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Interview With Senator Trent Lott; Inauguration Events; Bush, Social Security; 'New You Revolution'

Aired January 20, 2005 - 07:29 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.

SOLEDAD O'BRIEN, CNN ANCHOR: Well, what a beautiful shot of all of the preparations this morning, and the sun hasn't even really risen yet. It is just about half past the hour on this AMERICAN MORNING. Welcome back, everybody.
And we are in Washington, D.C. for our special coverage of the inauguration here by the steps of the Capitol, where in about four and a half hours, George W. Bush is going to be sworn in for his second term as president. His inaugural address is said to focus on the theme of spreading freedom throughout the world. The speech is expected to last between 20 and 30 minutes. And it's meant to inspire, not really focus on policy initiatives.

BILL HEMMER, CNN ANCHOR: After that ceremony, a parade down Pennsylvania Avenue. About 100,000 are expected to line the route, and that is on the conservative estimate for today's crowd turnout here in Washington.

Mississippi Senator Trent Lott has been front and center for the planning of the festivities today and yesterday and the day before. He's been like the quarterback out here, executing a game plan that he hopes will work to perfection. Senator Lott is also chairman of the Joint Congressional Committee on inaugural ceremonies. He is my guest now here in our nation's capital.

Senator, good morning to you.

SEN. TRENT LOTT (R), MISSISSIPPI: Good morning, Bill.

HEMMER: You're pulling a William Henry Harrison, by the way. Where's your coat.

LOTT: Actually I just forgot it, and it's going to be quite nice.

HEMMER: Yes.

LOTT: It's balmy out here actually.

HEMMER: Balmy for a guy from Mississippi? In 1972, Richard Nixon put on the most expensive inauguration to date at a cost of $4 million. This is well over 40 million in 2005. How do you justify the expense?

LOTT: This is a special event. It's a seminal event in the history of our country. This is when we all come together regardless of party, philosophy, reason, you know, sex, whatever, and we celebrate our republican, our democracy. And it's appropriate that you do it in the right way.

A lot of emphasis this time, by the way, is on honoring our men and women in uniform. So, we want to do it in the right way. And I must admit, security has added to the cost a good bit. We're trying to make it secure, but also, you know, not so obtrusive that it just makes it impossible to be here.

HEMMER: You mentioned security. It's difficult to move in this town.

LOTT: It is. I just came here myself. It applies to all of us. But we want to make sure that people get in here safely. But at the same time that this is a wonderful event, a celebration, and I'm hoping it will be more like 200,000 instead of 100,000.

HEMMER: We have been talking about the parade route throughout the day here, too. And protesters will be out today.

LOTT: Sure.

HEMMER: There's a group referred to as J20. What is that? Are you aware of that? And if so, how many do you expect in that area?

LOTT: I haven't the foggiest idea. I don't focus on it at all. It's part of being America. You know, people can express themselves. If they are a radical group, you know, they'll be watched closely, but they'll be able to hold their signs. But, you know, I don't focus on that. I'm focusing on the people that are here -- Democrats, Republicans, Independents -- to honor this event and our president regardless of party.

HEMMER: Let's talk about a second term. On the list of priorities, there's an awful lot of talk in the last few days about Social Security reform in this town and how you sell that to the American people. Do you think that is the first priority for this president?

LOTT: I think it's a high priority. I don't think it's the first thing we want to do.

HEMMER: What is the first thing then?

LOTT: Well, there are a number of things that are sort of left over from last year that are important for our country that we can do in a bipartisan way...

HEMMER: Such as?

LOTT: ... while we engage the debate, such as a national energy policy, some infrastructure programs like highways, pension reform, which is important not only for the airlines, the steel industry, but for people that are counting on those pensions.

So, there are several things that we can work -- immigration reform is another issue that we're going to have to think about. We can do that. But we've got to do it in a way that's fair and acceptable to the American people.

HEMMER: You control the House. You control the Senate. Can this president reach out in a bipartisan way to get the things done that you're suggesting?

LOTT: He must. But when you reach your hand out, somebody has to accept it. It's got to be both ways. But a new administration, it is a new beginning. You can do things different. And I think you have to.

In a new term where you control the White House and the House and the Senate, you've got to realize you have a great opportunity, but you can't get caught up in hubris. You've got to think carefully about how you do things and when you do things. This president will do that, and our leaders are working on that.

HEMMER: Have you seen hubris in the past four years.

LOTT: In this city? Where are you talking about? Like, everywhere?

HEMMER: You live here.

LOTT: Look, I personally have experienced it. It's very easy when you've had a great victory. You're excited. You're enthusiastic. You kind of get carried away. And that's when I've learned over my 32 years in Congress that you need to calm down, take a look, be careful, be magnanimous every way you can. And I think we can do that. Look, I've been as tough a partisan as you'd ever want in this city, but I also am a believer that we're here to get things done. And I care more about it now than ever before, because I've got four grandchildren that are really special.

HEMMER: I'm out of time here.

LOTT: All right.

HEMMER: But at the podium at 12:00 noon today, what do you expect to hear from this president?

LOTT: The president will raise his hand and, you know, swear allegiance to the Constitution to protect and defend it. And then he will, I think, paint a grand vision of what we can do in America in our future. He'll talk about freedom and democracy and making this a better place to live and the world a safer place to live.

HEMMER: Thank you, Senator.

LOTT: OK, Bill. Soledad, great seeing you.

O'BRIEN: As always, Senator, thank you very much.

Well, the president has a packed Inauguration Day schedule beginning with a prayer service at 9:00 a.m. Eastern Time. The swearing-in ceremony begins at 10:00 a.m.. The president then takes the oath of office at high noon. At 2:00 p.m., the inaugural parade begins. Then at 7:00, it is party time.

Suzanne Malveaux at the White House for us this morning.

