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Toyota Troubles; Decision on Bail for Americans; Stimulus Anniversary
Aired February 17, 2010 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: Checking the other top stories right now.
Those 10 Americans held in Haiti may get out of jail today. A judge is expected to make a decision on bail. His ruling was delayed because of a courthouse power outage. The group is accused of trying to kidnap 33 Haitian children. We're going to have a live report from Port-au-Prince in just a few minutes.
An unfortunate end to the search for a hiker on Mount St. Helens. A helicopter pilot actually pulled the body of 52-year-old Joseph Bohlig from that crater. He fell 1,500 feet, we're told. An autopsy will determine if it was that fall that killed him. Bohlig's father said he was sorry he's gone but at least his son died doing something that he loved.
Teachers told to do more work or lose their jobs. It's happening at Central Falls High School in Providence, Rhode Island. The superintendent wants to add 25 minutes to the school day, have teachers tutor kids after school and meet them once a week for lunch.
(BEGIN VIDEO CLIP)
FRANCES GALLO, SCHOOL SUPERINTENDENT: We have a serious problem when you have a 48 percent graduation rate. We lose more children than we graduate. That's inappropriate. And it's happening for a long time over a long period of time.
(END VIDEO CLIP)
PHILLIPS: The teachers have said no to that plan. Now they could be fired. The state's education commissioner could decide as early as Friday.
What a difference a year makes, right? It totally depends on who you asked. On this one-year anniversary of President Obama signing the American Recovery and Reinvestment Act, you remember the hopes held out by the president on the landmark legislation.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I hope this investment will ignite our imagination once more, spurring new discoveries and breakthroughs in science, in medicine, in energy, to make our economy stronger and our nation more secure and our planet safer for our children.
(END VIDEO CLIP)
PHILLIPS: The president pledging the $787 billion stimulus would create or save 3.5 million jobs over the next two years.
There's no shortage of words or speakers on behalf of the federal stimulus. On its one-year anniversary look who's talking about it today. At least six stimulus-related events slated across the country, just to promote it, not to mention the president himself who's set to talk in just a few minutes.
All right. Let's get straight to CNN White House correspondent Dan Lothian. He is live in Washington. So, Dan, the administration, of course, touting the benefits of the stimulus but still there's a lot of critics out there.
DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: There really is. And you've heard that from Republicans who believed that the stimulus was a waste of money and had it did not lived up to the promise of this administration of creating millions of jobs. And there is skepticism out there among the American people as well.
In a recent CNN poll conducted last month, 36 percent of Americans felt that the money did not help the economy at all. About 63 percent felt that the projects included in the stimulus were for political reasons and did not benefit the economy.
So this is something that there's a lot of skepticism, but there's a big divide here between what the American people are obviously satisfying and what this administration believes.
They are touting that there are clear benefits to the stimulus between 1.5 to 2 million jobs saved or created. We're expecting to hear that positive tone from the president when he speaks in less than a half hour or so. And others from this administration touting this as well.
Robert Gibbs, the White House Press secretary who just recently started tweeting has been sending around an article from "The New York Times" this morning, which is quite positive of the stimulus pointing out that, yes, it is not perfect but it certainly has helped. And that's what this administrations is saying. There's still a long way to go. Jobs have been created but that the stimulus has played a key role in stabilizing the economy, Kyra.
PHILLIPS: All right. Well, Dan Lothian, the president is set to speak in about 20 minutes. We'll check in with you after that. He's going to talk about the stimulus act. So stay with us and we'll bring you his remarks live right here on CNN.
Also theory versus reality. We're going to break down the stimulus job numbers compared to President Obama's projections. Our stimulus desk crunching the figures. We'll have more in less than 20 minutes. There's just no putting the brakes on complaints about Toyota. Now it's the Corolla. 2009 and 2010 models are already part of the accelerator recall, but now complaints are coming in about power steering problems.
(BEGIN VIDEO CLIP)
SHINICHI SASAKI, VICE PRESIDENT, TOYOTA (through translator): We will make a recall of Corolla if this is a problem that threatens the safety. But if it is not, we will provide the usual repair service based on customer complaints.
(END VIDEO CLIP)
PHILLIPS: Toyota also now announced today that they're deploying quality control officers around the globe. Congress wants to know more about these plans and the original recall, but company president Akio Toyoda says that he won't testify. Instead the company's North American chief will take the bullet.
And once again, we are waiting for the president to speak live. We will take that as soon as he steps up to the mike.
And this could be decision day in Haiti. Ten Americans held for trying to take dozens of Haitian children out of the country may find out whether a judge will grant them bail. CNN's John Vause is following the story in Port-au-Prince for us. John.
