[Congressional Record Volume 160, Number 16 (Tuesday, January 28, 2014)]
[House]
[Pages H1434-H1435]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
THE STATE OF OUR ECONOMIC UNION
The SPEAKER pro tempore. The Chair recognizes the gentleman from
California (Mr. Schiff) for 5 minutes.
Mr. SCHIFF. Mr. Speaker, this evening, from the dais behind me,
President Obama will deliver his annual State of the Union message; and
while there are hopeful signs and a brightening of the economic outlook
for the country as a whole, the President will almost certainly
concentrate on the battles ahead.
Even as America struggles to shake off the effects of the worst
downturn since the Great Depression, our economy and our society are
being challenged by a yawning inequality gap that affects tens of
millions of American families and threatens to erode the underpinnings
of our social contract.
Last fall, economists Emmanuel Saez and Thomas Piketty released an
analysis of 2012 tax returns, and they found that the top 10 percent of
American earners took more than half of the country's total income in
2012--the highest level ever recorded. The top 1 percent received more
than 20 percent of the income earned by Americans, a level not seen
since 1928, the year before the stock market crash and the beginning of
the Great Depression. Top earners have also recovered more quickly over
the last 3 years as their wages and investments have recouped value at
a much brisker clip than those of the rest of Americans.
Inequality has also been a persistent political theme here and around
the world, and it helped to launch the Occupy Wall Street movement.
Last year, Pope Francis spoke out against what he termed an ``economy
of exclusion'' while New York City's new mayor, Bill de Blasio, won the
election by highlighting inequality there. President Obama, himself,
made expanding opportunity a major theme in a speech in December, and
he discussed the issue at length in his past two State of the Union
addresses. I expect him to return to the theme tonight and in the
coming months of the 113th Congress as we prepare to go to the polls in
November.
There is a broadly held, national consensus that an overly high
concentration of wealth spawns a host of economic social and political
ills, but that agreement has not fostered a concerted strategy on
expanding opportunity and closing the wealth gap. America has always
rewarded hard work, and the possibility for a better life has been part
of the attraction for generations of immigrants and others struggling
to climb the economic ladder; but economic mobility, as a recent study
from Harvard and Cal demonstrates, varies greatly within the United
States, and while economic mobility has not changed significantly over
time, it is consistently less prevalent in the United States than in
most developed countries. We should never seek to punish success or to,
as some describe it, soak the rich, but we must take steps to address
the problem of growing inequality both in the short term and in the
long term.
I believe there are three things that Congress and the President can
do to give Americans and the middle class and those who aspire to join
it the chance to move up:
First, we need to extend emergency unemployment assistance for those
who are still looking for work and who cannot find a job on their own.
The weekly litany of those who are losing benefits is disheartening,
and we must not turn our backs on our fellow Americans;
Second, we need to raise the minimum wage nationwide, and it is
shameful that it has been 5 years since the last increase. In fact,
according to one study, the minimum wage today is actually worth $2
less than in 1968. Raising the minimum wage to just over $10, as I
support, would push millions of hardworking Americans out of poverty
and stimulate economic activity throughout the country;
These two steps can be part of a short-term solution that stops the
bleeding, but real change requires giving American workers the
education and training to compete domestically and internationally for
the high-skilled, high-wage jobs that are the ticket to the middle
class and beyond. Investing in education and building schools and
curricula for the 21st century is a long-term project, but it is the
one that has the greatest potential in terms of economic growth and
increased opportunity while preserving the spirit of free enterprise
and entrepreneurship that built this country.
Mr. Speaker, tonight the President will challenge us to join him in
an effort to reinvigorate the American Dream for another generation.
Let us join him in that sacred task.
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