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Issue Number One
Senator McCain on the Economy; Search For Solutions; Gas Gauge; Politics & Money; Answering Your Questions; Quick Vote Results; The Cost of Autism
Aired April 01, 2008 - 12:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
GERRI WILLIS, CNN CO-HOST: You are listening to Barack Obama. He is speaking to students at Wilkes College in Wilkes-Barre, Pennsylvania.
Let's listen in.
SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: Not only are they fearful of losing their homes, but property values have gone down all across the country, which means that people can't count on tapping into those savings. Our health care system leaves 47 million people without health insurance. And if you have health insurance, you've seen your co-payments and your deductibles and your premiums going up and up and up.
And our education system, despite the slogans, leaves millions of people behind, unable to compete in our international economy. So, in such circumstances, we can't afford to wait.
We can't wait to fix our schools. We can't wait to fix our health care system. We can't wait to bring good jobs and good wages.
(APPLAUSE)
We can't wait to end the war in Iraq. We cannot wait.
We can't wait. We can't wait. And that's why I'm running for president of the United States of America.
(APPLAUSE)
Because I'm convinced that the size of our challenges have outstripped the capacity of a broken politics to solve. I believe that the American people are looking for a new kind of politics, something that is based not on tearing each other down, but on lifting the country up.
(APPLAUSE)
A politics that's based not on spin and PR and double talk, but based on honesty and truthfulness and straight talk with the American people. That's what folks are looking for.
WILLIS: You've been listening to Barack Obama talking about the 47 million people out there without health care insurance. And he's talking about education, as well. There is another big story going on now at this hour though. Oil executives are on Capitol Hill, minutes away from appearing in front of the House Select Committee on Energy Independence and Global Warming.
CNN Senior Correspondent Allan Chernoff is here with the very latest.
Allan, what is driving the price of gas at this point, through the roof, over $100?
ALLAN CHERNOFF, CNN SR. CORRESPONDENT: The biggest factor, the number one factor here, has to be the price of oil, Gerri. Normally, 50 percent, half of the price that we pay at the pump, is accounted for by the price of oil. But right now that number is 70 percent, and that is really the key factor that's pushing it up. That's one reason we've got these oil executives right on Capitol Hill ready to be grilled.
WILLIS: Yes. And they're testifying. And what are they saying? Because they are really under pressure here. I think Congress is really holding their feet to the fire. They want to take away some tax benefits.
Do they have a leg to stand on here?
CHERNOFF: Well, the oil company executives are saying, hey, you know what? We're hit, as well.
I've got some of the testimony right here. This is from a Chevron executive. He's going to say, "We are as concerned about escalating oil prices as any other energy consumer." How do you like that?
WILLIS: Except they benefit from it, right?
CHERNOFF: The benefit, but they say, well, look, we also have to pay. We have to transport our material. We are a very energy- intensive business. And they also say, look, we had record profits last year.
WILLIS: Right.
CHERNOFF: No guarantee that's going to last. They had huge profits in 1980. And by the mid '80s, the business was in deep trouble. They are afraid that will happen again. That's what they say.
WILLIS: All right. Well, Allan, what I really want to know is, OK, where are gas prices going next?
CHERNOFF: Well, typically, we do see gas prices move higher, as you know, as the peak driving season comes. And that certainly could happen again. If the price of oil remains where it is now, $100 a barrel or even higher, you better believe gas prices will go up. But if oil declines, gas prices will decline. WILLIS: OK. Well, Allan Chernoff, thank you for that.
ALI VELSHI, CNN CO-HOST: Well, it's often argued that executives, oil executives in particular, make too much money while average Americans struggle at the pump. My next guest says, not so fast. A good deal of the American public, whether they know it or not, have a vested interest in big oil making big money.
Headline News host and radio personality Glenn Beck joins me now. He makes a lot of sense a lot of the time.
What are you talking about, Glenn? We have a vested interest in these guys making more money?
GLENN BECK, HOST, "GLENN BECK": Well, absolutely. I mean, the biggest shareholder in ExxonMobil are retirement funds. I mean, a lot of people's retirement is going up as they are making more money. As their stock goes up, we are making money.
It's not like the only people that own ExxonMobil are these giant fat cats smoking cigars. The average person through their 401(k) own as lot of ExxonMobil. So, you've got to look at their profits as a good thing at the same time you scream at them at the gas pump.
VELSHI: So what is the solution? Am I making more? I mean, is the answer to keep invested in oil companies? Because it is taking more and more out of my pocket for heating oil, for gasoline, for transportation, for everything I buy.
We know inflation is such a big concern. What is the answer to this? We all invest in the oil companies?
BECK: Well, when are we going to pull big milk up on to Capitol Hill? When are we going to pull up big egg on Capitol Hill?
VELSHI: Big wheat, big chicken. These are all problems. Our polling shows it's the number one issue, inflation.
BECK: Here's the thing. Here's the thing -- oil is up 26 percent. Gas is up 26 percent year to ear.
You look at milk, it's up 26 percent. Eggs are up 40 percent. The reason why they don't pull big milk and big egg in front of Congress is twofold.
