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Delta Variant Impact: U.S. Added Only 235,000 Jobs in August; Sanders Pushes Back on Manchin's Call to Pause $3.5 Trillion Bill; "Front Row to History: The 9/11 Classroom" Airs Sunday Night at 10:00 Eastern; President Biden Tours Hurricane Ida Damage in Louisiana; Ex- Georgia Prosecutor Indicted in Ahmaud Arbery Case. Aired 2:30-3p ET
Aired September 03, 2021 - 14:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
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[14:31:37]
VICTOR BLACKWELL, CNN HOST: A disappointing jobs report was released this morning. Just 235,000 jobs were added in August. That's less than a third of what economists were expecting.
Now, the unemployment rate dropped to 5.2 percent.
President Biden said the Delta variant and unvaccinated Americans hurt the economy.
(BEGIN VIDEO CLIP)
JOE BIDEN, PRESIDENT OF THE UNITED STATES: Today's report shows that the steps we've taken, passing the Rescue Plan and vaccinating 175 million people, make our economy capable of growing and adding jobs even in the face of this continuing Delta surge.
The strength in our economy very different from the ways things were last winter.
There's no question the Delta variant is why today's jobs report isn't stronger. I know people were looking and I was hoping for a higher number.
(END VIDEO CLIP)
ALISYN CAMEROTA, CNN HOST: August was a tough month for President Biden, with the surge in COVID cases, the climate catastrophes, and that chaotic exit from Afghanistan.
A new poll shows President Biden's job approval numbers at 44 percent. That's down six points from late June.
Joining us now is CNN global economics analyst, Rana Foroohar. She's a global business columnist and associate editor for "The Financial Times."
Rana, always great to see you.
Why so few jobs added in August?
RANA FOROOHAR, CNN GLOBAL ECONOMICS ANALYST: Well, it's all about Delta. Companies are really pulling back on hiring, on investment.
There's a concern we may see peak cases in the fall, September and October. And people just don't want to spend.
This is also dovetailing, ironically, with labor shortages in areas like some of the lower-paid service sectors.
So you've got this sort of vice that companies are in where they don't know how much to spend. They also can't always find the people that they need to keep their businesses open.
I think that you're probably going to see another September number that is lower than expected. I think things are going to get a little worse before they get better.
BLACKWELL: Yes, in part, because we're seeing other elements that are changing. Those long-term unemployment benefits are ending in a couple of days. The Supreme Court came out against the eviction moratorium.
So how bad do you expect it will get next month?
FOROOHAR: Well, it's interesting. I think that -- as I said, things are going to get worse. You've got those benefits expiring. A lot of people are depending on those.
On the other hand, that may push some Americans that are on the fence about going back into the labor market to go in.
If you combine that with school starting back in September in many places, you may see some parents saying, OK, it's time. My childcare needs are not what they were, I'm going to have to go back into the labor market.
You know, there's one kind of strange upside of all this. It's keeping the stock market up.
And that Wall Street/Main Street divide the Federal Reserve had started to talk about, may be pulling back on their program of quantitative easing, which bolsters the markets saying, you know, things are pretty good, now the pressure is off.
And so that may mean that the market stays up even though Main Street is going to be suffering for another couple of months.
CAMEROTA: So, Rana, if the unemployment benefits expiring push people back into the labor market, that's a positive unintended consequence. Or is it possible it will go the other way and we'll see just many more people hurting?
FOROOHAR: Well, I think it is positive in the sense that, you know, one of the strange things about this period is that you had a lot of labor shortages.
[14:35:00]
You know, the first hit from COVID, you had 22 million people losing jobs. And so, you know, business was just shut down, and then ramping back up takes time.
So labor shortages have been a real problem over the last few months. So getting more people back in the market could help ease things.
It's a very strange mix of things that we're dealing right now. You've got caseloads, you've got the labor shortages, how many people might go back into the market, and what's going to happen to the stock market, which a lot of people count on for a sense of security, a sense of wealth.
