The Biden administration’s policies have had a positive impact on US households, according to top White House economist Lael Brainard. A recent report released by Joint Economic Committee (JEC) Democrats shows that wages and salaries have been rising faster than inflation since January 2021. The report, which used data from the Bureau of Economic Analysis and Bureau of Labor Statistics, reveals that average wages and salaries have increased by nearly $16,700 between January 2021 and April 2024. This means that wage growth has outpaced inflation by almost $3,800 over the past three years.
The report states that wage growth has outpaced price growth in almost every state through the end of 2023. It also highlights that the income gains can be attributed to the massive employment recovery and strong wage growth since President Biden took office. This trend has led to a narrowing of income inequality for the first time in decades, as low- and middle-income Americans have experienced notable wage increases.
Chairman of the JEC Martin Heinrich emphasizes the positive impact of these policies, stating that Democrats are putting money back into the pockets of families across the country. He attributes the stable economy, falling grocery prices, and increasing wages to the policies enacted by Democrats that lower costs and boost wages while ensuring the economy works for everyone.
However, while Democrats celebrate these achievements, they acknowledge that there is still work to be done in reducing prescription drug costs and making investments in supply chains.
To further lower the cost of living, President Biden has directed his administration to clamp down on hidden junk fees and called on corporations to pass savings onto consumers. National Economic Advisor Lael Brainard highlights the importance of these savings for hardworking families, stating that the goal is to provide more breathing room.
In recent months, the White House has criticized corporations for price-gouging and engaging in shrinkflation. In response, President Biden formed a joint strike force between the Federal Trade Commission and the Department of Justice to fight unfair or illegal pricing of goods and services.
When questioned about inflation and wage increases failing to keep up, President Biden disagreed, stating that wage increases have exceeded the cost of inflation. He argues that pre-COVID prices are not the same as the price gouging happening now due to shrinkflation and other tactics used by corporations to increase profits.
While the Consumer Price Index has risen 19.3 percent since January 2021, average weekly earnings have increased by 14.7 percent, average hourly wages have risen by 16.6 percent, and personal incomes have climbed by roughly 9.5 percent. However, when adjusted for inflation, the numbers paint a different picture. Real personal income is down 5.5 percent, real personal disposable income has declined 6.5 percent, real hourly compensation has slumped 4.4 percent, and real median weekly earnings have dipped 2 percent.
As the November election approaches, the current administration is working to address voter concerns about the economy. Polls and indexes have consistently shown Americans’ dissatisfaction with “Bidenomics” throughout President Biden’s first term. However, recent polls indicate that more people believe the economy is doing better, with a record 32 percent saying it is in excellent or good shape. Additionally, a record 41 percent approve of the president’s handling of the economy, and 37 percent approve of his handling of inflation.
While these poll numbers are encouraging for the Biden campaign, a new survey shows that the presumptive Republican presidential nominee has an advantage in battleground states. This suggests that there is still work to be done to win over voters in key areas.
Overall, the data and statements from experts suggest that President Biden’s policies have had a positive impact on US households, with wages and salaries outpacing inflation and income inequality narrowing. However, there are still challenges to address, such as reducing prescription drug costs and making investments in supply chains. The administration’s focus on lowering the cost of living and combating price-gouging is aimed at providing more breathing room for hardworking families. As the November election approaches, the Biden campaign is working to address voter concerns about the economy and garner support.
