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Issue Number One
Obama on Two-Week Economic Tour; Washed Out Crops in Wisconsin Threaten Global Food Shortage; New York Fast-Food Chains Required to Show Calorie Consumption
Aired June 12, 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 ANCHOR: Figuring out the cost of the war in Iraq and the impact on the economy here at home. We'll show you how the candidates differ on the energy issue.
Plus, two reasons your food prices could soon go up.
And why your kid's Sony PlayStation, well, it may be costing you more money than you think.
ISSUE #1 is your economy. ISSUE #1 starts right now.
Hello, everyone. This is ISSUE #1.
I'm Gerri Willis. Ali Velshi is off today.
From ISSUE #1 headquarters, right here to the CNNMoney.com newsroom, we are all over the stories that matter to you.
And we begin with yet another record price at the pump. Today's petrol pain quotient -- call it gas prices -- now at $4.06 a gallon, up a penny since yesterday. It's the sixth consecutive increase and the fifth straight record.
Coincidentally, another fuel surcharges is in the wings of American Airlines. The carrier is adding another $20 per domestic roundtrip ticket to help offset spiraling fuel costs. United and Continental have matched.
And the good news amid the bad -- there is some -- retail sales last month surprisingly better than projected. The Commerce Department reporting a healthy 1 percent rise in retail sales as American taxpayers cash and spend those tax rebate checks.
Issue No.1 is America's economy, but the war in Iraq is costing a whole lot of money. And some are saying it's creating problems right here at home.
CNN's Kathleen Koch joins us live now from Washington with the very latest -- Kathleen.
KATHLEEN KOCH, CNN CORRESPONDENT: Gerri, according to the Pentagon, at last count, the U.S. has spent roughly $406 billion on the war in Iraq, but witnesses today told Congress' Joint Economic Committee that the real costs to society are actually much higher. The governor of Montana talked about how his state's veterans' disability compensation claims are up 41 percent since the war started, and how his request to have National Guardsmen and helicopters brought home to help during his state's fire season was ignored.
(BEGIN VIDEO CLIP)
GOV. BRIAN SCHWEITZER (D), MONTANA: We got to August and September when our fires were burning, but they had actually deployed more of our National Guard to Iraq, not less. And we still didn't have our Black Hawks home and we didn't have our crews to fly CH-47s.
(END VIDEO CLIP)
KOCH: Well, the committee asked the Office of Management and Budget's director, Jim Nussle, to come and testify for the administration, but he declined. Chairman Senator Chuck Schumer said that Nussle and the response that he sent the committee declined in part because he said, "There is no price tag that can be put on the immeasurable value of preventing terrorist attack."
(BEGIN VIDEO CLIP)
SEN. CHARLES SCHUMER (D), NEW YORK: I guess what OMB is saying is, even we spent the entire budget on the war in Iraq and spent nothing on anything else, that would be OK, because there's no price tag. Appalling.
And I'm going to just submit -- is there a price tag on curing serious diseases like diabetes or cancer? Is there a price tag on educating our children or keeping them healthy? Those have price tags but the war in Iraq doesn't? This is voodoo economics of the highest order.
(END VIDEO CLIP)
KOCH: Now, since the war will not be over on President Bush's watch, one lawmaker today actually suggested that Senators McCain and Obama be invited to testify about how they would address the war's hidden costs to society -- Gerri.
WILLIS: Well, Kathleen, our GIs, our vets, was there any discussion of the costs that they are incurring?
KOCH: Yes, there was, as a matter of fact. There was some testimony, for instance, that foreclosures in areas around military bases are 37 percent higher than in the average neighborhood.
And then we heard moving testimony from a reservist. He talked about how it took him 10 months after returning from Iraq simply to find a job because he said he and many reservists and many vets encountered this. Many employers he said just have a hard time seeing how military experience translates in the civilian world. So again, the costs, the hidden costs, to mount.
WILLIS: Hidden costs.
Well, Kathleen Koch, thank you for that report.
KOCH: You bet.
WILLIS: The war in Iraq is having an impact on the economy right here in the U.S. Both candidates for president are spending a good amount of time talking about issue #1. We'll get to what Senator John McCain is up to in just a bit, but for now we focus on Senator Barack Obama, in the middle of a two-week economic tour.
CNN's deputy political editor Paul Steinhauser is live right now in Washington with more.
Hi there, Paul.
PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: Hi, Gerri.
Barack Obama, about one hour from now, is going to be holding a town hall in Wisconsin, and he's going to be emphasizing his tax proposals. And he's going to try to portray himself as somebody who's helping out middle class families and lower-income Americans, and he's going to try to portray John McCain as somebody who is not doing just that.
This is a part, as you mentioned, of his two-week tour on the economy. Today he is going to be meeting with a series of families, and he's going to be saying that his tax proposals will give them more relief and that John McCain's tax proposals will not. And it was just two days ago that John McCain was talking about his plan right here in Washington to a group of small business owners.
John McCain is trying to do just the opposite. He's trying to say that Barack Obama is another tax-and-spend Democrat who is basically going to take us back to the 1960s and '70s.
WILLIS: Wow. Paul, so, you know, when you look at these two, the biggest thing for a lot of voters out there is the issue of taxes. How do the two candidates line up? Do they have big differences?
STEINHAUSER: They do. This is one issue among a lot of issues where they don't see eye to eye at all. So let's take a look at some of the places where they definitely don't agree at all.
