(FeaturedNews.com) – In the last two years, inflation has resulted in millions of Americans needing to take a pay cut which is a serious hit to President Biden’s “Bidenomics.“
On Tuesday, the Labor Department reported that in January 2021 the average hourly earnings for employees had been $11.43, however in 2023 that number dropped by 3.32 percent and it is now $11.05. This means that on average a U.S. worker is now worse off than what they would have been two years ago despite the increase in nominal wages.
In part, this is the result of the high inflation rates which have resulted in many consumers needing to spend more for the same goods.
On Tuesday, the government noted that in October the consumer price index had remained unchanged, however on an annual basis the prices have increased by 3.2 percent.
When compared to two years earlier before the start of the inflation crisis, prices were 17.62 percent lower. The high inflation rates have led to many U.S. households struggling to cover necessities including rent and food. This is a strain that is particularly felt by low-income Americans who are stretching paychecks in order to cover all their necessities.
Many U.S. households have expressed concern and pessimism over the financial situation they have been in under President Biden.
Last week, a new survey released by Bankrate found that 50 percent of Americans believe that their financial situation has improved compared to 2020 during the presidential election. Only 21 percent believe that their financial situation has gotten better while 26 percent think that it has not changed.
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