FORTUNE Runs Two Covers for July 7 Issue
With the general election officially underway, FORTUNE gains exclusive
access to both candidates and their advisors, offering a first-hand look
at what Barack Obama and John McCain will mean for business and the
economy. Excerpts are below and more of the interviews, conducted by
FORTUNE writers (Nina Easton with Obama and David Whitford with McCain),
are available online now at www.fortune.com
and on newsstands June 30th in the July 7th
issue of FORTUNE.
What do you see as the gravest long-term threat to the U.S. economy?
Obama: If we don’t get a handle on our
energy policy, it is possible that the kinds of trends we’ve
seen over the last year will just continue. Demand is clearly
outstripping supply. It’s not a problem we can
drill our way out of. It can be a drag on our economy for a very long
time unless we take steps to innovate and invest in the research and
development that’s required to find
alternative fuels. I think it’s very important
for the federal government to have a role in that process.
McCain: Well, I would think that the absolute gravest threat is
the struggle that we’re in against Islamic
extremism, which can affect, if they prevail, our very existence.
Another successful attack on the United States of America could have
devastating consequences. You’ve been a
supporter of climate-change legislation that would essentially impose a
penalty on the use of fossil fuel.
Should consumers and businesses be prepared to pay higher prices for
gasoline and electricity?
McCain: The difference I have with the opponents of cap-and-trade
is that they believe it will require greater sacrifice on the part of
Americans. I think innovation and advanced technology are beneficial to
the lives of American citizens and our economy. Long term, I do not
believe we will see the price of a barrel of oil come down permanently
or dramatically. I just happen to believe that even though this very
high price—and it may go higher—has
some artificiality associated with it, the fact is that there is a
greater and greater demand for what is fundamentally a finite resource.
So that then argues for nuclear power, for wind, tide, solar, and
innovative technologies such as batteries that will take a car 100 miles
before we have to plug it in.
Obama: There is no doubt that in the short term, adapting to this
new energy economy is going to carry some costs. [But]
I would never underestimate the power of American innovation. So my
instinct is that there are going to be technological breakthrough that [lead
to] declining energy prices over the long
term.
