PBS NewsHour; April 3, 2012 6:00pm-7:00pm PDT

Captioning sponsored by MacNEIL/LEHRER PRODUCTIONS

>> Ifill: PRESIDENT OBAMA LAUNCHED A BLISTERING ATTACK ON THE HOUSE-PASSED BUDGET TODAY, CALLING IT A "TROJAN HORSE" AND AN EXAMPLE OF "SOCIAL DARWINISM." GOOD EVENING. I'M GWEN IFILL.

>> Woodruff: AND I'M JUDY WOODRUFF. ON THE NEWSHOUR TONIGHT, WE HEAR SOME OF THE PRESIDENT'S REMARKS AND GET TWO VIEWS ON THE SUBSTANCE AND THE POLITICS OF THE BUDGET DEBATE.

>> Ifill: THEN WE LOOK AT THE SURGE IN CAR SALES, AS THE AUTO INDUSTRY CHALKS UP ITS BEST PERFORMANCE IN FOUR YEARS.

>> Woodruff: MARGARET WARNER EXAMINES THE COMING ELECTIONS IN EGYPT, AS THE MUSLIM BROTHERHOOD SWITCHES COURSE AND DECIDES TO FIELD A CANDIDATE FOR PRESIDENT.

>> Ifill: FROM EAST AFRICA, FRED DE SAM LAZARO REPORTS ON AN EFFORT TO TURN SMALL-SCALE FARMS INTO THRIVING BUSINESSES.

>> THE INDIVIDUAL SMALL FARM HOLDER IS THE LEAST POWERFUL PERSON ON THE PLANET. YOU CAN IMAGINE. WHEN WE AGGREGATE 100,000 OR MORE TOGETHER, THEN WE GET A LOT OF PURCHASING POWER. WE CAN GET THEM A GOOD DEAL, WE CAN DELIVER. WE CAN ADD A LOT OF VALUE.

>> Woodruff: AND AFTER KENTUCKY WINS THE N.C.A.A. BASKETBALL CHAMPIONSHIP, WE ASSESS THE RULE THAT ALLOWS YOUNG PLAYERS TO TURN PRO AFTER ONLY ONE YEAR IN COLLEGE.

>> Ifill: THAT'S ALL AHEAD ON TONIGHT'S NEWSHOUR. MAJOR FUNDING FOR THE PBS NEWSHOUR HAS BEEN PROVIDED BY:

>> CITI, SUPPORTING PROGRESS.

>> BNSF RAILWAY.

>> THE WILLIAM AND FLORA HEWLETT FOUNDATION, WORKING TO SOLVE SOCIAL AND ENVIRONMENTAL PROBLEMS AT HOME AND AROUND THE WORLD. 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: BUDGET POLITICS AND THE 2012 CAMPAIGN MERGED TODAY, AS PRESIDENT OBAMA LIT INTO REPUBLICANS AND THEIR PRIORITIES. HIS MAIN TARGET WAS THE HOUSE REPUBLICAN BUDGET PLAN. IT WOULD CUT THE DEFICIT BY $3.3 TRILLION IN THE NEXT DECADE, OVER AND ABOVE THE $4 TRILLION IN SAVINGS IN THE OBAMA BUDGET. THE PRESIDENT ADDRESSED THE ASSOCIATED PRESS ANNUAL MEETING IN WASHINGTON.

>> FOR MUCH OF THE LAST CENTURY, WE HAVE BEEN HAVING THE SAME ARGUMENT WITH FOLKS WHO KEEP PEDDLING SOME VERSION OF TRICKLE-DOWN ECONOMICS. THEY KEEP TELLING US THAT IF WE CONVERT MORE OF OUR INVESTMENTS IN EDUCATION AND RESEARCH AND HEALTH CARE INTO TAX CUTS, ESPECIALLY FOR THE WEALTHY, OUR ECONOMY WILL GROW STRONGER. THEY KEEP TELLING US THAT IF WE JUST STRIP AWAY MORE REGULATIONS AND LET BUSINESSES POLLUTE MORE AND TREAT WORKERS AND CONSUMERS WITH IMPUNITY, THAT SOMEHOW WE WOULD ALL BE BETTER OFF. WE'RE TOLD THAT WHEN THE WEALTHY BECOME EVEN WEALTHIER AND CORPORATIONS ARE ALLOWD TO MAXIMIZE THEIR PROFITS BY WHATEVER MEANS NECESSARY, IT'S GOOD FOR AMERICA. AND THAT THEIR SUCCESS WILL AUTOMATICALLY TRANSLATE INTO MORE JOBS AND PROSPERITY FOR EVERYBODY ELSE. THAT'S THE THEORY. NOW, THE PROBLEM FOR ADVOCATES OF THIS THEORY IS THAT WE'VE TRIED THEIR APPROACH. ON A MASSIVE SCALE. THE RESULTS OF THEIR EXPERIMENT ARE THERE FOR ALL TO SEE. INSTEAD OF MODERATING THEIR VIEWS EVEN SLIGHTLY, THE REPUBLICANS RUNNING CONGRESS RIGHT NOW HAVE DOUBLED DOWN AND PROPOSED A BUDGET SO FAR TO THE RIGHT IT MAKES THE CONTRACT WITH AMERICA LOOK LIKE THE NEW DEAL. YET THIS ISN'T A BUDGET SUPPORTED BY SOME SMALL RUMP GROUP IN THE REPUBLICAN PARTY. THIS IS NOW THE PARTY'S GOVERNING PLATFORM. THIS IS WHAT THEY'RE RUNNING ON. ONE OF MY POTENTIAL OPPONENTS, GOVERNOR ROMNEY, HAS SAID THAT HE HOPED A SIMILAR VERSION OF THIS PLAN FROM LAST YEAR WOULD BE INTRODUCED AS A BILL ON DAY ONE OF HIS PRESIDENCY. THIS CONGRESSIONAL REPUBLICAN BUDGET IS SOMETHING DIFFERENT ALTOGETHER. IT IS A TROJAN HORSE. DISGUISED AS DEFICIT REDUCTION PLANS. IT IS REALLY AN ATTEMPT TO IMPOSE A RADICAL VISION ON OUR COUNTRY. IT IS THINLY VEILED SOCIAL DARWINISM. IT IS ANTITHETICAL TO OUR ENTIRE HISTORY AS A LAND OF OPPORTUNITY AND UPWARD MOBILITY FOR EVERYBODY WHO IS WILLING TO WORK FOR IT. A PLACE WHERE PROSPERITY DOESN'T TRICKLE DOWN FROM THE TOP BUT GROWS OUTWARD FROM THE HEART OF THE MIDDLE CLASS. AND BY GUTTING THE VERY THINGS WE NEED TO GROW AN ECONOMY THAT'S BUILT TO LAST. EDUCATION AND TRAINING, RESEARCH AND DEVELOPMENT. OUR INFRASTRUCTURE. IT IS A PRESCRIPTION FOR DECLINE.

>> Woodruff: THE CHIEF AUTHOR OF THE

>> Woodruff: THE CHIEF AUTHOR OF THE HOUSE REPUBLICAN BUDGET REJECTED THE PRESIDENT'S CRITICISM IN ADVANCE. CONGRESSMAN PAUL RYAN APPEARED IN HIS HOME STATE OF WISCONSIN WITH G.O.P. PRESIDENTIAL FRONT- RUNNER MITT ROMNEY. RYAN ACCUSED THE PRESIDENT OF DISTORTING HIS PLAN.

>> WE HAVE A PRESIDENT WHO IS REALLY GOOD AT GIVING BIG SPEECHES. THE PROBLEM WITH OUR PRESIDENT IS HE'S NOT GOOD AT LEADERSHIP. HE'S NOT GOOD AT SOLVING PROBLEMS. HE'LL TRY TO CHARACTERIZE THOSE PEOPLE WHO DO NOT AGREE WITH WHERE HE'S TAKING AMERICA AS IF WE'RE SOME KIND OF VILLAIN IN A CARTOON LIKE THE CARTOONS WE WATCH ON SATURDAY MORNING GROWING UP. WHAT WE'LL TRY TO DO IS DIVIDE AMERICA IN ORDER TO DISTRACT AMERICA FROM THE FACTS THAT HIS PLAN IS BRINGING THIS COUNTRY ON THE WRONG PATH. WE DON'T WANT A PRESIDENT TO DIVIDE US. WE DON'T WANT A PRESIDENT WHO IS THERE TO DISTRACT US. WE WANT A PRESIDENT THAT IS GOING TO GET THE AMERICAN DREAM BACK ON TRACK.

>> Woodruff: FOR MORE ON THIS NATIONAL DEBATE OVER SPENDING AND TAXES, WE ARE JOINED BY JARED BERNSTEIN OF THE CENTER ON BUDGET AND POLICY PRIORITIES, WHO WAS THE CHIEF ECONOMIST AND ECONOMIC ADVISER TO VICE PRESIDENT BIDEN. AND DANIEL MITCHELL, SENIOR FELLOW FOR THE CATO INSTITUTE. HE PREVIOUSLY SERVED AS A REPUBLICAN ECONOMIST FOR THE SENATE FINANCE COMMITTEE. GENTLEMEN, WE THANK YOU BOTH FOR BEING HERE. DAN MITCHELL, I'M GOING TO START WITH YOU. STRONG WORDS FROM THE PRESIDENT. HE'S USING THE TERM SOCIAL DARWINISM. I'M GOING TO GIVE ONE OF MANY QUOTES. "THIS IS A BUDGET ANTITHETICAL," HE SAID, "TO OUR ENTIRE HISTORY A LAND OF OPPORTUNITY AND UPWARD MOBILITY FOR EVERYONE WHO IS WILLING TO WORK FOR IT."

>> SETTING ASIDE SOME OF THE INACCURACIES I ALMOST WISH REPUBLICANS WERE DOING WHAT OBAMA WAS SAYING. I WISH THEY HAD THIS SO-CALLED RADICAL VISION OF BRINGING US BACK TO WHAT THE FOUNDING FATHERS ENVISIONED OF A LIMITED CENTRAL GOVERNMENT. BUT HERE'S THE TWO THINGS YOU NEED TO UNDERSTAND. PAUL RYAN'S BUDGET ALLOWS GOVERNMENT SPENDING TO INCREASE BY AN AVERAGE OF 3.1% A YEAR OVER THE NEXT TEN YEARS. ALL THESE SUPPOSED BUDGET CUTS ARE ONLY BUDGET CUTS USING DISHONEST WASHINGTON MATH. SECOND, WHAT PAUL RYAN IS PROPOSING TO DO IS BRING THE FEDERAL GOVERNMENT, AFTER TEN YEARS, DOWN TO 20.25% OF G.D.P. WHICH IS MORE THAN TWO PERCENTAGE POINTS OF G.D.P. BIGGER THAN WHEN BILL CLINTON LEFT OFFICE. IF PAUL RYAN IS A SOCIAL DARWINIST, WHAT DOES THAT MAKE BILL CLINTON? HAND BALL LECTER.

