Skip to main content

tv   60 Minutes  CBS  October 31, 2010 7:00pm-8:00pm PDT

7:00 pm
captioning funded by cbs and ford-- built for the road ahead. >> pelley: you know, the economists say that the recession is over. >> really? they should come to newton, iowa. ( laughs ) >> pelley: and this is what they would see in newton, iowa. a maytag plant where 2500 people worked, now abandoned. this was the chrysler dealer, the chevy dealer, the tractor supply company. it helps explain why there is so much anger in the land ahead of tuesday's election. >> i'm sick and tired of people going to congress in washington d.c. and making a living out of it while we starve to death.
7:01 pm
>> now, i believe we ought to make the tax cuts for the middle class permanent. >> we have now got both parties essentially telling a big lie with a capital "b" and a capital "l" to the public. >> cutting taxes. >> cut taxes. >> make the tax cuts permanent. >> the republican party, as much as it pains me to say this, should be ashamed of themselves. >> stahl: this from ronald reagan's old budget director, architect of the largest tax cut in american history. >> it's rank demagoguery. we should call it for what it is. >> simon: the life story can be told in one line. she does not know how to lose. but the first thing we noticed about zenyatta was not her might but her magnificence. she is quite simply the most splendid creature we've ever seen, and she's about to hit the track for the last time. it will determine her place in racing history. >> i think she could arguably go
7:02 pm
down as one of the greatest if not the greatest horse of all time. >> simon: the greatest horse of all time? >> definitely. >> i'm steve kroft. >> i'm lesley stahl. >> i'm bob simon. >> i'm morley safer. >> i'm anderson cooper. >> i'm scott pelley. those stories and andy rooney tonight on "60 minutes." rate boxes working out? fabulous! they gave me this great idea. yea? we mail documents all over the country, so, what if there were priority mail flat rate... envelopes? yes! you could ship to any state... for a low flat rate? yes! a really low flat rate. like $4.90? yes! and it could look like a flat rate box... only flatter? like this? genius. priority mail flat rate envelopes. just $4.90. only from the postal service. a simpler way to ship. being a leader means moving fast. across the country when the economy tumbled,
7:03 pm
jpmorgan chase set up new offices to work one-on-one with homeowners. since 2009, we've helped over 200,000 americans keep their homes. and we're reaching out to small businesses too, increasing our lending commitment this year to $10 billion and giving businesses the opportunity to ask for a second review if they feel their loan should have been approved. this is how recoveries happen. everyone doing their part. this is the way forward. if anything, i thought i'd get hit by a bus, but not a heart. my doctor put me on an aspirin regimen to help protect my life. [ male announcer ] be sure to talk to your doctor before you begin an aspirin regimen. check with your doctor because it can happen to anybody. check with your doctor this is the highest resolution phonso every freckle
7:04 pm
every wrinkle every letter every word every tweet tune battle and memory... looks more beautiful than ever before. the amazing retina display. only on the iphone 4. >> pelley: two years ago, most americans voted for change, and if the polls are to be believed, they're about to do it again. in the latest cbs news/"new york
7:05 pm
times" poll, 80% said they want most incumbents out of congress, regardless of whether that incumbent is a democrat or a republican. there's a grim mood among people who were counting on a recovery that's now fallen flat. the economists who decide such things say that the great recession ended back in june of 2009. but since then, we've lost another half million jobs. which helps explain why there is so much anger in the land. we saw a lot of it right in the middle of the country, among the people who've endured the recession longer than anyone. what's surprised you the most about this recession? >> dave mcneer: i think the depth of it and the length of it. i think what surprised me the most about this one is it doesn't want to end. >> pelley: you know, the economists say that the recession's over. >> mcneer: really? they should come to newton, iowa. ( laughs ) >> pelley: dave mcneer's advertising company is like a lot of small businesses-- it's
7:06 pm
getting smaller. maxim advertising in newton, iowa, puts its customer's logos on nearly anything, and business had only grown for 22 years, until 2007. and what was all of this? >> mcneer: this was filled-- maytag, maytag, maytag, maytag. >> pelley: maytag invented its washing machine in newton 103 years ago. 5,000 people worked for maytag here. but newton lost all of those jobs. maytag was bought out, and by 2007, the factory was closed. many of the jobs went to mexico. no one knew it then, but these were the opening days of the great recession. now, layoffs that started with corporations are cascading into mom and pop shops. how many employees did you have at the top? >> mcneer: 22. >> pelley: and today? >> mcneer: ten. >> pelley: do you remember the first person you had to lay off? >> mcneer: one of the very hardest days of my life. my wife and i stayed up all
7:07 pm
night long. we... we talked, we prayed, we... we struggled. and you know what? man, that's... that's a gut- wrenching feeling. you hate it. i hate it. and i never wanted to have to do it again. >> pelley: i wonder, when you look forward now, what you think about rehiring people? >> mcneer: when we hire somebody, we're... we're definitely going to need them. i mean, we're not going to hire one person until we need two or three, and we're probably not going to hire two until we need four for five. >> pelley: and that's why the recovery is lifeless. big and small, businesses have settled into doing more with fewer people. >> mcneer: and you ask people to step it up and... and, you know, work harder, work longer, make less. >> pelley: is it sort of a new normal? >> mcneer: i think, for now, it is. >> pelley: take a quick look around newton. gary forbes laid off half of his 60 employees, closed two locations, and switched from
7:08 pm
selling top quality furniture to scratched and dented. web site designer cindy brunner laid off six of her 14 employees. this was the chrysler dealer... the chevy dealer... the tractor supply company. since the recession, we've seen a lot of troubled towns in the country, but nothing that looks quite as broken as newton. even the local chapter of the optimists club has closed. >> chaz allen: i want to tell everybody that we're a company town where the company left, but we're going to thrive. >> pelley: chaz allen is the mayor of this town of 15,000 people. it's a part-time job, pays about $4,000 a year. allen walked us through an abandoned maytag plant that, at its peak, held 2,500 factory workers building washers and dryers. if anyone out there is interested, the mayor has more than 1.7 million square feet to rent. >> allen: it is available.
