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The White House • September 6, 2018
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The Trump Administration’s critics are in a bind: During the 2016 election, many claimed that then-candidate Donald J. Trump’s economic policies wouldn’t work—in fact, that they would likely trigger a major recession. Nearly a year and a half into his term, the results are undeniable.
Nearly 4 million jobs have been created since the election, including 400,000 in manufacturing. New unemployment claims recently hit a 49-year low. Almost 3.9 million Americans have been lifted off food stamps. The economy is on track to hit its highest annual average growth rate in more than 13 years.
Looking for a new talking point, the left found one: Jobs, stocks, and economic growth may be soaring, but pay is not. “Worker wages remain stagnant,” ThinkProgress declared in July.
Except pay isn’t stagnant—not by a longshot. A new report from the Council of Economic Advisers this week explains the origins of that misleading stat. According to the CEA, official wage growth estimates often ignore key parts of the real compensation that workers receive. Among other problems, these measures exclude the value of crucial benefits such as health insurance, taxes, and paid leave.
Real wage compensation has grown by 1.4 percent over the past year, well above inflation growth. CEA’s estimate translates to more than $1,000 of additional income each year for the average American household.
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