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American Morning
Obama Addresses Indian Parliament; NYC Marathon is Finished; Qantas Staying Grounded; Jobs in Health Care Steadily on the Rise
Aired November 08, 2010 - 07:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JOHN ROBERTS, CNN ANCHOR: Good morning. Thanks so much for being with us on this AMERICAN MORNING. It's Monday. It's the 8th of November. I'm John Roberts.
KIRAN CHETRY, CNN ANCHOR: I'm Kiran Chetry. Glad you're with us. Here are the top stories this morning.
President Obama half way around the world this morning gearing up to address India's parliament. That speech expected to begin in just minutes. Earlier this morning, the president said the relationship between the two countries is stronger, deeper, and broader than ever before. These are live pictures, by the way, of the president's motorcade arriving as he gets set to address the parliament.
ROBERTS: A remarkable rescue at sea. A family of four missing for six days on the open ocean finally rescued. We'll talk with a coast guard petty officer who was part of the rescue team just ahead.
CHETRY: Also, less than a week after Qantas Airline super jumbo jet lost part of an engine after takeoff, new concern this morning about the A380s. We're going to tell you why the world's largest aircraft passenger plane remains grounded this morning.
ROBERTS: But first, President Obama making his second stop on a four-nation ten-day trip to Asia. You're looking at live pictures this morning of the president arriving at the Indian parliament in New Delhi where in just minutes we're expecting him to deliver what's being built as a major speech on the relationship between American and India. Our senior white house correspondent, Ed Henry, is travelling with the president. He joins us now live on the phone from Delhi. What are we expecting to hear in this speech, Ed?
ED HENRY, CNN SENIOR WHITE HOUSE CORRESPONDENT (via telephone): John, we've got some breaking news this hour, which we were told by U.S. officials. The president is going to announce in the speech to parliament that he is now endorsing India's bid for permanent seat on the U.N. Security Council. So, it's a big deal because it really shows this emerging partnership between the U.S. and India, the fact that the U.S. is now going to go out on a limb and say they backed something is India has been pushing for a long time now.
It's important to note, though, that the U.S. is just not really getting into details about how quickly they want this to happen, what sort of timetable they're going to lay out or what are the details. The key one being whether or not India would also have veto power on the security council, and even bigger step that the U.S. just will not broach right now.
But I think the broader view right here that what this shows is a whole range of issues that the president has been discussing with the Prime Minister Singh over the last 48 hours or so, is you're seeing a deepening partnership on economic issues, trade, as well as counterterrorism issues, so important obviously since it is now the two-year anniversary of those awful terror attacks, series of attacks in Mumbai, John.
ROBERTS: What about on the economic front? Over the weekend, the president was talking of new economic agreements to the tune of about $10 billion would result in the creation of some 50,000 jobs in the United States. Will we -- are we expecting to hear more on the economic front as we watch the president walking in with the prime minister?
HENRY: Yes, administration officials say you will hear the president talk a lot more about the economy. I don't expect he'll get into more details about specific contracts. They wanted to do that at the beginning of the trip where, as you know, the president announced there'll be big contracts to build jets for Boeing, selling jets here in India as well as the military, GE also in building engines and other key parts.
So the bottom line, the president's trying to frame this whole trip, not just India, but Asia, this ten-day trip as a way to bring U.S. jobs home. And part of that is political, obviously. The president came out of a bruising midterm election, took a lot of heat, and in those elections and lost control of the U.S. House.
He's got critics back home, especially Republicans, but some of his fellow Democrats wondering if he's focused enough time on issues like the economy, whether health care took him off path a little bit. And so, I think they're very sensitive inside the White House about the notion the president's out globetrotting so quickly after the midterms.
And he's really trying to frame this as bringing U.S. jobs home. And expanding exports here, by the way, have quadrupled in India. Just more confirmation of the growing exports here in India, and so I think the president's trying to frame this trip as an effort to boost jobs back home, John.
ROBERTS: Well, as we watch the president and the prime minister walking into the conference there in New Delhi, we'll leave this behind us for a moment. We'll keep monitoring it, though, because the president is expected to begin his speech in just a few short minutes. Ed Henry in New Delhi, thanks, Ed.
CHETRY: And an amazing survival story this morning to tell you about. A family of four missing at sea for six days rescued over the weekend some 2,300 miles from Hawaii.
The family, two adults and two children, were discovered by the coast guard and New Zealand's air force. They were simply drifting in the open ocean in a 13-foot sailboat. They were dehydrated, suffering from malnourishment, but otherwise OK.
Joining us now on the phone from the coast guard cutter Rush is the commanding officer Captain James McCauley who was part of that rescue team. Captain, thanks for joining us this morning.
