Mr. Speaker, while the Republican Members of Congress have been blocking the first minimum-wage increase in 9 years, there is new evidence that income stagnation is not just hurting lower middle- class families but middle-class families…
Mr. Speaker, while the Republican Members of Congress have been blocking the first minimum-wage increase in 9 years, there is new evidence that income stagnation is not just hurting lower middle- class families but middle-class families across the board.
Just the other day, the Los Angeles Times reported that income stagnation is now hitting people with a 4-year college education. In fact, the White House's own economists report that earnings and income for employees with 4-year college degrees fell by 5.2 percent between 2000 and 2004, during the President's first term. That is when adjusted for inflation. So, basically, if you have a college degree education, you had a decline in income.
Now, for 30 years, 40 years we have told people that you earn what you learn. A college degree today is no longer as valuable a ticket to success as it was before. You have to literally go back 30 years, to the 1970s stagflation, when people with a college education saw their income decline.
Now, what is happening in addition to income decline in America? This isn't just for working stiffs. This is for people with a 4-year college education and also for people with a master's education.
Energy prices? Well, they are up, more than doubled. In fact, when the President took office, gas was $1.33 a gallon. Today, it has gone up to close to $3 a gallon.
Health care costs. Health care costs for a family of four has risen 78 percent, to $11,000 a year for a family of four.
College costs for their kids, up 38 percent for a 4-year college education.
Savings, for the first time since World War II, are in negative territory, which is why people say bankruptcy and debt is one of their biggest economic concerns besides filling up their car with gas.
So take that whole picture: incomes declining, energy prices up, close to doubling; health care costs $11,000 a year for a family of four, and continuing at 25 percent increases; college costs up 38 percent; savings in negative territory. We have a Swiss cheese economy, and it is hurting and killing the middle class, who have done everything right. They got told to get a college education and you earn what you learn. Today that college education ain't enough. They went out and earned a master's degree in education. That ain't enough.
And on top of that, besides incomes going down, all the costs to maintain a middle-class life, health care, energy costs, education, and retirement security, are all under attack. And what do my colleagues do when it comes to retirement security, when corporation after corporation is eliminating pensions? They want Social Security to lead the way.
The plan for retirement security isn't, when companies are eliminating pensions, to have Social Security eliminated or privatized. It is to give them that security that people know, that people like, and that is the security that comes with Social Security.
On energy. What is their answer to rising costs? As my colleague from Oregon said before, they handed over $14.5 billion in taxpayer subsidies to big oil companies so they could make additional profit. My view is if gas is 75 bucks a barrel, or 74 bucks a barrel, let the free market work. Use your profits to drill. Don't take taxpayers to subsidize it. People out there are paying twice, once at the pump at 3 bucks a gallon and once on April 15 when we hand over $15 billion a year.
And for health care costs? They handed off to the pharmaceutical companies an additional $130 billion in profits.
Middle-class families are struggling with ever-increasing taxes, ever-increasing costs and stagnant incomes. It is time to have an economic strategy that, again, lifts all boats.
Now, I don't want to take a stroll down memory lane; but in the 1990s, when we were running balanced budgets and we were running a surplus, incomes for all people, not just the top end, but for all workers were up. College costs were contained, health care inflation was running alongside regular inflation, and energy prices were actually $1.33 a gallon, not 3 bucks a gallon.
That was a time in which we actually made an improvement. We invested by giving all kids health care whose parents didn't have health care. We created 22 million jobs. We ended welfare as we know it. We put people to work rather than dependency. We had record homeownership, low inflation, a balanced budget, record surpluses, and began to pay down the debt.
Put your fiscal house in order. Invest in education, health care, and energy independence in America. It is time for a change. It is time for new priorities.