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Legal Showdown Over Illegal Immigration; Obama's Export Push; Fifth Anniversary of London Subway Bombings; Justice Department Versus Arizona
Aired July 07, 2010 - 11:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
TONY HARRIS, CNN ANCHOR: Good morning, everyone! Live from Studio 7 at CNN World Headquarters, the big stories for this Wednesday include Arizona on defense.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: This my obligation to protect the citizens and families in my county in that this is directly tied to a public safety issue.
(END VIDEO CLIP)
HARRIS: OK. The Obama administration sues to stop the state's tough new immigration law from taking effect in three weeks.
Five years ago today, suicide bombers struck London's public transportation system, killing 52.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: I think it was pretty much a wakeup call for anyone in this group who is living in Britain, whether they want to admit it or not.
(END VIDEO CLIP)
HARRIS: How the terrorist attack prompted a radical to make a U- turn.
And live to the White House this hour. The president takes steps to sell more American-made products abroad to create more jobs at home.
Good morning, everyone. I'm Tony Harris.
Those stories and your comments right here, right now in the CNN NEWSROOM.
So, here we have it. It is the United States of America versus the state of Arizona. What is all that about a house divided? A legal showdown over the divisive issue of illegal immigration.
We will take a closer look at what's at stake and the basis for the Justice Department lawsuit. We will also examine the legal arguments on both sides.
And why hasn't the federal government passed immigration reform? Later, we delve into the politics and the push for legislation.
We begin with CNN's Casey Wian in San Francisco with the details of the lawsuit -- Casey.
CASEY WIAN, CNN CORRESPONDENT: Tony, the effort -- the fight over Arizona's effort to make illegal immigration a crime in the state has now moved to the federal courts.
(BEGIN VIDEOTAPE)
WIAN (voice-over): From the moment Arizona Governor Jan Brewer signed a controversial law expanding local police powers to crack down on illegal immigrants and their employers, a White House legal challenge seemed inevitable. Following 12 weeks of protests, boycotts and threats, the Justice Department is suing to block SB-1070 before it takes effect July 29th.
Attorney General Eric Holder said in a statement, "Setting immigration policy and enforcing immigration laws is a national responsibility. Seeking to address the issue through a patchwork of state laws will only create more problems than it solves."
Supporters of Arizona's law say the federal government has created the problem with its failure to solve the nation's illegal immigration crisis. One outspoken Arizona sheriff says his deputies won't stop arresting illegal immigrants because previous state laws have been upheld by federal courts.
SHERIFF JOE ARPAIO, MARICOPA COUNTY, ARIZONA: Lawsuits or no lawsuits, I'm going to continue enforcing the federal and state immigration laws.
WIAN: The law compels local police during a lawful stop, detention or arrest to check the immigration status of people they reasonably suspect are illegal immigrants. Brewer said in a statement, "The truth is the Arizona law is both reasonable and constitutional. It mirrors substantially what has been federal law in the United States for many decades."
The Obama administration's lawsuit does not address claims by Latino advocacy and civil rights groups that SB-1070 will encourage racial profiling and violations of all immigrants' civil rights. Those groups are suing Arizona as well.
REV. WARREN STEWART, FIRST INSTITUTIONAL BAPTIST CHURCH OF ARIZONA: I can guarantee you that civil rights and human rights organizations all over the world are rejoicing with us today that the federal government is suing the state of Arizona. Shame on our governor and legislators for causing this to happen to this state.
WIAN: The ACLU said in a statement, "The federal government has sent a clear message that it will not tolerate state laws that invite racial stereotyping." But 20 House Republicans signed a letter to Attorney General Holder saying the lawsuit " -- not only disregards the will of the majority of Arizonans, but also of the majority of Americans."
(END VIDEOTAPE)
WIAN: The lawsuit also alleges that the law, even before it's taken effect, is already interfering with the United States' relationship with Mexico and other nations. And it says that it interferes with the policy of this administration and previous administrations to only target for arrest and deportation those illegal immigrants who are considered to be the most dangerous -- Tony.
