PBS NewsHour; August 13, 2012 3:00pm-4:00pm PDT

Captioning sponsored by MacNEIL/LEHRER PRODUCTIONS

>> Ifill: THE NEWLY MINTED REPUBLICAN TICKET SET OFF IN DIFFERENT DIRECTIONS TODAY WITH BOTH MITT ROMNEY AND PAUL RYAN CAMPAIGNING IN SWING STATES. GOOD EVENING. I'M GWEN IFILL.

>> Woodruff: AND I'M JUDY WOODRUFF. ON THE NEWSHOUR TONIGHT, WE PROFILE THE VICE PRESIDENTIAL PICK, AND EXAMINE WHERE THE WISCONSIN LAWMAKER STANDS ON THE MAIN ISSUES.

>> AS YOU SEE THE PRESIDENT COME THROUGH ON HIS BUS TOUR, YOU MIGHT ASK HIM THE SAME QUESTION THAT GETTING ASKD FROM PEOPLE ALL AROUND AMERICA, AND THAT IS WHERE ARE THE JOBS, MR. PRESIDENT?

>> Ifill: PLUS, WE ASSESS THE POLITICS BEHIND THE V.P. CHOICE, AND EXAMINE WHAT IT SAYS ABOUT REPUBLICAN STRATEGY IN THE COMING MONTHS.

>> Woodruff: THEN, JEFFREY BROWN TALKS WITH JIM LEHRER, A VETERAN OF 11 PRESIDENTIAL AND VICE PRESIDENTIAL DEBATES, NOW SET TO MODERATE NUMBER 12 THIS FALL.

>> Ifill: AND MARGARET WARNER LOOKS AT THE POWER STRUGGLE IN EGYPT AS THE PRESIDENT FORCES TOP MILITARY OFFICIALS TO RETIRE. THAT'S ALL AHEAD ON TONIGHT'S NEWSHOUR.

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>> Ifill: AFTER A WEEKEND SPENT TOGETHER, THE ROMNEY-RYAN TEAM SPLIT UP TODAY TO HUNT FOR VOTES IN THE SOUTH AND MIDWEST. PRESIDENT OBAMA AND VICE- PRESIDENT BIDEN WERE IN THE SAME REGIONS, AND THE TWO SIDES TRAINED THEIR SIGHTS ON EACH OTHER.

>> Holman: MITT ROMNEY STUMPED SOLO THIS MORNING FOR THE FIRST TIME SINCE SATURDAY, WHEN HE ANNOUNCED WISCONSIN CONGRESSMAN PAUL RYAN AS HIS VICE PRESIDENTIALHOICE. IN ST. AUGUSTINE, FLORIDA, THE REPUBLICAN PRESIDENTIAL HOPEFUL PRAISED RYAN AS "A GREAT LEADER."

>> A MAN WHO HAS PROVEN THAT HE KNOWS HOW TO SOLVE PROBLEMS. HE DID NOT JUST GO TO WASHINGTON, D.C. AND BECOME INVOLVED IN PUBLIC SERVICE TO TRY AND MAKE A NAME FOR HIMSELF; HE INSTEAD WENT TO MAKE THINGS BETTER FOR THE AMERICAN PEOPLE.

>> Holman: RYAN, 42, IS MARRIED AND HAS THREE SCHOOL-AGE CHILDREN. HE WAS A PROTEGE OF FORMER REPUBLICAN CONGRESSMAN AND VICE PRESIDENTIAL CANDIDATE JACK KEMP. RYAN FIRST WAS ELECTED TO CONGRESS IN 1998 AND NOW IS SERVING HIS SEVENTH TERM. HE BECAME CHAIR OF THE HOUSE BUDGET COMMITTEE LAST YEAR AFTER REPUBLICANS TOOK CONTROL FOLLOWING THE 2010 MIDTERM ELECTIONS. IN THAT ROLE, RYAN AUTHORED A BUDGET THAT WOULD REQUIRE SWEEPING CUTS IN FEDERAL SPENDING, REPEAL THE PRESIDENT'S HEALTH CARE LAW, AND IMPOSE CHANGES FOR FUTURE MEDICARE RECIPIENTS TO HOLD DOWN COSTS. DEMOCRATS SAY HIS PROPOSALS WOULD GUT MEDICARE, BUT ROMNEY ASSURED HIS AUDIENCE IN FLORIDA TODAY THAT THE REPUBLICAN TICKET WILL "PRESERVE AND PROTECT MEDICARE." AND IN AN INTERVIEW SUNDAY WITH CBS NEWS' "60 MINUTES", HE INSISTED HIS CAMPAIGN WOULD NOT BE BASED ON THE RYAN BUDGET.

>> WELL, I HAVE MY BUDGET PLAN, AS YOU KNOW, THAT I'VE... I'VE PUT OUT, AND THAT'S THE BUDGET PLAN THAT WE'RE GOING TO RUN ON.

>> Holman: STILL, IN DURHAM, NORTH CAROLINA, VICE-PRESIDENT JOE BIDEN MADE IT CLEAR THE BUDGET ISSUE IS GOING TO BE FRONT AND CENTER FOR DEMOCRATS.

>> NO DISTINCTION BETWEEN WHAT THE REPUBLICAN CONGRESS HAS BEEN PROPOSING THE LAST TWO YEARS-- ACTUALLY, THE LAST FOUR YEARS-- AND WHAT GOVERNOR ROMNEY WANTS TO DO. SO LET'S CUT THROUGH ALL THIS-- WE'RE RUNNING AGAINST... OR THEY'RE RUNNING ON WHAT THE REPUBLICAN CONGRESS HAS BEEN PROPOSING FOR THE PAST FOUR YEARS.

>> Holman: AND IN COUNCIL BLUFFS, IOWA, PRESIDENT OBAMA CHARGED RYAN AND OTHER REPUBLICANS HAVE BLOCKED CONGRESSIONAL ACTION ON A NUMBER OF FRONTS, INCLUDING DROUGHT RELIEF FOR FARMERS.

>> I'M TOLD GOVERNOR ROMNEY'S NEW RUNNING MATE, PAUL RYAN, MIGHT BE AROUND IOWA THESE NEXT FEW DAYS. AND HE'S ONE OF THOSE LEADERS OF CONGRESS STANDING IN THE WAY. SO IF YOU HAPPEN TO SEE CONGRESSMAN RYAN, TELL HIM HOW IMPORTANT THIS FARM BILL IS TO IOWA AND OUR RURAL COMMUNITIES. WE'VE GOT TO PUT POLITICS ASIDE

>> Holman: INDEED, RYAN WAS IN IOWA TODAY, MAKING HIS FIRST SOLO APPEARANCE AT THE STATE FAIR IN DES MOINES. HE DEFLECTED THE PRESIDENT'S CRITICISM, AND FOCUSED INSTEAD ON THE OBAMA ECONOMIC RECORD.

>> MY GUESS IS THE REASON PRESIDENT OBAMA ISN'T MAKING IT HERE FROM COUNCIL BLUFFS IS BECAUSE HE ONLY KNOWS LEFT TURNS. BUT AS YOU SEE THE PRESIDENT COME THROUGH ON HIS BUS TOUR, YOU MIGHT ASK HIM THE SAME QUESTION I'M GETTING ASKED FROM PEOPLE ALL AROUND AMERICA AND THAT IS, "WHERE ARE THE JOBS, MR. PRESIDENT?"

>> Holman: THE EARLY RESPONSE FROM AMERICANS TO THE RYAN SELECTION APPEARED TO BE MIXED. A NEW "USA TODAY"/GALLUP POLL FOUND 42% OF REGISTERED VOTERS RATED THE SELECTION AS "FAIR" OR "POOR," WHILE 39% CALLED IT "EXCELLENT" OR "PRETTY GOOD."

>> Woodruff: AND OUR LOOK AT RYAN CONTINUES. JEFFREY BROWN HAS THAT.

>> Brown: HE WAS BORN, RAISED AND STILL LIVES IN JANESVILLE, WISCONSIN; SERVED AS CLASS PRESIDENT, PROM KING, AND WORKED AT McDONALD'S IN HIGH SCHOOL; ATTENDED MIAMI UNIVERSITY IN OHIO; AND WAS FIRST ELECTED TO THE HOUSE OF REPRESENTATIVES WHEN HE WAS JUST 28. AMONG THOSE WATCHING HIS RISE IN WISCONSIN AND ON THE NATIONAL STAGE HAS BEEN CRAIG GILBERT, WASHINGTON BUREAU CHIEF OF THE "MILWAUKEE JOURNAL-SENTINEL," WHO JOINS US NOW. CRAIG, START WITH THE PERSONAL SIDE. WHAT'S IMPORTANT TO KNOW ABOUT PAUL RYAN'S FAMILY BACKGROUND.

>> WELL, HE COMES FROM A BIG IRISH-CATHOLIC FAMILY, MULTIGENERATION FAMILY IN JAMESVILLE WISCONSIN. HIS FATHER WAS A LAWYER WHO DIED WHEN HE WAS 16. PAUL RYAN HAS TALKED ABOUT HAVING TO GROW UP REALLY QUICKLY AND TALKD ABOUT LEARNING LESSONS OF SELF-RELIANCE AND INDEPENDENCE THAT SORT OF PUT HIM ON HIS ROAD TO PRETTY CONSERVATIVE BRAND OF POLITICS.

>> Brown: TELL US A LITTLE BIT MORE ABOUT THAT, THE DEVELOPMENT OF HIS POLITICAL AND SOCIAL BELIEFS. WHEN AND HOW DID THEY COME?

>> WELL, I THINK AS A YOUNG MAN HE KIND OF GRAVITATED TOWARD THINKERS LIKE AND WRITERS LIKE AYN RAND AND MILTON FRIEDMAN AND ECONOMISTS WHO REALLY EXTOLLED THE VIRTUES OF THE INDIVIDUAL AND THE VIRTUES OF FREE MARKETS. THAT HAPPENED IN COLLEGE AND AFTER COLLEGE HE WENT TO WORK FOR SENATOR BOB KASS A REPUBLICAN FROM WISCONSIN AND LATER FOR BILL BENNETT AND JACK KEMP. HE WAS REALLY SCHOOLED IN THE ECONOMIC DOCTRINE OF SUPPLY SIDE WHICH IS ALL ABOUT USING DEREGULATION AND LOWER TAX RATES ON INCOME AND INVESTMENTS TO SPUR ECONOMIC GROWTH. HE'S A TRUE SIDER.

>> Brown: HE STILL LIVES IN JAMESVILLE BUT OF COURSE HE'S BEEN IN WASHINGTON A GOOD WHILE NOW. ELECTEDDED AT THE AGE OF JUST 28. HOW DID THAT HAPPEN? HOW DID PAUL RYAN BECOME A POLITICIAN AND ESPECIALLY AT SUCH A YOUNG AGE?