CAPT. JAMES MCCAULEY, COMMANDER, USCG CUTTER RUSH (via telephone): You're welcome. Good morning.
CHETRY: Tell us a little bit about how this rescue happened. In I understand they were missing and drifting some 200 miles off the coast of Hawaii. How were they eventually found?
MCCAULEY: Yes, they drifted over 200 miles from their home. We searched over 600 square miles. When the New Zealand aircraft, they located the vessel after about half hour of searching, and we were able to arrive a few hours later.
CHETRY: It's amazing they recall found. The boat didn't have any covering or protection on it. What was the condition? What condition were they in when you finally rescued them?
MCCAULEY: Well, they were -- they were amazingly enough they were in pretty good condition for having been out in a small, open boat as long as they were. They were glad to get aboard the ship. They had a few good meals before we got them back home.
CHETRY: What did they tell you about their ordeal? How did they come to be adrift like they were?
MCCAULEY: Well, they were planning on a short boat ride to the neighboring island. About 6 1/2 mile boat ride, and their boat had a 15-horsepower motor that failed.
They started drifting out to sea without a radio, without any water, and with just a few people. So it was great to be able to find them after five days drifting at sea. This is a testament to the great coordination by the coast guard in Honolulu and New Zealand air force.
CHETRY: It is amazing that you found them. I mean, was this by sight? I mean you said they did not have radio contact.
MCCAULEY: They did not have radio contact. The New Zealand air force plane sighted them. And they radioed the position of the boat and we preceded. And we put the small boat out in front of us, and they arrived on scene about an hour before the ship did. They provided any emergency medical attention that was needed.
CHETRY: That's amazing. Boy, they're certainly lucky that you guys found them. Great rescue work. It could have ended far more differently. Captain James McCauley, the commanding officer of the U.S. coast guard cutter Rush. Thank you so much for joining us this morning.
ROBERTS: Well, also new this morning, Qantas Airlines fleet of A-280 jumbo jets will remain grounded for at least the next three days. There airline's CEO says there are new problems discovered with the plane's engines. They were found during an investigation into an engine blowout that forced one of its jets to make an emergency landing in Singapore last week.
(BEGIN VIDEO CLIP)
ALAN JOYCE, CEO QANTAS: Oil leaks have been discovered in the turbine area of three engines. We have removed these engines from the aircraft for further testing. We are now planning that the A-380 fleet will remain out of service for at least the next 72 hours.
(END VIDEO CLIP)
ROBERTS: Meanwhile, Emirates Airlines is announcing their jumbo A-380s will make their anticipated return to New York today after they announced daily flights to Houston and Los Angeles, as well.
CHETRY: Jurors in Connecticut begin their fourth day of deliberations this morning over sentencing of convicted killer Steven Hayes. Hayes faces the death penalty or life in prison for the murder of three members of the Connecticut family during a brutal home invasion.
ROBERTS: Well, it sounded concerning at the beginning, but officials say there's no danger this morning after two nuclear power plants had to be shut down last night within minutes of each other. A radioactive water leak was discovered in Vermont Yankee plant in Vernon, Vermont. Less than an hour later, a transformer exploded at the Indian Point nuclear power plant at New York State, causing that plant to be shut down. Both facilities are owned by the same company, Energy Corp.
CHETRY: In western Missouri, two freight trains collided, one of them apparently backed into the other accidentally. It happened 40 miles northwest of Kansas City. All the cars were empty and no serious injuries were reported.
ROBERTS: If you're flying home for the holidays, plan to pony up. "USA Today" reports there are fewer seats going around thanks to cost-cutting by the airlines. With demand up and supply down, it's bad news for travelers. A Delta non-stop from Boston to Minneapolis over Thanksgiving will cost $859. That's a 60 percent increase from last year.
CHETRY: Well, Conan O'Brien's return to late-night television is just hours away. His new show debuts tonight on our sister network TBS. Last night Conan tweeted "Just tried on my suit for tomorrow's premiere. I have 12 hours to lose 35 pounds." I'm sure he's kidding.
Again, Conan's comeback tonight on TBS is at 11:00 p.m. eastern.
ROBERTS: Continuing to watch for President Obama's speech to begin in the Indian parliament.
(WEATHER BREAK) CHETRY: A lot of sore legs in New York after the 45th New York City marathon -- 45,000 runners participated, and Edna from Kenya finished first in the women's. She completed it in just two hours and 28 minutes. Close behind in second place, Oregon's Shalane Flanagan, the first American woman to finish that high since 1990.
