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Life & Times Transcript
08/16/05 Val Zavala>> Tonight on Life and Times --They're the dirty little secrets of the gambling industry, problem gamblers who bet everything that their luck is about to change. "Rob">> I can't even describe it. I've actually fallen to the floor from losing my last dollar and saying how could this possibly have happened? I've actually collapsed. Val Zavala>> And then, a different kind of Mexican restaurant where former gang girls have discovered the recipe for change. It's all straight ahead on tonight's Life and Times. Life and Times is made possible through the generous support of the L.K. Whittier Foundation dedicated to improving the quality of life by supporting innovative endeavors in the fields of medicine, health, science and education. And by a generous grant from Jim and Anne Rothenberg. Val Zavala>> Americans spend more on gambling than they do on movies, music, books and video games combined. An estimated six to ten million Americans could be gambling addicts and now there are more places to gamble than ever before. So do we have an obligation to help these people overcome their compulsion? NewsHour correspondent, Jeffrey Kaye, met one man who admits to becoming a gambling addict. Jeffrey Kaye>> For gambling addicts, betting can be as destructive as any drug or alcohol habit. "Rob">> I can't even describe it. I've actually fallen to the floor from losing my last dollar and saying how could this possibly have happened? I've actually collapsed. Jeffrey Kaye>> "Rob", who wishes to remain anonymous, is a compulsive gambler. He told producer, Saul Gonzalez, about the toll his habit has taken on his life and finances. Saul Gonzalez>> Approximately how much money do you think you've lost over the years? "Rob">> Probably close to two hundred thousand dollars and financially I've also gone through a bankruptcy, tried to recover from that, but I'm back in debt again. Credit cards, cash. I don't borrow money from people. I use my own money, so if I'm going to self-destruct, it's on my own terms. You know, instead of having a wife and a house, I have a big problem in some debt. Suzanne Graupner Pike>> Gambling has nothing to do with money. It has to do with the way it makes you feel. Jeffrey Kaye>> Psychologist, Suzanne Graupner Pike, runs a center for gambling addiction. She says there are two kinds of compulsive gamblers, those who thrive on the adrenalin rush that comes with chasing Lady Luck -- clinicians call them action gamblers -- and there are escape gamblers. Suzanne Graupner Pike>> It's like it's another world altogether if you've ever gone to the casino and seen these people are totally zoned out. I mean, you know, totally zoned out. They are hooked up to a morphine drip and these are the people who tend to play the slot machines and they are after -- they want oblivion. They just want to zone out. Jeffrey Kaye>> Many counselors say that it's a sure bet problem gambling will mushroom as new casinos open, state lotteries grow and online gambling sites multiply. That's the view of Bruce Roberts, Director of the California Council on Problem Gambling. Bruce Roberts>> If you bring a bottle of liquor into an alcoholic's home, it's going to be a lot tougher for him to say no. So if you build a casino where there's people around, chances are that more of those people who are predisposed to the problem are going to have a hard time saying I don't want to play tonight. "Rob">> You have people that are being introduced to gambling for the first time so it's so accessible and these people have families, they have children, and whatever damage they do is not only going to affect themselves, but it's probably going to tear apart their families. Jeffrey Kaye>> Gambling addicts provide an important profit source to the industry. A 1998 University of Chicago study concluded that five to fifteen percent of gambling revenue came from problem and pathological gamblers. Pike and other critics argue that the industry enables problem gamblers, particularly among the elderly, by offering such services as complimentary transportation to casinos. At this San Diego parking lot, every half hour buses shuttle customers to an Indian casino thirty minutes away. Suzanne Graupner Pike>> They market to seniors who are lonely, so they can target them with a little lunch and a free trip and very quickly exhaust a person's total retirement fund. I've seen that done. "Pam">> You just take what you can afford to lose. If you take more than that, then you're a fool. Jeffrey Kaye>> Pam, who didn't want her last named used, is a regular on the bus. She says, for her, gambling isn't a problem, but she understands its allure for retirees. "Pam">> It's excitement, you know. Am I going to win? Am I not going to win? It's excitement and, if you win, you come home with a smile on your face and, if you lose, I'm not going to tell you the rest. Jeffrey Kaye>> Gambling industry representatives say they're concerned about addiction, but they argue that their business deals out more benefits