One, everybody likes farmers. It's easy to hate the oil company. But everybody likes farmers.
The second reason is, you can't ask, why is milk up the same amount as gasoline in Congress? Because a farmer will look at it and say, because you've got a worthless policy on ethanol that is driving up the price of corn. I can't feed my cows.
VELSHI: Because the government has said we've got to put ethanol into gasoline. And to make ethanol, we've got to grow corn. So what we're doing is replacing food crops with growing corn. Corn's become more -- everything's become more expensive...
BECK: Right.
VELSHI: ... in part because of this -- should the policy be reversed? Should we not all be about ethanol?
BECK: No, we shouldn't be about ethanol. Ethanol is worthless. It takes more in gas to make than you get at the end of the deal. So it's an absolutely ridiculous idea that is -- we are burning up our own food supply at the same time.
The idea -- people have a problem. They say, well, should these companies get these subsidies? Well, you've got to pick and choose what subsidies should you get.
I believe that the government shouldn't be giving out subsidies. That's not the business of the government.
If you can't make it on your own, well I guess then you can't make it. You know, there are times when you need to say in society -- and this is never said anymore in our society -- too bad. Oh, you couldn't make it? Too bad. Somebody else will.
VELSHI: Glenn, you've got an interesting theory. You call it the asteroid theory. I was listening to this about the economy. Tell me about this since we're talking about big milk and big chicken, the big asteroid theory.
BECK: The big asteroid theory. And unfortunately, it's where we are headed on so many fronts.
We have a -- we have a liability coming at us, speeding towards the Earth that's going to hit us at 2019 of $54 trillion or $53 trillion. To give you an idea of how much $1 trillion is, if I spent $1 every second, it would take me 37,000 years to spend $1 trillion.
We have $54 trillion in hidden liabilities. That's Medicare, that's Medicaid, that is Social Security. It is going to hit us, and if we don't do something about it, we won't have any money left for defense, for highways, for anything other than the debt that will be surfacing.
At the same time, the big news yesterday was how food stamps are way up. That's because we have loosened the regulations on who can get food stamps.
We are for the first time advertising, hey, if you don't have food, come get food stamps. We are making these programs bigger and bigger and bigger. It's coming out of space, and we have all these politicians saying, wait a minute, I know how to make that rock even bigger, when they should be trying to dismantle it.
VELSHI: Yes.
Glenn, folks can get a chance to listen to you every night, 7:00 Eastern, on Headline News' "GLENN BECK SHOW." Glenn, good to have you on the show. Thanks for joining us.
BECK: Thank you so much.
WILLIS: Hey, this show, it's all about you. And every day you get the chance to speak up in real time.
Poppy Harlow is on the CNNMoney.com set today with today's "Quick Vote" question.
Hey there, Poppy.
POPPY HARLOW, CNNMONEY.COM: Hey, Gerri.
Well, it is the beginning of a new quarter. Lots of people out there hope it means it's also the beginning, a new beginning, for the U.S. economy.
In the past few months we've seen just record-high gas prices, coupled with a record number of foreclosures across America. The presidential candidates are certainly paying attention because it is issue #1.
We want you to weigh in. Please log on to cnnmoney.com and vote today.
Here's our question: What is your key economic issue this election year? Jobs, health care, housing or gas prices?
You can vote on our site.
And Gerri, while people are on our site, they can check out -- we have a story about a trucker strike. Truckers really upset about those record-high diesel prices.
Also, executives from the biggest oil companies in Washington talking to Congress about their record profits -- Gerri.
WILLIS: Thank you, Poppy.
HARLOW: Sure.
VELSHI: And Poppy is talking about that trucker strike. Filling up your gas tank is expensive. Imagine filling up one of those big rigs. Some independent truckers are saying enough is enough, and they could walk off the job. They may be doing so right now.
And what is on your mind? Send us your questions -- issue1@cnn.com is the e-mail address. Don't forget to include your name and your state.
You're watching ISSUE #1, and we're coming right back to you.
(COMMERCIAL BREAK)
WILLIS: Look, if you think it's expensive to fill up your car these days, think about how much it costs to fill up those 18- wheelers. A lot of the independent truckers are saying enough is enough when it comes to high gas prices.
CNN's Ed Lavandera is live in Dallas with more.
Hi there, Ed.
ED LAVANDERA, CNN CORRESPONDENT: Hi, Gerri.
You know, this shutdown that organizers have been putting together this week is really a grassroots effort. It started on the Internet, and it is essentially spread word of mouth. But really, it's falling on the shoulders of independent truck drivers. Trucking companies aren't taking part, so it's really hard to gauge just want kind of an impact or effect this will have.
(BEGIN VIDEOTAPE)
LAVANDERA (voice over): Word of an independent truck strike is rumbling across the country's highways.
UNIDENTIFIED MALE: I turn the key off, we're done.
UNIDENTIFIED MALE: Just to show some solidarity.
LAVANDERA: There are about 500,000 independent drivers nationwide, but it's hard to say how many drivers will actually join in this loosely-organized shutdown and turn off their engines for a whole week.
RON JONES, TRUCK DRIVER: If we shut down for five days, six days, we are making a statement that we are not going to put up with the prices like that unless our pay starts to increase.
