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Lou Dobbs Tonight
U.S. Companies Outsourcing Safety?; Fight Over Illegal Immigration Escalates
Aired August 15, 2007 - 18:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KITTY PILGRIM, CNN ANCHOR: Tonight: rising outrage over an illegal alien who has been using a Chicago church as a refuge for a whole year, defying U.S. immigration laws.
Also, the fight against illegal immigration. Residents in one county say they have had enough of paying for social services for illegal aliens.
And are big U.S. companies such as Mattel outsourcing safety by shipping jobs to cheap overseas labor markets, like communist China?
All of that and all of the day's news, much more straight ahead tonight.
ANNOUNCER: This is LOU DOBBS TONIGHT: news, debate, and opinion for Wednesday, August 15.
Live from New York, sitting in for Lou Dobbs, Kitty Pilgrim.
PILGRIM: Good evening, everybody.
The death toll rose to 500 people in yesterday's suicide bomb attacks in northern Iraq. A top U.S. commander, General Benjamin Mixon, declared that the attack was almost genocide. Meanwhile, the overall commander of U.S. forces in Iraq, General David Petraeus, may be considering a redeployment of troops inside Iraq.
Now, published reports say General Petraeus may ship troops away from area where's security has improved.
Barbara Starr reports from the Pentagon on fears of genocide in Iraq.
(BEGIN VIDEOTAPE)
BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): Top U.S. commanders are now using the strongest language to condemn the killing and wounding of hundreds after multiple suicide vehicle bombs exploded in remote northern Iraqi villages, home to a religious minority group known as Yazidis.
GENERAL BENJAMIN MIXON, U.S. REGION COMMANDER IN IRAQ: This is an act of ethnic cleansing, if you will, almost genocide, when you consider the fact of the target they attacked and the fact that these Yazidis are really out in a very remote part of Nineveh Province, where there is very little security. STARR: Offers to help are coming in from all ethnic groups.
BRIG. GEN. KEVIN BERGNER, U.S. ARMY: In the wake of this attack what we have seen is Arab, Kurdish, Yazidi all pulling together. Casualties being treated in Kurdish hospitals, in Arab hospitals.
STARR: The U.S. had expected major attacks knowing insurgents are trying to make things look bad in the weeks before General David Petraeus will report on the troop surge.
MIXON: It's virtually impossible to stop these maniacs as they try to kill innocent people, but we will continue to go after them.
STARR: The surge has had some success in reducing violence but analysts say this latest attack underscores how fragile Iraq really is and the continuing vulnerability of its citizens.
COL. DOUG MACGREGOR (RET.), U.S. ARMY: The surge ultimately was always about creating the illusion of success for the administration and its top generals long enough to postpone pressure to withdrawal for yet another few months or potentially a year.
STARR: Withdrawing U.S. troops still depends on struggling Iraqi security forces being able to take over. Just half-a-dozen of the more than 100 Iraqi battalions can operate independently, even though the total Iraqi force now numbers 350,000.
(END VIDEOTAPE)
STARR: So, Kitty, what are we really talking about here in terms of the future of U.S. forces in Iraq? General Petraeus by all accounts is considering reducing the U.S. footprint. What does that mean? He's considering reducing troops in areas where security is better, but there may not be an overall reduction in U.S. forces well into next year when the surge will come to what they call its natural end.
They won't have enough surge to able to keep up the surge much beyond the spring of '08. So, it's all likely to go back to pre-surge levels, Kitty. But this attack does show how vulnerable the people of Iraq continue to be.
PILGRIM: It certainly does. Thanks very much, Barbara Starr.
Now, the Bush administration tonight is on the brink of naming all or part of Iran's Revolutionary Guards a global terrorist group. The U.S. military says the Revolutionary Guards are supplying weapons to insurgents in Iraq. One-third of U.S. combat deaths in Iraq last month were from Iranian bombs.
Zain Verjee reports from the State Department.
(BEGIN VIDEOTAPE)
ZAIN VERJEE, CNN STATE DEPARTMENT CORRESPONDENT (voice-over): For the first time, the U.S. is taking aim at the military arm of a sovereign country. State Department officials say the U.S. is planning to declare the powerful Iranian Revolutionary Guard Corps a terrorist group.
SEAN MCCORMACK, STATE DEPARTMENT SPOKESMAN: This is an entity within the Iranian government that is engaged in a number of different activities.
VERJEE: The U.S. believes Iran is arming Shia militias in Iraq, backing the Taliban in Afghanistan, and supporting extremist groups Hamas and Hezbollah. Just last week President Bush warned Iran the U.S. was about to act. And now it might.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: When we catch you playing a nonconstructive role, there will be a price to pay.
VERJEE: That price could be cutting the financial lifeblood of the Guard, going after their bank accounts as well as businesses that deal with the Guard inside and outside Iran.
MCCORMACK: And you make it much more difficult and raise the cost for them to engage in these kinds of activities.
VERJEE: But the move could backfire on the U.S.
RAY TAKEYH, AUTHOR, "HIDDEN IRAN: PARADOX AND POWER IN THE ISLAMIC REPUBLIC": It undermines the possibility of the diplomacy, but it makes a military confrontation more, not less likely.
