• Sat. Jun 15th, 2024

Economic Uncertainty Looms: Voters’ Perceptions of the Economy Shaped by Inflation and Real Wage Growth

BySamantha Nguyen

May 20, 2024
The Intersection of the Economy and the Election

With the election just six months away, voters’ perceptions of the economy are expected to solidify in the coming months. In a recent article titled “Americans are down on the economy (again), with inflation topping election concerns” published in The Washington Post, it was revealed that consumer sentiment has taken a significant dip, reaching its lowest point in six months. One of the main concerns for voters is gas prices, which have surged since the beginning of the year. However, it is the lack of growth in real wages that is causing most concern.

A graph illustrating cumulative changes in real average hourly earnings for all workers and production and non-supervisory workers showed a decline in real wages since the start of the Biden Administration. Although inflation peaked at 9.1% in June 2022 and real wages made progress until the end of 2023 due to disinflation, recent high inflation readings have reversed that progress in 2024. Despite attempts by the White House to address healthcare and housing costs as well as reduce taxes for middle-class families, it remains unclear if this economic message will resonate with voters.

Jared Bernstein, chair of Biden’s Council of Economic Advisors, mentioned that efforts are being made to lower costs for families and ensure billionaires and corporations pay their fair share – a statement lacking economic logic. The ongoing question is whether inflation will remain the key issue or if economic growth will take center stage. Recent data on credit card use, employment, retail sales, housing starts, and services employment have been weaker than expected – hinting at a potential slowdown in the household sector. The upcoming months will be crucial in shaping voters’ perceptions of the economy leading up to

By Samantha Nguyen

As a content writer at newsskio.com, I weave words to craft compelling narratives that captivate readers and bring stories to life. With a keen eye for detail and a passion for storytelling, I strive to create engaging and informative content that resonates with our audience. Whether I'm delving into the latest news trends or exploring unique angles on various topics, my goal is to deliver quality content that informs, entertains, and inspires. Join me on this journey as we uncover the news stories that matter most.

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