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American Morning
Record 46.3 Million Americans in Poverty; Perry Under Attack; UAW, Ford Extend Contract Talks; President's Approval Ratings Sinking; Solar Energy Company Backed by Government Loans Bankrupt; Education Expert Discusses Future of American Schools; Iconic J. Crew Brand Hot Again
Aired September 14, 2011 - 08:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: New trouble for President Obama. I'm Carol Costello. Amid a struggling economy, his disapproval rating hits its highest level since he took office.
CHRISTINE ROMANS, CNN ANCHOR: Now, more middle class slipping into the ranks of the poor in this country. I'm Christine Romans. There are new numbers out on poverty in the United States. More people than ever struggling and losing hope on this AMERICAN MORNING.
COSTELLO: Good morning to you. It is Wednesday. Only two more days until Friday.
(LAUGHTER)
September 14 is the date. Ali Velshi has the day off.
ROMANS: Do you start counting down to Friday on Monday?
COSTELLO: I do.
ROMANS: That's what I love about you.
(LAUGHTER)
That's what I love.
COSTELLO: My favorite day of the week, Friday.
ROMANS: First, fears of Europe debt crisis resurfacing this morning and is putting Wall Street on edge right now. U.S. stock futures are up slightly, but investors are bracing for what could be another volatile day. Part of the reason: Moody's cut the credit rating for two of France's largest banks. It's all because of their exposure to Greek's economy and Greece's debt crisis.
COSTELLO: And here in the United States, it's all about jobs. Today, President Obama heads to the key state of North Carolina to campaign for his jobs bill. The president was in Ohio yesterday and he, again, demanded Congress, quote, "pass this bill right away."
Republicans had said they would consider the plan, that is until they learned how the president planned to pay for it: tax hikes. Speaking yesterday in Ohio, President Obama accused Republicans of punishing the unemployed to keep his poll numbers down.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: They supported this stuff in the past, but, they're thinking maybe they don't do it this time because Obama's promoting it. Give me a win? This isn't about giving me a win. This isn't about giving Republicans or Democrats a win. It's is about giving the American people a win.
(END VIDEO CLIP)
ROMANS: The president's job performance numbers have taken a hit. Just take a look at this new CNN/ORC poll. Fifty-five percent of Americans say they don't think the president is doing a very good job.
COSTELLO: And there are new numbers out of the number of people falling into poverty in America and those numbers are staggering. The poverty level was up, again, for the fourth year in a row in 2010. There are more poor people right now in America than at any time since the Census Bureau started keeping count. And that was 52 years ago.
ROMANS: The government defines a poverty line of an income of just over $22,000 a year for a family of four and just over $11,000 for an individual.
Poppy Harlow visited one of those families struggling to get by last year. She went back to see how they're doing today.
Good morning, Poppy.
POPPY HARLOW, CNNMONEY.COM: Good morning.
We did. We visited a woman named Ann Valdez. You'll see her story in a minute.
But when you look at the numbers -- as the population increases, so do those living under the poverty line. It's 46.2 million Americans now. The increase is really troubling. It's 2.6 million person increase from just a year ago.
These are 2010 numbers. It gives us about a 15 percent poverty rate in this country. And the issue for children is a lot worse, 22 percent of American children now live below the poverty line.
Take a look at Ann Valdez and her son, Brian.
(BEGIN VIDEOTAPE)
ANN VALDEZ, LIVING IN POVERTY: I'm outside. Meet the people in your community where you live. Meet the people in the communities where you work and meet the people in the communities where you represent.
HARLOW: See the face of poverty.
VALDEZ: See the face of poverty.
HARLOW: We met Ann Valdez a year ago living under the poverty line like millions of other Americans. So, we decided to come back a year later and see how Ann is doing.
VALDEZ: My grandparents were one of the first tenants to live here in 1954.
HARLOW: Has the situation gotten better for you?
VALDEZ: No, it hasn't changed very much. Right now, I'm living on approximately $200 cash a month, $360 food stamps. I do not have a full-time job on a daily basis since about 2004.
HARLOW: How important are the safety nets out there for you right now? The things that are paid for by the government?
VALDEZ: Well, the safety nets are very important. And the more that they get cut, the scarier it is to think about tomorrow.
I buy a lot of non-perishables so this way there's always something to eat. Most of the jobs they try to get for us are minimum wage jobs. So, if I get a minimum wage job, it's going to leave me to have to apply for Medicaid and food stamps. So, I'm still dependent on the system.
Sometimes, you have to forget about getting what's healthy because you can't afford what's healthy, two for five.
HARLOW: Brian, your mom grew up in poverty and you've grown up so far in the same situation. What are your aspirations? What do you want to become?
BRIAN ROSA, ANN'S 12-YEAR-OLD CHILD: I want for high people in the high chairs like senator, the congressman, even the mayor to come down here, see what's going on in these neighborhood and see how destroyed these neighborhoods are. The spirits of these people, they are completely gone.
