The average American family lost about $6,000 in annual wages thanks to inflation during President Biden’s administration, according to an analysis shared with FOX Business.
The analysis, conducted by economist and Heritage Foundation research associate EJ Antoni, showed that the average American worker experienced a $3,000 annual wage drop, meaning families are losing $6,000 in annual wages due to high inflation had to. Antoni said the losses have had a major impact on families’ incomes and quality of life, as Americans struggle to pay for everyday necessities like groceries and utility bills.
“People just get absolutely knocked out,” he told FOX Business in an interview. “It’s not the prices of caviar and yachts that are driving these numbers. They are necessities, they are staples. It’s things like eggs, milk, flour, soup. These are things that are up 20 or 30 percent year over year.”
“All of these additional costs are now essentially creeping into the rest of the economy,” Antoni continued. “Unfortunately, I really don’t see a lot of good news everywhere I look.”
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The consumer price index, a popular gauge of inflation, rose 0.4% mom and 8.2% year-on-year in September, according to a US Department of Labor report released on Thursday. The number was hotter than economists had predicted ahead of the report.
Core prices, which exclude volatile energy and food prices, rose 6.6% on an annualized basis, the biggest jump in 40 years.
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“Whenever you have a period where the core gets very hot, that headline count will go up over time to compensate, and vice versa,” Antoni said. “And that’s exactly what we’re seeing now. The headlines have been very hot, mainly because of energy prices, and now you will have to catch up with Kern.”
About 157 million Americans, about 61% of the nation’s population, are living paycheck-to-paycheck due to high inflation, according to recent Lending Club survey data. This number has increased from 55% in June 2021.
Although wages have risen 5.1% over the past year, according to Lending Club, they have not kept pace with rising consumer prices.
Antoni criticized the Biden administration, which he accused of pumping inflation. Biden said in a statement Thursday that the US had made progress in curbing inflation as a result of his economic plan.
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“People are much worse off now than they were in January 2021,” he said. “It’s really like this government thinks they can rule by executive order, like they say by royal decree, and it will. It’s just absolutely amazing.”
“Inflation was 1.4% when Biden took office — it was basically non-existent,” Antoni added. “And somehow he got over 9% in just 18 months. Again, it really is like these people live in a fantasy world. It’s amazing.”