Hey, Suzanne, good morning.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Good morning, Soledad.

I guess the party has begun. It started last night, inauguration eve. President Bush saying he felt very much at home. He basically raced through three different formal dinners and attended the Texas black tie and boots ball. That is where he addressed the audience, giving us a hint of what he is going to say for his inaugural address later today, saying that his call was from beyond the stars to stand for freedom around the world.

Now, the president, of course, will be delivering that address just after noon today. He has been practicing in the family theater all week. It's about 17 minutes in length, the 21st draft, we're told. It's going to be emphasizing securing the homeland as well as achieving peace abroad.

And excerpts saying: "We are led by events of common sense to one conclusion: the survival of liberty in our land increasingly depends on the success of liberty in other lands. The best hope for peace in our world is the expansion of freedom in all the world."

Now, this morning I spoke with his chief of staff, Andy Card, asking him, was his morning any different from any other. He said not really. He woke up about 5:30 or so. He is concerned. However, he wants to make sure that all of his guests -- he says he has a packed house at the White House as well as across the street -- are well taken care of.

The first time we expect that we're going to hear -- or see the president, rather, is when he and the first lady motorcade right across the street to St. John's Episcopal Church. That is where they'll start off today with a prayer service -- Soledad.

O'BRIEN: Well, Suzanne, that's a little bit of a preview of what's he going to say. But what's actually going to be on his agenda, at the top of the agenda really, as he starts his second term?

MALVEAUX: Well, certainly just 10 days away is the Iraqi election. That is first and foremost critical a test of his credibility, if you will, to make sure that his policy in talking about spreading democracy is actually going to come to fruition.

Secondly, he is looking at the Middle East peace initiative. That is a nod really to his closest ally, British Prime Minister Tony Blair, as well as Arab leaders, who have been asking the president, pushing the president to become more engaged on that.

And then on the domestic side what we are seeing is really taking focus here, and that is the Social Security argument, revamping that. Interesting enough, however, Soledad, it is unclear whether or not even the Republicans, those in his own party, will actually support the kinds of measures that he's introduced -- Soledad.

O'BRIEN: Suzanne Malveaux at the White House for us this morning. Suzanne, thanks a lot. We'll continue, of course, to check in with you throughout the morning -- Bill.

HEMMER: We want to get back to Chad Myers again, watching the weather for us. It's the story here in Washington. We'll see how cold it is in the rest of the country as well.

(WEATHER REPORT)

HEMMER: What do average Americans want to see from President Bush in the next four years? Kelly Wallace has been checking that all week long here in our special series called "What's In It For Me?" This morning, we focus on Social Security. Kelly is also here in D.C. right over near the White House.

Good morning -- Kelly.

KELLY WALLACE, CNN NATIONAL CORRESPONDENT: Good morning to you, Bill.

You know President Bush is making Social Security reform the top domestic goal for his second term. There is great debate, though, over the extent of the problem and what should be done about it. And that was evident when we recently sat down with one family and asked: What is in it for them?

(BEGIN VIDEOTAPE)

WALLACE (voice over): Three generations of a New York City family who say they're not supporters of President Bush but do share some of his concerns about Social Security. Thirty-seven-year-old Dawn Reisch (ph) says she's not counting on getting anything.

(on camera): Does that bother you?

UNIDENTIFIED FEMALE: Yes, it bothers me a lot. They take a lot out of my paycheck for it.

WALLACE (voice over): Dawn's (ph) mother, 63-year-old Ilana Reisch (ph), a psychologist, says it's not herself she's worried about.

UNIDENTIFIED FEMALE: But I'm worried about it for future generations, because I know a lot of people -- I have a good profession. So, I've always put money aside for my old age. But there are many people who can't do that.

WALLACE: Ilana's (ph) mother and Dawn's (ph) grandmother, 89- year-old Mefa Rogoff, a retired occupational therapist, agrees.

MEFA ROGOFF, 89 YEARS OLD: I'm worried about it for my granddaughter, for my great grandson who's only a year old. No, it is a problem. It really is.

UNIDENTIFIED FEMALE: There aren't as many in my generation working as there are Baby Boomers that are retiring. So, mathematically, there can't be enough money unless it comes from someplace else.

WALLACE: And so, we asked them about the president's idea, allowing younger workers the option of investing some of their Social Security in the stock market. No way, says Mefa.

ROGOFF: Well, it's like teaching young people how to gamble.

UNIDENTIFIED FEMALE: And government-approved mutual funds that have a broad base doesn't seem like it would be a gamble. It seems like it would possibly provide the system with more money.

WALLACE (on camera): You both obviously disagree on this and...

UNIDENTIFIED FEMALE: We've been arguing all weekend.

WALLACE (voice over): Dawn (ph) sides with her grandmother on this one.

UNIDENTIFIED FEMALE: I don't enjoy the thought of investing my money.

WALLACE (on camera): Why?

UNIDENTIFIED FEMALE: It's too risky.

WALLACE: Too worried you're going to lose?

UNIDENTIFIED FEMALE: Right.

WALLACE (voice over): And sharp differences also on whether the president and lawmakers can agree on a solution.

UNIDENTIFIED FEMALE: I think the older generations that are in politics are not going to give it as much thought as maybe my generation that comes into politics.

UNIDENTIFIED FEMALE: Well, I think politicians are always looking to the younger vote and trying to get voters in your generation. And so, they would want to make a proposal that you would agree with so that you'd vote for whoever it was.

UNIDENTIFIED FEMALE: That's one thing, making the proposal. It's quite another to actually implement it and get it moving.

(END VIDEOTAPE)

WALLACE: Now, this family tells us they never even really talked about Social Security until they prepared for our piece. They say they will be watching what happens in Washington and, Bill, likely debating amongst themselves every step of the way. HEMMER: If they were laying down odds in this town about the president getting this done in the next four years, Kelly, what would those odds look like today?