ROBERTS: Meanwhile, Ethiopia's Gebre Gebremariam won the men's race in two hours and eight minutes. That's not be because it was his very first marathon. He said, hey, if I'm going to get in this marathon business, I might as well win the whole thing. An American from California came in sixth. He was the top U.S. finisher in the men's division.
CHETRY: But it was Chilean miner number 12, Edison Pena, who stole the show after hoofing it through the dark tunnels during his 69 days underground. There you see him wrapped in the Chilean flag. He was nearly sidelined by intense knee pain. In fact, he had to have ice packs at some points in the race. But he says he knows a thing or two about perseverance. He walked the last ten miles and finished in 5 hours and 40 minutes.
(BEGIN VIDEO CLIP)
EDISON PENA, CHILEAN MINER (via translator): The marathon was a marvelous experience. I'm not from this country, and there were signs that said "Do it, Pena." I'm not from this country, and people had signs that said, "Go for it."
(END VIDEO CLIP)
ROBERTS: Well, some breaking news this morning here on CNN. President Obama speaking to the Indian parliament. Let's listen in.
(JOINED IN PROGRESS)
BARACK OBAMA, (D) PRESIDENT OF THE UNITED STATES OF AMERICA: And most of all, the people of India, I thank you for the great honor addressing the representatives of more than 1 billion Indians in the world's largest democracy.
(APPLAUSE)
I bring the greetings and the friendship of the world's oldest democracy, the United States of America, including nearly three million proud and patriotic Indian Americans.
(APPLAUSE)
Over the past three days, my wife Michelle and I have experienced the beauty and dynamism of India and its people. From the majesty of Humayun's (ph) tomb to the advance technologies that are empowering farmers and women who are the backbone of Indian society.
From the celebrations with school children to the innovators who are fueling India's economic rise, from the university students who will chart India's future, to you, leaders who helped to bring India to this moment of extraordinary promise.
At every stop, we have been welcomed with the hospitality for which Indians have always been known. So you and the people of India, on behalf of me, Michelle, and the American people, please accept my deepest thanks.
(APPLAUSE)
I am not the first American president to visit India, nor will I be the last. But I am proud to visit India so early in my presidency. It's no coincidence that India is my first stop on a visit to Asia, or that this has been my longest visit to another country since becoming president.
(APPLAUSE)
For in Asia and around the world, India is not simply emerging, India has emerged, and it is my firm belief that the relationship between the United States and India bound by our shared interests and our shared values will be one of the defining partnerships of the 21st century. This is the partnership that I've come here to build. This is the vision that our nations can realize together.
My confidence in our shared future is grounded in my respect for India's treasured past, a civilization that's been shaping the world for thousands of years. Indians unlock the intricacies of the human body and the vastness of our universe. It's no exaggeration to say that our information age is rooted in Indian innovations, including the number zero. India --
(APPLAUSE)
Of course, India not only opened our minds, she expanded our moral imaginations. With religious texts that still summon the faithful, the lives of dignity and discipline, with poets who imagine the future where the mind is without fear and the head is held high.
(APPLAUSE)
And with a man whose message of love and justice endures, the father of your nation, Mahatma Gandhi. For me and Michelle, this visit has therefore held special meaning. See, throughout my life including my work as a young man on behalf of the urban poor, I've always found inspiration in the life of Gandhi and King and his simple and profound lesson to be the change we seek in the world. And just --
(APPLAUSE)
Just as he summoned Indians to seek their destiny, he influenced champions of equality in my own country, including a young preacher named Martin Luther King. After making his pilgrimage to India a half century ago, Dr. King called Gandhi's philosophy of non-violent resistance the only logical and moral approach in the struggle for justice and progress.
(APPLAUSE) So we were honored to visit the residence where Gandhi and King both stayed -- Mani Bhavan (ph). And we were humbled to pay our respects at Raj Ghat. And I am mindful that I might not be standing before you today as president of the United States had it not been for Gandhi and the message he shared and inspired with America and the world.
(APPLAUSE)
An ancient civilization of science and innovation, a fundamental faith in human progress, this is the sturdy foundation upon which you have built ever since that stroke of midnight when the tricolor was raised over a free and independent India.
(APPLAUSE)
And despite the skeptics who said this country was simply too poor or too vast or too diverse to succeed, you surmounted overwhelming odds and became a model to the world. Instead of slipping into starvation, you launched a green revolution that fed millions. Instead of becoming dependent on commodities and exports, you invested in science and technology. And in your greatest resource, the Indian people. And the world sees the results. From the supercomputers you build to the Indian flag that you put on the moon. Instead of resisting the global economy, you became one of its engines. Reforming the licensing raj, and unleashing an economic marvel that has lifted tens of millions of people from poverty and created one of the world's largest middle classes. Instead of succumbing to division, you have shown that the strength of India, the very idea of India is its embrace of all colors, all casts, all creeds.
