PBS NewsHour; August 19, 2011 3:31pm-4:00pm PDT

ANY LONGER, AND WE CAN'T PROJECT THAT WE'LL CONTINUE TO HAVE THE QUALITY FACULTY THAT WE NEED IN ORDER TO EDUCATE THEM.

>> Reporter: AND SO DOES THE PHYSICAL PLANT-- ROOFS THAT NEED REPLACING ARE LEFT THAT WAY; TILES FALL OFF THE CEILING IN CREATIVE ARTS CLASSROOMS, WHERE THE FACULTY HAS TRIED TO PATCH THE PROBLEM, THOUGH NOT VERY WELL. THE CUTBACKS AND THE TUITION INCREASES HAVE BEEN MET OVER THE PAST TWO YEARS BY A SERIES OF DEMONSTRATIONS ON SEVERAL CAMPUSES. BUT THEY SEEM TO HAVE HAD LITTLE EFFECT. ETHNIC STUDIES TEACHER KLASKY, WHO HAS TAKEN PART IN THE PROTESTS, LAYS THE BLAME FOR POOR STATE FUNDING ON INEQUITIES IN THE TAX SYSTEM.

>> ONCE THE PUBLIC UNDERSTANDS FULLY THE IMPACTS OF THESE CUTS ON EDUCATION, THEY WILL RISE UP AND DEMAND THAT WE STOP GIVING AWAY THESE HUGE TAX CUTS TO THE RICHEST CALIFORNIANS AND THE RICHEST CORPORATIONS, AND WE RETURN... CALIFORNIA CAN RETURN TO BECOME A MODEL FOR THE NATION.

>> Reporter: BUT OTHERS BELIEVE THE SITUATION IS MORE COMPLEX, AND PERHAPS MORE LONG-LASTING. THE UNIVERSITY OF CALIFORNIA AT DAVIS IS PART OF THE ELITE TEN- CAMPUS U.C. SYSTEM, THE JEWEL IN THE STATE'S EDUCATION CROWN THAT INCLUDES BERKELEY AND UCLA, RANKED AMONG THE TOP PUBLIC UNIVERSITIES IN THE WORLD. CUTBACKS AND TUITION HIKES HERE HAVE JOLTED DAVIS CHANCELLOR LINDA KATEHI, WHO IS TRYING TO PRESERVE HER SCHOOLS' HIGH REPUTATION. SHE THINKS THE STATE LEGISLATURE'S FAILURE TO FULLY FUND EDUCATION REFLECTS A SHIFT IN VALUES.

>> WHAT IS HAPPENING WITH HIGHER EDUCATION, IT IS NOT ANYMORE AS HIGH IN THE PUBLIC'S MIND AND NOT AS HIGH ON THEIR PRIORITIES LIST. AND AS WE DEAL WITH THE ECONOMY THAT IS NOT GOING VERY WELL, I THINK THE PUBLIC WORRIES ABOUT THEIR WELL-BEING, ABOUT THEIR HEALTHCARE, ABOUT THEIR ABILITY TO LIVE WELL AFTER THEY RETIRE,

>> Reporter: WITH UNDERGRADUATE TUITION AT U.C. NOW MORE THAN $11,000-- UP NEARLY 10%, ON TOP OF AN 8% JUMP LAST YEAR-- MANY STUDENTS ARE HURTING. TO LESSEN THE CRISIS, AND TO INCREASE REVENUE, U.C. DAVIS HAS PROMOTED ITS SUMMER SCHOOL PROGRAM, WHERE THE CLASSES ARE SMALLER. IT HAS ENCOURAGED ADMISSION OF INTERTIONAL STUDENTS, WHO PAY HIGH TUITION. IT HAS MADE SOME ADMINISTRATIVE CONSOLIDATIONS TO REDUCE COSTS. IT HAS PARTNERED WITH PRIVATE ENTERPRISE TO CONSTRUCT A HOUSING AND EDUCATIONAL VILLAGE ON CAMPUS. AND IT HAS JUST LAUNCHED A DRIVE TO RAISE A BILLION DOLLARS FROM PRIVATE AND ALUMNI SOURCES, A LARGE SUM FOR A PUBLIC UNIVERSITY. BUT THE CHANCELLOR SAYS THIS IS ALL PART OF THE NEW WORLD, WHICH INCLUDES HIGHER TUITION COSTS.

>> WE ARE MAKING HIGHER EDUCATION MORE OF A PRIVATE GOOD. WE ARE ASKING THE INDIVIDUAL FAMILIES AND THE INDIVIDUAL STUDENTS TO PAY FOR THEIR OWN EDUCATION. THE TIME WHEN THE STATE WAS THE MAIN CONTRIBUTOR TO THE COST OF HIGHER EDUCATION IS GONE, AND I DON'T NECESSARILY SEE US GOING BACK TO THAT.

