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Health Reform Deals, Delays and Ad Wars; Cold Beer Over a Hot Topic; Latest Protests at Tehran Cemetery; Bouncing for Success; Three Generations of Ford Workers; Medicare Fraud Busts
Aired July 30, 2009 - 12:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
TONY HARRIS, CNN ANCHOR: We're close, but we're not there yet. That's the word on health care reform from a Senate Republican involved in the negotiations. Senator Charles Grassley says it's important for both parties to have a say in what happens.
(BEGIN VIDEO CLIP)
SEN. CHARLES GRASSLEY (R), IOWA: We're working on a bipartisan approach here in the Senate. It'll probably be the only bipartisan approach that's before the Congress. And probably, it takes bipartisanship to get anything done, and it ought to be bipartisan when you're restructuring one-sixth of the economy and also when you're affecting a life-or-death situation for every citizen in our country. And so, I expect that this progress we've made is a pretty good indication that we'll get a bill to the president this fall.
(END VIDEO CLIP)
HARRIS: Senior congressional correspondent Dana Bash live from Capitol Hill. And Dana, OK, so, what is the latest on the work of the Senate Finance Committee panel?
DANA BASH, CNN SENIOR CONGRESSIONAL CORRESPONDENT: Well, what you just heard from Senator Grassley is good news for the president, saying that he is continuing to work in a bipartisan basis, and he does expect a bill by the fall. But there is also some bad news here for the president, big time. And that is, because both that Republican, Chuck Grassley, and Republican Mike Enzi -- in fact, I want to put both of their pictures up on the screen, because those are two out of the three Republicans working on a bipartisan basis to get a deal, a health care deal.
Well, those two Republicans told our intrepid congressional producer, Ted Barrett, last night that they do not see it possible to have a deal done by the time Congress leaves for August recess. That is a big blow, Tony, to the president, because he -- after he understood that there wouldn't be full Senate and House votes, he at least wanted to get a deal announced in the next couple of weeks. He has made that abundantly clear to the negotiators, but that is apparently not going to happen now.
And, in fact, we caught up with Mike Enzi, that Republican, just a few minutes ago in the hallway. We want to play for you what he said about that.
(BEGIN AUDIO CLIP)
SEN. MIKE ENZI (R), WYOMING: The bill is not ready for prime time, so I don't know any way that it can be completed today or next week, and then we're at the August break. And it is important to get it right for America.
(END AUDIO CLIP)
BASH: So, again, all eyes are on these negotiators, hoping to get some momentum for the president's top priority. And these Republicans who are critical to getting the momentum are saying it's not going to happen in the next couple of weeks. It won't happen until the fall.
HARRIS: Well, Dana, let's drill down on this just a bit here.
Now, what happened? I'm listening to the radio, again, driving in to work, and Senator Grassley indicated that we're essentially 95 percent home, which only leaves, by my math, five percent to work out.
So, what has happened here? Is this a situation where Senator Grassley, Senator Enzi went back to brief members -- other Senate Republicans, members of the caucus, and they received a bit of an earful here? What's happened?
BASH: They did. In fact, there was a meeting late yesterday that those two Republicans had. They do it weekly.
They brief their fellow Republican senators on the progress and the process going on in those bipartisan talks. And it was coming out of that meeting that those two Republican senators told our Ted Barrett, you know, we don't think it's going to happen.
You cannot underestimate the kind of pressure that is on these Republicans, especially somebody like Mike Enzi, who is a conservative, who is not, you know, generally involved in these bipartisan talks, the pressure on them to basically bail from these talks, and if nothing else, to not give in too much. And, you know, Mike Enzi was very clear yesterday that, you know -- with the reports that there was progress, and maybe even a deal this week.
HARRIS: Yes.
BASH: He said he was very angry about that. He said if he's going to be part of a deal, that's not going to happen. And so, you can't underestimate the Republican pressure -- Tony.
HARRIS: Dana, stand right where you are for just a moment.
On the House side, Democrat leaders have reached a deal with fiscal conservatives in the party. It trims the cost of the House plan by $100 billion. It exempts small businesses with payrolls under $500,000 from having to provide or pay for coverage, and it would change the public plan structure so payments to doctors and hospitals are tied to lower Medicare rates.
Dana's back with us.
So, Dana, how close is the overall House to signing off on this deal?
BASH: I want to show you another picture. I think we have a live picture of something that's going on that wasn't going on for two weeks. It was delayed, and that is work in the Energy and Commerce Committee.
HARRIS: Right.
BASH: It was delayed because of a revolt among those conservative Democrats. That work is going on right now. There you see the chairman, Henry Waxman.
They do expect to have a bill out of the committee by tomorrow, really, by the end of the week. There won't be a full House vote until the fall. We know that that was part of the deal that was announced until yesterday. But that is that is continuing now, able to continue because of that deal.
However, it has not ended the ugliness and, frankly, the bloodiness within the Democratic Party, because there are many liberals who are looking at this and saying, wait a minute, we think the changes that you just talked about, Tony, that were made to the government-run public option, shaving some of the costs off of this, they think that has hurt the overall product and the idea of reform. So, they're not happy about it. And we're talking to some liberals who say, ultimately, they probably won't vote for this because they say it doesn't go far enough now.
HARRIS: It's tough. I mean, health care reform was always going to be tough, and now we know why.
