The latest poll about what Americans think of the way Bush is handling the economy continue to show 60% do not approve of the way Bush is handling the economy.
This morning on MSNBC was a discussion of why the record high stock market, higher corporate profits, higher tax collections and lower gas has prices have not been reflected in the way Americans think Bush is handling the economy.
Here is WHY. As to the stock market, 80% of the stocks are owned by 10% of Americans. Even though about ½ of Americans own stock, most of the middle income Americans own stock only in their retirement accounts. Thus increases in the market may show in higher retirement account balance but that does NOTHING to help them pay their bills. Only the top 10% derive any significant amount of income that they can spend from their Stock market Profits.
As to higher corporate profits and larger tax collections they too do not enable the vast majority to pay their monthly bills. When the poor and most of the middle income Americans hear the President and his other officials telling them how great the economy is and they have either no more or less money to meet their ever increasing bills they do not see how this “Great Economic News” Bush tells them about is possible. The truth is that for all but the top 10% the goods news means NOTHING.
Even the lower gas prices have not offset other increases and in comparison to gas prices two or even one year ago they are high.
I decided to look at my situation. I am a very typical retired American and had no changes in my spending patterns. I first took a look at my income. My Social Security and Military pensions went up but so did my Medicare premium which impacted my Social Security Increase. Bottom line I saw a $600 increase in my retired income.
I looked at my expenses that showed a significant increase. My Homeowners and Flood Insurance premiums went up OVER $600. Thus before I looked at anything else I was at break even. When I looked at the increase in gas prices on the 12,000 I drove last year I saw another $400 in gas cost. My energy cost jumped about 35% or about $400 and food prices were up about 4% which was another $300. The bottom line—I had a LOSS in REAL income of $1,100 without looking at all the smaller things that went up in price.
I do not point this out for any sympathy but to show WHY all the so called “GOOD ECONOMIC” news is not being received well in America. What Bush does not get is that you can not talk someone into having more money to spend. At the end of EACH month the Americans KNOW if they are better off or not. Although the data Bush uses is accurate, it does not translate into a better life for ANY of the POOR and not for the majority of Middle Income America. Do not be surprised in the future when the polls do not give Bush credit for the economy. If you were to poll only the top 20% the results would be positive but when you ask everyone the answer is just the opposite!