Kerry could get a boost if report shows U.S. workers losing purchasing power
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By Marilyn Geewax
WASHINGTON BUREAU
Friday, August 6, 2004
WASHINGTON -- When the Labor Department releases its July jobs report this morning, Democrats will be watching not only the employment trends, but also whether hourly wages continue to lag inflation.
If so, Democratic presidential nominee John Kerry may be able to argue more forcefully that President Bush has failed to help average workers.
More after the jump.
I'm surprised that this hasn't been discussed with the report. Anyone know what our purchasing power is?
http://www.statesman.com/business/content/auto/epaper/editions/friday/business_1431d252f5af40ae1080.
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Bush supporters also argue that wage gains have not been as small as Democrats claim because so much money must go to rising health care insurance costs. Private employers, on average, pay about $23 for each hour worked, but of that, about $6.50 goes to benefits.
How much of that $6.50 is really going to health care? Part of the package includes vacation time, sick time, reimbursement for education. Workers comp generally is included in that number too. And they use the phrase "on average". I am very suspicious of that phrase.
They also are not telling that as health care premiums go up, the employee is picking up the slack. Four years ago, we paid nothing for health insurance. Now we pay $2700/year, without going to the doctor.
MKC