Democrat President Joe Biden has just received the worst news of his political career as the latest economic data deals a death blow to the Democrats’ chances in the looming midterms.
The latest figures from the Bureau of Labor Statistics show the U.S. economy is still battling inflation while “real average wages” are starting to fall.
This is not sustainable for Biden and the Democratic Party and portends a wipeout in the November elections.
Reporter Matt Stoller broke down the bad news for Joe Biden: “‘Real avg hourly earnings decreased 2.6%, seasonally adjusted, from April 2021 to April 2022. The change in hourly earnings combined with a decrease of 0.9 percent in the average workweek resulted in a 3.4% decrease in real average weekly earnings.’ Oof.”
He added, “This is a very weird inflationary period with an unusually large share going to profits and an unusually small share going to wages.”
“Real avg hourly earnings decreased 2.6%, seasonally adjusted, from April 2021 to April 2022. The change in hourly earnings combined with a decrease of 0.9 percent in the average workweek resulted in a 3.4% decrease in real average weekly earnings.” Oof. https://t.co/EyBap8Sn8l
— Matt Stoller (@matthewstoller) May 11, 2022
From Bureau of Labor Statistics: “Real average hourly earnings for all employees decreased 0.1 percent from March to April, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today.
This result stems from an increase of 0.3 percent in average hourly earnings combined with an increase of 0.3 percent in the Consumer Price Index for All Urban Consumers (CPI-U).
Real average weekly earnings were essentially unchanged over the month due to the change in real average hourly earnings combined with no change in the average workweek.
Real average hourly earnings decreased 2.6 percent, seasonally adjusted, from April 2021 to April 2022.
The change in real average hourly earnings combined with a decrease of 0.9 percent in the average workweek resulted in a 3.4-percent decrease in real average weekly earnings over this period.
Real average hourly earnings for production and nonsupervisory employees increased 0.2 percent from March to April, seasonally adjusted.
This result stems from a 0.4-percent increase in average hourly earnings combined with an increase of 0.2 percent in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
Real average weekly earnings increased 0.2 percent over the month due to the change in real average hourly earnings being combined with no change to the average workweek.
From April 2021 to April 2022, real average hourly earnings decreased 2.3 percent, seasonally adjusted.
The change in real average hourly earnings combined with a decrease of 0.9 percent in the average workweek resulted in a 3.1-percent decrease in real average weekly earnings over this period” BLS reported.
This is a very weird inflationary period with an unusually large share going to profits and an unusually small share going to wages. https://t.co/BS9aF9zC1U pic.twitter.com/i9LEL0bx3y
— Matt Stoller (@matthewstoller) May 11, 2022
This will be a bigger issue to voters in November than Roe v. Wade. https://t.co/kJLV4o7ads
— Frank Luntz (@FrankLuntz) May 10, 2022
From CNBC:
The consumer price index accelerated 8.3% in April, more than the 8.1% estimate and near the highest level in more than 40 years.
Core CPI, which excludes food and energy, also was higher than expected, rising 6.2%.
Shelter costs, which comprise about one-third of the CPI, rose at their fastest pace since 1991.
Inflation-adjusted earnings continued to decline for workers, falling 2.6% over the past year due to the surging cost of living.
“The pace of price increases moderated, but not as much as expected,” said Bankrate chief financial analyst Greg McBride.
“Excluding a decline in energy prices – which appears outdated by this point – the increases remain widespread.
“With the annual rate ticking down from 8.5% to 8.3, it can be tempting to say we’ve seen the peak, but we’ve also been head-faked before as was the case last August.”