VERJEE: The commander of the Guards Corps also warns Iran has missiles that can sink ships in the Persian Gulf, a not-so-subtle message to U.S. warships stationed there. Iran calls the threat psychological propaganda warfare.
(END VIDEOTAPE)
VERJEE: It's not exactly clear, Kitty, when the destination would actually happen. There's a lot of debate right now though within the administration whether to target the entire Guard Corps or just a part of it -- Kitty.
PILGRIM: Zain, one point, though. Doesn't the United States already identify Iran as a state sponsor of terrorism?
VERJEE: Yes, that's exactly right. It absolutely does. So, the question is doing something like this, would it really make any difference? Well, people in this building have said to us that, yes, absolutely, it will. It makes it easier to go after these guys.
But, Kitty, critics are also saying, no, it absolutely will not help in any way, and the reason they say is the U.S. doesn't do any banking or business with these guys and also it's very unlikely to stop the flow of bombs to Iraq that kill U.S. troops. So they say what this really is, is a lot more symbolic. Some are also saying that maybe what Secretary Rice is doing here is pushing forward with this to try and pacify the hawks in the administration who want to see military action in Iran -- Kitty. PILGRIM: Thanks very much, Zain Verjee.
Well, the United States says Iran's Revolutionary Guards have close links with the terrorist groups throughout the Middle East. The Revolutionary Guards are a separate branch of Iran's armed forces. Now, the Revolutionary Guards Corps has more than 125,000 troops. The corps has its own Navy, as many as 50 gunboats and it also has a so- called air force which controls Iran's ballistic missiles.
The Revolutionary Guards have their own special forces known as the Quds Force, and U.S. officials say those special forces are giving insurgents in Iraq weapons, training and money. Well, the U.S. military says those weapons include highly sophisticated roadside bombs called EFPs and it remains very unclear whether any change in U.S. policy will stop Iran's meddling in Iraq.
Michael Ware in Baghdad told me what impact, if any, a shift in U.S. policy would have on Iran's behavior.
We apologize for our transmission from Baghdad. We are having some problems with that.
Moving onto other subjects, coming up, new concerns that companies such as Mattel have outsourced safety to foreigners. And we will have more on that when we come back.
Stay with us.
(COMMERCIAL BREAK)
PILGRIM: The Bush administration is expanding the use of spy satellites in this country, and now more local and federal authorities will have access to private information. The federal government insists the satellites will be used to help secure our borders and not to spy on Americans. But many civil liberties advocates are still concerned about how the satellites will be used.
Kelli Arena has our report.
(BEGIN VIDEOTAPE)
KELLI ARENA, CNN JUSTICE CORRESPONDENT (voice-over): First, their were eyes on the street. And now there are eyes in the skies. The director of national intelligence has given the go-ahead for the nation's spy satellites to be used regularly by U.S. civilian agencies and law enforcement.
CHARLIE ALLEN, DHS ASSISTANT SECRETARY: This is a development all Americans should have great pride in, because it expands and uses national technical systems which was built for tens of billions of dollars over many decades.
ARENA: Spy satellites have primarily been used overseas to monitor things like war zones and terror training camps. They have also been used domestically, but sparingly, during events including Super Bowl games, presidential inaugurals and hurricanes. Homeland Security officials say the satellites will now be used to protect borders and critical infrastructure.
ALLEN: Which includes ports and looking at potential vulnerabilities and threats as well as consequences of attacks.
ARENA: Next in line, law enforcement agencies, which are expected to start using them next year. While they can provide crucial high-resolution images, there are limits to what these satellites can do. They can't see faces and they can't listen. At least that's what the government claims.
But privacy groups worry that because there's so much we don't know about their capabilities, they could be misused and we wouldn't even know it.
JIM DEMPSEY, CENTER FOR DEMOCRACY AND TECHNOLOGY: The question always comes down to, what are the standards? Are there checks and balances? And is this a power that we would trust the executive branch to use without any outside scrutiny, or oversight or control?
ARENA (on camera): Homeland Security officials insist that they are subject to a great amount of oversight and review, but in many ways this is just one more case of the government figuring it out as it goes in the war on terror.
Kelli Arena, CNN, Washington.
(END VIDEOTAPE)
PILGRIM: Well, another controversy in this country, companies that outsource production to cheap overseas labor markets. Now, critics say that puts Americans at risk from dangerous imports. At the same time, outsourcing, especially the manufacturing of toys, has been incredibly profitable for Mattel and other companies.
And now, after two huge recalls, Mattel is trying to salvage the reputation of its brand and regain control of its outsourced manufacturing.
Christine Romans reports.
(BEGIN VIDEOTAPE)
CHRISTINE ROMANS, CNN CORRESPONDENT (voice-over): Over the past five years alone, Mattel earned $2.3 billion selling toys, the majority of them made in China. The toy industry was one of the first to outsource its manufacturing to China. Now 80 percent of America's toys are made there.
