WAGES ARE RISING: American workers have more money in their bank accounts and their pockets as their wages rise.
- Over the past year, real wage compensation has grown by 1.4 percent, well above inflation growth, according to a recent analysis by the Council of Economic Advisers (CEA).
- CEA’s estimate represents over $1,000 more income per year for the average American household.
- Benefits are also rising, with the average full-time, full-year employee seeing the value of their benefits grow by about $1,300 since 2004.
- In today’s hot-job market, employers are offering bonuses and enhanced benefits, such as more paid leave, to compete for workers.
A COMPLETE PICTURE: CEA’s analysis provides a more complete picture of the benefits that American workers are receiving as a result of President Donald J. Trump’s policies.
- Wage growth estimates often miss meaningful aspects of the compensation workers receive.
- According to CEA’s analysis, which accounts for additional factors such as increased benefits, headline wage measurements have significantly understated real wage growth.
- Headline wage measurements often miss real wage growth, because they exaggerate inflation or exclude benefits like health insurance and tax credits.
- Headline measurements use the Consumer Price Index, which has been known to exaggerate inflation.
- These measurements also solely focus on cash earnings of American workers, excluding the value of fringe benefits like health insurance, taxes, sick leave, etc.
- Part of the reason why official measures have understated wage growth is that the economy is strong and more people are joining the workforce.
- Those new to the workforce are less-experienced and thus less-compensated, which is driving down the National wage average.
- More-experienced, better-compensated Baby Boomers are retiring as well, depressing measured average wages.
TAX REFORM IS WORKING: President Trump’s historic tax cuts and reforms are working to increase incomes and benefits for Americans.
- Thanks to the President’s tax cuts and our strong economy, household income should grow by about $2,000 over the next two years and $4,000 over four years.
- President Trump’s tax cuts provided $5.5 trillion in tax cuts, representing the largest tax cuts and reforms in history.
- President Trump’s tax cuts have resulted in new benefits, bonuses, and wage increases for American workers across the country.