PBS NewsHour; June 3, 2011 3:00pm-4:00pm PDT

Captioning sponsored by MacNEIL/LEHRER PRODUCTIONS

>> Lehrer: MORE SETBACKS ON THE NATION'S JOB FRONT AS EMPLOYERS HIRED THE FEWEST NEW WORKERS IN EIGHT MONTHS. GOOD EVENING. I'M JIM LEHRER.

>> Woodruff: AND I'M JUDY WOODRUFF. ON THE NEWSHOUR TONIGHT, WE ASK WHY FIRMS AREN'T HIRING, AND HOW MUCH THIS SLOWS THE ECONOMIC RECOVERY.

>> Lehrer: JEFFREY BROWN UPDATES THE CONTINUING TURMOIL IN THE ARAB WORLD.

>> Woodruff: PLUS, ECONOMICS CORRESPONDENT PAUL SOLMAN CHECKS OUT HOW GROVER, ELMO, AND COOKIE MONSTER ARE SPENDING AND SAVING THEIR MONEY.

>> HOW DOES "SESAME STREET" TEACH YOUNG CHILDREN FINANCIAL LITERACY, AND PARTICULARLY HOW TO SAVE?

>> Lehrer: AND MARK SHIELDS AND DAVID BROOKS ANALYZE THE WEEK'S NEWS. THAT'S ALL AHEAD ON TONIGHT'S NEWSHOUR. MAJOR FUNDING FOR THE PBS NEWSHOUR HAS BEEN PROVIDED BY:

>> OKAY, LISTEN. SOMEBODY HAS GOT TO GET SERIOUS.

>> I THINK...

>> WE NEED RENEWABLE ENERGY.

>> ...RENEWABLE ENERGY IS VITAL TO OUR PLANET.

>> YOU HEAR ABOUT ALTERNATIVES, RIGHT? WIND, SOLAR, ALGAE.

>> I THINK IT'S GOT TO WORK ON A BIG SCALE. AND I THINK IT'S GOT TO BE AFFORDABLE.

>> SO, WHERE ARE THEY?

>> IT HAS TO WORK IN THE REAL WORLD. AT CHEVRON, WE'RE INVESTING MILLIONS IN SOLAR AND BIOFUEL TECHNOLOGY TO MAKE IT WORK.

>> WE'VE GOT TO GET ON THIS NOW.

>> RIGHT NOW.

>> AND BY BNSF RAILWAY. PACIFIC LIFE-- THE POWER TO HELP YOU SUCCEED.

>> AND BY THE BILL AND MELINDA GATES FOUNDATION. DEDICATED TO THE IDEA THAT ALL PEOPLE DESERVE THE CHANCE TO LIVE A HEALTHY PRODUCTIVE LIFE. AND WITH THE ONGOING SUPPORT OF THESE INSTITUTIONS AND FOUNDATIONS. AND... THIS PROGRAM WAS MADE POSSIBLE BY THE CORPORATION FOR PUBLIC BROADCASTING. AND BY CONTRIBUTIONS TO YOUR PBS STATION FROM VIEWERS LIKE YOU. THANK YOU.

>> Woodruff: THE GOVERNMENT'S NEW JOB NUMBERS TODAY SHOWED A SHARP SLOWDOWN IN HIRING, AND A SMALL INCREASE IN THE UNEMPLOYMENT RATE. THEY ADDED TO GROWING QUESTIONS ABOUT HOW LONG IT WILL TAKE FOR MILLIONS OF AMERICANS TO GET BACK ON A PAYROLL. AT JOB FAIRS ACROSS THE COUNTRY, THE SEARCH FOR WORK IS GETTING HARDER AND HARDER, AS THE LATEST LABOR DEPARTMENT FIGURES BEAR OUT. IN MAY, THE ECONOMY ADDED A NET OF 54,000 NEW JOBS, WELL BELOW EXPECTATIONS. AND WITH MORE PEOPLE ENTERING THE WORK FORCE, THE UNEMPLOYMENT RATE ROSE FROM 9% TO 9.1%. PRIVATE EMPLOYERS TOOK ON JUST OVER 80,000 NEW WORKERS IN MAY, THE FEWEST IN NEARLY A YEAR. AND THE MANUFACTURING SECTOR ACTUALLY ELIMINATED POSITIONS. AT THE SAME TIME, CASH-STRAPPED CITIES AND COUNTIES KEPT ON CUTTING THEIR WORK FORCES. ONE OF THE BIGGEST REDUCTIONS CAME IN THE FORM OF ALMOST 18,000 EDUCATION POSITIONS LOST. AT A CHRYSLER PLANT IN TOLEDO, OHIO, TODAY, PRESIDENT OBAMA ACKNOWLEDGED THE PROBLEMS, EVEN AS HE PRAISED THE AUTO INDUSTRY'S TURNAROUND.

>> WE'VE STILL GOT A LONG WAY TO GO, NOT JUST IN THIS INDUSTRY BUT IN OUR ECONOMY, FOR ALL OUR FRIENDS, ALL OUR NEIGHBORS WHO ARE STILL FEELING THE STING OF RECESSION. THERE'S NOBODY HERE WHO DOESN'T KNOW SOMEONE WHO'S LOOKING FOR WORK AND HASN'T FOUND SOMETHING YET.

>> Woodruff: IN WASHINGTON, HOUSE REPUBLICANS SAID THE TIME HAS COME TO PAY ATTENTION TO THEIR IDEAS FOR JOB CREATION. SPEAKER JOHN BOEHNER.

>> WE CAN'T RAISE TAXES ON THE VERY PEOPLE WHO CREATE JOBS, AND KEEP SPENDING MONEY THAT WE DON'T HAVE. ONE LOOK AT THE JOBS REPORT SHOULD SHOW THE WHITE HOUSE IT'S TIME TO GET SERIOUS ABOUT CUTTING SPENDING AND DEALING WITH OUR AILING ECONOMY.

>> Woodruff: FOR NOW, THOUGH, IT'S UNCLEAR HOW SOON THINGS WILL IMPROVE. THE TEMPORARY WORK FORCE FAILED TO EXPAND IN MAY, WHICH MIGHT HAVE SIGNALED THAT HIRING FOR PERMANENT JOBS WOULD PICK UP. AND UNDER-EMPLOYMENT REMAINS A PROBLEM. MORE THAN 25 MILLION AMERICANS HAVE GIVEN UP LOOKING FOR WORK, OR HAVE PART-TIME JOBS BUT WANT TO BE WORKING FULL-TIME. THAT ACCOUNTS FOR NEARLY 16% OF THE WORK FORCE. WE TAKE A CLOSER LOOK AT THE NEWEST DATA WITH LISA LYNCH, DEAN OF THE HELLER SCHOOL FOR SOCIAL POLICY AND MANAGEMENT AT BRANDEIS UNIVERSITY. SHE'S A FORMER CHIEF ECONOMIST FOR THE U.S. LABOR DEPARTMENT. AND JOEL NAROFF, PRESIDENT OF NAROFF ECONOMIC ADVISORS. HE JOINS US FROM PHILADELPHIA. THANK YOU BOTH FOR BEING WITH US. LISA LYNCH, TO YOU FIRST. YOU LOOK AT THESE NUMBERS ALL THE TIME. WHAT WAS YOUR REACTION FOR THIS MONTH?

>> WELL, IT WAS UTTERLY DISAPPOINTING TO SEE THIS LOW NUMBER IN TERMS OF THE NUMBER OF NEW JOBS ADDED TO THE ECONOMY. I MEAN, THE MONTH OF MAY, THE JOB CREATION MACHINE REALLY CAME TO A SCREECHING HALT. AND WHEN YOU'RE LOOKING FOR NUMBERS OF 250,000 TO 300,000 JOBS TO BE ADDED TO THE ECONOMY A MONTH, TO START MAKING A SERIOUS DENT INTO THE 14 MILLION PEOPLE THAT ARE OUT OF WORK, A NUMBER LIKE TODAY'S HEADLINE NUMBER WAS VERY DISAPPOINTING.

>> Woodruff: LISA LYNCH, DIG A LITTLE DEEPER INTO THE NUMBERS. WHAT DO YOU SEE SECTOR BY SECTOR?

>> SO, IN TODAY'S REPORT, WITH THE EXCEPTION OF WHAT HAPPENED IN LOCAL GOVERNMENT, THE STORY WAS NOT SO MUCH THAT EMPLOYERS WERE LAYING OFF WORKERS-- ALTHOUGH, WE SAW SOME DECREASES IN UNEMPLOYMENT IN THE MANUFACTURING SECTOR AND THE RETAIL SECTOR-- WHAT REALLY HAPPENED WAS THAT EMPLOYERS ON THE OTHER SECTORS DID NOT REALLY ADD AS MANY JOBS AS YOU WOULD HAVE EXPECTED. SO HEALTH CARE ADDED JOBS BUT NOT AT THE SAME PACE AS IN THE PAST. PROFESSIONAL AND BUSINESS SERVICES, ESPECIALLY FOR PEOPLE HIRING ACCOUNTANTS AND COMPUTER SYSTEMS DESIGN EMPLOYEES, THEY ADDED EMPLOYEES, BUT THAT WAS JUST 83,000 NET NEW EMPLOYEES ADDED TO THE ECONOMY. WHEN YOU TAKE INTO ACCOUNT THEN WHAT HAPPENED ON THE LOCAL GOVERNMENT SIDE OF ALMOST 30,000 WORKERS LOSING THEIR JOBS THERE, IT WAS PRETTY DEVASTATING. WHEN YOU DRILL DOWN INTO THE MANUFACTURING NUMBERS, IT WAS DISAPPOINTING TO SEE THAT MANUFACTURING EMPLOYMENT FELL, BUT THERE'S TWO STORIES THERE. THE DURABLE MANUFACTURING NUMBER WE STILL ADDED JOBS, BUT THE JOB LOSS WAS CONCENTRATED IN FOOD MANUFACTURING AND PRINTING AND PAPER.

>> Woodruff: JOEL NAROFF, AS YOU LOOK AT THE CIRCUMSTANCES LAST MONTH, DO YOU SEE WHAT WAS DRIVING WHAT HAPPENED TO JOBS?

