Consumer Prices Outpace Americans’ Wage Growth As Inflation Surges
Thomas Catenacci
Reporter
May 20, 2021 7:16 PM ET
Massive government spending has decreased the value of the American dollar and triggered increased consumer prices, which economic experts said will only get worse.
“Over the past few months, we have seen an inflation rate that is much higher than where we’ve become accustomed to,” Heritage Foundation research fellow Joel Griffith told the Daily Caller News Foundation.
Peter Schiff, the chief economist and global strategist of Euro Pacific Capital, said there will be “massive inflation,” which will negatively impact Americans’ standard of living.
The price of food, particularly wholesale pork and poultry, gasoline, steel, copper, home appliances, lumber and many other consumer items have increased since President Joe Biden entered office in January.Massive government spending has decreased the value of the American dollar and triggered increased consumer prices, which economic experts said will only get worse.
Americans will continue to see higher prices across the board, from food and gasoline to home appliances and cars, as the federal government continues to propose more stimulus into the economy without an adequate plan to pay for it, according to several experts. Even if the government doesn’t pass legislation increasing taxes, higher prices ultimately amount to an “inflation tax,” some of the experts said.
“Over the past few months, we have seen an inflation rate that is much higher than where we’ve become accustomed to,” Heritage Foundation research fellow Joel Griffith told the Daily Caller News Foundation. “When we are going to the grocery store, going to the gas station, building our new home, we’re noticing that prices are really accelerating at a much faster clip than what we’re used to.”
Since January, prices have outpaced wage growth meaning Americans’ average salary isn’t keeping up with the cost of goods and services. While wages have grown 1% since the beginning of the year, consumer prices have grown 2.1%, according to government data.
Hourly earnings have increased from $29.93 per hour to $30.17 per hour since January, according to the Bureau of Labor Statistics. Average weekly earnings have increased from $1,048.60 to $1,055.95 during the same period.
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https://dailycaller.com/2021/05/20/federal-reserve-joe-biden-heritage-foundation/