>> WELL, AFTER, YOU KNOW, BEING A STAFFER AND A SPEECH WRITER AND A POLICY GUY ON THE HILL, HE... HIS AMBITION WAS TO GO INTO ELECTED POLITICS. HE ENDED UP RUNNING IN A DISTRICT THAT WAS ONCE REPRESENTED BY ASPEN FOR MANY YEAR, THE DEMOCRAT WHO WENT ON TO BE DEFENSE SECRETARY FOR PRESIDENT CLINTON. A PRETTY DIVERSE DISTRICT POLITICALLY. JAMESVILLE IS A DEMOCRATIC LEANING DISTRICT BUT IT CREATES DEMOCRATIC AREAS AND REPUBLICAN AREAS AND IT'S BECOME A LITTLE BIT MORE REPUBLICAN OVER TIME. PAUL RYAN IS ONE OF THE TOP CONSERVATIVES IN THE HOUSE WHO HAS HAD TO RUN IN A DISTRICT THAT IS FAIRLY PURPLE. I THINK THAT SPEAKS TO HIS POLITICAL SKILLS.

>> Brown: IT'S OFTEN BEEN REMARKED HE'S HAD THIS GREAT SUCCESS IN BRINGING HIS IDEAS TO THE, PARTICULARLY GIVEN HIS YOUTH AND LACK OF SENIORITY IN THE HOUSE. YOU'VE WATCHED HIM DO IT. HOW HAS HE DONE THAT?

>> WELL, I THINK HE WAS... HE'S TALKED ABOUT BEING ADVISED EARLY ON AS HE ENTERED HIS CONGRESSIONAL CAREER TO MAST ERA SUBJECT, TO CARVE OUT A NICHE FOR HIMSELF, DEVELOP AN EXPERTISE, WHICH HE OBVIOUSLY DID IN ECONOMIC AND FISCAL POLICY. SO THE REALLY REMARKABLE THING ABOUT HIS RISE IS HERE'S JUST A SINGLE MEMBER OF THE HOUSE OF REPRESENTATIVES WHO, YOU KNOW, THROUGH THE BUDGET COMMITTEE AND NOT TYPICALLY A PLATFORM OF GREAT POWER AND INFLUENCE, YOU KNOW, BECOMES THE ARCHITECT OF DOMESTIC POLICY FOR THE REPUBLICAN PARTY, SETTING THE DOCTRINE FOR HOUSE REPUBLICANS AND NOW TO SOME DEGREE ULTIMATELY FOR A NATIONAL TICKET. I MEAN THAT'S SOMETHING THAT HE WENT ABOUT METHODICALLY, VERY METHODICALLY TO DO IN TERMS OF HIS RELATIONSHIPS WITH HIS COLLEAGUES, HIS RELATIONSHIPS IN THE CONSERVATIVE MEDIA AND THE CONSERVATIVE MOVEMENT HAS HE EXPRESSED SURPRISE IN HIS SUCCESS? SELF-AWARENESS OF THAT, BOTH OVER THE LAST COUPLE OF YEARS AND OF COURSE NOW TO THIS VERY HIGH LEVEL OF NATIONAL PROMINENCE?

>> I HAVEN'T HAD A CHANCE TO TALK TO HIM TOO MUCH ABOUT HIS SELECTION TO THE TICKET. I MEAN HE'S ALWAYS DOWNPLAYED HIS POLITICAL AMBITIONS BUT THEY'RE OBVIOUSLY THERE WHEN YOU THINK ABOUT THE SWIFTNESS OF HIS RISE. HE LIKES TO TALK ABOUT HIMSELF AS A POLICY WONK. "I'M A POLICY GUY. I'M NOT A POLITICS GUY." BUT A LITTLE BIT OF AWE, SHUCKS THERE. I MEAN, HE'S ACTUALLY A VERY GOOD POLITICIAN, A GOOD COMMUNICATOR. HE WORKS HIS DISTRICT VERY HARD. IT WOULD BE A MISTAKE FOR DEMOCRATS TO UNDERESTIMATE HIS POLITICAL SKILLS.

>> Brown: CRAIG GILBERT OF THE MILWAUKEE-JOURNAL SENTINEL. THANKS SO MUCH.

>> THANK

>> Ifill: COMING UP, WE LOOK AT WHERE PAUL RYAN STANDS ON KEY ISSUES; AND ASSESS THE POLITICS OF THE VICE PRESIDENTIAL PICK. ALSO AHEAD, JIM LEHRER ON THE PRESIDENTIAL DEBATES; AND EGYPT'S PRESIDENT LIMITS THE POWER OF THE MILITARY. BUT FIRST, WITH THE OTHER NEWS OF THE DAY, HERE'S HARI SREENIVASAN.

>> Sreenivasan: REPUBLICANS IN THE U.S. HOUSE WENT TO FEDERAL COURT TODAY AGAINST ATTORNEY GENERAL ERIC HOLDER. THEY ARE TRYING TO FORCE HOLDER TO RELEASE MORE RECORDS ON "OPERATION FAST AND FURIOUS," A BUNGLED GUN-TRACKING INVESTIGATION IN ARIZONA. THE LAWSUIT ASKED THE COURT TO REJECT THE PRESIDENT'S CLAIM OF EXECUTIVE PRIVILEGE IN THE CASE. REBELS IN SYRIA CLAIMED TODAY THEY SHOT DOWN A GOVERNMENT WARPLANE AND CAPTURED ITS PILOT. THE REBELS POSTED THIS VIDEO SHOWING WHAT THEY SAY IS THE AIRCRAFT ERUPTING INTO FLAMES, AND THEN SPIRALING OUT OF CONTROL OVER EASTERN SYRIA. LATER, THEY RELEASED THIS FOOTAGE. IT PURPORTEDLY SHOWED THE CAPTURED PILOT SURROUNDED BY ARMED MEN. THE SYRIAN REGIME INSISTED THE FIGHTER PLANE WENT DOWN BECAUSE OF TECHNICAL PROBLEMS, NOT ENEMY FIRE, AND THE PILOT WAS FORCED TO EJECT. IN AFGHANISTAN, THERE WAS ANOTHER INCIDENT OF AN AFGHAN POLICEMAN FIRING ON COALITION FORCES TODAY. NO ONE WAS KILLED THIS TIME, BUT AT LEAST SEVEN AMERICANS HAVE BEEN SHOT DEAD IN THE PAST WEEK BY MEN IN AFGHAN UNIFORMS. U.S. AMBASSADOR JAMES CUNNINGHAM CALLED THE ATTACKS "VERY TROUBLING." HE SAID U.S. AND AFGHAN OFFICIALS HAVE A LOT OF WORK TO DO TO FIND OUT WHAT'S HAPPENING. THE DEATH TOLL FROM THIS WEEKEND'S TWIN EARTHQUAKES IN NORTHWEST IRAN NOW EXCEEDS 300. THE TWO QUAKES ROCKED SEVERAL TOWNS IN EAST AZERBAIJAN PROVINCE ON SATURDAY. THEY HAD MAGNITUDES OF 6.4 AND 6.3. THE EARTHQUAKES LEVELED A DON VILLAGES AND CAUSED CONSIDERABLE DAMAGE IN 425 OTHERS. MORE THAN 3,000 PEOPLE WERE INJURED. RESCUE CREWS CALLED OFF THE SEARCH FOR SURVIVORS ON SUNDAY. A STEADY STREAM OF ATHLETES HEADED TO LONDON'S AIRPORTS TOY AFTER THE TWO-WEEK SUMMER OLYMPICS CAME TO AN END. LAST NIGHT'S CLOSING CEREMONIES FEATURED A PROCESSION OF THE ATHLETES, FOLLOWED BY A CELEBRATION OF BRITISH ROCK AND POP MUSIC, PAST AND PRESENT. AND FINALLY, THE OLYMPIC FLAME WAS EXTINGUISHED TO END THE GAMES. TODAY, LONDON MAYOR BORIS JOHNSON SAID THE FUTURE FOR ALL THE OLYMPIC SITES WAS BRIGHT. LONDON IS MORE ADVANCED THAN ANY PREVIOUS HOST CITY IN SECURING A LEGACY FROM THE GAM GAMES. SIX OF THE EIGHT VENUES HAVE A FUTURE. THERE ARE EIGHT SITES THAT ALREADY HAVE A FUTURE ASSURED. THE OTHER TWO OF COURSE AS YOU KNOW ARE HOTLY CONTENDED FOR.

>> Sreenivasan: IN ALL, THE U.S. WON 104 MEDALS, 46 OF THEM GOLDS. THAT'S THE MOST THAT AMERICAN ATHLETES HAVE WON IN ANY GAMES NOT HOSTED BY THE U.S. CHINA CAME IN SECOND FOR OVERALL MEDALS IN LONDON, FOLLOWED BY GREAT BRITAIN. WALL STREET NEVER MANAGED TO GET GOING TODAY, AMID NEW WORRIES THAT GROWTH ACROSS ASIA IS SLOWING. THE DOW JONES INDUSTRIAL AVERAGE LOST 38 POINTS TO CLOSE AT 13,169. THE NASDAQ ROSE ONE POINT TO CLOSE AT 3,022. HELEN GURLEY BROWN, THE LONG- TIME EDITOR OF "COSMOPOLITAN" MAGAZINE, HAS DIED. SHE PASSED AWAY IN NEW YORK TODAY AFTER A BRIEF HOSPITALIZATION. BROWN FIRST ROSE TO POPULARITY IN 1962 AFTER PENNING THE ADVICE BOOK "SEX AND THE SINGLE GIRL". HEARST MAGAZINE HIRED HER THREE YEARS LATER TO REVIVE "COSMOPOLITAN". SHE SERVED AT ITS HELM FOR 32 YEARS, WITH A FOCUS ON EMPOWERING WOMEN AND JOINING THE SEXUAL REVOLUTION. SHE STEPPED DOWN AS OVERALL EDITOR IN 1997, BUT CONTINUED TO RUN THE MAGAZINE'S FOREIGN EDITIONS. HELEN GURLEY BROWN WAS 90 YEARS OLD. THOSE ARE SOME OF THE DAY'S MAJOR STORIES. NOW, BACK TO GWEN.

>> Ifill: AND WE RETURN TO POLITICS WITH MORE ON CONGRESSMAN PAUL RYAN. RYAN IS BEST KNOWN IN WASHINGTON FOR HIS WORK WRITING BUDGETS. HIS FISCAL BLUEPRINT HAS PASSED THE G.O.P.-CONTROLLED HOUSE BUT STALLED IN THE DEMOCRATIC SENATE. IT MAKES CHANGES TO MEDICARE, ALLOWING FUTURE RETIREES THE OPTION OF GOVERNMENT SUBSIDIES FOR PRIVATE INSURANCE. IT WOULD INDEX MEDICARE PAYMENTS TO INFLATION, AND RAISE THE ELIGIBILITY AGE FROM 65 TO 67. IT ALSO AIMS TO TURN MEDICAID OVER TO THE STATES. TO HELP SORT OUT THE DETAILS IN RYAN'S VISION FOR FEDERAL SPENDING, WE ARE JOINED BY ROBERT GREENSTEIN OF THE CENTER ON BUDGET AND POLICY PRIORITIES; PATRICK KNUDSEN OF THE HERITAGE FOUNDATION; AND STEVEN DENNIS, A REPORTER FOR "ROLL CALL" WHO HAS COVERED THE PLAN CLOSELY ON CAPITOL HILL. STEVEN DENNIS, LET'S TALK ABOUT PAUL RYAN'S BUDGET WONK. HOW SUCCESSFUL WAS HE AT THAT?

