Underlying all the Right Wing Noise Machines' economic arguments is the assumption the US economy is number one; that a pure market economy is best and any government regulation is bad. This argument fails to recognize the disproportionate nature of the US economy's success. While it is impossible to make a market economy completely egalitarian - and perhaps counter-productive to do so - the last 5 years have seen a very disconcerting rise in inequality.
In terms of the percent of its population living at or below the poverty line, for instance, the US ranks worst among 16 wealthy countries, according to the Luxembourg Income Study. That study found that 17 percent of Americans are poor. As for child poverty, the US also sits on the bottom, with 21.9 percent.
Here's a graphic representation of the above statement from the US Census Bureau:
How a nation deals with poverty is a question of its national values. The above chart indicates a Republican controlled government could care less about decreasing the poverty rate.
Then there is the problem of wages. Simply put, wages for 80% of the US population have decreased after adjusting for inflation, even after the economy hit full employment in December 2005.
No matter when you start the measurement of wages during this recovery, inflation destroys any possible wage gains.
The median hourly wage for American workers has declined 2 percent since 2003, after factoring in inflation. The drop has been especially notable, economists say, because productivity -- the amount that an average worker produces in an hour and the basic wellspring of a nation's living standards -- has risen steadily over the same period.
As a result, wages and salaries now make up the lowest share of the nation's gross domestic product since the government began recording the data in 1947, while corporate profits have climbed to their highest share since the 1960's. UBS, the investment bank, recently described the current period as "the golden era of profitability."
Part of the problem is the Republicans favoring upper-income levels in tax policy. According to the tax policy center, 86.2% of the benefits of extending capital gains and qualifying dividend rate cuts would go to income levels over $100,000. 91% of the Economic Growth and Tax Relief Act Estate Tax provisions would go to incomes over $100,000. Basically, Republican policies allow the rich to get richer while the middle class wages stagnate after inflation.
One of the main problems with the lack of wage growth is the poor rate of job creation. This expansion has seen the lowest rate of job creation in the last 40 years. Also notice how the amount of jobs promised by Bush were greatly exaggerated:
So - we have a vibrant and dynamic economy. That is a given. However, the question of who benefits from the gains in the economy is one the Republicans have clearly answered: the upper income levels and corporations at the expense of 80% of the country.
Update [2006-8-28 10:31:2 by bonddad]:: Below Bushed But Not Defeated wrote a simple election year game plan for the Democrats. I think it's great. If you like it, please give the posted a little recommended love:
Panel #1 - More than 85% of the Republican Tax Cuts Have Gone to The Wealthy Since 2000.
Panel #2 - The Poverty Level has increased every year since the year 2000.
Panel #3 - Corporate Profits and CEO pay have substantially increased since 2000.
Panel #4 - The Real Wages of Average Americans have decreased since 2000.
Panel #5 - Job Growth has been the worst its been in the US during a six year period since the Great Depression.
Panel #6 - Since 2000 Millions More Americans Lack Health Insurance.
Panel # 7 - You Can Thank the Republicans