America’s economic recovery continues to defy expectations, as the latest numbers show that the majority of American workers’ wages and family income are growing at a higher rate than inflation. Wage growth has been fastest among hourly and blue collar American workers, helping to bridge the wealth gap and cover cost of living.
The success of the economy over the past two years has been reflected in 16 monhtls of steady decrease in inflation rates, with inflation having remained below 4% since May of 2023, reaching pre-pandemic levels this past July. The success of President Biden’s American Rescue Plan brought millions of Americans back to work, leading to record low unemployment and wage increases, which have combated the effects of inflation.
The wage increases have had the greatest benefit for lower income workers, many of whom worked on the frontlines during the worst months of the COVID-19 pandemic. These increases, coupled with American inflation being among the lowest in the West and wages growing more than other major economies, has given the average American worker more purchasing power, which will continue the cycle of economic stimulus.
The steady decrease in inflation can be credited in no small part to the economic stimulus of the American Rescue Plan and Build Back Better Act helped restore millions of jobs, save small businesses, and reverse the tide of inflation. The steady positive trend of the American economy is expected to continue, with experts who previously predicted another recession in 2023 now praising Biden’s economy, with forecasts showing unemployment remaining steady and inflation continuing to decline.