Week In Review
July 15, 2005
BUSH'S MID-SESSION DELUSION
With the 2005 Congressional legislative session halfway over, Bush and the Washington Republicans have little to show on domestic issues. But this week, President Bush used his "Mid - Session Review" to paint a rosy picture of the nation's economic future. The President pointed to a slight reduction in the expected national deficit as evidence that the economy is improving - but can we trust the President and the Republican spin machine to tell the truth to America's families?
The national deficit is much worse than the Administration makes it out to be, and because of his irresponsible tax cuts, Bush has presided over an $11 trillion ten-year fiscal collapse. President Bush can say what he wants, but he still turned a record budget surplus created by the Administration of President Bill Clinton into a $333 billion national deficit.
In fact, the limited economic progress that has been made is not benefiting middle class Americans. Wages are stagnating as manufacturing jobs are being lost and are being replaced with lower-paying service jobs. Health costs are rising while health insurance coverage is declining -- and is in turn feeding the increase in personal bankruptcies. Just what kind of delusion is Bush laboring under when he claims that our economic situation is getting better?
Americans simply can't trust Republicans with their money. We need a return to the fiscal discipline that only Democrats can and have offered. The DNC Research team has laid out the facts for each of us! Read further to learn where Bush has let down American families. Share this information with your family, your friends and speak out on talk radio and your local newspaper. Your voice can rise above the Republican spin machine - but only if you stand up to be the voice of the Democratic Party in your community.
DEFICIT IS MUCH WORSE THAN BUSH SAYS IT IS
Bush Turned Record Surpluses into Record Deficits with an $11 Trillion Fiscal Collapse
In 2001, Bush Inherited Projected 10-Year Surplus of $5.6 Trillion. In January 2001, CBO projected that the total surplus would be $281 billion in 2001, and approach $889 billion in 2011. Surpluses were projected to accumulate to $5.6 trillion over 2002-2011-"large enough to allow the federal government to retire all available debt held by the public" by 2009. [CBO, Budget and Economic Outlook, 1/01]
Now, Deficit Will Be Record $333 Billion In 2005. Bush's own OMB projects that the federal budget deficit will be $333 billion in 2005. Bush's newest budget proposals added $30 billion to the deficit CBO currently projects for 2005, mainly as a result of the proposed supplemental appropriations. [OMB, 2005 Mid-Session Review, 7/13/05; CBO, Preliminary Analysis of the President's Budget Request for 2006, 3/4/05]
Bush Squandered Surplus On Tax Cuts And Excessive Spending
"And we can proceed with tax relief without fear of budget deficits, even if the economy softens." [Bush, Kalamazoo, MI, 3/27/01]
Tax Cuts Caused 60 Percent of 2005 Deficit. In 2005 alone, changes in tax law enacted since Bush came into office increased the deficit by $247 billion - more than 60 percent of this year's projected deficit. [Center on Budget and Policy Priorities, 1/25/04; Washington Post, 1/26/05]
Bush Increased Non-Defense Spending by 36 Percent During First Term. In total, non-defense discretionary spending increased about 36 percent during Bush's first term in office. The conservative Heritage Foundation estimates government spending climbed twice as fast under Bush as under Clinton. Although Bush is tempted to blame Congress, Bush has not vetoed any bills. [Heritage Foundation, 12/16/03; Cato Institute, 3/3/04; NYT, 1/24/04; Economist, 10/9/04]
Bush's Newest Budget Is Fiscally Irresponsible: It Would Add to the Deficit While Hardly Reducing Overall Spending.
Bush's budget cuts will reduce the record $394 billion deficit by only about $15 billion. Bush's plan also does not include future expenses of the continuing wars in Afghanistan and Iraq - expected to cost $81.9 billion this year. [New York Times, 2/7/05; CBO, Budget And Economic Outlook: Fiscal Years 2006 to 2015, 1/05, Preliminary Analysis of the President's Budget Request for 2006, 3/4/05; Washington Post, 2/7/05, 2/15/05; AP, 2/6/05]
Despite His Promises, Bush Exploded the National Debt
Each American's Share of the $7.8 Trillion National Debt Is More than $26,000. Bush's deficits have increased the national debt to $7.84 trillion - totaling nearly $26,437 for each man, woman, and child in the United States. [Treasury Dept. 6/2/05; Washington Post, 4/22/05]
Bush's Debt Will Increase Mortgage Interest Rates and Reduce the Value of Stocks.