First of all, the Bush tax cuts, they are supposed to expire at the end of this decade. John McCain is in favor of making almost all of those tax cuts permanent. Barack Obama wants to end most of those tax cuts for families making over $250,000 a year.
The capital gains tax, John McCain wants to keep the rate at its current 15 percent. Barack Obama wants to increase it up to 28 percent.
And corporate taxes, John McCain wants to cut the rate from 35 percent, maybe down to as little as 25 percent. Barack Obama doesn't want to make any changes in the rate, but he would like to close some of the corporate tax loopholes. Gerri, this is one issue, again, among others where these two candidates definitely don't see eye to eye, and it gives the voters a clear choice.
WILLIS: Well, a clear choice. Come November, very big differences when you hit that ballot box.
Paul, thank you for that.
STEINHAUSER: Thanks.
WILLIS: Sky-high gas prices are one of the many economic issues voters care about, like a lot in this election. But what will it take? What will it take to get some relief at the pump?
That brings us to today's "Quick Vote." And this is where you actually get to vote right now.
Poppy Harlow is from CNNMoney.com with today's question -- Poppy.
POPPY HARLOW, CNNMONEY.COM: Hey, Gerri.
Well, folks, the surging oil prices, another record today, as you heard, for gas prices. Some people, including Senate Republicans, say we just need to drill for more oil right here in the U.S., namely in Alaska.
Do you agree? Here's our CNNMoney.com "Quick Vote" question today. Should oil companies be allowed to drill and protect the wildlife areas to increase oil supplies? Yes or no?
Please weigh in on CNNMoney.com. We'll bring you the results a little later -- Gerri.
WILLIS: That's going to be an interesting question.
All right, Poppy, stick around. We have your "Energy Fix" in just a minute.
Plus, John McCain versus Barack Obama on energy. We're going to break it down for you and let you know where each candidate stands.
Plus, could the electric car solve all the gas price problems?
We'll tell you more about that. ISSUE #1 rolls on after this.
(COMMERCIAL BREAK)
WILLIS: Welcome back to ISSUE #1.
It is time now for your CNN "Energy Fix." CNNMoney's Poppy Harlow is back with more.
OK, Poppy.
HARLOW: Hey, Gerri. Well, first of all, folks, a little good news out there. Oil prices are easing just a bit today, down more than $2 right now from yesterday's close. Gas prices though, you heard it, a record high, $4.06 per gallon. But today we're going to talk about another energy expense, the electric bill.
All right, Gerri. Pop quiz for you. What takes more electricity to run, a refrigerator or a PlayStation when it's on?
WILLIS: I have to tell you, you know, I read the tease at the top of the show. I'm cheating and I'm voting for the PlayStation.
HARLOW: OK, you are right. And it's not even close.
According to a study by the Australian consumer Web site Choice, it is the PlayStation by far. Can you believe that?
In fact, if you left your PlayStation on year round, it would use five times the energy of a refrigerator. Choice says that you could save up to $250 a year on your electric bill if you just turn it off when you are not using it.
That's enough money to pay for 60 gallons of gas, folks. That's a lot of savings.
Now, the site says the Xbox 360 isn't far behind. It uses nearly as much energy as the PlayStation.
So, here's how to solve the problem.
Leave your electrical equipment in standby or sleep mode. Better yet, turn it off or unplug it altogether when you're not using it.
Activate the power-saving mode on your computer, and upgrade your computer monitor to an LCD. They're twice as efficient as those old clunky ones.
And by the way, Choice says Apple's iMac uses just two-thirds the energy of a PC.
Now, unlike computer monitors, Choice says flat-screen TVs, those are real energy hogs. So they may look nice, but they're using a lot of energy.
Plasma TVs use four times the energy of those old tube-style TVs. The cost of a plasma is more than $230 a year if you leave it on, versus just about $50 for the tube TV.
So, this isn't just a good energy fix for your electric bill, it's also good for the environment. So, try it out. Let us know what you think, CNNMoney.com. We are following it from every angle here on the "Energy Fix" desk -- Gerri.
WILLIS: Unplug the PlayStation.
HARLOW: Unplug it. WILLIS: That is the advice from you.
Thank you, Poppy.
HARLOW: Sure.
WILLIS: This gas price thing, you know, it's got a lot of us looking for answers anywhere we can. Some of us are not driving, some are trading in SUVs for hybrids, and some are looking in a completely different direction, towards what they call electric cars.
CNN's Tom Foreman is checking them out right now in Washington.
Hey, Tom.
TOM FOREMAN, CNN CORRESPONDENT: Hey. How you doing?
You know, you can unplug that PlayStation and maybe, maybe in a few years plug in your automobile. Washington is all abuzz this week at the special conference here by the Brookings Institution and Google.org to talk about the future of electric cars and electric hybrid cars.
The Department of Energy just today announced a $30 million incentive program to help in the development and research of electric and hybrid cars over the next couple of years. And we are going to look later on in the show at some of these vehicles just like this.
The simple truth is, we have heard about them for years and years, but advancements in battery technology are making it such that you may actually be able to look at full electric cars on a showroom floor near you not terribly far in the future. And they may be able to go a lot further than you ever thought an electric car could go and charge up a lot faster.
Those were the two big sticking points on this, and technologically, they are very close to be solved. And there is one on the road that is just a rocket. You're going to want to check that out in just a little bit -- Gerri.
WILLIS: Tom, I have so many questions, I just want to ask all of them. But we're going to come back to you later in the show, and we're going to have more on these electric cars.