>> Woodruff: THAT DOESN'T SOUND AT ALL LIKE WHAT THE PRESIDENT WAS SAYING TODAY.

>> I HAVE A VERY DIFFERENT TAKE ON THE BUDGET. AND I THINK IT IS... I THINK WHAT THE PRESIDENT WAS DOING TODAY IS VERY IMPORTANT, WHICH WAS HE'S USING THIS BUDGET TO REALLY SHOW THE CONTRASTING VISIONS BETWEEN REPUBLICANS AND BETWEEN, SAY, WHERE HE'S COMING FROM. I GUESS IF I WERE GOING TO BRING IT DOWN TO THE KINDS NUMBERS THAT DAN WAS THROWING AROUND, I WOULD SAY TWO. FIRST OF ALL, OF ALL THE SPENDING CUTS AND-- AND THIS BUDGET REALLY GUTS GOVERNMENT SPENDING-- OF ALL THE SPENDING CUTS 62% OF THEM OVER $3 TRILLION COMES FROM PROGRAMS THAT HELP LOW-INCOME PEOPLE. MEDICAID, FOOD STAMPS, PEL GRANTS FOR COLLEGE ASSISTANCE, HEAD START, THINGS THAT ARE CRITICAL TO THE OPPORTUNITIES YOU HEARD THE PRESIDENT TALKING ABOUT. THEN ON THE OTHER SIDE OF IT, HE TAKES SOME OF THOSE SPENDING CUTS AND HE DELIVERS ABOUT 40% OF HIS TAX CUTS TO MILLIONAIRES AND BILLIONAIRES. THIS IS AS IF YOU LOOKED AT THE AMERICAN ECONOMY AND YOU CONCLUDED THAT THE PROBLEM IS THAT THE POOR HAVE TOO MUCH AND THE RICH HAVE TOO LITTLE.

>> Woodruff: THAT IS A BIG ELEMENT OF WHAT THE PRESIDENT IS SAYING TODAY. IT JUST WORSENS THE INEQUALITY THAT IS ALREADY THERE.

>> THERE'S NO QUESTION AND I THINK JARED AND I WOULD AGREE THAT THE PRESIDENT HAS DECIDED THAT THIS CLASS WARFARE APPROACH IS HIS TICKET TO RE-ELECTION. WE WILL DISAGREE ON WHETHER THERE ARE BUDGET CUTS. IF GOVERNMENT SPENDING IS GROWING 3.1% A YEAR AND ALL THESE PROGRAMS ARE SEEING BUDGET INCREASES BUT JUST NOT AS BIG INCREASES AS PREVIOUSLY PLANNED WE HAVE TO HAVE HONEST NUMBERS AND HONEST DISCUSSION. IF YOU RECATEGORIZE INCREASES AS CUTS, THAT'S JUST FACTUALLY INACCURATE.

>> Woodruff: JARED BERNSTEIN BOTH SPEAKER BOEHNER AND PAUL RYAN TODAY SAID THERE WAS DISHONESTY IN WHAT THE PRESIDENT SAID.

>> PAUL RYAN HIMSELF WILL TELL YOU, "I AM CUTTING TRILLIONS OF DOLLARS FROM THE FEDERAL BUDGET." I'M NOT SURE EXACTLY WHAT DAN'S POINT IS HERE. IF RYAN SAYS HE'S CUTTING IT, HE SAYS I'M CUTTING FAR BEYOND WHAT THE PRESIDENT IS CUTTING. NOW IT IS TRUE THAT AS THE ECONOMY GETS BIGGER AND THE POPULATION GETS BIGGER, THINGS LIKE MEDICARE, SOCIAL SECURITY, THE SAFETY NET, THEY'RE GOING TO HAVE TO GET LARGER TO ACCOMMODATE THE NEED OF THE PEOPLE. BUT NOBODY DENIES THAT THESE ARE VERY, VERY DEEP CUTS.

>> Woodruff: BUT WHAT ABOUT SOME OF THESE CUTS? I MEAN YOU'RE SAYING, DAN MITCHELL, THAT IT DOESN'T ADD UP TO AS MUCH OR THAT THE CUTS AREN'T AS SEVERE AS WHAT THE PRESIDENT IS SUGGESTING. BUT HE'S TALKING ABOUT, HE SAYS THERE ARE CUTS IN EDUCATION AND TRAINING, IN RESEARCH AND DEVELOPMENT, IN INFRASTRUCTURE. HE CHARACTERIZED IT AS A PRESCRIPTION FOR DECLINE. FOR THIS COUNTRY.

>> AGAIN IF WE'RE GOING UNDER THE RYAN BUDGET, THE FEDERAL GOVERNMENT WOULD STILL BE SIGNIFICANTLY BIGGER AS A SHARE OF THE ECONOMY THAN IT WAS WHEN BILL CLINTON LEFT OFFICE. HOW EXACTLY IS THAT DRACONIAN? I SAY THAT AS SOMEONE FROM THE INDICATE OWE INSTITUTE. I DON'T WANT THE FEDERAL GOVERNMENT INVOLVED IN EDUCATION AT ALL. I ACTUALLY WOULD MAKE GENUINE CUTS NOT PHONY WASHINGTON CUTS. I WOULD ELIMINATE THE FEDERAL GOVERNMENT'S INVOLVEMENT IN THINGS LIKE TRANSPORTATION AND SO ON AND SO FORTH. I THINK WELFARE REFORM IS A GOOD MODEL. TRANSFER IT TO THE STATES. RYAN IS TALKING ABOUT DOING THAT WITH PROGRAMS LIKE MEDICAID BECAUSE WE'LL GET MUCH BETTER RESULTS BOTH FOR POOR PEOPLE AND FOR TAX PAYERS IF WE GET THE INCOMPETENT FEDERAL GOVERNMENT OUT OF THAT BUSINESS.

>> HERE'S A WAY OF PERHAPS SQUARING THIS KIND OF CONFUSING CIRCLE. THE PRESIDENT SAID-- AND I DON'T THINK DAN WOULD DISAGREE WITH THIS-- THAT BECAUSE OF THE CUTS, RELATIVE TO WHAT WE EXPECT THE GOVERNMENT TO DO ANYWAY, 200,000 FEWER KIDS WILL GET HEAD START IN 2014. ABOUT 20 MILLION PEOPLE WILL LOSE MEDICAID BENEFITS. 400,000 KIDS WILL LOSE PEL GRANTS. THOSE ARE REAL NUMBERS OF PEOPLE GETTING A PARTICULAR BENEFIT THAT IS SO IMPORTANT IN AN ERA OF INEQUALITY WHERE THE THING WE NEED TO DO LEAST IN THIS COUNTRY IS DISINVEST IN OUR CHILDREN, IN OUR EDUCATION, OUR INFRASTRUCTURE. IF THAT'S NOT CLASS WARFARE TAKING FROM THE POOR AND GIVING TO THE RICH, I DON'T KNOW WHAT CLASS WARFARE IS.

>> WE'RE TALKING ABOUT FEDERALISM. SHIFTING PROGRAMS FROM AN INCOMPETENT FEDERAL GOVERNMENT BACK TO STATE AND LOCAL GOVERNMENT. WE'VE SEEN WITH WELFARE REFORM THAT THAT MODEL WORKS. IT WAS GOOD FOR BOTH TAX PAYERS AND GOOD FOR POOR PEOPLE. WE SEE THAT MEDICAID IS A DISASTER. THE FEDERAL GOVERNMENT IS RUNNING IT POORLY. WE CAN PULL OUT NUMBERS. WE CAN SAY, OH, WELL IF THE STATES DO IT X BILLION FEWER PEOPLE WILL GET ACCESS TO THE PROGRAMS. BUT WE SAW THE REAL-WORLD RESULT OF WELFARE REFORM IT WORKS VERY WELL.

>> I ACTUALLY DISAGREE WITH THAT. BECAUSE THE ONE PROGRAM THAT WORKED QUITE REALLY QUITE TERRIBLY AS A SAFETY NET PROGRAM IN THE RECESSION WAS WELFARE. NOW IT ACTUALLY WORKED WELL AS THE ECONOMY WAS GENERATING A LOT OF JOBS. ONCE YOU START BLOCK GRANTING THESE PROGRAMS TO THE STATE, WHICH IS WHAT REPRESENTATIVE RYAN NOW ENDORSED BY GOVERNOR ROMNEY WANTS TO DO TO MEDICAID, THOSE PROGRAMS BEGIN TO LOSE GROUND.

>> Woodruff: QUICKLY, JARED BERNSTEIN, THE PRESIDENT CLEARLY TRYING TO TIE PAUL RYAN WITH MITT ROMNEY. WHY NOT RUN AT MITT ROMNEY AND WHAT MITT ROMNEY HAS SAID RATHER THAN....

>> I THINK IT'S A FAIR QUESTION. I THINK IT'S BECAUSE MITT ROMNEY ENDORSED THIS VISION. HE CALLED THIS, THIS BUDGET, HE SAID IT WAS A MARVELOUS BUDGET. HE SAID THIS IS A BUDGET I WOULD WANT TO ADAPT. SOMETHING TO THAT EFFECT. I THINK THAT THAT REALLY ALIGNS HIM WITH THIS EXTREMELY STARK AND AUSTERE VISION OF THE ROLE OF GOVERNMENT IN THE LIVES OF PEOPLE WHO ACTUALLY NEED HELP.

>> Woodruff: SPEAKING OF THAT, DAN MITCHELL, WE HEARD THE PRESIDENT IN EFFECT SEPARATING PAUL RYAN FROM... I MEAN, HE TALKED ABOUT THE RECORD OF PRESIDENT RICHARD NIXON. PRESIDENT GEORGE W. BUSH. SUGGESTING THAT WHAT PAUL RYAN IS SUGGESTING IS MUCH FARTHER RIGHT THAN EVEN THESE OTHER REPUBLICAN PRESIDENTS, WHAT THEY'VE DONE.

>> THAT'S BECAUSE BOTH NIXON AND BUSH WERE BOTH BIG GOVERNMENT INTERVENTIONISTS. MY BIGGEST PROBLEM THE OBAMA IS HE'S CONTINUING THE FAILED POLICIES OF BUSH. BUSH DOUBLED THE SIZE OF THE FEDERAL GOVERNMENT IN JUST EIGHT YEARS. HE DID BAILOUTS. HE DID INTERVENTION. HE DID REGULATION. OBAMA PROMISED HOPE AND CHANGE BUT HE PICKED UP THE BATON AND IS RUNNING IN THE SAME DIRECTION. GOD KNOWS NIXON WAS ONE OF THE WORST PRESIDENTS EVE EVER HAD JUST LOOKING AT HIS RECORD SETTING ASIDE WATERGATE. INTERVENTION AND REGULATION. YES, I AM GLAD THAT REPUBLICANS ARE TRYING TO GET THEIR RESPECTABILITY AFTER GOING WAY OFF THE RESERVATION DURING THE BUSH YEARS.

