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Businesses Struggle to Fill Jobs as America Reopens; Biden and Sen. Capito to Talk Infrastructure Again Today; CDC: Adolescent Hospitalization Rate Increase Shows Need for COVID-19 Vaccinations. Aired 12:30-1p ET

Aired June 04, 2021 - 12:30   ET

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

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MARILYN SCHLOSSBACH, OWNER, MARILYN SCHLOSSBACK GROUP: There are people that are raising wages to unsustainable levels. Yes, it's great, but what's going to happen when this levels off? You can't tell that person, oh, I'm sorry now you're going to get cut in half on your pay.

TRAVIS SEMBLESKI, GENERAL MANAGER, VIC'S ITALIAN RESTAURANT: I can't get people to come in and just start a new job, it's never been like this before. We're basically in competition with the government for jobs. A lot of people that we had working for us cut back their hours because that extra money supplements their income so they don't need to work as much.

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JOHN KING, CNN HOST: Mark Zandi (ph) you hear those business owners at a time, we can show you in 25 Republican led states, Republican governors are essentially winding down more quickly the extra bonus unemployment benefits that were put in place during COVID.

They're due to expire, I believe, in September anyway but a number of Republican states are saying let's end them ASAP. How much of a factor is that? This is a big part of the political argument here in Washington with Republicans saying the extra money is allowing people to just say forget about it, I'm going to stay at home.

MARK ZANDI, CHIEF ECONOMIST, MOODY'S ANALYTICS: Yes, John - no, there's a long list of reasons why people aren't filling these unfilled positions as quickly as business people would like, and anybody would like. And I think the supplemental U.I. that the business person referred to - the $300 extra a week that's going to unemployed workers is on the list of reasons, but I'd say it's at the bottom of the list - or towards the bottom, it's certainly not the top.

You know, simply, I think what's going on is the economy has reopened very, very quickly. I mean, just think back six, eight weeks ago and where we - and compare that to where we are today. Restaurants are all opening at the same time, hotels are opening at the same time. We're travelling, we're going to the movies - things that we weren't doing a couple months ago.

And everyone - all these business folks put up the proverbial help wanted sign at the same time. So it's just going to take a little bit of time - a few weeks, a few months to get people to rearrange their lives, and sort things out, and get their kids back in daycare and into school, and get their parents back into the facilities - the living facilities that (inaudible) them.

It's just going to take a little bit of work here, but my - I'm very confident by the end of the summer, going into the fall we'll all sort through these things, and we'll be off and running. And business folks will have a much easier time filling these positions.

KING: And this transition, Dr. Mason is everywhere. We're focusing right now on the unemployment report and the new hiring, but also among those who have been employed - and I know you've looked at this.

So you go back to look at this, the percentage of Americans who were employed throughout COVID but who were telecommuting from home. And you can just watch the drop, it's fallen nearly in half, down to about 50 percent. Talk about these - the challenges of all these transitions, whether it's kids back to school, whether it's lining up childcare - all of the different issues that you don't see when you look at the data, necessarily.

C. NICOLE MASON, CEO & PRESIDENT, INSTITUTE FOR WOMEN'S POLICY RESEARCH: What you don't see is that families are really trying their hardest to make it work, especially working mothers who still continue to have challenges with childcare, daycares are still open or not - you know, fully operational. And families are really having to make some tough decisions about when and how to reenter the labor market.

And it's right that we just now started to reopen the economy, and so I don't think we'll see significant shifts, or getting back to a fuller employment until the fall. And I - so it's going to take a lot of patience. I think the administration is doing the right thing, really being aggressive about vaccination outreach, continue to provide support to struggling families, but also thinking about the future and job creation efforts.

KING: C. Nicole Mason, Mark Zandi - grateful for your time today as we could walk through these numbers. We'll do it again. Thank you very much.

And up next for us, President Biden is talking today with the lead Republican negotiator on infrastructure. Progressives are fuming. We'll tell you why.

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KING: President Biden is talking again today to a key Republican voice on infrastructure. The test of the call with Republican Senator Shelley Moore Capito is whether there's progress in bridging big differences over how much to spend and how to raise that money. There's also a broader test, can the president manage tensions within the Democratic family?