7:09 pm
it is available. we'll make you a good deal. >> pelley: the mayor's been trying to pull new jobs into town. he made a run at green energy, and got a company that makes wind turbine blades. but every time he gets a few hundred jobs, he seems to lose a few hundred. this fall, a telecom company called windstream had two layoffs. >> allen: it was 60, and then it was 146 the next time. >> pelley: how's that affect people around here? >> allen: you know, it's a roller coaster. i want to say that, i mean, i was affected in the first layoff. i was one of the ones at windstream that was affected in the first... first round. >> pelley: wait a minute. >> allen: yeah. >> pelley: they laid off the mayor? >> allen: yeah. >> pelley: are you working now? >> allen: no. >> pelley: his town is shrinking. this year, they closed an elementary school, and they're slashing the city budget. have you already lost policemen? >> allen: yes. >> pelley: firemen? >> allen: yes. >> pelley: what about the hospital in town? >> allen: it's being reduced in size, as well. >> pelley: and that is the backdrop for tuesday's election. in our national poll, we asked "what's the most important issue
7:10 pm
in america?" 54% said jobs. healthcare came in second at 7%. only 1% said the war. newton's congressional district is bipartisan country. it voted for george bush in 2004, and then for president obama. but now, democratic congressman leonard boswell is fighting for his job. he's been re-elected here six times, but this week, his race against republican brad zaun is too close to call. >> mcneer: my wife and i watched the news last night, and i think every ad was a political ad. >> who do you trust with your money, with your future? it's not brad zaun. >> leonard boswell-- too wrong for too long. >> incredibly, bruce braley supports building a mosque at ground zero. >> pelley: well, how much relevance does all of that have to you? >> mcneer: nothing, nothing. doesn't have a bit of relevance to me. >> pelley: we invited some of the folks in town to the legion hall.
7:11 pm
how many of you would say that you're are angry about politics right now? >> yes, yes. >> pelley: oh, that got a big yes. >> i'm sick and tired of people going to congress in washington, d.c., and making a living out of it while we starve to death. >> pelley: does it matter much to anyone in here whether the republicans or the democrats control the house, for example? >> nope. no. no. >> pelley: it doesn't matter? >> no. >> if a republican says it, the democrats don't listen. if the democrats say it, the republicans don't care what they're saying. >> what gets done in washington? what gets done at... at the iowa state house? very little gets done. i mean, everything comes down to either abortion issues, gay marriage issues. it needs to go above and beyond that. >> i don't have a job. that's all i care about. i don't care about the republicans or the democrats. i care about newton, iowa-- the job situation, the financial situation . >> pelley: we went to the foreclosure auction the other day. nobody bid on anything. >> nobody has any money. >> help us.
7:12 pm
do something about the economy. it's... it's really hard out here. >> todd meyer: the economy is not spurring jobs. >> pelley: todd meyer was laid off from the same telecom company that laid off the mayor. you served in the gulf war? >> meyer: i did. >> pelley: you were in the navy? >> meyer: yep. >> pelley: in combat there? >> meyer: yep. u.s.s. "george washington." >> pelley: and now, you're unemployed? >> meyer: yes. >> pelley: meyer and his wife, teresa, are raising three kids. their daughter caitlin is the first in the family to go to college. >> teresa meyer: i get emotional about it, because it's just, you know, we never expected to be in this position. but, you know, i look at my daughter and i just think, how do i keep her in college? >> pelley: it's every parent's dream to send their child to college, especially if that parent didn't have the same opportunity. >> caitlin meyer: i've had this dream since i was really little, and my parents have done everything they can. and it's just starting to get hard. and i'm going to try and help out. but it's hard to see that dream slip away. >> pelley: how many of you think
7:13 pm
that your children will enjoy the same standard of living that you did? this worry-- pessimism, really-- weighs on families who had seen a different future. how many employees did you have at the peak? >> scott creech: 22. >> pelley: how many do you have now? >> creech: i'm down to seven. half pepperoni, half pineapple. >> pelley: scott creech bought his own pizza franchise in newton 21 years ago. how many hours are you working? >> creech: last week, it was 82. >> pelley: 82 hours in a week? >> creech: correct. yeah. >> pelley: how long can you do that? >> creech: until i die. >> pelley: sales have slipped to a place that's sometimes dangerous for his family. >> creech: once you get down around this area, i may be able to file for food stamps. >> pelley: his wife julie is working at a school to take some of the pressure off. >> julie creech: he's 52 years old now, and i worry about him every day.
