Inflation Delivers 2 Percent Pay Cut, Despite 3.6 Percent Wage Hike

By Newsmax
Posted on 07/28/21 | News Source: Newsmax

Hourly wages rose 3.6% this June from last, but inflation has ostensibly delivered a nearly 2% pay cut, the Bureau of Labor Statistics reported.

The June wage increase to an average of $30.40 is the largest since 2009, the Economic Policy Institute reported, but 5.6% inflation in the consumer price index has put a negative drag on “real wages,” a figure that measures income while accounting for the cost of goods and services.

“The staples of American life are increasing exponentially,” Sen. Tim Scott, R-S.C., told CNBC, citing higher prices for gasoline, laundry, airfare, moving costs, hotels, bacon and TVs.

Many economists agree with congressional Republicans who denounce the ills of inflation as the Biden administration and a Democrat-controlled Congress seek to pass massive spending packages to bolster infrastructure and social programs, and progressive Democrats in Congress propose to reduce the nation’s reliance on fossil fuels under the Green New Deal.