>> WELL, I THINK THERE'S NO QUESTION THAT THE RISE IN GASOLINE PRICES HAS MADE BUSINESSES A LOT MORE CAUTIOUS IN THEIR WILLINGNESS TO HIRE AT THIS PARTICULAR POINT. WE HAD BEEN MOVING ALONG AT A PRETTY SOLID PACE. INDEED, BUSINESSES WERE ADDING JOBS AT A RATE THAT WAS MUCH MORE THAN ANY OF US HAD EXPECTED COMING INTO THE YEAR. BUT THE SPEED BUMP THAT THE HIGHER GASOLINE PRICES HAS CREATED HAS CAUSED BUSINESSES TO ASK THE QUESTION, "IS THIS RECOVERY GOING TO PICK UP THE KIND OF SPEED THAT THEY WERE HOPING IT WOULD, AND IF NOT DO, THEY REALLY NEEDS THE JOBS RIGHT NOW?" SO I THINK WHAT THEY'RE STARTING TO DO IS BASICALLY SAY, "I'M GOING TO HOLD OFF A LITTLE WHILE SEE IF THE GASOLINE PRICES COME BACK, SEE IF PEOPLE START SPENDING AGAIN, AND IF WE DO HAVE THAT PICKUP, THAT WOULD COME WITH THE LOWER GAS PRICES, THEN WE CAN START HIRING ONCE AGAIN." I THINK THIS IS A SOFT SPOT BUT NOT NECESSARILY AN INDICATION THAT THIS ECONOMY IS NOT GOING TO BE ABLE TO CREATE A WHOLE LOT OF JOBS GOING FORWARD.

>> Woodruff: WELL, I WANT TO ASK YOU ABOUT THAT IN A MOMENT. BUT WE KEEP HEARING THAT COMPANIES HAVE A LOT OF CASH ON HAND, SO DO YOU SQUARE THAT WITH THE DECISION NOT TO PUT MORE PEOPLE ON THE PAYROLL?

>> WELL, THERE'S REALLY A DISCONNECT BETWEEN COMPANIES EARNING MONEY AND THE COMPANIES' STOCK PRICES AND HOW THEY SPEND IT AND WHERE THEY SPEND IT. WE'RE IN A GLOBALLIZED ECONOMY RIGHT NOW. A LOT OF THE, ESPECIALLY LARGE COMPANIES THAT HAVE A LOT OF BUSINESS OVERSEAS, ARE LOOKING TOWARDS THEIR OVERSEAS MARKETS RATHER THAN THE DOMESTIC U.S. MARKETS TO EXPAND. AS A RESULT OF THAT, THEY MAY BE MAKING A LOT OF MONEY, BUT THEY MAY BE PUTTING THAT MONEY TO USE SOMEWHERE ELSE OUTSIDE THE UNITED STATES. SO WE USED TO SAY IF THE STOCK MARKET GOES UP, OR IF COMPANIES ARE EARNING LOTS OF MONEY, THAT'S GOING TO BE A SIGN THAT THE U.S. ECONOMY IS STRONG AND MORE JOBS ARE COMING. THAT'S NOT NECESSARILY THE CASE ANYMORE.

>> Woodruff: LISA LYNCH, WHAT WOULD YOU ADD TO THE SINKING-- THE-- WHAT'S ON THE MIND OF EMPLOYERS AS THEY MAKE THE DECISION NOT TO HIRE?

>> WELL, I WOULD ADD TWO OTHER FACTORS TO WHAT JOEL JUST COVERED. THE FIRST IS THE CONTINUING DRAG ON OUR ECONOMY OF THE HOUSING SECTOR. AT THIS STAGE IN THE RECOVERY, IN PAST RECOVERIES, WE WOULD HAVE HAD HOME CONSTRUCTION PICKING UP, ADDING NEW JOBS, AND A LOT OF AUXILIARY EMPLOYMENT ASSOCIATED WITH THAT. AND WE'RE JUST NOT SEEING THAT. THE NUMBER OF FORECLOSURES THAT ARE STILL OUT THERE, THE GLUT THAT STILL HAS TO BE WORKED THROUGH IS GOING TO CONTINUE TO BE A DRAG. SO WE'RE NOT GETTING PICKUP ON THAT FRONT THAT WE WOULD HAVE OTHERWISE HAVE GOTTEN. AND SECONDLY, WHEN YOU LOOK AT NEW BUSINESSES, THE CREDIT CRUNCH IS STILL AFFECTING NEW BUSINESSES. BANKS ARE STILL NERVOUS WITH RESPECT TO THE NATURE OF THEIR EXPOSURE. SO NEW ENTREPRENEURS THAT COME INTO A BANK THAT ARE LOOKING FOR FUNDS TO GO OFF WITH THIS NEW IDEA THAT NO ONE ELSE HAS DONE BEFORE ARE ENCOUNTERING A LOT OF RESISTANCE IN TERMS OF RAISING THAT CAPITAL THAT THEY NEED TO GROW THEIR BUSINESSES. AND A LOT OF NET NEW EMPLOYMENT AT THIS STAGE OF THE RECOVERY IN THE PAST WOULD HAVE COME FROM NEW BUSINESSES STARTING UP AND ADDING EMPLOYEES. AND THAT'S NOT HAPPENING, EITHER.

>> Woodruff: JOEL NAROFF, I WANT TO ASK YOU ABOUT A LOT OF TALK WE'RE HEARING IN WASHINGTON RIGHT NOW AND THAT IS IN THE DIRECTION OF THE NEED TO CUT GOVERNMENT SPENDING. THERE'S NO AGREEMENT YET, BUT IF THERE WERE TO BE A DEAL REACHED TO CUT GOVERNMENT SPENDING BY HUNDREDS OF BILLIONS OF DOLLARS, WHICH IS, I GUESS, THE GOAL THAT SOME HAVE, WOULD THAT HAVE AN EFFECT ON JOBS?

>> WELL, I THINK THE SHORT-TERM EFFECT ON JOBS WOULD LIKELY TO BE SOMEWHAT NEGATIVE. I THINK WE'RE SEEING THAT ALREADY IN THE LOCAL GOVERNMENT NUMBERS AND THE EDUCATION NUMBERS, WHERE CUTBACKS IN FUNDING IS LEADING TO JOB REDUCTIONS. LONG TERM IT MAY HELP, BUT, CLEARLY, YOU REDUCE THE AMOUNT OF SPENDING ON THE PART OF GOVERNMENT, WHETHER IT'S PEOPLE NOT GETTING AS MUCH MONEY TO SPEND OR BUSINESSES NOT HAVING CONTRACTS, ALL OF THESE THINGS LEAD TO LOWER LEVELS OF DEMAND, AND IN THE THE SHORT RUN, THAT'S GOING TO LEAD TO, INDEED, POSSIBLY SLOWER JOB GROWTH THAN WE WOULD HAVE HAD. THERE'S NO SUCH THING AS A FREE BUDGET CUT. THERE IS A COST THAT WILL BE PAID, AND THAT PAYMENT COMES IN THE SHORT TERM IN TERMS OF SOMEWHAT SLOWER JOB GROWTH.

>> Woodruff: LISA LYNCH, AS WE WRAP THIS UP, CAN YOU LEAVE US WITH ANYTHING POSITIVE YOU SEE IN THE NUMBERS? WE HEARD JOEL SAY A MINUTE AGO THIS DOESN'T NECESSARILY MEAN THAT THE RECOVERY HAS ENDED. DO YOU SEE ANYTHING POSITIVE HERE?

>> WELL, NO, I MEAN, WE HAVE TO MAKE-- UNDERSTAND THAT THIS IS STILL A POSITIVE JOB NUMBER, AND WE DID SEE PEOPLE THAT HAD DROPPED OUT OF THE LABOR MARKET, WERE DISCOURAGED WORKERS, COMING BACK INTO THE LABOR MARKET WITH THIS MONTH'S REPORT. SO THAT'S A GOOD SIGN THAT PEOPLE ARE STARTING TO SEE HELP UPONED ADS UP THERE. BUT STILL, WE HAVE THREE WORKERS FOR EVERY-- THREE TO FOUR WORKERS FOR EVERY JOB THEY CAN SEE THERE IS OUT THERE. SO AS PEOPLE ARE LOOKING FOR EMPLOYMENT, THEY'RE COMING BACK INTO THE LABOR MARKET, THEY'RE FIND, EMPLOYERS ARE STILL SOMEWHAT RELUCTANT TO INN CREASE THEIR PAYROLLS.

>> Woodruff: JOEL NAROFF, 15 SECONDS. ANYTHING POSITIVE IN HERE?

>> YES, THE BUSINESS SECTOR HAS BEEN CREATING MORE JOBS THAN EXPECTED. AS LISA POINTED OUT, THIS RECOVERY WAS LIKELY TO BE SOFTER THAN WE HOPED FOR BECAUSE OF THE PROBLEMS IN HOUSING AND IN CREDIT. AND SO IF WE LOOK AT IT, WE'RE DOING BETTER THAN EXPECTED, NOT GOOD ENOUGH. WE'RE NOT GETTING 300,000 JOBS A MONTH. BUT IT'S GOING TO PICK UP AS BUSINESSES SEE THAT THIS ECONOMY CAN EXPAND. SO I'M HOPEFUL FOR THE SECOND HALF OF THIS YEAR.

>> Woodruff: ALL RIGHT, WELL I WAS HOPING WE WOULDN'T LEAVE EVERYBODY ON AN ENTIRELY BLEAK NOTE SO THANK YOU FOR THAT. JOEL NAROFF, LISA LYNCH, WE THANK YOU BOTH.

>> THANKS.

>> Lehrer: STILL TO COME ON THE NEWSHOUR: ARAB LEADERS UNDER FIRE; FINANCIAL LITERACY FOR PRESCHOOLERS; AND SHIELDS AND BROOKS. BUT FIRST, THE OTHER NEWS OF THE DAY. HERE'S KWAME HOLMAN.

>> Holman: THE JOBS REPORT REINFORCED WALL STREET'S WORRIES ABOUT THE ECONOMY. THE DOW JONES INDUSTRIAL AVERAGE LOST 97 POINTS TO CLOSE AT 12,151. THE NASDAQ FELL 40 POINTS TO CLOSE AT 2,732. FOR THE WEEK, BOTH THE DOW AND THE NASDAQ LOST MORE THAN 2%. A FEDERAL GRAND JURY IN NORTH CAROLINA HAS INDICTED TWO-TIME DEMOCRATIC PRESIDENTIAL CANDIDATE JOHN EDWARDS. THE GOVERNMENT CHARGES HE ILLEGALLY USED CAMPAIGN DONATIONS-- MORE THAN $925,000-- TO HELP HIDE HIS EXTRA-MARITAL AFFAIR AND OUT-OF-WEDLOCK BABY. EDWARDS PLEADED NOT GUILTY AT A HEARING TODAY IN WINSTON-SALEM, NORTH CAROLINA, AND PROFESSED HIS INNOCENCE AFTERWARD.

