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CNN Live Today

Members of Congress Hoping to Hear More Details About President's Plan to Change Social Security; In Ohio

Aired February 02, 2005 - 10:30   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.


RICK SANCHEZ, ANCHOR: We are 30 minutes into the hour, I should say. And I'm Rick Sanchez.
DARYN KAGAN, CNN ANCHOR: And I'm Daryn Kagan.

Let's go ahead and look at what's happening now in the news. Investigators are looking at several possible causes into this morning's corporate jet crash near New York City. New Jersey State police say two people are missing and 11 are injured. FAA officials say the small plane was unable to gain altitude on takeoff. The jet ran off the runway, crossed a busy highway and crashed into a warehouse. The plane apparently hit at least one car on the road.

We have sound some now from a news conference that was held with a medical doctor from a Hackensack Medical Center. Let's listen in.

(BEGIN VIDEO CLIP)

DR. JOSEPH FELDMAN, HACKENSACK UNIV. MEDICAL CENTER: Twelve patients that we received. Three are being admitted. We have one critically ill patient that was in a car. We have one -- we have a copilot with a serious injury to a lower extremity. We have another critical patient that will be admitted, who is also a passenger in the car. We have three bystanders that were milling around, and we have five passengers that were on the plane.

(END VIDEO CLIP)

KAGAN: Vatican officials say pope John Paul II will remain in a Rome hospital for a few more days. The pontiff was taken to the hospital late last night after suffering breathing problems. The pope came down with the flu a few days ago. The Vatican says there is no cause for alarm.

We'll know about four hours from now whether or not your loans may get more expensive. Most economists expect the federal reserve to announce a quarter-point increase in the federal funds rate. That would make the sixth one-quarter percent hike since last June.

And a Senate panel right now is holding a hearing on President Bush's pick for homeland security secretary, Michael Chertoff. You see him in the middle of your screen there. headed the Justice Department's criminal division at the time of the terror attacks. Some critics have raised concerns about his role in allowing the roundup of hundreds of ethnic Arabs and Muslims. Still Chertoff is expected to easily win confirmation. SANCHEZ: Let's do this. We'll look forward to tonight now and the State of the Union Address. Members of Congress are hoping, they say, to hear more details about the president's plan to change Social Security. Specifics is what they're asking for in many cases.

CNN's Joe Johns is on Capitol Hill this morning, where there are concerned lawmakers. On both sides of the aisle, Joe?

JOE JOHNS, CNN CORRESPONDENT: I think you could say that, Rick. The president's speech comes at a time when debate over his biggest domestic idea is already under way.

At this hour, in fact, the Senate Finance Committee at a hearing talking about the long-term health of the Social Security program. Steven Goss, the chief actuary of Social Security, testifying right now.

Now, one of the things Congress always wants to hear is specifics, they're not so sure they're going to get a lot of specifics on the president's plan tonight. But at least they are expecting some salesmanship.

(BEGIN VIDEOTAPE)

JOHNS (voice-over): On the eve of the State of the Union address, the Senate's top Democrat flatly dismissed the president's anticipated call to change Social Security.

SEN. HARRY REID (D), MINORITY LEADER: President Bush should forget about privatizing Social Security. It will not happen. And the sooner he comes to that realization, the better off we are.

JOHNS: What Democrats call privatization, Republicans prefer to call personal accounts. But whatever the label, Bush's allies want him to make his best case for allowing workers to shift some of their Social Security money into private retirement accounts. Republicans also want the president to start convincing the public on the need to overhaul Social Security now, even though the government predicts the program won't go broke for decades.

SEN. BILL FRIST (R), MAJORITY LEADER: As we all know, when we're talking about altering a program that we know is a great program, has a tremendous history to it, that seniors, near seniors, and all of us have great value in, it is a huge challenge.

JOHNS: Internationally, Iraq remains at the top of the list, and while the president is expected to highlight the success of Sunday's election, the focus now is on what happens next.

SEN. CHRIS DODD (D), CONNECTICUT: That we're going to build on this. This was great day on Sunday, but it's only going to be as significant a day in light of history, with what follows on.

