Kicking Ass: The Democratic Party's Blog

For 1% of Americans the Economy Rocks!

Posted by on July 14, 2006 at 02:59 PM

Paul Krugman in today's New York Times:

I’d like to say that there’s a real dialogue taking place about the state of the U.S. economy, but the discussion leaves a lot to be desired. In general, the conversation sounds like this:

Bush supporter: “Why doesn’t President Bush get credit for a great economy? I blame liberal media bias.”

Informed economist: “But it’s not a great economy for most Americans. Many families are actually losing ground, and only a very few affluent people are doing really well.”

Bush supporter: “Why doesn’t President Bush get credit for a great economy? I blame liberal media bias.”

To a large extent, this dialogue of the deaf reflects Upton Sinclair’s principle: it’s difficult to get a man to understand something when his salary depends on his not understanding it. But there’s also an element of genuine incredulity. Many observers, even if they acknowledge the growing concentration of income in the hands of the few, find it hard to believe that this concentration could be proceeding so rapidly as to deny most Americans any gains from economic growth.

Yet newly available data show that that’s exactly what happened in 2004.

(snip)

...the real income of the richest 1 percent of Americans surged by almost 12.5 percent. Meanwhile, the average real income of the bottom 99 percent of the population rose only 1.5 percent. In other words, a relative handful of people received most of the benefits of growth.

(snip)

In short, it’s a great economy if you’re a high-level corporate executive or someone who owns a lot of stock. For most other Americans, economic growth is a spectator sport.

Can anything be done to spread the benefits of a growing economy more widely? Of course. A good start would be to increase the minimum wage, which in real terms is at its lowest level in half a century.

But don’t expect this administration or this Congress to do anything to limit the growing concentration of income. Sometimes I even feel sorry for these people and their apologists, who are prevented from acknowledging that inequality is a problem by both their political philosophy and their dependence on financial support from the wealthy. That leaves them no choice but to keep insisting that ordinary Americans — who have, in fact, been bypassed by economic growth — just don’t understand how well they’re doing.

So basically, the 99% of us who are out of luck will have to:

A.) wait until this Congress gets serious about helping working Americans and stops blocking the Democrats who are fighting tooth-and-nail to raise the minimum wage...

B.) wait until The Bush Adminstration decides to impliment policies that benefit all Americans....

C.) take back Congress in November...

D.) take back the White House in 2008...

E.) C & D

Comments (22) «

With foreclosures up I wonder why those people don’t see this great economy.

With the good-paying jobs of middle-class working Americans going to China and India I wonder why middle-class workers don’t see this great economy.

With healthcare costs becoming unaffordable I wonder why the uninsured don’t see this great economy.

With local taxes, fuels costs, utilities, and insurance soaring off the scale I wonder why all working American don’t see this great economy.

Perhaps it’s because Bush his and band of thieves lie, cheat, and steal our future and we just don’t raise enough hell. They have come to believe they can say or do anything and we will believe them or do nothing.

Enough is enough! C & D are the only solutions.

1
Bruno- on July 14, 2006 at 05:34 PM

It's really not rocket science. Only the rich and those who's grandparents left them a lot of dividend- producing stock are doing well.

Everyone else is paying for their good fortune.

2
SandyH on July 14, 2006 at 05:38 PM

And it isn't even strange that E = C & D !!!!

3
momoaizo on July 14, 2006 at 06:32 PM

WE WANT OUR WAGES BACK!

4
pee-wee on July 14, 2006 at 06:54 PM

the economy is rocking right down to the bottom,

look for gas to be $5.00 per gallon and rationed if the mess in Israel and Lebannon does not stop soon, but then again its a good way for the Bush oceans 6 band of theives to keep the POWER (Bush, Cheney, Rice, Rumsfeld, Gonzales, Frist,)

5
dk2 on July 14, 2006 at 07:53 PM

Can anything be done to spread the benefits of a growing economy more widely?

For the last 75 years we've taxed labor, capital and business in relatively equal measure and built the largest middle class in the world, the largest economy and the largest job creation engine in the world.

A good start would be to restore the taxes on capital instead of giving wealth a free ride.

Another good start would be send Robert Mundell, Jude Wanniski, and Arthur Laffer to China (for life) along with some people from the University of Chicago so that they can all teach the Chinese about republican capitalism.

6
dorsano on July 14, 2006 at 08:54 PM

Until Reagan came along and brainwashed everyone (except me and a few other people), Democrats from FDR on believed in a social democracy and saw nothing contradictory about keeping totalitarian Soviet "socialism" at bay at the same time (sometimes going to extremes like Korea and Vietnam, as if these had any ties to Russia).