(APPLAUSE)
It's the diversity represented in this chamber today. It's the richness of faith celebrated by a visitor to my hometown of Chicago more than a century ago -- the renowned Swami Vivekananda.
(APPLAUSE)
He said that holiness, purity and charity are not the exclusive possessions of any church in the world and that every system has produced men and women of the most exalted character. And instead of being lured by the false notion that progress must come at the expense of freedom, you built the institutions upon which true democracy depends. Free and fair elections, which enabled citizens to choose their own leaders without recourse to arms. (APPLAUSE)
An independent judiciary and the rule of law, which allows people to address their grievances. And the thriving free press and vibrant civil society, which allows every voice to be heard. This year as India marks 60 years with a strong and Democratic constitution, the lesson is clear. India's succeeded not despite of democracy. India has succeeded because of democracy.
(APPLAUSE) Now, just as India has changed, so too has the relationship between our two nations. In the decades after independence, India advanced its interests as a proud leader of the not align movement. Yet too long the United States and India found ourselves on opposite sides of a north/south divide, estranged by a long cold war. Those days are over.
Here in India, two successive governments led by different parties have recognized that deeper partnership with America is both natural and necessary. And in the United States, both of my predecessors, one a Democrat, one a Republican, worked to bring us closer leading to increased trade and a landmark civil nuclear agreement.
(APPLAUSE)
So since that time, people in both our countries have asked, what's next? How can we build on this progress and realize the full potential of our partnership? And that's what I want to address today. The future that the United States seeks in an interconnected world and why I believe that India is indispensable to this vision. How we can forge a truly global partnership not just in one or two areas, but across many. Not just for our mutual benefit, but for the benefit of the world.
Of course, only Indians can determine India's national interests and how to advance them on the world stage. But I stand before you today because I'm convinced that the interest of the United States and the interests we share with India are best advanced in partnership. I believe that.
(APPLAUSE)
The United States seeks security. The security of our country, our allies and partners. We seek prosperity. A strong and growing economy in an open international economic system. We seek respect for universal values. And we seek a just and sustainable international order that promotes peace and security by meeting global challenges through stronger global cooperation.
Now, to advance these interests, I have committed the United States to comprehensive engagement with the world based on mutual interests and mutual respect. And a central pillar of this engagement is forging deeper cooperation with 21st century centers of influence. And that must necessarily include India.
Now, India is not the only emerging power in the world. But relationships between our countries is unique. For we are two strong democracies whose constitutions begin with the same words, the same revolutionary words. We the people. We are two great republics dedicated to the liberty and justice and equality of all people. And we are two free market economies where people have the freedom to pursue ideas and innovation that can change the world. And that's why I believe that India and America are indispensable partners in meeting the challenges of our time.
(APPLAUSE) Since taking office, I've therefore made our relationship a priority. I was proud to welcome Prime Minister Singh for the first official state visit of my presidency.
(APPLAUSE)
For the first time ever, our governments are working together across the whole range of common challenges that we face. And let me say it as clearly as I can, the United States not only welcomes India as a rising global power, we fervently support it and we have worked to help make it a reality. Together, with our partners, we have made the G-20 the premier form for international economic cooperation, bringing more voices to the table of global economic decision making, and that has included India.
We've increased the role of emerging economies like international financial institutions. We valued India's important role at Copenhagen where for the first time all major economies committed to take action to confront climate change and to standby those actions. We salute India's long history as a leading contributor, the United Nations peacekeeping missions. And we welcome India as it prepares to take its seat on the United Nations Security Council.
(APPLAUSE)
In short, with India assuming its rightful place in the world, we have a historic opportunity to make the relationship between our two countries a defining partnership of the century ahead. And I believe we can do so by working together in three important areas. First, there's global partners we can promote prosperity in both our countries. Together, we can create the high-tech, high-wage jobs of the future. With my visit, we are now ready to begin implementing our civil nuclear agreement. This will help meet India's growing energy needs and create thousands of jobs in both of our countries.
(APPLAUSE)
We need to forge partnerships in high-tech sectors like defense and civil space. So we've removed Indian organizations from our so-called entity list. And we will work to remove and reform our controls on exports. Both of these steps will ensure that Indian companies seeking high-tech trade and technologies from America are treated the same as our very closest allies and partners.
(APPLAUSE)
We can pursue joint research and development to create green jobs, give India more access to cleaner affordable energy, meet the commitments we made at Copenhagen and show the possibilities of low carbon growth. And together we can resist the protectionism that stifles growth and innovation. The United States remains and will continue to remain one of the most open economies in the world. And by opening markets and reducing various foreign investments, India can realize its full economic potential, as well.