NANCY NORD, ACTING CHAIRWOMAN, CONSUMER PRODUCT SAFETY COMMISSION: The manufacturing of consumer products has changed. Many products sold in the United States are not made here.
ROMANS: But there are serious questions about whether companies have outsourced safety in exchange for low labor costs, greater efficiency and profit. One supply chain consultant says, no matter who makes the toy, Mattel's name is on the product and it's responsible for safety.
PATRICK FURLEY, ARIBA: It's incumbent on Mattel to understand not only what's going on in that supplier's factory, but what's going on in their supplier's supplier's factory. They have got to trace it all the way back. That's a difficult thing to do.
ROMANS: A June report from Deloitte Consulting warned, "The search for cheaper labor, cheaper raw materials and cheaper transportation creates a perfect storm of risk not seen before in the history of commerce or humankind."
Indeed in the case of these toys, something went very wrong in the complex global production chain.
SEN. RICHARD DURBIN (D), ILLINOIS: It's something for a company to outsource its production. Companies cannot outsource their responsibility to American consumers. When families walk into toy stores and all stores, they assume if it's on the shelf, it's safe.
ROMANS: Senator Durbin says retailers and manufacturers should require third-party inspections before a toy even make it to the United States.
(END VIDEOTAPE)
ROMANS: Mattel says it is working around the clock to improve its current system and is increasing unannounced random inspections of the vendors, the vendors who make its popular toy brands -- Kitty.
PILGRIM: Kitty, where does the Toy Industry Association come down on this?
ROMANS: They say that there's no reason to believe that the toys on the shelves of American toy stores and retailers are not safe. Critics say, if they are not safe, then why are we recalling them? And why would anybody have to change the way they do business? So, clearly, the consumer advocates say we just have lost control of the supply chain and we are seeing the fallout from that.
The Toy Industry Association though says there's no reason to fear for the toys that are out there.
PILGRIM: Just keep your eyes open for the recalls, I guess.
ROMANS: I guess.
PILGRIM: Thanks very much, Christine Romans.
Well, time now for some of your thoughts.
And we heard from Miriam in Ohio. And she wrote: "If Mattel cares about American children as much as they say they do, they would manufacture their toys here and make safety, instead of profit, their priority."
Marilyn from Florida: "With so many recalls on toys, dog food, fish, and tires, among others, do we really make anything in this country anymore? I can't remember the last time I saw a 'Made in the USA' label."
And Mettie in West Virginia: "I'm telling my friends and family that I won't be giving Christmas gifts this year unless I can find items that are made somewhere other than China. In this area, everything I look at is made in China. And, unless it is a necessity, I don't buy. I challenge others to do the same."
And we will have more of your e-mails later in this broadcast.
Coming up, one community tries to find out exactly how many illegal aliens are living here. We will have a report how that is going.
Also, new frustrations for rescue workers trying to reach six miners trapped deep underground. We will have the very latest. We will have it live from the scene when we return. So stay with us.
(COMMERCIAL BREAK)
PILGRIM: As we reported, it remains unclear whether any change in U.S. policy will stop Iran's meddling in Iraq. Now, we have solved the audio problems with Michael Ware's report.
And Michael told me what impact, if any, a shift in U.S. policy would have on Iran's behavior.
(BEGIN VIDEOTAPE)
MICHAEL WARE, CNN CORRESPONDENT: Oh, this is such a futile gesture, it's beyond the pale.
It will have absolutely no impact whatsoever on the steady stream of weapons, roadside bombs, all of which are killing American solders from the hands of Iranian-backed Shia militia, nor will it stop the training camps in Iran, which are preparing these Iraqis to reenter Iraq and to attack coalition forces. This is going to be nothing. It's less than a slap on the wrist.
PILGRIM: How prevalent are these explosive devices that are supplied by the Iranians? We hear from General Odierno that there's a surge in supplying arms and training equipment to insurgents in Iraq. How prevalent is it? How apparent is it to you as a reporter in Iraq that this is going on?
WARE: Oh, look, it's palpable. In fact there's an Iranian surge which is matching, if not outstripping the American surge. Last month was a record high for the number of EFP explosive devices. That's explosively formed projectiles. This is the most deadliest roadside bomb being used here in the war in Iraq.
And where is it coming from? It's coming from Iran. Let's have a look at one quick thing. A couple of months ago there was a historic first meeting between American and Iranian diplomats. Foremost on the agenda was America complaining about the supply of these bombs. Take a wild guess what happened after that meeting? There was a spike in the number of attacks from these bombs.
Essentially, the Iranians are seeing that the Americans, by meeting with them, by threatening to put them on the foreign terrorist organization list, must be hurting. So, let's press our advantage and keep it going.
And the irony, Kitty, of the foreign terrorist listing is extraordinary. If this happens, we will have the official military unit of the Iranian regime listed as a terrorist organization by the U.S. at the same time the Iranian armed opposition group, an ally of the U.S., will also will be on the same list as a terrorist organization. It's really quite an extraordinary policy.
PILGRIM: Where, Michael, are we seeing sort of the upsurge in activity that is believed to be supported by Iran? Is that in areas where U.S. troops are based, or is it outside of those areas?