LAVANDERA: Filling the gas tanks of a big rig can cost as much $1,000, about $300 more than it cost last year. That's having a devastating impact on the independent drivers like Ted Gennick. Most drivers aren't reimbursed for their rising fuel bills, so they eat the extra cost.
(on camera): Is it harder for the independent guys to kind of stay afloat?
TED GENNICK, INDEPENDENT TRUCK DRIVER: It is because we don't have the purchasing power. So we're not able to get the discounts that the large carriers get from both fuel resellers, maintenance and repairs, tires. We are paying premium dollar for those.
LAVANDERA (voice over): And at gas stations where the average price for a gallon of diesel fuel has passed $4, the owner of this popular trucker pit stop in Dallas says he has seen grown men brought to tears.
JOHN BENDA, GAS STATION OWNER: We're in for hard time in the next few months. It really is now affecting people and changing their lives and their lifestyles. And we'll see it over the next few months. .
(END VIDEOTAPE)
LAVANDERA: You know, right now AAA is reporting that the average price for a gallon of diesel fuel is just over $4 a gallon. Last month it was $3.67. So, it's jumped up considerably.
And then consider this time last year it was at about $2.83 a gallon. So these drivers are really feeling it. But some of the largest associations that represent these independent truck drivers are not participating -- or not supporting this shutdown. And they are actually worried that by these drivers not driving, they are not going to be making money. And at this point that is not a good thing -- Gerri.
WILLIS: Fascinating story, Ed. Thank you for that.
VELSHI: All right. Let's head a little east of where Ed is, where CNN's Rusty Dornin is talking with truckers at a truck stop in Forest Park, Georgia.
Hi, Rusty.
RUSTY DORNIN, CNN CORRESPONDENT: Hi, Ali. We are just outside Atlanta, where some folks have definitely parked their trucks.
Now, diesel here is $3.94 a gallon if you use a credit card, $3.87 if you pay cash. Now, we are here with the owner, Ali Nima (ph).
Mr. Nima (ph), have you seen the effect of people shutting down and parking their trucks today?
UNIDENTIFIED MALE: Yes, ma'am. Absolutely. I just checked the figures for 6:00 a.m. until now. I think we are probably down about 50 percent.
DORNIN: And that obviously is going to hurt your business today.
UNIDENTIFIED MALE: Yes.
DORNIN: And are you hearing people -- are people actually -- I noticed people are actually coming here and sitting here with their trucks parked.
UNIDENTIFIED MALE: Yes.
DORNIN: Are they talking about it, that sort of thing?
UNIDENTIFIED MALE: Right.
DORNIN: Do you feel their pain?
UNIDENTIFIED MALE: Absolutely. I feel it every day.
They are drivers that used to come here and spend money, money, money, money. Now they are the same drivers coming in the middle of the week and saying that their paychecks did not take them to the end of the week. They need to take food on credit. And that's really bothersome to an average American to see that.
DORNIN: All right. Mr. Nima (ph), thank you very much.
We do have a table full of drivers here. The majority have parked their trucks and are not driving today.
First of all, let's talk to Laura Case (ph).
Laura (ph), you said that you parked your truck. You've been driving for, what, 15 years?
UNIDENTIFIED FEMALE: Yes, ma'am.
DORNIN: Why did you decide to park your truck? What good do you think it's going to do?
UNIDENTIFIED FEMALE: Well, I'm hoping it will lower the fuel prices, is what I'm hoping for.
DORNIN: You're hoping a message gets sent somewhere? I mean, how difficult is it for you to make money with current fuel prices?
UNIDENTIFIED FEMALE: It's real hard. The operating costs now are 25 cents a mile higher than they were last year. And the freight rates are basically the same or lower. And if people quit hauling cheap freight, that would make a big difference right there, too, I think. That's just my personal opinion.
DORNIN: Well, let's talk to Thomas Capers (ph) here.
Now, he also -- you decided not to drive your truck.
UNIDENTIFIED MALE: Yes. I decided to participate with the rest of the drivers and not drive today to try to make a statement. Fuel prices are outrageous. And, I mean, you are not making any money. So, I mean, we have got to do something. And I think this is a step toward making progress.
DORNIN: OK. All right.
Real quick here, I just want to show you guys -- they are telling me we've got to finish up here. Red Fuller (ph), who has also parked his truck for three weeks and not wanting to drive. Just one of his trucks here.
He has a bill. He paid this gas station $1,073 yesterday to fill that truck up, and says last year at this time it probably was about $700.
So, you can see the effects that it's having on a lot of folks here.
VELSHI: Rusty, $1,000 to fill up one of those rigs. And it's a tough strike, because there is in one in particular they are striking against. But as you said, they are just trying to make that point that this is serious. And hopefully Americans realize that.
Rusty Dornin in Georgia.
Thanks very much.
WILLIS: Coming up, what the presidential candidates would do about high gas prices. We'll dig a little deeper into it when we come right back.
And there is a reason you might like to spend money regardless of the state of the economy or your personal checkbook. We're going to tell you all about it.
