Return to Transcripts main page

Issue Number One

Stimulus Checks Just Days Away; Supermarket Spending; Co-Op Shopping; Summer Stints

Aired April 25, 2008 - 12:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

GERRI WILLIS, CO-HOST: Get ready for your stimulus check just days away. President Bush has high hopes for what those checks will do for the economy.
Food prices are rising, but you can bring down your next grocery bill.

And those summer jobs students count on to make some extra cash, well, they might not be there.

ISSUE #1 is the economy. ISSUE #1 starts right now.

We are going to get to that stimulus check in just a second. But first, we are going to go to Barack Obama in Indianapolis, who is speaking to reporters.

(JOINED IN PROGRESS)

SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: ... short-term steps that we can take to ease the burden that Indiana families are bearing as a result of our failed energy policies. But here's the truth. There is no easy answer to our energy crisis, and we need a president who is going to be straight with us about that, a president who is going to tell the American people not just what they want to hear, but what they need to hear.

And what they need to know is that any real solution isn't going to come about overnight. It's going to take time.

To bring about real change we are going to have to make long-term investments in clean energy and energy efficiency. That's why I reached across the aisle in the Senate to come up with a plan to double our fuel efficiency standards that won support of lawmakers who had never supported raising those standards before. That's why I voted for an energy bill that was far from perfect because it was the largest investment in renewable energy in history, at the same time as I fought to eliminate the tax giveaways to oil companies that were slipped onto that bill.

And as president, I will work to solve this energy crisis once and for all. We'll invest $150 billion over the next 10 years in establishing a green energy sector that will create up to $5 million new jobs. And those are jobs that pay well and can't be outsourced. We'll invest in clean energies like solar, wind and biodiesel, and we'll help make sure that the fuel we are using is more efficient. The candidates with the Washington experience, my opponents, are good people. They mean well. But they've been in Washington an awful long time, and even with all the experience they talk about, nothing has happened.

This country didn't raise fuel efficiency standards for over 30 years. So what have we got for all that experience? Gas that's approaching $4 a gallon. Because you can fight all you want inside of Washington, but unless you change the way it works, you won't be able to make the changes America needs.

In the end we'll, only ease the burden of gas prices on our families when Hoosiers and people all across America say enough. It's time to free ourselves from the tyranny of oil and stop funding both sides of the war on terror.

It's time to save this planet for our children. The time is now, not after the next election or the one after that.

You shouldn't have to accept any more excuses as to why it can't be done. It won't happen tomorrow, but we can come together in this election and we can begin with the first steps in changing our energy policy. And that's changing Washington. If we can do that, then the energy crisis is one that I'm confident we can solve.

So with that, let me stop and open it up for questions.

QUESTION: Senator, ethanol is a big deal here in the state of Indiana. Unfortunately, with the use of the corn, that's also led to a shortage and food prices. So how do you sort of balance the two, which is to find alliterative sources of fuel, but at the same time have food just on the table or be able to drive to work?

OBAMA: Well, look, I've been a strong ethanol supporter because Illinois, like Indiana, is a major ethanol producer. But what I've always maintained is that even as we invest in alternative fuels like ethanol, we have to recognize that corn-based ethanol is a transitional technology.

We're going to have to shift to cellulocic ethanol, using biomass that is not part of the food chain. And that's going to require some time.

The fact that we made this investment in corn-based ethanol, the fact that we are establishing distribution centers, the fact that we have built a research capacity in all these areas, that will be helpful in moving forward on biomass. In the meantime, I think you are exactly right, we've got to strike the right balance.

We've got to continue to promote alternative fuels. But we have to be mindful that not only are food prices increasing here, but around the world you are starting to see food shortages that could end up leading to real hunger and food riots. And that is something we have an obligation to not ignore.

WILLIS: You've been listening to Senator Barack Obama speaking to reporters in Indianapolis on gas prices.

Ali Velshi will be here in just a moment with more on those gas prices. Buy first, those long-awaited stimulus checks.

And just a couple of hours ago, President Bush said he is counting on the rebate checks to stimulate the economy.

CNN White House Correspondent Ed Henry is live right now at the White House.

Hi there, Ed.

ED HENRY, CNN WHITE HOUSE CORRESPONDENT: Well, Gerri, the president continues to insist the country is not in recession, but he does acknowledge there is at the very least a slowdown. So he's under great political pressure to show he's doing something about it.

Today he was touting those economic stimulus checks -- $600 for individuals, $1,200 for couples. They are going to start going out to consumers on Monday by direct deposit. About 7.7 million people alone next week will be getting their checks electronically.

Then on May 9th, they are going to start going out from the IRS by snail mail. In the end, about 130 million families will be getting these tax rebate checks, according to the president.

WILLIS: All right, Ed. Thank you for that.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We want to make sure everyone who is eligible for a check gets one on a timely basis. This money is going to help Americans offset the high prices we are seeing at the gas pump and at the grocery store, and it will also give our economy a boost to help us pull out of this economic slowdown.

