THE REAGAN QUESTION: Are You Better Off Now Than You Were Eight Years Ago?
Bahia de Caraquez, Ecuador, 02 October 2008

In his closing remarks during the final presidential debate of 1980, Ronald Reagan famously asked the American people: "Are you better off now than you were four years ago?"

The table below updates Reagan's question by comparing the state of the economy in 2000 and 2008. 25 indicators of economic well-being and economic performance are compared to find that 23 of the 25 indicators are worse in 2008 than they were in 2000.

Economic Indicator 2000 2008

Unemployment rate: 4.0% 6.1%

Inflation rate: 3.3% 5.4%
Job Growth (preceding 8 years)

Total nonfarm employment: 21.4% 4.3%
Private sector employment: 23.6% 3.6%
Manufacturing employment: 2.9% -22.2%

Employment rate (% of population)
All, age 16 and older: 64.4% 62.6%
Men, age 16 and older: 71.9% 69.1%
Women, age 16 and older: 57.5% 56.5%

Real wage growth (preceding 8 yrs): 8.2% 1.8%

Minimum wage (July 2008$): $6.58 $6.55

Family income:
Median, 2007$: $61,083 $61,355
Growth (preceding 8 yrs): 14.7% 0.4%

Poverty:
Rate (% of population): 11.3% 12.5%
People in poverty (mio): 31.6 37.3

Uninsured (health insurance):
Rate (% of population): 14.0% 15.3%
People w/o insurance(mio): 38.7 45.7

Personal savings (% disposable income): 2.3% 0.6%
College tuition (average per year, 2007$):
Private four-year college: $19,337 $23,712
Public four-year college: $4,221 $6,185

Gasoline (gallon, 2008$): $2.03 $4.09

GDP growth (preceding 8 years):34.2% 19.6%

Productivity growth (preceding 8 years): 15.9% 21.9%

Trade balance (% of GDP): -3.9% -5.1%
Federal debt (% of GDP): 57.3% 65.5%
Net foreign debt (% of GDP): 13.6% 17.9%


This information was prepared by CEPR Center for Economic Policy Review, Washington-based think tank. The authors were John Schmitt and Hye Jin Rho. The full report can be accessed at www.cepr.net. I apologise that I was not able to create a tidy table for these figures. Haven't figured out how to do that yet on blogger.