Hassett: At the Peak of the Inflation Crisis Under Biden, Real Wages Declined By $2000 for the Typical Worker
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RUSH EXCERPT:
HASSETT: "At the peak of the inflation crisis under Biden real wages declined by $2000 for the typical worker and they were up in the Trump Administration by more than what Trump promised so the thing we are doing is taking those policies and renewing them and extending them but we are also adding new things that benefit real wages. it is not the real before tax wage that matters. it is a real after-tax wage. if you cut taxes on social security, if you cut taxes on overtime, if you cut taxes on tips, that increases real wages after-tax for people that matter the most and I can’t highlight enough the growth affect. if you’re cutting taxes on people who are mostly hourly workers, it’s the hours the respond a lot so you get really big economic effects. remember 70% of value added in the us is produced by American workers so if you change the output of American workers the hourly contribution of American workers to work you have a really big GDP affect and that affect is the next stage of our modeling, the first is what we did last time and we are getting astonishing results."