Bush's increases in the national debt will drive up home mortgage interest rates. For example, a family with a $250,000, thirty-year mortgage will pay an additional $2,000 a year in interest because of Bush's deficits. Bush's deficits lead to higher future interest rates, which can hurt stocks, for two reasons. First, higher interest rates make bonds, CDs, and money-market funds more attractive relative to stocks. Second, higher interest rates mean that a dollar of future corporate profit is worth less today than if rates were lower. [Brookings Institution, Rivlin and Sawhill, Restoring Fiscal Sanity, 1/13/04]
THE JOB SITUATION IS GETTING WORSE
More Manufacturing Jobs - Which Typically Have Better Heath and Retirement Benefits than the Service Sector - Were Lost in June than Any Month Since September 2003.
24,000 manufacturing jobs were lost in June - the worst month for the sector since September 2003. The retail sector added only 2,000 jobs, a sign of weaker consumer spending. Only 200 jobs were created nationwide in June in the transportation and warehousing sectors - signaling weak demand at the front end of the economy where goods are shipped and stored on the way to users. [Atlanta Journal-Constitution, 7/9/05; Bureau of Labor Statistics, 7/05]
Latest Jobs Report Shows Growth Did Not Keep Pace with Population Growth.
The nation's payrolls expanded by roughly 146,000 jobs in June 2005 - less than the 150,000 jobs that must be created each month to keep pace with population growth.[Bureau of Labor Statistics, 7/05]
Americans Are Working More...
More Than 300,000 Americans Have Been Forced to Get a Second (Or Third) Job Over the Past Year. According to the Bureau of Labor Statistics, the number of Americans working more than one job at the same time has increased by 306,000 from June 2004 to June 2005 - increasing to 5.4 percent of all working Americans, and disproportionately those working multiple part-time jobs are women. [Bureau of Labor Statistics, http://www.bls.gov/news.release/empsit.t13.htm, 7/8/05]
...For Less Pay
About 88 Percent of New Jobs Created Pay an Average Hourly Wage Lower Than The National Average.
About 3.1 million of the new jobs that have been created since June 2003 are in the service sector with an average wage that is 40 cents lower than the national average. More than 310,000 of these jobs are temporary jobs. More than 900,000 of these jobs were in low-paying domestic industries, such as wait staff in restaurants and bars and retail workers. This means that more than a third of the new jobs created are temporary jobs or in low-paying domestic industries. In June, the strongest job growth came in professional and business services, which are typically not high-paying jobs. [Democratic Leadership Staff Analysis of BLS Data, 7/2005; Atlanta Journal-Constitution, 7/9/05; Center for Economic and Policy Research]
HEALTH COSTS ARE ON THE RISE
Total Family Premium Increased by $3,512 Under Bush to $9,950. Under the most recent data, from 2000 to 2004, total family premiums have increased by 55 percent from $6,438 to $9,950, an increase of $3,512. [Kaiser Family Foundation, Employer Health Benefits 2004 Annual Survey]
Workers' Out-Of-Pocket Costs Are the Fastest Growing Area of Medical Costs. According to a January 2005 federal study, consumers' medical bills grew 7.6 percent in 2003, the fastest growing area of health care spending. Today, nearly 25 percent of personal health expenses are from prescription drug fees. [Pharma Marketletter, 1/12/05]
Number of Uninsured Americans Continues to Rise
One in Seven Americans - 45 Million - Has No Health Insurance, an Increase of 5.2 Million Under Bush. Due in large part to the decimation of manufacturing jobs, the number of uninsured has swelled under Bush by 5.2 million to a total of 45.0 million, 15.6 percent of the total population. Since 2000, the percentage of Americans with health coverage through their job has dropped 3.2 percent to just 60.4 percent. [Census Bureau, Current Population Reports]
PERSONAL BANKRUPTCIES ARE ON THE RISE
Personal Bankruptcies at All-Time High.
In 2004, a record 1.6 million families filed for bankruptcy. [St. Petersburg Times, 4/15/05; Consumers Union, 2/25/04]
Nearly Half of Personal Bankruptcies Are Due to Rising Health Care Costs. Out of the 1.5 million personal bankruptcies in the United States in 2001, 46 percent were due to illness or medical bills. Nearly half of bankruptcies are due to health care costs, even though 75 percent of those who filed a medical-related bankruptcy were insured when their troubles began. [St. Petersburg Times, 4/15/05; Philadelphia Inquirer, 2/2/05; Consumers Union, 2/25/04; Employee Benefit News, 7/1/05; Health Affairs, 2/2/05]
BUSH'S MID-SESSION DELUSION
With the 2005 Congressional legislative session halfway over, Bush and the Washington Republicans have little to show on domestic issues. But this week, President Bush used his "Mid - Session Review" to paint a rosy picture of the nation's economic future. The President pointed to a slight reduction in the expected national deficit as evidence that the economy is improving - but can we trust the President and the Republican spin machine to tell the truth to America's families?