JOHNS: Some other top Democrats are demanding an exit strategy. But Republican senator John McCain rejects a timetable. SEN. JOHN MCCAIN (R), ARIZONA: But it's clear that this victory has changed the dynamic so that we will be able to continue to train the Iraqi military and police to take over the responsibilities that American military is now carrying out and eventually we will be able to withdraw.

(END VIDEOTAPE)

JOHNS: Fiscal restraint is another issue of interest to the Congress. Tonight the president is expected to call for keeping domestic discretionary spending around 1 percent -- Rick.

SANCHEZ: Joe Johns, following things up there for us. We thank you for that, Joe -- Daryn.

KAGAN: Well, for the past couple of years there's been increasing talk of President Bush and his resemblance to a recent predecessor, not his father, but Ronald Reagan.

Joining to us discuss that is a veteran of the Reagan administration. Frank Donatelli is a former White House political director, and now a Republican strategist.

Frank, good morning.

FRANK DONATELLI, FMR. WHITE HOUSE POLITICAL DIRECTOR: Good morning.

KAGAN: Let's talk about President Bush and the State of the Union Address. We've heard quite a bit from the president in the last couple of weeks -- you had the inaugural address. You had all these the swearings in. You had the news conference, and now we're going to hear him again tonight. How does he use this opportunity to further the message he's been trying to get out there?

DONATELLI: Daryn, this is the biggest audience that the president will have this year. He is in the most majestic setting he could possibly be in, the well of the House, and the Congress in front of him, and the attention of the entire country. So this is his opportunity to talk priorities, talk about the few things that you really want to accomplish in your second term. Good State of the Union speeches focused public attention on those issues, and drive the debate for the next year.

KAGAN: And speaking of the next year, he really has two years here is what we hear from everybody inside the beltway. He has the whole four years, but these next two are really key in terms of getting things done, and this is where he will set his top playlist.

DONATELLI: Yes, no question about it. Once you get closer to the end of your term, some of the support just fades away.

However, I would say this, as long as he's able to maintain strong public support, I don't think necessarily the end of his term should mean that he can't be an effective president. But to maintain public support, it means coming up big, at big occasions like this, and that's why tonight is so important.

KAGAN: Well, and let's talk about that public support, because depending on who you talk to, either people say he has this political mandate, because he won the election, but then others point to his approval numbers which are low for him at this point in his presidency.

DONATELLI: Yes. Daryn, you know, I don't believe in a mandate. I believe that winning election or re-election gives you an opportunity to make your case to the American people. And so the president had, I think, a strong re-election victory. He has a specific agenda, and now it's up to him to sell it to the American public. If the public will support the general outlines of what he's proposing and is willing to go along with his priorities, I believe that he can be more successful in Congress than maybe some of the current discussion that you've been hearing might indicate.

KAGAN: Frank, clearly, you're going to be listening tonight. Tell me exactly what you're going to be listening for, the nuances and the reaction.

DONATELLI: Yes, I'm going to be listening, No. 1, to see how many more details he might provide on his priorities. No. 2, I'm hoping that the list of things that he chooses to discuss is fewer rather than a large number, because that tends to diffuse coverage. And, No. 3, we are obviously going to look to see the reaction of the American people as is measured in public opinion polls and conversations back with them and so forth.

KAGAN: All right, we will be listening as well. Frank Donatelli, thank you for your time.

DONATELLI: Thank you, Daryn.

SANCHEZ: Daryn had just mentioned how different people in this country see things in different ways when it comes to politics. Well, as pundits and politicos stand to analyze the speech tonight, how is it going to play in Peoria, as we often ask, or in other small cities all over the United States?

CNN's Paula Zahn takes us now to Canton, Ohio. That's where the story of the haves and the have-nots looks more like a tale of two cities.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: This will go out to the (UNINTELLIGIBLE)

UNIDENTIFIED FEMALE: Good afternoon, the employment source.

UNIDENTIFIED FEMALE: How long did you work at this job?

ZAHN (voice-over): On the one hand, Canton is a story of devastating layoffs.

UNIDENTIFIED FEMALE: Are you guys currently hiring? ZAHN: But, on the other, it's a tale of new opportunity.

Michelle Pettis is a longtime steelworker who suddenly found herself unemployed at the age of 52.