WALLACE: I think it might even be under 50/50, because Democrats are already expressing a great deal of opposition to the president's proposal to allow people to invest some of their Social Security in the stock market.

But the bigger issue here, the president is getting some opposition from members of his own party. You had the House Ways and Means Committee Chairman Bill Thomas saying the other day that the president's proposal could become a -- quote -- "dead horse" in the next few weeks. And so, it might be time to broaden the argument. So, big, big challenges ahead -- Bill.

HEMMER: All right, Kelly, thanks. A good series. Part four today. Part five tomorrow. "What's In It for Me" will focus on immigration issues on Friday morning. Thank you, Kelly.

Here's Soledad again.

O'BRIEN: Well, obviously it's a very complex issue. Andy Serwer now with more Social Security 101. He's "Minding Your Business" from New York.

Andy, good morning. Break it down for us.

ANDY SERWER, "FORTUNE" MAGAZINE: Good morning to you, Soledad.

Well, the Social Security system was created during the administration of Franklin Delano Roosevelt. And the first recipient was a woman named Ida May Fuller (ph), a legal secretary in Vermont, who first received her benefits in 1940.

Most people know, of course, that you contribute about 6.2 percent of your salary to Social Security, which is matched by your employer at 6.2 percent, up to $90,000. About 50 million Americans now receive Social Security benefits.

Let's break it down for you. You can see 33 million retirees and the survivors of disabled workers. The average payout is about $11,000, maximum is $23,000. And the eligibility now is at 66 years of age and will go up to 67 in 2022.

As far as the controversy over Social Security, Soledad, what is that all about? Well, it has to do with the fact that we currently have a surplus in the system that is anticipated to go to a deficit.

Let's break that down for you. You can see here a lot more money jingling around in the system than we have to pay out, 1.5 trillion. Of course, these are very rough projections. And you can see by 2052 we go to a deficit.

Why is that the case? Well, it has to do with the fact, obviously, that Baby Boomers are going to be retiring, life expectancy has increased and there's a lower birth rate.

As far as what to do, the choices will be unpopular. Obviously raising taxes or cutting benefits. And those choices are stark and something that the president will have to deal with and won't be very popular choices -- Soledad.

O'BRIEN: No question about that. Of course, he said it's at the top of his agenda. We will see exactly what happens at the end of the next four years. Andy Serwer in New York. Andy, thanks.

Now it's time to get another check on the headlines with Heidi Collins, also back in New York.

Hey, Heidi, good morning again.

HEIDI COLLINS, CNN ANCHOR: Good morning, Soledad. And good morning to you once again, everybody.

"Now in the News."

Word of a possible delay in the confirmation of Secretary of State nominee Condoleezza Rice. Republicans had hoped to confirm Rice this afternoon after President Bush's inauguration ceremony, but some Democrats are expected to try to prolong the debate until next week. The Senate Foreign Relations Committee approved Rice's nomination yesterday in a 16-2 vote.

A "CNN Security Watch." Now officials are looking for four Chinese nationals wanted for questioning in a possible terror threat in the Boston area. Officials telling CNN an anonymous caller reported the group is either carrying or planning to receive dangerous materials. The Chinese nationals were apparently smuggled in alongside two Iraqis from Mexico. That information has not been verified.

Stay tuned to CNN, though, day and night for the most reliable news about your security.

To health news now. Cancer is now the No. 1 killer of Americans under the age of 85, surpassing heart disease for the first time. The American Cancer Society says survival rates for both diseases are going up, but the survival rate for heart disease is rising faster, creating the change in positions.

And a surprise snowfall in North Carolina. Yes, that's North Carolina. What was supposed to be just a dusting turned into an inch or more in some areas. Roads were pretty icy, causing commuters to move at a snail's pace. Warmer weather, though, is expected today. So good for that.

Back now to Bill and Soledad in Washington.

O'BRIEN: All right, Heidi, thank you very much.

Well, she looks like she has it all, a great home, a great job, a loving husband. So, we're going to meet a woman who is taking part in our "New You Revolution." Why? That's ahead.

HEMMER: Also don't forget, all day long CNN has live special coverage of the inauguration today. We're in D.C. as our special coverage continues as well. Back here in a moment on Capitol Hill on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: It's day four of our weeklong introduction of those who have taken on the "New You Revolution," a new challenge for them certainly.

O'BRIEN: Here's our next participant. On the surface, some might think she looks actually picture-perfect. Our Dr. Sanjay Gupta in our New York studio to introduce us to Thekla Fischer.

Hey -- Sanjay.

SANJAY GUPTA, CNN MEDICAL CORRESPONDENT: Hey, good morning.

And she is here. And I can tell you, she does look perfect. But that's part of the point actually with Thekla Fischer. Even healthy looking people can have some bad habits. And she's asked us to help her get fit enough to have a healthy baby.

(BEGIN VIDEOTAPE)

GUPTA (voice over): Meet Thekla Fischer.

THEKLA FISCHER, "NEW YOU" PARTICIPATION: Hi, Todd. It's Thekla calling. I'm having some problems with summations.

GUPTA: Thekla Fischer may look like she has it all. She's a successful attorney.

T. FISCHER: I try to do my best at work, and that's probably the largest part of my life right now.

GUPTA: A newlywed, a New Yorker.

T. FISCHER: I'm a weekend warrior. I'll go on a Sunday to a yoga class and then go running afterwards and nothing during the week.

GUPTA: She even enjoys exercise.

T. FISCHER: After this, I have to go back to the office.

GUPTA: But she wants one more thing.

T. FISCHER: We've been married for just about six months, and we're really excited to have a baby fairly soon. I know we're moving a little fast maybe by some standards, but I'm 33, he's 35. So I think we're just ready.

