# Presentation: 526203

## The Economy

## The Worst Job Record Since Herbert Hoover

- In just 3 years, Republicans have lost 3 million private sector jobs and added $3 trillion to the national debt
- The number of people who have been looking for work for over 6 months without finding a job has tripled
- Average family incomes have dropped

## The Democratic Plan: Fair, Fast, Fiscally Responsible

- Democrats have a plan to create 1 million jobs with:
- A tax credit that encourages manufacturers to create jobs here in the U.S.
- A child tax credit for working families
- A tax break for companies that hire the long-term unemployed—including small businesses
- Unemployment insurance benefits
- Aid to states to boost investment in education, transportation, and homeland security
- A 6-year highway bill that will create 1.7 million jobs

## Republican Government: “By the Few, Of the Few, For the Few”

- Republicans continue to pursue a partisan agenda to reward their special interest cronies
- Three unaffordable tax cuts will shift the tax burden to the middle class
- Instead of passing legislation to create manufacturing jobs in the U.S., they are pushing a bill that will give big tax breaks to multinational corporations to move jobs overseas
- They refused to extend unemployment insurance
- And they are fighting on behalf of big business to deny overtime pay to millions of Americans

## Republican Policies Have Taken Us From Biggest Surplus to Biggest Deficit in Three Years

**2000**

**2001**

**2002**

**2003**

- Source: OMB

- (Surplus/deficit, $ in billions)

## Bush Economic Record:Only Administration in 70 Years with Decline in Private Sector Jobs Percentage change in Private Nonfarm Employment

**Average Annual Growth Rate (percent)**

- Source: Bureau of Labor Statistics, U.S. Department of Labor

## Bush Economic Record:Administration with the Greatest Average Annual Decline in Household Income

- Bush Economic Record:Administration with the Greatest Average Annual Decline in Household Income

**Kennedy**

**Johnson**

**Nixon****	**

**Ford**

**Carter**

**Reagan**

**G.H.W. Bush**

**Clinton**

**G.W. Bush**

**Average Annual Growth Rate (percent)**

## What the Experts are Saying

- 	“The tax cut plan proposed by President Bush is not the answer to the problem...there is wide agreement that its purpose is a permanent change in the tax structure and not the creation of jobs and growth in the near term. The permanent dividend tax cut, in particular, is not credible as a short term stimulus.”
*More than 400 economists—including 10 Nobel Laureates. New York Times, 2/11/03*
- 	“The budget deficits it creates would be akin to ‘arsenic poisoning’ for the economy.”
*Report by the Committee for Economic Development, a blue-ribbon organization of corporate CEOs urging the president to scrap his tax cut proposal. Wall Street Journal, 3/16/03*

## What the Experts are Saying

- 	“The administration’s policy was never really about job creation,” Mr. Mischel said. “It was about shifting the burden of taxation onto wage earners and off people who have capital income, and about shrinking the government.”
*Larry Mischel, and economist from the Economic Policy Institute. New York Times, 5/29/03*
- 	“Over the long run, though, it’s going to be very damaging...We’re talking about massive cuts in Medicare, Medicaid and Social Security. Without cutting defense or implementing tax increases, that’s the only place the money can come from.”
*Alan Auerbach, a UC Berkeley economist. San Francisco Chronicle, 5/28/03*

## What the Experts are Saying

- 	“Budget deficits that would occur under current law ...could set in motion an unsustainable dynamic in which large deficits result in growing interest payments that augment deficits in future years. Such a development could have notable, destabilizing effects on the economy.”
*	**-- Remarks by Alan Greenspan at the Securities Industry Association Annual Meeting, Boca Raton, FL, 11/6/03*