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Conservatives don’t want to admit that our economy is in miserable shape. Less than two weeks ago, John McCain said, “I still believe the fundamentals of our economy are strong.” But Americans simply don’t believe it—they think we’re in a recession. And whether or not the economy is technically in a recession, we can point to a different economic indicator of conservative failure: the misery index.
Conservatives don’t want to admit that our economy is in miserable shape. Less than two weeks ago, John McCain said, “I still believe the fundamentals of our economy are strong.” But Americans simply don’t believe it—they think we’re in a recession. And whether or not the economy is technically in a recession, we can point to a different economic indicator of conservative failure: the misery index.
The misery index is worse than it’s been in 17 years. The misery index is an economic indicator that combines inflation and unemployment rates. In June 2008 the misery index hit double digits for the first time since 1993. In July 2008 the misery index climbed to 11.3 which is higher than any month since June 1991—more than 17 years. Unemployment was 5.7 percent [1] and inflation was 5.6 percent in July [2], and both are likely to increase. For a history of the misery index, click here [3].
Republicans have a miserable economic record. Over the last 46 years, income growth has been three times as strong under Democratic presidents as it was under Republican presidents. Job growth was nearly four times higher under Democrats. Since 1961, the federal budget has been balanced five times—and every time it a Democrat was president. [Center for American Progress Action Fund [4], New York Times [5]] Republican presidents do score higher on one economic indicator: inflation. [Washington Post [6]]
President Bush’s economic mismanagement has hurt American families. When Bush took office, inflation-adjusted income was at an historic high. After eight years of tax cuts for the rich and laissez-faire corporate regulation, Americans have seen their incomes fall. [U.S. Census [7]] The seasonally-adjusted unemployment rate has also worsened under Bush, and over 3.5 million families have fallen into poverty during his time in office. [Bureau of Labor Statistics [8], U.S. Census [9]] This year alone, more than 340,000 workers have had to take a second job to make ends meet. [Bureau of Labor Statistics [10]]
Americans demand economic leadership. Our economy’s broken, we’re in a recession, and the conservatives in Washington don’t get it. The misery index is at its worst level in 17 years—because we’ve had miserable economic leadership. It’s time for a change.
Americans can’t afford to continue Bush’s economic policies. The American economy has been ravaged by the “Bushonomics” that McCain wants to continue. The Bush Administration’s lax enforcement of labor and wage laws, and its efforts to weaken unions have slowed income growth. [Center for American Progress [11]] Economists agree that the current increase in inflation is being driven by the high cost of oil, which could have been avoided if Bush had not let speculators run amok and had worked to make America energy independent.
Conservative economic policies don’t work for American workers. History shows that progressive policies designed to foster shared economic prosperity generate economy-wide growth and gains for working Americans. Conservative polices designed to help the rich, on the other hand, have helped only the rich.
We need to build an economy that works for working Americans. We need a long-term economic growth program that puts Americans to work, and a short-term stimulus to help families cope with the current economic downturn.
Long-term investment. To restore America’s economy, we need to invest in ourselves. That means fixing our nation’s bridges and roads, expanding mass transit and broadband access, becoming energy independent, and developing new “green” technologies. It means major efforts to provide every child with a high-quality education, and every worker with the opportunity for advanced training.
Short-term stimulus. First, we must stop squandering $340 million dollars per day on the war in Iraq. Let’s put that money to work here in the U.S. instead. For example, to soften the blow of the current recession, state and local governments need federal aid so they can continue providing critical community services.
1825 K Street, NW, Suite 400, Washington, DC 20006
202-955-5665 (tel) | 202-955-5606 (fax) | www.ourfuture.org
Links:
[1] http://www.bls.gov/news.release/empsit.nr0.htm
[2] http://www.bls.gov/news.release/cpi.nr0.htm
[3] http://www.miseryindex.us/
[4] http://www.americanprogressaction.org/issues/2004/manage_economy.html
[5] http://www.nytimes.com/2008/08/31/business/31view.html?_r=1&em=&adxnnl=1&adxnnlx=1220281833-iqWn/fY2gf1AniVpdDXxGw&oref=slogin
[6] http://www.washingtonpost.com/wp-dyn/articles/A20059-2005Apr1.html
[7] http://www.census.gov/hhes/www/income/histinc/h15.html
[8] http://www.bls.gov/webapps/legacy/cpsatab1.htm
[9] http://www.census.gov/hhes/www/poverty/histpov/hstpov4.xls
[10] http://www.bls.gov/webapps/legacy/cpsatab6.htm
[11] http://www.americanprogress.org/issues/2008/08/pdf/bushonomics.pdf