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Today in Congress

 

news release
from

BARNEY FRANK

October 6, 2006            

FOR IMMEDIATE RELEASE
CONTACT:  Peter Kovar 202.225.
9400
 

CONGRESSMAN BARNEY FRANK'S STATEMENT ON THE DISAPPOINTING SEPTEMBER JOB NUMBERS

Today’s announcement that only 51,000 new jobs were created in September is extremely disappointing by any measure, whether it’s compared to the Bush administration’s own projections or to growth rates during the 1990s.  The failure of the economy during the Bush years to create jobs has led to a labor market in which, five years after the 2001 recession, the vast majority of American workers have failed to see real wage gains.   Nominal wage growth of 4% for 2006 is barely above the inflation rate and continues to lag productivity growth by a large margin.

“The only piece of apparent good news today, a lower unemployment rate, in reality only points to an increasing number of discouraged workers who have dropped out of the job market altogether in the face of declining wages and few job opportunities.  This is evidenced by the historically low percentage of Americans participating in the workforce today.  We may now be seeing a vicious cycle in which low wages and a lack of job creation is driving discouraged workers out of the labor market, which in turn eases any pressure on employers to raise wages. 

“It’s particularly disturbing that today’s employment and earnings numbers come as economists have been predicting slower overall economic growth in the months ahead.  We have heard repeatedly from the Bush administration that wage growth would eventually improve under conditions of sustained economic growth - it was simply a matter of waiting for wages to “catch up” to GDP growth.  Unfortunately, wages may catch up to GDP but only as a result of GDP slowing to the anemic pace of wage growth. 

“It’s clear that the benefits of economic growth during the Bush years have accrued to a very small number of the wealthiest Americans, while the vast majority of America’s workers have failed to see any real economic gains.  The Administration’s repeated claims that substantial real wage growth is just around the corner are becoming less and less credible, something that the staff of the House Financial Services Committee has documented in the attached fact sheet, ‘Bush Administration Adopts a No Tipping Policy’.”

Bush Administration Adopts a “No Tipping” Policy
Report of the House Financial Services Committee Democratic Staff (10/6/2006)



 

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