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Lou Dobbs Tonight
Iraqi Administrator Paul Bremer Meets With President Bush; Interview with Veterans Affairs Secretary Anthony Principi
Aired November 11, 2003 - 18:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ANNOUNCER: This is LOU DOBBS TONIGHT for Tuesday, November 11. Here now, Lou Dobbs.
LOU DOBBS, CNN ANCHOR: Good evening.
Tonight: President Bush says the United States is on the offensive in Iraq. And the enemy, he says, will be defeated. President Bush said American troops will prevail with the help of the Iraqi people. As the president spoke, insurgents in Baghdad fired rockets or mortars at the coalition compound in the city center. There were reports of no casualties. Military commanders in Iraq say some of the attacks are being carried out by foreign fighters with links to al Qaeda.
Senior Pentagon correspondent Jamie McIntyre reports.
(BEGIN VIDEOTAPE)
JAMIE MCINTYRE, CNN MILITARY AFFAIRS CORRESPONDENT (voice-over): With attacks against U.S. troops on the rise in Iraq, counterattacks are up, too.
American commanders report, anti-insurgent engagements have doubled in recent weeks, up to about 30 to 35 a day. Citing what sources say is fresh intelligence, President Bush contends, 93 percent of the anti-U.S. attacks are occurring in a relatively small area, five Iraqi provinces that make up a 200-square mile Baathist triangle. The U.S. believes some of the attacks are being conducted by foreign fighters. But it's having a hard time finding clear links to al Qaeda.
LT. GEN. RICARDO SANCHEZ, U.S. COMMANDER IN IRAQ: At one point, we had up to about 20 suspected al Qaeda members. But, as we have continued to refine and interrogate, we have not been able to establish definitively that they were al Qaeda members.
MCINTYRE: Sanchez says he thinks several hundred terrorists have entered Iraq from Syria, Egypt, Sudan and Yemen. But the Pentagon still believes its primary foe remains the remnants of Saddam Hussein's regime.
GEN. RICHARD MYERS, JOINT CHIEFS CHAIRMAN: The first thing in being able to take care of the current threat we face is to understand who the enemy is. And we certainly know that the former regime elements, the Baathists, if you will, are the major part of that. MCINTYRE: The Pentagon says, with each successful raid, with each discovery of arms, the U.S. is getting closer to breaking the resistance.
(END VIDEOTAPE)
MCINTYRE: And the Pentagon is claiming that it has passed a milestone in the Iraqization of the security forces, with 131,000 Iraqis, they say, now under arms. That number exceeds the number of U.S. troops in the country -- Lou.
DOBBS: Jamie, you referenced what was the Sunni Triangle as the Baathist Triangle. Is the change in nomenclature official?
MCINTYRE: Well, that's what President Bush called it today. And that's, I think, the way -- the terminology they're using now. And they believe that more accurately describes what they're up against.
DOBBS: Jamie, thank you very much -- Jamie McIntyre, our senior Pentagon correspondent.
The U.S. administrator in Iraq, Paul Bremer, today was recalled to Washington with short notice for a meeting at the White House. Officials said Bremer was recalled for routine discussions, but there was nothing routine about the recall. Bremer's visit comes amid reports the Bush administration is growing frustrated with the work of the Iraqi Governing Council in Baghdad.
White House correspondent Dana Bash has the report -- Dana.
DANA BASH, CNN WHITE HOUSE CORRESPONDENT: Tonight, we're told that Paul Bremer did have a brief meeting with President Bush while here at the White House today.
Most of his time was spent with members of the principals meeting, so to speak, the secretary of state, the secretary of defense, other top national security officials here at the White House. And this certainly -- as you mentioned, Lou, it was a hastily arranged meeting. A top aide to Bremer I spoke with just on Sunday said he wasn't planning to come back until the holidays. And he canceled a meeting with the Polish prime minister in order to come back.
We are told that he was planning on having a conference call to talk a wide range of subjects, figured it was better to do it face to face. Now, a major point of discussion during these meetings was the political transition, what to do about the Iraqi Governing Council that was U.S.-picked. There is concern that they are moving too slowly and perhaps are ineffective and also concerned that they're not going to meet their December 15 deadline, laid out by a U.N. resolution to set forth a timetable for elections and a new constitution in order to get a new Iraqi government up and running.
Now, another issue that they discussed is the security situation and a new intelligence report talking about the scope and perhaps the source of the attacks in Iraq. The president, speaking earlier today, said that he says that there is a link between al Qaeda-like groups, affiliated groups, who are seeking to form a new Taliban-like government, a link between them and Saddam's former loyalists.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Saddam loyalists and foreign terrorists may have different long-term goals. But they share a near-term strategy: to terrorize Iraqis, to intimidate America and our allies. Recent reporting suggests that, despite their differences, these killers are working together to spread chaos and terror and fear.
(END VIDEO CLIP)
BASH: Now, that speech was part of a broad defense the president issued about his Iraq policy today. And it was after a day of tradition commemorating Veterans Day. He was there at Arlington National Cemetery, laying a wreath at Tomb of the Unknowns, where he made a speech, telling families of loved ones who were killed in Iraq and Afghanistan that they died for a good cause -- Lou.
DOBBS: Dana, thanks -- Dana Bash reporting from the White House.
In Saudi Arabia today, authorities detained a number of terrorist suspects after the weekend bombing of a housing complex in Riyadh. That bombing killed 17 people, wounded more than 120 others. Most of the casualties were Arabs. Saudi Arabia blames al Qaeda for the attack.
Terrorism and Iraq are not the only problems, of course, facing President Bush. He is also dealing with the threat of a trade war now with Europe. The European Union says it will impose duties on $2 billion of American goods unless President Bush lifts tariffs on imported steel. The World Trade organization says those U.S. tariffs are illegal.
Kitty Pilgrim is here with the story -- Kitty.
KITTY PILGRIM, CNN CORRESPONDENT: Lou, the European move is a calculated attack on the Bush administration. The Europeans are threatening tariffs that they are hoping will damage the president in an election year.
(BEGIN VIDEOTAPE)
PILGRIM (voice-over): T-shirts, citrus fruits, gloves, cardboard boxes, dried fruits, fresh vegetables, rice, on and on, some tariffs as high as 100 percent, $2.2 billion worth, to slam the American consumer.
The Europeans are planning a nasty trade retaliation if the United States doesn't drop the duties it puts on imported steel. The retaliation is fine-tuned to hit key election states.
GARY HUFBAUER, INST. FOR INTERNATIONAL ECONOMICS: The sanctions are calculated to go into effect on the eve of a presidential election year. The European Union has carefully selected states, and districts within states, which are natural supporters of President Bush or the Republican side in a presidential election. And, of course, their strategy is to put the maximum pressure to get these tariffs off through the trade retaliation they do.
PILGRIM: Southern states, like the Carolinas, would suffer under textile tariffs, California, with its agriculture, Florida citrus, Wisconsin's Harley-Davidson motorcycles. The Bush administration has defended the steel tariffs as perfectly legal. Florida Senator Bill Nelson says the U.S. steel policy was to protect U.S. industry from unfairly priced imports.
SEN. BILL NELSON (D), FLORIDA: That there was dumping and that those interests have to be protected, as any domestic interest has to be protected, as you consider free trade, because you want free trade to be fair trade.
(END VIDEOTAPE)
PILGRIM: Now, Europeans threatened action as soon as mid- December. There's one bright spot when it comes to steel, however. Global demand is rising, so the American steel industry may see some improvement anyway -- Lou.
DOBBS: Any word yet on what the administration will do?
PILGRIM: No. They say it's a fair policy, but I'm sure
(CROSSTALK)
DOBBS: What is a fair policy?
PILGRIM: The steel tariffs.
DOBBS: And the national security issue, as a country that cannot manage its own steel industry, any discussion of that vulnerability?
PILGRIM: There hasn't been an overt discussion, but of course that has to be a consideration, Lou.
DOBBS: Kitty, thanks -- Kitty Pilgrim.
Coming up on this Veterans Day, a moment of silence to honor our veterans, a rare and brief show of unity in a divided Senate. Congressional correspondent Jonathan Karl will have that report.
And our special report tonight, "Exporting America" -- tonight, left behind, the American workers who are shut out of employment when jobs, American jobs, are exported overseas. Peter Viles will report.
And we'll be joined by James Sasser, former U.S. ambassador to China, to talk about growing tensions with China over trade.
And on this Veterans Day, government plans to slash veterans benefits and close V.A. hospitals. Secretary of the Department of Veterans Affairs Anthony Principi is our guest. Please stay with us.
(COMMERCIAL BREAK)
DOBBS: The Senate is usually collegial, but this week, that collegiality has been distinctly absent from the Senate chamber. There was, however, an exception today, a brief moment of unity in the Senate to honor our veterans on this Veterans Day.
Congressional correspondent Jonathan Karl has the report.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: The Senate will observe a moment of silence.
JONATHAN KARL, CNN CONGRESSIONAL CORRESPONDENT (voice-over): Silent senators. Now, that's a rare sight these days. As Congress tries to wrap up its work, insults are flying. In one particularly colorful outburst, John Dingell, considered the dean the House, said, Democrats are like mushrooms. We're kept in the dark and fed horse 'blank.'" Of the Republicans, he said, "There's no end to the rascality of these flinty hearted bastards."
His big complaint is Democrats have been frozen out of Medicare and energy negotiations. Republicans are angry too.
SEN. MITCH MCCONNELL (R), KENTUCKY: Callow, petulant characterizations have been direct the at our leader.
KARL: He's complaining about No. 2 Democrat Harry Reid who called Republican Leader Bill Frist "a rank amateur who has turned the Senate floor into a carnival."
Reid later apologized for the rank amateur comment but was so upset by Frist's leadership that he brought the Senate to a halt Monday by speaking for nearly nine hours straight.
