Incomes Rising Faster Than Inflation Across US: Joint Economic Committee Democrats

President Joe Biden speaks during an event at the South Court Auditorium in the Eisenhower Executive Office Building in Washington on Oct. 23, 2023. (Anna Moneymaker/Getty Images)

Wages and salaries have been rising faster than inflation throughout the country since January 2021, according to a new report released on June 20 by Joint Economic Committee (JEC) Democrats.

The JEC is a congressional advisory panel consisting of a mix of 20 Democrats and Republicans from the House and Senate.

Using Bureau of Economic Analysis and Bureau of Labor Statistics data, JEC Democrats reported that average wages and salaries have climbed by nearly $16,700 between January 2021 and April 2024.

This means that wage and salary growth has outpaced inflation by nearly $3,800 over the past three years, they said.

“New calculations show that wage growth outpaced price growth in nearly every state through the end of 2023,” the report states. “It is clear that while costs have risen due to pandemic disruptions and global conflicts, incomes have grown faster.”

The reported income gains have been fueled by “the massive employment recovery” and “strong wage growth” since President Joe Biden took office, according to the report. This trend has contributed to the narrowing of income inequality “for the first time in decades” because low- and middle-income Americans have experienced “notable wage increases.”

“The numbers do not lie: Democrats are putting money back into the pockets of families across the country,” JEC Chairman Martin Heinrich said in a statement. “The economy is stable, grocery prices are falling, and wages are increasing. That’s not happening because of luck. It’s because we are enacting policies that lower costs and boost wages while ensuring our economy works for everyone.“

Although Democrat lawmakers are celebrating the data, they say that they’re still working on reducing prescription drug costs and making investments in supply chains.

‘Breathing Room’

Administration officials say the president will continue to lower the cost of living by clamping down on hidden junk fees and calling on corporations to pass on savings to consumers.

According to National Economic Adviser Lael Brainard, President Biden has directed his administration to employ every available tool to reduce household costs and put “thousands of dollars back in many families’ pockets,” whether home heating, insulin, or credit card fees.

“Think about what these savings mean to millions of hardworking families across the country,” Ms. Brainard said in prepared remarks to the Urban Institute on June 20. “That’s what this work is ultimately about: more breathing room for hardworking families.”

In recent months, the White House has routinely lambasted corporations for engaging in what they say is price-gouging and shrinkflation—the act of reducing product size without cutting prices.

President Biden announced the formation of a joint Federal Trade Commission and Department of Justice “strike force” in March. The entity’s purpose is to fight what officials say is unfair or illegal pricing of goods and services.

Director of the National Economic Council Lael Brainard speaks during the daily news briefing at the White House on June 27, 2023. (Madalina Vasiliu/The Epoch Times)

During a June 4 interview with Time magazine, the president was asked about the near 20 percent cumulative inflation and wage increases failing to keep up.

The president disagreed.

“Wage increases have exceeded ... the cost of inflation, which you’re talking about as the prices that were pre-COVID prices,” President Biden said.

“You have ... corporate America ripping off the public now.

“You have everything from shrinkflation to what’s going on in terms of the way in which they’re artificially moving significantly to increase their ... profits. That’s not the same as inflation. That’s price gouging.”

Since January 2021, the Consumer Price Index has rocketed by 19.3 percent. In the same three-year span, average weekly earnings have risen by 14.7 percent, average hourly wages have advanced by 16.6 percent, and personal incomes have climbed by roughly 9.5 percent.

However, after adjusting for inflation, the numbers provide a different snapshot of households’ financial situations.

Real personal income is down by 5.5 percent, real personal disposable income has declined by 6.5 percent, real hourly compensation has slumped by 4.4 percent, and real median weekly earnings have dipped by 2 percent.

A ‘Bidenomics’ Push Into November

Heading into the November election, the current administration has been attempting to alleviate voter concerns about the economy.

Throughout much of the incumbent’s first term, polls and monthly indexes have routinely highlighted Americans’ dissatisfaction with “Bidenomics,” a term used by the White House to describe President Biden’s economic agenda.

Gallup’s Economic Confidence Index declined for the second consecutive month in May, “reflecting further deterioration in how Americans assess the economy’s current state as well as its trajectory,” the polling firm noted.

The index has been firmly in negative territory since July 2021.

But the Biden campaign recently received encouraging news on the polling front.

According to a Fox News survey of 1,095 registered voters, more people think the economy is doing better, with a record 32 percent saying it is in excellent or good shape.

In addition, the news network’s poll found that a record 41 percent approve of the president’s handling of the economy, and 37 percent approve of President Biden’s handling of inflation.

In a head-to-head matchup, the president leads former President Donald Trump by two points—a three-point change from the last Fox News poll, conducted in May.

Still, a new Emerson College Polling/The Hill survey showed the presumptive Republican presidential nominee with a one- to eight-point advantage in two- and five-way races in battleground states.