>> Reporter: THAT'S BECAUSE GETTING MORE MONEY FROM THE BELEAGUERED STATE SEEMS LIKE A LONG SHOT, GIVEN THE LEGISLATURE'S REFUSAL TO RAISE TAXES. REGENT RUSSELL GOULD, FORMER PRESIDENT OF THE BOARD AND FORMER FINANCE DIRECTOR FOR THE STATE, SAID, IN THE END, A TUITION INCREASE WAS THE ONLY ALTERNATIVE.

>> THE REGENTS HAD TO ACCEPT AN INCREASE IN FEES JUST OUT OF FUNDAMENTAL FINANCIAL REALITIES.

>> Reporter: THAT INCREASE HAS HAD REAL CONSEQUENCES FOR PARENTS LIKE THESE ATTENDING FRESHMAN ORIENTATION WEEK ON CAMPUS THIS SUMMER. AMONG THEM WAS MAYUR PATEL, WHO RUNS A SMALL HOTEL IN VENTURA, CALIFORNIA. HE HAD TO ATTEND TO HOTEL BUSINESS, EVEN DURING THE SESSION.

>> IN AUGUST, WE WERE PLANNING TO TAKE A VACATION, MINI- VACATION. AS SOON AS WE HEARD THAT IT'S GOING UP ABOUT 9% TO 10%, WE STOPPED, WE CANCELLED THAT. LAST TIME I TOOK TIME OFF WORK WAS JUNE 4, 2006. THAT WAS MY DAD'S 50TH WEDDING ANNIVERSARY.

>> Reporter: EVEN WITH THE TUITION INCREASE, REGENT GOULD WORRIES ABOUT THE FUTURE.

>> I THINK THE UNIVERSITY IS AT RISK, IN TERMS OF ITS QUALITY. THE RISK IS IF THE LACK OF CONFIDENCE IS CREATED IN THE UNIVERSITY, AND FACULTY STARTS BELIEVING THAT THIS IS NOT A SUSTAINABLE ENTERPRISE, THAT CALIFORNIA'S GIVEN UP ON IT, I THINK YOU COULD SEE AN EROSION OF THE KIND OF TALENT THAT WE'RE ABLE TO BRING TO THE UNIVERSITY.

>> Reporter: UNIVERSITY OFFICIALS AT ALL LEVELS, EAGER TO PRESERVE THEIR SCHOOLS' REPUTATIONS, ARE RELUCTANT TO SAY THE EDUCATIONAL QUALITY HAS ALREADY DROPPED. BUT THEY ADMIT IT'S IN JEOPARDY, AND THAT MAJOR CHANGES ARE COMING.

>> Lehrer: AND TO THE ANALYSIS OF MARCUS AND GERSON-- THAT'S "WASHINGTON POST" COLUMNISTS RUTH MARCUS AND MICHAEL GERSON. MARK SHIELDS AND DAVID BROOKS ARE BOTH AWAY. MICHAEL, THE REPUBLICAN PRESIDENTIAL NOMINATION RACE, RICK PERRY CAME INTO IT THIS WEEK. HOW WOULD YOU CHARACTERIZE HIS ENTRANCE?

>> I THINK HE HAD A GOOD WEEK. HE IS A TREMENDOUS RETAIL POLITICIAN WHICH MATTERS IN IOWA. HE WENT INTO MICHELE BACHMANN'S HOME TOWN IN A JOINT APPEARANCE AND ESSENTIALLY CLEANED HER CLOCK-- I THINK THAT'S THE RIGHT TERM FOR IT. HE ALSO PROVED HE CAN MAKE ERRORS, QUAFFS, AND HE SHOWED THAT HE DOESN'T REALLY KNOW HOW TO BACK OFF OF AN ERROR OR A GAFFE.

>> Lehrer: ARE WE TALKING SPECIFICALLY--

>> ABOUT THE FEDERAL RESERVE CHAIRMAN, INTEMPERATE LANGUAGE ABOUT THE FEDERAL RESERVE CHAIRMAN. THAT'S A USEFUL POLITICAL SKILL TO BE ABLE TO BACK OFF OF A MISTAKE. HE DOESN'T SEEM DO HAVE IT. THERE ARE PLENTY OF REPUBLICANS RIGHT NOW, HOWEVER, THAT ARE DISCONTENTED WITH THE WHOLE FIELD, PEOPLE LIKE JEB BUSH AND MITCH DANIELS WERE ENCOURAGING OTHER REPUBLICANS TO GET IN. THEY LOOK AT ROMNEY AND PERRY AND THEY'RE NOT HAPPY. SO IT'S A VERY FLUID FIELD RIGHT NOW.

