What Rising Tide?
The Emperor continues to tout the improving economy, yet most Americans haven't noticed any improvement. In fact, most Americans are losing ground. The recent Census Bureau reports make it clear that the average worker is working harder for less money once inflation is factored in. Even the Washington Post has noticed (or its bipolar disorder is manifesting). In an editorial in today's edition, WaPo suggests the President adjust his rhetoric and his policies.
EMERGING FROM a meeting with his economic team at Camp David on Aug. 18, President Bush declared that "solid economic growth is creating real benefits for American workers and families." This assertion was false. Mr. Bush should use this Labor Day to rethink his rhetoric and adjust his policies.
The latest evidence on what the economy is doing for workers comes from last week's Census Bureau report. This showed that the growth cycle that began at the end of 2001 has in fact created remarkably few benefits for most Americans. Between 2001 and 2005 the income of the typical, or median, household actually fell by 0.5 percent after accounting for inflation, even as workers' productivity grew by 14 percent.
...In the first stage of a recovery, unemployment falls; in the second stage, a tight labor market pushes up wages. But this second stage is taking an awfully long time to arrive. In 2005, the fourth year of the expansion, the median income did rise slightly, but that reflected a gain for retirees. The typical full-time worker continued to fall backward.
There are all sorts of reasons for this trend, and not all of those reasons can be tied to the current regime. Still, the government's refusal to address the problem is certainly not helping, and the current economic policy is aggravating the problem further. Pouring billions down the rat hole in Iraq is part of the problem. Giving enormous tax breaks to only the wealthiest of Americans is part of the problem. Failing to address the problems of health care costs is part of the problem. Rewarding companies even as they outsource jobs abroad is part of the problem. Busting the federal budget until the deficit stretches into the third generation is part of the problem.
Americans have done worse in the last five years than they have in decades. Rising fuel and energy costs, especially as those rises begin rippling into the cost of food and other basics, make this year and next look like a continuation of the bad news.
Newt Gingrich was right on the money when, tongue firmly in cheek, he suggested the ideal Democratic campaign slogan for 2006: "Had enough?"
Hopefully the American electorate will do the math and then shout "YES!" come November.
EMERGING FROM a meeting with his economic team at Camp David on Aug. 18, President Bush declared that "solid economic growth is creating real benefits for American workers and families." This assertion was false. Mr. Bush should use this Labor Day to rethink his rhetoric and adjust his policies.
The latest evidence on what the economy is doing for workers comes from last week's Census Bureau report. This showed that the growth cycle that began at the end of 2001 has in fact created remarkably few benefits for most Americans. Between 2001 and 2005 the income of the typical, or median, household actually fell by 0.5 percent after accounting for inflation, even as workers' productivity grew by 14 percent.
...In the first stage of a recovery, unemployment falls; in the second stage, a tight labor market pushes up wages. But this second stage is taking an awfully long time to arrive. In 2005, the fourth year of the expansion, the median income did rise slightly, but that reflected a gain for retirees. The typical full-time worker continued to fall backward.
There are all sorts of reasons for this trend, and not all of those reasons can be tied to the current regime. Still, the government's refusal to address the problem is certainly not helping, and the current economic policy is aggravating the problem further. Pouring billions down the rat hole in Iraq is part of the problem. Giving enormous tax breaks to only the wealthiest of Americans is part of the problem. Failing to address the problems of health care costs is part of the problem. Rewarding companies even as they outsource jobs abroad is part of the problem. Busting the federal budget until the deficit stretches into the third generation is part of the problem.
Americans have done worse in the last five years than they have in decades. Rising fuel and energy costs, especially as those rises begin rippling into the cost of food and other basics, make this year and next look like a continuation of the bad news.
Newt Gingrich was right on the money when, tongue firmly in cheek, he suggested the ideal Democratic campaign slogan for 2006: "Had enough?"
Hopefully the American electorate will do the math and then shout "YES!" come November.
posted by Diane at 4:57 AM
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