JOHN VAUSE, CNN SR. INTERNATIONAL CORRESPONDENT: Good morning, Kyra. You may recall on Monday they were actually meant to have some decision on this bail hearing, but it was all delayed because there was no electricity to this building behind me which meant that the prosecutor can't print out his brief, in fact, which was his recommendations to the judge.
Well, we just checked a short time ago. There's still no electricity in this building. We're told that it should be on fairly soon. When it is, then the attorney general, the prosecutor essentially, will print out that brief, hand it to the judge. He still isn't here yet. We're being told that once the judge gets here, they should only need a couple of hours, two or three hours at most to review those recommendations coming from the prosecutor and then the judge will either say yes or no to bail.
Now, either all 10 Americans will be allowed to leave or maybe some will be allowed to leave. Some may have to stay in Haiti. Others may actually be allowed to leave the country. At this stage, we just don't know what the conditions the judge will put on this bail.
I know we said this on Monday but we are expecting some kind of decision hopefully here within the next couple of hours, but there is this process that must take place, Kyra.
PHILLIPS: John Vause, we'll track it. Appreciate it.
Out of the rubble and into the heart of Stevie Wonder.
(MUSIC PLAYING)
STEVIE WONDER, MUSICIAN/COMPOSER (singing): I am hoping you enjoy this keyboard that I'm giving you.
PHILLIPS: A blind quake survivor strikes a chord with the music legend. You'll see the exclusive report coming up.
ROB MARCIANO, AMS METEOROLOGIST: And I'm Rob Marciano at CNN's severe weather center. We're tracking the cold air as it continues to pour down to the south. There will be a warm-up and there will be more cold air. The complete forecast coming up in just a few minutes.
(COMMERCIAL BREAK)
PHILLIPS: Waiting for Obama to comment on the anniversary of the $787 billion stimulus bill. As soon as he steps up to the mike, we'll take it live.
(COMMERCIAL BREAK)
PHILLIPS: All right. Rob Marciano, things looking any better than the last time we chatted?
MARCIANO: Well, you know, if we go back to yesterday, yes, but things haven't improved a whole lot from about half an hour ago with the exception of the fact that it has warmed up just a little bit. So places like New Orleans into the lower 40s as they get into Lent after Mardi Gras. 30 degrees right now in Atlanta, so definitely a chilly start.
You know February, we should start to see down across the south or at least the mid-south, you know, it's mid-February until the end of February, at least the trees start to bloom, if not all the flowers. And we get into our famous early spring, but that certainly hasn't happened.
Cold air continues to pour down to the south, all wrapping around this exiting low pressure. And with that happening, we're looking for lake-effect snows as well. Across the center part of the country, this is all warm air and that's sliding a little bit to the east but briefly. We're going to get into a pattern that will bring in another shot of cold air. We'll talk more about that in just a sec.
Today's daytime highs mid-50s in Dallas, 44 expected in Atlanta. 32 in Chicago, 56 degrees in Seattle. So that's pretty toasty. Across parts of the northeast, we're looking at lake-effect snow showers. These aren't terribly intense. Also in February we start to see the waters of the Great Lakes start to get cool, it doesn't create that instability and we don't get that real bang for your buck as far as lake-effect snow goes. And also some of the lakes including Lake Erie are mostly frozen over.
Pittsburgh looks like it's getting a little bit of snow. I think I ordered up a tower cam from there. Here we go. Let's take a look at that. Looks awfully snowy, doesn't it? WPXI is our affiliate out that way. 38.5 inches of snowfall so far this month and we're only halfway through. It looks like they're going to break their all-time record for any month as far as snow goes in Pittsburgh. And you have more snow in the forecast for today.
By the way, if you are looking at travel problems, San Francisco seeing a ground stop for the next hour or two and New York JFK is reporting 25-minute delays at this hour. Let's talk more about where this storm is going from the west. It's going into the intermountain west. So you folks are going to get a little dusting of snow tonight and tomorrow, maybe a few inches at the higher elevations.
And this will be the precursor of a bigger storm I think that's coming to not only the intermountain west but the Pacific Northwest through the weekend. All right, the southeast cold will move out slowly over the next couple of days. It looks like a good weekend. But then another arctic air blast comes in first across the midsection over the weekend and then sliding across the southeast the beginning of next week. So spring is on hold at least for now.
PHILLIPS: All right. I guess that's good. Good for skiers, not so good for those that want a little warmth, especially here in Atlanta, right?
MARCIANO: Exactly.
PHILLIPS: OK, Rob, thanks.
MARCIANO: See you.
PHILLIPS: Out of the rubble and into the heart of Stevie Wonder.
(BEGIN VIDEO CLIP)
WONDER: I am hoping you enjoy this keyboard that I'm giving you.