(END VIDEO CLIP)

HENRY: But whether this will actually provide a major stimulus to the economy, of course, is still open for debate. A lot of consumers, as you know, talking about paying off debt on stuff they've already bought rather than going out and buying more stuff. So there is a big question right now about how much of an impact this will actually have -- Gerri.

WILLIS: Well, we'll be watching and listening for you to explain all the details.

Ed, thank you for that.

HENRY: Thank you.

ALI VELSHI, CO-HOST: Well, gas hits another record high at the pump. AAA auto club says the national average for a gallon of regular unleaded went up two cents overnight, putting the nationwide average at $3.58 a gallon for self-serve unleaded. Motorists who filled up yesterday on New Jersey's toll roads feel like they were really smart because they avoided a reported 22-cent price hike. Yesterday a gallon of gas in the Garden State, lowest in the country, was $3.17 on average. This morning, about $3.39.

Service stations along the Garden State and New Jersey turnpike, toll roads in particular, are only allowed to change their prices once a week. They usually do so on Friday.

Now, even with the hike, New Jersey remains the nation's cheapest gas, according to AAA. I think Wyoming is a close second at one cent more per gallon.

But if you think we've got it rough here in the United States, I'm going to make you feel a little better? CNN's Jim Boulden is live right now in London, England, with more on gas prices and how much they are paying there -- Jim.

JIM BOULDEN, CNN CORRESPONDENT: You won't believe it, Ali. If you think it's high in the U.S., let me show you what it is here.

Now, of course this is pence per liter. It's about one pound and 10 pence right now. That's not bad for the U.K. But let me convert that to you for gallons.

That's about $2.40 a liter, or about $11 a gallon. That's right, about $11 bucks a gallon. That's about an average price around Europe. You are talking three times the price that you all pay there in the U.S.

Now, prices here have been jumping a lot in the last two months just like they are in the U.S. We've been up about $1 a gallon here in the last two months. But you have to remember, most of this is tax. And that's the big difference.

That's what Europeans of course realize. They are paying something like 80 percent tax when they fill up here at the pumps.

Some of them are griping about this, of course. We have a potential strike at a BP refinery in Scotland on Sunday. The gas stations say they have plenty of petrol for the next couple of days, but maybe by Wednesday, Thursday, we'll start seeing to see people lining up here because they'll get worried, maybe a bit of panic, and they'll be paying even more money because there may be a shortage because of this strike -- Ali.

VELSHI: Ouch. Shortages, something we are worried about, people keep bringing up.

Jim, thank you for talking about that and giving us a little perspective. He's about the only guy who's made us feel good about gas prices.

Let's go back to Joe's Junction in Indianapolis. Senator Barack Obama now.

(JOINED IN PROGRESS)

OBAMA: We are not going to solve the problems of people losing their jobs and having them shipped overseas. We are not going to deal with health care in a meaningful way for families. And that's why I'm in this race.

And so I am going to make sure in the remaining contests that we continue to deliver that message in every venue possible, and as aggressively as possible, because I'm confident that ultimately the American people agree with me that we can't keep on doing the same things and expect different outcomes.

QUESTION: Senator, the officers in New York City were just acquitted in the Sean Bell murder case. Obviously, there is going to be a lot of people in New York City surrounding areas hurting today and on into the future.

How do you address them so that there is not urban chaos?

OBAMA: Well, look, obviously there was a tragedy in New York. I said at the time that without benefit of all the facts before me, it looked like a possible case of excessive force.

Now, the judge has made his ruling. And, you know, we are a nation of laws. And so we respect the verdict that came down.

I think the most important thing for people who are concerned about that shooting is to figure out how do we come together and ensure that those kinds of tragedies don't happen again? And so my understanding is that Mayor Bloomberg, community leaders, they are going to be -- the police department -- they are going to be getting together to find out what changes and procedures need to take place in preventing these kind of tragic shootings. But certainly, you know, resorting to violence to express displeasure over a verdict is something that is completely unacceptable and is counterproductive.

QUESTION: Senator, Reverend Wright in his interview that will be broadcast tonight, suggested -- seem to suggest that he was diminishing your speech in Philadelphia on race by saying that it's just politics, you are a politician, you've got to say what you've got to say.

What is your response to that?

OBAMA: Well, look, I have commented extensively, most prominently in that speech in Pennsylvania, on my profound disagreements with some of Reverend Wright's comments. And, you know, I understand that he might not agree with me on my assessment of his comments. That's to be expected.

So, you know, he is obviously free to express his opinions on these issues. You know, I've expressed mine very clearly. I think that what he said in several instances were objectionable. And I understand why the American people took offense. And, you know, and -- as I indicated before I took offense.

QUESTION: Senator Obama...

OBAMA: Yes?