SEN. HARRY REID (D-NV), MINORITY WHIP: Don't think that we can just be pushed around with no say in what goes on around here because we have say in what goes on around here.
KARL: And the work of the Senate will ground to halt on Wednesday as Republicans set aside 30 straight hours to complain that Democrats have stymied the president's judicial nominations.
SEN. RICK SANTORUM (R), PENNSYLVANIA: It is unwise and unconstitutional and we're going to try to point that out.
KARL: And this comes after the Senate Intelligence Committee has been paralyzed by a furor over a Democratic memo that outlined a political strategy for the investigation into prewar intelligence on Iraq.
SEN. BILL FRIST (R-TN), MAJORITY LEADER: Those responsible for this memo appear to be more focused on winning the White House for their party than on winning the war against terror. KARL: With all the fighting, Congress is having a hard time getting anything done. Republicans blame Democrats, but Democrats say their hands are clean.
SEN. TOM DASCHLE (D-SD), MINORITY LEADER: You'll recall our Republican colleagues saying over and over and over again, they control the Senate. And if they control the Senate, they ought to be held responsible.
KARL (on camera): As all of the name-calling goes on in front of the cameras, behind closed doors, negotiations are under way on major Medicare and energy bills. If those pass, this Congress will likely be seen as one that accomplished quite a bit. If not, you can expect more finger-pointing about who is to blame for the inaction.
Jonathan Karl, CNN, Capitol Hill.
(END VIDEOTAPE)
DOBBS: The presidential election is now a year away. Democratic candidates who have served in the armed forces are making a big issue of their military background.
The latest example is a television advertisement by Senator John Kerry which highlights his service and his national security experience in Congress.
Senior political analyst Bill Schneider joins us with a report.
Bill, does military service still matter for these presidential candidates?
WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST: Well, Lou, for about 10 years after the Cold War ended in 1991, military service really didn't seem to make much difference politically. You remember, George Bush the elder, Bob Dole, John McCain, all had heroic military records. But the country elected two figures, Clinton and George Bush, who had never served in a war.
Now, September 11 really did make an enormous difference. National security is back on the agenda and military service counts. For two of the Democratic contenders, it's the big centerpiece of their campaign. One of them is John Kerry, and the other is Wesley Clark, both of whom served with distinguished records in Vietnam. The other candidate -- another candidate, Howard Dean, is a bit defensive. He says: I'm running with just as much experience in world affairs as George Bush had when he became president.
I think my point is, if Bush were running for the first time in 2004, rather than 2000 -- that is, after September 11 -- he'd have a much harder time getting elected.
DOBBS: Bill, we probably should point out that while neither Bill Clinton, nor George W. Bush were in combat, George W. Bush was at least in the National Guard. SCHNEIDER: Yes, he was. And he is a veteran. But neither one of them had experience in a war overseas. Neither one was a combat veteran, certainly not compared with George Bush's father or Bob Dole or John McCain.
DOBBS: In fairness, those three individuals have unique, distinguished military backgrounds few could compete with.
Bill, just exactly what is John Kerry trying to do with this new television ad?
SCHNEIDER: Well, he's running this ad that draws a contrast between his own heroic military experience as a war veteran with President Bush's photo opportunity after the war in Iraq. Take a look.
(BEGIN VIDEO CLIP, KERRY CAMPAIGN AD)
NARRATOR: Who can take on George Bush and change the direction of the nation? John Kerry, a leader on national security, a decorated combat veteran, served on the Intelligence Committee, the Foreign Relations Committee. John Kerry.
(END VIDEO CLIP)
SCHNEIDER: There's a problem, however. And that is that the issue that's energizing Democrats this year isn't the military or military service. It's anti-war, specifically the war in Iraq.
So all the candidates who are touting their military credentials have to somehow jujitsu that into a criticism of Iraq. General Clark does it by arguing, as he did in a debate last month, you don't start a military operation unless you know how you want it to end; this president did not know how he wanted Iraq to end.
DOBBS: Bill, the -- is the president, in your judgment, then, vulnerable on Iraq? It seems if things were to improve there markedly, he that would not be. What's your judgment?
SCHNEIDER: He does look vulnerable on Iraq right now. His approval ratings on Iraq are dropping. The latest figure shows about 45 percent support the way he's handling Iraq.
Americans haven't turned against the war. They still think it was the right thing to do to overthrow Saddam Hussein. But they think the postwar situation in Iraq is being very poorly managed. On the other hand, when Americans are asked, "How do you think President Bush is handling the war on terrorism?" they clearly see that as different from Iraq, because the president's ratings on that are about 65 percent, so that I think Americans do trust this president on national security issues.
He's had on-the-job training. But, on the other hand, it's what the United States is doing now in Iraq that's the target of criticism.
DOBBS: Bill, thank you very much -- Bill Schneider. Coming up next here: My next guest knows firsthand the value of military service to this nation and the men and women who serve, General David Grange, a decorated Vietnam veteran. And he joins us.
And one company's innovative solution to the growing problem of illegal aliens and the strain on this country's hospitals. Casey Wian will report from Tijuana, Mexico.
Please stay with us.
(COMMERCIAL BREAK)
DOBBS: We are reporting extensively here about the growing number of illegal aliens in this country and the access that these 10 million illegal aliens have to state and federal health care programs and other benefits. At the local level, illegal aliens cost communities in the Southwestern states alone more than $1 billion a year in health care. But now one company has found a unique way to save those cities and towns money and to send illegal aliens home.
Casey Wian reports from Tijuana, Mexico.
(BEGIN VIDEOTAPE)
CASEY WIAN, CNN CORRESPONDENT (voice-over): This 17-bed Mexican hospital is easing some of the $76 million financial burden illegal aliens place on San Diego hospitals. Scripps La Jolla is one of six hospitals now offering to pay to transfer some illegal alien patients to Tijuana's hospital Engles (ph), in part because it's cheaper and it frees beds for other patients.
DR. BRENT EASTMAN, CHIEF MEDICAL OFFICER, SCRIPPS: We know that one in four uninsured patients that we care for in our hospitals in San Diego County are undocumented immigrants. This is a way to ultimately defray some of those costs. But it never, ever addresses or interferes with the quality of those patients' care.
WIAN: The transfers are voluntary for the patient. About 80 percent accept the offer.
BOB BARRAZA, PRESIDENT, NEXTCARE: I think what's in it the most for the patient is that he knows he's going to get some continued care and he's going to get it in an environment that he's comfortable with, with the cultural similarities, the food, the communication. And the biggest thing is, is his family can now visit him.
WIAN: Hospitals pay NextCare to move patients by ambulance to Tijuana, then eventually to their hometown. NextCare says it can cut hospital costs in half. Only recovering patients that are medically stable, generally leading convalescent care, are eligible.
(on camera): So far, NextCare says it has transferred 55 patients from hospitals in San Diego to this facility in Mexico. Eventually, it expects it business to stretch all along the border from California to Texas. (voice-over): Just this week, Scripps was contacted by a Texas hospital interested in sending some of its patients home. Even if the program spreads, it can only do so much. Most of the money hospitals spend on illegal aliens is for trauma and emergency care, which, legally, hospitals must provide, even to those who break the nation's immigration laws.
Casey Wian, Tijuana, Mexico.
(END VIDEOTAPE)
DOBBS: Coming up next: "Exporting America." Tonight, the story of an American company forced out of business by cheap foreign competition and labor and the thousands of American workers left behind. Peter Viles will have the report.
And we'll be joined by former U.S. Ambassador to China James Sasser. He will join us to tell us why China, in his opinion, isn't to blame.
Stay with us.
(COMMERCIAL BREAK)
DOBBS: Tonight, our special report -- the massive shipment of U.S. manufacturing jobs overseas has changed the lives of millions of Americans. This summer, one community in North Carolina was especially hard hit when textile maker Pillowtex was driven out of business by foreign cheap labor, cheap imports. Now thousands of people are struggling to find new jobs. For them, free trade is anything but free.
Peter Viles is here now and has the report -- Pete.
PETER VILES, CNN CORRESPONDENT: Lou, there's a great deal of focus on retraining these laid-off manufacturing workers for other jobs. The problem in places like Kannapolis, North Carolina, is that better jobs are hard to find.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: Look at this new statement, which is, the Internet is the next level.
VILES (voice-over): After 15 years in a factory, Brenda Miller is retraining for a new job in a county where unemployment stands at 11 percent.
BRENDA MILLER, LAID-OFF TEXTILE WORKER: The workers are not doing good. There are no jobs to replace the jobs that they have lost.
VILES: Pillowtex, a maker of sheets and towels, shut down in July, driven out of business by cheap imports, nearly 5,000 workers lost their jobs. DONALD MALLO, HUMAN RESOURCES, PILLOWTEX: Our people adapted. They were loyal. They would do anything to make this company survive. We just -- and we tried different ways to let that happen, just were not successful.
VILES: The federal government responded with $20 million in emergency aid to extend unemployment benefits, offer free tuition at community colleges, and pay 65 percent of the cost of health insurance.
KRISTY CARTEE, LAID-OFF TEXTILE WORKER: I know a lot of people that have been paying $1,000 a month just for health care.
VILES: Still, laid-off workers are swamping community colleges. This one expects 2,000 students from Pillowtex alone.
RICHARD BROWNELL, ROWAN-CABARRUS COMMUNITY COLLEGE: We're chockablock full in every direction on both campuses, day and night. We've spilled over into other public spaces. We're using high schools at night.
VILES: Among the most popular career paths at this community college, nursing, automotive repair, truck drive, heating and cooling systems maintenance. Brenda Miller hopes for a job in marketing.
MILLER: We hope that, by the time we get our degrees, that, during this two-year period, there will be some kind of economic turnaround in the state to where, when we graduate, there will be jobs to go to.