(END VIDEO CLIP)
PHILLIPS: A blind quake survivor strikes a chord with this music legend.
(COMMERCIAL BREAK)
PHILLIPS: Out of the rubble and into the heart of Stevie Wonder. Last month we told you about Romel Joseph, a blind violinist, Julliard trained, trapped in the rubble of his Haitian music school that he created for underprivileged kids. Well, he's one of the lucky ones. He was rescued and taken to a Miami hospital for treatment, but there was still something missing for Romel, until the U.N.'s messenger of peace and music icon Stevie Wonder saw our story. Our own reporting legend, John Zarrella is the one that told us that story and he's got our follow-up today. Hey, John.
JOHN ZARRELLA, CNN CORRESPONDENT: Hi, Kyra. Well, you know, so far Romel Joseph has had 11 surgeries on his two damaged legs and his left hand. What he told us when we talked to him three weeks ago was he wanted an instrument that he could play that would help strengthen his left hand.
Well, you know, you and your team were instrumental in helping make that happen.
(BEGIN VIDEOTAPE)
ZARRELLA (voice-over): For 18 hours Romel Joseph lay buried in the rubble of his music school in Port-au-Prince. For 18 hours until his rescue, the concert violinist stayed alert and alive going over in his head one by one every concerto at every concert hall he'd ever played.
Romel was badly broken. His legs crushed, bones in his left hand shattered. But the concrete that covered him would not, could not kill him.
ROMEL JOSEPH, VIOLINIST: I thought my time was up under the ground and god says no, you have things to do.
ZARRELLA: Three weeks ago we met Romel who is legally blind for the first time. He mentioned he'd like a keyboard to help strengthen the fingers in his left hand so that some day he could again play the violin. Stevie Wonder heard and answered Romel's request.
WONDER: What better way to really express our god's love than to give something that is special to you to someone else who is in need. So that's why I did what I did.
ZARRELLA: Wonder's keyboard was packed and shipped, arriving Tuesday at Miami's Jackson Memorial Hospital. Romel didn't know it was on the way.
ZARRELLA (on camera): Romel.
JOSEPH: Yes, sir.
ZARRELLA: Hey, John Zarrella from CNN. How are you?
JOSEPH: Oh, my goodness.
ZARRELLA: It's go good to see you again. You look terrific. I think we have something for you.
JOSEPH: Oh, it came?
ZARRELLA: It came. It's coming in the door right now.
JOSEPH: Oh, my goodness.
ZARRELLA: Now who sent this to you?
Stevie Wonder.
JOSEPH: Oh. ZARRELLA (voice-over): As the keyboard was set up, Romel was carefully moved to a wheelchair.
UNIDENTIFIED MALE: The chair is over here.
JOSEPH: OK.
UNIDENTIFIED MALE: So I'm going to have you go sideways. Keep your legs on the bed.
ZARRELLA: He sat over the keyboard, his legs, one held together with metal rods, resting on pillows.
JOSEPH: I'll play something.
ZARRELLA: He began to play. Of course a Stevie Wonder song. Even the fingers on his damaged left hand glided across the keys with a gentle touch.
Stevie Wonder also sent a message.
WONDER: Romel, I am hoping you enjoy this keyboard that I'm giving you. I used it on the last project that I did.
JOSEPH: I would like to really thank him, Stevie Wonder, for his generosity and I'll be practicing on the keyboard every day to keep my fingers going.
ZARRELLA: Romel will be out of the hospital soon. When that happens he'd like nothing more than to play a concert for Haiti. He on the violin and Stevie Wonder on the keyboard.
JOSEPH: I mean, you know, nothing is impossible.
(END VIDEOTAPE)
ZARRELLA: Now March 5th there will be a benefit concert here in south Florida where they hope to raise money so that Romel can begin the rebuilding process of his school. You know, Kyra, he says that as soon as he's able, he plans to go back to Haiti and start that rebuilding process. Kyra.
PHILLIPS: Wow, no doubt. We've got another follow-up and that will hopefully be the concert where Romel and Stevie play together.
ZARRELLA: Yes, indeed.
PHILLIPS: And you know, John, it caught my attention at the end of the piece, Romel said, you know, anything is possible. And you know, that's exactly what Stevie Wonder's mom told him when he was a little boy. You know, when he was dealing with being blind and he loved music and she told him that his entire life until the day she passed away. So these two are definitely connected in body, mind and spirit, aren't they?
ZARRELLA: They are kindred spirit. There's no question about it. When you listen to the things that Stevie said in his interview and the things that Romel said in his interview and the time I spent with him, there are many similarities.
PHILLIPS: Well, this is what our job is all about. John Zarrella, thank you so, so much.
