Census Report Mirrors Message of the Kerry Campaign on the Economy

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Income Gap Up Over Two Decades, Data Show
Income Gap Between Richest and Middle-Income Americans Up Steadily Over Two Decades, Data Show

http://abcnews.go.com/wire/US/ap20040817_394.html

WASHINGTON Aug. 17, 2004 — Over two decades, the income gap has steadily increased between the richest Americans, who own homes and stocks and got big tax breaks, and those at the middle and bottom of the pay scale, whose paychecks buy less.

The growing disparity is even more pronounced in this recovering economy. Wages are stagnant and the middle class is shouldering a larger tax burden. Prices for health care, housing, tuition, gas and food have soared.

The wealthiest 20 percent of households in 1973 accounted for 44 percent of total U.S. income, according to the Census Bureau. Their share jumped to 50 percent in 2002, while everyone else's fell. For the bottom fifth, the share dropped from 4.2 percent to 3.5 percent.

Jobs and the economy top the list of voter concerns this election year. President Bush touts a strong economy that is growing, but polls find that Americans have doubts and think jobs are scarce. John Kerry is trusted more on the economy, with Democrats talking regularly of "two Americas," divided between the rich and everyone else.
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Bush out of touch and out of time:

Bush Tells Michigan Crowd Economy Improving
Monday August 16
http://www.wjla.com/news/stories/0804/166483.html

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Bush credited recent signs of economic recovery to "two well-timed tax cuts" and to people's entrepreneurial spirit.

Unemployment in the state is 6.5 percent, a full percentage point higher than the national average.

"George Bush must think there's a sucker born every minute if he thinks he can trick the public into thinking he's got an agenda for working families," said Kerry spokesman Phil Singer. He said Bush's "tax policies shifted the tax burden onto middle class Americans."

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1. Another angle

Income Gap Of Poor, Rich, Widens



The U.S. jobs market is soft, sending wages down. Hiring came to a near standstill last month, with companies adding just 32,000 new jobs overall, stunning economists who had expected seven times as many.

More than a million jobs have been added back to the 2.6 million lost since Mr. Bush took office, but they pay less and offer fewer benefits, such as health insurance. The new jobs are concentrated in health care, food services, and temporary employment firms, all lower-paying industries. Temp agencies alone account for about a fifth of all new jobs.

Three in five pay below the national median hourly wage — $13.53, said Sung Won Sohn, chief economist for Wells Fargo.

On a weekly basis, the average wage of $525.84 is at the lowest level since October 2001.

http://www.cbsnews.com/stories/2004/08/13/national/main635936.shtml