HARRIS: Casey, help me with this one. Is there any precedent to this federal challenge?
WIAN: Well, the federal government challenging the law is unprecedented, but Arizona has passed several laws over the last several years targeting illegal immigration. One would require -- one actually does require voters at the polls to show identification and make sure that illegal immigrants aren't casting votes. The other one requires businesses to use the federal government's e-verification system to make sure they're not hiring illegal immigrants.
Now, advocacy groups challenged both of those laws in federal courts, and so far they have withstood those court challenges.
HARRIS: OK.
CNN's Casey Wian for us in San Francisco.
Casey, good to see you.
Our senior legal analyst, Jeffrey Toobin, examines the argument that Arizona took action on illegal immigration because the federal government has not. He expects the case to eventually reach the U.S. Supreme Court.
(BEGIN VIDEO CLIP)
JEFFREY TOOBIN, CNN SENIOR LEGAL ANALYST: I think this is going to go up the appeals chain. I mean, I think this is going to go to the District Court in Arizona first, but it is then likely to be appealed to the Circuit Court of Appeals and very likely to the Supreme Court.
You know, I would like to take issue a little bit with what the sheriff said. You know, just because the federal government has not been fully successful in immigration, that's not necessarily a legal justification for overruling the supremacy clause.
If, for example, Mexico was really crossing the border and doing terrible things to people in Arizona, that wouldn't be Arizona's right to declare war on Mexico. The law says there are certain areas that are just reserved for the federal government, even if the federal government isn't doing the best job at it.
(END VIDEO CLIP) HARRIS: OK.
Emotions, as you know, running really high on both sides of this showdown over illegal immigration. We will talk with the author of the Arizona law, state senator Russell Pearce -- man, that's going to be good -- and public defender Isabel Garcia, who opposes the law. That discussion, it's going to be a hot one in about five minutes.
(NEWSBREAK)
(COMMERCIAL BREAK)
HARRIS: The legal showdown over Arizona's immigration law puts the spotlight on the emotional debate over the issue. It has sharply divided people along political, ideological and ethnic lines.
Joining the discussion this hour, state senator Russell Pearce, author of the Arizona law.
State Senator Pearce, it's good to see you again. Thanks for coming back to the program.
RUSSELL PEARCE, ARIZONA STATE SENATOR: Thank you. You bet.
HARRIS: And Isabel Garcia, deputy public defender in Pima County, Arizona.
And State Senator Pearce, let me start with you.
I understand that you are angry with the administration for filing this lawsuit. Let me give you an opportunity to clearly state your case here, right now, for the record.
PEARCE: Very clear. The courts have ruled.
I mean, first of all, it's pretty embarrassing that the Obama administration would want to further their policy of non-enforcement. This is outrageous. It's an insult to the American people, and certainly to Arizona.
What's coming across the Arizona border -- and again, during the debate of 1070, during the debate, Rob Crance (ph), a friend of mine, a rancher on the border, was murdered. Twelve Phoenix police officers were either killed or murdered. I can go through the list. It's outrageous.
Phoenix, number two in the world in kidnapping. But they think it's OK. Apparently, it just is collateral damage as they maintain their policy of non-enforcement.
It's embarrassing to the people. And then when they talk about the supremacy clause issue and preemption, they've never been preempted.
Had Congress wanted to preempt the states from enforcing these laws, they could have used their preliminary (ph) powers. That has never occurred. There is no preemption. The supremacy clause, absent that preliminary (ph) issue being used, has inherent authority and responsibility to enforce the law.
HARRIS: Got you.
PEARCE: You know, it is our citizens, our neighbors. Once they cross that border, it's our health care system, our educational system, our criminal justice system.
$2.7 billion a year in Arizona to educate, medicate and incarcerate. When do we stand up?
And the federal government is wrong. And these are the same open- border anarchists that have opposed any enforcement efforts, and it's about non-enforcement issues.
They're not worried about profiling. This bill prohibits profiling.
HARRIS: OK.
PEARCE: Sixty percent of the Hispanics support it in Arizona. You know, enough is enough.