GUPTA: Thekla's husband, Jason, is in the Army and has been to Iraq. He's back in the U.S. now, but they're apart four days a week while he's on post.

JASON FISCHER, THEKLA'S HUSBAND: So once we decided to get married, we didn't see any reason to kind of wait. So we've been practicing a lot.

T. FISCHER: People say that getting pregnant is a question of about five minutes.

GUPTA: So, why does Thekla need the "New You Revolution?"

T. FISCHER: And maybe there's some adjustments that can be made before you get pregnant, so that you're not dealing with a huge shock to your system to be really pregnant and change your eating habits and change your exercise routine and get your house and get your finances ready.

GUPTA: Thekla knows she has to make major choices and changes not to mention sacrifices.

T. FISCHER: There are tradeoffs. There are also things that I think are missing in my life now that maybe this would bring to it.

GUPTA: Maybe a little more meaning to an already charmed life.

(END VIDEOTAPE)

GUPTA: Well, I will tell you that, you know, you look great obviously. But some of these habits are something that a lot of us can relate to. How do you measure success, Thekla?

T. FISCHER: It's going to be difficult for me to measure my success in this "New You Revolution," because I don't have benchmarks the way that other people might with wanting to lose 50 pounds or something like that. But I think there are smaller goals that I want to achieve. Like, for instance, I'd like to be able to get into that handstand position in yoga without having to, you know, struggle. Like, I'd like to be able to just feel stronger in the yoga classes. And there are, like, 15 pounds or so that I think I do need to lose that I've put on in the last six months.

GUPTA: You think you need to lose 15 pounds?

T. FISCHER: Yes, I think so.

GUPTA: OK. You look pretty good, though. Listen, we talked to your doctors and your pregnancy experts. That was a big deal for you. And they developed this "New You" prescription.

(BEGIN VIDEOTAPE)

T. FISCHER: To be in peak physical shape would probably make it easier to bounce back.

GUPTA (voice over): Thekla, we've got the "New You Revolution" planned to get your life ready for a little bundle of joy and all that comes with it. T. FISCHER: I'll usually work a fairly long day.

GUPTA: We'll help you find time for regular exercise. We'll teach you which foods are good for your pregnancy. But one bad habit has definitely got to go.

T. FISCHER: I'll end up having a giant meal and then just falling asleep.

GUPTA: Experts will help you plan both emotionally and financially for the new baby.

UNIDENTIFIED MALE: It makes life easier when you plan ahead and really want the child.

(END VIDEOTAPE)

GUPTA: Thekla Fischer, thank you so much for joining us. Do you think you can do all of that?

T. FISCHER: I will.

GUPTA: You've got eight weeks. We'll be checking in on you.

T. FISCHER: Thank you.

GUPTA: Thanks for joining us here on the set.

T. FISCHER: Thank you.

GUPTA: Tomorrow we're going to meet our final participant, Jonathan Karp.

(BEGIN VIDEO CLIP)

JONATHAN KARP, "NEW YOU" PARTICIPANT: It's kind of, like, oh, I bite my nails, and then I'll be, like, yes, are they this bad? And they're like, ooh, no, you win.

(END VIDEO CLIP)

GUPTA: His goal to stop a habit many Americans have but few talk about: biting his nails. And, of course, you can follow all of our participants and do provide encouragement to them as well by logging on to CNN.com/am.

Bill, Soledad -- back to you.

O'BRIEN: All right, Sanjay, thanks a lot.

HEMMER: Back here in Washington, the main event is today, but the big inaugural parties started last night. A look at the sights and sounds throughout our nation's capital is ahead here on AMERICAN MORNING.

(COMMERCIAL BREAK) HEMMER: It was a beautiful evening last night here in Washington. The afternoon saw some snow, about two inches on the ground here in the nation's capital. That did not stop the show, though, lighting up the White House, the Washington Monument and the Jefferson Memorial last night here in Washington.

O'BRIEN: That was a nice sight to see.

HEMMER: Yes, it was.

O'BRIEN: I got a chance to see that. Let's check in with Jack now and the "Question of the Day."

Hey, Jack, good morning again.

JACK CAFFERTY, CNN ANCHOR: How are you doing? It looked like the Fourth of July party at my house last summer or similar

O'BRIEN: Yes.

CAFFERTY: President Bush has an ambitious agenda for his second term. He wants to overhaul Social Security, reform the Tax Code and immigration laws, impose limits on medical malpractice lawsuits, and cut the deficit. And then, of course, there's the war in Iraq. Elections there in 10 days.

In a "New York Times"/CBS News poll out today, 80 percent of Americans say it cannot all be done.

Here's the question: What should be the most important part of President Bush's agenda?

Jerry in Alpharetta, Georgia: "America desperately needs a leader that can restore our image in the international community. He must be able to bring other nations and former allies together to join in the fight against terrorism."

Stan in Baltimore writes: "With the war in Iraq rapidly turning into a Vietnam situation, bringing our boys home should be No. 1. It's hard to fight your enemy when you don't know who he is."

Chris in Illinois: "I think the president should focus on leveling the playing field for U.S. manufacturing. My suggestion would be to charge a fee for imported goods. The fee would be for port security and for insurance if a terrorist-related incident actually stemmed from those imported goods."

Jose in College Station, Texas: "End the war, get foreign relations on track, health care."

And Pamela in Michigan writes: "If Bush wants to gain the respect that all great leaders seek, he has to make the truth the most important part of his agenda. And then he has to do his job and work for the best interests of the American people, not corporations, not Wall Street, not Mexico's president, the American people."

Back to you guys.

O'BRIEN: All right, Jack, thanks very much.

Here's a question for you: Is there such a thing as a second term curse? We're going to take a look at the trials and tribulations of Mr. Bush's predecessors. That's ahead on AMERICAN MORNING. We leave you with this beautiful shot of sunrise in Washington, D.C.

