Biden’s “Rising Wages” Talking Points Meet Reality: Inflation

By Casey Harper, The Center Square

President Joe Biden touted Americans’ rising wages over the weekend, but a closer look shows there is more to the story.

“More Americans have health insurance than ever in history,” Biden posted on Twitter. “Fewer families are facing foreclosure today than before the pandemic. And wages are climbing faster than prices.”

While wages have increased during Biden’s presidency, soaring inflation has eroded and often surpassed any gains for workers since Biden took office.

RELATED: Gas Prices to Remain High in 2023, Projected to Peak at $4.12 per Gallon in June

“Only a few months of Biden’s presidency have [we] seen wages and earnings rise faster than prices,” E.J. Antoni, an economist at Heritage Foundation. “Over the last two years, the American people have become demonstrably worse off with the average family losing $6,000 in purchasing power because prices have risen so much faster than wages.”

Antoni said that Biden misrepresents these data.

“[Biden] also said ‘wages are higher now than they were seven months ago adjusted for inflation’ – but real wages are LOWER than they were 8, 9, 10, … months ago, and lower than when Biden took office (conveniently omitted),” Antoni added that Biden was also mentioned by Antoni “also omits real [average] weekly earnings, which have declined even further than real [average] hourly earnings, because businesses have been reducing hours, cutting full-time jobs [and] replacing with part-time.”

In recent weeks, federal employees were confronted with this reality for the first time.

In December, Biden issued an executive directive giving federal employees a 4.6% increase in pay, 4.1% raise and 0.5% cost-of-living adjustment.

This raise is significantly higher than the 2.7% increase that was made the same time last years, but it has not helped workers keep up with rising prices.

The increase of 4.6% is much less than that seen in consumer prices.

RELATED: If Budget Deficits Caused Inflation, There Would Be No Budget Deficits

The U.S. Bureau of Labor Statistics released inflation data this month, showing that the overall consumer price index rose 6.5% during the 12 previous months.

This isn’t the first time Biden has given an especially rosy outlook on the economy. Biden tweeted that food prices were declining, but they have risen significantly since his election.

“For the sixth month in a row, yearly inflation is down,” Biden posted on Twitter earlier in the month. “It might be rising in economies around the world, but it’s coming down here. And gas prices, food, and more are following.”

However, food prices rose in December just like they have over the past 12 months.

BLS data shows that “food at home” index increased 0.2% in December and 11.8% last year. Food taken away from home increased 0.4% in December, and 8.3% in last year.

“The index for cereals and bakery products rose 16.1 percent over the year. The remaining major grocery store food groups posted increases ranging from 7.7 percent (meats, poultry, fish, and eggs) to 15.3 percent (dairy and related products),” According to the BLS.

As The Center Square reported, here are some seasonally adjusted price changes for urban consumers for the major food categories in December as well as the annual numbers, according to BLS’ data:

• Prices of cereals and bakery products saw no changes in December, but increased 16.1% in the previous year.
• December saw a 1% increase in meat, poultry, fish and eggs, while the previous year saw a 7.7% increase.
• The December price of dairy and related products fell 0.3%, but increased 15.3% over the previous year.
• However, the December price drop in fruits and vegetables was 0.6%. The last year saw a 8.4% increase in prices.
• Prices of nonalcoholic beverages and beverages materials rose 0.1% in Dec and 12.4% in the past year.
• BLS’ “other food at home” The category experienced a 0.4% rise in December and a 13.9% rise in the past year.

Syndicated with permission of The Center Square