QUESTION: The John McCain strategists have said that they prepared a strategy against you, as well as Senator Clinton. Do you guys feel like you have enough time to prepare a general election strategy as the Democratic nomination still goes on, the race?

OBAMA: Yes. Look, the -- I think that Senator McCain, as I said, is a war hero, and I respect his service to this nation. But he wants to perpetuate policies that have been very damaging to this country.

On foreign policy, he wants to continue a war in Iraq that I think is making us less safe. On the economic front, he wants to perpetuate policies that I think have helped get us in a terrible economic hole.

And so we are going to talk very aggressively about the difference between where John McCain wants to take the country, which is essentially four more years of current policies, and where I want to take the country. And that's going to be the debate.

VELSHI: And that is Senator Barack Obama campaigning at a gas station and truck stop in Indianapolis, talking about a number of things -- about John McCain and the economy, about people with gas struggles, and making a reference to an interview given my Reverend Jeremiah Wright saying that he really didn't think that Barack Obama necessarily meant what he said when distancing himself from the reverend, but that it was all politics.

Senator Barack Obama was saying that he expected that Jeremiah Wright, the reverend, would disagree with some of his positions when he made his speech on race in Philadelphia a few weeks ago. That is Senator Barack Obama.

Of course, the primaries in Indiana and North Carolina are coming up May 6th on CNN. We will continue to bring you full coverage of the campaigns and what those candidates are saying about the matters that mean the most to you, including the economy.

Well, coming up next, save money right now on your next trip to the grocery store. We'll take you through it and we'll answer your e- mails. That's what we do here on ISSUE #1.

The address: issue1@cnn.com.

Keep them coming. You're watching CNN. And this is ISSUE #1.

(COMMERCIAL BREAK)

(NEWSBREAK)

WILLIS: The rising cost of food is a big concern to so many of you out there, which is why we've made a commitment on ISSUE #1 to bring you as much information as possible. Hey, you might be heading to the grocery store this weekend. And if you do, we want to help you save some money.

CNN's T.J. Holmes is live right now in Sandy Springs, Georgia.

Hi there, T.J.

T.J. HOLMES, CNN CORRESPONDENT: Hey there, Gerri.

These are very simple things that we really don't keep in mind. Of course, many of us, we can cut back on a lot of stuff. You can cut back on your driving, you can cut back on maybe buying some designer clothes. You can cut back on a lot of stuff. But you really can't cut back on food.

You've got to eat. Everybody's got to eat. So when going to the grocery store, there are some things, very simple things to keep in mind.

So we went and we found what -- a consumer expert who has really been at this over 25 years and had her take us grocery shopping.

(BEGIN VIDEOTAPE)

HOLMES: You have made (ph) it to a single item. No groceries at all, no food, but still we need to be working right now and be mindful of what's going on.

What's happening here?

ROBYN SPIZMAN, CONSUMER EXPERT: Exactly. Before you put your foot in the door, you want to check out the store.

So the first thing I'm going to do is I'm going to look at the store circulars, see if there's any manufacturer coupons. And already I've hit the big one. Pages and pages of coupons right here ready for me to use.

And then I might look to see how long they are good for, which is all month. So now I know if I don't have time to use them now, I can use them later.

HOLMES: One of the first things you often see when you come into the store are...

SPIZMAN: Deals.

HOLMES: Deals. The signs. They often have these, various kiosks like this set up.

And you look through them, buy one, get one free. Two for this. Two for that.

These are important to stop at always. Why?

SPIZMAN: Why? Because, first of all, take a look at them, take a second. It doesn't mean spend all day.

HOLMES: All right.

SPIZMAN: I'm going to spend just a few minutes. But for example, this vinegar is two for $4. It's a name brand that I use all the time, and I'm saving $2.38 on buying two.

HOLMES: A lot of people's pantries are full of stuff. We don't even know what's in there.

SPIZMAN: I promise you that -- and most women particularly -- like we have 10 bottles of salad dressing. Not all of us, but some of us. And so you want to start looking at what are you really using and running out of so you don't have to run out every time.

The rule is look high and look low, because store brands and manufacturer, popular brands often will pay more for what is called a slotting fee. And according to the grocers that I've spoken to, they say that's why there's these brands in the middle. They pay for that right.

Seasonal is important because one, that means that the price is going to be better. And then it also means that the product is in season, so it's going to be juicier. You are going to get the value.

I think the goal is to be a conscious society, and also we can save money in the interim by buying smart. Sometimes buying less. And knowing what you are buying.

And there is great power in that, because you only have to learn it once. Once you know, you are ready to go.

(END VIDEOTAPE)

HOLMES: Yes. So, hopefully with some of those tips you are ready to go now.

And it's important. A lot of people think to shop in bulk is good, to buy it in bulk. Well, that's not always the case. Sometimes you just need to compare and save.

And Gerri, as we know, many people know you want to get in and get out. And people think time is money. But if you take that little time, you will save that money.

