Tuesday, July 20, 2004

"Them that's got"

Them that's got
Is them that gets
And I ain't got nothing yet.

Well, what do you know, two Americas seem to faring far differently in the current economy. The working poor and even middle class are not keeping pace.

Joshua Berry and Ricky Williams, both Houstonians, have seen two very different economic recoveries.

Mr. Berry, an entrepreneur, has profited handsomely from the stock market, in the real-estate boom and by selling a business. Mr. Williams, an airline baggage handler, has been waiting since 2001 for a pay raise.

With the U.S. economy expanding and the labor market improving, it isn't clear how well the Democrats' message of a divided America will resonate with voters this fall. But many economists believe the economic recovery has indeed taken two tracks, exemplified by the experiences of these two Texas residents.

Upper-income families, who pay the most in taxes and reaped the largest gains from the tax cuts President Bush championed, drove a surge of consumer spending a year ago that helped to rev up the recovery. Wealthier households also have been big beneficiaries of the stronger stock market, higher corporate profits, bigger dividend payments and the boom in housing.

Lower- and middle-income households have benefited from some of these trends, but not nearly as much. For them, paychecks and day-to-day living expenses have a much bigger effect. Many have been squeezed, with wages under pressure and with gasoline and food prices higher. The resulting two-tier recovery is showing up in vivid detail in the way Americans are spending money.

As was heard recently, outside a Bush rally: "Four more months! Four more months!"

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