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Lou Dobbs Tonight
Bush Won't Set Hand-Over Date for Saddam Hussein; U.S.-China Trade Must Change Course
Aired June 15, 2004 - 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.
LOU DOBBS, CNN ANCHOR: Tonight, President Bush refuses to set a date for the hand-over of Saddam Hussein to the Iraqis.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We're going to make sure there's appropriate security.
(END VIDEO CLIP)
DOBBS: China is threatening the strength of the U.S. economy and national security. That's the finding of a bipartisan congressional commission. Its chairman, Roger Robinson, is my guest.
Troubling new questions tonight about the security of our borders and the government's inability to stop the influx of illegal aliens. I'll be joined by the president of the National Border Control Council, T.J. Bonner.
And Congress gives corporate America a massive tax break.
(BEGIN VIDEO CLIP)
REP. CHARLES RANGEL (D), NEW YORK: You've taken this $4 billion problem and created it into a $140 billion tax cut.
(END VIDEO CLIP)
DOBBS: Democratic Congressman Charlie Rangel will join me tonight. I'll also be joined by Republican Congressman Jim McCrery who says the tax cuts will benefit all of us.
ANNOUNCER: This is LOU DOBBS TONIGHT for Tuesday, June 15. Here now for an hour of news, debate and opinion is Lou Dobbs.
DOBBS: Good evening.
Tonight, the United States and the new Iraqi government are struggling to reach agreement about the future of Saddam Hussein.
The new Iraqi prime minister insists that the United States hand over Saddam Hussein to Iraqi authorities within the next two weeks. But, today, President Bush said that will not happen, not until the United States is satisfied that adequate security is in place. The Army chief of staff, General Peter Schumacher, today said he is very concerned about security in Iraq. General Schumacher said American soldiers, in fact, will be no safer after the transfer of sovereignty on June 30 than now.
John King reports -- John.
JOHN KING, CNN SENIOR WHITE HOUSE CORRESPONDENT: Lou, in some ways, perhaps considered a sign of tension. The new interim Iraqi leaders saying they want Saddam Hussein turned over to them as soon as possible. President Bush making clear today that turnover could wait until at least sometime after the turnover of sovereignty to the new Iraqi government on June 30.
You see Mr. Bush here in the Rose Garden within the Afghan president, Hamid Karzai. Mr. Karzai held out by Mr. Bush as an example that, after war, there can come the early steps toward democracy. Saddam Hussein came up in the question-and-answer session.
Again, the new Iraqi leader saying turn him over so he can be brought to trial for torture, mass murder and corruption. Mr. Bush says perhaps not right away.
(BEGIN VIDEO CLIP)
BUSH: We want to make sure he doesn't come back to power, and so, therefore, it's a legitimate question to ask of the interim government. How are you going to make sure he stays in jail? And that's the question I'm asking.
(END VIDEO CLIP)
KING: U.S. officials say their biggest concern is that there could be some confusion in lines of authority, especially in the security sphere, right after the hand-over of sovereignty at the end of the month.
Publicly, they say the new Iraqi government trying to assert its independence from the United States. Privately, U.S. officials say their conversations about when Saddam Hussein will be turned over are going quite well, they do not expect any problems on this one.
Another sensitive issue that has a lot do with the coming transfer of sovereignty is what to do with the radical Shiite cleric Muqtada al-Sadr. Now he, of course, has been blamed for violence in Najaf, in Fallujah, in Kabul and other places.
Coalition forces as recently as two months ago, as outlined in this Defense Department document, had orders to capture or kill him, but, in the Rose Garden today, Mr. Bush had a much softer line.
(BEGIN VIDEO CLIP)
BUSH: The interim Iraqi government will deal with al-Sadr in the way they see fit. It's -- they're sovereign. When we say we transfer full sovereignty, we mean we transfer full sovereignty. And they will deal with him appropriately.
(END VIDEO CLIP)
KING: White House officials say that is more evidence that Mr. Bush has to leave, whether he likes it or not, some of these most sensitive decisions, including what to do with Mr. al-Sadr up to the new Iraqi government. Otherwise, they say, Lou, if Mr. Bush were dictating what should happen after the hand-over of sovereignty, many would immediately then question the independence of that new interim government -- Lou
DOBBS: Any indication there at the White House, John, as to what they expect to happen with Muqtada al-Sadr in the hands and the sovereignty of the new Iraqi government?
KING: No expectation because of confusing signals out of Iraq. Some have said he should be prosecuted. There is no doubt that the lead cleric, Mr. Sistani, is not known to be a fan of al-Sadr. He has said al-Sadr should have his military lay down their arms. He has criticized him.
But other Iraq officials, including the interim president just today, saying that perhaps if Mr. Sadr tells his militia to stop the violence, he could become at least a consultant, some advisory voice to the new government.
So conflicting signals. The White House does not know, Lou, how that one will play out.
DOBBS: John King, our senior White House correspondent.
Thank you, John.
In Iraq today, insurgents attacked international contractors for a second straight day.
Jane Arraf reports from Baghdad -- Jane?
JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: Lou, not only that, a major attack on the oil pipeline that leads to the terminals in the Gulf.
Now this was one of two major pipelines in the South near the Gulf that was hit by sabotage. An explosion ripped apart part of it. The second was shut down for checks afterwards, and it has halted exports through that pipeline going to the oil terminals in the Gulf.
Now that means that Iraq could lose tens of millions of dollars in lost oil revenue a day.
And not only in the South, an attack in the North on a pipeline near the Kirkuk oil fields as well.
In what some officials say is also an attack on the infrastructure, another convoy of civilian contractors ambushed on a road near the airport today. Some of them killed. It's unclear how many.
That follows the attack, of course, by a suicide car bomb that killed five foreign nationals, including employees of General Electric, when it hit during morning rush hour in central Baghdad, as their convoy was passing through on Monday morning -- Lou.
DOBBS: Jane, thank you very much.
Jane Arraf reporting from Baghdad.
A dramatic new development tonight in the case of an American being held hostage by al Qaeda terrorists in Saudi Arabia. Radical Islamists released a videotape of a man who identified himself as a Lockheed Martin contractor.
(BEGIN VIDEO CLIP)
PAUL JOHNSON, JR., AMERICAN HOSTAGE IN IRAQ: Paul Marshal Johnson, Jr., American. I'm an American from the United States. I work on Apache helicopters.
(END VIDEO CLIP)
DOBBS: A masked man who spoke on the video demanded that Saudi Arabia free al Qaeda prisoners. He also ordered all westerners to leave Saudi Arabia. The man said Johnson will be killed within 72 hours if Saudi Arabia does not meet the demands of the terrorists.
There was new violence in the Israeli-Palestinian conflict today. A car bomb exploded in Gaza when Israeli soldiers opened fire on the vehicle. The driver was killed in that blast. There were no Israeli casualties. Israeli troops said the car was packed with more than 200 pounds of explosives.
Turning now to politics in this country a Democratic congressman today filed ethics charges against House Majority Leader Tom DeLay. The Democrat accused Congressman DeLay of bribery, fraud and abuse of power. Congressman DeLay struck back, accusing the Democrats of character assassination. Some Republicans are now threatening to launch a counterattack against leading Democrats.
Joe Johns has the report.
(BEGIN VIDEOTAPE)
JOE JOHNS, CNN CONGRESSIONAL CORRESPONDENT (voice-over): Outgoing Texas Democrat Chris Bell filed the first known ethics complaint in seven years against a member of the House Republican leadership; the target: Congressman Tom DeLay, the second most powerful Republican in the House.
REP.CHRIS BELL (D), TEXAS: It's my opinion that Mr. DeLay is the most corrupt politician in America today.
JOHNS: The complaint charges DeLay traded contributions from companies like Westar Energy for access to pending legislation, illegally funneled corporate money to Texas state candidates through a political action committee he set up called Texans for a Republican Majority, and improperly used his office to track a private plane carrying Texas Democrats who fled Austin last year to avoid voting on a controversial redistricting plan.
DeLay said he welcomes an ethics investigation and that there's no substance to the complaint. "None of these things have any validity. All of this action is nothing but character assassination by the Democrats," he said.
For the House, the question is whether the complaint will trigger retaliation by Republicans, a war of ethics charges between the parties.
REP. ERIC CANTOR (R), VIRGINIA: These are nothing but trumped-up charges that have been in the news before. I think that they are -- there is no basis upon which anybody can act on them, and they will be dismissed.
(END VIDEOTAPE)
JOHNS: Again, these charges have been heard before. They've been written about extensively in newspapers and magazines. There's no clear indication, of course, that any of these charges have been handled by the House Ethics Committee.
Republicans simply say Bell is bitter because he lost his primary seat in a redistricting battle. Of course, that redistricting plan was supported by Tom DeLay -- Lou.
DOBBS: Joe, what is the next step here on the part of the Ethics Committee?
JOHNS: I'm sorry. I didn't hear you.
DOBBS: What is the next step on the part of the Ethics Committee?
JOHNS: I see. The Ethics Committee has several days to look at this and find out whether this is, in fact, a legitimate, properly brought complaint. After that, they'll go through a calendar, about 45 days, to decide what to do about that complaint. Tom DeLay himself has about 30 days to respond to it.
So it's a fairly long process, and, if need be, they can actually get extensions of time. So we don't expect this to be cleared up real soon -- Lou.
DOBBS: Joe, thank you very much.
Joe Johns reporting from Capitol Hill.
Elsewhere on the Hill today, the House Committee on Homeland Security opened a hearing into this country's numerous problems with border security. Our nation's borders stretch for 6,000 miles, yet there are only 11,000 Border Patrol agents guarding them. Lisa Sylvester reports from Washington.
(BEGIN VIDEOTAPE)
LISA SYLVESTER, CNN CORRESPONDENT (voice-over): Customs and border protection agents' hands are tied because their job no longer includes enforcement. Instead, they have to man their posts for eight to 10 hours a day to serve as a deterrent. It's part of a bureaucratic decision that critics say is jeopardizing national security.