All right. Our senior congressional correspondent Dana Bash for us.
Good stuff. Thanks, Dana.
BASH: Thanks, Tony.
HARRIS: The debate over health care reform is playing out on your television set. Interest groups have flooded the airwaves with ads for and against the various plans and proposals.
That part of the story now from Senior Political Correspondent Candy Crowley.
(BEGIN VIDEOTAPE)
CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT (voice-over): Have microphone, will travel.
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: If you like your doctor, you keep your doctor. If you like your health care plan, you keep your health care plan. CROWLEY: Nothing like the bully pulpit to push an issue, but there are other ways you may have noticed.
NARRATOR: You could end up with government bureaucrats taking away your choices, getting in between you and your doctor.
NARRATOR: Now the Republicans say Congress should slow down? That's because when something goes slow enough, it's easy to kill it.
CROWLEY: So far, just about $50 million has been spent on TV ads related to health care reform aired by 50 different groups -- insurance and pharmaceutical associations, unions, nurses, the soft drink industry, Republicans and Democrats, all with two things in common, a vested interest and deep pockets. About half the buys are aired nationally.
EVAN TRACEY, CAMPAIGN MEDIA ANALYSIS GROUP: It's really trying to reach the most engaged sort of party activist, legislative, lawmakers, you know reporters, bloggers, you know the people that are sort of plugged in all the time. Most Americans right now are at the beach...
NARRATOR: Barack Obama's massive spending...
CROWLEY: The ads fall into four different categories -- for and against an Obama-style reform package, pro-health care reform in general.
UNIDENTIFIED MALE: We may finally get health care reform.
UNIDENTIFIED FEMALE: It's about time.
CROWLEY: And ads from stakeholders. Autism speaks.
NARRATOR: Call Speaker Pelosi and Leader Reid and tell them health reform that fails to stop autism insurance discrimination is unacceptable.
CROWLEY: The soft drink industry...
NARRATOR: This is no time for Congress to be adding taxes on the simple pleasures we all enjoy like juice drinks and soda...
CROWLEY: And in general, the ads are soft-edged. But as summer moves into fall and the kids go back to school, Congress begins debate on a health care bill, can he bar the door or turn off the TV?
TRACEY: I think you're going to see some really distinct lines. They're going to get much more emotional in their lines of attack. And it's going to become much more politicized.
CROWLEY: It has already begun.
Here's what Republican leader Eric Cantor will see when he hits the remote at home. NARRATOR: Now I find out that Congressman Eric Cantor voted against health care reform that would stop insurance companies from denying coverage for pre-existing conditions like cancer. He wants me to fight cancer and the insurance companies?
CROWLEY: This union ad is not about getting Congressman Cantor to vote for the House bill. This is a warning shot. Count on health care reform as an issue for 2010, hardball to come.
Candy Crowley, CNN, Washington.
(END VIDEOTAPE)
HARRIS: You know, we have been hearing a lot about the health insurance cooperatives as part of the reform plans. What are they and how would they work?
Senior Medical Correspondent Elizabeth Cohen is hard at work now. She'll be here in just a couple of minutes with some answers to all of our questions.
Race relations taking center stage at the White House late today. It's beer around a picnic table for the president, a professor, and a police officer.
Senior White House Correspondent Ed Henry is here.
Ed, what does President Obama hope to accomplish in this meeting with Professor Gates and Sergeant Crowley later today?
ED HENRY, CNN SENIOR WHITE HOUSE CORRESPONDENT: Well, good morning, Tony.
What's interesting is that White House spokesman Robert Gibbs is really trying to downplay expectations about this. Obviously, a lot of people around the country talking about this, really an extraordinary meeting, having the president bring together these two figures involved in a very difficult dispute just a couple weeks ago that's really resonated across the country.
Robert Gibbs saying do not expect the president today to announce any new initiatives to battle racial profiling, anything specific. Maybe, don't even expect the president to talk. When the media's allowed in very briefly for this summit, the cameras, that it's probably just going to be a photo-op where nobody will actually speak out, including the president, Professor Gates, or Sergeant Crowley.
Instead, Robert Gibbs saying, look, don't even expect, you know, a lot of talk about what happened that night when the cameras are away. This is not going to be an after-action police report about what happened on that night.
Instead, Robert Gibbs saying, look, this is going to be about the president trying to start a dialogue in this country to move beyond some of the tension we've seen over the last couple of weeks. Maybe project something positive over what has largely been kind of a negative episode -- Tony.
HARRIS: So, wait a minute, Ed. We may not get statements even from the gentlemen?
HENRY: That's right. That's the latest from the White House, just in the last little while, now saying that when the cameras are let in, let in very briefly out on the south lawn -- we're expecting this to happen on the picnic table over by the swing set that the president purchased for his daughters.
We're also told, for example, that the families of both Sergeant Crowley, as well as Professor Gates, will be here for this so-called summit. But, you know, that obviously suggests that they're looking for more of a personal touch.
HARRIS: Yes.
HENRY: They're not trying to get into policy discussions, et cetera, with the families involved. And Robert Gibbs adding, don't expect to hear from the president, or to even hear, as he put it, from a glass of beer. Maybe a little humor there to say, look, we're probably not going to even here from the president of the United States.
HARRIS: Boy.
HENRY: Instead, he just wants the photo of everybody together -- Tony.