>> MY PROBLEM WITH THAT IS THAT THAT'S A VERY IDEAL LOGICAL TAKE ON PRESIDENTS THROUGHOUT HISTORY. IN THE REAL WORLD, JUDY, PEOPLE NEED MEDICARE, RETIREMENT SECURITY. THEY NEED A SAFETY NET. THIS RYAN BUDGET ENDORSED BY ROMNEY LOSES THAT.

>> BUT IN THIS REAL WORLD WE'RE BRINGING GOVERNMENT DOWN TO WHERE IT'S STILL TWO PERCENTAGE POINTS OF G.D.P. BIGGER THAN WHEN BILL CLINTON LEFT OFFICE. ONE OF YOUR GUYS. I'M BIPARTISAN.

>> Woodruff: TWO DIFFERENT VISIONS. GENTLEMEN, WE THANK YOU BOTH. JARED BERNSTEIN, DAN MITCHELL. AND A FOOTNOTE MITT ROMNEY WILL ADDRESS THE SAME GROUP OF EDITORS AND REPORTERS HERE IN WASHINGTON TOMORROW.

>> Ifill: STILL TO COME ON THE NEWSHOUR, THE JUMP IN CAR SALES; THE MUSLIM BROTHERHOOD FIELDS A PRESIDENTIAL CANDIDATE IN EGYPT; HELP FOR SMALL-SCALE FARMERS IN EAST AFRICA; AND KENTUCKY'S WINNING STRATEGY. BUT FIRST, WITH THE OTHER NEWS OF THE DAY, HERE'S HARI SREENIVASAN.

>> Sreenivasan: THE BATTLE OVER BUDGETS CAME AS REPUBLICANS HELD THEIR LATEST ROUND OF PRESIDENTIAL PRIMARIES. MITT ROMNEY HOPED VICTORIES IN WISCONSIN, MARYLAND, AND THE DISTRICT OF COLUMBIA WOULD FINALLY FORCE RICK SANTORUM TO STEP ASIDE. SANTORUM HAS INSISTED HE IS STAYING IN THE RACE. THE NEXT BIG DATE ON THE REPUBLICAN CAMPAIGN CALENDAR COMES APRIL 24, WHEN SIX STATES VOTE. TORNADOES HIT HARD TODAY IN NORTH TEXAS. THE NATIONAL WEATHER SERVICE CONFIRMED AT LEAST TWO SEPARATE "LARGE AND EXTREMELY DANGEROUS" TWISTERS NEAR DALLAS-FORT WORTH. BY MIDAFTERNOON, SKIES OVER DALLAS WERE AS DARK AS NIGHT. AS THE STORMS MOVED THROUGH, THEY RIPPED THE ROOFS OFF HOMES, SMASHED OTHER BUILDINGS TO SPLINTERS AND TOSSED 18-WHEELER TRUCKS LIKE TOYS. THERE WERE NO INITIAL REPORTS OF INJURIES. AUTHORITIES IN OAKLAND, CALIFORNIA, WORKED TODAY TO FIGURE OUT WHAT TRIGGERED MONDAY'S SHOOTING AT A SMALL CHRISTN COLLEGE. SEVEN PEOPLE WERE KILLED, AND POLICE ARRESTED ONE GOH OF SOUTH KOREA. THE FORMER NURSING STUDENT HAD BEEN EXPELLED FROM THE SCHOOL FOR BEHAVIORAL PROBLEMS. POLICE CHIEF HOWARD JORDAN TOLD ABC THAT GOH HAD BEEN LOOKING FOR AN ADMINISTRATOR, BUT SHE WASN'T THERE.

>> WE'VE LEARNED THAT THE SUSPECT WAS UPSET WITH THE ADMINISTRATION AT THE SCHOOL. HE WAS ALSO UPSET THAT STUDENTS WERE... IN THE PAST WHEN HE ATTENDED THE SCHOOL, MISTREATED HIM, DISRESPECTED HIM AND THINGS OF THAT NATURE. WE'VE LEARNED THAT THIS WAS A VERY CHAOTIC, CALCULATED AND DETERMINED GENTLEMAN THAT CAME THERE WITH A SPECIFIC INTENT TO KILL PEOPLE.

>> Sreenivasan: THE OAKLAND RAMPAGE WAS THE DEADLIEST INCIDENT AT A U.S. COLLEGE SINCE A GUNMAN KILLED 32 PEOPLE AT VIRGINIA TECH FIVE YEARS AGO THIS MONTH. FORMER VICE PRESIDENT DICK CHENEY HAS BEEN RELEASED FROM A NORTHERN VIRGINIA HOSPITAL, TEN DAYS AFTER GETTING A NEW HEART. THE ORGAN CAME FROM AN UNKNOWN DONOR AFTER CHENEY HAD SPENT NEARLY TWO YEARS ON A WAITING LIST. HE IS 71 YEARS OLD, AND HAS HAD FIVE HEART ATTACKS, INCLUDING ONE IN 2010. THE PRESIDENT OF MYANMAR TODAY ENDORSED THE RESULTS OF SUNDAY'S PARLIAMENTARY ELECTIONS. LONGTIME OPPOSITION LEADER AUNG SAN SUU KYI AND HER PRO- DEMOCRACY PARTY CLAIMED ALL BUT TWO OF THE 45 SEATS ON THE BALLOT. PRESIDENT THEIN SEIN, A FORMER GENERAL, SAID TODAY THE VOTE "WAS CONDUCTED IN A VERY SUCCESSFUL MANNER." HE HAS LED CAUTIOUS REFORMS AFTER HALF A CENTURY OF MILITARY RULE. WALL STREET STEPPED BACK TODAY AFTER NEWS THAT FEDERAL RESERVE LEADERS ARE WORRIED ABOUT A HIRING SLOWDOWN. THE CONCERNS WERE VOICED IN THE MINUTES OF THE FED'S POLICY- MAKING MEETING LAST MONTH. THE DOW JONES INDUSTRIAL AVERAGE LOST NEARLY 65 POINTS TO CLOSE AT 13,199. THE NASDAQ FELL SIX POINTS TO CLOSE AT 3113. THOSE ARE SOME OF THE DAY'S MAJOR STORIES. NOW, BACK TO GWEN.

>> Ifill: AND WE TURN TO WHAT'S BEHIND THE CONTINUING SURGE IN SALES AS THE AMERICAN AUTO INDUSTRY TURNS IN ITS BEST QUARTER IN YEARS. THE AUTO INDUSTRY CONTINUED ITS REBOUND TODAY ON NEWS THAT SALES JUMPED 6% IN MARCH. WITH ALMOST 1.4 MILLION NEW CARS AND TRUCKS SOLD. THAT'S THE HIGHEST MONTHLY NUMBER SINCE 2008.

>> THIS IS MY WORLD.

>> Ifill: CHRYSLER SALES WERE UP 34%, PARTLY DUE TO ITS HEAVILY PROMOTED LINE OF SMALL FEE ATS AND OF ITS SUDANS.

>> I'VE SEEN A LOT OF TOUGH ERAS, A LOT OF DOWNTURNS IN MY LIFE.

>> Ifill: THE COMPANY'S DRAMATIC TWO-MINUTE SUPER BOWL AD FEATURING ACTOR CLINT EASTWOOD TWO MONTHS AGO DECLARED THE MOTOR CITY BACK ON ITS FEET.

>> THIS COUNTRY CAN'T BE KNOCK OUT IN ONE PUNCH. WE GET RIGHT BACK UP AGAIN. WHEN WE DO, THE WORLD WILL HEAR THE ROAR OF OUR ENGINES. YEAH, IT'S HALF TIME, AMERICA. AND OUR SECOND HALF IS ABOUT TO BEGIN.

>> Ifill: AS GAS PRICES CONTINUE TO RISE, SO HAVE SALES OF SMALL AND FUEL EFFICIENT CARS. FOR GENERAL MOTORS, THAT MEANT A 12% JUMP. FOR FORD WHICH HAS ATTRACTED BUYERS TO ITS FOCUS, SMALL CAR, AND F-SERIES PICK-UPS, THE NET GAIN WAS 5%. ITS BEST IN FIVE YEARS. THE ROBUST SALES WERE NOT LIMITED TO DOMESTIC MANUFACTURERS. TOYOTA, NISSAN AND VOLKSWAGEN ALL REPORTED DOUBLE DIGIT SALES JUMPS AND HUNDRED DAY ALSO SAID IT EXPECTED TO SET NEW SALES RECORDS. BUT AS THE AUTO INDUSTRY SHOWED SIGNS OF REVIVAL THE CITY OF DETROIT STILL COPES WITH A $200 MILLION DEFICIT. CITY LEADERS ARE DEBATING WHETHER TO ACCEPT A BANKRUPTCY DEAL FROM THE STATE OF MICHIGAN. FOR MORE NOW ON THE IMPROVED STATE OF THE AUTO INDUSTRY, WE TURN TO DAVID SHEPARDSON OF THE "DETROIT NEWS." HE'S IN NEW YORK TONIGHT COVERING THE AUTO SHOW. DAVID, YOU'VE BEEN COVERING THIS STORY FOR A LONG TIME. THESE NUMBERS SEEM ALMOST TOO GOOD TO BE TRUE. WHAT IS DRIVING THEM?

>> THERE ARE A LOT OF FACTORS. NUMBER ONE, THE ECONOMY IS DOING BETTER. EMPLOYMENT IS UP. PEOPLE FEEL MORE CONFIDENT ABOUT THEIR OWN FINANCIAL SITUATION AND THEY'RE BUYING A NEW CAR. ONE OF THE MAIN REASONS IS THEIR OLD CAR IS PROBABLY 10, 11 YEARS OLD. IN FACT, THE FLEET IS AT ITS OLDEST LEVEL IN 30 YEARS. SO PEOPLE'S OLD CARS JUST CAN'T GO MUCH LONGER. THEY'RE SEEING THOSE HIGH GAS PRICES AND THINKING, HEY, MAYBE IT'S TIME FOR ME TO MOVE TO SOMETHING A LITTLE BETTER.

>> Ifill: SOMETIMES I WONDER WHEN WE LOOK AT NUMBERS LIKE THIS WHETHER WE'RE EXCITED ABOUT MEETING EXPECTATIONS OR EXCEEDING EXPECTATIONS OR AN ACTUAL GAIN.