T.J. BONNER, NATIONAL BORDER CONTROL COUNCIL: Even if they see people walking directly in front of them or right off to their side, that they are to do nothing but report it to someone else, and, in most cases, there is no one else to report it to. So these people simply evade apprehension.
UNIDENTIFIED MALE: We're going to be heading down toward the statue.
SYLVESTER: After the 9/11 attacks, the task of policing the U.S. Border fell to two new agencies in the Department of Homeland Security, the Bureau of Immigration and Customs Enforcement and Customs and Border Protection. It's been an uneasy marriage, the two agencies not always cooperating, according to congressional critics.
REP. JOHN SHADEGG (R), ARIZONA: I'm disinclined to believe that everything is hunky-dory and that the agencies are working well together.
VICTOR CERDA, HOMELAND SECURITY DEPARTMENT: But, clearly, there are going to be instances where there's going to be coordination issues that arise, and, frankly, the answer to that is coordination and leadership within the DHS.
SYLVESTER: Not enough agents, an ongoing hiring freeze and a lack of other resources are also a concern. To the north, 1,000 agents are assigned to cover 4,000 miles of land and water border. On the southern border, there are not enough places to hold illegal detainees.
SERGIO UGAZIO, NATIONAL INS COUNCIL: It is on a daily basis in this country aliens are caught crossing the border illegally and released and paroled in because of lack of detention bed space. Where are you going to put these people once they're captured?
SYLVESTER: In instances when illegal aliens are ruled out as a threat, they are released into the U.S. population and told to report for a future immigration hearing.
(END VIDEOTAPE)
SYLVESTER: Border agents say also bringing down morale is a hiring freeze and talk of a new pay-for-performance system. Critics worry it will lead to favoritism and political jockeying, making it harder to do their job -- Lou. DOBBS: Lisa, what was the reaction of the members of the Homeland Security Committee?
SYLVESTER: Well, many of the members of the committee -- they were not aware that this problem was ongoing or at least as serious as it was brought to light today. I think that there was a sense that, you know, they're working out the kinks between the two agencies, but the fact that national security is in jeopardy or may be in jeopardy is a new concern -- Lou.
DOBBS: They weren't concerned with nearly a million illegal aliens being apprehended each year and as many, it is estimated, crossing our borders? They're just now concerned?
SYLVESTER: It certainly is one of those things that, if it rises to the level of national security, it seems to grab their attention a little bit more. But, Lou, since you've been putting this issue on the forefront, a lot of people now realize what a big problem immigration is as well -- Lou.
DOBBS: Lisa, thank you.
Lisa Sylvester reporting from Washington.
We'll have much more on this issue and on broken borders later in this broadcast when I'll be joined by the president of the National Border Patrol Council, T.J. Bonner, who, of course, testified before the House Committee today, as Lisa reported.
Well, how concerned are you about border and port security? That is the subject of our poll tonight. Very? Somewhat? Not at all? Please cast your vote at cnn.com/lou. We'll have the results for you later in the broadcast.
Still ahead here tonight, strained relations between the United States and China. A new bipartisan congressional commission report finds China could be jeopardizing our economic and national security. We'll have a special report. And I'll be talking with the head of the U.S.-China Commission, Roger Robinson.
And a massive new tax break for corporate America. It's passed the House Ways and Means Committee. I'll be joined by two members of that committee who have very different views about the legislation -- Democratic Congressman Charles Rangel and Republican Congressman Jim McCrery.
And then the race for the White House and the debate over whether this economy is booming or not. I'll be talking with an economic adviser to the president's campaign, Mark Sumerlin.
All of that, a great deal more still ahead.
(COMMERCIAL BREAK)
DOBBS: A troubling new report tonight on the strained relations between the United States and China. According to the report commissioned by Congress, a bipartisan report, a number of current trends in that relationship are "in need of urgent attention and course correction," and the exploding trade deficit with China is only the beginning.
Kitty Pilgrim reports.
(BEGIN VIDEOTAPE)
KITTY PILGRIM, CNN BUSINESS CORRESPONDENTS (voice-over): Crate after crate, aisle after aisle, Chinese goods. The U.S.-China Economic and Security Review Commission says that is a problem.
RICHARD D'AMATO, VICE CHAIRMAN, U.S.-CHINA COMMISSION: Chinese nonmarket and mercantilist trade practices have tilted the playing field unfairly against U.S. interests and need to be addressed by U.S. government more aggressively.
PILGRIM: U.S. imports from China outpace exports by more than 5 to 1, part of what the report calls the most lopsided trade relationship the United States has. The United States imports $152 billion worth of goods from China, but only exports $28 billion. The report finds that contributes to the erosion of U.S. manufacturing jobs, something critical to the nation's economic and national security.
JOHN TRACIK, HERITAGE FOUNDATION: The erosion of a manufacturing base to China is a problem for the United States because, frankly, a world superpower cannot survive as a superpower without an industrial base. It's just impossible.
PILGRIM: And the report recommended the U.S. Trade Representative Office should investigate China's system of government subsidies from manufacturing and address China's exchange manipulation.
In the broader context, some China experts think the U.S. relationship will be a difficult one.
KURT CAMPBELL, CENTER FOR STRATEGIC & INTERNATIONAL STUDIES: The idea that is underscored in this report is that it's possible to have a strong, stable relationship with China? I don't buy it. I think by its very nature, U.S.-Chinese relations are going to be complex and contradictory for years, perhaps decades, to come.
PILGRIM: On the issues of security, the report finds some disturbing trends. China is buying time by reassuring its neighbors of long-term peaceful intentions. Meanwhile, it's strengthening its military. And the report questions China's commitment to a peaceful approach to Taiwan or preserving Hong Kong's autonomy.
(END VIDEOTAPE)
PILGRIM: Now China is important for its role in brokering talks with North Korea, and that, says the report, will be the true test of U.S.-China relations. But that role should not rule out investigating other practices the United States finds damaging to its economy or its national security -- Lou.
DOBBS: Remarkable. This report is simply remarkable on every aspect. Kitty, thank you.
Kitty Pilgrim.
I'm joined now by the chairman of the U.S.-China Economic and Security Review Commission, Roger Robinson, who joins us tonight from our Washington, D.C., bureau.
Good to have you here.
This report, as you undoubtedly realized as you were preparing it, is a blockbuster in terms of the direction of this administration's policy and the one before it, the Clinton administration?
ROGER ROBINSON, U.S.-CHINA ECONOMIC AND SECURITY REVIEW COMMISSION: Well, Lou, we're mandated by the Congress to look at the downside risk in this very expansive and complex bilateral relationship, arguably the most complex of any this country faces.
The Congress is very engaged in matters concerning U.S.-China trade, both on the economic and the national security front. So it's not surprising that they would want a series of metrics or an ability to measure year to year where we are in that relationship.
Are we making significant progress, are we at a standstill, or is our situation actually deteriorating? And we found out to our chagrin that it was primarily the latter.
DOBBS: Roger, there are many people -- and,frankly, I would have to be very candid with you and tell you I'm amongst those -- who are not surprised by the findings on the trade deficit. China is engaging in managed trade, trying to achieve maximum surpluses wherever it possibly can.
Why, in your judgment, as you review these policies, has this administration in particular followed policies that resulted in almost $130 billion deficit last year with China and a deficit that's running 20 percent higher this year?
ROBINSON: If we look at the underpinnings of this massive trade deficit, which is, by the way, on track to setting a new record this year, we find a number of disturbing issues that haven't been adequately treated, in the view of the commission.
Obviously, the currency manipulation issue is right at the top of that list, some 15 percent to 40 percent undervalued in our estimation. A significant repegging to a basket of currencies is urgently required. We have an array of subsidies from capital to labor and others that have not been sufficiently treated, and we've been very reticent, as you know, to hold China's feet to the fire concerning its WTO commitments and bringing these issues to the settlement dispute mechanism. DOBBS: Not only has this administration -- and, again, in all fairness, the Clinton administration before -- been hesitant to bring about any sort of balanced trade approach to China. In point of fact, there's been a delinking of political and economic policy toward China.
Is it -- as you've assessed what is happening in this relationship with what is happening in Hong Kong and other issues of human rights within China mainland, is it a time to consider tying political interests -- U.S. political interests -- and commercial interests into a policy for China?
ROBINSON: Well, one thing you've mentioned, Lou, that I think I agree with and the commission would buy as well is this notion of being very careful about the undue and inappropriate linkage of national security foreign policy issues with the trade issues.
There are many that would argue that, for example, the administration -- and even previous administrations -- might have been willing to look the other way on unfair trade practices and competition in favor of bigger picture foreign policy and national security goals.
You know that the North Korean nuclear crisis is at the top of that list today. How much are we not holding Chinese feet to the fire in the effort to secure greater Chinese cooperation in the resolution of that crisis?
We think that these issues should be dealt with on their own merits, that we have for too long allowed this honeymoon and in effect debilitating circumstance to be able to be maintained.
DOBBS: And you and your commission have raised a critical issue in terms of the manufacturing base that has been lost specifically to China, and that is, of course, the importance of a solid, comprehensive manufacturing base to provide for the national security interests of this country. How alarming do you think the current situation is? What are the prospects of resolving it?
ROBINSON: Well, you know, since our commission was conceived in the year 2000, there have been overall some 2.8 million manufacturing jobs lost, some 17 percent of total manufacturing jobs. We're trying to explore, you know, what is China's level of responsibility for that massive erosion.
But you're quite right when you think of the manufacturing base as a fundamental national security issue of the United States. Economic security and national security are inextricably linked. I think we've learned that for some time now, and it's certainly the new reality of the 21st Century.
So we are now at -- in a circumstance where we have to take very seriously the idea that unfair trade practices are contributing in such a material way to that erosion and take concrete steps to reverse the situation. We offer the Congress some 38 recommendations to do this, and we feel that Congress is very alert to the kind of presentations that the commission's making in this reporting cycle.
DOBBS: Roger Robinson, chairman of the U.S.-China Commission.
We thank you for being here.
ROBINSON: Thank you, Lou.
DOBBS: In this country, many Americans find it impossible to get the attention of elected officials to hear their concerns.
