Skyrocketing inflation under President Biden has effectively deprived the average full-time American worker of more than a month of annual income.
SO WHAT
President Biden’s happy talk about the economy isn’t fooling anyone who depends on their monthly paycheck to get by.
THE NUMBERS
Inflation reduced the purchasing power of the average full-time U.S. worker’s income over the previous 12 months by nearly $6,000 compared to a year earlier, according to data from the U.S. Bureau of Labor Statistics.
Meanwhile, wages went up by less than half as much, to an annual average of $57,261.
- In May, two-thirds of workers said inflation had more than canceled out any wage increases they had received over the previous year, according to a CNBC-Momentive Workforce Survey.
- Just 13% said their pay raises were more than enough to keep up with inflation.
- Middle-class workers, defined as those earning $50,000 to $150,000 a year, were the most likely to report inflation had outstripped their wages.
WHAT THEY’RE SAYING
President Biden and senior White House aides have repeatedly downplayed the acceleration of inflation to a rate Americans haven’t seen in 40 years.
- “The inflation rate month-to-month was up just an inch [in August], hardly at all,” Biden said during an interview with CBS’ “60 Minutes” that aired Sunday, before touting the low unemployment rate.
OK, BUT: 56% of Americans said they were suffering economic hardship because of inflation last month, up from 49% in January, according to Gallup.
- New Democratic initiatives, including student loan forgiveness, are likely to drive future inflation, according to liberal economists.
- Meanwhile, Federal Reserve is hiking interest rates to bring down prices, pushing the U.S. economy toward a recession.