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Aired January 20, 2005 - 07:29 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SOLEDAD O'BRIEN, CNN ANCHOR: Well, what a beautiful shot of all of the preparations this morning, and the sun hasn't even really risen yet. It is just about half past the hour on this AMERICAN MORNING. Welcome back, everybody.
And we are in Washington, D.C. for our special coverage of the inauguration here by the steps of the Capitol, where in about four and a half hours, George W. Bush is going to be sworn in for his second term as president. His inaugural address is said to focus on the theme of spreading freedom throughout the world. The speech is expected to last between 20 and 30 minutes. And it's meant to inspire, not really focus on policy initiatives.

BILL HEMMER, CNN ANCHOR: After that ceremony, a parade down Pennsylvania Avenue. About 100,000 are expected to line the route, and that is on the conservative estimate for today's crowd turnout here in Washington.

Mississippi Senator Trent Lott has been front and center for the planning of the festivities today and yesterday and the day before. He's been like the quarterback out here, executing a game plan that he hopes will work to perfection. Senator Lott is also chairman of the Joint Congressional Committee on inaugural ceremonies. He is my guest now here in our nation's capital.

Senator, good morning to you.

SEN. TRENT LOTT (R), MISSISSIPPI: Good morning, Bill.

HEMMER: You're pulling a William Henry Harrison, by the way. Where's your coat.

LOTT: Actually I just forgot it, and it's going to be quite nice.

HEMMER: Yes.

LOTT: It's balmy out here actually.

HEMMER: Balmy for a guy from Mississippi? In 1972, Richard Nixon put on the most expensive inauguration to date at a cost of $4 million. This is well over 40 million in 2005. How do you justify the expense?

LOTT: This is a special event. It's a seminal event in the history of our country. This is when we all come together regardless of party, philosophy, reason, you know, sex, whatever, and we celebrate our republican, our democracy. And it's appropriate that you do it in the right way.

A lot of emphasis this time, by the way, is on honoring our men and women in uniform. So, we want to do it in the right way. And I must admit, security has added to the cost a good bit. We're trying to make it secure, but also, you know, not so obtrusive that it just makes it impossible to be here.

HEMMER: You mentioned security. It's difficult to move in this town.

LOTT: It is. I just came here myself. It applies to all of us. But we want to make sure that people get in here safely. But at the same time that this is a wonderful event, a celebration, and I'm hoping it will be more like 200,000 instead of 100,000.

HEMMER: We have been talking about the parade route throughout the day here, too. And protesters will be out today.

LOTT: Sure.

HEMMER: There's a group referred to as J20. What is that? Are you aware of that? And if so, how many do you expect in that area?

LOTT: I haven't the foggiest idea. I don't focus on it at all. It's part of being America. You know, people can express themselves. If they are a radical group, you know, they'll be watched closely, but they'll be able to hold their signs. But, you know, I don't focus on that. I'm focusing on the people that are here -- Democrats, Republicans, Independents -- to honor this event and our president regardless of party.

HEMMER: Let's talk about a second term. On the list of priorities, there's an awful lot of talk in the last few days about Social Security reform in this town and how you sell that to the American people. Do you think that is the first priority for this president?

LOTT: I think it's a high priority. I don't think it's the first thing we want to do.

HEMMER: What is the first thing then?

LOTT: Well, there are a number of things that are sort of left over from last year that are important for our country that we can do in a bipartisan way...

HEMMER: Such as?

LOTT: ... while we engage the debate, such as a national energy policy, some infrastructure programs like highways, pension reform, which is important not only for the airlines, the steel industry, but for people that are counting on those pensions.

So, there are several things that we can work -- immigration reform is another issue that we're going to have to think about. We can do that. But we've got to do it in a way that's fair and acceptable to the American people.

HEMMER: You control the House. You control the Senate. Can this president reach out in a bipartisan way to get the things done that you're suggesting?

LOTT: He must. But when you reach your hand out, somebody has to accept it. It's got to be both ways. But a new administration, it is a new beginning. You can do things different. And I think you have to.

In a new term where you control the White House and the House and the Senate, you've got to realize you have a great opportunity, but you can't get caught up in hubris. You've got to think carefully about how you do things and when you do things. This president will do that, and our leaders are working on that.

HEMMER: Have you seen hubris in the past four years.

LOTT: In this city? Where are you talking about? Like, everywhere?

HEMMER: You live here.

LOTT: Look, I personally have experienced it. It's very easy when you've had a great victory. You're excited. You're enthusiastic. You kind of get carried away. And that's when I've learned over my 32 years in Congress that you need to calm down, take a look, be careful, be magnanimous every way you can. And I think we can do that. Look, I've been as tough a partisan as you'd ever want in this city, but I also am a believer that we're here to get things done. And I care more about it now than ever before, because I've got four grandchildren that are really special.

HEMMER: I'm out of time here.

LOTT: All right.

HEMMER: But at the podium at 12:00 noon today, what do you expect to hear from this president?

LOTT: The president will raise his hand and, you know, swear allegiance to the Constitution to protect and defend it. And then he will, I think, paint a grand vision of what we can do in America in our future. He'll talk about freedom and democracy and making this a better place to live and the world a safer place to live.

HEMMER: Thank you, Senator.

LOTT: OK, Bill. Soledad, great seeing you.

O'BRIEN: As always, Senator, thank you very much.

Well, the president has a packed Inauguration Day schedule beginning with a prayer service at 9:00 a.m. Eastern Time. The swearing-in ceremony begins at 10:00 a.m.. The president then takes the oath of office at high noon. At 2:00 p.m., the inaugural parade begins. Then at 7:00, it is party time.

Suzanne Malveaux at the White House for us this morning.

Hey, Suzanne, good morning.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Good morning, Soledad.

