Joe Biden: The inflation, vacation and scandal President

[Biker]

Wages are rising, but inflation may have given workers a 2% pay cut

Westend61 | Westend61 | Getty Images

Workers saw their hourly pay in June jump at the fastest clip in more than a decade. Yet some of them saw those gains erased by high levels of inflation.

"Real wages" — a measure of income after accounting for the cost of goods and services people buy — fell by almost 2%, on average, last month compared with 2020. Senate Republicans said Wednesday that Americans were getting a pay cut as a result.

"The staples of American life are increasing exponentially," according to Sen. Tim Scott, R-S.C., who cited examples like higher prices for gas, laundry, airfare, moving costs, hotels, bacon and TVs.

The thrust of the argument — that inflation eats into rising wages — is true, according to economists. Still, there are many nuances, they said.

For one, whether a consumer got a pay cut or not depends on their individual earnings and the things they buy.

"If prices are growing faster than wages, then people are getting inflation-adjusted pay cuts," according to Michael Strain, director of economic policy studies at the American Enterprise Institute, a right-leaning think tank. "Ultimately, this varies dramatically for every individual."

Plus, inflation has been volatile and may prove temporary — meaning a reduction in buying power could be short-lived, economists said.

Inflation and wage growth
Average hourly earnings rose 3.6%, to $30.40, in June compared with the same month in 2020. That's the biggest spike since January 2009, according to data compiled by the Economic Policy Institute.

Meanwhile, the consumer price index, a measure of inflation, jumped 5.4% over the same period — the most since August 2008.

Together, this amounts to a 1.7% loss in buying power, on average, when factoring in seasonal adjustments, according to the Bureau of Labor Statistics.

"Inflation is a tax," said William Foster, a vice president at Moody's Investors Service. "That's the best way to think about it."

Inflation most impacts lower earners, who spend more of their average dollar on gas, food and other items that may be rising in price, Foster said. Wealthier individuals, who tend to hold more financial assets like stocks or homes, may be better able to offset the impact of inflation, he added.

But not everyone necessarily got a pay cut as a result. The 5.4% jump in annual inflation is an average of many items — and households aren't necessarily buying the ones that are getting much costlier.

For example, the metric includes prices for used cars and trucks, which are up about 45% from June 2020 — their largest change on record. That price shock wouldn't hit someone's wallet unless they bought a used car.

Similarly, gasoline prices are up 45%. That extra cost would be borne by drivers, though perhaps not city residents who ride public transit.

By comparison, food prices are up just 2.4% over the same time, lower than the broader inflation measure.

[CHEEZY17]

Democrats: results of their policies hurt lower income people the hardest.
Also Democrats: meh

[CaptQuint]

[Biker]

Poors are funny

[Animal]

Democrats: results of their policies hurt lower income people the hardest.
Also Democrats: meh

Well get ready for some riots. Joe really knows how to thank his voters.

Chicken wing prices have gone up 50%

[CaptQuint]

It's really weird that Joe would write an Executive order to raise chicken wing prices 50%

[Animal]

What's not weird is that democrats aren't smart enough to know how to connect the dots from point A to point B when it comes to economic decisions.

[CaptQuint]

Biker will be in shortly to mock all these "poors" complaining about gas and chicken prices.

[Animal]

Biker will be in shortly to mock all these "poors" complaining about gas and chicken prices.

its not always just the poors that complain. I doubt the CEO of Wing Stop is a poor.

The bad news, according to CEO Charlie Morrison, is that the enhanced stimulus has kept individuals away from the job market—a trend that's affecting staffing levels in the supply chain. Wingstop is seeing record-high bone-in chicken wing prices, which are expected to remain elevated for the remainder of 2021. Suppliers are struggling to hire people to process chicken, and that’s placing pressure on the amount of bird that can be processed. The labor crunch negatively affects supply of all parts of the chicken in the U.S., not just wings.