PETTIS: I worked at this plant for 29 years and seven Minnesota. And I walked away with absolutely nothing.

ZAHN: And thirty-year-old Geoff Karcher, an entrepreneur whose budding Web design company was named Canton's small business of the year.

GEOFF KARCHER, THE KARCHER GROUP: We're a high-technology search engine marketing and Web development firm, meeting needs of companies all over the country.

ZAHN: The disparity between them is dramatic, but their shared lessons are telling.

PETTIS: This is the way I come 30 years. I did this every day, every day. I could drive this with my eyes closed.

ZAHN: Today's drive to the steel mill is painful.

PETTIS: This is the first time I've been out here since they closed the doors. And I guess it's like putting something to rest.

ZAHN: A once bustling factory that employed 2,500 people, the plant is abandoned now, a symbol of economic decay. The quiet here is deafening.

PETTIS: I feel like this plant look. I would have never thought that this place could get like this. Now it's like a bad nightmare to be out here and see nobody but me.

ZAHN: It was December of 2002, when Republic Steel closed its doors for good.

PETTIS: I was five months from retiring when they told us goodbye. We was supposed to get shutdown fee. We was supposed to get pension and benefits. But we didn't get anything. So when -- I'm not going to cry. Because I didn't have plan B.

ZAHN: The only female welder in Republic's maintenance department, Michelle earned high praise for her work. It was a good steady job with benefits, one that helped this single mother support her five children.

PETTIS: When I got my checks, my name was on it and had a pretty nice little number after it.

ZAHN: But its sudden failure left Michelle and hundreds like her feeling disillusioned, betrayed and more than a little lost.

PETTIS: I feel like a wife being betrayed by her husband, being faithful to him for 30 years. And he go get a younger model. ZAHN: So this grandmother of 15 went back to school to become a medical assistant. She earned honors and graduated a year later. But her first paycheck as a home health aide was downright discouraging.

PETTIS: I got used to making, clearing $1,100, $1,200 every two weeks. To my first home health, I made $13. My second check was $26.

ZAHN: Michelle now lives in subsidized housing. The struggle to make ends meet is taking a toll.

PETTIS: I worked all those years trying to get good credit and I'm right back at square A, as though I never had a job in my life. Now I'll never be able to retire. I'll work until I die.

ZAHN: On the other side of town is this nondescript building, a little slice of Silicon Valley. Tucked away in his office, Geoff Karcher and his employees are reaping the rewards of Canton's gradual shift from an industrial economy to one fueled by technology.

UNIDENTIFIED MALE: What about the fire walls of like the (UNINTELLIGIBLE) on each machine?

KARCHER: We help people's business sites show up in Yahoo! and Google. That is something that I don't think people expect to find in Canton, Ohio. They don't expect to find a little business that's the home of 700 Web sites.

ZAHN: Their office may look like fun and games, but it's serious business.

KARCHER: We went from 12 employees two years ago to 22 employees at this point. We're creating jobs. We're not creating them at a high rate because we're a small business. But there are a lot of small businesses like us doing exactly that same thing.

ZAHN: So much so that small businesses like Geoff's now employ half of Ohio's work force and account for 80 percent of new jobs in the state.

KARCHER: We're not about getting rich overnight. We're about making a fair wage and doing a good job, but enjoying what we do.

UNIDENTIFIED MALE: Thank you.

ZAHN: On the edge of town, signs of commerce are everywhere. A busy new shopping district points to economic recovery.

KARCHER: There are stores popping up. There are new locations, whole new areas being developed all over the place. And I see the retail as a result of the fact that this economy isn't as bad as everybody wants to make it out to be. If it was, people wouldn't be shopping.

ZAHN: But for Michelle and many like her, all this success seems puzzling. PETTIS: They're building $200,000 and $300,000 and $400,000 homes. Where do these people work at? Someone is building while someone is tearing down, so I guess the two go hand in hand. And I happen to be the one that got the negative end.

ZAHN: Still, Canton reminds us all to look toward the future and to remember that, in the wake of failure, new opportunities await.

KARCHER: I'm extremely happy. I've seen the last couple of years. I believe we've been through the toughest times that we're going to see for a while.