HARRIS: You mentioned the glass of beer. I understand -- and this is a bit of breaking news here -- there's a bit of a controversy brewing -- sorry.
HENRY: Oh, brewing.
HARRIS: Oh, sorry about that -- about what beer is being served. Can you clear this breaking news up for us, Ed?
HENRY: I can clear this up. I think "The Wall Street Journal" put it best by saying that some of the beer companies are "hopping mad" about this.
Basically, Sam Adams, in particular. There's a Democratic congressman, Richard Neal, from Massachusetts, who wrote the president in the last 24 hours saying, Mr. President, you need to serve Sam Adams, because not only are the key players here from Massachusetts, beer brewed in Boston, but also, Sam Adams is the largest U.S. brewing company.
The president's saying he's going to have Bud Light. It's now owned, as you know, by InBev, this Belgium company. It's not an American company anymore.
So, I think what this tells us more than anything is, around the White House, politics can be interjected in anything, even when you've got the president trying to turn a negative episode into something positive. People are going to complain about things no matter what -- Tony.
HARRIS: So, I guess the Sam Adams fell a little flat for this White House.
Ed, we really need to go.
Ed Henry for us.
Ed, appreciate it. Thank you.
HENRY: Thanks, Tony.
HARRIS: And what is your thinking on this issue and this meeting today? Is this just about three guys? Will it make a difference?
Voice your opinion on our NEWSROOM blog. Could this meeting improve race relations in the country? Will it even start a dialogue? Maybe it would help if the parties involved had something.
I don't know. Just thinking out loud.
Log on, sound off, CNN.com/Tony.
The beer summit is set for 6:00 Eastern this afternoon, and you can see live coverage on CNN. Be in "THE SITUATION ROOM" with our Wolf Blitzer. That is 6:00 Eastern. That's 3:00 on the West Coast.
A lot of first-time homebuyers are scrambling to take advantage of the government's tax credit before time runs out. As always, whenever there is money involved, there is the possibility for fraud.
We've got some tips to help you avoid getting scammed.
(COMMERCIAL BREAK)
HARRIS: A rare instance in Iran today, something we've not seen before in these post-election protests. A journalist from a government-backed television network reporting from the cemetery where one of the symbols of these protests is buried.
Reza Sayah is at CNN's Iran desk.
How significant is this, Reza? What does this mean?
REZA SAYAH, CNN INTERNATIONAL CORRESPONDENT: Well, I'm not quite sure what it means at this point, but this is very, very rare. If my memory serves me correctly, this is something we haven't seen before.
Remember, all television stations in Iran, they're funded and run by the government. So, they usually don't cover events that are not favorable to the government. But today they did.
Press TV, the English-language, state-funded television station in Iran, at this demonstration at Tehran's main cemetery, Behesht-e- Zahra. According to sources, about 3,000 people showed up there to remember 26-year-old Neda Agha-Soltan, the young woman who, along with several other people, were killed during the June 20th protests eight days after the disputed vote.
And they're covering the event. Showing pictures of security forces charging the protesters was Press TV. In fact, they had a reporter there who was doing live telephone reports. Very, very unusual. Again, not sure exactly what this means.
HARRIS: Right.
SAYAH: But Press TV was there.
We also want to show you, Tony, some dramatic video coming in today after the appearance at the gravesite of Neda Agha-Soltan this morning. The crowds were dispersed and they headed up north to neighborhoods in central Tehran.
And there you see video that just came into the Iran Desk about a few minutes ago. This is Valias (ph) and Vanac (ph), and there you see a security officer with a baton. Look at this face-off here. This is the defiance that we've been seeing.
HARRIS: Whoa!
SAYAH: He's not going away.
HARRIS: Exactly.
SAYAH: He is not going away. And there you see the defiance that has really marked this opposition movement.
So, what started five hours ago at the cemetery commemorating Neda, has now, according to our sources, poured into pockets and neighborhoods in downtown Tehran where witnesses are telling us these face-offs, these clashes are continuing to happen. Based on what we're seeing today, Tony, this opposition movement...
HARRIS: Absolutely.
SAYAH: ... with plenty of momentum. Despite a crackdown by the government, they're not going away.
HARRIS: This is really something. All right.
Reza Sayah at our Iran desk.
Reza, appreciate it. Thank you.
SAYAH: You're welcome.
HARRIS: Well, we don't want you to be a victim of first-time homebuyer tax credit fraud. In the first case nationwide, the IRS has just indicted a tax preparer for fraud involving this particular credit.
CNN's personal finance editor, Gerri Willis, is with us now with more details.
Good to see you, Gerri. What's going on here?
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Well, hi there, Tony.
Look, the IRS, as you said, just prosecuted a tax preparer in Jacksonville, Florida, for falsely claiming the $8,000, first-time homebuyer tax credit on a client's return. Now, his clients either didn't buy the home or they didn't qualify for the credit. And there are more of these cases. Twenty-four more criminal investigations pending.
The agency says it has screening tools in place that can detect fraud. So, if you're caught, the penalties are steep -- three years in jail, up to $250,000 in fines.
Even if you use a tax preparer, you are ultimately responsible for the accuracy of your tax return. If there is an error, you may have to pay back taxes, penalties, interest.
HARRIS: Whoa.
Gerri, how can consumers protect themselves from fraud in this case?