That's a big deal. And something that stood out to us here when she told us is shop in your own pantry. We all know, just everybody who is listening to this, stop and think of what you have in your pantry.

Your pantry is probably full, but you have no idea what is in there. And when you need to go grocery stopping, you don't stop and look in that pantry. And you've already got tons of things in there, and you are about go to the store and waste money. So that what she means by shop in your pantry first.

So, very little things to pick up there that can save you really hundreds and hundreds of dollars -- Gerri. WILLIS: Great ideas, T.J. And I guess you'll be back a little later in the show and we can talk more about grocery shopping.

Great job. Thanks so much.

VELSHI: You know, Gerri's right, we made a commitment to talk a lot about food prices on ISSUE #1. But some days I wish we didn't talk so much about it, because I really do get hungry from that stuff.

All right. Coming up next, on one of its biggest weekends of the year, how the city of New Orleans is starting to find its way back again.

And why students looking for summer jobs might have a hard time finding one this year.

Stay with us. You're watching ISSUE #1, right here on CNN.

(COMMERCIAL BREAK)

VELSHI: This is a big weekend in New Orleans -- Jazz Fest. Nearly three years after Katrina, New Orleans is starting to turn a corner, both in tourism and conventions, and in the well-being of the folks who live there.

CNN Gulf Coast Correspondent Sean Callebs has the story.

(BEGIN VIDEOTAPE)

SEAN CALLEBS, CNN GULF COAST CORRESPONDENT (voice over): If there is one thing New Orleans knows, it's how to throw a party. Now, two and a half years after the devastation of Katrina, residents are touting something else -- optimism.

MICHELLE POTASH, NEW ORLEANS RESIDENT: We went through a national disaster, and we were able to come back. And people cared about this city.

CALLEBS: The city is slowing putting back together what the storm and subsequent flooding tore apart -- fire stations, clinics, district police headquarters, playgrounds, and a municipal yacht harbor totaling $1 million in much needed improvements.

KERRY BRUNO, NEW ORLEANS RESIDENT: I'll believe it when I see it.

CALLEBS: Kerry Bruno says business is good at her chic uptown shop and that 99 percent of her customer are locals. Bruno says she has faith in New Orleanians, just not its city leaders.

BRUNO: I think things are moving really, really slow. The first year and a half, I thought, this is the beginning of a new era for New Orleans, but the last nine to 12 months, I think things have just kind of gotten stagnant.

CALLEBS: Sure, the city has Jazz Fest, the NBA All-Star Game, and world leaders from this year's Americas Summit. But it also has this. This is what it looks like today in New Orleans East.

Homes are a mess. Many neighborhoods still vacant. Schools and the one hospital still closed.

BARBARA BLAZIO, NEW ORLEANS RESIDENT: About, I think, maybe up here.

CALLEBS: Barbara Blazio had about six feet of water in her house, but she says the city is home.

(on camera): Are you optimistic the city is going to come back?

BLAZIO: Yes. I think it's going to take time, but I think it will.

CALLEBS (voice over): For a city where water did so much damage, it may seem odd that for many like Matt Skaer it also provides so much solace. Wednesday evening sailboat races are a time-honored tradition here. Skaer believes the city is coming back, but...

MATT SKAER, NEW ORLEANS RESIDENT: I don't really have faith in the government -- federal, local, whatever.

CALLEBS: After spending months renovating his flooded lakeview home and watching neighbors do the same to their patch of property, he puts his faith elsewhere.

SKAER: I kind of see it as little -- you know, little patches. And eventually all these little patches are going to kind of grow back together. Bu tit's not going to be because of the government.

(END VIDEOTAPE)

CALLEBS: Well, timing is everything. The music just started playing a short time ago, but nothing fuels the local economy here like tourism.

Long after the tents of Jazz Fest are packed up and gone, there still will be FEMA trailers dotting the landscape here and about 80,000 homes that remain in ruin. And people here remain extremely frustrated with what they say is a glacially slow pace recovery.

Ali, back to you.

VELSHI: I didn't hear a word he said, and I bet you he can't hear a word I am saying. But Sean Callebs always has a good story for us.

Thanks, Sean. Enjoy yourselves.

WILLIS: Well, the souring economy has more Americans feeling less financially secure. April's Consumer Confidence Index rating is out, and it is down big-time, now at 62.6. That is seven points below last month's score, and it's the lowest level recorded in 26 years. The report also finds nine in 10 Americans believe the nation is already in a recession. Up next, we'll head back out to T.J. Holmes, who is talking up folks in Sandy Springs, Georgia, about the strain of rising food prices.

And we want to answer your questions. Send us an e-mail to issue1@cnn.com.

ISSUE #1 rolls on after a quick stop in the CNN NEWSROOM.

(COMMERCIAL BREAK)

DON LEMON, CNN CORRESPONDENT: Hello, everyone. I'm Don Lemon, live in the CNN world headquarters in Atlanta. We'll have more of ISSUE NUMBER ONE in just a few minutes. Ninety seconds, as a matter of fact. But first we want to check what's happening now in the news.

