News and Commentary

‘Did A Money Printer Write This?’: CNBC Mocked For Saying That ‘Rising Wages’ Are A ‘Silver Lining’ Of Inflation

“Tell me you failed economics class but get paid to write about it"

   DailyWire.com
The Marriner S. Eccles Federal Reserve building in Washington, D.C., U.S., on Monday, May 3, 2021. President Biden's $4 trillion vision of remaking the federal government's role in the U.S. economy is now in the hands of Congress, where both parties see a higher chance of at least some compromise than for the administrations pandemic-relief bill. Photographer: Stefani Reynolds/Bloomberg via Getty Images
Stefani Reynolds/Bloomberg via Getty Images

CNBC published an article touting the fact that wages “may increase” as a “silver lining” of rampant inflation.

As the outlet reported on Thursday afternoon:

Already, prices on some goods, like cars, are noticeably higher, stoking fears that a sudden uptick in inflation will decrease purchasing power over time. Although consumers may pay more for everyday items, it’s not all bad news as far as household income and spending goes. Companies facing a labor shortage are also paying more to get workers to walk in the door.

Workers already saw a bump in their paychecks for June. As of the latest tally, average hourly earnings rose 0.3% month over month and 3.6% year over year, according to the Labor Department.

Inflation is the erosion of a currency’s purchasing power over time. If, for example, inflation were to remain at 2%, then the value of every dollar — both in new earnings and previous savings — drops in value by 2% over the course of a year. If earners see wage increases that match inflation — in this case, a 2% wage increase — inflation has no meaningful effect on their lives. 

However, price levels have increased by 5% since last June. Under the 3.6% year-over-year wage increase reported by CNBC, most Americans are therefore observing a net 1.4% decrease in purchasing power.

Social media users were quick to notice CNBC’s incomplete information. The outlet’s tweet carrying the story — which has 1,382 quote tweets to 170 likes at the time of writing — was severely “ratioed.”

 

“Tell me you failed economics class but get paid to write about it,” said commentator Ian Miles Cheong.

“The elites think you’re stupid,” said Ohio State Sen. Michael Rulli.

“Did a money printer write this?” asked the Cranky Federalist blog.

“How to say you are a gender studies major without saying it,” tweeted Center for American Liberty founder Harmeet Dhillon.

One user quipped: “For the next article, how about: ‘Earthquake’s silver lining: more construction jobs.’”

“The average monthly salary in Zimbabwe is a whopping 217,000 ZWD,” noted another.

 

“Amputation’s Silver Lining: only having to buy one shoe or glove,” said a third.

Americans are witnessing inflation in numerous domains. For one, the average consumer now anticipates a 9% year-over-year increase in their back-to-school spend. For another, executives predict that there is no end in sight for gas prices above $3.00 per gallon.

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