Progressives want a bigger, bolder infrastructure plan and they see the Republicans as playing the president to run out the clock. But the president has no votes to spare in the 50-50 Senate, so he has little choice but to listen when centrists like Joe Manchin say, keep talking.

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SEN. JOE MANCHIN (D-WV): I've always been to the point to where we've got to work together. You know, you can only do so much by yourself - and you can't make it work unless the minority has input. You can't disregard a person that's not in the majority. The Senate was never designed that way.

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KING: Senator Manchin, essentially runs the Democratic Party on infrastructure right now, along with Senator Sinema.

JACKIE KUCINICH, WASHINGTON BUREAU CHIEF, THE DAILY BEAST: Indeed. And I think some of his colleagues might have a little bit - something to say about his philosophy. And - but listen, they will stop talking when, I think Senator Manchin thinks it's OK for them to stop talking.

And right now they're pretty far apart, even the concessions that Biden has made on taxes it doesn't seem like Republicans are really that excited about that because he's talking about implementing something else that might tax corporations. So there isn't a lot of middle ground. It is moving, but not to the extent where, I think any of us would think a deal is forthcoming.

KING: And you make a key point, because most Progressives think Republicans are going to extend it another week, extend it another week, extend it another week - and then say no. And then still say no, in the end we couldn't get there which is why you see from Jamaal Bowman, we've seen this movie before.

"If what I'm reading is true, I would have a very hard time voting yes on this bill." Meaning the compromises the president has put forward. "POTUS can't expect us to vote for an infrastructure deal dictated by the Republican Party."

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Another progressive, Congressman Jayapal, "Republicans will ask for concession after concession, and still not vote for the watered down bill." So you have this family feud within the Democratic Party, even as the president tries to figure this out. Who is he going to listen to?

ABBY PHILIP, CNN SENIOR POLITICAL CORRESPONDENT: Yeah, I mean - and I think that the margin in the House is so narrow that there's not a whole lot of room for Biden to lose some of these Progressives. But what's interesting about Manchin's perspective is that it is both about getting the votes, and also about making the policy more moderate.

I think he actually really does want this bill to be shorter, and - you know, smaller in size so that Democrats are not putting forward something that he thinks is too liberal for the country.

KING: But the energy in the party - a lot of the energy in the party comes from the left and the Progressives, and they say it's about time. Some of it's generational, some of it is ideological. They say it's our turn.

David Axelrod, who worked in the Obama White House, they took a lot of income, he says, you've got to calm down.

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DAVID AXELROD, CNN SENIOR POLITICAL CORRESPONDENT: It is a fantasy to say, well let's just pick up our marbles and go home, and go it alone. And until Manchin and perhaps some others are persuaded that this is the only way to pass a infrastructure bill, I think you're at a standstill.

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KING: Essentially trying to tell Progressives - I get it, I get it but we don't have the math.

JEFF ZELENY, CNN CHIEF NATIONAL AFFAIRS CORRESPONDENT: And that's where Speaker Pelosi comes in. So if anyone's been watching her for the last decade or so, she'll get those votes. But right now this is not an empty exercise, this is a key part of getting a deal in the end.

So I think for all the comparisons being made to Obamacare in 2009, this is not 2009. The makeup of the Senate is entirely different. And for all the democratic complaining about Joe Manchin, well then, they should have won some other seats in, I don't know, North Carolina, Maine, Iowa - I mean, they're lucky to have the majority because of Georgia. So this is the hand that they're dealt.

But Joe Manchin here, you're totally right about policy. He's trying to get the policy to be more acceptable to his voters in West Virginia. One other thing to keep in mind, he's up in 2024, is this his last two years in the Senate? Is this a legacy thing for him? Keep your eye on him - he said to be patient, and that's what we must be.

KING: That's what Progressives want to have a conversation about, whether this should be about Joe Manchin's legacy. The fight will continue, we know that. Up next, the renewed calls for kids to be vaccinated. That, after a new CDC report the administration says - read this, get your kid a COVID vaccine.