7:14 pm
his brother died of a heart attack when he was in his 40s and i worry about that all the time. >> pelley: his son parker is ten. creech comes home to put parker in bed, but then he heads back to the shop. he washes up and closes up about 1:00 am. i wonder what the stress has been like for you. >> creech: i've been blessed... you know, you have guilt. >> pelley: guilt about what? >> creech: you'd like to have that 8-to-5 job, holidays off, but... >> pelley: you can't do that now. >> creech: no. >> pelley: nationwide, the number of small businesses going bankrupt each year has tripled since the recession. there were 60,000 bankruptcies last year alone. when you're looking for the path out of this flat recovery, there
7:15 pm
are a couple of things that strike you. one, small businesses create most of the jobs in this country-- 65% of all new jobs. but lending to small businesses is actually declining. in the second quarter of this year, lending to small businesses and farms dropped by $13 billion. that's nearly 2%. so three years after the beginning of the great recession, with interest rates the lowest they've ever been in history, banks are lending less money to the engines that create jobs. have you gone to the bank? >> mcneer: yeah. that's amazing, because, you know, you hear stories about how lending is going to be more friendly and, you know... and even the president himself is, you know, going to tell banks that they need to understand what businesses are going though. there's no banks... banks don't understand anything. they won't loan me a dime. >> pelley: you went to the bank and they said what? >> mcneer: "come back when you have a couple of good years behind you."
7:16 pm
really? because i won't need you then. >> alan yegge: you know, they'll offer money to you when you don't need it. but when you need it, you can't get it. "perfect"-- we like to hear that. >> pelley: alan yegge has been losing money at this jewelry on the court house square for a year and a half. he makes a lot of his own jewelry. and to try to match his customer's falling income, he switched from gold to silver, diamonds to beads. his employees, darlene swank and tina kono, even volunteered to cut their hours. you're going to have to let tina and darlene go. >> yegge: it's hard. it's hard. >> pelley: do you remember when you had to sit down and explain it to them? >> yegge: yeah, i talked to darlene first. i didn't have to say anything; she knew. you know, she does our books, and she knew. >> pelley: and what did the books tell you? help me understand. >> yegge: you just can't keep doing what you're doing.
7:17 pm
you know, as hard as it is, we tried. >> pelley: his store closed this weekend. more layoffs reduce demand, which create more layoffs. change may be coming again to washington, but in newton, many believe the struggle will stay the same as family businesses work to steal another day from the great recession. >> cbs money watch update sponsored by:. >> mitchell: good evening. the bernard madoff bankruptcy trustee spent $27 million to recover only $849,000 for madoff victims. much of it went to the trustee's law firm. after 48 years gm pontiac brand drove off into history today. on this halloween weekend-- 3-d won the weekend box office.
7:18 pm
i'm russ mitchell, cbs news it. and explore new places. i'm breathing better with spiriva. spiriva is the only once-daily inhaled maintenance treatment for both forms of copd... which includes chronic bronchitis and emphysema. i take it every day... it keeps my airways open to help me breathe better all day long. spiriva does not replace fast acting inhalers for sudden symptoms. stop taking spiriva and call your doctor right away if your breathing suddenly worsens, your throat or tongue swells, you get hives, have vision changes or eye pain... or have problems passing urine. tell your doctor if you have glaucoma, problems passing urine or an enlarged prostate... as these may worsen with spiriva. also discuss the medicines you take... even eye drops. side effects include dry mouth, constipation and trouble passing urine. now, i'm managing my chronic bronchitis every day. ask your doctor if once-daily spiriva is right for you. funny how nature just knows how to make things
7:19 pm
that are good for you. new v8 v-fusion + tea. one combined serving of vegetables and fruit with the goodness of green tea and powerful antioxidants. refreshingly good. ♪ call on me, brother, when you need a hand ♪ ♪ we all need somebody... brawny now comes with a money back guarantee. when you want a paper towel that can do it all, lean on me. ♪ when you need something strong ♪ brawny never lets you down. dairy producing area in the state of california. many of the dairies have gone by the wayside in this area. [ jill ] so my sisters and i came back to the farm to help my father realize his dream of producing a finished product here on the dairy. you know it's a way to keep this farm in our family. [ bob ] we were born and raised up here and we'll be up here the rest of our lives, i'll guarantee you that. ♪
7:20 pm
>> stahl: when congress returns after the elections on tuesday, it will face one of the most hotly debated issues in the campaign-- raising taxes on the rich. that's president obama's position-- to keep the bush tax cuts in place, except for those on the wealthiest 2%, as a way to reduce the dreaded deficit. it's an idea already percolating among the governors. eight states have increased so- called "millionaire" income
7:21 pm
taxes so far as a way of avoiding drastic budget cuts on health and education. and on tuesday, voters could make washington state the ninth. but with our national debt in the trillions, budget experts will tell you that just taxing the rich isn't enough. one republican brave enough to go public is david stockman, president reagan's budget director. he says all the bush tax cuts should be eliminated, even those on the middle class. and he says his own republican party has gone too far with its anti-tax religion. "tax cutting is a religion." what do you mean by that? >> david stockman: well, it's become, in a sense, an absolute, something that can't be questioned, something that's gospel, something that's sort of embedded into the catechism. and so, scratch the average republican today and he'll say "tax cuts, tax cuts, tax cuts." >> cut taxes... >> cutting taxes... >> make the tax cuts permanent.
