Peach Tree Times

According to the Wall Street Journal (WSJ), U.S. median incomes have not risen in the last two years while inflation is at a record level for the first time in approximately 40 years.

While U.S. median income declined by approximately 1%, the Census Bureau finds the drop “not statistically significant.”  The WSJ says flat incomes are a result of the “pandemic’s lingering economic pain,” stating the Census Bureau found the median household income in the US to be $70,800, compared to $71,200 in 2020.

Linda McMahon, chair of the board at the America First Policy Institute, took to Twitter recently, commenting on the stagnant incomes for the second year in a row. Among comments, McMahon claims government spending has contributed to rising inflation which American incomes are not adjusting to as incomes are staying relatively the same.

“Gasoline is up 55% since Biden took office and the Democrats took complete control of Congress,” McMahon wrote in her tweet. “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. Even still - our leaders have shown no inclination they intend to stop their rampant taxing and spending. Are you financially better off under this administration?”

This comes as the Labor Department found the consumer price index was 8.3% for August compared to 2021, effectively reporting inflation is still significantly present in the economy. According to Smart Asset, economists say inflation is largely tied to increased federal government spending as 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.

The WSJ notes 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 definition line. While the poverty rate doesn’t take government subsidies and taxes, incorporating such expenses shows a drop in the poverty rate, especially among children, economist Liana Fox told the WSJ.

“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,” Fox said. 

According to NBC News, inflation should steadily remain high, with some economists predicting a slight turn downwards. Gas prices have fallen to an average of $3.70, although NBC News claims western states are still seeing prices at $4 or higher. Food prices have elevated by 11.4% compared to last year and a majority of Americans say inflation has impacted them financially, according to a Gallup poll.

According to a Zippia report from April, the median household income in Georgia is $59,235.