I mean, I get tired of the controversial comments. This is the most popular bill in America. America supports it, overwhelmingly they support it, yet every time folks get on the air, they talk about the Arizona controversial law. Controversy with whom, lawbreakers versus law keepers?
HARRIS: Perfect. OK. Perfect.
Now, let me do this. I have a mind to do a couple of things here.
PEARCE: Yes, sir.
HARRIS: You mentioned the supremacy clause, and I want you to hear the view of this from our senior legal analyst, Jeffrey Toobin, and then I'm going to give you another moment to respond to his take on this argument.
PEARCE: You bet. Thank you.
HARRIS: So let's roll the clip.
(BEGIN VIDEO CLIP)
TOOBIN: Just because the federal government has not been fully successful in immigration, that's not necessarily a legal justification for overruling the supremacy clause. If, for example, Mexico was really crossing the border and doing terrible things to people in Arizona, that wouldn't be Arizona's right to declare war on Mexico. The law says there are certain areas that are just reserved for the federal government, even if the federal government isn't doing the best job at it.
(END VIDEO CLIP)
HARRIS: All right.
State Senator Pearce, take it away.
PEARCE: You bet. And I appreciate the comment, because, first of all, he put the wrong twist on it.
This isn't about regulation. I agree the Congress has the sole authority to regulate immigration. This is enforcement.
The courts ruled on the Santana case, in the (INAUDIBLE) court, the guard, the Gonzalez (ph) case. And just last February, the First District Court of America in Boston, a Rhode Island trooper, they inherently quantified (ph) the state's inherent authority.
They continue to demystify the point. This is not about regulation, this is about enforcement.
We enforce federal law in many, many areas every single day. But here's what's really embarrassing. We have cities that have sanctuary policies in direct violation of the federal law. They are not suing those cities for not doing their job, but they're going to sue Arizona for protecting our citizens?
It's outrageous, it's patently insulting.
HARRIS: OK.
Isabel, you've been patient. Weigh in here.
ISABEL GARCIA, HUMAN RIGHTS COALITION: This is not about protecting anybody from Arizona. In fact, if Mr. Pearce were responsible, he would, in fact, want to protect us and protect our values in this country.
Clearly, this is a supremacy issue. I mean, it's preposterous that he argue that the federal government doesn't have the exclusive jurisdiction on this very complicated area of law.
Certainly, Arizona cannot simply regulate immigration, and he is trying to regulate immigration. As much as he tries to hide it over and over, he knows full well that they have created a new offense of not having your documents with you. And the issue of racial profiling, that he can just wipe it away so easy, well, it's because you're a white person, Mr. Pearce.
PEARCE: Oh, what an idiot.
GARCIA: You don't have any qualms about racial profiling at all. You should be concerned about our liberties in this country. You should be concerned about the facts.
The facts are that immigrants are an absolute plus to our economy. Always have been. That's why we have 11 million undocumented people here, not because we're giving give-outs like you're saying. In fact, it's the exact opposite.
Immigrants contribute much more than they ever take out in health care, in educational costs, in anything. You look at any credible study, Mr. Pearce, which you should, because you're an elected official, you should have a real body of evidence before you start talking and endanger our entire community and our country.
HARRIS: All right. Let's do this -- State Senator Pearce -- let's do this. We are not ending the discussion because we are chewing ourselves up here. I mean, this debate -- hang on a second. This is being played out.
I will work in a quick break here. We're going to continue.
PEARCE: OK.
HARRIS: But this debate, what we're witnessing right here, is just eating away at the country.
So let's do this -- let's take a quick break and let's continue the conversation on the other side.
We're back in a moment. You're in the CNN NEWSROOM.
(COMMERCIAL BREAK)
HARRIS: OK, everyone. Welcome back to the CNN NEWSROOM. I'm Tony Harris. And welcome back to the conversation we're having here.
Let's introduce the guests with us.
First of all, State Senator Russell Pearce, author of Arizona's tough new immigration law, and Isabel Garcia, deputy public defender in Pima County, Arizona.
