Survey: 71% Of American Workers Say Inflation Is Outpacing Pay

Nearly three out of every four American workers say that the cost of living is outpacing their wages according to a new survey sponsored by the Bank of America.

CBS News reports that wage growth in America is the highest it has been in more than 20 years. With the pandemic coming to an end and Americans ready to get back to normal living, wages are definitely rising.

If wages are increasing at a high rate, why do 71% of Americans surveyed say that their wage increases are lower than the cost of living?

Greg McBride, chief financial analyst for Bankrate, explains: “It’s symptomatic of a high-inflation environment. The labor market has been very strong, the pace of wage growth is the best it’s been in about 20 years, but inflation is at the highest in 40 years. So a lot of households are seeing pay raises that in normal times would look good but, but instead they are being swamped by higher expenses.”

On top of that, as the video below shows, President Biden either does not understand or was purposefully misleading Americans when he stated, “wages are up” in this speech from February 2022.

It is true that 2021 was the best year for wage growth for many households. But as McBride explained, “In what was the best year for wage growth that we have seen in many, many years, it still comes up as a loss for many households. Their expenses increased even faster and chewed up all of the benefit of whatever pay raise they had seen.”

2022 is on pace to be even worse. The 71% of Americans who say inflation is outpacing wages is up from 58% in February, and if inflation remains on this pace that number will continue to rise. August numbers showed inflation to be, while slightly lower than June and July, “stubbornly high” and particularly when it comes to food and rent prices.

More than half of the respondents said they have had to take action to cope with inflation’s financial strain in the past six months. “21% say they are tapping emergency savings to pay the bills, 21% are working extra hours, 20% are looking for a higher-paying job and 6% are resorting to a 401(k) hardship withdrawal, the survey found.”

President Biden said, “It will take more time and resolve to bring inflation down, which is why we passed the Inflation Reduction Act to lower the cost of healthcare, prescription drugs and energy,” but most Americans are not buying it.

According to Forbes, “a new poll from Morning Consult suggests, finding some 57% of voters think the package will have no impact at all or will actually make inflation worse.”

While democrats continue to push social and environmental issues as the midterms draw near, these new numbers continue to show that Americans are as concerned, if not more, about the economy than anything else in their lives.

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