Wage Gains Wiped Out By Soaring Inflation

We are consistently hearing about the need to accelerate wage growth.

The gap between the rich and the poor continues to grow, but what proponents of social welfare programs and wealth redistribution schemes fail to mention is that the very need to accelerate wage growth is directly tied to inflation.

If the Federal Reserve Bank did not recklessly print money and debase the currency, if the U.S. government did not make poor fiscal choices and controlled its spending there would be no inflation, and no reason to raise wages.

A loaf of bread would cost 10 cents in 1950 and again in 2022 if proper fiscal and monetary responsibility were practiced, or if the power to mint money was taken away from an irresponsible state altogether…

We are already witnessing this with the advent of cryptocurrencies and digital assets, many of which are deflationary or have a capped maximum supply. These digital currencies are eroding the state’s monopoly on minting money.

The Biden administration’s reckless policies have led to soaring inflation, and with it a real reduction in purchasing power, erasing all wage growth gains made prior to and during the pandemic.

Rising housing and mortgage costs, and skyrocketing oil prices are among just some of the ways that Americans are feeling the pain of transacting, and the current regime seems to be skirting all responsibility for the manufactured crisis.

Biden’s administration has blamed Putin, Trump, and climate change for the highest inflation in 40 years, but has failed to identify the real culprit: its own disastrous economic policies mired in false notions of equity and social welfare.

After all, it is always for the good of others that the worst is done.

The economic situation in America continues to deteriorate for the middle class:

Jobs report is a "skinniest kid at fat camp" headline.
-428,000 jobs reclaimed, but still 1.2 million jobs shy of getting back to Feb 2020 baseline.

-363,000 left the workforce, at a time when we have a record high of open jobs!
-Wage growth still materially lagging inflation.

— Carol Roth (@caroljsroth) May 6, 2022

With wage growth slowing (still outpaced by 8.5 percent inflation) and a declining labor force participation rate, even CNN couldn't spin April's jobs report without mentioning that Americans have turned on Biden for his failure to manage the economy.https://t.co/7VsklXUtX4

— Spencer Brown (@itsSpencerBrown) May 6, 2022

According to The Epoch Times:

Wage increases are beginning to come head to head with soaring inflation, which is chipping away at paychecks.

Analysts are uncertain if or when inflation rates will go down.

Prices have been rising since last year, with inflation reaching a 41-year high in March of this year, due to supply chain issues, pandemic variants, and a war in Ukraine.

 

The data I'm paying attention to this #jobsday is how the rates of wage growth have cooled to 3.7% annually as oppose to 5.7% the year prior.
Families are having a hard time making ends meet: Corporations have increased prices with inflation and wages continue to be suppressed https://t.co/6N2VmVmVAb pic.twitter.com/nfbE0m9Qz1

— Lorena Roque (@Roque_L) May 6, 2022

This is why people are bearish:

Consumer credit came in at $52B on Friday vs $25B expectation

People are broke with no more covid stimulus and wage growth lower than inflation growth

Supply issues and rising input costs further amplify these issues.

— Michael Pichardo (@PichyTweets) May 7, 2022

Washington Examiner adds:

Average hourly earnings for all employees on private non-farm payrolls rose by 0.3% in April, a bit lower than economic forecasters had expected, according to data released Friday from the Bureau of Labor Statistics. Nominal earnings have increased 5.5% on an annual basis.