Joe Lieberman and Zell Miller are only extreme examples of how far to the right Democrats have drifted since Reagan. Is it any wonder they hate the "liberal" label almost as much as Fox and Limbaugh do? There is nothing classically liberal about NAFTA, GATT, the WTO, or any other global capitalism scam—the word The Nation uses is "neo-liberal," and it's no more desirable than neo- (or any other) -conservatism. The only thing "liberal" about it is the freedom of corporations from any ethical constraints.

7
60srad on July 14, 2006 at 10:20 PM

Posted by dorsano on July 14, 2006 at 08:54 PM

Thanks for the terrific link "republican capitalism". Its amazing how hard it is lay to rest some really bad ideas. The throughly discredited *supply side economics* has been resuscitated by the Bush Administration with an infusion of a few trillion dollars of national debt. The result is the great Bush economy, a feast for some of the richest Americans, a few crumbs for the rest of us with the tab handed to the next generations of taxpayers. The Bush supporters can't understand why the President doesn't get credit for such a economic masterpiece and I don't have the energy to explain it to them.

8
royaldan on July 14, 2006 at 10:52 PM

What about answer F? Take over Congress in Novemvber 2006. Then take over the Senate and the White House in November 2008. I'm sure a President John Kerry would love that. So would Vice-President Russ Feingold.

9
Robert on July 15, 2006 at 03:29 AM

What about answer F? Take over Congress in Novemvber 2006. Then take over the Senate and the White House in November 2008. I'm sure a President John Kerry would love that. So would Vice-President Russ Feingold.

10
Robert on July 15, 2006 at 03:30 AM

I like vote for E. What concerns me the most is that the Senate showed they were completely out of touch with the country on illegal immigration. I just hope there is new blood running in the primaries across the country. Harold Ford is running here and he looks great!
http://www.haroldfordjr.com/index.php
The problem is that the Repubs have 3 candidates running ads constantly and talking about illegal immigration. The Repubs find one hot button and drive it in the ground to get elected. What the Dems need to do is tell the open borders paid advocates to speak for themselves but do not speak for the Democratic party. What the Dems need to do is show just how the Republicans have let our country be infiltrated with these illegal immigrants and how our crime rates have soared all over the country. You fight fire with fire. (Just watch the real fire fighters on tv.) These crimes are hurting our legal Hispanics who work hard to do their jobs, many of them at low wages, and now their jobs are being jeopardized by illegal workers and by distrust from Americans who can't tell the difference from a legal or illegal worker. (Why do we not have a national id?) Also, the victims of this crime are often legal citizens who are descendants of Hispanics. Hispanic citizens do not want criminal gangs preying on their kids or raping their women. They came to America for a better life, not a worse one.

11
MominTN on July 15, 2006 at 09:45 AM

I'm not an economist, but it seems to me that if the middle class is in a vice grip monetarily then who will be left to buy the "stuff" that keeps the factories, stores, stocks and bonds afloat? Our economy is based on people buying things. In fact, two-thirds of our economy is propped up by us buying things. (That figure may have been replaced now by military buying.) So, if money is tight in the formerly lucrative middle class, we will not be buying "stuff". Then, the top richest people/companies can buy "stuff" from each other!

It has been the great middle class that has made our economic status what it is. Now the Republicans are trying to eliminate the middle class. So...what will they do then? Buy from each other apparently.

Republicans should go back to school and learn about "supply side economics". It does not mean that if you supply it, people will buy it. One point Republicans seem to not understand is that the person buying the "thing" has to have the money to do so. And what does all this boil down to economically? The Republicans are screwing themselves. It is the biggest show of mass extinction that we will ever see in our lifetimes. The Republicans are squeezing every last penny from the middle class to funnel it into the pockets of their wealthy friends when it is obvious (to most intelligent people, that is) that once the last penny is gone, then there is no one left to buy anything.

Of course there is the argument that this administration has put more money in the hands of people with tax cuts, but it is basically putting money in the pockets of the rich, since the more money that is put in the hands of the middle class to buy "things" from the rich is just another way of funneling money to the top. They are giving us money so that we can buy "things". Bush even brags about it. He told us after 9/11 to go out and buy "things". And since we don't save our money, we are just a conduit for propping up the rich.

All of this makes one wonder why the Republicans --- especially Bush --- whine all the time. If anyone has a right to whine, it is the middle class. In fact, you can tell immediately that a person is a Republican by his or her ability to whine. Each and every one of them whine. It's not only grating, but shocking.

12
Rally on July 15, 2006 at 11:08 AM

We have a great economy!

I am in silicon valley and most of the buildings have For Lease signs on them, thats good right ?

I seem to be making about as much under Bush as I used to PAY IN TAXES!

I am sure no one misses all that tax revenue...

Of course as a yellow dog Democrat I do have a real level of fear that the my party has sold out and become hopelessly triangulated.

