The median national income of Americans fell in 2022, marking a decline in both years of the Biden presidency. The new census survey data could reinforce doubts about the current state of the U.S. economy and complicate President Joe Biden’s reelection campaign.
According to the data, the median income in 2022 fell to $74,580 from more than $76,000. This represented a 2.3% decline from the previous year.
The median income last year was $74,580 compared with $76,330 in 2021, according to the Census Bureau.
The 2.3% drop in incomes was the most since 2010.
It was the third-straight annual decline.
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The figure since before the pandemic is even more stark. Real incomes have declined almost 5% since their peak set during the Trump administration in 2019.
In addition, federal data also showed a significant increase in the percentage of Americans living under the poverty line. Currently, 12% of Americans live under the threshold, representing a significant increase from when Biden became president.
During former President Donald Trump’s tenure, the share of Americans living beneath the poverty line declined from 14.0% to 9.2%.
The news also came amidst a higher-than-expected inflation report for August. The nation’s prices increased by 3.7% that month, marking its second consecutive increase.
Data from the Department of Labor (DOL) showed that inflation increased from its 3.2% rate in July and the anticipated increase of 3.6%.
The numbers under the surface appeared to be even more troublesome for consumers. Core inflation, which does not include that of energy and food, increased by 4.3% annualized last month. The increase also comes during a spike in gas and diesel prices.
Overall food prices increased last month, with certain foodstuffs such as eggs and meat increasing at a more rapid pace. This represents the third straight month of food prices rising.
The increase in inflation may spark action by the Federal Reserve, which could further increase the risk of recession and further imperil the median income of Americans.
The recent DOL report also corresponded with the census data. According to the same report, real earnings after inflation fell 0.4% in August.
