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Arizona's Immigration Law Takes Effect; Battle Over Arizona's Law; A Day in the Grape Fields; The Immigration Effect; California Orders More Furloughs; Your Tax Dollars Equals His Lavish Lifestyle; Sounding Off On Immigration Law
Aired July 29, 2010 - 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: Hello again, everyone. I'm Tony Harris.
Top of the hour in the CNN NEWSROOM, where anything can happen.
Here are some of the people behind today's top stories.
Illegal immigrants -- are they taking jobs from Americans? We go to a farm to find out.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I asked him how many Americans he's seen in his 32 years in the field. He has said zero.
(END VIDEO CLIP)
HARRIS: Con case. It reads like a movie plot. A defense contractor accused of taking hundreds of millions of dollars and bilking investors, and trying to develop a memory-erasing pill to cover his alleged crime.
Are you kidding me?
You're online right now. We are, too.
Josh is following the top stories trending on the Internet -- Josh.
JOSH LEVS, CNN CORRESPONDENT: Tony, a movie theater reopens in the West Bank after 23 years. It's right here. It's a story that involves the death of a Palestinian boy whose family then donated his organs to Israelis, both Arab and Jewish.
We've got all the details for you in one of our top stories at CNN.com.
HARRIS: OK, Josh. Appreciate it.
Let's get started with our lead story. A stripped-down version of Arizona's new immigration law is now in effect, but a judge's ruling blocks the most contentious parts of the law being enforced. So the battle rages on with demonstrations across the country today. Arizona's governor says the legal fight is far from over. The immigration battle could ultimately end up before the U.S. Supreme Court.
So, now that Judge Bolton has temporarily blocked the most controversial parts of the Arizona immigration law, what is left?
Josh Levs has what's in and out of SB 1070 -- Josh.
LEVS: Tony, you know, I've been pacing through it. This is it right here. I was looking through all the language of it.
It's interesting how she pulls it apart. And I'll show you now some of the most important, or certainly the most newsworthy provisions that are now out of this bill. Let's take a look.
We've got a section here called "What's Out." We're going to start out here.
The bill, first of all, based on what she's done to it now, it no longer requires officers to check immigration status. Now, this is important. You and I have talked about this language before.
The way the law is written, it says that they have to, they're required to make a reasonable effort when practicable to check someone's immigration status if they're pulled over for some legitimate reason. That's no longer there. So this key requirement on police to check immigration status, gone.
Next thing here. It is no longer in Arizona now a crime for failure to apply for or carry documents. This is interesting, because it is federal law that immigrants are required to carry paperwork, but Arizona's law made it a crime in Arizona to fail to do that. That is gone here.
Two more I want to tell you of what has been taken out.
It is no longer a crime for soliciting or performing work if you are an illegal immigrant inside Arizona.
And one more here. This judge said the way she read it, it looked like police could carry out a warrantless arrest if they felt there was probable cause, and she said that's not OK. She removed that.
She said, in this case, a probable cause would mean that a police officer might pull someone over and might think that maybe that person has done something illegal. That would give them reason to be deported. She's taken that away from them and says no more warrantless arrests, even if you feel you have probable cause.
So, four major things there, Tony, gone as of this judge's ruling.
HARRIS: Well, what's still in the law and being enforced today, Josh? LEVS: Yes. Well, let's talk a little bit about that.
One interesting thing is day laborers. And I know we have some video of that.
Let me talk to you about that, because this bill, this law has a lot of language about day laborers. And it still says -- it says what it said before, that it is illegal to stop and pick up day laborers if doing so impedes traffic. And it's also illegal for someone do get in someone's car to go do that kind of day work if it's going to impede traffic. It's also -- it keeps these sanctions on employers who hire illegal immigrants.
And one more thing I'll mention, Tony, that is interesting. The Arizona law says that anyone inside Arizona is allowed to sue the government or even a government employee if they feel that they're not adequately enforcing federal immigration law. And that's what Arizona says this whole thing is about.
They say that their law is designed to enforce the federal immigration law. The feds say no way, what you're really doing is creating your own laws, and you can't.
HARRIS: Good stuff, Josh. Thank you.
LEVS: You got it.
HARRIS: Demonstrators, protesters have been on the move in Phoenix today.
CNN's Jessica Yellin is there, and she joins us.
Jessica, you know, I've been looking at your shot for the last minute or so. We understand that demonstrations are going on, but we're not seeing much activity around you.
If you would, describe the scene.
JESSICA YELLIN, CNN NATIONAL POLITICAL CORRESPONDENT: Tony, just a short time ago, about 20 minutes ago, there were several hundred people actually behind me. I'm here at the federal courthouse where Judge Bolton has her chambers.