In France today, utility workers tried a somewhat unique tactic to reach the politically powerful and sometimes indifferent members of government. Workers in France simply cut off their power, quite literally. Utility workers shut off electricity to the home of France's prime minister and several other politicians. They also cut production at nuclear and other power plants by up to 25 percent.
All of that part of a protest against the partial privatization of the French power industry.
French workers also took part in demonstrations around the country. Several thousand utility workers exercised their legs, if not their power, marching in Paris.
Still ahead here tonight, a massive tax giveaway for corporate America? The House Ways and Means Committee passes tax cuts of nearly $150 billion. I'll be talking with two members of the committee, Republican Congressman Jim McCrery and Democratic Congressman Charles Rangel next.
And Broken Borders, our special report. Border Patrol agents suffering from low morale, not enough resources, and an all but impossible mission. I'll be talking with the president of the National Border Patrol Council T.J. Bonner.
That and a great deal more coming right up.
(COMMERCIAL BREAK)
ANNOUNCER: LOU DOBBS TONIGHT continues. Here now for more news, debate and opinion, Lou Dobbs.
DOBBS: Late last night, the House Ways and Means Committee passed a massive tax cut for corporate America. Backers say the measure will create jobs. Critics say the bill is so riddled with gifts for big business that it's beginning to look like a Christmas tree.
Peter Viles reports.
(BEGIN VIDEOTAPE)
PETER VILES, CNN CORRESPONDENT (voice-over): Only in Washington does Christmas come in June in the form of a $149 billion tax cut for corporate America, special presents in there for tobacco farmers, for the makers of bows and arrows and fishing tackle boxes, and for Eskimos that hunt whales. The 400-page bill was supposed to fix a simple problem, $4 billion in tax breaks ruled illegal by the World Trade Organization.
RANGEL: You've taken this $4 billion problem and created it into a $140 billion tax cut.
VILES: Republicans say the tax breaks for manufacturers and multinationals will create American jobs. They're calling the bill the Jobs Creation Act of 2004.
REP. KEVIN BRADY (R), TEXAS: I think 90 percent of the bill is targeted right at creating U.S. jobs.
VILES: But Democrats say the fine print will actually encourage more of the same overseas outsourcing.
REP. LLOYD DOGGETT (D), TEXAS: It will encourage corporations to ship jobs overseas. It advantages their earnings in doing that. It does not provide any incentives for corporations to keep those jobs at home.
VILES: The bill's so loaded up with special favors one Democrat said it had been sprinkled with fertilizer.
REP. CHARLES RANGEL (D), NEW YORK: I want this bill to reach the floor as fast as possible, because it stinks to high heaven.
VILES: And only in Washington could that criticism be taken as a compliment.
REP. BILL THOMAS (R), CHMN, WAYS & MEANS CMTE.: Thank you, gentleman for the compliment indicating that this is a bill put together in the traditional way.
(END VIDEOTAPE)
VILES: If you're wondering who drives this kind of legislation, well take a close look at your stock portfolio. Supporters include IBM, General Electric, Eli Lilly, General Motors, Home Depot, Pfizer, Microsoft, and the list, Lou, goes on and on.
DOBBS: This is shocking, corporate America is supporting a $150 billion tax break for corporate America.
VILES: Corporate America. Very enthusiastically. And looks like everybody in corporate America got something.
DOBBS: And obviously spent something to get this much. Peter Viles, thank you very much.
I'm joined now by Congressman Charles Rangel, ranking Democrat on the Ways and Means Committee. As we reported, he says this corporate tax bill stinks to high heaven. Also with us tonight, Jim McCrery, also a member of the Ways and Means Committee, who says this bill will benefit American workers. Gentlemen, good to have you with us.
And if I may Congressman McCrery, how in the world are we going to benefit from this huge tax cut for corporate America?
REP. JIM MCCRERY (R), LOUISIANA: In three ways, Lou. Number one, the bill repeals the tax subsidies or the export subsidies that have been declared illegal by the WTO, and as a result the European Union has imposed tariffs on a number of American made goods which will make those goods, eventually when tariffs are fully phased in, uncompetitive in the world market place. So, that's number one.
Number two, we give a corporate rate cut to manufacturers in this country for goods that they sell from manufacturing here in this country. Number three, we revise, we modernize our international tax code to make our multinational corporations based here in the United States more competitive in the international market place. Those are three ways that we will lower the cost of doing business for American companies, making them more competitive, allowing them to create more jobs at home.
DOBBS: My goodness, congressman. The most recent survey, 63 percent of U.S. corporations don't even pay federal tax. But this legislation, you say, will only provide a tax break for a U.S. corporation manufacturing and keeping jobs in the United States?
MCCRERY: It will cut taxes for manufacturing income derived from manufactured products here in the United States, yes, that is correct. And also -- it also cuts taxes for corporations based here in the United States that have overseas operations. Those overseas operations are in direct competition with foreign companies in those foreign markets.
DOBBS: Ahh. Congressman Rangel, you said this is solving a $4 billion problem with $140 billion in tax breaks. Sounds, listening to Congressman McCrery, that there's some good things in here?
RANGEL: Let's take the first thing. He said that by removing the tariffs that the European Union are placing on us, it would create jobs. Well, all we have to do is to say that we are going remove the $50 billion subsidy and that would have taken care of that problem. We could have used that subsidy to provide incentives for Americans to keep manufactures to keep those jobs in the United States. And so it's senseless to say that was the $4 billion problem.
So he's right, we removed that, but it didn't take $150 billion to do it. When he says that we cut corporate tax rates here, of course we've done that here. But we have given the incentives to the multinational corporations not to think in terms of United States jobs, but to think certain terms of investors and where the profits would be.
They say they want us to be strong and competitive. Well, I do, too. But I want them to have some sense that having a productive work force in America is good for them and good for America. The Republican idea is, a strong international has to be competitive with foreign corporation so we should give them the incentive to be competitive where? Here in the United States, no. To take the jobs to foreign countries.
DOBBS: Congressman McCrery (AUDIO GAP) on those jobs?
MCCRERY: Well, Congressman Rangel, I think, mischaracterizes the bill and intent of the bill. The intent of the bill is to make American companies more competitive in the market place here in the United States and in the world market place. The world market place has changed. It's more competitive. A number of nations have modernized their tax systems while we have not. And that has put our American companies trying to compete in those overseas markets at a disadvantage. This bill will somewhat correct that and make our companies more competitive. That will support jobs here at home that make many of the components that are exported to those foreign operations to be assembled and sold in those foreign markets.
DOBBS: You know, congressman, I appreciate that and your perspective, but as one who's been covering this issue vigorously and rigorously, let me ask you something. Did you all in the committee -- and I know that your chairman, Bill Thomas, is a man who loves numbers and likes to be very precise.
How many jobs will $140 billion in tax cuts create?
How competitive will it make U.S. multinationals?
And, more importantly, I guess at the end of the day, how much of our trade deficit will be reduced as a result of this legislation?
MCCRERY: Well, let me give you some numbers, Lou. American multinational corporations export a lot of their goods made here in America to overseas. And, in fact, 40 percent of their exports go to their own foreign subsidiaries to make things overseas. If it were not for those overseas operations, the home base jobs would go away. So these provisions will not only create new jobs, they will preserve jobs that are already here. It's a world market. We no longer have the luxury of just being able to sell to ourselves and expect to grow...
DOBBS: I quite understand that, Congressman. I quite understand that, Congressman. But my question is how much will it...
MCCRERY: Those are undeniable facts, those are numbers.
(CROSSTALK)
DOBBS: Well, those are numbers but they're not necessarily responsive to the question I asked.
How much of the trade deficit will be eliminated, how many jobs will be created, Congressman?
MCCRERY: Well, in the last four months we've created over one million jobs here in this country. I think to enable that to continue, we've got to modernize our tax system and make our American corporations more competitive in the world market place. That's what this bill is all about.
RANGEL: I got some numbers, Lou. DOBBS: Yes, sir.
RANGEL: This bill -- this bill is so lousy that they could not even get Republicans to support it. So what do they do, they put a $10 billion bailout program for tobacco farmers. And where do they recruit the votes, from Democrats who represent tobacco farmers. So they're willing to pay $2 billion a year for 10 years for a subject matter that our committee has no jurisdiction at all. But yet, Mr. Thomas and the Republicans put it in the bill. When one of our members want to put something in the bill, and saying we know that you think that we'll get some high-paying jobs, but we're going to lose our manufacturing jobs. Can we put something in the bill to protect those workers and make the transition easier?
They said that was out of order. But tobacco, which is an Agricultural Committee issue, was in order.
DOBBS: So $140 billion over 10 years for tax breaks to be competitive, as opposed to $250 million in retraining for workers who lose their jobs to foreign competition. It sounds like it's going to be an interesting fight in the House. And I thank both you, Congressman McCrery and you, Congressman Rangel, for taking time to help us better understand this late night legislation.
MCCRERY: Thank you, Lou.
RANGEL: Thank you, Lou.
Still ahead here, "Broken Borders." Dangerously low morale amongst our country's border patrol agents. And it is a Homeland Security national security issue. The head of the National Border Patrol Council, T.J. Bonner, is my guest.
And more finger pointing about the nation's economy on the campaign trail this week. I'll be talking with a top economic adviser for the Bush/Cheney campaign.
Boom or not a boom. Stay with us.
(COMMERCIAL BREAK)
DOBBS: As we reported, the House Select Committee on Homeland Security today held a hearing on the many problems facing us with border security. My next guest testified before the committee today. T.J. Bonner says our borders are no more secure now than they were before September 11th.
T.J. Bonner is the president of the National Border Patrol Council and joins us tonight from Washington. Good to have you with us.
T. J. BONNER, PRESIDENT, NATIONAL BORDER PATROL COUNCIL: Good to be here.
DOBBS: Your statements, other testimony before the Homeland Security Committee today frankly were chilling and should be, in my judgment at least, deeply concerning to every American.
How in the world two and half years, more than two and half years after September 11 have we gotten into this situation at our borders?
