(CNN Student News) -- April 15, 2010
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CARL AZUZ, CNN STUDENT NEWS ANCHOR: We are smack dab in the middle of Financial Literacy Month; we definitely have that topic covered in today's show. I'm Carl Azuz. This is CNN Student News.
AZUZ: First up, Chinese leaders are ordering local authorities to "go all out" in their efforts to save victims of a massive earthquake. It hit early Wednesday morning in China's Qinghai province. The main quake had a magnitude of 6.9. It was followed within hours by several strong aftershocks. The impact is devastating. More than 580 people were killed. At least 10,000 others were injured. Local news reports said the quake destroyed houses, damaged roads, triggered landslides. This isn't the only powerful earthquake we've talked about this year. Others struck in Haiti, Chile, Mexico, now China. Chad Myers gives us more insight on how often these kinds of quakes happen and what their magnitude really means.
CHAD MYERS, CNN WEATHER ANCHOR: If you take the numbers between 6.0 and 6.9, in an average year, there are 130 earthquakes that size. 130. This is not uncommon. But, now if you go from 7.0, which this almost is at 6.9, to 7.9, there are only 17 per year. So, you gotta think about this. This is a pretty big shake.
And something else that happens: People don't understand where these numbers come from. If you get a violent shake times a very small area that shakes, that could equal 6.9, or any other number. If you get a very small shaking but a very large area, like the entire San Andreas fault line, hundreds of miles long, that could also equal 6.9. But all you've done with this is break dishes. What you've done here is kill people.
This is the multiplication that people don't understand. Shake times size of shaking equals a number, where shake, little shake, times very big area can equal that same number. And so, putting that 6.9 in perspective, this shaking area here was very small, so, the shaking to get to 6.9 had to be very violent.
MATT CHERRY, CNN STUDENT NEWS: Here's the deal: Today's Money Word is tax. It's money that is paid to a government. Income tax, for example, is a tax on money earned by a company or person. Put that in your word bank.
AZUZ: The power to collect those income taxes is right there in the U.S. Constitution: Amendment 16. The due date to get them in is today. But April 15th hasn't always been the deadline. Originally, it was March 1st. Then it was changed to March 15th. The move to April 15th happened in 1955. Oh my goodness. Why all the movement? Two reasons. One: It helped spread out the workload for the government. Two: It allowed the government more time to hold onto money that it has to pay out for tax refunds.
When people pay their taxes to the government, it uses that money to pay for services and projects. But some people aren't happy with how the government spends that money. And at protests like this one, they're speaking out about it. The Tea Party -- Tea standing for taxed enough already -- popped up last year, as people got upset about what they saw as overspending by the government. The Tea Party Express has been holding rallies across the U.S. leading up to today's Tax Day protest in Washington, D.C. This is the Express's third cross-country tour. It's called the "Just Vote Them Out" tour. Opinions are mixed on how effective the Tea Party's efforts are, but at least one congressional leader says the protests are having a real impact on some lawmakers' decisions about running for re-election.
AZUZ: Next up, foreclosure. You've probably heard the word. You might know someone who is going through it. It basically means losing your home. Specifically, it's what happens when a lender, like a bank, takes over a property because the homeowner can't keep up on payments. President Obama has launched a program to help people avoid foreclosure. But according to a new report, the program can't keep up. A congressional oversight panel, which put out the report, says that for every family that avoided foreclosure, another 10 families lost their homes. The Treasury Department pointed out that while it isn't designed to help everyone, the program will help hundreds of thousands of people keep their homes.
AZUZ: Foreclosures are just part of the financial crisis that led the government to spend billions of dollars to save some of the nation's largest banks. The question lawmakers are facing now: how to stop it from happening again. Yesterday, President Obama met with Democratic and Republican leaders about a financial reform bill that would try to prevent another collapse. When that meeting ended, the two parties did not see eye-to-eye. One Republican Senator said the Democrats' plan "is clearly the wrong way to go," and would lead to more bailouts. Democrats argue those statements are completely false. President Obama says more needs to be done to help the U.S. economy, although there are signs that things are getting better.
