Real wages fell for the 17th month in a row as the Biden administration continues to ramp up spending amid historic inflation.
Average real hourly earnings fell 2.8% year-on-year in August, with wages rising last in March 2021, according to a Bureau of Labor Statistics (BLS) report beside archived data. Although hourly earnings rose 0.2% from July to August, weekly earnings fell 0.1% as average hours worked per week fell 0.3% from July.
Since President Joe Biden took office, real wages have fallen 5.5%, or about $3,000 per year for the typical American, according to to the economist of the Heritage Foundation EJ Antoni. Through August, the US government has borrowed nearly $950 billion, at a rate of nearly $3 billion a day, according to to the Committee for a Responsible Federal Budget. (RELATED: Food Prices Hit 40-Year High, Still Breaking Records Every Month)
“After blaming every which way for the inflationary storm they created, the Biden administration now wants to take credit for an inflation rate that remains nearly six times higher than when Biden took office,” Antoni said in a statement shared with the Daily Caller. News Foundation. “The reality is that American families continue to lose ground because of his policies.”
Real wages have fallen EVERY MONTH since Biden’s $1.9 trillion “stimulus” passed.
— Jacki Kotkiewicz (@jackikotkiewicz) September 13, 2022
Meanwhile, poverty rates for 2021, Biden’s first year in office, rose to 11.6% from 11.4% the previous year, though not enough to be statistically significant. according to to the US Census Bureau. Poverty rates fell for five years in a row before jumping to 11.4% in 2020, according to to the US Census Bureau.
Actual median household income in 2021 stagnated, falling slightly to $70,784, compared with $71,186 in 2020, the Census Bureau reported.
The cost of several major raw materials also rose, helping keep inflation high and beating economists’ predictions that year-on-year inflation would fall to around 8.1% in August. The cost of groceries, for example, has broken 40-year records for price increases every month since February.
Meanwhile, even though energy prices had fallen since July, they remained extremely high year-on-year in August, according to to the BLS. Gasoline remained elevated 25.6% more year-over-year, while fuel oil was up 68.8% year-over-year, electricity was up 15.8% year-over-year, and gas utilities were up 15.8% year-over-year. 33% year over year.
High prices, particularly for food, utilities and housing, are expected to remain at least through the end of the year as the Federal Reserve fights inflation through a series of interest rate hikes. The Fed characterized the economy as “generally weak” just one day before Treasury Secretary Janet Yellen praised the Biden administration’s economic efforts for leading to economic recovery, going so far as to argue that the US economy was weak. The US was operating successfully by “any traditional measure.”
“While the Fed is expected to start doing its job by slowing money creation and allowing interest rates to rise, it is working at cross purposes with Congress and the President, who continue their wasteful spending and lending.” according to Anthony. “To prevent a deepening recession, our government and monetary leaders must stop reckless spending, borrowing and printing money, while also adopting policies that will unleash American energy production.”
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