than problems. Benefits such as jobs creation and the payout of millions of dollars in tax revenues. Anthony Miranda>> I think across the United States you're seeing that people are more comfortable with the gaming industry than they were, you know, fifteen, twenty or thirty years ago. Jeffrey Kaye>> Anthony Miranda chairs the California Indian Gaming Association. He says that Indian casinos have made once poor tribes rich and secure and he makes no apologies for their success. Anthony Miranda>> We provide for our members. We provide educationally. We provide for them. We provide for health services. We provide a school. We provide opportunities. I always like to say that we provide hope and opportunity for our tribal members. Jeffrey Kaye>> But gambling critics say the industry often uses its wealth to mute opposition to the problems it creates such as addiction. Leo McCarthy is a former California Lieutenant Governor. He's also a co-author of the 1999 National Gambling Impact study, a congressionally financed survey of gambling in America. Leo McCarthy>> Putting it as kindly as I can, many elected officials are neutralized by the volume of campaign contributions that are coming from the gambling industry, so they're muted in effect. They don't really do research required to know how many pathological gamblers there are currently in their states. They don't think they need to create a medical safety net for pathological gamblers who destroy their families. Jeffrey Kaye>> But governments themselves are also becoming addicted to gambling. In ten states, gambling revenues account for more than six percent of the budget according to a recent study from the University of Nevada Las Vegas. Although more gambling money than ever before flows into public coffers, most states offer little or no assistance to gambling addicts. In California, the highest profile response to gambling addiction in the state comes from the California Council on Problem Gambling. It helps fund a national 800 number. If you call it, you'll be sent some pamphlets about addiction and referred to Gamblers Anonymous meetings in your area. Bruce Roberts>> After that, there's not much to do because there are no treatment centers in California. There are no state funded treatment centers. That's the problem with compulsive gambling is that, when a person is ready to quit, ready to get help, there's no way he can get it on a paid basis because he's broke. Jeffrey Kaye>> Most of this office's half million dollar budget comes from the gambling industry. In exchange, it maintains a Swiss-like neutrality towards the industry. Bruce Roberts>> We as an organization don't take a stand for or against gambling. We're totally neutral and the reason we do that is because that's the way we can maintain a position where gambling interests are willing to help fund what we try to do. It's very, very important for us to maintain that position. Saul Gonzalez>> You don't want to upset or anger the gambling industry. Bruce Roberts>> You could say that, yeah. Jeffrey Kaye>> To fully appreciate government's slow response to gambling addiction, critics point to that Mecca of betting, Nevada, where revenues from gambling account for more than forty percent of the state budget. Seventy-four years after the legalization of gambling here, the silver state is now considering spending public money for the first time to tackle gambling addiction. The grand total of the response? One hundred thousand dollars a year over two years. I'm Jeffrey Kaye for Life and Times. Kcet.org is the place to look for the very latest on Life and Times. You'll find previews of upcoming stories, transcripts and audio of past episodes and links to some of our most interesting features. Just go to kcet.org and click on "Life and Times". Val Zavala>> You've heard of NAFTA. Well, now we've got its cousin, CAFTA, the Central American Free Trade Agreement. It basically allows goods to flow freely between the United States and Central America. Critics say that it will hurt jobs here and the poor in Central America, but others say that it will have a positive impact on California business. Hector Barreto is the head of the Small Business Administration. He's a former Angeleno and I talked with him about what the possible effects of CAFTA would be. First, Hector Barreto, welcome back to Los Angeles. Hector Barreto>> Thank you, Val. It's great to be back. Val Zavala>> Now you've been head of the SBA, Small Business Administration, for how long now? Hector Barreto>> Since 2001, so I'm in my fifth year now. Val Zavala>> Fifth year in Washington, D.C. You've seen a lot of issues come and go, but a big one that was just passed is CAFTA, the Central America Free Trade Agreement, which some people say is the little sister to NAFTA. Well, what does it mean for businesses especially here in Southern California? Hector Barreto>> It means a lot. A lot of times, people don't realize that ninety-seven percent of all companies that export something or import something are small businesses. In the United States, that translates to two