(COMMERCIAL BREAK)
WILLIS: You would think that folks are getting so under water in debt it would change their spending habits, but it's not so. Americans are largely not seeing the long-term effects of debt. And it may be a little more scientific than you think.
Jason Zweig is the author of "Your Money & Your Brain," and also a senior writer for "Money."
Jason, great to see you.
JASON ZWEIG, AUTHOR, "YOUR MONEY & YOUR BRAIN": Good to be here, Gerri.
WILLIS: All right. If the world were a rational place, when I went to the mall and spent money, I would feel bad because I was losing money. But, in fact, the opposite happens. Why?
ZWEIG: Well, generally when you spend money, or when you borrow money, it seems that the brain perceives that as a kind of reward. Because either if you are spending money, you are getting something you want in return, or if you are borrowing money, you are giving up money in the future to get a huge hunk of money right now. And that feels good in the brain.
WILLIS: Yes, there is definitely pleasure when with you are spending. And it should just be the opposite way.
ZWEIG: Yes.
WILLIS: Now, you are studying something called neuroeconomics. Tell me what that means.
ZWEIG: Well, it's really just the combination of neuroscience, economics, with a lot of psychology thrown in. And what neuroscientists are doing is they're using the tools of modern neuroscience to study the brains as it makes financial decisions.
WILLIS: OK. That sounds very scary. Is there any information out of this I can actually use in trying to get my money to work for me and feel some kind of sense of accomplishment about it?
ZWEIG: Well, yes, definitely. One thing you can do is if you are tempted to borrow, what you want to do is you want to look at what it's going to cost you down the road. And one of the problems people get into is they borrow and they say, well, I'll deal with it later.
And what you should do is you should ask, what is this going to cost me five years from now? Get it written down on a piece of paper. And then cross off the date and put in today's date. And ask yourself, if this were today, could I handle this amount of debt?
WILLIS: All right. So, you are saying think about the interest you are paying on your credit card bill. Think about the amount of money you are paying to spend money. I think that is a big missing equation in a lot of this.
I think your brain -- you say it also sort of makes these things abstract, right?
ZWEIG: Well, borrowing and paying it back in the future is a very remote thing. That's feel bad later. Getting the money is feeling good right now.
WILLIS: That's right.
ZWEIG: And when those two things fight, the future is always going to lose. That's when you feel the pain of having to pay it back.
WILLIS: Right.
ZWEIG: So what you have to do is force yourself to ask enough good questions so that today you understand what borrowing is going to cost you tomorrow.
WILLIS: All right.
Well, you know, there are people right now who are in a lot of pain. Now they do realize the consequences of their actions. They owe a lot on their mortgage, maybe they owe more than they can afford.
What should they be thinking about right now? How should they be trying to think through the problem?
ZWEIG: Well, I think the real key, Gerri, is to stay really calm, really calm, and not panic. Because when you panic, your brain has a very difficult time making a good, objective decision.
Clear away all the emotion that you can. Keep yourself calm, and try to form a consistent, logical plan for getting out of debt, one month at a time. Don't try to do it all at once.
WILLIS: All right. Zion Zweig, thank you for that.
The book is called "Your Money & Your Brain."
VELSHI: All right. Coming up next, the candidates and your money. Do any of them have the fix that the economy needs?
Plus, we'll talk to Senator Chris Dodd live.
And send us an e-mail to issue1@cnn.com. Answers to your questions are coming up on ISSUE #1.
(COMMERCIAL BREAK)
(NEWSBREAK)
WILLIS: Welcome back to ISSUE #1.
Senator John McCain has made it no secret that foreign policy is issue #1 to him and his campaign. But Senator McCain spoke out today on the economy to our own Dana Bash.
Dana is live right now in Alexandria, Virginia, with more.
Hi there, Dana.
DANA BASH, CNN CONGRESSIONAL CORRESPONDENT: Hi there, Gerri.
You're right. You know, he was here in Alexandria, Virginia, on day two of his -- basically his bio tour. He's trying to introduce -- or reintroduce himself to the voters here.
He was at this high school because this is actually where he attended. And that was sort of the theme of his speech today, which was education. But as he is doing this, he is getting blasted by both of his potential Democratic rivals for essentially being not ready to handle the economy. And specifically not really being caring that much when it comes to the economy because, from their perspective, because obviously Democrats have quite a different philosophy on the economy, the fact that Senator McCain has said that he does not think, for the most part, it's the government's role to inject itself into this housing crisis. What they are saying is that, you know, he simply don't get it. You remember Hillary Clinton called him Herbert Hoover.
Well today I had a chance to sit down with him here and I asked him about whether he's worried about that sentiment taking hold. And it was very interesting. He tried to clarify his perspective and his position when it comes to the government and the economy.
(BEGIN VIDEO CLIP)
BASH: Thank you for sitting down with us.
SEN. JOHN MCCAIN, (R) PRESIDENTIAL CANDIDATE: Thanks, Dana.
BASH: The first question is about the issue that Americans do seem to care about the most, and that's the economy. You've been very clear that because of your principle and because of your Republican philosophy, that you think that the government really should be limited and really should stay out, for the most part, of bailing out both homeowners and what you call irresponsible lenders. But my question is, in this time of uncertainty, when there are so many people hurting, are you concerned that there are voters out there who hear that who say, John McCain is heartless when it comes to this issue.
