be bringing you the latest on that as well.

Another U.S. service member has been killed in Afghanistan in what's already been the deadliest month for American troops since the start of the war. The rising casualties come as the president weighs the future of that war.

Live now to CNN White House correspondent Dan Lothian.

And Dan, the president has yet another important meeting planned for tomorrow regarding Afghanistan. Doesn't he?

DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: He does, indeed. He'll be meeting with his Joint Chiefs here at the White House tomorrow, Tony, and this follows on the heels of all these other meetings, about a half dozen or so meetings that the president has held in the Situation Room here at the White House with his war council.

The focus again will be assessing the situation in Afghanistan and Pakistan. And it really boils down to whether or not the president will go along with this reported suggestion from General McChrystal to send in 40,000 additional troops to Afghanistan, or will there be a smaller force? So, the president still, by all accounts, not yet making up his mind as to what he will do going forward, still wanting to talk things over with his top officials -- Tony.

HARRIS: And Dan, one more quick one here.

Last night, the president went to Dover Air Force Base to honor those who have died in Afghanistan. Why did he choose now, this moment, to make this visit?

LOTHIAN: Right. Well, I can tell you this -- White House spokesman Robert Gibbs was knocking down any suggestion that the president went there as part of his -- you know, the internal debate, deciding what to do next in Afghanistan. That this was something, Robert Gibbs pointed out, that the president had wanted to do for some time, and they started planning it on Tuesday and then decided to do it yesterday at noon. And the president really wanted to go there and just meet these family members face to face.

Robert Gibbs pointed out yesterday during the briefing that one of the hardest things that this president has to do is to sign those condolence letters to the relatives -- you know, a son, a daughter, a father, a mother who died in Afghanistan or Iraq. And so he's been signing these letters, he's been meeting some of these family members on the road. But he really wanted to go there as these 18 bodies were returned to the United States to not only be there when the bodies were brought back, but also to meet with the family members -- Tony.

HARRIS: All right.

Our White House correspondent Dan Lothian.

Dan, thank you.

As President Obama considers his options for Afghanistan, what lessons can he learn from other wartime presidents?

(COMMERCIAL BREAK) HARRIS: Well, we told you about President Obama's solemn visit to Dover Air Force Base overnight. He was there as the bodies of Americans arrived from Afghanistan. The president is facing the difficult decision of whether to send more Americans into harm's way.

Larry Sabato is a presidential historian and a professor at the University of Virginia. And he is with us from Charlottesville to talk about President Obama as a wartime president.

Larry, thanks for your time.

LARRY SABATO, PRESIDENTIAL HISTORIAN: Sure, Tony.

HARRIS: Well, President Obama at Dover Air Force Base for the dignified transfer to receive the bodies of the soldiers, the dead DEA agents, it was stunning, Larry, and just a bit confusing. Why do you think he did this? Is there any historical precedent for this?

SABATO: I couldn't find one. Nothing like this, at least what occurred at Dover Air Force Base, and overnight. The president essentially pulled an all-nighter doing this, and I think it was brought off in a very dignified way, a very appropriate way.

The public expects presidents to do things like this, and generally presidents have been very good about meeting with the families of the fallen or of wounded veterans. They're good about the condolence letters and calls, because, after all, in a very real way, their decisions resulted in the deaths of the soldiers. They understand that. It's the weightiest part of the presidency, being commander-in-chief.

HARRIS: Speaking of that, does President Obama's Afghanistan deliberative process remind you of the decision-making path taken by past presidents?

SABATO: Well, it reminds me of what I think President Obama wants to send as a signal, which is that this decision-making process is the opposite of that that occurred during another Democratic administration, that of Lyndon Johnson and Vietnam. He wants to make Afghanistan the un-Vietnam.

You know, some even on the left are already calling Afghanistan Obama's Vietnam. He wants to show that this isn't true by the way that he is considering increasing the number of troops, which he will probably do in the next few weeks.

