Transcript of Obama MLK Interview on NBC's "Nightly News"

WILLIAMS: A lot of people in the crowd assume you are here or will be here. Yet, you're not. Why is that?

OBAMA: Well, obviously, we all, I think across the country, are remarking-- on the tragic death and the extraordinary life of Dr. King. I thought that I could best deliver that message here in Indiana, and later, in North Dakota. And I also have the opportunity to talk to Dr. King's family this morning. I think they are aware of how important believe the legacy of Dr. King is. I wouldn't be here if it weren't for him.

WILLIAMS: He was a 39-year-old man when he died on the balcony behind us. He's now been dead longer than he was on earth. What of his message, back then in 1968 continues today unchanged?

OBAMA: Well, obviously, race is still an important factor in our society. There is still discrimination. There's still barriers to opportunity. But I think what's important to note is that Dr. King went down to Memphis as part of the poor people's movement and recognized the link between economic justice and racial justice. But on the economic front, we just found out-- that last month, we lost 80,000 jobs, over 200,000 so far this year. And so often that is just disproportionately impacting African American and Latinos.

Having an agenda that ensures economic justice, that everybody can get paid a decent wage and find a job. That part of Dr. King's dream has not yet been achieved. And I think has to be one of the challenges to America in the coming decades.

WILLIAMS: Senator, one of Dr. King's lesser-publicized quotes came from 1967. Quote, "I'm sorry to have to say that the vast majority of white Americans are racist, either consciously or unconsciously." What do you make of that quote in 2008?

OBAMA: Well, I think that there has been enormous progress over the last 40 years. And you see it most clear in the younger generation. So I think the attitudes are light years away from where they were in '68. But there's no doubt that we still have unconscious prejudices. Not just white, but also black and Hispanics and Asians. I think we all have biases and fears and concerns of people who don't look like us on the surface.

And that's why it's so important that we have a leadership that is not trying to exploit those biases, but rather, trying to overcome them.