[Congressional Record (Bound Edition), Volume 152 (2006), Part 14]
[Senate]
[Pages 18703-18704]
[From the U.S. Government Publishing Office, www.gpo.gov]




                          MIDDLE-CLASS SQUEEZE

  Mr. REID. Mr. President, I want the record to reflect that I 
appreciate very much Senator Stabenow, Senator Reed, and Senator 
Sarbanes coming here today and talking about something we haven't 
talked about much in recent weeks. The Republicans wanted to make this 
September ``security month.'' So we have devoted all of our time 
talking about the failure of the war in Iraq and the war on terrorism. 
We know that the war in Iraq has been a diversion to the real war on 
terror, but that is what they want to talk about.
  I am so grateful that my friends came and talked about the economy. 
It is an issue that deserves to be a top priority of this Congress but 
has been ignored for years--the need to strengthen America's middle 
class. Our country has always been a land of opportunity. As a nation, 
we take pride that all Americans, no matter where they begin in life, 
have the opportunity to work hard, get ahead, and prosper. It is called 
the American dream, and it is what our country is all about.
  Unfortunately, while it is still possible for Americans to do well, 
it is getting harder and harder all the time. America's middle class 
faces ever increasing obstacles. Incomes are going down, but costs are 
going up. More and more middle-class families are being squeezed, and 
this Congress has done nothing to stop that.
  Let's look at the facts. There really is a middle-class squeeze under 
this Republican administration. Real household income has declined 
during the tenure of President Bush. It has declined by $1,273 a year. 
That is pretty significant. This is median inflation adjusted household 
income. It was $47,599 in 2000. Here is what it is 5 years later, 
$46,326. That is not a record anyone should boast about.

[[Page 18704]]

  The rich have been able to do much better. The average tax break for 
somebody over $1 million is about $38,000, where for someone under 
$50,000, the tax break has been about $6.
  In addition to the household income declining, basic costs of the 
middle class have gone up. The rich are getting richer, the poor are 
getting poorer, and the middle class is getting squeezed.
  The cost of going to college in these 5 years has gone up 44 percent. 
Health insurance premiums, when one can find health insurance, has gone 
up 71 percent. We are up to over 47 million Americans now with no 
health insurance and millions of others who are underinsured. Energy 
costs certainly have gone up. Parents are paying $3,700 more than they 
were 5 years ago. Health insurance, if one can buy it, is up $4,500 in 
the last 6 years. You are paying more.
  This story only tells half the story. As families struggle to afford 
what they need, they also find themselves less secure. Since President 
Bush took office, 3.7 million more Americans are without employer-
sponsored retirement plans. Almost 7 million more Americans are without 
health insurance, and millions more are carrying significant debt.
  Since 2000, household debt has increased by 35 percent, or more than 
$26,000. When we put all this together--declining incomes, skyrocketing 
prices, rising insecurity--it is no wonder the economy remains a top 
concern for the American people. The kitchen-table concerns are issues 
that matter most to families, yet they are also the issues that are 
routinely ignored or made worse by this Congress that has been given 
the name ``do-nothing Congress,'' and rightfully so.
  Just listen to Washington Republicans to see how out of touch they 
are. They are convinced the economy is doing great. They believe we 
should stay the course. We not only want to stay the course in the war 
in Iraq, according to the President, we want to stay the course with 
the economy, even as families struggle like never before.
  We can do better than the Republican record of failure--much better. 
We can take a new direction, and it starts by putting the middle class 
first for a change.
  Democrats have developed a variety of proposals addressing the 
middle-class squeeze, but every time the Republican majority has 
blocked our efforts so they can help special interests.
  As to rising gas prices, we proposed a ban on price gouging. The 
prices have dropped down. They are going to go back up. There is 
nothing that has changed substantially. All we need is a problem in 
Nigeria or another storm. The majority blocked our price-gouging 
legislation. They blocked it on behalf of the oil and gas industry. 
But, of course, they should, Mr. President, because this is the most 
energy-friendly administration we have had in the history of our 
country.
  To lower the cost of prescription drugs, Democrats proposed repealing 
the Republican ban on negotiating for lower prices in Medicare, but the 
majority blocked that on behalf of the pharmaceutical lobby.
  To bolster middle-class incomes, Democrats proposed ending tax breaks 
that encouraged companies to outsource jobs overseas, but the majority 
continues to support these tax breaks at the behest of multilevel, 
multinational corporations.
  To cut college costs and help more Americans get ahead, we proposed 
making college tuition deductible from taxes. That is gone. The 
majority pushed through the largest student aid cut in the history of 
our country and allowed the college tuition deduction to expire even 
while pushing for huge tax breaks for special interests and 
multimillionaires.
  The bottom line is that all too often in Republican Washington, 
special interests rule while the middle class is left behind. As I 
said, the rich are getting richer, the poor are getting poorer, and the 
middle class are getting squeezed, and it has never been so apparent as 
during these last 6 years. America literally cannot afford to stay the 
present course.
  While Washington Republicans have been ignoring the plight of the 
middle class, they have been digging our Nation into a budget hole that 
will take decades to correct. As Senator Conrad has explained so 
powerfully, since 2001, our national debt has exploded from $5.8 
trillion to $8.5 trillion. The debt will double to $11.6 trillion by 
2010.
  The debt owed to foreigners has already doubled. The United States 
has borrowed more from overseas interests--that is foreign countries--
during the Bush Presidency than we borrowed during all previous 
Presidencies combined. I think that is irresponsible, and our children 
and our grandchildren will pay the price.
  We have several Democratic Senators who are experts on the economy 
who have come and spoken. Senator Sarbanes, who sadly will retire at 
the end of this year, has been a wonderful Senator. He has handled the 
Banking Committee with expertise, and I so appreciate his coming to the 
floor today and talking about this issue. Our Democrat on the Joint 
Economic Committee, Jack Reed, has done a wonderful job.
  But I want to return to my main point. We need a new direction in 
America, one that strengthens the middle class. We believe it is long 
past time Washington focused on the people who work hard every day, 
play by the rules, and are the backbone of our Nation. They are being 
ignored, and they need our help. Our goal is not for Government to 
spend more; it is for families to spend less--less for college, less 
for health care, less for fuel, less for energy--all while enjoying an 
opportunity to succeed and prosper in the global economy and a chance 
at the American dream.
  Mr. President, for 10 years, to show how little this Republican-
dominated town feels about the poor, we have been unable to increase 
the minimum wage. When President Clinton was President, we tried and a 
filibuster by Republicans stopped us. The minimum wage--we believe 
Congress and Washington should focus on ways to help make the American 
dream come true, to help all Americans achieve their dreams. But to do 
that, we need to change course by, at long last, standing up to special 
interests and standing up for the common good. That is the Democratic 
vision. That is the new direction we seek. America's middle class in 
our Nation deserves no less.

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