Those several hundred protesters were chanting, "United we stand, divided we fall. Racism has got to go once and for all." They came here, several people we saw, walked up to the police officers -- I don't know if you can see -- they're gathered in front of the courthouse -- and crossed the line where protesters are supposed to be held back, and they got arrested in an act of civil disobedience.
After those folks were arrested, the crowd moved on, and they're headed now to Sheriff Arpaio's office. As you know, he is the sheriff we've interviewed so many times who many of these protesters think is the toughest on illegal immigrants.
These folks, in their words, they call him -- they accuse him of profiling. So they're going there now to protest his actions, Tony. Many protesters here came from --
HARRIS: So, Jessica --
YELLIN: Yes. Go ahead.
HARRIS: -- I was just curious to know if the opponents of the law view the decision from Judge Bolton yesterday as a complete and total victory.
YELLIN: No. And that's why they came, despite the injunction.
They say it's a partial victory, a relief for now to them. But they acknowledge they know it could be changed on appeal. The Supreme Court, who knows if it gets there, what they'll decide.
And then, also, I spoke to a number of people who said they're protesting the motives behind passing this law to begin with. They're protesting what they believe are unfair practices by Arizona law enforcement over time. They're accusation is there is racism, there is profiling, there's hostility to illegal immigrants and to Latinos, generally. And that's why these folks, so many of them, came out from New York, New Hampshire, Massachusetts, many from California -- Tony.
HARRIS: OK. Very good.
Jessica Yellin for us in Phoenix.
Jessica, good to see you.
CNN's Thelma Gutierrez is outside the sheriff's office in Phoenix, where demonstrations were also planned.
A lot more activity there. Describe the scene around you there for us, Thelma.
THELMA GUTIERREZ, CNN CORRESPONDENT: Yes, Tony. In fact, you can hear all the protesters beginning to chant right now.
We're gathered right in front of Sheriff Joe Arpaio's office, also in front of City Hall. You can take a look around. There are a couple of hundred people, Tony, who have gathered here. Some of them are clergy members, union leaders, community leaders. And they all say they're here specifically to engage in acts of civil disobedience.
They want to be arrested. They say they want to call attention to Sheriff Joe's controversial crime suppression sweeps, which they say is actually out there looking for Latinos.
And so we're talking here to one of the people who is hoping to get arrested, Jorge Masuli (ph), who came all the way from Miami.
Jorge, you're with Democrats USA. Tell me, why are you here? Why do you want to be arrested? And isn't this counterproductive?
JORGE MASULI, PROTESTER: Well, you know, it's not necessarily that I want to be arrested, but what we want to do is we want to protest the discrimination. We want to protest this anti anti- American law.
I'm here as a U.S. citizen. I'm a Cuban-American, I came from Miami. But this is not just about Arizona and it's not just about Mexican-Americans. This is about Hondurans, this is about Argentines, Puerto Ricans. This is about anybody who believes that they can participate and that they can contribute to this country.
GUTIERREZ: Now, the active provisions of SB 1070 have been -- there's a temporary injunction now. So why? Why engage in this act of civil disobedience?
MASULI: Well, because you said it. It's a temporary injunction.
It doesn't said that those laws are unconstitutional. It says that they may be unconstitutional. So therefore, we're not going to enact them right now.
We're saying you can't enact them now, you can't enact them next year, or the following year. They are outright unconstitutional. They are outright un-American. And we're not going to stop until not only this law, but all of the other copycat laws around the country are killed and dead.
GUTIERREZ: Some of the organizers say they are also protesting what they claim to be anti--immigrant laws here in Arizona, such as the ban on bilingual education and ethnic studies.
Is that part of the message that you're trying to send out?
MASULI: Well, I mean, it's all part of the same thing. I think there's a percentage of Americans that are uncomfortable with the diversity that this country is inheriting, with the demographic changes. And unfortunately, the problem isn't solved by forcing people to leave or stay.
Nobody is going anywhere. The answer is whether folks know the rule of law, whether they have access to accurate information, and whether they can participate in the democratic process.
GUTIERREZ: All right. Jorge Masuli (ph), thank you very much.
MASULI: You're welcome.
GUTIERREZ: And Tony, what I also wanted to bring up is that many of these people hoping to get arrested. There are attorneys out here as well. And some of the organizers say they're hoping that some of these people will at least talk to the attorneys to know what the consequences will be if they are arrested -- Tony.