>> I THINK THESE ARE REALLY GOOD NUMBERS I MEAN, AS YOU POINTED OUT HUNDAI AND THE DETROIT 3 REALLY MADE BIG GAINS FUEL-EFFICIENT VEHICLES. GENERAL MOTORS SOLD 100,000 VEHICLES THAT GOT OVER 30 MILES PER GALLON. SOMETHING LIKE CHRYSLER WHICH ONLY A FEW YEARS AGO DIDN'T HAVE ANY VEHICLES THAT GOT OVER 30 MILES PER GALLON NOW HAVE SEVEN VEHICLES. THESE ARE REAL GAINS. IT'S A VERY COMPETITIVE MARKETPLACE OUT THERE. BUT YOU CAN SEE THE EVIDENCE OF THIS IN PART BY THE AUTO COMPANIES ADDING MORE SHIFTS, MORE EMPLOYMENT AND THIS IS REALLY GETTING BACK TO SORT OF A PRE-RECESSION LEVEL, YOU KNOW, BEFORE WE HAD A HUGE DROP-OFF IN SALES.

>> Ifill: MORE CARS ARE BEING SOLD. ARE THEY ALSO MORE EXPENSIVE CARS WHICH DRIVES UP THE PROFIT?

>> ABSOLUTELY THEY ARE MORE EXPENSIVE FOR A COUPLE REASONS. NUMBER ONE, OVER THE LAST FEW YEARS, THE U.S. DIDN'T BUILD AS MANY CARS AS WE WOULD HAVE EXPECTED BECAUSE OF THIS SLOWDOWN IN THE ECONOMY. AS A RESULT, THERE ARE FURIOUSED CARS OUT THERE. THEN WE HAD CASH FOR CLUNKERS WHICH TOOK ABOUT 700,000 CARS OFF THE ROADS. THE PRICE OF USED CARS HAS GONE UP. THE SUPPLY HAS GONE DOWN WHICH MAKES NEW CARS MORE ATTRACTIVE BECAUSE THE LEVEL OF DIFFERENCE BETWEEN USED AND NEW CARS IS SMALLER. YOU KNOW, SO AS A RESULT PEOPLE ARE ALSO LOOKING AT THOSE HIGH GAS PRICES AND SAYING, HEY, THE SAME CAR IN THE SEGMENT I'M IN, A MID-SIZED S.U.V. OR A COMPACT CAR OR WHAT HAVE YOU, THAT VEHICLE MIGHT BE 20, 25% MORE EFFICIENT THAN THAT VEHICLE THAT I'VE BEEN HOLDING ON TO FOR 10 OR 11 YEARS FRANKLY AFTER ALL THAT TIME IT DOESN'T RUN AS WELL.

>> Ifill: IF THE GAS PRICES ARE GOING UP, WOULDN'T THAT DEPRESS CAR SALES INSTEAD OF DRIVING THEM UPWARD?

>> WE WOULD HAVE THOUGHT THAT IN... AND THAT'S WHAT HAPPENED IN 2008 WHEN PRICES SPIKED AT $4 A GALLON AND PEOPLE PANICKED AND DUMPED THEIR S.U.V.s AT WHATEVER COST. BUT NOW PEOPLE ARE MORE CONFIDENT. THEY'RE SAYING I'M USED TO THIS PRICE. I DON'T LIKE IT. THEY'RE SEEING THE FACT THAT YOU GO TO THE DEALERSHIP, YOU BUY A CAR THAT'S MORE FUEL EFFICIENT. YOU CAN SEE REAL SAVINGS. TAKE A FORD ESCAPE OVER THE LAST TEN YEARS IT'S GONE FROM ABOUT 20, 25% MORE FUEL EFFICIENT. WELL THAT TURNS INTO REAL MONEY ESPECIALLY WHEN GAS PRICES ARE AT $4. I MEAN THE ALTERNATIVE IS NOT GOING TO USE A CAR. YOU HAVE TO USE A CAR. I THINK MORE CUSTOMERS ARE SAYING, HEY, LET'S GET OUT OF AN OLD LESS EFFICIENT CAR AND LET'S BUY A NEW FUEL EFFICIENT CAR.

>> Ifill: THE OTHER THING YOU'VE BEEN COVERING CONSISTENTLY IS THE EFFORT TO RESCUE THE DOMESTIC CAR INDUSTRY. YET THESE NUMBERS SHOW THAT FOREIGN CAR MAKERS ARE DOING AS WELL TOO.

>> RIGHT. ONE INTERESTING THING THE OBAMA CAMPAIGN MANAGER TODAY TWEETED THE RESULTS AND FOCUSED ON THE DETROIT 3 AND TWEAKED GOVERNOR ROMNEY NOTING THAT HE WROTE THE OP-ED LET DETROIT FAIL. THIS WILL STAY IN THE MIDST OF THE POLITICAL CAMPAIGN. YOU'RE RIGHT. THIS IS NOT JUST A DETROIT REVIVAL. THE JAPANESE AUTO COMPANIES WHICH WERE HURT BY THE TSUNAMI AND THE EARTHQUAKES THIS JAPAN AND THEN FLOODING IN THAILAND HAVE REALLY GOTTEN BACK ON THEIR FEET. THEY'RE BUILDING NEW MORE FUEL EFFICIENT VEHICLES. ALL THE COMPANIES, YOU KNOW, THE GERMANS, THE KOREANS ARE BRINGING NEW MODELS TO THE U.S. BECAUSE THIS HAS BECOME SUCH A SUPER COMPETITIVE MARKET. WHEN YOU LOOK AT WHAT'S HAPPENING IN EUROPE WHERE, YOU KNOW, AUTO SALES ARE NOT DOING WELL AND CHINA HAS PUT SOME BRAKES ON AUTO SALES THE U.S. IS IS NOW, YOU KNOW, THE MOST PROFITABLE AUTO MARKET WHICH IS WHY YOU SEE SO MUCH EMPHASIS BY ALL THE COMPANIES ON SELLING CARS HERE.

>> Ifill: HOW MUCH OF THIS GOOD NEWS, IF ANY, IS TRICKLING DOWN TO A CITY LIKE DETROIT?

>> NOT AS MUCH AS YOU'D THINK. REMEMBER, IN THE EARLY PART OF THE 20th CENTURY THERE WERE 125 AUTO COMPANIES IN DETROIT. THERE WERE HUNDREDS OF FACTORIES. THE CITY BECAME THE FOURTH LARGEST IN AMERICA, HAD TWO MILLION PEOPLE. THE CITY HAS LOST TWO THIRDS OF ITS POPULATION HAS JUST OVER 700,000 PEOPLE. THERE ARE ONLY TWO MAJOR CAR FACTORIES IN DETROIT TODAY, G.M. AND A CHRYSLER PLANT. THERE ARE JUST 10 OR 20,000 WORKERS IN DETROIT THAT ARE IN MANUFACTURING. SO, YES, YOU KNOW, G.M. IS STILL HEADQUARTERED IN DETROIT. THEY'RE A LARGE TAX PAYER. BUT NOT AS MANY PEOPLE WORK IN THE MOTOR CITY ACTUALLY BUILD CARS. IT HELPS THE REGION CERTAINLY AS A WHOLE BUT THE CITY ITSELF, GIVEN ALL OF ITS FINANCIAL PROBLEMS, WILL NOT BE CERTAINTY SAVED BY THE UPTICK IN THE AUTO INDUSTRY.

>> Ifill: GOOD WEATHER DOESN'T HURT, DOES IT?

>> IT'S ONE OF THE INTERESTING THINGS. PEOPLE DON'T WANT TO BUY CARS WHEN IT'S SNOWING AND ICY. YOU DON'T WANT TO BUY THAT BRAND NEW CAR AND HAVE A ACCIDENT. OR GET SALT ON THE ROADS. YOU TRY TO GET A FEW EXTRA MILES OUT OF YOUR OLD CAR UNTIL THE WINTER, WHEN WE GET THROUGH THE WINTER. IT'S BEEN AN INCREDIBLY MILD WINTER THIS YEAR. AS A RESULT PEOPLE ARE GOING TO THE DEALERSHIP EARLY AND BUYING THAT CAR AND SAYING, HEY, MAYBE MAYBE THERE ISN'T GOING TO BE A FULL FLEDGED WINTER. WE DON'T KNOW HOW MUCH OF THE NICE WEATHER HAS PULLED FORWARD SALES FROM LATER IN THE YEAR. IT HAS CERTAINLY HAD SOME IMPACT. SOMETHING TO BE CAUTIOUS ABOUT. WILL THESE, YOU KNOW, REALLY STRONG SALES IN THE FIRST QUARTER, YOU KNOW, CONTINUE THROUGH THE REST OF THE YEAR? WE COULD SEE A LITTLE BIT OF A REDUCTION AS WE GO FORWARD.

>> Ifill: HAPPY SPRING TO YOU DAVID SHEPARDSON OF THE DETROIT NEWS. THANK YOU.

>> THANKS, GWEN.

>> Woodruff: NOW, THE MUSLIM BROTHERHOOD SCRAMBLES THE RACE FOR THE PRESIDENCY OF EGYPT. MARGARET WARNER HAS OUR STORY.

>> Warner: WHEN PROTESTS SWELLED IN CAIRO'S TARY SQUARE A YEAR AGO THE MUSLIM BROTHERHOOD KEPT A LOW PROFILE. BEFORE LONG EGYPT'S OLDEST ISLAMIC MOVEMENT, BANNED FROM POLITICS UNDER PRESIDENT MUBARAK, JOINED THE YOUNG REVOLUTIONARIES. SINCE THEN WITH A MILITARY COUNCIL RUNNING EGYPT, THE BROTHERHOOD HAS EMERGED AS A POWERFUL FORCE. IT WON NEARLY HALF THE SEATS IN PARLIAMENT'S LOWER HOUSE AND ANOTHER MORE FUNDAMENTALIST ISLAMIST GROUP WON MORE THAN 20%. AT THE OUTSET, THE BROTHERHOOD PLEDGED NOT TO RUN A CANDIDATE FOR PRESIDENT SAYING IT WASN'T SEEKING A MONOPOLY ON POWER. BUT LAST SATURDAY IT DID JUST THAT. NOMINATING DEPUTY CHAIRMAN TO RUN. THE U.S. REACTED CAUTIOUSLY WITH SECRETARY OF STATE HILLARY CLINTON SAYING SUNDAY WE HOPE THAT THE EGYPTIAN PEOPLE GET WHAT THEY PROTESTED FOR IN TO REAR SQUARE. THAT'S COMPLETE OPEN PLURALISTIC DEMOCRACY THAT RESPECTS THE RIGHTS OF EVERY EGYPTIAN. THE LEADING MODERATE IN THE PRESIDENTIAL RACE VOICED HOPE ABOUT EGYPT'S POLITICAL PROSPECTS TWO WEEKS AGO.

>> I BELIEVE ONCE THE PRESIDENT IS ELECTED AND THE CONSTITUTION IS ON THE WAY TO BE DRAFTED AND A NEW GOVERNMENT. THIS WILL CREATE A BALANCE APPROACH TOWARDS THE FUTURE. I AM OPTIMISTIC. IN FACT IMNOT PESSIMISTIC AT ALL.

