FOR IMMEDIATE RELEASE Posted by Clinton/Gore Email October 27, 1992 GEORGE BUSH GETS AN "F" ON THE ECONOMY [Statement of George Stephanopoulos, Communications Director] Today is George Bush's final grade on the economy and he is still failing. The U.S. economy continues to suffer from the slowest recovery in the post World War II era. George Bush continues to have the worst growth rate of any President since Herbert Hoover. We're glad to see the GDP, the measure of domestic production, improved in the last quarter. But the sight of George Bush patting himself on the back once again reflects how out of touch he is with the American people and the American economy. Today's GDP growth was not good news for those families who have been forced to dip into their savings. Of the $64 billion in increased annualized spending which accounted for much of the GDP growth, half of it came from Americans dipping into their savings to buy back-to-school clothes and medical care. Today's news from the Department of Labor is that Americans are still working harder for less. Wages and salaries grew by just 2.7% in the year ending September 30, 1992 -- the lowest increase since the Labor Department began tracking these numbers in 1982. Today we also saw consumer confidence drop significantly from an index level of 57.3 to 53.0. This number reflects the lack of job growth and a poor assessment of government economic policies. According to Richard B. Hoey, chief economist at Dreyfus Corp, "The basic reality is that people are afraid for their jobs and not yet optimistic for their housing values, and that's a bad combination for confidence." Analysts have already questioned the strength of the GDP number. According to Anthony Karydakis, senior financial economist at First Chicago Capital Markets, Inc., this quarter's GDP is based on a "fairly optimistic assumption for [the] September trade deficit." Matthew Alexy, fixed income strategist at First Boston Corp., stated, "The increase we saw [in exports] was a lot more than the monthly numbers indicate." [Dow Jones, 10/27/92] So what does Bush have to brag about? While his handlers crow about the "sixth straight quarter of expansion," the average rate of growth over those six quarters was 1.8%. Compare that with the 5.8% growth experienced in average post-war economic recoveries -- it's less than one-third. There has even been negative economic growth per person. Again, this is the first time this has happened since Herbert Hoover. If the United States economy had experienced an average recovery period, 2 million more Americans would be employed and the average person would have $1400 more in their pocket. As Robert Dederick of Northern Trust Co. in Chicago said, "The economy is in protracted stagnation and has been across the entire Bush term...This stagnation ... is a festering sore that won't go away. That's what bothers people." [AP, 10/27/92.] George Bush has made it the hallmark of his campaign to tell the American people, "you could do worse." Bill Clinton and Al Gore believe "we can and will do better," and they have a plan to make it happen. It's time for a change. --30--