hundred twenty-five thousand companies and those companies are doing a billion dollars worth of business every single day. But they only represent thirty percent of all of the international trade, so anything that we can do that they expand that international trade pie, if you will, to small business is a good thing. CAFTA is important for small business because thirty-eight percent of all the products in the United States that go into the Central American countries and the Dominican Republic come from small businesses, so -- Val Zavala>> -- by the way, what is the definition of small business? Hector Barreto>> Well, we have twenty-five million small businesses in the United States. It's usually a revenue-size standard of between five or six million dollars, depending on what industry, or if you're a manufacturer, it could be as many as five hundred employees. Now that covers ninety-nine percent of all businesses and most of them are much, much smaller than that. But with CAFTA, those businesses that are trading in there are going to save collectively a billion dollars in tariffs that they were paying to get into those markets. It's going to expand the agricultural businesses by one and a half billion dollars and manufacturing by another billion dollars, so those are opportunities that we would have lost if CAFTA wouldn't have passed, so we think it was very important and we're very happy that it passed. It's a win for small business. Val Zavala>> Now everything, though, has its up side and down side. A win for small business, but some people say, yes, but it's going to create hardships in Central America. NAFTA created a lot of hardship on Mexican farmers. That leads to more illegal immigration and other problems for us. Is that also going to happen with CAFTA? Hector Barreto>> You know, the presidents of Central America came to the United States and they told Congress and the President that they needed CAFTA, that one of the most important things for their economies going forward is for them to be able to expand these markets, not shrink these markets. So it was not only a win economically for us, but also for those countries. And that also has security implications. To the extent that those economies are strong and stable, there is less possibility that there will be security problems in those countries. And also it helps to support those democracies, something that is also very important. So there were a lot of implications and a lot of reasons why CAFTA will benefit both our country and those Central American countries and the Dominican Republic as well. Val Zavala>> Nevertheless, CAFTA was controversial and among those who opposed it was the Congressional Hispanic Caucus. They said that Latinos were going to be hurt and they pointed to the fact that forty-seven percent of all the people who lost their jobs because of NAFTA were Latino. Hector Barreto>> Well, you know, we respectfully disagree with our friends and the members of Congress. And a lot of folks from those countries that live in the United States were also advocating for it. Those are the people that have the most at stake and they will tell you the exact opposite is true. They will tell you that, without CAFTA, those markets are going to shrink. They will tell you that other countries would be coming in and taking advantage of them. For example, China would take it. And they would say that more of our people would lose jobs, manufacturing jobs, for example. So we respectfully disagree. Val Zavala>> The Los Angeles Times, for example, in terms of the impact of NAFTA, did an impact story on Mexican farmers. It's always the poor ones who go from extremely poor to miserably poor because they're getting competition from United States that they didn't have before. Is there anything at all to help these? I mean, the gap between the rich and poor is bad enough and many say that it's going to get worse. Hector Barreto>> One of the things that the president did right from the very beginning of his first administration was work very closely with President Fox to create an initiative called the Partnership for Prosperity. The whole basis of that initiative is to create more opportunities in Mexico in all sectors. Rural sectors, low-income sectors, small business sectors. A lot of people don't realize that the Partnership for Prosperity has had a lot of success already. For example, we've been able to lower the cost of remittances that go into a lot of those communities and a lot of those markets. We're working very closely with our counterparts in Mexico. In fact, President Fox developed a new office for small business in his Department of Commerce. We've helped facilitate some learning centers for small businesses in Mexico. Last year, the Mexican Senate changed their Constitution to allow the overseas private investment corporation to invest in infrastructure projects in Mexico and OPEC has said that they plan on investing as much as two billion dollars on some infrastructure projects that will benefit a lot of those communities. So a lot has happened. Sometimes that