HARRIS: Hey, Thelma, a quick one for you. I know that you talked to a lot of individuals and families that were planning to leave Arizona ahead of the enforcement of the new Arizona immigration law. I'm curious to know as to whether or not you circled back on some of those people and what they're planning to do now that there is this temporary injunction in place. GUTIERREZ: What was really interesting about that, Tony, is that many of these people were waiting for the judge to make this ruling sooner. And so many of them left.
We followed them out to New Mexico, several families. There are dozens of families who have now left to New Mexico. They say they don't plan on coming back.
Those who are still here say that now, because of the temporary injunction, they will stay. But they're not completely comfortable because, of course, it isn't permanent.
HARRIS: All right.
Thelma Gutierrez for us in Phoenix, Arizona.
Thelma, as always, good to see you.
Got to tell you, the author of Arizona's immigration law says he is ready for a fight before the Supreme Court. We will talk with him and an activist who opposes the law.
But first though, our "Random Moment." That's coming your way in 90 seconds.
(COMMERCIAL BREAK)
HARRIS: Arizona's governor says the fight is just beginning over the state's controversial immigration law.
Joining me is the lawmaker who co-sponsored the immigration bill, Arizona State Senator Russell Pearce, and Isabel Garcia, co-chair of the Tucson-based Coalition for Human Rights.
And State Senator Pearce, first to you. Your reaction to the judge's decision yesterday?
RUSSELL PEARCE, STATE SENATOR, ARIZONA: Well, it was still a win for Arizona. People have to understand, one of the purposes of this law was to eliminate sanctuary policies.
Unlike some people would have you believe, illegal is not a race. It's a crime. It's illegal to enter or remain here.
These policies that restrict law enforcement's ability to enforce the law are illegal under federal law AUSE 1644 (ph) and 1373. As of today, those polices -- and we have them around the state -- Tucson, Phoenix, Chandler, Mesa, they are illegal to have those policies in place. The laws will be enforced.
Not only do the laws --
(CROSSTALK)
HARRIS: Got you. PEARCE: -- under state law, but citizens have a right to sue for any city or county or republic political subdivision that has a policy that restricts or limits law enforcement's ability to enforce these laws.
So, I've got news for the anarchists. Our laws will be enforced. Today the handcuffs come off from law enforcement.
HARRIS: All right.
Isabel, I'll let you jump in. Your reaction to the judge's decision yesterday?
ISABEL GARCIA, CO-CHAIR, COALITION FOR HUMAN RIGHTS: Yes, Senator Pearce is ignoring of course that they have gutted his law, that we -- the court will not allow the state of Arizona and its legislature to criminalize undocumented immigrants, will not allow him to criminalize wanting to work, and will not allow Mr. Pearce to impose a police state on the rest of us.
I have a question for Senator Pearce.
What don't you get about illegal? This was illegal. This is an illegal grab for federal power, unconstitutional, and that is very clear.
So it is not a win for you. Of course we have a lot of work to do because we aren't satisfied with everything that happened.
HARRIS: All right. Isabel -- yes.
(CROSSTALK)
Let the state senator get back in here.
PEARCE: Yes, let me to that.
First of all, maybe somebody ought to read the Constitution and the case law. States have never been preempted from enforcement of laws. This is a judicial activist judge who has decided to put into her decision the Obama policy of non-enforcement.
Read the decision. It may create a --
(CROSSTALK)
GARCIA: You are absolutely wrong.
PEARCE: It may interfere with priorities. This is -- hang on. That's what she wrote in there. Don't tell me I'm wrong. That's her language in there -- This may interfere with the priorities of the Obama administration.
It is illegal to be here. It's a crime.
You know, the anarchists marching the streets, 2-1 Americans support this bill, 2-1. And 3-1 in some places. But we're going to let the minority decide the policy of the United States and ignore the law? It's a distinct act of anarchy.
HARRIS: Let's deal with some of the language.
You mentioned the language in the judge's decision yesterday. Let's deal with a little bit of it, State Senator Pearce. Here's some of that language from the judge, from Judge Bolton.
"Requiring Arizona law enforcement officials and agencies to determine the immigration status of every person who is arrested burdens lawfully present aliens because their liberty will be restricted while their status is checked."
Isn't the judge correct in that statement?
PEARCE: You know --
HARRIS: In that statement, in that narrow statement.
PEARCE: Hang on.
HARRIS: OK.
PEARCE: We arrest people today for every crime based on probable cause. We put them in jail, they wait a hearing or they wait a trial. The judge -- they have a hearing. This is outrageous comment.
And her other comments, you need to read it all. She also says in there that we're afraid it would interfere with the priorities of the administration.
There's no place in law for that. It's illegal. We have a right to enforce that.