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KING: Breaking news just in, Facebook says it will keep former President Trump's accounts on Facebook and Instagram suspended for two years. This announcement coming as they respond to criticism from its oversight board and announce new enforcement protocols. That input from the board came after they said yes they had the right to suspend Mr. Trump, but did not have clear guidelines in place.

Let's get straight to CNN's Kaitlan Collins for more on this. Kaitlan, what do we know?

KAITLAN COLLINS, CNN CHIEF WHITE HOUSE CORRESPONDENT: Well, this is notable because they are saying that the former president is not going to be on Facebook until at least 2023, and that suspension is going to be in place but that doesn't guarantee, John, that he's going to be back on the social media platform when that happens.

They say the only time he will be let back onto Facebook in two years after this suspension is up, is if they feel that the - excuse me, that the risk to public safety has abated, if his account is restored. And this is notable not just in relation to Trump, but in the general sense of how Facebook is viewing having political leaders on their platform.

Because of course for so long during their presidency both Facebook and Twitter took a lot of heat because that was of course where Donald Trump aired his thoughts - his private thoughts to the entire world and it became a lot more real after they saw what happened on January 6 when those rioters attacked the Capitol.

Now, we're hearing from a Facebook official who says in a post about this decision that they know they're going to be criticized by people on both sides of the aisle regardless of whichever decision you make. You of course got people who say that Trump is a threat, and you've got people who say his First Amendment rights, his free speech is also something that they need to consider. But it is notable that Donald Trump will not be back on Facebook until at least 2023, John.

KING: At least 2023. Let's bring CNN Business Reporter, Donie O'Sullivan. Donie has covered this issue for some time. Donie, I want to read a little bit from the Facebook statement. We talked about this at the time when the oversight board upheld the suspension but said you don't have clear rules in place, people.

"Given the gravity of the circumstances that led to Mr. Trump's suspension, we believe his actions constituted a severe violation of our rules which merit the highest penalty available under the new enforcement protocols. We are suspending his accounts for two years, effective from the date of the initial suspension on January 7." So they're essentially saying it fits the new rule that were enacted after what they say was the crime.

DONIE O'SULLIVAN, CNN CORRESPONDENT: That's right, John. I mean, when he was suspended on January 7, it was totally unprecedented. Facebook essentially did not have a rulebook for the president of the United States behaving in this way on its platform. So as Kaitlan mentioned there, he is going to be suspended - not

allowed to use neither Facebook nor Instagram until at least January 2023. Now, that is of course after the 2020 midterms, but in plenty of time for the 2024 election. And it's not just about Trump having a platform here, it's not just about him being able to message, you know, tens of millions of Facebook users.

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His campaign, Republicans have relied on his Facebook page as a moneymaker, as a really good way to fundraise his campaign would often boast about that. And John, I just want to highlight to you one other piece that's in this Facebook statement.

It says that in January 2023 the company is going to reassess, and say it's not guaranteed Trump is coming back in '23, but it does say - it says, we'll look to experts to assess whether the risk to public safety has receded.

I mean, it really is quite remarkable when you think that this is how they're talking about a former president that they viewed what he was posting on their platform, so seriously, that they are acknowledging here what was happening on their platform from Trump was a risk to public safety.

KING: It is quite remarkable, and unprecedented. Donie O'Sullivan, appreciate the hustle. Let's bring the conversation in the room. And Donie makes a key point, this keeps the former president off Facebook and Instagram for the 2022 midterms, and TBD for the '23, '24 cycle. But, that's a big deal.

PHILLIP: Yeah, it's a huge deal. But think about the context in which it's happening. This is a week in which we're talking about Trump telling his supporters or telling his friends, and I assume he will soon tell his supporters that he might be reinstated this fall. And there are people who are legitimately concerned that that could lead to the same kind of violence that we saw on January 6.

So Facebook is not totally off base here. Trump isn't stopping what he was doing in the lead up to his last suspension, he's escalating it.