I guess the party has begun. It started last night, inauguration eve. President Bush saying he felt very much at home. He basically raced through three different formal dinners and attended the Texas black tie and boots ball. That is where he addressed the audience, giving us a hint of what he is going to say for his inaugural address later today, saying that his call was from beyond the stars to stand for freedom around the world.

Now, the president, of course, will be delivering that address just after noon today. He has been practicing in the family theater all week. It's about 17 minutes in length, the 21st draft, we're told. It's going to be emphasizing securing the homeland as well as achieving peace abroad.

And excerpts saying: "We are led by events of common sense to one conclusion: the survival of liberty in our land increasingly depends on the success of liberty in other lands. The best hope for peace in our world is the expansion of freedom in all the world."

Now, this morning I spoke with his chief of staff, Andy Card, asking him, was his morning any different from any other. He said not really. He woke up about 5:30 or so. He is concerned. However, he wants to make sure that all of his guests -- he says he has a packed house at the White House as well as across the street -- are well taken care of.

The first time we expect that we're going to hear -- or see the president, rather, is when he and the first lady motorcade right across the street to St. John's Episcopal Church. That is where they'll start off today with a prayer service -- Soledad.

O'BRIEN: Well, Suzanne, that's a little bit of a preview of what's he going to say. But what's actually going to be on his agenda, at the top of the agenda really, as he starts his second term?

MALVEAUX: Well, certainly just 10 days away is the Iraqi election. That is first and foremost critical a test of his credibility, if you will, to make sure that his policy in talking about spreading democracy is actually going to come to fruition.

Secondly, he is looking at the Middle East peace initiative. That is a nod really to his closest ally, British Prime Minister Tony Blair, as well as Arab leaders, who have been asking the president, pushing the president to become more engaged on that.

And then on the domestic side what we are seeing is really taking focus here, and that is the Social Security argument, revamping that. Interesting enough, however, Soledad, it is unclear whether or not even the Republicans, those in his own party, will actually support the kinds of measures that he's introduced -- Soledad.

O'BRIEN: Suzanne Malveaux at the White House for us this morning. Suzanne, thanks a lot. We'll continue, of course, to check in with you throughout the morning -- Bill.

HEMMER: We want to get back to Chad Myers again, watching the weather for us. It's the story here in Washington. We'll see how cold it is in the rest of the country as well.

(WEATHER REPORT)

HEMMER: What do average Americans want to see from President Bush in the next four years? Kelly Wallace has been checking that all week long here in our special series called "What's In It For Me?" This morning, we focus on Social Security. Kelly is also here in D.C. right over near the White House.

Good morning -- Kelly.

KELLY WALLACE, CNN NATIONAL CORRESPONDENT: Good morning to you, Bill.

You know President Bush is making Social Security reform the top domestic goal for his second term. There is great debate, though, over the extent of the problem and what should be done about it. And that was evident when we recently sat down with one family and asked: What is in it for them?

(BEGIN VIDEOTAPE)

WALLACE (voice over): Three generations of a New York City family who say they're not supporters of President Bush but do share some of his concerns about Social Security. Thirty-seven-year-old Dawn Reisch (ph) says she's not counting on getting anything.

(on camera): Does that bother you?

UNIDENTIFIED FEMALE: Yes, it bothers me a lot. They take a lot out of my paycheck for it.

WALLACE (voice over): Dawn's (ph) mother, 63-year-old Ilana Reisch (ph), a psychologist, says it's not herself she's worried about.

UNIDENTIFIED FEMALE: But I'm worried about it for future generations, because I know a lot of people -- I have a good profession. So, I've always put money aside for my old age. But there are many people who can't do that.

WALLACE: Ilana's (ph) mother and Dawn's (ph) grandmother, 89- year-old Mefa Rogoff, a retired occupational therapist, agrees.

MEFA ROGOFF, 89 YEARS OLD: I'm worried about it for my granddaughter, for my great grandson who's only a year old. No, it is a problem. It really is.

UNIDENTIFIED FEMALE: There aren't as many in my generation working as there are Baby Boomers that are retiring. So, mathematically, there can't be enough money unless it comes from someplace else.

WALLACE: And so, we asked them about the president's idea, allowing younger workers the option of investing some of their Social Security in the stock market. No way, says Mefa.

ROGOFF: Well, it's like teaching young people how to gamble.

UNIDENTIFIED FEMALE: And government-approved mutual funds that have a broad base doesn't seem like it would be a gamble. It seems like it would possibly provide the system with more money.

WALLACE (on camera): You both obviously disagree on this and...

UNIDENTIFIED FEMALE: We've been arguing all weekend.

WALLACE (voice over): Dawn (ph) sides with her grandmother on this one.

UNIDENTIFIED FEMALE: I don't enjoy the thought of investing my money.

WALLACE (on camera): Why?

UNIDENTIFIED FEMALE: It's too risky.

WALLACE: Too worried you're going to lose?

UNIDENTIFIED FEMALE: Right.

WALLACE (voice over): And sharp differences also on whether the president and lawmakers can agree on a solution.

UNIDENTIFIED FEMALE: I think the older generations that are in politics are not going to give it as much thought as maybe my generation that comes into politics.

UNIDENTIFIED FEMALE: Well, I think politicians are always looking to the younger vote and trying to get voters in your generation. And so, they would want to make a proposal that you would agree with so that you'd vote for whoever it was.

UNIDENTIFIED FEMALE: That's one thing, making the proposal. It's quite another to actually implement it and get it moving.

(END VIDEOTAPE)

WALLACE: Now, this family tells us they never even really talked about Social Security until they prepared for our piece. They say they will be watching what happens in Washington and, Bill, likely debating amongst themselves every step of the way. HEMMER: If they were laying down odds in this town about the president getting this done in the next four years, Kelly, what would those odds look like today?

