Bush, Republicans Find Strong Economy Doesn't Win Middle Class

[OhioChick]

By Brendan Murray

Oct. 30 (Bloomberg) -- Republican Representative Gil Gutknecht is talking up the strong economy in the closing days of a tight re-election campaign. The problem: Middle-class voters in his southern Minnesota district aren't inclined to celebrate upbeat economic statistics.

Gutknecht, a six-term House member, isn't alone. Republicans who planned to use low unemployment, cheaper gasoline and a surging stock market as a shield against discontent over the Iraq war and congressional scandals are discovering that there's little protection to be had.

The reason, some analysts say, is the gap between a statistically strong five-year expansion and strapped family budgets. Middle-class households' finances are getting stretched as workers struggle with higher costs for health care, education, home heating and property taxes.

``The story used to be a rising tide raises all boats, and now it just raises all yachts,'' says Edward Tufte, a political scientist at Yale University in New Haven, Connecticut. ``The benefits of a good economy are much more narrowly focused now on the top 20 percent.''

http://www.bloomberg.com/apps/news?pid=20601087&sid=aBlgJNUaeQic&refer=home