Silver State Times

As residents in the state try to balance the tide of inflation, a recent report notes that median incomes have largely remained stagnant.

According to The Wall Street Journal (WSJ), as inflation rises to a level not seen in over 40 years, the average American income has remained dormant even declining by approximately 1%, but the Census Bureau finds the drop “not statistically significant.”

The WSJ said flat incomes are a result of the “pandemic’s lingering economic pain” with the typical median household income at $70,800, compared to $71,200 in 2020.

In Nevada, the median income is significantly lower as a Zippia report found the median household income in the state to be $60,001.

“Another month of inflation levels we haven't seen in 40 years, courtesy of Biden, Schumer and Pelosi. Gasoline is up 55% since Biden took office and the Democrats took complete control of Congress. In just the past year, groceries have gone up 13.5%. Meanwhile, household incomes have remained roughly the same, falling well short of covering the increased costs. Even still – our leaders have shown no inclination they intend to stop their rampant taxing and spending. Are you financially better off under this administration?” Chair of Board at America First Policy Institute Linda McMahon wrote in a Twitter post.

The Labor Department found the consumer price index was 8.3% for August compared to 2021, effectively reporting inflation is still significantly present in the economy.

The WSJ notes the federal reserve is actively raising interest rates to combat inflation "while trying not to trigger a recession."

The poverty rate remained relatively the same at 11.7%, with $27,740 per year as the definition line. The poverty rate doesn’t take government subsidies and taxes. Incorporating such expenses shows a drop in the poverty rate especially among children, economist Liana Fox said.

“A larger share are on fixed income and I think one thing that’s very likely happening is that they are on fixed incomes that aren’t keeping pace with inflation,” Fox said, according to the WSJ.

According to NBC News, inflation should steadily remain high, with some economists predicting a slight turn downward. Gas prices have fallen to an average of $3.70, although NBC News claims western states are still seeing prices at $4 or higher. Food prices have elevated 11.4% compared to last year.

“A majority of Americans say inflation has affected them financially,” NBC News reported.

According to SmartAsset, economists say the ongoing inflation is largely tied to increased federal government spending.

Paige Terryberry, a senior analyst for fiscal policy at the John Locke Foundation, confirms that the current bout of inflation stems from the massive injection of federal cash dispersed since the pandemic’s onset.