Propped up by unprecedented government spending, the US economy has tottered along, with a rotting underpinning that will eventually bring the whole thing down. The spending has led to massive debt, higher interest rates, which are themselves a form of inflation, and inflation, while real wage growth lags. Lower income Americans are getting further and further behind, not withstanding supposed wage gains. The Bureau of Economic Analysis has not been politically perverted to the same exent as the Bureau of Labor Statistics, which issues employment-related numbers. According to the latest BEA data, from April of this year, personal income increased by .4% month over month, while personal consumption expenditures rose by .8%, suggesting heavy use of credit cards and other debt. (BEA Reports)
Inflation on personal consumption items, measured by a price index, also rose by .4%, meaning there was no real gain in personal income. Whatever more consumers got paid in income, they had to spend that much more on necessities and other purchases. Over the last five months, personal income has risen more slowly than the PCE price index, indicating that consumers are losing ground. So here is the painful reality about the Biden economy for the average person–it sucks.