WALLACE: I think it might even be under 50/50, because Democrats are already expressing a great deal of opposition to the president's proposal to allow people to invest some of their Social Security in the stock market.

But the bigger issue here, the president is getting some opposition from members of his own party. You had the House Ways and Means Committee Chairman Bill Thomas saying the other day that the president's proposal could become a -- quote -- "dead horse" in the next few weeks. And so, it might be time to broaden the argument. So, big, big challenges ahead -- Bill.

HEMMER: All right, Kelly, thanks. A good series. Part four today. Part five tomorrow. "What's In It for Me" will focus on immigration issues on Friday morning. Thank you, Kelly.

Here's Soledad again.

O'BRIEN: Well, obviously it's a very complex issue. Andy Serwer now with more Social Security 101. He's "Minding Your Business" from New York.

Andy, good morning. Break it down for us.

ANDY SERWER, "FORTUNE" MAGAZINE: Good morning to you, Soledad.

Well, the Social Security system was created during the administration of Franklin Delano Roosevelt. And the first recipient was a woman named Ida May Fuller (ph), a legal secretary in Vermont, who first received her benefits in 1940.

Most people know, of course, that you contribute about 6.2 percent of your salary to Social Security, which is matched by your employer at 6.2 percent, up to $90,000. About 50 million Americans now receive Social Security benefits.

Let's break it down for you. You can see 33 million retirees and the survivors of disabled workers. The average payout is about $11,000, maximum is $23,000. And the eligibility now is at 66 years of age and will go up to 67 in 2022.

As far as the controversy over Social Security, Soledad, what is that all about? Well, it has to do with the fact that we currently have a surplus in the system that is anticipated to go to a deficit.

Let's break that down for you. You can see here a lot more money jingling around in the system than we have to pay out, 1.5 trillion. Of course, these are very rough projections. And you can see by 2052 we go to a deficit.

Why is that the case? Well, it has to do with the fact, obviously, that Baby Boomers are going to be retiring, life expectancy has increased and there's a lower birth rate.

As far as what to do, the choices will be unpopular. Obviously raising taxes or cutting benefits. And those choices are stark and something that the president will have to deal with and won't be very popular choices -- Soledad.

O'BRIEN: No question about that. Of course, he said it's at the top of his agenda. We will see exactly what happens at the end of the next four years. Andy Serwer in New York. Andy, thanks.

Now it's time to get another check on the headlines with Heidi Collins, also back in New York.

Hey, Heidi, good morning again.

HEIDI COLLINS, CNN ANCHOR: Good morning, Soledad. And good morning to you once again, everybody.

"Now in the News."

Word of a possible delay in the confirmation of Secretary of State nominee Condoleezza Rice. Republicans had hoped to confirm Rice this afternoon after President Bush's inauguration ceremony, but some Democrats are expected to try to prolong the debate until next week. The Senate Foreign Relations Committee approved Rice's nomination yesterday in a 16-2 vote.

A "CNN Security Watch." Now officials are looking for four Chinese nationals wanted for questioning in a possible terror threat in the Boston area. Officials telling CNN an anonymous caller reported the group is either carrying or planning to receive dangerous materials. The Chinese nationals were apparently smuggled in alongside two Iraqis from Mexico. That information has not been verified.

Stay tuned to CNN, though, day and night for the most reliable news about your security.

To health news now. Cancer is now the No. 1 killer of Americans under the age of 85, surpassing heart disease for the first time. The American Cancer Society says survival rates for both diseases are going up, but the survival rate for heart disease is rising faster, creating the change in positions.

And a surprise snowfall in North Carolina. Yes, that's North Carolina. What was supposed to be just a dusting turned into an inch or more in some areas. Roads were pretty icy, causing commuters to move at a snail's pace. Warmer weather, though, is expected today. So good for that.

Back now to Bill and Soledad in Washington.

O'BRIEN: All right, Heidi, thank you very much.

Well, she looks like she has it all, a great home, a great job, a loving husband. So, we're going to meet a woman who is taking part in our "New You Revolution." Why? That's ahead.

HEMMER: Also don't forget, all day long CNN has live special coverage of the inauguration today. We're in D.C. as our special coverage continues as well. Back here in a moment on Capitol Hill on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: It's day four of our weeklong introduction of those who have taken on the "New You Revolution," a new challenge for them certainly.

O'BRIEN: Here's our next participant. On the surface, some might think she looks actually picture-perfect. Our Dr. Sanjay Gupta in our New York studio to introduce us to Thekla Fischer.

Hey -- Sanjay.

SANJAY GUPTA, CNN MEDICAL CORRESPONDENT: Hey, good morning.

And she is here. And I can tell you, she does look perfect. But that's part of the point actually with Thekla Fischer. Even healthy looking people can have some bad habits. And she's asked us to help her get fit enough to have a healthy baby.

(BEGIN VIDEOTAPE)

GUPTA (voice over): Meet Thekla Fischer.

THEKLA FISCHER, "NEW YOU" PARTICIPATION: Hi, Todd. It's Thekla calling. I'm having some problems with summations.

GUPTA: Thekla Fischer may look like she has it all. She's a successful attorney.

T. FISCHER: I try to do my best at work, and that's probably the largest part of my life right now.

GUPTA: A newlywed, a New Yorker.

T. FISCHER: I'm a weekend warrior. I'll go on a Sunday to a yoga class and then go running afterwards and nothing during the week.

GUPTA: She even enjoys exercise.

T. FISCHER: After this, I have to go back to the office.

GUPTA: But she wants one more thing.

T. FISCHER: We've been married for just about six months, and we're really excited to have a baby fairly soon. I know we're moving a little fast maybe by some standards, but I'm 33, he's 35. So I think we're just ready.

