Wages and Buying Power – Trump vs Biden
Base on the chart, it is very clear, buying power under Trump were rising. Buying power under Joe biden is going down substantially because of inflation. It is very clear why.
Inflation. If you have been reading about wages over the past six months you know that the labor is scrambling for better wages. Since so many people have been paid to sit at home from Covid funds, people who are willing to work are quitting their jobs and stepping into better jobs. And America has set new records in people quitting their jobs since about July.
Never mind that many are rising to their level of incompetence (such remark based on my perception of the service quality my local drive-through restaurants…) The average wages are going up. When more people start to go back to work, as you can see in the clear anomaly in April 2021, the growth in wages will fall.
Inflation is a bitch. Sources estimate multiple trillions of dollars have been spent on Covid, all of which were deficit spending. The Fed has expanded the money supply by about $4 Trillion. People were getting free money and trying to buy goods and services, but the people who provide those goods and services have not had enough employees to produce them. So prices go up.
The Biden Administration was provided with all of the tools to make a strong push against Covid, and to prevent inflation:
– He had three different vaccines, but he failed to convince Americans to take it.
– He had data from 50 states on how they were doing with various responses on Covid. He could have encouraged people to get back to work, as Trump did. He could have slowed down the outflow of money, he could have encouraged the relaxing of rules.
– He could have maintained Trump’s accomplishment of energy independence. He did not, and gas prices have shot through the roof.
– Biden could have focused his administration on inflation much earlier. Every indicator said it would happen. Unfortunately, the media played down inflation and now we are stuck with it.
I’m not saying Trump was perfect. He allowed the spending of huge amounts of money. I’m not sure he had a choice, and America seemed to be behind him.
Biden on the other hand, had a lot of choices and made bad ones.
Inflation will destroy a lot over the next THREE of years. Buying power in savings accounts COULD easily will fall by 25%.
I’m sure the Democrats will bring this up in the elections of 2022 and 2024. They will tout the rises in wages under the Biden Administration. They will leave out the net loss in buying power due to inflation. They believe nobody really understands any way. Are they right?