We have some developing news to tell you about. This one out of California. And it's just in. It's in San Diego where sheriff's deputies are investigating a fatal shark attack, they tell us. These pictures courtesy of Metro Networks in San Diego. They're also reporting that it happened this morning on Solana Beach. A witness says a swimmer was fatally bitten below both knees. A very interesting story happening in San Diego. We will update you details to come at the top of the hour right here in the CNN "Newsroom."

In the meantime, a hail of bullets and an outcry of disbelief. Three New York police detectives acquitted on all charges in the shooting death of an unarmed man. News sparked outrage outside the Queens courthouse. Some shouted "murders." Sean Bell was killed just hours before his wedding. Two of his friends were wounded when officers fired a total of 50 shots. The judge who delivered the verdict says the police officers' accounts were simply more credible.

Senator Hillary Clinton's win in Pennsylvania apparently not having a whole lot of impact in Indiana. A new poll of likely Democratic voters, taken after the Pennsylvania vote, shows Clinton is still running neck and neck with Senator Barack Obama. Forty-eight percent of Indiana voters say they support Senator Clinton. Forty- seven percent -- Senator Obama, I should say, 48 percent and 47 percent for Senator Clinton. Five percent are unsure. The poll has a five-point sampling error. A poll taken in March also shows the two candidates in a dead heat with Clinton slightly ahead of Barack Obama. Indiana holds its primary on May 6th.

I'm Don Lemon. More news about that shark attack in San Diego at the top of the hour. Now back to ISSUE NUMBER ONE with Ali Velshi and Gerri Willis.

GERRI WILLIS, CNN ANCHOR: Welcome back to ISSUE NUMBER ONE.

We talk a lot about rising food prices so much for a reason. So many of you out there are worried about them. CNN's T.J. Holmes has been talking to some of those folks this morning. Let's head back out to Sandy Springs, Georgia.

Hi there, T.J. T.J. HOLMES, CNN CORRESPONDENT: Hey there.

Been talking to a lot of shoppers out here, Gerri, and I found plenty with unique stories. Linda Jenkins (ph) I've just found here from Fairburn, actually, has a really interesting story and a situation at her house because she has to buy double of a lot of things because she is a vegetarian, the others in her household are not. You're in a situation where you have to buy double a lot of times. How are you making that work and especially a lot of the organic stuff and things that you buy, that's more expensive anyway.

LINDA JENKINS, CONSUMER: Well, it's kind of difficult to make it work. It's expensive either way you look at it. The foods that I buy, of course, are more costly than the non-organic foods. I just have to watch and use a lot of coupons and watch the sales and just make sure that I spend wisely and don't buy in spontaneously.

HOLMES: We talked to a consumer expert out here a little earlier who was talking about, people just don't take the time. A lot of people think time is money, so I've got to get into the store and get out. They don't stop and pick up the sale papers and the coupons. That's something you certainly take time to do?

JENKINS: Absolutely. Absolutely. You've got to. Especially at double -- the buy one get one free items. And, you know, especially on cereal for the kids and things like that. You've just got to make sure you watch and, you know, it's challenging either way you look at it.

HOLMES: And tell people -- and give me that honest reaction. When I first saw you in the store and I said, hey, have you noticed the rising cost of food. What was your natural reaction?

JENKINS: Whew, yeah, absolutely. Absolutely. Like today I came in here for a sandwich, a vegetarian sandwich, and I noticed that they had the buy one get one free on the juice boxes and, you know, things like that. So it is tricky. I mean there's really no easy way about it.

HOLMES: And you had another system as well that you use. A lot of people, of course, we see at the stores and they fill up the basket, sometimes two. They do all the grocery shopping at once. But you have a reason for doing it in little spurts. Little things at a time and make several trips to the store. There was a logic to that.

JENKINS: Well, yes. I used to buy, you know, in bulk at one time. But, you know, when the stores have the sale, for example, on, I don't know, certain products they have sales, buy one get one free or what have you, when you go up to the cash register, they don't charge you as such. They charge you the regular price. So now I'm just watching more carefully, where, you know, as opposed to getting home and looking at my receipt and notice that they didn't give me the credit for the item that I bought and having to come back.

HOLMES: But then does that cost you more in gas, you have to make several trips to the store? JENKINS: Well, yes.

HOLMES: That's another problem.

All right, well, Linda Jenkins of Fairburn, we thank you for stopping. We know that she had ice cream in here. We told her we would buy her some more ice cream if it melted. But she stuck it out with us. Linda, thank you so much. Good luck in there.

But, Gerri, that's just one example of some of the stories we're hearing. A unique one to her household really because she's got to buy double a lot of stuff because she's a vegetarian and others in the house aren't. So everybody has their own situation. Everybody's trying to find a way to cope.

