Grand Canyon Times

According to a Wall Street Journal report, Americans have been faced with “flat or declining” income in the past two years, prompting claims from Linda McMahon, of the board at the America First Policy Institute, that government spending has contributed to inflation, while states such as Arizona remain below the national median income.

“Another month of inflation levels we haven't seen in 40 years, courtesy of Biden, Schumer, and Pelosi," McMahon said in a Twitter post on Sept. 13. "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%."

The Journal reported that median income has not risen in the past two years, while inflation is at a 40-year record level. Median income has dropped by approximately 1%, but the Census Bureau said the drop was “not statistically significant." The WSJ called the income drop part of the “pandemic’s lingering economic pain.” The Census Bureau reported that the median household income fell from $71,200 in 2020 to 70,800, the WSJ said.

McMahon replied to her own Tweet to continue her criticism of the Biden Administration.

"Meanwhile, household incomes have remained roughly the same, falling well short of covering the increased costs. Even still - our leaders have shown no inclination they intend to stop their rampant taxing and spending. Are you financially better off under this administration?” she said.

According to the U.S. Department of Labor, the consumer price index was 8.3% for August over the previous year, meaning inflation is still causing problems for families. The WSJ said the federal reserve is raising interest rates to combat inflation "while trying not to trigger a recession," the report stated. 

The poverty rate remained at 11.7%, with $27,740/year as the federal poverty line, which discounts government subsidies and taxes. According to economist Liana Fox, Incorporating such expenses shows a drop in the poverty rate, especially among children.

“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 told the Journal.

NBC News reported that inflation could remain high, with some economists predicting a slight downturn. Economists say inflation is largely tied to increased federal spending,

Paige Terryberry, a Senior Analyst for Fiscal Policy at the John Locke Foundation, said the recent bout of inflation has affected a large injection of cash in the market since the pandemic.

Gas prices have fallen to an average of $3.70, with some western states seeing prices at $4 or higher, including Arizona's rate of $4.05. Food prices have risen 11.4%.

“A majority of Americans say inflation has affected them financially according to a Gallup poll," NBC said.