via reason:
As election season approaches, Democrats are touting the economic results of Biden administration policies aimed at improving the lives of working Americans and creating a more equitable economy. But ordinary Americans aren’t feeling the so-called success of “Bidenomics.”
Superficially, the economy looks solid. As measured by real gross domestic product (GDP), it increased at an annual rate of 2.1 percent in the second quarter of 2023. While August’s unemployment rate rose to 3.8 percent, that’s still considered full employment by economists. Wages are rising, and we are often told that we’re in a manufacturing boom.
But these numbers need perspective. Because we lost millions of jobs during the pandemic, employment growth was inevitable. Many of the jobs lost were going to come back as the economy reopened. Unemployment is low, but only because the economy is drunk on spending that is simultaneously closing many people out of the labor force. What’s more, inflation-adjusted median household income has declined—from $76,330 in 2021 to $74,580 in 2022. Labor tensions and strikes are also intensifying.
With all this in mind, is the average American becoming better off?
These troubles are caused in part by inflation, which continues to take its toll. Per the Consumer Price Index (CPI), year-over-year inflation rose to 3.7 percent in August, nudging back up after peaking at 9.1 percent not long ago. “Core” CPI (excluding food and energy) is down slightly to 4.3 percent. Although these numbers are an improvement after we experienced their highest levels since 1982, they remain disturbingly high.
This is bad news for Americans who have seen their standard of living fall since early 2021. The Bureau of Labor Statistics (BLS) reported real average hourly earnings declining in 2021 and 2022, meaning Americans can afford less with their hard-earned dollars. More than three-quarters of people’s income is devoted to living expenses like housing, transportation, and food—all of which have become more expensive. Food prices, for instance, rose by 19.3 percent. Shelter rose by 16.5 percent since 2021. Gasoline prices are up too.
Nearly 70% of Americans can’t afford to pay basic grocery bills.
This is not hyperbole — moms and dads are struggling to put food on their kids’ plates. Do you have any idea how demoralizing that must be for them, @POTUS?t.co/VjoSD0ZgaE
— Dan Crenshaw (@DanCrenshawTX) December 12, 2022
Also: Why Team Biden might be purposefully grinding down the middle class.
h/t Glenn