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Whose America? ExxonMobil and Consumer Savings |
In 2004, a certain vice presidential candidate coined the term “Two Americas” to describe the surreality of the U.S. economy in recent years. On the surface, many indicators seem to point to growth, but look deeper, and working people are struggling to pay for health care, save money to send their kids to college and even just pay the monthly bills.
Two items released yesterday chillingly highlight this growing divide. First, ExxonMobil reported the largest annual profit of any U.S. company ever: $39.5 billion. That’s $75,000 a minute.
The other data showed the personal savings rate for Americans is negative 1 percent—the lowest level since the Depression. The U.S. Commerce Department report means that not only did people spend all the money they earned, they also dipped into savings or increased borrowing to finance purchases. According to CNN:
The 2006 figure was lower than a negative 0.4 percent in 2005, and was the poorest showing since a negative 1.5 percent savings rate in 1933 during the Depression.
When President Bush ballyhoos the nation’s economic gains as he sits on a tractor in Peoria, Ill., or gladhands with corporate chiefs on Wall Street, he’s talking about the ExxonMobil America.
The America where in 2005, CEO Lee Raymond received a total salary and benefit package of nearly $50 million while his employee pension plans has one of the biggest funding deficits of all U.S. corporations, according to BusinessWeek. ExxonMobil’s pension for its U.S. workers is underfunded by $1.2 billion.
Something to keep in mind when Bush next goes on the road.
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