7:22 pm
>> stockman: it's rank demagoguery. we should call it for what it is. if these people were all put into a room on penalty of death to come up with how much they could cut, they couldn't come up with $50 billion, when the problem is $1.3 trillion. so to stand before the public and rub raw this anti-tax sentiment, the republican party- - as much as it pains me to say this-- should be ashamed of themselves. >> stahl: this, from ronald reagan's old budget director, architect of the largest tax cut in american history. but he doesn't let the democrats off the hook. he says he cringes when he hears the president say things like this. >> president barack obama: i believe we ought to make the tax cuts for the middle class permanent. >> stockman: we have now got both parties essentially telling a big lie with a capital "b" and a capital "l" to the public. and that is that we can have all this government-- 24% of g.d.p., this huge entitlement program, all of the bailouts-- and yet,
7:23 pm
we don't have to tax ourselves and pay our bills. that is... that's delusional. >> stahl: why isn't this statement correct? we cannot really deal with the deficit until we get our recovery underway? >> stockman: the recovery has already happened. it is weak, it is tepid. >> stahl: how can you say the recovery has happened when we have 10% unemployment? >> stockman: the unemployment rate is not going to drop by any material amount any time soon. and we're going to be in a period of austerity. we've had a 30-year spree of really phony prosperity in this country. >> stahl: now, our national debt is growing by $100 billion a month. for those who say cutting spending is the answer, stockman says both parties have thrown in the towel on that. >> stockman: finally, even republicans have said there's nothing significant we want to cut. they don't want to cut social security entitlements; they don't want to cut medicare reimbursements to doctors, farm
7:24 pm
subsidies, education loans for middle class students; certainly not defense. >> stahl: many of the states are in the same boat, facing huge deficits with few prospects for cutting, which is why washington state is joining the movement across the country to tax the rich. on tuesday, voters will decide on initiative 1098 that would create an income tax, but only on the wealthy, of whom there are many-- 133,000 millionaires and seven billionaires, including bill gates of microsoft. >> bill gates: thank you. >> stahl: his father, bill gates, sr., has poured his own money into backing initiative 1098. >> bill gates, sr.: some people say initiative 1098 is about soaking the rich. >> stahl: the tax would bring in $3 billion a year, to be spent mainly on education, which has suffered cutbacks as the state reels under a massive deficit. >> gates, sr.: vote yes on 1098. it's good for washington.
7:25 pm
>> stahl: washington is one of only seven states without any income tax. the proposal would create a 5% rate on income over $200,000 for individuals and $400,000 for couples. a 9% rate kicks in at half a million dollars on individuals and a million for couples. let's say a couple earns $500,000. >> gates, sr.: okay. >> stahl: how much do you think they'll have to pay? >> gates, sr.: well, they would pay $5,000, because that's 5% of the $100,000 on which they would pay. >> stahl: oh, they would only pay on $100,000. they're exempt up to the $400,000. >> gates, sr.: precisely. >> stahl: so they'd only pay on $100,000. >> gates, sr.: precisely. >> stahl: well, that's not very much... >> gates, sr.: precisely. >> stahl: ...if you earn that kind of money. >> gates, sr.: precisely. >> stahl: his son bill is on his side, along with the public employees unions. the other side is a who's who of the state's big businesses: boeing, amazon and even microsoft.
7:26 pm
bill gates is still chairman, but the ceo steve balmer opposes the initiative, which is why they're calling this the battle of the billionaires. is it awkward? >> gates: the word "awkward" fits, yes. >> stahl: balmer's side argues that the "soak-the-rich" tax would stifle high-tech innovation and lead to businesses moving out of the state. we asked microsoft, amazon, and boeing for interviews, but they all declined. businesses are saying they'll leave. >> gates, sr.: yes. the real truth of the matter is that the people that own businesses are the people who will be paying the tax. and my analysis is they don't want to pay the tax. >> stahl: the rich guys don't want... >> gates, sr.: the rich guys don't want to pay the tax. >> stahl: are you saying you just think they're greedy? >> gates, sr.: no, because it... ( laughs ) no. they're defensive. they're... i guess you could call it greed, i suppose-- wanting to... wanting to not write another check, sure.
7:27 pm
>> stahl: steve ballmer? >> gates, sr.: yeah. >> stahl: he's worth $14 billion. you don't think he... >> gates, sr.: he's a very fine guy, too. the fact of the matter is there are 43 states in this country that have a state income tax. and the... in those states, the microsofts or the abcs, whatever, have not fled the state. i mean, it's just... it's just a gross exaggeration. >> stahl: but entrepreneur bryan mistele begs to disagree. >> bryan mistele: this initiative really is a nail in the coffin of small businesses and start-ups in our state. it really impacts the tech community very heavily. >> stahl: nail in the coffin? you mean, kill it off? >> mistele: that's correct. >> stahl: mistele is the ceo of inrix, a software company that monitors traffic around the world, and provides data for g.p.s. systems and sites like mapquest. he says businesses would leave the state, especially high-tech companies like his that deal in data and aren't tied down by factories or assembly lines.
7:28 pm
he'd consider moving some of his 60 employees to other states where he has offices. what are the states? >> mistele: massachusetts, florida, california... >> stahl: massachusetts-- income tax. go ahead. california-- income tax. >> mistele: texas, florida, michigan, colorado. >> stahl: okay, four out of the six have income taxes. i mean, i've heard a lot of businessmen say what you're saying, and i keep wondering, "well, where are they going to move if they leave?" >> mistele: well, each state has its own competitive advantages. so by adding this additional burden, it makes us much less attractive. >> stahl: adam stites is another entrepreneur who opposes the initiative. five years ago, he moved his company, istores, from portland, oregon, across the columbia river to vancouver, washington, just nine miles away. >> adam stites: it broke down to taxes. there... oregon has the highest income tax in the united states, and washington has the lowest at 0%. >> stahl: istores is the largest online retailer of paint ball equipment.
