Bush's Record for the Middle Class

The Bush Record: The Middle Class Squeeze

Despite gains in the economy, wages have fallen and the Bush Administration has decided to change the rules, denying overtime to 8 million Americans. And, most new jobs created in the coming years will both pay less and require less education. Poverty continues to increase and bankruptcies have followed.

"Today the American economy is strong, and it is getting stronger." President Bush, 1/8/04

American workers have not benefited from GDP growth. "Since the last quarter of 2001, real G.D.P. [Gross Domestic Product] has risen 7.2 percent. But wage and salary income, after adjusting for inflation, is up only 0.6 percent."1

GOP Congress approved new overtime rules that would exclude 8 million workers, including veterans. The Republican Congress recently voted to deny overtime to more than 8 million Americans. Under the rule change, those making between $22,100 and $65,000 would also be excluded if they were deemed an executive, administrator or professional. The definition of these titles will be expanded to include those who have gained on-the-job training or served in the military.2

New jobs created will pay, on average, $8,000 less than old jobs and require less education. According to the US Conference of Mayors, the average wage for new jobs created during 2004-2005 is forecast to be significantly lower than those jobs lost between 2001-2003. A new study also showed that the bulk of the new jobs created between now and 2012 will not require as much education as previous jobs.3

A record 1.6 million families will declare bankruptcy in 2004. Household bankruptcies set a record in 2003 at 1.6 million and experts believe the number will be even higher in 2004. In addition, an estimated 11 million families are carrying enough debt that they are at high risk of bankruptcy. Ninety percent of these families are in the middle class.4

Consumer debt at all-time high. According to the Federal Reserve, in 2003 U.S. consumer debt topped $2 trillion for the first time. At the same time, personal savings has dropped 40 percent over the last decade.5

Out-of-pocket health care costs for workers have risen 50 percent under Bush. Annual out-of-pocket expenses for workers are up $174 (52 percent) for individuals and $793 (49 percent) for families.6

Tuition and fees increased in 49 of 50 states in 2003. State budget cuts fueled by the Bush recession have forced colleges to hike tuitions and fees-threatening access to higher education for low-income students. In 2003, public universities and colleges in 49 states increased their tuition.7

Sources: 1New York Times, 2/10/04; 2Gannett News Service, 1/23/04; 3US Conference on Mayors, November 2003; St. Petersburg Times, 2/16/04; 4NOW With Bill Moyers, 2/6/04; Washington Post, 2/1/04; Orlando Sentinel Tribune, 2/15/04; NBC Nightly News, 2/23/04; 5Washington Post, 3/4/04; www.bea.gov; 6Kaiser Family Foundation, Employer Health Benefits Survey 2000 and 2003; 7Associated Press, 8/25/03; College Board, College Costs 2003