WILLIS: Well, T.J., thanks for that. You know I've got to ask you, it's so funny to see you in a grocery store. Are you making any changes to what you're doing? I mean, I usually see you going to restaurants, you know. I've been down to Atlanta. Am I telling a tale out of school here?

HOLMES: No. If I don't cook, then I don't eat, because there's nobody else going to cook for me. So, yes, I do go to the grocery store a lot. But I learned a lot today. I did learn a lot. Especially that part about shopping in your own pantry. I've got a pantry full of stuff, I don't even know what's in there. I need to start eating that.

WILLIS: T.J., thank you. We love having you on the show.

ALI VELSHI, CNN ANCHOR: Gerri, I just had a lovely dinner with T.J. here in New York the other day. Let me tell you, he looked pretty experienced as a restaurant eater. I think he just gave us a reason to expense the thing of ice cream that he's about to buy.

All right. There is one lower cost food bill solution you might not have thought of. Food co-ops. They can actually save you real money. Adam Schwartz of the National Cooperative Business Association joins us now from Washington, D.C.

Adam, thanks for being on the show.

You know, one of my producers gets his grocery from a food co-op and he works there. He has to do shifts. He moves boxes around and unloads boxes. I've got another one who works as a cashier. They cash people out. They do real work in exchange for what he says are better, fresher vegetables, more organic stuff and actually lower prices. Tell me a bit about these food co-ops.

ADAM SCHWARTZ, NATIONAL COOPERATIVE BUSINESS ASSOCIATION: Thanks very much.

The way cooperatives work is that they are a voluntary organization that are owned and controlled by the people who use it. Basically the members. And while it's true that there are some food co-ops that ask their members to voluntarily give of their time, spend a few hours in the store over the course of the year, others do not have that requirement. Most food co-ops do have a membership fee. But the way they work, because they are not-for-profit, community- owned organizations, they are able to contain costs.

VELSHI: All right. How do they work that out better than a normal grocery store would?

SCHWARTZ: Well, one of the major aspect of all cooperatives, whether it's a food cooperative, a credit union, electric co-op or housing co-op, is that they operate on an at-cost basis. So you're removing the profit motive. You don't have the outside investors, which put pressure on you to raise prices. There would be no incentive for a food cooperative to gouge pricing because that just goes back to the same member who own the business.

So you remove that incentive, then you're able to operate at a lower cost. And I think when you talk about the bottom line, you really need to expand what we talk about. It's dollars and cents, yes, but it's also the impact on the community and also the impact on the environment. What we are now referring to as the triple bottom line. So you need to factor in all those types of things.

VELSHI: Are they open to anyone, these co-ops?

SCHWARTZ: Yes. While members will receive the benefits of being a full member and have voting rights and ownership control, food co- ops certainly welcome people who are not members. It might be a good way of checking it out to see if it works for you.

Many food co-ops started out in the '60s and '70s, bringing organic produce and meat products to their customers because conventional stores simply would not do that. Now organic produce is readily available in all the major chains.

But what food co-ops now focus on is local control, being in the community. They're owned by the people who live in the community. And they try and source their product whenever they can locally so that you're not getting the high energy costs of transporting the goods across the country.

VELSHI: But you made one point that's interesting in. And that is, that in some cases, it might be because you want the quality of the food that they provide or you want to do something in your community. Some of them are for savings, but it's not a given, so you should check this out before you join a co-op.

SCHWARTZ: Absolutely. And the co-op response to the values of the members. Because you have a say in how the co-op is run, whether pricing is more important, whether impact in the local community is more important, or whether the environment is more important. All of those figure into how the co-op is run.

And as I say, they operate in all different types of businesses. In fact, there is purchasing co-ops, which bring together small businesses and helping to establish stores on main street so that they can compete with the larger chain stores too through this group buying. And credit unions work the same way.

VELSHI: It's a good discussion that we should continue to have.

Adam, thank you for being it to light to us.

SCHWARTZ: Oh, and may I just say one other thing. For further information, if you visit our web site, which is ncba.coop, we have a special landing page for people, for your viewers, so they can get more information about co-ops.

VELSHI: Very good. OK. Thanks very much for that, Adam.

SCHWARTZ: Thank you very much.

WILLIS: Interesting stuff.

Up next on ISSUE ONE, we'll tell you why some airfares are going up once again and how it's the 13th increase this year for one airline.

And we'll take a look at the state of summer jobs and why more students might not be able to find work this year.

Stay with us.

(COMMERCIAL BREAK)

WILLIS: Welcome back to ISSUE NUMBER ONE.

United Airlines is raising passenger fare prices on all domestic flights except Hawaii. They've been increased by as much as 5 percent. It's United's third price hike in less than two weeks. The carrier says it's to offset rising fuel prices.