MCCAIN: Well, actually, I think the government should facilitate a lot of things. And there have been numerous proposals, many of which I have supported and some that I will be coming forward with. What we really need to do is, fundamentally, is make sure that we take every action to have the lender and the borrower sit down together so that the millions of Americans who are facing terrible challenges will be able to afford to keep their home.
We don't want greedy speculators, obviously, to profit. We don't want unscrupulous lenders to gain from this and spend taxpayers' dollars on it. But we should devote all our efforts, and I will be, as I say, encouraging and trying to provide ways for incentivizing that process to happen. And, if necessary, give the homeowners who are sitting around the kitchen table today saying, well, I have to get another job, will we stay in our home, be able to do that? That does mean government helps out.
What I worry about, of course, are massive bailouts that will then reward people who didn't behave well. But my efforts and my proposals will to be help that homeowners who is now experiencing a great trauma of losing the American dream.
(END VIDEO CLIP)
BASH :So there, Gerri, you heard Senator McCain saying no government bailout, but there is a role for government when it comes to the economy, specifically the housing crisis. You didn't hear him give any specifics there, but the McCain campaign tells us that there will be an economic plan with some specifics coming forward in the next couple of weeks. We'll wait and see how specific it is.
Gerri.
GERRI WILLIS, CNN ANCHOR: Dana Bash, part of the best political team in television, thank you.
ALI VELSHI, CNN ANCHOR: Senator Chris Dodd of Connecticut made housing a major part of his presidential run. With his campaign over, Senator Dodd is back on Capitol Hill dealing with issues relating to the mortgage meltdown. He joins us now from Capitol Hill.
Senator, thank you for being with us.
Just heard part of that interview of John McCain's with Dana Bash. He says he'll be coming forward with something to do with the mortgage crisis in the next couple of weeks. Something people have been really calling for. What's your sense, having been a leader on this front, about what the three remaining candidates are doing on the housing front and whether it's enough.
Senator. SEN. CHRIS DODD, (D) CONNECTICUT: Well, a couple of weeks -- let me just frame this issue for people. We've been at this now for a year. I organized the first meeting of stakeholders almost a year ago when they made a commitment they would sit down with homeowners to try to work out a new arrangements so that people could stay in their homes. According to Moody's, somewhere between 1 percent and 3 percent of homeowners facing foreclosure have had a workout. That's not a good result, in my view.
So while I would love that to happen, the reality is, it's not happening. And every day that we wait, according to, again, private sector financial institution data, almost 8,000 people are going into foreclosure on a daily basis in this country. That's 8,000 yesterday, 8,000 today and every day we wait more and more people are in trouble. A hundred, thousand people lost their jobs . . .
VELSHI: So what are you saying your answer is, senator? What's the . . .
DODD: Well, our answer is to do a number of things. First of all, you need to find a bottom here. And we've been advocating that for weeks now. And that is to do what was done before, and that is provide insurance through FHA, where the lender takes a haircut, the borrower, who stays in the home, the owner occupied residence would be able to stay there as well under a new arrangement, under a reduced price over a fixed rate period of time -- or fixed rate over a fixed period of time. And that would do an awful lot to find the floor, the bottom here, which is what is necessary for capital to begin to flow again.
So there's not some vague ideas out here of hoping this will work out. We need leadership in the country. To their credit, Barack Obama has advocated exactly this same plan and idea. Hillary Clinton, I'm told, is supporting that as well. And with all due respect to my friend John McCain, waiting a few more weeks while he announces some plan is not going to be any satisfaction.
Look, this administration spent a whole weekend providing $30 billion to an investment bank to take care of Wall Street. When is such a meeting occurring here to take care of main street? People worried about losing their homes tomorrow, losing their jobs as we're in a recession here with little or no light at the end of the tunnel. So, frankly, we need to get moving on this issue, not a couple of weeks from now, but today.
VELSHI: Senator Dodd, thank you for join us. We should mention that Senator Chris Dodd is a supporter of Senator Barack Obama in the presidential campaign.
Senator Dodd, we look forward to hearing from you again. Thank you.
DODD: You bet. Thank you very much.
WILLIS: The housing crisis is a key economic issue to so many of us. Another one, as we've been reporting on this program, high gas prices. So do the three, major candidates have a plan to ease high gas prices, have they proposed a conservation policy? CNN's Dan Lothian is live at the Election Express in Philadelphia.
Dan.
DAN LOTHIAN, CNN CORRESPONDENT: Hello, Gerri.
Well, you know, as you've been talking about over the past couple of minutes that, you know, the whole issue of the economy has really been important for these candidates. They've been talking about it, not only with the housing crisis but certainly how it costs more when American voters go to the store. And then, of course, it costs so much more now to put gas into your car.
Again, all three of the candidates realizing that this is important for voters. But also talking about some specifics with regard to the energy crisis.
