Biden Says People Are Getting Raises—But New Data Show Wages Are Actually Going Down

President Biden claimed again this week that thanks to his leadership, Americans’ paychecks are going up. Yet new data show that once you account for inflation, workers’ nominal wage increases aren’t just canceled out—their real wages have actually gone down.

The Bureau of Labor Statistics (BLS) just released data comparing wages in the 4th quarter of 2020 to the 4th quarter of 2021. Over this one-year period, BLS reports that the median worker’s weekly earnings increased by 2.6 percent. That’s good news, right?

Not so fast. Because consumer prices rose 6.7 percent over the same time period, Americans’ purchasing power declined. As conservative economist Stephen Moore explained, this “means real earnings dropped 4.1%.” 

After all, what ultimately matters is not the number of your paycheck, but what your paycheck can buy you. If you’re getting a raise but everything’s even more expensive, you’re not actually any better off.

Moore illustrated this effect with a simple chart:

“Biden promised no tax hikes for anyone making less than $400,000 a year – but inflation, the cruelest tax of all, is making a mockery of that promise,” Moore concluded in his analysis for the Committee to Unleash Prosperity.

It’s only natural for a politician like Joe Biden to try to spin the disappointing results of his failed economic agenda into a positive tale about wages going up. But don’t fall for it.

When you look at the fuller picture, things aren’t heading in the right direction for working Americans. For that, the Biden administration only has itself (and the Federal Reserve!) to blame.

WATCH: Brad Debunks the WORST Inflation TikToks

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Brad Polumbo
Brad Polumbo
Brad Polumbo is a libertarian-conservative journalist and co-founder of Based Politics. His work has been cited by top lawmakers such as Senator Rand Paul, Senator Ted Cruz, Senator Pat Toomey, Congresswoman Nancy Mace, Congressman Thomas Massie, and former UN Ambassador Nikki Haley, as well as by prominent media personalities such as Jordan Peterson, Sean Hannity, Dave Rubin, Ben Shapiro, and Mark Levin. Brad has also testified before the US Senate, appeared on Fox News and Fox Business, and written for publications such as USA Today, National Review, Newsweek, and the Daily Beast. He hosts the Breaking Boundaries podcast and has a bachelor’s degree in economics from the University of Massachusetts Amherst.

6 COMMENTS

    • Biden apparently had the same Economics curriculum that Paul Krugman, Bernie Sanders, AOC and Barack Obama did. If those people understood how government impositions affect the ability of people to afford the basic items in a shopping cart they wouldn’t be such hsrd-core leftists.

  1. I’m at the point of retirement. I looked forward to a comfortable life. Now in one year my food bills alone are up 35% not 7%. Gas is up 100%. I don’t care that refrigerators are up 20% as I buy one every 15 years. There Inflation measurements are a joke. Homes are up over 100% which means the future pay must go up 100%.

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