>> THERE'S NO QUESTION THAT I'VE DONE WRONG, AND I TAKE FULL RESPONSIBILITY FOR HAVING DONE WRONG. AND I WILL REGRET FOR THE REST OF MY LIFE THE PAIN AND THE HARM THAT I HAVE CAUSED TO OTHERS. BUT I DID NOT BREAK THE LAW, AND I NEVER, EVER THOUGHT I WAS BREAKING THE LAW.

>> Holman: EDWARDS'S LAWYERS SAY THE FUNDS IN QUESTION WERE NOT CAMPAIGN DONATIONS AND WERE NOT USED TO PROTECT HIS 2008 CAMPAIGN. INSTEAD, THEY SAY HE WAS TRYING TO HIDE THE AFFAIR FROM HIS WIFE, ELIZABETH. SHE DIED OF CANCER LAST YEAR. THE FORMER BOSNIAN SERB GENERAL RATKO MLADIC WAS ARRAIGNED TODAY AT A U.N. WAR CRIMES TRIBUNAL IN THE NETHERLANDS. HE WAS GRANTED UNTIL NEXT MONTH TO ENTER HIS PLEAS. HE'S CHARGED WITH GENOCIDE AND MASS MURDER IN THE BOSNIAN CIVIL WAR OF THE EARLY 1990s. HE CALLED THE INDICTMENT "OBNOXIOUS". WE HAVE A REPORT FROM BILL NEELY OF INDEPENDENT TELEVISION NEWS.

>> Reporter: ONCE, HIS ORDERS SPELLED DEATH. THE VERY SIGHT OF HIM COULD TERRIFY. RATKO MLADIC IS NOW A GRAY MAN, PINNED IN COURT, HIS CLOTHES AS CLOSE TO A UNIFORM AS HE COULD FIND. A SALUTE TO THE JUDGE. HE SAID HE NEEDED TWO MONTHS TO READ THE CHARGES AGAINST HIM. THE JUDGE OFFERED TO READ A SHORTENED VERSION.

>> ( translated ): I DO NOT WANT TO HAVE A SINGLE LETTER OR SENTENCE OF THAT INDICTMENT READ OUT TO ME.

>> Reporter: HE DIDN'T WANT TO HEAR WHAT HE'S ACCUSED OF DOING BUT HE HAD TO-- OF KILLING NEARLY 8,000 MEN AND BOYS AT SREBRENINCA. MENTION OF THIS, AND THE TRACE OF A SMIRK CROSSED HIS FACE. THIS INFURIATED BEREAVED RELATIVES IN THE COURT. SO DID HIS FINAL WORDS OF PROUD DEFIANCE.

>> ( translated ): I DEFENDED MY COUNTRY. I AM RATKO MLADIC. I DID NOT KILL CROATS AS CROATS, AND I AM NOT KILLING ANYONE EITHER IN LIBYA OR IN AFRICA. I WAS JUST DEFENDING MY COUNTRY.

>> Reporter: "THE WHOLE WORLD KNOWS WHO I AM," HE SAID. AND THEN TO THE WIDOWS OF THE MURDERED, A DIRECT SIGN AND A WAVE. HE WAS FEET FROM THEM, PROTECTED BY BULLET-PROOF GLASS.

>> Holman: IT'S EXPECTED THE MLADIC TRIAL COULD LAST SEVERAL YEARS. THE U.N. REFUGEE AGENCY HAS CONFIRMED FINDING THE BODIES OF AT LEAST 150 PEOPLE OFF TUNISIA. THEY DROWNED THIS WEEK WHEN THEIR SHIP CAPSIZED. THE INCIDENT HAPPENED 12 MILES FROM THE KERKENNAH ISLANDS. MORE THAN 800 PEOPLE WERE ON THE VESSEL, FLEEING THE VIOLENCE IN LIBYA. NEARLY 600 OF THE REFUGEES SURVIVED. MORE THAN 100 OTHERS STILL ARE MISSING. THE U.S. HOUSE TODAY REBUKED PRESIDENT OBAMA FOR SENDING U.S. FORCES AGAINST LIBYA WITHOUT CONGRESSIONAL APPROVAL. ALL BUT TEN REPUBLICANS, JOINED BY 45 DEMOCRATS, VOTED FOR THE NON-BINDING RESOLUTION. IT CALLED FOR THE PRESIDENT TO PROVIDE MISSION DETAILS AND COST FIGURES WITHIN TWO WEEKS. THE LAWMAKERS REJECTED A SEPARATE MEASURE. IT DEMANDED AN IMMEDIATE END TO U.S. INVOLVEMENT IN BOMBING LIBYA, AND IT SPARKED DEBATE OVER POSSIBLE FALLOUT.

>> THE NEGATIVE IMPACT WOULD BE WIDESPREAD, MR. SPEAKER. THE NEWS THAT THE U.S. HOUSE OF REPRESENTATIVES HAD MANDATED A WITHDRAWAL OF U.S. FORCES WOULD SEND A RAY OF SUNSHINE INTO THE HOLE IN WHICH QADDAFI IS CURRENTLY HIDING.

>> LET ME DISAGREE WITH THOSE OF MY COLLEAGUES WHO HAVE TALKED ABOUT WHAT A TERRIBLE MAN QADDAFI IS AS THE REASON FOR THE UNITED STATES TO BE SPENDING OUR MONEY THERE. YES, HE'S A THUG WHO OUGHT TO BE REMOVED. BUT IT CANNOT BE THAT AMERICA HAS TO BE THE 911 FOR THE WORLD AND THAT WE ARE THE ONES WHO HAVE TO RESPOND EVERYWHERE, EVERY TIME.

>> Holman: A WHITE HOUSE SPOKESMAN CALLED BOTH RESOLUTIONS "UNNECESSARY AND UNHELPFUL". NEARLY 200 MORE E. COLI INFECTIONS HAVE BEEN CONFIRMED IN GERMANY IN THE LAST TWO DAYS. THE COUNTRY'S DISEASE CONTROL CENTER REPORTED THE NEW FIGURE TODAY. THE OUTBREAK HAS INFECTED MORE THAN 1,700 PEOPLE ACROSS EUROPE, AND KILLED AT LEAST 18, MOSTLY IN GERMANY. THE SOURCE OF THE E. COLI REMAINS A MYSTERY. THE MAN WHO PLAYED MARSHAL MATT DILLON ON "GUNSMOKE" HAS DIED. JAMES ARNESS PASSED AWAY TODAY AT HIS HOME IN BRENTWOOD, CALIFORNIA. "GUNSMOKE" WENT ON THE AIR IN 1955 WITH ARNESS AS THE MARSHAL OF DODGE CITY. WHEN THE SHOW ENDED ITS RUN IN 1975, IT WAS THE LONGEST-LASTING SERIES IN TELEVISION HISTORY. THAT RECORD FINALLY WAS TIED BY "LAW AND ORDER" LAST YEAR. JAMES ARNESS WAS 88 YEARS OLD. THOSE ARE SOME OF THE DAY'S MAJOR STORIES. NOW, BACK TO JIM.

>> Lehrer: GOVERNMENTS IN THREE MIDDLE EASTERN NATIONS TRY TO PUT DOWN POPULAR UPRISINGS. JEFFREY BROWN HAS OUR UPDATE.

>> Brown: IT WAS A MAJOR ESCALATION OF THE FIGHTING IN SANAA. ROCKETS BLASTED THE PRESIDENTIAL COMPOUND IN THE YEMENI CAPITAL, WOUNDING PRESIDENT ALI ABDULLAH SALEH AND KILLING AT LEAST SIX GUARDS. SALEH WAS REPORTEDLY MOVED TO A MILITARY HOSPITAL FOR TREATMENT. BUT A GOVERNMENT SPOKESMAN SAID THE INJURIES WERE LIGHT.

>> ( translated ): HIS EXCELLENCY IS IN GOOD HEALTH. HE WILL BE WELL, GOD WILLING, IN THE NEAR FUTURE, AND HE WILL APPEAR IN FRONT OF THE PEOPLE.

>> Brown: SALEH WAS HEARD, BUT NOT SEEN, LATE TODAY IN A TAPED AUDIO ADDRESS TO HIS COUNTRYMEN. HE SALUTED HIS FORCES FIGHTING WHAT HE CALLED AN "OUTLAW GANG" UNRELATED TO THE "SO-CALLED YOUTH REVOLUTION." THE U.S. DENOUNCED WHAT IT CALLED SENSELESS VIOLENCE, AND URGED RESTRAINT, BUT THERE WAS LITTLE OF THAT IN EVIDENCE. MEMBERS OF THE HASHED TRIBE, YEMEN'S LARGEST, HAVE BEEN FIGHTING OPENLY WITH THE SALEH REGIME FOR MOST OF THE LAST TWO WEEKS. TODAY'S ROCKET ATTACK WAS THE FIRST TIME THE FIGHTERS DIRECTLY TARGETED HIS PALACE. IT FOLLOWED ASSAULTS BY GOVERNMENT FORCES THAT FLATTENED THE HOMES OF HASHED LEADERS, INCLUDING BROTHERS OF SHEIKH SADEQ AL-AHMAR, THE TRIBE'S CHIEFTAIN. ELSEWHERE IN SANAA, THOUSANDS MARCHED IN SUPPORT OF SALEH, WHO FACES NOT ONLY TRIBAL OPPONENTS, BUT PRO-REFORM PROTESTERS AND ISLAMIST MILITANTS. THE YEMENI LEADER DID AGREE IN LATE APRIL TO STEP DOWN AFTER 33 YEARS IN POWER, BUT HE HAS SINCE RENEGED ON THE DEAL THREE TIMES, MOST RECENTLY LAST WEEK. MEANWHILE, IN SYRIA, THE REGIME OF BASHAR AL-ASSAD CONTINUED ITS VIOLENT CAMPAIGN AGAINST NATIONWIDE PROTESTS. AT LEAST 34 MORE SYRIANS WERE KILLED IN THE CITY OF HAMA TODAY. THE MARCHES WERE, IN PART, TO COMMEMORATE THE BRUTAL TORTURE AND MURDER OF A 13-YEAR-OLD BOY, HAMZA AL-KHATIB, ALLEGEDLY BY SYRIAN SECURITY FORCES. HIS BADLY DISFIGURED AND MUTILATED BODY WAS RETURNED TO HIS PARENTS THIS WEEK.