“I think the real question for us is around whether or not there’s going to be additional stimulus, and the implications of that on the labor market, particularly the labor market for our poultry suppliers,” said CFO Michael Skipworth during the chain’s Q1 earnings call.

[CaptQuint]

Biker should get a job at a poultry plant and help out his people. Joe would approve.

[Biker]

Poor Capt flailing away at playing defense.

[Charliesheen]

No thanks. But before unchecked and mostly illegal immigration a man could earn a solid living working in a meat processing plant.

Ditto for a lot of agricultural jobs.

[CaptQuint]

The Arizona audit results will be released any day now and Trump will be reinstated and will sign an Executive Order eliminating Social Security, Medicare/Medicaid, the Public School system, Amber Alerts, Disability insurance, farm subsidies. And this will lower the price of chicken parts and we will truly be free.

[Animal]

No thanks. But before unchecked and mostly illegal immigration a man could earn a solid living working in a meat processing plant.

Ditto for a lot of agricultural jobs.

the surprising thing to learn is that it wasn't the illegal immigration that ended that. it was the fact that fewer and fewer men would do the work required for those jobs so the demand for their jobs attracted immigrants.

[Animal]

The Arizona audit results will be released any day now and Trump will be reinstated and will sign an Executive Order eliminating Social Security, Medicare/Medicaid, the Public School system, Amber Alerts, Disability insurance, farm subsidies. And this will lower the price of chicken parts and we will truly be free.

is that what Q Anon is saying?

[CaptQuint]

The Arizona audit results will be released any day now and Trump will be reinstated and will sign an Executive Order eliminating Social Security, Medicare/Medicaid, the Public School system, Amber Alerts, Disability insurance, farm subsidies. And this will lower the price of chicken parts and we will truly be free.

is that what Q Anon is saying?

Ask Biker to check his feed. He's the audit expert.

[Biker]

The Arizona audit results will be released any day now and Trump will be reinstated and will sign an Executive Order eliminating Social Security, Medicare/Medicaid, the Public School system, Amber Alerts, Disability insurance, farm subsidies. And this will lower the price of chicken parts and we will truly be free.

is that what Q Anon is saying?

Capt is on top of it fo sho

[Animal]

The Arizona audit results will be released any day now and Trump will be reinstated and will sign an Executive Order eliminating Social Security, Medicare/Medicaid, the Public School system, Amber Alerts, Disability insurance, farm subsidies. And this will lower the price of chicken parts and we will truly be free.

is that what Q Anon is saying?

Ask Biker to check his feed. He's the audit expert.

i don't think we need biker to post Q Anon updates. Not when we have Marjorie Green running your account.

[CaptQuint]

The Arizona audit results will be released any day now and Trump will be reinstated and will sign an Executive Order eliminating Social Security, Medicare/Medicaid, the Public School system, Amber Alerts, Disability insurance, farm subsidies. And this will lower the price of chicken parts and we will truly be free.

is that what Q Anon is saying?

Ask Biker to check his feed. He's the audit expert.

i don't think we need biker to post Q Anon updates. Not when we have Marjorie Green running your account.

We don't need Biker to post anything, yet he persists.

[CaptQuint]

OK, now this is fucking whacked.

[Biker]

Whacked as in its totally unbelievable. Dupe

[CaptQuint]

Covering their asses

[CHEEZY17]

Joe Biden now claims he used to drive an 18 wheeler.

[Animal]

Joe Biden now claims he used to drive an 18 wheeler.

[Charliesheen]

No thanks. But before unchecked and mostly illegal immigration a man could earn a solid living working in a meat processing plant.

Ditto for a lot of agricultural jobs.

the surprising thing to learn is that it wasn't the illegal immigration that ended that. it was the fact that fewer and fewer men would do the work required for those jobs so the demand for their jobs attracted immigrants.

C’mon man!

Supply and demand dictates everything, including the work force.