>> Warner: A POLL OF EGYPTIAN VOTERS RELEASED YESTERDAY SHOWED THAT THE FORMER HEAD OF THE ARAB LEAGUE REMAINED THE FRONTRUNNER AN ULTRACONSERVATIVEIST ISLAMIST WAS STILL RUNNING SECOND. IN THE MEANTIME LATE LAST WEEK LIBERALS AND COP TICK CHRISTIANS PROTESTED THE MAKE-UP OF THE PANEL WRITING THE NEW CONSTITUTION. THEY CHARGED ISLAMISTS ARE TRYING TO HIJACK THE PROCESS.

>> WE WILL ONLY ACCEPT EGYPT'S CIVILIAN RULE. EGYPT IS NOT MUSLIM BROTHERHOOD.

>> Warner: BUT THE POSSIBILITY OF TOTAL ISLAMIST CONTROL IS NOW AT STAKE IN THE FIRST ROUND OF PRESIDENTIAL BALLOTING IN LATE MAY AND THE RUN-OFF, IF NEEDED, IN JUNE. FOR MORE, I AM JOINED BY TAREK MASOUD, AN ASSISTANT PROFESSOR AT HARVARD. HE GOES TO EGYPT FREQUENTLY FOR WELCOME BACK TO THE PROGRAM. RESEARCH. HOW BIG A MOMENT IS THIS? HOW BIG A DEVELOPMENT IS THIS IN THIS SORT OF PATH, EGYPT'S PATH TOWARD A DEMOCRACY?

>> THAT'S A GREAT QUESTION, MARGARET. I GUESS IT DEPENDS ON HOW YOU LOOK AT IT. YOU REMEMBER RIGHT AFTER MUBARAK WAS OVERTHROWN, THERE'S A TREMENDOUS FEAR ON THE PART OF LIBERALS AND SECULARISTS IN EGYPT AND PEOPLE OBSERVING EGYPT FROM THE OUTSIDE THAT ONCE MUBARAK LEFT, THE VOID WOULD BE FILLED BY ISLAMISTS AND SPECIFICALLY BY THE MUSLIM BROTHERHOOD. INITIALLY THE MUSLIM BROTHERHOOD DID THINGS TO CALM THOSE FEARS. THEY INITIALLY SAID THAT THEY WOULDN'T RUN FOR EVERY SEAT IN THE PARLIAMENTARY ELECTION. IN THE END THEY DID. AND NOW AFTER HAVING PROMISED NOT TO SEEK THE PRESIDENCY AS YOU NOTED IN YOUR PIECE, THEY'VE RENEGED ON THAT PROMISE AS WELL. SO THIS CREATES A GREAT DEAL OF FEAR ON THE PART OF PEOPLE, LIBERALS AND SECULARISTS, WHO THOUGHT THAT THE ISLAMISTS WOULD SEEK DOMINION. SO THIS IS POTENTIALLY VERY PROBLEMATIC FOR THEM. NOW I WOULD SAY ONE THING. REMEMBER THERE'S ONLY ONE OF FOUR ISLAMISTS CANDIDATES SO IT MAY VERY WELL BE THAT WHAT WILL HAPPEN IS THE ISLAMIST VOTE IS DIVIDED AMONG ALL FOUR OF THEM AND THESE FEARS ARE MISPLACED.

>> Warner: WHY THE TURN-AROUND? WHY THE TURN-AROUND BY THE BROTHERHOOD?

>> IT'S INTERESTING. THE BROTHERHOOD'S OFFICIAL REASON FOR THIS IS THAT EGYPT RIGHT NOW IS UNDERGOING A TREMENDOUS CRISIS, AND THE GOVERNMENT THAT IS CURRENTLY RUNNING EGYPT WHICH IS APPOINTED BY THE MILITARY HUNT A IS UNABLE TO MEET EGYPT'S CHALLENGES SO THE BROTHERHOOD ARE SAYING IN ORDER FOR THEM TO SAVE THE COUNTRY THEY NEED TO HAVE A SHARE OF EXECUTIVE POWER AND TO BE ABLE TO PUSH THROUGH THE REFORMS THAT ARE NEEDED IN EGYPT.

>> Warner: TELL US MORE ABOUT ONE OF THE CANDIDATES. I KNOW HE'S A MILLIONAIRE BUSINESSMAN, USED TO BE A ENGINEER. HE SPENT 12 YEARS IN JAIL IN PRISON UNDER THE MUBARAK REGIME. WHO IS HE REALLY AND WHAT ARE HIS VIEWS?

>> THAT'S HARD TO SAY. HE IS OFTEN DESCRIBED AS A CONSERVATIVE. BUT, IN FACT, PRETTY MUCH EVERYBODY WHO IS ASSOCIATED WITH THE MUSLIM BROTHERHOOD IS RELIGIOUSLY CONSERVATIVE IN SOME WAY. I GUESS THE BEST WAY TO THINK ABOUT HIM IS THAT HE IS SOMEBODY WHO IS DEEPLY COMMITTED TO THE MUSLIM BROTHERHOOD AS AN ORGANIZATION. HE'S ONE OF ITS MAIN FINANCEERS AND HE IS SOMEBODY WHO HAS A GREAT DEAL OF HEFT WITHIN THE BROTHERHOOD BUT MAYBE ISN'T THAT WELL KNOWN OUTSIDE OF THE BROTHERHOOD. THERE ARE OTHER FIGURES WITHIN THE MOVEMENT WHO ARE MUCH MORE WELL KNOWN, WHO APPEAR ON TALK SHOWS ALL THE TIME AND WHOSE POLITICAL VIEWS ARE FAMILIAR TO MOST EGYPTIANS. THIS MAN REALLY ISN'T THAT WAY. BUT HE'S SOMEBODY WHO IS REALLY A KING MAKER WITHIN THE ORGANIZATION AND SO THEY'VE DECIDED TO NOMINATE HIM AS THE PRESIDENT.

>> Warner: IT ALL STILL SEEMS A LITTLE PUZZLING. DO YOU AS SCRIBE TO THE THEORY THAT THE BROTHERHOOD WAS ALSO VERY CONCERNED ABOUT HOW MUCH STRONGER THE BOTH THE SALAFI PARTY, THE ULTRAFUNDAMENTALIST PARTY AND THE FOLLOWERS OF THAT MOVEMENT ARE POLITICALLY? THEY FELT THEY HAD TO STEP IN?

>> WELL, IT'S POSSIBLE. LOOK, THE PARTY THAT IS IN PARLIAMENT RIGHT NOW DOESN'T HAVE A PRESIDENTIAL CANDIDATE. IT'S REASONABLE ACTUALLY TO ASSUME THAT SOMEBODY LIKE THE MAN WE WERE TALKING ABOUT WHO DOES HAVE A REPUTATION AS A CONSERVATIVE COULD ACTUALLY GET SOME OF THOSE VOTES. I DON'T SEE THE DECISION TO NOMINATE HIM AS SOMEHOW RESPONDING TO THE SALAFI THREAT.

>> Warner: NOW, WHAT EXPLAINS OR... THE MILITARY COUNCIL I BELIEVE HAS NOT SAID ANYTHING YET UNLESS THEY DID IN THE LAST COUPLE OF HOURS. DO YOU THINK THE MILITARY COUNCIL WOULD LET A BROTHERHOOD MAN BECOME PRESIDENT WHEN THE BROTHERHOOD AND THE SALAFIS TOGETHER ALREADY CONTROL SOMETHING LIKE THREE QUARTERS OF THE SEATS IN THE PARLIAMENT?

>> IT'S NOT CLEAR. I MEAN THE FIRST THING IS WHAT DOES THE MILITARY REALLY WANT? THE EGYPTIAN MILITARY IS NOT LIKE, SAY, THE TURKISH MILITARY IN DECADES PAST WHICH WAS VERY DEEPLY COMMITTED TO A KIND OF SECULAR VISION FOR SOCIETY. IN THE EGYPTIAN CASE, THE MILITARY ISN'T REALLY IDEOLOGICALLY COMMITTED TO ANYTHING. ALL THEY CARE ABOUT IS THAT THE SENIOR LEADERS OF THE SUPREME COUNCIL OF THE ARMED FORCES ARE NOT SOMEHOW PROSECUTED ONCE CIVILIANS ARE ELECTED TO POSITIONS OF AUTHORITY. AND THEY WANT TO MAKE SURE THAT THE MILITARY'S ECONOMIC HOLDINGS REMAIN INTACT. THE MILITARY JUST WANTS TO MAKE A DEAL WITH WHOEVER COMES TO POWER. YOU MIGHT ARGUE THAT THE MUSLIM BROTHERHOOD ARE IN A BETTER POSITION TO MAKE THAT KIND OF DEAL THAN OTHER ORGANIZATIONS, OTHER PARTIES WHICH AREN'T QUITE AS ORGANIZED, WHO THE MILITARY MIGHT NOT FEEL REALLY ARE ABLE TO FOLLOW THROUGH ON THEIR PROMISES. I DON'T SEE ANY REAL IDEOLOGICAL REASON WHY THE MILITARY WOULD LOOK POORLY UPON THEM.

>> Warner: FAIRLY BRIEFLY, AS WE SAW THE SECULAR LEADERS, THE LIBERALS WHO HELPED SPARK THE REVOLUTION, ARE NOW VERY CONCERNED THAT THE BROTHERHOOD AND THE ISLAMISTS ARE HIJACKING THE WHOLE PROCESS INCLUDING THE CONSTITUTION- WRITING COMMITTEE, DO THEY HAVE REASON TO BE WORRIED THAT EGYPT MAY BE ON A PATH HERE TO BECOMING A LESS OPEN, LESS TOLERANT, MORE STRICTLY ISLAMIST STATE?

>> I THINK THAT IF YOU LOOK AT WHAT EGYPTIANS SAY WHEN YOU ASK THEM WHAT KIND OF POLICY DO YOU WANT, THEY WILL ALL SAY THAT THEY WANT A DEMOCRATIC CIVIL STATE WHICH IS... WHICH MEANS THEY DON'T WANT TOO MUCH OF THE MIXING OF RELIGION AND POLITICS. AT THE SAME TIME, THEY DO EXPRESS A TREMENDOUS DESIRE FOR MORRIS LAMBIC LAW. SO THESE MIGHT SEEM TO BE CONTRADICTORY. THE WAY I LOOK AT IT IS THAT EGYPTIANS DON'T WANT THE RULE OF THE CLERICS BUT THEY DO WANT MORRIS LAMB IN THEIR PUBLIC LIFE. I THINK MOST PEOPLE WHO OBSERVE EGYPT ARE COMING TO TERMS WITH THAT.