>> Lehrer: DO YOU AGREE, RUTH, THE GAFFES ARE THERE, BUT THE GAFFES DO NOT PREVENT HIM FROM MAKING A GOOD ENTRANCE.

>> I WOULD CALL IT A GOOD WEEK. I WOULD CALL IT A SURPRISING ROCKY WEEK FROM SOMEBODY WHO IS AN EXPERIENCED POLITICIAN. AS PRESIDENT OBAMA SAID YOU'RE IN A DIFFERENT LEAGUE WHEN YOU START RUNNING FOR PRESIDENT AND EVERY SINGLE WORD YOU SAY IS SCRUTINIZED. I THOUGHT THESE WERE JUST UNFORCED ERRORS. WHAT HE SAID ABOUT BERNANKE, USING THE WORD "TREASONOUS" WAS REALLY, IN MY VIEW, CROSSED THE LINE, WHEN HE WAS ASKED WHETHER PRESIDENT OBAMA LOVES HIS COUNTRY, HE SAID,"YOU'LL HAVE TO ASK HIM." HE HAD SOME QUESTIONS ABOUT EVOLUTION VERSUS CREATIONISM. HE HAD SOME ISSUES WITH GLOBAL WARMING. I THINK ALL OF THAT IS PRETTY RATTLING. IT MIGHT BE GOOD FOR SORT OF ENERGIZE A CERTAIN BASE IN THE PARTY BUT IT-- IF I WERE LOOKING TOWARDS A GENERAL ELECTION, IF I WERE A REPUBLICAN CONSULTANT OR ACTIVIST, I WOULD BE PRETTY NERVOUS.

>> Lehrer: EXPLAIN, MICHAEL YTHOSE GAFFES WOULD NOT DISTURB THE REPUBLICAN ELECTORATE, FOR A CANDIDATE TO USE THE WORD "TREASONOUS" IN THE CONTEXT OF TALKING ABOUT BEN BERNANKE.

>> I THINK THE UNFORTUNATE CONTEXT HERE IS THAT THAT'S THE IMPORTATION OF LANGUAGE THAT'S USED ON THE INTERNET, USED TO TALK RADIO, USED IN BOOK TITLES-- WE HAVE TITLES LIKE "TREASON." SO I THINK THAT TYPE OF LANGUAGE HAS BEEN IMPORTED IN THE REPUBLICAN PRIMARY PROCESS. I YEAH IT'S A LONG-TERM PROBLEM. I DON'T THINK THAT IT'S NECESSARILY A SHORT-TERM POLITICAL PROBLEM IN IOWA AND OTHER PLACES. I COTHINK THAT MOST REPUBLICANS VIEW PERRY AS HAVING MUCH LONGER FUTURE IN THIS RACE THAN MICHELE BACHMANN, HAVING MORE SKILLS, MORE TIES TO BUSINESS, ABILITY TO RAISE MONEY. AND THESE ARE MISTAKES THAT I THINK DO HURT HIM IN THE GENERAL ELECTION BUT DON'T NECESSARILY HURT HIM IN THIS EARLY PRIMARY PROCESS.

>> Lehrer: RICH LOWRY EDITOR OF THE "NATIONAL REVIEW" WAS ON THIS PROGRAM FRIDAY. HE SAID WHAT REMAINS TO BE SEEN-- AND WE'RE LOOKING TAT A WEEK LATER-- WHETHER OR NOT RICK PERRY GOES THE ROUTE OF DONALD TRUMP, THAT HE HAS ALL THIS BIG HOOPLA ANDS DOES DOES WELL IN THE POLLS AND THEN SAYS A FEW THINGS AND THEN, BOOM, HE'S GONE.

>> OR FRED THOMPSON--

>> Lehrer: OR FRED THOMPSON.

>> I THINK IT REMAINS TO BE SEEN. HE CLEARLY IS-- AND THIS IS THE S&RT OF UPSIDE OF THE WEEK-- A VERY GOOD RETAIL POLITICIAN, REALLY KNOWS HOW TO GET IN THERE AND WORK THE CROWD. THAT'S IMPORTANT, ESPECIALLY THIS THOSE EARLY STATES. WHETHER HE CAN LEARN FROM THESE MISTAKES AND BE MORE CAREFUL-- I HATE TO SAY GUARD BECAUSE WE DON'T LIKE GUARDED POLITICIANS-- A LITTLE BIT MORE CONTROLLED IN THE FUTURE. ONE OF THE THINGS THAT'S BEEN REMARKABLE, ACTUALLY, IS WATCHING MICHELE BACHMANN WHO HAS BEEN KNOWN TO SAY IN THE PAST SOMEWHAT DISTURBING THINGS IS HOW DISCIPLINED SHE HAS BEEN. HE NEEDS TO-- AND SHE HAS NOT GOTTEN HERSELF INTO TROUBLE IN THIS LATEST ROUND. HE NEEDS TO TAKE A LITTLE BIT OF A PAGE OUT OF THAT BACHMANN PLAYBOOK.