>> THE TRAGEDY OF THE YOUNG BOY, HAMZA ALI AL-KHATEEB, SYMBOLIZES FOR MANY PEOPLE AROUND THE WORLD THE TOTAL COLLAPSE OF ANY EFFORT BY THE ASSAD GOVERNMENT TO WORK WITH THEIR OWN PEOPLE.

>> Brown: SECRETARY OF STATE HILLARY CLINTON WEIGHED IN YESTERDAY WITH A NEW WARNING TO THE SYRIAN LEADER.

>> IF HE CANNOT END THE VIOLENCE AGAINST HIS OWN PEOPLE, TAKE MEANINGFUL STEPS TO START A PROCESS OF REFORM, THEN HE NEEDS TO GET OUT OF THE WAY.

>> Brown: EARLIER IN THE WEEK, ASSAD PROMISED AMNESTY TO THOUSANDS OF PRISONERS ARRESTED IN THE THREE-MONTH UPRISING. BUT THERE'S BEEN NO LET-UP IN THE CAMPAIGN THAT'S KILLED MORE THAN 1,000 CIVILIANS. POLICE IN THE ISLAND KINGDOM OF BAHRAIN ALSO OPENED FIRE TODAY ON MARCHERS THERE. THEY USED TEAR GAS AND RUBBER BULLETS AGAINST PEOPLE TRYING TO GET TO PEARL SQUARE, WHERE PROTESTS BEGAN IN FEBRUARY. THE SUNNI-LED GOVERNMENT CRUSHED THE MOSTLY SHIITE UPRISING IN MARCH, BUT LIFTED ITS STATE OF EMERGENCY THIS WEEK. STILL, A HEAVY AND VISIBLE POLICE PRESENCE REMAINS ON THE STREETS. WE GET MORE ON THE UNREST THROUGHOUT THE WREEGZ FROM ROBIN WRIGHT, LONGTIME REPORTER AND AUTHOR, NOW A JOINT FELLOW AT THE U.S. INSTITUTE OF PEACE AND WOODROW WILSON INTERNATIONAL CENTER FOR SCHOLARS.

>> LET ME ASK YOU FIRST, BECAUSE AS YOU LOOK AT THE STATE OF PLAY IN THESE THREE NATIONS, IS THERE A THREAD, A COMMON DENOMINATOR, SOME MONTHS INTO WHAT WE'VE BEEN WATCHING UNFOLD?

>> WELL, HISTORY IS GOING TO LOOK BACK AT THIS PERIOD FOR THE COMMON DENOMINATORS, AND THAT IS THE DESIRE BY AN EXTRAORDINARY RANGE OF PEOPLE TO STAND UP TO JIR AT RICK AUTOCRATS, TO STAND UP TO EXTREMISTS, AND TO DEMAND POLITICAL OPENINGS. BUT THREE AND FOUR MONTHS INTO THE UNREST, YOU SEE DIFFERENT PATTERNS EVOLVING IN THE DIFFERENT COUNTRIES. AND YOU HAVE THE PEACEFUL EXAMPLE OF TUNISIA AND EGYPT CONTRASTED WITH THE EXTRAORDINARY-- WHAT'S BECOMING THE WAR ON--.

>> Brown: THE THREE COUNTRIES WE'RE FOCUSING ON TODAY. IF YOU LOOK AT YEMEN, FOR EXAMPLE, HOW SIGNIFICANT IS IT THAT THE OPPONENTS WERE ABLE TO REACH THE PALACE, WITH SHELLING AND WOUNDY SALEH TODAY?

>> IT'S IMPORTANT TO UNDERSTAND YEMEN HAS NOW MOVED FROM THE KIND OF PEACEFUL DEMONSTRATIONS WE SAW IN EGYPT TO MORE LIKE THE CIVIL WAR WE SAW IN LEBANON FOR 15 YEARS. IT'S NOW LESS BETWEEN PEACEFUL PROTESTERS AND THE REGIME AND MORE BETWEEN TRIBAL FACTIONS AND PEOPLE WHO WERE ONCE ALIGNED POLITICALLY BETWEEN FAMILIES, EVEN, THE SUPPORTERS OF PRESIDENT SALEH AND PARTICULARLY THE AL-AMMAR TRIBE, SO IT'S TAKING ON A WHOLE NEW DIMENSION, PARTICULARLY OVER THE LAST TWO WEEKS.

>> Brown: LET ME ASK YOU. YOU USE THE TERM "CIVIL WAR OF. WE KEEP TALKING ABOUT MOVING TOWARDS CIVIL WAR. PPA IN YOUR SENSE IS THAT WHAT IT IS OR THERE'S YOUR SENSE THAT IS WHAT IT IS BECOMING?

>> I THINK IT IS WHAT IT IS BECOMING. WE HAVE TO SAY HOW IT PLAYS OUT. THE INTERNATIONAL COMMUNITY HAS TAKEN A UNITED STAND IN SAYING PRESIDENT SALEH MUST STEP DOWN AND THAT'S DPRINCH A PLACE LIKE LEBON, FOR EXAMPLE.

>> Brown: AND WHAT WE SAW EARLIER YOUTHFUL OPPONENTS, THAT'S NOT-- THEY'VE BEEN PUSHED ASIDE?

>> THEY'VE BEEN PUSHED ASIDE BUT THEY'RE STILL PLAYERS. THEY ARE NOT THE DOMINENT FORCES FIGHTING EACH OTHER, HOWEVER, SO THE DYNAMICS HAVE SHIFTED TO, INSTEAD OF TWO PARTIES, YOU NOW HAVE THREE, AND THOSE WHO ARE ON THE MARGINS AS OF LAST TWO WEEKS THE PEACEFUL STUDENT PROTESTERS.

>> Brown: IF WE MOVE TO SYRIA AND SAID THE DEMONSTRATION AND THE RESPONSE ONLY GROW. HOW FRAGILE DO YOU THINK THE SITUATION IS THERE AND HOW-- AGAIN, THESE MONTHS IN, HOW IMPORTANT NOW IS SYRIA AS YOU WATCH THE VARIOUS COUNTRIES?

>> SYRIA, IN MANY WAYS, OF THE COUNTRIES NOW EXPERIENCING UNREST, IS THE MOST IMPORTANT BECAUSE--.

>> Brown: THE MOST IMPORTANT YOU THINK?

>> BECAUSE OF ITS INFLUENCE, WHETHER IT'S ON THE PEACE PROCESS WITH ISRAEL, ON ITS INFLUENCE IN COUNTRIES LIKE LEBANON. IT BORDERS TURKEY, IRAQ, JORDAN-- THAT IT IS-- ITS POSITION, ITS POLITICAL MIGHT, AND THE FACT THAT IT IS KIND OF LAST, BIG SOCIALIST REGIME AND ALLIED SO CLOSELY TO IRAN GIVES IT HEFT EVEN THOUGH IT DOESN'T HAVE OIL RESOURCES. SO WHAT PLAYS OUT IN SYRIA IS IS CRITICALLY IMPORTANT. IT-- THIS IS A PLACE THAT HAS STUNNED PEOPLE THE MOST BECAUSE THE ASSAD DYNASTY HAS BEEN IN POWER NOW FOR FOUR DECADES, AND IT IS A POLICE STATE. IT IS AS BRUTAL AND BRITTLE A REGIME AS YOU'LL FIND ANY PLACE IN THE WORLD. AND IT HAS MANAGED STILL TO USE ITS MILITARY BUT NOT TO PUT DOWN THE PEOPLE WHO ARE TURNING OUT IN LARGER AND LARGER NUMBERS.

>> Brown: I MEAN, WE HEARD SECRETARY CLINTON U.S. AND WESTERN NATIONS STILL HAVE A WARINESS ABOUT WHAT EXACTLY THEY CAN DO, I GUESS.

>> IT'S INTERESTING THE LANGUAGE FROM SECRETARY CLINTON LOOKS INCREASINGLY LIKE THE LANGUAGE THEY USED IN RUN-UP TO PRESIDENT MUBARAK AND HIS DEMISE. SAYING HE MUST MOVE ASIDE IF HE CAN'T REFORM. THERE WAS HOPE THAT PRESIDENT ASSAD, A YOUNGER GENERATION LEADER, MIGHT BE ABLE TO DEAL WITH REFORM, AND INTRODUCE THE KINDS OF OPENINGS THAT PEOPLE ARE DEMANDING, AND HE HASN'T. AND SO THE OUTSIDE WORLD IS BECOMING INCREASINGLY TOUGH.

>> Brown: NOW, MOVING TO BAHRAIN NOW. BECAUSE WE MENTIONED THE PROTESTS, BUT ONE THING WE DIDN'T MENTION WAS THERE WAS AN ANNOUNCEMENT TODAY THE FORMULA 1 GRAND PRIX, THE RACE, WHICH HAD BEEN PUT ASIDE BECAUSE OF THE UNREST, IS NOW GOING TO BE REINSTATED LATER. SO ON THE ONE HAND YOU HAVE THE PROTESTS. ON THE OTHER HAND-- IT'S A LITTLE BIT SURREAL TO PUT THOSE TOGETHER.

>> BAHRAIN IS THE SMALLEST OF THE COUNTRIES FACING UNREST, A MILLION CITIZENS. THEY HAVE MANY NONNATIONALS. A VERY SMALL ISLAND IN THE PERSIAN GULF, AND YET IT HAS BECOME MUCH BIGGER THAN ITS SIZE OR ITS POPULATION BECAUSE IT BRINGS IN THE ISSUE OF IRAN TO, WHAT DEGREE IS IRAN MEDDLING. I THINK IT'S A CANARD BUT THERE ARE MANY USING THAT AS JUSTIFICATION FOR A CRACKDOWN.

>> Brown: AND SOULDY ARABIA.