WARE: Well, it's in both, Kitty. Clearly, we are seeing it here in the capital Baghdad itself. There are EFPs killing American solders in the streets of this city.
And let's be aware, when one of these devices hits your Humvee, chances are, no one in that Humvee will survive. That's just a grim reality. And, of course, we are seeing these devices used with great effects against the Brits down in the south, so much so, in a combination with these bombs and relentless mortar and rocket fire, the Brits have all but surrendered the southern capital of Basra.
And let's not forget, Iran's proxies, friends and allies own southern Iraq, not America, not the coalition and not the so-called government of Iraq here in Baghdad.
PILGRIM: Michael Ware, you paint a sobering picture. Thanks very much for your analysis this evening, Michael Ware.
WARE: Thank you, Kitty.
(END VIDEOTAPE)
PILGRIM: Well, turning to the latest developments in the search for six miners trapped in Utah, rescuers have drilled a third hole in an area where the miners may have gone searching for air. But after more than nine days, there's still no sign of the men.
And Brian Todd is in Huntington, Utah, with the very latest -- Brian.
BRIAN TODD, CNN CORRESPONDENT: Kitty, with every measure of progress here, there also seems to be another setback, and that has occurred again recently in both tracks of this operation.
First to the drilling that you just mentioned, a third hole has reached a chamber where they believe these men might have retreated to if they survived the initial collapse. They might have gone there for air if they survived. Now, that hole reached that chamber. But when they tried to lower a microphone down into it, the microphone either hit a snag or hit some kind of a bend in the hole and couldn't get to the chamber. It stopped about 20 feet from it.
They are going to pull that microphone back. They're going to put casing into the hole, try to lower that microphone back down in there, and also try to lower a camera down in there.
On the other track, a very important track, the digging through the main tunnel, trying to get to these miners, they had about 2,000 feet of rubble to go through total. They have gone now through almost 800 feet, a little over a third of the way. They made several feet of progress overnight, but also they had a so-called bump in the mountain that set them back. The bump is when there's a bit of seismic activity, when the mountain settles over the mine area, causing some pillars to crumble, some debris to kick out.
That damaged what they call a continuous miner. It is a huge machine that pulls rubble out. That set them back. So some of this activity was what one of the rescue officials, who also is a cousin of one of the trapped miners, talked about in the news conference today. He talked about the dangers of that seismic activities.
(BEGIN VIDEO CLIP)
BODIE ALLRED, CRANDALL CANYON MINE SAFETY DIRECTOR: After that seismic activity, it is definitely something I have never seen before and it's probably the worst condition I have seen.
The efforts that we are doing in order to protect them is right on track. I feel very good in there. Make no mistake that it's definitely trying every time you're in there and you have got to be on your toes. You have got to be alert. And that's what coal mining is.
(END VIDEO CLIP)
TODD: Now, on that front, and this whole rescue operation and the safety of the rescue miners, that's been a bit of an issue as well. There have been 12 miners who have asked to be reassigned from the rescue effort because of apparent concerns about their safety. That's been reported over the past couple of days.
Now, when Bodie Allred, this mining rescuer, who is also a cousin of Kerry Allred, a trapped miner, was asked about that, he started to say, yes, some men have come to me personally and asked about that. As soon as he said that, Robert Murray, the CEO of Murray Energy Corporation, essentially stepped in and said, wait a minute. No one has ever said that this mining rescue operation was not safe.
So, they are trying to get on the same page, Kitty, but, clearly, it's a dangerous job. They are progressing very slowly. Every time they make some progress, there seems to be a bit of a setback.
PILGRIM: Thanks very much, Brian Todd. Disturbing.
A space walk by two shuttle Endeavour astronauts cut short today after one of the astronauts found a hole in his gloves. Now, the astronauts prepare a solar array for the International Space Station for repairs. NASA officials are still trying to determine if a gouge in the shuttle needs repairing. Any repairs would be made during a fourth space walk. It's scheduled for Friday.
National Guard units, water rescue teams deployed along the Texas coast tonight as Tropical Storm Erin is churning in the Gulf of Mexico. This storm is expected to make landfall near Corpus Christi Thursday afternoon, deluge parts of Texas with up to eight inches of rainfall. The next major storm is already forming in the Atlantic. The National Hurricane Center says Tropical Storm Dean could gain hurricane strength on Friday.
Also, in Hawaii, Hurricane Flossie was downgraded to a tropical storm today just as it passed the island chain with strong winds and heavy rain.
Coming up, the chairman of the powerful House Ways and Means Committee, Congressman Charlie Rangel, will be here.
Also, another community takes a stand of its own against illegal immigration.
And a fugitive illegal alien given refuge in a Chicago church has a new strategy to resist deportation.
Voters say President Bush and Congress are both complete failures. We will have a special report.
Stay with us.
(COMMERCIAL BREAK)
PILGRIM: Spotsylvania, Virginia, it's the latest in a growing number of communities deciding whether to take action on their own to control the crisis caused by illegal immigration.
Now, the communities are acting because of the federal government's failure to enforce immigration laws. More than 100 localities have passed or considered laws to help fight this crisis.