>> Lehrer: YOU THINK HE CAN DO THAT?

>> HE'S A POLITICIAN THAT'S NEVER LOST AN ELECTION IN 27 YEARS OF POLITICS. HE'S A SKILLED GUY, AND I DO THINK BACHMANN HURT HERSELF A LITTLE BIT WITH A REPUTATION FOR BEING A PRIMA DONNA IN IOWA THAT DOESN'T PLAY VERY WELL IF YOU LOOK AT SOME OF THE COVERAGE, THE LOCAL COVERAGE. I THINK MORE BROADLY REPUBLICANS STILL FEEL LIKE THIS RACE IS OPEN. THEY DON'T FEEL LIKE THIS IS A COMPLETE FIELD. NOW IT MAY BE, IT MAY BE WHAT WOE END UP WITH, BUT A LOT OF REPUBLICANS ARE NOT HAPPY WHERE WE ARE RIGHT NOW.

>> Lehrer: THAT REALLY CENTERED ON MITT ROM NEARBY THE KIND OF PRESUMED FRONT-RUNNER?

>> I THINK A LACK OF ENTHUSIASM WITH ROMNEY AND A LACK OF COMFORT WITH PERRY. I THINK THAT THAT THAT'S THE DYNAMIC YOU'RE SEEING NOW, SO YOU HAVE PEOPLE PUSHING FOR PAULRIAN OR CHRIS CHRISTIE, EVEN GIULIANI IS TALKING-- WHICH I DON'T THINK IS LIKELY. BUT THERE ARE OTHER PEOPLE THAT MIGHT BE IN THIS FIELD. SO THAT'S THE DYNAMIC HERE. I DON'T THINK PEOPLE ARE ALL THAT HAPPY.

>> Lehrer: THERE HAVE BEEN A LOT OF COMPLAINTS FROM RON PAUL AND HIS FOLKS. HE CAME IN, WITHIN 200 VOTES OF BALK MAP IN THE STRAW POLL, AND HE WAS JUST BRUSHED ASIDE. IS HE NOT CONSIDERED A SERIOUS CONTENDER FOR THE REPUBLICAN NOMINATION?

>> WELL I THINK HE'S NOT A SERIOUS CONTENDER FOR THE REPUBLICAN NOMINATION. HE HAS A FLOOR OF VERY COMMITTED SUPPORTER ASKS A CEILING THAT'S NOT TOO MUCH HIGHER THAN THE FLOOR BECAUSE HE HAS VERY RADICAL VIEWS WHICH CAME OUT IN THE DEBATES. HE SEEMED VERY MUCH EXCUSING OF IRANIANIAN BEHAVIOR, LIBERTARIAN ON EVEN THE HARDEST ILLEGALIZATION OF THE HARDEST DRUGS. HE HAS VIEWS THAT ARE DEFINITELY NOT MAINSTREAM VIEWS, IN MY VIEW, AND IN THE VIEW OF MOST REPUBLICANS. SO I DO THINK THAT HE IS A FORCE BUT I THINK HE HAS A VERY COMMITTED CORE THAT'S NOT LIKELY TO EXPAND BEYOND THAT GROUP.

>> Lehrer: HOW DO YOU SEE THE TOTAL GROUP RIGHT NOW, THE TOTAL RACE?

>> I THINK MICHAEL PUT IT VERY WELL THAT IT'S KIND OF DISSATISFACTION WITH ROMNEY AND UNEASE ABOUT RICK PERRY. AND THEN SORT OF A QUESTION ABOUT HOW MUCH OF A RACE BACHMANN CAN MAKE IT WITH PERRY, AND THE DEGREE TO WHICH THAT INURES TO GOVERNOR ROMNEY'S BENEFIT OR NOT BECAUSE I THINK RICK PERRY IS LIKE YOU MIGHT WANT TO JUST LET THEM PLAY AND FIGHT IT OUT AND YOU COULD STAY, GOVERNOR ROMNEY SORT OF PLAYING POSSUM BENEATH THE SURFACE. AND THAT MIGHT WORK WELL OR ELSE ONE OF THEM, PROBABLY RICK PERRY, COULD REALLY TAKE UVEAND YOU WOULD FIND THE WILDFIRE-- ALL MY METAPHORS REALLY OUT OF CONTROL. SORRY ABOUT THAT.