Our citizens have a constitutional right to expect those laws to be enforced. And in Arizona, we're going to enforce them. The handcuffs come off from law enforcement. They have the right to ask. They ignored the decision --
(CROSSTALK)
HARRIS: But they've always had that right.
PEARCE: In 2005 -- hang on -- a 9-0 landmark decision in the United States Supreme Court said that law enforcement has the right to ask and act, and if they have unlawful conduct, don't have to --
(CROSSTALK)
GARCIA: He doesn't want to face the reality that they've gutted your bill. They gutted your bill, and it's unconstitutional, and it's already been declared --
PEARCE: We'll win it on appeal.
GARCIA: And we will win on the Ninth Circuit. We will win in the Supreme Court, because they're not going to allow this state --
PEARCE: The people will win. The people will win. The anarchists won't win. This law will go into effect.
GARCIA: -- to preempt on the federal application of the law.
This is not about anarchy.
PEARCE: Yes, it is. March on the streets, demand the laws (INAUDIBLE). Call everybody to enforce the laws' names. It gets old.
GARCIA: What don't you get about illegal, Mr. Pearce?
(CROSSTALK)
HARRIS: Isabel, give me a moment. Isabel, give me a moment. Give me just a moment here.
State Senator Pearce, why continue to fight for this law? Why not push Secretary of Homeland Security Janet Napolitano? You know her well. And push Congress to resource the enforcement effort on existing federal law.
Why fight over this?
PEARCE: This is existing. That's -- and that's a good point.
This is just codifying federal law. It's against the law to enter, it's against the law to remain.
You must have your indicia with you if you're a visitor. Legally, even. You've got to carry your visa with you, your passport and your I9.
That's exactly what this does. This codifies federal -- that's why we'll win.
(CROSSTALK)
HARRIS: Why would you want the requirement in there? Why did you want the requirement in there?
GARCIA: The court said it was different classifications.
PEARCE: They have the authority under federal law, but they've ignored it. Sanctuary cities are illegal, but they've ignored it. And they have policies.
You know, the federal government doesn't sue those cities that are in violation of the law, but they sue Arizona for protecting its citizens? That's why.
This is a good law, it codifies federal law, it takes the handcuffs off law enforcement. We're going to let them enforce the law, as they should.
GARCIA: He's ignoring --
PEARCE: If you don't want to do the job, get another job.
GARCIA: You are ignoring the loss you suffered yesterday, Mr. Pearce.
HARRIS: OK. Let me put that aside for just -- let me put that aside for just a moment.
You've said a couple of times here that the handcuffs come off of law enforcement. What does that mean? What does that mean? What are you saying?
PEARCE: It means sanctuary policies. Policies that restrict law enforcement are illegal under federal law. They now will be illegal under state law.
And the citizens, we the people -- kind of a novel term. I like it, I believe our founders put it in there for a reason -- our citizens can sue their government if they violate the law.
If they have a policy that restricts law enforcement at any degree, limits them or restricts them, it's illegal. And the citizens will be able to sue up to a $5,000 fine per day for every day that policy remains in effect that's in violation of the law. So this does --
(CROSSTALK)
GARCIA: They are going to be restricted.
HARRIS: Isabel, let me give you the last word on this. Go ahead.
GARCIA: Senator Pearce is ignoring that the core of his law was to criminalize immigrants, undocumented people who did not have proper paperwork.
PEARCE: Illegal aliens. Nothing to do with immigrants.
GARCIA: Well, it's immigrants.
PEARCE: You know, let's get it right. Get it right.
GARCIA: I don't know who is an alien. I don't know if Superman is an alien. But I'm telling you, we're talking about human beings. And you have a lot of nerve to attack the immigrants that have contributed mightily into this country.
PEARCE: Illegal aliens.
GARCIA: We don't have 11 million undocumented immigrants because we give any freebies. They're here because they have continued to contribute to our country. They have built the West, and they continue to contribute over and over -- Social Security, suspense fund. I mean, all of it is very clear. Senator Pearce is a pretty hateful man, and he's very upset that his bill has been gutted.
PEARCE: Well, we'll win on appeal, but --
HARRIS: I guess I got to give you the last word.
PEARCE: Well, she knows the --
(CROSSTALK)
GARCIA: We will win on appeal.
PEARCE: Rob Spence (ph) was murdered on the border during the debate of 1070.
GARCIA: Not my an immigrant. Nothing to do with Mexican migration. You have no idea, Mister.
(CROSSTALK)
HARRIS: We will continue this discussion as we move to the Ninth Circuit Court of Appeals.
