Throughout this continually increasing inflation that we are experiencing, the actual real wages of the American people have dropped by roughly 3% as a result.
“Inflation ran 8.5% in the year ending last month, while nominal wages grew only 5.6%, a decline in inflation-adjusted wages of 2.7%,” stated Jason Furman with Harvard University, one of the top economists for former president Barack Obama, stated in an article for the Wall Street Journal.
“This presents a serious challenge to the ‘hot economy’ thesis that tighter labor markets lead to rising real wages. This idea has never been as popular among academic economists as it is among Washington policy makers. A hot economy is surely better than a cold one, but the costs of an overheating economy might be larger than policy makers have appreciated,” he said.
Earlier this past week, officials with the Labor Department issued a statement that announced the consumer price index (CPI), which is a metric that measures what the American People pay for mundane everyday items such as gas and food, spiked to the highest point it has been in the past four decades. The CPI jumped around 8.5% from just a single year ago, as stated in new data put out on Tuesday. Even if you remove both food and energy, the CPI still went up a solid 6.5%.
These climbing inflation rates have not been since back in the 1970s, when the president was Jimmy Carter, and in the early 80s when Ronal Reagan took office.
“Price increases came from many of the usual culprits,” stated CNBC in a report. “Food rose 1% for the month and 8.8% over the year. Energy prices were up 11% and 32%, respectively,” while “Shelter cost, which make up about one-third of the CPI weighting, increased another 0.5% on the month, making the 12-month gain a blistering 5%.”
Recently, the White House has been taking multiple strides to try and put some distance between the president and soaring inflation, most recently taking to calling it by a different name, “Putin’s price hike.” For example, on Biden’s officially released schedule, the White House stated he would give a speech about the efforts of the administration to “reduce the impact of Putin’s Price Hike.”
When looking at recent records, here is how much the inflation rate has moved up each month since Biden took over the POTUS office, gathered using the Consumer Price Index data put out by the U.S. Department of Labor Bureau of Labor Statistics:
- January 2021 — 1.4%
- February — 1.7%
- March — 2.6%
- April — 4.2%
- May — 5.0%
- June — 5.4%
- July — 5.4%
- August — 5.3%
- September — 5.4%
- October — 6.2%
- November — 6.8%
- December — 7.0%
- January 2022 — 7.5%
- February — 7.9%
- March — 8.5%