HARRIS: And Larry, we're dealing with this story every day, and I've got to tell you, it seems to me that it's been really tough for this president and others to really define in a meaningful way the enemy in Afghanistan. Look, the fight of the Taliban feels like we're fighting a civil war -- Mullah Omar and his cronies get kicked out of power and they went back in. Al Qaeda, for many, is attacking not just the United States, but much of the Muslim world with its ideology.

So, I guess the question is, how important has it been for past presidents to clearly define the enemy in getting and maintaining public support?

SABATO: Tony, it's absolutely critical. And, of course, some presidents have been lucky enough to have the enemy defined for them, as Franklin Roosevelt did because of Pearl Harbor. Other presidents have had a more difficult time doing that, as in the case of Vietnam.

But I think in President Obama's case, he has a precious opportunity when he does announce the troop decision to define for Americans exactly what it is we're trying to do in Afghanistan and what it is we aren't trying to do in Afghanistan. If he can define that carefully and clearly, he'll have a much better chance of surccess, a much better chance of making Afghanistan not another Vietnam.

HARRIS: Success. You mentioned Lyndon Johnson. The president has to really believe in the success of this mission, doesn't he, Larry, to send more troops? He can't be Lyndon Johnson, who sent troops and didn't believe he could even be victorious in Vietnam.

SABATO: Yes. Part of the Johnson's administration fallacy in Vietnam was in thinking that a gradual escalation would work. And they knew at some level it wouldn't work. And yet, they continued it almost because of inertia.

I think what President Obama has done is, first of all, intellectualize the process, which he's inclined to do as an individual anyway. But second, he is trying to take this very carefully through stages so that when he makes that final decision, people will know that he's considered all the alternatives, including the human dimension, which is one of the reasons why he went to Dover. This sends an important signal to the families of soldiers that President Obama understands that their lives are in his hands.

HARRIS: Presidential historian Larry Sabato.

Larry, appreciate your time. Thank you.

SABATO: Thank you, Tony.

(COMMERCIAL BREAK)

HARRIS: And checking our top stories now.

Iraq's parliament today delayed a critical vote on election law because of a boycott by Kurdish lawmakers. The Kurds are angry over the future of oil-rich Kirkuk. The stalemate could actually cause a delay in elections planned for January.

Secretary of State Hillary Clinton with some criticism of the Pakistani government. She spoke with a Pakistani journalist today. The AP reports she told them she found it hard to believe that no one in the government knows where the leaders of Osama bin Laden's terrorist network are hiding.

Police in North Hollywood are searching this hour for a man who shot two people at a synagogue in North Hollywood. Police say they do not know if the man intended to rob the two people he shot. Both victims are wounded in the legs and are in stable condition.

CNN's Kara Finnstrom is with us now, and she has the latest from North Hollywood.

And Kara, police, I understand, have a 17-year-old in custody, but the search actually continues for anyone who might have been involved in the shooting.

KARA FINNSTROM, CNN CORRESPONDENT: That's right, Tony. This remains a very active crime scene.

You can hear the helicopters overhead. Police still have a perimeter set up here, and they are continuing their search for potential suspects. But here's what we know.

Right about 6:30 this morning, witnesses tell police that two men had entered the parking lot of a nearby synagogue here just down the street. They were going to worship this morning, when they were both shot in the lower part of their body by a man wearing a hoodie.

Now, witnesses have given a very loose description of their suspect. He fled on foot. Police, as you mentioned, have detained one person. They have been questioning him in this van behind us, but they have been very careful to call him a person of interest and not an official suspect at this point.

Tony, they also are not calling this a hate crime officially. They say it could be a burglary, but they want to use every precaution. And they've asked other Jewish schools and synagogues here in the area to take extra precautions this morning.

And joining us live now is Rabbi Abraham Cooper with the Simon- Wiesenthal Center. He came out here right away and has been working with the LAPD.

Tell us a little bit about what you have learned this morning and what your concerns are.

RABBI ABRAHAM COOPER, ASSOCIATE DEAN, SIMON WIESENTHAL CENTER: Well, the concerns are, you know, it's 6:30 in the morning. You have a shooting. If it's a robbery, there's no words exchanged, nothing is stolen, and you might wonder, you know, what are people doing at a synagogue at 6:30 a.m.? Around the world at that time of the morning on their way to work, a lot of people stop by and do a prayer quorum. And on the weekday, it's the same time every day.