WILLIS: Well, in this particular case, the tax preparer allegedly claimed the tax credit so that the clients would get bigger refunds and he would get more clients and more fees. So, here's what you do. You've got to use a reputable tax preparer here.
The sad truth here is that anybody can put out a shingle and claim to be a tax preparer. To be safe, you want to pick a certified public accountant or an enrolled agent. That's a professional license by the federal government.
Now, you can find out whether your CPA has had any problems, disciplinarian actions against him recently, or her, by going to the AICPA's Web site. And they also tell you how to pick a good tax professional.
Also, don't automatically trust a tax preparer who promises you a big refund. That's a real red flag. Make sure that the refund, too, is coming directly to you.
HARRIS: And one more point here. Maybe it would be helpful to take a big step back here.
Remind us of how this tax credit actually works, Gerri.
WILLIS: Well, it's a tax credit; right? It provides up to $8,000 to first-time homebuyers who qualify. It's a credit, not a tax deduction.
To qualify, you have to be a first-time buyer, so you cannot have owned a primary home in the past three years. And you have to close before December 1st of this year.
You can't claim the credit until you actually close the loan. Go to federalhousingtaxcredit.com for more information.
HARRIS: Gerri, good to see you. Appreciate it. See you again tomorrow.
WILLIS: My pleasure.
HARRIS: Co-ops are the new health care option getting a lot of attention, a lot of talk on Capitol Hill. What does that mean for you?
(COMMERCIAL BREAK)
HARRIS: Polls show support for President Obama's approach to health care reform slipping. Among the latest, a "New York Times"/CBS poll, 66 percent of respondents were concerned that they might eventually lose their insurance.
Senior medical correspondent Elizabeth Cohen joins us now.
What else are we seeing in this particular poll here, Elizabeth?
ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: This poll is really interesting, because what it shows is that people are concerned that health care reform may limit their quality of care. In other words, decrease their quality of care, and also limit someone's ability to choose their doctor and to get the tests and the treatments that they want. And people are concerned about this, even though the president has addressed this over and over again.
(BEGIN VIDEO CLIP)
OBAMA: If you like your health care plan, you'll be able to keep your health care plan.
Those who oppose reform will also tell you that under our plan, you won't get to choose your doctor, that some bureaucrat will choose for you.
I have been as clear as I can be. Under the reform I've proposed, if you like your doctor, you keep your doctor. If you like your health care plan, you keep your health care plan.
(END VIDEO CLIP)
HARRIS: Well, OK. Over and over again, but, Elizabeth, it seems that the people just don't believe the president on this point.
COHEN: Right. I mean, we just showed him saying it three times. We had many, many choices. There were many times that he said that.
So, either people don't believe him, or what may be going on is that people are sort of wary about uncertainty. So, they may be thinking in their heads, well, sure, the president says that my health care isn't going to change if I'm happy with my health care, but does he really know what's going to happen down the road? When you start messing with something as big and complicated as health care, does he really know? Can he really make that promise? So, either they don't believe him, or they are just wondering if he really can make that promise.
HARRIS: Right. Yes, a good distinction there.
There's something else the president has emphasized over and over again. Tell us about that.
COHEN: Right. He has emphasized over and over again that this is not socialized medicine.
HARRIS: Yes.
COHEN: So, let's take a listen to times where he's talked about that.
HARRIS: OK.
(BEGIN VIDEO CLIP)
OBAMA: Opponents of health reform warn that this is all some big plot for socialized medicine or government-run health care with long lines and rationed care. That's not true either.
The reason this has been controversial is, you know, a lot of people have heard this phrase "socialized medicine," and they say, we don't want government-run health care. We don't want a Canadian-style plan. Nobody's talking about that.
I've received letters that say, "No, I don't want a government- run program. I don't want socialized medicine. And, by the way, don't touch my Medicare."
(END VIDEO CLIP)
HARRIS: I don't want socialized medicine, but don't touch my Medicare.
Will you explain to us, please, what Medicare is?
COHEN: Some would say that Medicare has some aspects of socialized medicine.
HARRIS: Right.
COHEN: It's something that you get just by turning 65. You don't have to do anything to get it.
It is a single-payer system. The government pays for it. The government runs it. And so people see sort of a disconnect.
HARRIS: But there's a disconnect. People don't associate Medicare with the idea of a government-run insurance program. COHEN: I think what's been going on is that Medicare's been around with us for more than 40 years, so people just think of it as sort of like an entitlement. It's just something that's there.
They don't think of its a government-run health care, but that's exactly what it is. And people really, in a way, kind of like their Medicare. They want their Medicare when they turn 65.
HARRIS: If you're going to pass this, you better get the language right on this.
COHEN: Right.
HARRIS: The semantics are real important, it seems. Right?
COHEN: It is.
HARRIS: OK.
COHEN: Because if you use certain language, people think socialized medicine. And somehow Medicare they don't put into that category. But the term -- people just freak out about socialized medicine.
HARRIS: Absolutely.
COHEN: They freak out over this. And you can say it as much as you want it's not socialized medicine, but still, people are suspicious.
HARRIS: Right.
Elizabeth, appreciate it. Thank you.
COHEN: Thanks.
HARRIS: Man.
All right. So, following this story with Elizabeth every single day, we can certainly tell you this fight for health care reform is going to be a long one, particularly to get a bill. And a long way to changing the way we view health care reform and health care in this country.
