Press Release

Millions of Americans Living Hand to Mouth

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Millions of Americans Living Hand to Mouth
Middle-Class Jobs Replaced by Low-Wage Jobs 

(Washington, D.C.) - About 38 million American families are now living from paycheck to paycheck, spending all of their cash to support current consumption, according to new research from the Brookings Institution. In a change from past experience, two-thirds of those living "hand to mouth" are middle class, according to the study. While subsistence wages were previously associated with those living in poverty, this research shows that those living hand to mouth now make up about one-third of all U.S. households. A separate report from the National Employment Law Project shows that about half of the jobs created in the U.S. since 2008 are low-wage jobs. By contrast, about 80 percent of the jobs lost during the recession were high-wage or medium-wage jobs. Essentially, the economy has replaced many middle-class jobs with low-wage jobs over the last 6 years. These findings come on the heels of a report that shows the American middle class no longer enjoys the highest after-tax income in the world.

Daniel Garza, Executive Director of The LIBRE Initiative, released the following statement:

"How much proof does Washington need that it is time for an agenda focused on job creation - not more government spending and regulation? 

It's clear that despite trillions in added debt, a massive federal 'stimulus' bill, and a health care law that we were promised would help small businesses, the economy is still not growing as it should. Excess debt and costly federal mandates and regulation are preventing entrepreneurs from creating jobs and growing economic opportunity. It is time for the President to get serious about restraining out-of-control spending and getting government out of the way of job creators. Allowing the private sector to grow is the best way to help put jobless Americans back to work, and to build better lives."

For interviews with a LIBRE representative, please contact: Brian Faughnan, 703-678-4581 or Steven Cruz, 202-578-6173.