And State Senator Pearce, let me ask you something. It's clear from the last three minutes we're just fighting one another over this issue here. And let me just ask this question.
You acknowledge that it at some point becomes a federal issue, and we're here because the government hasn't done enough in this area. And I'm curious, are you as angry at Congress, all of Congress, for not enacting new immigration legislation? And that is Republicans, Democrats and Independents.
PEARCE: And that answer is yes, but let me make something perfectly clear here.
HARRIS: OK.
PEARCE: We continue to point the finger at the feds, and should. They have been absolutely absent on this issue while America's being destroyed.
And your other guest on here talks about immigrants and mixes the two issues. How insulting. You know, legal immigration is something we embrace. This is about illegal aliens, and this is about the damage -- 26-year high in unemployment, and yet we think it's OK to (INAUDIBLE).
She has a no enforcement policy. She has fought any effort to enforce these laws, while Americans are being killed, while citizens are being injured, while Rob Crance (ph) was murdered. Enough is enough.
But yes, I blame many folks, including the Bush administration and this administration, for ignoring the damage. But states are just as responsible.
We have inherent authority to enforce these laws. We have sanctuary policies all across this country by cities that refuse to enforce the law. They're illegal under federal law, but nobody cares about that and doesn't sue then over that. But we sue Arizona for enforcing the law and protecting our citizens.
I mean, protecting jobs. The cost is huge. As I mentioned, a new study, $2.7 billion to Arizona.
GARCIA: That's wrong.
PEARCE: You know, in this business that they're contributing, that's just not true. That's not true. They're taking jobs from Americans, they're pressing wages, costing Americans millions and millions of dollars in social costs.
And the crime. Again, statistics, the facts. Phoenix number two in the world in kidnapping. On and on. I mean, unbelievable.
HARRIS: All right. Before we lose you, State Senator Pearce -- Isabel, Democratic leadership, we have got a list of 11 Republican senators who voted for immigration reform in 2006 who aren't doing much in the way of leadership on this issue at all right now. I can read the names, but I won't, because we're running out of time. But Democratic leadership on this issue isn't moving it forward as well.
Do you have any anger right now for Speaker Pelosi, Senate Leader Reid? This was supposed to be the year for comprehensive immigration reform.
GARCIA: Well, really, the responsibility lays not only in all the people you have mentioned, but in previous administrations, from Clinton, to the Bush administration, to the present Obama administration. It's their inability to articulate the truth to the American public that we have caused the situation.
Mr. Pearce talks about people not following the laws. Let me tell you, Mexicans, specifically, and other immigrants, have followed the rules.
You know what the rules have been for 100 years? Come into the country in an unauthorized fashion so you can build our country.
Do you really think we have got 11 million people that are benefiting so profusely from give-outs? Absolutely not.
We depend on these 11 million people to feed us, to clothe us, to house us. And Mr. Pearce should be thanking them rather than demonizing them, because Arizona was selected by the federal government.
It was no accident. This is not occurring because the federal government has not acted. It's the opposite.
HARRIS: OK. Got you.
GARCIA: It's because they funneled everybody through Arizona to elect the likes of Mr. Pearce --
HARRIS: Oh my.
GARCIA: -- in order to become a laboratory for everything that's anti-immigrant.
HARRIS: State Senator Pearce, I know we're about to lose the satellite window with you. Let me give you the last word here.
Oh, he's gone? Doggone it.
All right. Isabel, I appreciate it. Thanks for being here.
GARCIA: Yes, thank you very much.
HARRIS: And our thanks to State Senator Russell Pearce, the author of Arizona's tough new immigration law that is being challenged by the Obama administration's Justice Department.
While we're bringing you news from around the world, we are also watching what's hot online.
Ines Ferre is surfing the Web for us.
Ines, good morning.
INES FERRE, CNN CORRESPONDENT: Good morning, Tony.
Yes, and he's keeping everyone in suspense, LeBron James. This one is from "Sports Illustrated" and CNN.com. And he's going to say where he goes tomorrow.