>> Warner: WELL, IT'S A VERY DRAMATIC AND UNFOLDING STORY. TAREK MASOUD, THANKS.

>> Ifill: NEXT, BRINGING BUSINESS SERVICES TO SMALL-SCALE FARMERS IN EAST AFRICA. OUR STORY IS PART OF A SERIES CALLED "FOOD FOR NINE BILLION." IT'S A PARTNERSHIP WITH THE CENTER FOR INVESTIGATIVE REPORTING, AMERICAN PUBLIC MEDIA'S MARKETPLACE, AND HOMELANDS PRODUCTIONS. SPECIAL CORRESPONDENT FRED DE SAM LAZARO REPORTS.

>> Reporter: ANDREW WAS ALMOST DONE WITH BUSINESS SCHOOL IN 2005 WHEN HE TOOK A BRIEF VACATION TO KENYA. IT WAS THE MINNESOTA NATIVE'S FIRST EXPOSURE TO THE IRONY OF LIFE FOR MILLIONS OF PEOPLE IN RURAL AFRICA.

>> THE SHOCKING THING AND A PARADOX IS MOST OF THE WORLD'S HUNGRY PEOPLE ARE FARMERS AND THEIR PROFESSION IS TO GROW FOOD. THE REASON THEY'RE NOT SUCCEED ING IS THEY'RE STILL USING TOOLS AND TECHNIQUES THAT DATE TO THE BRONZE AGE.

>> Reporter: HE DECIDED TO APPLY HIS NEW MBA SKILLS TO SEE IF HE COULD HELP. HE BEGAN WITH A PILOT PROJECT TO ASSIST 40 FAMILIES.

>> I TOOK $7,000 OF MY OWN SAVINGS AND BOUGHT FEED AND FERTILIZER AND HIRED LOCAL STAFF. WE GAVE IT A SHOT. THE FAMILIES SIGNED UP. THEY WERE ALSO INTERESTED. THEY HAD THE BEST HARVEST OF THEIR ENTIRE LIVES IN THAT FIRST SEASON. RIGHT WHEN THAT HAPPENED I KNEW THERE WAS SOMETHING THERE.

>> Reporter: HIS PROJECT TURNED INTO "ONE ACRE FUND" NAMED AFTER THE SMALL SIZE OF MOST AFRICAN SUBSIST ENS FARMS. SIX YEARS LATER A STAFF OF MORE THAN 800 SERVES OVER 125,000 FARM FAMILIES IN KENYA, RWANDA AND BURUNDI.

>> YOU LOOK AT THOSE BALES OF SEED, FOR EXAMPLE, THAT STACK OF BALES IS ENOUGH TO CHANGE THE LIVES OF THOUSANDS OF FARM FAMILIES WITH, YOU KNOW, LIKE MORE THAN 10,000 CHILDREN LIVING IN THOSE FAMILIES. THE SHEER MAGNITUDE OF WHAT WE CAN ACCOMPLISH FROM A HUMANITARIAN PERSPECTIVE WITH VERY LITTLE RESOURCES IS JUST STAGGERING.

>> Reporter: BUT ONE ACRE FUND ISN'T A TYPICAL HUMANITARIAN SERVICE. IT OFFERS A BUSINESS MODEL. ONE ACRE GIVES THE SMALLEST OF FARMERS THE SAME SERVICES AVAILABLE TO THE BIGGEST OF BUSINESSES. CREDIT, SEED, INSURANCE AND ACCESS TO MARKETS. IT'S CALLED THE MARKET BUNDLE. ONE ACRE FUND ALSO OFFERS TRAINING, HOW TO SPACE PLANTS, WHEN TO APPLY FERTILIZER AND HOW MUCH. IT'S NOT ROCKET SCIENCE, BUT THE RESULTS ARE IMPRESSIVE. I'M STANDING IN A SPOT THAT ILLUSTRATES THE DIFFERENCE ONE ACRE FUND CAN MAKE. OVER MY LEFT SHOULDER IS A PRETTY TYPICAL SMALL HOLDER FARM WHERE YOU'LL FIND A CLUSTER OF PRETTY RANDOMLY PLANTED CORN STALKS. BUT WALK JUST A FEW FEET TO THAT FARMER'S NEIGHBOR AND YOU'LL FIND A ONE ACRE FUND MEMBER. AND THIS FARMER'S SEEDS ARE OF BETTER QUALITY. THEY'VE BEEN PLANTED IN CAREFUL ROWS. YOU CAN TELL BY THE QUALITY OF THE STALKS AND THE SHEER DENSITY OF THIS PLOT THAT THE YIELD HERE IS GOING TO BE MUCH HIGHER. BETTER HARVESTS BEGIN WITH BETTER SEEDS AND FERTILIZER THAT THE FARMERS GET AT A DISCOUNT.

>> THE INDIVIDUAL SMALL HOLDER FARMER IS ABOUT THE LEAST POWERFUL PERSON ON THE PLANET. BUT WHEN WE AGO GATE 100,000 OR MORE OF THEM TOGETHER WE GET A LOT OF PURCHASING POWER. WE CAN GET THEM A GOOD DEAL. WE CAN DELIVER. WE CAN ADD A OF VALUE.

>> Reporter: EVEN WITH THE GOOD DEAL, CASH IS HARD TO COME BY HERE ESPECIALLY AT THE START OF THE SEASON. SO INSTEAD OF MAKING THE FARMERS PAY UP FRONT ONE ACRE FUND GIVES THEM LOANS FOR THE SEED AND FERTILIZER THAT THEY NEED, LOANS THAT ARE INSURED.

>> POOR PEOPLE ARE THE WORST SUITED PEOPLE IN THE WORLD TO HAVE RISK IN THEIR LIVES. THEY'RE ALREADY LIVING ON THE MARGIN. HAVING A BAD HARVEST, FOR EXAMPLE, AND BAD WEATHER BASICALLY MEANS IT COULD BE AS SEVERE AS A CHILD OR EVEN TWO DYING. RAIN INSURANCE IS A STANDARD PART OF OUR PACKAGE. SO IF THE RAIN DOESN'T FALL THEY DON'T PAY. ANOTHER RISK IS DEATH. WE HAVE WHAT WE CALL FUNERAL INSURANCE.

>> Reporter: THE LOANS MUST BE REPAID AT HARVEST TIME. BUT MOST FARMERS BEGIN PAYING THEIR INSTALLMENTS WELL IN ADVANCE. THE DEFAULT RATE IS LESS THAN 1%.

>> CONGRATULATIONS. THIS LADY WAS SAYING THAT SHE WAS GETTING A MILK COW. SHE'S SELLING NOW EARNING ABOUT $THE... ABOUT $2 A DAY FROM THAT MILK COW.

>> Reporter: IN RWANDA AGRICULTURE MINISTER LIKES THE FACT THAT EVEN THOUGH ONE ACRE FUND IS A NONPROFIT, IT WORKS WITH FARMERS AS BUSINESS PARTNERS.

>> THERE'S ALWAYS DEPENDENCY. THERE'S A SENSE OF A GIVE-AND-TAKE. ONE ACRE FUND HAS LEVELED THE TABLE.

>> Reporter: THE APPROACH IS SHOWING RESULTS. ON AVERAGE FARMERS ENROLLED IN ONE ACRE FUND HAVE SEEN THEIR CROP YIELDS TRIPLE. THIS COUPLE HAVE DONE MUCH BETTER THAN AVERAGE.

>> FOR NOW... BEFORE TWO OR THREE.

>> Reporter: BEFORE HE USED TO GET TWO OR THREE BAGS OF MAIZE FROM YOUR LAND. NOW YOU GET 18. LAST YEAR?

>> YES.

>> Reporter: THEY TOOK ME TO SEE THE VECHLS THEY'VE MADE WITH THEIR PROFITS: SCHOOL FOR THEIR FOUR DAUGHTERS. ABOUT 160 U.S. DOLLARS PER YEAR.

>> SHE WANTS TO BE A DOCTOR. THEN I TOLD HER KEEP UP.

>> Reporter: KEEP UP. KEEP UP THAT AMBITION.

>> OUR FARMERS GO FROM SUBSIST ENS TO FINALLY GETTING THE FOOD FOR THEIR ENTIRE FAMILIES BUT THEN ALSO SELLING SURPLUS FOR THE FIRST TIMES IN THEIR LIVES.

>> Reporter: HE SAYS THIS IS OPENING UP NEW OPPORTUNITIES FOR FARMERS. RICHARD HAS BEEN A ONE ACRE FUND FARMER FOR THREE YEARS. HE NOT ONLY HAS SURPLUS FOOD STAPLES LIKE MAIZE BUT ALSO GROWS CROPS FOR CASH: PEANUTS AND BANANAS. IN THE OLD DAYS HE HAD TO RELY ON MIDDLE MEN IN HIS LOCAL MARKET FOR EVERYTHING: BUYING SEEDS, SELLING THE OCCASIONAL SURPLUS WITH LITTLE BARGAINING POWER. NOW HE VISITS A NEW KIND OF STALL IN THE MARKET. IT SELLS INFORMATION. BANANAS, HE LEARNED, WERE FETCHING MUCH HIGHER PRICES IN A TOWN ABOUT 100 MILES AWAY.

>> I FOUND OUT WHEN YOU LOOK AT THE BANANA, IT'S 280 BUT WHEN YOU GO TO ANOTHER TOWN, IT'S ABOUT 430.

>> Reporter: YOU CAN LOOK AT THIS BOARD HERE AND DETERMINE WHERE THE BEST PLACE IS TO SELL.

>> YES.

>> Reporter: A NEW FOR-PROFIT COMPANY CALLED CASE HAS SET UP OUTLETS LIKE THIS ONE IN MARKETS ACROSS KENYA. THE INTERNET AND CELL PHONE CONNECTIONS INFORM THE TRADING BOARDS AND LINK PRODUCERS LIKE RICHARD WITH DISTANT BUYERS. CASE WAS STARTED BY AN ECONOMIST TRAINED AT THE UNIVERSITY OF KANSAS. HE SAYS THE CENTERS FACED RESISTANCE WHEN THEY FIRST OPENED.

>> MIDDLEMEN AND TRADERS DID NOT LIKE THEM. THEY OPPOSED THEM. WHY? BECAUSE THEY WERE PROVIDING INFORMATION TO THE FARMERS. WE WERE EMPOWERING THE FARMER TO KNOW THE MARKET PRICES AND INCREASE THE FARMERS' BARGAINING POWER.

>> Reporter: NOW HE SAYS EVEN THOUGH MIDDLEMEN GET A SMALLER SHARE OF THE PIE, THE PIE HAS GOTTEN MUCH LARGER. FOR FARMERS GETTING THE BEST PRICE IS ALSO A QUESTION OF TIMING. SOON AFTER A HARVEST THERE'S PLENTY OF MAIZE SO THE PRICE PLUMB HES. ONE ACRE STAFFERS, MOST OF THEM JUST OUT OF COLLEGE, ARE WORKING ON A PILOT PROJECT THAT WOULD OFFER LOANS FOR FARMERS TO STORE SOME OF THEIR GRAIN.

