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The Bush Economy: Declining Income and More Uninsured Americans

August 31, 2005

Washington, DC - Today, the Census Bureau issued its latest national report on income, poverty and health insurance. The figures are troubling. Under President Bush's failed leadership, wages have actually declined by nearly $1,700 and more than a million middle class Americans fell into poverty. The number of Americans without health insurance has also increased by 6 million since Bush took office in 2001. African Americans and Latinos have been hit especially hard, with more sinking into poverty and being forced onto the rolls of the uninsured.

"The Bush economy is not working for the American people. Americans are struggling under the weight of President Bush's failed leadership: they are earning less while everyday expenses, including gas, are going up," said Democratic National Committee Chairman Howard Dean. "Instead of finding solutions to the problems facing American families, President Bush has decided to line the pockets of his corporate backers. His policies have exploded the federal deficit without helping to create good-paying jobs here in America. Democrats believe we can do better by balancing the budget and getting the economy working for everyone so that American families don't have to choose between a bag of groceries and a gallon of gas."

See below for two new research documents from DNC Research:

Before President Bush took office, under Democratic leadership, income was on the rise, jobs were expanding, and the economy was booming. Today, the Census Bureau announced that real household income has decreased in 2004, falling for the fourth consecutive year. Since the beginning of the Bush Administration, household income has declined nearly $1,700. Over 1.1 million people fell out of the middle class into poverty in 2004, an increase of 5.4 million people living in poverty since Bush took office. Despite this, Republicans still have no plan to help struggling middle class families. Democrats are fighting to create jobs and keep good paying jobs here at home.

Household Income Declined by Nearly $1,700 Under Bush. For the second consecutive year, median household income declined: income dropped last year by $93 -- down to $44,389. In real terms, median household income has declined by $1,669 since 2000. [U.S. Census Bureau, 8/30/05; Table A-1]

African Americans And Latino Household Incomes Have Declined by More Than $2,000 Under Bush. Real median household income did not increase between 2003 and 2004 for African Americans and Latinos. African American households had the lowest median income, at $30,134--down by $2,273 since Bush took office. Median income for Hispanic households was $34,241 in 2004--down by $2,141 since Bush took office. [U.S. Census Bureau, 8/30/05; Table A-1]

Average Earnings by Women Declined by About $330 in Real Dollars During the Past Year. The median earnings of women declined over the past year, from $31,550 to $31,223. [U.S. Census Bureau, 8/30/05; Table A-2]

Number of People Living in Poverty Increased by 1.1 Million in 2004. Approximately 1.1 million people fell out of the middle class into poverty in 2004, an increase of 5.4 million people living in poverty since Bush took office in 2001. The poverty rate has increased from 12.5 to 12.7 percent over the past year, increasing for the fourth consecutive year. [U.S. Census Bureau, 8/30/05; Table B-1]

Nearly 1 in 5 American Children Lived in Poverty During 2004. 13 million children lived in poverty in 2004, an increase of about 1.4 million since the beginning of the Bush Administration. This comes on the heels of a 730,000 increase in the number of children living in poverty in 2003. [U.S. Census Bureau, 8/30/05; Table B-2 ]

Disproportionately High Number of African Americans and Latinos Live in Poverty. Nearly 25 percent of all African Americans (9 million) lived in poverty in 2004, an increase of over 250,000 over the past two years. Nearly 22 percent (9.1 million) of Latinos lived in poverty, an increase of almost 500,000 over the past two years. [U.S. Census Bureau, 8/30/05; Table 3]

1.9 Million More Americans Enrolled in Medicaid in 2004. As 1.1 million Americans dropped out of the middle class and into poverty in 2004, the enrollment rate in Medicaid increased from 12.4 percent of the population in 2003 to 12.9 percent in 2004. Without the safety net of Medicaid and SCHIP for people who dropped into poverty, the health insurance numbers would be even worse. [U.S. Census Bureau, 8/30/05, page 16 ]

Today, the Census Bureau announced that the number of people without health insurance nationwide increased to 45.8 million, the fourth consecutive annual increase. A total of 800,000 Americans became uninsured last year - many because fewer employers offer health insurance to their workers. As a consequence, American families are paying higher and higher health insurance premium - which are expected to double under Bush's tenure by 2006. Yet, Bush and Congressional Republicans lack a real plan to address the problem.

Nearly 46 Million Americans Are Uninsured--Increasing for the Fourth Year in a Row. The number of Americans lacking health insurance increased by 800,000 last year--and by 6 million since Bush took office in 2001. Today, a total of 45.8 million people are uninsured--roughly one in seven Americans. [U.S. Census Bureau, 8/30/05; Table HI-4]

• The Number of Uninsured Is Equal to the Combined Populations of 24 States. In order to provide some perspective on the sheer magnitude of the problem of the uninsured, the number of Americans who are denied health insurance is equal to the combined populations of 24 states: Oklahoma, Connecticut, Iowa, Mississippi, Kansas, Arkansas, Utah, Nevada, New Mexico, Oregon, West Virginia, Nebraska, Idaho, Maine, New Hampshire, Hawaii, Rhode Island, Montana, Delaware, North Dakota, South Dakota, Alaska, Vermont, and Wyoming. [Matt Miller, The Two Percent Solution, 2003]

Fewer Than 60 Percent of Employers Offer Health Insurance. Employer-based health insurance, which covers the majority of Americans, has eroded under the Bush Administration. The percentage of Americans covered by employer-based insurance decreased to 59.8 percent in 2004, down from 60.4 percent the previous year. The total number of Americans with employer-sponsored coverage has fallen by more than 3.6 million since 2000. [U.S. Census Bureau, 8/30/05; Table HI-4]

The Number of Uninsured Children Has Not Declined Over the Past Year. Despite an enrollment increase of 600,000 in the State Children's Health Insurance Program (SCHIP) signed into law by President Clinton, the number of children without health insurance remained essentially the same over the past year 8.3 million--one in nine children. Over 21 percent of Hispanic children and 13 percent of African American children lack health insurance. [U.S. Census Bureau, 8/30/05; Page 16]

African Americans And Latinos Suffered a Greater Increase in the Ranks of the Uninsured than the Rest of the Nation. African Americans and Hispanics have a significantly higher rate of uninsurance than the rest of the population. [U.S. Census Bureau, 8/30/05; page 17]

• Latinos: In 2004, 13.7 million Latinos were without health insurance, an increase of 1.8 million since 2000. [U.S. Census Bureau, 8/30/05; Table C-1]
• African Americans: In 2004, the number of African Americans without health insurance remained at about 7.4 million. This is an increase of almost 770,000 people since 2000. [U.S. Census Bureau, 8/30/05; Table C-1 ]

27 States Experienced an Increase in the Number of Uninsured. During 2004, the number of uninsured Americans increased in 27 states - including Texas, California, New Jersey, Florida, Tennessee, and South Carolina. [U.S. Census Bureau, 8/30/05; Table H1-4]

1.9 Million More Americans Enrolled in Medicaid in 2004. As 1.1 million Americans dropped into poverty in 2004, the enrollment rate in Medicaid increased from 12.4 percent of the population in 2003 to 12.9 percent in 2004. Without the safety net of Medicaid and SCHIP for people who dropped into poverty, the health insurance numbers would be even worse. But Republicans have proposed a $10 billion cut in Medicaid this fall. [U.S. Census Bureau, 8/30/05, page 16]