Also, the king of basketball is on Twitter now.
You are watching CNN NEWSROOM.
(COMMERCIAL BREAK)
(WEATHER REPORT)
HARRIS: I've got to tell you about this. This is a terrific. A whale of a tale for a group of tourists in Monterey, California.
They were lucky enough to spot more than two dozen blue whales. Now, if you're into this kind of thing, it's a really big deal.
One expert puts it this way: that the spotting was a once-in-a- lifetime event. All right, maybe once in a decade. The Blue Whale is the biggest animal on the planet.
The whales in Monterey Bay were chasing their favorite food, a tiny shrimp-like creature known as krill.
We are standing by for the president. The president is salesman today. He wants to sell more American-made goods overseas to create new jobs here at home.
We're back in a moment. You're in the CNN NEWSROOM.
(COMMERCIAL BREAK)
HARRIS: OK. So we have the president talking about boosting jobs in America by increasing exports. Let's break this out a little bit.
Where is Josh Levs when we need him? There he is.
Morning, Josh.
JOSH LEVS, CNN CORRESPONDENT: Where else would I be?
You know, Tony, this is a good example of looking at keeping the politicians to their promises. This is something President Obama brought up in the State of the Union this year. He made a pretty big promise about building jobs through exports.
Take a look.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: So tonight we set a new goal. We will double our exports over the next five years, an increase that will support 2 million jobs in America.
(END VIDEO CLIP)
LEVS: Well, you know what? Yes, if we could double our exports, we would increase our job by 2 million. That's not even a question. Don't even check those numbers. The idea is, The idea can you double your exports? It's a huge task to take on.
Let me talk you through the basics about what exports are doing for all of us and for everyone out there who needs a job right now. What you have in terms of manufactured exports, 2.8 million jobs come from manufactured exports. So it's a critical driver of the economy. So at least two million jobs would come if you could double the kind of exports that you've got going on already.
Now, if you're going to look at it as percentage of employment, which you and I do a lot because the jobless figures out there, 22 percent of employment of industries in America is export related. So that's how huge it is, that's how important it is and that's what the president is talking about today.
Now there's a figure that the White House is floating already. We're going to hear him say it. They've released it in advance. He's saying that exports are up 17 percent in the first four months of 2010, from where they were last year. So under that view, they're saying they're that they're on track toward accomplishing what he wants to accomplish. But let me show you some of the other things that are important.
There's a story at CNNMoney.com from "Fortune" at the time when he made this promise. You all can see the headline right here, "Why Obama's Export Push Won't Save Jobs." I want everyone to understand what they're talking about here. There's one quote I pulled out. Take a look at this.
They say, "Growing exports is almost entirely out of the president's and even business's hands."
Let me explain why this is so hard and why it's - I mean, think about it. If the president could snap his fingers, double exports, everyone get more jobs, every president would do that every day. I know we have some video here of the kinds of exports we're talking about.
The basic idea here is you have all these different factors that come together, Tony. You have the strength of economies overseas that you we cannot control here. You have the strength of currencies overseas that we cannot control here. You have all sorts of trade arrangements that don't need -- some not even involved in the United States, but affecting other economies and then determining how much stuff they need from the United States based on what they're getting from everyone else.
There are a lot of factors that lead a lot of analysts - it's not just this one - to say it's very hard to believe in their view that the president can just make a decision and boom, double our exports within five years. But, that's what he wants to do. And if it happens, yes, it would be fantastic for jobs in America.
HARRIS: Yes. And China, it seems to me, is the key to all of this. Floating its currency.
LEVS: The currency, right.
HARRIS: Yes, yes, absolutely. So it seems to me that China is key to all of this.
You're going to have to break this down for us a bit more next hour, Josh?
LEVS: Yes. Because so many people looking for jobs in America right now. I'm going to talk to you about what the most exported goods are from America. Because if they can successfully increase that, then that's where that would be a lot of job in manufacturing and associated jobs. And that might be where some jobless people can cover.
HARRIS: Good work, Josh. See you next hour.
