US Census Bureau revealed On Tuesday, it was announced that American household incomes have fallen for the third consecutive year due to decades of high inflation and declining purchasing power.
The department’s new report “US Revenue: 2022” showed that real median household income after taxes fell by 8.8% in President Joe Biden’s first two years in office, even though Democrats still controlled Congress.
During the same period, the after-tax poverty rate jumped from 7.8% to 12.4%, and a significant number of Americans slipped into the bottom income quintile. More than 37.9 million souls currently live in poverty.
“We’ve seen a significant increase in poverty across all sociodemographic groups,” said Luke Schaefer, a public policy professor at the University of Michigan. Said market. “The biggest decline was among children. Child poverty was more than twice as high.”
The report also found that last year’s median pre-tax household income fell 2.3% to $74,580, or $1,750 less than the 2021 median. This is a 4.7% decrease from the level in 2019, just before the coronavirus outbreak. -19 pandemic that originated in Wuhan, China.
These estimates are inflation-adjusted.
Median household income for heads of households under age 65 decreased by 1.4% from 2021, while baby boomers and older generations were largely unaffected by the decline, according to the report.
In 2021-2022, 3.6% of households were headed by non-Hispanic whites. Decrease in median household incomeMeanwhile, the number of black and Hispanic household heads increased by 1.5% and 0.5%, respectively.
All regions saw declines, but the Midwest was most negatively affected, with a 4.7% decline.
The Census Bureau argues that this worsening situation “may be due to significant changes in federal tax policy,” specifically the economy, which has accelerated inflation in conjunction with supply chain disruptions and rising prices. It blamed the expiration of the Biden administration’s pandemic policies, such as impact payments. energy costs.
Mr. Biden rushed in. condemnation Congressional Republicans on Tuesday protested the findings detailed in the department’s latest report, even though Democrats controlled the House for the years in question.
“The increase in child poverty reported today is no coincidence,” Biden said in a statement. “This is the result of deliberate policy choices by Congressional Republicans to block aid for families with children while advancing massive tax cuts for the wealthiest corporations.”
Despite the bleakness of the bureau’s report, Bill Adams, chief economist at Comerica Bank, said: Said The Wall Street Journal has reason for hope.
“From now to the future, the prospects are good for wages to make up for some of the losses over the past few years,” Adams said.
Wage growth began to outpace inflation as of December 2022, with inflation-adjusted wages reportedly rising about 3% in July, according to the Atlanta Fed Wage Tracker and U.S. Department of Labor data.
While inflation remains a problem, it appears to have slowed slightly in 2023, from more than 9% last summer to about 3% in July.
While some have optimistic predictions, others worry that the president’s “Bidenomics” will exacerbate the suffering of Americans under his watch.
Milton Ezrati recently wrote for Forbes cast doubt on As for whether Biden’s proposed “watered-down version of China’s Marxist, centrally planned approach to economic organization” will prove to be nothing more than a fiasco.
Ezrati is not alone in doubting Biden’s ability to manage the economy.
Recent Quinnipiac Poll revealed A majority of Americans believe the country’s economy is in decline, and 58% of registered voters surveyed said they disapprove of his approach to the economy.
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