The Message:
Republican Policies = Lower Wages
The evidence is in, and it couldn't be clearer. During the current Republican economy, big corporations have reaped record profits, and CEOs have received huge bonues, but wages for most workers have failed to keep up with inflation.
The Proof:
REAL WAGES - 6/14 Labor Department Report
"Real average weekly earnings fell by 0.7 percent from April to May."
Wait . . . it gets worse.
In addition to its monthly report on
average wages, the Labor Department releases a quarterly report on
median wages -- a better indication of what typical American workers are earning.
Here's how those numbers are looking:
The inflation-adjusted median weekly earnings of wage and salary workers fell 1.2% in the first quarter of 2006, according to data released April 20 by the Labor Department's Bureau of Labor Statistics. . . .
The first-quarter drop in inflation-adjusted weekly earnings follows year-over year declines of 1.8% in fourth-quarter 2005 and 1.2% in third-quarter 2005, according to BLS data.
But wait . . . it still gets worse.
The Democratic office of the Joint Economic Committee has taken a longer view, compiling Labor Department figures for real wage growth from the last five years of the Clinton Administration and the first five years of the Bush Administration.
The results?
After adjusting for inflation, the usual weekly earnings at the exact middle of the distribution--real median usual weekly earnings--fell 0.9 percent from the fourth quarter of 2000 to the fourth quarter of 2005.
That contrasts with healthy growth of 7.3 percent in the previous five years under President Clinton.
Not only have median real earnings stagnated, but the distribution of earnings has become more unequal.
Real earnings at the bottom of the distribution (the 10th percentile) have fallen 2.1 percent under President Bush, while those at the top (90th percentile) rose 4 percent.
JEC Democrats have two charts covering these points, available here and here.
With punchier language and more compelling design, that first chart could really say it all. Here's a text-only proposal:
Democratic Policies = Higher Wages
Republican Policies = Lower Wages
Real Wages, 1995-2000 [Blue Bar]
Up 7.3%
Real Wages, 2000-2005 [Red Bar]
Down 0.9%
The Misleading Republican Spin on Wages:
"RNC Economy Talk, All the Stats You Need to Know" Week of May 29, 2006
". . . More good news . . . Personal Incomes Increased 0.5% in April"
Good News? Not exactly.
The personal income figure cited by the Republicans represents total national income in billions of nominal dollars. It doesn't take into account either population growth or inflation.
Here's the actual Commerce Department report on personal income. Check out the second to last line of Table 1. It shows per-capita, inflation-adjusted disposable personal income.
And guess what?
It dropped 0.2% in April, the same period Republicans are claiming as a "good news" month.
For Republicans, lower wages = good news.