(END VIDEOTAPE)
VILES: The stubborn fact, though, is that workers who go through retraining generally settle for new jobs that pay less than their old ones, 70 to 80 cents on the dollar on average. At least, though, Lou, they usually do find jobs after retraining. About 70 percent are reemployed within three months of finishing the program.
DOBBS: The impact is lower wages.
VILES: Lower wages.
DOBBS: Less disposable income to buy products, because these people are, after all, consumers as well.
VILES: Sure. And much lower benefits. The benefits in these manufacturer jobs are generally better than average, health insurance and a pension.
DOBBS: Then that confirms a growing trend across the country, for various reasons, in addition to simply losing jobs because of cheap imports. That is less health care, lower wages. And that pressure is being felt throughout the economy.
How long does it take, typically, if there is such a thing as typical, for an employee who loses his or her job to find work again? VILES: Sure. Right.
The government gives them two years of benefits. But, on average, they only use about a half of that, because it's hard to make ends meet on unemployment. So, on average, about 50 weeks and they're back in the work force.
DOBBS: Peter Viles, thank you very much.
Cheap labor in China is only part of the trade dispute with China. China is manipulating its currency. It is also blocking U.S. exports to China. But my next guest says the White House has accused China of unfair trade practices for its own political reasons, using China as a scapegoat for economic problems in this country.
James Sasser is a former U.S. ambassador to China, also a former Senate from the state of Tennessee. And he joins us tonight from Washington. Good to have you with us.
JAMES SASSER, FORMER U.S. AMBASSADOR TO CHINA: Thank you. Good to be with you, Lou.
DOBBS: The issues with china, $130 billion current account deficit, it's rising to where we don't know, but we know it's accelerating. Why is there, in your judgment, a scapegoating of China when the problem seems to be so obvious?
SASSER: Well, I think the real problem is the fact that American and European multinationals over a period of many years have rushed into China. China's been the recipient of over $500 billion in direct foreign investment, a lot of it coming from the United States. And I don't think we ought to blame the Chinese simply for doing what comes naturally when Motorola and General Motors and others come in and set up plants in China, you can't expect them to exclude them. And if they did, then we, of course, would bring trade actions against them under the World Trade Organization regime.
DOBBS: So, with $130 billion deficit rising, worsening, all of the time, and let's leave out the scapegoating issue because if there is scapegoating it seems it's for a separate reason.
SASSER: Yes.
DOBBS: What is your solution?
We can continue to export our wealth, our capital, and our jobs to China in perpetuity.
SASSER: Well, some of it's coming back. For example, the Chinese In last 18 months that bought $100 billion worth of U.S. government securities. The Japanese bought $150 billion. So between the Chinese and the Japanese, they pretty much financed our federal government deficit over the past few years. And we've got to make a decision about where we're going. I mean, the United States, over a period of -- a number of years has been the chief advocate of free trade, has been the chief advocate of globalization and now, when it starts biting us, we start crying about it. And that's just one of the effects of globalization. It's hit the Europeans country have been hit harder than us.
DOBBS: Well, when you're in pain, shouldn't you cry?
Should you not when there's a problem that's is reaching crisis proportions and not deal with it, I guess is my question to you. You mentioned $100 billion in purchases in U.S. securities, both debt and equity. Further purchases by Japan, they're not doing us any favors there as you well know, ambassador. Those are claims on ownership of U.S. assets. That's not particularly great.
SASSER: Well, no, they're parking a lot of the money that's going from the U.S. to China and to Japan is being parked in the Federal Treasury. The Federal Treasury uses those bonds to finance the deficit. Which keeps interest rates low here.
DOBBS: This is where -- what do you do with a poor fellow like me, ambassador?
I don't like high deficits. I don't like exporting jobs. And I think we ought to have a responsible, fair trade policy that does not result in such a inequity and the relationship and I sure don't like our overseas competitors in this world trade system holding, as they do, $2.5 trillion worth of claims on American assets.
SASSER: Well, Lou, that's just -- that's just the way the cookie crumbles these days. And the truth is that American corporations operating in china make larger profits in China than they do any other foreign country in this world.
DOBBS: That's just -- that's just (UNINTELLIGIBLE). But what about the people losing their jobs? At what point -- I mean we don't say the cookie crumbles here. We've got to go farther than that, ambassador.
SASSER: I agree with that. But we are the author of our own misfortunes here.
DOBBS: I take full responsibility. You can blame me personally. But what I'm crying out for is a solution because it cannot -- can it, go on?
SASSER: I'm not the wisest man in the world. I don't know what the solution is, but the economists tell us that over time, globalization will level out. It's going to be a very, very painful process, I think, to absorb these vast labor markets in China and in India and Mexico. That's the direction we're headed.
DOBBS: It may be one we're headed but I kind of react when people tell me we don't have control of our destiny in this country. As one has been responsible for shaping that destiny, I'd just like to get a sense what in the world is so spectacular as having Wal-Mart the fifth largest importer of Chinese goods.
What is so spectacular about outsourcing of American jobs? What is spectacular about raising all of these barriers to U.S. exports at the same time pushing down wage levels in this country?
This doesn't sound to me like it has a happy ending when it levels out.
SASSER: Lou, you're making a very passionate and strong argument there. I would question some of your facts.
DOBBS: Let's go.
SASSER: China, for example, has joined the World Trade Organization. They are busily now lowering tariffs which is causing vast unemployment in the Chinese state-owned industries. They have 200 million people in their country unemployed and they have to create 20 million jobs every year. So I feel badly about our workers, but their workers in other countries that have severe problems as well.
DOBBS: Well, not to put too...
SASSER: If you think our problems are bad wait till you see the Europeans. I mean, they've been running these double digit employment -- unemployment rates now for years.
DOBBS: Ambassador, not to put too fine a point on it, the fact is, I care about those American jobs before I care about the Chinese. I care about American capital before I can worry about European capital. And I can't, for the life of me, understand why American lawmakers and policymakers wouldn't have that set of priorities to begin with.
SASSER: Well, Lou, it has been the American multinational corporations who have pushed globalization. It's American multinational corporations that wanted the trade pack with Mexico. It's American multinational corporations that wanted to force open the China market with WTO. When I say we've done it to ourselves to a certain extent, we have. But this is the way the world works now. We cannot wall ourselves off.
DOBBS: Ambassador, I wouldn't have us wall ourselves off for anything. We're the farthest thing from being walled off. But when we start tearing up the hard working men and women of this country where their jobs, the jobs, the average pay is declining, where those jobs are fewer, where we are giving up on the issue of tariffs, the president of this administration, as you know, a huge decision to make on whether or not to lift the tariffs on steel or face retaliation from the European Union.
At what point do you say, the pain is too great for Americans?
SASSER: I think that...
DOBBS: And that is a priority?
SASSER: I think that's a statement for Americans to make for themselves and to make it through their lawmakers. Now for example, on the steel tariffs, it's raised the price of American automobiles here in this country and parenthetically, Lou, General Motors makes over a $1,000 per unit -- per unit that they assemble in China. They make just about $50 per unit here in the United States last year. So it's our corporations, really that are reaping these very large profits and in many area's it's low wage or labor intensive low cost industries that are paying the price.
DOBBS: Ambassador Sasser, if those profits were resulting in more investment in capital and plant and equipment and more jobs in the country, I'd say hooray. But you and I both know that isn't what's happening, right?
SASSER: Well, I don't know about that. I think what -- I don't want to get into the position of defending the multinational corporations here. But I'm saying they are a powerful political and economic force in this country. And they're the ones who push globalization.
DOBBS: Don't you think this should be at the forefront amongst the top issues for our Democratic candidates and this president to deal with in this election year?
SASSER: I most certainly do.
DOBBS: Ambassador, you just reached absolute agreement on an issue. Ambassador James Sasser, always good to talk with you. We thank you for being here.
SASSER: Lou, good to talk to you. Thanks.
DOBBS: Thank you, sir.
Coming up next, American troops fighting to defend this country while American veterans at home are fighting to protect their most basic right
Pentagon correspondent Barbara Starr, reports on government plans to close some VA hospitals.
And the secretary of the Department of Veteran's Affairs, Anthony Principi, is our guest. We'll be right back. Please stay with us.
(COMMERCIAL BREAK)
DOBBS: Stocks down for a third straight day. The Dow down almost 19 points. The Nasdaq fell almost 11. The S&P down a point and a half. A new report on the economy finds new jobs, however, are on the way, but they're not quite the same as those jobs lost in recent years. Christine Romans is here with the story -- Christine.
CHRISTINE ROMANS, CNN FINANCIAL NEWS CORRESPONDENT: A report for the U.S. Conference of Mayors. It says you can take jobless out of jobless recovery, Lou. There are jobs on the way, coming in the next couple of years in administrative and health care jobs, hotels, bars and restaurants. But those jobs will pay almost 18 percent less than the millions of jobs lost in the past three years. Less than $36,000 on average, $43,000 is the average for the jobs that were lost.
The economy will add the most jobs in administrative work, at an average wage of $26,000. Health care will pay a little bit more, but look at those lower weighing restaurant and hotel jobs.
And don't expect, the survey says, to see those higher-paying manufacturing careers to come back. Mayors in this country obviously concerned that those manufacturing and information technology positions, positions that you can raise a family on, are being replaced by the McJob, such a phenomenon it's landed in the Merriam Webster dictionary. This is the quote: "A low-paying job that requires little skill and provides little opportunity for advancement." McDonald's says that description is an insult to its many workers, but this study from the U.S. Conference of Mayors says that that is exactly the kind of jobs that will be around for the next couple of years. The high-paying jobs probably aren't coming back.
