Trump administration warns of 20 percent unemployment rate due to coronavirus

WASHINGTON — Trump administration officials warned Senate Republicans Tuesday that the coronavirus outbreak in the U.S. could cause the unemployment rate to reach 20 percent, according to two sources familiar with the discussion.

The warning came during a closed-door lunch on Capitol Hill in which Treasury Secretary Steven Mnuchin presented a White House stimulus plan that could cost at least $1 trillion. The prediction was first reported by Bloomberg News.

As the stock market struggles and the health of the economy is in serious jeopardy, previously reluctant Republicans are becoming much more open to approving an aid bill that large.

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Coronavirus vaccine trial in Seattle
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Coronavirus vaccine trial in Seattle
A pharmacist gives Jennifer Haller, left, the first shot in the first-stage safety study clinical trial of a potential vaccine for COVID-19, the disease caused by the new coronavirus, Monday, March 16, 2020, at the Kaiser Permanente Washington Health Research Institute in Seattle. (AP Photo/Ted S. Warren)
Jennifer Haller poses for a photo in the living room of her home, Monday, March 16, 2020, in Seattle. Earlier in the day, Haller was the first person to receive a shot of a potential vaccine for COVID-19, the disease caused by the new coronavirus, at the start of the first-stage safety study clinical trial of the vaccine at the Kaiser Permanente Washington Health Research Institute in Seattle. (AP Photo/Ted S. Warren)
Pharmacist Michael Witte opens a package taken from a freezer that contains the potential vaccine for COVID-19, the disease caused by the new coronavirus, on the first day of a first-stage safety study clinical trial of the vaccine, Monday, March 16, 2020, at the Kaiser Permanente Washington Health Research Institute in Seattle. (AP Photo/Ted S. Warren)
Pharmacist Michael Witte, left, gives Rebecca Sirull, right, a shot in the first-stage safety study clinical trial of a potential vaccine for COVID-19, the disease caused by the new coronavirus, Monday, March 16, 2020, at the Kaiser Permanente Washington Health Research Institute in Seattle. Sirull is the third patient to receive the shot in the study. (AP Photo/Ted S. Warren)
Jennifer Haller is reflected in a mirror as she waits in an exam room before she was given a shot in the first-stage safety study clinical trial of a potential coronavirus vaccine, Monday, March 16, 2020, at the Kaiser Permanente Washington Health Research Institute in Seattle. Haller was the first person to receive the shot in the study. (AP Photo/Ted S. Warren)
Pharmacist Michael Witte, left, gives Neal Browning, right, a shot in the first-stage safety study clinical trial of a potential vaccine for COVID-19, the disease caused by the new coronavirus Monday, March 16, 2020, at the Kaiser Permanente Washington Health Research Institute in Seattle. Browning is the second patient to receive the shot in the study. (AP Photo/Ted S. Warren)
The first clinical trials to find a coronavirus vaccine have begun at a hospital in Seattle. A total of 45 men and women have volunteered to be injected. Unlike most vaccines, these COVID-19 vaccines have not been tested on mice, and will go directly to humans due to the urgent need for the drug. Lisa Guerrero spoke with Neal Browning, one of the men who is participating in the trial. He explained what he has to go through as part of this brave new experiment.
The first clinical trials to find a coronavirus vaccine have begun at a hospital in Seattle. A total of 45 men and women have volunteered to be injected. Unlike most vaccines, these COVID-19 vaccines have not been tested on mice, and will go directly to humans due to the urgent need for the drug. Lisa Guerrero spoke with Neal Browning, one of the men who is participating in the trial. He explained what he has to go through as part of this brave new experiment.
Pharmacist Michael Witte, left, gives Rebecca Sirull, right, a shot in the first-stage safety study clinical trial of a potential vaccine for the coronavirus, Monday, March 16, 2020, at the Kaiser Permanente Washington Health Research Institute in Seattle. Sirull is the third patient to receive the shot in the study. (AP Photo/Ted S. Warren)
Dr. Lisa Jackson, a senior investigator at the Kaiser Permanente Washington Health Research Institute, poses for a photo, Sunday, March 15, 2020, in Seattle. Jackson is leading the first-stage safety study clinical trial of a potential vaccine for COVID-19, the disease caused by the new coronavirus, which was given to the first volunteer in the study by injection, Monday, March 16 in Seattle. (AP Photo/Ted S. Warren)
Dr. Lisa Jackson, a senior investigator at the Kaiser Permanente Washington Health Research Institute, works in her office with an image of COVID-19 taped to her door, Sunday, March 15, 2020, in Seattle. Jackson is leading the first-stage safety study clinical trial of a potential vaccine for COVID-19, the disease caused by the new coronavirus, which was given to the first volunteer in the study by injection, Monday, March 16. (AP Photo/Ted S. Warren)
Rebecca Sirull, center, poses for a photo with her roommates, Anna Thomas, left, and Madeleine Busch, Monday, March 16, 2020, at the home they share in Seattle. Earlier in the day, Sirull was the third person to receive a shot of a potential vaccine for the COVID-19 coronavirus at the start of the first-stage safety study clinical trial of the vaccine at the Kaiser Permanente Washington Health Research Institute in Seattle. (AP Photo/Ted S. Warren)
Rebecca Sirull works on her laptop, Monday, March 16, 2020, at her home in Seattle. Earlier in the day, Sirull, an editorial coordinator for the Institute for Health Metrics and Evaluation, was the third person to receive a shot of a potential vaccine for the COVID-19 coronavirus at the start of the first-stage safety study clinical trial of the vaccine at the Kaiser Permanente Washington Health Research Institute in Seattle. (AP Photo/Ted S. Warren)
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That estimated unemployment rate would be double the highest rate from the period around the Great Recession from 2007 to 2009, when it reached 10 percent in October 2009, according to the Bureau for Labor Statistics. Before then, the unemployment rate had not been that high since late 1982 through the first half of 1983 when it peaked at 10.8 percent.

