Yesterday, during a podcast, Senate Majority Leader Chuck Schumer (D-NY) discussed his view of why people are still so negative on the economy. Here is what he had to say:
“The two things people want the most, our data shows, are, get my costs down. They know that wages are going up. But when the costs go up and eat up the wage increase, it doesn’t do you much good. And make sure this country has a — the middle class has a future in this country. Even if you’re in the middle class now, you doubt it.”
“But the second thing that I would say about the economy is — and I’ve talked to some of the experts on this, including some of the polling experts — it’s often a lagging indicator. That people look at the economy six months ago and it’s in their — still in their heads today. Well, if the economy continues in the good way it has, inflation lower, wages up, unemployment — particularly minority unemployment — down to record low levels, within a while, I think people’s view of the economy will improve, but it’s not just going to happen like that. And we Democrats have to keep talking about it and talking about it.”
That’s a lot to think about.
The first part of Schumer’s statement I agree with completely. If you earn more money but costs go up at least as much, you aren’t any better off…and if costs go up more than your increase (which, on average, is exactly what is happening), you are losing ground, not gaining.
As for the second part, there is a problem. Yes, there is a time lag on the perception that inflation is lowering. But if your costs have gone up faster than your wages the lower inflation number is an irrelevant artifact, it means nothing to you.
And then there is the fact that inflation – latest (July) data put it at 3.2% – may be down from where it was over the past couple of years. But it is not down from the previous administration, it is down from where it soared to under the current one.
Look at the chart and see for yourself:
| Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Ave |
| 2023 | 6.4 | 6.0 | 5.0 | 4.9 | 4.0 | 3.0 | 3.2 | Avail. Sept. 13 |
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| 2022 | 7.5 | 7.9 | 8.5 | 8.3 | 8.6 | 9.1 | 8.5 | 8.3 | 8.2 | 7.7 | 7.1 | 6.5 | 8.0 |
| 2021 | 1.4 | 1.7 | 2.6 | 4.2 | 5.0 | 5.4 | 5.4 | 5.3 | 5.4 | 6.2 | 6.8 | 7.0 | 4.7 |
| 2020 | 2.5 | 2.3 | 1.5 | 0.3 | 0.1 | 0.6 | 1.0 | 1.3 | 1.4 | 1.2 | 1.2 | 1.4 | 1.2 |
| 2019 | 1.6 | 1.5 | 1.9 | 2.0 | 1.8 | 1.6 | 1.8 | 1.7 | 1.7 | 1.8 | 2.1 | 2.3 | 1.8 |
| 2018 | 2.1 | 2.2 | 2.4 | 2.5 | 2.8 | 2.9 | 2.9 | 2.7 | 2.3 | 2.5 | 2.2 | 1.9 | 2.4 |
| 2017 | 2.5 | 2.7 | 2.4 | 2.2 | 1.9 | 1.6 | 1.7 | 1.9 | 2.2 | 2.0 | 2.2 | 2.1 | 2.1 |
| 2016 | 1.4 | 1.0 | 0.9 | 1.1 | 1.0 | 1.0 | 0.8 | 1.1 | 1.5 | 1.6 | 1.7 | 2.1 | 1.3 |
As you can see, in January, 2017, the month that Donald Trump took office, inflation was at 2.5%. During his four years as President it never went above 2.9% And in January, 2021, the month that Trump was replaced by Joe Biden, inflation was at 1.4%.
Under Biden’s energy-decimating policies, it flew to over 9%.
And now, at a “lower” 3.2%, inflation is still more than double what Biden inherited. This is supposed to make voters feel good?
So there you have it. Schumer’s comments and the actual inflation data.
You know what I think. What do you think?
