Chair of the Council of Economic Advisers and labor advisor to President Joe Biden Cecelia Rouse revealed this week that she takes “comfort” in the fact that hourly wages “tick down” under the current administration.
“As an economist, where do you find assurance that inflation is not becoming entrenched in this economy, I mean what in these numbers might indicates it’s not entrenched?” A Bloomberg host asked Rouse this week. “Because it sure looks that way right at the moment.”
“Well, I – look, I don’t have a crystal ball, but what I would take some comfort in in, if that’s what we’re gonna call it, uh, is the fact that if look at hourly wages, uh, they actually tick down, uh, so that suggests that we’re not gonna see, we’re not seeing wage price spiral at least in these numbers,” Rouse replied.
Wages coming down under Biden could be correlated with decreased inflation if the cost of goods and services was also decreasing at a similar rate, but the data referenced in the Rouse interview suggests that inflation is actually becoming a long-term staple of the Biden economy.
Biden Economic Advisor Cecilia Rouse says she takes "comfort" in workers’ average hourly wages ticking "down" pic.twitter.com/Tpi0EW2Beg
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Joe Biden and Democrats gathered to celebrate the Inflation Reduction Act last month, with cable network tickers ironically showing the stock market plummet during his speech.
The Inflation Reduction Act, which was signed into law by Biden earlier this year, includes at least $700 billion worth of spending over a period of 10 years, with $369 billion on clean energy and climate change, and another $300 billion on reducing the deficit.
“The single most important legislation passed in the Congress to combat inflation, and one of the most significant laws in our nation’s history in my view,” Biden said during a press conference broadcast by Fox News as a ticker revealed that nearly 4% of value had been wiped from existence on the news of 8.3% inflation in August.
This news and commentary by Gabriel Keane originally appeared on Valiant News.