Senator Clinton, in particular, is talking about reducing electric consumption by 20 percent from projected levels by 2020. And she says that can be done by sort of changing the way the utility companies do business. She's also talking about $50 billion for a fund that would be paid in part by oil companies. And this would go towards funding alternative energy.
Barack Obama is talking about proposing the reduction of carbon emissions by 80 percent and also investing $150 billion over 10 years in clean energy.
Over on the Republican side, Senator John McCain, as you heard, is really going to be talking about his economic plan here shortly, giving some details. He's not giving a lot of details about his energy policy. But what he has said is that he looks more towards the advancement of technology and sciences in order to help with fuel efficiencies.
So certainly, again, the candidates realizing that this is important for the voters who are fighting a difficult time in this very tough economy and certainly finding that they have to pay so much more to put gas in their cars. They're looking for some solutions going forward.
Gerri.
WILLIS: And we're all looking for solutions. Dan Lothian, thank you for that.
Now, do any of the candidates have the right answer for fixing the economy? I know you want the answer to that. Roland Martin will be here.
Plus, we're answering your e-mails. The address, issue1@cnn.com.
(COMMERCIAL BREAK)
VELSHI: Welcome back. We're talking the presidential election and, more specifically, where the candidates stand on issues that mean something to you -- the economy, health care, housing. I want to bring in CNN contributor and very good friend Roland Martin right now live from Chicago.
Roland, good to talk to you.
You are an observer of all that these candidates do on every level. But there is one issue which is close to your heart and that really matters in this election and that is that this economic downturn and this mortgage meltdown has disproportionately affected some people in America more than others. Particularly those people of color and minority have been affected more by this downturn than others. Do you think that that's being addressed adequately in this election?
ROLAND MARTIN, CNN CONTRIBUTOR: You know, I don't necessarily think so because this is also a class issue that the candidates really haven't touched on. I'll give you an example. When you talk about this whole housing crisis. One of the things that we've seen, Ali, based upon the research, is that African-Americans and Hispanics, who had a higher FICA credit score and were making more money than some whites were given subprime loans as opposed to a prime loan. And so although they're talking about fixing those kinds of problems, you have inequity in terms how they determine who gets what loans. Most of the candidates haven't even discussed that. That's a critical issue that I think has been overlooked by all three candidates.
VELSHI: Have you heard anything, though, that suggests what could be done to fix things like that? They got -- sort of suggest an inherent bias in the system. That's in addition to the fact that the system was so broken that people ended up with loans that shouldn't have gotten them. Well, how do you even address that? What does a candidate have to say to suggest that they know what is going on here and how they might fix it?
MARTIN: Well, I think what has to happen is, they have to ensure that the agencies and the federal government, they fully investigating those kinds of practices to ensure that they are not targeting individuals or assigning people to racial categories. Some people call this, you know, reverse redlining, where it used to be people would not invest in certain zip codes. Now what you see in the case of whether you're African-American or Hispanic doesn't matter what zip code you live in. If people see who you are, they're going to assign based upon that.
We also see, though, with this whole housing crisis, many neighborhoods. I'll give you an example. Prince Georges County, Ali. That is considered the most richest black county, if you will, in the nation. Kelvim Boston (ph), I had him on my radio show recently, he said that that particular county is facing, because of the housing crisis, losing 25 percent to 50 percent of their home. That could devastate that particular county. Those are the kind of issues that go beyond just a particular home owner losing their home.
Now you're talking about the people who are even still left there. They have problems because their values go down. Now your crime increases because you have vacant homes there. And so it all (INAUDIBLE) itself (ph).
VELSHI: And your property tax base decreases. And I mean it affects everybody because this isn't . . .
MARTIN: Absolutely.
VELSHI: The bottom line is, the economy is spreaded out to all of us.
MARTIN: Sure. Sure.
VELSHI: We also know, Roland, not just housing, but inflation, of course, affects everybody. And health care, which is such a major part of issue number one, it's such a big subset of it, also affecting African-American and minority families disproportionately.
MARTIN: I'll give you an example of what's happening here in Cook County where Chicago is. Because people don't have health care, they are putting a significant strain on the Cook County health system. They had to just jack up the sales tax to raise additional $400 million or so. Now the CFO says we need even more money because there are people out there, they are unable to pay for health care.
Now they ship them to the county. The county then says, wait a minute, we can't pay for this. The county says we now need more money. And so I think people have to understand, this goes beyond just simply the individual one person losing a job.
When that person loses a job, they lose health care. They now shift to the city and to the county. That simply adds more people to the system. And so we see this problem going on and on. So, you're right, whether you're black, white or Hispanic, this is a huge, huge problem.
VELSHI: It doesn't matter. This is now everybody's problem.
All right, Roland, good to see you, buddy. Thank you for being with us. CNN contributor Roland Martin joining us from Chicago.
WILLIS: Coming up, unraveling the mystery of autism. It's a devastating disability that can take its toll on both your heart and your wallet. Up close and personal with one family's story next.
And we'll answer your e-mails. We asked you for your questions and boy did you respond. Keep them coming. We want to hear them. Issue1@cnn.com.
(COMMERCIAL BREAK)
WILLIS: The help desk is open for business. Real answers to your very real e-mail questions.
