[Michael Holmes, Cnn Anchor:] Welcome back to our viewers joining us from all around the world. I'm Michael Holmes. You're watching CNN NEWSROOM. I appreciate the company. Now in the coming hours, U.S. Senate Republicans will present their latest stimulus plan. The $1 trillion proposal would not extend the $600 weekly boost to unemployment benefits which is due to expire. Pretty much everyone's got their last check. Instead, it would offer 70 percent of the workers' wages as opposed to a flat rate, which Democrats want. The plan also includes $1,200 checks to many Americans, $105 billion for schools, and another targeted round of forgivable small business loans.
[Steve Mnuchin, U.s. Treasury Secretary:] The bill will be introduced Monday. And we're prepared to act quickly. This is all about kids and jobs. This is our focus. And we want to make sure something gets passed quickly so that we deal with the unemployment and all the other issues, paycheck protection plans, tax credits to rehire people and money for schools.
[Holmes:] Eleni Giokos is in Johannesburg with more on this. I mean I've been talking about this for a while. What is notable is that unemployment is pretty much well, they are done now, this sort of enhanced benefit check. The last one is going out. Eviction protections are going away, too. What is the holdup here?
[Eleni Giokos, Cnn Correspondent:] I mean it's really interesting hearing that this needs to be passed quickly and that is kind of the sentiment. But remember, until now we've only seen intraparty negotiations and discussions. We were hoping to have clarity at the end of last week, so perhaps we would be able to catch the expiration of that enhanced benefit. Now we still have to face bipartisan discussions and debates and negotiations. This is still on the table. And in the meantime, you have million of vulnerable Americans that really do not have any clarity about what will happen to the $600 extra a week that they've been receiving since the start of the pandemic. And instead, Republicans are saying look, it is a disincentive for people to get back to work. You are also hearing that they would rather do a percentage of wages. Now that brings a lot of issues to the table. How do you calculate it on a case by case basis for millions of people? I want you to listen in on what Larry Kudlow, the White House economic adviser said yesterday in the middle of negotiations.
[Larry Kudlow, White House Economic Adviser:] It won't stop the assistance. It's going to cap the assistance at a level that is consistent with people going back to work. That's what we have said from day one. First of all, state unemployment benefits stay in place. Second of all, we will try to cap the benefits at about 70 percent of wages.
[Giokos:] So I mean working these numbers out, our calculations that need to be conducted and, of course, we've already seen, Michael, issues in terms of getting the money into people's pockets even when it was a flat rate. The Democrats are saying the reason that they picked one number was because it was easy and it was simple. We know that Nancy Pelosi has been saying that they want to continue the enhanced benefit program until the end of the year. You've got coronavirus cases increasing. You've got a weak economic recovery that is currently in plan. And of course, major concern of the pandemic and economic impact of the pandemic is still very much a play. We've got second quarter GDP numbers that will be released later on this week. That's also going to be a vital signal. But the point here is and I want you to take a look at the proposals. We know that there's a $1,200 stimulus check that is at play here. You've got tax payment cuts. And you are talking about the evictions protections that are also coming to an end. There is so much fear rising about people losing their homes right now, that we're hearing states are coming up with shelter programs where lawyers will be able to meet with tenants to find a way forward. We also are hearing that perhaps we might see a watered-down proposal initially, so that they can get benefits in place to protect the vulnerable in the U.S. The Democrats in the past have said look, they don't want to take a piecemeal approach, but I think this week is going to be absolutely vital in terms of figuring out for around 15 millions Americans which, of course, filed for continuing claims just last week are going to be doing in the next few weeks, Michael.
[Holmes:] Yes. Important times. Eleni Giokos, thanks so much. Good to see you. Well even as Congress plans for another direct payment to Americans, millions of people still haven't received their first stimulus checks. Yes, going back to March, April. According to calculations by the House Ways and Means Committee, 30 to 35 million payments are yet to be issued. Kind of defeats the purpose doesn't it? And that includes payments to 13 to 18 million taxpayers who filed returns that are below the program's income threshold. And nearly five million tax returns have not been processed. They could include first-time filers who would qualify for the payment. With me now from Boston is global economist, Megan Greene. She is a senior fellow at Harvard University. Always a pleasure to have you back on. I mean, let's talk about the suggestions. They are all well and good but they're not in play and unemployment enhancement, renter eviction protections literally ending. I mean how do you see this sort of unfolding for people caught in the middle of that timing?
[Megan Greene, Senior Fellow, Harvard University:] Yes. So if we can't find a way to extend some sort of eased-up unemployment insurance in the next couple of weeks, we will absolutely go into another recession. A lot of people will face a cash cliff. Larry Kudlow in terms of the evictions have come out and said that, you know, eviction protections will be extended. The question is how long that will take although real estate markets have softened so much that some landlords might not actually kick people out just because then their places will
[Holmes:] Yes. I mean one issue has been that the whole system has not been reliable, has it. I mean people who filled out filed in March and April still haven't received their checks, and even with this, they might not get their checks until October. Evictions are starting to begin tomorrow for some people. I mean it really seems a mess, especially if you've lost your job and, you know, and can't pay the rent.
