Richard Gephardt: “I rise today to call my colleagues' attention to an important finding in last week's issue of Business Week. I am…”

“I rise today to call my colleagues' attention to an important finding in last week's issue of Business Week. I am speaking of an economic reality which may be new to the business press in the United States--but has been plaguing millions of hard-working middle-class families for more than 16 years. The simple fact is corporate profits are surging, but the working people who stand behind those profits are seeing their incomes fall. That is why Business Week concluded in an editorial, and I quote, The middle class has shouldered much of the pain * * * that has made Corporate America so productive and competitive in global markets. Now is the time for the middle class to share in the fruits of higher productivity. When you look at the facts, it is clear that we are in the midst of a powerful business boom. Business Week reports that, despite the Federal Reserve's efforts to halt our economy, corporate profits among 900 leading companies grew by an astonishing 71 percent in the fourth quarter of 1994. Profits grew by a whopping 41 percent for all of 1994, the biggest increase since Business Week began keeping these statistics back in 1973. But while business has never been better, for middle-income families, the economic crunch continues. Business Week reports that American household wealth has actually fallen by about half of 1 percent--only the eighth time it has dropped in 30 years.”