>> SAUDI ARABIA ON THE OTHER HAND, AND THE WHILE ISSUE OF OIL. THE UNITED STATES HAS THE FIFTH FLEET THERE. BAHRAIN HAS MANAGED THROUGH BRUTAL FORCE TO REPRESS THE REBELLION. IT'S SURPRISING THAT PEOPLE ARE STILL WILLING TO COME OUT. SO IT IS IN STARK CONTRAST TO SYRIA AND YEMEN. BUT THE FACT THAT THEY'VE MADE THIS DECISION SHOWS JUST HOW MUCH FORCE HAS PLAYED IN QUIETING, AND THAT'S WHAT, OF COURSE, WHAT OTHER REGIMES ARE HOPING FOR, THAT THEY CAN RETURN CALM SO THAT THEY CAN BRING BACK WHETHER IT'S FOREIGN INVESTMENT, FOREIGN-- INTERNATIONAL RACES OR TOURISTS.

>> Brown: OR GRAND PRIX RACING OF ALL THINGS, RIGHT. OKAY, WELL, THANKS FOR THE UPDATE. ROBIN WRIGHT, THANKS A LOT.

>> Woodruff: NOW, TEACHING KIDS ABOUT MONEY. ECONOMICS CORRESPONDENT PAUL SOLMAN HAS OUR STORY. IT'S PART OF HIS ON-GOING REPORTING, "MAKING SENSE OF FINANCIAL NEWS".

>> HI, WELCOME TO "SESAME STREET." LOOK WHAT ELMO HAS.

>> Reporter: A NEW FINANCIAL LITERACY INITIATIVE FROM "SESAME STREET." "MONEY TIPS FOR TOTS" STARTING WITH SAVINGS. ♪ WE SAVE. IT'S OKAY. WHAT A SAVE, YEAH, ELMO'S GONNA SAVE ♪.

>> Reporter: IN ELMO'S GONNA SAVE, THAT WOULD DISTINGUISH HIM FROM A HOST OF GROWN-UP MINNERS, MORE THAN A THIRD OF WHOM HAVE A MERE $1,000 OR LESS SOCKED AWAY. IN TOTAL. 29% OF US REPORT NOT HAVING SAVED ONE PENNY FOR RETIREMENT. RELATED, PERHAPS, WE CAN'T CALCULATE OUR WAY OUT OF A PAPER BAG. GET THIS-- AMERICANS 50 OR OLDER WERE ASKED, "SUPPOSE YOU HAD $100 IN A SAVINGS ACCOUNT, AND THE INTEREST RATE WAS 2% PER YEAR. AFTER FIVE YEARS, WOULD YOU HAVE MORE THAN $102. EXACTLY 102, OR LESS THAN $10 TWO? 2% INTEREST. FIVE YEARS. WHAT PORTION OF THE COUNTRY DIDN'T KNOW THAT MORE WAS THE BLINDINGLY RIGHT ANSWER? HALF. IT MIGHT EXPLAIN WHY 1.5 MILLION AMERICANS FILED FOR BANKRUPTCY LAST YEAR ALONE. NO CLUE, NO CUSHION.

>> THE TOUGHEST CONCEPT IS REALLY THE IDEA OF STARTING EARLY AROUND FINANCIAL EDUCATION. AND PARTICULARLY, THE CONCEPT OF SAVING.

>> Reporter: BECAUSE, SAYS JEANETTE BETENCOURT OF SESAME WORKSHOP, SAVING IS SELF-CONTROLLED WITH WHICH WE ALL WRESTLE.

>> SO THE WAY YOU CAN START WITH YOUNG CHILDREN IS IDENTIFY SOMETHING THAT THEY WOULD WANT AND SAYING THAT YOU CAN'T HAVE IT IMMEDIATELY BECAUSE IT'S SOMETHING THAT WE HAVE TO BUILD TOWARD.

>> Reporter: IN ELMO'S CASE, THAT SOMETHING IS A HOTLY HYPED, IRRESISTIBLE OBJECT. A STUPENDOUS BALL. ♪ STUPENDOUS BALL ♪

>> YEAH!

>> Reporter: SINCE COMMERCE ON "SESAME STREET" RUNS ON A PURELY CASH BASIS, IF YOU WANT A STUPENDOUS BALL, $5 APIECE, AND YOU'VE ONLY GOT, SAY, $1. YOU CAN'T BORROW. YOU HAVE TO SAVE UP FOR IT. TOUGH SLEDDING FOR ELMO, OR EVEN THE STREET-HARDENED GROVER, AGED SIX OR SO.

>> HOW HARD IS IT FOR YOU PERSONALLY TO SAVE INSTEAD OF SPENDING YOUR MONEY RIGHT AWAY ON SOMETHING YOU WANT?

>> WE ARE NOT BORN KNOWING THESE THINGS. NO, NO, I HAD TO LEARN THEM FROM MY FRIENDS AND MY MOMMY AND MY DADDY. THEY TAUGHT ME A LOT.

>> Reporter: SOMETIMES PEOPLE DO THIS TEST WITH KIDS YOUR AGE. THEY SAY, "I'LL GIVE YOU A MARSHMALLOW NOW, OR IF YOU WAIT A LITTLE WHILE, I'LL GIVE YOU TWO MARSHMALLOWS, BUT ONLY IF YOU WAIT."

>> TWO MARSHMALLOWS.

>> Reporter: WOULD IT BE HARD TO WAIT?

>> IT WOULD BE EVERYWHERE HARD TO WAIT, YES. YOU KNOW, YOU KNOW, JUST LOOKING AT THIS MARSHMALLOW RIGHT NOW MAKES MEANTIME THAT MARSHMALLOW RIGHT NOW.

>> Reporter: LEAVING ASIDE THE DUBIOUS CHARLES OF THE FOODSTUFF THE MARSHMALLOW TEST IS ACTUALLY AMONG THE MOST FAMOUS AND REPLICATED IN THE HISTORY OF PSYCHOLOGY.

>> THERE'S A MARSHMALLOW. YOU CAN EITHER WAIT AND I'LL BRING YOU BACK ANOTHER ONE, YOU CAN HAVE TWO, OR YOU CAN EAT IT NOW.

>> I'LL SAVE IT.

>> OKAY, I'LL BE BACK ROPER THE SELF-CONTROL EXPERIMENT WAS FIRST RUN ON 600 PRESCHOOLERS AT STANFORD UNIVERSITY IN 1972. MOST WOLFED DOWN THE LITTLE PILLOW OF PLEASURE. BUT ONE-THIRD DELAYED GRATIFICATION LONG ENOUGH TO GET ANOTHER.

>> YOU GET TWO! YOU CAN EAT IT!

>> Reporter: FOLLOW-UP RESEARCH FOUND--

>> YOU CAN EAT IT NOW!

>> Reporter: THAT THE MORE TEMPERATE TYPES HAD SIRG S.A.T. SCORES AS TEENS. MORE RECENTLY, AN ONGOING STUDY OF 1,000 RANDOM NEW ZEALANDERS FROM BIRTH TO NOW THEIR 30s YIELDS EVEN STRONGER FINDINGS THESE CHILDREN HAVE BECOME THE THOUSAND MOST STUDIED PEOPLE IN THE WORLD.

>> Reporter: STUNNINGLY, THEIR SELF-CONTROL, OR LACK OF IT, BY AGE THREE, HAS ALMOST PERFECTLY PREDICTED THEIR FUTURE PROSPERITY. DUKE PROFESSOR TERRY MOFFITT:

>> SO THE CHILDREN WHO HAVE VERY LITTLE SELF-CONTROL ARE IN DEEP FINANCIAL TROUBLE BY THEIR 30s. THOSE WHO ARE VERY HIGH SELF-CONTROL ARE DOING VERY WELL. THEY'RE ENTREPRENEURS. THEY'VE GOT RETIREMENT ACCOUNTS. THEY OWN THEIR OWN HOMES, AND THOSE WHO ARE AVERAGE SELF-CONTROL ARE RIGHT IN THE MIDDLE.

>> Reporter: DOES IT CORRELATE WITH THEIR INITIAL SOCIOECONOMIC STATUS?

>> SELF-CONTROL IS CLEARLY MORE IMPORTANT THAN THE SOCIOECONOMIC STATUS OF ONE'S FAMILY, THE AMOUNT OF MONEY THAT ONE HAD GROWING UP, AND IT'S MORE IMPORTANT THAN SCHOOL GRADES, ACADEMIC ACHIEVEMENT, AND IT'S MORE IMPORTANT THAN SCORES ON INTELLIGENCE TESTS.

>> Reporter: SAY FELLOW DUKE PROFESSOR DAN ARIELLY, THERE IS NO MORE CRUCIAL STRUGGLE THAN THE RATIONAL, LONG-TERM SELF AGAINST ALL THE COMPETING, SHORT PLAYERS WITHIN.

>> SAVING GOOD FOR THE FUTURE. RIGHT NOW, I WANT SOMETHING ELSE. EXERCISING, GOOD FOR THE FUTURE. RIGHT NOW I WANT TO EAT ANOTHER SLICE OF PIZZA. THINK ABOUT SEX. YOU CAN THINK ABOUT THE AMOUNT OF POLITICAL LEADERS WHO HAVE TAKEN DRAMATIC FALLS OVER IMMEDIATE TEMPTATIONS.

>> Reporter: AS FOR "SESAME STREET"'S NEW PUSH....

>> THE IDEA OF GETTING KIDS TO GO INTO THE HABIT OF SAVING EARLIER THAN WE CURRENTLY DO AND THAT YOU'RE GIVING THEM SOME RULES OF THUMB ABOUT WHAT'S APPROPRIATE IS INCREDIBLY IMPORTANT.

>> Reporter: ARIELLY HAS HIS OWN RULES. HE GIVES HIS KIDS OLD-FASHIONED ALLOWANCES WITH SPENDING CONSTRAINT SINCE THE KIDS ARE EXPOSED TO THE USUAL COME-ON OF AMERICAN CULTURE.

>> WHAT'S YOUR FAVORITE TV SHOW?

>> MY FAVORITE TV SHOW. "POWER RANGERS."

>> Reporter: ARIELLY TRIES TO COUNTER THE CULTURE BY NURTURING SELF-CONTROL.

>> WHAT WOULD YOU RATHER DO, WATCH ONE SHOW NOW AND THEN GO AND DO ALL YOUR HOMEWORK, OR DO ALL YOUR HOMEWORK NOW AND LATER GET TWO SHOWS? "POWER RANGERS."

>> TWO SHOWS LATER.

