(BrightPress.org) – President Joe Biden stated that wage increases have outpaced inflation during his presidency. This claim has sparked significant debate, as data and expert opinions offer mixed views on the matter.
Data from the Bureau of Labor Statistics (BLS) shows that while wage growth has indeed surpassed inflation in the past year, this has not been the case for most of Biden’s time in office. Cumulative inflation has driven prices up by nearly 20% since Biden took office, with wages failing to keep pace.
In January 2020, before the COVID-19 pandemic, the average hourly earnings of all employees stood at $10.98. This figure rose to $11.72 in April 2020, shortly after the pandemic began. When Biden assumed office in January 2021, the average was $11.40. However, wages saw a decline in the following years, dropping to $11.28 by June 2021 and continuing to fluctuate through 2022 and 2023. As of April 2024, preliminary data shows the average hourly earnings were $11.09. Notably, these numbers are seasonally adjusted.
When looking at the Consumer Price Index (CPI) for the same period, data shows a 3.4% change in April 2024 for all items, with food prices up by 2.2% and energy prices by 2.6%. These numbers are not seasonally adjusted.
Real hourly compensation has actually fallen by nearly 4% from Q1 2021 to Q1 2024.
A White House official defended Biden’s stance, pointing out that real wages are up compared to pre-pandemic levels, especially for low and middle-income workers. They cited data showing a 0.8% increase in real wages for all workers and a 2.8% rise for lower-income workers since before the pandemic.
The debate over Biden’s wage and inflation claims illustrates the complexity of economic indicators and the differing interpretations that can arise from the same data. While there is evidence to support both sides, the true picture of wage growth and inflation under Biden’s presidency remains a contentious issue.
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