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Biden team sees progress shifting economic gains to the poor -Breaking

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© Reuters. U.S. Vice President Joe Biden holds a virtual roundtable discussion on the security of critical minerals at Washington’s White House from February 22nd, 2022. REUTERS/Kevin Lamarque 

WASHINGTON (Reuters] – Strong U.S. economic growth has a positive impact on the poor, said the Biden Administration Wednesday. They cited research showing that COVID and other measures could have reduced inequality.

Berkeley University researchers used new tools for evaluating growth in national income. Their data revealed that the economy is delivering income gains even to the lowest half of the income ladder.

After adjusting for inflation, adult labor and capital income – before taxes and government benefits – rose by 5.6% overall in the fourth quarter of 2021 compared to a year earlier, but it jumped by 10.9% for adults in the bottom half of the earning scale, it showed.

This data was highlighted by the White House Council of Economic Advisers in a Wednesday blog.

Recent decades have seen the United States reward the most wealthy in a more proportionate manner. But officials of the Biden administration say that new data proves their policy to rebuild an economy devastated by pandemics better.

Data showed that “market” incomes (i.e., those without government benefits) fell 25% in 2020’s second quarter. But, the numbers rebounded after inflation adjustment and now average 4% higher.

The blog stated that income including transfers and government cash rose dramatically due to pandemic relief. However, it has tapered off since then, though still above the pre-pandemic level.

In the fourth quarter 2021, market incomes of the bottom half were on average 2% lower than before the pandemic. Disposable incomes however increased by 11%.

All income levels saw increases in income in 2021. However, the market income of those who are between 50th-90th percentile and the top 10 percent saw more rapid growth than the income of those at the bottom 50% or 10%.

This blog pointed out that Americans didn’t feel any better, despite increased income growth. Many were also concerned that inflation might wipe these gains.

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