So, how can you keep track of how the bills are changing and how they might impact you?
Josh Levs is here with the latest from CNN.com.
Walk us through this, Josh.
JOSH LEVS, CNN.COM CORRESPONDENT: It's such a moving target, Tony.
HARRIS: It is. LEVS: And you know me. I mean, I like to show up with the hard facts; right? I like to be able to say solidly, this is what the deal is.
Well, the reason that I'm here right now is I really want encourage people to check something out which is very cool. CNNMoney.com, just zoom in, actually.
It has a whole spread on health care. All you need to do is go to the main page of CNNMoney.com and click on where you see "Fixing Health Care."
Take a look at this, Tony. I mean, every time you see a new blue line, that's a new updated story, often from just the last few days, taking you through a lot of stuff.
One of my favorite features that we have at CNN.com is this, which takes you through the three major bills that are being considered. If you really want to be a wonk here, if you want to dig in, how it might affect the individual mandate, how it would actually be structured, they actually compare all three of the bills that have been floating around in Congress.
But check out this headline here, "What Health Reform Means for You." I have a couple of graphics because I want you to see one analysis that our team at CNNMoney.com did and showed a few examples.
HARRIS: Nice.
LEVS: So, they say, look, if you get coverage at work, you're unlikely to see a lot of change. You're also unlikely, though, to have lower premiums. And you might potentially see a new tax.
Let's go to the next one.
If you buy that coverage yourself, well, then it's going to be different. You might have lower costs. You also might get some help from your employer in paying for the insurance that you get outside of work.
The third possibility there is that you don't have insurance. As we've talked about, tens of millions don't. You might get some help from the government. You might also, as you've heard, this possible mandate, you might be required to get it.
So, all that. But I'm also going to tell you, even as you look at that, it's a moving target, and there are some people who are going to say, wait a second, the latest version of the bill changes that a little bit.
And Tony, we're hearing different arguments. Take a look at this from "Fortune" magazine, also up at CNNMoney.com, "5 Freedoms You'd Lose in Health Care Reform." This is writer for "Fortune" who's arguing, you know what? There are certain freedoms that you're used to that you wouldn't get.
So, I'll make that a tease here. Check it out.
HARRIS: That's right.
LEVS: All there at CNNMoney.com. Just click on "Fixing Health Care," a one-stop shop for all that.
HARRIS: And our money team does a terrific job.
LEVS: They're all over this. I'm amazed.
HARRIS: They really do a terrific job, and CNNMoney.com is the page. That's the site for the latest on what's in these bills and how they're changing from moment to moment.
Josh, appreciate it. Thank you.
LEVS: Thanks, Tony.
HARRIS: The beer summit at the White House -- what can the president hope to accomplish as he addresses the racially charged issue? I'm going to talk to a couple of observers who bring slightly different takes to the table.
We're back in a moment.
(COMMERCIAL BREAK)
TONY HARRIS, CNN ANCHOR: All right. CNNmoney.com. That is the site to visit if you want the latest financial news and analysis. The lead story, "stocks at eight-month highs." Your 201(k) may be a 301(k). Once again, CNNmoney.com is the place to go for the latest financial news and analysis. Our money team does a terrific job.
Let's take a look at the Big Board now. Three hours into the trading day, the Dow is up 150 points. What a nice little bull charge here. The Nasdaq, the tech-heavy Nasdaq, up 23 points. We are following the numbers throughout the day with Susan Lisovicz from the floor of the New York Stock Exchange right here in the CNN NEWSROOM.
You know, at a time when companies are laying off workers just to survive, we found a couple in North Carolina who have managed to increase their revenue and expand their small business. Here's CNN's Reynolds Wolf with today's "Money & Main Street" segment.
(BEGIN VIDEOTAPE)
REYNOLDS WOLF, CNN CORRESPONDENT (voice-over): Scott and Julie Hamilton took their life savings and borrowed money from family and the bank to invest in their dream. These parents of three boys opened a kid-friendly franchise, Bounce U, in Charlotte, North Carolina, last year. An entrepreneurial strong city. And then the economy took a nosedive.
JULIE HAMILTON, BOUNCE U OWNER: We knew we were going to have to get creative and proactive. WOLF: That meant coming up a marketing strategy to get customers in the door. They focused on children's birthdays and smaller, less expensive parties and even some weeknight activities
J. HAMILTON: We now have party packs that start at $150. And we have from all different kinds of sizes, all different budgets. And that seems to have really helped a lot.
SCOTT HAMILTON, BOUNCE U OWNER: It's not just the weekend business, which is originally what we bought into it for. Now it's something that we have parties on the weeknights, we have summer camp during the day. We'll have open bounce as well.
WOLF: They're seeing it pay off. The business has increased by 20 percent with zero layoffs. It's a common story in Charlotte. According to the chamber of commerce, more than 7,300 jobs have been created by new business so far this year. Mostly small business.
The Hamiltons say TV and direct mail ads, online marketing, and fund-raising partnerships have all helped.
S. HAMILTON: We have called every school and every church and every youth group and every scouting group and we're talking to them about our different programs.
WOLF: All part of the plan to get people through their doors and keep them coming back.
S. HAMILTON: It's real easy to get on the inflatables and play with the kids and see them laugh. But at the end of the day, it's mom and dad that you want to go home feeling that they've gotten a good value for what they've paid for.