The national deficit is much worse than the Administration makes it out to be, and because of his irresponsible tax cuts, Bush has presided over an $11 trillion ten-year fiscal collapse. President Bush can say what he wants, but he still turned a record budget surplus created by the Administration of President Bill Clinton into a $333 billion national deficit.
In fact, the limited economic progress that has been made is not benefiting middle class Americans. Wages are stagnating as manufacturing jobs are being lost and are being replaced with lower-paying service jobs. Health costs are rising while health insurance coverage is declining -- and is in turn feeding the increase in personal bankruptcies. Just what kind of delusion is Bush laboring under when he claims that our economic situation is getting better?
Americans simply can't trust Republicans with their money. We need a return to the fiscal discipline that only Democrats can and have offered. The DNC Research team has laid out the facts for each of us! Read further to learn where Bush has let down American families. Share this information with your family, your friends and speak out on talk radio and your local newspaper. Your voice can rise above the Republican spin machine - but only if you stand up to be the voice of the Democratic Party in your community.
DEFICIT IS MUCH WORSE THAN BUSH SAYS IT IS
Bush Turned Record Surpluses into Record Deficits with an $11 Trillion Fiscal Collapse
In 2001, Bush Inherited Projected 10-Year Surplus of $5.6 Trillion. In January 2001, CBO projected that the total surplus would be $281 billion in 2001, and approach $889 billion in 2011. Surpluses were projected to accumulate to $5.6 trillion over 2002-2011-"large enough to allow the federal government to retire all available debt held by the public" by 2009. [CBO, Budget and Economic Outlook, 1/01]
Now, Deficit Will Be Record $333 Billion In 2005. Bush's own OMB projects that the federal budget deficit will be $333 billion in 2005. Bush's newest budget proposals added $30 billion to the deficit CBO currently projects for 2005, mainly as a result of the proposed supplemental appropriations. [OMB, 2005 Mid-Session Review, 7/13/05; CBO, Preliminary Analysis of the President's Budget Request for 2006, 3/4/05]
Bush Squandered Surplus On Tax Cuts And Excessive Spending
"And we can proceed with tax relief without fear of budget deficits, even if the economy softens." [Bush, Kalamazoo, MI, 3/27/01]
Tax Cuts Caused 60 Percent of 2005 Deficit. In 2005 alone, changes in tax law enacted since Bush came into office increased the deficit by $247 billion - more than 60 percent of this year's projected deficit. [Center on Budget and Policy Priorities, 1/25/04; Washington Post, 1/26/05]
Bush Increased Non-Defense Spending by 36 Percent During First Term. In total, non-defense discretionary spending increased about 36 percent during Bush's first term in office. The conservative Heritage Foundation estimates government spending climbed twice as fast under Bush as under Clinton. Although Bush is tempted to blame Congress, Bush has not vetoed any bills. [Heritage Foundation, 12/16/03; Cato Institute, 3/3/04; NYT, 1/24/04; Economist, 10/9/04]
Bush's Newest Budget Is Fiscally Irresponsible: It Would Add to the Deficit While Hardly Reducing Overall Spending.
Bush's budget cuts will reduce the record $394 billion deficit by only about $15 billion. Bush's plan also does not include future expenses of the continuing wars in Afghanistan and Iraq - expected to cost $81.9 billion this year. [New York Times, 2/7/05; CBO, Budget And Economic Outlook: Fiscal Years 2006 to 2015, 1/05, Preliminary Analysis of the President's Budget Request for 2006, 3/4/05; Washington Post, 2/7/05, 2/15/05; AP, 2/6/05]
Despite His Promises, Bush Exploded the National Debt
Each American's Share of the $7.8 Trillion National Debt Is More than $26,000. Bush's deficits have increased the national debt to $7.84 trillion - totaling nearly $26,437 for each man, woman, and child in the United States. [Treasury Dept. 6/2/05; Washington Post, 4/22/05]
Bush's Debt Will Increase Mortgage Interest Rates and Reduce the Value of Stocks.