Thank you both. Thank you both for the discussion. Thank you.
Still to come, nobody does it like Mother Nature, right? An awesome light display on the Florida coast.
We're back in a moment.
You're in the CNN NEWSROOM.
(COMMERCIAL BREAK)
(WEATHER REPORT)
HARRIS: A popular argument that you hear against illegal immigration goes like this: Undocumented workers take jobs away from Americans.
(BEGIN VIDEO CLIP)
GARY TUCHMAN, CNN NATIONAL CORRESPONDENT (voice-over): You make $8 minimum wage and split 30 cents for each big box of grapes you pack between three partners.
(END VIDEO CLIP)
HARRIS: Gary Tuchman goes out in the field, literally, to find out if Americans want this kind of work.
(COMMERCIAL BREAK)
HARRIS: So you've heard the argument that illegal immigrants are doing jobs that Americans won't. Is that really true? We asked Gary Tuchman to do one of those jobs for a day. What he found in the grape fields of California may surprise you.
(BEGIN VIDEOTAPE)
GARY TUCHMAN, CNN NATIONAL CORRESPONDENT (voice-over): Before dawn, migrant laborers in the California desert. Despite triple-digit temperatures still to come, they wear long sleeves, scarves and bandanas to protect themselves from the sun and from dust.
Their job today, to pick the purple grapes you will snack on tomorrow. They're all veterans, and they're all Mexican, except for me, the rookie American who is joining them for a full day of work, the only person in short sleeves, the only person who doesn't know what he's doing.
But I have been assigned a partner. Benjamin Rodriguez (ph) has worked in the California fields for 32 years. He knows his grapes, which are called "uvas" in Spanish, and he is teaching me the trade.
(on camera): Here's what I'm learning. You have got to get rid of the green ones. But, sometimes, the green ones are way down. And, if you miss them, and they get to the grocery store, and then you go to the grocery store to buy grapes and see green ones, you will complain to the store. The store will complain to the ranch, and the ranch will complain to me, the worker.
(voice-over): You make $8 an hour, minimum wage, and split 30 cents per each big box of grapes you pack between three workers. The third is Benjamin's wife, Maria (ph), who is loading up the grapes for the grocery store.
She tells me it makes her back hurt and it's hot, "But we have to work hard. It puts food on the table. We have to do it."
(on camera): Benjamin is my partner today. If I don't work fast, I cost him money. So, there's some pressure. It's not just doing a story.
(voice-over): Maria and Benjamin have five children, two of them grown. They, like all the other workers here, won't discuss their immigration status.
But, if you're legal, you would usually seek a less punishing occupation. Either way, taxes are taken out of all the paychecks. They each make a base rate of $64 for the day. After taxes, it's about 45 bucks for the eight hours.
As the hours go by, the workers sing to help make time pass, to take their minds off the heat. They're aware many people believe Mexican immigrants take away American jobs, but, over the years on this ranch --
(on camera): (SPEAKING SPANISH)
UNIDENTIFIED MALE: (SPEAKING SPANISH) I asked him how many Americans he has seen in then his 32 years in the field. He has said zero.
(voice-over): Santos Montemayor is the man who does the hiring in these fields.
(on camera): So, for 15 years, you have been hiring labor crews to do agricultural work.
SANTOS MONTEMAYOR, LABOR CONTRACTOR: Right.
TUCHMAN: How many Americans have you hired over the 15 or 16 years?
MONTEMAYOR: None, not one.
TUCHMAN: I mean, has one ever expressed interest?
MONTEMAYOR: No. Not since I have been working the fields, no.
TUCHMAN (voice-over): The temperature has now climbed to 102.
(on camera): As it gets hotter and the sun gets brighter, your mind starts playing tricks with you. Is it purple? Is it green? You start not being able to make out the colors any more. These are purple, though.
(voice-over): The trucks start getting loaded up with the grapes we're picking. I'm doing some wheelbarrow duty, which can't be good for the back.
(on camera): I realized before this day started this work would be hard. What I didn't realize is just how monotonous it would be. These people do it six days a week.
(voice-over): I've never looked at my watch so much. And it's not even lunch-time yet.
(on camera): (speaking in foreign language). Delicious grapes. Hot off the vine.
(voice-over): The afternoon goes slower than the morning. Benjamin (ph) stays on top of me to get rid of the green grapes. At 2:30 p.m., eight and a half hours of a we started, our final load of grapes.
(on camera): This is the last. (speaking in foreign language).
(voice-over): It's quitting time and it's a mass exodus. Benjamin, Maria (ph) and I have done 100 boxes. That's a $30 bonus for the two of them. I wish Benjamin and Maria luck and they head home as quickly as possible. They have to do it all over again at 6:00 a.m.
