April-May 2008—Volume 28, No. 2

CAN'T WAIT FOR '08!
Gearing Up for the 2008 White House Run

by John Davis, UAW LUPA Advisory Council Chair

Soon, we’ll know who the candidates will be on the 2008 Presidential ballot. While much jockeying remains between now and then, the importance of this election can’t be emphasized enough. America’s working families have been squeezed for the past seven years, as health care, good wages, secure pension plans and a promise of the American dream have been eroding by a White House that sits hand in hand with big business.

In a time while working families have suffered, the big boys at the board tables have been raking it in. In the past six years, CEO wages have climbed 209% according to a recent MSN report. Of course few are making out as good as the oil companies these days. Since January of this year a gallon of unleaded gas is up 43%, while hourly wages are up 2% - before the adjustment for inflation. According to the Bureau of Labor Statistics, families with incomes of around $35,000 spend about 5% of their income on gas for the car, while those making $250,000 spend about 1% of their income on gasoline. Shared sacrifice at the pump is a myth, for the working class is paying more in comparative terms of their income.

There are still those who bewail the fact that gasoline prices in Europe are still higher than ours. This is true, but when you factor in that gasoline prices in Europe help cover the cost of their universal health care and the cost of higher education, it isn’t quite the same. In the United States, subsides and tax breaks help secure these ridiculous profits the oil companies have tucked away. Recently a friend of mine pointed out that almost $1.00 of the cost of gasoline is taxes, but you have to remember that President Bush’s energy plan slashed taxes the oil companies pay. These taxes on gasoline are paid by the consumer – not the oil companies. So, they get tax breaks on their income while we see increases in taxes at the pump.

In the 1970s, 10% of lower income families shifted to a higher tax bracket. In the 1980s that statistic was cut to 5%, held steady in the 1990s and saw a reversal since 2000. While the percentage of higher income families have held steady, the percentage of lower income families have grown as the middle category has reduced. This is further proof that the trickles down policies of the Reagan and Bush administrations have been failures. When tax breaks are levied to those at the top, the extra cash doesn’t trickle down. These reductions in federal income taxes have simply resulted in lower tax subsidies to state and local governments who are forced to raise sales tax to make up the difference. Sales tax is essentially a usage tax, so those who are forced to live off of their income end up shouldering a greater burden of the tax code, while those who sock their earnings away or invest in commercial enterprise once again benefit from capital gains tax cuts and see further reductions in their taxes.

This has helped to contribute to a 2.6% reduction in real income between the years of 2000 and 2005, adding up to a reduction of about $1900 per year. This equates to a reduction of $9500 over the course of time that comes out of grocery stories, clothing stores, car dealers and etc. When this happens the economy feels the impact through the reduction of expendable income and people lose their jobs. As real wages drop, the necessity of credit spending increases. Many working class families have resulted to credit card debt to simply make ends meet. During the Republicans time of control, legislation has been passed raised the limit on the percentage rate that credit card companies can charge, along with a change to the bankruptcy code that eliminates a person’s ability to get out of their credit card debt in a person bankruptcy. A final point on this issue must be made that the number one corporate sponsor to President Bush’s 2004 reelection bid was credit card mogul MBNA America.

For the fifth year in a row, the number of Americans without health care continued to climb. From 2000 to 2005, the number of uninsured Americans grew by 1.7% or 7,000,000 individuals. The greatest surge in these numbers occurred where employer provided health care was lost. The stagnate labor market, complicated by the addition of these new short sighted trade deals, helped push more and more families to the rolls of the uninsured. Individuals in the lowest 20% income bracket were the most likely to be uninsured, and were probably those who needed it the most due to the fact they can least afford preventative health maintenance.

These are just a few of the issues that voters must consider when going to the polls. For far too long working class Americans have allowed misinformation and lies to distract them from the real issues they face. This election is vital to the survival of working class families and it should be approached from this perspective. Labor communicators are committed to educating our membership, and working class Americans in general, on the issues that will determine this election. The American Dream shouldn’t be limited to the top 1% on the income bracket, but should stand true for every citizen. As the great Dr. Martin Luther King, Jr. stated the time has come “for American to live up to the meaning of its creed that all men are created equal.” Hopefully, the 2008 presidential race will be a step toward fulfilling the dream of Dr. King and countless working class Americans.

In Solidarity