Texas

Biden’s claim that wages are rising ignores the earlier impact of inflation.

Joe Biden: “Take home wages for workers going up.”

PolitiFact solution: half true

That’s why: President Joe Biden answered reporters’ questions on Jan. 12 about the discovery of classified documents at his think tank office and his home in Delaware. But instead, he sought to announce the positive development of the problem that plagued him during his presidency: inflation.

“You know, and as inflation comes down, workers’ wages go up,” Biden said. “Wages for workers are now higher than they were seven months ago, adjusted for inflation.”

Over the past two quarters, wage growth has outpaced inflation. Before then, however, wages had lagged far behind inflation, and recent improvements have not yet dug that hole.

Non-inflation-adjusted raw wages rose in front of Biden. They have risen every quarter of his presidency and generally at a faster rate than wages rose under his predecessor, Donald Trump.

But once you adjust for inflation, a lot of that income disappears. Real wages — that is, wages adjusted for inflation — fell or remained flat during the first six quarters of the Biden presidency.

However, over the past two quarters, real wages have changed dramatically.

In the third quarter of 2022, real wages increased by about 10% year on year. (The annual rate multiplies the monthly growth rate by 12 to project growth throughout the year.)

While this real wage figure was not released for the fourth quarter of 2022, year-on-year raw wages rose nearly 13% this quarter as inflation rose less than 2% over the same period.

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