VELSHI: Well, it's getting warmer out there. A sign that spring is in full swing. And a sign that high schools and colleges will be letting out for the summer pretty soon. Now summer job is a good old American tradition. It builds some structure into your life and it earns some cash for you at the same time. But those summer jobs for students might not be here this year. Shawn Boyer is the president and CEO of snagajob.com.

Sean, thanks for being with us.

You've done some real research on this. You've talked to a thousand companies about their plans to hire students this summer. The news is not great.

SHAWN BOYER, CEO, SNAGAJOB.COM: No, it's not great. So it's going to be tough, but it's not all doom and gloom too. The survey that we did, that you just mentioned, found that half of all hiring managers are not going to take on additional summer staff. So it's good in that, you know, half of them still are bad and half of them aren't.

VELSHI: Where are the good spots? Where are the places where they are going to hire?

BOYER: You know, the good industries to still look at are going to be restaurants. They tend to really gear up this time of year. Amusement parks, obviously. Any of the entertainment area. Movie theaters tend to really ramp up this time of year because you have blockbuster hits that are coming out. And bank teller positions, actually, end up being a really good fit too, just because you have so many people that are going out on vacation and they love to hire college students.

VELSHI: Any particular -- when you're a college student looking for a job, who are you competing with, every other college student? Does there need to be anything particular on your resume or the way you present yourself that's going to get you that edge?

BOYER: Yes, that's a great question. You know, one of the biggest things you have to compensate for when you're younger is that you don't have that much work experience. So what we really encourage people to do is really list out the extra curricular activities in which you're involved. And then if you've held any leadership positions, make sure that you really mention those. Whether it's a social group, if it's a sports club, whatever it might be, because the nock (ph) and its perception on students is that they're not as disciplined, they're not as responsible. So you want to be able to dispel that perception as much as you can.

VELSHI: What are people looking for in terms of working hours? Are they looking for full timers or people with flexible schedule in the summer?

BOYER: You know, great question. Four out of 10 hiring managers in the survey said that the flexible working schedule was the most important thing to them. So if you're coming in as a student, you want to tell them, look, I'll work whenever you want, if you want to really increase your chance of getting a job. So they're looking for full time, looking for part time, but the most important thing is making sure that you're flexible.

VELSHI: And any questions -- I don't know if you were able to get this from your employers, but when they want people to start looking for jobs? Are those jobs available starting now for applicants? In other words, do they want to hear from people now?

BOYER: They do. They absolutely do. So you want to start that job search right now. Seventy-six percent of the hiring managers said that they wanted to be able to fill those positions by May. So if you haven't started that job search now, go ahead and get started now. Do it this weekend.

VELSHI: Shawn Boyer, good to talk to you.

Shawn Boyer is the CEO of snagajob.com.

BOYER: Thanks, Ali.

WILLIS: Up next, it's the Help Desk. Answers to your e-mail questions. The address, issue1@cnn.com.

(COMMERCIAL BREAK)

WILLIS: Welcome back to ISSUE NUMBER ONE.

We don't want you to stress about your money. For that reason, we're answering your e-mails. Here to help me, we have three folks, experts in their own right, starting with Stephen Gandel from "Money" magazine. We have Gary Schatsky from objectiveadvice.com. And, of course, we have our very own Stephanie Elam, CNN correspondent.

All right. Let's get right to it. The first e-mail comes from Niall who says, "I've been renting for a number of years now and think it's about time I start investing my money in a home. I live in Seattle and am torn between purchasing a house or a condo. What are your opinions of one versus the other?"

Now I looked onto Seattle a little bit because I was curious about the housing market there. It's going pretty well. It's one of the few markets in the country that's doing well. But houses are expensive.

Gary, what do you think?

GARY SCHATSKY, FINANCIAL ADVISER: Yes, absolutely. First of all, it is one of the better markets. The question between a home and a condo is really more -- it's not as much of a financial question as it is a lifestyle question. Do you want to be dealing with repairing it or do you want the ability to call somebody to do a lot of the maintenance on the property. Condos in many markets, I am not familiar with Seattle, have had an over developed -- there's been a lot of growth and there's been a lot of pressure there. So you might get a better deal on a condo if you don't mind having a neighbor that's three inches away.

WILLIS: Yes, there's some bargaining going on for condos.

STEPHEN GANDEL, "MONEY" MAGAZINE: And you might be able to get into a condo for a little less, too, than a full house and that leaves more of your money to invest in the stock market, which will do better over the long haul.

WILLIS: And that's what you would vote for. OK. Well, I love that.

OK. Let's go to Usha in Maryland's e-mail. She says, "I've been putting away for retirement consistently for the past several years and expect to be working for at least 15 more years. I want to buy my first home and know I need to save for a down payment. Would it be wise to skip adding to my IRAs for two to three years and just save for the down payment to reach my goal of home ownership, resuming additions to my IRAs once I have bought my home?"

Stephen, what do you think?

GANDEL: Well, it depends how much is in your IRA. You're going to need a lot for retirement. Most people don't realize this, but you need about 10 to 20 times your annual income in retirement. And 15 years is not a lot to save that money. So my advice would be, continue to be renting, keep focused on saving for retirement.