WOLF: Building their business with every bounce.
Reynolds Wolf, CNN, Charlotte, North Carolina.
(END VIDEOTAPE)
HARRIS: And if you need advice on how to cope through this tough economy, watch more of our series "Money & Main Street," CNN tonight at 8:00. Eastern.
(COMMERCIAL BREAK)
HARRIS: Racial healing on tap at the White House today. The president, the black Harvard professor, and the white police officer who arrested him getting together over beer. Our Carol Costello looks at beer as a political tool.
(BEGIN VIDEOTAPE)
CAROL COSTELLO, CNN CORRESPONDENT (voice-over): It's a strategy that spawned more than a few clever headlines, like this one in "The Huffington Post," "Obama Names Thursday Drink a Beer with Someone who Arrested You Day." Or this one in "Politics Daily," "Beer and Loathing at the White House." It's tough to say if Mr. Obama's beer diplomacy will heal the wounds, but some say at the very least his choice of beverage will level the playing field between president, professor, and police officers. It's a tried-and-true political tactic.
SARAH PALIN, FORMER GOVERNOR OF ALASKA: Let's commit ourselves, just everyday American people, Joe six pack.
COSTELLO: Who can forget that. Supporters say Sarah Palin is a master at appealing to the common-sense, average Joe, and she used a six pack to do it.
During the Democratic primary, Hillary Clinton tried something harder, but mostly stuck with beer. And Barack Obama played to the beer-drinking crowd, too, enjoying a few brews on the campaign trail. Perhaps the only misstep in the president's latest beer diplomacy strategy is not inviting all parties to his White House shindig, as in the woman who called 911 to report there was someone breaking in to Professor Gates' house. This is her lawyer.
WENDY MURPHY, ATTORNEY FOR 911 CALLER: So, the three highly trained guys who reacted badly are getting together tomorrow for a beer at the White House. And that's a good thing. But the one person whose actions have been exemplary will be at work tomorrow here in Cambridge. I don't know, maybe it's a guy thing. She doesn't like beer anyway.
(END VIDEOTAPE)
HARRIS: OK. So, when the beer bottles are empty, will the nation take away anything from this racially charged episode? Boyce Watkins is a professor at Syracuse University and author of the book, "What If George Bush were a Black Man."
Boyce, good to see you.
BOYCE WATKINS, BLUE RIBBON SPEAKER WITH GREAT BLACK SPEAKERS, INC: Glad to be here.
HARRIS: And Michael Eric Dyson teaches African-American studies at Georgetown University in Washington and he joins us from Chicago.
Michael, good to see you as well.
Let's have it here. You know we've heard from so many that this -- that the Gates arrest is a learning moment, a teaching moment. We've heard that most prominently from the president. What do you hope, Michael, is taken away from this episode?
MICHAEL ERIC DYSON, GEORGETOWN UNIVERSITY SOCIOLOGY PROFESSOR: Well, I think a teachable moment depends upon who's teaching, who's running the curriculum and whose classroom it is.
HARRIS: Yes.
DYSON: I think it's fair to say in this case that it's important for us to take away a few lessons. First of all, that despite the battle of elites, the president, the professor and the policeman, there are everyday black and Latino men who are victimized by and subject to arbitrary forms of power, especially from the state and especially from police.
The police also, the second lesson, have an extremely difficult job. They're trying to do good work in the midst of back circumstances. And so we have to have some leeway and empathy for them.
But finally, I think what's important here, if we speak about race, the truth to be told here is that, look, there's not a -- there's not equal power here. Professor Gates may have a Harvard degree, but when a policeman confronts him in his own house with a badge and a gun, there is no discourse that will be able to combat the brutality and the sheer rawness of that power.
HARRIS: Yes.
DYSON: So I think that we have to acknowledge here that the president was right the first time, it was, I think, a not wise thing to arrest a man in his own home when you went over there for breaking an entering and found out that he was in his own home. So I think the lesson here is, let's not just focus on Professor Gates and Sergeant Crowley. Let's focus on all those other people who suffer tremendously and violently at the hands of the unjust exercise of power. If we can just get to that point, that would be an incredible lesson.
HARRIS: Michael, you're asking for that in the form of an admission at the center of this discussion. Do you expect that to come out of -- you don't expect that to come out of today's suds summit, do you?
DYSON: No, not at all. But look at this.
HARRIS: That's a broader discussion.
DYSON: There's another policeman -- there's another policeman who called Professor Gates a jungle monkey.
HARRIS: Yes. Yes.
DYSON: Case closed. The point is, it doesn't have to be Sergeant Crowley himself. We know that police have said horrible things. Listen to the police tapes around Rodney King's arrest and the like and you'll discover that there are deeply entrenched biases, of course, on all sides. But in this case, on the part of some people, some policemen, who profile African-American and Latino men.
And beyond that, it doesn't have to be the case that he felt that he was going to see a black man. It's just that Professor Gates may have shattered an unspoken code here, don't speak, you know, uppitiliy (ph) -- in an uppity fashion, excuse me, to a white policeman. And while that may be irritating, it doesn't rise to the level of being against the law. HARRIS: Hey, Boyce, what do you -- same question to you. What do you maybe hope the takeaway is from this episode?