VALDEZ: All right. So, what would you like to aspire to?
HARLOW: What are your dreams?
ROSA: Right now, I have none.
HARLOW: You were telling me before, Brian, firefighter.
ROSA: Yes. That's what it is. That's what I want to be, a firefighter.
(END VIDEOTAPE)
HARLOW: So, that's just one of the stories of these 46-plus million Americans that are facing poverty right now. There's a lot of opinions on this, obviously. Carol is going to get to that in her talk back. But, guys, the research shows, at least their projection is this is going to get worse. In the next decade, they think the percent is going to go up to 16 percent in poverty. It's going to mean 6 million more American kids living in poverty and what stood out to me was that more than 31 percent of single mothers, just like Ann, fathers not around, are living in poverty in this country.
ROMANS: Joblessness is the number one cause for falling into poverty. We know that without extended jobless benefits, these numbers probably would have been higher.
She is completely -- her family is completely supported by the taxpayers at this point. When was the last time she had a job?
HARLOW: 2004 was the last time she had a full-time job. She works at the pool, sometimes, she has part-time work here and there. So, it's been seven years for her. And the only time she was off food stamps in her entire life was for one year when she was working for the government making enough money.
And this is that issue of chronic poverty. You were talking earlier about the American way of digging your way out of poverty. Her grandparents lived in the public housing, her mother raised Ann there and Ann is raising her kids there. That's the big issue. And now, her son Brian is 12 and you saw how he felt. It's just going to be his reality -- hopefully not.
She's working. She's very involved in the community to try to have that not be the case, but there's also this sort of lack of hope.
ROMANS: She's not a victim of the Great Recession. She was in trouble way before then, and that just shows you how you have the people who are victims of the Great Recession joining the ranks of people like Ann who just had real trouble getting on her feet.
HARLOW: You also may not think, when we met Ann on the street last year, we spoke with her outside. You know, you can't say someone in is poverty because they look like it. She has an apartment. She has somewhere to live. But she is still living day-to-day.
COSTELLO: Well, and some people say that means she's not destitute, so how much can the government continue to support her when she's clearly walking around. And, you know, these are tough questions that we have to answer in America.
HARLOW: Especially with our economy and budget situation, you have to make tough choices.
COSTELLO: That's right.
And now is your chance to talk back on that big story of the day. The question for you this morning, what is our government's responsibility to those in need? Some depressing numbers for you, again. America's poverty rate jumped to 15.1 percent. You heard Poppy say it, that's over 46 million people.
What defines poverty? If a couple has two kids and a household income of $22,314. They're poor.
Ann Valdez is one of the poor in America. She's a single mother and she gets by thanks to food stamps and Medicaid.
(BEGIN VIDEO CLIP)
VALDEZ: We are in poverty. We have educations. We have abilities.
We have aspirations. We have families. We have the same thing that apple pie America has.
(END VIDEO CLIP)
COSTELLO: Maybe you sympathize with Ms. Valdez. Maybe that's the best you can do in these tough economic times. Personal responsibility is hot these days, right? Government aid is certainly not.
You certainly heard that in the Tea Party debate when Wolf Blitzer asked what should happen to a hypothetical 30-year-old man who had been injured in a car accident and had no insurance.
(BEGIN VIDEO CLIP)
REP. RON PAUL (R-TX), PRESIDENTIAL CANDIDATE: That's what freedom is all about, taking your own risks. This whole idea that you have to prepare and take care of everybody --
WOLF BLITZER, CNN ANCHOR: But, Congressman, are you saying that society should just let him die?
PAUL: No.
AUDIENCE: Yes.
(END VIDEO CLIP)
COSTELLO: You heard the cheers there. There are some in America who ask, why should we, the taxpayers, help those who don't take responsibility for their own lives? Why should the government dish out long long-term unemployment benefits or food stamps or welfare?
So, our talk back question is a tough one this morning: What is our government's responsibility for those in need? Facebook.com/AmericanMorning. Facebook.com/AmericanMorning. I'll read some of your comments later this hour.
ROMANS: I just got an email from a viewer saying, you know, disappointed that we chose to highlight Ann because he said, I had a bunch of (INAUDIBLE). I'm working my tail off, you know, why is that fair? So, you can see that it really --
COSTELLO: To get supported.
ROMANS: To get supported. And, you know, when people are arguing about his unemployment benefits, you know, which is not the same as, you know, generations -- it's a very tough situation and we -- America has lived beyond its means for a long time.
HARLOW: And do unemployment benefits discourage people from looking for work, right? If they're going to make just as much working, the question: why work?
ROMANS: Well, the White House wanted to change for unemployment benefits now that you can try to start your own business while on benefits, or you can try to get something because that has discouraged some people. You lose your check if you go out and get a quick part- time job or something. So, all very, very tough questions, right?
COSTELLO: We'll see what you have to say.
Still ahead this morning, can you add immigration to the growing list of issues dividing the Republican frontrunner Rick Perry from his GOP rivals? Will his political stock plunge or does that just set him apart?