>> Lehrer: SMOKE HIM OUT.

>> ALL RIGHT, ENOUGH.

>> Lehrer: NOW LET'S MOVE TO PRESIDENT OBAMA. HE IS-- HE WAS IN IOWA ON A BUS TOUR, NOT POLITICAL THEY SAID, BUT HE WENT THROUGH THE HEARTLAND OF AMERICA. AND NOT JUST IOWA. TWO OTHER STATES AS WELL IN THE MIDWEST. WHAT DO YOU MAKE OF THAT BUS TRIP?

>> I THINK PEOPLE WILL REMEMBER THE VINEYARD VACATION MORE THAN THE HEARTLAND TOUR IN THIS CASE. I THINK THE PRESIDENT'S POLICY ON HIS TOUR WAS PRETTY WEAK. SOME OF IT MINOR. SOME OF IT UNLIKELY TO PASS WHEN IT COMES TO JOBS. AND IN FACT THE WHITE HOUSE ESSENTIALLY ADMITTED THAT THIS WEEK BY SAYING OH, WE'RE GOING TO HAVE NEW POLICY IN SEPTEMBER. WHICH IS AN ADMISSION THAT THE OLD POLICY WASN'T REALLY CUTTING IT. I THINK THE PRESIDENT'S PROBLEM HERE IS NOT JUST A VACATION, WHICH IS EASY TO FOCUS ON, BUT THE FACT THAT HE'S COMING UP WITH A BIG JOBS PLAN. 28 MONTHS AFTER UNEMPLOYMENT WENT OVER THE 9% FIGURE. WHICH MOST PEOPLE SEE AS QUITE LATE. HE'S PLAYING CATCH-UP ON THE MOST IMPORTANT ISSUE IN AMERICAN POLITICS.

>> Lehrer: RUTH?

>> I WISH I COULD SAY I DISAGREE. BUT I THOUGHT THE TAURUS VERY ODD. BECAUSE IT WAS I'M ON A TOUR. I'M ANYTHING TO COME UP WITH A POLICY. WAIT UNTIL SEPTEMBER. AND THAT WAS PROBLEM ONE WITH IT. PROBLEM TWO, I THOUGHT, WAS WHEN HE STARTED TO SORT OF RAMP UP THIS ARGUMENT AGAINST CONGRESS. I NEED YOUR HELP TO GET THIS CONGRESS TO GET OFF ITS-- GET SOMETHING DONE. WELL, WHEN PRESIDENT TRUMAN RAN AGAINST A DO-NOTHING CONGRESS HE HAD NOT PROMISED THE VOTERS EARLIER THAT HE WAS GOING TO BE ABLE TO MAKE THE CONGRESS DO SOMETHING, THAT HE WAS THE GUY WHO WAS GOING TO BE ABLE TO COME TO TOWN TO CHANGE ALL OF THIS. FOR THE ARE THE TO BE RAMPING UP AGAINST A DO-NOTHING CONGRESS, I FEEL HIS FRUSTRATION, BUT HE DID TELL US HE WAS THE ONE WHO WAS GOING TO BE ABLE ON FIX THIS BROKEN POLITICAL SYSTEM THAT STILL TURNED OUT TO BE BROKEN.

>> Lehrer: HOW DO YOU, IN THE DISCUSSION THAT RAY RAN A MOMENT AGO, IT WAS MENTIONED, OH, THE PRESIDENT WENT OFF TO MARTHA'S VINEYARD. IT'S NOW KIND OF A LINE USED TO DISPARAGE THE PRESIDENT. HOW DO YOU FEEL ABOUT THAT?

>> WELL, IN MY HUMAN HAT, THE GUY NEEDS A VACATION. ALL PRESIDENTS DESERVE A LITTLE BIT OF TIME OFF. THEY NEVER REALLY ARE OFF. THEY'RE ALWAYS GETTING BRIEFED. YOU SOUGHT PICTURES WITH JOHN BENON, THE COUNTER-TERRORISM ADVISER.

>> Lehrer: HE WAS BRIEFED BY THE WHITE HOUSE TODAY.

>> ISN'T THAT FUNNY. I DON'T THINK WE'RE GOING TO SEE HIM WIND SUFFERING. IN MY PUNDIT HAT, OF COURSE HE SHOULDN'T BE DOING THIS. NO POLITICAL ADVISER IS GOING TO TELL HIM TO GO ON VACATION WITH THE ECONOMY IN THIS SHAPE. AND PARTICULARLY IF THEY WERE GOING TO PICK SOME PLACE TO GO ON VACATION, I DO NOT THINK MARKET'S VINEYARD WOULD BE THE TOP CHOICE. BUT THERE YOU HAVE IT.