BONNER: I'm not sure who to point fingers at, but we certainly are in a mess. Morale is at an all-time low and agents are just waiting for other agencies, state and local, to get some money so they start hiring again. When that happens, there will be a mass exodus of border patrol agents.
DOBBS: A mass exodus, at the same time as Lisa Sylvester reported tonight, border patrol agents are basically forced to step aside under current policy, and are not even apprehending illegal aliens as they cross the border.
Is that correct?
BONNER: That's correct. And it's just amazing. And it's a major source of frustration and demoralization. Agents are forced to sit eight to 10 hours a day in one spot in order not to move from that spot, even if aliens are crossing within yards of them. It's really mind boggling, Lou.
DOBBS: Who made that decision, who issued that order?
BONNER: This comes straight from the top and nobody has signed an order to that effect, but those are the standing orders out there in the field, and if agents violate them, they are subject to discipline.
DOBBS: And what -- you said morale is low -- what in the world are border communities -- how are they responding to these orders and to basically a sweep of the hand by the border patrol inviting illegal aliens in?
BONNER: It's not just the border communities, Lou, it's every part of America, because illegals don't camp out right at the border after they make an entry. They are heading to the heartland of America, to take jobs away from American citizens.
DOBBS: And we have at this point simply a procedure whereby border patrol agents are not effectively in any way guarding our borders. Illegal aliens once apprehended are said -- are given an -- or issued an order to appear before a hearing, but in point of fact, no one is following up to make certain that occurs, and in fact it doesn't.
Is that right?
BONNER: Probably, 90 to 95 percent of the people who are issued to show cause to appear, abscond, they never show up. And we don't even require a bona fide address. We have no way to verify it in the first place, but we don't even require it.
DOBBS: And the reaction of the committee, is there a dawning taking place anywhere in Washington? BONNER: I haven't seen it yet, Lou. I don't know what to say. I don't know what it's going to take to wake these people up. To wake up, not just the Congress, but to wake up America, as to what's going on. Because this is not just an issue of economics of people coming across to take jobs, mixed in with that could well be a number of terrorists. So it's clearly a matter of homeland security.
DOBBS: T.J. Bonner, we thank you for being with us here tonight.
BONNER: Thank you.
DOBBS: Very sobering. A reminder to vote in our poll tonight. How concerned are you about border and port security, very, somewhat, or not at all?
Cast your vote at cnn.com/lou. We'll have results for you later in this broadcast.
Still ahead here, President Bush says a vote for Senator Kerry is a vote for pessimism. Economic adviser to the Bush/Cheney campaign, Mark Sumerlin is our guest.
And "America Works." Tonight we introduce you to a man whose office is one of the most spectacular landscapes in the world, as this week we celebrate the men and women who make America work. Stay with us.
(COMMERCIAL BREAK)
DOBBS: Senator Kerry is promising to end the middle class squeeze in America. Senator Kerry, blaming that squeeze on President Bush's economic policies. Today in Atlantic City Senator Kerry told members of the AFL-CIO quote, "America needs a president who fights for your job as hard as he fights for his own." Senator Kerry also told the union members his economic plan will create and keep good paying jobs in the United States.
My next guest doesn't think Senator Kerry's economic plan will solve the problems of this country. He says, in fact, President Bush's plan has already put this economy back on track.
Joining me now, Mark Sumerlin, he's economic adviser to the Bush/Cheney campaign and follows last night's appearance by Gene Sperling, economic adviser to Senator Kerry.
Good to have you with us, Mark.
MARK SUMERLIN, ECONOMIC ADVISER, BUSH/CHENEY CAMPAIGN: Thank you, Lou. It's a pleasure to be here.
DOBBS: We've seen this economy pick up, 1.2 million jobs created since the beginning of the year, large questions about the quality of those jobs and still a huge number of jobs to be created. Are you confident that we're going see those jobs created in the next four, five months so that President Bush does not have to take that handle of being along with Herbert Hoover the only president to not create jobs in his presidency?
SUMERLIN: Absolutely, Lou. The economy is firing on all cylinders right now. Over the last four months we had over one million new jobs created. And importantly, 74 percent of those are in industries that pay above average wages. So, these are actually good jobs that are being created. Today we got a good consumer confidence number. A manpower survey two days ago showed 30 percent of employers are looking to add workers over the next three months. So, all signs are pointing that these job gains that have been very strong in the last three months will continue for awhile.
DOBBS: Yet, eight -- more than eight million American are unemployed, the trade deficit is at record levels and shows no sign of abating.
What is the president going to do about it?
He keeps talking about free trades. Says just keep the faith. And meanwhile our manufacturing base, you just heard Roger Robinson, the chairman of the China/U.S. Commission, say that we've got to have a course direction and what we hear from the administration is, if we're going to stay the course, they're not going to be economic isolationists, by God, they're going to be free traders.
What's the president going to do?
SUMERLIN: Right. Well, the manufacturing sector has had a tough time and the president is absolutely concerned anyone -- any time anyone loses a job. This comes out of the bursting of a huge economic bubble from the 1990s. And so it really required aggressive fiscal and monetary policy to get the country back on track. But if you look at the ISM manufacturing employment index, it stands at the highest level since 1974, so things have been improving, and are turning around. Productivity growth is strong, which helps with our competitiveness. And the president is really working to tear down barriers wherever they are.
Let me give you a quick example. Before the president took office, if Caterpillar was selling a bulldozer to Chile, it would cost $11,000 more than a similar bulldozer from the European Union. The new Chilean free trade agreement will put those on equal terms. Which will help Caterpillar, an important U.S. company, compete with everyone else. So, I think the president's absolutely going to be as aggressive as possible with our trading partners. We have to be careful not to go into economic isolationism. Senator Kerry has promised to review all U.S. trade agreements in the first four months of office. Last time we tried something that resembled building walls around this country was after the Smoot-Hawley tariffs and world commerce dropped by 67 percent.
DOBBS: There you go. Either free trade or economic isolationism.
You do acknowledge, Mark, that there are a few policies that could be within those two polar extremes pursued?
SUMERLIN: Absolutely, Lou.
DOBBS: Mark, I'd like you to come back -- we're out of time -- and continue the discussion. And we appreciate your being here. Mark Sumerlin...
SUMERLIN: Thank you very much.
DOBBS: ... Economic adviser to the Bush/Cheney campaign. Coming up next, prices are rising, but wages, they're not rising.
Christine Romans will be here to report on the latest middle class squeeze.
And America is working. "America Works." For more than three decades, this man has worked to ensure the safety of the millions of people who visit the Grand Teton National Park every day. We'll tell you about this job. We'll have his story, stay with us.
(COMMERCIAL BREAK)
DOBBS: On Wall Street, stocks higher today. The Dow up almost 46 points, the Nasdaq up almost 26, the S&P up almost 7. A lot almost today.
Alarming new numbers tonight on American wages. Christine Romans is here with the story -- Christine.
CHRISTINE ROMANS, CNN CORRESPONDENT: Lou, Americans' living standards are falling. They're paying more for food and gas and bringing home less money. Real wages fell again in May and the trend has worsened, even as all those jobs have been created over past six months. When, many ask, will workers get their fair share?
Company profits have soared 62 percent in the past three years. Labor compensation has risen only 3 percent. And that's largely pension contributions, and health care benefits. Take-home pay has fallen. And it's worse the farther down the income scale you go. Lou, last year's pay gains 1.6 percent were the slowest in 40 years. This year is shaping up to be no better. Today, Alan Greenspan acknowledged this, but said he thinks wages will eventually play catchup.
DOBBS: Let's hope he didn't say eventually meaning the long run.
Christine, thank you.
This week we're featuring our special reports, "America Works." We're celebrating the hardworking Americans who make this country great. Tonight's report takes us to the Grand Teton National Park, in Jackson Hole, Wyoming. That's where Park Ranger Jim Springer patrols some of the park's 300,000 acres.
Bill Tucker has the story.
(BEGIN VIDEOTAPE)
BILL TUCKER, CNN CORRESPONDENT (voice-over): Some jobs you do for the money. Some jobs you do for your soul.
JIM SPRINGER, RANGER: Nobody's doing this for the money.
TUCKER: Jim Springer's been a park ranger since 1972. This is where he and his fellow park rangers live for the summer. Springer like his fellow rangers is hooked on the mountains. He was born out here, grew up here and now he has a family of his own.
SPRINGER: I have two boys, 12 and 7. They come out here and they mostly go barefoot and run around. And they don't -- there's no electronic toys, hardly any toys. They just kind of head out the door in the morning and show up when they're hungry. No TV, no CNN. We do go on hikes and overnight hikes. My son's climbed the Grand Teton, and it's wonderful.
TUCKER: But summer only lasts four months in Jackson Hole.
SPRINGER: In the wintertime I am an avalanche forecaster for the local ski area and also for the forest service as an avalanche technician.
TUCKER: Which brings us to the other part of a ranger's job.
(on camera): Over three million people a year visit the Grand Teton National Park. With that many people, things can and sometimes do go wrong. Last year lightning struck instantly killing one hiker, injuring the rest of the party and setting off a massive rescue. Springer and his fellow rangers like Leo Larson (ph) regularly train for such events which were seldom as dramatic.
UNIDENTIFIED MALE: We probably do 40 or 50 rescues a year.
TUCKER (voice-over): And the way those rescues are carried out has changed over the years.
SPRINGER: Now we get cell phone calls. So we're finding out sometimes within minutes that an accident's happened. We're geared up. We have a helicopter on special contract with the park here and they can be up here in about 20 minutes.
TUCKER: Good to know if you're out for a walk in the mountains and things go wrong.
Bill Tucker, CNN, Jackson Hole, Wyoming.
(END VIDEOTAPE)
DOBBS: Coming up next we'll have the results of tonight's poll. Stay with us.
(COMMERCIAL BREAK)
DOBBS: A poll result, 84 percent of you say you're very concerned about border and port security.
Thanks for being with us. Tomorrow House minority leader, Nancy Pelosi, joins us and we'll have our "Face-Off" on the Patriot Act.
