September 2, 1992 JOBS IN THE CLINTON DECADE: LOW WAGE, LOW-TECH, LOW GROWTH ARKANSAS HAS DONE CONSISTENTLY WORSE DURING THE CLINTON DECADE -- THE 1980'S -- THAN BEFORE CLINTON TOOK OFFICE, AS WELL AS CONSISTENTLY WORSE THAN THE COUNTRY AS A WHOLE. SIMILARLY, CLINTON'S CLAIM THAT HE WILL CREATE JOBS IN THE FUTURE IS DEMONSTRABLY FALSE. o Bill Clinton's low-growth, low-tech economy: Job growth in Arkansas has slowed dramatically since Bill Clinton became governor in 1983. In the 1970s, employment in Arkansas increased 22.8 percent. During the Clinton Decade -- the 1980s -- total employment increased just 13.4 percent, trailing the national increase of 17.5 percent, (Census Bureau, Regional Economic Measurement Division). -- During the Clinton Decade, manufacturing employment in Arkansas was cut in half; manufacturing employment grew by just 1.1 percent during the 1980's and by 2.2 percent during the 1970s, (University of Arkansas at Little Rock, Regional Economic Analysis). o Wages and Income in the Clinton Decade: During the Clinton Decade, Arkansas' personal income growth rate was 11 percent lower than the national average and 48 percent lower than its growth in the 1970s, (1991 State and Metropolitan Data Book). During the Clinton Decade, Arkansas' disposable personal income growth rate was 14 percent lower than the national average and 61 percent lower than its growth rate in the 1970s, (1991 State and Metropolitan Data Book). -- Wages in Arkansas, like income, remained flat under Clinton. In 1980, average hourly earnings in Arkansas manufacturing were only 78.5 percent of the national average. Ten years later, after eight years of Clinton, manufacturing wages were unchanged. -- In 1989, Arkansas' average hourly earnings for production workers in manufacturing ranked next to last in the nation -- and down from a 47th place ranking in 1980, i.e. before Clinton, (1991 Statistical Abstract of the United States). o Falling Behind -- Arkansas Incomes in the National Context: Clinton likes to claim that "incomes have fallen behind," but this is actually most applicable to his own record in Arkansas. In 1988 annual pay for Arkansas' non-agricultural jobs ranked 47th in the nation -- $17,023 compared to the national average of $21,872 (1991 State and Metropolitan Data Book). Also, in 1991 Arkansas ranked next to last in terms of average hourly earnings for production workers in manufacturing, (Statistical Abstract of the United States, 1991). -- In contrast to the Clinton Decade, incomes under Presidents Reagan and Bush have increased significantly. Real per capita disposable personal income in the U.S. has increased 15 percent since 1982, and has continued to increase from the fourth quarter of 1988 to the present. Income per person adjusted for inflation and taxes is higher now than it was four years ago, (Economic Indicators, July 1992) -- Clinton's "play-or-pay" health care plan will impose on workers nationwide the same slow wage growth that distinguished the Clinton Decade in Arkansas. The 7-9 percent payroll tax that Clinton's "play-or-pay" health plan requires would cut the annual wages of the average worker by almost $1,700, (Office of Management and Budget). o A job in Arkansas is hazardous to your health: Under Clinton, Arkansas' workplaces have remained among the most unsafe in the nation. The Corporation for Enterprise Development ranks Arkansas 46th in job quality. The National Safe Workplace Institute ranks Arkansas dead last in worker safety programs and workmen's compensation policies. -- In 1990, the Southern Labor Institute ranked Arkansas 49th out of 50 states and the District of Columbia in overall worker climate, 48th in earnings and income, 47th in workplace conditions, and 45th in quality of life. o Clinton Will Do To America What He's Done To Arkansas: Clinton's economic plan will lose jobs, not create them. No one except Bill Clinton believes that the way to create jobs is to start out with a massive tax increase. The centerpiece of Clinton's economic plan is the largest tax increase in American history -- $150 billion over four years (not including $80 billion in new payroll taxes): -- Though Clinton says he will only tax the wealthy; the truth is, he will tax everyone who has a job. Clinton's payroll taxes for government-run health care and mandatory worker training programs, in addition to new taxes on business, will cost 1.3 million jobs. -- Clinton's massive tax hikes, including higher income tax rates and new payroll taxes, will hit 800,000 small businesses, the backbone of America's job creation machine. Clinton will radically increase auto efficiency standards and slash defense spending by $58.5 billion, putting another 1.3 million Americans out of work. o Clinton's claim that his defense conversion plan will create new jobs is misleading: any jobs that might be created by defense conversion would merely replace defense jobs already lost. And, while Clinton's additional defense cuts will put one million Americans out of work almost immediately, creation of replacement jobs will take time. Meanwhile, Clinton will have to make up for lost income tax revenue while financing government-sponsored retraining. o The Congressional Budget Office has forecasted that, maintaining present policies, 9 million new jobs will be created from 1992 to 1996 -- one million more jobs than Clinton claims his own proposal will create. # # #