Of course, Americans experienced the worst unemployment during the Great Depression in the 1930s. Estimates say that the unemployment rate hit 25 percent in 1933. The Bureau for Labor Statistics, however, said that it was difficult to measure unemployment because there was little statistical data on the extent or nature of joblessness across the country.

Earlier this week, New York City Mayor Bill de Blasio issued a stark warning.

"We have the historical playbook, and this, if you want to know what this whole thing is going to play out as, one part the Great Recession we went through a few years ago, one part the Great Depression, one part the 1918 flu epidemic," he said in an interview on MSNBC's "Morning Joe," saying those are three models to use in considering how to manage the outbreak.

The U.S. coronavirus outbreak that has intensified in recent days has prompted companies to lay off workers as health officials at the federal, state and local levels tell people to practice social distancing — not congregate in large groups and to work from home if possible — in order to help flatten the curve of its spread.

Mnuchin said at the White House coronavirus task force briefing and at the Capitol Tuesday that the administration is interested in giving a major boost to the economy with Congress’s help with a massive stimulus package. Part of that plan that Mnuchin presented to Republicans and previewed publicly Tuesday would include $250 billion in payments to Americans that could begin being dispersed at the end of April if Congress agrees to the proposal.

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Figures who have tested positive for coronavirus
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Figures who have tested positive for coronavirus

Last week, Tom Hanks and Rita Wilson announced that they had tested positive for COVID-19 after contracting it in Australia, where Hanks was filming a movie. 

"We felt a bit tired, like we had colds, and some body aches," the Oscar-winning actor shared on Instagram. "Rita had some chills that came and went. Slight fevers too. To play things right, as is needed in the world right now, we were tested for the Coronavirus, and were found to be positive."

"Well, now. What to do next? The Medical Officials have protocols that must be followed. We Hanks’ will be tested observed, and isolated for as long as public health and safety requires. Not much more to it than a one-day-at-a-time approach, no?"

Idris Elba took to Twitter on Monday morning to announce that he, too, contracted the virus. The actor was at the same conference in Webley as Sophie Trudeau, who also tested positive. 

He shared with his fans:

"This morning I tested positive for Covid 19. I feel ok, I have no symptoms so far but have been isolated since I found out about my possible exposure to the virus. Stay home people and be pragmatic. I will keep you updated on how I’m doing. No panic.

Sophie Gregorie Trudeau, the wife of Canadian prime minister Justin Trudeau, was announced to have tested positive for the virus last week. 

Her symptoms developed after attending a conference in Britain in early March. The prime minister is not showing symptoms and will not be tested, but will remain under quarantine.

Kristofer Hivju, best known for his role as Tormund on "Game of Thrones," took to Instagram on Monday to reveal he was self quarantining with his family in Norway.  

"We are in good health,” he wrote. “I only have mild symptoms of a cold. There are people at higher risk for who this virus might be a devastating diagnosis, so I urge all of you to be extremely careful; wash your hands, keep 1,5 meters distance from others, go in quarantine; just do everything you can to stop the virus from spreading.

Olga Kurylenko, who starred in the James Bond movie “Quantum of Solace,” announced this weekend that she has contracted COVID-19, the disease caused by the new coronavirus. 

“I’ve actually been ill for almost a week now,” she wrote on Instagram. “Fever and fatigue are my main symptoms. Take care of yourself and do take this seriously!”

Donavan Mitchell and Rudy Gobert, both players on the Utah Jazz basketball team, have tested positive for the virus. Gobert was the first NBA player to test positive, which prompted the suspension of the rest of the basketball season. 
Callum Hudson-Odoi, a forward for the Chelsea football team, tested positive for the virus, in addition to Arsenal coach Mikel Arteta. Following the announcement, all professional soccer games in England have been postponed. 
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President Donald Trump tweeted Wednesday morning that for the people who are now out of work as a result of the containment policies, he said, “money will soon be coming to you.”

Still, the Senate hasn’t even passed the second coronavirus aid package yet that the House passed. A Republican in the House, Rep. Louie Gohmert, R-Texas, held it up Monday and Sen. Rand Paul, R-Ky., held it up in the Senate on Tuesday.

Senate Majority Leader Mitch McConnell, R-Ky., said repeatedly Tuesday that the Senate will not adjourn until it passes additional stimulus packages.

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