Thanks for being here. Good night from New York. "ANDERSON COOPER 360" is next.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired June 15, 2004 - 18:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
LOU DOBBS, CNN ANCHOR: Tonight, President Bush refuses to set a date for the hand-over of Saddam Hussein to the Iraqis.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We're going to make sure there's appropriate security.
(END VIDEO CLIP)
DOBBS: China is threatening the strength of the U.S. economy and national security. That's the finding of a bipartisan congressional commission. Its chairman, Roger Robinson, is my guest.
Troubling new questions tonight about the security of our borders and the government's inability to stop the influx of illegal aliens. I'll be joined by the president of the National Border Control Council, T.J. Bonner.
And Congress gives corporate America a massive tax break.
(BEGIN VIDEO CLIP)
REP. CHARLES RANGEL (D), NEW YORK: You've taken this $4 billion problem and created it into a $140 billion tax cut.
(END VIDEO CLIP)
DOBBS: Democratic Congressman Charlie Rangel will join me tonight. I'll also be joined by Republican Congressman Jim McCrery who says the tax cuts will benefit all of us.
ANNOUNCER: This is LOU DOBBS TONIGHT for Tuesday, June 15. Here now for an hour of news, debate and opinion is Lou Dobbs.
DOBBS: Good evening.
Tonight, the United States and the new Iraqi government are struggling to reach agreement about the future of Saddam Hussein.
The new Iraqi prime minister insists that the United States hand over Saddam Hussein to Iraqi authorities within the next two weeks. But, today, President Bush said that will not happen, not until the United States is satisfied that adequate security is in place. The Army chief of staff, General Peter Schumacher, today said he is very concerned about security in Iraq. General Schumacher said American soldiers, in fact, will be no safer after the transfer of sovereignty on June 30 than now.
John King reports -- John.
JOHN KING, CNN SENIOR WHITE HOUSE CORRESPONDENT: Lou, in some ways, perhaps considered a sign of tension. The new interim Iraqi leaders saying they want Saddam Hussein turned over to them as soon as possible. President Bush making clear today that turnover could wait until at least sometime after the turnover of sovereignty to the new Iraqi government on June 30.
You see Mr. Bush here in the Rose Garden within the Afghan president, Hamid Karzai. Mr. Karzai held out by Mr. Bush as an example that, after war, there can come the early steps toward democracy. Saddam Hussein came up in the question-and-answer session.
Again, the new Iraqi leader saying turn him over so he can be brought to trial for torture, mass murder and corruption. Mr. Bush says perhaps not right away.
(BEGIN VIDEO CLIP)
BUSH: We want to make sure he doesn't come back to power, and so, therefore, it's a legitimate question to ask of the interim government. How are you going to make sure he stays in jail? And that's the question I'm asking.
(END VIDEO CLIP)
KING: U.S. officials say their biggest concern is that there could be some confusion in lines of authority, especially in the security sphere, right after the hand-over of sovereignty at the end of the month.
Publicly, they say the new Iraqi government trying to assert its independence from the United States. Privately, U.S. officials say their conversations about when Saddam Hussein will be turned over are going quite well, they do not expect any problems on this one.
Another sensitive issue that has a lot do with the coming transfer of sovereignty is what to do with the radical Shiite cleric Muqtada al-Sadr. Now he, of course, has been blamed for violence in Najaf, in Fallujah, in Kabul and other places.
Coalition forces as recently as two months ago, as outlined in this Defense Department document, had orders to capture or kill him, but, in the Rose Garden today, Mr. Bush had a much softer line.
(BEGIN VIDEO CLIP)
BUSH: The interim Iraqi government will deal with al-Sadr in the way they see fit. It's -- they're sovereign. When we say we transfer full sovereignty, we mean we transfer full sovereignty. And they will deal with him appropriately.
(END VIDEO CLIP)
KING: White House officials say that is more evidence that Mr. Bush has to leave, whether he likes it or not, some of these most sensitive decisions, including what to do with Mr. al-Sadr up to the new Iraqi government. Otherwise, they say, Lou, if Mr. Bush were dictating what should happen after the hand-over of sovereignty, many would immediately then question the independence of that new interim government -- Lou
DOBBS: Any indication there at the White House, John, as to what they expect to happen with Muqtada al-Sadr in the hands and the sovereignty of the new Iraqi government?
KING: No expectation because of confusing signals out of Iraq. Some have said he should be prosecuted. There is no doubt that the lead cleric, Mr. Sistani, is not known to be a fan of al-Sadr. He has said al-Sadr should have his military lay down their arms. He has criticized him.
But other Iraq officials, including the interim president just today, saying that perhaps if Mr. Sadr tells his militia to stop the violence, he could become at least a consultant, some advisory voice to the new government.
So conflicting signals. The White House does not know, Lou, how that one will play out.
DOBBS: John King, our senior White House correspondent.
Thank you, John.
In Iraq today, insurgents attacked international contractors for a second straight day.
Jane Arraf reports from Baghdad -- Jane?
JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: Lou, not only that, a major attack on the oil pipeline that leads to the terminals in the Gulf.
Now this was one of two major pipelines in the South near the Gulf that was hit by sabotage. An explosion ripped apart part of it. The second was shut down for checks afterwards, and it has halted exports through that pipeline going to the oil terminals in the Gulf.
Now that means that Iraq could lose tens of millions of dollars in lost oil revenue a day.
And not only in the South, an attack in the North on a pipeline near the Kirkuk oil fields as well.
In what some officials say is also an attack on the infrastructure, another convoy of civilian contractors ambushed on a road near the airport today. Some of them killed. It's unclear how many.
That follows the attack, of course, by a suicide car bomb that killed five foreign nationals, including employees of General Electric, when it hit during morning rush hour in central Baghdad, as their convoy was passing through on Monday morning -- Lou.
DOBBS: Jane, thank you very much.
Jane Arraf reporting from Baghdad.
A dramatic new development tonight in the case of an American being held hostage by al Qaeda terrorists in Saudi Arabia. Radical Islamists released a videotape of a man who identified himself as a Lockheed Martin contractor.
(BEGIN VIDEO CLIP)
PAUL JOHNSON, JR., AMERICAN HOSTAGE IN IRAQ: Paul Marshal Johnson, Jr., American. I'm an American from the United States. I work on Apache helicopters.
(END VIDEO CLIP)
DOBBS: A masked man who spoke on the video demanded that Saudi Arabia free al Qaeda prisoners. He also ordered all westerners to leave Saudi Arabia. The man said Johnson will be killed within 72 hours if Saudi Arabia does not meet the demands of the terrorists.
There was new violence in the Israeli-Palestinian conflict today. A car bomb exploded in Gaza when Israeli soldiers opened fire on the vehicle. The driver was killed in that blast. There were no Israeli casualties. Israeli troops said the car was packed with more than 200 pounds of explosives.
Turning now to politics in this country a Democratic congressman today filed ethics charges against House Majority Leader Tom DeLay. The Democrat accused Congressman DeLay of bribery, fraud and abuse of power. Congressman DeLay struck back, accusing the Democrats of character assassination. Some Republicans are now threatening to launch a counterattack against leading Democrats.
Joe Johns has the report.
(BEGIN VIDEOTAPE)
JOE JOHNS, CNN CONGRESSIONAL CORRESPONDENT (voice-over): Outgoing Texas Democrat Chris Bell filed the first known ethics complaint in seven years against a member of the House Republican leadership; the target: Congressman Tom DeLay, the second most powerful Republican in the House.
REP.CHRIS BELL (D), TEXAS: It's my opinion that Mr. DeLay is the most corrupt politician in America today.
JOHNS: The complaint charges DeLay traded contributions from companies like Westar Energy for access to pending legislation, illegally funneled corporate money to Texas state candidates through a political action committee he set up called Texans for a Republican Majority, and improperly used his office to track a private plane carrying Texas Democrats who fled Austin last year to avoid voting on a controversial redistricting plan.
DeLay said he welcomes an ethics investigation and that there's no substance to the complaint. "None of these things have any validity. All of this action is nothing but character assassination by the Democrats," he said.
For the House, the question is whether the complaint will trigger retaliation by Republicans, a war of ethics charges between the parties.
REP. ERIC CANTOR (R), VIRGINIA: These are nothing but trumped-up charges that have been in the news before. I think that they are -- there is no basis upon which anybody can act on them, and they will be dismissed.
(END VIDEOTAPE)
JOHNS: Again, these charges have been heard before. They've been written about extensively in newspapers and magazines. There's no clear indication, of course, that any of these charges have been handled by the House Ethics Committee.
Republicans simply say Bell is bitter because he lost his primary seat in a redistricting battle. Of course, that redistricting plan was supported by Tom DeLay -- Lou.
DOBBS: Joe, what is the next step here on the part of the Ethics Committee?
JOHNS: I'm sorry. I didn't hear you.
DOBBS: What is the next step on the part of the Ethics Committee?
JOHNS: I see. The Ethics Committee has several days to look at this and find out whether this is, in fact, a legitimate, properly brought complaint. After that, they'll go through a calendar, about 45 days, to decide what to do about that complaint. Tom DeLay himself has about 30 days to respond to it.
So it's a fairly long process, and, if need be, they can actually get extensions of time. So we don't expect this to be cleared up real soon -- Lou.
DOBBS: Joe, thank you very much.
Joe Johns reporting from Capitol Hill.
Elsewhere on the Hill today, the House Committee on Homeland Security opened a hearing into this country's numerous problems with border security. Our nation's borders stretch for 6,000 miles, yet there are only 11,000 Border Patrol agents guarding them. Lisa Sylvester reports from Washington.
(BEGIN VIDEOTAPE)
LISA SYLVESTER, CNN CORRESPONDENT (voice-over): Customs and border protection agents' hands are tied because their job no longer includes enforcement. Instead, they have to man their posts for eight to 10 hours a day to serve as a deterrent. It's part of a bureaucratic decision that critics say is jeopardizing national security.
T.J. BONNER, NATIONAL BORDER CONTROL COUNCIL: Even if they see people walking directly in front of them or right off to their side, that they are to do nothing but report it to someone else, and, in most cases, there is no one else to report it to. So these people simply evade apprehension.