BLACKWELL: What does this mean for the Federal Reserve and any of those talks of kind of going toward ending the stimulus, and kind of might be in early '22? Does this end that talk?
FOROOHAR: I don't think it ends the talk.
But there was a lot of pressure at the central bank meeting in Jackson Hole recently on the Fed to say, look, we've got to pull back. Markets are at near record highs right now, still in the middle of the surging Delta variant, why do we need all this stimulus.
But a lot of people are saying, hey, you know, we don't know what's going to happen. One great jobs number in July doesn't make a trend.
And I think that those voices are now going to have a little bit more weight.
I think this gives the Fed a lot of breathing room that they didn't have before, and I think you probably won't see any big announcements in September.
CAMEROTA: Rana Foroohar, thank you.
FOROOHAR: Thank you.
CAMEROTA: The president says his infrastructure idea and budget reconciliation deal are key to helping the economy recover, but those are facing now some major roadblocks.
In a tweet, Senator Bernie Sanders warns that the president's mega infrastructure bill will not pass the House if the Senate does not approve a $3.5 trillion reconciliation bill.
BLACKWELL: Well, now Senator Sanders is responding to his moderate Democratic colleague, Senator Joe Manchin. Manchin wants the Senate to pause on the reconciliation bill.
CNN's Manu Raju is here to unpack this for us.
This, of course, is the center of the president's signature legislation on shaky ground. And the timing is so important. MANU RAJU, CNN CHIEF CONGRESSIONAL CORRESPONDENT: Yes, it is, because
both bills, the Democratic leaders and the White House want to see passed in September.
And they've been performing this very complicated dance for months trying to keep those competing factions on the left and in the center of the Democratic caucus together.
And you're seeing real signs of tension that could threaten to torpedo the entire effort.
What Bernie Sanders is warning about is what could happen in the House. That is that infrastructure package, that has already passed the Senate. You had 19 Republicans to join 50 Democrats, passed in August. And that $1.2 trillion plan is awaiting action in the House.
Nancy Pelosi has promised moderate Democrats that she will have a vote on that by December 27th.
But the progressives in that Democratic House say they will vote against that measure if that larger reconciliation bill -- could be up to $3.5 trillion to expand the social safety net.
If that is not passed by the Senate, they're threatening to vote against that bipartisan plan in the House.
And the problem here now is that Joe Manchin, the moderate from West Virginia, whose support is essential to getting this passed, says we should hit pause. He calls for a, quote, "strategic pause." It's unclear exactly what he means by that.
He is concerned about that level of spending. He's saying he's not going to get behind anything near that amount.
So the question is, how do they balance all this? Because the Democratic leaders, guys, they want this done, at least a proposal offered by mid-September, by September 15th, and passed by the end of the month.
But if they try to cater to Joe Manchin's demands, that means they could lose some progressives in the House.
It shows you the complications they face in the weeks ahead.
BLACKWELL: Complicated, indeed.
Manu Raju, thank you.
RAJU: Thank you.
[14:38:46]
CAMEROTA: All right, President Biden is in Louisiana right now touring neighborhoods devastated by Hurricane Ida. So we'll take you there as he speaks to community leaders and people desperate for help.
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[14:43:34]
BLACKWELL: For 16 second graders at Emma E. Booker Elementary School, September 11th, 2001, did not start like every other day because the president of the United States had come to visit. He was there to highlight their progress in reading.
But minutes after he'd arrived, the unfathomable happened, and those 7-year-olds wound up on the front row to history.
Now, ahead of the 20th anniversary of 9/11, I visited with the teacher and the students in the very classroom where President George W. Bush was told that the country was under attack.
(BEGIN VIDEO CLIP)
BLACKWELL: What's it feel like to be back in this room? Although it's different, what's it feel like?
UNIDENTIFIED FEMALE: I started here in 1993. This is my starting school. This is my home.
Read, read, read, read, read.