PETTIS: Canton, Ohio has the ability to be a great town. Maybe this is a time for people to pull together and pull our resources together and see that we can do for ourselves.

(END VIDEOTAPE)

SANCHEZ: Paula Zahn reporting.

In the next hour, we're going to show you what happens when a city suddenly grows too big too fast. We're going to look at the state of things in Denver, Colorado, where growth means something different entirely.

KAGAN: But still to come this hour, two things, two people, two situations you probably wouldn't have put together by yourself -- Yogi Berra and "Sex and the City," not a good mix apparently. How using the baseball's legend's name has a TV network show in the hot seat.

SANCHEZ: A Yogi-ism.

Also, going up, up, and up. That may be the story today on Wall Street. A look at interest rates when we come back.

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

SANCHEZ: OK. There's Yogi Bear and Yogi Berra. Which one do you think is suing TBS, the television network?

KAGAN: I would say, since Yogi Bear is a cartoon character, I'm going with the person.

SANCHEZ: There you go you. And you see his picture. Yes. The one who mangles his syntax or the one who says "Hey, Boo Boo." The Yankees great says that TBS damaged his reputation in this episode -- it's a rerun of "Sex and the City." The ad uses the word yogasm and asks readers if they think it means sex with Yogi Berra. TBS is one of CNN's sister companies, by the way. Yogi Berra is not.

KAGAN: He is not. And he's not pleased, clearly.

SANCHEZ: Correct. KAGAN: Let's check that time right now. It is 7:52 on the West Coast and 10:52 on the East Coast. Coming up, a quick look at your morning forecast.

(COMMERCIAL BREAK)

(WEATHER REPORT)

KAGAN: Even you're not a sports fan, we have two amazing sports stories ahead for you.

SANCHEZ: Oh, god, yes.

KAGAN: Last month he was a construction project manager, Sunday he's going to be playing in the super bowl. His story is just ahead.

SANCHEZ: That's what happens when somebody gets hurt.

Also, you may have seen this one. This is the miraculous tie- breaking shot from a couple days ago that we brought to you yesterday. Would you believe if we said the same player made the same shot again when asked to do so? We've got the proof. The second hour of CNN LIVE TODAY begins right after a quick break.

(COMMERCIAL BREAK)

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 February 2, 2005 - 10:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
RICK SANCHEZ, ANCHOR: We are 30 minutes into the hour, I should say. And I'm Rick Sanchez.
DARYN KAGAN, CNN ANCHOR: And I'm Daryn Kagan.

Let's go ahead and look at what's happening now in the news. Investigators are looking at several possible causes into this morning's corporate jet crash near New York City. New Jersey State police say two people are missing and 11 are injured. FAA officials say the small plane was unable to gain altitude on takeoff. The jet ran off the runway, crossed a busy highway and crashed into a warehouse. The plane apparently hit at least one car on the road.

We have sound some now from a news conference that was held with a medical doctor from a Hackensack Medical Center. Let's listen in.

(BEGIN VIDEO CLIP)

DR. JOSEPH FELDMAN, HACKENSACK UNIV. MEDICAL CENTER: Twelve patients that we received. Three are being admitted. We have one critically ill patient that was in a car. We have one -- we have a copilot with a serious injury to a lower extremity. We have another critical patient that will be admitted, who is also a passenger in the car. We have three bystanders that were milling around, and we have five passengers that were on the plane.

(END VIDEO CLIP)

KAGAN: Vatican officials say pope John Paul II will remain in a Rome hospital for a few more days. The pontiff was taken to the hospital late last night after suffering breathing problems. The pope came down with the flu a few days ago. The Vatican says there is no cause for alarm.

We'll know about four hours from now whether or not your loans may get more expensive. Most economists expect the federal reserve to announce a quarter-point increase in the federal funds rate. That would make the sixth one-quarter percent hike since last June.

And a Senate panel right now is holding a hearing on President Bush's pick for homeland security secretary, Michael Chertoff. You see him in the middle of your screen there. headed the Justice Department's criminal division at the time of the terror attacks. Some critics have raised concerns about his role in allowing the roundup of hundreds of ethnic Arabs and Muslims. Still Chertoff is expected to easily win confirmation. SANCHEZ: Let's do this. We'll look forward to tonight now and the State of the Union Address. Members of Congress are hoping, they say, to hear more details about the president's plan to change Social Security. Specifics is what they're asking for in many cases.

