Robert Reich, Former Labor Secretary, Discusses Soaring Unemployment Rate; Pandemic Shakes Up Routines For European Travelers
CABRERA: We are back with more now on the devastating economic numbers. In April, 20.5 million jobs lost. The unemployment rate soaring to 14.7 percent. Here to discuss more of the economic impact is former labor secretary, Robert Reich, who is also the author of "The System: Who Rigged It and How We Fix It." Secretary, always good to talk to you. These dire economic numbers are the main factor, of course, in pushing states to reopen, but you say that won't necessarily bring jobs back. Why?</s>ROBERT REICH, FORMER LABOR SECRETARY & AUTHOR: For the simple reason, Ana, that some of that reopening is going to exactly do the opposite. It's going to make the COVID-19 pandemic even worse. Because, you see, we're the only nation that is experiencing increases in deaths and also increases in infections at the same time we're trying to reopen. That doesn't make much sense. It's going to make the pandemic worse. But it also could make the economic crisis worse because there's no way that the economy can actually function when so many consumers are afraid to go into work or afraid to actually go into shopping malls and other places where a lot of people are congregating.</s>CABRERA: On one hand, we've been reporting that many low-income jobs are deemed essential and they employ a high minority population, which may explain why African-Americans and Latinos are being disproportionately impacted and infected by coronavirus. On the other hand, as, you know, we've reported here, these groups have some of the highest unemployment rates in April. Among Hispanics, it was 18.9 percent in April, for example. How do you explain this?</s>REICH: Well, it's really a double whammy with regard to a lot of people of color and a lot of poor people, the largest proportion of whom are often people of color. Because not only are they essential workers who are not getting adequate protection in warehouses and in hospitals and other places, but they are also people who, if they are unemployed, they don't have the adequate health care they need. They often have preexisting conditions. They're living, many of them, in crowded conditions that are, unfortunately, ideal for the pandemic. And so, if you are poor in America, and if you are African-American or Latino, you are particularly vulnerable in these two very different ways.</s>CABRERA: Many are now turning to the government for help, but we've heard stories of people not able to get through to the unemployment system as the systems are completely overwhelmed with this new surge in demand. What should the government be doing to more effectively help these Americans?</s>REICH: Well, the Labor Department, of which I used to be secretary, needs to make sure that state unemployment insurance offices are actually getting the resources they need to be able to process these claims effectively, efficiently, quickly. You see, right now, we've got over 30 million Americans who have filed unemployment insurance claims over the last seven weeks. But my information is very similar to the information you're getting. A large number of these people still have not been able to get unemployment benefits. Why? Because those unemployment insurance offices are overwhelmed. This entire system is antiquated. It doesn't have the resources it needs. And the federal government needs to step in and make sure that these state resources are there.</s>CABRERA: You told me about a month and a half ago that you expected a quick recovery, that it could bounce back in six months. I just think of all that has happened in just the past month. Are you still that optimistic?</s>REICH: I wish I were, Ana. I think that, actually, instead of a V- shaped recovery, we'll be lucky if it's what's called a U-shaped recovery. That is, a moderately quick recovery. But I'm becoming, as I look at more and more of the data, more and more pessimistic for the simple reason that, as this drags on, as the pandemic goes on -- that is, the pandemic is the really the biggest problem we face with regard to the economy. As it continues, we have not only the problem of a lot of people who are afraid to go into malls and into other places where they're going to buy things. But they also are running out of money because the government, as we've talked about, the government is not providing the benefits they need. They are dipping into their savings. More than half of Americans are living paycheck to paycheck and were living paycheck to paycheck even before the pandemic. And so you can't restart an economy if people are afraid and if they don't have money.</s>CABRERA: Former Secretary Robert Reich, thank you.</s>REICH: Thank you, Ana.</s>CABRERA: Today is the first day Californians can get the golf course and hike on trails. So what are officials doing to make sure people social distance? We'll have a live report from Los Angeles, next. You're live in the CNN NEWSROOM.