ROMANS: And Rick Perry is not the only one feeling the heat in Texas. Several cities have had several days of 100 degree temperatures. So, is today finally the end of all of this?
COSTELLO: I hope so for their sake.
And a smoky haze from a huge Minnesota forest fire now spreading to Chicago and Wisconsin.
It's 10 minutes past the hour.
(COMMERCIAL BREAK)
COSTELLO: It's cloudy and 82 with thunderstorms. They are expecting a temperature of 102 degrees a little later today. Oh, terrible heat wave there.
ROMANS: Jacqui Jeras, when is this ever going to end?
JACQUI JERAS, AMS METEOROLOGIST: It feels like never, doesn't it? I can't believe you put that song in my head this morning, by the way, either.
ROMANS: We'll have it for the rest of the day, I promise.
JERAS: Stop saying it.
All right. You know, a lot of records still going on in Texas. I'm here, can you hear me?
COSTELLO: There you are.
JERAS: They're yelling at me, like we can't see you. I'm here. Hello, hello. Lots of records in Texas, once again, yesterday -- 107 is what they had in Dallas. And also, that was the 70th day this summer that you hit 100. So, that broke the record. Today, we're going to be 102 like you mentioned. So, we'll add another day to that.
But it is going to get better. We're talking 80s by tomorrow. So, hang in there.
We also had a record in Houston, 102 yesterday and that's the latest you've seen temperatures that warm and even in Joplin, Missouri, you hit 100 degrees yesterday.
Now, it's still hot to the South, but much cooler to the North. We have this huge cold front that's moving in across the nation's midsection. Only 59 in Minneapolis today, 67 in Chicago and 68 degrees in parts of Kansas City. Now, we are going to see temperatures so cold tonight that frost and freeze advisories and warnings have been posted across the Upper Midwest.
And we're watching conditions especially into the arrowhead of Minnesota as a wild fire has been burning there. Take a look at this picture. This is from outside of the Eli area. This is in the Superior National Forest. If you heard the boundary waters Canoe Area, that's where this thing is. Massive jump on this fire yesterday. It advanced like 16 miles. They say that was an unprecedented jump that they've never seen anything like this in Minnesota fire history.
This started about two weeks ago from a lightning strike, but it just really took off recently because of those cold fronts that I mentioned. That's pretty into the strong wind. It's a very densely forested area so it makes it really hard to fight. Now, the smoke pool from this thing is so impressive. You can really see it from space. This is a shot from a satellite from NASA, and you can see that right of to the side.
That's the heat signature, and that all of this is smoking in addition to clouds that develop because of that smoke and that hot air rising into the atmosphere. So, just incredible pictures there. The big story then for today showing that cold front moving to the south. We will see some showers in the nation's midsection. Other than, kind of quiet on that coast of the country. Little foggy in Philly, by the way, guys. We've got a ground stop in effect there, too, if you're traveling.
CAROL COSTELLO, CNN ANCHOR: Yes, call ahead. Thanks, Jacqui.
Now on to politics. Republican frontrunner, Rick Perry, travels to Boston today campaigning on Mitt Romney's home turf. Perry's frontrunner status comes with a big bull's eye, and GOP rivals have been attacking the Texas governor on a number of his positions, including illegal immigration. Joining us now from San Diego, Ruben Navarrette who's a columnist for CNN.com. Good morning.
RUBEN NAVARRETTE, CNN.COM: Good morning, Carol. Good to be with you. COSTELLO: Thanks for being with us. So, Rick Perry is taking a lot of heat from conservatives on his immigration policy, specifically because Texas allows illegal immigrants to pay in-state tuition at public colleges and because he said it was ridiculous to build a wall along the border. These -- these things differ from the usual Tea Party line. Will this hurt him?
NAVARRETTE: Well, it seems to have hurt him pretty significantly at the debate. The people in the audience, by the way, who are some of the same folks who were yelling out that a person who needed medical care was in a coma should die tells you something about the crowd in the audience. They also booed Rick Perry for his comments about defending in-state tuition for the children of illegal immigrants and illegal immigrants themselves.
And really, let's think about what this is. This says that is somebody lives in Dallas or Houston or Austin, and they have been there for 18 years all their life, and they've been paying taxes and illegal immigrants do pay taxes, we shouldn't just close our eyes and pretend they live in Nebraska or Iowa all those years.
They should really get the same benefit as anybody else living in Texas. And that is really not so radical except in that room against the Tea Party folks did find it radical, but I think it's very much in the sort of the sensible center of the immigration debate right where Rick Perry is and right where he needs to be.
COSTELLO: Well, it's interesting you say that. You said -- you were saying before that Rick Perry should just embrace his stance and go with it.
NAVARRETTE: Well, yes. And he did at the debate. Boy, I have not -- I've covered politics for 20 years, Carol. I've not often seen somebody who stands up in a debate and gets booed repeatedly and then doubles down. He didn't back down. He didn't apologize. He didn't (INAUDIBLE). He didn't pull a Mitt Romney and turn himself inside out to please these folks.