Last month, these efforts suffered a setback when a federal court struck down Hazleton, Pennsylvania's law, considered a model for other cities.
And as Lisa Sylvester now reports, Spotsylvania is trying to determine the scope of the problem before it acts.
(BEGIN VIDEO TAPE)
LISA SYLVESTER, CNN CORRESPONDENT (voice-over): Spotsylvania, Virginia was the site of Civil War battles. Now the town is bracing for a new battle -- this one over immigration.
At the county's farmer's market, residents say they're tired of picking up the tab for social services.
WILLIAM HENDRICK: I see nothing wrong with denying for illegal aliens. SYLVESTER: The Hispanic population in Spotsylvania has more than doubled in the last six years. County officials are certain some of them are illegal aliens, but have no idea how many. Tuesday night, the county board of supervisors voted unanimously to do a count of the illegal operation and to look into what social services they can legally deny them.
Spotsylvania decided to act after the neighboring counties of Prince William and Loudoun Counties started cracking down.
CHRIS YAKABOUSKI, SPOTSYLVANIA BOARD OF SUPERVISORS: I thought it would be prudent to be proactive in this area and see what they're doing and follow in their footsteps as much as we possibly can, so that we don't become a haven for illegals when they turn off the services up north.
SYLVESTER: Some critics in the community accuse those local governments of racism and racial profiling, say it will drive illegal aliens further underground.
PATTY SMAGALA: If we're going to collect information on them, I would hope that it would be in order to enhance, to make them feel comfortable, to make them feel safe with the system, to help them become legal citizens.
SYLVESTER: Virginia State Delegate Jeff Frederick, who tells us his family immigrated from Colombia, denies racism is behind these new measures.
JEFF FREDERICK (D), VIRGINIA STATE HOUSE: The difference between illegal and illegal is significant, and that's what we're profiling. We're profiling that. We're not -- it has nothing to do with race. We're profiling who is here legally and who is not.
(END VIDEO TAPE)
SYLVESTER: Spotsylvania is working with other Virginia counties to see if they can legally ask about a person's immigration status when they apply for social benefits such as food stamps and Medicaid.
Another option for trying to figure out the scope of the illegal population is to use data from driver's records. In order to get a license in the Commonwealth of Virginia, a person has to show legal presence -- Kitty.
PILGRIM: Thanks very much.
Lisa Sylvester.
Well, Elvira Arellano is an illegal alien ordered deported over a year ago. She took sanctuary in a Chicago church last August 15th. And she told reporters today she will leave her sanctuary to take her cause to the nation's capital.
Well, Arellano's 8-year-old son, Saul, has been used as a pawn by her and by open border advocates. Advocates have taken Saul, a U.S. citizen, to Mexico, Florida, Washington to lobby for illegal aliens. And he will travel with his mother on this next trip.
(BEGIN VIDEO TAPE)
PILGRIM (voice-over): The newest lobbyist in Washington -- illegal alien Elvira Arellano. The Mexican woman, holed up in a Chicago church for the past year, says she is now taking her fight to Washington.
ELVIRA ARELLANO, ILLEGAL ALIEN: We cannot wait until the next election. The Congress must act in September. I will go to Washington, D.C. I will go to pray in front of the Congress.
PILGRIM: Arellano is hoping her 8-year-old son won't be the only child held out of school on September 12th.
Illegal alien advocates are calling for a prayer vigil on the Mall in Washington, D.C. that day and ask for those who can't be there to join a national strike.
EMMA LOZANO, PUEBLO SIN FRONTERAS: We call on all people of good conscience, on September 12th, to join us in a national strike. Do not consume anything. No school. No work.
PILGRIM: Arellano entered the country illegally 10 years ago and was deported to Mexico. She re-crossed the border and was arrested during an immigration sweep while working at Chicago's O'Hare International Airport in 2002. She was then ordered deported after being convicted of Social Security fraud. She never left.
Arellano said U.S. trade policy brought her here originally.
ARELLANO: I came to the United States to work. I came because of what NAFTA and other U.S. economic policies have done to my country, in which I could no longer find work that paid a living wage.
PILGRIM: Immigration authorities have not yet tried to address Arellano while seeking sanctuary in the church in Chicago.
(END VIDEO TAPE)
PILGRIM: Now, when asked by LOU DOBBS TONIGHT if Immigration and Customs Enforcement will arrest her when she leaves the church to travel to Washington, ICE responded with a statement. And here it is: "Miss. Arellano is one of more than 600,000 immigration fugitives residing in the U.S. illegally after having been ordered deported. ICE has the authority to arrest illegal aliens in all locales and prioritizes its enforcement efforts based on investigative leads, intelligence and consideration of officer and public safety."
Time now for tonight's poll -- should immigration officials immediately arrest Elvira Arellano and carry out her deportation?
Your opinion is needed here. Cast your vote at loudobbs.com.
We'll bring you the results a little bit later in the broadcast. And a new CNN poll says Americans are fed up with the way President Bush and the Democratic-led Congress are handling their jobs. Americans say both are complete failures.
Bill Schneider has the report.