>> HE WAS VERY SUCCESSFUL. YOU KNOW, HE WAS THE GUY WHEN THE REPUBLICANS WERE DOWN AND OUT AFTER LOSING THE MAJORITY IN 2006, WHO HELPED THEM PICK UP THE PIECES, COME UP WITH A NEW PLAN TO GET BEHIND AND RALLY AROUND. WHEN THEY TOOK BACK THE MAJORITY AND HE HAD HIS PLAN, A LOT OF FOLKS IN HIS OWN PARTY AND IN HIS OWN UCUS, HIS OWN CONFERENCE WHO WERE AFRAID OF HIS PLAN, AFRAID OF THE MEDICARE PROPOSAL, AFRAID OF THE DEEP CUTS. AND HE GOT... HE MANAGED TO GET THEM TO GET BEHIND HIS PLAN AND RALLY AROUND IT. INSTEAD OF HAVING A BUDGET PASSED BY JUST ONE OR TWO VOTES THE WAY IT NORMALLY IS DONE POLITICALLY BECAUSE IT'S TOO DANGEROUS TO VOTE FOR REAL CHANGE AND REAL PAIN, HE GOT HIS FOLKS TO OVERWHELMINGLY PASS IT. THEY GOT BEHIND IT AND RALLIED AROUND IT. IT'S REALLY BECOME SOMETHING THAT, IF YOU'RE A REPUBLICAN AND YOU DON'T SUPPORT THE PAUL RYAN PLAN, YOU HAVE A POTENTIAL PRIMARY CHALLENGE. YOU HAVE TROUBLE FROM YOUR BASE. HE IS A ROCK STAR IN THE REPUBLICAN BASE.

>> Ifill: IS IT THE POWER OF HIS CHARM OR IS IT THE POWER OF HIS IDEAS?

>> IT'S BOTH. ONE OF THE THINGS THAT PAUL RYAN BRINGS TO TABLE IS HE'S PUT SOME SERIOUS IDEAS OUT THERE, IDEAS THAT REALLY RESONATE WITH THE REPUBLICAN BASE. ONES THAT REALLY CHANGE THE SYSTEM OF BENEFITS AND ENTITLEMENTS THAT WE HAVE, DRAMATICALLY REDUCING MANY OF THEM INCLUDING THINGS LIKE MEDICAID FOR THE POOR IN WAYS THAT REPUBLICANS HAVE DREAMED OF DOING BUT HAVEN'T HAD REALLY THE COURAGE OR THE UNITY TO GET BEHIND, AND HE HAS THIS HAPPY WARRIOR MENTALITY AND PERSONA THAT REALLY COMES ACROSS WELL TO THAT BASE. AND THE QUESTION NOW IS WHETHER HE CAN TRANSLATE THAT TO THE NATIONAL STAGE.

>> Ifill: ROBERT GREENSTEIN LET'S TALK THROUGH SOME OF THESE STARTING WITH MEDICARE. GOOD OR BAD WHAT HE HAS PLANNEDDED TO DO.

>> IT WOULD CAUSE VERY SERIOUS PROBLEMS. HE WOULD BASICALLY CONVERT MEDICARE FOR PEOPLE TURNING 65 IN THE FUTURE INTO A VOUCHER. NOW YOU COULD USE IT TO BUY PRIVATE INSURANCE OR YOU COULD TRY TO USE IT TO KEEP TRADITIONAL MEDICARE, BUT IF THE HEALTHIER PEOPLE WENT INTO PRIVATE INSURANCE TRADITIONAL MEDICARE WOULD BECOME MORE COSTLY. THAT WOULD BE EXPENSIVE. HE ALSO WOULD END THE PROVISION OF THE HEALTH REFORM LAW, THE AFFORDABLE CARE ACT, THAT FILLED IN THE DONUT HOLE. SO MANY MIDDLE-INCOME SENIORS WOULD HAVE A HIGHER DRUG PRICE. ONE OF THE STRIKING PROPOSALS IS HE WOULD RAISE THE AGE AT WHICH YOU COULD START TO GET MEDICARE FROM 65 TO 67 BUT AT THE SAME TIME HE WOULD REPEAL THE PROVISIONS OF THE HEALTH REFORM LAW THAT SET UP THESE NEW HEALTH INSURANCE EXCHANGES FOR PEOPLE TO GO INTO. SO 65 AND 66-YEAR-OLDS WOULD LARGELY BE LEFT TO TRY TO BUY INSURANCE IN THE CURRENT TYPE OF HEALTH INSURANCE MARKET WHERE PEOPLE AT THAT AGE OFTEN CAN'T BUY A POLICY.

>> Ifill: WHAT HE JUST DESCRIBED IS AN ACCURATE DESCRIPTION OF WHAT'S IN THE PLAN. THEN YOU TAKE IT, IS IT A GOOD THING OR A BAD THING? IS IT A NECESSARY PLACE FOR AMERICA TO BE GOING RIGHT NOW.

>> IT'S DEFINITELY NECESSARY. EVEN BOB WOULD AGREE THAT THE FISCAL PATH WE'RE ON NOW IS SIMPLY UNSUSTAINABLE. MEDICARE IS A PARTICULARLY GOOD EXAMPLE. IT'S GOING BANKRUPT. EVERYONE IS FULLY AWARE OF THAT. IT HAS A SEVERE DEMOGRAPHIC PROBLEM. SOME TIME IN THE NEXT 20 YEARS OR SO WE'LL HAVE 80 MILLION RETIREES WHO WILL NEED MEDICAL CARE. MEDICARE ITSELF AS CURRENTLY STRUCTURED CAN'T SUSTAIN THEM. WHAT CHAIRMAN RYAN HAS TRIED TO DO -- AND IT'S NOT A PARTICULARLY NEW IDEA -- HE HAS TRIED TO DESCRIBE A NEW WAY TO RESTRUCTURE MEDICARE SO IT WILL BE FISCALLY SUSTAINABLE IN THE FUTURE WITHOUT OVERBURDENING THE FEDERAL BUDGET.

>> Ifill: WHAT ABOUT MEDICAID? AS BOB DESCRIBED THE IDEA HERE IS TO MOVE MORE CONTROL BACK INTO THE STATE GOVERNMENT, LET THEM TAILOR THEIR MEDICAID PROGRAMS ACCORDING TO THEIR OWN POPULATIONS IT'S A CONCEPT THAT WORKED REASONABLY WELL WITH WELFARE REFORM IN THE MID 1990s. HE'S SIMPLY TRYING TO APPLY THAT TO THE MEDICAID PROGRAM.

>> Ifill: HAS THE TIME FOR AUSTERITY COME, MR. GREENSTEIN?

>> WE HAVE TO MAKE VERY TOUGH CHOICES TO GET OUR FISCAL HEALTH IN ORDER AS THE ECONOMY ROFERS. LET'S TAKE MEDICAID AS AN EXAMPLE. WHAT THE RYAN PLAN DOES IS IT CUTS FEDERAL FUNDING FOR MEDICAID BY A THIRD BY THE 10th YEAR. BY RYAN'S OWN NUMBERS, CONGRESSIONAL BUDGET OFFICE NUMBERS HE REQUESTED. IT CUTS IT IN HALF BY THE 20th YEAR. MEDICAID ALREADY PAYS DOCTORS AND HOSPITALS MUCH LESS. IT COSTS 20% LESS PER PERSON THAN PRIVATE INSURANCE. WHERE WOULD THE SAVINGS COME FROM? THE NONPARTISAN URBAN INSTITUTE LOOKED AT IT AND SAID THE RYAN PROPOSAL WOULD LEAD TO BETWEEN 14 AND 27 MILLION LOW-INCOME PEOPLE BECOMING UNINSURED. THESE ARE SOME OF THE MOST VULNERABLE PEOPLE IN THE COUNTRY. AND ONE MORE THING. IF WE NEED TOUGH BUDGET CHOICES, YOU KNOW, RYAN GETS CREDITED FOR COURAGE IN PROPOSING DEEP CUTS IN MEDICARE. I THINK COURAGE IS WHEN YOU TAKE ON YOUR PARTY'S BAS NOT WHEN YOU PLAY TO IT. AND JUST TO FINISH THE THOUGHT. MASSIVE TAX CUTS IN THIS PLAN, THE RYAN PLAN, FOR THE WEALTHIEST PEOPLE IN THE COUNTRY, TAX POLICY CENTERS THE AVERAGE CUT $265,000 A YEAR FOR MILLIONAIRES. A LOT OF THE SAVINGS FROM BIG CUTS IN MEDICARE AND MEDICAID WOULD GO TO FUND TAX CUTS ESPECIALLY FOR THE RICH.

>> Ifill: LET'S START WITH THE TAX CUT QUESTION, MR. KNUDSON. THEN YOU CAN GO FROM THERE.

>> THE TAX CUTS AREN'T QUITE WHAT ROBERT SUGGESTS BUT LET ME TRY TO GO BACK TO THE VULNERABLE PEOPLE THAT BOB HAS SPOKEN ABOUT. UNDER THE CURRENT SITUATION, IF THESE PROGRAMS CONTINUE THE WAY THEY'RE GOING, THEY'RE GOING TO OVERWHELM THE ECONOMY, AND THE PEOPLE WHO ARE GOING TO SUFFER MOST FROM THAT ARE NOT THE MILLIONAIRES ITS THE POOR PEOPLE, THE VERY PEOPLE ROBERT IS IS CONCERNEDDED WITH, AND I UNDERSTAND THAT. WHAT WE NEED IS TO PARE BACK GOVERNMENT SPEND SOG THAT IT'S NOT OVERBURDENING THE ECONOMY ANYMORE TO ALLOW FOR MORE GROWTH. THAT WILL BENEFIT EVERYBODY.

>> Ifill: WHAT DID HE SAY WRONG ABOUT TAX CUTS?

>> WHAT RYAN IS TRYING TO DO IS CHANGE THE TAX CODE INTO TWO BRACKETS ESNTIALLY, 10% AND 25%, AND ELIMINATE MOST OF THE SPECIAL DEDUCTIONS. NOW IF THAT LOOKS LIKE A BIG TAX CUT FOR WEALTHY PEOPLE, ROBERT MAY SEE IT THAT WAY. I DON'T. I THINK IT'S A TAX BENEFIT FOR EVERYONE BECAUSE OF THE SIMPLIFICATION.