DOBBS: You know, I think in this case, Merriam, the Webster people, they're wrong on this one. McJob is sort of a dumb word for it. What it is is a low-paying job, and in many cases we shouldn't attach that name to it. It's -- it's more infuriating to think about those jobs being lost that are sufficient at least in pay to raise a family in this country. The squeeze goes on on working Americans.
ROMANS: It does.
DOBBS: Christine Romans, thank you.
ROMANS: Sure.
DOBBS: The government is facing a growing issue over health care for this nation's veterans. Some veterans are protesting a government plan that would shut down a number of VA hospitals, in an effort, of course, to cut costs and improve care. Pentagon correspondent Barbara Starr reports.
(BEGIN VIDEOTAPE)
BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): Veterans protesting the proposed shut down of their Waco, Texas, hospital. The government claims it is no longer needed. Veterans say it will force them to drive more than 100 miles for care.
Health care is always an emotional issue for veterans, especially now, as a decision is expected by year end on a plan to overhaul VA medical care nationwide.
Veterans are a shifting population. Many moving from the Northeast and the Midwest to the Sunbelt. The result?
ANTHONY PRINCIPI, SECRETARY OF VETERANS AFFAIRS: We're spending close to $400 million every year to heed and maintain facilities that are empty.
STARR: The plan is to close seven existing hospitals in areas that no longer have a large veteran population, open new hospitals in areas where veterans are moving, new blind rehabilitation centers and spinal cord injury centers.
And to fill the gaps, 48 free-standing clinics across the country will be opened. Veterans groups say unused facilities should be closed, but they are worried.
STEVE ROBINSON, NATIONAL GULF WAR RESOURCE CENTER: As they dose clown these facilities, it's going to create situations where veterans have to travel much greater distances to receive care than they currently do.
STARR: Vietnam veterans are especially concerned.
RICK WEIDMAN, VIETNAM VETERANS OF AMERICA: They're angry, because it discriminates against rural areas, they're angry because it discriminates against an older, sicker population. They're angry because they see it as a cut, which in fact it is.
STARR: Veterans groups say the administration may be ignoring the real problem. As veterans age, and perhaps grow more ill and as more veterans emerge from the war in Iraq, more money will be needed for basic medical care.
Barbara Starr, CNN, Washington.
(END VIDEOTAPE)
DOBBS: Joining me now talk about those issues and other health care issues facing this country's veterans is Anthony Principi. He is secretary of the Department of Veterans' Affairs. Mr. Secretary, good to have you with us.
PRINCIPI: Good evening, Lou. Thank you.
DOBBS: I assume that you heard Barbara Starr's report. How do you respond to those concerns?
PRINCIPI: It's critically important that we modernize our health care system. We were built at a different age. First expansion came after World War I in the 1920s, and then another major expansion after World War II in 1946. And we need to conform our health care system to the 21st century medicine. And as Barbara indicated, the demographics of the veteran population -- they are moving to different parts of the country so we need to build new hospitals, open up more outpatient clinics so veterans don't have to drive four or five hours. They can access health care close to their home.
DOBBS: As you and I have discussed, and I have acknowledged, I think you have one of the toughest jobs in all of the -- all of Washington, running an immense health care, the largest health care operation in the country dealing with one of our great national treasures, our veterans. You can't, at this point, satisfy all of the demands on service -- for services from those veterans. But as you and I talked in August, you said that there would be no more waiting lines by the end of this year if you had your way. How are you progressing toward that as we reach -- we near year's end? PRINCIPI: We're getting very close. I'm very, very proud of the progress we've made. You know, it wasn't too long ago that we had about 300,000 veterans on waiting list, waiting more than six months for care. Today we have that number less than 50,000. Hopefully with the appropriation bill that we'll receive this year, we'll dramatically increase our budget. We'll be able to rapidly approach the point in time where veterans will not have to wait more than 30 days for primary care.
We still have a ways to go, Lou, but we're making progress. And I'm very proud of that.
DOBBS: Issues -- we hear from this audience, Mr. Secretary, a very sophisticated, a very smart audience, talking about rollbacks on combat pay, the number of veterans who thought they had health care provided under the veterans -- their veterans' credentials, irrespective of the era. There are people who have written in and said, I thought because I was a combat veteran I would be eligible for health care from the veterans administration and walked in in March and found out I was not covered at all. Is there any way to begin addressing those issues, or is this where we're going to stay?
PRINCIPI: No, I think we are addressing those issues and very aggressively. You know, we've increased the number of veterans we have treated over the past three years by 1.2 million. And outpatient visits have increased from 38 million to 50 million. So we're making great progress. And, you know, veterans are eligible. The higher income -- we suspended enrollment for veterans with no military disabilities who had higher incomes. But by and large, the demand for VA health care is growing rapidly and we're attempting to address it.
DOBBS: Anthony Principi, secretary of the Department of Veterans Affairs, we thank you very much for being with us on this very important day for all of us, honoring our nation's veterans. Thank you, sir.
PRINCIPI: Thank you for having me, Lou. Thank you.
DOBBS: Coming up next -- one of this country's most decorated military heroes joins us to share his views on the value and importance of veterans, and some of the government's promises broken to those men and women. General David Grange will be with us. Please stay with us.
(COMMERCIAL BREAK)
DOBBS: The theme of today's Veterans Day parade in Palm Springs California, is "Salute to the Troops." And this -- these pictures are coming to you live from Palm Springs. The participants in this Veterans Day parade include soldiers and Marines who have fought in Iraq and the war against Saddam Hussein. Also participating tonight are Pearl Harbor survivors, Vietnam veterans and at least one recipient of the Medal of Honor.
My next guest acquired his knowledge of war from the frontlines, fighting in Vietnam, where he earned three Silver Stars, two Purple Hearts. He commanded the 1st Infantry Division, the Big Red One in Germany and also commanded the Ranger regiment. Just a few of his accomplishments over 30 years of distinguished military service.
General David Grange joins me now. Good to have you with us.
BRIG. GEN. DAVID GRANGE (RET.), CNN MILITARY ANALYST: Thank you, Lou.
DOBBS: This day is one that typically Americans pay sort of attention to cursorily in the most off-handed ways. But with our men and women in combat, we thought it would be appropriate to talk a little bit more about the day and start with its origins.
GRANGE: Well, you know, it started as Armistice Day, I believe, in 1938. And then in 1953, small businessman named Alvin King -- he went ahead and said, Look, this thing has to support more than just the World War I veterans are, but all veterans -- all veterans that served. And so he -- he did a parade in Emporia, Kansas. And then later on, in 1954 Congress and President Eisenhower went ahead and made it a recognized Veterans Day, November 11, for all veterans of all services and all wars.
DOBBS: You have fought in a number of places around the globe over 30 years, returning home from various conflicts. As you look at it, what is the difference between those young men and women returning from combat now and in previous eras?
GRANGE: There's not a lot of difference.
One, the G.I. wants to know that the American people still have the will, the resolve to continue on whatever they're committed to.
They also want to be appreciated and remembered. Remembered for instance, like the World War II memorial that, though. almost 60 years late, will be established next year, May 29, in Washington, D.C. Those things are very important to the G.I.
And the last thing is they want to know that what they did, the sacrifices of themselves and their buddies, that it was worth it. Very important.
DOBBS: As you know, I've just been talking with the secretary of the Department of Veterans Affairs, Anthony Principi. You know him very well. A veteran himself, a man of sincere commitment to the needs and the interests of veterans.
Where have we most importantly let down, broken promises, to our veterans, in your judgment?
GRANGE: Yes, I think very highly of the secretary. He does care and I really mean that. I worked with Vietnam Memorial Foundation, the wall, with him on several occasions.
The problem is he has to prioritize because there's not enough resources applied to his program to serve almost 25 million veterans across the United States of America. And so really, it's on the shoulders of the president and Congress, even though more money than ever's been allocated, it not enough, because the requirements have risen, medically as well as some of the inequities between the reserve component and the active component, which must be fixed.
DOBBS: Absolutely. General Dave Grange, we thank you for being with us on this Veterans Day.
GRANGE: My pleasure. Thank you, Lou.
DOBBS: When we continue, some of your thoughts on our special report "Exporting America."
Stay with us.
(COMMERCIAL BREAK)
DOBBS: Taking a look now at some of your thoughts.
From St. Paul, Minnesota, "Every one seems so shocked that people are losing their jobs left and right, when all you need to do is ask them this one question -- take a look at everything you own, from clothes to kitchenware to car parts. Where was it all made?" That from Mike Chevalier.
And from Tryon, North Carolina, "We can blame the CEOs, the government, China or India, but the truth is, that only when we, the American people, but our money where our mouths are and start refusing the products and services of companies that are exporting American jobs will this issue be truly resolved."
And from North Plainfield, New Jersey, "Lou, can't say enough about your relentless approach to showing what is happening to American jobs!!! Thanks to you and your staff, maybe someone in Washington will wake up soon. All I know is that if they were exporting lawyers, we would have put a stop to it already." That from Jim Pooley.
And from Hanover, Massachusetts, "Secretary Evans," who was with us last evening, "stated that we should have a level playing field in trade with China. Well, we are leveling the field. We will be level with China in a couple of years." That from Perry Greogorcy.
And from Salinas, California, "What happened to logic? First, the president said it's getting better in Iraq because we're having more casualties. Then the commerce secretary says we're helping the economy by creating more jobs in China." That from Young Chang.
And from Flushing, New York, "Exporting America. I guess if I had large business, I would export jobs. I wouldn't have to worry about medical benefits, unions, taxes, the government telling me who I can hire and fire. Yeah, I would export jobs." That from Mike Cotelidis.
And from Glenn Allen, Virginia, "I notice the only ones not concerned about exporting America are the politicians and CEOs we should be exporting." Please sent us your thoughts at loudobbs@cnn.com.
That's our show for tonight. We thank you for being with us. For all of us here, good night from New York, as we all salute veterans on this Veterans Day.
