Keystone Today

Linda McMahon, chair of the board at the America First Policy Institute, recently addressed stagnant incomes for the second year in a row. 

“Another month of inflation levels we haven't seen in 40 years, courtesy of Biden, Schumer and Pelosi. Gasoline is up 55% since Biden took office and the Democrats took complete control of Congress. In just the past year, groceries have gone up 13.5%. Meanwhile, household incomes have remained roughly the same,” McMahon tweeted.

The Wall Street Journal (WSJ) reported that Americans have seen “flat or declining” income in the last two years. McMahon claims government spending has contributed to rising inflation which American incomes are not adjusting to as incomes are staying relatively the same. Pennsylvania's median income is around the same as the national median income for 2021.

According to The Wall Street Journal, U.S. median incomes have not risen in the last two years while inflation is at a record level in approximately 40 years. U.S. median income declined by approximately 1%, but the Census Bureau finds the drop “not statistically significant.” 

The WSJ said flat incomes are a result of the “pandemic’s lingering economic pain.” The Census Bureau found the median household income in the U.S. to be $70,800, compared to $71,200 in 2020, the WSJ reports.

The Labor Department found the consumer price index was 8.3% for August compared to 2021, effectively reporting inflation is still significantly present in the economy. 

The WSJ notes the federal reserve is actively raising interest rates to combat inflation "while trying not to trigger a recession." The poverty rate remained relatively the same at 11.7%, with $27,740/year as the definition line. The poverty rate doesn’t take government subsidies and taxes. Incorporating such expenses shows a drop in the poverty rate especially among children, economist Liana Fox said. 

“A larger share are on fixed income and I think one thing that’s very likely happening is that they are on fixed incomes that aren’t keeping pace with inflation,” Fox said, according to the WSJ.

According to NBC News, inflation should steadily remain high, with some economists predicting a slight turn downward. Gas prices have fallen to an average of $3.70, although NBC News claims western states are still seeing prices at $4 or higher. Food prices have elevated 11.4% compared to last year. 

“A majority of Americans say inflation has affected them financially,” NBC News reported.

According to Smart Asset, economists say inflation is largely tied to increased federal government spending.

Paige Terryberry, senior analyst for fiscal policy at the John Locke Foundation, confirms the current bout of inflation stems from the massive injection of cash since the pandemic’s onset.

According to a Zippia report from April, the median household income in Pennsylvania is $70,002.