As G-20 partners, we can make sure the global economic recovery is strong and is durable. And we can keep striving for a go-out (ph) round that is ambitious and balanced with the courage to make the compromises that are necessary so global trade works for all economies. Together we can strengthen agriculture. Cooperation between Indian and American researchers and scientists sparked the green revolution.
Today, India is a leader in using technology to empower farmers, like those I met yesterday, who get three updates on market and weather conditions on their cell phones. And the United States is a leader on agricultural productivity and research. Now as farmers in rural areas face the effects of climate change and drought, we'll work together to spark a second, more sustainable evergreen revolution.
Together we're improving Indian weather forecasting systems before the next monsoon season. We aim to help millions of Indian farmers farming households save water and increase productivity. Improve food processing so crops don't spoil on the way to market and enhance climate and crop forecasting to avoid losses that cripple communities and drive up food prices. And as part of our food security initiative, we're going to share India's expertise with farmers in Africa. And this is an indication of India's rise that we can now export hard-earned expertise to countries that see India as a model for agricultural development.
It's another powerful example of how America and Indian partnership can address an urgent global challenge. Because the wealth of the nation also depends on the health of its people, we'll continue to support India's effort against diseases like tuberculosis and HIV AIDS. And as global partners, we'll work to improve global health by preventing the spread of pandemic flu.
And because knowledge is the currency of the 21st century, we will increase exchanges between our students, our colleges, and our universities which are among the best in the world. As we work to advance our shared prosperity, we can partner to address a second priority. And that is our shared security.
In Mumbai, I met with the courageous families and survivors of that barbaric attack. And here in Parliament, which was itself targeted because of the democracy it represents, we honor the memory of all those who have been taken from us, including American citizens on 2611 and Indian citizens on 9/11. This is a bond that we share. It's why we insist nothing ever justifies the slaughter of innocent men, women, and children.
It's why we're working together more closely than ever to prevent terrorist attacks and to deepen our cooperation even further. And it's why as strong and resilient societies, we refuse to live in fear, we will not sacrifice the values and rule of law that defines us. And we will never waver in the defense of our people. America's fight against Al Qaeda and its terrorist affiliates is why we persevere in Afghanistan. Where major development assistance from India has improved the lives of the Afghan people.
And we're making progress in our mission to break the Taliban's momentum and to train Afghan forces so they can take the lead for their security. While I have made it clear that American forces will begin the transition to Afghan responsibility next summer, I've also made it clear that America's commitment to the Afghan people will endure. The United States will not abandon the people of Afghanistan or the region, the violent extremists who threaten us all.
Our strategy to disrupt and dismantle and defeat Al Qaeda and its affiliates has to succeed on both sides of the border. And that's why we have worked with the Pakistani government to address the threat of terrorist networks in the border region. The government increasingly recognizes that these networks are not just a threat outside of Pakistan, they are a threat to the Pakistani people, as well.
They've suffered greatly at the hands of violent extremists over the last several years. And we will continue to insist to Pakistan's leaders that terrorist safe havens within their borders are unacceptable and that terrorists behind the Mumbai attacks must be brought to justice.
(APPLAUSE)
OBAMA: We must also recognize that all of us have an interest in both an Afghanistan and a Pakistan that is stable and prosperous and Democratic. And India has an interest in that, as well. In pursuit of regional security, we will continue to welcome dialogue between India and Pakistan, even as we recognize the disputes between your two countries can only be resolved by the people of your two countries.
More broadly, India and the United States can partner in Asia. Today the United States is once again playing a leadership role in Asia. Strengthening old alliances, deepening relationships as we're doing with China, and we're reengaging with regional organizations like ASEAN and joining the East Asia Summit, organizations in which India is also a partner. Like your neighbors in Southeast Asia, we want India not only to look East, but to engage East because it will increase the security and prosperity of all of our nations.
As two global leaders, the United States and India can partner for global security, especially as India serves on the security council over the next two years. Indeed, the just and sustainable international order that America seeks includes the United Nations. That is efficient, effective, credible, and legitimate. And that is why I can say today in the years ahead, I look forward to a reformed United Nations security council. That includes India as a permanent member.
(APPLAUSE)
OBAMA: Now, let me suggest that with increased power comes increased responsibility. The United Nations exists to fulfill its founding ideals of preserving peace and security, promoting global cooperation, and advancing human rights. These are the responsibilities of all nations. But especially those that seek to lead in the 21st century. And so we look forward to working with India and other nations that aspire to security council membership to ensure that the security council is effective, that resolutions are implemented, that sanctions are enforced, that we strengthen the international norms which recognize the rights and responsibilities of all nations and all individuals.
