Americans Are Back on a Hamster Wheel as Wages Fall Behind

Earnings for American workers grew by less than expected in April, a report Friday showed, which means that, pending the release of inflation numbers next week, we’ll probably discover that consumer prices are now going up faster than wages... again. That will prove extremely disheartening for households still trying to find their footing after the 2021-2023 inflation surge, as well as for the many Americans who voted for President Donald Trump on the bogus promise that he’d slay the inflation scourge. Instead, he’s clearly and demonstrably reignited it.

All told, the 3.6%1 growth in hourly earnings from a year earlier was softer than the 3.8% increase that economists surveyed by Bloomberg expected, weighed down in part by weak gains in education and healthcare wages. Compare that to the 3.7% year-over-year increase in inflation that economists expect from the next Consumer Price Index update, and Americans are losing purchasing power.