Very exciting stuff. Thank you.
FOREMAN: We'll be here.
WILLIS: You've all told us that issue #1 is the economy, which is why we do this show every day. And as we get closer to the presidential election, we want to make sure you get a complete breakdown of every economic issue to help you decide who you want to vote for.
Today we're talking energy. Joining us now, CNNMoney.com's Steve Hargreaves. Thanks for being here, first off.
You've got some great information for us today. Let's just start out with where the candidates basically in broad terms stand.
STEVE HARGREAVES, WRITER, CNNMONEY.COM: Well, Obama really wants the government to take a more active role both in developing renewable energy and in promoting conservation. McCain is relying on much more of a free market approach.
WILLIS: OK. Basic differences, left, right, Republican, Democrat, they're really classic versions of the two. Let's talk about some specifics here, though.
What about gas tax rebates? There's been some discussion of that.
HARGREAVES: Yes, there has. Obama wants to put a windfall profits tax on oil companies and use that money to give to low-income people. McCain doesn't really have any type of plan like that. Over the long haul, he wants to tax polluters and use that money as a rebate. But that would be several years out.
WILLIS: OK. That's an interesting difference.
You know, a lot of people out there talking about how much the price of oil is actually due to speculation, not the fact that it's a declining available commodity.
What do these two candidates have to say on what we should do to limit the role of speculators, if anything?
HARGREAVES: Right. I mean, obviously, it's a hot topic right now. They both are calling for more information, more studies. They want the government to look into the matter more. But as of now, neither one of them are calling for any big changes.
HARGREAVES: So no big changes there, though.
What about drilling in unpopular places like ANWR and big parks across the country? And Alaska? There are big differences there, right?
HARGREAVES: Well, no, not really. McCain wants some limited drilling offshore, but neither one of them want to open up Alaska. And if you look at the amount of oil that would come, you know, it's only about one or two million barrels a day. You know, on a worldwide consumption of 85 million barrels, it's some, but it's not a whole lot.
WILLIS: OK. So very similar there.
All right. What about increased funds for renewable energy? Everybody is talking about green this, green that. What about these two candidates?
HARGREAVES: Right. That's really the big difference.
McCain wants to -- Obama, excuse me, wants to essentially tax companies to pollute. And he would use that money to fund research into renewable energy and conservation. McCain would limit the amount of greenhouse gases that companies can send into the atmosphere, but he would not get the government as directly involved.
WILLIS: OK. Well, great breakdown.
Steve, thanks for your help today. We appreciate it.
HARGREAVES: You're welcome.
WILLIS: All right. Coming up, the latest on the deadly tornadoes from the CNN "NEWSROOM."
Plus, why farmers are having a tough time this week in the Midwest and what it could mean for your food.
And why a new mandate for some fast-food restaurants could have you thinking twice before ordering that burger, fries and a shake.
(COMMERCIAL BREAK)
WILLIS: Mother Nature unleashed its fury this week with devastating floods in the Midwest. You probably saw them.
While the waters recede and towns recover, some farmers safe an uncertain future. Much of the crops in Wisconsin has been washed away, and with the threat of a global food shortage and sky-high food prices here at home, some are fearing disaster.
Susan Roesgen reports.
(BEGIN VIDEOTAPE)
SUSAN ROESGEN, CNN CORRESPONDENT (voice over): A gentle breeze blows across Jerry Bradley's farm in Sun Prairie, Wisconsin. But what looks like a pond in the distance is really acres and acres of his crop under water.
JERRY BRADLEY, FARMER: This is the worst. Dad and I were driving around the other day. This is the worst ever.
ROESGEN: The Bradley family has farmed this land for 150 years, soybeans and corn, but this year they can't even get into the fields to spray the weeds. The ground is so soft from all the rain, that the tractors would sink. And what's the point when a quarter of his crop has already drowned?
BRADLEY: The ones that are in water, they're dead. They're gone. Anything that's under water that you see, if it's over 24 hours, is dead. It will not survive.
ROESGEN: Across the Midwest, it's much the same. Flooded fields means a smaller harvest, which will mean even higher food prices for the rest of us. Who knows how much higher?
BRADLEY: Until you roll that harvester across the field, you don't have a clue. It is what it is. You can't control the weather. You can try and control the other elements, but you can't control the weather.
ROESGEN: There is only one solution.
BRADLEY: Hot weather, you know, wind, sunshine, stop raining.
ROESGEN: And unless it does stop raining, and soon, the farmers' troubles this summer may be yours before the year is out.
(END VIDEOTAPE)
ROESGEN: And look at it now, Gerri. It is still coming down. It's supposed to be raining even harder here in Wisconsin later tonight.
We talked about the prices for food at harvest time. Already, yesterday, corn reached a record high per bushel, $7.56. Soybeans are at a record high.
So, Gerri, this fall, when we eat our corn flakes and have our soy lattes from Starbucks, it is going to cost us.
WILLIS: And my heart goes out to the farmer. You can't control the weather. He's absolutely right.
Susan, thank you for that.
From food loss to food safety, that's the focus of a hearing on Capitol Hill today. A particularly interesting topic considering this week's tomato salmonella scare. It's all about the FDA food production plan. Now, you may not know what it is, but it could raise the cost of your food.
CNN's Elizabeth Cohen joins us now with the latest -- Elizabeth.
ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: Gerri, this hearing on Capitol Hill, a lot of people are paying attention because there are more outbreaks of food-borne illness than there have been in the past. And a lot of people are asking, why is that?
Let's take a look at what outbreaks there have been just in the past two years. I'm just going to name some of them. This isn't even a complete list.
For example, there have been recalls of food like Veggie Snacks. There have been recalls of food like the tomatoes that we saw, frozen pizza, cantaloupe, chicken pot pies. Again, that's just some of them I have here in front of me, some more food that has caused problems in this country.
Again, all this in just the past two years. E. coli in spinach, you can see that right there. That made some 200 people sick. And then also, we are talking 21 million pounds of beef recalled due to E. coli. And peanut butter, 625 cases of salmonella.
Now, there's a lot of talk about making companies do more to fight food-borne illness. Some people say, well, that could raise the price of food, but others say, look, not doing something is way more expensive -- Gerri.
WILLIS: Elizabeth, you know, we have regulators. I think it's called the Food & Drug Administration.
COHEN: Right.
WILLIS: Where have they been?
COHEN: You know what? A lot of people today on Capitol Hill extremely critical of the FDA. Let's take a listen to one consumer advocate.
(BEGIN VIDEO CLIP)
DR. JEFFREY LEVI, EXEC. DIR., TRUST FOR AMERICA'S HEALTH: The current outbreak of salmonella associated with tomatoes is a perfect demonstration of our need for a modernized food safety system. It shouldn't have taken so many people getting sick from salmonella poisoning for the government to start taking nationwide action to protect the American people, but it did. Not only has it taken us too long to recognize the threat, we are still struggling to find its source and we should have had systems in place to prevent this in the first place.
(END VIDEO CLIP)
COHEN: The FDA is expected to testify later today on the Hill -- Gerri.
WILLIS: Well, let's -- drill down a little bit more into this criticism. Where exactly have they gone wrong?
COHEN: Right. For example, the General Accounting Office says, look, the FDA needs to get tougher with other countries like Mexico that export lots of produce to the United States. That's just one example.
The FDA says, look -- I mean, the GAO, the General Accounting Office says, look, we have made many, many recommendations to the FDA and they have done very few of them. The GAO says...
WILLIS: Wow.
COHEN: ... we've made 34 recommendations to make our food supply safer, and the FDA has done seven. That's not a very good fraction.
WILLIS: No. Well, Elizabeth, that's a great report. And we appreciate the information. It is outrageous.
COHEN: Right. That's what -- many people say that. That is true.
WILLIS: Thank you, Elizabeth.
COHEN: Thanks.
WILLIS: All right. We all know that fast food isn't good for you, but if you are like me, you like to eat it anyway. Would it stop you if you knew how many calories you were consuming each and every time? Well, fast food chains in New York now have to tell you.
Richard Roth has the story.
(BEGIN VIDEOTAPE)
RICHARD ROTH, CNN CORRESPONDENT (voice-over): What's new on the menu at fast food restaurants in New York City? Calories, and they're everywhere. The city has now given chain restaurants an order. Put up calorie counts on menu boards for customers.
THOMAS FRIEDEN, NYC HEALTH COMMISSIONER: The food that people get in chain restaurants has lots of calories. Many more calories than people realize.
ROTH: Some change such as Chipotle Mexican Grill had complied.
UNIDENTIFIED FEMALE: It's nice to know the calories that are involved.
UNIDENTIFIED FEMALE: I think it definitely affects what you order when you can see like what you're putting into your body.
ROTH: Some guests have no time for food for thought.
UNIDENTIFIED MALE: To be honest with you I think it's ridiculous -- the calorie count, because I don't really look at calories. I just -- I want to eat fast food, I like to go eat it.
ROTH: Chipotle puts up a range of calories for its choices because of different ingredients.
RON DIAMOND, MANAGER, CHIPOTLE: There's been no impact on our business as far as we're concerned. It's business as usual.
ROTH: Subway also has calorie counts. Jessica Chamberlain (ph) is glad to see them.
UNIDENTIFIED FEMALE: Absolutely. It makes it much easier to adhere to the Weight Watchers program or, you know, any diet.
ROTH: But some franchise owners of McDonalds and Dunkin' Donuts are ignoring the directive.
CHUCK HUNT, NY STATE RESTAURANT ASSOCIATION: There's a much more intelligent way to address obesity as a problem, and it really should start in the home.
ROTH: The city disagrees and will start fining restaurants next month if they don't post the calories.
UNIDENTIFIED MALE: How many calories are in that iced coffee?
UNIDENTIFIED FEMALE: To be honest, I really don't want to know.
(END VIDEOTAPE)
ROTH: San Francisco and King County, near Seattle, have also instituted menu counts which will begin shortly. New York and California, the state legislatures are looking very closely at what New York is doing, Gerri, and they may follow suit.
The restaurants are fighting this. There's an appeal in court today here in New York City.
GREGORY: Richard, you know, I hate to see the numbers. I would rather not see them, but I suppose there's a good argument for it. But why -- you know, how can restaurants say they oppose this law? On the basis of what?
ROTH: Well, they say that there's no proof that menu calorie counting will cut obesity rates. They also say that, look, Diet Pepsi has fewer calories than low-fat milk. And which is healthier for you? They asked those types of questions.
They don't like being dictated to, but in New York, believe me, this city is changing lifestyle laws, whether it's smoking, noise. They're moving in that direction. Sometimes it doesn't always succeed.
WILLIS: Richard Roth, you are right about that. Thank you for that story.