7:29 pm
stites has been hiring staff for a new company he acquired that sells prank novelties. this is for halloween? >> stites: it is for halloween, or for any times you need to be a man-eating shark. >> stahl: under the new tax, he would have to pay $50,000 a year, and that, he says, would hamper his ability to expand any further. this money, if it passes, will go specifically to education, because they've been cutting schools and things like that. so what is washington state supposed to do about its schools in terms of revenue? >> stites: i think the state, in aggregate, needs to take a look at its expenses. >> stahl: like? >> stites: i've had opportunity, in portland, to see cars being washed by third-party washing firms, cleaning cars on the weekends, for state vehicles. i don't have someone who cleans my car in a van and waxes... >> stahl: that's in portland. >> stites: it's in portland, but i think it's indicative of government spending. >> stahl: but the state budget
7:30 pm
has already been cut by $5 billion, and the governor, christine gregoire, says they're at the bone. >> governor christine gregoire: to cut people off hospice, i think, is immoral. to cut children off health care, to cut their education so they don't have a chance at a decent future, i think that would result in an immoral budget. >> stahl: she says she doesn't understand why so many of the state's high-tech c.e.o.s, who are always complaining about the woeful state of american education, are so opposed to paying this tax for schools. these businesses that want the educated workforce, they're against this. what do they say to you when you challenge them on this? >> gregoire: i tell them i have the utmost respect for them. these are great c.e.o.s. and i say to them, "here is the... the problem. you always want us to invest more in education, and now you say no. so, my question to you-- if not this, then what? don't just tell me no." >> stahl: well, what do they say? what do they say...? >> gregoire: they don't have an answer, lesley.
7:31 pm
>> stahl: the initiative was way ahead in the polls, until the opposition started airing ads saying 1098 is a slippery slope. >> it can be extended to you in just two years. >> stahl: polls now show the middle class thinks they too will be hit with income taxes. and the high-tech entrepreneurs we met say there's a fairness issue-- bill gates got to start microsoft without an income tax. and this is something you hear a lot-- that they find it curious gates is supporting an income tax now. >> mistele: i believe the gateses have already made most of their money, so they wouldn't be taxed under a new income tax structure in our state. >> stahl: they wouldn't be taxed at all? no. >> mistele: well, for people who've already made their money and paid taxes in this state, that money wouldn't be taxed again. it's only for people who are earning new money in this state. >> gates, sr.: well, that's ridiculous. i mean... i mean, my son will pay a huge, huge income tax. >> stahl: he will? >> gates, sr.: come on, he's the richest man in the country. what... what... >> stahl: no, but i'm asking... >> gates, sr.: how could anybody think he isn't going to pay a
7:32 pm
huge income tax? >> stahl: what is the income? >> gates, sr.: what does a person with $50 billion have for income? this conversation isn't making any sense. >> stahl: bill gates would pay multi-millions in taxes on the income from his investments. and he wants to. he's told you that? he's for this. >> gates, sr.: well, "wants to" is a little strong. >> stahl: okay, he's for this. >> gates, sr.: he's... he is for it. he's very willing. >> stahl: but, as david stockman will tell you, that attitude is hard to find. >> stockman: we've demonized taxes, all right. we've created almost the idea that they're a metaphysical evil. >> stahl: still, he says there should be a one-time 15% surtax on the wealthy that he estimates would cut the national debt in half. >> stockman: in 1985, the top 5% of the households, wealthiest 5%, had net worth of $8 trillion, which is a lot. today, after serial bubble after serial bubble, the top 5% have net worth of $40 trillion.
7:33 pm
>> stahl: oh, my god. >> stockman: the top 5% have gained more wealth than the whole human race had created prior to 1980. >> stahl: of course, it would never pass. there's the rub. >> stockman: there's the rub. >> stahl: the antipathy to raising taxes or making any real spending cuts, whether in washington, d.c., or washington state, is so intense, stockman despairs that, when congress returns after the election, they'll do what they often do-- nothing. i remember that great expression, "let's kick the can down the road." >> stockman: yes. >> stahl: that became kind of the mantra. >> stockman: yeah, and it still is today. >> stahl: "just kick it down the road. we'll... we'll solve it tomorrow." >> stockman: kicking the can down the road, except it's no longer a can. it's a giant junkyard. on the road.
7:34 pm
for more news and scores log on to ♪ so why would you let something like erectile dysfunction get in your way? isn't it time you talked to your doctor about viagra? 20 million men already have. ♪ with every age comes responsibility. ask your doctor if your heart is healthy enough for sex. do not take viagra if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. side effects may include headache, flushing, upset stomach, and abnormal vision.