>> Ifill: STEVEN DENNIS, HOW DOES THIS PLAN, THIS RYAN PLAN THAT'S OUT THERE, WHATEVER VERSION IT CURRENTLY IS IS IN, HOW DOES THIS COMPARE TO ANYTHING WE HAVE HEARD FROM MITT ROMNEY? ARE THEY ON THE SAME PAGE AS THE REPUBLICAN PRESIDENTIAL NOMINEE SAID TODAY?

>> THEY'RE IN THE SAME BALLPARK. THEY'RE NOT EXACTLY ON THE SAME PAGE. PAUL RYAN'S PLAN IS A LOT MORE SPECIFIC. STILL LEAVES O A LOT OF SPECIFIC TAX BREAKS THAT HE WANTS TO ELIMINATE. HE DOESN'T SAY WHETHER HE'LL KEEP THE HOME DEDUCTION OR HEALTH CARE TAX BREAKS WHICH COST A LOT OF MONEY AND HELP A LOT OF PEOPLE. THEY'RE BOTH EQUALLY VAGUE ON SOME OF THOSE ISSUES. BUT THE GENERAL GIST OF WHERE THEY'RE TRYING TO GO IS ROUGHLY THE SAME. ROMNEY'S BEEN PRETTY VAGUE ABOUT WHERE HE WOULD CUT SPENDING. RYAN'S BEEN A LOT MORE DETAILED ALTHOUGH STILL ON A LOT OF THESE INDIVIDUAL PROGRAMS THE DETAIL IS NOT QUITE THERE FOR EITHER OF THEM. I THINK ONE THING THAT IS INTERESTING IS HOW PAUL RYAN'S OWN TAX POLICY PROPOSALS HAVE EVOLVED. YOU KNOW, HIS ORIGINAL ROAD MAP PLAN WOULD HAVE ELIMINATED TAXES ON CAPITAL GAINS, DIVIDENDS AND INTEREST. WHICH, YOU KNOW, WE'VE REPORTED THAT THAT WOULD HAVE BEEN A ONE PERCENT TAX RATE FOR MITT ROMNEY IN 2010. NOW HE DIDN'T PUT THAT IN HIS BUDGET. BASICALLY BECAUSE YOU COULDN'T PASS THAT. IN THE CONGRESS. INSTEAD HE HAS THIS SORT OF TAX REFORM IDEA OF 25%, 10. MITT ROMNEY SAID, WELL, I'LL HAVE A 20% ACROSS-THE-BOARD TAX BREAK AND DELETE SOME DEDUCTIONS TO PAY FOR IT. THE PROBLEM IS IT'S HARD TO GET THE MATH TO ADD UP SO THAT YOU'RE NOT GETTING A BIG TAX BREAK FOR THE WEALTHIEST AMERICANS. ROMNEY AGAIN ON "60 MINUTES" SAID, "HEY, I'M NOT GOING TO HAVE THE WEALTHIEST AMERICANS PAY A SMALLER SHARE."

>> Ifill: HE DIDN'T SAY HOW. HE DIDN'T SAY HOW. I THINK THAT'S GOING TO BE A REAL PROBLEM FOR THE ROMNEY FOLKS. ARE THEY GOING TO EITHER PUT MORE DETAIL OUT THERE OR HOW ARE THEY GOING TO HANDLE THIS BECAUSE, YOU KNOW, THE OBAMA CAMPAIGN HAS BEEN BASING THEIR CAMPAIGN FOR THE PAST YEAR, THEY KNEW THE ECONOMY WASN'T GOING TO BE GREAT. THEY'VE BEEN BASING THEIR CAMPAIGN FOR THE LAST YEAR ON THE ISSUE OF FAIRNESS. THEY CAN JUMP FOR JOY OVER THIS RYAN PICK BY SAYING, LOOK HERE'S A GUY WHO IS CUTTING MEDICARE. HE'S CUTTING MEDICAID. HE'S CUTTING FOOD STAMPS. HE'S CUTTING TRANSPORTATION. HE'S CUTTING EVERYTHING. HE'S NOT WILLING TO RAISE A PENNY OF TAXES ON THE WEALTHIEST AMERICANS.

>> Ifill: WHICH ARGUMENT -- WE DON'T HAVE A LOT OF TIME -- WHICH ARGUMENT HAS THE MOST TRACTION RIGHT NOW, ROBERT GREENSTEIN.

>> I'M NOT SURE WHAT HAS THE MOST TRACTION POLITICALLY. THIS IS A VERY STARK CONTRAST. THE RYAN BUDGET TAKES OVER 60% OF IT BUDGET CUTS FROM PROGRAMS FOR THE MOST VULNERABLE AMERICANS: FOOD STAMPS, MEDICAID, HOUSING ASSISTANCE, AND THE MATH DOESN'T ADD UP TO AVOID A HUGE TAX BREAK AT THE TOP BECAUSE WHENEVER WE'VE CUT TAX RATES BEFORE, LIKE UNDER RONALD REAGAN, THE WAY THAT THEY AVOIDED IT BEING A HUGE TAX CUT AT THE TOP WAS TO RAISE THE TAX RATE ON CAPITAL GAINS SO THAT IT WAS THE SAME AS THE REGULAR INCOME TAX RATE. RYAN HAS SAID HE WOULDN'T DO THAT.

>> Ifill: WE HAVE TO BE FAIR HERE.

>> JT TO PUT IT SIMPLY, WE ARE NOW IN FOURTH YEAR OF TRILLION DOLLAR DEFICITS. WE'RE ON A PATH IN WHICH THE PUBLIC DEBT WILL BE TWICE THE SIZE OF THE ENTIRE ECONOMY. WE NEED TO DO SOMETHING ABOUT THAT. YOU MAY DISAGREE WITH PORTIONS OF CHAIRMAN RYAN'S PROPOSAL, BUT YOU CAN HAVE NO DOUBT THAT SOMETHING HAS TO BE DONE TO CORRECT THE PATH WE'RE.

>> Ifill: PATRICK KNUDSON, BOB GREENSTEIN, STEVEN DENNIS, THANK YOU ALL VERY MUCH.

>> Woodruff: WE'RE JOINED BY NEWSHOUR POLITICAL EDITOR CHRISTINA BELLANTONI. WELCOME TO YOU BOTH. WHAT DOES THIS SAY ABOUT GOVERNOR ROMNEY, DAN?

>> TWO THINGS. ONE IS SOMETHING WE OFTEN UNDERESTIMATE. THE PERSONAL NATURE OF A PICK LIKE THIS, ALL OF THESE PRESIDENTIAL CANDIDATES WANT COMFORT WITH THE PERSON THEY FIND AS THEIR RUNNING MATE. I THINK IN THIS CASE WHAT IT TALKS ABOUT IS A KIND OF, IF I CAN, THE ESSENTIAL GIEND OF GEEKINESS OF THE TWO PEOPLE. THEY ARE NUMBERS PEOPLE. THEY ARE NUMBERS CRUNCHERS. THIS MAY BE THE FIRST POWER POINT TICKET WE'VE HAD IN AMERICAN POLITICAL HISTORY. SOMETHING YOU WOULDN'T SAY ABOUT PRESIDENT OBAMA AND JOE BIDEN OR THE LAST REPUBLICAN TICKET. THE SECOND THING I THINK IT SAYS IS IT GIVES US SOME SENSE OF THE KIND OF CAMPAIGN THAT GOVERNOR ROMNEY WOULD LIKE TO THINK HE WANTS TO RUN. IN THAT SENSE WHAT THIS SAYS IS HE WANTS TO RUN A CAMPAIGN ON THE ECONOMY BUT ALSO ON THE BIG FISCAL CHOICES THAT HE THINKS CONTRIBUTE TO THE FUTURE OF THE COUNTRY. IN PICKING RYAN, HE'S MADE AN EXPLICIT STATEMENT ABOUT THAT.

>> Woodruff: SO, CHRISTINA, WHAT DOES THAT SAY ABOUT WHAT RYAN BRINGS TO THE TICKET IN TERMS OF HIS STRENGTHS?

>> SURE. WELL, I THINK PARTICULARLY APPEALING TO THE AT A PARTY WHICH HAS MADE ITS FOCUS FISCAL ISSUES. WHETHER OR NOT THEY ACTUALLY UNDERSTAND ALL THE DETAILS IN THE BUDGET WHICH WE'VE BEEN TALKING ABOUT TONIGHT IS GOING TO BE PRETTY IMPORTANT. BUT THEY LIKE THE FACT THAT THIS IS SOMEONE WHO TALKS ABOUT WE CAN'T KEEP PUTTING THIS BURDEN ON OUR, YOU KNOW, ON OUR CHILDREN, I DON'T REMEMBER THE OVERSPENDING IN WASHINGTON. THIS IS SOMETHING HE'S ABLE TO TALK ABOUT, COMMUNICATE IN A PRETTY AUTHENTIC WAY. DON'T FORGET HE'S 42 YEARS OLD. THIS IS SOMEONE WHO IS ABLE TO CONNECT WITH A LITTLE BIT YOUNGER VOTERS. HE'S ABLE TO CAMPAIGN A LITTLE MORE CARE-FREESTYLE. I THINK YOU'RE GOING TO SEE A LOT OF THAT. YOU'RE GOING TO SEE HIM BE A LITTLE LOOSER.

>> Woodruff: SOMEONE NOTED PAUL RYAN IS THE SAME AGE AT MITT ROMNEY'S OLDEST SON.

>> ABSOLUTELY. I REMEMBER THE FIRST TIME I SAW THE TWO OF THEM TOGETHER ON THE STAGE WHICH WAS IN WISCONSIN BEFORE THE PRIMARY IN APRIL I WAS STRUCK ABOUT THE SIMILARITY. I MEAN YOU COULD LOOK AT PAUL RYAN AND SAY HE COULD BE ONE OF MITT ROMNEY'S SONS BUT WHAT WAS MOST STRIKING I THINK WAS THE COMFORT LEVEL THAT GOVERNOR ROMNEY HAD. HE WAS MORE RELAXED. YOU COULD SEE IT THAT DAY. HE WAS HAPPY TO DEFER TO PAUL RYAN ON SOME BUDGETARY QUESTIONS WHEN THEY GOT INTO THE Q&A. HE JUST LOOKED A LOT MORE RELAXED AS A CANDIDATE THAN WE SOMETIMES SEE. I THINK WE'VE SEEN THAT SINCE THE CHOICE WAS UNVEILED.

>> Woodruff: I WANT TO ASK BOTH OF YOU WHAT THIS SAYS NOW ABOUT WHAT ROMNEY NEEDS TO DO IN THE CAMPAIGN. CHRISTINA, HOW HAS THAT CHANGED OR HAS IT WITH THE PICK OF RYAN?