He just says, take me as I am or don't take me at all. This is who I am. I do it again. And they hated him, and they booed him again and they doubled down again. It was amazing thing to see. That guy has got guts. Given that, he's got courage and character, and it came through in this debate.
COSTELLO: Wow! Also at the debate, I just wanted to mention this. Perry said the sound of your last name shouldn't matter in Texas.
NAVARRETTE: Yes.
COSTELLO: It's whether you want to pursue citizenship and not be a drag on the state. But, listen to what Newt Gingrich, who's also running for president for the Republican presidential nomination, said to Wolf Blitzer yesterday.
(BEGIN VIDEO CLIP) NEWT GINGRICH, (R) PRESIDENTIAL CANDIDATE: It's not about somebody's last name. That's baloney. That particular line, I thought, was slightly goofy. The question is whether you are legal or not legal. Your last name can be smith or, in my case, Gingrich. And if you're not legal, you're over here, if you're legal, you're over here. It's not about your last name. It's about the status of legality in the United States.
(END VIDEO CLIP)
COSTELLO: You know, in listening to him, it's something you might expect him to say, but I guess, the bigger question is, will Republican voters really care deeply about the immigration issue at this time?
NAVARRETTE: I think so. And I would say this, Newt Gingrich, I've known Newt. I've spoken to him about immigration. The comment he just made was goofy. That was a goofy comment by Newt Gingrich. He knows better than that or he should. You know, maybe he lives in Washington. He doesn't really understand the immigration issue. Just like Mitt Romney and Michele Bachmann and Rick Santorum and other critics of the governor who don't understand the immigration issue.
But Perry lives in the real world in Texas and what he knows is that this issue has always been wrapped up in race and racism. It has -- ever since Benjamin Franklin railed against the German immigrants in the late 1700s and all the way through our history, we've never had a race neutral conversation about immigration ever.
Rick Perry knows that. When he made that reference to last name, a lot of conservatives got hurt. They got their feelings hurt, and they seized on that, but the truth hurts and that's what he said and that's what he meant, and he's right about it.
COSTELLO: You know, it struck me, because I remember, he said the American way is to allow these immigrants, if they're living in Texas for three years, to have an education. Michele Bachmann said, no, that's not the American way. If you're in this country illegally, you are breaking the law, and we shouldn't reward people for breaking the law in this country.
NAVARRETTE: Right. Michele Bachmann lives in a dream world. She needs to go back to Minnesota where she'll find people at hotels and restaurants in Minneapolis and St. Paul who hire illegal immigrants, and they turn a blind eye to the fact that they hire illegal immigrants. When Michele Bachmann starts talking tough about the employers in Minnesota who hire illegal immigrants and she goes after them, the same people who are (ph) contributing to her campaign, then I'll pay attention to her.
Until then, she's just another Republican hypocrite who goes after people who can't vote, and she leaves those employers alone.
COSTELLO: Wooh! OK. I can see you feel passionately about this, and we appreciate your passion this morning. Ruben Navarrette, many thanks to you. NAVARRETTE: Thank you.
COSTELLO: And you can read Ruben's columns, by the way, every Thursday on CNN.com/ under the opinion section.
CHRISTINE ROMANS, CNN ANCHOR: All right. A check of the morning markets next.
Plus, new rankings of the top schools in the country, and there's a tie this year for number one. Harvard, Princeton or Yale? Twenty minutes after the hour.
(COMMERCIAL BREAK)
ROMANS: Welcome back. It's 24 minutes after the hour. "Minding Your Business" this morning.
Right now, futures for the Dow, NASDAQ and S&P 500 are all trading higher ahead of the opening bell, but Wall Street is still considerably nervous about fears that Europe's debt problem will worsen. That's worrying investors on both sides of the Atlantic.
The latest report from the census says the middle class is struggling in this country. The great recession hurting everybody. The median household income is down for the third year in a row. Household income in this country now where it was in 1996 when adjusted for inflation.
Ford and the United Auto Workers Union have reportedly extended contract talks indefinitely. This according to the "Detroit Free Press" this morning, but the UAW continues labor talks to GM and Chrysler today. Midnight is the deadline before the current contract runs out with those two companies.
Talk about a hot line. Target.com crashing after Italian fashion house, Missoni, launched its new clothing and home goods line on the Target website yesterday. The site was completely shut down just an hour after the items were up. Service is back up now, but target is warning that some customers may still experience delays due to very high traffic.
And Google announced a new flight searching tool yesterday, a move that was expected. The company bought ITA software last year which makes similar products like for competing sites like Kayak and Orbitz.
And Princeton and Harvard tied this year for the top spot on U.S News & World Report's best colleges list. Yale took third, Columbia fourth, and an unusual five-way tie for fifth place this year between Cal Tech, MIT, Stanford, University of Chicago and UPenn.
