[Lou Dobbs, Cnn Anchor:] Tonight: The White House backs off its forecast of 2.6 million new jobs this year, saying the president is focusing on policies, not forecasts.
[George W. Bush, President Of The United States:] I think the economy is growing and I think it's going to get stronger.
[Dobbs:] The president's Democratic rivals focus on international trade and its effect on American jobs. John Kerry and John Edwards agree on the problem, but not the solution.
[Unidentified Male:] I now pronounce you spouses for life.
[Dobbs:] In "Face-Off" tonight: same-sex marriage. Genevieve Wood of the Family Research Council, Ralph Neas of People For the American Way debate gay marriage. And Martha Stewart, the former top attorney in her company takes the witness stand. The pace of the trial picks up.
[Announcer:] This is LOU DOBBS TONIGHT for Wednesday, February 18. Here now, Lou Dobbs.
[Dobbs:] Good evening. One of the president's top advisers is making economics not only interesting, but controversial. Last week, President Bush distanced himself from his chief economic adviser, Greg Mankiw's statement that outsourcing is good for the American company. And today, the White House distanced itself from Mankiw's forecast that the economy will create 2.6 million new jobs this year. Senior White House correspondent John King with the report John.
[John King, Cnn Sr. White House Correspondent:] Lou, that prediction, 2.6 million new jobs this year, of course, an election year, is in this report issued just nine days ago sent up to the Congress and carrying the president's signature. Now, Mr. Bush was asked today in the Oval Office did he stand by the prediction of 2.6 million new jobs. The president would not give a direct answer.
[Bush:] I think the economy is growing. And I think it's going to get stronger. But I do think there are some things we need to do. We need to make sure the tax cuts are permanent. I look forward to continuing to talk about this issue. Uncertainty in the tax code could affect small-business planning. Uncertainty in the tax code will make it harder for citizens to make rational decisions about spending money.
[King:] Now, in a conversation with CNN just a short time ago, the lead author of this report, Greg Mankiw, says that prediction of 2.6 million new jobs was based on economic data back in December, when this report was being put together to help the president craft his budget. Mr. Mankiw saying the economy has changed a bit then, so the numbers might be a bit stale. He says, though, he will not give a new prediction, that that is not the White House's business, to be in the forecasting business. The president's press secretary was peppered with questions about all this today. And he said the president will be judged in November based on his performance, not on any predictions.
[Scott Mcclellan, White House Press Secretary:] You know, I think that people can debate the numbers all they want. The president is focused on acting on policies to create as robust an environment for job creation as possible, so that we can help those who are hurting because they are looking for work and cannot find a job.
[King:] Democrats, though, see an immediate political opening. In a letter to the president from six leading Senate Democrats, they ask this question quote "In light of these broken promises and mixed messages, we urge you to provide a meaningful jobs prediction that all Americans, including your own Cabinet, would find credible." And, Lou, out on the campaign trail, the Democratic front-runner, John Kerry, also questioning this White House retreat from this prediction, saying, though, it's no surprise to him. He says the administration promised new jobs after each of the first two big Bush tax cuts. Senator Kerry saying those jobs never materialized Lou.
[Dobbs:] John, President Bush is making the economy a key feature of his recent public appearances. Are we likely to see an even greater emphasis on the part of the president on the issue of the economy in the weeks and months ahead?
[King:] You certainly will, Lou. You will see the president traveling to promote his economic policy, including his big tax cuts. You will see the president making the case that jobs are coming back. I will say that some Republicans are getting a bit nervous at the poll numbers and all the controversy about economic predictions and even the questions about going to war in Iraq. Some Republicans say the president should tap into his huge financial advantage, start spending on television ads right now. The Bush-Cheney team, though, says it's going to wait another week, maybe two, to be certain that Senator Kerry is the Democratic nominee. Just in case he stumbles, they don't want to start spending just yet.
[Dobbs:] Senior White House correspondent John King, thank you. International trade and its effect on American jobs is rapidly becoming a major issue in the presidential election campaign. The issue has been raised repeatedly in the race now for the Democratic presidential nomination. It has also exposed a key difference between Senators Kerry and Edwards. Peter Viles reports.
[Peter Viles, Cnn Correspondent:] In what's now a two-man race for the Democratic nomination, John Kerry claims there is no quarrel over trade policy.
[Sen. John Kerry , Presidential Candidate:] We have the same policy on trade, exactly the same policy. He voted for the China trade agreement. So did I. And we, both of us, want to have labor agreements and environment agreements as part of a trade agreement.
[Viles:] But it takes two to see eye to eye. And John Edwards doesn't see it that way.
[Sen. John Edwards , Presidential Candidate:] We have legitimate differences about issues like jobs and trade. Senator Kerry supported NAFTA and other trade agreements. I was against NAFTA and some of the trade agreements that he was for. And I think they have cost us millions of jobs.
[Viles:] For the record, Kerry voted in favor of permanent trade status for China, in favor of fast-track negotiations, in favor of NAFTA. He now wants to review NAFTA and all other trade deals and use the tax code to discourage outsourcing and encourage manufacturing. Edwards voted in favor of the China bill, but against fast track. He opposed NAFTA and now wants to renegotiate it, and would also use the tax code to discourage outsourcing. Now, whoever wins that fight will face a president who does not apologize for his free trading ways. His White House says outsourcing makes sense and has continued the Clinton policy of global deal- making. This was September, signing trade deals with Singapore and Chile.
[Bush:] We're now negotiating with Australia and Morocco, five nations in Central America, and the Southern African Customs Union. Soon, we'll begin negotiations with Bahrain and the Dominican Republic. We're working with 33 other nations in our hemisphere to create the Free Trade Area of the Americas.
