grubhub rewards you. get a free delivery perk when you order. - [group] grubhub. (upbeat music) ♪ >> john: welcome back to "face the nation." we want to go now to neil cashkari, president and c.e.o. of the federal reserve bank of minneapolis. good morning. >> good morning. >> john: i want to start with the question of the g.d.p. numbers. they were awful in the last quarter. what did you see inside of those numbers? >> well, the thing that surprised me the most economically, we knew the g.d.p. would be very low, with 20 million americans still out of work, and the economy is reeling. there is one bright spot that i sue saw, though. the u.s. savings has taken

off. let me tell you what is going on, those of us who are fortunate to tell have our jobs, we're saving a lot more money because we're not going to restaurants or movie theaters or vacations. that means we have a lot more resources as a country to support those who have been laid off. historically we would be worried about racking up too much death, wer generating the savings ourselves. that means congress has the resources to support those most hurting. >> john: one of the things the republicans have brought up when they talk about this aid bill, particularly the size of the unpliem, it i unemployment,s putting too much strain on the economy. that's the first part, and the second is, won't racking up the debt be something we have to deal with in the long-term? >> right now we're generating so much more savings than before it is simply not an issue because we're not having to go abroad, so that

provides a lot of relief right now. if you look over the long-term, our inflation has been very low. inflation continues to be low. inflation expectations continue to drift lower. right now the u.s. can fund itself at very, very low rates. congress should use this opportunity to support the american people and the american economy. i'm not worried about it. if we get the economy growing, we will be able to pay off the debt. >> john: let me say inside of this bill they're debating, on the $600 weekly unemploymen help, one of the republican arguments is at $600, wil there is some number o people getting paid more than they would working and therefore they're staying home. do you see any of that based on that idea? >> not right now, not when 20 million people are out of work relative to february. there are so many fewer jobs than workers available. at some point it will be an issue. when we get the unemployment rate back down to 5%, and we want to get it back down to 4% or

3.5%, yes, that disincentive becomes material. right now it is not a factor in the macro economy in the u.s. because we have so many americans out of work. >> john: what is your view about the path back to economic health? there have been halting efforts to reopen and to get the economy going again. are they going to continue being halted until there is a vaccine? when does robust behavior come back, and how are people behaving when it does get more robust? >> well, you're right. it is really the virus and our ability to control the virus either through clamping back down, getting the case count down so we can test and trace and keep this things under control. or eventually getting a vaccine or a robust theory. that's the only way we can have a real robust economy. otherwise we'll have flare-ups, lockdowns and many more job losses and bankruptcies for an extended period of time,

unfortunatelyly. >> john: the president is not interested in locking things down again at all. in fact, he is pushing in the other direction. so if that is not going to happen, does that hurts the economy more and are there losses that might happen during that period of time? >> for sure. if we were to lockdown really hard -- i hate to even suggest it, people will be frustrated by it, but if we were to lockdown hard for a month or six weeks, we could get the case count down so our tracing and testing could control it. in the northeast, they had a rocky start, but they're doing a pretty good job right now. if we don't have that and we have this raging virus spreading throughout the country for the next year or two, which is entirely possible, we're going to see many, many more business bankruptcies, small businesses and big businesses, and that will take a lot of time to recover from, to rebuild

those businesses and to bring workers back in and reengage them in the workforce. that will be a much slower recovery for all of us. >> john: what role does fear play in your assessment of people's economic behavior? if two-thirds is driven by consumer behavior, how much is the fear of getting sick, a virus question, than it is poking and pushing at supply and demand through legislation or some other matters? >> fear is a huge factor. you can see this around the world. some countries that didn't lockdown officially based on public policy, had a similar economic response because their own citizens were afraid, and they said, no, i'm not taking that risk, i'm going to shelter at home. many of your viewers, the american people, are paying close attention to what is happening to the virus. and you're seeing a similar economic behavior around the country, regardless of local public policy. so fear is a huge driver. that's why they need to have confidence they will be safe, their families will are safe, and their

kids will be safe. until we have that real confidence, not just wishful thinking, but in the data real evidence it is safe, we're not going to have a meaningful economic recovery. >> john: neil, thank you so much for being with us, breaking down the economic numbers. we'll be right back with the latest on the coronavirus and dr. scott gottlieb. your motivational coac? yo devin! remember to brush in a circle motion. thank you... dj... khaled. tiny circles, devin. do another one. another one. is this good? put in that work, devin. don't give up. geico. save an extra 15% when you switch by october 7th.

