By David Leonhardt in the New York Times:
If the Trump economy were so wonderful, why would the speaker of the House feel the need to traffic in disingenuousness? Because the Trump economy isn’t actually so wonderful. For most Americans, it is downright mediocre, and it has deteriorated somewhat since President Trump took office, despite the healthy G.D.P. and unemployment statistics.
A Slump for Real Wages
The chart here tells the story. It shows the trends in average inflation-adjusted hourly pay, arguably the best measure of economic well-being for most people. As you can see, hourly wages are suffering through a Trump slump.
A Slump for Real Wages: Change over the preceding 12 months in average hourly wages and in the Consumer Price Index. Click image to read full story in the NY Times.
When the prices of good and services are rising faster than nominal wages, people end up with less buying power. And that is exactly what’s happening now.
That slump isn’t entirely Trump’s fault, by any means. But he deserves some blame for it. Worst of all, he is doing virtually nothing improve the situation, instead enacting policies that will ultimately hurt workers’ ability to earn a decent paycheck.
