Old North News

If you wonder where that extra money that made up your last raise has gone, it’s not your imagination.

For the second year in a row, Americans have experienced “flat or declining” incomes, the Wall Street Journal reported.

“Another month of inflation levels we haven't seen in 40 years, courtesy of (President Joe) Biden, (Sen. Chuck) Schumer, and (U.S. Rep. Nancy) Pelosi,” Linda McMahon, who chairs the board at the America First Policy Institute, tweeted recently.

Calling flat incomes part of the “pandemic’s lingering economic pain.” the Journal reported that U.S. median incomes have not risen in the last two years while inflation is at a 40-year record high.

U.S. median income declined by approximately 1% — to $70,800 from $71,200 according to Census Bureau data, but the Census Bureau considers the drop “not statistically significant.”

North Carolina lags behind those figures, with the median household income reported at $60,000, according to a Zippia report in April.

The Labor Department found the consumer price index was 8.3% for August compared to 2021, showing inflation is still significantly present in the economy.

The Wall Street Journal article notes that the federal reserve is actively raising interest rates to combat inflation "while trying not to trigger a recession."

The poverty rate remained relatively the same at 11.7%, with $27,740/year as the defining point. It’s worth noting that the poverty rate doesn’t take government subsidies and taxes into consideration. When those figures are added to the mix, economist Liana Fox told the Journal it reflects a drop in the poverty rate, especially among children.

“A larger share are on fixed income and I think one thing that’s very likely happening is that they are on fixed incomes that aren’t keeping pace with inflation” according to the Journal.

NBC News forecasts inflation to remain high, while some economists are predicting a slight turn downward. Gas prices have fallen to an average of $3.70, although NBC News says western states are still posting prices at $4 or higher. Food prices have risen 11.4% compared to last year, prompting “a majority of Americans” to say inflation has affected them financially, a Gallup Poll, cited by NBC News, shows.

Economists say inflation is largely tied to increased federal government spending, Smart Asset reports. Others support that assertion. Paige Terryberry, senior analyst for fiscal policy at the John Locke Foundation, confirms the current bout of inflation stems from the massive injection of cash since the pandemic’s onset.

McMahon tweeted about what the situation means for average Americans.

“Gasoline is up 55% since Biden took office and the Democrats took complete control of Congress. In just the past year, groceries have gone up 13.5%. Meanwhile, household incomes have remained roughly the same, falling well short of covering the increased costs,” she wrote. “Even still — our leaders have shown no inclination they intend to stop their rampant taxing and spending.”

When you head to polls in November, ask yourself if you are better off under this administration, she added.