>> IT SHOULD BE THE JERSEY SHORE.

>> DOWN THE SHORE AS WE SAY THIS JERSEY.

>> Lehrer: YOU WORKED FOR GEORGE W. BUSH, MICHAEL. WHAT IS THE-- HOW DO YOU FIT THIS WHOLE THING-- IT COMES UP NO MATTER WHO THE PRESIDENT IS, WHENEVER HE GOES ON VACATION THEY TAKE A HIT. WHY? WELL, I THINK IT'S AN EASY POLITICAL HIT. AND I COMPLETELY AGREE. I'VE SEEN PRESIDENTS CLOSE UP. THEY NEED VACATION. AND THEY DON'T REALLY GET A VACATION. IT DOESN'T MATTER. BECAUSE THEY'RE CONSTANTLY DEALING WITH SECURITY BRIEFINGS AND OTHER THINGS. SO IT'S AN ILLUSION ANYWAY. SO I DON'T BEGRUDGE THE PRESIDENT THAT. BUT I MEAN THE POLITICAL ADVICE HERE IS JUST BAD. THIS IS A-- IT'S A BEAUTIFUL PLACE. IT'S A WONDERFUL PLACE. BUT IT'S A PLAYGROUND FOR THE RICH AND FAMOUS ON VACATION. AND WE HAVE AN ECONOMIC CRISIS AS THE PRESIDENT ACKNOWLEDGED DURING HIS OWN TOUR. AND I THINK THE SYMBOLISM HERE, I JUST KNOW POLITICAL ADVISER WOULD WANT--

>> Lehrer: OF COURSE THE CONGRESS IS ON VACATION AS WELL. SO COULD YOU READ THIS IF YOU WANTED TO-- WANTED TO READ-- IF YOU WERE A PUNDIT, SAY, AND WROTE COLUMNS IN NEWSPAPERS, WOULD YOU SAY THAT, YOU KNOW, WE HAVE THIS BIG FINANCIAL AND ECONOMIC CRISIS AND YET THE GOVERNMENT IS ALL ON VACATION?

>> THAT'S NOT A VACATION. THAT'S A DISTRICT WORK PERIOD.

>> Lehrer: OH, I SEE. I SEE.

>> LOOK, THE WORST THING THAT COULD POSSIBLY HAPPEN TO THE ECONOMY WOULD BE FOR CONGRESS TO COME RACING BACK TO DO WHAT? BICKER SOME MORE? DISAGREE ABOUT POLICY. I THINK THE BEST THING THAT CAN HAPPEN FROM THE COUNTRY'S POINT OF VIEW IS TO HAVE CONGRESS GO BACK TO THEIR DISTRICTS, ACTUALLY HEAR FROM PEOPLE, HEAR WHAT PEOPLE ARE ASKING FOR, FROM THEM. WE'RE SEEING SOME INTERESTING REPORTS ABOUT SOME PEOPLE GIVING MEMBERS OF CONGRESS AN EARFUL ABOUT, HEY, MAKE WE NEED TO THINK ABOUT RAISING SOME TAXES. IT'S ANECDOTAL, BUT MEMBERS OF CONGRESS SHOULD HEAR FROM THEIR VOTERS. BEING HERE AND GETTING NOTHING DONE WOULD HAVE BEEN A VERY BAD IDEA.

>> Lehrer: DO YOU AGREE WITH THAT?

>> YEAH, I DO. I THINK IT WAS PROBABLY NOT A GOOD STRATEGY TO BRING THE CONGRESS IN, CREATE A SENSE OF URGENCY AND NATIONAL EMERGENCY WHEN YOU DON'T KNOW WHAT THE OUTCOME'S GOING TO BE. THAT'S-- I THINK THAT WOULD HAVE BEEN A BAD POLITICAL APPROACH. BUT THE PRESIDENT HAS TO TAKE SERIOUSLY-- THERE WAS A POLL NUMBER THIS WEEK THAT SAID 71% OF AMERICANS DISAPPROVE OF HIS HANDLING OF THE ECONOMY.

>> Lehrer: 71%.

>> THAT'S A DISMAL FIGURE. IT'S A SERIOUS THREAT TO HIS REELECTION. HE NEEDS TO TAKE THAT QUITE SERIOUSLY. I THINK THEY'RE SAYING WE WILL WHEN IT COMES TO SEPTEMBER. THEY'RE NOT GIVING TOO MANY SIGNS RIGHT NOW THAT THEY UNDERSTAND THE GRAVITY OF WHAT'S GOING ON.

