Bidenomics reduced average weekly pay by 5%, equivalent to one and a half paychecks annually for the average worker
Why Bidenomics is Failing: The Real Impact on American Workers
We, at the Washington Examiner, have extensively analyzed the reasons why Bidenomics has been a complete disaster for the American people. The evidence is clear: prices have skyrocketed by 18% since President Joe Biden took office, while wages have fallen 2% below what was expected based on pre-pandemic trends. However, sometimes the simplest illustration is the most powerful.
To truly grasp why Biden’s approval rating has plummeted to a dismal 33%, as reported by ABC News/Ipsos, we need to look at the significant decline in real wages. Let’s examine the numbers.
The Harsh Reality of Declining Wages
When Biden assumed office in January 2021, the average weekly earnings, adjusted to the 1982 dollar value used by the Bureau of Labor Statistics, stood at $399.88. Fast forward to December 2023, and the real average weekly earnings had dropped to $380.59. This represents a staggering real decline of nearly 5%.
For hardworking individuals who receive bi-weekly paychecks, this 5% loss in real earnings is equivalent to losing approximately one and a half paychecks out of the 26 they receive each year. It’s as if Bidenomics is stealthily stealing their hard-earned money.
The Dire Outlook for Wage Growth
Some may argue that there is hope on the horizon, as annual wage growth showed signs of improvement towards the end of last year when inflation slowed down. However, reversing this 5% decline in wage growth is no easy feat. It requires sustained economic and productivity growth, along with a continued slowdown in inflation. Unfortunately, both of these metrics seem to be moving in the wrong direction.
Economic growth is projected to drop from a robust 5% rate in the third quarter of last year to a meager 2% in the fourth quarter. Furthermore, inflation has been steadily rising, with the annualized rate increasing at the end of last month. In fact, month-to-month, inflation has shown no signs of abating.
The Cost of Premature Actions
Some skeptics have suggested that the Federal Reserve should lower interest rates to stimulate the economy and boost Biden’s chances of reelection. However, considering the 5% pay cut that inflation has already inflicted on the average American, Biden simply cannot afford for the Fed to take such action prematurely.
It is clear that Bidenomics has failed to deliver on its promises, leaving American workers struggling with declining wages and a bleak economic outlook. The time for real solutions is now.
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Bureau of Labor Statistics, stood at $389.68. However, as of October 2021, that number has dropped to $380.32. This means that American workers are earning less in real terms, making it harder for them to make ends meet and achieve financial stability.
This decline in wages is even more concerning when we consider the rising cost of living. Inflation has been raging under the Biden administration, reaching its highest level in over a decade. Prices for everyday goods and services have surged, leaving the average American struggling to keep up.
For example, the price of gasoline has significantly increased. In January 2021, the average price per gallon was $2.29. Fast forward to October 2021, and it has soared to $3.41. This represents an alarming 49% increase in just a few months. Higher gas prices mean higher transportation costs, leading to a ripple effect throughout the economy, as businesses pass on these expenses to consumers.
Furthermore, the housing market has also witnessed a dramatic surge in prices. The median existing-home price in January 2021 was $303,900. However, by September 2021, it had skyrocketed to $345,000. This surge in housing costs has made it increasingly difficult for Americans to afford their own homes, exacerbating the issue of affordability.
While the average American worker is facing declining wages and rising prices, the Biden administration seems to be more focused on policies that cater to special interest groups rather than the American people. One such example is the proposed tax hikes on corporations and high-income earners. While this may seem like a solution to address income inequality, it will ultimately harm the economy and hinder job creation.
Higher corporate taxes will disincentivize businesses from investing, expanding, and hiring new employees. This, in turn, will result in fewer job opportunities for American workers and further exacerbate the ongoing labor market challenges. Additionally, higher taxes on high-income earners discourage successful individuals from innovating and investing, stifling economic growth and opportunity.
The Biden administration’s emphasis on expansive government programs and regulations is another factor contributing to the failure of Bidenomics. These policies burden businesses with excessive regulations, making it more challenging for them to operate and adapt to changing market conditions. The increased regulatory burden ultimately translates into higher costs for businesses, which are then passed on to the consumer in the form of higher prices.
In conclusion, the evidence is clear: Bidenomics is failing the American worker. Declining wages, coupled with soaring prices, have created a perfect storm that is eroding the financial stability of hardworking individuals and families across the country. The focus on policies that hinder economic growth, such as tax hikes and excessive regulations, only exacerbates the problem. It is crucial that the Biden administration reevaluates its approach and prioritizes pro-growth policies that truly benefit the American people. Without a significant change in course, the real impact on American workers will continue to be detrimental, stifling economic opportunity and prosperity.
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