Economic Talking Points for Dem Leaders, pt. 2

To: Dem Leadership

From: Bonddad

Re: Economic Talking Points

Dear Dem "Leaders" (and I use that term very liberally)

According to a recent NPR poll,the economy is the second most important issue in competitive districts. Only that little thing in Iraq is more important.  So - maybe you should start talking about the incredibly poor performance of Bush's economic policies for everybody except the top 10% of income earners in the country? Last week, I gave you three points to make over and over and over and over and over and over and over and over again.  I even backed up all of my assertions with those silly things called facts - which are optional in Republican economic discourse.  In case you forget them, here they are:

WORST RATE OF JOB CREATION IN 40 YEARS

BUSH'S JOBS PAY $9000 LESS PER YEAR

WORKING PEOPLE HAVEN'T HAD A PAY RAISE IN 5 YEARS


Aren't those nice little sound bites?  Imagine if a few Democrats started to say the same thing over and over and over and over and over and over and over and over and over and over again.  Imagine if Hannity or Rush had to respond - they would be in deep shit.   Rush would be reaching for his Viagra er oxycontin er, glass of water so fast it would make your head swim.

Today I will add a few more lines to your vocabulary that you can say over and over and over and over and over and over and over and again.

Republican's fiscal mismanagement or CREDIT CARD REPUBLICANS

Reagan

The beginning of the 1980s marked the Republican's return to power, as Regan took control of the presidency and the Republicans gained control of the Senate.

Reagan used the Laffer curve to justify cuts in marginal tax rates. As a result, tax receipts barely increased from 1981-1984, when receipts from individual taxpayers were $285 billion, $297 billion, $288 billion and $298 billion respectively. At the same time, outlays increased from $678 billion to $851 billion, respectively.  As a result of the difference between receipts and expenditures, the federal budget deficit increased from 73 to 188 billion from 1981-1984.  This pattern of events established in the early 1980s by the Republicans is clear: cut taxes on the wealthy, increase spending and bounce every federal check you write.

Reagan raised taxes in 1983 as a result of his administrations concern over the growing federal debt load. However, he did not curtail his spending.  Ronald Reagan started his term with total debt outstanding of 930 million and increased total debt outstanding to 2.7 trillion. This is a 13.71% compound annual increase. He never balanced a budget.

Bush 41

The biggest point of Bush's presidency was his breaking the "no new taxes" pledge. However, it is important to note this was the fiscally responsible thing to do. It is also important to note that the increased taxes did not help the budget situation in the slightest. Receipts from individual taxpayers increased from 991 to 1091 billion. At the same time, federal expenditures increased from 1.064 trillion to 1.381 trillion.

Bush I started his term with outstanding debt of 2.7 trillion and increased total debt to 4 trillion. This is a 10.32% compounded annual increase. He never balanced a budget.

Bush II

Bush essentially tried to do the same thing Reagan did - cut taxes and increase spending. He cuts taxes for the wealthy which stagnated tax revenue from individuals from $994 billion in 2001 to $927 billion in 2005.  While tax revenue from individuals should be over the 2001 figure this year, it's taken him 5 years to get there.  At the same time, he increased discretionary spending 48%.

Bush II started with 5.6 total outstanding debt and increased total outstanding debt to 8.4 trillion. This is a 7.6% annual increase. He has never balanced a budget.

IS ANYBODY SEEING A PATTERN While both parties grow the economy at comparable rates, one party does it with a balanced budget and one does it with deficit spending.  While policy do you think is better?

Their record is very clear: THEY'RE THE CREDIT CARD REPUBLCANS

Wages  -- WANT A PAY RAISE? VOTE DEMOCRAT!

One party cares about the middle class.  One doesn't.  Let's see which one it is.

According to the Bureau of Labor Statistics, the hourly pay for non-supervisory workers increased from $10.63 in January of 1993 to $14.26 in December 2000 for an increase of 34.14%. Over the same period, the inflation measure increased from 138.1 to 174 for an increase of 25.99%. Therefore, the inflation adjusted hourly wage increased 8.15%.