(END OF COVERAGE)
ROBERTS: President Obama speaking there before the Indian parliament. And there's your headline that the United States fully supports India becoming a permanent member of the United Nations Security Council. Though as our Ed Henry was saying earlier, not sure if that would include veto power like the permanent five members right now have.
The president also saying that he would be willing to help try to negotiate an end to the dispute between India and Pakistan over Kashmir, some other economic announcements in there, removing many of India's companies from the so-called entities, to free up trade in high-tech.
He's talking about human rights as well who will actually ding India just a little bit in a couple of seconds for not speaking up loudly enough at the international forum about human rights abuses in Myanmar.
Ed Henry is in New Delhi this morning. Ed, 10 1/2 years after President Clinton visited India, the relationship has come a long way.
ED HENRY, CNN SENIOR WHITE HOUSE CORRESPONDENT: It really has. And you know, it's interesting, it moved forward big time as you know during the Bush administration when then President Bush after the Clinton administration sort of built on what Bill Clinton had done by sealing that civilian nuclear deal. That really brought India further along in the international community as a major player. That's why President Bush was beloved here.
Now President Obama also getting a warm reception here. He is now trying to bring India to yet another level. With a couple of moves. Number one, removing some barriers on exports in the trade relationship back and forth that brings India more in line with the kind of trade relationship that Europe has with the United States. That bolsters India on the world stage.
And then as you just noted, the president now endorsing India's bid for permanent membership on the U.N. security council. Again suggesting that the Obama administration considers India a major player on the international stage. I mean, if you look at their economy despite the global financial meltdown, the economy is growing here at a ferocious pace about eight percent.
Economists forecast that's going to continue for a few years down the road, as well. The trade relationship growing with the U.S.. U.S. exports here at India have quadrupled in recent years. And then if you look at international affairs, counter terrorism especially coming out of those Mumbai terror attacks two years ago this month. There's been a closer cooperation with the U.S. on both counter terrorism and then the issue of climate change, as well.
So what we're seeing is the Obama administration really trying to boost India here and suggest that they're major players on the international stage. John. CHETRY: Ed Henry for us, thanks so much.
We also want to bring in our Jill Dougherty right now who has been following this and listening on the speech. What stood out to you when he talked about India potentially becoming a permanent member of the security council?
JILL DOUGHERTY, CNN FOREIGN AFFAIRS CORRESPONDENT: You know, as I was listening to him I was thinking of this giant map of the world and thinking of the big picture right now. He mentioned other emerging powers. Emerging powers. You have to think china here. Because India - the U.S. in managing the rise of China is looking very much at India.
The other country with over a billion people. So that's very important. And then he brought up Afghanistan, and that is crucial too. Because the key to Afghanistan is that fight between Pakistan and India. A lot of what Pakistan is doing on the border with terrorists, et cetera, is geared to their fear of India. So by trying to bring those two countries together, India and Pakistan, it's crucial to solving Afghanistan.
ROBERTS: And not only that, but Pakistan saying, "hey, if India got off of our southern border and allowed us to relax, we could put more of our efforts toward fighting terrorism in the northern and western parts of the country.
DOUGHERTY: Absolutely.
Yes, that's true. There are many different aspects. And India itself is a huge issue for the United States because more than one billion people, the markets that are there. And don't forget the domestic component. There a lot of Indian Americans here. A growing influence in the politics in the United States.
CHETRY: And one of the other things that caught my eye that I wanted to ask you about, is he talked about this civil nuclear agreement towards implementing that and called it a landmark deal saying it would not only help India's energy needs, but also create thousands of jobs in both of our countries.
DOUGHERTY: Yes. Well, processing, reprocessing nuclear fuel. There are many ways this can be used. And this other thing on the dual use restrictions. You know, dual use, things that can be used for weapons and things that can be used for civilians is very important too. Because that gives technology to India that could be used for creating weapons. So this is a really important relationship that we have to watch and is going to be for a lot of years in the future.
ROBERTS: Jill Dougherty, great to see you this morning. Thanks for your analysis.
DOUGHERTY: Thank you.
CHETRY: Well, your taxes certainly a big issue of debate in Washington. Coming up, we're going to talk with one reporter who argues that it's time to end tax breaks for the wealthiest. Nicholas Kristof, a columnist for the "New York Times" is going to be joining us in just a moment. 41 minutes past the hour.
(COMMERCIAL BREAK)
CHETRY: Welcome back to the most news in the morning. 44 minutes past the hour right now.