WATKINS: Well, you know, let's be clear. You know, this event is not as serious, you know, for the politicians, I think, as it is for the people. You know, a lot of people, you know, beer can make a lot of problems go away, but the race problem is too big. And no matter how much beer you drink, it's still going to be there.
HARRIS: Right.
WATKINS: Now, what I think has to happen, though, is that after this is done, we have to take this back to the people and the people have to bring it to themselves. That means that we have to have what I call the ARC, A-R-C, the American racial conversation. We need to talk about race. We need to be honest. We need to cloak that conversation in forgiveness, empathy, love and the ability to listen. And we have to ask ourselves, you know, what would Dr. King want us to do? Would he want us to fight and to try to struggle for power, or would he want us to achieve understanding?
HARRIS: Yes.
WATKINS: And so everything that Mike said is absolutely correct. I mean I've been a black man for a real long time now, and it's not easy. You know, I deal with racism on a regular basis, on my own campus and across the country, et cetera. But at the same time, we have to also understand that the police also have a story. White Americans have a story. We all have a story. And if we don't communicate, just like in a marriage -- in a marriage, if you do not communicate, then your love will eventually die.
HARRIS: Communicating.
WATKINS: If we don't communicate as people, then our country will eventually die.
HARRIS: Right, communicating, taking this back to the people.
Hey, Michael, can you truly clear the air without a clear explanation of what happened on that day? If you want a national debate, with this episode as sort of a jumping-off point, don't we have to know, don't we have to get some statement from the principles involved here as to what happened, at least an understanding between the men of what happened?
DYSON: Well, I mean, Boyce brought up the analogy of a marriage. Let's talk about a relationship. Yes, you're seeking closure. But I don't think we necessarily will get any closure. It would be good to have that kind of a closure.
But here's the point. Even if we don't hear what they each individually have to say, the point is, at the end of the day, they may never agree anyway. Professor Gates has his story. Sergeant Crowley has his story. President Obama has his story. What is the bigger story here? HARRIS: Yes.
DYSON: The bigger story is, there are a bunch of narratives out there, there are a bunch of truths out there that say Sean Bell goes down, Amadou Diallo goes down, Abner Louima is plundered. The reality is that disproportionate numbers of black and Latino men are treated horribly by some police who get out of control, who, in excessive violence, embrace the vicious stereotypes that racial profiling delivers to the collective unconscious of America.
So here's my point. Beyond what they say individually, the brouhaha, or if we don't get to what ails us, to throw in two more puns there, the reality is, is that they have a Coke and a smile, they can have a drink of beer, but at the end of the day, we must, as Boyce said, wrestle with the meaning of race in our own communities and understand that this is a vicious reality that the president must use his bully pulpit to more equitably and intelligently speak about it, as he has done so far.
HARRIS: And, Boyce, can we address all the things that Michael has mentioned, while at the same time addressing the very difficult work that police officers do on a daily basis for all of us?
WATKINS: Well, I think that Mike makes a perfect point, in the sense that we have to address this issue intelligently. The one officer, who referred to Professor Gates as a jungle monkey . . .
HARRIS: Yes.
WATKINS: He should be fired because what he did was, he engaged in an unintelligent way of expressing his frustration, you know, as a white police officer. Now, I can identify with his frustration, but I can't identify with you calling me a name that dehumanizes me.
HARRIS: Right. Right.
WATKINS: But what we have to do also is, we've got to remove him from the fold and realize that there are a lot of cops out here who do a good job, who work hard, who don't want to be called a racist. And I think that when you are trying to cure the cancer of racism in our society, you have to do delicate, precise surgery. If you go in and do a precise job with a sledgehammer, then you're going to end up killing some vital organs.
So if our country is going to grow and prosper, we've got to come together and we've absolutely got to communicate. And if we've got to do it over a glass of beer, then you know what, President Obama, I don't drink, but I'll drink a beer with you if that will help.
HARRIS: I think that's a good place to end at least this discussion. Michael Eric Dyson.
As always, Michael, great to see you.
DYSON: Good to see you, Tony.
HARRIS: And Boyce Watkins, as always, good to talk to you.
We've asked for your opinions on this story. Time to share. Here are a few of your comments from our CNN NEWSROOM blog.
Anthony writes, "The 'Beer Summit' is a roadmap to peace, not just for the three involved, but for the whole of America."
Kay says, Tony, "I think President Obama is the perfect person to unite the races. It is not mentioned enough that he is half white, as well as African-American, and was raised by his white grandparents."
And from John, "This meeting is only being done for show."
One more here. And this from Glenda. "If having a beer could solve race relations, then we'd all be alcoholics."
Voice your opinion on our NEWSROOM blog, could this meeting actually improve race relations in this country, cnn.com/tony.
The beer summit is set for 6:00 Eastern this afternoon. And you can see live coverage on CNN in "The Situation Room" with our Wolf Blitzer. That is 6:00 Eastern, 3:00 on the West Coast.
What does it mean to be a Ford man when your company is fighting for its very survival? We went to Michigan to find out.
(COMMERCIAL BREAK)
HARRIS: You know, for some Americans, working in the auto industry is a family affair. But the story has taken a sour turn as thousands of autoworkers have lost their jobs. For others, the transition continues. Cnnmoney.com's Poppy Harlow met with one family trying to ensure that Ford's future is as bright as its past.