(BEGIN VIDEO TAPE)
WILLIAM SCHNEIDER, CNN SENIOR POLITICAL ANALYST (voice-over): When Congress left for summer recess, they couldn't agree on what grades they deserved. Republicans saw failure.
SEN. MITCH MCCONNELL (R-KY), MINORITY LEADER: They've managed to achieve an astonishing thing, which is to have the lowest approval ratings anyone can find for Congress in history.
SCHNEIDER: Democrats saw some things to be proud of.
SEN. HARRY REID (D-NV), MAJORITY LEADER: The 9/11 Commission recommendations were signed into law. It took some doing to do that.
SCHNEIDER: But the only grades that count are the ones that come from the voters. Their grades are now in.
How did Congress do?
Uh-oh, most Americans give the Democratic Congress a failing grade.
And how do they grade President Bush?
Worse. Fifty-seven percent call the Bush presidency a failure. Independent voters don't have any kids in school. Their grades are particularly harsh. Voters are saying to Washington -- kids, you've got to shape up. We want to see some changes.
Are politicians listening?
Democrats running for president are promising change.
JOHN EDWARDS, PRESIDENTIAL CANDIDATE: I think we need big change in Washington.
SEN. HILLARY RODHAM CLINTON (D), NEW YORK: America is ready for change.
SEN. BARACK OBAMA (D), ILLINOIS: They are insisting that it is time for us to turn the page and write a new chapter in American history.
SCHNEIDER: Do people have more confidence in President Bush or the Democrats in Congress?
Answer -- the Democrats, who have not been in power as long. But the Democrats' lead is significantly smaller now than it was last November. So Republicans are also claiming to be agents of change. MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: And one of the things I'm good at is changing things. I know how to change things.
MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: If there's ever been a time that we need to see change in Washington, it's now.
(END VIDEO TAPE)
SCHNEIDER: All those politicians want to change Washington, which is a little like students saying if we're failing, there must be something wrong with the school -- Kitty.
PILGRIM: Bill, this discouragement, how typical is this in an election season?
SCHNEIDER: Well, when things are wrong, people blame everybody, as a rule. I remember this happened back in the early '90s, when people blamed both the president and the Congress. George Bush's father was in office. And there was a little bit of a revolution.
You remember a man named Ross Perot came to the fore and ran for president and he expressed a lot of that voter discontent. And though he didn't win, he had a big impact.
PILGRIM: Interesting stuff.
Thanks very much.
Bill Schneider.
SCHNEIDER: Sure.
PILGRIM: Up next, a plan to help middle class workers hurt by this countries free trade agreements. We'll tell you what you one state is doing to protect workers.
And, also, the chairman of the House Ways and Means Committee, Congressman Charlie Rangel, discusses those free trade agreements and their impact on this countries middle class.
Stay with us.
(COMMERCIAL BREAK)
PILGRIM: Faced with the highest unemployment rate in the country, the governor of Michigan is taking action. Now, the governor has launched a new program called No Worker Left Behind.
And Bill Tucker explains what the program aims to accomplish.
(BEGIN VIDEO TAPE)
BILL TUCKER, CNN CORRESPONDENT (voice-over): Michigan is reeling under the loss of manufacturing jobs and struggling to keep companies from leaving the state. Unemployment is higher in the Wolverine State than in any other state in the nation. But it doesn't mean that there's not work.
GOV. JENNIFER GRANHOLM (D), MICHIGAN: We have 90,000 vacancies in Michigan, many of them in areas that require certification or training. We want to give this as an opportunity to put that whole cadre of workers who have been displaced a chance for a second career, a second shot at life and training.
TUCKER: To do that, the governor has created a program she calls No Worker Left Behind.
The goal?
To train 100,000 workers over the next three years. The program will pay for two years of tuition at a community college or a technical school, up to $10,000. For a worker to qualify, they must be 18 years or older, out of high school for at least two years, unemployed or have recently received a layoff notice, or in a family where the joint income is less than $40,000.
To fund the program, Michigan is taking federal money provided for job retraining for displaced workers under the North American Free Trade Agreement and combining it with money from the state.
But Michigan's budget is under strain and, as a result, there are critics of the program.
The head of Michigan's Republican Party says: "It doesn't make any sense to train Michigan residents for jobs that don't exist, only to prepare them to leave our state and find jobs elsewhere. Why train workers in Michigan for jobs in Indiana?," he wonders.
The governor responds to that by noting that the program is not training for phantom jobs, but working with employers who need workers.
GRANHOLM: We have needs right now for the kinds of skills that can't be outsourced. You can't outsource nursing. You can't outsource being an auto mechanic. Some of those service positions you have to do right here and that's what this is about.
TUCKER: The governor emphasizes this is a one time deal, one which she hopes can serve as a model for other states.
(END VIDEO TAPE)
TUCKER: And, as evidence of the early success of the program, Governor Granholm points to Caraco Pharmaceutical Labs. This is a generic drug maker who recently announced it would stay and expand its presence in the state, create 600 new jobs. That decision made after the state promised that it would train those newly needed workers under the No Worker Left Behind program.