Gary Tuchman, CNN, Delano, California.
(END VIDEOTAPE) HARRIS: Are you paying attention here? That is just one grape field in California. There are other jobs where you won't find many Americans. CNN's Tom Foreman takes a look.
(BEGIN VIDEOTAPE)
TOM FOREMAN, CNN CORRESPONDENT: We spent the day talking to folks on both sides of this debate and looking at studies and this is what we found. The Labor Department says that there are 130 million jobs in the United States. And that Pew Hispanic Center, which does some very good work on this, says there are about eight million illegal immigrants in the workforce.
Where Gary was, out in California, or in you talk about Nevada or in Arizona over here, there are a lot of illegal immigrants. They're believed to hold one out of every 10 jobs in this area. So if you live there and you don't have at least a high school diploma, you could find enough competition for certain very hard, low-skilled jobs that indeed you might not even apply for the wage that's being offered, especially once it's been established that those jobs are handled by other people.
But in other places, like say over here in West Virginia, they also have very hard, very dirty jobs there, like coal-mining, for example. And all those jobs get filled, but almost none of them by illegal immigrants. Anderson.
ANDERSON COOPER, CNN HOST, "AC360": Well, so what kind of jobs are illegal immigrants taking (INAUDIBLE)?
FOREMAN: Well, that's an interesting question. Farming is absolutely huge, Anderson. Pew says 25 percent of farm workers are here illegally. And Gary was in a state where that type of work is big and it's a state that's heavy with illegal immigrants. Nineteen percent of workers in building maintenance or janitorial services are here illegally. In restaurant work, it's 12 percent.
They don't make much money at this. The median family income is about $36,000 a year. So you heard the numbers Gary was talking about there. And while they do take some very low-wage jobs from citizens by working for even less, it's worth noting that they often take those jobs from earlier waves of illegal immigrants, too.
Anderson.
COOPER: And what about the notion that they depress wages for the rest of -- for U.S. citizens?
FOREMAN: That's a great question. That appears to be true. But again, it's primarily in certain jobs, in certain places, not necessarily across the board. For example, 17 percent of the people who work in construction are believed to be illegal immigrants. And Pew says that's up 7 percent from 2003. Look at that, 10 percent to 17 percent. That's a big jump in a short period of time. Forty percent of brick masons, for example, and 37 percent of drywall installers are now here illegally, or at least believed to be. Those were jobs that not long ago were held by U.S. citizens who today could probably not demand the same wages they did when they were the only game in town.
(END VIDEOTAPE)
HARRIS: How about that. So we are teeing up another real talker for you. Listen to this. A top black magazine hires a white fashion director and things threaten to turn ugly. The race debate over (INAUDIBLE).
(COMMERCIAL BREAK)
HARRIS: Let's see here. CNN, of course, is your source for financial news. If you want the latest, this is what you do. You go to cnnmoney.com. You see the lead story here, "Nasdaq leading the selloff" down 29 points. OK, so we're three hours into the trading day. Just a little past. And the stocks all across the board are trading down. Let me check the S&P quickly here. That's down as well. The Dow down 70 points. We will continue -- all right, 71. We'll continue to follow these numbers for you throughout the day right here in the CNN NEWSROOM.
Just when Californians were beginning to think that things were starting to get a little bit better, the rug gets yanked out from under them once again. State workers are being forced to take furloughs again. Carter Evans is at the New York Stock Exchange with details.
And, Carter, maybe you can tell us how many people are going to be affected this time around.
CARTER EVANS, CNN BUSINESS CORRESPONDENT: Well, it's a huge number, Tony. We're talking about 200,000 people in California that could be affected by this.
So here's the deal. State workers have to take three days off a month now. The problem is, it's not vacation days. These are days with no pay. And that amounts to a pay cut of about 14 percent. The furloughs start this Sunday. And they're not new to California. They've been in place for the past year and a half. But those furloughs ended July 1st and full work schedules were restored. But Governor Schwarzenegger says these new furloughs will continue until the budget's passed.
HARRIS: And, Carter, how big of a budget deficit are we talking about here?
EVANS: Just about $19 billion. It's a lot of money.
HARRIS: Billion.
EVANS: I mean this is a ton of money. And it's not going to be easy to make up quickly, but Schwarzenegger declared a financial state of emergency. And that's a lot of politicking going on over here.
HARRIS: Sure.
