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September 20th, 2018

Insight

There Is No Wage Stagnation. It's a Liberal Myth

Dick Morris

By Dick Morris

Published Sept. 5,2018

 There Is No Wage Stagnation. It's a Liberal Myth

It has become axiomatic that wages are stagnant in the U.S. and have been so for 20 years.

If you confront a liberal with the rapid economic growth since the Trump tax cut passed, he will always say that wages are stagnant.

But that is wrong! Dead wrong.

From 1999 to 2012, it is true enough that real median household income (adjusted for inflation) dropped from $58,665 to only $53,331 — a drop of almost 10 percent.

But since 2013 it has recovered, increasing at an especially rapid pace in 2018 under the Trump administration.

Here are the stats from the Labor Department for real median household income:

1999 —— $58,665

2012 —— $53,331

2013 —— $55,214

2014 —— $54,398

2015 —— $57,230

2016 —— $59,039

2017 —— $59,055

July 2018 —— $62,175

So family income has risen by 17 percent since 2012 and by 5 percent in the first half of 2018.

While the Trump tax cut is only eight months old, and its full impact won't be visible for another year or two, the turnaround since it was passed over Christmas 2017 is dramatic.

Real median household income has risen more in the past eight months than it has in any year-over-year comparison since the 1990s.

Politically, once it becomes widely known what a piece of what President Donald Trump would call "fake news" the wage stagnation really is, it is hard to see what the left's comeback can be.

Dick Morris, who served as adviser to former Sen. Trent Lott (R-Miss.) and former President Clinton, is the author of 16 books, including his latest, Screwed and Here Come the Black Helicopters.

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