CNN's Joe Johns is on Capitol Hill this morning, where there are concerned lawmakers. On both sides of the aisle, Joe?

JOE JOHNS, CNN CORRESPONDENT: I think you could say that, Rick. The president's speech comes at a time when debate over his biggest domestic idea is already under way.

At this hour, in fact, the Senate Finance Committee at a hearing talking about the long-term health of the Social Security program. Steven Goss, the chief actuary of Social Security, testifying right now.

Now, one of the things Congress always wants to hear is specifics, they're not so sure they're going to get a lot of specifics on the president's plan tonight. But at least they are expecting some salesmanship.

(BEGIN VIDEOTAPE)

JOHNS (voice-over): On the eve of the State of the Union address, the Senate's top Democrat flatly dismissed the president's anticipated call to change Social Security.

SEN. HARRY REID (D), MINORITY LEADER: President Bush should forget about privatizing Social Security. It will not happen. And the sooner he comes to that realization, the better off we are.

JOHNS: What Democrats call privatization, Republicans prefer to call personal accounts. But whatever the label, Bush's allies want him to make his best case for allowing workers to shift some of their Social Security money into private retirement accounts. Republicans also want the president to start convincing the public on the need to overhaul Social Security now, even though the government predicts the program won't go broke for decades.

SEN. BILL FRIST (R), MAJORITY LEADER: As we all know, when we're talking about altering a program that we know is a great program, has a tremendous history to it, that seniors, near seniors, and all of us have great value in, it is a huge challenge.

JOHNS: Internationally, Iraq remains at the top of the list, and while the president is expected to highlight the success of Sunday's election, the focus now is on what happens next.

SEN. CHRIS DODD (D), CONNECTICUT: That we're going to build on this. This was great day on Sunday, but it's only going to be as significant a day in light of history, with what follows on.

JOHNS: Some other top Democrats are demanding an exit strategy. But Republican senator John McCain rejects a timetable. SEN. JOHN MCCAIN (R), ARIZONA: But it's clear that this victory has changed the dynamic so that we will be able to continue to train the Iraqi military and police to take over the responsibilities that American military is now carrying out and eventually we will be able to withdraw.

(END VIDEOTAPE)

JOHNS: Fiscal restraint is another issue of interest to the Congress. Tonight the president is expected to call for keeping domestic discretionary spending around 1 percent -- Rick.

SANCHEZ: Joe Johns, following things up there for us. We thank you for that, Joe -- Daryn.

KAGAN: Well, for the past couple of years there's been increasing talk of President Bush and his resemblance to a recent predecessor, not his father, but Ronald Reagan.

Joining to us discuss that is a veteran of the Reagan administration. Frank Donatelli is a former White House political director, and now a Republican strategist.

Frank, good morning.

FRANK DONATELLI, FMR. WHITE HOUSE POLITICAL DIRECTOR: Good morning.

KAGAN: Let's talk about President Bush and the State of the Union Address. We've heard quite a bit from the president in the last couple of weeks -- you had the inaugural address. You had all these the swearings in. You had the news conference, and now we're going to hear him again tonight. How does he use this opportunity to further the message he's been trying to get out there?

DONATELLI: Daryn, this is the biggest audience that the president will have this year. He is in the most majestic setting he could possibly be in, the well of the House, and the Congress in front of him, and the attention of the entire country. So this is his opportunity to talk priorities, talk about the few things that you really want to accomplish in your second term. Good State of the Union speeches focused public attention on those issues, and drive the debate for the next year.

KAGAN: And speaking of the next year, he really has two years here is what we hear from everybody inside the beltway. He has the whole four years, but these next two are really key in terms of getting things done, and this is where he will set his top playlist.

DONATELLI: Yes, no question about it. Once you get closer to the end of your term, some of the support just fades away.

However, I would say this, as long as he's able to maintain strong public support, I don't think necessarily the end of his term should mean that he can't be an effective president. But to maintain public support, it means coming up big, at big occasions like this, and that's why tonight is so important.