Any level of transgression seems to be ok when you are perpetually on the defensive, vote fraud, theft, bribery, suspension of due process, warrantless wiretapping, torture, total lawlessness. You name it and the R's have done it yet the business of government goes on and the babies keep getting killed.

Pull out when ? How about NOW! Send in a UN peace keeping force if the peace needs to be kept. We are the criminals and the crime needs to be stopped.

Of course from the looks of it all Bush and the IAF might provoke a reaction out of Iran and then he will have "cause" to further his war for middle eastern domination.

Good economy if you own stock in a bomb factory, I don't and won't.

Everything is wonderful and our madman George and his facist friends are busy crashing our economy and killing innocent folks while the Democrats fail consistantly to stand up and say NO MORE!!!

I guess that at the end of the day dry powder is what it is all about.

Lucky we have flame retardant flags...

I am not bitter and I have no attitude about anything :)

13
cookseytalbott on July 15, 2006 at 02:48 PM

E

14
FreedomOfSpeechForProgressiveMajority on July 16, 2006 at 08:53 AM

Who is buying stuff? We are. When your kids need clothes, or your car needs tires, or your washing machine wears out, you buy things on credit.
Credit card debt is increasing drastically. Personal bankruptcy is going up, in spite of the harsher laws that Congress passed.
People with decent jobs keep thinking "It can't happen to me", and then they get the pink slip, or have their medical benefits cut.
Stores keep pushing "easy credit" "No interest for X amount of time". People think "I can handle that."
People keep feeling if they don't get it now, prices will go up and they can't afford it.
We are living in a throw away economy, so we keep buying and tossing.
In the Depression of the 1930's people learned to "fit it, use it up, wear it out." A lot of people I know are starting to do it again. Instead of retail boutiques, we are getting more consignment shops and second-hand stores uptown.
But a lot of people haven't woke up yet, they keep figuring on a better job being just around the corner.
That and the freaking rich are spending like crazy. Why not, it's the corporate executives who have all the money that should have gone into payraises, it's their pension plans and perquisites that have put a strain on the company so that they are cutting employee benefits to pay for them.
This economy is in bad shape, but the government and the media are using "indicators" designed to hide that fact.
Where are we going? Why are we in this handbasket???

15
Butte on July 16, 2006 at 10:19 AM

My Email to Senator Bayh on Appealing to the Middle Class

Article:
"Bayh calls for renewed focus on middle class"

WASHINGTON (Reuters) - Democratic Sen. Evan Bayh of Indiana, a potential presidential contender in 2008, said on Monday the party needs to strengthen its appeal to middle-class Americans or risk defeat in the next two elections.

Senator;
Regarding the previous article:

If you want to appeal to the "middle class' in this country then stop supporting the DLC, Republican clone, corporatist written, Free (Unfair) Trade platform that is a direct attack on the American Middle Class. Stop the support of corporate America for outsourcing both American jobs and core American industries to "cheap" foreign labor. Stop the importation of "cheap" foreign labor using H1B Visas to take good paying American middle class jobs. And stop supporting corporate centric legislation like the new Bankruptcy Bill that takes direct aim at American middle class families that , through no fault of their own, find themselves in serious financial difficulties while allow the very rich to use this bankruptcy law to protect their multi-million dollar mansions.

So Senator, let's start by:

1) Rescinding the fast-track provision that enables the Administration to establish trade agreements.

2) Withdrawing the USA from the WTO.

3) Renegotiating all our supposed "Free" Trade Agreements like NAFTA, CAFTA, The Chinese Trade Agreement, Jordanian Trade Agreement to include protection of American sovereignty, fair labor standards, safety, workplace and environmental standards for the foreign workers.

4) Starting the enforcement of the anti-dumping rules that are already in these trade agreements.

5) Stopping the outsourcing of government jobs and contracts to foreign companies.

6) Ensuring that all Defense and Homeland Security Contracts go to American companies that use a 100% American workforce.

7) Passing a universal healthcare bill to help American middle class workers be competitive with the foreign competition.

8) Revisiting the bankruptcy bill and make it fair for the American poor and middle classes and not a give-away to the credit card industry and the rich.

9) Rescinding the Bush tax cuts that favor the rich and implement a "fair" corporate and individual income tax code so that everybody is taxed by considering their "ability to pay".

10) Passing a "Clean Money Campaign Bill" to eliminate the corporate lobby control of the political process.

11) Supporting our troops, that are sons and daughters of middle class parents, by getting them out of Bush's war in Iraq!

And Senator this would be just a "start" on the road to stop this corporatist attack on the American middle class. And I hope that you take notice that this did not include wedge issues like flag burning, gay marriage, prayer in school, reproduction issues, separation of church and state, etc. The middle class is worried about their economic future and the lives of their sons and daughters being chewed up as cannon fodder in the neo-con, imperialistic induced conflicts in the Middle East.