>> A FARMER NORMALLY IS SELLING THEIR MAIZE IN JANUARY. WE WANTED TO HAVE THEM SELL THEIR MAIZE PUT IT BACK IN THEIR HOUSE AND PAY THAT SCHOOL FEE.

>> THE FARMER WOULD BE VERY TEMPTED TO SELL THEIR HARVEST ALMOST IMMEDIATELY SO THEY COULD PAY FOR SCHOOL FEES BUT THEY OUGHT TO BE HOLDING ON THAT HARVEST FOR SIX MONTHS WHEN IT'S MUCH MORE VALUABLE AND SCARCER IN THE HUNGER SEASON.

>> Reporter: WE WOULD GET A BETTER PRICE FOR IT.

>> EXACTLY.

>> IF WE CAN HELP OUR FARMERS STORE THEIR MAIZE FOR LONGER, THEN WE CAN HELP THEM MAKE A LOT MORE MONEY.

>> Reporter: ONE ACRE FARM TOOK IN $5 MILLION IN FARMER LOAN REVENUE LAST YEAR BUT STILL NEEDED A MILLION DOLLARS IN GRANTS AND DONATIONS TO COVER THEIR EXPENSES. THEY SAY THAT THEIR KENYA AND RWANDA OPERATIONS SHOULD BREAK EVEN IN A FEW YEARS BUT SUSTAINABILITY ALSO DEPENDS ON THE INVESTMENTS THAT GOVERNMENTS WILL MAKE FROM BUILDING NEW ROADS TO IMPROVING STORAGE FACILITIES AND SEED AND FERTILIZER SUPPLY. AT THE ALLIANCE FOR A GREEN REVOLUTION IN AFRICA, MARGARET SAYS THE GOVERNMENT SUPPORT IS CRITICAL FOR GROUPS LIKE ONE ACRE FUND TO SUCCEED.

>> OTHERWISE YOU CAN HAVE BEAUTIFUL, WONDERFUL ISLANDS OF EXCELLENT WORK THAT JUST FADES AWAY OVER TIME. HOW DO YOU MAKE THAT ULTIMATE CONNECTION BETWEEN THE TECHNOLOGY AND THE LARGER POLICY ENVIRONMENT, THE INSTITUTIONS THAT WE ENSURE THAT THESE INNOVATIONS CONTINUE TO BE SCARED OFF?

>> Reporter: ANDREW AGREES. BUT FOR NOW THE PROGRAM'S SUCCESS IS BUILT ON THE FARMERS' SUCCESS. ONE ACRE AT A TIME.

>> IT'S REALLY WONDERFUL TO SEE. PEOPLE REALLY DO INVEST EVERY DOLLAR THEY FINALLY GAIN AND START BUILDING KIND OF LIKE A STAIRCASE TO A BETTER LIFE.

>> Reporter: HE PREDICTS ONE ACRE FUND WILL EXCEED ITS GOAL TO SERVE 1.5 MILLION FARM FAMILIES BY 2020, A 15-FOLD INCREASE FROM TODAY BUT STILL A FRACTION OF THE 40 MILLION FAMILIES THAT HE SAYS COULD USE HELP ACROSS AFRICA.

>> Woodruff: FRED'S REPORTING

>> Woodruff: FRED'S REPORTING IS A PARTNERSHIP WITH THE UNDER- TOLD STORIES PROJECT AT SAINT MARY'S UNIVERSITY IN MINNESOTA. A RADIO REPORT ON BRAZIL'S EFFORTS TO ELIMINATE HUNGER THROUGHOUT THE COUNTRY AIRS TOMORROW ON AMERICAN PUBLIC MEDIA'S MARKETPLACE. YOU CAN WATCH OUR FIRST THREE REPORTS AT THE "FOOD FOR NINE BILLION" WEB SITE. FIND A LINK ON OUR SITE.

>> Ifill: FINALLY TONIGHT, KENTUCKY FANS ARE CELEBRATING THEIR LATEST CHAMPIONSHIP IN MEN'S BASKETBALL. BUT THE TEAM'S DOMINANCE IS SPARKING QUESTIONS ANEW ABOUT THE MOST MINIMAL REQUIREMENTS AND THE LINKS TO PROFESSIONAL BALL. .

>> AND THE KENTUCKY CORONATION IS COMPLETE.

>> Ifill: MONDAY NIGHT'S VICTORY CAPPED A REMARKABLE SEASON FOR THE NATIONAL CHAMPION KENTUCKY WILDCATS. THE TEAM WAS LED BY THREE FRESHMEN STARTERS INCLUDING NATIONAL PLAYER OF THE YEAR ANTHONY DAVIS. BUT MONDAY'S TITLE GAME MAY BE THEIR LAST IN A COLLEGE UNIFORM. NEXT SEASON MOST ARE EXPECTED TO TRADE HIGHER EDUCATION FOR PRO BALL. IN AN EFFORT TO KEEP ATHLETES IN COLLEGE, THE NATIONAL BASKETBALL ASSOCIATION DECREED IN 2005 THAT PLAYERS HAVE TO BE 19 AND AT LEAST ONE YEAR OUT OF HIGH SCHOOL BEFORE THEY TURN PRO. ITS NICKNAME: THE ONE AND DONE RULE. WINNING KENTUCKY HEAD COACH HAS BEEN ACCUSED OF EXPLOITING THAT RULE. HE DISAGREES.

>> I DON'T THINK IT'S A GOOD RULE. I HOPE WE CHANGE IT BEFORE THIS WEEK IS OUT SO THESE GUYS ALL HAVE TO COME BACK. BUT IT IS A RULE. IT'S NOT MY RULE. IT'S A RULE WE HAVE TO DEAL WITH.

>> Ifill: THE NCAA INSISTS ITS GEEL IS TO INCREASE GRADUATION RATES.

>> DIVISION ONE STUDENT ATHLETES HAVE HIGHER SAT AND ACT SCORES THAN COLLEGE BOUND STUDENTS.

>> THE NUMBER OF US RECEIVING DIPLOMAS IS AT AN ALL TIME HIGH. DO YOU THINK WE'RE A BUNCH OF DUMB JOCKS?

>> YOU NEED TO DO YOUR HOME WORK.

>> Ifill: BUT IS IT WORTH IT TO STAY IN SCHOOL? NCAA PRESIDENT MARK EMMETT SAYS HE THINKS THE WON AND DONE RULE SIMPLY DOESN'T WORK. BUT HE SAYS HE CAN'T CHANGE IT SINCE IT'S PART OF AN N.B.A. LABOR AGREEMENT. IN RESPONSE, N.B.A. COMMISSIONER DAVID STERN SAID THE N.C.A.A. COULD CREATE OTHER REQUIREMENTS TO ENSURE PLAYERS STAY IN SCHOOL LONGER. WE TAKE A CLOSER LOOK WITH KEVIN BLACKISTONE, A PROFESSOR OF JOURNALISM AT UNIVERSITY OF MARYLAND, AND A COMMENTATOR ON ESPN. AND JERRY TIPTON OF THE "LEXINGTON HERALD LEADER." HE'S BEEN COVERING KENTUCKY BASKETBALL FOR FOUR DECADES. JERRY TIPTON, CONGRATULATIONS TO THE KENTUCKY FANS DOWN THERE. IS THIS RULEMAKING IT LESS LIKELY FOR A STUDENT ATHLETE TO STAY STUDENTS?

>> WELL, YEAH. I MEAN, YOU TAKE ANYBODY'S COLLEGE EXPERIENCE AND IF THEY'RE IN COLLEGE ONE YEAR VERSUS FOUR YEARS, IT'S JUST VASTLY DIFFERENT. KENTUCKY, THE OFFICIALS AND EVEN THE FANS ARE NOT COMPLETELY HAPPY WITH THE SITUATION AS IT IS. BUT, YOU KNOW, WHEN YOU WIN THE NATIONAL CHAMPIONSHIP, THAT EASES ANY CONCERNS YOU HAVE.

>> Ifill: DOES IT EASE CONCERNS WHEN THEY KNOW THEY'RE GOING TO HAVE TO START FROM SCRATCH AGAIN NEXT SEASON WITH A WHOLE NEW CROP OF PLAYERS.

>> WELL, THEY HAVE SOME EXPERIENCE AT THAT. ONE OF TWO SENIORS ON THIS YEAR'S TEAM, WE COUNTED UP HOW MANY TEAMMATES HE'S HAD IN HIS FOUR SEASONS. THE NUMBER IS 40. SO THEY HAVE BASICALLY HAD A NEW TEAM EACH SEASON AND HAD A LOT OF SUCCESS EACH SEASON.

>> Ifill: A LOT OF SUCCESS ON THE COURT. BUT IS THIS GOOD FOR THE GAME OR FOR THE STUDENTS, KEVIN?

>> IT'S CERTAINLY NOT GOOD FOR STUDENTS. IT MAKES A MOMERY OF HIGHER EDUCATION. ANY TIME YOU HAVE SOMEONE COME IN WHO THE NCAA WANTS TO CALL A STUDENT ATHLETE ATHLETE AND THE FACT IS THEY ONLY HAVE TO STAY ELIGIBLE FOR A SHORT PERIOD OF TIME IN ORDER TO PLAY BASKETBALL AND LEAVE STRAIGHT FOR THE NBA, IT MAKES A MOCKERY OF HIGHER EDUCATION. IS IT GOOD FOR THE GAME? IT'S GREAT FOR COLLEGE BASKETBALL. THESE ARE THE HIGHEST TV RATINGS WE'VE HAD SINCE 2005 THIS YEAR. IT BRINGS IN SOMETHING LIKE THREE QUARTERS OF A BILLION DOLLARS IN REVENUES, MARCH MADNESS DOES TO THE NCAA. AS FAR AS THE NBA IS CONCERNED, IT GIVES THEM A YEAR OF FREE TUTELAGE FOR TALENT THAT WILL BE COMING IN THROUGH THE LEAGUE. IT'S GREAT FOR BASKETBALL. FANS LOVE IT. THAT'S WHY EVERYBODY TUNED IN LAST NIGHT TO SEE THIS FRESHMAN PHENOM ANTHONY DAVIS.

>> Ifill: EVERYONE IS TALKING ABOUT WHAT HAPPENED LAST NIGHT. IN NEW ORLEANS AT THE FINAL. BUT I WONDER WHETHER IT IS NOT SOMETHING THAT GOES BEYOND KENTUCKY. IS THIS WIDESPREAD? IS THIS NOW WIDELY ACCEPTED?