(LAUGHTER)
UNIDENTIFIED FEMALE: The teachers were here day and night, reading, teaching, teaching, reading. But they did the hard work, and they made the gains, and that's why President Bush was here, to congratulate them.
BLACKWELL: The principal of this school asked you to greet the president.
UNIDENTIFIED FEMALE: I knew I didn't have to do anything but to say hello, shake a few hands, so I was pretty much calm at that point in time.
BLACKWELL: When did things change that morning on the way in?
UNIDENTIFIED MALE: We were getting very close to the elementary school, and everyone's pager started, you know, buzzing, buzzing, buzzing. We get these notes from the White House situation room that a plane has crashed into the World Trade Center.
[14:45:09]
UNIDENTIFIED FEMALE: The motorcade probably arrived around 8:35, 8:40- ish.
BLACKWELL: The motorcade turned into Emma E. Booker. What happened once the car stopped and the president stepped out?
UNIDENTIFIED MALE: I've never seen people jump out of a motorcade all up and down the line from all the cars so quickly. And it was the president's senior aides running to tell the president what had happened.
GEORGE W. BUSH, FORMER PRESIDENT OF THE UNITED STATES: Good morning.
BLACKWELL: Did you know by the time that he came in what had happened in New York?
UNIDENTIFIED FEMALE: No, we did not. The only thing that we knew was that it was something important and something was happening.
(END VIDEO CLIP)
CAMEROTA: Wow.
BLACKWELL: Yes, I mean, that day started with so much excitement for these children who were preparing to meet the president of the United States.
And there was the room with the kids, and on the other side of that door, all of the White House aides were on phones trying to understand if this plane was a small plane, a large plane that had flown into the first tower.
And then Andy Card walked through that door and interrupted that moment and told the president, a second plane hit the second tower, the country is under attack.
CAMEROTA: It's chilling to revisit that, those first moments when nobody knew what was happening, but particularly in that classroom.
And you've shared with me that those kids, who are grown up now, have more complicated feelings about that day than you would think.
BLACKWELL: There's a bit of guilt.
CAMEROTA: Why?
BLACKWELL: Which was surprising.
Because from their perspective -- and I understand it. Every other person who has some intimate story, some connection to that day, speaks of it in the context of loss, as if they've lost someone or something.
They were with the president that day, and they don't want the notoriety of being the kids in the room, and, oh, that was cool. They don't see that it's something cool to be a part of.
But they do know that it's important to tell that story, to make sure that that history is recorded with a larger story about what happened that day.
CAMEROTA: And did you go to the 9/11 museum with them?
BLACKWELL: Yes. So most of them had not been to the museum, so we brought them from -- some in Sarasota, some in Atlanta, some in Dallas, Orlando, and brought them here to the museum. And that's when it all came together for them, especially the teacher,
Mrs. Daniels.
She said it was a dream of hers to bring her babies, as she calls them, to the museum, but she wanted to share it with them so that they could have that experience together. And you'll see that as well in the special.
CAMEROTA: I can't wait to watch it. It looks really interesting. And what an interesting way to explore it 20 years later.
BLACKWELL: Yes, yes. And the scope of time, that context over the last 20 years, as they started as children and now have learned so much now as 27-year-olds.
So be sure to tune in for my special, "FRONT ROW TO HISTORY: THE 9/11 CLASSROOM," Sunday night, 10:00 Eastern, right here on CNN.
CAMEROTA: OK, we have some new developments in the shooting death of Ahmaud Arbery. A former prosecutor now faces criminal charges. This is a big development. We'll bring you the details.
BLACKWELL: Here's what else to watch today.
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[14:53:10]
CAMEROTA: OK, this is President Biden. He is being briefed right now in Louisiana with local leaders. He is expected to tour some of the areas hit by Hurricane Ida the hardest and talk to some of the residents there who are so desperate.