On the one-year anniversary of the stimulus act being signed into law, President Obama about to give us his thoughts live and we'll take you there.
Plus we crunch the numbers, theoretically versus the reality when it comes to the American Recovery and Reinvestment Act.
(COMMERCIAL BREAK)
PHILLIPS: Top stories. It's back to Juarez today for the Mexican president. He is battling the country's growing violent drug cartels, blamed for much of the murder and mayhem in the border town. More than 4,500 people have been killed in Juarez since January, 2008.
Michael Steele, chairman of the Republican National Committee reportedly playing peacemaker with the tea party. Yesterday, Steele met with the leaders of the grassroots conservative movement for hours. He pledged to its members that Republicans will stay out of the local races. Some tea party members feel the GOP may try to swallow the movement for the political gain of Republican candidates.
PHILLIPS: And just in case you're wondering why you're seeing so many blackened foreheads today, bearing the sign of the cross, it is after all Ash Wednesday, which marks the start of the Christian season of Lent and the 40 days of fasting and prayer that precede Easter.
A year as gone by, a couple hundred billion dollars has been spent, but how many jobs has the stimulus actually created? You hear wildly different claims and our Josh Levs is here hopefully with some answers. Josh.
JOSH LEVS, CNN CORRESPONDENT: Hi there, Kyra. You know what I like to do, I like to come along with the obvious fact like here's an actual number. Unfortunately when it comes to claims about the stimulus it's really easy for all sides to make different claims because some things are murky. But what I can do is drill down for you the most specific things we have, which is probably the biggest question surrounding the stimulus.
Let's start off with this. Today marks the one-year anniversary of the president signing it into law. Let's take a look at something he said last year about jobs.
(BEGIN VIDEO CLIP)
OBAMA: It will create or save 3.5 million jobs over the next two years. We are putting Americans to work doing the work that America needs done. (END VIDEO CLIP)
LEVS: So there we want to see 3.5 million jobs over two years. The White House can say, you know what, we're really well on our way because what they have been saying often lately is that two million people are working, who would not be working if it wasn't for the stimulus. But then there's another side. Let's do this.
The White House council of economic advisers, this is inside the White House. It is what it sounds like. The Council of economic advisers, they are estimating that employment is 1.5 to 2 million jobs higher than it would have been without the stimulus. So that's one place where the government, the administration can point to.
There's something else too. The Congressional Budget Office, they are non-partisan, they keep an eye on all sorts of figures, all sorts of size inside Congress. Take a look here, CBO says anywhere between 800,000 and 2.4 million jobs could be attributed to the stimulus.
When you look at that, that's a giant spread there. I mean we're talking about this versus triple it. So how are they deciding this? All they can do is estimate which is why none of those figures are ultimately that specific. Now, we have some video because I do want to point out, look, it is a hard fact, some people are working because of the stimulus. We've been reporting on this at the stimulus desk repeatedly.
There are groups out there that are using money to pay for stimulus jobs. In fact recently the latest report on recovery.gov recipients of that money said they funded about 600,000 jobs with the stimulus money. But all they had to say was that they funded those jobs. They did not have to say they would never have had those jobs if it wasn't for the stimulus. That's why this gets complicated.
I want to show you another side here. There's a quote here we have for you from the Heritage Foundation. This is a conservative think tank. They have openly opposed the stimulus. And they are arguing that overall it has not improved employment in America. This is a quote here that they gave to politifact.com. They say that money would have been spent somewhere else in the economy. The effect is that you are going to cancel stuff out. That's why unemployment numbers, they say, are not ultimately going down because it did not do what it said it was going to do.
So that's what their argument is on that side. It would be great if we could come along and say factually this is right, this is wrong. All I can tell you, Kyra, is that the analysis out there says there that there certainly are jobs funded by the stimulus but hypothetically where we would be if this had not happened and the government had used money in a different way, we will never, ever know. So both sides get to make their arguments there.
PHILLIPS: A lot of viewers weighing in on this as well, telling good and bad stories, how it's helped, how it's not helped, where's the money, why is it being spent certain ways. LEVS: Yes, they are all over this. And now, I'm going to show you in a second how you can weigh in. But let's go to the computer here because I just want to show you a couple of examples of are folks have been saying. First, I want to take a look at the blog here. This one is from Kristi of South Carolina.
"Because of the stimulus package and the first time home buyer credit our family was able to by our first home. Even though the economy has been tough on many, it has actually helped us. We are very lucky." Let's go to my twitter page, this is more what we're seeing. We're seeing a lot more complaints. "Raised my national debt and increased size of government. Even Bush's checks helped me more than this."
