Stimulus & Wages, What Exactly Happened?

Source: American Institute for Economic Research
by Siddharth Gundapanemi

“In wake of the Covid-19 induced recession, former President Trump and President Biden passed three stimulus packages in an attempt to rejuvenate the economy. Following passage of the final stimulus act, critics have been sounding the alarm, citing that real wages have fallen relative to rising rates of inflation, at least in part caused by the exorbitant stimulus packages. While such statements do have their merits, the issue tends to be much more nuanced than some may assert. In this analysis, we will examine trends in wages among varying demographics, and offer insight as to why certain unprecedented trends may have transpired.” [editor’s note: Presidents don’t pass legislation. Congress does – TLK] (01/12/22)