According to an analysis of data released this week, the financial situation of the American working class remains solid despite high inflation caused by the war with Iran, the Wall Street Journal reported on Thursday, the 23rd. The report notes that their wage growth has significantly outpaced inflation over the past year.

According to the report, in the second quarter of 2026 (as of the end of June), those earning at or below the national median income saw substantial income gains, exceeding the 3.5% inflation rate.

Weekly wages for those in the lower-to-middle income bracket rose by 4.6% over the past year. According to Bureau of Labor Statistics (BLS) records, weekly wages for those at or below the 25th percentile—the lowest quarter of earners—jumped by 5.5%.

The White House cited this data as evidence that President Trump’s policies are having their intended effect.

White House spokesperson Kush Desai stated, “President Trump promised to provide economic relief to the American people after four years of corruption and incompetence under Joe Biden. Trump’s proven economic policies, centered on tax cuts for the working class, rapid deregulation, and expanded energy supplies, are delivering results.”

Another White House official pointed out that, beyond wages, the Consumer Price Index (CPI) report from last month—which showed a decline in energy costs prior to the resumption of the war—included other encouraging indicators, such as a 2.5% year-over-year decrease in prescription drug prices, a result of President Trump pressuring pharmaceutical companies to align their pricing with other major nations.

These wage survey results have significant political and economic implications. In interviews with the Wall Street Journal, economists suggested that this wage growth helps explain the sustained consumer spending that has contributed to the overall resilience of the economy, even as energy prices surged following Iran’s month-long blockade of the Strait of Hormuz.

Furthermore, it suggests that lower-income Americans, who typically have less disposable income and are usually hit hardest by inflation, are not feeling the sting of rising prices as severely as expected.

The Trump administration’s tax cuts on overtime pay, tips, and Social Security benefits generally take effect during tax filing season at the beginning of the year.

Polls conducted ahead of the November midterm elections have shown the Democratic Party leading the Republican Party. These election results will determine control of Congress for the final two years of President Trump’s term and serve as a litmus test for the durability of the 2024 election coalition that saw Trump gain significant support among Hispanic and working-class voters.

Of course, polls regarding Congress are national surveys and do not account for individual district-level analysis, so they should not be overinterpreted. However, historically, the party out of power has generally held an advantage in midterm elections.

It remains unclear which of the Trump administration's second-term policies contributed to the income growth of the lower-income bracket. Mainstream media outlets have suggested that the campaign to deport illegal aliens, who might otherwise compete with citizens for jobs that do not require higher education, could be one contributing factor.

While Trump has aggressively used tariffs to boost U.S. exports and domestic manufacturing, federal data indicates that both sectors have yet to see clear results from these measures.

Although real income growth has been reported for the bottom 50% of earners, the outlook is less optimistic for those in slightly higher income brackets.

Wages for the middle to upper-middle class have struggled to keep pace with inflation; wages for the 75th percentile have risen by only 1.5% over the past year.

President Trump has frequently referenced the stock market, which is enjoying a boom driven by the AI surge, and has directed political messaging toward this group by highlighting the resulting increase in 401(k) retirement account balances.

The highest income earners, whose situations are difficult to track using only quarterly BLS data, remain in a strong position.

According to Bank of America data cited by the Wall Street Journal, workers in the top third of the bank's customer base still report the highest annual wage growth. The bottom third is effectively tied with them (both exceeding inflation), followed by the middle third.

Hong Sung-gu, Representative Reporter, NNP USA / Special Correspondent for NNP info@newsandpost.com