Dow above 11,000
AZUZ: And one of those signs is known as the Dow Jones Industrial Average. It is up. The Dow measures the stock prices of several important companies. Yesterday, it closed at over 11,000. It was the highest level the Dow has hit since September of 2008! That is a good sign for the economy. But Federal Reserve Chairman Ben Bernanke told Congress yesterday that it's going to be some time before we see significant growth in jobs.
AZUZ: Teachers, you want a little help in explaining economic concepts? We have a financial glossary, and it is money in the bank. Foreclosure, taxes, the Dow Jones Industrial Average. The topics we've been talking about today, plus dozens more. They're broken down into categories, and of course they are completely free. You'll find this awesome resource in the Spotlight section at CNNStudentNews.com.
Is this Legit?
TOMEKA JONES, CNN STUDENT NEWS: Is this legit? More college students receive athletic scholarships than academic ones. False! Around 125,000 students get athletic scholarships each year, according to the NCAA, but more than a million students get academic scholarships.
AZUZ: If you're a little surprised by that statistic, it is understandable. Athletics often get a lot more attention. College sports are on TV all the time, but when have you ever seen a chemistry class on the air? The secretary of education is pushing for schools to find a better balance between academics and athletics. But not everyone thinks his way is the best way, as Gary Tuchman tells us.
GARY TUCHMAN, CNN NATIONAL CORRESPONDENT: The U.S. Secretary of Education has issued a first-of-its-kind challenge to collegiate athletic teams.
ARNE DUNCAN, UNITED STATES SECRETARY OF EDUCATION: I think I have an obligation to challenge the status quo. I'm going to continue to do that.
TUCHMAN: Arne Duncan says if a college fails to graduate 40 percent of its athletes based on its teams from past years, the current team should be banned from post-season tournaments.
DUNCAN: If universities can't graduate two out of five of the student athletes, how serious are they about their core mission?
TUCHMAN: The NCAA would have to approve it, but if Secretary Duncan's proposal is enacted, 12 of the 65 teams in this year's NCAA basketball tournament would have been under that 40 percent level and therefore not allowed to play in the tournament. But then, there are schools like Butler University.
UNIDENTIFIED FEMALE: We're actually going to head inside and see Clews Hall right now. We actually had Madeleine Albright come.
TUCHMAN: The small Indianapolis campus was the proud home of a team that made it all the way to the NCAA championship game before losing to Duke, and like Duke, has a very high graduation rate.
DR. BOBBY FONG, PRESIDENT, BUTLER UNIVERSITY: It confirms for me that it is possible to achieve athletic excellence and academic excellence at the same time.
TUCHMAN: Dr. Bobby Fong is the president of Butler.
FONG: The men's basketball team practices at 6:30 in the morning. That's the time when all of them have free from class.
TUCHMAN: We talked to one of the team's stars, Willie Veasley, as he got ready for Final Four weekend.
WILLIE VEASLEY, STUDENT ATHLETE, BUTLER UNIVERSITY: I know that we've got the whole Final Four stuff going on, but I think coach is more worried about our grades and stuff and making sure that we're taking care of that stuff with all this stuff going on.
TUCHMAN: So, what does the NCAA think about Secretary Duncan's proposal? Will the organization jump through hoops to get this done? Doesn't look that way. In a statement, the NCAA declared, "We share Secretary of Education Arne Duncan's concern. However, imposing a ban on teams for the academic performance of student athletes who entered as freshmen 8 to 11 years ago, is probably not the best course of action. Basing post-season bans on graduation rates penalizes the wrong students."
The NCAA currently uses a complex point system to ban teams from post-season play, but it's much harder to get kicked out. Many colleges think it's the fairest system. As for the president of Butler...
FONG: I didn't think the NCAA would go for it, but I would be in support of it.
TUCHMAN: He's all for the tougher system. Gary Tuchman, CNN, Indianapolis.
Before We Go
AZUZ: Now, before we go today, we are heading into prom season; that means lots of talk about dresses. These gowns are made by a select group of designers: students! It's a program in Las Vegas called Fashion Forward. High school students make the dresses from scratch and then they donate them to classmates who can't afford new outfits for prom.
AZUZ: I guess you could say it's sew cool. It seams like a great idea. And it makes this show com-pleat. Our "Before We Go" puns, designed to leave you in stitches. For CNN Student News, I'm Carl Azuz.