chlie, there are lot of health-ce cost changese can make without havin universal heth care. and why is that thease? because politically, we become a countryhaven't we, where sacrifice is politically terminal. where askingeople to give upsomething. and we with aren' going to soe the health-care st oblem if we're overprescribing and overopering without us giving up some -- some treatmen that may have me benefit. but what does thatarise? the questionis rationing well, what on earth is no rationed? this wor? >> so how wou you go about rationing health care? well, for example, we ought to have a health care budget. ifou have a budget what does that result ? d you're not going to spend more tn this, is the people running t program have todecide where they're going to put the money. yoremember what happened wi oregonin the early bush one administration? they we going broke becaus medicaid, you know, consumes a largeart of the of the budget and t states have half of i those ne people listed 715 diagnostic related groups which is the rean you go to hospitals. and theyisted them. and

captioni sponsored by rose communications om our studios in new york city, this is chlie rose. snooup brilgt lacombis here. she is o of the most respected photraphers working today. early her life she leftchool work at "elle" magazine's photogray laboratory in paris a chan meeting with dustin offman at the cans film festival in 1975 led to his behind the scenes work on his fi "all the psident's men." ny films foowed incding "close encounters of the third kind" d "the english patie." in her 30-year carr, she has photographed everyonfrom henry kiss sdwror natalie partman to the dalai lama. this diverty in subject is to capture the essence ofer subjt. he's a look and listen to four of her friendswh veo'ols a who'e the bject over the years. >> this is a very unusual photograph for me toake beuse i am looking in the camera. i really do hate having a still picturtaken but i love digit and that is a... this cture is a reflection o ourriendship. in aust of 2001 we did a production of "th seagu in central park." it w a deliriously happy summer, clearly reflected in this picture. was the

we thi the -- >> chlie: don't sensor yourself. n't edit yourself. >> i getting angry e-mail ever time bring this up. this is really risk management. we don't know how bad the income anequality is going toet. it cld get better, could get worse. it's a risk. let's put in a system tt nages the risk. th proposa we have is to index th tax system for inequality. so that, the plan is in the fure, if inequality gets wse weutomatically raise tas on thewealthy. 's not -- obama --congress are talki about taxingtaxing the rich toay for the -- >> charlie: healthcare. >> health car that sounds so logical. but afte the fact, you try to do that, it createsit call problems. we havto plan r the next dede. let's write in to the law now that that's going to happen. my son is now a phd student i philosophy. it's my son, my next generation will carry a more etherl level. for me think of myself as humblengineer. who has -- fincial engeer. i'm awe of a technolog of riskanagement. i'also aware of a technology of social sciences. psyclogy, sociology, we me

. >> chlie: the ne is jeta water". >> here i think bacon taken on all the action painters. also i think pretty explicit atement about oasms here. making aort of joke out the gesture. we alsknow it was ver hard for him to paint this. in order to ge this splashf war to work -- >> charlie: how d he do it? he did it justas you might imagine by flinging the pai. but it took ls of tries. this goeto his own practe of usg accident and trying to make the most of it. he ao know that with is painting there w -- that he had photograph of a still of a film "blood of a poet" wre there was a chair flying in a room. a palef water that w caught in stop-action photography. this ain is another -- this is whats so extraordinar now f artist, is that we he access tois archives to, bacon, to th stuo, where everything since 13 has beeniled up in this extraordinary archaeological layering. >> charlie: the next is "portrt of john edwards." who was john edwards? >> johnedwards wasacon's last great me. heet him in '73 or'74 right aftegeorge dyer's death. he was an east ender like george. he was ill il

. >> chlie: that was to inve or stimulate the econo in order to deal with it. >> under certain conditio, such we're inow, such as we were in in the 1930's. monetary polic alone, lowing inrest rates, raising money supply would not be sufficient to induce thinvestment in the prive sector so the gornment d to make direct investnt itlfn order to create js. at was the number one insit. and i think it was as valid todayas it was there. that's why last time we spoke inrmally, i was crical of the stimus package because i thought the origin stimulus package because i thought it madeoo many concessions t congressional potics in the sense that i was halfax abatement anonly about half direct creation. i think we needore creation and we nd it soon. >> charlie: how should we do it. >> i have a way of doing it that nobodyeems to like. agn, congressional polits. the simple way to sta and get the ecomy moving is to take not shovel-rdy projects that will in tth nd six months t get movg, take the prects that are already being funded by state and local governments. the's a school being built ght on my blo.