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>> john: and we're back with former f.d.a. commissioner scott gottlieb, who joins us from westport, connecticut. good morning. >> good morning. >> john: i want to start with dr. anthony fauci said it is impossible to predirect where thpredict when f this virus will go. >> i think we're liking to see regional outbreaks -- like we've been seeing, we saw a very dense epidemic in the northeast. they got it under control with a very strict lockdowns. and they're starting to get it under control in

the south states, with some actions they took, but more likely with the collective action of individuals, starting to withdraw from activity a little bit and wear masks more. i think we're likely to see this continue, where there will be these epidemics in different parts of the country, and cocompensatory action to get it under control. so as the sunbelt states are declining, we're seeing infection rates kick up in the midwest. right now the rate of infection across the country is one in 70 individuals are actively infected. there is a lot of infection across the entire united states. >> john: is what is happening in the midwest basically the same old story, just a version of what was happening in the northeast and then south and west. it is just their turn now? >> i think there is some truth to that. i think there is a lot of infection around the country. it is going to be hard to keep the virus out. even in the northeast right now it will be hard for that part of the country not to get receded. you're seeing it rotate

through parts of the country. after parts of the country become infected by this, you see some increased vigilant. hopefully in states like texas and florida you're going to see consumers adopt masks more. the question is: can the combination of targeted mitigation, like keeping bars closed, keeping indoor congregate venues closed with universal adherence to masks or greater adherence to masks, is that enough to keep the virus out. if you look at a state like connecticut, where i am, right now the infection rates are very low. they've kept bars closed and restaurants limited. people are wearing masks here. but at the same time, they've reopened parts of the economy. so is that enough. is it enough to keep the virus out? we certainly hope so. if it is, we have sort of found the happy medium between strict lockdowns

and letting this spread unchecked. >> john: it seems people have to experience it a little bit. you still here white house public health officials imploring people that this can strike you. how does it affect you that we're still getting the message out that this can come to your community as well. >> i think what we took for granted was when new york was having the problem, large parts of the country was unaffected. and until you're touched by it, you don't appreciate the full significance of it. i think there will be some residual caution on the parts of the states that now have been affected. i hope it is not the case that every part of the country needs to have some level of epidemic to get collective action that will keep this at bay. but there is some element of that. that said, i think now that more people have seen

how devastating this can be and how dangerous it is, i think you'll see more residual action on parparts of the country. the fact that we give so much control to local governments, but in the setting of a national pandemic, where you want more central, top-down policy making to keep this at bay across the entire unted states in more of a uniform fashion, the things that make us great and dynamic as a economy work against us in this kind of a setting. >> john: we're about to head into the school season. what's your feeling about what should be done and how close are we to actually doing that? >> well, look, i think we should try to open the schools. we should lean forward because of all of the reasons it is important to get kids back in the classroom. here in connecticut, we probably will be able to open the schools, they have good testing and tracing in place. but there is a lot to know

about this virus. the virus has probabl probably t infected that many kids relative to the flu. i think this is complicated by the fact there is information on both sides of this debate to really sort of inform the debate and harden positions. we've seen schools open and other countries successfully without outbreaks, albeit with a lot of precautions put into place. and we've seen summer camps open with pretty dense outbreaks. in georgia, where summer camps were open, and 60% were infected. we saw schools open in israel, and there were large outbreaks. so there is anecdotes and experiences on both sides of this debate. i think to counsel enough caution if we do reopen schools, and i think we should try to and many parts of the country will have that opportunity, we should take every precaution to try to prevent outbreaks, and that also includes protecting teachers. they need to be given

proper protective equipment and ways to keep themselves safe in the classroom. >> john: we have 15 seconds left, dr. gottlieb. any optimism you see in these numbers? >> i think we can be optimistic we'll probably have less of a flu season than usual. maybe we found a happy medium between strict lockdowns and betting the spred unfettered. and when you look at certain states like connecticut and others -- i just happen to be familiar with connecticut, where there is targeted testing and masking. >> john: thank you, dr. gottlieb, for being with us. we'll be back in a moment.

>> john: this morning we have a new cbs battle ground tracking that looks at the race in north

carolina and georgia. president trump won those states in 2016, but frustration about the handing of the coronavirus is taking a toll on mr. trump's chances. both states are in play. former vice president biden is up 48 substance in north carolina, and in georgia, he is up 46 to 45. that's a state a democrat hasn't won since 1992. anthony salondo joins us from his home in west chester county, new york. good morning, anthony. >> hey, john, good to see you. >> john: it's great to see you. why did you pick these two states? >> it is part of our look at what states may be in play. the electoral college is what decides the presidency. you have to look at all of the states that are expanded into our categories or toss-up or in play. these are not two states we expected to be on the

list earlier this year. but it is that frustration about coronavirus, and you also see in places like georgia and north carolina a larger story, and that is that these growing metro areas, whether it is around atlanta or charlotte or others, where those suburbs have been trending towards the democrats the last couple of cycles. something you want to keep an eye on in a lot of states this year. you've also seen around those areas college graduates trending towards the democrats. in particular, white college-degree-holding women, in which biden now has double-digit leads. those are all trends the democrats need to keep going if they're going to win this election. >> john: for biden to do well in these states, he is making incursions into what is trump territory. for him to do well, he'll have to do well with the black vote in north carolina. in 2016, it was 20% of the vote, and it is about 30% in 2016 in georgia.

wat did your numbers tell you about the black votes in these two states? >> a couple of things. one is strong support for joe biden. and, number two, you want to always look at turnout among all groups, but in particular among the black vote, in our surveys, they tell us they don't think it is easy for them to vote. so that's important, especially this year. and the other thing about it is, while the bulk of joe biden's support has come in our polling, for people who are saying they're voting for joe biden to vote against donald trump. and in these states, they say they're voting for joe biden because they like joe biden. enthusiasm is always important. >> john: these are two states we should look at as we talk later in the broadcast about the ease of vote. what did you find in terms of the coronavirus response and the way the voters are feeling about the president? >> here you see, as we have in other states, a --

basically a negative view of how the response has gone. so you find that people think their states reopened, in the case of georgia, too quickly. and you find that people say they think the administration's approach to this has hurt rather than helped georgia in particular. so that's weighing down on him a little bit. and then you look and you say, well, the people who feel that way, was the administration pressuring the state? and people say, yes, they feel that way. so that accrues a little bit back to the president. the other thing we look at, john, you want to look at the expectation against the response. and here we found we asked people is the coronavirus that public policy and good public policy can do anything about? and the majority is, yes, it can. but then we ask, well, is the administration doing all it can? and the majority said, no, they thought they could be doing more. >> john: briefly to

button that up, they believe that the president is to blame for opening too quickly, but they also think he should be trying harder? >> yes, they do think that he could be trying harder. in fact, when asked to describe what they think the administration's approach is, more say they think the administration is just letting the virus run its course as opposed to trying to contain it. while you look at the vote among people who think that, and while they're not voting for the president, but they're also feeling that he is not doing a good job handling the virus. >> john: all right, anthony, thank you so much for being with us. and we'll be right back. ♪ all we do is hand you the bag. simple. done. we adapt and we change. you know, you just figure it out. we've just been finding a way to keep on pushing. ♪

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the geico giveback. helping riders focus on the road ahead. >> john: we wafnl we want to go to the president and c.e.o. of civil rights, anita gupta. she is in arlington, virginia. good morning. >> good morning. >> john: so white house chief-of-staff meadows says the election is going

to be on the 3rd. the president flirted the idea of delaying it. what is your response to that? >> well, the president can't delay it. as the state of the general election has been set by federal law ever since 1945. we have voted through the civil war, through the spanish flu, through the great depression, at the date set by the general election. the date can only be moved by congress, and i highly doubt that speaker pelosi and the democratic-controlled house is ever going to touch that. so this election is happening on november 3rd. >> john: the president is raising the complexity of voting in the era of coronavirus about the outcome of the election. what do you see as the challenges that we should keep our eye on between now and election day? >> the states -- you saw what happened in wisconsin and georgia and other states in the primaries. those are really wakeup calls for what states need to do. states need to immediately start changing the rules. we need expanded vote by

mail, with pre-paid pos tagpostage stamps. it is really important that states change the rules to allow ballots that are postmarked on or before election day to be counted. it is really important, also, that people apply for their absentee ballots so as not to overwhelm the system. there are native-american voters, voters with disabilities, they won't feel comfortable voting by mail. so you need health-compliant voting places, and you need p.p.e. all of this stuff costs money. you need extended voter online registration. these are the myriad of changes that states are making around the country. the problem is congress has failed to give the states the adequate resources they need to be able to make all these changes. these changes are expensive, and states are strapped for cash.

and about 10 weeks ago, they had 3$.6 billion, that was pursuant to an extensive study about what it would take, and now the senate and the house needs to pass this legislation and get that money into the hands of the states so they can be ready to make all of these changes immediately. time is of the essence. and i would just say, john, this is new. in 2018, fou voters voted by mail. you need massive votereducatione country. ing to cost we need to beplying this information on platforms like facebook. >> john: sor changes, the prospect see dim. but in advance of that, is there anizens can do tocate themselves in adv the election and theseibly chan? >> abere is a lot of sites that providinginformation. stillivote.org i. really important as states arese

changes ly for theentee lots early, and they fill th out and send them back early so as not to overwhelm polling places on the dayion, on november 3rd. and the media has to be prepared. we're in an unprece time. we're not going to be able calle night of november 3rd ifwe wante ballots to bnted. and people will ar vot droves ia ever before. we want to make sure all of the ballots areally counted. so we to become s notion we're noe those sec of state need to be ableob and o certify their results. and then th electoralege will m december, and the transition w january. prepare forction seasor case, delay. not ne fraud. in say be ara work beidone to me isn't fraud. >> yeah, lootes like coh, washington, hawaii, thn using vote by mail, in somces almost exclusively wihout

a single hitch, and hundreds of millions of n cast. ows this is a reliable form of voting.ed to be able to cast their ves. they should do it ear but, yes, ults won't be available tt night. we have to be okay h that. the most imphing t people,tes areually voters of color o don't have -- they tend to have absentee ballots rejected at an ear state. we can do thi the united states of america can dos in2020, even ama >> john: anita, thanr being with s today.thanks for watching.l bt we"face the nation," i'mkerson. captioning sponsor cacess group at wgbhss.wgbh.org (upbeat music)

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