EVANS: California Republicans, they want to cut services, they want to cut welfare, they want to cut Medicaid. Democrats in California want to raise taxes. It's a rough time for the people of California. The state is already battling 12.3 percent unemployment. It is the third-highest in the nation. So it's a tough situation that doesn't seem to be getting any better. They've got to balance that budget. But $19 billion, Tony, is a lot of money.
Oh, real quickly, I want to explain why the market is falling.
HARRIS: Yes, yes, please.
EVANS: OK, we're looking at consumer names today. Specifically, Colgate and Palmolive. Here's the thing. Colgate-Palmolive beat expectations, but what investors are really looking for right now are seeing that revenue is increasing.
HARRIS: Revenue, right. Right.
EVANS: Revenue missed the mark. So basically it's not showing a lot of strength for the economy. That kind of freaked out investors and they're heading for the hills today.
HARRIS: So you could be showing your company is being profitable, but you're profitable because you're doing other things to trim costs in the business as opposed to selling more and gening (ph) up revenues.
EVANS: Exactly. And this earnings season showing a profit is just not enough.
HARRIS: Exactly. All right, Carter, good to see you. Thank you, sir.
EVANS: OK.
HARRIS: Still to come in the NEWSROOM, ethics charges coming to life soon against legendary lawmaker Charlie Rangel. We are watching developments on Capitol Hill. We're back in a moment.
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HARRIS: A quick look at top stories for you now.
An Air Force cargo plane crashes near a downtown Anchorage, Alaska, killing all four airmen aboard. It happened near a training mission near Elmendorf Air Force Base. A board of officers is investigating now.
The House Ethics Committee prepares to open a hearing into allegations of misconduct by long-time Representative Charles Rangel. After an almost two-year investigation of the New York Democrat, the committee's report could bring a trial by a panel -- subcommittee in September.
An investigation finds as many as 6,600 graves in Arlington National Cemetery may be either unmarked, improperly marked or mislabeled on cemetery maps. A number of solutions are being considered for correctly identifying the remains, including exhuming graves.
Your tax dollars at work. A New York man on trail, accused of ripping us all off to fund, yes, an extravagant lifestyle.
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HARRIS: Got to tell you, there is an outrageous case playing out in a New York courtroom right now. The feds say a former CEO scammed his company for almost $200 million. CNN's Alina Cho reports that money came from your tax dollars.
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ALINA CHO, CNN CORRESPONDENT (voice-over): A $100,000 jewel- encrusted belt buckle, $1 million on race horses. Even allegations of hired prostitutes for employees. It's a list that reads like a bad b (ph) movie. The man behind all of it? Business executive David Brooks. He's now accused of stealing millions of dollars in company money. And you won't believe where he got that money to pay for an over-the-top lifestyle.
Luxury cars, a Lear jet, lavish vacations for him and his family.
CHO (on camera): Prosecutors allege David Brooks and his co- defendants not only used the company as their personal piggybanks, they profited handsomely in a classic pump and dump stock scheme. Brooks allegedly cooked the books to drive up the stock, then sold at the high for a windfall of more than $185 million.
UNIDENTIFIED MALE: Legally it's not all that exciting. It's a fairly classic pump-and-dump case. It's the details that make this case so delicious.
CHO (voice-over): One of those "delicious" details, Brooks allegedly built this opulent life literally on the backs of soldiers. That's because the company he founded and ran, DHB Industries, now known as Point Blank Solutions, makes body armor for the U.S. military.
UNIDENTIFIED MALE: The Interceptor has saved thousands of lives in Iraq and Afghanistan.
CHO: Why should you care?
JEFFREY TOOBIN, CNN SENIOR LEGAL ANALYST: It does seem particularly bad given what he was selling, something that we all want so desperately to work and protect our troops. But it's also bad because all the money here ultimately comes from taxpayers.
CHO: That's right. A government contractor who, before he left the company, was accused of making money by taking your money. After all, your tax dollars paid for those bulletproof vests. Michael Adair has been watching the trial closely because he invested in DHB Industries and lost a half-million dollars when the alleged scam was revealed and the stock plummeted. Adair feels especially betrayed because he's a Vietnam veteran, who chose to park his money in DHB as a way of showing his patriotism.
MICHAEL ADAIR, LOST RETIREMENT SAVINGS: How could I be so stupid? How could I have not, you know, gotten out of this thing before it was as low as it was? Yes, you really feel dumb.
CHO: Brooks has pleaded not guilty. His lawyers, who would not talk to CNN on camera, don't dispute that his personal expenses were paid for by the company, but add, those expenditures were authorized.
TOOBIN: You know, this is the kind of case that makes a defense lawyer think, why didn't I go to medical school. White-collar cases are never really slam-dunks, but this one seems to come pretty close.
