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Americans are earning more, but inflation is eating up their rising wages and then some.
In today's podcast, we talked about the unprecedented collapse in real incomes and how it will trickle down through the economy.
Year-over-year, average hourly wages for production and nonsupervisory employees were up 6.7% in March. That sounds great – until you factor in inflation.
With CPI at 8.5% (according to official government numbers), real wages for these workers have dropped nearly two percent. Their bigger paychecks aren’t even covering rising prices.
Overall, wages are rising at around 4 to 5%. That means in aggregate, real wages are dropping even faster.
Video Length: 00:40:23
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