>> OKAY, THAT'S YOUR CHOICE. GO AND DO YOUR HOMEWORK NOW.

>> Reporter: EIGHT-YEAR-OLD AMET ABOUT KBROFR'S AGE, TROTS OFF. IT'S NETTA'S TURN. AT FOUR, SHE'S ABOUT ELMO'S VINTAGE.

>> SO WHAT WOULD YOU RATHER DO, PLAY FOR 10 MINUTES NOW AND THEN GO AND CLEAN YOUR ROOM, OR TO CLEAN YOUR ROOM FIRST AND THEN COME AND PLAY FOR 20 MINUTES?

>> PLAY FOR A LONG TIME.

>> Reporter: A DAUGHTER OF DAN ARIELLY, NETTA HAS ALREADY LEARNED THE KEY LESSON.

>> OKAY, SO GO AND CLEAN NOW. COME ON. GO AND CLEAN. YOU SAID THIS IS WHAT YOU PREFER.

>> NO.

>> AH, SO HERE WE HAVE. THIS IS NOT A HYPOTHETICAL. WOUNS MAKE IT CONCRETE.

>> GENERALLY A PROBLEM, SELF-CONTROL SOUNDS LOOK A GOOD IDEA, EVEN TO KIDS IN PRINCIPLE, WHEN YOU HAVE TO ASK THEM, IT'S A BIT MORE DIFFICULT.

>> Reporter: DIFFICULT BUT ESSENTIAL SAYS PSYCHOLOGIST TERRY MOFFITT.

>> THIS GENERATION OF CHILDREN IS GOING TO LIVE TO BE, ON AVERAGE, FAR BEYOND 100 YEARS OLD. AND THAT MEANS IT'S ABSOLUTELY ESSENTIAL FOR EVERY CHILD TO LEARN HOW TO DEVELOP SELF-CONTROL SKILLS SO THAT THEY CAN AVOID DEPENDENCY, POOR HEALTH, AND POVERTY IN OLD AGE.

>> Reporter: AND AVOID THE SIREN SONGS OF THE WORLD'S INCREASINGLY CRAFTY PITCHMEN.

>> THE PEOPLE WHO ARE 50 NOW WILL HAVE AN EVEN HARDER TIME DEALING WITH TEMPTATION THAN AND YOU I ARE.

>> Reporter: YOU THINK?

>> YEAH. I'M CERTAIN. BECAUSE AS TECHNOLOGY DEVELOPS, WHAT IS TECHNOLOGY GOING TO DO? TECHNOLOGY IS GOING TO HELP THEM DELAY GRATIFICATION OR HAVE MORE THINGS TO SPEND THEIR MONEY ON NOW?

>> Reporter: SO ARE THE BRAINS OF MOST OF US NOW OVER-MATCHED BY THE BRAINS OF SOME VERY ABLE PEOPLE WHO HAVE AN INCENTIVE TO GET US TO ACT IN THE HERE AND NOW?

>> SO. THERE'S REALLY A VERY STRONG IMBALANCE ABOUT HOW MUCH WE CAN TEMPT PEOPLE AND HOW MUCH PEOPLE CAN ACTUALLY RESIST TEMPTATION.

>> Reporter: AND THAT, OF COURSE IS WHERE "SESAME STREET" COMES IN. ELMO WORKS VARIOUS JOBS TO COME UP WITH HIS $5 FOR THE STUPENDOUS BALL.

>> SAVINGS IS NOT A NATURAL CONCEPT. IT'S SOMETHING WE ALL HAVE TO LEARN. IF I'M A PRESCHOOLER, I NEED EXAMPLES ON HOW TO WORK TOWARDS THAT SAVING. YOU MODEL IT. YOU SHOW THEM. AND YOU DO IT DURING YOUR EVERYDAY EXPERIENCES AS WELL.

>> Reporter: IN THE END, ELMO EARNS ITS FIVE BUCKS. BUT THEN SHARES A DOLLAR WITH HIS LITERALLY IRREPRESSIBLE PAL COOKIE MONSTER.

>> ME NO HAVE COOKIE.

>> Reporter: FOR MORE THAN 40 YEARS, AN ICON OF EXCESS--

>> ME REALLY WANT COOKIE!

>> Reporter: REMINDING US THAT THOUGH RESTRAINT MAY BE THE KEY TO PROSPERITY--

>> $1 FOR A COOKIE.

>> Reporter: ...FINANCIAL AND OTHERWISE, IT'S A DAUNTING CHALLENGE FOR MUPPET AND MAN ALIKE.

>> ELMO, THAT WAS REALLY A NICE THING YOU DID.

>> Lehrer: AND TO THE ANALYSIS OF SHIELDS AND BROOKS-- SYNDICATED COLUMNIST MARK SHIELDS, "NEW YORK TIMES" COLUMNIST DAVID BROOKS. MARK, HOW DO YOU READ THE POLITICS OF THESE BAD JOB NUMBERS TODAY?

>> THEY'RE NOT DISAPPOINTING JIM-- THEY'RE DISCOURAGING. THESE-- EVERYBODY KNEW, ECONOMISTS AGREED, THIS WAS A RECOVERY, AND NOW THERE'S A SERIOUS QUESTION ABOUT THAT. ANY TIME THERE'S OPEN SPECULATION ABOUT WHETHER THE POSSIBILITY, EVEN, OF A DOUBLE-DIP RECESSION, THAT'S LOATHE TO CONSUMER CONFIDENCE, WHICH IS KEY TO OUR ECONOMIC WELL-BEING, MOST DEVASTATING FIG TOWER ME IS THIS-- THAT 45% OF THE UNEMPLOYED AMERICANS, 13.2 MILLION MINNERS WHO ARE UNEMPLOYED-- 45% OF THEM HAVE BEEN UNEMPLOYED FOR AT LEAST 27 WEEKS. THAT'S-- THAT'S THE HIGHEST TOTAL EVER RECORDED, THE HIGHEST PREVIOUSLY WAS 1983 WHEN ONE-QUARTER OF THOSE HAD BEEN OUT THAT LONG. THESE ARE PEOPLE FOR WHOM YOU WONDER ARE JOBS EVER COMING BACK.

>> Lehrer: WHAT DO YOU THINK, DAVID?

>> I THINK IT'S ALSO GOING TO AFFECT THE PSYCHOLOGY. I SAW A CHART WHEN THEY ASKED PEOPLE OVER DECADES HOW BIG DO YOU THINK YOUR RAISE WILL BE? IN THE 80s IT WAS 6%, IN THE 90s 3%, AND NOW IT'S DOWN TO 1%. SO PEOPLE EVEN WITH JOBS THEY WANT AREN'T EXPECTING THAT MUCH. I THINK IT WIDEPS THE SCOPE IF WE DO HAVE, MAYBE NOT A DOUBLE-DIP BUT A LONG PERIOD OF SLOW JOB GROWTH. PEOPLE ARE VERY DISCOURAGED. PEOPLE ARE UPSET ABOUT INSTITUTIONS AND THAT MEANS THEY COULD GO ANY WHICH WAY. I DON'T KNOW HOW THEY WILL REACT IF THERE IS THIS PERIOD OF LONG, SLOW GROWTH, THERE WILL BE DISCOURAGEMENT AND DEPRESSION AND A POSSIBLE REACTION NONE OF US CAN PREDICT.

>> Lehrer: THE REPUBLICAN LEADERSHIP DIDN'T DIRECTLY BLAME PRESIDENT OBAMA BUT CAME PRETTY CLOSE. THAT'S EXPECTED, IS IT NOT?

>> THAT'S THEIR CAMPAIGN. ROMNEY HAD A SLOGAN WHICH WILL BE A SLOGAN WE WILL PROBABLY HEAR THE NEXT YEAR AND A HALF. "HE INHERITED A BAD ECONOMY AND MADE IT WORSE" AND OBAMA'S COUNTER WILL HAVE TO BE, IF IT STAYS LIKE THIS, IT WOULD HAVE BEEN WORSE WITHOUT ME. AND THAT'S A TERRIBLE WAY TO RUN A CAMPAIGN, "IT WOULD HAVE BEEN WORSE WITHOUT ME." I THINK IN THE REPUBLICAN RACE, IF THERE IS A SLOW RECESSION IT HELPS MITT ROMNEY. THIS IS SORT OF IN HIS WHEEL HOUSE. IF THE FOCUS IS ON JOB, LESS THAN HEALTH CARE, WHICH IS HIS WEAKNESS. AND ONE OTHER FACTOR I THINK THIS WILL INFLUENCE US OVER THE NEXT SEVERAL WEEKS-- I THINK IT WILL MAKE IT MUCH HARDER TO HAVE A DEAL ON A DEBT CEILING BECAUSE I THINK IN A WEAK RECESSION, DEMOCRATS AND OTHERS ARE GOING TO BE VERY, VERY HESITANT TO CUT SPENDING. THEY'LL SAY WE NEED THE SPENDING TO SORT OF PUMP THE-- PRIME THE PUMP, AND SO THAT WILL-- THAT'S ANOTHER EFFECT.

>> Lehrer: DO YOU AGREE WITH THAT, IT WILL BE-- THE DEMOCRATS ARE GOING TO HAVE PROBLEMS WITH THIS FROM A PSYCHOLOGICAL STANDPOINT, BUT THEY'RE ALSO GOING TO HAVE A REALITY PROBLEM, ARE THEY NOT?

>> A REALITY PROBLEM. HISTORICALLY, WITH NUMBERS LIKE, THIS THE DEMOCRATIC RESPONSE WOULD BE, THIS REALLY PROVES WE NEED TO HAVE SOME STIMULUS SPENDING, DEFICIT SPENDING. THE DEBATE--.

>> Lehrer: CASH FOR CLURCHGERS AGAIN.