Up next, new indications on just how many Americans are losing their jobs.
And an up-close and personal look at the electric car and if one might be in your future.
You're watching ISSUE #1.
(COMMERCIAL BREAK)
GREGORY: More bad news from the U.S. Labor Department today. The number of people filing for unemployment took an unexpected jump last week to the highest level since March of this year. New applications, that is, for jobless benefits rose to 384,000. An increase in 25,000 from the previous week. It's a bigger gain than was projected and indicates, well, the U.S. labor market remains tough.
Time now to get you caught up on the latest headlines. Brianna Keilar is in the CNN "Newsroom."
Brianna.
BRIANNA KEILAR, CNN CORRESPONDENT: Thanks, Gerri.
Deadly tornadoes tear across the Midwest, hitting a Boy Scout camp in Iowa and several towns in Kansas. These are new pictures from the twister that slammed into the Little Sioux Scout Ranch in Iowa. Officials say four scouts, ages 13 and 14, were killed. Dozens more people were injured.
Now we're also getting new pictures from tornadoes that touched down in Kansas. At least two people were killed there. In Chapman, Kansas, dozens of homes were destroyed and damage is extensive. Storms also damaged several buildings at Kansas State University in Manhattan.
To much water in the Midwest, though, and there is more. Up to five inches of rain fell in west central Iowa. Homes were evacuated in Cedar Rapids and parts of downtown are under water. Meanwhile, commercial shipping is banned along the upper Mississippi River in Iowa, Illinois and Missouri. The river is expected to be closed for two weeks. One Iowa-based barge line estimates his company -- a man who manages that company estimates that his company will lose about $40,000 a day because of this shutdown.
In the meantime, Reynolds Wolf is in the Weather Center with more on the tornadoes.
Reynolds.
REYNOLDS WOLF, CNN METEOROLOGIST: Brianna, what a nightmare. We're covering the tornadoes. We're covering the flooding. Let's touch the flooding very quickly.
Right now the heaviest rainfall now moving near Davenport, back up towards Green Bay and just to the west of Milwaukee. Well, we can anticipate all these areas covering some 13 states that are under watches or warnings in terms of flooding. We can expect more precipitation as we get closer into the weekend.
Now in terms of tornadoes, yes, we've got another round of tornadoes possible in the forecast. A slight risk today, but then maybe upgraded later on, possibly to a moderate risk, for spots like say Milwaukee, Chicago, maybe even into Kansas City. Places like St. Louis, Wichita, and Tulsa. All through parts of the central and southern Plains, into the western half of the Great Lakes and the Midwest. It could be a very, very nasty day.
That's the latest on your forecast. Let's send it back to you at the news desk.
KEILAR: Thanks, Reynolds. We'll be getting more from you at the top of the hour.
And the war on terror and a pivotal ruling for foreign suspects held in U.S. custody abroad. The U.S. Supreme Court ruling this morning that suspected terrorists can challenge their detention. This is considered a major blow to the Bush administration. The ruling could affect almost 300 prisoners being held by the U.S. military at Guantanamo Bay naval base in Cuba.
Homes destroyed, lives lost. What can you do to be prepared when bad weather strikes your area? Retired Lieutenant General Russell Honore, the man who led the rescues and cleanup after Hurricane Katrina, he will join us in the next hour of the "Newsroom." He's going to show you how to keep your family safe.
And we're also awaiting a news conference with the governors of Iowa and Nebraska on that tornado that hit a Boy Scout camp.
I'm Brianna Keilar. I'll see you right back here in the "NEWSROOM" at the top of the hour. But let's head back now to Gerri in New York.
Gerri.
WILLIS: Thank you, Brianna.
It is game on for the two presumptive nominees and both are busy on the campaign trail today. Just a short time ago, Senator John McCain spoke in Boston. Dana Bash, part of the best political team on television, joins me now with details.
Let's get into it. What did he say?
DANA BASH, CNN CONGRESSIONAL CORRESPONDENT: Well, you know, it's interesting. Obviously, the economy. That's, look behind us, is issue No. 1. And John McCain has recognized that very quickly on the campaign trail, talks about it all the time. Talked about it first, even though he believes if he can win, he can win on national security.
What he was asked about today was something that really makes him different than Barack Obama when it comes to the economy, and that is his idea of how to reduce dependence on foreign oil. And from John McCain's perspective, it is increasing nuclear technology. Listen to what he said.
(BEGIN VIDEO CLIP)
SEN. JOHN MCCAIN, (R-AZ) PRESIDENTIAL CANDIDATE: Well, I think we need tax credits for the development of alternate energy. We need to invest in pure research and development. What we also need very badly, nuclear power. We're not going to attain energy and dependence, nor will we reduce greenhouse gas emissions successfully without developing rapidly, rapidly nuclear power plants all across this country. In Europe, it takes five years to build a nuclear power plant. In this country, the estimate is that it's as long as 10, and maybe longer.
(END VIDEO CLIP)
BASH: Now, Gerri, he talks about this almost every stop that he makes, particularly in the town halls that he participants in. Talks about the fact that you look across the pond at France and he says that about three quarters of their energy actually comes from nuclear technology. He realizes and recognizes that it is very controversial, particularly in the environmental community, because there's a large belief that it's simply not safe.
You remember almost 30 years ago, Three Mile Island in Pennsylvania. But, you know, he says that this is his way to, again, reduce dependence on foreign oil. And it is a difference between his plan and Barack Obama's plan, because it's not in Senator Obama's plan.