Let's show how you can weigh in. We've got conversations going everywhere. We got the blogs, CNN.com/Josh or CNN.com/Kyra, also Facebook and Twitter, JoshLevsCNN. I will tell you on balance, a lot more people are saying they don't feel in their own lives that stimulus has made their lives better. Then again, a lot of it is yet to be spent. So let's see what happens over the next year.
PHILLIPS: All right. Josh, thanks so much.
LEVS: Got it.
PHILLIPS: You can see right there at the bottom of the screen, the vice president actually speaking first and then we'll take the president live as soon as he steps up to the mike to talk about exactly what Josh was mentioning, the stimulus plan, and see what he has to say after criticism - both praise and criticism.
Well, the Wall Street roller coaster trying to make sense of the battle between the bulls and the bears. We'll talk about that right after a quick break.
(COMMERCIAL BREAK)
PHILLIPS: Still waiting for the president to step up to the mike there and talk about the one-year anniversary of the stimulus act being signed into law, but we wanted to point out in case you're wondering, you can see the vice president there, obviously a Roman Catholic. You see the little blackened forehead. That's because he is bearing the Sign of the Cross. It's Ash Wednesday, which marks the start of the Christian season of Lent. And then there's 40 days of fasting and prayer that precede Easter.
We'll take the president as soon as he steps up to the mic.
Don't look now, but stocks are advancing again after a pretty impressive rally yesterday. Right, Allison Kostic?
ALISON KOSTIC, CNN BUSINESS CORRESPONDENT: Exactly. I'll tell you what, the market has come pretty far pretty fast, Kyra. Yesterday's rally that you're talking about was the third triple-digit gain for the Dow in five sessions. Think about it. Last Monday the Dow closed at its lowest point for the year, just below the 10,000 mark. Today it's around 10,300. It's definitely made some headway.
The rebound is all about confidence. And that's the bottom line. Debt problems in Europe, I'm talking about specifically Greece, they look like they're under control. What that means is that investors here can focus again on corporate results, which have been really solid throughout this fourth-quarter earnings season.
Yesterday, we got results from Merck. They came in with big profits, driving the Dow to its biggest one-day gain since November, Today we got better-than-expected results from Deere and Whole Foods. That's helping to keep this rally going.
Let's take a look. The Dow Industrials up 35 points, the NASDAQ about 8 points higher. Kyra?
PHILLIPS: All right, appreciate it. You know, this is just a five-day snapshot, right? What does it mean for everyday people that the market has actually rebounded?
KOSTIC: I know. We often feel like we're on a roller coaster ride, of course. Despite the day-to-day swings, Kyra, the rebound really is an important sign to a lot of people that the market is a more stable investment again. Everyday people, who can forget, fled the market when the financial crisis hit in late 2007 and early 2008.
And on Friday, investment research firm Morningstar reported that investors, they're starting to put their money back into the market, so those jitters are kind of going away. Listen to this, Kyra, in January, they poured an extra $2.7 billion into domestic stock mutual funds. That's a lot of money. Investors had had been steadily pulling their money out of those funds for four straight months, so that confidence in the market is definitely coming back. Kyra.
PHILLIPS: All right, Alison Kosik, thank you so much. Now we want to take you live to the vice president, still speaking there at the mike getting ready for the president of the United States to step up to the mike. We heard him say "in conclusion," so we are assuming he's going to wrap up.
As soon as the president is ready, he's going to be talking about the one-year anniversary of the stimulus act being signed into law. We've been talking a lot about the Recovery and Reinvestment Act. And the billions of dollars that Americans have been receiving across the U.S., hoping to jump start the economy. Let's listen in.
(JOINED IN PROGRESS)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Please have a seat. Thank you very much.
(APPLAUSE)
Thank you to -- to Blake and Chuck. And thank you to my outstanding vice president and his extraordinary team that have done just a great job managing this program.
I want to begin by recalling where we were one year ago. Millions of jobs had already been lost to the recession before I was sworn into office. Another 800,000 would be lost in the month of January. We'd later learned that our economy had shrunk by an astounding 6.4 percent in the first quarter of 2009.
And economists from across the political spectrum warned that if dramatic action was not taken to break the back of the recession, the United States could spiral into another depression.
That was the backdrop against which I signed the American Recovery and Reinvestment Act in Denver, with Blake alongside. It certainly wasn't a politically easy decision to make for me or for the members of Congress who supported it.
And let's face it: No larger expenditure is ever that popular, particularly at a time when we're also facing a massive deficit. But we acted because failure to do so would have led to catastrophe. We acted because we had a larger responsibility than simply winning the next election. We had a responsibility to do what was right for the U.S. economy and for the American people.
And one year later it is largely thanks to the Recovery Act that a second Depression is no longer a possibility.