>> WELL, WHY NOT NATIONAL COMPETITIVENESS, NATIONAL SECURITY. WE KNOW THAT OUR BRIDGES AND OUR ROADS AND OUR HIGHWAYS AND OUR AIRPORTS NEED THIS WORK. I MEAN, IT WOULD BE A NATURAL SORT OF FITTING INTO AMERICA'S COMPETITIVENESS AND ALL THE REST OF IT. BUT THERE ISN'T THE POLITICAL WILL, AND THERE DOESN'T SEEM TO BE THE POLITICAL BELIEF, A CONVICTION ON THE PART OF THE DEMOCRATS AND THE PART OF THE REPUBLICANS-- THEIR RESPONSE IS, "THIS PROVES WE HAVE TO CUT SPENDING MORE." WHICH, YOU KNOW, IS COUNTER-INTUITIVE TO MANY OF US WHO BELIEVE THAT THE GOVERNMENT HAS A ROLE AS STIMULATING AGENT AT TIMES LIKE THIS. BUT THERE'S NO QUESTION, I THINK IT MAKES THE CHANCES OF A DEAL LESS, AND-- BUT I THINK-- THE RESULT OF THE 26th DISTRICT IN NEW YORK LAST WEEK, WHERE MEDICARE WAS THE ISSUE, AND THE DEMOCRATS FELT THAT IT WORKED TO THEIR AGENT. AND TO THE REPUBLICANS' DISADVANTAGE, AND REPUBLICANS FELT THE SAME THING. SO I THINK THE CHANCES OF A GRAND DEAL WERE PROBABLY HURT BY THAT AS WELL SDPLEER WHAT ABOUT DAVID'S POINT THAT THE OBAMA RETORT ON THIS IS GOING TO BE, "WELL, THINGS ARE BAD. THEY WOULD HAVE BEEN WORSE IF I HADN'T DONE WHAT I DID." THAT'S-- DO YOU AGREE WITH DAVID THAT'S A HARD SELL?

>> IT'S A NEXT-TO-IMPOSSIBLE SELL. IT IS VERY DIFFICULT. LESS ELEGANTLY IT WAS PUT BY BARNEY FRANK EARLIER THAT IT'S TOUGH TO RUN FOR RELOCKS THINGS WOULD HAVE SUCKED WORSE IF WE HADN'T BEEN THERE. THAT'S REALLY-- IT'S JUST IMPOSSIBLE. AND WHAT'S MISSING FROM THIS CAMPAIGN-- AND I HEARD MITT ROMNEY YESTERDAY, AND I THINK, IN MANY RESPECTS, THIS IS TAILOR MADE FOR HIM. YOU'RE NOT TALK ABOUT SOCIAL AND CULTURAL ISSUES AND YOU'RE NOT TALKING ABOUT HEALTH CARE ARE YOU TALKING ABOUT THE ECONOMY AND BUSINESS, AND THAT PLAYS TO THE STRENGTHS OF HIS RESUME. BUT YOU KNOW WHAT'S MISSING? THE REPUBLICANS ARE LOOKING FOR A REAGAN. THEY'RE ALWAYS LOOKING FOR A REAGAN. THAT'S FINE. THE DEMOCRATS ARE ALWAYS LOOKING FOR A KENNEDY OR A ROOSEVELT. THERE'S NO OPTIMISM, THERE REALLY ISN'T, IN EITHER PARTY. THAT IS MISSING. WHATEVER YOU SAY ABOUT RONALD REAGAN OR JACK KENNEDY OR BILL CLINTON, THEY PROJECTED ALMOST A CONTAGIOUS OPTIMISM. MAYBE IT'S JUST BOWING TO REALITY. BUT DON'T YOU THINK IT'S MISSING?

>> I DO THINK IT'S MISSING. I SAW TIM PAWLENTY. I THOUGHT HE HAD A VERY FINE ROLLED OUT AND HAD A VIDEO TO LAUNCH HIS CAMPAIGN, IT WAS BLACK AND WHITE. THEY HAVE TO COME UP WITH THAT. BUT, YOU KNOW, A COUPLE THINGS-- ONE IS NEITHER PARTY REALLY HAS AN AGENDA, A GROWTH AGENDA. AND THE REPUBLICANS SAY IF WE CUT SPENDING, CUT TAXES, DO TAX REFORM THAT WILL CREATE GROWTH. BUT THAT'S SORT OF MACRO GROWTH. AND ON THE PRESIDENT'S SIDE, YOU KNOW, HE SAYS, YOU KNOW, WE'VE GOT THESE TERRIBLE ECONOMIC PROBLEMS. WE HAVE MIDDLE-CLASS STAGNATION. I'M GOING TO OFFER YOU SOME SOLAR PANELS AND LIGHT RAIL. THERE'S JUST A DISJUNCTION BETWEEN THE SIZE OF THE PROBLEM AND THE SCOPE OF THE SOLUTIONS. AND SO, I DO THINK THERE'S SORT OF NO BIG PLANS OUT THERE. AND WE'RE PROBABLY-- CERTAINLY GOING TO RUN INTO A VERY TRADITIONAL CAMPAIGN WHERE REPUBLICANS ARE GOING TO SAY, LET'S GET GOVERNMENT OUT OF THE WAY. AND DEMOCRATS ARE GOING TO SAY LET'S INVEST IN BASIC RESEARCH AND LIGHT RAIL AND SMART ENERGY.

>> Lehrer: YOU JUST HEARD IT.

>> IT'S A TRADITIONAL CAMPAIGN. I WOULDN'T SAY IT'S PARTICULARLY NOVEL SO PEOPLE WILL BE FACED WITH VERY ORTHODOX CHOICES.

>> Lehrer: FIT MITT ROMNEY INTO THAT.

>> ROMNEY IS RUNNING A VERY ORTHODOX CAMPAIGN. THAT OBAMA IS ENDANGERING CAPITALISM, HE WANTS TO TAKE US INTO A MORE EUROPEAN DIRECTION, A REPUBLICAN TALKING POINT AND I'M GOING TO GET GOVERNMENT OUT OF THE WAY. THAT'S FINE. THAT IS REPUBLICAN GOSPEL. BUT IF YOU LOOK AT THE REPUBLICANS WHO ACTUALLY WON, GEORGE BUSH HAD COMPASSIONATE CONSERVATISM. IT WAS A LITTLE DIFFERENT. JOHN McCAIN WAS A LITTLE DIFFERENT. THERE WERE SOME SORT OF IDEOLOGICAL WRINKLES THERE. THIS YEAR, I THINK IN BOTH PARTIES, WE'LL SEE ABSOLUTELY NO WRINKLES. IT WILL BE A VERY CLASSIC RACE, AND THE REPUBLICANS WILL SAY THAT GUY MESSED UP. WE'RE NOT GOING TO OFFEND ANYBODY. WE'RE JUST GOING TO TRY TO GET GOVERNMENT OUT OF THE WAY.

>> Lehrer: YES, I WAS GOING TO MENTION SARAH PALIN.

>> SURE. LET'S FIRST ADDRESS MITT ROMNEY. MITT ROMNEY IS A PRAGMATIST BUT RUNNING IN A PARTY OF TRUE BELIEVERS. HE'S A PRAGMATIC CHOICE IN MANY RESPECTS. HE'S BAIN GOVERNOR, A BUSINESS EXECUTIVE, CERTAINLY QUALIFICATIONS THAT VOTERS LIKE. AND AT TIMES WHEN THE ECONOMY IS THE ONLY ISSUE OR THE DOMINANT, TRANSCENDENT ISSUE, NOOSE HIS AREA OF GREATEST STRENGTH. HE'S ALSO A CANDIDATE, JIM, WHO DOES NOT INSPIRE GREAT AN NOST. HE'S NOT A POLARIZING CANDIDATE. HE DOES NOT INSPIRE GREAT ENTHUSIASM, EITHER.

>> Lehrer: HE'S NOT AN EMOTIONAL CANDIDATE.

>> BUT SARAH PALIN, 40%, ACCORDING TO A SURVEY OF REPUBLICANS, 40% WOULD NOT VOTE FOR HER. NOW SHE HAS A FAR MORE ENTHUSIASTIC CORE CONSTITUENCY THAN MITT ROMNEY HAS. THE OTHER THING MITT ROMNEY HAS GOING FOR HIM AND LET'S NOT LOOK IT OVER WITH, A GREAT REPUBLICAN LEADER SAID THERE ARE TWO THINGS THAT MATTER IN POLITICS, THE FIRST IS MONEY AND I CAN'T REMEMBER THE SECOND. AND MITT ROMNEY HAS THE ABILITY TO RAISE MONEY. HE RAISED $10 MILLION IN ONE DAY. HE WILL HAVE ENOUGH MONEY TO RUN A FIRST-RATE CAMPAIGN.

>> HE HAS SOME VERY SERIOUS WEAKNESSES. SUPPORTING HEALTH CARE. A LOT OF REPUBLICANS SAY WE DON'T KNOW WHAT THE ECONOMY WILL BE LIKE BUT THE ONE ISSUE WE HAVE IS HEALTH CARE AND MITT ROMNEY SORT OF NEGATES THAT AND YOU CAN IMAGINE AN OBAMA-ROMNEY DEBATE WHERE ROMNEY SAYS LET'S REPEAL OBAMA CARE, AND OBAMA SAYS WAIT,. THAT'S A CORE ISSUE FOR A LOT OF REPUBLICANS. THE SECOND ONE FOR A LOT OF REPUBLICANS, EYE LOT OF AMERICANS, THERE IS A LOT MORE HOSTILITY OF WALL STREET, AND BAIN CAPITAL, HE SORT OF SYMBOLIZES THAT. PEOPLE WILL USE THE FACT THAT HE SUPPORTED THE TARP, THE WALL STREET BAILOUT, SO-CALLED. THEY WILL USE THAT AGAINST HIM, AND I WOULD SAY HE DOESN'T GENERATE MUCH ENTHUSIASM AS MARK SAID. THERE'S NOT MUCH HOSTILITY BUT FOR A NOMINEE ASTONISHINGLY LITTLE ENTHUSIASM. WEAKNESSES TO GO ALONG WITH THE STRENGTHS.

>> THE PROBLEM, TO DAVID'S POINT BAIN CAPITAL WHERE HE DID MAKE HIS MONEY, OR DOES HAVE HIS BUSINESS CRED, STREET CRED IN BUSINESS, THEY WERE KNOWN FOR CLOSING DOWN COMPANIES AND DOWNSIZING. SO AT A TIME WHEN JOBS-- I THINK JOBS ARE GOING TO BE BIG OAST ISSUE RATHER THAN HEALTH CARE. HEALTH CARE IS A CORE REPUBLICAN GALVANIZING AND ORGANIZING PRINCIPLE, BUT IF YOU'RE TALKING ABOUT THE ELECTORATE AT LARGE, IT REALLY IS JOBS.

>> Lehrer: WHAT DO YOU MAKE OF SARAH PALIN'S BUS TOUR TO HISTORIC SITES?