UNIDENTIFIED MALE: We're going to be heading down toward the statue.
SYLVESTER: After the 9/11 attacks, the task of policing the U.S. Border fell to two new agencies in the Department of Homeland Security, the Bureau of Immigration and Customs Enforcement and Customs and Border Protection. It's been an uneasy marriage, the two agencies not always cooperating, according to congressional critics.
REP. JOHN SHADEGG (R), ARIZONA: I'm disinclined to believe that everything is hunky-dory and that the agencies are working well together.
VICTOR CERDA, HOMELAND SECURITY DEPARTMENT: But, clearly, there are going to be instances where there's going to be coordination issues that arise, and, frankly, the answer to that is coordination and leadership within the DHS.
SYLVESTER: Not enough agents, an ongoing hiring freeze and a lack of other resources are also a concern. To the north, 1,000 agents are assigned to cover 4,000 miles of land and water border. On the southern border, there are not enough places to hold illegal detainees.
SERGIO UGAZIO, NATIONAL INS COUNCIL: It is on a daily basis in this country aliens are caught crossing the border illegally and released and paroled in because of lack of detention bed space. Where are you going to put these people once they're captured?
SYLVESTER: In instances when illegal aliens are ruled out as a threat, they are released into the U.S. population and told to report for a future immigration hearing.
(END VIDEOTAPE)
SYLVESTER: Border agents say also bringing down morale is a hiring freeze and talk of a new pay-for-performance system. Critics worry it will lead to favoritism and political jockeying, making it harder to do their job -- Lou. DOBBS: Lisa, what was the reaction of the members of the Homeland Security Committee?
SYLVESTER: Well, many of the members of the committee -- they were not aware that this problem was ongoing or at least as serious as it was brought to light today. I think that there was a sense that, you know, they're working out the kinks between the two agencies, but the fact that national security is in jeopardy or may be in jeopardy is a new concern -- Lou.
DOBBS: They weren't concerned with nearly a million illegal aliens being apprehended each year and as many, it is estimated, crossing our borders? They're just now concerned?
SYLVESTER: It certainly is one of those things that, if it rises to the level of national security, it seems to grab their attention a little bit more. But, Lou, since you've been putting this issue on the forefront, a lot of people now realize what a big problem immigration is as well -- Lou.
DOBBS: Lisa, thank you.
Lisa Sylvester reporting from Washington.
We'll have much more on this issue and on broken borders later in this broadcast when I'll be joined by the president of the National Border Patrol Council, T.J. Bonner, who, of course, testified before the House Committee today, as Lisa reported.
Well, how concerned are you about border and port security? That is the subject of our poll tonight. Very? Somewhat? Not at all? Please cast your vote at cnn.com/lou. We'll have the results for you later in the broadcast.
Still ahead here tonight, strained relations between the United States and China. A new bipartisan congressional commission report finds China could be jeopardizing our economic and national security. We'll have a special report. And I'll be talking with the head of the U.S.-China Commission, Roger Robinson.
And a massive new tax break for corporate America. It's passed the House Ways and Means Committee. I'll be joined by two members of that committee who have very different views about the legislation -- Democratic Congressman Charles Rangel and Republican Congressman Jim McCrery.
And then the race for the White House and the debate over whether this economy is booming or not. I'll be talking with an economic adviser to the president's campaign, Mark Sumerlin.
All of that, a great deal more still ahead.
(COMMERCIAL BREAK)
DOBBS: A troubling new report tonight on the strained relations between the United States and China. According to the report commissioned by Congress, a bipartisan report, a number of current trends in that relationship are "in need of urgent attention and course correction," and the exploding trade deficit with China is only the beginning.
Kitty Pilgrim reports.
(BEGIN VIDEOTAPE)
KITTY PILGRIM, CNN BUSINESS CORRESPONDENTS (voice-over): Crate after crate, aisle after aisle, Chinese goods. The U.S.-China Economic and Security Review Commission says that is a problem.
RICHARD D'AMATO, VICE CHAIRMAN, U.S.-CHINA COMMISSION: Chinese nonmarket and mercantilist trade practices have tilted the playing field unfairly against U.S. interests and need to be addressed by U.S. government more aggressively.
PILGRIM: U.S. imports from China outpace exports by more than 5 to 1, part of what the report calls the most lopsided trade relationship the United States has. The United States imports $152 billion worth of goods from China, but only exports $28 billion. The report finds that contributes to the erosion of U.S. manufacturing jobs, something critical to the nation's economic and national security.
JOHN TRACIK, HERITAGE FOUNDATION: The erosion of a manufacturing base to China is a problem for the United States because, frankly, a world superpower cannot survive as a superpower without an industrial base. It's just impossible.
PILGRIM: And the report recommended the U.S. Trade Representative Office should investigate China's system of government subsidies from manufacturing and address China's exchange manipulation.
In the broader context, some China experts think the U.S. relationship will be a difficult one.
KURT CAMPBELL, CENTER FOR STRATEGIC & INTERNATIONAL STUDIES: The idea that is underscored in this report is that it's possible to have a strong, stable relationship with China? I don't buy it. I think by its very nature, U.S.-Chinese relations are going to be complex and contradictory for years, perhaps decades, to come.
PILGRIM: On the issues of security, the report finds some disturbing trends. China is buying time by reassuring its neighbors of long-term peaceful intentions. Meanwhile, it's strengthening its military. And the report questions China's commitment to a peaceful approach to Taiwan or preserving Hong Kong's autonomy.
(END VIDEOTAPE)
PILGRIM: Now China is important for its role in brokering talks with North Korea, and that, says the report, will be the true test of U.S.-China relations. But that role should not rule out investigating other practices the United States finds damaging to its economy or its national security -- Lou.
DOBBS: Remarkable. This report is simply remarkable on every aspect. Kitty, thank you.
Kitty Pilgrim.
I'm joined now by the chairman of the U.S.-China Economic and Security Review Commission, Roger Robinson, who joins us tonight from our Washington, D.C., bureau.
Good to have you here.
This report, as you undoubtedly realized as you were preparing it, is a blockbuster in terms of the direction of this administration's policy and the one before it, the Clinton administration?
ROGER ROBINSON, U.S.-CHINA ECONOMIC AND SECURITY REVIEW COMMISSION: Well, Lou, we're mandated by the Congress to look at the downside risk in this very expansive and complex bilateral relationship, arguably the most complex of any this country faces.
The Congress is very engaged in matters concerning U.S.-China trade, both on the economic and the national security front. So it's not surprising that they would want a series of metrics or an ability to measure year to year where we are in that relationship.
Are we making significant progress, are we at a standstill, or is our situation actually deteriorating? And we found out to our chagrin that it was primarily the latter.
DOBBS: Roger, there are many people -- and,frankly, I would have to be very candid with you and tell you I'm amongst those -- who are not surprised by the findings on the trade deficit. China is engaging in managed trade, trying to achieve maximum surpluses wherever it possibly can.
Why, in your judgment, as you review these policies, has this administration in particular followed policies that resulted in almost $130 billion deficit last year with China and a deficit that's running 20 percent higher this year?
ROBINSON: If we look at the underpinnings of this massive trade deficit, which is, by the way, on track to setting a new record this year, we find a number of disturbing issues that haven't been adequately treated, in the view of the commission.
Obviously, the currency manipulation issue is right at the top of that list, some 15 percent to 40 percent undervalued in our estimation. A significant repegging to a basket of currencies is urgently required. We have an array of subsidies from capital to labor and others that have not been sufficiently treated, and we've been very reticent, as you know, to hold China's feet to the fire concerning its WTO commitments and bringing these issues to the settlement dispute mechanism. DOBBS: Not only has this administration -- and, again, in all fairness, the Clinton administration before -- been hesitant to bring about any sort of balanced trade approach to China. In point of fact, there's been a delinking of political and economic policy toward China.
Is it -- as you've assessed what is happening in this relationship with what is happening in Hong Kong and other issues of human rights within China mainland, is it a time to consider tying political interests -- U.S. political interests -- and commercial interests into a policy for China?
ROBINSON: Well, one thing you've mentioned, Lou, that I think I agree with and the commission would buy as well is this notion of being very careful about the undue and inappropriate linkage of national security foreign policy issues with the trade issues.
There are many that would argue that, for example, the administration -- and even previous administrations -- might have been willing to look the other way on unfair trade practices and competition in favor of bigger picture foreign policy and national security goals.
You know that the North Korean nuclear crisis is at the top of that list today. How much are we not holding Chinese feet to the fire in the effort to secure greater Chinese cooperation in the resolution of that crisis?
We think that these issues should be dealt with on their own merits, that we have for too long allowed this honeymoon and in effect debilitating circumstance to be able to be maintained.
DOBBS: And you and your commission have raised a critical issue in terms of the manufacturing base that has been lost specifically to China, and that is, of course, the importance of a solid, comprehensive manufacturing base to provide for the national security interests of this country. How alarming do you think the current situation is? What are the prospects of resolving it?
ROBINSON: Well, you know, since our commission was conceived in the year 2000, there have been overall some 2.8 million manufacturing jobs lost, some 17 percent of total manufacturing jobs. We're trying to explore, you know, what is China's level of responsibility for that massive erosion.
But you're quite right when you think of the manufacturing base as a fundamental national security issue of the United States. Economic security and national security are inextricably linked. I think we've learned that for some time now, and it's certainly the new reality of the 21st Century.
So we are now at -- in a circumstance where we have to take very seriously the idea that unfair trade practices are contributing in such a material way to that erosion and take concrete steps to reverse the situation. We offer the Congress some 38 recommendations to do this, and we feel that Congress is very alert to the kind of presentations that the commission's making in this reporting cycle.
DOBBS: Roger Robinson, chairman of the U.S.-China Commission.
We thank you for being here.
ROBINSON: Thank you, Lou.
DOBBS: In this country, many Americans find it impossible to get the attention of elected officials to hear their concerns.
