Bidenomics strikes again: Real household income suffers biggest drop since Great Recession
Conn Carroll
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Nominally, households earned more money in 2022 than they did in 2021. But thanks to inflation caused by Bidenomics, real household income (that is, income adjusted for inflation) not only fell, but fell by an amount not seen since the Great Recession.
According to Census Bureau numbers released Tuesday, median household income fell from $76,330 in 2021 to $74,580 in 2022, a decline of 2.3%. This is the biggest drop in real household income since 2010, when it fell 2.6%. Even at the height of the pandemic, when millions of people couldn’t work, real income only fell 2.2%.
MEDIAN HOUSEHOLD INCOME FELL IN 2022, ADJUSTED FOR INFLATION, CENSUS BUREAU SAYS
The decline in real income was driven entirely by near-record-high inflation. According to the Census Bureau, inflation rose 7.8% between 2021 and 2022, which was the largest inflation increase since 1981.
President Joe Biden used to try and blame Russian President Vladimir Putin for the inflation America is suffering through, but any honest Democrat, even those who worked for President Barack Obama, will tell you that Biden is to blame.
Before Biden’s first trillion-dollar spending law was even passed, National Economic Council Director Larry Summers warned, “Macroeconomic stimulus on a scale closer to World War II levels than normal recession levels will set off inflationary pressures of a kind we have not seen in a generation, with consequences for the value of the dollar and financial stability. … Stimulus measures of the magnitude contemplated are steps into the unknown.”
After the Biden stimulus became law, Obama’s Council of Economic Advisers Chairman Jason Furman admitted that “by March of 2021, it looked very likely that the vaccinations were going to be very effective in bringing COVID down, and that the economy was repairing rapidly. So, that last round of checks, I thought at the time, was a mistake.”
“There were also other parts of the rescue plan that were oversized,” Furman continued. “For example, states and localities got a huge amount of money, even though they basically had no fiscal problem by the time the bill passed. It was clear by the time it passed that their tax revenue had recovered, and that they’d got enough other aid that they covered their holes. Why does that matter for inflation? Well, you have states across the country cutting taxes now, so you have another round of upward pressure on demand and inflation happening because of that big fiscal relief.”
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Even Obama auto bailout czar Steve Rattner blames Bidenomics: “The original sin was the $1.9 trillion American Rescue Plan, passed in March. The bill — almost completely unfunded — sought to counter the effects of the Covid pandemic by focusing on demand-side stimulus rather than on investment. That has contributed materially to today’s inflation levels.”
The White House may wonder why the public keeps telling pollsters that the Biden economy is in bad shape. Perhaps they should consult the Census Bureau first.