So because -- the possibility of someone, as we say in the old country, casing the joint, knowing this is when there will be coming -- people coming to prayer and the fact that no words were exchanged and obviously a shooting took place, means that we have to operate under the strong possibility we're talking about a hate crime. We pray that it's just maybe someone looking for drug money and all the rest.

But on an objective level, it means the LAPD's crack people come into play immediately. And in terms of the Jewish community, it means the synagogues, schools, the Simon-Wiesenthal Center, our museum, obviously have to redouble our own security efforts.

FINNSTROM: And you already reminded me this morning that this comes very close to the 10 year anniversary of another attack. We don't know if this was one yet, but an attack on the Jewish community.

COOPER: Well, this is an attack on two members of the Jewish community in the perimeter of a synagogue. So it is an attack. But 10 years ago was the Buford Furrow attack, in which he shot up a Jewish day camp and murdered a Filipino-American postal worker. But we were his original target.

So, unfortunately, in America, hate crimes are part of the scene. Violence is a part of the scene. And we have to make sure that while we have a constitutional right to exercise freedom of religion in the greatest country in the world, the realities are, we have to expend the resources and be concerned that people just doing their daily, wonderful freedoms here have to be concerned about the violence.

We have the strongest confidence in the LAPD, but we live in a time where hate-motivated violence is a part of our reality. And we'll go from there.

FINNSTROM: Thank you. We thank you for joining us, Rabbi.

So, again, Tony, police continuing to search the perimeter here. Not officially calling this a hate crime at this point, but handling it as such and taking every precaution.

HARRIS: Yes, and Kara, it is my understanding, is it your understanding, that the synagogue where the shooting took place is equipped with surveillance cameras that might offer some clues as to exactly what happened and who is responsible?

FINNSTROM: You know, that's not clear at this point, Tony. I haven't been able to confirm that.

HARRIS: OK. We will continue to check that particular angle of the story. Kara Finnstrom for us.

Kara, good to see you. Thank you.

Is the economy turning a corner? We will look at some encouraging numbers just out.

(COMMERCIAL BREAK)

HARRIS: So, the economy is finally getting back on track. A new report today show economic activity actually grew last quarter at a faster pace than expected. Susan Lisovicz on the floor of the New York Stock Exchange with details.

And, you know, Susan, GDP number. OK, that is good news. It's just a little difficult to enjoy it when so many people are still, you know, out of work and looking for jobs.

SUSAN LISOVICZ, CNN BUSINESS CORRESPONDENT: No question about it. And that is a big problem going forward, no doubt about it. But the good news, the headline number is that the U.S. economy, the biggest in the world, grew 3.5 percent between July and September. It's the most dramatic evidence yet that the U.S. economy may finally be pulling out of recession. Don't hold your breath waiting for the official declaration because that is probably months, if not a year, off in the distance.

But look how far we've come, Tony. Solid growth after four quarters of contraction. The worst part of this, so far, the first quarter of the year, January to March, GDP fell 6.5 percent. In January we had losses, job losses totaling 700,000 in one month. That is why this recession has been the longest and deepest since the Great Depression. But what we saw, consumer spending big time because of massive amounts of government stimulus, think Cash for Clunkers, think that first-time homebuyer tax credit. That really helped prop it up.

And, you know, we were talking about in the last hour when you talked about the punch bowl being removed, let's talk about the training wheels being removed. Eventually, you know, the bike has to ride by itself because we have a massive deficit as well as a result of this.

HARRIS: Yes, that's a good point. You know, but the other thing is that this report looks backwards, obviously. What can we expect in this current quarter?

LISOVICZ: Right. Well, you can expect slower growth but still growth. Some of the estimates really are close to 2.5 percent and slow, tepid growth going forward into 2010. And why is that? Because something you were touching upon earlier, which is job losses. We get the jobs report next week. We're looking at perhaps an unemployment rate of 10 percent. We're also talking about stimulus running out. So eventually, you know, we're going to have to see real growth, not fiscal steroids, at work.