Thank you.
On this day five years ago, terror in the British capital today. London remembers the victims of the attacks on the city's subway system.
(COMMERCIAL BREAK)
HARRIS: So, today is the fifth anniversary of a deadly terror attack on London's subway system. Mourners are gathering to place flowers at a memorial at Hyde Park. Four bombs went off that day in the British capital, three on underground trains and a fourth on a bus. 56 people, including the four bombers were killed. 770 other people were hurt. The London terror attacks transformed the life of a former Muslim radical. She now works for peace and understanding among different religion.
Her story now from CNN's Zain Verjee in London.
(BEGIN VIDEOTAPE)
HADIYA MASIEH, FORMER MEMBER OF HIZB-UT-TAHRIR: I was sold a utopia. As a young person, I was looking for justice. I devoted every second of my life almost to this cause. I remember seeing everything on television, thinking this needs to stop.
ZAIN VERJEE, CNN CORRESPONDENT (voice-over): TV images of the 2005 7/7 terror attacks in London prompted Hedia Masia, a mother of three children, to cut ties with a radical Islamic group she joined in a UK college.
MASIEH: I think it was pretty much a wake-up call for anyone in this group who was living in Britain. Whether they want to admit it or not.
VERJEE: She remembers the moment she decided to shift gears.
MASIEH: I was heavily pregnant with my third child and when I was in the waiting room looking at the screen, I just felt like hiding. I think that's what made me think that I wanted to distance myself from those people who created that atrocity.
VERJEE: Hizb-ut-Tahrir believes Islam has been unfairly targeted by the west, politically, and in some cases militarily.
Their message according to Hadiya --
MASIEH: There needs to be some type of revenge. Even though we will not go out and actively fight, but if someone else does, then that's fine.
VERJEE: She dusts off an old book and reads her notes.
MASIEH: Our aim is to establish (INAUDIBLE), which is the Islamic state, and a huge part of the method is the awareness of worldwide affairs, a very idealistic mentality that I once held which was as a result of being part of a group that had a very specific aim and I was totally taken by that message.
VERJEE (on camera): Brain washed?
MASIEH: Yes.
VERJEE (voice-over): She was only 18. After 10 years, she stopped listening.
MASIEH: They just keep talking about the same thing over and over again and eventually human nature will start to think, well, it's not making a difference.
VERJEE: She and her husband (INAUDIBLE), also a former Hizb-ut- Tahrir member are working to foster better relations between faiths.
MASIEH: At the end of the day, if they have an understanding of each other, then that will -- I'm hoping, will eradicate any feelings of animosity and hatred.
VERJEE: Her latest project? Setting up the London screening of a movie called "Arranged." She hopes it will break down barriers.
A film about a friendship between a religious Muslim lady and an Orthodox Jewish lady, going into their lives.
VERJEE: As Hadiya reflects on the terrorist events that triggered her transformation, she hopes she can continue to help those who've been influenced by Hizb-ut-Tahrir as she was.
MASIEH: They haven't been as open as I have, but I've been able to show them a different path and a different way of life.
(END VIDEOTAPE)
HARRIS: A CNN oil alert on Day 79 of the disaster in the Gulf. Leaders of the Christian, Jewish, and Muslim faiths prayed for those affected by the BP oil leak last night ahead of a tour of the Louisiana coast today. Officials are watching a weather pattern near Mexico's Yucatan Peninsula to determine whether they can place a new cap on the still gushing well.
And other stories we're following for you. A dangerous heat wave in the northeast blamed for at least one death in Philadelphia. Heat advisories are in place for the region through tonight.
Hawaii's governor has vetoed a civil unions bill that would have given same-sex couples the same rights as heterosexual couples. She says the issues needs to be put to referendum.
We are standing by for the president. As salesman in chief, he wants to sell more American-made goods overseas to create new jobs here at home. His plan, coming up in the CNN NEWSROOM.