And I've got to tell you, Kitty, these jobs pay $48,000 a year. So this is not, you know, an empty promise for low paying jobs.
PILGRIM: These are solid jobs. Bill, you know, you talked about some of the service sectors, like nursing, that you can't really outsource those jobs.
TUCKER: Right.
PILGRIM: But, you know, the big sticking point in this country is high tech.
What's the position on high tech?
Are they doing anything to help that?
TUCKER: It's, you know, this is a program that's not really aimed the technology sector and the governor will admit that. She and I talked about that a little bit today. But they do have -- part of the program is aimed at creating some alternative fuel programs, which the state is actively involved in. And they're hoping that they can train workers to go to work in industries in that area.
PILGRIM: In that area.
OK.
Thanks very much.
Bill Tucker.
TUCKER: Thank you.
PILGRIM: Millions of Americans have lost their jobs because of outsourcing and so-called free trade agreements.
Still, right now, Congress is considering several new controversial trade deals.
And the powerful chairman of the House Ways and Means Committee, Congressman Charlie Rangel, joins me right now.
And we will discuss trade, Congressman Rangel.
First of all, I would like to say that President Bush has been very big on free trade. He's been calling to expand free trade agreements even.
Let's listen first what the president has to say about it.
(BEGIN VIDEO CLIP)
GEORGE BUSH, PRESIDENT OF THE UNITED STATES: One way to address the challenge is to continue opening up markets for America's goods and services. The best way to do that is to expand free trade.
We negotiated new free trade agreements with Peru, Colombia, Panama and Korea. And now the Congress needs to carry out its responsibilities and approve these agreements.
(END VIDEO CLIP)
PILGRIM: All right, that's the president's position.
The Peru and Panama deals stalled in June.
You're very much for Peru, is that not correct?
REP. CHARLES RANGEL (D-NY), CHAIRMAN, WAYS AND MEANS COMMITTEE: I just love Peru...
PILGRIM: And tell us why.
RANGEL: ...and most of the impediments to having the Congress to approve those agreements were involved in making certain that labor rights and environment rights were there. And we concluded, after a group of us in Ways and Means met with the president and the Congress, that they will be able to resolve those differences.
But I would like to say that, you know, what the president says is right. Trade is just as much a part of our civilization -- you can call it free. You can say removing tariffs. But the governor that was on before is saying that in order for this to work, we have to be a competent, competitive, educated society.
And when it reaches the point that we're not doing this and educating our workers and, indeed, importing people from overseas, then we get a bad deal in trade. Or when you allow people like the Chinese to violate international trade ordinances.
So everyone should really be for trade, but not supporting lousy deals.
PILGRIM: Yes.
Well, part of the -- part of the lousy deal comes from the wage discrepancy that American workers are paid versus workers in other countries that don't have wage cap -- wage standards.
How do you deal with that in some of these?
RANGEL: You deal with that in making the adjustments and making certain that what is competitive, that you're trained to do it. We are not going to pick cotton anymore. At one time, that was a pretty good deal for this country.
But as long as you've got a billion of Chinese that are over there that have no work standards, which we're trying to incorporate in every trade agreement, we have to be able to trade what people want to buy.
PILGRIM: So are you convinced that the Peruvian trade deal is not going to displace American workers?
Because surely Peruvian workers are not going to be paid an American wage. RANGEL: Oh, no. The whole idea there is that they'll be pushing mining things, flowers and things that are not competitive with us. And we will be able to get our equipment over there. And once we have some basic international standard, where these people have purchasing power, they will be buying what we're able to manufacture.
We have shifted dramatically from doing physical labor to doing the services. And so to have half of our kids not finishing high school...
PILGRIM: Well...
RANGEL: ...it should be a part of our trade policy to educate our workforce.
PILGRIM: Let me move back to NAFTA and the North American trade. And some people who initially supported it are now are saying it maybe wasn't such a great idea. And we see some of the presidential candidates coming out -- Hillary Clinton has said NAFTA has hurt America. Now, this was put in under Bill Clinton and a Democratically elected Congress.
Do you think NAFTA is still a good deal?
RANGEL: No, I think it was a lousy deal. That's why I voted against it. I thought CAFTA was a lousy deal. I voted against that.
But it doesn't mean that you're supposed to be against trade. And the policy that we established, with Democrats and Republicans and the administration, to include labor, to include environment and to include that the U.S. trade representatives has to find out with every trade agreement what impact -- what negative impact it's going to have on our industries and our jobs.
And in addition to that, and part of the policy, is to train those people to meet new opportunities.
But we are not going to be able to compete against developing countries when it comes to wages and we're not going to get people that would want those kind of jobs.
PILGRIM: Let me turn to another issue that you are very active in, and that is you have called for a return to the draft.
Let me just call up what Army Chief of Staff General George Casey said yesterday about this topic.
(BEGIN VIDEO CLIP)
GEN. GEORGE CASEY, U.S. ARMY CHIEF OF STAFF: Right now, we have in place deployment and mobilization policies that allow us to meet the current demands. If the demands don't go down, over time, it will become increasingly difficult for us to provide the trained and ready forces for those missions that I spoke about.
