Janet's Conner

This Blog tell the Truth and will never not tell the Truth. Impeach Bush

Wednesday, August 23, 2006


What's the Real Reason a Bush Official Is Saying the Economy Is Not Hot For Some?

By: Tula Connell
Augst 2006

What's this? A modicum of economic truth from a Bush administration official?

Seems that on August 1, brand-new Treasury Secretary Henry Paulson gave his first public speech since his appointment to the Bush cabinet. Speaking at the Columbian Business School, Paulson admitted many of America's workers aren't benefiting from the economic heyday Bush & Co. keep saying is all around us. Said Paulson:

"Amid this country's strong economic expansion, many Americans simply aren't feeling the benefits. Many aren't seeing significant increases in their take-home pay. Their increases in wages are being eaten up by high energy prices and rising health care costs, among others."

As The Washington Post put it, Paulson's remarks were:

"a somewhat unusual concession from an administration that has spoken only glowingly of recent economic gains and has generally joined with 'Republicans' in Congress dismissing Democratic concerns about growing economic equality in the United States as 'class warfare.'

Indeed. We've highlighted here how despite Bush's claims, the economy is still not generating enough jobs to keep up with the increase in the total population.

We've noted how long-term trends---including an increase in the percentage of working poor and the decline of middle-class neighborhoods---indicate the Bush economy is on a downward spiral.

We've shared how the Bush administration officials---such as Ed Lazear, chief of the Council of Economic Advisers---have obfuscated or downright lied when it comes to discussing issues such as wage growth.

And new economic data---mostly bad---keeps coming in. Like the fact that wage stagnation is now hitting people with bachelor's degrees for the first time in 30 years, with earnings for workers who hold four-year degrees falling 5.2% from 2000 to 2004 when adjusted for inflation. And recent data showing economic growth slowed to 2.5% in the second quarter of 2006, down from 5.6% in the previous quarter, while housing growth sags across the nation.

But finally, a Bush administration official comes out and hints that we might be right.

Maybe because he's the new guy in the office.

Or maybe it's because Paulson, the former head of Goldman Sachs and clearly no slouch when it comes to strategic thinking, has another motive. Paulson also noted in his speech that he looks forward to working with Democrats on "revamping" Social Security.

As in taking away from America's workers the nation's most successful, guaranteed safety net, one that keeps retirees out of poverty. As in throwing up a stock market gamble the funds that workers count on to see them through retirement.

Between 1960 and 2004, Social Security helped cut the poverty rate among seniors by more than two-thirds, from 35% to 10%. But if the Bush administration gets away with its long-held goal of privatizing Social Security, workers' retirement funds would be invested by private corporations seeking to maximize their profits at workers' expense, while bad investments and an uncertain stock market rip retirement security out from under most workers.

Paulson's remarks on Social Security are in line with recent Republican comments, including House Majority Leader John Boehner (R-OH), who in an interview with The Washington Times said he promised to privatize Social Security.

So, if Paulson admits working people really aren't doing so well in this economy, something needs to be done, tight? So why not privatize Social Security?


***The Democrats are adamently against this and stopped it before. Hopefully, they can stop this again!


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