It's one of the main reasons the economy has gone from shrinking by 6 percent to growing about 6 percent. And this morning we learned that manufacturing production posted a strong gain. So far the Recovery Act is responsibility for the jobs of about 2 million Americans who would otherwise be unemployed.
These aren't just our numbers. These are the estimates of independent, nonpartisan economists across the spectrum.
Now, despite all this, the bill still generates some controversy. And part of that is because there are those, let's face it, across the aisle who have tried to score political points by attacking what we did, even as many of them show up at ribbon-cutting ceremonies for projects in their districts.
(LAUGHTER)
(APPLAUSE)
But if -- part of the controversy also is, is that, despite the extraordinary work that has been done through the Recovery Act, millions of Americans are still without jobs.
Millions more are struggling to make ends meet. So it doesn't yet feel like much of a recovery.
And I understand that. It's why we're going to continue to do everything in our power to turn this economy around.
Now, the truth is, the Recovery Act was never intended to save every job or restore our economy to full strength. No bill or government program can do that. Businesses are the true engines of growth. Businesses are the engines of job creation in this country. They always will be.
But during a recession, when businesses pull back and people stop spending, what government can do is provide a temporary boost that puts money in people's pockets and keeps workers on the job, cuts taxes for small businesses, generates more demand, gives confidence to entrepreneurs that maybe they don't have to cut back right now, maybe they can hold steady in their plans and in their dreams. That's exactly what we've been able to do with the Recovery Act.
And I just want to point this out: There has never been a program of this scale moved at this speed that has been enacted as effectively and as transparently as the Recovery Act.
I'm grateful that Congress agreed to my request that the bill include no earmarks; that all projects receive funding based solely on their merits.
And despite that, I was still concerned -- Joe and I were just talking in the back, when this thing passed, we said $787 billion, somewhere there's going to be some story of some money that ended up being misspent. $787 billion spent out over 18 months, that's a lot-- that's a lot of money. And it is a testimony to Vice President Biden and his team that, as Joe puts it, the dog so far at least hasn't barked.
(LAUGHTER)
This team has done an outstanding job overseeing the Recovery Act. It doesn't mean that everything's been perfect, but when you think about the scope, the magnitude of this thing, this program has run cleanly, smoothly, transparently.
We brought in one of the toughest inspector generals in Washington, as well as professionals from private industry, to help run the implementation.
OBAMA: And every American can see how and where this money has been spent just by going on www.recovery.gov.
Now, just to review, one-third of the money in this bill -- one- third was made up of tax cuts -- I talked about this in the State of the Union -- tax cuts for 95 percent of working Americans. I just want to say to the American people, because we see some polling where about twice as many people think we've raised taxes as lowered taxes, 95 percent of you got a tax cut. Tax cuts...
(APPLAUSE)
... tax cuts for 95 percent of working Americans, tax cuts for small businesses, tax cuts for first-time homebuyers, tax cuts for parents trying to raise -- trying to care for their kids, tax cuts for8 million Americans paying for college. So far, we're provided $120billion in tax relief to families and small business.
Now, up until this point, I've never met a Republican who didn't like a good tax cut.
(LAUGHTER)
But you remember when I mentioned this at the State of the Union, Joe, they were all, kind of, squirming in their seats. They weren't sure whether to clap or not...
(LAUGHTER)
... because most of them had voted against all these tax cuts, which I thought was -- it was interesting to watch.
(LAUGHTER)
The second third of this bill was made up of relief for those who have been most affected by this recession. We've extended or increased unemployment benefits for more than 19 million Americans. We made health insurance 65 percent cheaper for families who lost their jobs and had to get temporary coverage through COBRA. And we gave relief to states that were struggling to balance their budgets: relief that has allowed 300,000 teachers and education workers to keep their jobs, as well as tens of thousands of cops and firefighters and first responders and correctional officers.
And Joe Biden will tell you that not one of the 50 governors we've spoken to, Democrat or Republican, have failed to show appreciation for this relief.
And I also have to tell you that I am concerned because state budgets have not yet recovered and you're now seeing a whole bunch of state and local governments who were able to put off layoffs last year as the recovery money is running out, having to make some very tough decisions, and we could potentially see layoffs taking place this year because we haven't re-upped in terms of providing some help to those states and local governments. That's something that we're watching and we're concerned about.
OBAMA: Now, the last third of the Recovery Act is what I wanted to talk a little bit about more today. It's the reason Blake and Doug are here. And that third is about rebuilding our economy on a new and stronger foundation for growth over the long term.
See, we knew when we came into office that it wasn't enough simply to solve the immediate crisis before us. We knew that even before the crisis hit we'd come through what some people are calling the lost decade, a period where there was barely any job growth and where the income of the average American household declined. This was before the recession. Over the course of the decade, the average American household, they saw their incomes decline even as the cost of health care and college tuition were skyrocketing, had reached record highs. The prosperity was built on a little more than a housing bubble and on financial speculation: people maxing out on their credit cards, taking out home equity loans.