Now to help us do that today, we have financial advisor Gary Schatsky, Ryan Mack, founder and president of Optimum Capital Management, and CNN senior correspondent Allan Chernoff.
Thanks, guys, for all of you being here.
Let's just get right to it. OK. The first e-mail. Gayle in California asks, "word is spreading fast about a truck driver strike because of rising diesel prices. If it's true, what will be the effect on the economy?"
Gary.
GARY SCHATSKY, FINANCIAL ADVISER: Well, clearly you'd expect there's going to be some sort of a slowdown. There aren't going to be products that are going to be delivered to market. And, in some respects, there could be shortages. And hopefully it will get averted.
ALLAN CHERNOFF, SENIOR CORRESPONDENT: And it could devastate the economy if it's widespread. But how many truckers are really going to do this? I mean there's got to be a way for them to squeeze out a slight profit to stay in business.
WILLIS: Well, we'll wait and see, right? Exactly.
Let's go to the next e-mail. Hyder asks, "I am looking to buy my first home. Should I go for a 10-year ARM or 30-year fixed?
What do you think, Ryan?
RYAN MACK, FOUNDER & FMR. PRES., OPTIMUM CAPITAL MGMT.: I think one of the major thing you want to look at is, how long do you plan on living in that home? If you plan on being there longer than 10 years, if you're willing to bear the risk of having an adjustable rate mortgage after that 10 years is over, then you might want to look into an adjustable rate mortgage.
WILLIS: There's not really that much difference now, right, between a 10-year and a 30-year fix? I'd go for the safety.
MACK: Well, that's true with a 10 and a 30. But a five and a 30, there's a massive difference. So you've got to really kind of play it out.
WILLIS: Got to look at the numbers.
OK. The next e-mail. "Can you freeze your credit score when you want to borrow?"
Gary.
SCHATSKY: You can't. The credit score is an ongoing situation. They constantly are looking at what you're doing. So you can't say, hey, looks good now. Look, you miss a payment, it's going to drop.
MACK: And let's also think positively. We should always be in an aggressive mode of making sure we're doing the things that are necessary to make sure we increase our credit consistently.
WILLIS: I think that's a great idea. You should care about your credit score and check it out.
OK. We've got another e-mail from California. "I purchased my first home a year ago with a zero-down interest-only five-year fixed loan. I can afford my current payment terms, but because of the market change, I'd like to refinance to a 30-year fixed rate loan. My house has lost about $15,000 of it's value." This is so common. "I am unable to refinance. I'd like to modify my loan, but it seems that I will have to miss a payment or two to qualify for modifying my loan terms." This is one of these situations everybody is in right now. "How likely is it for me to be able to modify my loan without missing a payment?"
Gary, jump in here.
SCHATSKY: Yes, they're going to have a hard time modifying it. Look, you don't want to miss a payment. You're talking about a situation where you're creating a bad credit score, a bad credit record, in order to do a modification. And one of the things a person has to think about is, with short-term rates coming down and the five- year about to adjust, the adjustment probably won't be substantial in terms of adverse and it might not be bad at all.
MACK: And you have to make sure we're aggressive in talking to our lenders. If they've got four years left until that loan goes into a principal portion where they have to repay it, talk to the lender. If they think there's trouble, the lender is not going to hold this debt on their balance sheet.
WILLIS: It's a tough situation.
CHERNOFF: What you want to do is stay with that fixed.
WILLIS: Stay with that fixed.
CHERNOFF: Yes, I mean try to get it.
WILLIS: Let's just grab one more question here from Dianne. "I am planning a trip to Scotland in June. I need to come up with $8,000 to pay for it." That's some vacation. "And have gotten a line of credit that will have no interest for six months." Her question here, it's kind of lengthy. What about a credit line for a vacation?
Allan.
CHERNOFF: I think this is an awful, awful idea. I mean if you've got to borrow like that to go on vacation, come on. I mean, go to Disney World. I mean, just get in the car, go a few hundred miles away.
WILLIS: Gary.
SCHATSKY: You know, you've got to take a look at delayed gratification versus immediate gratification. And unless -- look, if they're offering you a zero interest loan for a short period of time, I'll take that rather than take cash. But other than that, don't go in debt for a short-term expenditure.
WILLIS: All right. OK. Ryan, Gary, Allan, thank you so much for your help today.
Ali.
VELSHI: All right. Time now for the results of today's Quick Vote. Poppy Harlow is at the cnnmoney.com set with more.
Poppy, how's it looking?
POPPY HARLOW, CNNMONEY.COM: You know what, it's really interesting, Ali, and it is what I predicted. Thirty-seven percent of people think that gas prices are the number one issues for them in this election year. And that is not a surprise. Remember yesterday we saw record gas prices. AAA saying $3.28 a gallon across America. And those records diesel prices above $4 a gallon in some places. The truckers are having a tough time with, Ali. So, as I expected, 37 percent. Twenty-eight percent said it was jobs. That that is their main issue.
Ali.
VELSHI: All right, Poppy, good. I think that what's happening is people are making that connection that gas prices work its way onto everything else that we buy as well. That's where inflation's coming in.