In France today, utility workers tried a somewhat unique tactic to reach the politically powerful and sometimes indifferent members of government. Workers in France simply cut off their power, quite literally. Utility workers shut off electricity to the home of France's prime minister and several other politicians. They also cut production at nuclear and other power plants by up to 25 percent.
All of that part of a protest against the partial privatization of the French power industry.
French workers also took part in demonstrations around the country. Several thousand utility workers exercised their legs, if not their power, marching in Paris.
Still ahead here tonight, a massive tax giveaway for corporate America? The House Ways and Means Committee passes tax cuts of nearly $150 billion. I'll be talking with two members of the committee, Republican Congressman Jim McCrery and Democratic Congressman Charles Rangel next.
And Broken Borders, our special report. Border Patrol agents suffering from low morale, not enough resources, and an all but impossible mission. I'll be talking with the president of the National Border Patrol Council T.J. Bonner.
That and a great deal more coming right up.
(COMMERCIAL BREAK)
ANNOUNCER: LOU DOBBS TONIGHT continues. Here now for more news, debate and opinion, Lou Dobbs.
DOBBS: Late last night, the House Ways and Means Committee passed a massive tax cut for corporate America. Backers say the measure will create jobs. Critics say the bill is so riddled with gifts for big business that it's beginning to look like a Christmas tree.
Peter Viles reports.
(BEGIN VIDEOTAPE)
PETER VILES, CNN CORRESPONDENT (voice-over): Only in Washington does Christmas come in June in the form of a $149 billion tax cut for corporate America, special presents in there for tobacco farmers, for the makers of bows and arrows and fishing tackle boxes, and for Eskimos that hunt whales. The 400-page bill was supposed to fix a simple problem, $4 billion in tax breaks ruled illegal by the World Trade Organization.
RANGEL: You've taken this $4 billion problem and created it into a $140 billion tax cut.
VILES: Republicans say the tax breaks for manufacturers and multinationals will create American jobs. They're calling the bill the Jobs Creation Act of 2004.
REP. KEVIN BRADY (R), TEXAS: I think 90 percent of the bill is targeted right at creating U.S. jobs.
VILES: But Democrats say the fine print will actually encourage more of the same overseas outsourcing.
REP. LLOYD DOGGETT (D), TEXAS: It will encourage corporations to ship jobs overseas. It advantages their earnings in doing that. It does not provide any incentives for corporations to keep those jobs at home.
VILES: The bill's so loaded up with special favors one Democrat said it had been sprinkled with fertilizer.
REP. CHARLES RANGEL (D), NEW YORK: I want this bill to reach the floor as fast as possible, because it stinks to high heaven.
VILES: And only in Washington could that criticism be taken as a compliment.
REP. BILL THOMAS (R), CHMN, WAYS & MEANS CMTE.: Thank you, gentleman for the compliment indicating that this is a bill put together in the traditional way.
(END VIDEOTAPE)
VILES: If you're wondering who drives this kind of legislation, well take a close look at your stock portfolio. Supporters include IBM, General Electric, Eli Lilly, General Motors, Home Depot, Pfizer, Microsoft, and the list, Lou, goes on and on.
DOBBS: This is shocking, corporate America is supporting a $150 billion tax break for corporate America.
VILES: Corporate America. Very enthusiastically. And looks like everybody in corporate America got something.
DOBBS: And obviously spent something to get this much. Peter Viles, thank you very much.
I'm joined now by Congressman Charles Rangel, ranking Democrat on the Ways and Means Committee. As we reported, he says this corporate tax bill stinks to high heaven. Also with us tonight, Jim McCrery, also a member of the Ways and Means Committee, who says this bill will benefit American workers. Gentlemen, good to have you with us.
And if I may Congressman McCrery, how in the world are we going to benefit from this huge tax cut for corporate America?
REP. JIM MCCRERY (R), LOUISIANA: In three ways, Lou. Number one, the bill repeals the tax subsidies or the export subsidies that have been declared illegal by the WTO, and as a result the European Union has imposed tariffs on a number of American made goods which will make those goods, eventually when tariffs are fully phased in, uncompetitive in the world market place. So, that's number one.
Number two, we give a corporate rate cut to manufacturers in this country for goods that they sell from manufacturing here in this country. Number three, we revise, we modernize our international tax code to make our multinational corporations based here in the United States more competitive in the international market place. Those are three ways that we will lower the cost of doing business for American companies, making them more competitive, allowing them to create more jobs at home.
DOBBS: My goodness, congressman. The most recent survey, 63 percent of U.S. corporations don't even pay federal tax. But this legislation, you say, will only provide a tax break for a U.S. corporation manufacturing and keeping jobs in the United States?
MCCRERY: It will cut taxes for manufacturing income derived from manufactured products here in the United States, yes, that is correct. And also -- it also cuts taxes for corporations based here in the United States that have overseas operations. Those overseas operations are in direct competition with foreign companies in those foreign markets.
DOBBS: Ahh. Congressman Rangel, you said this is solving a $4 billion problem with $140 billion in tax breaks. Sounds, listening to Congressman McCrery, that there's some good things in here?
RANGEL: Let's take the first thing. He said that by removing the tariffs that the European Union are placing on us, it would create jobs. Well, all we have to do is to say that we are going remove the $50 billion subsidy and that would have taken care of that problem. We could have used that subsidy to provide incentives for Americans to keep manufactures to keep those jobs in the United States. And so it's senseless to say that was the $4 billion problem.
So he's right, we removed that, but it didn't take $150 billion to do it. When he says that we cut corporate tax rates here, of course we've done that here. But we have given the incentives to the multinational corporations not to think in terms of United States jobs, but to think certain terms of investors and where the profits would be.
They say they want us to be strong and competitive. Well, I do, too. But I want them to have some sense that having a productive work force in America is good for them and good for America. The Republican idea is, a strong international has to be competitive with foreign corporation so we should give them the incentive to be competitive where? Here in the United States, no. To take the jobs to foreign countries.
DOBBS: Congressman McCrery (AUDIO GAP) on those jobs?
MCCRERY: Well, Congressman Rangel, I think, mischaracterizes the bill and intent of the bill. The intent of the bill is to make American companies more competitive in the market place here in the United States and in the world market place. The world market place has changed. It's more competitive. A number of nations have modernized their tax systems while we have not. And that has put our American companies trying to compete in those overseas markets at a disadvantage. This bill will somewhat correct that and make our companies more competitive. That will support jobs here at home that make many of the components that are exported to those foreign operations to be assembled and sold in those foreign markets.
DOBBS: You know, congressman, I appreciate that and your perspective, but as one who's been covering this issue vigorously and rigorously, let me ask you something. Did you all in the committee -- and I know that your chairman, Bill Thomas, is a man who loves numbers and likes to be very precise.
How many jobs will $140 billion in tax cuts create?
How competitive will it make U.S. multinationals?
And, more importantly, I guess at the end of the day, how much of our trade deficit will be reduced as a result of this legislation?
MCCRERY: Well, let me give you some numbers, Lou. American multinational corporations export a lot of their goods made here in America to overseas. And, in fact, 40 percent of their exports go to their own foreign subsidiaries to make things overseas. If it were not for those overseas operations, the home base jobs would go away. So these provisions will not only create new jobs, they will preserve jobs that are already here. It's a world market. We no longer have the luxury of just being able to sell to ourselves and expect to grow...
DOBBS: I quite understand that, Congressman. I quite understand that, Congressman. But my question is how much will it...
MCCRERY: Those are undeniable facts, those are numbers.
(CROSSTALK)
DOBBS: Well, those are numbers but they're not necessarily responsive to the question I asked.
How much of the trade deficit will be eliminated, how many jobs will be created, Congressman?
MCCRERY: Well, in the last four months we've created over one million jobs here in this country. I think to enable that to continue, we've got to modernize our tax system and make our American corporations more competitive in the world market place. That's what this bill is all about.
RANGEL: I got some numbers, Lou. DOBBS: Yes, sir.
RANGEL: This bill -- this bill is so lousy that they could not even get Republicans to support it. So what do they do, they put a $10 billion bailout program for tobacco farmers. And where do they recruit the votes, from Democrats who represent tobacco farmers. So they're willing to pay $2 billion a year for 10 years for a subject matter that our committee has no jurisdiction at all. But yet, Mr. Thomas and the Republicans put it in the bill. When one of our members want to put something in the bill, and saying we know that you think that we'll get some high-paying jobs, but we're going to lose our manufacturing jobs. Can we put something in the bill to protect those workers and make the transition easier?
They said that was out of order. But tobacco, which is an Agricultural Committee issue, was in order.
DOBBS: So $140 billion over 10 years for tax breaks to be competitive, as opposed to $250 million in retraining for workers who lose their jobs to foreign competition. It sounds like it's going to be an interesting fight in the House. And I thank both you, Congressman McCrery and you, Congressman Rangel, for taking time to help us better understand this late night legislation.
MCCRERY: Thank you, Lou.
RANGEL: Thank you, Lou.
Still ahead here, "Broken Borders." Dangerously low morale amongst our country's border patrol agents. And it is a Homeland Security national security issue. The head of the National Border Patrol Council, T.J. Bonner, is my guest.
And more finger pointing about the nation's economy on the campaign trail this week. I'll be talking with a top economic adviser for the Bush/Cheney campaign.
Boom or not a boom. Stay with us.
(COMMERCIAL BREAK)
DOBBS: As we reported, the House Select Committee on Homeland Security today held a hearing on the many problems facing us with border security. My next guest testified before the committee today. T.J. Bonner says our borders are no more secure now than they were before September 11th.
T.J. Bonner is the president of the National Border Patrol Council and joins us tonight from Washington. Good to have you with us.
T. J. BONNER, PRESIDENT, NATIONAL BORDER PATROL COUNCIL: Good to be here.
DOBBS: Your statements, other testimony before the Homeland Security Committee today frankly were chilling and should be, in my judgment at least, deeply concerning to every American.
How in the world two and half years, more than two and half years after September 11 have we gotten into this situation at our borders?