Up next, how to get your kids the education they deserve even if it means picking a fight. AMERICAN MORNING is back right after this break.
(COMMERCIAL BREAK)
COSTELLO: Just about half past the hour. Welcome back to AMERICAN MORNING.
Developing right now, we were told they were getting out of jail, but this morning, we're hearing a far different story. An Iranian judiciary official now says there is no decision on whether two American hikers, Shane Bauer and Josh Fattal will be let go.
Iran's president just saying yesterday in an NBC News interview, they could be released in a couple of days. The hikers' attorney also said they'd be free as soon as each paid half a million dollars bail, but things remain in the air this morning.
ROMANS: The Taliban's attack on the U.S. embassy in Afghanistan, it is over this morning. Earlier today, security forces killed the six militants who stormed that nearby building and launched a high-profile attack on the embassy. Officials say no one inside the embassy was injured.
COSTELLO: Today President Obama heads to North Carolina to build support for his job's plan. First, he'll be speaking at a manufacturing plant in Apex and then travel to North Carolina State University to talk about his job's proposal.
ROMANS: You know, the president's sales pitch comes as his disapproval rating hits a new high -- 55 percent do not approve of the president's jobs performance.
COSTELLO: Add to that a sobering setback for Democrats. Bob Turner winning the race to fill Anthony Weiner's vacant Congressional seat in his special election in New York last night. It is the first time in nearly a century that a Republican has captured the traditionally Democratic ninth New York district, and Turner did it with an anti- Obama campaign.
(BEGIN VIDEO CLIP)
BOB TURNER, (R) NEW YORK REPRESENTATIVE ELECT: I've been asked by the people of this district to send the message to Washington and I hope they hear it loud and clear. We have been told this is a referendum. And we're ready to say, Mr. President, we are on the wrong track.
(APPLAUSE)
(END VIDEO CLIP)
COSTELLO: All right, back to the story of the impact the great recession has had on all income levels in this country. More people than any time in American history are being fed by the government. One in five children lives in poverty. The middle class is pummeled. Income for middle class earners is not back to 1996 levels, just over $49,000 a year.
These numbers are political fodder in our morning opinion. Liberals like Bernie Sanders says it's government that prevents poverty from becoming a death sentence, quote, "There are some in Congress who wish to decimate the existing safety net which provides a modicum of security for the elderly, the sick, the children, and lower income people. To the degree that they are successful, there is no question in my mind that many more thousands of men, women, and children will die."
But in today's "Wall Street Journal" one editorial finds, quote, "The official rate significantly overstates poverty by missing the government income transfers," and continues, quote, "The lesson we draw is that politicians who support policies that make economic growth their top priority raise everybody's incomes even if some incomes rise more rapidly than others. Politicians who put income distribution above overall economic growth do worse by everybody, especially the poor."
The question with all that the governor is doing to expand the safety net, are we making smart investments? In "Politico" Reince Priebus, the chairman of the RNC, takes on stimulus spending, pointing to the solar energy company Solyndra as proof the stimulus is a bust. The company which laid off 1,100 workers after its sudden demise once looked like the poster child of stimulus success.
He goes on, "When politics, business, and government mix in this way, no one wins. The sooner America learns this, the sooner we can find real answers to our economic woes. Until then, the president's solutions will very likely create only more problems."
Of course, Solyndra, the California company that took loans, and money from the stimulus effort and then went out of business. Chinese competition, three different companies like Solyndra have gone out of business because of competition from China. So the stimulus there did not help.
ROMANS: There you go.
As we mentioned, today President Obama will speak more about that jobs plan in North Carolina State University. Now, education a big part of the president's job plan. He wants to improve schools and prevent teachers from being laid off. If you're a parent, what can you do to make sure your children get the education they deserve?
Joining me now is CNN Education Contributor Steve Perry, who is also the author of "Push has come to Shove." Good morning, Steve. This morning we're all dissecting what the government should be doing and what it shouldn't be doing and how many people are poor and how the middle class are losing opportunity. And at the bottom of it all is this ability to get a quality education to give you the skills so you can compete no matter what. And it's something the American education system has been having trouble with.
STEVE PERRY, CNN EDUCATION CONTRIBUTOR: It's been having trouble with it for a long time. The reason I wrote the book "Push has come to shove -- Getting our Kids the Education they deserve even if it means picking a fight" is because I have seen the focus on the adults. Our singular focus has been, even the president saying that he wants to improve education by making sure that teachers are not laid off.
I don't know if there's a one-to-one relationship on that. If you want to improve the quality of education, which means you have to make sure that the best teachers are hired and the best teachers are maintained in the system and that we stop placing the blame on the parents and poverty and all these other things, because the countries that are whooping our behind right now were poor and haven't become wealthy just yet, but they are academically outperforming us.