Well, coming up on ISSUE NUMBER ONE, crushing the cost of autism. See how one family's devotion is caring for their children is driving them deep into debt. You're watching ISSUE NUMBER ONE on CNN. Stay with us.
(COMMERCIAL BREAK)
WILLIS: National Autism Awareness Day is tomorrow. And for that, we here at CNN are focusing much of our coverage on unraveling the mystery that is autism. Now one area often overlooked is the cost. Let's face it, budgeting in any family household can be challenging. Add into the mix an autistic child and a family can find themselves in financial quicksand.
(BEGIN VIDEOTAPE)
WILLIS, (voice over): A house in the suburbs, three young children and loving parents. Your typical family. Except . . .
MICHELE IALLONARDI, PARENT OF AUTISTIC CHILDREN: All three of my boys were diagnosed with autism. Jackson was diagnosed at two and a half, the twins were diagnosed right around their -- a little after their first birthday. So actually all three of our children were diagnosed within one year's time.
RALPH IALLONARDI, PARENT OF AUTISTIC CHILDREN: At the very beginning, you just know. I mean you just think, OK, three kids with autism.
M. IALLONARDI: Where do you go from here?
WILLIS: Where they went was into debt.
M. IALLONARDI: We first took out a loan to kind of set up an area for the children in the house to do therapy. And we started out with like $15,000 or $20,000 on a home equity loan. And that was three years ago. The home equity loan is now up to, I think, $67,000.
R. IALLONARDI: It's very easy to say no to, you know, buying clothes and saying no to buying a better car and saying no to, you know, painting your walls or whatever. But it's hard to say no to some kind of supplement or diet or therapy that could help your kid talk.
M. IALLONARDI: E-I-e-I-o. With an . . .
UNIDENTIFIED MALE: Oink, oink.
M. IALLONARDI: Here. And an . . .
UNIDENTIFIED MALE: Oink, oink . . .
M. IALLONARDI: There. Here an oink, there an oink, every where an . . .
UNIDENTIFIED MALE: Oink, oink.
$8 for a bag of pretzels. This costs like $6.
WILLIS: It adds up quickly. A study by Professor Michael Ganz puts the lifetime cost of caring for an autistic child at more than $3 million.
MICHAEL GANZ, HARVARD UNIVERSITY: $3.2 million per person or $35 billion for society consists of medical costs, such as doctor's visits, medications and therapies. It consists of non-medical costs, such as adult care, child care, special education, transportation, if necessary. And it also consists of lost income. Both parental lost income and the lost income of people with autism.
WILLIS: For Ralph and Michele Iallonardi, it's not about the cost, it's about their kids.
M. IALLONARDI: You're talking about meeting basic needs like . . .
R. IALLONARDI: Basic needs, right. So we'll do whatever.
WILLIS: One thing the Iallonardi's aren't doing is consulting a financial planner, which some say should go hand in hand with the diagnosis. Michael Beloff is a financial advisor with Morgan Stanley and the father of an autistic son.
MICHAEL BELOFF, FINANCIAL ADVISER, MORGAN STANLEY: I find that parents tend to focus on the day-to-day issues. The next doctor's appointment, meetings with the schools and meeting with the therapist. What sometimes gets lost is the long-term planning.
WILLIS: The Iallonardi's still need to plan for the financial future of their autistic sons, but that plan now involves two instead of all three of their boys. Luca (ph), one of the twins, was recently declassified and is said to be developing normally.
UNIDENTIFIED MALE: That was funny.
M. IALLONARDI: I love my boys.
R. IALLONARDI: We draw inspiration from them.
M. IALLONARDI: We love each other. You just draw inspiration from your kids.
R. IALLONARDI: If you told me a year ago that, you know, Jackson would say his first words, I couldn't put a price tag on that.
M. IALLONARDI: Right.
R. IALLONARDI: The house, the equity, line of credit, who cares, that would all be frivolous.
(END VIDEOTAPE)
WILLIS: Now the kind of financial support you can get if you have an autistic child, well it varies from state to state and down to your local community. The best resources are usually other parents in your neighborhood. Contact your local Special Ed Parent Teacher Association. They are called SEPTA. There are also grant programs you might qualify for, such as the Helping Hands Project from the National Autism Association or Act-Today.org.
And, finally, if you're thinking about hiring a financial adviser, make sure they're certified. You can check at cfp.net. And you shouldn't be charged more than 1 percent to 1.5 percent of your assets for their services.
We're going to take a one-daybreak tomorrow for CNN's special network wide coverage of National Autism Awareness Day, "Unraveling the Mystery of Autism" tomorrow at noon Eastern time.
VELSHI: What a -- it really puts things into perspective when we look at what people who don't have those challenges have to go through financially and then you hear that story. It's quite heartening to see that that family is saying all right, you know what, financial problems being what they are, at least they get some reward and they've got that love to feel for it.
WILLIS: Absolutely. Great family.
VELSHI: It's quite eye-opening.
ISSUE NUMBER ONE will be back Thursday, same place, same time, noon Eastern. Time now for your latest headlines. CNN "Newsroom" with Don Lemon and Brianna Keilar starts right now.
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