(COMMERCIAL BREAK) HARRIS: It's the United States of America versus the state of Arizona. Can you believe it's come to this? The Justice Department is suing Arizona in an effort to overturn it's tough new immigration law. The reasoning, Washington says immigration reform is the job for the federal government. Arizona Governor Jan Brewer says, that's the problem. Washington hasn't done its job and Arizona is paying the price. Got to tell you, Arizona isn't alone in the push for more reform. Other states across the country are now taking matters into their own hands.
Our Ines Ferre is looking at the growing push for new immigration laws - Ines.
INES FERRE, CNN CORRESPONDENT: Yes, Tony. You can really tell by the number of laws that have been passed over the years.
Immigration related bills have tripled over the last four years, where you had 470 that were introduced in states, up to 1,500 introduced last year. Now, not all them are punitive. Some deal with education, benefits, driver licenses. But you have seen an uptick in laws trying to enforce illegal immigration laws in the country, Arizona's immigration being one of them.
Now, you've got legislators from at least five states that have said that they've already introduced bills similar to Arizona's, and another 12 states saying that they plan to draft similar bills. And it's not just states, Tony, that have been passing laws. You also have cities, for example, in Freemont, Nebraska, where you recently had an ordinance that was passed that bans hiring or renting property to illegal immigrants. Hazelton, Pennsylvania, Farmers Branch (ph), Texas, and Valley Park, Missouri. They've passed similar ordinances in 2006. Some of those are in court right now - Tony.
HARRIS: All right. Ines, appreciate it. See you next hour.
Congratulations America. If you've learned one thing during this whole recession, it's the importance of paying off your debt, and a new study shows you are doing it. Congratulations, America.
(COMMERCIAL BREAK)
(BUSINESS REPORT)
HARRIS: Got to tell you, the president, before we get to that story, we want to get you to the president now. He is speaking in the East Room of the White House. He is going to announce an all-star VIP business panel that has its half now of working to sell more of our goods overseas.
Let's listen to the president.
(JOINED IN PROGRESS)
OBAMA: Thank you, Jim McNerney, for being here.
And thank you to members of my Cabinet and my administration for coming.
Thank you, Gary Locke, for the introduction and the outstanding work that you've been doing at Commerce to move America's economy forward.
Now, that work has been my driving focus since we walked through these doors a year and a half ago. And at that time, our economy was shrinking at an alarming rate. Nearly 3 million jobs were lost in the last half of 2008. In January 2009 alone, more than 750,000 jobs had been lost here in the United States. So every alarm bell was ringing at the prospect of a second Great Depression.
So our imperative was to stop that freefall and reverse direction, to get our economy moving and get jobs growing again. Which meant we took a series of dramatic and, frankly, sometimes unpopular actions. But as a result of those actions, we broke the recession's momentum, and we're in a much different place today.
Our economy has now grown for three consecutive quarters and created nearly 600,000 private sector jobs in the first half of this year; a stark contrast to the 3.7 million we lost over the first half of last year. And despite uncertain world events and the resulting ups and downs in the market, we are moving America forward again.
But the progress we've made to date isn't nearly enough to undo the damage that the recession visited on people and communities across our country. Our businesses are hiring again, but there are still five unemployed workers for each job opening. The economy is growing, but empty storefronts still haunt too many Main Streets. And the truth is, the middle-class families that are the backbone of our economy have felt their economic security eroding since long before this recession hit.
So we've got much more work to do to spur stronger job growth and to keep the larger recovery moving.
The question is, over the months and years to come, how do we encourage the strong and lasting economic growth required for America to lead in this new century?
Where are we going to find the growth necessary to help us address all of our priorities, from creating jobs and prosperity, to boosting our businesses and workers, to improving our fiscal health and reducing our long-term deficits?
Now, one thing we know is we -- this growth won't come from an economy where prosperity is based on fleeting bubbles of consumption, of debt. We can't rely on paper gains. We've seen where that led us, and we're not going back.
The truth we've had to face over the past year and a half the truth that if we want to once again approach full employment and fuel real economic growth, then we need to put an end to the policies that got us here, tackle the challenges we've put off for decades and move this economy forward. We need to lay a new and stronger foundation on which businesses can thrive and create jobs and rising incomes, on which innovators and entrepreneurs can lead the world in generating new technologies and products and services.