We can't go back to that kind of economy. That's not where the jobs are.
The jobs of the 21st century in areas like clean energy and technology, advanced manufacturing, new infrastructure. That kind of economy requires us to consume less and produce more; to import less and export more. Instead of sending jobs overseas, we need to send more products overseas that are made by American workers and American businesses. And we need to train our workers for those jobs, with new skills and a world-class education.
Other countries already realize this. They're putting more emphasis on math and science. They're building high-speed railroads and expanding broadband. They're making serious investments in clean energy because they want those jobs.
And America cannot stand still in the face of this challenge. We can't afford to put our future on hold.
So that's why a big part of the Recovery Act has been about investing in that future. Yes, it created jobs now. Yes, it created business opportunities now. But, more importantly, it's laying the foundation for where we need to go.
So instead of just pouring more money into America's schools regardless of their performance, we launched a national competition between states that only reward success and reform: reform that raises student achievement and aspires students to excel in math and science, and turns around failing schools -- failing schools that steal the future of too many young Americans.
We're also making sure that our nation has an infrastructure that's built to compete in the 21st century. So we now have projects in 31 states that are laying the ground for the first high-speed rail network in the United States of America.
For years, Japan, Europe have had high-speed rail. China's got about 40 times as many projects that have been going on on this front. We're playing catch-up. We shouldn't be.
The Recovery Act has made possible over 12,500 transportation construction projects, from rebuilding highways to improving our airports. And today we announce funding for over 50 innovative transportation projects across America, everything from railroads in Appalachia to a new passenger terminal in New Orleans.
These projects will put hundreds of thousands of Americans to work, and in many cases they already have. That -- that's part of the reason that Chuck's here today. He's the president of a construction company in Pennsylvania, and the Recovery Act will fund about a third of the work his paving company will do this year. That's allowed him to hire two engineers and about a hundred employees. So in case people are wondering whether or not the Recovery Act's created jobs and opportunity for businesses, talk to Chuck.
(LAUGHTER)
The new equipment he's ordered to help pave these roads will save additional 40 jobs on an assembly line out in California.
These are well-paying, long-lasting private sector jobs that wouldn't be possible without the Recovery Act. They'll be doing the work that America needs done to stay competitive in a global economy.
No area is this more important than in energy. Because of the Recovery Act, we have finally jump-started the clean energy industry in America and made possible 200,000 jobs in the clean energy and construction sectors.
Just take one example. Consider the investment that we've made in the kind of batteries used in hybrid and electric cars. You've heard about these, all right?
(LAUGHTER)
Before the Recovery Act was signed, 98 percent of the world's advanced battery production was done in Asian countries. The United States did less than 2 percent of this advanced battery manufacturing that's going to be the key to these high-mileage, low-emission cars.
Then we invested in new research in battery technologies and supported the construction of 20 battery factories that will employ tens of thousands of Americans; batteries that can make enough -- factories that can make enough batteries each year to power half a million plug-in hybrid vehicles.
So, as a result next year -- next year -- two years after the Recovery Act, the United States will have the capacity to produce nearly 20 percent of the world's advanced batteries. From less than 2percent to 20 percent. And we'll be able to make 40 percent of these advanced batteries by 2015. An entire new industry, because of the Recovery Act.
And this kind of progress is happening throughout our clean energy sector.
Yesterday I announced loan guarantees to break ground on America's first new nuclear power plant in nearly three decades, a plant that will create thousands of construction jobs and 800permanent jobs in years to come.
There's the manufacturer in Philadelphia who makes energy- efficient windows. He used to be skeptical about the Recovery Act until he had to add two more shifts just to keep up with the new business it's created.
And Blake at Namaste Solar -- it's based in Boulder, Colorado. One year ago, Blake gave us a tour of one of his company's solar installations on top of a museum in Denver, right before I signed the Recovery Act into law. And at the time Blake was pretty sure that the recession would force him to lay off about half of his staff.
One year later, because of the clean energy investments in the Recovery Act, he has instead added about a dozen new workers and expects to hire about a dozen more by year's end.
His company continues to install solar panels all over Colorado, from the governor's mansion to the Denver Museum of Natural - Nature and Science.
So that's our future. That's what's possible in America.
And you can argue, rightly, that we haven't made as much progress as we need to make when it comes to spurring job creation.
That's part of the reason why the Recovery Act is on track to save or create another 1.5 million jobs in 2010. That's part of the reason why I expect Congress to pass additional measures as quickly as possible that will help our small-business owners create new jobs ,give them more of an incentive to hire.