[Viles:] The president has used protectionism on occasion, notably in big agriculture subsidies and steel tariffs. The hot-button issue now in this trade debate has been the outsourcing of jobs. Kerry calls CEOs who outsource jobs traitors to their country. And Edwards ran TV ads in Wisconsin saying it is now time to quote "hire American" Lou.
[Dobbs:] Some would argue past time.
[Viles:] Sure.
[Dobbs:] Pete, thank you Peter Viles. President Bush plans to spend another $300 million to help American workers who can't find jobs. Many of those workers are unemployed because their jobs have been exported to cheap overseas labor markets. But it turns out that more government spending may not help. Casey Wian reports from Los Angeles.
[Casey Wian, Cnn Correspondent:] Dave Kintner spent 30 years as a telecommunication engineer. He was laid off two years ago and sent out hundreds of resumes.
[Dave Kintner, Laid-off Telecom Worker:] After a couple months of doing this. well, I've got to start something else. I've got to redo some retraining.
[Wian:] In his 50s, Kintner thought college would take too long, so he retrained himself in construction, first working at a home supply center, then for a contractor. Now he's on his own, struggling in an industry dominated by cheap illegal alien labor.
[Kintner:] You can't go from making $35, $40 an hour down to $10 an hour and still maintain your lifestyle.
[Wian:] President Bush proposes spending $300 million for community college job retraining and personally reemployment accounts. Already, the Labor Department spends $6 billion a year on a dozen retraining programs, which some say isn't enough.
[Andy Van Kleunen, Executive Director, Workforce Alliance:] We have two million long-term unemployed Americans out of work who are likely going to need new skills to get back into the job market. We are currently funding federal programs that at best might be retraining a tenth of those workers every year.
[Wian:] But more federal spending may not be the answer. [on camera]: In 1996, the General Accounting Office studied the Federal Job Training Partnership Act. It found no significant impact on long-term employment rates or wages. It's been replaced with another program.
[Bill Conerly, National Center For Policy Analysis:] The evidence overwhelmingly says, our efforts to create skills that help people get better jobs have not worked. It's been more or less money down a rat hole.
[Wian:] Retraining works best when it goes beyond basic skills and prepares workers for specific jobs. Westwood College identifies hot job markets and offers training to match.
[John Hanson, Westwood College:] On average, 80 to 85 percent of our graduates are employed within their field of expertise within the first 90 days after graduation.
[Wian:] John Osgood was laid off from his management job at a trucking company. Now he's learning computer design.
[John Osgood, Student:] I think it's going to open up a lot more possibilities.
[Wian:] Some of those include computer game design, health care and criminal justice. Casey Wian, CNN, Los Angeles.
[Dobbs:] As John King earlier reported, John Kerry today criticized the White House for backing off that jobs forecast.
[Kerry:] Just a couple of days ago, the administration promised America several million jobs over the course of the next months. I immediately said that those predictions would fall short, based on the promises they made with respect to the tax cut, which was supposed to give a million jobs. It didn't. It lost a million. The next tax cut was supposed to produce a million jobs, lost a million. And now they are already walking backwards on their own predictions.
[Dobbs:] Senator Kerry is campaigning in Ohio tonight. Ohio, of course, is key among the 10 states awarding delegates on Super Tuesday. Senator Kerry is continuing to focus his attacks on President Bush. He made little mention of his closest challenger in Wisconsin, the surprisingly strong finish by Senator John Edwards. Edwards today took off from campaigning. Tomorrow, he returns to the campaign trail. He'll be in New York and Georgia, two more key Super Tuesday states. Howard Dean today dropped out of the race for the Democratic presidential nomination. Dean did not endorse either John Kerry or John Edwards. Instead, Dean promised to continue to work to transform the Democratic Party and to change the country. Candy Crowley reports from Burlington, Vermont.
[Candy Crowley, Cnn Sr. Political Correspondent:] Six weeks ago, when he led nearly every poll in every state, this day would have been unimaginable. But after losing 17 contests across the country in a single month, Dr. Dean pulled the plug.
[Howard Dean , Former Presidential Candidate:] I am no longer actively pursuing the presidency. We will, however, continue to build a new organization, using our enormous grassroots network to continue the effort to transform the Democratic Party and to change our country.
[Crowley:] His candidacy may be over, but Dean, who both dominated and defined the 2004 Democratic race, made it perfectly clear, he still has a voice.
[Dean:] I will support the nominee of our party. I will do everything I can to beat George W. Bush. I urge you to do the same. But we will not be above in this organization of letting our nominee know that we expect them to adhere to the standards that this organization has set for decency, honesty, integrity and standing up for ordinary American working people.
[Crowley:] It is possible Dean could endorse another candidate still in the race. But if he is to make a difference, he will have to do that soon. Other than that, the Dean campaign has managed to put together a list of previously unknown small donors. And that alone makes him a very valuable asset to the Democratic Party. Candy Crowley, CNN, Burlington, Vermont.
[Dobbs:] In just a moment, I'll be talking with Howard Dean's former campaign manager, Steve Grossman, who made it to the door before Howard Dean. Also ahead tonight, American troops capture seven suspected al Qaeda terrorists in Iraq Senior Pentagon correspondent Jamie McIntyre with that report. And in "Face-Off" tonight, the growing controversy in this country over gay marriage. Genevieve Wood of the Family Research Council, Ralph Neas of People For the American Way will debate the issue. And most of the toys sold in this country, no surprise, are made in China. But some American toymakers have survived and they are fighting back. We'll have a special report. Stay with us.