captioningponsored by se communications om our studios in new york city, this is chlie rose. >> rose: we begin tonit with afghanistan and the queson of strategy. at should be our strategy there? or, as some say, should we be there at all if things don wo out? secretary of dense robert gates recently marked nex summer as a possle cuto point r prress. he said "afr theraqi experience, noby's prepad to have a long slog. others ha asked whether afghanistan isvital to our national secity interests. "new york times"olumnist in tom freean visitin the region recently asked ination building in afghanistanis really a goodse of amerin power. meanwhile, the ongng.s.-led offeive into the helmand province has led to spike in coalition sualties. july will be the deadliesmonth for u.s. and britishroops nce the vasion in twaun. the top commanr on the ground, general staey mccryst has maderotectingfghan civilians a key compone of his emergin strategy. 's expected to comple a 60-day assessment of the war before the e of august. joining from washington i andrew exum of the center for a new american securi

captiong sponsored by rose communications fr our studios in new york city, this is chlie rose. >> rose: the senate judiary committee ben its confirmation hearings of supreme court nominee nia sotomayor this morning. sotomayor, a federal appeals court jue, is the fir hispanic nominat tothe court and ly the third woman. in her oning statement, she spoke of her background an how she viewed the pror role of a judge. >> the pgression of my life has been uniquely american. my parents left puerto rico duringorldar ii. i grew u in modest circumstancein aronx housing project. my father, a factory wker with a third grade education, passed away when i was ne years old. on her owny mother raise mid-brotheand me. she taught us that the key to success in america is a good education. and she set the example, studying alongsid my brother and me at our kitchen table so that she could become a registed nurse. in the past mon, many senators have aed me about my judicial philosophy. simple: fidelity to the w. the task of a judge isot to ke law, it is to apply the la and it is clear, i belve, that my recor

sh campaigns arou the country, couple guys ke chlie crist win anay, tom corbin wins in pennsylvania.or them, and the she claims picked u 23 seat inhe united states cgress. >> youdo this -- nixon, we went to 80 congressional dirgets, 35 states. what she does is campaign al over the country f these s, read and study as s's doing this -- >> pick nners. >> bi speeches ere she makes a febucks to pay off these debts and take a look and see if she wants to go for thatear in iowa and new hashire and whether e's up to doing tt wi the famdifficulties -- >>ut in the meantime she scores some victories. you got to gi her cdit,this is her pn. will it work? >> she can ra up a bun -- she hangs out with whitma she might win. hangs o wh tombin he probably wince four or five winners and she's part of eam. >> if yore meg whitman and you want to be governoof california, do you say sarah palin come on, campaign with me. >> the inlnd counties. thank you pat buchanan. we'll be right ck. >> inland empire. >> we agree it' '66. route 66 for sah palin. up next, h hard will the reblicans grill sonia sotomayor wh

captiong sponsored by rose communications om our studios in new york city, this is chlie rose. >> ros the mission in iraq is shifting from a military role to a civilian role. last month u.s. combat troops withdrew fromraqi cities. all u.s. forces e expected to leave the countryy the end of 2011. ahigh-profile bombing that raised questions about the reiness of theraqi security forc and the government of prime minister maliki is und pressure to pass the hydrocarbon law and speedp its national recoiliation process. joining me now from washington is ambasdor christopher hill. the new u.s. ambassador to iraq. he'sthe secretary of state and the lead negotiator in the space walks to end nth korea's clear program. i pleased to have him backon this broadcast, the first time since he wt to baghda thank you for joing us. >> thank you. >> rose: so tl me how this is working out, the withdrawal of american troops tohese bases outsidof baghdad. >> first o all, i think it's working pretty well. this is on the bis of a security agreeme that was rehed in the ladr part of lastear with the bush administr

by the italians is th some of these neurons, about a third of them, wi fire even if somedy touches chlie and i'm simy wahing, those arempathy neurons so they're saying, charlie is bei touched. i out to empathize with charlie so i will fe the touch myself. i el th empathybut i don't litelly feel the tou. the qution is why do i not literally feel it? i empathize, i know that you are being touched, i know what it feels like to be touche i do a virtua reality of my brn of your brain but it doesn'teel like somody is touching me. that's because my hand, my skin receptors are telling t brain, "look, buddy, you're not being toucd, don't worry. charlie is being touched. you can emphize by all means but n't worry. you're not ing touched." >> charlie: where does that ke us? >> i coming to it if you remove the a that signal doesn't ce through and i start feeling your touch sensions. here is great medic mystery and you solve it by looking at urons in the brain. the advantage is, if somebod comes in and massages you, charlie, i feel a massagen my phtom and the pain in the phantostarts fading and disap

this isn't about m not about obama, not about bcus, not about chlie rose, it'sot abouanything els othert is best forpeople over time. anit will probably be the ople behind that we've got to do thisfor. because i n't think we'll get this done the xt two or the years. but we'll never get it do if we don't cle vision of where we wanto be in five, sen, or ten yes. >> rose: so we've got to start redesigning the system today >> that's at i'masking for and recognizing can onlyite off certain chus at a time. and i recognize that. but i' looking for.... >> rose: so what don'te bite off w? >> no, what i'm saying is w bite o int insuranceor everybody now. let's get goinwith that. that's wt we're doing. rit now say wee going to go for high valu care. if t government d just those two things, the delivery system over time will begin to self-organiz become aearning ganization where people are interacting with each other whether it's locally, regiolly or nationally. there are exales of national networks thaare building up right now. patrick wn shone has developed one in connectivity that could be a hug