NEW REPORT: Families Continue to Struggle in Bush Economy

Family Debt and Bankruptcies Driven Up by Rising Costs and Lower Wages; Kerry to Discuss Plan for a Stronger Economy for America's Families This Week

June 14, 2004

For Immediate Release
Washington, DC

A new report out today from the John Kerry for President campaign shows that American families continue to struggle in the economy as more and more are finding it harder to make ends meet with household costs rising, income shrinking and debt reaching record levels.

Included in the report is a state-by-state look at how families are struggling to keep up with mounting debt. Lower wages and rising costs together have driven up debt and family bankruptcy to record levels. In Ohio, for example, 88,345 families filed for bankruptcy in 2003, a 68 percent increase from 2000.

While the Bush administration continues to suggest that our economy is good enough, discussions around the kitchen table tell a very different story. Incomes are down while costs for health care, college, energy and child care are up. Unable to meet their financial obligations, middle class families are facing bankruptcy in record numbers.

John Kerry knows we can do better and will raise America's sights with a comprehensive plan to build a stronger economy. His plan will not only create new high-wage jobs here at home, it will provide relief for working families by making college affordable for all Americans, lowering health care and energy costs and helping families save.

"The middle class is the engine that drives America's economy, and for decades, it has been powered by families working hard, investing in the future and doing the right thing," said John Kerry. "When these families do well, our country does well. When they have the chance to save and get ahead, our country and our economy grow stronger. But today, America's middle class is struggling."

Despite a lot of hopeful rhetoric about the economy from the President, the American people are too optimistic to be satisfied with the Bush economic record.

The economy has failed to create the new jobs that Bush said his stimulus package would create, and the jobs that have come back pay lower wages, offer lower quality health insurance and provide fewer benefits. Meanwhile, costs for families have skyrocketed. Health care costs are up by nearly one-half, college tuition has increased by more than one-third and families are spending hundreds more on gas and energy.

These factors have made it increasingly difficult for middle-class families to meet their financial obligations. Family debt is at record levels, and a record number of families are falling into bankruptcy nationally - 1,625,208 households in 2003.

"Our economy should lift up middle-class families, not push them closer to the edge," Kerry said. "We can do better, and together we'll help families by creating high-quality, better paying jobs, cutting taxes and making health care and education more affordable."

Throughout the week, Kerry will talk about how we can build a stronger economy for America's families with policies designed to strengthen and expand the middle class. Democrats across the country will join him by hitting the airwaves and speaking in their local communities about the need for a President who has a plan to help middle-class families by strengthening the economy.

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