What happened: President Joe Biden took to Twitter last weekend to tout rising wages for Americans under his presidency, claiming they outweigh inflation. But that’s quite misleading, as the simultaneous rise in the cost of goods often outweighs any possible salary increases for workers.
The reality: Consumers have actually taken a pay cut of more than 2 percent on average due to the rapidly rising cost of consumer goods. The consumer price index rose by 6.5 percent over the past 12 months, according to the U.S. Bureau of Labor and Statistics. And a report released last week states that Americans are “effectively $7,400 poorer.”
Why it matters: The slow rise in wages makes it increasingly difficult for Americans to keep up with rising prices for staple goods. Egg prices have risen by 49.1 percent since November, and gas prices are up 17 cents on average from last month. It’s clear Americans’ pocketbooks are still taking a hit under Biden.