But right now, there is absolutely no consideration, at least within the Army, being given to reinstituting the draft. We're not to that point.
(END VIDEO CLIP)
PILGRIM: Why do you think it's necessary?
RANGEL: Because if everyone who supported this war or any other reckless venture thought that their kids and kids from their community would have to make the sacrifice, we would never be there. Politically, they're not saying the draft. But even poor kids from areas of high unemployment, the $20,000, $30,000 and $40,000 bonuses are not working.
PILGRIM: Congressman Rangel, thank you for being with us.
RANGEL: Thank you, Kitty.
PILGRIM: It was a pleasure.
Still to come, what makes young men, even boys, want to die in the name of god?
We have a special report on "God's Warriors" and what they believe are their sacred obligations.
Stay with us for this.
(COMMERCIAL BREAK)
PILGRIM: Martyrdom -- dying for a religious cause -- has become all too familiar to people in this country. But in countries like Iran, it can be a time-honored tradition.
In Iran's 1980s, the war with Iraq, waves of Iranian boys volunteered to sacrifice their lives to become martyrs.
Now, in a new documentary "God's Warriors," Christiane Amanpour talked to one Iranian man who, in his youth, was dedicated to that path.
(BEGIN VIDEO TAPE)
CHRISTIANE AMANPOUR, CNN CORRESPONDENT (voice-over): Back then, Amir Fakhar (ph) was one of Khomeini's holy warriors. Tonight, as he prepares free food for the Ashura crowds in Tehran, he tells us how he volunteered to fight when he was barely a teenager, seen here on a hilltop during the battle.
AMIR FAKHAR (THROUGH TRANSLATOR): I was 13 when I went to the front.
AMANPOUR (SPEAKING IN ARABIC): You went to the war at 13-years- old?
(FAKHAR SPEAKING IN ARABIC -- NOT TRANSLATED)
AMANPOUR: How did they allow you to go at 13? A. FAKHAR (THROUGH TRANSLATOR): I did whatever I could. In the beginning, I was trained to defuse land mines. And when I was battle- hardened, I ran messages on foot.
AMANPOUR: Did you think of Imam Hussein (ph) when you were at the front?
A. FAKHAR (THROUGH TRANSLATOR): He was my example. His courage inspired me. You can never praise him enough.
AMANPOUR: When the West looks at this and looks at the rituals, they see chest beating. They see back beatings with chains.
What message do you want the West to have about your religion, about your rituals?
A. FAKHAR (THROUGH TRANSLATOR): When we beat ourselves with iron chains and damage our bodies, we want to show that we will stand with our imam and our religion to the bitter end. For the Shiites, his sacrifice has kept Islam alive for 1,400 years.
AMANPOUR (voice-over): And it's alive today, not only in Amir's heart, but in his household. He's brought me to meet his family.
A. FAKHAR (THROUGH TRANSLATOR): This is my son, Abbas (ph) and this Ali (ph).
AMANPOUR: Amir's two little boys are named after his two brothers, who were killed in the war with Iraq -- martyrs for their country, he says.
More than 20 years later, his mother doesn't regret the family's sacrifice.
(on camera): Kobra, you're a mother and you sent your 13-year-old son to the front. You lost already two sons.
How could you have done that?
KOBRA FAKHAR: (THROUGH TRANSLATOR): I never wept for my sons when they went to war. In fact, I was happy. I would have been angry if they reused to go.
AMANPOUR: Is religion that important in your life?
K. FAKHAR (THROUGH TRANSLATOR): During the Ashura War, one of the Imam Hussein's (ph) disciples was decapitated and his head was thrown at his mother. But she flung it back defiantly, saying: "Whatever I give to god, I don't want back."
That's how important Islam is for us.
(END VIDEO TAPE)
PILGRIM: Christiane Amanpour's three-part special primetime event, "God's Warriors," begins next Tuesday night; continues Wednesday and Thursday right here on CNN.
And we'll be right back.
(COMMERCIAL BREAK)
PILGRIM: Now the results of tonight's poll -- 97 percent of you believe immigration officials should immediately arrest Elvira Arellano and carry out her deportation.
Time now for some of your thoughts.
Rebecca in New Jersey wrote to us: "Wouldn't it be great if we could just bring back those toy making jobs to Camden, Newark and many other cities in this country? There are so many people who would love to be working."
And Elizabeth in New York wrote: "We don't want cheap imports from China if it means losing our jobs. I know all of us would be willing to pay a little more to keep the jobs in this country."
And Gary in Illinois wrote and he said: "I've been saying for years that Wal-Mart and other big box retailers are doing more harm than good by importing Chinese-made products in order to undersell their competitors. We must turn around this trend before it's too late."
We love hearing from you.
Send us your thoughts at loudobbs.com.
Thanks for being with us tonight.
Please join us tomorrow.
And among our guests, Joseph Califano, president of the National Center on Addiction and Substance Abuse at Columbia University.
For all of us here, thanks for watching.
Good night from New York.
"THE SITUATION ROOM" starts right now with Miles O'Brien -- Miles.
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