Whatever the case is, we're seeing some growth here on Wall Street. The Dow right now is up by triple digits after three triple- digit losses in four sessions. The Nasdaq doing nicely as well. But I should also mention that we're having a big run in commodities, too. Oil is up by $3 above $80 a barrel. That's what happens . . .

HARRIS: Above 80?

LISOVICZ: Yes. When the economy improves, the demand, all of that, that's how it works. Then, yes.

HARRIS: Yes.

LISOVICZ: So, higher gas prices is what it means for all of us.

HARRIS: Susan, thank you. Good to see you.

LISOVICZ: You're welcome.

HARRIS: Thank you, lady.

LISOVICZ: Likewise.

HARRIS: Public option or no public option? That's the question I put to this smart group of college students. And, boy, did they go at it.

(COMMERCIAL BREAK)

HARRIS: A somber moment for President Obama at Dover Air Force Base in Delaware overnight as we get to our top stories now. He saluted as the flagged-draped remains of 18 Americans killed in Afghanistan arrived back in the states. He also met privately with grieving families.

Iran now ready to negotiate nuclear cooperation with the west? President Mahmoud Ahmadinejad said the tone of negotiations with the western powers has improved. His government today responding to a U.N. proposal aimed at breaking the country's nuclear deadlock. No details yet on that response.

The House health care reform bill unveiled. House Democrats outlined their plan earlier today. It includes a more moderate version of the public option. House Speaker Nancy Pelosi says it will mean coverage for 36 million more Americans.

Anticipating this moment, I took the debate over the public option to a group of college young people at Georgia State University. They really had some smart answers. Both Democrats and Republicans really took on one another. Check it out. Class is in session.

(BEGIN VIDEOTAPE)

HARRIS: Public option, no public option? Where does this group stand on that?

GREGORY OGUNNOWO, BIOLOGY MAJOR, PLANS TO BECOME A DOCTOR: I feel as through we do need a public option.

UNIDENTIFIED MALE: I should be allowed to buy into Medicare . . .

UNIDENTIFIED MALE: Exactly.

UNIDENTIFIED MALE: Or Medicaid.

HARRIS: An expanded Medicare program.

UNIDENTIFIED MALE: Sure. Let me buy into it.

HARRIS: Buy one of those plans.

UNIDENTIFIED MALE: Sure.

ZACHARY MCFALL, FORMER PRESIDENT, YOUNG DEMOCRATS OF GEORGIA AT GSU: Why is that plan -- why is that plan discriminatory toward other Americans? That plan is for 65 and over. And there's a government plan for those who don't have enough money to pay . . .

HARRIS: Medicaid.

MCFALL: Medicaid. So then why is it the middle that is being discriminated against?

OGUNNOWO: Not all of the Americans are -- have the opportunity to afford private insurances, to afford the high deductibles and the high co-pays. Bringing in a public optional allows everybody to seek the medical attention that they need.

UNIDENTIFIED MALE: So you're going to eventually end up destroy a lot of the competition because they're not going to be able to compete with the government.

OGUNNOWO: (INAUDIBLE) destroying competition? Is it allowing people to -- oh, I'm sorry.

HARRIS: No, no, go, go, go.

OGUNNOWO: And that is (ph) destroying competition, it's allowing others to choose a better policy for them.

DANIEL LE, STUDYING PUBLIC POLICY, FOCUSING ON URBAN PLANNING: I don't think competition will be cut down significantly. It's going to factor around about 40 million people, which is just a fraction of our total population. So there's still going to be a private option.

HARRIS: What are you guys going to do for health care? I mean, come on, you're out of school here and, you know, you won't be able to -- you'll come off of your parents' insurance. What are you going to do?

JOHN MURRAY, CHAIR., COLLEGE REPUBLICANS AT GSU: Well, I plan on being a teacher, so it's a government job anyways. So I'm looking at having benefits.