WILLIS: Well, you know, interesting, I know, he's also talked about the gas tax holiday. Now this is to appeal to consumers. Have anyone (ph) mentioned again? Have we heard about it any more?
BASH: You know, it is kind of perplexing, I have to tell you, because the beginning of this week when, you know, you could not look anywhere in the media without seeing or hearing a story about the sky high gas prices, his advisers told us, you know what, he's going resurrect and talk non stop about this idea, the gas tax holiday, because, again, it's an area where they think it makes him different from Barack Obama, because he's opposed to it, and they think -- they said that that's a way to show, you know, Barack Obama is for inaction. He's not helping people, particularly those who need it most, low-income Americans, for example, and he believes that this could help him.
But, you know, we followed him to several public events, his main campaign events. He hasn't talked about it very much this week at all. He had an entire economic speech and didn't discuss it. He's talked about it a little bit in interviews, but again, it's a little bit perplexing since his advisers do think it's a winning argument for him. We haven't heard it much.
WILLIS: Interesting.
Dana Bash, great information. Thank you so much.
BASH: Thank you.
WILLIS: We appreciate your help.
We have new indications today on how Americans feel about the candidates and the economy. CNN's senior political analyst Bill Schneider, part of the best political team in television, is live right now in Washington.
Hi there, Bill.
WILLIAM SCHNEIDER, CNN SENIOR POLITICAL ANALYST: Hi, Gerri.
Well, the economy is issue No. 1. So we asked people in our new poll, which candidate do you think would better handle the economy? And the advantage goes, in this poll, to Barack Obama. Fifty percent say Barack Obama. He's six points ahead of John McCain. Forty-four percent say John McCain. It's pretty close. But that's clearly Obama's issue. Why is the economy paying off for Obama? They're both talking about their economic ideas. Principally this. The Democrats have the advantage on the economy over the Republicans. People see Obama now as the Democratic nominee and he would be different from Bush.
What people are looking for on the economy, on running the economy, is someone who would do it differently from George Bush. And they're more convinced that that would be a Democrat than a Republican.
WILLIS: All right, Bill, we appreciate your help with that. Thanks so much.
We have some breaking news, though, right now in the Midwest. Dealing with the tornadoes and the flooding there. Homeland Security Secretary Michael Chertoff is holding a briefing with Iowa Governor Chet Culver the Nebraska Governor Dave Heineman in Blencoe, Iowa.
Let's listen in.
GOV. CHET CULVER (D), IOWA: To express his concern and he has a lot to say about the importance of state and federal coordination in disasters like the ones that we're seeing across our state. So I appreciate very much you being here, Mr. Secretary. We're going to need, obviously, a continued coordinated effort as we move forward.
We now have 55 counties across this state that have been declared state disaster areas. We continue to have very serious problems in just about every river in our state reaching all-time record flood levels. Real concerns in large metropolitan areas, like Des Moines and Cedar Rapids and Cedar Falls, and also rural communities across our state as well. So that will be my primary focus, public safety, and doing everything in my power as governor to help these communities deal with the various challenges.
And Iowans are up to this fight. We're going to come out stronger. It's been tough. It's been challenging. Our heart goes out to those that have lost loved ones. But we will be stronger in the end.
And appreciate very much, finally, all the help from the local folks, all the county people here in Monona and Harrison County, our friends in Nebraska. It's just been wonderful to see neighbors helping neighbors in need.
And speaking of, I'd like to introduce at this time, my friend, the governor of Nebraska.
Welcome.
GOV. DAVE HEINEMAN, NEBRASKA: Governor, thank you very much.
And let me reiterate at least one point I said earlier this morning. We appreciate the extraordinary cooperation and support that we have received from Governor Culver and all Iowa officials working with us given the disaster that we're dealing with. I do want to emphasize, as Chet did, our thoughts and prayers go out to the victims of the family. We lost three, Nebraska young men. I contacted the families this morning. It's a very, very difficult situation to deal with, to lose three, a fourth one in Iowa, young boys. The best of the best. And we're all going to deal with that.
The one other point I would like to emphasize since this morning is the overwhelming support that we are receiving from volunteers from both Nebraska and Iowa. People who've listened to the media and just drove up here to help out.
I met with some of the volunteers who came up from the Omaha area. I'm very, very proud of those individuals. Proud of the volunteers that we've seen here in Iowa responding.
This afternoon, I will be back in Nebraska and we're going to assess where we're at with our flood stage waters, rivers, and streams throughout the state. We have some of the same concerns that they do over here in Iowa. But again, today, our focus is on this tragedy and responding to those families the best we can.
I do, too, want to thank the secretary for being here. We are grateful for his presence and what that means in terms of federal support.
And let me turn it over to the secretary now.
Thank you, sir.
MICHAEL CHERTOFF, HOMELAND SECURITY SECRETARY: Well, first I want to say that not only my own personal condolences, but the condolences of the president and everybody in the federal government to those who have lost loved ones in this terrible tragedy. Not only the tragedy here at the Boy Scout camp, but, of course, all of the flooding that we've seen in Iowa and throughout the region over the last several days.
This has been a remarkable onslaught of weather. Everything from flooding, unbelievable rain, and, of course, tornadoes all descending at once. And I think everybody had to be particularly touched by the thought of the finest young people from this region being caught up in a tornado, which struck them like a bowling ball, and I guess which they had no chance. So it's really a terrible tragedy.
