U.S. Representative Sandy Levin
12th District of Michigan

(Washington D.C.)- U.S. Rep. Sander Levin (D-Royal Oak), a senior member of the House Ways and Means Committee, today issued the following statement after President Bush's speech on the economy before the Chicago Economic Club.

“The rosy economic scenario painted by the President today rings hollow in the homes of millions and millions of American families,” said Rep. Sander Levin.  “The middle class in this country is getting squeezed between stagnant wages, falling household incomes and rising costs of living, including health care, gasoline, and home heating.”

“The President has failed to take the action necessary to address the manufacturing jobs crisis,” said Rep. Levin.  “Our trade deficit stands at record levels and the Bush Administration refuses to vigorously enforce our trade agreements, act against unfair trading practices, and break down the barriers that other countries use to keep out U.S. goods.”

Key Facts: Wages Falling Behind, Household Income Down, and Job Recovery Slow

Wages are failing to keep up with inflation: in the past year, real average hourly earnings have fallen by about 1 percent.

Over President Bush’s first term, real median household declined by $1,669.

Four years into the official economic “recovery,” this is the worst jobs recovery on record, with only a 2.7% increase in payrolls since November 2001 (that’s less than 1%/year).

The economy is down over 2.8 million manufacturing jobs compared with January 2001; despite a very recent pickup in these jobs, the manufacturing sector has been in a fairly steady decline throughout the recovery, and jobs are still down from a year ago.

Key Facts: Health Care, Gasoline, Home Heating, Education Costs Soar for Middle Class Families

The cost of family health insurance has skyrocketed 57 percent since President Bush took office.  The typical American family must now pay $9,950 per year for health insurance compared with $6,348 in 2000. [Kaiser Family Foundation]

The cost of a gallon of gasoline costs 50 cents more today – about 28 percent – than a year ago.

Winter Heating Costs Have Risen this year by $281, or 38 Percent.  The cost of heating fuels has skyrocketed, leaving American families unprepared to deal with unprecedented increases in heating bills.  Since President Bush assumed office, the cost of heating a home for the winter has increased by $438, or 79 percent. [Energy Information Administration, Short Term Energy Outlook, 12/6/05]

College Costs Continues to Skyrocket.  Tuition and fees at four-year private universities have increased by almost $1,200 or 5.9 percent in 2005 and 32 percent since 2001.  At four-year public universities, tuition and fees increased by 7.1 percent this past year and 57 percent since President Bush took office.  [College Board, 10/05]

At the same time, President Bush is pushing a budget bill that cuts $12.7 billion from the federal student loan program – the single largest cut in history of the program. 

Key Facts: Spiraling Out-of-Control Deficit and Debt

The last three years have seen the largest budget deficits in US history: $378 billion in 2003, $412 in 2004, and $319 billion in 2005.

The national debt has ballooned to nearly $3 trillion since President Bush has come to office.

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