OGUNNOWO: But what about -- what about those who graduate with an art degree or graduate without having a particular job that can offer them an adequate health insurance? Freelancers, for example. What are they supposed to do?

UNIDENTIFIED MALE: They can't have a government plan like you are going to have.

OGUNNOWO: Exactly.

MURRAY: Well, that's what I was arguing that I can agree that we -- there should be a way to make it easier to buy health care. Maybe not a public option or COBRA or anything, but strictly make it so that there is a system or an exchange or a place where you can buy the health -- the private health care from. And that would help lower costs.

CLAUDIA RIVERA, SERVES ON LATINO STUDENT COUNCIL: I wouldn't mind a public option or the exchange. It's just something where I don't have to pay a third of my paycheck and choose between having the health insurance when I know I need my medication every month and paying for food or for my house.

LACEY ENYART, FORMER SPECIAL FORCES MEMBER: My problem that I just get so nervous about with this public option, this health care for everybody, is, who's going to be the one that says, you know, you don't really need to go for that, or you don't need to clog up the system, or you don't need to spend that money on that. I think if you just make it so everybody can go all the time, then some people will go all the time. And when people need it, it's not going to be available or the care is not going to be as good because doctors are just going to have too much to do.

HARRIS: You just believe that universal care is going to lead to poor quality. You believe that?

ENYART: Yes.

(END VIDEOTAPE)

HARRIS: This is a really, really good group. You will hear more from them on other topics, like whether racism plays a role on criticism of the Obama administration. Man, did that get heated. That's our next "Class In Session" coming up in a week or two, next week.

One of the questions hanging over the future of health care reform, will Republicans in the Senate filibuster? It is a tactic that has been used in some very high-profile debates. Josh Levs is here with some of the most famous filibusters of the past.

Josh.

JOSH LEVS, CNN CORRESPONDENT: Yes, Tony, I'm going to tell you a little bit about this. It's interesting, just what I've been learning, too.

You know, in the early days of Congress, there was actually unlimited debate. They could talk for as long as they wanted. But then as the House grew, new rules limited debate in that chamber. And then in the Senate, there was this big change in 1917 when it adopted what's known as "cloture." We talk about that. Two-thirds of the Senate could vote to end that debate, and that was later changed to three-fifth. So 60 senators can make that decision.

We have video here. Check this out. This is the first time the Senate ever invoked cloture. And this is from 1919, Tony. The Senate cut off debate on the Treaty of Versailles, which it ended World War I.

Now here is one of the most famous filibusters ever. Huey Long. He used it to fight bills that he thought favored the rich. He recited Shakespeare, Tony, and he used to give recipes for pot liquor.

And the filibusters was used successful in this case. This was 1968 against the judicial nominee. Republicans used it to block Ab Fortess (ph) to be chief justice of the Supreme Court. And the longest individual filibuster ever, Strom Thurmond, 1957, he talked -- he, just him, he talked for 24 hours and 18 minutes against the Civil Rights Act of 1957.

And, Tony, the longest filibuster ever, when you put everybody together, was against the Civil Rights Act of 1964. Guess how long that was? Guess how long it lasted?

HARRIS: I, you know, I have no idea and I wanted to Google it. You told me not to.

LEVS: I told you not to. Fifty-seven days.

HARRIS: Fifty-seven days.

LEVS: It was filibustered for 57 days. We have video of it here of it ultimately being signed. Take a look at this. But before it could be signed by President Johnson, it was filibustered for 57 days, Tony. That's how long they took to get to that.

And I think you're also about to see a shot of some -- yes, they you go. There you go. Of the sitting on cots. Those are the cots that some senators were sleeping in when they were filibustering.

And, finally, I can't talk to you about filibusters without tossing in the greatest fictional filibuster of all time. Take a look.

HARRIS: Let's see it.

(BEGIN VIDEO CLIP)

JAMES STEWART, ACTOR, "MR. SMITH GOES TO WASHINGTON": And I was ready to say so. I was ready to tell you that a certain man in my state, a Mr. James Taylor, wanted to put through this dam (ph) for his own profit. A man who controls a political . . .