7:35 pm
to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. stop taking viagra and call your doctor right away if you experience a sudden decrease or loss in vision or hearing. this is the age of taking action. viagra. talk to your doctor. see if america's most prescribed ed treatment is right for you. ♪ ♪ ♪ ♪ [ male announcer ] at&t covers 97% of all americans. rethink possible. excuse me, what is that? oh, i'm a fidelity customer. okay, but what does it do? well, it gets me the tools and research i need
7:36 pm
to help me make informed decisions. with fidelity, i can invest in stocks, bonds, all at a great price. wow. yeah, wow. ♪ [ male announcer ] fidelity investments. turn here. [ male announcer ] fidelity investments.
7:37 pm
our state is in a real mess. and i'm not going to give you any phony plans or snappy slogans that don't go anywhere. we have to make some tough decisions. we have to live within our means. we have got to take the power from the state capitol and move it down to the local level, closer to the people. and no new taxes, without voter approval. we have got to pull together not as republicans or as democrats but as californians first.
7:38 pm
at this stage in my life, i'm prepared to do exactly that. >> simon: next saturday, she could become the first great american athlete to retire undefeated in more than half a century, since rocky marciano stepped down from the ring. her name is zenyatta. she's six years old and she is a thoroughbred. she has run in 19 races; she has won 19 races. now, she's going for number 20 at what many believe is the most prestigious competition of the year-- the breeders' cup classic. some of the best horses from around the world will be running at churchill downs, and they're all males, except for zenyatta. at the age of six, she will also be the oldest horse in the race. the stakes are extremely high,
7:39 pm
and not just in millions of dollars. zenyatta is so adored by horse lovers that if she doesn't beat the boys and win one last time, hearts will be broken everywhere. it would be babe ruth striking out in his last at-bat. her life story can be told in one line-- she does not know how to lose. but the first thing we noticed about zenyatta was not her might, but her magnificence. she is, quite simply, the most splendid creature we'd ever seen. she's big for a mare, taller than most of the boys in the stable and very calm. thoroughbreds are supposed to be high strung and hot blooded, but there's something zen about zenyatta. she loves kids and welcomes strangers, particularly when they come bearing gifts. when she hits the track, though, there is a personality change you can barely believe.
7:40 pm
she becomes obsessed, it seems, with showing the boys that she is faster and tougher than any one of them. she drives people into fits of frenzy. this was last year's breeders' cup. >> zenyatta has come to the outside. zenyatta coming flying on the grandstand side. gio ponti on the inside. summer bird is right there. this is unbelievable. zenyatta! >> simon: her hall of fame jockey, mike smith, has won all the races in the triple crown, and nearly 5,000 more. how does zenyatta compare to the other horses you've been on who won these championship races? >> mike smith: she means more to me than all those. >> simon: and can you explain why? >> smith: she's just who she is. she's zenyatta. she's incredible. she's unbeaten. she's done everything that we've ever asked of her. >> simon: will history be made next week? >> smith: she's ready. i'll be ready. and she's ready. and like i said before, given the opportunity, i think we could see something incredible.
7:41 pm
>> simon: where does she live? where else? hollywood. and at more than 1,200 pounds, she's the biggest star in town. the camera loves her and she loves the camera. before every race, she poses and struts and does a little dance. but once on the track, she's a ferrari racing against a pack of volvos. >> vic stauffer: she's got a chance to gun the boat down, and here she comes. >> simon: track announcer vic stauffer has called zenyatta's races from the very start, which is when she was just another horse. >> stauffer: and the bad start has zenyatta at the back of the pack. >> simon: that's where zenyatta has always started-- in the back, lingering languidly as if she's on a sunday outing. but then, she turns up the juice and slams into high gear. >> stauffer: zenyatta runs up outside of her and draws within a length of the lead. >> simon: vic stauffer realized early on that this was one fast girl with a hell of a future. >> stauffer: here's a future superstar. zenyatta.
7:42 pm
wow. and that's when you knew you were really looking at something very special. >> simon: she always comes from behind. you ever go a little bit crazy when she's way behind? >> stauffer: again, yeah, because i've become a fan and i've rooted for her. but that's just all part of the theater of her. she passes them all, and i have a feeling that if there were ten more in front of her, she'd just pass them. >> smith: i think that's what keeps her... keeps her sound and keeps her happy is that she only does what she has to do. >> simon: so, you might not have been on her at her fastest yet? >> smith: i truly don't believe i have. i've always... in every race that i've ridden her in, i've always felt that there was another gear if i needed it. >> simon: maybe saturday? >> smith: i think we're gonna see something really special. >> $40,000; $45,000... >> simon: but her beginnings did not seem special at all. the only thing remarkable about her was her price. she was bought at an auction when she was one year old for only $60,000. john shirreffs has been her
7:43 pm
trainer ever since. >> john shirreffs: we were just really blessed and fortunate. >> simon: how'd you get her so cheap? >> shirreffs: well, i... i think, because she had skin disease-- she had a form of ringworm-- so she wasn't particularly attractive at the sale. >> simon: she had a rash? >> shirreffs: had a rash, yeah. >> simon: so, it's been from rash to riches? >> shirreffs: ( laughs ) yeah. yeah. >> simon: i don't quite believe i said that. under john shirreffs' tutelage, zenyatta has won more than $6 million. but she was a late starter, not ready and too immature, shirreffs thought, to run in the big races when she was a little kid. when she was three years old, why didn't you race her in the kentucky derby? >> shirreffs: you know, she wasn't... as a three year old, she... she wasn't ready to race. you know, it took her a long time to... to mature in... into the horse she is now. and we just had to be patient with her. >> simon: shirreffs gave zenyatta time to grow up, and he insisted on doing it at his own pace, without ever losing his
7:44 pm
temper. he thinks horses know when people are tense, and they don't like it. we spent nearly a week with zenyatta and, for a celebrity of her stature, we had unusual access. we could watch her beauty treatments in the morning, the bandaging of her legs in the afternoon. we hung out with her on the lawn, which was planted just for her. >> ann moss: that's what's so amazing about her. she chooses to be gentle all the time. >> simon: zenyatta's owners, ann and jerry moss, who made their fortune in the music business, know how to pamper their starlet. >> jerry moss: she's touched and handled by 14... oh, at least 14 people a day. >> simon: she's touched by 14 people a day? >> jerry moss: over 14... >> ann moss: yeah. >> jerry moss: yes. at least 14 people a day. >> simon: and there's somebody with her 24 hours a day? >> jerry moss: yes. >> ann moss: yes. >> simon: pretty cozy? >> ann moss: it is. >> simon: but the training on the track is regimented and rigorous. five days a week, john shirreffs has zenyatta run at a moderately slow pace.