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Interview with Veterans Affairs Secretary Anthony Principi>
Aired November 11, 2003 - 18:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ANNOUNCER: This is LOU DOBBS TONIGHT for Tuesday, November 11. Here now, Lou Dobbs.
LOU DOBBS, CNN ANCHOR: Good evening.
Tonight: President Bush says the United States is on the offensive in Iraq. And the enemy, he says, will be defeated. President Bush said American troops will prevail with the help of the Iraqi people. As the president spoke, insurgents in Baghdad fired rockets or mortars at the coalition compound in the city center. There were reports of no casualties. Military commanders in Iraq say some of the attacks are being carried out by foreign fighters with links to al Qaeda.
Senior Pentagon correspondent Jamie McIntyre reports.
(BEGIN VIDEOTAPE)
JAMIE MCINTYRE, CNN MILITARY AFFAIRS CORRESPONDENT (voice-over): With attacks against U.S. troops on the rise in Iraq, counterattacks are up, too.
American commanders report, anti-insurgent engagements have doubled in recent weeks, up to about 30 to 35 a day. Citing what sources say is fresh intelligence, President Bush contends, 93 percent of the anti-U.S. attacks are occurring in a relatively small area, five Iraqi provinces that make up a 200-square mile Baathist triangle. The U.S. believes some of the attacks are being conducted by foreign fighters. But it's having a hard time finding clear links to al Qaeda.
LT. GEN. RICARDO SANCHEZ, U.S. COMMANDER IN IRAQ: At one point, we had up to about 20 suspected al Qaeda members. But, as we have continued to refine and interrogate, we have not been able to establish definitively that they were al Qaeda members.
MCINTYRE: Sanchez says he thinks several hundred terrorists have entered Iraq from Syria, Egypt, Sudan and Yemen. But the Pentagon still believes its primary foe remains the remnants of Saddam Hussein's regime.
GEN. RICHARD MYERS, JOINT CHIEFS CHAIRMAN: The first thing in being able to take care of the current threat we face is to understand who the enemy is. And we certainly know that the former regime elements, the Baathists, if you will, are the major part of that. MCINTYRE: The Pentagon says, with each successful raid, with each discovery of arms, the U.S. is getting closer to breaking the resistance.
(END VIDEOTAPE)
MCINTYRE: And the Pentagon is claiming that it has passed a milestone in the Iraqization of the security forces, with 131,000 Iraqis, they say, now under arms. That number exceeds the number of U.S. troops in the country -- Lou.
DOBBS: Jamie, you referenced what was the Sunni Triangle as the Baathist Triangle. Is the change in nomenclature official?
MCINTYRE: Well, that's what President Bush called it today. And that's, I think, the way -- the terminology they're using now. And they believe that more accurately describes what they're up against.
DOBBS: Jamie, thank you very much -- Jamie McIntyre, our senior Pentagon correspondent.
The U.S. administrator in Iraq, Paul Bremer, today was recalled to Washington with short notice for a meeting at the White House. Officials said Bremer was recalled for routine discussions, but there was nothing routine about the recall. Bremer's visit comes amid reports the Bush administration is growing frustrated with the work of the Iraqi Governing Council in Baghdad.
White House correspondent Dana Bash has the report -- Dana.
DANA BASH, CNN WHITE HOUSE CORRESPONDENT: Tonight, we're told that Paul Bremer did have a brief meeting with President Bush while here at the White House today.
Most of his time was spent with members of the principals meeting, so to speak, the secretary of state, the secretary of defense, other top national security officials here at the White House. And this certainly -- as you mentioned, Lou, it was a hastily arranged meeting. A top aide to Bremer I spoke with just on Sunday said he wasn't planning to come back until the holidays. And he canceled a meeting with the Polish prime minister in order to come back.
We are told that he was planning on having a conference call to talk a wide range of subjects, figured it was better to do it face to face. Now, a major point of discussion during these meetings was the political transition, what to do about the Iraqi Governing Council that was U.S.-picked. There is concern that they are moving too slowly and perhaps are ineffective and also concerned that they're not going to meet their December 15 deadline, laid out by a U.N. resolution to set forth a timetable for elections and a new constitution in order to get a new Iraqi government up and running.
Now, another issue that they discussed is the security situation and a new intelligence report talking about the scope and perhaps the source of the attacks in Iraq. The president, speaking earlier today, said that he says that there is a link between al Qaeda-like groups, affiliated groups, who are seeking to form a new Taliban-like government, a link between them and Saddam's former loyalists.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Saddam loyalists and foreign terrorists may have different long-term goals. But they share a near-term strategy: to terrorize Iraqis, to intimidate America and our allies. Recent reporting suggests that, despite their differences, these killers are working together to spread chaos and terror and fear.
(END VIDEO CLIP)
BASH: Now, that speech was part of a broad defense the president issued about his Iraq policy today. And it was after a day of tradition commemorating Veterans Day. He was there at Arlington National Cemetery, laying a wreath at Tomb of the Unknowns, where he made a speech, telling families of loved ones who were killed in Iraq and Afghanistan that they died for a good cause -- Lou.
DOBBS: Dana, thanks -- Dana Bash reporting from the White House.
In Saudi Arabia today, authorities detained a number of terrorist suspects after the weekend bombing of a housing complex in Riyadh. That bombing killed 17 people, wounded more than 120 others. Most of the casualties were Arabs. Saudi Arabia blames al Qaeda for the attack.
Terrorism and Iraq are not the only problems, of course, facing President Bush. He is also dealing with the threat of a trade war now with Europe. The European Union says it will impose duties on $2 billion of American goods unless President Bush lifts tariffs on imported steel. The World Trade organization says those U.S. tariffs are illegal.
Kitty Pilgrim is here with the story -- Kitty.
KITTY PILGRIM, CNN CORRESPONDENT: Lou, the European move is a calculated attack on the Bush administration. The Europeans are threatening tariffs that they are hoping will damage the president in an election year.
(BEGIN VIDEOTAPE)
PILGRIM (voice-over): T-shirts, citrus fruits, gloves, cardboard boxes, dried fruits, fresh vegetables, rice, on and on, some tariffs as high as 100 percent, $2.2 billion worth, to slam the American consumer.
The Europeans are planning a nasty trade retaliation if the United States doesn't drop the duties it puts on imported steel. The retaliation is fine-tuned to hit key election states.
GARY HUFBAUER, INST. FOR INTERNATIONAL ECONOMICS: The sanctions are calculated to go into effect on the eve of a presidential election year. The European Union has carefully selected states, and districts within states, which are natural supporters of President Bush or the Republican side in a presidential election. And, of course, their strategy is to put the maximum pressure to get these tariffs off through the trade retaliation they do.
PILGRIM: Southern states, like the Carolinas, would suffer under textile tariffs, California, with its agriculture, Florida citrus, Wisconsin's Harley-Davidson motorcycles. The Bush administration has defended the steel tariffs as perfectly legal. Florida Senator Bill Nelson says the U.S. steel policy was to protect U.S. industry from unfairly priced imports.
SEN. BILL NELSON (D), FLORIDA: That there was dumping and that those interests have to be protected, as any domestic interest has to be protected, as you consider free trade, because you want free trade to be fair trade.
(END VIDEOTAPE)
PILGRIM: Now, Europeans threatened action as soon as mid- December. There's one bright spot when it comes to steel, however. Global demand is rising, so the American steel industry may see some improvement anyway -- Lou.
DOBBS: Any word yet on what the administration will do?
PILGRIM: No. They say it's a fair policy, but I'm sure
(CROSSTALK)
DOBBS: What is a fair policy?
PILGRIM: The steel tariffs.
DOBBS: And the national security issue, as a country that cannot manage its own steel industry, any discussion of that vulnerability?
PILGRIM: There hasn't been an overt discussion, but of course that has to be a consideration, Lou.
DOBBS: Kitty, thanks -- Kitty Pilgrim.
Coming up on this Veterans Day, a moment of silence to honor our veterans, a rare and brief show of unity in a divided Senate. Congressional correspondent Jonathan Karl will have that report.
And our special report tonight, "Exporting America" -- tonight, left behind, the American workers who are shut out of employment when jobs, American jobs, are exported overseas. Peter Viles will report.
And we'll be joined by James Sasser, former U.S. ambassador to China, to talk about growing tensions with China over trade.
And on this Veterans Day, government plans to slash veterans benefits and close V.A. hospitals. Secretary of the Department of Veterans Affairs Anthony Principi is our guest. Please stay with us.
(COMMERCIAL BREAK)
DOBBS: The Senate is usually collegial, but this week, that collegiality has been distinctly absent from the Senate chamber. There was, however, an exception today, a brief moment of unity in the Senate to honor our veterans on this Veterans Day.
Congressional correspondent Jonathan Karl has the report.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: The Senate will observe a moment of silence.
JONATHAN KARL, CNN CONGRESSIONAL CORRESPONDENT (voice-over): Silent senators. Now, that's a rare sight these days. As Congress tries to wrap up its work, insults are flying. In one particularly colorful outburst, John Dingell, considered the dean the House, said, Democrats are like mushrooms. We're kept in the dark and fed horse 'blank.'" Of the Republicans, he said, "There's no end to the rascality of these flinty hearted bastards."
His big complaint is Democrats have been frozen out of Medicare and energy negotiations. Republicans are angry too.
SEN. MITCH MCCONNELL (R), KENTUCKY: Callow, petulant characterizations have been direct the at our leader.
KARL: He's complaining about No. 2 Democrat Harry Reid who called Republican Leader Bill Frist "a rank amateur who has turned the Senate floor into a carnival."
Reid later apologized for the rank amateur comment but was so upset by Frist's leadership that he brought the Senate to a halt Monday by speaking for nearly nine hours straight.