We have to rely on a new foundation on which America can harness what has made our economy the engine and the envy of the world: the talent and drive and creativity of our people.
So business and labor leaders representing some of America's largest corporations and America's workers, that's what I want to talk to you about all today.
Because America's success ultimately depends on your success. It's the private sector that has always been the source of our job creation, our economic growth and our prosperity, and it's our businesses and workers who will take the reins of this recovery and lead us forward.
At the same time, some might argue that government has no role to play at all in our economy. But everybody in this room understands that the free market depends on a government that sets clear rules that ensure fair and honest competition, that lives within its means, that invests in certain things that the private sector can't invest on its own (sic).
In the absence of this kind of responsible government - whenever government is dragged too far to one end or the other of the spectrum -- we see negative consequences for our economy.
So too much regulation or too much spending can stifle innovation, can hamper confidence and growth, and hurt business and families.
A government that does too little can be just as irresponsible as a government that does too much. Because, for example, in the absence of sound oversight, responsible businesses are forced to compete against unscrupulous and underhanded businesses who are unencumbered by any restrictions on activities that might harm the environment or take advantage of middle-class families or threaten to bring down the entire financial system. That's bad for everybody.
That's the reason we pursued Wall Street reforms. And when the Senate takes up its business again I hope it moves as quickly as possible to finish this chapter and settle this issue.
In the absence of sensible policies that invest in long-term public goods like education or basic research, roads, railways, broadband, a smart electric grid, all -- an absence of those investments can be equally disastrous. Over time, failure to make such investments slowly degrades our competitiveness, leaving us without the skilled workforce or the technologies or the basic infrastructure that a 21st-century economy requires.
So to make sure our workers can outcompete anybody anywhere in the world, we've invested in the skills and education of our people. Through the Race to the Top, we're challenging our schools to raise their standards. And I pledge that by 2020 America will once again lead the world in the percentage of students graduating from college. And by making higher education more affordable, we're on our way to achieving that goal.
To strengthen our standing in a 21st-century economy, we've invested in upgrading our critical infrastructure from high-speed rail to high-speed Internet. We've enacted reforms that will reduce the drag of health care costs on businesses and consumers alike.
And we are committed to bringing down the unsustainable debt that has ballooned over the past 10 years.
To help spur lasting growth, we've invested in science and technology, research and development, and clean energy projects that will strengthen our global leadership.
Eighteen months ago, for example, American companies commanded just two percent of the global capacity for advanced battery technology. Today the seed money we provided has helped leverage substantial private investment, and by 2012, we expect America's capacity to reach 20 percent of the global market, and as high as 40 percent in 2015.
But government has another responsibility, and that is to remove barriers that stand in the way of opportunity and prosperity so that our people, all of our people -- our workers, our entrepreneurs, our CEOs -- can build the future that we seek. And that's what I want to focus on now.
In my State of the Union address, I set a goal for America: Over the next five years, we will double our exports of goods and services around the world, an increase that will boost economic growth and support millions of American jobs in a manner that is deficit- friendly.
Export growth leads to job growth and economic growth. In 2008, American exports accounted for nearly seven percent of our total employment, one in three manufacturing jobs, and supported 10.3 million jobs in all, jobs that pay 15 percent more than average.
So at a time when jobs are in short supply, building exports is an imperative.
But this isn't just about where jobs are today. This is where American jobs will be tomorrow.
Ninety-five percent of the world's customers and fastest-growing markets are beyond our borders. So if we want to find new growth streams, if we want to find new markets and new opportunities, we've got to compete for those new customers because other nations are competing for those new customers.
As I've said many times, the United States of America should not, cannot, will not play for second place. (END OF COVERAGE)
HARRIS: The president in just moments is going to name a VIP panel to promote and sell American-made goods abroad. The commission really is a who's who in corporate America. It's part of the president's initiative to double exports and create two million jobs.
