Incomes Freeze As Inflation Heats Up

Another Biden misread of economy’s health bites dust as WSJ says “US Incomes Fail To Grow Second Yr in Row”. What? Isn’t California upping McD burger slingers’ wages high enough to make cattle rustlers’ mouths water?

Using Census stats, the article put it in simplest of terms: “Americans as a whole have experienced two years in a row of flat or declining household income … reflecting the pandemic’s lingering economic pain as inflation is also taking the largest bite out of pocketbooks in four decades.” While the decline in median household income from 2021 to 2020 was chump change, about $400, it becomes big bucks when inflation for the year is running at a 8-9% clip and many food, rent and energy costs are in double-digit territory.

The implications for families as well as Joe’s economy were summarized this way by Wells Fargo’s senior economist Tim Quinlan: “The combination of continued Fed tightening and elevated inflation, which has caused real personal income to contract in recent quarters, will lead to retrenchment in real consumer spending beginning in the first quarter of 2023.”

Davd Soul