7:45 pm
she doesn't like slow, so her exercise rider has to use all his strength to hold her back. then, once a week, she's let loose. but even now, mike smith says, she's not nearly at full throttle. what does it feel like being on her? >> smith: you know, there's just so much power. she's so athletic for such a big, big horse, which is just amazing. >> simon: how does it feel when she starts her surge? >> smith: it's pretty amazing, because within a matter of two or three jumps, she can make up close to ten lengths. >> simon: it's even more stunning from the jockey's perspective, as you can see from these pictures taken by a camera mike smith agreed to wear on his helmet. >> smith: it's just... it's wild. it's mind-boggling, too. >> simon: now, who decides when she starts the surge? is it you? or is it her? >> smith: it's me, most of the time. but it's also her, at times. she's like a loaded gun. >> simon: really? >> smith: when you pull the trigger, i mean, it's... she's going to fire.
7:46 pm
>> simon: and every day, after the workout, it's lunch time. >> simon: here's a question i think trainers all over the world will want to hear your answer to. what do you feed her? >> shirreffs: well, you know, we give her oats and hay. >> simon: come on. come on, you don't expect people to believe that. >> shirreffs: well, okay, so we... we add a little bit of aloe vera juice, right. we give her aloe vera juice, because it's good for their stomachs. and then, if she's been really good, i could pop open a guinness and she could have a beer in the afternoon. >> simon: you give her a beer? >> shirreffs: yeah. >> simon: and she likes it? >> shirreffs: yes. yeah. >> simon: just one? >> shirreffs: usually just one. >> simon: i wonder how she'd react if you gave her a different beer. >> shirreffs: i've tried that. >> simon: really? >> shirreffs: yeah. and guinness is very expensive. she won't do it, you know. >> simon: talk about a high- class horse. >> shirreffs: yeah. yeah, she just won't... she won't accept it.
7:47 pm
you know, it's got to be the stout. >> simon: and that's perfectly okay, because john shirreffs is happy to let her be a prima donna. when she's playing to the crowd, how do you see it? what physical manifestation is there? >> shirreffs: well, she gets very bright, you know. she... she puffs herself up. you know, she looks very strong and her... and her eyes seem to, you know, stick out a little bit. and... and she's just really bright and alert. her ears are extremely... you know, her ears are like this. she's just listening for anything-- "look over here, look over there." you know, she's just... she's really into it. she's... her whole focus is on what's going on around her. >> simon: you really think that when she's prancing before the crowd, sticking her ears up, you really think she knows what she's doing? >> shirreffs: absolutely. yeah. there's no doubt about it. yeah. >> simon: this is hollywood. >> shirreffs: there's no doubt about it. no, she's... she's just... she just feeds off of it.
7:48 pm
>> simon: and the magazines feed off of her. zenyatta is profiled this month in "w" magazine. oprah calls her "one of 20 women rocking the world." the editors didn't try to interview zenyatta, but john shirreffs says he talks to horses all the time. >> shirreffs: horses are very special. you can talk to them, you can work out your problems with them. >> simon: how do you communicate? what do you communicate with zenyatta? >> shirreffs: yeah, well, i... you know, when you look up into her face and look in her eyes, and... and you just say, you know, "you're doing great. you're the best ever. thank you for everything you've given me." and you just see that really kind look. you know, you have a feeling that she's actually understanding you. >> simon: maybe she is. >> shirreffs: yeah, yeah. you have to believe it, don't you? >> simon: the breeders' cup is the richest race in the country. if zenyatta wins saturday, for the second year in a row, she'll
7:49 pm
take home another $3 million. and that's not all-- this $60,000 filly will be lifted into another sphere. >> smith: i think she could arguably go down as one of the greatest, if not the greatest horse of all time. >> simon: the greatest horse of all time. >> smith: definitely. >> simon: better than secretariat. >> smith: well, if we can pull it off, she's never been beaten. so how can you argue with perfection, you know? >> simon: she'll be the oldest horse in saturday's race. and when she goes into the final stretch and crosses that wire, the curtain will fall and there will be no encores. she's going to have a good life after this-- green pastures, motherhood. >> smith: yeah. they often talk about who they'd breed her to, and i've always said no one's worthy. >> simon: no man is worthy of... >> smith: no. >> simon: ...zenyatta. >> smith: no. not at all. not even close. >> simon: win or lose, zenyatta will retire after saturday's
7:50 pm
race, one more indication of how much wiser she is than so many other hollywood celebrities. she'll leave the game while she's still in her prime, before her star begins to wane. but one can't stop wondering, when she's in her green and peaceful pastures, whether she'll miss all this? the tumult of the track, the clamor of the crowd. >> zenyatta, on the outside, is coming. it's switch and zenyatta. and here's zenyatta. she's flawless. she's never lost. she's a perfect 19 for 19. [ male announcer ] it's simple physics... a body at rest tends to stay at rest... while a body in motion tends to stay in motion. staying active can actually ease arthritis symptoms. but if you have arthritis,
7:51 pm
staying active can be difficult. prescription celebrex can help relieve arthritis pain so your body can stay in motion. because just one 200mg celebrex a day can provide 24 hour relief for many with arthritis pain and inflammation. plus, in clinical studies, celebrex is proven to improve daily physical function so moving is easier. and celebrex is not a narcotic. when it comes to relieving your arthritis pain, you and your doctor need to balance the benefits with the risks. all prescription nsaids, including celebrex, may increase the chance of heart attack or stroke, which can lead to death. this chance increases if you have heart disease or risk factors such as high blood pressure or when nsaids are taken for long periods. nsaids, including celebrex, increase the chance of serious skin or allergic reactions or stomach and intestine problems, such as bleeding and ulcers, which can occur without warning and may cause death. patients also taking aspirin and the elderly are at increased risk for stomach bleeding and ulcers. do not take celebrex if you've had an asthma attack, hives, or other allergies to aspirin, nsaids or sulfonamides.