And I'm told that the immediate reaction after the tornado of the Boy Scouts that were up there to kind of check posts and try to do what they could was in the best tradition of what they were being taught. But, unfortunately, there is a loss of life and that's just a terrible tragedy.
We are, obviously, shoulder to shoulder with the citizens of all the communities here in Iowa, Nebraska. Kansas got hit, as you know, with a tornado that wiped out -- virtually wiped out a town. Illinois, Wisconsin, they've been repeatedly struck. This is a really terrible weather season for this part of the country. We're there with, obviously, first and foremost, life saving. We want to support search and rescue commodities, whatever is need for shelter and evacuation. And, ultimately, we will be there to stand shoulder to shoulder with our fellow citizens in rebuilding.
I know right now the flight is really more in the eastern part of the state where there's still raining -- terrible rains coming down and flood waters rising. More evacuations. You know, my key message apart from just being here to support with whatever resources we can, is to just remind people that if there's a word that comes from the local authorities to evacuate, do it. You don't play games with rising water or with mother nature. It's much better to leave unnecessarily than to stick it out and find that you have to be rescued or even worse.
So I wish I could say the weather's going to get better after today, but I gather from the weather reports we may be in for this for -- at least intermittent, over the next few days. But everything I've seen and heard not only this season, but in past seasons, tells me the people of this part of the country are up to dealing with this challenge. And most of all, what they're up to doing is working together and pulling together in a real spirit of volunteerism. So all I can say is we hope that the predictions of weather will be less than we've heard so far.
We've got our FEMA people at the joint field office working side by side with their state counterparts, the Army Corps of Engineers, the National Guard. We are closely monitoring this. The head of FEMA, Dave Paulson, is also going to be on his away -- be around in the region, I think later today and certainly tomorrow. The president is being regularly updated. And we will work as hard and as efficiently as we can to get everybody stabilized and back on their feet again and start the process of rebuilding as soon as possible.
So, governors, thank you for your great leadership. I know these men have been up really 24 hours or more working on this and they're exhausted and deserve everybody's -- just, you know, (INAUDIBLE), a really terrific job done.
I guess we'll take some questions.
QUESTION: Secretary Chertoff, with the onslaught, as you described, that all across the region, was that at all taxed (ph) to the federal response?
CHERTOFF: Well, we're capable of dealing with something on this scale. So I wouldn't say it's overtaxed us, but it has certainly put a lot of pressure on us to respond to a wide variety of different types of events. And also still make sure we're maintaining a reserve because this is, you know, potentially something that's going to continue.
I don't need to remind you, it's also hurricane season. I don't know if this is wood, but if it is, I'm touching wood because I hoping we don't, obviously, another kind of disaster. But we have been working very hard, particularly over the last couple of years, to build the kinds of capabilities that allow us to get in more than one fight at a time. So I'm comfortable we can continue to support the effort here, you know, as we need to do.
QUESTION: Mr. Secretary, what was your assessment as you looked over the campground?
CHERTOFF: Well, you know, I hate to say, it is a little bit like watching -- I guess there's a valley up there. And it looks to me like the tornado just came like a bowling ball and knocked, you know, the buildings aside like pins. I'm going to go up after this conference is over and actually get on the ground with myself and whoever has been up there. But it seems like the Boy Scouts didn't have a chance because it came so fast and so hard that -- and I could see a pickup truck just kind of flung like a child's toy. So it's truly a tragic act of God. And looking at the trees mowed down, it's not hard to understand the impact of this kind of a tornado.
QUESTION: On that point, Governor Culver, if you could answer the question. There are reports that the boys had about 12 to 13 minutes warning, but many of the boys themselves say they had less than some (ph) 5 seconds. Was there a breakdown in communications in the camp? Did they have weather radios? Some way to communicate from troop to troop that might have been more useful?
CULVER: It is my understanding, after listening and talking to some of the young men, that they actually did have some communication that perhaps ended up helping save lives. I also believe that the Boy Scouts will have all of this kind of detailed information in terms of exactly what happened.
WILLIS: You've been listening to a press conference with Homeland Security Chief Michael Chertoff, who's been talking about the tragedy at a Boy Scout camp in Iowa where four teens were tragically killed.
Coming up next, though, we'll be speaking about young voters and the economy. We'll talk about that.
Plus, we'll be going live to an event in Calcana (ph), Wisconsin, where presumptive Democratic nominee Barack Obama will be speaking.
Stay with us. You're watching ISSUE #1.
(COMMERCIAL BREAK)
WILLIS: The economy is issue No. 1 this election season and it's not just important to veteran voters who have been around a long time. Younger voters are worried about their finances and choosing the candidate they think will help the most. Anya Kamenetz is the author of "Generation Debt" and writes about the financial worries facing young adults.
So when I talk to people in their 20s, they don't seem very optimistic about their prospects. Not just in this poor economy, but ever really. What are their top issues? ANYA KAMENETZ, AUTHOR, "GENERATION DEBT": Well, you know, not to different from the older voters, they're placing the economy as issue #1. You know, education is right behind that, health care, along with Iraq and the environment.
WILLIS: And are the presidential candidates offering them any solutions out there?
KAMENETZ: Well, they are. You know, first of all, young voters are turning out in force. Depending on the poll, they're favoring Obama by 10 to 20 points. So they really are interested in some of these government solutions. When it comes to things like the economy, they don't just want their taxes to be cut. That's not a big worry for younger voters. They're more interested in the programs and the solutions that government can offer.