WILLIS: I like that.

OK. Now, Stephanie, you're not getting off the hook here. This next one is for you. Mary in Minnesota asks, "with the increase in gas, I would like to go to American oil producers and not foreign ones. Where can I get a list of American oil producers?"

We get an oil question every day.

STEPHANIE ELAM, CNN CORRESPONDENT: Yes, I'm turning into a -- well, I won't say that because that doesn't sound good, but I do sound like the queen of oil lately when we talk about it.

But the thing about this is that the idea here -- I think what she's getting at -- is that she wants oil that's produced here in the United States. Now there is some that is produced. And you can find those companies out there.

However, our demand in the United States is more than what we can produce here. So when you go to get your oil, chances are some of what you're burning off there is coming from overseas as well. So it's going to be very difficult to just find a U.S.-made oil.

WILLIS: I love that answer.

SCHATSKY: Test way to buy more U.S. oil . . .

WILLIS: It all gets mixed up, right.

ELAM: It's all together. You don't know which part.

SCHATSKY: The best way to buy U.S. oil is to cut consumption and then more of our consumption will be U.S.

WILLIS: Well, that's a nice, big macro answer. I like that.

OK. Willie asks, "is there a safe place to move your money? I have an IRA account and I am losing money fast." Willie says he's losing lost "$30,000 in two months. What should I do?"

Gary, weigh in.

SCHATSKY: Well, first of all, if you lost $30,000 in two months, one of two things have happened. Either a, your IRA is tremendous, or, b, your selection has been abominable. You know, you can certainly -- people should be looking at diversifying. Look at the more conservative investments. A short-term bond fund. They've run positive over the last two months, and the last two years.

WILLIS: There are real yields there right now.

SCHATSKY: There are some great opportunities. And I think people have been kind of swinging from the fences in their IRAs and they should not be doing it.

WILLIS: All right. Let's move on to Edgar in Florida who asks, "what happens with my credit record after a foreclosure or short sale on my home? Is one better than the other?"

What do you think, Stephen?

GANDEL: A short sale is slightly better for your credit than a foreclosure. They're both better than a bankruptcy. And a short sale is probably a little better way to go because you might be able to convince your bank to sell the house at a little more so you'll get some walking money. So you'll get the investor to pay a little more than what the bank will be willing to take. You'll get to be able to take away the difference. You'll get some walking money. Pay for your rent for the next few months.

WILLIS: All right. We love that answer. And we love this panel. Great job, guys. Stephen, Gary, Stephanie, thanks so much.

Ali.

VELSHI: Thanks, Gerri.

It's the curse that was heard around the world. And now, in the end, it's actually made a whole lot of money for charity. We're going to tell you about it when we come back. You're watching ISSUE NUMBER ONE right here on CNN.

(COMMERCIAL BREAK)

WILLIS: Hey, remember that Boston Red Sox jersey that was hammered out of the new Yankee Stadium under construction? You remember that? It was left by a Sox fan trying to hex the Yankees -- see the (INAUDIBLE) -- which, of course, would never happen. What -- I'm reading, this is the best team in baseball?

VELSHI: I was waiting for you to read that.

WILLIS: You are so bad.

VELSHI: I so wanted you to read that.

WILLIS: You know (INAUDIBLE).

VELSHI: As Gerri was going to say, that would never happen to the best team in baseball, the Yankees.

WILLIS: Please.

VELSHI: Go ahead.

WILLIS: I'm afraid to read this. What else do you have in here for me?

VELSHI: The home team donated the David Ortiz replica jersey to a charity that auctioned it on eBay. WILLIS: OK. Well, that was good. And the winner is Kevin Mann, a Massachusetts car dealer who successfully bid just over $175,000? That's a lot of money. The money goes to the Jimmy Fund, a Boston area charity helping cancer patients.

VELSHI: I hope you didn't mess with my story here.

The Philadelphia 76ers are in the playoffs, which, as our director William, a big Sixers fan, will tell you, is a rare event these days. So to celebrate, Lukoil, a Sixers sponsor, is selling gas for 76 cents a gallon today for 76 minutes at a station in the older section of the city, in northern Liberty. That's $2.80 below the national average. But before you jump into your car, if you live in that area, the 76 cent deal is going on right now. It started at noon Eastern. It ends in about 17 minutes.

WILLIS: Shoot. OK.

The economy is issue number one and we here at CNN, we are committed to covering it for you. ISSUE NUMBER ONE will be back here next week every day at noon Eastern.

VELSHI: Time now to get up-to-speed on other stories making headlines. CNN "Newsroom" with Don Lemon and Fredricka Whitfield starts right now.

DON LEMON, CNN ANCHOR: Gunned down on his wedding day in a chaotic run-in with New York police. Three cops go on trial. Three cops walk out of court free men.