BONNER: I'm not sure who to point fingers at, but we certainly are in a mess. Morale is at an all-time low and agents are just waiting for other agencies, state and local, to get some money so they start hiring again. When that happens, there will be a mass exodus of border patrol agents.
DOBBS: A mass exodus, at the same time as Lisa Sylvester reported tonight, border patrol agents are basically forced to step aside under current policy, and are not even apprehending illegal aliens as they cross the border.
Is that correct?
BONNER: That's correct. And it's just amazing. And it's a major source of frustration and demoralization. Agents are forced to sit eight to 10 hours a day in one spot in order not to move from that spot, even if aliens are crossing within yards of them. It's really mind boggling, Lou.
DOBBS: Who made that decision, who issued that order?
BONNER: This comes straight from the top and nobody has signed an order to that effect, but those are the standing orders out there in the field, and if agents violate them, they are subject to discipline.
DOBBS: And what -- you said morale is low -- what in the world are border communities -- how are they responding to these orders and to basically a sweep of the hand by the border patrol inviting illegal aliens in?
BONNER: It's not just the border communities, Lou, it's every part of America, because illegals don't camp out right at the border after they make an entry. They are heading to the heartland of America, to take jobs away from American citizens.
DOBBS: And we have at this point simply a procedure whereby border patrol agents are not effectively in any way guarding our borders. Illegal aliens once apprehended are said -- are given an -- or issued an order to appear before a hearing, but in point of fact, no one is following up to make certain that occurs, and in fact it doesn't.
Is that right?
BONNER: Probably, 90 to 95 percent of the people who are issued to show cause to appear, abscond, they never show up. And we don't even require a bona fide address. We have no way to verify it in the first place, but we don't even require it.
DOBBS: And the reaction of the committee, is there a dawning taking place anywhere in Washington? BONNER: I haven't seen it yet, Lou. I don't know what to say. I don't know what it's going to take to wake these people up. To wake up, not just the Congress, but to wake up America, as to what's going on. Because this is not just an issue of economics of people coming across to take jobs, mixed in with that could well be a number of terrorists. So it's clearly a matter of homeland security.
DOBBS: T.J. Bonner, we thank you for being with us here tonight.
BONNER: Thank you.
DOBBS: Very sobering. A reminder to vote in our poll tonight. How concerned are you about border and port security, very, somewhat, or not at all?
Cast your vote at cnn.com/lou. We'll have results for you later in this broadcast.
Still ahead here, President Bush says a vote for Senator Kerry is a vote for pessimism. Economic adviser to the Bush/Cheney campaign, Mark Sumerlin is our guest.
And "America Works." Tonight we introduce you to a man whose office is one of the most spectacular landscapes in the world, as this week we celebrate the men and women who make America work. Stay with us.
(COMMERCIAL BREAK)
DOBBS: Senator Kerry is promising to end the middle class squeeze in America. Senator Kerry, blaming that squeeze on President Bush's economic policies. Today in Atlantic City Senator Kerry told members of the AFL-CIO quote, "America needs a president who fights for your job as hard as he fights for his own." Senator Kerry also told the union members his economic plan will create and keep good paying jobs in the United States.
My next guest doesn't think Senator Kerry's economic plan will solve the problems of this country. He says, in fact, President Bush's plan has already put this economy back on track.
Joining me now, Mark Sumerlin, he's economic adviser to the Bush/Cheney campaign and follows last night's appearance by Gene Sperling, economic adviser to Senator Kerry.
Good to have you with us, Mark.
MARK SUMERLIN, ECONOMIC ADVISER, BUSH/CHENEY CAMPAIGN: Thank you, Lou. It's a pleasure to be here.
DOBBS: We've seen this economy pick up, 1.2 million jobs created since the beginning of the year, large questions about the quality of those jobs and still a huge number of jobs to be created. Are you confident that we're going see those jobs created in the next four, five months so that President Bush does not have to take that handle of being along with Herbert Hoover the only president to not create jobs in his presidency?
SUMERLIN: Absolutely, Lou. The economy is firing on all cylinders right now. Over the last four months we had over one million new jobs created. And importantly, 74 percent of those are in industries that pay above average wages. So, these are actually good jobs that are being created. Today we got a good consumer confidence number. A manpower survey two days ago showed 30 percent of employers are looking to add workers over the next three months. So, all signs are pointing that these job gains that have been very strong in the last three months will continue for awhile.
DOBBS: Yet, eight -- more than eight million American are unemployed, the trade deficit is at record levels and shows no sign of abating.
What is the president going to do about it?
He keeps talking about free trades. Says just keep the faith. And meanwhile our manufacturing base, you just heard Roger Robinson, the chairman of the China/U.S. Commission, say that we've got to have a course direction and what we hear from the administration is, if we're going to stay the course, they're not going to be economic isolationists, by God, they're going to be free traders.
What's the president going to do?
SUMERLIN: Right. Well, the manufacturing sector has had a tough time and the president is absolutely concerned anyone -- any time anyone loses a job. This comes out of the bursting of a huge economic bubble from the 1990s. And so it really required aggressive fiscal and monetary policy to get the country back on track. But if you look at the ISM manufacturing employment index, it stands at the highest level since 1974, so things have been improving, and are turning around. Productivity growth is strong, which helps with our competitiveness. And the president is really working to tear down barriers wherever they are.
Let me give you a quick example. Before the president took office, if Caterpillar was selling a bulldozer to Chile, it would cost $11,000 more than a similar bulldozer from the European Union. The new Chilean free trade agreement will put those on equal terms. Which will help Caterpillar, an important U.S. company, compete with everyone else. So, I think the president's absolutely going to be as aggressive as possible with our trading partners. We have to be careful not to go into economic isolationism. Senator Kerry has promised to review all U.S. trade agreements in the first four months of office. Last time we tried something that resembled building walls around this country was after the Smoot-Hawley tariffs and world commerce dropped by 67 percent.
DOBBS: There you go. Either free trade or economic isolationism.
You do acknowledge, Mark, that there are a few policies that could be within those two polar extremes pursued?
SUMERLIN: Absolutely, Lou.
DOBBS: Mark, I'd like you to come back -- we're out of time -- and continue the discussion. And we appreciate your being here. Mark Sumerlin...
SUMERLIN: Thank you very much.
DOBBS: ... Economic adviser to the Bush/Cheney campaign. Coming up next, prices are rising, but wages, they're not rising.
Christine Romans will be here to report on the latest middle class squeeze.
And America is working. "America Works." For more than three decades, this man has worked to ensure the safety of the millions of people who visit the Grand Teton National Park every day. We'll tell you about this job. We'll have his story, stay with us.
(COMMERCIAL BREAK)
DOBBS: On Wall Street, stocks higher today. The Dow up almost 46 points, the Nasdaq up almost 26, the S&P up almost 7. A lot almost today.
Alarming new numbers tonight on American wages. Christine Romans is here with the story -- Christine.
CHRISTINE ROMANS, CNN CORRESPONDENT: Lou, Americans' living standards are falling. They're paying more for food and gas and bringing home less money. Real wages fell again in May and the trend has worsened, even as all those jobs have been created over past six months. When, many ask, will workers get their fair share?
Company profits have soared 62 percent in the past three years. Labor compensation has risen only 3 percent. And that's largely pension contributions, and health care benefits. Take-home pay has fallen. And it's worse the farther down the income scale you go. Lou, last year's pay gains 1.6 percent were the slowest in 40 years. This year is shaping up to be no better. Today, Alan Greenspan acknowledged this, but said he thinks wages will eventually play catchup.
DOBBS: Let's hope he didn't say eventually meaning the long run.
Christine, thank you.
This week we're featuring our special reports, "America Works." We're celebrating the hardworking Americans who make this country great. Tonight's report takes us to the Grand Teton National Park, in Jackson Hole, Wyoming. That's where Park Ranger Jim Springer patrols some of the park's 300,000 acres.
Bill Tucker has the story.
(BEGIN VIDEOTAPE)
BILL TUCKER, CNN CORRESPONDENT (voice-over): Some jobs you do for the money. Some jobs you do for your soul.
JIM SPRINGER, RANGER: Nobody's doing this for the money.
TUCKER: Jim Springer's been a park ranger since 1972. This is where he and his fellow park rangers live for the summer. Springer like his fellow rangers is hooked on the mountains. He was born out here, grew up here and now he has a family of his own.
SPRINGER: I have two boys, 12 and 7. They come out here and they mostly go barefoot and run around. And they don't -- there's no electronic toys, hardly any toys. They just kind of head out the door in the morning and show up when they're hungry. No TV, no CNN. We do go on hikes and overnight hikes. My son's climbed the Grand Teton, and it's wonderful.
TUCKER: But summer only lasts four months in Jackson Hole.
SPRINGER: In the wintertime I am an avalanche forecaster for the local ski area and also for the forest service as an avalanche technician.
TUCKER: Which brings us to the other part of a ranger's job.
(on camera): Over three million people a year visit the Grand Teton National Park. With that many people, things can and sometimes do go wrong. Last year lightning struck instantly killing one hiker, injuring the rest of the party and setting off a massive rescue. Springer and his fellow rangers like Leo Larson (ph) regularly train for such events which were seldom as dramatic.
UNIDENTIFIED MALE: We probably do 40 or 50 rescues a year.
TUCKER (voice-over): And the way those rescues are carried out has changed over the years.
SPRINGER: Now we get cell phone calls. So we're finding out sometimes within minutes that an accident's happened. We're geared up. We have a helicopter on special contract with the park here and they can be up here in about 20 minutes.
TUCKER: Good to know if you're out for a walk in the mountains and things go wrong.
Bill Tucker, CNN, Jackson Hole, Wyoming.
(END VIDEOTAPE)
DOBBS: Coming up next we'll have the results of tonight's poll. Stay with us.
(COMMERCIAL BREAK)
DOBBS: A poll result, 84 percent of you say you're very concerned about border and port security.
Thanks for being with us. Tomorrow House minority leader, Nancy Pelosi, joins us and we'll have our "Face-Off" on the Patriot Act.
Thanks for being here. Good night from New York. "ANDERSON COOPER 360" is next.
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