But for those skeptics who refuse to believe the Recovery Act has done any good, who continue to insist that the bill didn't work, I'd ask you to take that argument up with Blake and his employees, take that argument up with Chuck and his construction workers, take it up with the Americans who are working in those battery plants or building those new highways or teaching our children new skills, all because the Recovery Act made it possible.
So our work is far from over, but we have rescued this economy from the worst of this crisis. And slowly, in new factories and research facilities and small businesses, the American people are rebuilding a better future.
And we will continue to support their efforts. We will leave our children an economy that is stronger and more prosperous than it was before.
Thank you very much, everybody.
(APPLAUSE)
PHILLIPS: All right, the president of the United States one year after he signed the Stimulus Act into law. We've been talking so much about the Recovery and Reimbursement Act, where the money is going, the critics that are still out there saying it's not enough, it's too much, it's been wasted.
We'll continue to discuss it, obviously, but one year in. We'll see how it goes from here. We'll be right back.
(COMMERCIAL BREAK)
PHILLIPS: Building up America, a restaurateur in Harlem isn't just serving up good food. He's got jobs on the menu. CNN's Anderson Cooper pays it a visit.
(BEGIN VIDEOTAPE)
COOPER (voice-over): Harlem, long the epicenter of African- American culture has seen its share of hard times. Central Harlem is one of the poorest neighborhoods in New York City and during this recession it owns the city's highest unemployment rate. More than one- third of the people now live in poverty.
Joe Holland is determined to change that.
(on camera): So why did you come to Harlem? You didn't grow up here. You went to Harvard Business School. You probably could have had a lot of different opportunities. Why did you come to Harlem?
JOE HOLLAND, OWNER, "GOSPEL UPTOWN": It was out of a sense of wanting to get back to my community. I believe in the biblical mandate, "To whom much is given, much is required." And I saw Harlem as a place where I could make a difference.
COOPER (voice-over): Joe and his business partners, his sister and brother-in-law own and operate "Gospel Uptown", a soul-food restaurant with a twist.
(on camera): What was the vision? You wanted more than just a restaurant? HOLLAND: Yes. We see it as a live music, fine dining destination; a throw-back to the Harlem renaissance where you had the great places, small paradise, the cotton club.
COOPER (voice-over): Joe was close to realizing his dream and investors were lined up, then the economic crisis hit.
HOLLAND: We had qualified a number of people ready to go in the fall of 2008. We went forward and signed the lease, and then the economy went crazy, and the portfolios started to shrink and everybody backed up.
COOPER: Joe didn't give up and eventually secure aid federally backed small business loan. He now employs more than 50 people.
HOLLAND: There's kitchen and wait staff, bar staff, hostesses and we're an entertainment destination, so we have production staff. We have sound engineer, light engineer.
COOPER: Joe hosts several bands and individual artists at his restaurant showcasing homegrown Harlem talent.
(on camera): It has to feel good to be in the community and say I've been able to employ 50 people.
HOLLAND: Yes. That's really the key because I've been in this community for almost 30 years as a lawyer first and then a minister and entrepreneur, a government official, and what I've learned is the best thing that you can do for the community is to build the economic base and create jobs. COOPER (voice-over): Elsa Garcia is Holland's pastry chef. She was unemployed for two years before hired to create desserts for Gospel Uptown. What did you think when you finally got this job?
ELSA GARCIA, PASTRY CHEF, GOSPEL UPTOWN: It was my dream come true. I was so excited. A second income is what we needed. I have three children, and we had one income, my husband's income. It's helped a lot.
COOPER (voice-over): Joe knows the restaurant business is tough especially in New York City where businesses open and close almost daily. Tonight as he introduces a live musician by famed Jazz musician Jimmy Heath, Holland is thankful his dream of helping others is being fulfilled with an added bonus.
HOLLAND: That it would feel this good to have a great house with great music, people enjoying themselves, eating great food. This is really what it's all about. It's a dream come true.
COOPER: Business is picking up each month, he says. Holland wants to expand his restaurant to communities like Harlem around the country. Until then he's happy to personally impact those he's employed and help rebuild the community he's grown to call home.
Anderson Cooper, CNN, New York.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
PHILLIPS: All right. Tony Harris, you ready to pick it up from here?
TONY HARRIS, CNN ANCHOR: Yes, yes, we're going to spend a lot of time -- we put together a really terrific panel to talk about the stimulus, one year later -- I'm sorry, the Recovery Act -- one year later. All the names escape me.
No, I'm kidding, I'm kidding. It's a terrific panel. That's happening next hour. Have a great day, Kyra Phillips!
PHILLIPS: That's good. See you tomorrow. Thanks, Tony!