>> IT CAN PUT A LOT OF PRESSURE ON HIM TO GET SPECIFIC BECAUSE HE'S GOING TO KEEP BEING ASKED THIS QUESTION. IS IT THE RYAN BUDGET THAT YOU ARE PUTTING FORTH? THAT'S ONE AREA ABOUT IT. IT'S ALSO ABOUT ELEVATING THE CONGRESSMAN A LITTLE BIT TO BE THE SPARRING PARTNER WITH THE PRESIDENT. THEY'VE ALREADY DONE THAT A FEW DIFFERENT YEARS SINCE PRESIDENT OBAMA TOOK OFFICE. IT'S ELEVATING HIM A LITTLE BIT MORE. YOU'RE SEEING BARACK OBAMA OUT THERE ON THE STUMP ENGAGING WITH CONGRESSMAN RYAN AND REALLY TAKING A LOOK AT GOING AT CONGRESS... HE'S ALREADY BEEN DOING THAT ALL YEAR SAYING CONGRESS IS STANDING IN THE WAY AND NOT GETTING ANYTHING DONE. THAT WILL BE DEFINITELY PART OF THE DYNAMICS. FOR MITT KNEE HE NEEDS TO GET OUT THERE AND TALK ABOUT OTHER THINGS IF HE DOESN'T WANT THIS CAMPAIGN TO BE ABOUT THE CHOICE BETWEEN WASHINGTON REPUBLICANS AND THE WHITE HOUSE.

>> Woodruff: DOES THE ROMNEY CHALLENGE CHANGE, DAN, WITH THIS PICK?

>> I THINK IT'S THE SAME CHALLENGE. I THINK IT SHARPENS SOME OF THE DIFFERENCES. IT'S ONE OF THE REASONS THE DEMOCRATS ARE PRETTY HAPPY ABOUT THIS PICK AS MUCH AS REPUBLICANS ARE ENTHUSIASTIC BIT. THEY SEE THE ABILITY NOW TO DRAW VERY SHARP CON TRAVES AND ONCES THAT THEY SAY THE DEMOCRATS THINK WILL WORK IN THEIR FAVOR PARTICULARLY IN SOME OF THE KEY STATES. FOR GOVERNOR ROMNEY, IT IS STILL HOW DO YOU DRIVE HOME THE MESSAGE ABOUT THE ECONOMY AND WHAT HE WOULD DO ABOUT IT? HOW DO YOU DRIVE HOME THE IDEA THAT THE PRESIDENT HAS UNDERPERFORMED, HASN'T LED ON THE ECONOMY? THESE HAVE BEEN THE CHALLENGES ALL ALONG. I THINK THAT THEY ARE STILL THERE SO THAT IN A SENSE THE BASIC CONTOURS OF THE RACE AREN'T DIFFERENT. BUT WITH PAUL RYAN THERE'S JUST SOMETHING MORE SHARPLY ETCHED ABOUT IT RIGHT NOW.

>> Woodruff: DAN, WHAT ABOUT THE CHALLENGES FOR PRESIDENT OBAMA? HOW DOES IT CHANGE WHAT HE FACES?

>> WELL, I TALKED TO ONE OF HIS ADD VIEDORS ON SATURDAY ABOUT THIS. THEIR FEELING IS IS IN THE END THEY'RE NOT GOING TO BE TALKING ABOUT PAUL RYAN BY OCTOBER. THEY'RE STILL GOING TO BE TALKING ABOUT MITT ROMNEY AND THE BASIC CHOICE. THEY THINK THAT THE BATTLE LINES WERE PRETTY WELL DRAWN BEFORE BETWEEN THE KIND OF ECONOMIC PROGRAM THAT THE PRESIDENT ESPOUSES AND THE KIND OF FOCUS ON THE MIDDLE CLASS AND WHAT THEY WANT TO PORTRAY GOVERNOR ROMNEY AS, AS SOMEBODY WHO IS MUCH MORE SYMPATHETIC TO THE WEALTHY. BUT I THINK THAT IT WILL RAISE QUESTIONS ABOUT HOW SPECIFIC PRESIDENT OBAMA HAS BEEN ON SOME OF THESE ISSUES. I THINK PARTICULARLY ON WHETHER HE'S REALLY GIVEN REAL LEADERSHIP ON THE ISSUES OF THE FISCAL CRISIS THAT THE COUNTRY FACES.

>> Woodruff: IN MANY WAYS WE'LL BE LOOKING TO THE PRESIDENT, TO HIS CAMPAIGN, CHRISTINA, TO SEE WHAT SHIFT IN HIS TACTIC AND APPROACH BECAUSE OF THIS.

>> ABSOLUTELY. IT'S NOT JUST GOING TO BE ON FISCAL ISSUES. THEY'RE GOING T LOOKING AT CONGRESSMAN RYAN AND HIS POSITION ON SOCIAL ISSUES. THEY'VE BEEN TARGETING FEMALE VOTERS AS WE'VE TALKED ABOUT MANY TIMES ON THE NEWSHOUR. THAT'S SOMETHING YOU'RE GOING TO TO SEE PARTICULARLY CONGRESSMAN RYAN IS A PRO-LIFE CATHOLIC MUCH HE'S BEEN OUT THERE CAMPAIGNING ON THOSE ISSUES. HE'S GOING TO KEEP THAT UP GOING TO STATES LIKE IOWA, STATES LIKE MICHIGAN, PENNSYLVANIA, OHIO. THERE'S GOING TO BE A REALLY CRUCIAL AREA FOR BOTH CAMPAIGNS TO ENGAGE ON.

>> Woodruff: LET'S TALK FOR A MINUTE ABOUT THE ELECTORAL MAP, CHRISTINA. YOU'VE BEEN LOOKING AT THE MAP. CONGRESSMAN RYAN'S HOME STATE OF WISCONSIN WAS ALREADY CONSIDERED A BATTLE GROUND SWING STATE. WHAT DOES THI FOR WYSS CON IS S?

>> WISCONSIN IS SUCH AN INTERESTING STATE BECAUSE IT HASN'T ACTUALLY VOTED FOR A REPUBLICAN FOR PRESIDENT SINCE 1984 IN THE REAGAN LAND SLY. YOU'VE GOT A LOT OF REALLY CORE DEMOCRATIC SUPPORT THERE BUT IT HAS BEEN TRENDING REPUBLICAN AT THE STATE LEVEL FOR QUITE SOME TIME. YOU HAD SCOTT WALKER'S RECALL ELECTION WHICH HE SURVIVED. HIS INITIAL ELECTION WHEN HE BECAME GOVERNOR. CONGRESSIONAL RACES AND THE LEGISLATURE. SO THERE'S A LOT OF DYNAMICS THERE. A VERY, VERY ENGAGED REPUBLICAN PARTY IN THAT STATE NOT TO MENTION THE REPUBLICAN NATIONAL COMMITTEE CHAIRMAN REINCE PRIEBUS IS FROM THERE. WE LOOK AT OUR VOTE 2012 MAP CENTER YOU CAN SEE ON OUR SITE WE HAVE IDENTIFIED THE SWING STATES HERE, IF YOU ADD WISCONSIN THAT MAKES 10 ELECTORAL COLLEGE VOTES THAT COULD REALLY SHAKE THINGS UP A LITTLE BIT. ALL OF THAT SAID WE'VE TALKED A LITTLE BIT ABOUT THIS ISSUE WITH THE RYAN BUDGET AND CHANGES TO MEDICARE AND PARTICULARLY WHAT THAT COULD DO IN FLORIDA WITH SENIOR CITIZENS THERE AND WHETHER THAT MAKES THAT LESS OF A COMPETITIVE STATE FOR GOVERNOR ROMNEY.

>> Woodruff: THAT'S RIGHT, DAN. SOME OTHER STATES COME INTO FOCUS MORE BECAUSE OF THE RYAN PICK.

>> VERY MUCH SO. I THINK THAT AS CHRISTINA SAID THAT THE ONE ASPECT OF BRINGING PAUL RYAN ON TO THE TICKET IS I THINK IT GUARANTEES A MUCH MORE VIGOROUS DEBATE ABOUT THE FUTURE OF MEDICARE. THAT CAN BE DIFFICULT FOR REPUBLICANS AND PARTICULARLY IN A STATE LIKE FLORIDA. ALSO IN IOWA. ALSO IN OHIO. ALSO IN PENNSYLVANIA. BUT JUST LOOK AT FLORIDA. THAT'S A STATE THAT IF GOVERNOR ROMNEY DOESN'T WIN, THERE'S ALMOST NO WAY HE CAN WIN. THERE'S A PATH BUT IT IS A VERY NARROW PATH WITHOUT FLORIDA.

>> Woodruff: WELL, 27 ELECTORAL VOTES IF I'M NOT MISTAKEN. DAN BALZ, CHRISTINA BELLANTONI, THANK YOU BOTH.

>> THANK YOU.

>> Ifill: YOU CAN FIND MORE ONLINE ON OUR POLITICS PAGE. JUDY, CHRISTINA, AND I TALK ABOUT THE VICE PRESIDENTIAL PICK IN THIS WEEK'S POLITICAL CHECKLIST. PLUS, WE'VE POSTED JUDY'S 2011 INTERVIEW WITH CONGRESSMAN RYAN. AND A PROGRAMMING NOTE-- WE PROMISED TO BRING YOU A CONVERSATION TONIGHT WITH GOVERNOR ROMNEY, BUT THE CAMPAIGN CANCELED THAT. WE HOPE TO RESCHEDULE SOON.

>> Woodruff: AND ONE MORE CAMPAIGN STORY: THE COMMISSION ON PRESIDENTIAL DEBATES HAS SELECTED MODERATORS FOR THREE PRESIDENTIAL DEBATES, AND ONE BETWEEN THE VICE PRESIDENTIAL CANDIDATES THIS FALL. OUR OWN JIM LEHRER WILL MODERATE THE FIRST ON OCTOBER 3 IN DENVER. IT CENTERS ON DOMESTIC ISSUES. THE SECOND WILL BE A TOWN MEETING MODERATED BY CANDY CROWLEY OF CNN ON OCTOBER 11 ON LONG ISLAND. BOB SCHIEFFER OF CBS NEWS WILL DO THE THIRD FORUM ON OCTOBER 22 IN BOCA RATON, FLORIDA, FOCUSED ON FOREIGN POLICY. THE VICE PRESIDENTIAL DEBATE WILL BE MODERATED BY MARTHA RADDATZ OF ABC NEWS ON OCTOBER 16 IN DANVILLE, KENTUCKY. JIM HAS PRESIDED OVER 11 PRESIDENTIAL AND VICE PRESIDENTIAL DEBATES, BEGINNING IN 1988. AND HE AUTHORED A BOOK ABOUT THEM LAST YEAR TITLED "TENSION CITY: INSIDE THE PRESIDENTIAL DEBATES FROM KENNEDY-NIXON TO OBAMA-MCCAIN." JEFF SAT DOWN WITH JIM EARLIER THIS AFTERNOON. Brown: SO, JIM, THE INVITATION COMES TO YOU. WERE YOU SURPRISED? YOU KNOW, YOU'VE SAID IN THE PAST, NO MORE. WHY DID YOU AGREE THIS TIME?