We can look at China as the best example. Their investments in infrastructure are not stimulus package, per se, but a deep investment in the academic capacity of their people. And that has moved them forward. You want to look at another country, look at Brazil. Fifteen, 20 years ago Brazil seemed to be on its way to total destruction. Now it's the fourth largest economy in the world. It's not because they have oil. They also have oil in the Middle East, but they don't have good schools. America is in trouble if we don't get good schools.
ROMANS: But we are a very dynamic country and a lot of different schools, unfortunately. Depending on your zip code, depends what kind of public school you're going to get and 11 percent of students are going to public school because their parent decided to take them out of public school.
On the same day we're talking about Yale and Harvard or Princeton and Harvard tying for number one, talk about two in 10 kids are poor or hungry in this country. So it just shows you the biggest country in the world how crazy everything is.
Let me ask you about what parents can do and what kids can do. You have some advice that we culled from the book. Instill curiosity -- for you to try to get your family going in the right direction instill curiosity. Why?
PERRY: Because a curious child. I once spoke with a Chinese educator and he said most of the families play for a curious child because they will ask great questions. When you ask great questions you'll get a better understanding of the world around you. When you're doing research, it's not just the quality of the research, but really the quality of the question.
ROMANS: E-organize?
PERRY: E-organize, we've seen it with the Arab summer -- I mean spring. This is how many parents who can't make it to the PTO meeting or at the board of education meeting, they can't go there and be rabble rousers and make a bunch of noise. They need to fill their superintendent's e-mail box fill of their concerns and so every time she wakes up in the morning she knows there is somebody watching and they are accountable for that which is going on with their children's lives.
ROMANS: Number three, get a seat at the table with the decision- makers, and number four you say, if all else fails, sue them. Is that the part that means picking a fight that is in the subtitle of your book?
PERRY: No doubt. The problem is that we have done the civil rights thing and we marched and cried and sang negro spirituals and all that, and what we've gotten is the same old failed school system. Enough is enough. Our children deserve an American education, which means it should be the best in the world, which means that every single child should be put forward ahead of adults.
We don't need to do any more research on what good schools are. You want to know what the good schools are? Ask your teachers where they send their kids to school.
ROMANS: All right, Steve Perry, thank you so much. The book is called "Push has come to Shove." it's a good read. Getting our kids the education they deserve, even if it means picking a fight. Thank you so much.
PERRY: Thank you.
COSTELLO: Coming up next, Casey Anthony's parents talk to Dr. Phil, and they have a new theory about the death of their granddaughter, Caylee.
ROMANS: And Casey's lawyer, Jose Baez, is going from one high-profile case to another. It's 38 minutes after the hour.
(COMMERCIAL BREAK)
COSTELLO: It's 40 minutes past the hour. Welcome back to AMERICAN MORNING. Casey Anthony's attorney has a new high-profile case. Jose Baez confirming he will be representing Gary Giordano, the U.S. businessman who is now in jail in Aruba. Giordano is the suspect in the disappearance of his companion Robyn Gardner, who's from Maryland. Baez will only be allowed to serve as an adviser to Giordano and will not be permitted to make arguments in the Aruban courts.
ROMANS: Casey Anthony's parents breaking their silence for the first time since their daughter was cleared of murder charges in July. George and Cindy Anthony appearing on a "Dr. Phil" show yesterday. George admitting his daughter continued to lie after her daughter Caylee went missing. Cindy telling Dr. Phil, she's convinced her daughter is sick and needs help.
(BEGIN VIDEO CLIP)
CINDY ANTHONY, CASEY ANTHONY'S MOTHER: I don't know why she's having seizures? Does she have a brain tumor? I don't know if she had a seizure that day or blacked out and I don't know what happened and that's what I want to find out down the road. I'm not making justifications for that, but there's a cause for this. You just don't have a grand mal seizure.
DR. PHIL MCGRAW, TV HOST: Your theory is that she is a victim in this in some way, a victim of an illness, a tumor, or something.
ANTHONY: I truly believe that because there was never any signs that Casey was an unfit mother. She was an awesome mother. Looking back now, I'm almost wondering if she didn't develop post-partum schizophrenia or some sort of issue after her pregnancy, the hormonal type of illness. I mean, that's my perception because none of those behaviors were exhibited prior to her pregnancy.
(END VIDEO CLIP)
COSTELLO: The Caseys will be -- or the Anthonys, rather will be on Dr. Phil, again, today. Morning headlines coming your way, next, including a dead satellite about to plummet back to earth. It's 42 minutes past the hour.
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COSTELLO: It's 44 minutes past the hour. Here are your morning headlines.
U.S. markets open in just about 45 minutes. Right now futures for the Dow, NASDAQ, and S&P 500 all trading higher ahead of the opening bell. Wall Street bracing for a potentially choppy session today though amidst fears of Europe's debt problems.
Poverty hitting a record level in the United States: new census figures show that 46.2 million people are now considered living in poverty. That's 2.6 million more than last year and the most since the census started tracking this over five decades ago.
President Obama back on the road to go for his big jobs plan today; he's in North Carolina. The White House says the President will emphasize the need for Congress to pass this jobs bill and put Americans back to work.