WILLIS: Well, it's interesting. You know, Barack Obama is known for getting his message through to young people. And you say it's paying off with the younger voters saying they want to vote for him. You say they want more government programs. What kind of government programs?
KAMENETZ: Young people are the largest and fastest growing group in the country without health insurance. So they want health care. They want a government plan for health care. When it comes to education, they're dealing with student loans. They're dealing with maybe community college loans, paying for all the expenses, not just tuition. Obama's been talking a lot about that. He's been talking about getting the lenders out of the student loan programs. That's something young people are interested in.
WILLIS: That's a huge issue right now and we've had big, big problems with a lot of lenders bailing, actually leaving these kids on the hook. It's a real tragedy. That do the individual voters, what do they see as the solution, though, to that problem, because it's a big problem?
KAMENETZ: It is a big problem. I think that, you know, there's ways to simply the programs. Obama's been talking about simplifying the aid process, which a lot of people are (INAUDIBLE).
WILLIS: It's so complicated.
KAMENETZ: It is so complicated. He says, let's just use tax information to do that. Improving the repayment program, so if you go into public service, that you'll have more options to pay it back.
WILLIS: Very interesting stuff. Anya, thank you for your help today. We appreciate it.
KAMENETZ: Thank you.
WILLIS: Gas prices are at record levels. You know that. But could the electric car solve all of our problems. Tom Foreman is on the case and we're going to check back in with him in just a moment.
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WILLIS: All right. We all want a solution to high gas prices and a lot of folks out there, they believe the electric car could soon be in your future. Let's head back out to Washington and CNN's Tom Foreman.
Hey, Tom.
TOM FOREMAN, CNN CORRESPONDENT: Hey, Gerri.
You know, when you talk about electric cars, a lot of people think about something like this. It's very small. It's got one seat in front of the other one. This sort of thing. And it does work for the right people in the right circumstances.
But what's really changing now at this conference being held here in D.C. to talk about electric cars are vehicles like the one called the eBox. The University of Delaware is involved in developing this.
Look inside this. This is a normal vehicle. Four adults can sit in it. It's got a regular radio, a disk player. It's got air- conditioning. It's got all the things you want. Drink holders down here. One gear, however, because it's all electric.
Look under the hood of this vehicle and it's a totally different experience than what you're used to. This is the propulsion system inside this car. And if we'll take off the lid here, you can see, this isn't all, you know, firing cylinders and all of that. This is what's inside. So you never change the oil. You never replace the brakes on this car because it's all integrated so that if you take your foot off the accelerator, it will slowly slow itself down. This is an actual working car that normal families could really use, not like something like this which is more of a thing that requires you to really change your way of living.
But, Gerri, I've got to tell you, the thing that has people excited here and Washington buzzing about electric cars is this vehicle over here. You may have heard of it. It's called the Tesla (ph). If you see this on the road, you're just going to think, that is one very sporty, very cool sports car.
But look at the inside of this thing. An entire electric vehicle that can go from zero to 60 in under four seconds. It has a range of well over 200 miles on a single charge. That's one of the big hurdles that we had to get over here, one of the big changes, Gerri, was that people started using the same sort of battery cells that you use in your laptop computer and that extend the range. So even when you run it down, look, this is how you charge it back up. At full charging capacity, the kind of power you'd normally get to say you dryer at home. It takes about four hours and you're ready to go for another 200-plus miles in a very sporty car.
And, Gerri, just in case you want to, you can get this car now, or at least get on the list to get one. You're going to need patience, because there is a waiting list because people really want these. And you're going to need money, because this is about $100,000. But the next phase will be cheaper.
And the reason we have all this here, Gerri, is that building right over there. Because they want lawmakers here to pay attention to these cars. And they really are. This conference, Gerri, I have to tell you, they said they had to turn down all the requests they were getting from congressmen and senators because with gas over $4, they all want to look at these ideas and see whether or not they can make it work and maybe see if they can get a discount on one of the Teslas.
WILLIS: Yes, exactly. Put the camera back on the Tesla. That thing is gorgeous. I love that. That is so exciting.
Now here's my question for you, because I have a million of them. You said this was like $100,000 basically. Are they all that expensive? I mean would you be able to buy one of these for a decent amount of money?
FOREMAN: No. No, you could -- you can -- some of the other ones are not -- I mean this is, right now, not to overstate it, this is sort of the gold standard right now. Just a beautiful car. The platinum standard. But the goal with all of this, this is the early phase of this, is to bring the price down. They want to sell enough of these and get production really up so then they can develop the next level, the next level and then maybe we'll all be driving them. They may be leaders (ph) today. They're amazing cars.
WILLIS: Excellent stuff. Love your report. Want to see more. We've got to go. Thank you.
All right. Should oil companies be allowed to drill in protected wildlife areas to increase the oil supply? We asked this earlier. It's today's Quick Vote question. Let's check back in with Poppy Harlow.
So, what did people say, Poppy?
HARLOW: Hi, Gerri.
Well, more than 21,000 of you weighed in. Fifty-six percent say, yes, go ahead and drill there. Forty-four percent say now. And, Gerri, that has a lot to do with how expensive gas is right now. I think we should all go get one of those Teslas. One of those nice cars.
WILLIS: Love the Tesla. It was beautiful.
All right. Let's get you some news. CNN "Newsroom" with Don Lemon and Brianna Keilar -- it starts right now.