>> WELL, I AGREED BECAUSE OF THE FORMAT. THE COMMISSION OVER A PERIOD OF WEEKS WORKED ON A FORMAT THAT IS NEW AND HAS THE POTENTIAL FOR BEING TERRIFIC. WHICH IS MORE OPEN. IT'S GOING TO BE SIX SEGMENTS, 15 MINUTES EACH. THERE BE A QUESTION AND ANSWER AT THE BEGINNING OF EACH SEGMENT, BUT THE REST OF THE TIME IS OPEN TIME. IT ENCOURAGES THE CANDIDATES TO ADDRESS EACH OTHER, QUESTION EACH OTHER AND IT WAS AN OPPORTUNITY, SOMETHING THAT I VERY MUCH BELIEVED IN AND WAS ASKED BY THE COMMISSION WAY BACK IN THE SPRING AS A PERSON WHO IS NOT GOING TO BE PARTICIPATING IN THE DEBATES...

>> Brown: JUST TO THINK ABOUT HOW TO DO IT.

>> Lehrer: SEVERAL IDEAS. JUST A MEETING AS A COMMISSION, NOT TO MAKE ANY DECISIONS BUT TO GATHER INFORMATION. I WAS ASKED TO COME IN AS A RESOURCE. ONE OF THE QUESTIONS THEY ASKED ME WAS ABOUT THIS IDEA OF THE 15-MINUTE SEGMENTS. I SAID IT WAS TERRIFIC.

>> Brown: BECAUSE WE TALKED ABOUT THIS WHEN YOUR BOOK CAME OUT. I KNOW WE TALKED ABOUT ALL THE DIFFERENT FORMATS THERE HAVE BEEN. FRUSTRATIONS WITH ALL OF THEM.

>> Lehrer: SURE. Brown: YOU SAID BEFORE THAT YOU LIKE MORE FREE WHEELING, OPEN, WHEN THEY CAN REALLY ENGAGE WITH EACH OTHER.

>> Lehrer: THAT'S WHAT THIS HAS THE POTENTIAL. IN FACT, IT IS READY-MADE. THE OPPORTUNITY FOR ME TO SEE IF I CAN MAKE THIS WORK WAS... I SAID, AS YOU KNOW, I SAID NO MORE. I'VE DONE MY 11. I HAVE THE PSYCHIC SCARS TO SHOW IT. IT'S HARD. IT'S HARD WORK.

>> Brown: YOU SAID IT WAS WALKING THE KNIFE'S EDGE...

>> Lehrer: WALKING ON THE BLADE OF A SHARP KNIFE. I'VE DONE THAT. BUT THIS ONE, I'M NOT SUGGESTING THAT IT WAS ALL FOR GOODNESS AND MERCY REASONS. IT WAS EXCITING TO ME TO, WHEN FINALLY CONFRONTED WITH THE INVITATION, CONFRONTED WITH THE OPPORTUNITY TO DO THIS WAS EXCITING. I COULD NOT SAY NO.

>> Brown: OF COURSE, MAJOR NEWS IN THE CAMPAIGN. WE'RE COVERING IT THROUGHOUT THE SHOW TODAY WITH THE ANNOUNCEMENT OF PAUL RYAN AS MITT ROMNEY'S RUNNING MATE. A LOT OF THE EARLY COMMENTARY IS ABOUT SETTING UP MORE OF A REAL DEBATE ABOUT THE ROLE AND SIZE OF GOVERNMENT. NOW YOU'RE LOOKING AT A DEBATE THAT WILL BE OVER DOMESTIC POLICY, RIGHT?

>> Lehrer: THAT'S RIGHT. Brown: I KNOW IT'S EARLY, SO YOU JUST STARTED TO THINK ABOUT THIS. BUT MINING FOR THEMES, MINING FOR INFORMATION, WHAT WILL YOU BE LOOKING AT DO YOU THINK?

>> MOST OF IT IS PRETTY OBVIOUS. ONE OF THE THINGS THAT HAS ALREADY CRYSTALLIZED ARE SOME VERY, VERY STARK DIFFERENCES BETWEEN WHAT THESE TWO SETS OF CANDIDATES HAVE IN MIND FOR THE COUNTRY FOR THE NEXT FOUR YEARS. OBAMA-BIDEN IF THEY'RE RE-ELECTED, ROMNEY-RYAN IF THEY ARE ELECTED. BUT MY JOB WILL BE STRICTLY TO ENGAGE ON THOSE STARK DIFFERENCES. SO THE... ALTHOUGH THIS IS BEING DONE FOR THE VOTERS. THIS ISN'T A TELEVISION PROGRAM. THESE ARE NOT PEOPLE OUT THERE WATCHING FOR RATINGS. THESE ARE PEOPLE WHO ARE DECIDING FOR WHOM TO VOTE FOR PRESIDENT OF THE UNITED STATES. MY JOB IS STRICTLY TO HELP THE CANDIDATES, HELP THE CANDIDATES EXPLAIN IN A WAY THAT THE VOTERS UNDERSTAND WHAT THE CHOICES REALLY ARE.

>> Brown: HELP THE CANDIDATES DO THAT.

>> YES. THE CANDIDATES NEED TO BE ABLE TO EXPLAIN IT. NEED TO BE ABLE TO EXPLAIN THEIR POSITIONS. BUT IT'S IN A WAY THAT IS UNDERSTANDABLE AND THAT IS... THERE'S ENOUGH TIME THERE FOR THE MODERATOR IN THE CASE OF THE FIRST DEBATE WHICH I'LL BE MODERATING, TIME FOR ME TO KIND OF PROBE AND ASK FOLLOW-UPS AND TRY TO GET THEM TO ENGAGE IN ALL OF THAT. REMEMBER IT'S BEING DONE FOR THE VOTERS. THAT'S IT. THAT'S WHAT IT'S ALL ABOUT.

>> Brown: WE TALK ALL THE TIME THESE DAYS ABOUT DOING POLITICS, DOING THE NEWS MEDIA IN THE AGE OF SOCIAL MEDIA. IN THE AGE OF 24-HOUR CYCLE. INSTANT EVERYTHING. RIGHT? DO YOU THINK THAT THE ROLE OF THE DEBATES CHANGES AT ALL IN THIS ERA, EITHER MORE OR LESS IMPORTANT?

>> I THINK... I DON'T KNOW WHETHER IT'S MORE OR LESS IMPORTANT. I KNOW THEY'RE EXTREMELY IMPORTANT. ONE THING HAS NOT CHANGED. ALL THE SOCIAL MEDIA STUFF IN THE WORLD, SAY, OCTOBER 3, THE FIRST DEBATE, IN THAT 90 MINUTES IT WILL BE THE FIRST TIME THAT THESE CANDIDATES FOR PRESIDENT WILL BE SITTING OR STANDING SIDE BY SIDE TALKING ABOUT THE SAME THINGS. SOCIAL MED WILL PLAY AN INPUT ROLE GOING IN AND AN OUTPUT ROLE COMING OUT. NO QUESTION ABOUT IT IN TERMS OF REACTION AND ALL OF THAT. BUT WHAT IS GOING TO BE... WHAT THE PEOPLE ARE GOING TO SEE AND HEAR ARE THE REAL WORDS OF THESE TWO REAL MEN TALKING. IT HAS NOTHING TO DO WITH THE SOCIAL MEDIA. IT HAS A LOT... THE SOCIAL MEDIA HAS A LOT TO DO WITH THE BUILD-UP AND HOW IT PLAYS. ET CETERA BECAUSE THESE THINGS TEND TO HAVE AN AWFUL LOT OF LIFE AFTERWARD. SOCIAL MEDIA WILL BE PART OF THE LIFE AFTERWARD. BUT THE EVENT ITSELF WILL BE OLD-FASHIONED. IN THE BEST SENSE OF THE WORD.

>> Brown: THAT'S HOW YOU JUDGE SUCCESS, RIGHT, BY THE DEGREE TO WHICH THEY ENGAGE AND PEOPLE SEE THEM?

>> ABSOLUTELY RIGHT. DO THEY SEE THE DIFFERENCES? NOW I KNOW WHAT MY CHOICE IS. BOOM. HE'S IN FAVOR OF THIS. HE'S NOT IN FAVOR OF THAT. THAT'S NOT WHAT I FEEL, ET CETERA. PUT YOUR OWN VIEWS IN THE CONTEXT OF WHAT THESE TWO MEN BELIEVE AND SAY THEY WILL DO SPECIFICALLY WHAT THEY WILL DO.

>> Brown: OCTOBER 3 IN DENVER. THE FIRST PRESIDENTIAL DEBATE. JIM, YOU'RE LOOKING FORWARD TO THIS.

>> Lehrer: ABSOLUTELY I AM. I'M EXCITED ABOUT IT.

>> Brown: JIM LEER, THANKS. THANK YOU.

>> Woodruff: JEFF INTERVIEWED JIM LAST YEAR ABOUT HIS BOOK "TENSION CITY." FIND THAT AND A LINK TO THE DOCUMENTARY "DEBATING OUR DESTINY" ON OUR WEB SITE. WE'LL BE BACK SHORTLY WITH A LOOK AT THE POWER SHIFT IN EGYPT, BUT FIRST, THIS IS PLEDGE WEEK ON PBS. THIS BREAK ALLOWS YOUR PUBLIC TELEVISION STATION TO ASK FOR YOUR SUPPORT, AND THAT SUPPORT HELPS KEEP PROGRAMS LIKE OURS ON THE AIR.

>> Ifill: FOR THOSE STATIONS NOT TAKING A PLEDGE BREAK, WE HAVE A DIFFERENT TAKE ON THE OCCUPY MOVEMENT, THE GRASS ROOTS RESPONSE TO THE FINANCIAL CRISIS MARKED BY TENT CAMPS AND PROTESTS. WHAT STARTED WITH 2,000 PARTICIPANTS IN NEW YORK CITY SPREAD TO HUNDREDS OF CITIES AROUND THE WORLD. IN MANY OF THE MAKESHIFT COMMUNITIES, POSTER ARTISTS DOCUMENTED THE GOALS AND ASPIRATIONS OF THE MOVEMENT NOW, A CALIFORNIA GALLERY HAS ASSEMBLED THE WORK OF 25 ARTISTS IN AN EXHIBIT CALLED "OCCUPY BAY AREA." SCOTT SHAFER OF KQED SAN FRANCISCO HAS OUR STORY. Reporter: LAST SEPTEMBER WHEN THE FIRST TENTS WENT UP JUST BLOCKS FROM WALL STREET, IT WAS HARD TO IMAGINE A FLEDGLING STAND AGAINST ECONOMIC INEQUALITY WOULD EVENTUALLY RICHOCHET WORLDWIDE.