SEN. HARRY REID (D-NV), MINORITY WHIP: Don't think that we can just be pushed around with no say in what goes on around here because we have say in what goes on around here.
KARL: And the work of the Senate will ground to halt on Wednesday as Republicans set aside 30 straight hours to complain that Democrats have stymied the president's judicial nominations.
SEN. RICK SANTORUM (R), PENNSYLVANIA: It is unwise and unconstitutional and we're going to try to point that out.
KARL: And this comes after the Senate Intelligence Committee has been paralyzed by a furor over a Democratic memo that outlined a political strategy for the investigation into prewar intelligence on Iraq.
SEN. BILL FRIST (R-TN), MAJORITY LEADER: Those responsible for this memo appear to be more focused on winning the White House for their party than on winning the war against terror. KARL: With all the fighting, Congress is having a hard time getting anything done. Republicans blame Democrats, but Democrats say their hands are clean.
SEN. TOM DASCHLE (D-SD), MINORITY LEADER: You'll recall our Republican colleagues saying over and over and over again, they control the Senate. And if they control the Senate, they ought to be held responsible.
KARL (on camera): As all of the name-calling goes on in front of the cameras, behind closed doors, negotiations are under way on major Medicare and energy bills. If those pass, this Congress will likely be seen as one that accomplished quite a bit. If not, you can expect more finger-pointing about who is to blame for the inaction.
Jonathan Karl, CNN, Capitol Hill.
(END VIDEOTAPE)
DOBBS: The presidential election is now a year away. Democratic candidates who have served in the armed forces are making a big issue of their military background.
The latest example is a television advertisement by Senator John Kerry which highlights his service and his national security experience in Congress.
Senior political analyst Bill Schneider joins us with a report.
Bill, does military service still matter for these presidential candidates?
WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST: Well, Lou, for about 10 years after the Cold War ended in 1991, military service really didn't seem to make much difference politically. You remember, George Bush the elder, Bob Dole, John McCain, all had heroic military records. But the country elected two figures, Clinton and George Bush, who had never served in a war.
Now, September 11 really did make an enormous difference. National security is back on the agenda and military service counts. For two of the Democratic contenders, it's the big centerpiece of their campaign. One of them is John Kerry, and the other is Wesley Clark, both of whom served with distinguished records in Vietnam. The other candidate -- another candidate, Howard Dean, is a bit defensive. He says: I'm running with just as much experience in world affairs as George Bush had when he became president.
I think my point is, if Bush were running for the first time in 2004, rather than 2000 -- that is, after September 11 -- he'd have a much harder time getting elected.
DOBBS: Bill, we probably should point out that while neither Bill Clinton, nor George W. Bush were in combat, George W. Bush was at least in the National Guard. SCHNEIDER: Yes, he was. And he is a veteran. But neither one of them had experience in a war overseas. Neither one was a combat veteran, certainly not compared with George Bush's father or Bob Dole or John McCain.
DOBBS: In fairness, those three individuals have unique, distinguished military backgrounds few could compete with.
Bill, just exactly what is John Kerry trying to do with this new television ad?
SCHNEIDER: Well, he's running this ad that draws a contrast between his own heroic military experience as a war veteran with President Bush's photo opportunity after the war in Iraq. Take a look.
(BEGIN VIDEO CLIP, KERRY CAMPAIGN AD)
NARRATOR: Who can take on George Bush and change the direction of the nation? John Kerry, a leader on national security, a decorated combat veteran, served on the Intelligence Committee, the Foreign Relations Committee. John Kerry.
(END VIDEO CLIP)
SCHNEIDER: There's a problem, however. And that is that the issue that's energizing Democrats this year isn't the military or military service. It's anti-war, specifically the war in Iraq.
So all the candidates who are touting their military credentials have to somehow jujitsu that into a criticism of Iraq. General Clark does it by arguing, as he did in a debate last month, you don't start a military operation unless you know how you want it to end; this president did not know how he wanted Iraq to end.
DOBBS: Bill, the -- is the president, in your judgment, then, vulnerable on Iraq? It seems if things were to improve there markedly, he that would not be. What's your judgment?
SCHNEIDER: He does look vulnerable on Iraq right now. His approval ratings on Iraq are dropping. The latest figure shows about 45 percent support the way he's handling Iraq.
Americans haven't turned against the war. They still think it was the right thing to do to overthrow Saddam Hussein. But they think the postwar situation in Iraq is being very poorly managed. On the other hand, when Americans are asked, "How do you think President Bush is handling the war on terrorism?" they clearly see that as different from Iraq, because the president's ratings on that are about 65 percent, so that I think Americans do trust this president on national security issues.
He's had on-the-job training. But, on the other hand, it's what the United States is doing now in Iraq that's the target of criticism.
DOBBS: Bill, thank you very much -- Bill Schneider. Coming up next here: My next guest knows firsthand the value of military service to this nation and the men and women who serve, General David Grange, a decorated Vietnam veteran. And he joins us.
And one company's innovative solution to the growing problem of illegal aliens and the strain on this country's hospitals. Casey Wian will report from Tijuana, Mexico.
Please stay with us.
(COMMERCIAL BREAK)
DOBBS: We are reporting extensively here about the growing number of illegal aliens in this country and the access that these 10 million illegal aliens have to state and federal health care programs and other benefits. At the local level, illegal aliens cost communities in the Southwestern states alone more than $1 billion a year in health care. But now one company has found a unique way to save those cities and towns money and to send illegal aliens home.
Casey Wian reports from Tijuana, Mexico.
(BEGIN VIDEOTAPE)
CASEY WIAN, CNN CORRESPONDENT (voice-over): This 17-bed Mexican hospital is easing some of the $76 million financial burden illegal aliens place on San Diego hospitals. Scripps La Jolla is one of six hospitals now offering to pay to transfer some illegal alien patients to Tijuana's hospital Engles (ph), in part because it's cheaper and it frees beds for other patients.
DR. BRENT EASTMAN, CHIEF MEDICAL OFFICER, SCRIPPS: We know that one in four uninsured patients that we care for in our hospitals in San Diego County are undocumented immigrants. This is a way to ultimately defray some of those costs. But it never, ever addresses or interferes with the quality of those patients' care.
WIAN: The transfers are voluntary for the patient. About 80 percent accept the offer.
BOB BARRAZA, PRESIDENT, NEXTCARE: I think what's in it the most for the patient is that he knows he's going to get some continued care and he's going to get it in an environment that he's comfortable with, with the cultural similarities, the food, the communication. And the biggest thing is, is his family can now visit him.
WIAN: Hospitals pay NextCare to move patients by ambulance to Tijuana, then eventually to their hometown. NextCare says it can cut hospital costs in half. Only recovering patients that are medically stable, generally leading convalescent care, are eligible.
(on camera): So far, NextCare says it has transferred 55 patients from hospitals in San Diego to this facility in Mexico. Eventually, it expects it business to stretch all along the border from California to Texas. (voice-over): Just this week, Scripps was contacted by a Texas hospital interested in sending some of its patients home. Even if the program spreads, it can only do so much. Most of the money hospitals spend on illegal aliens is for trauma and emergency care, which, legally, hospitals must provide, even to those who break the nation's immigration laws.
Casey Wian, Tijuana, Mexico.
(END VIDEOTAPE)
DOBBS: Coming up next: "Exporting America." Tonight, the story of an American company forced out of business by cheap foreign competition and labor and the thousands of American workers left behind. Peter Viles will have the report.
And we'll be joined by former U.S. Ambassador to China James Sasser. He will join us to tell us why China, in his opinion, isn't to blame.
Stay with us.
(COMMERCIAL BREAK)
DOBBS: Tonight, our special report -- the massive shipment of U.S. manufacturing jobs overseas has changed the lives of millions of Americans. This summer, one community in North Carolina was especially hard hit when textile maker Pillowtex was driven out of business by foreign cheap labor, cheap imports. Now thousands of people are struggling to find new jobs. For them, free trade is anything but free.
Peter Viles is here now and has the report -- Pete.
PETER VILES, CNN CORRESPONDENT: Lou, there's a great deal of focus on retraining these laid-off manufacturing workers for other jobs. The problem in places like Kannapolis, North Carolina, is that better jobs are hard to find.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: Look at this new statement, which is, the Internet is the next level.
VILES (voice-over): After 15 years in a factory, Brenda Miller is retraining for a new job in a county where unemployment stands at 11 percent.
BRENDA MILLER, LAID-OFF TEXTILE WORKER: The workers are not doing good. There are no jobs to replace the jobs that they have lost.
VILES: Pillowtex, a maker of sheets and towels, shut down in July, driven out of business by cheap imports, nearly 5,000 workers lost their jobs. DONALD MALLO, HUMAN RESOURCES, PILLOWTEX: Our people adapted. They were loyal. They would do anything to make this company survive. We just -- and we tried different ways to let that happen, just were not successful.
VILES: The federal government responded with $20 million in emergency aid to extend unemployment benefits, offer free tuition at community colleges, and pay 65 percent of the cost of health insurance.
KRISTY CARTEE, LAID-OFF TEXTILE WORKER: I know a lot of people that have been paying $1,000 a month just for health care.
VILES: Still, laid-off workers are swamping community colleges. This one expects 2,000 students from Pillowtex alone.
RICHARD BROWNELL, ROWAN-CABARRUS COMMUNITY COLLEGE: We're chockablock full in every direction on both campuses, day and night. We've spilled over into other public spaces. We're using high schools at night.
VILES: Among the most popular career paths at this community college, nursing, automotive repair, truck drive, heating and cooling systems maintenance. Brenda Miller hopes for a job in marketing.
MILLER: We hope that, by the time we get our degrees, that, during this two-year period, there will be some kind of economic turnaround in the state to where, when we graduate, there will be jobs to go to.
