Dallas Fed Finds Americans Enduring ‘Most Severe’ Pay Cut in Decades Thanks to Bidenflation

Americans are suffering the biggest pay cut in decades thanks to inflation in President Joe Biden’s America, according to recent data.

A study by three economists at the Federal Reserve Bank of Dallas found that real wages have fallen for most workers over the past 12 months. Even though nominal wages are rising rapidly, prices are rising even faster.

The Dallas Fed found:

We find that a majority of employed workers’ real (inflation-adjusted) wages have failed to keep up with inflation in the past year. For these workers, the median decline in real wages is a little more than 8.5 percent. Taken together, these outcomes appear to be the most severe faced by employed workers over the past 25 years.

How severe are the losses for workers experiencing negative real wage growth? For the 53.4 percent of such workers in second quarter 2022, the median decline (that is, half of the declines were larger and half smaller) in real wage growth was 8.6 percent. How does the severity of the real wage decline in second quarter 2022 compare with the declines over the last 25 years? The average median decline over the last 25 years is 6.5 percent, with real wage declines typically falling in the range of 5.7 to 6.8 percent.

A recent poll from Monmouth University found that eighty-two percent of the public say inflation was “extremely” or “very” important. A poll from Axios-Ipsos showed that 43 percent of Americans fear that inflation will continue to soar under Democrat rule if the party remains in power on Capitol Hill. Only 24 percent say the same of Republicans.

The U.S Department of Labor will issue a report Friday on job growth and wage gains for last month. It was expected to show Americans’ average hourly earnings rose 5.2 percent compared to a year ago and 0.3 percent compared with the prior month.

The department will also release the Consumer Price Index for September showing prices increased 0.1 percent in August compared with the month before and were 8.3 percent compared with a year before.