(END VIDEO CLIP)

LEVS: "Mr. Smith Goes to Washington." The little guy against the giant government. That moment that captivated so many millions of Americans, Tony. What it said to people. And, you know, not too many stars like him anymore.

HARRIS: No.

LEVS: (INAUDIBLE). Let me just tell everybody. There's some more info about it. I'll show the graphic. This is where I posted it. I'm posting at the blog, also FaceBook and Twitter, JoshLevsCNN, cnn.com/Josh. Learn all you want about the history of filibusters and along the way some fun, old video.

Tony.

HARRIS: Good stuff, Josh. Thank you.

LEVS: Thanks.

HARRIS: Winter comes way early out west. Travel advisories, schools closed, flights delayed. What, it's not even Halloween yet!

(COMMERCIAL BREAK)

HARRIS: Let's quickly get you to Chad Myers now in the severe weather center.

And, Chad, if you would, walk us through, talk us through this snowstorm in the west.

(WEATHER REPORT)

HARRIS: Our Pentagon correspondent took a road trip to get a feel for what some of American's veterans are saying about the war in Afghanistan? We'll be back in a moment.

(COMMERCIAL BREAK)

HARRIS: Public support for the war in Afghanistan is slipping as U.S. casualties rise. Our Pentagon correspondent Barbara Starr introduces us to war vets who share a concern for the young troops now on the front line.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN CORRESPONDENT: We're headed down I-95. We're going due south about 30 miles south of Washington to Quantico, Virginia. It's the home of a Marine Corp training base. And we're going to go to a restaurant called the Globe & Laurel. We're going to sit down, talk to some folks there, see what's on their mind about the war in Afghanistan.

MAJ RICK SPOONER, U.S. MARINE CORPS (RET.): Remember, in the Marine Corp, we have a solid anchor behind our globe (ph).

STARR: Eighty-four-year-old retired Marine Corps Major Rick Spooner has owned the Globe & Laurel for over 40 years near the Quantico Marine base. A World War II veteran, the major's restaurant is a place where Marines from all wars come for a bite to eat and a lot of conversation.

SPOONER: What do you think about what's going on in Afghanistan?

UNIDENTIFIED MALE: Well, we got to make a decision one way or the other. We just can't sit on the fence.

STARR: Public support for the war is dropping.

SPOONER: I think the -- I can't speak for them. I can only speak for myself. I think they're probably amazed at the lack of public support because they didn't go there on their own, they didn't buy a bus ticket to Afghanistan. Their country, the United States of America, sent them there under orders. STARR (voice-over): Lieutenant Colonel Chris Wagner, an Iraq veteran, speaks with the careful consideration of a man not long out of the combat zone.

LT. COL. CHRIS WAGNER, U.S. MARINE CORPS (RET.): I look at it as deliberation. You got to decide what your strategic goal is. What is it you want to achieve in Afghanistan? Do you want to build a nation? Do you want to stop al Qaeda?

STARR: Here, once a Marine, always a Marine. Especially for these Vietnam veterans who remember how much Americans did not support their war.

STARR (on camera): How important do you think it is for President Obama to make a decision about Afghanistan?

PETE ROSS, U.S. MARINE CORPS (RET.): It is absolutely imperative that he makes one.

BARRY COLASSARD, U.S. MARINE CORPS (RET.): This is not one of these decisions we can afford to keep wasting time on.

STARR: What are you hearing right now about Afghanistan and this issue, of course, that people are waiting for the president to make a decision?

ROSS: For me, it's a shade of Vietnam all over again. We -- you send us in to do a mission, we accomplish that mission. Why would you absolutely send a commander in, hand-picked commander, and not take his advice?

COLASSARD: You only go to war to win. You know, if the goal is not to win, then you shouldn't have committed it the first place.

STARR (voice-over): As we head back to Washington, the major and his customers hope their ranks will grow with fellow Marines back from a war soon won.

(END VIDEOTAPE)

HARRIS: And we are pushing forward now with the next hour of CNN NEWSROOM with Don Lemon.