7:52 pm
get help right away if you have swelling of the face or throat, or trouble breathing. tell your doctor about your medical history and find an arthritis treatment that works for you. ask your doctor about celebrex. and, go to to learn more about how you can move toward relief. celebrex. for a body in motion. since our beginning, we've been there for clients through good times and bad, when our clients' needs changed we changed to meet them. through the years, when some lost their way, we led the way with new ideas for the financial challenges we knew would lie ahead. this rock has never stood still. and there's one thing that will never change. we are, the rock you can rely on. prudential.
7:53 pm
7:54 pm
after another. and another. just a dishonest politician, trying to hide his record of failure. the real brown plan? more spending on out-of-control state pensions. more favors for the big teachers union, blocking education reform. more job-killing taxes and regulations. more of the same old failure from sacramento. job killer jerry brown. always more taxes, more spending, and more lost jobs. always more taxes, more spending, "abolish the public schools." he even called our schools "insidious" and "socialism." as families struggle to raise their kids, to provide a good education, harmer bragged, "we can design a plan to dismantle them." david harmer is just too radical. we need jerry mcnerney. protecting local schools from devastating cuts. endorsed for his "independence" by the contra costa times, stockton record, and our local teachers.
7:55 pm
i'm jerry mcnerney, and i approved this message. >> pelley: speaking of racehorses, our resident handicapper andy rooney remembers some past glory. >> rooney: i go to the movies about as often as i go to the horse races, maybe once a year. i saw the movie "secretariat" the other night. they had great pictures of the real horse and i loved it. it was unusual, because you're often disappointed with the way anything or anyone you know is portrayed in a movie. the pictures of secretariat were not disappointing. he looked like the great horse he really was. i'm one of the few people who ever saw secretariat beaten, too. it was at saratoga after he won the triple crown. i'm not a big horse race fan, and i couldn't care less about
7:56 pm
most races, but my parents grew up near the saratoga race track and i've gone there about once a year all my life. i saw whirlaway, jim dandy, man o'war, war admiral, seattle slew, citation, dr. fager, and secretariat. i've seen most of the great horses of the past run at saratoga. my parents were born and grew up in ballston spa, just a few miles from there in upstate new york. i don't usually care much who wins a horse race, but secretariat was special to watch. he was big, reddish brown and took huge, strides, as i recall, and i was always rooting for him. the trouble with any horse racing film is that it's never about either the horses or the races. the film has to be fattened up with a story, and the story doesn't usually ring true. a movie about a race horse isn't a substitute for actually being at the race track and watching
7:57 pm
the horse run, but this movie comes close. >> pelley: finally tonight, we remember our friend jimmy wall. he was our stage manager who cued us with a booming voice. and we wanted to hear it just one more time. >> quiet folks. >> pelley: jimmy worked in this studio until last year. he died last week at the age of 92. i'm scott pelley. we'll be back next week with another edition of "60 minutes." captioning funded by cbs, and ford-- built for the road ahead. captioned by media access group at wgbh ♪ [ man ] i thought our family business would always be boots.
7:58 pm
until one day, my daughter showed me a designer handbag. and like that, we had a new side to our business. [ male announcer ] when businesses see an opportunity, the hartford is there. protecting their employees and property and helping them prepare for the future. nice boots. nice bag. [ male announcer ] see how the hartford helps businesses at
7:59 pm
riding the dog like it's a small horse is frowned upon in this establishment! luckily though, ya know, i conceal this bad boy underneath my blanket just so i can get on e-trade. check my investment portfolio, research stocks... wait, why are you taking... oh, i see...solitary. just a man and his thoughts. and a smartphone... with an e-trade app. ♪ nobody knows... [ male announcer ] e-trade. investing unleashed. please stand by.


info Stream Only

Uploaded by TV Archive on