President Obama's disapproval rating hits a new time -- hits an all- time high. According to a new CNN ORC poll, 55 percent of Americans do not think the President is doing a good job.
Bob Turner winning the election to fill Anthony Weiner's vacant House seat. It is the first time in nearly a century that a Republican has captured the traditionally Democratic Ninth New York District.
Fewer pat downs for kids at airport security check points. The TSA now changing the way children are screened before they get onboard airplanes. Pat downs will now be a last resort for children under the age of 12 if things like metal detectors and scanners keep going off.
Dish Network has suffered a major outage last night mostly affecting HD service. The company blamed this satellite anomaly and hope that it will all be fixed by this morning.
NASA says a dead satellite will fall back to earth by the end of the month. Officials expect most of the six ton piece of space junk to burn up during re-entry and pose little risk to people on the ground.
That's the news you need to start your day. AMERICAN MORNING is back after a break.
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CHRISTINE ROMANS, CNN ANCHOR: New York City, it's -- it's nice outside. It's kind of fair, 73. Although, later we're told it is going to be a thunderstorm in here and 80 degrees.
COSTELLO: I better go outside quickly so I can avoid the raindrops. Welcome back to AMERICAN MORNING.
Who is the highest paid man in Hollywood? Movie and TV mogul, Tyler Perry tops "Forbes" annual list. Perry made $130 million between May of 2010 and May of 2011. Also in the top five, producer Jerry Bruckheimer who made $113 million and then it's Steven Spielberg, Elton John with $100 million and Simon Cowell round out the top five.
ROMANS: Reese Witherspoon has been spotted in public for the first time since she was hit by a car last week, appearing at a French party in Los Angeles yesterday. You can see Reese has a black eye. She also had a bandage on her forehead.
The spokesman to the actress says Reese will not be pressing charges against the 84-year-old driver who struck her in an unmarked crosswalk.
COSTELLO: Anderson Cooper is so very busy these days that we need to make another one of him. Here he is unveiling his own Madam Tussaud's wax figure on the second episode of his new talk show. Anderson spent the past summer being measured down to the tiniest white hair on his head. His wax figure will be on display at Madam Tussaud's starting today.
J. Crew is truly an iconic American fashion label with annual 10- figure sales and hundreds of stores nationwide and frankly big plans to expand internationally.
COSTELLO: And oh, by the way, J. Crew also has the presidential seal of approval.
Alina Cho taking us behind the seams to visit with Mickey Drexler the company's highly unorthodox CEO.
ALINA CHO, CNN CORRESPONDENT: You remember Michelle Obama wearing J. Crew on the campaign trail.
COSTELLO: Yes, yes.
ROMANS: Absolutely.
CHO: Right, I mean, she -- in -- in part helped to revitalize that brand although it was already hot. But J. Crew, keep in mind guys, wasn't always so successful. It was back when we were in college, remember that, when we ordered those barn jacket and cowl neck sweaters from the J. Crew catalogue.
That was then, J. Crew was hot and then it was not and now it is hot again and that's largely because of the man at the helm, Mickey Drexler. And it's something I have never seen.
Watch.
(BEGIN VIDEOTAPE) MICKEY DREXLER, CEO, J. CREW: Can I have your attention, please.
CHO (voice-over): Meet America's merchant prince.
DREXLER: If anyone can just bring in best sellers.
CHO: He's Mickey Drexler, CEO of J. Crew. When he speaks --
DREXLER: Things that are new, any trend.
CHO: The racks come rolling in.
DREXLER: Show me, bring them in.
UNIDENTIFIED FEMALE: The green is doing half the sales as the white blouse. This is the number one style.
CHO: Why the intercom?
DREXLER: Why the intercom, just why you don't see any walls here. Because I think most organizations are fortress-oriented.
CHO: Not at J. Crew where Drexler's mantra is "No profit, no fun".
Once a catalogue company for college kids a decade ago J. Crew was in a slump that's until Drexler came aboard nine years ago, picked up after being abruptly fired from the GAP.
(on camera): Who is your biggest competitor?
DREXLER: You know, I could say anyone with a sewing machine.
CHO (voice-over): He has been credited with inventing casual Fridays by the changing the way Americans dress, elevating J. Crew to affordable luxury.
(on camera): I mean, they really are the iconic American brand, aren't they?
CINDI LEIVE, EDITOR IN CHIEF, "Glamour": J. Crew has made itself into something magical. I mean I know women who can afford anything in the world and they will literally go through the J. Crew catalogue and just order those outfits right off the page.
JENNA LYONS, PRESIDENT, J. CREW: He wanted to talk about Italian cashmere. He wanted to talk about our Italian shoes. He wanted to talk about quality. We haven't been having those conversations.
CHO (voice-over): It worked. Under Drexler, J. Crew sales have tripled to $1.8 billion with the First Family's seal of approval.
JAY LENO, HOST: I want to ask you about your wardrobe. I guess about it's about $60,000.
