Poor Economy Drives the Debate

President Bush managed the first negative net job growth rate since President Herbert Hoover at the outset of the Great Depression.


 

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The sagging U.S. economy is setting millions of families adrift into a world of joblessness and despair.

Polls show Americans are finally focused on the sagging economy. It's about time. America's workers face the greatest jobs crisis since the Great Depression.

The nation's economy has shed more than 3.3 million private sector jobs since George W. Bush took office, the largest jobs loss since the administration of Herbert Hoover. More than 2.5 million of those jobs were lost in the hard-hit manufacturing sector.

When Bush took office in January 2001, the unemployment rate was 3.9 percent. It hit 6.1 percent in August, 2003. That number translates into 9 million jobless American workers. And that's just the official jobless tally. Another 5 million or so Americans are working part-time or have become so discouraged they no longer look for work.

Affordable Health Care
Today, 15 percent of the U.S. population lacks health insurance. That means 43.6 million Americans do not have medical coverage, a six percent increase over a year ago.

Lay-offs helped to spike those numbers. But even those who have jobs are seeing their benefits disappear. Only 61 percent of workers receive health insurance from their employers.

Employers keep shifting the costs to workers, who struggle to pay higher premiums, deductibles and co-payments.

Premium shock is driving working families over the edge. A 15 percent increase in the costs of employment based health insurance in 2003 follows a 12.7 percent increase in 2002. Those shocking premiums erode pay increases won in negotiations.

Prescription drug costs also strain family budgets. Retail drug prices increased an average of 7.7 percent per year since 1991, more than double the average inflation rate of 2.7 percent.

Fair Trade Policies
While President Bush pushes the Free Trade Area of the Americas (see the FTAA insert), earlier trade agreements destroy our jobs.

NAFTA alone has caused a net loss of more than 750,000 U.S. jobs. China's entry into the World Trade Organization and its recently acquired Permanent Normal Trade Relations status will cost us tens of thousands of American jobs in the years ahead.

In 2002, the U.S. trade deficit with China was over $103 billion. By contrast, our trade deficit with Mexico was $37 billion last year.

"Yes, facts drive the national debate," said International President Tom Buffenbarger.

"But next January, February and March, let's drive our friends and family members to the polls and caucuses," Buffenbarger urged. "If we do, the IAM can literally nominate the next President of the United States."

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