doesn't get out, but I will tell you that in our conversations with our friends and our partners in Mexico, at all levels of government, at all levels of business, they have told us that by and large NAFTA was a big win for them and they can't imagine not having it. Now we have ten years of experience with it, so you've really been able to see. I'm not saying that there aren't some markets that have been displaced. That happens a lot of times in dynamic economies, but overall it's been a net win for Mexico and the United States. Val Zavala>> So what do you hope the overall impact of CAFTA will be? Because in the end, after all the fighting back and forth over NAFTA, most economists say, well, the impact wasn't as great pro or con as expected. Hector Barreto>> Well, it will be big for a lot of people, but it will be very big for California since CAFTA is the fourth largest market for California exports. It's also the fourth largest market for California technology going outside of this country. It's going to help a lot of small businesses. You know, my father was a passionate free trader and he used to say that communities like, for example, the Hispanic community can be very, very important bridges to those countries of origin. He used to call that bridge Sanchez to Sanchez to Smith where Sanchez in the United States sells something to Sanchez in Latin America who ends up selling it back to Smith which is a corporation or a government. That's what it's about. It's to create those linkages so that those economies continue to grow, so that small businesses are empowered in those countries as well, and so that our people keep good-paying jobs and our economy continues to grow here in the United States. Val Zavala>> Are there particular markets that will benefit especially in California from CAFTA? Hector Barreto>> Absolutely. We know that the agricultural market is going to benefit immediately. We also know that the technology area, especially as it relates to computers, is also another community that's going to be able to benefit, but a whole host of products. We talked about manufacturing. We believe the manufacturing sector can expand by as much as a billion dollars -- that's nationwide in the United States -- which will save a lot of those very precious manufacturing jobs which we're very committed to do as well. Val Zavala>> Well, we hope the predictions come true. Hector Barreto, thank you so much. Hector Barreto>> Thank you very much, Val. It's great to be back with you. To send a comment or a question to our program, you can reach us by mail at this address: Life and Times 4401 Sunset Blvd. Los Angeles, California 90027 You can also call our viewer comment line (323) 953-5555) or contact us the fast way by e-mail at kcet.org. Val Zavala>> I'm here in Boyle Heights just east of downtown Los Angeles. It's a thriving Latino community and there are tons of small businesses, but one of them is unique. It's called Homegirls Café. You'd never know it by looking, but this is not a typical restaurant. Nearly all the young women here, the waitresses and cooks, are former gang members. They spent time in foster homes, youth camps and Juvenile Hall for violent crimes. Have some of these young women been incarcerated? Father Gregory Boyle>> Sure, all of them. Val Zavala>> Father Gregory Boyle is a Jesuit priest who runs the now-famous Homeboy Industries started back in 1988. It offers troubled boys real jobs. The idea of a Homegirl Café was a logical extension. In only a few months, the word has spread and interest from young women who want a second chance has been overwhelming. Father Gregory Boyle>> Just the other day, I got thirty letters from Corona from the women's prison there saying Homegirl, Homegirl, Homegirl. What do you think? I'm getting out in October. Any possibilities? Val Zavala>> But the café would never have come to be without chef and manager, Patty Zarate. Patty was Father Greg's receptionist for years and had worked with troubled youth. She was the perfect choice to get the café going. Patty Zarate>> I'm not a cook by training. I'm a cook by fashion, I think. Yeah, I love to cook. Val Zavala>> Eileen Eberhart works here five days a week. This is her first paying job. Her father left when she was only six and her mother, a gang member, has been in and out of prison. Eileen Eberhart>> I started in like sixth grade. Like I didn't want to listen. I'd go to school and like get into fights a lot. I'd get suspended from school, you know, and didn't want to do my schoolwork. I was failing. Then I started gangbanging when I like fifteen or seventeen. Val Zavala>> What kind of things did you guys do to get money? Eileen Eberhart>> We'd hustle, you know, and steal cars, rob people. You have your own job and you do what you do on the side. Val Zavala>> Sell drugs? Eileen Eberhart>> You could do that. I don't do that. I used to help my homies and stuff, but I don't do that. Val Zavala>> So when you got in trouble with the law, it was for what again? Eileen Eberhart>> Possession of a concealed weapon. Val Zavala>> Eileen was