(END VIDEOTAPE)
VILES: The stubborn fact, though, is that workers who go through retraining generally settle for new jobs that pay less than their old ones, 70 to 80 cents on the dollar on average. At least, though, Lou, they usually do find jobs after retraining. About 70 percent are reemployed within three months of finishing the program.
DOBBS: The impact is lower wages.
VILES: Lower wages.
DOBBS: Less disposable income to buy products, because these people are, after all, consumers as well.
VILES: Sure. And much lower benefits. The benefits in these manufacturer jobs are generally better than average, health insurance and a pension.
DOBBS: Then that confirms a growing trend across the country, for various reasons, in addition to simply losing jobs because of cheap imports. That is less health care, lower wages. And that pressure is being felt throughout the economy.
How long does it take, typically, if there is such a thing as typical, for an employee who loses his or her job to find work again? VILES: Sure. Right.
The government gives them two years of benefits. But, on average, they only use about a half of that, because it's hard to make ends meet on unemployment. So, on average, about 50 weeks and they're back in the work force.
DOBBS: Peter Viles, thank you very much.
Cheap labor in China is only part of the trade dispute with China. China is manipulating its currency. It is also blocking U.S. exports to China. But my next guest says the White House has accused China of unfair trade practices for its own political reasons, using China as a scapegoat for economic problems in this country.
James Sasser is a former U.S. ambassador to China, also a former Senate from the state of Tennessee. And he joins us tonight from Washington. Good to have you with us.
JAMES SASSER, FORMER U.S. AMBASSADOR TO CHINA: Thank you. Good to be with you, Lou.
DOBBS: The issues with china, $130 billion current account deficit, it's rising to where we don't know, but we know it's accelerating. Why is there, in your judgment, a scapegoating of China when the problem seems to be so obvious?
SASSER: Well, I think the real problem is the fact that American and European multinationals over a period of many years have rushed into China. China's been the recipient of over $500 billion in direct foreign investment, a lot of it coming from the United States. And I don't think we ought to blame the Chinese simply for doing what comes naturally when Motorola and General Motors and others come in and set up plants in China, you can't expect them to exclude them. And if they did, then we, of course, would bring trade actions against them under the World Trade Organization regime.
DOBBS: So, with $130 billion deficit rising, worsening, all of the time, and let's leave out the scapegoating issue because if there is scapegoating it seems it's for a separate reason.
SASSER: Yes.
DOBBS: What is your solution?
We can continue to export our wealth, our capital, and our jobs to China in perpetuity.
SASSER: Well, some of it's coming back. For example, the Chinese In last 18 months that bought $100 billion worth of U.S. government securities. The Japanese bought $150 billion. So between the Chinese and the Japanese, they pretty much financed our federal government deficit over the past few years. And we've got to make a decision about where we're going. I mean, the United States, over a period of -- a number of years has been the chief advocate of free trade, has been the chief advocate of globalization and now, when it starts biting us, we start crying about it. And that's just one of the effects of globalization. It's hit the Europeans country have been hit harder than us.
DOBBS: Well, when you're in pain, shouldn't you cry?
Should you not when there's a problem that's is reaching crisis proportions and not deal with it, I guess is my question to you. You mentioned $100 billion in purchases in U.S. securities, both debt and equity. Further purchases by Japan, they're not doing us any favors there as you well know, ambassador. Those are claims on ownership of U.S. assets. That's not particularly great.
SASSER: Well, no, they're parking a lot of the money that's going from the U.S. to China and to Japan is being parked in the Federal Treasury. The Federal Treasury uses those bonds to finance the deficit. Which keeps interest rates low here.
DOBBS: This is where -- what do you do with a poor fellow like me, ambassador?
I don't like high deficits. I don't like exporting jobs. And I think we ought to have a responsible, fair trade policy that does not result in such a inequity and the relationship and I sure don't like our overseas competitors in this world trade system holding, as they do, $2.5 trillion worth of claims on American assets.
SASSER: Well, Lou, that's just -- that's just the way the cookie crumbles these days. And the truth is that American corporations operating in china make larger profits in China than they do any other foreign country in this world.
DOBBS: That's just -- that's just (UNINTELLIGIBLE). But what about the people losing their jobs? At what point -- I mean we don't say the cookie crumbles here. We've got to go farther than that, ambassador.
SASSER: I agree with that. But we are the author of our own misfortunes here.
DOBBS: I take full responsibility. You can blame me personally. But what I'm crying out for is a solution because it cannot -- can it, go on?
SASSER: I'm not the wisest man in the world. I don't know what the solution is, but the economists tell us that over time, globalization will level out. It's going to be a very, very painful process, I think, to absorb these vast labor markets in China and in India and Mexico. That's the direction we're headed.
DOBBS: It may be one we're headed but I kind of react when people tell me we don't have control of our destiny in this country. As one has been responsible for shaping that destiny, I'd just like to get a sense what in the world is so spectacular as having Wal-Mart the fifth largest importer of Chinese goods.
What is so spectacular about outsourcing of American jobs? What is spectacular about raising all of these barriers to U.S. exports at the same time pushing down wage levels in this country?
This doesn't sound to me like it has a happy ending when it levels out.
SASSER: Lou, you're making a very passionate and strong argument there. I would question some of your facts.
DOBBS: Let's go.
SASSER: China, for example, has joined the World Trade Organization. They are busily now lowering tariffs which is causing vast unemployment in the Chinese state-owned industries. They have 200 million people in their country unemployed and they have to create 20 million jobs every year. So I feel badly about our workers, but their workers in other countries that have severe problems as well.
DOBBS: Well, not to put too...
SASSER: If you think our problems are bad wait till you see the Europeans. I mean, they've been running these double digit employment -- unemployment rates now for years.
DOBBS: Ambassador, not to put too fine a point on it, the fact is, I care about those American jobs before I care about the Chinese. I care about American capital before I can worry about European capital. And I can't, for the life of me, understand why American lawmakers and policymakers wouldn't have that set of priorities to begin with.
SASSER: Well, Lou, it has been the American multinational corporations who have pushed globalization. It's American multinational corporations that wanted the trade pack with Mexico. It's American multinational corporations that wanted to force open the China market with WTO. When I say we've done it to ourselves to a certain extent, we have. But this is the way the world works now. We cannot wall ourselves off.
DOBBS: Ambassador, I wouldn't have us wall ourselves off for anything. We're the farthest thing from being walled off. But when we start tearing up the hard working men and women of this country where their jobs, the jobs, the average pay is declining, where those jobs are fewer, where we are giving up on the issue of tariffs, the president of this administration, as you know, a huge decision to make on whether or not to lift the tariffs on steel or face retaliation from the European Union.
At what point do you say, the pain is too great for Americans?
SASSER: I think that...
DOBBS: And that is a priority?
SASSER: I think that's a statement for Americans to make for themselves and to make it through their lawmakers. Now for example, on the steel tariffs, it's raised the price of American automobiles here in this country and parenthetically, Lou, General Motors makes over a $1,000 per unit -- per unit that they assemble in China. They make just about $50 per unit here in the United States last year. So it's our corporations, really that are reaping these very large profits and in many area's it's low wage or labor intensive low cost industries that are paying the price.
DOBBS: Ambassador Sasser, if those profits were resulting in more investment in capital and plant and equipment and more jobs in the country, I'd say hooray. But you and I both know that isn't what's happening, right?
SASSER: Well, I don't know about that. I think what -- I don't want to get into the position of defending the multinational corporations here. But I'm saying they are a powerful political and economic force in this country. And they're the ones who push globalization.
DOBBS: Don't you think this should be at the forefront amongst the top issues for our Democratic candidates and this president to deal with in this election year?
SASSER: I most certainly do.
DOBBS: Ambassador, you just reached absolute agreement on an issue. Ambassador James Sasser, always good to talk with you. We thank you for being here.
SASSER: Lou, good to talk to you. Thanks.
DOBBS: Thank you, sir.
Coming up next, American troops fighting to defend this country while American veterans at home are fighting to protect their most basic right
Pentagon correspondent Barbara Starr, reports on government plans to close some VA hospitals.
And the secretary of the Department of Veteran's Affairs, Anthony Principi, is our guest. We'll be right back. Please stay with us.
(COMMERCIAL BREAK)
DOBBS: Stocks down for a third straight day. The Dow down almost 19 points. The Nasdaq fell almost 11. The S&P down a point and a half. A new report on the economy finds new jobs, however, are on the way, but they're not quite the same as those jobs lost in recent years. Christine Romans is here with the story -- Christine.
CHRISTINE ROMANS, CNN FINANCIAL NEWS CORRESPONDENT: A report for the U.S. Conference of Mayors. It says you can take jobless out of jobless recovery, Lou. There are jobs on the way, coming in the next couple of years in administrative and health care jobs, hotels, bars and restaurants. But those jobs will pay almost 18 percent less than the millions of jobs lost in the past three years. Less than $36,000 on average, $43,000 is the average for the jobs that were lost.
The economy will add the most jobs in administrative work, at an average wage of $26,000. Health care will pay a little bit more, but look at those lower weighing restaurant and hotel jobs.
And don't expect, the survey says, to see those higher-paying manufacturing careers to come back. Mayors in this country obviously concerned that those manufacturing and information technology positions, positions that you can raise a family on, are being replaced by the McJob, such a phenomenon it's landed in the Merriam Webster dictionary. This is the quote: "A low-paying job that requires little skill and provides little opportunity for advancement." McDonald's says that description is an insult to its many workers, but this study from the U.S. Conference of Mayors says that that is exactly the kind of jobs that will be around for the next couple of years. The high-paying jobs probably aren't coming back.
DOBBS: You know, I think in this case, Merriam, the Webster people, they're wrong on this one. McJob is sort of a dumb word for it. What it is is a low-paying job, and in many cases we shouldn't attach that name to it. It's -- it's more infuriating to think about those jobs being lost that are sufficient at least in pay to raise a family in this country. The squeeze goes on on working Americans.
