GREENSBORO, N.C. — It's what's on the minds of everyday Americans: the economy.
During President Joe Biden's NATO speech on Thursday, he made several claims about the state of the economy and what drives it: Unions not only raise wages for members, they also boost the economy and inflation is dropping.
“We had the Treasury Department do a study,” Biden said. “When unions do better, everybody does better. Everybody does better.”
We wanted to verify those claims. Our sources are the Bureau of Labor Statistics, the Department of Treasury, and the National Bureau of Economic Research. The National Bureau of Economic Research said the relationship between unions and the economy is complex and widely debated.
However, there is proof that unions can strengthen the middle class and fuel the economy.
The 2023 report from the U.S. Department of Treasury said when unions bargain for higher wages, in turn, that gives them more spending power, kick-starting economic growth.
During the 1950s, union memberships were at their highest percentage ever. At that time, overall income inequality was at its lowest point since reaching its highest before the Great Depression. That claim is backed up by the National Bureau of Economic Research and the Economic Policy Institute.
It said union workers are more economically stable, making them less likely to struggle financially, and giving them more confidence to invest their money back into the economy.
“Core inflation is the lowest it's been in three years,” Biden said. “Prices are falling for cars, appliances, and airfare. Grocery prices have fallen since the start of the year.”
According to the Bureau of Labor Statistics, that's mostly true.
Your money should stretch a little bit longer with the price of goods dropping 0.1% from May to June. That marks the first monthly decline since May 2020.
Also, the report shows inflation at 3% down from 3.3%, meaning the rising cost of everyday goods is slowing.
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