>> IT IS WIDELY ACCEPTEDMENT IT'S NOT JUST KENTUCKY THAT'S DOING IT. I THINK THE COACH GETS THE FINGER POINTED AT HIM BECAUSE HE HAD SO MANY PLAYERS WHO HAVE BEEN WON AND DONE. IT'S HAPPENED AT DUKE WHICH EVERYONE THINKS OF AS A BASTION OF HIGHER EDUCATION WHICH CERTAINLY IT IS. BUT COACH K HAS HAD IT HAPPEN THERE. IT'S PART AND PARCEL THE WAY BASKETBALL IS GOING THESE DAYS AND THE REASON IS BECAUSE OF THE MONEY THAT IT GENERATES AND HOW IT BEEN ANYS EVERYBODY AROUND IT INCLUDING FANS WHO LOVE TO SEE THIS THING. AND THOSE OF US IN THE MEDIA CONTINUE TO WRITE ABOUT IT.

>> Ifill: JERRY TIPTON, WE HEARD THAT THE NBA IS SAYING WELL THIS IS REALLY SOMETHING THE NCAA COULD FIX. WE HAVE THE NCAA SAYING WE ARE POWERLESS BECAUSE THAT'S AN NBA RULE. CIRCULAR ARGUMENT GOING ON THERE.

>> WELL, IT'S SORT OF LIKE PASSING THE BUCK. BUT THE NCAA REALLY DOESN'T HAVE CONTROL. THIS IS A PRO RULE THAT THEY'RE DEALING WITH. I CAN REMEMBER THIS HAS BEEN SEVERAL DECADES AGO WHEN A PLAYER NAMED SPENCER HEYWOOD SUED FOR THE RIGHT TO TURN PRO OUT OF HIGH SCHOOL. I THINK AT THAT TIME-- AND I MAY BE WRONG-- BUT I BELIEVE IT WAS FOUR YEARS OUT OF HIGH SCHOOL BEFORE YOU COULD TURN PRO. HE WENT THE LEGAL ROUTE AND WON THE RIGHT TO GO. SO THE WON AND DONE IS SOMETHING OF A COMPROMISE. IT'S THE WORLD AS KEVIN SUGGESTED, IT'S THE WORLD WE LIVE IN.

>> Ifill: DO WE GO BACK TO THE WAY IT USED TO BE? WHY BOTHER TO GO TO COLLEGE AT ALL.

>> THAT'S THE WAY IT SHOULD BE. IF PEOPLE WANT TO GET INTO THE PHRASE UNAMERICAN THIS IS ABOUT AS UNAMERICAN AS IT CAN BE.

>> Ifill: FOR THE STUDENT EVEN TO GO TO SCHOOL FOR ONE JEER.

>> IF YOU HAVE THE ABILITY TO EARN LARGE SUMS OF MONEY IN WHATEVER ENDEAVOR YOU CHOOSE, WHY SHOULD YOU HAVE TO GO TO COLLEGE IN ORDER TO DO IT IF SOMEBODY IS READY TO PAY YOU IMMEDIATELY? CLEARLY ALREADY INDUSTRYS IN THIS COUNTRY THAT HAVE AGE LIMITATIONS. WE'RE NOT TALKING ABOUT BRAIN SURGERY HERE. WE'RE TALKING ABOUT BASKETBALL. IF YOU'RE 6'10", CAN RUN WITH THE WIND AND JUMP TO THE HEAVENS AND CAN SCORE POINTS AND REBOUNDS AND DO ALL OF THAT, YOU KNOW WHAT? YOU SHOULD BE ABLE TO GARNER A LIVING IMMEDIATELY... GARNER A LIVING IMMEDIATELY AT THAT. AND IF YOU WANT TO GO TO COLLEGE, YOU CAN STILL GO TO COLLEGE. YOU CAN STAY IN SCHOOL. THAT'S FINE.

>> GWEN, THE MODEL THAT YOU HEAR PEOPLE MENTION IS COLLEGE BASEBALL. WHERE COMING OUT OF HIGH SCHOOL, A PLAYER WOULD HAVE THE OPTION OF TURNING PRO IMMEDIATELY OR MAKING A THREE- YEAR COMMITMENT TO COLLEGE BEFORE BEING ELIGIBLE FOR THE BASKETBALL DRAFT. THAT WOULD BE SORT OF THE IDEAL HOW WE GET FROM WHERE WE ARE TO THERE. I REALLY DON'T KNOW.

>> Ifill: GARY, DO WE KNOW WHETHER COLLEGE ADMINISTRATORS THOSE WHO ARE PRESUMABLY FOCUSED ON ACADEMICS WHETHER THEY HAVE OBJECT TO THIS STRENUOUSLY, WHETHER THEY TRY TO CHANGE IT.

>> WELL, I HAVE ASKED THE KENTUCKY PRESIDENT WHO HIRED THE COACH AND HIS SUCCESSOR WHO CAME ABOARD A YEAR AGO THAT VERY QUESTION. AND WHAT YOU GET IS A WAY TO RATIONALIZE WHAT WE HAVE. THE FORMER PRESIDENT SAID THAT IF KENTUCKY DID NOT TAKE THESE KINDS OF PLAYERS, THAT THEIR COMPETITORS WOULD. THAT'S PROBABLY TRUE. AND WHEN I ASKED THE NEW PRESIDENT, HE BASICALLY TRIED TO POINT OUT THAT WHILE THE PLAYERS ARE ON CAMPUS FOR THAT YEAR, THEY ARE MONITORED AND THEY ARE REQUIRED TO BE STUDENTS OR AT LEAST MAKE AN ATTEMPT THERE FOR THAT YEAR.

>> Ifill: KEVIN, DO YOU HEAR ANY PUSHBACK AT ALL COMING FROM ACADEMICS.

>> SURE. THERE'S THE DRAKE GROUP THAT'S OUT THERE. THERE ARE PEOPLE WHO ARE INVOLVED WITH THE COMMISSION ON INTER-COLLEGIATE ATHLETICS WHO ARE VERY CONCERNED ABOUT THIS THING. AT THE END OF THE DAY YOU LOOK AT KENTUCKY. YOU LOOK AT THE STATE OF KENTUCKY AND A BASKETBALL PROGRAM LIKE THAT AT LOUISVILLE. YOU REALIZE THAT THEY'RE BRINGING IN 27 MILLION DOLLARS NET REVENUE AT THE UNIVERSITY OF LOUISVILLE THROUGH BASKETBALL. IN A STATE WHICH IS CUTTING BACK JUST LIKE MOST OTHER STATES ON HIGHER EDUCATION FUNDING. SO WHAT IS A PRESIDENT AND A CHANCELLOR TO DO? THEY ARE LOOKING FOR STREAMS OF REVENUE. THIS IS ONE OF THEM. THEY'RE NOT LIKELY TO THROW THE BABY OUT WITH THE BATH WATER.

>> Ifill: LET ME ASK YOU BOTH, JERRY STARTING WITH YOU FINALLY, HOW AGGRESSIVELY IS THE NBA PLAYING A ROLE? ARE THEY PULLING UP CHAIRS AT THE SIDE OF BASKETBALLOR COURTS AND JUST WAITING FOR THESE STUDENTS.

>> OF COURSE THEY'RE HAPPY TO WAIT. THE LONGER THEY WAIT, THE MORE MATURE PLAYER THEY GET. THE MORE SEASONED PLAYER THEY GET. AND THE MORE MARKETABLE PLAYER THEY GET. BECAUSE THE LONGER THE PLAYER IS IN COLLEGE, THE MORE FANS BECOME AWARE OF THEM. SOMEONE LIKE ANTHONY DAVIS. HE'S GOING TO BE A PLAYER THAT THE PRO FANS WILL WANT TO WATCH. IF HE WERE TO STAY AT KENTUCKY TWO OR THREE YEARS, YOU KNOW, THAT APPETITE WOULD ONLY GROW MORE AND MORE TO SEE HIM PLAY IN THE NBA.

>> Ifill: KEVIN?

>> ABSOLUTELY. YOU KNOW, THE NBA DOESN'T WANT TO GET RID OF THIS RULE. THEY WANT TO STRENGTHEN IT. THEY WANT TO MOVE IT TO TWO YEARS BEFORE YOU CAN COME INTO THE LEAGUE. AND THE NBA PLAYERS ASSOCIATION IS BEHIND THIS AS WELL BECAUSE THAT MEANS LESS COMPETITION FOR THEIR MEMBERSHIP.

>> Ifill: THANK YOU BOTH VERY MUCH.

>> THANK YOU.

>> THANK YOU.

>> Woodruff: AGAIN, THE MAJOR DEVELOPMENTS OF THE DAY. PRESIDENT OBAMA BLASTED THE BUDGET PASSED BY HOUSE REPUBLICANS. HE CALLED IT A "TROJAN HORSE" AND AN EXAMPLE OF "SOCIAL DARWINISM." AND AT LEAST TWO LARGE TORNADOES TORE INTO THE DALLAS AREA, SHREDDING BUILDINGS AND TOSSING TRUCKS LIKE TOYS. THERE WAS NO IMMEDIATE WORD OF INJURIES. ONLINE, SPECIAL CORRESPONDENT STONE PHILLIPS ANSWERED YOUR QUESTIONS ABOUT YOUTH FOOTBALL. HARI SREENIVASAN HAS MORE. HARI?

>> Sreenivasan: ON THE RUNDOWN, WATCH A RECAP OF TODAY'S LIVE CHAT. ON THE CAMPAIGN, PATCHWORK NATION EXAMINES WHY WISCONSIN'S DEMOGRAPHIC MAKEUP COULD TRANSLATE TO A GOOD ELECTION NIGHT FOR ROMNEY. PLUS, LATER TONIGHT, TRACK LIVE ELECTION RETURNS FROM TODAY'S CONTESTS IN OUR MAP CENTER. ALL THAT AND MORE IS ON OUR WEB SITE, newshour.pbs.org. GWEN?

>> Ifill: AND THAT'S THE NEWSHOUR FOR TONIGHT. ON WEDNESDAY, WE'LL ASSESS THE FALLOUT FROM TODAY'S G.O.P. PRESIDENTIAL PRIMARY VOTING. 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. MAJOR FUNDING FOR THE PBS NEWSHOUR HAS BEEN PROVIDED BY: CITY TURNS 200 THIS YEAR. IN THAT TIME THERE HAVE BEEN SOME GOOD DAYS AND SOME DIFFICULT ONES BUT THROUGH IT ALL WE'VE PERSEVERED SUPPORTING SOME OF THE BIGGEST IDEAS IN MODERN HISTORY. SO WHY SHOULD OUR ANNIVERSARY MATTER TO YOU? BECAUSE FOR 200 YEARS WE'VE BEEN HELPING IDEAS MOVE FROM AMBITION TO ACHIEVEMENT. AND THE NEXT GREAT IDEA COULD BE YOURS.

>> 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. Captioning sponsored by MacNEIL/LEHRER PRODUCTIONS C