In another uncomfortable economic shift for the average American household, incomes dropped in 2022 for the third consecutive year. Even as President Joe Biden paints a rosy picture of the economy, the reality manifests as a contrast with a decrease from $76,330 in 2021 to $74,580 in 2022, marking a stark 2.3% retreat. These figures, released by the U.S. Census Bureau, only confirm fears as high food and transportation costs continue to squeeze wallets, pushing the biographical narrative of “Bidenomics” toward a pivotal litmus test.
Inflation, consistent with its upward trend, remained high. A 7.8% rise meant the largest annual increase in the cost-of-living adjustment since 1981 according to the Census Bureau. The bureau pointed out that these figures are presented in real or adjusted 2022 dollars to reflect these changes in the cost of living accurately. Median income for those below the age of 65 decreased, whereas those 65 and older did not witness a significant shift in their median income year-over-year, indicating a disparate hit on younger Americans.
🆕 Real median household income was $74,580 in 2022, a 2.3% decrease from 2021.
More at https://t.co/PjE64LeMx7.#CensusData #Income #HouseholdIncome #MedianIncome pic.twitter.com/Q0AjCqV6Pk
— U.S. Census Bureau (@uscensusbureau) September 12, 2023
President Biden’s vision of “Bidenomics,” his proclaimed “blue-collar blueprint for America,” is to address these issues. But these fresh economic complications could potentially poke holes in his narrative. Despite this, the President maintains an optimistic viewpoint, stating in a Labor Day speech, “I’ve got news for them. America has the strongest economy in the world right now, today.”
The persisting high (albeit slowed) inflation rates in 2023 pinch pockets with high gas prices and elevated costs for essential food goods. The Producer Price Index and the Consumer Price Index echo this story, indicating that food prices seem likely to remain stubbornly high towards the end of 2023 and potentially into 2024.
Recent polling data gathered by the Wall Street Journal indicates that Americans carry a degree of skepticism about Biden’s economic policies, notwithstanding the upbeat picture painted by the President. About 60% of Americans think Biden has not appropriately managed the economy, with 63% holding a dim view of his handling of inflation.
The Biden administration leveraged declining inflation rates and low unemployment numbers to counter hostility surrounding their economic policies. Still, according to Republican strategist Tony Fabrizio, this is not resonating with voters. He opined, “They can go out and talk about this stuff all they want, these voters aren’t hearing it, or they’re not believing it. They are certainly not buying it.”
In conclusion, it appears that the presidential administration’s assurances of a strong economy ring hollow in the face of continued declines in household incomes—the very metric that directly impacts the average American’s quality of life. Despite the proclaimed successes of “Bidenomics,” the economic realities of the American middle class paint a picture of deep-seated apprehension and struggle. If the current trajectory persists, the administration could find itself mired in the aftershocks of dissonance between its economic projections and the harsh, lived realities of ordinary Americans.