KAGAN: Well, and let's talk about that public support, because depending on who you talk to, either people say he has this political mandate, because he won the election, but then others point to his approval numbers which are low for him at this point in his presidency.

DONATELLI: Yes. Daryn, you know, I don't believe in a mandate. I believe that winning election or re-election gives you an opportunity to make your case to the American people. And so the president had, I think, a strong re-election victory. He has a specific agenda, and now it's up to him to sell it to the American public. If the public will support the general outlines of what he's proposing and is willing to go along with his priorities, I believe that he can be more successful in Congress than maybe some of the current discussion that you've been hearing might indicate.

KAGAN: Frank, clearly, you're going to be listening tonight. Tell me exactly what you're going to be listening for, the nuances and the reaction.

DONATELLI: Yes, I'm going to be listening, No. 1, to see how many more details he might provide on his priorities. No. 2, I'm hoping that the list of things that he chooses to discuss is fewer rather than a large number, because that tends to diffuse coverage. And, No. 3, we are obviously going to look to see the reaction of the American people as is measured in public opinion polls and conversations back with them and so forth.

KAGAN: All right, we will be listening as well. Frank Donatelli, thank you for your time.

DONATELLI: Thank you, Daryn.

SANCHEZ: Daryn had just mentioned how different people in this country see things in different ways when it comes to politics. Well, as pundits and politicos stand to analyze the speech tonight, how is it going to play in Peoria, as we often ask, or in other small cities all over the United States?

CNN's Paula Zahn takes us now to Canton, Ohio. That's where the story of the haves and the have-nots looks more like a tale of two cities.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: This will go out to the (UNINTELLIGIBLE)

UNIDENTIFIED FEMALE: Good afternoon, the employment source.

UNIDENTIFIED FEMALE: How long did you work at this job?

ZAHN (voice-over): On the one hand, Canton is a story of devastating layoffs.

UNIDENTIFIED FEMALE: Are you guys currently hiring? ZAHN: But, on the other, it's a tale of new opportunity.

Michelle Pettis is a longtime steelworker who suddenly found herself unemployed at the age of 52.

PETTIS: I worked at this plant for 29 years and seven Minnesota. And I walked away with absolutely nothing.

ZAHN: And thirty-year-old Geoff Karcher, an entrepreneur whose budding Web design company was named Canton's small business of the year.

GEOFF KARCHER, THE KARCHER GROUP: We're a high-technology search engine marketing and Web development firm, meeting needs of companies all over the country.

ZAHN: The disparity between them is dramatic, but their shared lessons are telling.

PETTIS: This is the way I come 30 years. I did this every day, every day. I could drive this with my eyes closed.

ZAHN: Today's drive to the steel mill is painful.

PETTIS: This is the first time I've been out here since they closed the doors. And I guess it's like putting something to rest.

ZAHN: A once bustling factory that employed 2,500 people, the plant is abandoned now, a symbol of economic decay. The quiet here is deafening.

PETTIS: I feel like this plant look. I would have never thought that this place could get like this. Now it's like a bad nightmare to be out here and see nobody but me.

ZAHN: It was December of 2002, when Republic Steel closed its doors for good.

PETTIS: I was five months from retiring when they told us goodbye. We was supposed to get shutdown fee. We was supposed to get pension and benefits. But we didn't get anything. So when -- I'm not going to cry. Because I didn't have plan B.

ZAHN: The only female welder in Republic's maintenance department, Michelle earned high praise for her work. It was a good steady job with benefits, one that helped this single mother support her five children.

PETTIS: When I got my checks, my name was on it and had a pretty nice little number after it.

ZAHN: But its sudden failure left Michelle and hundreds like her feeling disillusioned, betrayed and more than a little lost.

PETTIS: I feel like a wife being betrayed by her husband, being faithful to him for 30 years. And he go get a younger model. ZAHN: So this grandmother of 15 went back to school to become a medical assistant. She earned honors and graduated a year later. But her first paycheck as a home health aide was downright discouraging.

PETTIS: I got used to making, clearing $1,100, $1,200 every two weeks. To my first home health, I made $13. My second check was $26.

ZAHN: Michelle now lives in subsidized housing. The struggle to make ends meet is taking a toll.

