2021 The Year Real Wages Sank 2.4% From 2020
US inflation in December reached a level (7%) not seen since 1982 & nearly 450 global CEOs surveyed say they now expect price pressures to continue until “at least” mid-2023. More importantly, WSJ says, “The Biden-Powell price increases reduced real wages by 2.4% in 2021.”
Explained the editors: “American workers can be grateful for small favors. They finally received a raise in December, even if it was only 0.1% after inflation. At least that beats the decline of 2.4% in real wages over the entire year. That’s how much inflation has eroded the American standard of living and how it turned 2021 into a lost year for the average worker.”
How could this have happened, you ask, especially since we’ve been in the midst of a hot jobs market? Answered the WSJ: “It’s important to understand what a policy and intellectual failure this inflation represents for the Keynesians who are in charge of current economic policy. The Biden Administration & Federal Reserve flooded the economy with money in 2021 even as the recovery from the Covid recession was long over.” And, they are demanding still more federal spending via assorted bright if inflationary ideas like Build Back Better and a never-ending (unwinnable war) on Covid.
Davd Soul
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