[Greene:] Yes. It's absolutely how it will end up in a double dip recession if that happens. If we can't get this together in the next couple of weeks, like I said, there really is a cash clip for a lot of people. And our unemployment insurance benefits system is really held together by bubble gum and duct tape pretty much. It's archaic logistically and so trying to do anything really complicated with beefing unemployment insurance as the Republicans are suggesting, could delay things much further. It could be that people don't get those additional checks for a couple of months and that is unacceptable, Spending will fall off the cliff, so will demand.
[Holmes:] Wow. Job losses continue to exceed the 2008 figures. You mentioned Larry Kudlow earlier. He was sort of saying that a v- shaped recovery is happening. I mean let's face it, he's not been right very much lately. There isn't a v-shaped recovery, is there?
[Greene:] No, there is no real chance of a v-shaped recovery. It might look like one initially because it's pretty easy to get a bunch of people back into the workforce the first 20 percent. But the last 20 percent is much harder. And if you look at actually where spending is picked up it's in things like white goods, swimming pool installations, landscaping. If you look at the micro data. And that's not where we lost all the jobs. We lost jobs in things like, you know, waitresses, or dry cleaners. So there is a huge disconnect in the economy that suggests that even without another spike in new cases that we are seeing and even without a second wave a v-shaped recovery just isn't in the cards.
[Holmes:] A lot of criticism that the aid from the start has been precious little to the worker and billions of corporations and others. That is certainly a perception out there. But I wanted to ask you, what is not in any, you know, significant amount is childcare assistance. You would imagine that that would help people work and have their kids taken care of, especially if schools don't reopen. I mean that's got to be more important than bailing out billionaires?
[Greene:] Yes. You get at a crucial point. And I say we've done a little bit better than we did after the global financial crisis in getting money to individuals and not just big companies. But that being said, there's a statistic out there that the government gave more money to Delta Airline than it did to the entire childcare system. So to your point, if schools don't reopen, there is no way people can be productive. And a lot of people will have to draft out of the workforce to take care of their kids, you know, if they cannot go back to school. And so that would be a huge drag on demand in the U.S. as well.
[Holmes:] Right. I wanted to get this last one in. Are we paying a worse economic cost for early reopening before the virus was under control than we would have otherwise if we had waited a while?
[Greene:] Absolutely. And for evidence of that, just look to Europe, right. Europe did a great job in terms of virus management. They've had a delayed response in terms of economic stimulus, whereas the U.S. really went big and hard with economic stimulus, but we have been the poster child for poor virus management. And as a result we are seeing our recovery is much more tepid than what they're seeing in Europe. So a lot of people have set this up as a dichotomy. Either you have to choose between, you know, reopening the economy or you have to choose people's health. And actually, there is no recovery until we get the virus under control. There's no question about that.
[Holmes:] Yes, exactly. They are linked. Megan Greene, a pleasure. Good to see you.
[Greene:] Thanks a lot.
[Holmes:] Now travelers making their way from Spain to the U.K. have to self-quarantine for 14 days and if they are going from Spain to Norway, 10 days. That is due to Spain's recent surge in coronavirus cases. Many British tourists in Spain say they're baffled over the decision which left them with no way to avoid a quarantine since they were already there on holiday. Many of them also say they feel safe in Spain.
[Unidentified Male:] If the spike here is quite big, I kind of get it. But if it's only minor then I don't see the point, really. There is more I've been here for almost a week now. Everybody wears masks everywhere. And this is really helpful. I feel really safe. I'm very disappointed in our own government.
[Holmes:] The Spanish government meanwhile says it is negotiating with the U.K. to try to revise the quarantine orders so it won't apply to some of the country's popular beaches.
[Arancha Gonzalez Laya, Spanish Forieng Minister:] In particular, our dialogue efforts at the moment are focused around excluding from the quarantine measures the Balearic and the Canary Islands for two reasons. Number one, these are islands that are very safe. Number two, their epidemiological data is extremely positive.
[Cai Jiaru, Cruise Passenger:] Due to the coronavirus, we can't go abroad, but I still feel like going out. So I signed up for the island hopping cruise. I don't worry about the epidemic too much because I think it's pretty safe in Taiwan right now. As long as everyone has their temperature measured before boarding the ship.
[Holmes:] Taiwan has a very low number of coronavirus cases. Fewer than 500 since this all began. It has also reported no local transmission for more than three months. They are doing well. We've got to take a quick break. When we come back we'll speak to a man whose family fought coronavirus together. And their battle not quite over yet. We will be right back.