'Did y’all get a raise?': Dr Phil says you need an additional $11,434 a year to maintain the same living standard you had in 2021 — here’s what the White House numbers say

Did you get a raise?

Dr. Phil did not specify the source of the $11,434 figure, but it appears to stem from an analysis conducted by Republican members of the U.S. Senate Joint Economic Committee using government data.

In November 2023, CBS News reported on the analysis, stating, “The typical American household must spend an additional $11,434 annually just to maintain the same standard of living they enjoyed in January of 2021, right before inflation soared to 40-year highs.”

Though, the Biden administration has criticized this analysis, labeling it “flawed.”

“Fourteen million more Americans have jobs today than when President Biden took office and household disposable income is up by almost $21,000 since December 2020,” a White House spokesperson told CBS MoneyWatch.

The latest employment report from the Bureau of Labor Statistics also indicates that the average hourly earnings for all employees on private nonfarm payrolls in the U.S. reached $35.36 in September 2024, up from $29.93 in January 2021 — an increase of just over 17%.

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Battle against inflation

Americans have grappled with rising prices in recent years. In June 2022, the U.S. Consumer Price Index (CPI) saw an annual increase of 9.1%, the largest since November 1981.

However, after significant interest rate hikes by the Federal Reserve, the headline inflation rate in the U.S. has subsided. In September 2024, the CPI showed a 12-month increase of only 2.4%.

Several experts have even declared victory over inflation.

Last October, Nobel laureate Paul Krugman proclaimed on X, “The war on inflation is over. We won, at very little cost.”

Jeremy Siegel, professor of finance at the University of Pennsylvania Wharton, shared a similar view in a November interview with CNBC.

“We are not going to have any more inflation,” he said.

But while the rate of inflation has slowed down, the prices of many necessities remain elevated. For example, the food index within the CPI has risen by more than 21% since January 2021, and the shelter index has surged by more than 22% during the same period.

Considering this, Jordan and Latisha are not alone in taking on extra work to make ends meet. A recent Economic News Release shows that as of September 2024, 4.817 million Americans were working a full-time job and a part-time job, while 359,000 Americans were holding down two full-time jobs.

“We’re being crushed,” Jordan said. “The middle-class are the ones that are hurting, that bracket where we make too much to get help and we make enough to where we still feel the pressure of gas prices.”

There’s something to be said for the discrepancy between rising hourly wages and a plethora of cash-strapped Americans. It’s possible, like Jordan expressed, some of those in the middle — not poverty-stricken but still living paycheck to paycheck — face a unique struggle yet to be solved.