The Shift In The Economy

Many of the jobs in President Bush’s “recovery” are low-wage,
low-benefit service and retail jobs The overall growth in jobs
masks a harsher reality for families trying to maintain or build
a middle class standard of living
Key among them: debt coupled with paycheck paralysis
Most people coming out of college with or without a degree are
starting life off with about $20,000 in debt trying to get a
degree
Then they try to support themselves on low wages after getting
out of school
A generation ago finishing high school was what was needed to
get a job and to have a reasonable amount of security
Now what is needed is a university degree and not just any
degree, look at all people working in low class jobs with an
arts degree
In the last 30 years compensation for somebody with a university
degree has actually decreased when adjusted for inflation
Personal bankruptcy filings nationwide last year exceeded 2
million, the highest annual level on record
There were significant increases in consumer bankruptcy filings
in every region The total of 2,043,535 was up 32 percent over
the 1,552,967 filed in 2004 That translates to one in every 53
households filing bankruptcy petitions
So are these 2 million people Scofflaws?
Credit counselors say the debtors coming to their offices can’t
afford to pay basic living expenses or make even minimal
payments toward their debts
Corporate profits have reached record highs
People are working longer for the same or a lesser amount of
money
During the period from November 2003 to March 2004 – when job
growth was increasing – average hourly real wages actually fell
by 1 percent
Companies are reducing health care benefits and are declaring
bankruptcy to get rid of pension liabilities to their employees
Yes, but there are Tax Cuts
Tax Cuts have to be paid for by somebody at some point in time
If the tax cuts were financed largely or entirely through
spending cuts or: if the tax cuts were financed through a
combination of spending cuts and progressive tax increases this
is what is projected by experts:
The net result seems to be net tax cuts for about 20-25 percent
of households, financed by net tax increases or benefit
reductions for the remaining 75-80 percent of the population
So 75% to 80 % of Taxpayers are going to be worse off with tax
cuts
The “losers” are going to be low- and middle-income wage
earners
The trade deficit for last year is estimated to have swollen to
another record high, above $700 billion, increasing America’s
indebtedness to foreigners
At some point in time these foreigners are going to want their
money back
Then what?

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