Bush's increases in the national debt will drive up home mortgage interest rates. For example, a family with a $250,000, thirty-year mortgage will pay an additional $2,000 a year in interest because of Bush's deficits. Bush's deficits lead to higher future interest rates, which can hurt stocks, for two reasons. First, higher interest rates make bonds, CDs, and money-market funds more attractive relative to stocks. Second, higher interest rates mean that a dollar of future corporate profit is worth less today than if rates were lower. [Brookings Institution, Rivlin and Sawhill, Restoring Fiscal Sanity, 1/13/04]
THE JOB SITUATION IS GETTING WORSE
More Manufacturing Jobs - Which Typically Have Better Heath and Retirement Benefits than the Service Sector - Were Lost in June than Any Month Since September 2003.
24,000 manufacturing jobs were lost in June - the worst month for the sector since September 2003. The retail sector added only 2,000 jobs, a sign of weaker consumer spending. Only 200 jobs were created nationwide in June in the transportation and warehousing sectors - signaling weak demand at the front end of the economy where goods are shipped and stored on the way to users. [Atlanta Journal-Constitution, 7/9/05; Bureau of Labor Statistics, 7/05]
Latest Jobs Report Shows Growth Did Not Keep Pace with Population Growth.
The nation's payrolls expanded by roughly 146,000 jobs in June 2005 - less than the 150,000 jobs that must be created each month to keep pace with population growth.[Bureau of Labor Statistics, 7/05]
Americans Are Working More...
More Than 300,000 Americans Have Been Forced to Get a Second (Or Third) Job Over the Past Year. According to the Bureau of Labor Statistics, the number of Americans working more than one job at the same time has increased by 306,000 from June 2004 to June 2005 - increasing to 5.4 percent of all working Americans, and disproportionately those working multiple part-time jobs are women. [Bureau of Labor Statistics, http://www.bls.gov/news.release/empsit.t13.htm, 7/8/05]
...For Less Pay
About 88 Percent of New Jobs Created Pay an Average Hourly Wage Lower Than The National Average.
About 3.1 million of the new jobs that have been created since June 2003 are in the service sector with an average wage that is 40 cents lower than the national average. More than 310,000 of these jobs are temporary jobs. More than 900,000 of these jobs were in low-paying domestic industries, such as wait staff in restaurants and bars and retail workers. This means that more than a third of the new jobs created are temporary jobs or in low-paying domestic industries. In June, the strongest job growth came in professional and business services, which are typically not high-paying jobs. [Democratic Leadership Staff Analysis of BLS Data, 7/2005; Atlanta Journal-Constitution, 7/9/05; Center for Economic and Policy Research]
HEALTH COSTS ARE ON THE RISE
Total Family Premium Increased by $3,512 Under Bush to $9,950. Under the most recent data, from 2000 to 2004, total family premiums have increased by 55 percent from $6,438 to $9,950, an increase of $3,512. [Kaiser Family Foundation, Employer Health Benefits 2004 Annual Survey]
Workers' Out-Of-Pocket Costs Are the Fastest Growing Area of Medical Costs. According to a January 2005 federal study, consumers' medical bills grew 7.6 percent in 2003, the fastest growing area of health care spending. Today, nearly 25 percent of personal health expenses are from prescription drug fees. [Pharma Marketletter, 1/12/05]
Number of Uninsured Americans Continues to Rise
One in Seven Americans - 45 Million - Has No Health Insurance, an Increase of 5.2 Million Under Bush. Due in large part to the decimation of manufacturing jobs, the number of uninsured has swelled under Bush by 5.2 million to a total of 45.0 million, 15.6 percent of the total population. Since 2000, the percentage of Americans with health coverage through their job has dropped 3.2 percent to just 60.4 percent. [Census Bureau, Current Population Reports]
PERSONAL BANKRUPTCIES ARE ON THE RISE
Personal Bankruptcies at All-Time High.
In 2004, a record 1.6 million families filed for bankruptcy. [St. Petersburg Times, 4/15/05; Consumers Union, 2/25/04]
Nearly Half of Personal Bankruptcies Are Due to Rising Health Care Costs. Out of the 1.5 million personal bankruptcies in the United States in 2001, 46 percent were due to illness or medical bills. Nearly half of bankruptcies are due to health care costs, even though 75 percent of those who filed a medical-related bankruptcy were insured when their troubles began. [St. Petersburg Times, 4/15/05; Philadelphia Inquirer, 2/2/05; Consumers Union, 2/25/04; Employee Benefit News, 7/1/05; Health Affairs, 2/2/05]
posted by T. Scott Brineman at 7:59 AM
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