Non-partisan National Journal says corporations win,
workers lose under the Bush economy
Dear Democratic Colleague,
As President Bush tries to tout his economic record, it's important that we continue to point to how poorly most workers have fared under the Bush economy. I wanted to be sure that you saw a recent National Journal cover story (attached) that overwhelmingly makes our case. I would encourage you to draw on the article as an independent, non-partisan source of information on the economy.
Here are some of the key points and excerpts from the October 14th National Journal article:
Incomes are down under President Bush.
"Income has lagged under Bush [t]he details tend to support Bush critics who say that most working people have gotten a smaller piece of the pie."
"The only recent president who had a worse record on income growth was - George H.W. Bush."
Job creation under President Bush has been weak by historical standards.
"Part of the story is the slow growth in jobs - 4 million since 2001, compared with Reagan's 9 million and Clinton's 16 million."
Economic gains are going to corporate profits rather workers' wages.
"Corporate profits have doubled under Bush Some corporate profits are retained and invested, but the bulk are distributed disproportionately to the wealthy "
" [W]orkers got a much larger slice of the pie under Reagan and Clinton. Under Clinton, pay raises were about four times as much as profits "
Growth in workers' "compensation" simply means that health insurance is costing more.
"When confronted with the facts about how little worker pay has increased, Bush officials often note how other compensation, in the form of pension benefits and health insurance, has risen faster than average " But, "[w]orkers could argue that this growth doesn't really count as money in the bank - almost all of it went for higher health care premiums, at a time when coverage is not improving for many workers and half of all workers aren't covered at all. In addition, as compensation in the form of health insurance from companies has increased, so too has the amount deducted from paychecks for health care."
Corporations win, workers lose under the Bush economy.
"The winners under Bush have been corporate owners who are getting a larger piece of the pie than those groups did under Reagan or Clinton. The losers have been private-sector workers, even with their more expensive health insurance, who have seen their income stagnate and their share of the pie dwindle since the Clinton years."
s/ BARNEY FRANK