And talk of compromise perhaps from President Obama and congressional Democrats on whether or not to extend the Bush era tax cuts. The White House has said that it would like to keep the tax cuts for the middle class. That would be everyone making under $250,000 a year, a household a year. But Republicans want to extend the cuts for everyone. "New York Times" columnist Nicholas Kristof argues in a column that the income gap between the rich and the poor is crucial to the argument to end tax breaks for the wealthiest and he joins me now this morning to talk about it.
The last time I saw you were with Maria Shriver at the Women's Conference in California. Nice to see you back.
NICHOLAS KRISTOF, "NEW YORK TIMES" COLUMNIST: Good to be back.
CHETRY: So give me your argument in a nutshell about why the Bush era tax cuts should not be extended for everyone.
KRISTOF: Well, I think it's important to look at it as a backdrop, which is extraordinary inequality in this country and growing inequality. And frankly the numbers kind of blew me away from 1976, the proportion of American income taken up by the top one percent rose from nine percent to almost 24 percent. And, you know, if you look at the class - I travel a lot, of course, as you know to the sort of banana republics around the world.
And what really struck me was at this point the U.S. has greater inequality, economic inequality, than some of those classic banana republics like Nicaragua, Venezuela, Guyana. And maybe the figure that struck me the most was that over the last 25 years, 80 percent of the income gains in America went to that top one percent.
CHETRY: Why do you think the answer lies in the tax code, as opposed to programs that help bolster people who are struggling right now to even be considered middle class?
KRISTOF: I don't think that the answer is fundamentally taxes. I don't think that it is fundamentally driven by taxes. But I do think that a tax break for the wealthiest two of Americans is something that is, A, unaffordable, and B, would exacerbate that. And so I think it has to be in the background - for example -- the top one tenth of one percent of American tax payers get a $370,000 tax break if these Bush tax cuts are continued. And that $370,000 per taxpayer break is something that is clearly going to exacerbate that problem even if it doesn't fundamentally drive it.
CHETRY: You talk about the backdrop and the backdrop that keeps coming up is the fact we're still dealing in 9.6 percent unemployment nationwide.
KRISTOF: Yes.
CHETRY: Underemployment, of course, makes that number a lot higher. And so the GOP argument has been that this will hamper small business.
I want you to listen to what Senator Mitch McConnell said about the issue and get your take.
(BEGIN VIDEO CLIP)
SEN. MITCH MCCONNELL (R), MINORITY LEADER: The so-called upper income thing diverts people away from the following fact. If you do that, you raise taxes on 750,000 of our most productive small businesses, which represents 50 percent of small business income and 25 percent of the workforce at a time when job creation is just bumping along.
(END VIDEO CLIP)
CHETRY: He argues that this would actually inhibit job creation.
Do you agree with the Senate Minority Leader on this?
KRISTOF: Both in economic theory and the history of tax cuts shows you get a lot more bang for the buck when you cut taxes for lower incomes because those people actually spend their tax cuts and it goes into the economy. With the wealthiest people, then they spend some, and so it would indeed create some jobs. But also a fair proportion ends up in savings and doesn't do anything.
So if you want to create jobs, that's the priority -- and I think it should be at this time -- then the way to do that is to stimulate the economy with jobs programs. You know, keep teachers, for example, from being laid off in states around the country.
CHETRY: This is interesting. One analyst wrote that the "Christian Science Monitor" that the costliest government programs he refers to Defense, Medicare, and Social Security are not necessarily aimed at the poor.
This is what Howard Gluckman wrote. He said, the Democrats are right, the inequality is a problem. But they're wrong if they think letting the tax cuts on higher earners expire will do much to solve it.
He's essentially saying more tax revenue doesn't always go to the right places, doesn't always go to the programs that would help people struggling the most in this country.
KRISTOF: I mean, That's very true. And I would love to see more of that money instead be diverted to jobs programs, especially at a time when states and localities are laying people off. It's so important to get that money back to the economy. And the stimulus did that for a while. But now that's running out. So I agree that that's where the money should be targeted. But it will certainly do a lot more good in a lot of places than producing this $370,000 per household tax rate.
CHETRY: At the end of the day, don't we need to make more, manufacture more, create more? I mean, opportunities when we talk about our eroding middle class. And people can't get out of high school and make a living wage anymore for the most part.
KRISTOF: I don't know if this solution is still manufacturing. That was true in the past. I don't know if many of those manufacturing jobs are going to come back. But you're absolutely right that we need economic growth. That that is what's going to get the economy going.