>> UHM, SARAH PALIN HAS ENORMOUS APPEAL. SHE'S CHARISMATIC. BUT I THINK EVEN HER STRONGEST SURTS IN 2008 ACKNOWLEDGED THAT SHE WASN'T QUITE READY, IN SPITE OF HER OTHER ATTRIBUTES, POLITICAL SKILLS, FOR PRIME TIME. IT WAS JUST VERY STRAIGHTFORWARD. IF SHE WAS GOING TO BE A NATIONAL FIGURE SHE HAD TO STEEP HERSELF IN INFORMATION AND KNOWLEDGE AND POLICY. SHE HASN'T DONE THAT. SHE SPENT THE TIME IN A DIFFERENT WAY. BUT IT'S HARD TO CLER A SERIOUS POLITICAL PLAYER. I MEAN, AT THIS TIME, BECAUSE HER ROLE IS ATTACKING THE MAINSTREAM MEDIA, WHICH IS FINE. BUT AT LEAST MITT ROMNEY HAS A HEALTH CARE PLAN, AND TIM PAW LEAPTY HAS AN ECONOMIC PLAN SDPLEER YES, BUT, WHY IS HE DOING THIS BUS TOUR?

>> SHE'S IN THE MEDIA BUSINESS. SHE'S IN OUR BUSINESS EXCEPT SHE HAS A BUS. SO, I SEE NO EVIDENCE SHE'S GOING TO RUN. I THINK EVERY SECOND WE SPEND ON HER IS A SECOND OF OUR LIVES WE'LL NEVER HAVE BACK. SO IT'S SORT OF TEMPORARY EUTHANASIA. I JUST DON'T THINK SHE'S GOING TO RUN. RUDY GIULIANI MAY WELL RUN. HE'S MADE SOME SERIOUS EFFORTS. BUT SARAH PALIN, SHE'S IN THE MEDIA BUSINESS SO SHE ATTRACTS A THE LOVE ATTENTION.

>> Lehrer: ANYTHING THAT HASN'T BEEN SAID NEEDS TO BE SAID ABOUT JOHN EDWARDS?

>> JOHN EDWARDS IS ESSENTIALLY RUNNING THE SAME DEFENSE THAT BILL CLINTON DID, WHICH-- INTERESTING WITH THE SAME LAWYER GREG CRAIG, AND THAT IS WHAT I DID MAY HAVE BEEN MORALLY REPREHENSIBLE AND PROBABLY WAS BUT IT WASN'T ILLEGAL AND IT WASN'T CRIMINAL.

>> HE HAPPENS TO BE RIGHT ABOUT THAT, I THINK. CAMPAIGN DONATIONS ARE CAMPAIGN DONATIONS. GIVING MONEY OR SHOVELING MONEY TO FRIENDS OR MISTRESSES THAT'S NOT A CAMPAIGN DONATION. I THINK HE'S RIGHT ABOUT THAT.

>> Lehrer: BUT.

>> BUT THAT DOESN'T MAKE HIM MR. WONDERFUL.

>> AND HE'S TRYING TO HANG ON TO HIS LEGAL TICKET, I'M SURE.

>> Lehrer: IT'S AMAZING WHEN YOU THINK HE RAN FOR PRESIDENT, HE WAS A VICE PRESIDENTIAL NOMINEE, AND ALL OF THAT. WELL, THANK YOU, AND I LOOK FORWARD TO SEEING YOU ALL ON MOST FRIDAY NIGHTS AS WE MOVE AHEAD TOGETHER.

>> ALL RIGHT.

>> THANK YOU.

>> Woodruff: FINALLY TONIGHT, THE MAN WHO BROUGHT THE ISSUE OF DOCTOR-ASSISTED SUICIDE SQUARELY INTO THE NATIONAL SPOTLIGHT, DR. JACK KEVORKIAN, DIED TODAY AT A HOSPITAL IN MICHIGAN. RAY SUAREZ HAS OUR REPORT.

>> Suarez: HE WAS AN OUTSPOKEN RETIRED MEDICAL PATHOLOGIST FROM MICHIGAN WHO BECAME KNOWN AS "DR. DEATH". JACK KEVORKIAN SAID HE HELPED MORE THAN 130 TERMINALLY ILL PEOPLE DIE BETWEEN 1990 AND 1998. HE USED A DEVICE OF HIS OWN INVENTION, A SUICIDE MACHINE THAT LET THE PATIENT PRESS A BUTTON DELIVERING A FATAL DOSE OF DRUGS. IN 1990, AFTER HIS FIRST ASSISTED SUICIDE CASE, KEVORKIAN DEFENDED HIS ACTIONS ON THIS PROGRAM, THEN CALLED "THE MacNEIL-LEHRER NEWSHOUR".

>> IT'S UP TO A PHYSICIAN, WITH HIS MEDICAL EXPERTISE COMBINED WITH LOGIC AND COMMON SENSE AND A TOTALLY FREE MIND, TO EVALUATE WHETHER THIS PERSON'S DESIRE AND WISH IS MEDICALLY JUSTIFIABLE. AND IF IT IS, THEN I THINK IT'S A PHYSICIAN'S DUTY TO OFFER THAT OPTION TO THE PATIENT. AND I WANTED TO DEMONSTRATE ALSO THAT THERE'S A GREAT NEED FOR IT IN THIS COUNTRY.

>> Suarez: RIGHT FROM THE START, THOUGH, THERE WAS FIERCE CRITICISM. ON THAT SAME PROGRAM, LAWYER AND MEDICAL ETHICIST SUSAN WOLF WAS INTERVIEWED BY ROBERT MacNEIL.

>> I THINK IT'S BLATANTLY UNETHICAL. THE MEDICAL PROFESSION HAS REPEATEDLY REJECTED SUGGESTIONS THAT PHYSICIAN-ASSISTED SUICIDE BE LEGITIMATED. DOCTORS ARE SUPPOSED TO BE HEALERS, NOT KILLERS. BEYOND THAT, I THINK IT'S MOST PROBABLY ILLEGAL.

>> Suarez: MICHIGAN AUTHORITIES AGREED, AND TRIED REPEATEDLY TO PROSECUTE KEVORKIAN. THERE WERE THREE ACQUITTALS AND A MISTRIAL. BUT HE WAS FINALLY CONVICTED IN 1999 AFTER HE'D ALLOWED "60 MINUTES" TO BROADCAST THE LETHAL INJECTION OF A PATIENT WHO HAD LOU GEHRIG'S DISEASE.

>> GUILTY OF A LESSER CHARGE OF SECOND DEGREE MURDER.

>> Suarez: KEVORKIAN SPENT THE NEXT EIGHT YEARS IN PRISON. HE WAS RELEASED ON PAROLE IN 2007, STILL DEFIANT, BUT PROMISING NOT TO BREAK THE LAW AGAIN.

>> I WILL NOT DO IT AGAIN BECAUSE IT WOULD BE COUNTERPRODUCTIVE. WHAT WOULD IT SERVE? WHAT PURPOSE? IT'S NOW UP TO THE PEOPLE TO FIGHT FOR THEIR RIGHT-- IT'S A NATURAL RIGHT, YOU'RE BORN WITH THAT RIGHT.

>> Suarez: JACK KEVORKIAN'S OWN LIFE ENDED EARLY TODAY IN ROYAL OAK, MICHIGAN, WHERE HE'D BEEN HOSPITALIZED WITH PNEUMONIA AND KIDNEY PROBLEMS. HE WAS 83 YEARS OLD.

>> Lehrer: AGAIN, THE OTHER MAJOR DEVELOPMENTS OF THE DAY: HIRING SLOWED IN MAY, AS EMPLOYERS ADDED THE FEWEST JOBS IN EIGHT MONTHS. AND THE PRESIDENT OF YEMEN WAS WOUNDED IN FIERCE FIGHTING BETWEEN HIS TROOPS AND TRIBAL FIGHTERS, WHILE IN SYRIA, GOVERNMENT FORCES KILLED 34 PROTESTERS. AND TO KWAME HOLMAN FOR WHAT'S ON THE NEWSHOUR ONLINE. KWAME.

>> Holman: WATCH AN EXTENDED EXCERPT OF THE NEWSHOUR'S 1990 INTERVIEW WITH JACK KEVORKIAN. AND PAUL SOLMAN WEIGHS IN ON MAY'S JOBLESS RATE AND WHY SOME ECONOMY WATCHERS FEAR A DOUBLE- DIP RECESSION PLUS, FIND A PHOTO ESSAY FROM INDONESIA OF THE ARCHIPELIGO'S MANY CONTRASTS. IT'S PART OF A REPORTING SERIES ON OUR "WORLD" PAGE. ALL THAT AND MORE IS ON OUR WEB SITE, newshour.pbs.org. JUDY.

>> Woodruff: AND THAT'S THE NEWSHOUR FOR TONIGHT. ON MONDAY, WE'LL LOOK AT HIV/AIDS 30 YEARS AFTER ITS FIRST DIAGNOSIS. I'M JUDY WOODRUFF.

>> Lehrer: AND I'M JIM LEHRER. "WASHINGTON WEEK" CAN BE SEEN LATER THIS EVENING ON MOST PBS STATIONS. WE'LL SEE YOU ONLINE, AND AGAIN HERE MONDAY EVENING. HAVE A NICE WEEKEND. THANK YOU AND GOOD NIGHT. MAJOR FUNDING FOR THE PBS NEWSHOUR HAS BEEN PROVIDED BY:

>> OKAY, LISTEN. SOMEBODY HAS GOT TO GET SERIOUS.

>> I THINK...

>> WE NEED RENEWABLE ENERGY.

>> ...RENEWABLE ENERGY IS VITAL TO OUR PLANET.

>> YOU HEAR ABOUT ALTERNATIVES, RIGHT? WIND, SOLAR, ALGAE.

>> I THINK IT'S GOT TO WORK ON A BIG SCALE. AND I THINK IT'S GOT TO BE AFFORDABLE.

>> SO, WHERE ARE THEY?

>> IT HAS TO WORK IN THE REAL WORLD. AT CHEVRON, WE'RE INVESTING MILLIONS IN SOLAR AND BIOFUEL TECHNOLOGY TO MAKE IT WORK.

>> WE'VE GOT TO GET ON THIS NOW.

>> RIGHT NOW. ♪ ♪ ♪ ♪ ♪ ♪

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