CHO (on camera): And that's not all. Prosecutors allege David Brooks also spent years trying to develop a memory-erasing pill with the veterinarian who cared for his race horses. The alleged target? The former CFO of the company, so that none of the alleged crimes would ever be reported to the government.
CHO (voice-over): That, obviously, did not work. That CFO spent 23 days testifying against her former boss. If he's convicted, Brooks could spend the rest of his life in prison.
Alina Cho, CNN, Central Islip, New York.
(END VIDEOTAPE)
HARRIS: Twitter, FaceBook, cnn.com. I've got to tell you, a lot of folks have something to say about Arizona's new immigration enforcement law. It is what is hot on the Internet. We're back in a moment. You are in the CNN NEWSROOM.
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HARRIS: So we have seen anger, cheers, cheers and jeers, really, as a judge blocks part of a contentious immigration law. And as you can expect, it is what's hot all over the Internet today. Where is Ines Ferre? Haven't seen her all day here in the NEWSROOM. There she is.
INES FERRE, CNN CORRESPONDENT: Right here.
HARRIS: Ines, good to see you. And you're tracking this online for us. What are you finding?
FERRE: Yes, that's right. Well, we've been tracking it on cnn.com, on FaceBook, on Twitter. So let's get started with some of the comments that we've seen.
Carol on FaceBook says, "I was so glad that the most contentious section of the Arizona law will not go into effect. Racial profiling is technically illegal, but some choose to ignore that fact."
Then also Gael on cnn.com said, "Jan Brewer is a hero in the face of federal government incompetence and Judge Bolton's judicial activism, she stands firm." And you've got Apostacy on cnn.com saying, "in many ways illegal immigration has been more than allowed, it has been encouraged. How many of you bloggers would go work eight to 10 hours while it's 110 degrees picking watermelons?"
And AriKarpel via Twitter says, "doesn't SB 1070 sound like it's a lite FM station in Santa Barbara? If only it were."
Using a little comic relief there.
HARRIS: Yes. Oh, we've got some protest video. I want to show this to everybody. Can we get this here. I believe -- is this in -- in Arizona? And I believe this is probably outside of Sheriff Arpaio's office. Boy, that is actually growing in size. I know that our Thelma Gutierrez is there. She reported from that location a little earlier in this hour. So we will keep an eye on that.
Part of this is, obviously, civil disobedience and there were a number of people we understand in this crowd here, Ines, who are absolutely wanting to be arrested at some point today. So we will keep an eye on that and we'll talk to Thelma Gutierrez, I'm sure, next hour.
Ali Velshi joins us at the top of the hour right here in the CNN NEWSROOM.
Good to see you, Ines.
Let's take a break. We're back in a moment.
HARRIS: All right, so I want to show you these pictures again. Live pictures coming out of Phoenix, Arizona. Maricopa County, Arizona. And correct me here, help me in the control room here. I believe these are scenes from out in front of Sheriff Joe Arpaio's office. Are we clear on that? I believe that's the location where Thelma Gutierrez is and reported from earlier.
So we're just not -- we're not clear on that, but obviously this is a protest. And at this opponent we don't know if this is a celebration of the judge's decision yesterday or if this is a group that is -- who believes the judge got it dead wrong yesterday in her decision. So we will continue to follow this and get a little better clarity on who's there and where there is and why.
A race debate is now erupting over "Essence" magazine. For the first time, the publication that focuses on African-American women has hired a white fashion director. Many who support the decision say not hiring someone based on race amounts to reverse discrimination. But many in the black community disagree. A former staffer makes the argument against it.
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MICHAELA ANGELA DAVIS, CULTURAL, POLITICAL CRITIC: I don't know of any women's magazine that says they're a white fashion magazine. "Vogue" does not say that. They say that they are there for luxury and elitism or a class. "Essence" is the one magazine in that kiosk that puts race in their brand. They say, this is the place for African- American women. The place where black women come first. So black is in their brand DNA.
(END VIDEO CLIP)
HARRIS: OK. We will be spending a lot of time discussing race on this program. Now earlier this week I spoke with CNN contributor Donna Brazile. You can watch that interview on my blog page at cnn.com/tony. And if you would, we need your help here. Leave us a comment. What issues do you think should be a part of an overall discussion on race in America? Help us out on this one. We need you to lead this.
Got to go. CNN NEWSROOM continues right now with Ali Velshi.
ALI VELSHI, CNN ANCHOR: Tony, what issues shouldn't be a part of a conversation about race in America?
HARRIS: (INAUDIBLE) wide open, right.