GUPTA: Thekla's husband, Jason, is in the Army and has been to Iraq. He's back in the U.S. now, but they're apart four days a week while he's on post.

JASON FISCHER, THEKLA'S HUSBAND: So once we decided to get married, we didn't see any reason to kind of wait. So we've been practicing a lot.

T. FISCHER: People say that getting pregnant is a question of about five minutes.

GUPTA: So, why does Thekla need the "New You Revolution?"

T. FISCHER: And maybe there's some adjustments that can be made before you get pregnant, so that you're not dealing with a huge shock to your system to be really pregnant and change your eating habits and change your exercise routine and get your house and get your finances ready.

GUPTA: Thekla knows she has to make major choices and changes not to mention sacrifices.

T. FISCHER: There are tradeoffs. There are also things that I think are missing in my life now that maybe this would bring to it.

GUPTA: Maybe a little more meaning to an already charmed life.

(END VIDEOTAPE)

GUPTA: Well, I will tell you that, you know, you look great obviously. But some of these habits are something that a lot of us can relate to. How do you measure success, Thekla?

T. FISCHER: It's going to be difficult for me to measure my success in this "New You Revolution," because I don't have benchmarks the way that other people might with wanting to lose 50 pounds or something like that. But I think there are smaller goals that I want to achieve. Like, for instance, I'd like to be able to get into that handstand position in yoga without having to, you know, struggle. Like, I'd like to be able to just feel stronger in the yoga classes. And there are, like, 15 pounds or so that I think I do need to lose that I've put on in the last six months.

GUPTA: You think you need to lose 15 pounds?

T. FISCHER: Yes, I think so.

GUPTA: OK. You look pretty good, though. Listen, we talked to your doctors and your pregnancy experts. That was a big deal for you. And they developed this "New You" prescription.

(BEGIN VIDEOTAPE)

T. FISCHER: To be in peak physical shape would probably make it easier to bounce back.

GUPTA (voice over): Thekla, we've got the "New You Revolution" planned to get your life ready for a little bundle of joy and all that comes with it. T. FISCHER: I'll usually work a fairly long day.

GUPTA: We'll help you find time for regular exercise. We'll teach you which foods are good for your pregnancy. But one bad habit has definitely got to go.

T. FISCHER: I'll end up having a giant meal and then just falling asleep.

GUPTA: Experts will help you plan both emotionally and financially for the new baby.

UNIDENTIFIED MALE: It makes life easier when you plan ahead and really want the child.

(END VIDEOTAPE)

GUPTA: Thekla Fischer, thank you so much for joining us. Do you think you can do all of that?

T. FISCHER: I will.

GUPTA: You've got eight weeks. We'll be checking in on you.

T. FISCHER: Thank you.

GUPTA: Thanks for joining us here on the set.

T. FISCHER: Thank you.

GUPTA: Tomorrow we're going to meet our final participant, Jonathan Karp.

(BEGIN VIDEO CLIP)

JONATHAN KARP, "NEW YOU" PARTICIPANT: It's kind of, like, oh, I bite my nails, and then I'll be, like, yes, are they this bad? And they're like, ooh, no, you win.

(END VIDEO CLIP)

GUPTA: His goal to stop a habit many Americans have but few talk about: biting his nails. And, of course, you can follow all of our participants and do provide encouragement to them as well by logging on to CNN.com/am.

Bill, Soledad -- back to you.

O'BRIEN: All right, Sanjay, thanks a lot.

HEMMER: Back here in Washington, the main event is today, but the big inaugural parties started last night. A look at the sights and sounds throughout our nation's capital is ahead here on AMERICAN MORNING.

(COMMERCIAL BREAK) HEMMER: It was a beautiful evening last night here in Washington. The afternoon saw some snow, about two inches on the ground here in the nation's capital. That did not stop the show, though, lighting up the White House, the Washington Monument and the Jefferson Memorial last night here in Washington.

O'BRIEN: That was a nice sight to see.

HEMMER: Yes, it was.

O'BRIEN: I got a chance to see that. Let's check in with Jack now and the "Question of the Day."

Hey, Jack, good morning again.

JACK CAFFERTY, CNN ANCHOR: How are you doing? It looked like the Fourth of July party at my house last summer or similar

O'BRIEN: Yes.

CAFFERTY: President Bush has an ambitious agenda for his second term. He wants to overhaul Social Security, reform the Tax Code and immigration laws, impose limits on medical malpractice lawsuits, and cut the deficit. And then, of course, there's the war in Iraq. Elections there in 10 days.

In a "New York Times"/CBS News poll out today, 80 percent of Americans say it cannot all be done.

Here's the question: What should be the most important part of President Bush's agenda?

Jerry in Alpharetta, Georgia: "America desperately needs a leader that can restore our image in the international community. He must be able to bring other nations and former allies together to join in the fight against terrorism."

Stan in Baltimore writes: "With the war in Iraq rapidly turning into a Vietnam situation, bringing our boys home should be No. 1. It's hard to fight your enemy when you don't know who he is."

Chris in Illinois: "I think the president should focus on leveling the playing field for U.S. manufacturing. My suggestion would be to charge a fee for imported goods. The fee would be for port security and for insurance if a terrorist-related incident actually stemmed from those imported goods."

Jose in College Station, Texas: "End the war, get foreign relations on track, health care."

And Pamela in Michigan writes: "If Bush wants to gain the respect that all great leaders seek, he has to make the truth the most important part of his agenda. And then he has to do his job and work for the best interests of the American people, not corporations, not Wall Street, not Mexico's president, the American people."

Back to you guys.

O'BRIEN: All right, Jack, thanks very much.

Here's a question for you: Is there such a thing as a second term curse? We're going to take a look at the trials and tribulations of Mr. Bush's predecessors. That's ahead on AMERICAN MORNING. We leave you with this beautiful shot of sunrise in Washington, D.C.

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