BLACKWELL: Yes. So he's in the class now getting the briefing. We know he's expecting to take an aerial tour over hard-hit communities of Lafitte, Grand Isle, Port Fourchon and Lafourche Parish.
Let's listen in to the president.
BIDEN: So there's still, you know, work to do in this area. And we've instructed my team to have all-hands-on-deck to make sure that that happens. We have the -- we're going the make this up. Kind of get back out there and make maybe work that through.
And to date, we also provided $100 million in direct assistance directly to folks in Louisiana with that 500 bucks going into their bank accounts so they can deal immediately with emergencies.
I'd love to hear from you if you heard feedback from your constituents about that at all. Because sometimes it's what you need at that moment. It can make a difference.
We also know there's a heck of a lot more work to do. That's why we're here today.
My message today is I think what we're all seeing -- and I'm getting the same response from my Republican friends, Republican friends here that are in the Congress. There's nothing political about this. This is simply about saving lives and getting back up and running.
And we're in this together. So we're not going to leave any community behind, rural, city, coastal, inland. And I promise we'll have your backs until this thing gets done.
[14:55:03]
And so I'm mainly here to listen and see what's on your mind. Maybe you'll ask a few questions. The really hard questions I can't answer, I'll turn to -- (INAUDIBLE) --
BLACKWELL: We'll continue to monitor this. The president there in Lacrosse kind of surveying the damage.
CAMEROTA: Particularly, when he goes out to the parish, we'll see how that goes.
BLACKWELL: Yes, yes. All right.
Another person connected to the Ahmaud Arbery investigation is facing charges.
Jackie Johnson, former Brunswick, Georgia, district attorney, is accused of interfering with the arrest of the man involved in Arbery's death.
CAMEROTA: As you know, 25-year-old Ahmaud Arbery was jogging through a neighborhood last year when white men chased him down and shot him.
CNN's Nick Valencia has been following this story.
So, Nick, what is -- tell us what these charges against the former da are about.
NICK VALENCIA, CNN CORRESPONDENT: Yes, hey there, Alisyn. This indictment allegations that Jackie Johnson, the former district attorney there in Brunswick, violated her oath of office by ordering two Glynn County police officers not to place under arrest one of the suspects in this shooting death of Arbery, George McMichael.
McMichael worked for Johnson for a period of time as a chief investigator in the district attorney's office but retired prior to that fatal shooting.
The indictment alleges that Johnson, who lost the role of district attorney back in November during an election, showed favor and affection towards McMichael.
It's also alleged that she did not disclose the district attorney that recommended to oversee this case after she recused herself. According to this indictment, she reached out for assistance on this case, calling that district attorney on the day of the shooting.
Earlier today, there was a very emotional press conference from Arbery's family. You could tell there was a sense of relief but a noticeable amount of pain as they continue to mourn the death of Arbery.
The mother of Arbery saying that, although Johnson did not pull the trigger, she deserved to be held just as accountable as the men who did.
(BEGIN VIDEO CLIP)
MARCUS ARBERY, FATHER OF AHMAUD ARBERY: I mean, we're so grateful because, you know, everybody that had their hand on his death need to be brought to justice.
Because the way he died, it's just really devastating to my family. I'm struggling with it every day as a father. Because it's my job to protect my children. And god knows I do that.
You know, I'm still hurt because all I got is pictures to look at him. Every morning I get up and look at his picture, I'm saddened by it.
(END VIDEO CLIP)
VALENCIA: Saddened by it, of course.
Johnson faces up to five years if sentenced for a violation of oath of office. The second charge is up to 12 months in prison.
Back in May of 2020, Johnson went on a small-town radio station in Georgia to deny any wrongdoing.
This case is now in the hands of a different district attorney's office here in just nearby Cobb County -- Guys?
CAMEROTA: Nick Valencia, thank you for the update.
VALENCIA: You bet.
CAMEROTA: All right, our breaking news coverage continues now.
This is President Biden's visit to Louisiana as the state continues to struggle. So what people are telling President Biden.
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