Shayne Munger
Riverside, CA

16
TheExaltedOne on July 18, 2006 at 01:45 AM

TAX THE RICH!!!!
I'm tapped out.
As far as I'm concerned eating and paying the heat bill this winter should not by sabotaged by my tax bills.

17
Butte on July 19, 2006 at 10:05 AM

Yo, Listen up:

My daughter hauls fuel out of Tulsa, Oklahoma. There was about 8 Moslem men dressed in full head gear tried to hijack her truckload of fuel this night, July 21, 2006. She said two of them got in front of her truck at 17th Street in Tulsa after she crossed the railroad tracks and two of them jumped on the sides of her truck, but she gunned the truck and made them scatter or get run over. When she gunned the truck the two on the side fell off and she went on her way safely. She said they had satchels and she thought they were going to shoot her. Anyway she got a first hand taste of Moslems trying to hijack her loaded truck of fuel tonight.

18
_MarthaA on July 22, 2006 at 03:10 AM

Is this selected REPUBLICAN EXTREME REGIME getting lost in their own propaganda? This is the question.

19
_MarthaA on July 22, 2006 at 11:13 AM

C & F for me. Take back Congress and the White House, pull out of Iraq and quit killing Iraqis who the Bush Administration is making our enemy. Put Al Gore or John Kerry in as President with Russ Feingold as Vice President.

If unable to completely accomplish getting the EXTREME REGIME out in 2006, then in 2008 we must elect Russ Feingold as our new President. We need a president that is not feeding the Military Industrial Complex and making the wealthy elite capitalists wealthier at the expense of everybody else. I believe Senator Russ Feingold fits that picture better than anyone I've heard so far. Therefore, Al Gore/Feingold for 2006 and Russ Feingold/John Edwards for 2008.

20
_MarthaA on July 22, 2006 at 11:57 AM

How do people who only make $8.00 an hr,call themselves Republicans?How can the American people have 8 years of solid growth and prospierity,and then have 6 years of the exact opposite,and not one single mainstream media outlet pick up on it?How can terrorists hijack planes and run them into not one but both towers and not one plane or helicopter is scrambled to intercept,and no one is fired or even repromanded in the smallest degree?How do towers fall straight down after been hit above the 50th floor?How does the commander in chief sit in a elementary school house knowing good and well that America is under attack,and just sit there endangering the childrens lives and not one single major mainstream media outlet pick up on it?How does our"president",even think, for a new york second,that the American people will believe every lie that he utters?DOES HE THINK WE ARE ALL SHEEP????There was a coup in 2000 and EVERYBODY knew it,because there was a record turn out to vote the monster out in 2004,but the mainstream media missed out on that too!Do you catch my drift?Can you see the Problem here?Our media is owned lock stock and barrel by the Republican party,only the Republican party has been morphed into something between Hitler's Facist Party and abunch'a rich souless assholes without a conscience(modeled after Dick Chaney no doubt) who are working overtime to kill America and all it stands for!Who would have ever thought,that our allies would be repulsed by our actions in IRAC?Who would have ever thought we would attack a country that did not and would not ever even think of attacking us!The "president" actually thinks that everybody believes his lying ass when he says "we did'nt go in there to take their OIL,we went in there to give them FREEDON and DEMOCRACY! He must have gave them OUR freedom and democracy,because the PATRIOT ACT took our freedom and democracy away!!The sheep will say that I am a aluminum foil hat wearing nut just because I speak out on things,that do not look right,but,thats because the sheep don't want to think about all this stuff,because then they might have to do something and being willfully conditioned to "just say no" &" zero tolerance"they don't want to have to grow some balls and do something,besides they want to be on the side tahts winning.What they don't understand is WE ALL LOSE,WHEN WE LET THEM DIVIDE US UP INTO RED AND BLUE COLORS,We are Americans, we should be united,but,the "president" wants us divided!The time is at hand when the RAMS will have to stand!Are you a sheep or a RAM!

21
Tom-Dooley on July 23, 2006 at 05:24 AM

The problem is, who is going to stand up for us? It's sure not the Republi-lite sell-outs.
Unless the Democrat party wakes up and smells the coffee, they are going down the tubes.
Republi-lites aren't part of the Democrat party, they are a divisive factor that has drawn much of the party away from its base with the phony "centrism" issue.
Why on God's green earth would people who are fed up with the Republican mistreatment of the common people want to vote for a Republi-lite?
They don't. They don't feel they have much choice. A lot of people around here are talking third party, or not voting at all because they don't see any difference between Republicans and Democrats.
This is what the Republi-lites have done to the Democrat party.

22
Butte on July 23, 2006 at 10:31 AM


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