This is what I mean when I say you cherry pick things like "real" wages
June 2024 During
prepared testimony to the House Ways and Means Committee on April 30, Yellen claimed that “real wages and household median wealth have increased since before the pandemic.” Similarly, in a
June 13 interview with CNBC, she said that “all Americans, both those who are well off and those who are near the bottom of the income distribution, are better off now. Their wages have risen more than prices.”
But in June a Republican said this: Conversely,
during a June 16 interview on ABC News’ “This Week,” Scott claimed that for the “working class coalition … under Joe Biden … their wages, frankly, have gone down. Costs have gone up. And they have less spending power.”
Both Scott and Yellen can cite economic data that support their claims. The difference between the two claims is that Scott analyzed changes in inflation-adjusted wages and incomes since President Joe Biden entered office in 2021, whereas Yellen began her analysis in 2019, arguing that the pandemic distorted evaluations that began when Biden entered office.
Measuring from the start of Biden’s term in office, both wages and incomes have not kept up with inflation. However, measuring from before the pandemic to the present, inflation-adjusted wages and incomes have slightly increased.
And I'm sure that's exactly what you are doing. Not knowingly. I'm sure you are getting your sources from a site that doesn't tell you it's cherry picking data.
Real personal disposable per-capita income offers a different picture of purchasing power by including income sources other than earnings,
such as “Social Security and other government benefits, dividends and interest, [and] business ownership.”
While Scott is correct that average hourly earnings have grown at a slower pace than inflation over the last three years, nominal wages have still increased for the typical American. The BLS estimates that nominal average hourly earnings (measured in current dollars without adjusting for inflation) have increased by 16.64% between January 2021 and May 2024.
As we described earlier, from January 2021 to the present, the inflation-adjusted measures of average hourly earnings, median weekly earnings, and per-capita disposable personal income all decreased. Holtz-Eakin called Yellen’s claim from June 16 “demonstrably false.”
However, Yellen’s previous statement from April, and the evidence supporting her claim provided to us by the Treasury Department, all compare wage and income data from before the pandemic to the present and correctly identify an upward trend.
In recent weeks, Treasury Secretary Janet Yellen and Sen. Tim Scott offered seemingly contradictory claims when discussing the impact of inflation on the typical American's wages and income. Both can cite economic data that support their claims. The difference is the starting point of their...
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