Looking deeper in the data provided by the Federal Reserve's Survey of Consumer Finances for 1998, the change is apparent:

In the 1998 survey, inflation-adjusted mean and median family incomes continued the upward trend between the 1992 and 1995 surveys; they also surpassed the levels observed in the 1989 survey toward the end of the previous expansion....

From 1995 to 1998, the proportion of families with incomes of $50,000 or more rose from one-fifth to 33.8%, while the proportion with incomes below $10,000 fell about one-sixth to 12.6%.

And from the 2001 survey:

Between 1998 and 2001, inflation-adjusted family incomes rose notably faster than they did in the 1995-98 period. The median rose 9.6% percent (2.5 percent during the 1995-98 period) and the mean rose 17.4% (12.2 during the 1995-98 period).

Under Clinton, the median family income increased from 27,900 in 1992 to 32.7 thousand in 1995, 33,400 in 1998 and 39,900 in 2001. Over the same period inflation increased 28%, making the total inflation adjusted gain 15%. Average income increased from $44,000 in 1992, to $47,500 in 1995, to $53,100 in 1998 to $68,000 in 2001 for an inflation adjusted increase of 23%.

Now, let's look at that champion of the middle class Bush:

According to the National Bureau of Economic Analysis, this expansion started in November 2001 when according to the Bureau of Labor Statistic the average hourly pay of non-supervisory workers was $14.70. This figure was $16.62 in May of 2006 for an increase of 13.06%. Over the same period, the inflation gage according to the Bureau of Labor Statistics increased from 177.4 to 202.5, or an increase of 14.15%. Therefore, wages for non-supervisory employees have decreased a little over 1% since this expansion began.


However, the unemployment rate dropped below 5% in December 2005, signaling "full employment". Has the decrease in labor supply increased wages? No. In December 2005 the average hourly wage of non-supervisory employees was $16.35. In May that number was $16.62 for an increase of 1.65%. Over the same period, the overall inflation measure increased from 196.8 to 202.5 or an increase of 2.89%. Therefore, since the economy hit "full employment" wages have decreased 1.25%.


From the Fed's 2001-2004 Survey of Consumer Finances


The survey shows that, over the 2001-04 period, the median value of real (inflation-adjusted) family income before taxes continued to trend up, rising 1.6%, whereas the mean value fell 2.3 percent....THESE RESULTS STAND IN CONTRAST TO THE STRONG AND BROAD GAINS SEEN FOR THE PERIOD 1998 AND 2001 SURVEYS AND TO THE SMALLER BUT SIMILARLY BROAD GAINS BETWEEN THE 1995 AND 1998 SURVEYS.

The record is pretty clear: IF YOU WANT A PAY RAISE, VOTE DEMOCRAT

So there you go, Dem leaders (again, using that word really liberally).  Voters are concerned about the economy - probably because CEOs are making a ton of money but employees aren't.  Voters want you to say these things.  So say them, assholes.   Did you forget them already?  Here you go:

CREDIT CARD REPPUBLICANS

WANT A PAY RAISE? VOTE DEMOCRAT!

Now you have to do what the Republicans do - say them over and over and over and over and over and over and over and over and over again.

Tags: Economy (all tags)

Comments

2 Comments

Re: Economic Talking Points for Dem Leaders, pt. 2

Once again Bonddad, you rock. It's time for us to start screaming these economic truths from the rooftops to the american worker. We have been systematically left out of the current 'recovery'. The message is: Do what you did before, you'll get what you got. Vote for republicans again, get lower wages, poorer/more expensive healthcare and an ineffective blowhard limp wristed government.

by TimThe Terrible 2006-07-28 05:08AM | 0 recs
Re: Economic Talking Points for Dem Leaders, pt. 2

Would you do a piece on the Genuine Progress Indicator (GPI)?

by prince myshkin 2006-07-28 06:43AM | 0 recs

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