The Jaker

Mostly rational politics, with occasional rants about how a few crazy Republicans are ruining the country.

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Wednesday, December 07, 2005
Bush to Play Up Economy in 2006
The Wall Street Journal is reporting that Bush's economy speech at the John Deere-Hitachi plant yesterday is the blueprint for Bush's primary talking points going into the mid-term elections next November. Bush will try to talk about somewhat solid overall GDP growth, among other things.

Here is what Democrats have to do in 2006 to combat this: focus on the median person! It might be true that a few aggregate economic factors will be in Bush's favor, but the utter idiocy of Bush's handling of the economy is that it's easy to make aggregate numbers look okay by making the rich a whole lot richer, and keeping everyone else the same!

The growing income and wealth gaps in America are staggering, and they are primarily the result of Bush's policies benefitting the wealthy. Median real wages are not going up in America... they're not even holding steady. They are declining!

Bush has crafted an entirely unsustainable long-term economic model, and Democrats have to call him on it. The average American family is no better off, and in fact is heavily in debt to foreign governments, because of Bush. Democrats must fiercely fight Bush on this point.
posted by CB @ 9:10 AM  
  • At 5:25 PM, Blogger Bryce said…

    I've always been suspect when folks claim that the gap between the rich and the poor is growing. Of course it's growing! In an inflationary economy the gap should always grow, right?

    For example, if a rich man earns $10,000 and a poor man earns $1,000, the gap between rich and poor is $9,000. If, next year, wages adjust for, say, 3% inflation, the rich man now earns $10,300 and the poor man earns $1,030. The gap is now $9,270. The gap between rich and poor in terms of dollars grew even though their wages were merely adjusted for inflation. In fact, the gap would between the rich and the poor would grow even if the rich man earned 1% more and the poor man earned 9% more!

  • At 5:39 AM, Blogger CB said…

    No one talks about these things in nominal dollars. It's about percentages. In your example the poor person still earns 10% of the rich person. But that percentage is slipping.

    See this.

    As someone who works in finance, I'll tell you that an inflation-adjusted wage increase would be laughed at. You expect at least a 10% raise, and aren't happy unlesss it's 15+. But the transit workers in New York right now are fighting for like 4%. It's ridiculous. The society is set up (and I'm not just blaming this on Republicans, but Bush is the WORST) to perpetuate the aristocracy.

    So yes, we should be concerned that Bush is giving tax breaks to rich investors, whose wealth adds very little productivity to the economy, but a lot of excess the housing market and keeps the long bond rate low. Hooray

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