ROMANS: It does.
DOBBS: Christine Romans, thank you.
ROMANS: Sure.
DOBBS: The government is facing a growing issue over health care for this nation's veterans. Some veterans are protesting a government plan that would shut down a number of VA hospitals, in an effort, of course, to cut costs and improve care. Pentagon correspondent Barbara Starr reports.
(BEGIN VIDEOTAPE)
BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): Veterans protesting the proposed shut down of their Waco, Texas, hospital. The government claims it is no longer needed. Veterans say it will force them to drive more than 100 miles for care.
Health care is always an emotional issue for veterans, especially now, as a decision is expected by year end on a plan to overhaul VA medical care nationwide.
Veterans are a shifting population. Many moving from the Northeast and the Midwest to the Sunbelt. The result?
ANTHONY PRINCIPI, SECRETARY OF VETERANS AFFAIRS: We're spending close to $400 million every year to heed and maintain facilities that are empty.
STARR: The plan is to close seven existing hospitals in areas that no longer have a large veteran population, open new hospitals in areas where veterans are moving, new blind rehabilitation centers and spinal cord injury centers.
And to fill the gaps, 48 free-standing clinics across the country will be opened. Veterans groups say unused facilities should be closed, but they are worried.
STEVE ROBINSON, NATIONAL GULF WAR RESOURCE CENTER: As they dose clown these facilities, it's going to create situations where veterans have to travel much greater distances to receive care than they currently do.
STARR: Vietnam veterans are especially concerned.
RICK WEIDMAN, VIETNAM VETERANS OF AMERICA: They're angry, because it discriminates against rural areas, they're angry because it discriminates against an older, sicker population. They're angry because they see it as a cut, which in fact it is.
STARR: Veterans groups say the administration may be ignoring the real problem. As veterans age, and perhaps grow more ill and as more veterans emerge from the war in Iraq, more money will be needed for basic medical care.
Barbara Starr, CNN, Washington.
(END VIDEOTAPE)
DOBBS: Joining me now talk about those issues and other health care issues facing this country's veterans is Anthony Principi. He is secretary of the Department of Veterans' Affairs. Mr. Secretary, good to have you with us.
PRINCIPI: Good evening, Lou. Thank you.
DOBBS: I assume that you heard Barbara Starr's report. How do you respond to those concerns?
PRINCIPI: It's critically important that we modernize our health care system. We were built at a different age. First expansion came after World War I in the 1920s, and then another major expansion after World War II in 1946. And we need to conform our health care system to the 21st century medicine. And as Barbara indicated, the demographics of the veteran population -- they are moving to different parts of the country so we need to build new hospitals, open up more outpatient clinics so veterans don't have to drive four or five hours. They can access health care close to their home.
DOBBS: As you and I have discussed, and I have acknowledged, I think you have one of the toughest jobs in all of the -- all of Washington, running an immense health care, the largest health care operation in the country dealing with one of our great national treasures, our veterans. You can't, at this point, satisfy all of the demands on service -- for services from those veterans. But as you and I talked in August, you said that there would be no more waiting lines by the end of this year if you had your way. How are you progressing toward that as we reach -- we near year's end? PRINCIPI: We're getting very close. I'm very, very proud of the progress we've made. You know, it wasn't too long ago that we had about 300,000 veterans on waiting list, waiting more than six months for care. Today we have that number less than 50,000. Hopefully with the appropriation bill that we'll receive this year, we'll dramatically increase our budget. We'll be able to rapidly approach the point in time where veterans will not have to wait more than 30 days for primary care.
We still have a ways to go, Lou, but we're making progress. And I'm very proud of that.
DOBBS: Issues -- we hear from this audience, Mr. Secretary, a very sophisticated, a very smart audience, talking about rollbacks on combat pay, the number of veterans who thought they had health care provided under the veterans -- their veterans' credentials, irrespective of the era. There are people who have written in and said, I thought because I was a combat veteran I would be eligible for health care from the veterans administration and walked in in March and found out I was not covered at all. Is there any way to begin addressing those issues, or is this where we're going to stay?
PRINCIPI: No, I think we are addressing those issues and very aggressively. You know, we've increased the number of veterans we have treated over the past three years by 1.2 million. And outpatient visits have increased from 38 million to 50 million. So we're making great progress. And, you know, veterans are eligible. The higher income -- we suspended enrollment for veterans with no military disabilities who had higher incomes. But by and large, the demand for VA health care is growing rapidly and we're attempting to address it.
DOBBS: Anthony Principi, secretary of the Department of Veterans Affairs, we thank you very much for being with us on this very important day for all of us, honoring our nation's veterans. Thank you, sir.
PRINCIPI: Thank you for having me, Lou. Thank you.
DOBBS: Coming up next -- one of this country's most decorated military heroes joins us to share his views on the value and importance of veterans, and some of the government's promises broken to those men and women. General David Grange will be with us. Please stay with us.
(COMMERCIAL BREAK)
DOBBS: The theme of today's Veterans Day parade in Palm Springs California, is "Salute to the Troops." And this -- these pictures are coming to you live from Palm Springs. The participants in this Veterans Day parade include soldiers and Marines who have fought in Iraq and the war against Saddam Hussein. Also participating tonight are Pearl Harbor survivors, Vietnam veterans and at least one recipient of the Medal of Honor.
My next guest acquired his knowledge of war from the frontlines, fighting in Vietnam, where he earned three Silver Stars, two Purple Hearts. He commanded the 1st Infantry Division, the Big Red One in Germany and also commanded the Ranger regiment. Just a few of his accomplishments over 30 years of distinguished military service.
General David Grange joins me now. Good to have you with us.
BRIG. GEN. DAVID GRANGE (RET.), CNN MILITARY ANALYST: Thank you, Lou.
DOBBS: This day is one that typically Americans pay sort of attention to cursorily in the most off-handed ways. But with our men and women in combat, we thought it would be appropriate to talk a little bit more about the day and start with its origins.
GRANGE: Well, you know, it started as Armistice Day, I believe, in 1938. And then in 1953, small businessman named Alvin King -- he went ahead and said, Look, this thing has to support more than just the World War I veterans are, but all veterans -- all veterans that served. And so he -- he did a parade in Emporia, Kansas. And then later on, in 1954 Congress and President Eisenhower went ahead and made it a recognized Veterans Day, November 11, for all veterans of all services and all wars.
DOBBS: You have fought in a number of places around the globe over 30 years, returning home from various conflicts. As you look at it, what is the difference between those young men and women returning from combat now and in previous eras?
GRANGE: There's not a lot of difference.
One, the G.I. wants to know that the American people still have the will, the resolve to continue on whatever they're committed to.
They also want to be appreciated and remembered. Remembered for instance, like the World War II memorial that, though. almost 60 years late, will be established next year, May 29, in Washington, D.C. Those things are very important to the G.I.
And the last thing is they want to know that what they did, the sacrifices of themselves and their buddies, that it was worth it. Very important.
DOBBS: As you know, I've just been talking with the secretary of the Department of Veterans Affairs, Anthony Principi. You know him very well. A veteran himself, a man of sincere commitment to the needs and the interests of veterans.
Where have we most importantly let down, broken promises, to our veterans, in your judgment?
GRANGE: Yes, I think very highly of the secretary. He does care and I really mean that. I worked with Vietnam Memorial Foundation, the wall, with him on several occasions.
The problem is he has to prioritize because there's not enough resources applied to his program to serve almost 25 million veterans across the United States of America. And so really, it's on the shoulders of the president and Congress, even though more money than ever's been allocated, it not enough, because the requirements have risen, medically as well as some of the inequities between the reserve component and the active component, which must be fixed.
DOBBS: Absolutely. General Dave Grange, we thank you for being with us on this Veterans Day.
GRANGE: My pleasure. Thank you, Lou.
DOBBS: When we continue, some of your thoughts on our special report "Exporting America."
Stay with us.
(COMMERCIAL BREAK)
DOBBS: Taking a look now at some of your thoughts.
From St. Paul, Minnesota, "Every one seems so shocked that people are losing their jobs left and right, when all you need to do is ask them this one question -- take a look at everything you own, from clothes to kitchenware to car parts. Where was it all made?" That from Mike Chevalier.
And from Tryon, North Carolina, "We can blame the CEOs, the government, China or India, but the truth is, that only when we, the American people, but our money where our mouths are and start refusing the products and services of companies that are exporting American jobs will this issue be truly resolved."
And from North Plainfield, New Jersey, "Lou, can't say enough about your relentless approach to showing what is happening to American jobs!!! Thanks to you and your staff, maybe someone in Washington will wake up soon. All I know is that if they were exporting lawyers, we would have put a stop to it already." That from Jim Pooley.
And from Hanover, Massachusetts, "Secretary Evans," who was with us last evening, "stated that we should have a level playing field in trade with China. Well, we are leveling the field. We will be level with China in a couple of years." That from Perry Greogorcy.
And from Salinas, California, "What happened to logic? First, the president said it's getting better in Iraq because we're having more casualties. Then the commerce secretary says we're helping the economy by creating more jobs in China." That from Young Chang.
And from Flushing, New York, "Exporting America. I guess if I had large business, I would export jobs. I wouldn't have to worry about medical benefits, unions, taxes, the government telling me who I can hire and fire. Yeah, I would export jobs." That from Mike Cotelidis.
And from Glenn Allen, Virginia, "I notice the only ones not concerned about exporting America are the politicians and CEOs we should be exporting." Please sent us your thoughts at loudobbs@cnn.com.
That's our show for tonight. We thank you for being with us. For all of us here, good night from New York, as we all salute veterans on this Veterans Day.
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Interview with Veterans Affairs Secretary Anthony Principi>