And, you know, classically, it was thought that there was a trade-off between growth and equity. That if you wanted more economic growth, you had to accept more inequity. Actually, recently, it seems we've reached a point where the reverse is true. That we've reached a point where we have so much inequality that it actually suppresses economic growth and is more likely to create economic crises. And I think that was something that also really affected my own feelings about the level of inequality we have.
CHETRY: Well, we're going to link up your column on our web site because it is an interesting read.
Nicholas Kristof, great to see you as always. Thanks for joining us.
KRISTOF: Good to be back.
CHETRY: John.
ROBERTS: Well, there's one place where the economy is roaring month after month. The health care industry is creating more and more jobs, but not all of those jobs are created equal. We'll explain coming up with Christine Romans. Ten minutes till the top of the hour.
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CHETRY: Health care not only dominating the debate in Washington, it's also dominating the jobs market.
ROBERTS: Month after month more health care jobs have been created. Christine Romans, the author of the new book, "Smart is the New Rich" joins us now live.
Not all of these jobs are created equal.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: No. They aren't.
ROBERTS: Not everybody is a neurosurgeon.
ROMANS: And that's one of the things we deal with in the book because there are so many jobs created in very low skill, low wage jobs. But then there are a lot of different jobs, dynamic jobs, that are being created as we speak. It's a consistent bright spot -- health care. Another 24,000 jobs created last month in health care. And according to the Bureau of Labor Statistics more than 738,000 health care jobs have been created since the recession began in 2007.
(BEGIN VIDEOTAPE)
TANNEKE BURNS, STUDENT, BUNKER HILL COMMUNITY COLLEGE: You OK?
ROMANS (voice-over): Tanneke Burns enjoys her job drawing blood for a Boston blood bank. But over the past couple of years she's watched her hours shrink, seven or eight-hour blood drives, now last just five.
BURNS: I always have been told as long as you have a job in health care you're pretty much are set.
ROMANS: So Tanneke, a mother of five, is pursuing a more secure career in nursing. She goes to class at night and works during the day.
BURNS: I don't consider myself to be a risk taker but I guess on some level this is.
ROMANS: A risk that will likely pay off. The population is aging and estimated 50 million Americans enter the health care system when reform kicks in in 2014.
UNIDENTIFIED MALE: They're going to need hospitals and doctors and nurses to take care of them. Demand for health care services equals demand for good jobs.
ROMANS: Where are the jobs in health care? It's not just nursing. It's all up and down the spectrum.
UNIDENTIFIED MALE: It's up and down the spectrum. It's a big field. Any health care profession is a big field and you have all levels of people within there. And the jobs, quite frankly are going to be in all those levels.
ROMANS: There's a shortage of health care IT professionals, medical coders, and medical assistants. The government estimates hundreds of thousands of home health aides and personal aides will be needed over the next decade. Often those jobs come with on-the-job training but low pay. Median wages for registered nurses, however, is $66,530.
Tanneke Burns is hopeful. There will be student loans to pay off but she's confident she made the right choice.
BURNS: I always told my children you need to go to school, get an education. But I felt like if I haven't gone to college how can I expect them to do something I haven't done myself?
(END VIDEOTAPE)
ROMANS: She's pursuing a two-year degree and, of course, going to school is simply not an option for everyone. The Labor Department expects an explosion of 900,000 new jobs for those home health care and personal care aides by 2018. No medical experience is necessary. But be warned, those jobs often start at a very low salary and don't leave much room for advancement. That's with the bulk of the health care jobs.
If you retraining for a job in health care, make sure it's a ladder position with upward mobility, like nursing. Millions of low paying jobs in health care are created but you want to make sure you get one that has meaningful advancement and promotions.
Now, Andrew Rubin (ph), from NYU who was in that piece, he said in nursing be very careful because in some big cities hospitals are closing and nurses are losing their jobs. In other parts of the country, Also take your IT, your finance, your other backgrounds -- and accounting, too -- apply them to health care in your neighborhood and you might be surprised the jobs that are there. He said that they are looking aggressively across the country to use those skills in the health care arena.
ROBERTS: And know the local market, right?
ROMANS: Absolutely. Know the local market.
ROBERTS: Go back to school if there's going to a job there.
ROMANS: But even as we have been talking about just hemorrhaging jobs over the past couple of years, every month, right, we sit here with the jobs report and John says,. or Kiran says, let me guess, health care created positions. Yes, another 25,000 health care jobs created.
CHETRY: Right. Well, good luck to her, trying to get a nursing degree and dealing with five kids. God bless her.
ROMANS: She is smart. She is smart. She's doing the right thing.
CHETRY: Oh, yes.
ROBERTS: Taking on a lot.
Christine, thanks so much.
Top stories coming your way right after the break. Stay with us.
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