New data shows middle-class incomes are rising

[00:00:01]After years of high inflation, there are new [music] signs that Americans may finally be seeing their paychecks go even further. A new analysis of household income shows middle-class families are gaining purchasing power again, fueling a broader conversation about how the economy under President Trump compares to just a few years ago.

[00:00:19]We're joining us now to discuss this former White House economic advisor, Steve Moore. Good morning to you, sir, coming to us live from Orlando.

[00:00:26]>> Mhm. Good morning.

[00:00:28]>> So, when you look at all this data, what does it say about the state of the economy and what policies have had the biggest impact you think on middle-class families?

[00:00:35]>> Well, a couple things. Now, this this is official Census Bureau data that our group Unleash Prosperity has gotten access to. So, it's interesting. First of all, the median household income in the United States is now $86,000.

[00:00:48]That's a lot, Jan. In fact, you know, most countries to have $86,000 would be considered to be very rich. And so, it just shows we're an affluent society.

[00:00:57]And as you can see in the chart on on the screen, um there've been pretty big increases in income. You can see that the incomes took a big hit during COVID when people weren't working, but we're seeing a a nice a nice comeback. And and when you adjust for inflation since Trump came into office his second term, incomes for Again, these are people in the exact middle. I'm not talking about the Warren Buffetts of the world, have seen about a $3,000 increase in their after-inflation income. So, they're going up. They fell They've fallen a little bit in the last couple months, Jan, because of the higher gas prices.

[00:01:35]>> Right. But, 3,000 bucks is significant, no matter who you are. That is tremendous. And you know, you've always argued, Steve, that Americans' economic success really is built on innovation.

[00:01:45]It's built on competition, entrepreneurship. Your latest chart makes a fascinating point.

[00:01:50]>> Yeah.

[00:01:50]>> Of the 30 companies in the Dow Jones 50 years ago, only one remains today. Now, if you hear that, you're like, "Wait a minute, one company out of 30 50 years later?" And people would assume that's bad news, but you say that's not true.

[00:02:06]It's actually the exact opposite. This is good news. Why is that?

[00:02:09]>> Oh, because we're such a dynamic country with new businesses that are sprouting up all the time. So, you know, you think back 30, 4 years ago, you're talking about companies like Kodak and Chrysler and IBM. Well, guess what? They've been replaced by, you know, company companies like Nvidia and companies like Google and Apple and Amazon that didn't even exist, you know, 25, 30 years ago.

[00:02:32]So, it's an amazing story of how we we, you know, in out with the old, in with the new. And by the way, we just did an analysis of the companies in France and just as an as a contrast, and in France, it's almost exactly opposite. The companies were big and and most powerful in France 30 years ago are pretty much the same ones as today.

[00:02:53]And that may explain why France has not been growing in the new age as as quickly as we are. And that's a real testament to our free enterprise system.

[00:03:02]>> That's right. Very good point there, and it brings us to healthcare, where many argue government regulations are slowing that innovation, right? Slowing slowing some of that entrepreneurship and limiting patient choice. So, from both an economic and public policy standpoint, what reforms should Congress and the FDA be considering and how could they help encourage the next generation of medical innovation?

[00:03:23]>> Well, look, the United States does lead in the new drug development. If you look at like over the last 40 years, you know, 18 of the 20 wonder drugs that have been introduced on the market have come from the US. So, we're real innovators. And the the real complaint is that um when when new drugs come on the market, it takes too long, John. And when you've got we're talking about deadly diseases or, you know, of that are um, you know, cause a lot of pain and suffering, you know, like uh or MS or uh or Parkinson's and so on, cancer. Why not let patients start to have access to these drugs earlier?

[00:04:04]Um, even if they're experimental, if you know, if you're if you've got a terrible disease, why not allow people to have that choice? And this is a big it's a bustling issue right now in Washington.

[00:04:15]Uh I'm a free market guy, I believe in freedom of choice, and that we could basically tell people, "Look, we're not sure that this we think this might work.

[00:04:22]We we're not sure, but why not let the patient make that decision?"

[00:04:26]>> Right, right. And finally, I wanted to talk to you about a story that I saw uh that is a new law in New Jersey requiring employers to pay a fine for employees receiving Medicaid. Now, critics say it effectively penalizes businesses for hiring lower-income workers and and could give companies an incentive to really expand somewhere else. What kind of message does a policy like that send to job creators?

[00:04:49]>> Yeah, I don't like this policy at all.

[00:04:51]And when you're talking about small businesses, John, that are struggling just to make a profit, and tell them, "Well, you know what? You're going to have to pay for the health health care of all your workers, uh you know, your 25, 30 workers," you're just going to discourage companies from hiring workers at all. Look, I wish every company could afford to provide, you know, lavish health care for people, but some can't.

[00:05:10]And so, if you tell the companies they have to, then they may just not hire workers at all. And so, the worst There's something worse about having a job that doesn't provide health care, and that's uh not having a job at all.

[00:05:22]>> Very good [snorts] point. All right, hope you enjoy that Florida sunshine where you are right now.

[00:05:26]>> Oh, hot here.

[00:05:28]>> Is it?

[00:05:28]>> It's 95 today, but but it's at least the sun is shining.

[00:05:31]>> That's right. Former White House economic advisor Steve Moore, thanks for joining us. Have a good week.

[00:05:36]>> You too.