arrested, charged and sent to a camp for young offenders for seven months. What was that like? Eileen Eberhart>> Ugly, no privacy, there's females right next to you. It was disgusting, but it showed me that I really want my freedom, you know? I don't want to go back ever. I don't ever want to go back. Val Zavala>> Today Eileen arrived at work late. Patty doesn't let it go unnoticed. [Film Clip] Val Zavala>> Patty is from Guadalajara. She infuses her dishes with fresh vegetables, fruit and interesting spices. Patty Zarate>> We Mexicans don't eat rice and beans at every single meal we have. We eat a lot of vegetables so they are less expensive and better taste and better flavor and healthier. We don't overuse oils. We don't use lard at all. Val Zavala>> Business has been brisk, especially since the Los Angeles Times described the food as "delightful, delicious, fresh and original". Customers concur. Val Zavala>> What are you getting here? >> It's an omelet, a spicy omelet. Val Zavala>> Do you come here often? >> This is our first time. Val Zavala>> Where are you from? What part of town? >> Claremont. Val Zavala>> All the way from Claremont? >> Every time (laughter). We read about it in the Los Angeles Times and, the same day we read about it, we came up to the restaurant. It was so good, so I wrote a letter to the Times and they printed it. Val Zavala>> But running a restaurant isn't as easy as it looks. Father Gregory Boyle>> We've worked out the kinks, you know, that there were initially. Especially when you have an influx of people, it was hard to kind of get them, you know, served quickly. I was here yesterday and it was five minutes, so I thought great, so progress. Patty Zarate>> We have good days sometimes, we have bad days sometimes. Val Zavala>> What's a good day and what's a bad day? Patty Zarate>> A good day, everybody cooperates, everything is ready on time and everybody is happy. Val Zavala>> For Eileen, these are good days compared to her past. Eileen's mother is in prison serving a life sentence for a gang-related murder. Do you visit her? Eileen Eberhart>> No, I haven't. I want to go visit her soon though. Val Zavala>> And do you keep in touch with her and tell her how you're doing? Eileen Eberhart>> Um-hum. We write to each other. Val Zavala>> And what does she think of what you're doing here? Eileen Eberhart>> She's proud of me. Father Gregory Boyle>> We're continually standing in awe of what people have to carry rather than stand in judgment of how they carry it. Val Zavala>> Across the street from the Homegirl Café is another sign of progress. A light rail line is under construction in the heart of Boyle Heights. It's due to open in 2009. There are also big plans for the Homegirl Café. Right now, they have only eight tables and six waitresses, but not for long. Father Gregory Boyle>> We're going to move to a ninety-seven seat restaurant that we're building at our new headquarters in the bakery over near Union Station. Patty Zarate>> I only hope that I am not only teaching them how to cut onions and tomatoes, but also to take a leadership role. Val Zavala>> Diego Cardoso is a regular customer and long-time Boyle Heights resident. His paintings of life in East Los Angeles lend the café a warm, colorful charm. And what do you think Homegirl Café means to the area? It's not just your typical café. Diego Cardoso>> No, it's not. I think it portrays the hope for the future, for change, for a community to participate in economic development, for children to retain hope. It means a lot. Val Zavala>> As for Eileen, she's realized that serving meals beats serving time. Right now, she's sharing an apartment with a roommate and is trying hard to break old patterns. Eileen Eberhart>> I've had to because every write-up I got has been fighting, don't want to listen, hard-headed, you know, stuff like that. I've read so many write-ups like, okay, I guess that is what I am and then I started realizing that is how I act. I act on impulse. I don't think before I act. Well, I do, but not as much as I should, to put it that way. Father Gregory Boyle>> And it also stands as an invitation to employers. Oh, I get it. I'll give people a chance. All right, send me somebody. That's what you hope will happen. Eileen Eberhart>> I don't have an easy job where I just sit around and get paid, you know. This is my first job. I've got to work for what I want. Val Zavala>> So although the food at the Homegirl Café is delicious, the most important recipe they've created is the recipe for change. Homegirl Café is open for breakfast and lunch, six days a week, closed on Sundays. I recommend the mango salad. And that's our program. I'm Val Zavala. For everyone at Life and Times, thanks for watching. We'll see you next time. Life and Times was made possible through the generous support of the L.K. Whittier Foundation dedicated to improving the quality of life by supporting innovative endeavors in the fields of medicine, health, science and education. And by a generous grant from Jim and Anne Rothenberg. 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