President Biden had touted his economic success, however, most Americans aren’t seeing eye-to-eye with the Biden Administration in regards to economic success. Americans are still going to the store and paying more for the same essential goods. While the Biden Administration claims that Americans are receiving raises that negate inflation, the raises that Americans are receiving still leave Americans paying more for the same essential goods.
Price levels between August 2021 and August 2022 rose 8.3%, according to data from the Bureau of Labor Statistics. The reading marked a decline from the 8.5% rate seen in July 2022 and the 9.1% rate seen in June 2022, although core inflation — which factors out food and energy prices — continued to increase.
The poll from Bankrate found that 48% of American workers enjoyed a pay raise in the past year while 21% found a higher-paying job, including 8% who received both. Meanwhile, 39% of workers received neither — the lowest level in any prior iteration of the survey.
Inflation nevertheless appears to be outpacing earnings. Only 39% of respondents who received a raise or a better-paying job reported income that allowed them to adequately cope with rising consumer prices. A scant 33% of overall workers reported that their income has either exceeded or kept pace with inflation over the past year.
However, labor force participation rates have continued to lag over the past two years — worsening a decades-long trend of low engagement in the job market. The metric dropped from 63.4% in February 2020 to 60.2% in April 2020 alone amid government lockdowns and business closures, according to data from the Bureau of Labor Statistics. As of August 2022, labor force participation had climbed to 62.4%.
Much of President Biden’s success in the economy has been due to people returning to work after being forced to leave due to the COVID-19 pandemic and the Democratic party’s choice to keep Americans from working for a prolonged period of time. The economy is not in a better place than it was just 4 years ago under former President Donald Trump.