>> ONE OF THE MOST DRAMATIC FEATURES OF IT IS THAT IT'S BEEN ALMOST COMPLETELY NONVIOLENT, FROM THE BEGINNING, YOU SAW MORE OF A KIND OF AN ARTISTIC STATEMENT. PEOPLE KIND MUCH PEACEFULLY OCCUPYING THE PARKS WITH GUITARS, SINGING SONGS AND MAKING ART.

>> Reporter: ONCE IT TOOK ROOT, THE MESSAGE OF "OCCUPY" WENT VIRAL, BRANDED INITIALLY BY A SINGLE ICONIC IMAGE.

>> IT ALL STARTEDDED OUT WITH A POSTER OF A WOMAN LIKE A MODERN BALLET DANCER STANDING ON ONE FOOT ON TOP OF THE BULL ON WALL STREET. IT WAS VERY CRYPTIC. IT JUST SAID, "OCCUPY WALL STREET: SEPTEMBER 17. BRING TENTS."

>> Reporter: THE EDITORS OF AD BUSTERS, A CANADIAN ANTICONSUMERRIST MAGAZINE WERE THE CREATE TIVE MINDS BEHIND THE BALLERINA AND THE BULL POSTER. AS THE MOVEMENT GREW TO CITIES LIKE OAKLAND AND SAN FRANCISCO, OTHER ARTISTS FOLLOWED THEIR LEAD INCLUDING BERKELEY ILLUSTRATOR.

>> YOU'RE GOING TO GRAB PEOPLE BY THEIR EYEBALLS. SOMETHING THAT IS EITHER VERY BEAUTIFUL OR VERY FUNNY OR JUST SOME POWERFUL AESTHETIC STATEMENT THAT IS GOING TO MAKE THEM LOOK AND THEN MAYBE THEY'LL SHOW UP.

>> Reporter: HE MAKES A LIVING PRODUCING GRAPHIC NOVELS AND IS A TEARIAL COVERS FOR THE NEW YORKER MAGAZINE BUT HIS TRUE LABOR OF LOVE HAS LONG BEEN GEUR ILL A-STYLE STREET ART.

>> IF SOMETHING IS ON THE STREET AND DOESN'T GET PEELED OFF OR COVERED UP AND IT'S FOR A FULL WEEK, THOUSANDS OF PEOPLE ARE GOING TO SEE IT. WEALTHY PEOPLE, POOR PEOPLE. EVERYBODY.

>> Reporter: OVER THE PAST YEAR HE'S CREATED A SERIES OF BOLD IMAGES FOR OCCUPY GATHERINGS.

>> THIS WAS THE POSTER THAT GOT PICKED UP THE MOST. I THINK IT'S BECAUSE IT'S A VERY OPTIMISTIC IMAGE. SO I THINK THAT'S WHY THIS ONE STUCK IN THE COLLECTIVE CONSCIOUSNESS HERE AS WELL AS IN OTHER COUNTRIES.

>> Reporter: LIKE ERIC, OAKLAND ARTISTS HAVE LONG HAD A PASSION FOR ART THAT BOTH AGITATES AND INSPIRES.

>> THIS IS THE TRANSLATED VERSION IN SPANISH, BUT THE INITIAL VERSION THAT WE DID WAS DONE FOR AN ACTION HERE IN OAKLAND.

>> Reporter: EVEN BEFORE OCCUPY, THE TWO WERE MAKING SCREEN PRINTS TO PROMOTE A VARIETY OF CAUSES IN A STYLE FIRMLY ROOTED IN CHICANO POSTER ART TRADITION, HEROIC PORTRAITS OF EVERYDAY PEOPLE ARE A RECURRING THEME IN THEIR WORK.

>> THIS IS THE FIRST DESIGN THAT WE DID IN RELATIONSHIP TO THE EMERGENCE OF OCCUPY. IT WAS IN RESPONSE TO THE LACK OF PEOPLE THAT LOOKED LIKE MY DAD AND OTHER PEOPLE'S COLOR. IT SAYS WE ARE THE 99%. I'M BLAMED FOR THE ECONOMIC CRISIS BUT WHAT ABOUT THE WALL STREET BANKS?

>> LAST SUMMER WE PROBABLY PRODUCED AND GIVEN OUT SOMETHING LIKE 3,000 POSTERS.

>> Reporter: IN A DEVELOPMENT MOST ACTIVIST ARTISTS COULDN'T HAVE IMAGINED THEIR WORK IS NOW LINING THE HALLS OF A MAJOR MUSEUM. IT'S PART OF AN OCCUPY ART EXHIBITION. IF YOU THINK ABOUT IT, IT'S A PRETTY RADICAL IDEA GIVEN THAT THE MOVEMENT IS LESS THAN A YEAR OLD. IT'S VERY UNUSUAL THAT AN INSTITUTION WOULD HAVE SOMETHING TOPICAL LIKE THAT WHILE IT'S HAPPENING. TYPICALLY A MUSEUM, IF THEY'RE GOING TO DEAL WITH SOMETHING THAT HAS SOCIAL CRITICISM IN IT AT ALL, THEY'LL WAIT UNTIL IT COOLS OFF.

>> THE INSPIRATION FOR DOING THE OCCUPY BAY AREA EXHIBITION WAS SEEING THE STRENGTH OF THE POLITICAL POSTERS THAT WERE COMING OUT OF THE OCCUPY MOVEMENT. WE WERE VERY CONSCIOUS OF WANTING TO SHOW A LOT OF DIFFERENT STYLE, A LOT OF DIFFERENT APPROACHES. SOME ARE VERY CONCEPTUAL AND MINIMAL LIKE THE ONES WITH THE PIE THAT SAYS OCCUPY EVERYTHING. AND OTHERS ARE JUST VERY PERSONAL ILLUSTRATIONS THAT ARE VERY SUBJECTIVE. THERE'S AN INTIMACY TO THE IMAGE.

>> POWER TO THE PEOPLE! EVEN THOUGH OCCUPY STARTED ON WALL STREET, IT WAS TAKEN UP IN THE BAY AREA WITH GREAT FERVOR BECAUSE WE HAVE A DEEP LEGACY OF POLITICAL ACTIVISM HERE.

>> Reporter: JUXTAPOSED WITH THE CURRENT POSTERS ARE IMAGES FROM PAST POLITICAL STRULES INCLUDING PRINTS FROM FAMOUS ARTISTS.

>> YOU SEE POSTERS BY ARTISTS WORKING NOW WHO CLEARLY HAVE LOOKED AT EMERY DOUGLAS WHO WAS THE MAIN GRAPHIC DESIGNER FOR THE BLACK PANTHERS, HAVE CLEARLY LOOKED AT THE PSYCHEDELIC POSTERS FROM THE 1960s. ONE ORIGINALLY FROM IRAN LANDED PHOTOGRAPHY FROM OCCUPY MOVEMENT WITH THE ARAB SPRING. SHE BLENDED THOSE. SHE'S CREATED A MOSAIC, A KIND OF ISLAMIC PATTERN OF THESE IMAGES. ANOTHER ARTIST IS MEGAN WILSON WHO HAS MADE OVER 100 COLORED PANELS THAT SAY WE ARE THE 99% IN ABOUT 45 DIFFERENT CLANG LANGUAGES. ... IN ABOUT 45 DIFFERENT LANGUAGES.

>> IT IS KIND OF LIKE THIS PASSION OF HOWO YOU REFLECT AS YOU'RE STILL MOVING? LIKE WE'RE SO ACTION ORIENTED THAT WE DON'T TAKE TIME TO REALLY UNDERSTAND, YOU KNOW, WHAT WORKED. WHAT POSTERS DID WE CREATE THAT ACTUALLY MOVES PEOPLE THAT MADE THEM FEEL CONNECTED THAT MADE THEM GET INVOLVED?

>> Woodruff: THE "OCCUPY BAY AREA" EXHIBIT ALSO INCLUDES DOCUMENTARY PHOTOGRAPHS AND VIDEOS. IT'S ON VIEW AT THE YERBA BUENA CENTER FOR THE ARTS IN SAN FRANCISCO THROUGH OCTOBER 14.

>> Ifill: FINALLY TONIGHT, EGYPT'S NEW PRESIDENT MAKES A SURPRISE MOVE TO SEIZE MORE POLITICAL POWER AND CURB THE AUTHORITY OF THE MILITARY. MARGARET WARNER HAS THE STORY.

>> Warner: THE NEWS WAS CHEERED LAST NIGHT BY SUPPORTERS OF PRESIDENT MOHAMED MORSI, MANY OF THEM FELLOW MEMBERS OF THE MUSLIM BROTHERHOOD, WHO RALLIED IN CAIRO'S TAHRIR SQUARE.

>> ( translated ): THESE ARE BOLD DECISIONS THAT WE HAVE BEEN WAITING FOR FOR SO LONG. THESE DECISIONS ARE TO COMPLETE THE REVOLUTION, THE REVOLUTION STARTED TO SUCCEED.

>> Warner: THEY WERE REACTING TO MORSI'S SURPRISE OUSTER OF THE COUNTRY'S TOP MILITARY BRASS, INCLUDING POWERFUL DEFENSE MINISTER HUSSEIN TANTAWI. ALL WERE ORDERED TO RETIRE. MORSI ALSO NULLIFIED A CONSTITUTIONAL DECLARATION ISSUED JUST BEFORE HIS ELECTION, SHIFTING VAST POWERS FROM THE PRESIDENT TO THE MILITARY.

>> ( translated ): TODAY'S DECISIONS ARE NOT DIRECTED AT CERTAIN PERSONS OR MEANT TO EMBARRASS CERTAIN INSTITUTIONS.

>> Warner: HIS ACTION COMES ON THE HEELS OF HIS SACKING THE NATION'S INTELLIGENCE CHIEF AFTER 16 EGYPTIAN SOLDIERS WERE KILLED BY MILITANTS IN SINAI. TANTAWI, LONGTIME DEFENSE MINISTER UNDER FORMER PRESIDENT HOSNI MUBARAK, TOOK PART IN FORCING MUBARAK'S RESIGNATION EARLY LAST YEAR. AND FOR 18 MONTHS AFTER, HE AND THE SUPREME COUNCIL OF THE ARMED FORCES RULED EGYPT. TO DISSECT THIS LATEST TWIST IN EGYPT'S POLITICAL SAGA, WE TURN TO MICHELE DUNNE, DIRECTOR OF THE ATLANTIC COUNCIL'S CENTER FOR THE MIDDLE EAST. SHE PREVIOUSLY SERVED IN THE STATE DEPARTMENT AND THE NATIONAL SECURITY COUNCIL STAFF. MICHELLE DUNN, WELCOME BACK.

