Kerry Press Release: NEW REPORT: Bush Economy Leaves Families Less Secure

[Skinner]

Note: Full report to be posted later today at johnkerry.com

************

For Immediate Release
July 13, 2004

NEW REPORT: Bush Economy Leaves Families Less Secure

***New State-by-State Numbers Break Down Bush’s Broken Jobs Promise***

Washington, DC –The Kerry-Edwards campaign released a new report today with a state-by-state look at President Bush’s broken promises on American jobs and an analysis of just how far off we are from the Bush administration’s assertion that this is the best economy of our lifetime.

America’s middle-class families are less financially secure today than they were when Bush took office. He predicted that his job creation package would create nearly 6 million jobs. Since that time, the American economy has lost nearly 1 million jobs.

Bush is 7 million short of his job creation goal nationally, and across the states, his failure can be counted in the tens of thousands of jobs - 458,000 short in Ohio, 397,000 short in Michigan and 342,000 short in Pennsylvania.

“This administration says this is the best economy of our lifetime. They say this is the best we can do. They’ve even called us pessimists. Well, I say, the most pessimistic thing you can say is that America can’t do better,” Democratic Presidential candidate John Kerry said. “Don’t tell us losing 1.8 million private sector jobs is the best we can do. In 2004, we have to bring back our mighty dream again. We have to make America all that it can become.”

President Bush faces the worse jobs record of any President running for reelection in nearly 60 years. Making matters worse, new jobs being created in the Bush economy pay less, offer fewer benefits and come at a time when families are paying more for health care, energy and other every day costs.

Ninety percent of the jobs created are in low-wage industries and less likely to offer benefits. According to today’s report, new jobs in Colorado pay on average $17,691 less. Other examples: $16,191 less on average in New Hampshire and $15,513 less on average in Washington.

“Some people are satisfied with the way things are, I’m not,” Kerry said. “Our country is stronger when the machines are running, products are being made and people are cashing paychecks to care for their families. We can do better, and with the help of the American people in November, we will.”

Kerry has a comprehensive plan to create 10 million new, better paying jobs. He will put an end to tax breaks that encourage companies to ship jobs overseas and create the jobs of the future by strengthening America’s commitment to technology and innovation. To help families save and get ahead, he will bring down health care costs, pursue a comprehensive strategy to lower energy costs and take steps to open the doors of higher education to all Americans.

-30-

WILL GEORGE BUSH TAKE RESPONSIBILITY FOR ENDANGERING AMERICA’S ECONOMIC SECURITY?
A New State-by-State Look at How Bush Missed His Mark

When George Bush took office, he promoted a tax cut, job stimulus plan that he claimed would create millions of new jobs. As most Americans know today, his tax cuts for the wealthy did little to create new jobs for their families. As a result, America’s middle class families are less financially secure today than they were when Bush took office. With 1.8 million lost private sector jobs combined with lower income and smaller wages, Americans are struggling to meet their families’ needs. Across the states, Bush’s failure can be counted in the tens of thousands. George Bush has yet to take responsibility for his failure to deliver on his promise to create new jobs.


BUSH MISSED THE MARK:

7 Million Jobs Short Of President Bush’s Prediction. Annual projections in the 2002 Economic Report of the President implied that nearly 6 million new jobs would be created between January 2001 and May 2004. Instead, we have lost more than 1 million jobs. As a result, we are 7 million jobs short of the prediction that President Bush made after 9/11, the tech bubble, and the recession. (Bureau of Labor Statistics; Economic Report of the President, 2002)



Bush Faces the Worst Jobs Record of Any President Running for Reelection. George Bush faces the worst jobs record of any President who has run for reelection in nearly sixty years. From January 2001 when Bush first took office until May 2004, the economy has lost 1.8 million private sector jobs. (Bureau of Labor Statistics)



(Jobs Record from January of Start of Term to June Before Election)

Bush Missed His Jobs Prediction in 11 of the Past 13 Months:



1.3 Million More Americans Are Unable To Find Full-Time Jobs. Since January 2001, the number of Americans working “part time for economic reasons” has risen from 3.3 million to 4.7 million – a 1.3 million increase. That is a 40 percent increase. Many or most of these jobs lack health insurance and other benefits. (BLS)

Weak Job Creation Threatens the Economic Recovery Making America Less Secure. The Morgan Stanley report indicates that this weak job recovery threatens our economic stability. The report found, “low-quality job creation poses a serious risk to sustained economic recovery…the character and quality of American job creation is changing before our very eyes.” (Morgan Stanley, 7/9/04)

NEW JOBS PAY LESS WITH FEWER BENEFITS MAKING AMERICANS LESS SECURE:

Wages Have Not Been Keeping Up With Inflation. Average weekly earnings fell 0.5 percent in June 2004, not even accounting for inflation. Over the last year weekly earnings rose 1.7 percent. That is not enough to keep up with inflation, which increased 3.1 percent between May 2003 and May 2004. (BLS, note: inflation data is not yet available for June)

Wages Are The Lowest Share Of National Income On Record – While Profits Are Rising. Wages as a share of national income fell from 55.4 percent in 2001-Q1 to 51.5 percent in 2004-Q1. That is the lowest share since these data started being collected in 1929. At the same time, the profit share has risen to nearly the highest rates in decades. (Bureau of Economic Analysis)

Wages are Low While Profits are High. The Wall Street Journal pointed to the growth in corporate profits and the decline in wages as an example of the way middle class families are being squeezed by the Bush economy. “The slice of the national economy pie going to wages -- now about 63% -- is lower than it has been since 1966. Commerce Department data show after-tax corporate profits at 9.6% of gross domestic product, the highest since the government began counting this way in 1947.” (Wall Street Journal, 7/1/04)

The Average Wage in Sectors Gaining Jobs was 30 Percent Lower than the Average Wages in Sectors that Lost Jobs. CIBC World Markets found that wages in sectors gaining jobs are less than in sectors that are losing jobs. The report showed that, “the average wage in sectors that gained jobs over the past three years was 30% lower than the average wage in industries that lost jobs. This was a sharp reversal from the previous five years.” (CIBC World Markets, 6/21/04)

Almost 90 Percent of the New Jobs are in Low-Wage Industries. A Merrill Lynch report on the jobs situation showed job growth has been concentration in low-wage industries. The report noted, “Almost 90% of the net new jobs created in the 10 months have been in relatively low-wage industries – where income gains are growing three percentage points slower than the average wage growth.” (Merrill Lynch, 7/9/04)

New Jobs Are 13 Percent Less Likely to Have Health Care Benefits. A report by the Economic Policy Institute shows that the jobs being created are 13 percent less likely to have health care benefits. (Economic Policy Institute, March 2001 through March 2004, 5/12/04)

High Health Care Costs Discourage Employers From Hiring Highly Compensated Workers. Higher health care costs are putting pressure on the labor market and slowing the hiring of high-wage workers. Economy.com reported, “Ongoing problems with under-funded defined benefit plans and prospects for strongly rising health care premiums long into the future are likely dissuading employers from hiring highly compensated workers. (Economy.com, July 2004)

IMPACT ON THE STATES:

The following chart demonstrates how poorly Bush did predicting how many jobs his economic program would create and how the new jobs being created on average pay significantly less. This chart is based on the proportion of jobs in each state in January, 2001 and the 5.7 million jobs that Bush predicted he would create by May, 2004.



(Bureau of Labor Statistics; EPI)

www.johnkerry.com

Paid for by John Kerry for President, Inc.

[senseandsensibility]

1. I'm glad to see Kerry

spelling it all out like this. I guess my only question would be, will this get any play in the mainstream media? I hope he does a condensed version as a campaign commercial. The only way Kerry can get the media to air anything negative about *'s economic policies is to pay for the time. :(

[AP]

2. This last table is very telling, along with comment about corp profits in-

creasing.

Republicans are moving people from working to working poor.

Here's how they're doing that: