**Bank: Real Wages May Be Fake

"Real wages are essentially flat or down since the Biden administration took office"

Bottom Line:

1. Real wages have stagnated or dropped, not increased under President Biden.

2. Reassessing ECI shows wage data (AHE) is higher than actual wages are

3. PCE is not properly reflecting out of pocket expenses paid

4. This likely explains the economic dissatisfaction under President Biden

Background:

Given the inaccurate readings in jobs numbers and GDP revisions as pointed out by ZeroHedge these past few months. For example on Jan 4th as shown in the chart below, the jobs print from 10 of the past 11 months has been revised lower

Source:: ZeroHedge: Inside The Catastrophic Jobs Report

If the attached analysis of real wages gets traction, the Biden administration is toast.

US – How real are real wage gains?

Footnotes, [Comments], and emphasis added by GoldFix

• Stagnant or dropping real wages could explain consumer dissatisfaction

• By some measures, real wage levels are lower now than in 2019

• The ECI shows more moderate nominal wage gains than AHE

• The correct deflator for nominal wages may be closer to the chained CPI than PCE