>> THANK YOU, MARGARET. Warner: HOW BIG A MOVE IS THIS ON MOHAMMED MORSI'S PART AND WHY DID HE DO IT?

>> PRESIDENT MORSI DID THIS TO ROLL BACK RESTRICTIONS ON HIS POWER THAT WERE PUT IN PLACE JUST BEFORE HE WAS DECLARED THE WINNER OF THE PRESIDENTIAL ELECTION IN JUNE. SO HE HAS OVERTURNED THIS SUPPLEMENTARY CONSTITUTIONAL DECLARATION THAT GAVE THE MILITARY BROAD POLITICAL POWERS, AND HE ALSO, OF COURSE, REPLACED THE POWERFUL DEFENSE MINISTER WHO WAS IN HIS JOB FOR MORE THAN 20 YEARS, AND THE CHIEF OF STAFF AS WELL AS SEVERAL OTHERS: THE COMMANDER OF THE AIR FORCE, THE NAVY, ET CETERA. THERE WAS A WHOLE BUNCH OF MILITARY REPLACEMENTS.

>> Warner: IF YOU LOOK AT IT IN THE BIG PICTURE, IS IS THIS PRESIDENT MORSI TRYING TO SHIFT POWER, CONSOLIDATE POWER IN THE PRESIDENCY AND TO DIMINISH THE MILITARY? WAS IT A QUESTION OF GETTING RID OF ELEVATING PEOPLE HE THOUGHT WERE MORE LOYAL?

>> IT'S A MATTER OF PUTTING THE MILITARY BACK INTO THE PLACE THAT THEY OCCUPIED BEFORE PRESIDENT MUBARAK WAS REMOVED IN FEBRUARY 2011. SO PUTTING THE MILITARY BACK INTO PURELY A MILITARY ROLE AND REMOVING THEM FROM ANY EXTRAORDINARY EXECUTIVE OR LEGISLATIVE POWERS. NOW THE THING THAT DOES CAUSE THEM CONCERN IS THAT MORSI HIMSELF NOW TOOK ON NOT ONLY FULL PRESIDENTIAL POWERS BUT LEGISLATIVE POWERS BECAUSE THE PARLIAMENT WAS DISSOLVED FOLLOWING THE SUPREME COURT DECISION A COUPLE OF MONTHS AGO, THERE ISN'T ONE. AND SO, YOU KNOW, THAT CAN LEAD SOME PEOPLE TO SAY, OH, THIS IS THE BROTHERHOOD TAKING OVER EGYPT.

>> Warner: I WANT TOET BACK TO THE CIVILIAN SIDE. FIRST LET ME ASK YOU A LITTLE BIT ABOUT THE MILITARY. ANY OF THE SENIOR BRASS THAT WERE OUSTED, NO ONE SQUAWKD ABOUT THIS. WAS THERE SOME SORT OF A DEAL?

>> THE PEOPLE THAT MORSI ELEVATED TO THE DEFENSE MINISTRY AND THE CHIEF OF STAFF AND SO FORTH WERE OTHER MEMBERS OF THE SUPREME COUNCIL OF THE ARMD FORCES. SO HE CHOSE VERY CAREFULLY. IF HE HAD TRIED TO BRING IN OUTSIDERS OR WHATEVER, I'M SURE THERE WOULD HAVE BEEN A PROBLEM. BUT IT LOOKS AS THOUGH FRANKLY HE WAS WORKING WITH OTHER MEMBERS OF THIS SAME BODY TO PUT THEM INTO SENIOR POSITIONS AND TO MOVE OUT OTHERS.

>> Warner: YOU'RE SAYING THAT THE MILITARY IS NOW NOT GOING TO BID, AS IT DID JUST TWO MONTHS AGO, FOR CONTROL OVER THE BUDGET, CONTROL OVER THE PRIME MINISTER, LEGISLATIVE AUTHORITY THAT THEY WANTED TO EXERCISE WITHOUT OVERSIGHT.

>> YES, THAT'S RIGHT. I MEAN BUT NOW WE HAVE TO SEE IF THIS STICKS. SO FAR IN EGYPT THINGS ARE QUIET. IT LOOKS AS THOUGH IT'S GOING TO STICK BUT THERE HAVE BEEN SO MANY TWISTS AND TURNS IN THIS EGYPTIAN TRANSITION, IT'S HARD TO SAY WHAT'S COMING NEXT. THERE'S STILL A BATTLE TO BE FOUGHT OVER THE NEW EGYPTIAN CONSTITUTION. NEW PARLIAMENTARY ELECTIONS AFTER THAT. AND IT'S REALLY HARD TO SAY WHETHER THE MILITARY WILL REASSERT ITSELF, IT STILL HAS A LOT OF ECONOMIC POWER. I THINK THE STRUGGLE FOR POWER BETWEEN THE CIVIL AND THE MILITARY IN EGYPT IS FAR FROM OVER.

>> Warner: ON THE CIVILIAN SIDE, YOU REFERENCE THE POSSIBILITY OF NEW PARLIAMENTARY ELECTIONS. RIGHT NOW WITH NO PARLIAMENT ESSENTIALLY LEGITIMATELY SITTI SITTING, IS THERE ANY CIVILIAN CHECK ON PRESIDENT MORSI'S POWER?

>> WELL, THERE ARE THE COURTS. THERE IS STILL THIS SUPREME CONSTITUTIONAL COURT AND SEVERAL OTHER COURTS IN EGYPT THAT ARE PRETTY MUCH WELL RESPECTED AND SO FORTH. THERE HAVE BEEN A FEW TUSSLES ALREADY BETWEEN MORSI AND THE COURTS. IT WAS THE COURTS THAT DISSOLVED THE PARLIAMENT IN WHICH MORSI'S PARTY HAD A NEAR MAJORITY AND SO FORTH. ONE OF THE THINGS THAT PEOPLE ARE WAITING TO SEE IS WHETHER HE'S GOING TO CHANGE SOME APPOINTMENTS OF SENIOR PEOPLE IN THE COURTS. THAT'S A POSSIBILITY. HE HAS RECENTLY APPOINTED A SENIOR JUDGE AS HIS VICE PRESIDENT AND A NEW JUSTICE MINISTER. THEY'RE ALREADY SPEAKING ABOUT INDEPENDENCE OF THE JUDICIARY. THEY MAY WANT TO REPLACE SOME OF THE SENIOR JUDGES WHO ARE STILL THERE FROM THE MUBARAK ERA.

>> Warner: THERE IS A CONCERN ON THE PART OF SECULAR OPPOSITION FIGURES WHO HELPED TOPPLE MUBARAK THAT THIS WAS GOING TO MEAN THAT MORSI'S ELECTION WOULD MEAN THE MUSLIM BROTHERHOOD ESSENTIALLY ESTABLISHING TOTAL CONTROL OVER THE GOVERNMENT. WHAT CAN YOU TELL FROM HIS APPOINTMENTS? ARE MOST OF HIS NEW APPOINTMENTS FROM THE BROTHERHOOD? WHAT DEGREE IS THIS AN ISLAMIST GOVERNMENT?

>> NO, HE APPOINTED A FEW MINISTERS FROM THE BROTHERHOOD. HE APPOINTED A PRIME MINISTER AND A NEW CABINET A LITTLE BIT MORE THAN A WEEK AGO. MOST OF THEM ARE NOT FROM THE BROTHERHOOD. THERE ARE A FEW. NOW HIS APPOINTMENTS WERE CRITICIZED AS BEING NOT VERY POWERFUL PEOPLE. TECHNOCRATS, NOT POLITICAL HEAVYWEIGHTS AND SO FORTH. BUT, NO, HE HAS BEEN CAREFUL, I THINK, AND HIS MILITARY APPOINTMENTS AND SO FORTH ARE PEOPLE WELL QUALIFIED FROM THE ESTABLISHMENT, NOT NECESSARILY KNOWN FOR ISLAMIST LEANINGS.

>> Warner: MICHELLE DUNN, THANK YOU SO MUCH.

>> YOU'RE WELCOME.

>> Woodruff: AGAIN, THE OTHER MAJOR DEVELOPMENTS OF THE DAY: THE NEWLY MINTED REPUBLICAN TICKET SET OFF IN DIFFERENT DIRECTIONS WITH BOTH MITT ROMNEY AND PAUL RYAN CAMPAIGNING IN SWING STATES; HOUSE REPUBLICANS SUED IN FEDERAL COURT TO MAKE ATTORNEY GENERAL ERIC HOLDER RELEASE MORE RECORDS ON "OPERATION FAST AND FURIOUS," A BUNGLED GUN-TRACKING OPERATION; AND HELEN GURLEY BROWN, THE LONGTIME EDITOR OF "COSMOPOLITAN" MAGAZINE, HAS DIED AT THE AGE OF 90. AND A CORRECTION BEFORE WE GO-- WE REPORTED EARLIER THAT BRITAIN FINISHED THIRD IN OVERALL MEDALS AT THE LONDON OLYMPICS. IN FACT, RUSSIA FINISHED THIRD. ONLINE, WE LOOK AT A DIFFERENT KIND OF OLYMPICS. HARI SREENEVASAN EXPLAINS.

>> Sreenivasan: THE U.S. RACKED UP THE MOST GOLD IN LONDON, BUT WHERE DO WE STAND IN THE EDUCATION OLYMPICS? WE HAVE A REPORT FROM OUR "AMERICAN GRADUATE" AFFILIATE, WAMU IN WASHINGTON, D.C. IF YOU SPEAK A LANGUAGE OTHER THAN ENGLISH, WE NEED YOUR HELP IN TRANSLATING VIDEO OF MITT ROMNEY NAMING PAUL RYAN AS HIS RUNNING MATE. FIND OUT MORE ABOUT OUR SUBTITLING PROJECT ON OUR HOMEPAGE. ECONOMIST LARRY KOTLIKOFF CONTINUES TO ANSWER YOUR HOWS, WHENS AND WHYS ON EVERYTHING SOCIAL SECURITY-RELATED. FIND HIS LATEST ANSWERS AND TRICKS ON "THE RUNDOWN." AND PAUL SOLMAN ASKS THE QUESTION, TO MOUSTACHE OR NOT TO MOUSTACHE? YOU BE THE JUDGE. JUST GO TO OUR "MAKING SENSE" PAGE. ALL THAT AND MORE IS ON OUR WEB SITE, newshour.pbs.org. GWEN.

>> Ifill: AND THAT'S THE NEWSHOUR FOR TONIGHT. ON TUESDAY, JEFF SITS DOWN WITH ROCK AND ROLL LEGEND GREGG ALLMAN, WHOSE MEMOIR CHRONICLES NEARLY 50 YEARS OF LIFE, LOVE, AND MUSIC. I'M GWEN IFILL.

>> Woodruff: AND I'M JUDY WOODRUFF. WE'LL SEE YOU ONLINE, AND AGAIN HERE TOMORROW EVENING. THANK YOU AND GOOD NIGHT.

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