>> Lehrer: MICHAEL, RUTH, THANK YOU BOTH VERY MUCH.

>> Brown: FINALLY TONIGHT, WE REMEMBER A DRAMATIC DAY IN HISTORY, 20 YEARS LATER, AS IT UNFOLDED ON THE NEWSHOUR.

>> MacNEIL: GOOD EVENING. THE STUNNING OVERTHROW OF MIKHAIL GORBACHEV BY COMMUNIST HARD-LINERS DOMINATES THE NEWS THIS MONDAY. GORBACHEV WAS REPORTED UNDER HOUSE ARREST AS SOVIET TANKS TOOK UP POSITIONS THROUGHOUT MOSCOW.

>> Brown: THAT WAS HOW ROBERT MacNEIL DESCRIBED THE SHOCKING DEVELOPMENTS OF AUGUST 19, 1991, ON THE "MacNEIL/LEHRER NEWSHOUR," A COUP THAT WOULD BACKFIRE AND LEAD TO THE END OF THE SOVIET UNION. A REPORT FROM ROBERT MOORE OF INDEPENDENT TELEVISION NEWS SHOWED THE CHAOS ON THE GROUND.

>> Reporter: THE RED ARMY TANKS HAD ROLLED INTO THE HEART OF THE CITY, AND NOT EVEN HEROIC GESTURES COULD STOP THEM. WORKERS AND SHOPPERS QUICKLY SURROUNDED THE SECURITY FORCES... THE MAN WHO HAS TAKEN OVER IS VICE-PRESIDENT GENNADY YANAYEV, WHOSE REPUTATION AS A HARD-LINER IS MATCHED ONLY BY HIS IMAGE AS A GRAY MAN WHO WOULD SERVE LOYALLY.

>> Brown: THEN CAME A DESCRIPTION OF WHAT WOULD BECOME THE MOST ICONIC IMAGE OF THE DAY.

>> MacNEIL: EARLY IN THE DAY, RUSSIAN PRESIDENT REPUBLIC... REPUBLIC PRESIDENT BORIS YELTSIN CALLED ON THE SOVIET PEOPLE TO CHALLENGE THE COUP LEADERS. THE ONETIME GORBACHEV RIVAL MADE THE APPEAL ON TOP OF A TANK NEAR THE RUSSIAN PARLIAMENT BUILDING.

>> Brown: JUDY WOODRUFF REPORTED ON THE SWIFT U.S. REACTION...

>> Woodruff: PRESIDENT BUSH ISSUED A STATEMENT TONIGHT CONDEMNING WHAT HE CALLED "AN UNCONSTITUTIONAL RESORT TO FORCE."

>> IT SEEMS CLEARER ALL THE TIME THAT, CONTRARY TO OFFICIAL STATEMENTS OUT OF MOSCOW, THAT THIS MOVE WAS EXTRA- CONSTITUTIONAL, OUTSIDE OF THE CONSTITUTIONAL PROVISIONS FOR GOVERNMENTAL CHANGE.

>> Brown: THEN-NEWSHOUR CORRESPONDENT ROGER MUDD IDENTIFIED THE MEN BEHIND THE COUP, WHO WERE STRANGERS TO MOST AMERICANS.

>> Reporter: INSTEAD OF THE SINGLE CHARISMATIC GORBACHEV THE WORLD HAD BECOME ACCUSTOMED TO OVER THE PAST SIX YEARS, IT WAS ONCE AGAIN EIGHT MEN IN GRAY SUITS WHO HELD THE POWER. IT WAS THE FIRST APPEARANCE OF THE STATE COMMITTEE FOR THE STATE OF EMERGENCY, AND IT INCLUDED THE HEAD OF THE KGB, THE DEFENSE MINISTER, THE INTERIOR MINISTER, AND THE POLICE.

>> ( translated ): TO DO NOTHING AT THIS CRUCIAL PERIOD MEANS TO TAKE GRAVE RESPONSIBILITY FOR TRAGIC AND VERY UNPREDICTABLE CIRCUMSTANCES.

>> Reporter: WHEN YANAYEV WAS FINISHED, THE VERY FIRST QUESTION, OF COURSE, WAS, "WHERE IS MIKHAIL GORBACHEV?" YANAYEV'S ANSWER DREW DERISIVE LAUGHTER FROM THE PRESS.

>> ( translated ): LET ME SAY THAT MIKHAIL GORBACHEV IS NOW ON VACATION. HE IS VERY TIRED AFTER THESE MANY YEARS AND HE WILL NEED SOME TIME TO GET BETTER. ( LAUGHTER )

>> Brown: NEXT, RUSSIA WATCHERS WEIGHED IN IN A PANEL DISCUSSION.

