Trump's Economy Revealed

Robert Reich

Robert Reich Former U.S. Secretary of Labor, Professor at Berkeley

Donald Trump and his enablers are hoping that a strong economy will help the American people look past the damage they are doing to the country. That’s why Trump is constantly crowing about job numbers and the stock market in order to paint a rosy picture of the economy.

But when you look closer, the numbers reveal a very different story about Trump’s economy:

1. Wages are still stuck. The median annual earnings of full-time wage and salaried workers in 1979, in today’s dollars, was $43,680. The median earnings in 2018 was $45,708. So much for the $4,000 pay raise Trump and Republicans in Congress promised when they cut taxes for the wealthy and corporations. 

2. Percent of people with jobs is low. While the unemployment rate is low, employment is not nearly as good as it may look when you consider how many people have given up looking for jobs. The labor-force participation rate – the percent of working-age Americans with jobs – is the lowest it’s been since the late 1970s, when wives and mothers first began streaming into paid work to prop up family incomes.

3. Many people are working part-time jobs. Nearly 4 million Americans are stuck in part-time jobs, unable to find full-time jobs. Many of these part-time gigs are either freelance or contract, offering fewer rights and benefits. In turn, this has increased economic insecurity for millions of families.

4. A growing number of college graduates are overqualified for their current jobs. One in 10 college grads are underemployed, which is much higher than 20 years ago. At the same time, the cost of college has skyrocketed, with students going deeper into debt to pay for their education: 45 million Americans now owe 1.6 trillion in student debt.

5. The cost of health care continues to increase. Since 2008, average family premiums have soared 55 percent, which is twice as fast as workers’ earnings and three times as fast as inflation. Prescription drug prices also continue to rise – jumping almost 11 percent in the first half of 2019 alone.

6. Housing costs have skyrocketed. Nearly 39 million American households are now paying more than they can afford on housing. And more than one in four renters are spending over half their income on housing.

7. Americans are going deeper into debt to stay in the middle classConsumer debt, excluding mortgages, has climbed to $4 trillion, which is the highest it’s ever been, even after adjusting for inflation.

So is anyone benefiting in Trump’s economy? The wealthy and corporations have never had it this good. In fact, under the Trump-Republican tax cut, 83 percent of the gains will go to the wealthiest 1 percent of Americans.

But most Americans are being left behind.

The next time Trump and his enablers boast about the economy to distract from the damage they’re really doing to America, know the truth. Their failed economic agenda has made Americans poorer and less secure.

***
 
Reposted from Robert Reich

Robert Reich served as the nation’s 22nd Secretary of Labor and now is a professor of public policy at the University of California at Berkeley. His latest book, Aftershock: The Next Economy and America’s Future, is now in bookstores. His earlier book, “Supercapitalism,” is out in paperback. For copies of his articles, books, and public radio commentaries, go to www.RobertReich.org.

Posted In: Allied Approaches

Union Matters

Steel for Wind Power

From the USW

From tumbledown bridges to decrepit roads and failing water systems, crumbling infrastructure undermines America’s safety and prosperity. In coming weeks, Union Matters will delve into this neglect and the urgent need for a rebuilding campaign that creates jobs, fuels economic growth and revitalizes communities. 

Siemens Gamesa last month laid off 130 workers at its turbine blade manufacturing plant in Iowa, just months after GE Renewable Energy decided to close an Arkansas factory and eliminate 470 jobs.

The companies reported shrinking demand for their products, even though U.S. consumption of wind energy increases every year.

America’s prosperity depends not only on harnessing this crucial energy source but also ensuring that highly skilled U.S. workers build the components with the cleanest technology available.

Right now, the nation relies on imported steel and turbine components from foreign manufacturers like China while America’s own steel industry—well equipped for this production—struggles because of dumping and other unfair trade practices.

Steel makes up the bulk of turbine hubs and the wind towers themselves. It’s also used to make the cranes and platforms necessary for installing the towers.

Yet the potential boon to America’s steel industry is just one reason to ramp up domestic production of wind energy infrastructure.

American steel production ranks among the cleanest in the world, while China has the highest carbon emissions of any steelmaking nation and flouts environmental regulations.

The nation’s highly-skilled steelmaking workforce must play an essential role in the deeply-needed revitalization and modernization of the nation’s failing infrastructure. Producing the components for harnessing wind energy domestically and cleanly is an important step that will put Americans to work and position the United States to be world leaders in this growing industry.

 

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There is Dignity in All Work

There is Dignity in All Work