(BEGIN VIDEOTAPE)
POPPY HARLOW, CNN CORRESPONDENT (voice-over): Lino Widmann worked as an engineer at Ford from 1960 until the early '90s. Following his father's work at the automaker during the Great Depression.
LINO WIDMANN, FORMER ENGINEER, FORD: For me it's provided a great living. It's provided an opportunity to send all my kids to college. It's provided a satisfactory income in my retirement.
HARLOW: It was Lino's first and only job out of college. Three decades later, his son, Carl, followed in his footsteps.
CARL WIDMANN, VEHICLE ENGINEER MANAGER, FORD: Probably the first thing that interested me about it is Ford -- we have like a family day. And I always remember that as a kid, just the sheer breadth of what was there. And then even then, as a kid, the engineering or the intuition of all the interesting parts and stuff like that.
HARLOW: Carl has been an engineer at Ford since 1991. In fact, all three of Lino's sons have worked at Ford. Something you see a lot of here.
BILL FORD JR., EXECUTIVE CHAIRMAN, FORD: I think it's the most defining element of this company, is the family company. I can't tell you the number of places I can go in our company where people come up to me and say, you know, I'm fourth generation also, or, you know, my aunt and uncle knew your father and your grandfather.
HARLOW: But times have changed and layoffs have mounted. When Lino worked at Ford in the late 1960s, the automaker had more than 29 percent of U.S. market share. Today, that number has fallen to 15 percent.
L. WIDMANN: What has happened to the industry? Well, people have found a greater -- a great desire to buy foreign cars, I guess. We want to become a country that assembles parts, that's one thing. If you become a country that not only assembles but also designs and innovates the parts, that's another story.
(END VIDEOTAPE)
HARRIS: Yes, another story.
All right, Poppy joining us now from New York.
Poppy, let's talk about that other story. How is the Widmann family feeling about the future of Ford and the U.S. auto industry?
HARLOW: You know, Tony, as his son puts it, I'm bullish. This is a great opportunity for us. They're optimistic. But again, you know, the son still has his job and the father still has his pension from the company. It's not the same story when you look at many people at GM and Chrysler.
But what the son is doing, he's part of the team developing the 2010 Taurus. And this is Ford's effort to totally revamp its image, make itself cool, market itself more to American buyers and buyers around the world, really, Tony, because they've got to increase that market share to compete against the foreign automakers. But at the same time, Ford hasn't gone through bankruptcy, but it still has had to lay off a lot of workers.
And, you know, on top of that, Tony, we got news today, look at the numbers, right. In Michigan, where Ford is based, along with the other two of the big three, you've got 17.1 percent unemployment in Detroit proper, 15.2 percent unemployment across this state. That's the highest statewide unemployment rate in the country, Tony.
So, some bright spots for some autoworkers, but for others, you know, they're losing their job, Tony. But you can see the full story and a lot of our other Detroit coverage because it's so important to take a close look at this city. It's all right there on the site, Tony.
HARRIS: Wow, 17.1 percent in the metro. What are folks doing there in Detroit? It's just . . .
HARLOW: Right. And a host of underemployed. We can't forget about that. People that aren't making enough.
HARRIS: Exactly.
All right, Poppy, appreciate it. Thank you.
HARLOW: Sure.
HARRIS: You know, one of the keys to paying for any new health care plan is cracking down on fraud. And that is just what's happening across the country.
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HARRIS: Medicare fraud costs the United States billions of dollars each year. This week, a nationwide investigation resulted in 32 arrests in four states, including Texas. That's where Leigh Frillici of CNN affiliate KHOU picks up the story from Houston.
(BEGIN VIDEOTAPE)
LEIGH FRILLICI, KHOU-TV CORRESPONDENT (voice-over): It wasn't the type of delivery that medical supply store executives and doctors were expecting. In fact, boxes were being hauled out, not in, at Memorial Medical Supply, as federal, state, and local investigators raided this store. At the same time, the same scenario was playing out at 11 other locations across the greater Houston area. Investigators were gathering evidence of Medicare fraud at several local businesses. That cost us taxpayers nearly $16 million.
It was all part of a four-state crackdown that extended from Houston to Louisiana, from Boston to New York. Indictments that came down last week also led to the arrests of 26 of the 32 doctors and health care professionals who were charged with Medicare offenses, including billing for medical supplies patients didn't need and, in some cases, didn't even get.
UNIDENTIFIED MALE: Some have to do with electric wheelchairs. Some have to do with what we call orthotic kits. And some have to do with liquid feeding systems.
FRILLICI: We pored through the indictment to learn more about the alleged scheme. In one case, a defendant is accused of ordering a feeding tube for a patient diagnosed with anorexia. The patient was actually obese, weighing nearly 400 pounds and didn't need a feeding tube. Another defendant is accused of obtaining doctors' prescriptions for people who were already dead.
GERALD TREECE, LEGAL EXPERT: Well, it's not the patient that's committing the fraud. It's the health care providers who are providing care to people who don't need it. It doesn't even help the patient. It just enriches the coffers of the health care provider.
FRILLICI: Making them millions of dollars richer, according to the government. Now, what federal investigators sniffed out has landed over two dozen medical professionals in custody.
(END VIDEOTAPE)
HARRIS: And those arrested this week are scheduled to make their first court appearances today.
We are pushing forward now with the next hour of CNN NEWSROOM with Kyra Phillips.