>> THEY'RE ACTING STRONGLY AGAINST THE RIGHT OF NATIONAL REPUBLIC. THIS COMMISSION IS ILLEGAL. THOSE LEADERS ABSOLUTELY CRIMINAL PEOPLE.

>> MY CONCERN IS THAT, WHILE ACTING IN THE NAME OF LAW AND ORDER, THEY MAY TRIGGER A CIVIL WAR.

>> Brown: TWO FORMER K OFFICERS PREDICTED THE COUP WOULD NOT SUCCEED.

>> I DO BELIEVE THAT, WITHIN FEW MONTHS, PROBABLY WITHIN A YEAR, ALL OF THEM WILL BE GONE. THE PROBLEM, HOWEVER, IS THAT THEY CAN CAUSE GREAT CIVIL UNREST AND MAYBE CIVIL WAR IN THE SOVIET UNION AND BEFORE THEY WILL BE KICKED OUT OF POWER.

>> WELL, I'VE SEEN QUITE A FEW KGB-ORCHESTRATED COUPS WHILE BEING IN THE CENTER, AND I MUST SAY THAT THIS IS A VERY, VERY UNUSUAL COUP.

>> Brown: ONE OF OUR COMMENTATORS THAT DAY WAS MADELEINE ALBRIGHT, WHO WOULD BECOME SECRETARY OF STATE SIX YEARS LATER.

>> WELL, I THINK THAT THE COUP WILL NOT LAST. I THINK THE ISSUE HERE IS THAT SOVIET UNION IS UNRAVELING. WHAT WE'RE SEEING ARE VERY DEEP SPLITS WITHIN THE PUBLIC, AND THEY'RE UNCLEAR ABOUT WHAT DIRECTION TO GO IN. THEY TREASURE THEIR DEMOCRATIZATION AND GLASNOST.

>> Brown: SHE WAS RIGHT. IN THE NEXT TWO DAYS, PROTESTORS RALLIED AGAINST THE COUP, WHICH QUICKLY FELL APART. BY THE END OF THE WEEK, GORBACHEV HAD RETURNED TO MOSCOW AND TO POWER. THE COMMUNIST PARTY WAS DISBANDED, AND BY THE END OF THE YEAR, THE SOVIET UNION ITSELF HAD BEEN DISMANTLED.

>> Lehrer: AGAIN, THE MAJOR DEVELOPMENTS OF THE DAY: STOCK MARKETS AROUND THE WORLD HAD ANOTHER BUMPY RIDE. ON WALL STREET, THE DOW JONES INDUSTRIAL AVERAGE LOST MORE THAN 170 POINTS. IN BEIJING, VICE-PRESIDENT BIDEN TRIED TO REASSURE CHINA ABOUT THE U.S. ECONOMY. HE TOLD THE CHINESE PRESIDENT, "YOU HAVE NOTHING TO WORRY ABOUT." A SUICIDE BOMB IN PAKISTAN KILLED NEARLY 50 PEOPLE AT A SUNNI MOSQUE. AND SYRIAN TROOPS FIRED ON PROTESTERS AGAIN IN A FRESH ROUND OF MASS DEMONSTRATIONS. AT LEAST 20 PEOPLE WERE KILLED. AND TO KWAME HOLMAN FOR WHAT'S ON THE NEWSHOUR ONLINE. KWAME.

>> Holman: WHAT'S PROMPTED THOUSANDS OF ISRAELIS TO TAKE TO THE STREETS AND PLAN A MILLION- MAN MARCH FOR NEXT MONTH? THE TARGET IS RUNAWAY INFLATION. FIND THE NUMBERS ON OUR "RUNDOWN" BLOG. HOW MUCH DO MARKET SWINGS MATTER TO AVERAGE AMERICANS? "PATCHWORK NATION" CHARTS STOCK OWNERSHIP-- WHO OWNS WHAT AND HOW MUCH-- IN COMMUNITIES ACROSS THE COUNTRY. AND ON "ART BEAT," JEFF TALKS TO COMPOSER PHILIP GLASS ABOUT HIS NEW ARTS FESTIVAL IN CALIFORNIA. ALL THAT AND MORE IS ON OUR WEB SITE, newshour.pbs.org. JEFF.

>> Brown: AND THAT'S THE NEWSHOUR FOR TONIGHT. I'M JEFFREY BROWN.

>> 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: ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ MOVING OUR ECONOMY FOR 160 YEARS. BNSF, THE ENGINE THAT CONNECTS US. CHEVRON. WE MAY HAVE MORE IN COMMON THAN YOU THINK.

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