MICHELLE OBAMA, FIRST OF THE UNITED STATES: Actually, this is a J. Crew ensemble. LENO: Really, wow, wow.
CHO (on camera): You call her an act of God.
DREXLER: Yes, you know look, you can't argue with that kind of publicity.
CHO (voice-over): The secret -- a big splash of color. J. Crew's signature.
DREXLER: When you buy something like this, you're competing with 50 other retailers and half of them have it on sales.
CHO (on camera): So that's why you got this.
DREXLER: You've got this, look, color is a competitive advantage for us.
CHO (voice-over): He created Crew Cuts for kids, bridal, jewelry and everywhere there's sparkle, 233 stores nationwide. They're in Canada and have their sights set on China, too. This season, for the first time, J. Crew presented its latest collection under the fashion tents.
Six foot tall Jenna Lyons is the resident cool girl. J. Crew's President.
LYONS: I said a joke that I'm like the road signs, I'm like, don't do that, let's do more of that, stay over here, no stop. And you know, it's maybe just a little bit of that that sort of keeps everything coming out of the tunnel at the other end.
CHO (voice-over): Cookie color combos a touch of the unexpected.
LYONS: I wore these, I love them and here there back again. But like then you have to wear these with a sequin skirt. You know it's not about dress like you know a quilt.
CHO: Drexler's philosophy is quite simple and all American. Just like J. Crew.
DREXLER: Do it, do it right. Pay close attention to the product. And over time you will win.
(END VIDEOTAPE)
CHO: Great philosophy. And J. Crew, if you think about it, really has grown organically. The bridal business for example started after Drexler noticed that women were buying multiple copies of a dress for their bridesmaids.
Lyons says that Crew Cuts for kids started because boys like to dress like their fathers and girls like to shop with their mothers. So the philosophy start them early and then they'll be customers for life.
COSTELLO: Wow. ROMANS: And the colors -- and the colors; he's right about the color that you can get a pair of khakis anywhere and you can get the month's sales some place. But if you've to the color to throw in, then that means, maybe you're likely to pick it up in the same place.
CHO: They like to call it happy shopping.
ROMANS: Happy shopping, all right.
COSTELLO: I like that. Thanks Alina.
Tomorrow on AMERICAN MORNING name the hottest stars in Hollywood and celebrity stylist Rachel Zoe has dressed them all. Now Zoe, who already has her own reality show is branching out with a new fashion line. But will this fashion world embrace her? Alina will have the answer for you tomorrow.
ROMANS: In her inside look at fashion and design continues all week. From Carol Lagerfeld, to Rachel Zoe, CNN's Alina Cho sitting down with the most influential designers, stylist, editors and it all ends in her September special. September 17th 2:30 p.m. "FASHION BACKSTAGE PASS".
COSTELLO: Look, she's blushing over there.
Coming up next, our "Talk Back" question of the day. What is our government responsibility to those in need? We'll read through some of your responses.
It's 54 minutes past the hour.
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ROMANS: Good morning, Washington, D.C. Beautiful shot of the Capitol building this morning. A crisp September morning. Fair, we're told, 73 degrees right now in the nation's capital. Thunderstorms though and 89 later today -- Carol.
COSTELLO: I know. I'm just looking over our Facebook page because we got over -- we've got nearly 400 comments this morning on this poverty question. People are really concerned about the government's role in helping people get out of poverty. To what extent should the government help people? And a lot of people are, actually, they're arguing with each other now.
ROMANS: That I love to see.
COSTELLO: I love to see because that means it's a heated, passionate discussion. And that's what we need to do in our country these days. So the "Talk Back" question today: what is the government's responsibility in helping those in need?
This is from Amy. "It's frustrating to see that we continually pay for people that complain that all they can find is part-time employment. I have two part-time jobs and a small business. Just because I couldn't make enough money at one job, I didn't sit down and start drawing benefits. No, I went out and picked up another job when my hours got cut."
This from Caleb, "Government's responsibility is to help those in need. It may not be the government's fault that they are in need, but it is the government's job to make sure they get out of whatever hole they are in."
And this from Marshall, "Helping those in need is the role of charity and not government. You know, we're in the day of smaller government these days. A lot of people think we should shrink government and maybe we shouldn't help people out so much."
ROMANS: We have a safety net that has been expanding and it has been expanding through the stimulus and now through efforts again to keep jobs going. The conversation in Washington is about shrinking government and cutting back. So, you've got some numbers, I think, from census that highlight just how difficult this is going to be to cut deficits longer term, but also keep the money flowing near term so people aren't hurt.
COSTELLO: Yes. We'll keep the conversation going. Facebook.com/Americanmorning. And thanks so much for your comments this morning, we sure appreciate it.
ROMANS: That's right. Now, let's head to Atlanta and Kyra Phillips. Good morning Kyra.
KYRA PHILLIPS, CNN ANCHOR, "CNN NEWSROOM": Good morning you guys. Thanks so much.