KING: And they warn - Facebook does warn in this post by Nick Clegg, when the suspension is eventually lifted there will be a strict set of rapidly escalating sanctions that will be triggered if Mr. Trump commits further violations in the future, up to and including, permanent removal.

So they're essentially saying in two years we might let you back, but we kind of already know we might have an issue.

SABRINA SIDDIQUI, WHITE HOUSE REPORTER, THE WALL STREET JOURNAL: Right, and this is clearly an effort by Facebook to respond to what has been growing criticism that they allowed former President Trump - as well as other politicians and world leaders to use the platform to spread misinformation that they have not had stringent enough rules against hate speech, or posts that could incite violence. And this is also coming as they're saying they're going to end a

policy that effectively exempted politicians from the same kind of content moderation rules that most users are subjected to. But the key question is, what do they do when there is another presidential election? Clearly this policy will apply to Trump through the midterms, but the real test will be in an election year, and that's where they've gotten a lot of criticism for not taking a strong enough stance as a company.

KUCINICH: And it is a tremendous amount of power that Facebook has to deplatform a former president. And that precedent is something that's going to be worth talking about. I mean, no matter what you think of former President Trump, this is just a tremendous amount of power to be able to take that megaphone away from anyone.

KING: Silencing his voice, and affecting his wallet in the sense that so many politicians in the Trump campaign did a very good job at this, using it to raise money.

ZELENY: The wallet is much more of a concern to the Republican Party -

KUCINICH: Yeah, right.

ZELENY: - than his voice, without a question. But Abby's absolutely right, let's see what happens in August. I mean, I can't even think of an example in Donald John Trump's life where he's taken something like, I'm going to behave and - you know, to get back on Facebook. That's not how he operates. He will seize on this tomorrow at his rally. His list - his speech topics are growing for his rally tomorrow, add this to that.

KUCINICH: Right, right.

ZELENY: But we'll see how he acts. But this is a - it's a huge deal. Some Republicans breathing a sigh of relief, but not on the money front, that's a big deal.

KING: And as you noted, Donald Trump thrives on his grievances, and this will be another one, front and center. Thank you all for coming in today. Thanks for dealing (ph) with the breaking news, it's important.

Up next for us, more on the brand new CDC report that shows troubling hospitalization rates for adolescents with the coronavirus.

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KING: More breaking news today, this COVID related. A new CDC study out just last hour warns, get your teens vaccinated. The report released short time ago shows a recent increase in 12 to 17 year olds hospitalized with COVID. And it found that nearly one-third of those covered in this survey were admitted to the intensive care unit. The CDC Director Dr. Rochelle Walensky had this data yesterday when she told parents, please listen.

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ROCHELLE WALENSKY, CDC DIRECTOR: The level of severe disease, even among youth that are preventable - that force us to redouble our motivation to get our adolescents and young adults vaccinated. I strongly encourage parents to get their teens vaccinated, as I did mine.

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KING: The over all numbers though, do show continued improvement. Let's walk through some of them. Number one, just look at our 50 state map - mostly green. Mostly green, right? Let's look at one year ago in a comparison. Red and orange means you're trending up when it comes to COVID. Green means you're trending down - this is a good map. Look at this map right here, 45 states trending down, the rest holding steady.

No states reporting more COVID infections now compared to the data one week ago. If you look through the new cases it tells you the same thing. You see three months ago, you see six months ago - a year ago we were 21,000 new infections. We're averaging now 15,000 new infections.

Still need to push that down, but significantly better. Here's an interesting question though, can the administration get to the goal to get to 70 percent of Americans partially vaccinated by July 4? That's a challenge for the president. Right, if you look at vaccinations by age among older Americans - this is 18 and over there up, younger Americans that's part of what Dr. Walensky is talking about.

But just look at this right here, to get there right now we're averaging 371,000 Americans getting their first shot a day. Need 564,000 for the president to meet his goal so that he can ramp up the vaccinations and do it quickly for the president to meet that big goal. But again, the over all picture is improving.

Appreciate your time today throughout the breaking news. We'll see you back here on Monday. Have a ood weekend, a safe weekend. Ana Cabrera picks up right now.

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