PETTIS: I worked all those years trying to get good credit and I'm right back at square A, as though I never had a job in my life. Now I'll never be able to retire. I'll work until I die.

ZAHN: On the other side of town is this nondescript building, a little slice of Silicon Valley. Tucked away in his office, Geoff Karcher and his employees are reaping the rewards of Canton's gradual shift from an industrial economy to one fueled by technology.

UNIDENTIFIED MALE: What about the fire walls of like the (UNINTELLIGIBLE) on each machine?

KARCHER: We help people's business sites show up in Yahoo! and Google. That is something that I don't think people expect to find in Canton, Ohio. They don't expect to find a little business that's the home of 700 Web sites.

ZAHN: Their office may look like fun and games, but it's serious business.

KARCHER: We went from 12 employees two years ago to 22 employees at this point. We're creating jobs. We're not creating them at a high rate because we're a small business. But there are a lot of small businesses like us doing exactly that same thing.

ZAHN: So much so that small businesses like Geoff's now employ half of Ohio's work force and account for 80 percent of new jobs in the state.

KARCHER: We're not about getting rich overnight. We're about making a fair wage and doing a good job, but enjoying what we do.

UNIDENTIFIED MALE: Thank you.

ZAHN: On the edge of town, signs of commerce are everywhere. A busy new shopping district points to economic recovery.

KARCHER: There are stores popping up. There are new locations, whole new areas being developed all over the place. And I see the retail as a result of the fact that this economy isn't as bad as everybody wants to make it out to be. If it was, people wouldn't be shopping.

ZAHN: But for Michelle and many like her, all this success seems puzzling. PETTIS: They're building $200,000 and $300,000 and $400,000 homes. Where do these people work at? Someone is building while someone is tearing down, so I guess the two go hand in hand. And I happen to be the one that got the negative end.

ZAHN: Still, Canton reminds us all to look toward the future and to remember that, in the wake of failure, new opportunities await.

KARCHER: I'm extremely happy. I've seen the last couple of years. I believe we've been through the toughest times that we're going to see for a while.

PETTIS: Canton, Ohio has the ability to be a great town. Maybe this is a time for people to pull together and pull our resources together and see that we can do for ourselves.

(END VIDEOTAPE)

SANCHEZ: Paula Zahn reporting.

In the next hour, we're going to show you what happens when a city suddenly grows too big too fast. We're going to look at the state of things in Denver, Colorado, where growth means something different entirely.

KAGAN: But still to come this hour, two things, two people, two situations you probably wouldn't have put together by yourself -- Yogi Berra and "Sex and the City," not a good mix apparently. How using the baseball's legend's name has a TV network show in the hot seat.

SANCHEZ: A Yogi-ism.

Also, going up, up, and up. That may be the story today on Wall Street. A look at interest rates when we come back.

(COMMERCIAL BREAK)

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SANCHEZ: OK. There's Yogi Bear and Yogi Berra. Which one do you think is suing TBS, the television network?

KAGAN: I would say, since Yogi Bear is a cartoon character, I'm going with the person.

SANCHEZ: There you go you. And you see his picture. Yes. The one who mangles his syntax or the one who says "Hey, Boo Boo." The Yankees great says that TBS damaged his reputation in this episode -- it's a rerun of "Sex and the City." The ad uses the word yogasm and asks readers if they think it means sex with Yogi Berra. TBS is one of CNN's sister companies, by the way. Yogi Berra is not.

KAGAN: He is not. And he's not pleased, clearly.

SANCHEZ: Correct. KAGAN: Let's check that time right now. It is 7:52 on the West Coast and 10:52 on the East Coast. Coming up, a quick look at your morning forecast.

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KAGAN: Even you're not a sports fan, we have two amazing sports stories ahead for you.

SANCHEZ: Oh, god, yes.

KAGAN: Last month he was a construction project manager, Sunday he's going to be playing in the super bowl. His story is just ahead.

SANCHEZ: That's what happens when somebody gets hurt.

Also, you may have seen this one. This is the miraculous tie- breaking shot from a couple days ago that we brought to you yesterday. Would you believe if we said the same player made the same shot again when asked to do so? We've got the proof. The second hour of CNN LIVE TODAY begins right after a quick break.

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